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.
(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 Continue Reading
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 Continue Reading
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 Continue Reading
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 Continue Reading
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)
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 Continue Reading
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.
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 Continue Reading
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 Continue Reading
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.
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 Continue Reading
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 Continue Reading
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 Continue Reading
“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?]
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 Continue Reading
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?
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 Continue Reading
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 Continue Reading
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 Continue Reading
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 Continue Reading
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 Continue Reading
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.
“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 Continue Reading