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Archive for January, 2009

Prices

By on 29 Jan 2009 in Other with 0 Comments

There has been little production news in the past few days so oil prices have been taking their cues from the equity markets and economic developments. The NY Times ran a story on Monday about the unusual discipline that OPEC has been showing in cutting production. The Times estimates that so far OPEC has made […]

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Curbing Emissions and Consumption

By on 29 Jan 2009 in Other with 0 Comments

The White House has instructed the Environmental Protection Agency to reconsider whether to grant California a waiver to regulate automobile tailpipe emissions linked to global warming. If these standards are implemented it will force automobile manufactures to produce more fuel-efficient vehicles. This move is likely to set off a fight between the administration and those […]

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Week of January 19, 2009

By on 26 Jan 2009 in Other with 0 Comments

1. Last Week 2. The Year Closes 3. Quote of the Week 4. Briefs January 19, 2009 Commentary: Top Stories from 2008 Read Online Library and PDF Subscribe

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World Production

By on 26 Jan 2009 in Peak Oil Review Extra with 0 Comments

The first part of last week was dominated by concern over the sagging world economy and the expiration of the February futures contract which at one point sent oil below $33 a barrel. Lack of sufficient storage for crude in the US has been causing technical distortions to the US oil markets of late as […]

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OPEC still cutting

By on 26 Jan 2009 in Peak Oil Review Extra with 0 Comments

For the first time since OPEC began cutting production last fall, analysts are beginning to wonder if global production finally might be falling faster than demand. Tanker loads of oil that were unsalable a month ago are now selling relatively quickly as Middle Eastern oil exporters are notifying customers of significant reductions in contracted amounts. […]

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Obama’s first week

By on 26 Jan 2009 in Peak Oil Review Extra with 0 Comments

Shortly after being sworn in, President Obama issued an order halting the implementation of pending orders issued by the outgoing administration. Among these was the directive to expand off-shore drilling into previously banned areas. On Wednesday, however, the Interior Department announced that the leasing plan will continue. Of more interest was a hold the new […]

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Briefs January 26, 2009

By on 26 Jan 2009 in Peak Oil Review Extra with 0 Comments

China boosted crude oil production by 2.3 percent in 2008 while natural-gas output gained 12 percent even as the economy expanded at the slowest pace in seven years. (1/22, #12) Colombia‘s 2008 average crude oil output totaled 588,000 barrels a day, up from 531,000 barrels a day in 2007 as high prices in the first […]

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Quote of the Week

By on 26 Jan 2009 in Peak Oil Review Extra, quotes with 0 Comments

“The recent years of increased exploration and production spending have not been sufficient to substantially improve the supply situation. The age of the production base, accelerating decline rates and the smaller size of recently developed fields will mean that any prolonged reduction in investment will sow the seeds of a strong rebound.” (1/24, #1) — […]

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Contango

By on 19 Jan 2009 in Other with 0 Comments

Oil prices fell into the upper $30s early last week and stayed there. As it has for many weeks, the drumbeat of bad economic news and rising stockpiles competed with the OPEC’s efforts to cut crude supplies. For now, the sagging global economy has the markets convinced that demand for oil is dropping faster than […]

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OPEC’s progress

By on 19 Jan 2009 in Peak Oil Review Extra with 0 Comments

Raising prices by cutting back on global oil production is turning out to be more difficult than many imagined. Gone are the days when even a hint of a production cut would send prices surging, for after decades of experience with OPEC’s “cuts” many have grown skeptical of the cartel’s propensity to talk prices higher […]

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Quote of the Week

By on 19 Jan 2009 in Peak Oil Review Extra, quotes with 0 Comments

          “I do not believe low commodity prices and rig counts will be here for long.  Simply put, our industry rises and falls with the price of oil and gas, and two simple truths will provide upward pressure on prices for decades to come.  Those truths:  1.) supply is finite, and 2.) the world population […]

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Forecasts

By on 19 Jan 2009 in Peak Oil Review Extra with 0 Comments

As the global recession deepens, the agencies which prognosticate about future demand for oil are starting to back off on optimistic projections for 2009. The IEA which had been predicting an actual increase in the demand for oil in 2009 now says that production will fall by 0.6 percent or 500,000 b/d during the year. […]

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Briefs January 19, 2009

By on 19 Jan 2009 in Peak Oil Review Extra with 0 Comments

 An Israeli company announced that it has discovered what may be a deposit of over 3 trillion cubic feet of natural gas off of Israel’s Mediterranean coast. (1/18, #8)          Approximately 48% of U.S. E&P chief financial officers believe that the world has reached its peak petroleum production rate or will reach it within the […]

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Prices continue to slip

By on 15 Jan 2009 in Peak Oil Review Extra with 0 Comments

 Oil prices continue to fall this week as US commercial inventories increased by 8 million barrels, the flow of bad economic news continued, and OPEC production cuts failed to keep up with the apparent fall in demand. Oil inventories at Cushing, Okla. ended last week at a record 33 million barrels as refineries ran at […]

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OPEC keeps trying

By on 15 Jan 2009 in Peak Oil Review Extra with 0 Comments

 The Saudis are continuing to take the lead in efforts to cut OPEC’s production still further. Oil Minister al-Naimi told reporters that Saudi production is currently 8 million b/d and that February production will be lower than the Kingdom’s official target. Other sources say the Saudis will produce 7.7 million b/d next month. Iran and […]

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OPEC Cuts Production

By on 12 Jan 2009 in Other with 0 Comments

The Organization of Petroleum Exporting Countries said on December 17th that it would reduce its output target to 24.845 million barrels a day, a 4.2 million b/d cut from September production. At the time there was wide-spread skepticism among oil traders that OPEC would ever unite sufficiently to carry out a program of major production […]

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The Volatility Continues

By on 12 Jan 2009 in Other with 1 Comment

Gaza, OPEC production cuts, and the gas shutoff to Europe competing with an avalanche of bad economic news for control of oil prices. At the end, the bad economic news won with crude falling below $40 on Friday after having been above $50 on Tuesday. The week was highlighted by a 12 percent price drop […]

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Gaza

By on 12 Jan 2009 in Other with 0 Comments

A call by an Iranian military commander to cut oil exports to Israel’s supporters last week made little headway with conservative Arab governments who are completely focused on dealing with the plunge in world oil prices. Iran’s Foreign Ministry paid only lip service to the call for an embargo.  For Iran to go it alone […]

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Briefs January 12, 2009

By on 12 Jan 2009 in Peak Oil Review Extra with 0 Comments

 Investment banks want to hire 10 supertankers to store crude oil at sea, seeking to profit as futures contracts get more expensive later in the year. The cost of storing on supertankers works out at about 80 to 90 cents a barrel each month. (1/10, #4)          According to a senior Saudi official, oil demand […]

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Quote of the Week

By on 12 Jan 2009 in quotes with 0 Comments

“Dwindling prices could also shake the very foundations of oil allies like Mexico, Nigeria, and Saudi Arabia, which could experience internal unrest as oil revenues, and so state expenditures, decline.”  — Michael Klare, professor and author, oil and national security issues

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Market volatility continues

By on 8 Jan 2009 in Other with 0 Comments

On Monday and Tuesday oil prices continued a five-day climb — at one point touching above $50 a barrel on rising stock markets, the Russian gas shutoff, the Gaza fighting, and hopes that the recession would be over in the second half of 2009. On Wednesday, however, the roof fell in with oil falling over […]

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Russia and the EU

By on 8 Jan 2009 in Other with 0 Comments

On Wednesday Russia raised the stakes in its standoff with Ukraine by cutting natural gas flows still further. Moscow maintains that Ukraine is diverting gas intended for other customers to its own use. Russia is now sending about 170 million cubic meters of gas to Europe through the Belarus  and Ukrainian pipelines rather than the […]

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The Year Closes

By on 5 Jan 2009 in Other with 0 Comments

Oil prices rose by nearly 8 percent on Monday, touching $44 a barrel, after Israel launched airstrikes on Hamas facilities in the Gaza strip and made preparations for a land offensive. Anger in the Arab world was widespread and religious organizations in Iran began to recruit volunteers to fight against Israel.  OPEC announced that its […]

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Last Week

By on 5 Jan 2009 in Other with 0 Comments

It was yet another wild ride for oil prices last week as the markets continued to balance unsettling economic news, Israel’s attack on Hamas in Gaza, and the pace of OPEC’s production cuts. Prices were up 8 percent on Monday as the Israeli attacks began, down on Tuesday on economic concerns, and took a 14 […]

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US Oil Consumption

By on 5 Jan 2009 in Other with 0 Comments

On Monday the EIA released revised figures for US oil consumption in October showing that demand had only fallen by 833,000 b/d from a year earlier rather than the 1.4 million b/d that had been reported in preliminary estimates. According to monitoring done by the Department of Transportation, US highway travel in October was down […]

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