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Archive for November, 2008

Mixed Signals on Production Cuts

By on 27 Nov 2008 in Other with 0 Comments

OPEC oil ministers continue to send mixed signals as to whether there will be a production cut at the Cairo meeting on November 29th, at the Oran meeting on December 17th , or both. The “price hawks” – Iran, Venezuela, and Libya – are calling for an immediate cut while the Gulf Arab states have […]

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Oil Bouncing with Financial News – Prices in the low $50s

By on 27 Nov 2008 in Other with 0 Comments

For the past week oil prices, as usual, bounced up and down in accordance with the financial news of the day. On Monday the bailout of Citibank sent oil up 3 dollars on hopes that things were getting better. Tuesday was a down day with a deluge of bad economic news erasing Monday’s gain. Then […]

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Week of November 24, 2008

By on 24 Nov 2008 in Peak Oil Review with 1 Comment

1. Supply and demand; 2. OPEC; 3. Price forecasts; 4. Detroit; 5. More on the IEA Report; 6. Briefs PDF: review_081124 Read Online Subscribe Peak Oil Daily Updates: November 30, 2008 November 29, 2008 November 28, 2008 November 27, 2008 November 26, 2008 November 25, 2008

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Supply and demand

By on 24 Nov 2008 in Other with 0 Comments

After six days of decline, oil prices rose 50 cents on Friday to close at $49.93, down $7.67 or 13 percent for the week. Oil prices now have fallen 66 percent since July 11th. As more production and consumption numbers are released, it is becoming obvious that excess supply is behind the continuing drop in […]

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OPEC

By on 24 Nov 2008 in Other with 0 Comments

As oil prices continue to fall, the average price received by OPEC is now approaching $40 a barrel.  A recent analysis by PFC Energy suggests that this price is well below what most of the members need to balance their budgets.  Venezuela is said to need oil at $102; Iran at $83, the Saudis at […]

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Price Forecasts

By on 24 Nov 2008 in Other with 0 Comments

As oil prices spiraled upwards last spring, the press was full of stories about how high prices could go.  Many thought $200 a barrel or more before the end of the year sounded reasonable. Now the tables have turned and the game has become picking a bottom for 2009. The IEA’s chief economist set the […]

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US Auto Industry Worst Week in History

By on 24 Nov 2008 in Other with 0 Comments

The US automobile industry had one of the worst weeks in its history. After two days of appealing to the Congress for a $25 billion bailout loan, US automobile executives were told to come back with a workable plan that would restructure the industry and convince lawmakers that any loan would do more than keep […]

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More on the IEA Report

By on 24 Nov 2008 in Other with 0 Comments

Two weeks after the IEA’s 2008 World Energy Outlook was published, lengthy commentary and analysis of the report’s findings continue to pour in. All compliment the 190 staff analysts and statisticians that worked on the report along with many outside consultants that were brought in for the project.  The general acknowledgement that current trends are […]

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Contradictory Statements at the OPEC Meetings

By on 20 Nov 2008 in Other with 0 Comments
Contradictory Statements at the OPEC Meetings

OPEC seems to be in more disarray than usual this week. After agreeing to hold an emergency session in Cairo on November 29th, contradictory statements by various oil ministers have started to emerge. Some say that a production cut will be decided upon at the Cairo meeting while others are saying that it is too […]

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Oil Prices Continue To fall

By on 20 Nov 2008 in Other with 0 Comments

Oil prices have fallen for the last four trading sessions. Monday’s drop was precipitated by reports from China that domestic demand for oil had fallen sharply. On Tuesday and Wednesday a continuing spate of bad economic reports sent prices still lower, although the pace of the decline seemed to be moderating.

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Prices and production

By on 17 Nov 2008 in Other with 0 Comments

After the markets digested China’s $586 billion stimulus package on Monday, prices fell from a week’s high of over to $65 a barrel until at one point oil was trading below $55. All the bluster about future production cuts could not compete with an avalanche of bad news about the global economy. Oil closed out […]

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The Next OPEC Meeting

By on 17 Nov 2008 in Other with 0 Comments
The Next OPEC Meeting

It is now confirmed that the meeting of Arab OPEC members in Cairo on November 29th will be expanded into a general OPEC meeting to discuss production levels. As the average price for OPEC produced oil is now somewhere in the $40s, most OPEC members are, or soon will be, running into major financial problems […]

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The IEA World Energy Outlook 2008

By on 17 Nov 2008 in Other with 1 Comment
The IEA World Energy Outlook 2008

The official release of the IEA’s World Energy Outlook 2008, has already brought forth a flood of new stories and commentary. Most of the immediate press stories focused on the need to find 64 million b/d of new production in the next 22 years to offset depletion and provide for some modest growth. This was […]

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Venezuela & The Price Drop

By on 17 Nov 2008 in Other with 0 Comments

Of all the OPEC members, Venezuela may be the one suffering most from the precipitous drop in oil prices over the last five months. Although Caracas claims to be producing 3.1 million b/d, nearly all outside observers put the number at 2.3. Then there is increasing domestic consumption in a country where the number of […]

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General Motors

By on 17 Nov 2008 in Other with 0 Comments
General Motors

The drama over the future of the US automobile industry –or lack thereof – continued last week. Representatives of GM are running around Washington saying that if the company is allowed to go bankrupt, the US economy would be irreparably harmed. President-elect Obama and some Congressional Democrats are pushing for allowing the industry access to […]

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Quote of the Week

By on 17 Nov 2008 in Other with 0 Comments

The U.S. could soon find itself scrambling to make up 11 percent in lost oil imports. Mexico, the third-largest foreign supplier of U.S. oil, faces the real possibility of having to halt oil exports in four years, a former top Mexican energy official was reported as saying Tuesday in Mexico’s El Universal newspaper Houston Chronicle, […]

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Prices and Consumption

By on 10 Nov 2008 in Other with 0 Comments

Oil prices had another volatile week in the midst of the US elections, threats from OPEC, and more bad economic news. Starting in the mid-$60s, prices made it up to $71 a barrel on Tuesday only to slide steadily for the rest of the week to close out at $61.04.

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Production Cuts

By on 10 Nov 2008 in Other with 0 Comments

From all indications, OPEC appears to be making a serious effort to reduce production and exports in the face of falling prices. The Saudis are reported to have cut exports by 900,000 b/d from their August peak; the Kuwaitis say they have cut exports by 100,000 b/d; Venezuela says it has notified customers of cuts […]

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Investment Continues to Fall

By on 10 Nov 2008 in Other with 0 Comments

The worldwide financial liquidity crisis continues to affect future oil projects. Major companies say that projects with financing already in place are expected to continue as planned, but that those programmed for completion after 2012 are likely to be placed on hold until the global economic situation improves.

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The forthcoming IEA report

By on 10 Nov 2008 in Other with 0 Comments

Last week the International Energy Agency released the 12 page executive summary of the World Energy Report 2008 that is due to be released November 12th. Judging from the summary, the report is a curious mixture of unreality and an unprecedented warning of an energy crisis to come.  The Agency still maintains there is enough […]

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Detroit

By on 10 Nov 2008 in Other with 0 Comments

The future of the American automobile industry is hanging in the balance and is likely to be decided shortly. New reports of plunging sales and large losses make it likely that the big three automakers will be insolvent in a matter of months if not weeks. Early last week the Bush administration

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Quote of the Week

By on 10 Nov 2008 in Other with 0 Comments

“For the gas industry, peak gas output could come sooner than expected, ‘maybe not too different from peak oil,’ Shell executive vice president John Mills told delegates at the ADIPEC conference in Abu Dhabi on Wednesday.”

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Supply & Demand

By on 6 Nov 2008 in Other with 0 Comments

In the last three days oil prices have bounced between $62 and $71 a barrel in response to optimism stemming from the US elections, worsening economic data, stockpile increases, and the OPEC production cuts.

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OPEC’s Production

By on 6 Nov 2008 in Other with 0 Comments

Oil prices over the next few months are likely to be heavily influenced by just how much and how fast OPEC actually cuts production. In recent days there has been a flurry of reports designed to convince the world that this time OPEC will act in concert and that their oil production will go down. […]

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Prices and Production

By on 3 Nov 2008 in Other with 0 Comments

Oil prices started out last week by falling to $61, the lowest since May 2007. By the end of the week, however, prices recovered due to stronger equity markets, climbing above $70 a barrel on Thursday and closing at $67.81 on Friday. A new report that the US GDP

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