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Archive for October, 2017

Batteries & Offshore Oil Drilling in Gulf of Mexico

By on 30 Oct 2017 in quotes with 0 Comments

“There’s going to be a lot of excitement around batteries in the next five years. And I would say that the country will get blanketed with [battery] projects.”

Spencer Hanes, Duke Energy business development managing director

“In today’s low-price energy environment, providing the offshore industry access to the maximum amount of opportunities possible is part of our strategy to spur local and regional economic dynamism and job creation and a pillar of President Trump’s plan to make the United States energy dominant.”

Ryan Zinke, US Secretary of the Interior, after announcing a record 77 million acres for lease in the Gulf of Mexico

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Peak Oil Review – 30 Oct 2017

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Peak Oil Review – 30 Oct 2017

London futures closed above $60 a barrel last week for the first time since 2015. New York futures are now about $6 a barrel lower than London, increasing the incentive for foreign refiners to buy and export more US oil.  The main impetus for the price surge on Friday was comments by Saudi Crown Prince bin Salman that he backs an extension of the OPEC production freeze until the end of next year. Coupled with the Prince’s statement were upbeat OPEC pronouncements about the increasing demand for its oil and the dubious proposition that compliance with the production cut was now at 120 percent of the agreed numbers. Beyond the hype, however, are real concerns that the Iraqi, Iranian, and Venezuelan situations could deteriorate and lead to lower exports.

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Analyst at FBR Capital Markets on the Future of Deepwater Oil

By on 23 Oct 2017 in quotes with 0 Comments

“Deepwater is going to be playing a much-reduced role on the global oil-supply stage relative to what the industry expected as recently as three years ago.”

Thomas Curran, an analyst at FBR Capital Markets in New York.

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Peak Oil Review – 23 Oct 2017

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Peak Oil Review – 23 Oct 2017

Oil prices were little changed last week with New York futures trading around $52 a barrel and London around $57. Numerous factors continue to affect oil prices: Baghdad’s seizure of the Kirkuk oil fields and the consequent reduction in exports; a stronger US dollar brought on by the prospect of a tax cut; a falling US oil-rig count; a large drop in US crude inventories due to the recent hurricanes and unprecedented exports; the brightening prospects for a nine-month extension of the OPEC production freeze; and finally a warning that the China’s economy may not be doing as well as many believe. When all these forces pulling in various directions were netted out, there was little change.

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Chief Executive at Vitol on the Prospects of US Oil Production

By on 16 Oct 2017 in quotes with 0 Comments

“I think the question, a little bit in the longer term is – is this the last big rise in US production?… If you look at the economics on most of the big Permian players, not many of them make a lot of money.”

Ian Taylor, chief executive at Vitol, which trades more than 7 percent of global oil.

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Peak Oil Review – 16 Oct 2017

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Peak Oil Review – 16 Oct 2017

Prices climbed last week with Brent up almost 3 percent to $57.17 a barrel and WTI up over 4 percent to close the week at $51.45. The major developments affecting prices was an unexpected jump in Chinese oil exports of 1 million b/d in September to 9 million and the announcement that the President would not certify Iranian compliance to the nuclear accord. Statements by OPEC and Russian officials concerning a possible extension of the production freeze and the growing concerns that there will be hostilities in the aftermath of the Kurdish independence vote also supported prices.

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Head of the IEA’s renewable energy division on China’s Solar PV industry

By on 9 Oct 2017 in quotes with 0 Comments

“The solar PV story is a Chinese story. China has been for a long time the leader in manufacturing. What’s new is the share in the market. This year, it was equivalent to the total installed capacity of PV in Germany.”

Paolo Frankl, head of the IEA’s renewable energy division

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Peak Oil Review – 9 Oct 2017

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Peak Oil Review – 9 Oct 2017

US crude futures fell to $49.23 on Friday for a weekly loss of nearly 5 percent – the first weekly drop in more than a month. Hurricane Nate struck the US Gulf Coast Saturday night forcing the temporary closure of some 70 percent of US offshore oil production. In comparison with other recent hurricanes, Nate was relatively weak, so the damage to oil production and refining should be minimal and production back to normal in a day or two.

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Director of unconventional resources for IHS on the profitability of the Permian Basin

By on 2 Oct 2017 in quotes with 0 Comments

“The Permian Basin is America’s super basin in terms of its oil and gas production history, and for operators, it presents a significant variety of stacked targets that are profitable at today’s oil prices.”

Prithiraj Chungkham, director of unconventional resources for IHS

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Peak Oil Review – 2 Oct 2017

By on 2 Oct 2017 in Peak Oil Review with 0 Comments

After climbing steadily for over a month, oil prices slid downwards about a dollar a barrel last week ending up circa $51.50 in New York and $56 in London. The summer price surge took oil to the highest seen in two years with New York futures climbing from $42 a barrel in late May to peak above $52 last week. Several factors sustained the summer price surge. OPEC and the IEA released reports forecasting that global consumption would be higher. The Kurd’s independence referendum which led to Turkey threatening to block Kurdish oil exports was another factor, as were the effects of the hurricanes in the Gulf of Mexico.

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