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Archive for June, 2009

Interview with Charles T. Maxwell (Part 2 of 2)

By on 29 Jun 2009 in commentary with 7 Comments

It’s a little difficult to answer because there are two different kinds of money we’re talking about: what will industry spend and where should government spend? Because if the industry is going to spend money on shale gas, which it is, then the government doesn’t have to spend any money there. Shale gas is a natural answer to the near-term energy problem; it’s one of the big answers we’ve got.

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Briefs

By on 29 Jun 2009 in Other with 0 Comments

(clips from recent Peak Oil News dailies are indicated by date and item #) Kuwait’s oil minister said the emirate’s production capacity of 3 million b/d was sustainable without the help of international oil companies, but conceded that foreign expertise would be needed to develop heavy oil fields in the north. (6/27, #4) The five […]

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Production and Prices

By on 29 Jun 2009 in Other with 0 Comments

Crude prices gyrated within a dollar or two of $70 a barrel last week as weaker equity prices and sluggish economies trumped unrest in lran and damaging insurgent attacks in Nigeria. There seems to be a growing sentiment that hints of an economic recovery someday have already been priced into the oil market, which has […]

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In the Congress

By on 29 Jun 2009 in Other with 0 Comments

By a narrow vote of 219 to 212 the 1200-page Waxman-Markey climate change legislation passed through the House of Representatives on a largely party-line vote. Only eight Republicans voted for the bill while 44 conservative, mostly rural Democrats voted against it. The bill reaches into nearly every aspect of the US economy by imposing steep […]

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Review June 29, 2009

By on 29 Jun 2009 in Peak Oil Review with 0 Comments

1. Production and Prices Crude prices gyrated within a dollar or two of $70 a barrel last week as weaker equity prices and sluggish economies trumped unrest in lran and damaging insurgent attacks in Nigeria. There seems to be a growing sentiment that hints of an economic recovery someday have already been priced into the […]

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Energy Fact of the Week

By on 29 Jun 2009 in Other with 0 Comments

In 2000, Saudi Aramco had just one offshore drilling rig active. By early 2009, the Saudi offshore drilling fleet, either owned or contracted, reached a high of 29. (6/24, #15)

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Larry Goldstein, director of special projects, Energy Policy Research Foundation

By on 29 Jun 2009 in quotes with 0 Comments

Asking why oil companies are interested in Iraq is like asking why robbers rob banks: because that’s where the money is. You can’t choose where the resources are. The risks are substantial, but everybody has to play by the same risks.

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A Shale Gas Boom?

By on 25 Jun 2009 in Other with 8 Comments
A Shale Gas Boom?

Will we have a shale gas boom? I’ve described the contentious argument among those who follow the natural gas industry. Generally, my sympathy lies with skeptics like Art Berman. As someone who has written extensively about peak oil, I’ve encountered the human proclivity to hype a situation far beyond any semblance to reality time and time again… Nevertheless, I’m going to say the jury is still out on this one. That’s not a cop-out, because the verdict will be in very soon, certainly within the next few years.

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Production and Prices

By on 22 Jun 2009 in Peak Oil Review Extra with 0 Comments
Production and Prices

Oil prices hovered around $71 a barrel last week with most movement linked to the climbing or falling dollar. The usual concerns about inflation and hopes for an economic recovery were the major factors in last week’s moves. Even a week of widespread rioting in Iran and three new production-cutting attacks on oil pipelines in […]

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Review June 22, 2009

1. Production and Prices Oil prices hovered around $71 a barrel last week with most movement linked to the climbing or falling dollar. The usual concerns about inflation and hopes for an economic recovery were the major factors in last week’s moves. Even a week of widespread rioting in Iran and three new production-cutting attacks […]

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Commentary: Interview with Charlie Maxwell (Part 1 of 2)

Commentary:  Interview with Charlie Maxwell  (Part 1 of 2)

By crushing demand, we are in effect gaining two more years, maybe three, in which we in the consuming world have added to our time before the peak, and could take good advantage of, since the peak is right upon us-I have it still at 2015 for all liquids. But, given the way we’re going about it, given the politics, given the direction of the world–like the Chavezs nationalizing all those oil service companies, and the continued Russian attitude–I don’t think that mankind is going to take advantage of those extra two or three years.

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Iraq

By on 22 Jun 2009 in Other with 1 Comment
Iraq

In the last few months, Iraqi oil exports have been hitting post-invasion highs as oil has begun flowing from northern oil fields to the export terminal in Turkey. However, the next few weeks are likely to mark a turning point for Iraqi oil production as US forces pull out of Iraqi cities and service contracts […]

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Natural Gas

By on 22 Jun 2009 in Peak Oil Review Extra with 2 Comments

The US’s supply of natural gas has been much in the news lately as prices have fallen to $4 /mbtu and a steady stream of announcements and articles have touted the potential of shale gas. In the short term, falling industrial production has reduced the demand for natural gas and electricity generated by natural gas. […]

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Briefs

By on 22 Jun 2009 in Other with 0 Comments

The Movement for the Emancipation of the Niger Delta destroyed six more pipelines and pumping stations in the last week. A statement issued by its spokesman, Gbomo Jomo, said the latest attack was in line with its campaign to cripple the entire oil and gas exports of the Federal Government. (6/18, #5) The escalation of […]

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Bill O'Reilly, The O'Reilly Factor

By on 22 Jun 2009 in Peak Oil Review Extra, quotes with 0 Comments

“I’m a free-market guy, but the government must step in to stop the [oilprice] speculators!” [Ed. note: can one make a more oxymoronic statement?]

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Statistic of the Week

By on 22 Jun 2009 in Peak Oil Review Extra with 0 Comments

Today more than half the USA’s nitrogen fertilizer is imported, and about 20 percent of the imports are from Russia. The cost of natural gas now accounts for up to 90 percent of the cost of making nitrogen fertilizer (6/17, #21)

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Bad Signs, New Bubbles

By on 18 Jun 2009 in Other with 7 Comments
Bad Signs, New Bubbles

Assuming the Bubble Next Time thesis is correct, where does that leave us? We will eventually get inflation rates over and above the 1-2% currently priced in. Burgeoning consumption in emerging economies will cause commodity prices will soar again as they did in the period 2003-2008:H1. The sky will be the limit for a barrel of oil. The United States economy will remain in the doldrums for many years. This is a worst of both worlds scenario. We hope for the best but in 2009, why shouldn’t we expect the worst?

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Review June 15, 2009

1. Production and Prices Starting the week at $68 a barrel, oil traded as high as $73 before closing out the week at $72.04. Once again the increase was mostly based on financial developments – a falling dollar, fears of inflation, and hopes for an economic rebound. However, the IEA did reduce its estimate of […]

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Marshall Adkins, Managing Director, Energy Equity Research, Raymond James

By on 15 Jun 2009 in Peak Oil Review Extra, quotes with 1 Comment

Global oil production peaked in 2008, and I think that as you scale back activity around the world, both because of low prices and the credit crunch, you going to see particularly the non-OPEC supply fall dramatically in 2010 and 2011…Crude supplies are going to fall, and the economy will rebound and new demand will […]

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US Imports

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

In recent years, the US has been importing roughly 400 million barrels of oil and products each month. The monthly totals have ranged between 450 million barrels and 340 million depending on shipping schedules, demand, and weather – particularly hurricanes. Roughly half of these 400 million barrels have come from four countries – Canada, Mexico, […]

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Production and Prices

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

Starting the week at $68 a barrel, oil traded as high as $73 before closing out the week at $72.04. Once again the increase was mostly based on financial developments – a falling dollar, fears of inflation, and hopes for an economic rebound.  However, the IEA did reduce its estimate of how much demand will […]

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China

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

While the OECD’s economies continue to stagnate, the situation in China is less clear. Chinese exports, which had been the mainstay of the economy, are now down by 26 percent from last year. To counter this drop, the government has launched a 1-year $700 billion stimulus package that is aimed at strengthening the country’s infrastructure […]

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Peak Oil = Peak Demand?

By on 11 Jun 2009 in Other with 8 Comments
Peak Oil = Peak Demand?

This outlook might fly in Disney World, but it is clearly impossible in the Real World. This leaves CERA with a public relations problem. Not only must they disavow their fantasy forecasts, but they must also explain away the fact that world oil production will probably never exceed its July, 2008 peak.

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Don Stowers, Editor, Oil & Gas Financial Journal

By on 8 Jun 2009 in Peak Oil Review Extra, quotes with 0 Comments

“The reality is that the economy will come back and when it does there are serious doubts as to whether the supply of oil will be adequate to sustain the economic engine. So all those doubters who criticized Matt Simmons’ view about peak oil may soon have to come to grips with the reality that […]

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Week of June 8, 2009

  1. Production and Prices Oil prices opened and closed the week around $68 a barrel. At one point they fell below $65 on news of a build in US crude stocks and later touched a high of over $70 on hopes that US unemployment was bottoming out. Oil’s connection to the dollar, equity markets, […]

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