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Oil! Massive shale discovery in Texas

By on 8 Sep 2016 in news, notable posts with 0 Comments
Oil! Massive shale discovery in Texas

(CNN) Apache ( APA ) revealed the huge find this week after more than two years of stealthily buying up land, extensive geological research and rigorous testing.

The Houston company estimates the discovery, dubbed “Alpine High,” could be worth at least $8 billion.

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OPEC Monthly Oil Market Report August 2016

By on 22 Aug 2016 in news, notable posts with 0 Comments
OPEC Monthly Oil Market Report August 2016

(peakoilbarrel.com) When oil fell below $30 a barrel earlier this year, banks turned away from lending to energy companies. The price of crude has bounced back more than 80% from its February low, but banks are still wary.

Big banks cut loans to the energy sector by about 3% in the second quarter over all and some individual lenders pulled back much more, according to an analysis of July and August securities filings by Barclays analysts.

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Oil prices slip as short-covering rally fizzles

By on 8 Aug 2016 in news, notable posts with 0 Comments
Oil prices slip as short-covering rally fizzles

(Reuters) A worker walks at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015. Oil prices dipped on Friday, ending a two-day rally, as a glut of crude and refined products weighed on markets and investors eyed a possible stutter in China’s imports.

U.S. West Texas Intermediate (WTI) crude futures CLc1 fetched $41.74 per barrel at 0930 GMT (0530 ET), down 19 cents from their last close, after trading as low as $41.44 earlier in the day. They were on track roughly to break even on the week.

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Analysis

Oil glut seen extending into 2017 on weaker demand

By on 13 Sep 2016 in analysis, notable posts with 0 Comments
Oil glut seen extending into 2017 on weaker demand

(Toronto Star) The much-anticipated rebalancing of oil markets appears to be a bit further away after the International Energy Agency revised its forecast, trimming its expectations for the growth in oil demand and citing near-record production by OPEC’s Middle East exporters.

The IEA said Tuesday that global oil demand is rising at a slower pace than expected, lowering its forecast by 100,000 barrels a day to an increase of 1.3 million barrels a day in 2016 and 1.2 million barrels a day in 2017.

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Are Shale-Oil Companies Starting to Weather the Crude Slide?

By on 5 Aug 2016 in analysis, notable posts with 0 Comments
Are Shale-Oil Companies Starting to Weather the Crude Slide?

(Wall Street Journal) A truck used to carry sand for fracking is washed in a truck stop on February 4, 2015 in Odessa, Texas. … Debt from U.S. shale companies has held its ground even as oil prices have beat a fast retreat, a sign the firms may have adapted to an era of cheaper crude and could remain key suppliers to the market.

A build-up in stockpiles of oil has renewed downward pressure on prices: U.S. crude is now at roughly $42 the barrel, 14% below where it was at the beginning of June, when it appeared to be rallying.

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The One Chart That Shows Why Oil Prices Have To Keep Rising

By on 28 Jun 2016 in analysis, notable posts with 0 Comments
The One Chart That Shows Why Oil Prices Have To Keep Rising

(oilprice.com) There has been a lot of pessimism among oil investors in recent months, and indeed the bear market over the last couple of years in black gold has destroyed many nest eggs. With that said, oil investors who have run for the hills could find themselves regretting that decision in the months and years to come.

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Viewpoints

What Hubbert Got Really Wrong About Oil

By on 8 Sep 2016 in notable posts, viewpoints with 0 Comments
What Hubbert Got Really Wrong About Oil

(Forbes) If you happen to be someone who is interested in the topic of “peak oil”, you know the name M. King Hubbert.

The history of the scientific study of peak oil dates to the 1950s, when Hubbert, a Shell geophysicist, reported on studies he had undertaken regarding the production rates of oil and gas fields.

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Is the Oil Industry Dying?

By on 10 Aug 2016 in notable posts, viewpoints with 1 Comment
Is the Oil Industry Dying?

(psmag.com) Talking about “peak oil” can feel very last decade. In fact, the question is still current. Petroleum markets are so glutted and prices are so low that most industry commenters think any worry about future oil supplies is pointless. The glut and price dip, however, are hardly indications of a healthy industry; instead, they are symptoms of an increasing inability to match production cost, supply, and demand in a way that’s profitable for producers but affordable for society. Is this what peak oil looks like?

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The Death of OPEC

By on 26 Jul 2016 in notable posts, viewpoints with 0 Comments
The Death of OPEC

(Project Syndicate) The Organization of the Petroleum Exporting Countries is dead. Saudi Arabia killed it. Now, OPEC is just a toothless zombie, attracting attention, but without having any impact on the living.

Few have noticed OPEC’s demise for a simple reason: it never really had the impact that it was widely perceived to have. It was never actually a cartel, possessing monopolistic market power. Anyone who thought otherwise was mistakenly attributing to it Saudi Arabia’s market power.

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Other Recent Posts

Arthur Berman (consulting geologist) on global oil inventories

By on 24 Apr 2017 in quotes with 0 Comments

“Global oil inventories are falling because of OPEC and non-OPEC production cuts, but the road to market balance will be long.”

–Arthur Berman, Consulting Geologist

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Peak Oil Review – 24 Apr 2017

By on 24 Apr 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 24 Apr 2017

Last week, oil prices underwent their biggest weekly decline in a month as the markets lost confidence in OPEC’s ability to reduce the global oil surplus in the near future. The move was supported by reports that a glut was developing in the physical oil market in the North Sea area as lower Asia purchases, increased shipments of US crude to the EU, and more supplies coming out of storage all served to drive down prices. At week’s end, US futures were once again trading below $50 a barrel and London’s Brent below $52.

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Head of analysis at Rystad Energy on new oil discoveries

By on 17 Apr 2017 in quotes with 0 Comments

“The shortcoming of oil replacement by the drill bit has been quite drastic … Discoveries are not keeping up with production.”

Per Magnus Nysveen, head of analysis, Rystad Energy. Last year, 10 billion barrels of oil were discovered, around one third of global consumption, including well-appraisal activity, said Nysveen. He added that supply could fall short by up to 2 million barrels per day within seven to eight years.

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Peak Oil Review – 17 Apr 2017

By on 17 Apr 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 17 Apr 2017

After climbing steadily since March 27th, oil prices stabilized at the $53-55 level late last week. As usual, prices got a boost from various oil minister’s comments about how well they were doing in meeting their production cut goals and how they are considering extending the cuts until the end of the year. The monthly OPEC report shows that the cartel’s production jumped by about 1.2 million b/d after production cuts were first seriously discussed last fall, and then fell about the same amount after cuts started in January. The net result was to leave OPEC’s production about where it was through most of 2016.

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Canadian Natural Resources Minister on the future of wind energy

By on 10 Apr 2017 in quotes with 0 Comments

“It’s clear that wind energy’s time has come. My message is a very simple one: our government is committed to addressing climate change, and we know that wind power will play a critical role in those efforts.”

Canadian Natural Resources Minister Jim Carr.

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Peak Oil Review – 10 Apr 2017

By on 10 Apr 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 10 Apr 2017

After falling on Monday on the news that Libya was resuming production from its largest oilfield that was shut down the previous week, oil prices moved higher for the next three days on hopes that the OPEC production cut was having the desired effect. Some believe that oil traders have been too busy watching the well-publicized build in US crude stocks, while excess inventories in other parts of the world are shrinking away unnoticed. Futures prices, which were about $48 a barrel the US the week before last, climbed to over $51 a barrel by Thursday.

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President Trump & the founder and CEO of US’s largest coal company on the future of mining jobs in America

By on 3 Apr 2017 in quotes with 0 Comments

“My administration is putting an end to the war on coal…The miners are coming back.”

US President Donald Trump, as he signed the “energy independence” executive order

“I suggested that (Trump) temper his expectations. He can’t bring them back.”

Robert Murray, founder and CEO of Murray Energy, the biggest US coal company

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Peak Oil Review – 3 Apr 2017

By on 3 Apr 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 3 Apr 2017

Crude prices rebounded sharply last week erasing nearly half the $7-8 selloff that began in early March. The March price drop came on the consensus that increasing crude inventories and ever higher rig counts would offset the 1.8 million production cut that OPEC was trying to orchestrate. At the close Friday, New York futures were at $50.85, and London was at $53.83.

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Commodity Equity Business Unit Leader in EMEA at Goldman Sachs on Arctic Oil Exploration

By on 27 Mar 2017 in quotes with 0 Comments

“Overall the idea that we have to go into the Arctic to find new resources I think has been dispelled by the enormous cheap, easier to produce and quicker time-to-market resources in the Permian onshore US. We think there is almost no rationale for Arctic exploration. Immensely complex, expensive projects like the Arctic we think can move too high on the cost curve to be economically doable.”

Michele Della Vigna, commodity equity business unit leader in EMEA at Goldman Sachs

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Peak Oil Review – 27 Mar 2017

By on 27 Mar 2017 in Peak Oil Review with 0 Comments
Peak Oil Review – 27 Mar 2017

Last week oil prices fell for the third time in a month, closing in New York at just below $48 a barrel. Increasing US crude inventories remain the chief motivation for the price drop as many traders now see higher US production as largely offsetting the OPEC/NOPEC production cuts. OPEC and its allies met in Kuwait last week to consider the situation and to talk about extending the cuts until the end of the year. In the meantime, the US rig count continues to grow amid some doubts as to whether all the new drilling will result in a concomitant amount of production.

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