Aramco's IPO and oil prices ()
Whatever it is, you wouldn't want to be the oil minister of Saudi Arabia. Forget the exciting remuneration, you'll have to have thick skin, extraordinarily embittered at that, to wade over the thankless challenges. For one, the Kingdom shows all signs of nervousness. Over that, September's drone strikes on Saudi oil facilities wiped out half of [...]
The battle for Libyan oil ()
Not long ago, we heard of Libya's long drawn path to freedom. Remember Gaddafi and the civilian uprising in the country? The Arab spring, as it swept Libya unsparing the authoritarian Gaddafi regime, promised to have ushered in a new beginning. But eight years on, how is Libya? Well, the country is mercilessly split between East and West with [...]
Waking into our new volatile age of oil prices ()
Consider some recent headlines: "World Bank Warns Of Extreme Volatility In Oil Markets", "International Energy Agency Head: Oil markets are entering an era of unprecedented volatility" and "Oil prices spike, stocks plummet as uncertainty roils global markets - Washington Post" . All was calm when I predicted in February 2018 at oil-price.net [...]
4 oil price predictions for 2019 ()
Last year, we gave out five blazing predictions as we stepped into a brand new 2018. And, how did we fare? Well, the year isn't new anymore but we did get 5 out of 5 of our predictions right! Self-congratulations are in order reaffirming why you read us. For 2019, really it's more of the same, but with some caveats. Investors, listen. Readers, [...]
Saudi Arabia steps backwards despite high oil prices ()
For a nation, what's a year? Well, in the timing of the bigger picture, not much. Still, a year can cast its shadows long and fast. Essentially, as I was analyzing the ebb and flow of oil prices the past year, I couldn't but reflect on the changes a year can make. A year ago, Saudi Arabia was making the news for its intense, and seemingly [...]
Iran tensions to send oil price past $150 - again ()
After scaling a three-year high of $79 a barrel, oil prices fell taking a nine percent drop on the back of better supplies, resumption of Libyan oil production and increased Saudi oil output. But the reversal began soon enough with the prices climbing back. Plenty of reasons? Let's say a single one - sanctions on Iran. Yes, you heard right. [...]
Sanctions and oil prices ()
Ever heard of harmony in oil prices? Recently, Brent crude oil hovered near the $80 mark, the maximum since November 2014. So it goes. Oil prices are on a rage, riding on a more than three-year high. The increase in prices comes on the backdrop of geopolitical tensions and sanctions tightening the supple oil market. Well, the recent escalation in [...]
Is Volatility in Oil Price on the Way, Again ? ()
Experts say that you shouldn't look at your pension investments too often as you might make unwise decisions. I don't follow this advice. The reason that I'm drawn to tending my pension spreadsheet weekly, if not daily, is two-fold. First, I'm told by professionals who read the tea leaves on this sort of thing that I have Asperger's syndrome. It [...]
5 Oil Price Predictions for 2018 ()
It is the time of the year again for our highly anticipated oil price related predictions for 2018. As our millions of faithful readers are aware, we have a rather impressive track record -from predicting the formation of ISIS to the crash of oil prices; from presenting Trump's potential oil policies to the forecast of OPEC's gradual decline. [...]
Stable oil prices herald sea change for Strategic Petroleum Reserve ()
Strategic Petroleum Reserve (SPR) is a repository of crude oil for emergency purposes built primarily in countries dependent on oil imports. Stored in four deep underground salt caverns along Texas and Louisiana Gulf coasts, SPR in the US is the world's largest. Its intended purpose is to cushion against sudden shocks in the oil market. Even [...]
Impact of Hurricanes on oil prices ()
Harvey, making landfall as a Category 4 hurricane, battered southeast Texas a few days ago. Though downgraded to a tropical storm later on, it left a trail of massive destruction including loss of lives, in its wake. With many parts receiving more than fifty inches of rain, Houston, the fourth largest city in the US, took the brunt of [...]
Thank finance for sharp oil price decline ()
Already, crude oil prices are down by well more than 18% compared to early 2017. Oil production has risen in countries like Libya and Nigeria. Quite naturally, with above 'target' production in Saudi Arabia too, oil supply rose by 720,000 barrels a day across the world including 340,000 barrels a day in OPEC countries this June. Global [...]
Shale producers won OPEC's oil price war ()
Some wars are fought on the sidelines. They too are full of ideas, intrigue and bravado. Some backfire thoroughly. The Saudis took a brunt of it in their war with shale. In the US, after the peak oil production of early seventies, the oil industry went into a limbo. It even looked like the US would be an importer of oil forever. Yet, thing did [...]
Oil prices gyrate amid geopolitical concerns ()
Well, only three months into the year and so far 3 of our 9 initial predictions for 2017 have already unraveled and the rest are in the process of doing so. keystone pipeline is happening oil prices remain in the $50 range major new pipelines are being built to corner the European energy market Oil prices gyrate Yes, oil prices are yo-yoings [...]
Effects of massive pipelines on oil prices ()
Decidedly, 2017 will be the year of pipelines. Let's draw a parallel with the internet if we should. This article comes to your computer reliably through a series of pipes that did not exist 20 years ago. In many aspects, today's oil delivery infrastructure is still like the internet of two decades ago trickling over an unreliable modem [...]
Russian gas pipelines and hacking the elections ()
Russia has been in the news lately, amid allegations that it "hacked the vote". Yes, the very 'vote' that granted ascendancy to Trump as the 45th president of America. What a day January 20 is going to be, so! Many believe that Russia with a volatile, if not belligerent, President aided Trump in no mean measure. Did Russia shift the scale? [...]
9 oil price forecasts during Trump presidency ()
We're on a roll when it comes to accurately predicting major geopolitical events and their impact on oil prices. In our article titled Takeover of Oil by Militias" published in 2012, we successfully anticipated that Islamic militants (ISIS) would use oil revenues to fund the formation of their own theocracy. In 2013, in our article titled [...]
Trump, Clinton and oil prices ()
The November elections will hoist either Donald Trump or Hillary Clinton into the Presidency. Given that the US is one of the leading producers of oil , what will change with a new President? Well, to answer the question, the shortcut is to look at the 'one' the oil industry favors. Through it all, Donald Trump has promised the moon to the [...]
The downside of low oil prices ()
At first sight it appears that low oil prices are good for society. A low oil price helps us save dollars at the pump, acts as an economic catalyst making exchanges cheaper and thereby stimulating the economy. However, there are downsides as well, often out-of-sight-out-of-mind and we will address these today. Change in economic [...]
Brexit, the Turkish coup and oil prices ()
We've been hearing a lot about Brexit. What is Brexit, by the way? Well, in June a referendum was held in Britain to decide whether the nation should remain with the European Union or not. The British people embraced uncertainty and voted to 'exit' the European Zone which is termed, Brexit. In a nutshell, Brexit, is the UK voting to exit from [...]
Saudis lose US clout over oil price war ()
In an event that went largely unnoticed, we have, in fact, passed the point in human history where OPEC's key member Saudi Arabia can dictate oil prices any longer. No one seems to have taken in the momentous occasion if not comprehended its historical significance. Much hasn't been said or written, it has to be added. Long time readers of [...]
Six reasons why oil prices reached new 2016 highs ()
Crude oil was at a 13-year record $25 low in mid-January 2016 and has soared more than 70 per cent since. The battle is on again. We are talking about the mighty forces whipping up the oil prices. How does the investor work out where the oil price will go? Ultimately, you have to make your own forecasts, at least on the general, long term [...]
Oil price at $35 amid bribery scandals ()
The Brent Crude Index hit $27.1 on January 20th this year - its lowest point since June 2003. The index's lowest point in the last 20 years was at $10.19 back in December 1998. As the price slid at the beginning of January this year, many analysts dusted down the history books and predicted that crude price were going back down to that level. [...]
How oil price volatility explains these uncertain times ()
The numbers say that these should be the best of times for America. The economy has been growing for five years. Unemployment is low. Inflation is almost nonexistent and gas is cheap. Yet, many Americans feel deeply uneasy about their future prospects. Uncertainty is the catchword of the moment. This uncertainty is contributing to growing [...]
Oil price in $20 range and 6 trends for the year ()
At last, the oil price has fallen in the $20 range. Its rate of decline is all the more impressive, having lost $10 - a third of its value - in one month. Although the price of a barrel of crude oil hasn't reached its all time low yet, adjusted for inflation, of $12.45 from December 1998, it will get there in less than a month if the same [...]
Syrian war, oil prices and the Paris attacks ()
In our last article we predicted that thousands of hardened ISIS fighters, blending among refugees, would march into Europe undetected. We also advised our readers that this would spread distrust between European powers and borders would go back up in an attempt to stem the invasion, at the cost of slowing down European economies. We were right [...]
Oil prices and the Syrian civil war ()
Most watch in disbelief as hordes of Middle Eastern migrants enter Europe with little to no resistance from border control. Whereas refugees are normally women and children, these migrants are for the most part young males of fighting age leaving a war zone. That prompts concerns on their true motives. Europe is divided regarding its course [...]
Who benefits from lower oil prices? ()
Lower fuel prices are great for the consumer, but we know that not all of the cost saving of lower crude oil and gas prices have been passed on to the general public. Oil and gas refiners prosper from lower oil prices. Like the rest of the oil industry, refiners' revenues are down, but their profit margins are up significantly. Refiners are [...]
Why don't gas prices fall? ()
Since the price of crude oil started to tumble in June 2014, almost $80 has been wiped off the cost of a barrel of oil from the peak to the trough of oil market indices. As a barrel of oil represents 42 gallons, that price fall works out at about $1.60 per gallon. However, the pump price of a gallon of gasoline only decreased by $1.20. Why? [...]
Low Oil Price Challenge met with American Ingenuity ()
The price of oil has been falling since July of last year, and many industry analysts have struggled to find a direction in the market. Many wish the price of oil would rise again and seek any signs of their hoped-for increase; others can see no reason for a rise and explain that the low price of oil is now the new normal. A lower [...]
The Top 6 Reasons Oil Prices are Heading Lower ()
Investors and speculators can make money in any market no matter which way prices move. In a rising market, you buy and then sell later at a higher price to make profit; in a falling market, you commit to sell and then buy later at a lower price (shorting). The key element on deciding on an investment strategy in crude oil is to work out where [...]
How Markets Influence Oil Prices ()
You would have read here, at oil-price.net, that oil producers and refineries use the Brent Crude Index and the West Texas Intermediate Index (WTI) to settle contract prices for oil delivery. The real-world contract price for oil can vary widely, despite whatever the current price of WTI and Brent Crude is at the time of contract negotiation. [...]
Current Oil Prices Create Opportunities ()
The oil industry relies on a steady stream of exploration and innovation in order to locate and exploit ever more remote and inaccessible reserves of oil. Periodically, new technology opens up new oil fields and those methods are exploited to the point of creating a glut in the market. New producers need to price themselves into the market and [...]
Will Collapse in Oil Price Cause a Stock Market Crash? ()
The Black Monday stock market crash of October 19th, 1987 was the largest one-day percentage decline in the Dow Jones Industrial Average. The crash was a genuinely perplexing event. To informed observers it seemed to have little basis in economic fundamentals. There were various "hand-waving" theories, including that the introduction of [...]
Falling Oil Price slows US Fracking ()
Recent falls in oil prices alter the financial dynamics of oil extraction. Certain sources of oil entail lower costs than others. For example, conventional pumped oil extraction in high pressure onshore wells costs relatively little to set up and operate, whereas remote oil fields beneath icy seas require specialized equipment and override wages [...]
Oil Price Fall Threatens US Oil Production ()
A falling oil price is good for the US consumer and good for the US economy. Transport costs feed into the price of every physical product, so if oil gets cheaper, everything gets cheaper. If the oil price falls too far, however, the USA's recent fracking boom will come to an end. Forces are at play to end the USA's projected energy [...]
Oil Price Drops on Oversupply ()
In June of 2014 the Brent Crude Oil Price hit $115 per barrel and many oil market insiders were predicting higher prices. Other analyst however, called a peak, and their predictions proved to be correct. By the beginning of October 2014, the Index dropped to $95 and predictions of further falls down to $90 or even $80 hold sway. What [...]
Partial Lift of Crude Oil Export Ban ()
Back in February 2014, oil-price.net posted an astonishing report on the US government's trade restrictions on its own oil industry. While other governments protect their home industries and give preference to their own national interests, by a convoluted path of logic, successive administrations in the US stymied the producers of crude oil in [...]
Boom time for Crude Oil in the US ()
OPEC, the United States of America is here, and how. As the top oil producing nation for 2014, the U.S. has steadily left the world behind. Who said oil in the US was always under sempiternal stormy weather? Play a serenade. According to the latest estimates, the U.S. is bypassing not only oil behemoth Saudi Arabia but also slapdash [...]
ISIS creates an oil shock, but why? ()
Followers of international politics were mostly taken by surprise early this month, when a hitherto unreported rebellion in Iraq suddenly threatened to shake the world's oil markets. Throughout the year, the newspapers of the Western world were focused on Syria, then the Ukraine. No one seemed to have their eye on Iraq. Where did these Iraqi [...]
Oil boom but infrastructure woes? ()
The much ballyhooed story of energy independence in the US is almost here, thanks to shale oil production from Texas and North Dakota. Also in the picture, there's the growing production from Canadian oil sands. From being hugely dependent on overseas supply, the US has come a long as it sources almost 66 percent of its crude oil from North [...]
What sets Oil Prices? ()
Did you ever wonder what makes the price of oil move and why movements in the price of oil don't always feed through to the gas station's prices? Who decides the price of oil and how do all the oil businesses in the world hedge against sudden movements in the price? Although there are well known oil price indices in the world, the mechanism that [...]
Russian oil motives in Ukraine ()
The recent Russian takeover of Crimea has grabbed the world's attention. The Russian government has long held a secret desire to recover the peripheral territories that were split away from the Soviet Union at the collapse of Communism. After decades of independence, Ukraine, Belorussia, Lithuania, Latvia and Estonia still rely on fuel supplies [...]
The Keystone XL Pipeline Controversy ()
A review of news headlines in early 2014 will alert those interested in the US oil industry to a raging controversy and planning row over the construction of the Keystone oil pipeline. This infrastructure project is intended to transport tar sands oil from Canada to US refineries. Environmentalists and their allies in the Democratic Party are [...]
Oil Export Ban Hurts US Oil Industry ()
The United States of America, land of entrepreneurship and innovation, is a major campaigner on the world stage for free markets and liberalized economies. So, few Americans would believe that their government actually prevents a US industry benefiting the economy through exports. Indeed, the oil sector, one of America's iconic industries is [...]
Natural Gas Trucks - has the time come? ()
It's as official as it can get. There's a shale boom scampering around the country. At the heart of it, there's cheap Natural Gas. Obviously, can the Natural Gas trucks be far behind? And, the truck operators are asking - should one be a luddite and sneer at the trucks running on Natural Gas or embrace them before it's too late? After all, [...]
Crude Oil and the Syrian Conflict ()
Noticed something whirring overhead? Must be the smell of drama. It seems that the Arab countries are willing to fund the entire operation of any U.S. military adventure in Syria. Says, Secretary of State John Kerry, "That's how dedicated they (Arab Gulf states) are at this. That's not in the cards, and nobody's talking about it, but they're [...]
Oil Price Volatility on the Way? ()
In a previous Oil-Price.net articles published in 2010 and 2011 , I discussed predictive relationships that appear to occur between large, rapid swings in oil price and recessions, stock market crashes and shifts in political polls. Given the economic disruptions that nearly always happen in the aftermath of oil shocks, it seems important to [...]
Shale: High depletion rates in Bakken ()
If you can, you could term it delusion, the theory that Shale gas is the answer to all problems in terms of energy. Just extract the gas, ship it across the pipeline and export the excess, or so goes the popular theory (boom. How easy!). Let's call this 'Sale for Energy Security Theory' or SEST) If you believe in SEST, here's a simple task [...]
Oil Price and Egypt ()
Go, check the oil prices. Haven't they galloped to $106 a barrel? Indeed they have, on the back of turmoil in Egypt and tensions with regard to the Suez Canal. Not long ago, the uprisings in the Middle-East pushed the price of Brent Crude to over $100 a barrel, just like that. Evidently, notwithstanding sporadic declines, oil prices have shown [...]
OPEC and oil prices - is the story over? ()
Previously on OIL-PRICE.NET, we've looked at reasons for lower bound of oil prices. With questions asked from our readers, we've decided to take another look with special emphasis on OPEC. For, OPEC is an important factor in the 'price setting' feature of oil industry. Yes, it sets the tune of oil prices for its member nations, which export oil. [...]
What is the lower bound of oil prices? ()
We have written extensively about the drivers of oil prices to the upside: higher production costs, the lack of transcontinental pipeline in North America, skyrocketing oil demand in China, and going by recent findings, price-fixing by oil majors, traders, speculators and market manipulation. But what about the downside? It seems oil prices [...]
North Korea and its effect on oil price ()
Deja vu. The more things change, the more they remain the same, don't they? Take North Korea, for instance. If the ascension of Kim Jong-un promised change, it -alas- wasn't meant to be. A liberal education in the West or the luxury of a younger age or passion for modern gadgets couldn't nudge Kim Jr. to lead his country to modernity. Forget [...]
The Sequester and Oil Prices ()
Well, March arrived with 'the sequester,' didn't it? As you heard, on March 1, 'the sequester' swung into action with President Barack Obama signing an order to bump away $85 billion from the budget of Government agencies between March 1 and October 1, 2013. If there lurked some hope of a different budget plan with last-minute resolutions, what [...]
American Oil Revolution ()
By now, you'd have heard the news (yes, the world doesn't end on February 30, let alone on December 21) that the US is set to become the world's largest oil producer in a decade. So, how did this great nation, perceived as emaciated on the oil front, turn around? After all, not long ago, any analysis of the oil scene in the US treated [...]
Open Letter to Obama on Energy Policy ()
Congrats, Mr. President. We hope the second term, you know, without the burden of having to face another election, doesn't make you complacent. You must be wondering why we - dealing predominantly with oil and its cousins - are writing to you. Well, we'll come to that. In March you said, "We can't have an energy strategy for the last century [...]
Takeover of Oil by Militias ()
Iraq wars 1 and 2 were fought as much on the ground as in the media. Embedded journalism, the war on terrorism, toppling an evil dictator and spreading freedom were all images used to instill on the public, justification for the invasion of Iraq. These wars were a paid spokesperson's dream come true: immense budgets to convince the public that [...]
Oil and Refineries ()
The debate is raging in full swing: the dearth of new refineries in the US. Many are surprised to see the continued increase in oil prices despite the surge in domestic oil production. Could refineries be the missing element in the equation, they wonder. 'Why not just build new refineries and scale down the price of oil,' our readers continue to [...]
North Dakota Oil Boom ()
Readers of oil-price.net have often wondered why the US isn't self-sufficient in oil, that is, in spite of the perceived abundant reserves. They may have a point, just so. Let's take a case to illustrate the oft repeated gasp -Why do we import oil, still. North Dakota. North Dakota is the second largest producer of oil in the US, next only [...]
Strait of Hormuz and Oil Price Rise ()
The Strait of Hormuz is in the news again. The Iranian parliament is considering a bill that threatens to close this Strait to oil tankers from countries that support sanctions imposed on Iran. More than half of the members of parliament are said to have signed the bill. Before that, what is Strait of Hormuz? The Strait of Hormuz is a [...]
Why Is Gas Price Remaining High When Oil Price Is Going Down? ()
Logic would seem to dictate that if oil prices are going down, the price of gasoline should follow suit and go down also. However the opposite has been observed lately. Of course as is the case in any fluctuation of oil prices, there is a range of reasons responsible for this. So why exactly is the price of oil dropping whilst the price of [...]
Will Oil Prices Decide the US Elections? ()
Before jumping into the question, a recap: In a previous article titled "Is Oil Fueling the Rise in Political Partisanship", Oil-price.net went on a search to see if rising oil prices had any influence on the behavior of American voters in the period between December 1999 and July 2010. We asked: could discontent sparked by an uptick in [...]
Iran, Oil and Strait of Hormuz ()
Strait of Hormuz, for the uninitiated, is the narrow passage connecting the Persian Gulf to the Arabian Sea, surrounded by countries like Saudi Arabia, Iran, UAE, Iraq and Oman. It is significant for the simple reason that about 17m barrels of oil produced in the Middle East is transported through the Strait. Right now, the strait is in dire [...]
WTI edging on Brent Crude Oil? ()
WTI vs Brent- which is the better benchmark? Or, perhaps what is WTI and what is Brent? Primarily, there are two types of crude oil traded in the international markets (three really, but two majors): WTI (West Texas Intermediate) and Brent. WTI used as a benchmark in determining oil prices, is crude oil of high quality. The spot price is [...]
Is Oil Fueling the Rise in Political Partisanship? ()
In 2009 I published a chart in an article at Oil-Price.net that showed volatility in the price of oil had risen and fallen in a series of seven spikes during the prior decade. The turbulent year of 2008, when oil jumped to over $140 a barrel, was part of this series. But what was unexpected was just how early in the 2000s the signature of [...]
Gaddafi's Legacy of Libyan Oil Deals ()
Gaddafi is gone, and how. Yet, his legacy would be tough to scratch. The news of his death marks the beginning of a new era for oil exploitation in Libya which markets greeted with a slight dip in oil prices. Today we look back at Gaddafi, oil and his international partners. Libya's dirty secrets for oil When NATO strikes started against [...]
Impact of Credit Downgrade on Oil Prices ()
Standard and Poor's (S&P) credit rating for the US was pulled down a notch to AA+ from AAA in August 2011 for the first time in the history of the rating system. The agency had expressed concerns about the nation's ability to manage its debt and hinted that the Obama administration should pull up its socks in this matter. The move was not a [...]
Tighter Oil Supply in 2012? ()
Predictions for the future? Here's one based on the available pointers: Tighter oil supplies in 2012. In fact, brace yourself, a potential demand surge could, in essence, bring this faraway calculation of next year, nearer by three months. And with it higher price for oil. Last month, the IEA announced release of strategic oil reserves to the [...]
FTC Investigates Oil Price Manipulation ()
Oil prices are at it again. In June 2011 rates have dropped almost 20 percents from the $114 high that it touched 4 months earlier. Going by the current trades, oil prices are hovering slightly below $98 as we enter the third quarter of 2011. The media, scrambling for an explanation it seems, has been quick to attribute these rapid fluctuations [...]
Why Gasoline Prices Refuse to Slide ()
Crude oil prices have been in the news off-late for the sudden fluctuations in the international market. Various factors such as a weak global economy, a strong dollar, and easing of tensions in the Middle-East have all led to the fall during the April-June 2011 period. The price per barrel of crude is around $90 as of June 2011. However, the [...]
Will Ending Tax Breaks for Big Oil Make a Difference? ()
The controversial bill proposed by the Democrats to end the substantial tax breaks extended to the major oil companies known as 'Big Oil' did not make it. Big Oil commonly refers to the five industry giants - Exxon, Shell, BP America, Chevron, and ConocoPhilips. It is estimated that these companies have garnered profits of about $900 billion in [...]
Oil prices down - for now ()
The price of crude oil is closely watched by market analysts and the common man alike. This is because the uncertainty associated with it brings frequent fluctuations depending on factors like the strength of the dollar, global politics, and natural disasters. This year has been a particularly unpredictable one and even the most seasoned [...]
Does Osama Bin Laden's Death Matter to Oil? ()
The political world seems to be at such crossroads as of right now. The Middle East seems to be at the center of all debates. The fact is that the reason for all these fiscal and political issues is a three letter word - OIL. Does Osama Bin Laden's death matter to oil? As the world celebrates Bin Laden's riddance, broader questions arise. [...]
Japan Seeks a Resilient Energy Policy ()
The massive earthquake and tsunami that hit Japan recently have left widespread destruction and loss of life in their wake. Besides the health hazards and reconstruction that looms ahead for the Japanese, the Fukushima Daiichi tragedy has thrown light on the nation's energy policy which has aggravated their problems at this crucial time. Japan's [...]
Russian Oil A Strategic Alternative Amid Middle-East Turmoil ()
Oil prices are always experiencing a little fluctuation. In the past few years, there have quite a few sudden rises in oil prices with a subsequent fall in the stock market. The London Brent has shown a rise above the coveted $110 a barrel mark for the first time in February 2011 after 2008. This time around, no one is too shocked. Global [...]
Egypt riots and Oil ()
Riots over high food are snowballing through the Middle East, and the latest theatre of these riots, Egypt, has Western Powers worried. Very worried. Never mind a democratic regime, free elections and freedom of speech. The real worry here is oil, or the control thereof. Egyptians are starving because Egypt is past Peak Oil Egypt's oil [...]
Is Shale Gas The Next Cradle of Energy? ()
No one source of energy has ever affected the course of geopolitics the way oil has. Barrel prices going up and down seem to work like the ECG of the global heartbeat. In view of the way the economy has been changing its ebb and flow in the last few decades, it has become increasing clear that there is need for a new and cheaper form of energy. [...]
Do Rising Oil Prices Predict Another Economic Recession? ()
The year 2008 saw the American economy topple over like a towering stack of light weight cards with the financial and market crash. The recession changed the economy of the country and left many people without jobs and means to sustain their families. More houses were put on foreclosure than ever before, leaving an even larger number of families [...]
Can the World Survive the Impending Oil Crisis? ()
The alarm bells have started ringing as surveys indicate that oil will become increasingly scarce beyond 2030 at the present rate of consumption. And to imagine a world bereft of adequate oil is simply bewildering. Oil explorations are going on all over the world and there appears to be some small pockets of suspected oil reserves, but these [...]
Making Oil from Plastic ()
Though plastic is one of the most versatile synthetically produced materials in the world, it also is one of the environmentally unfriendly substances produced by man. And considering its utility in myriad of industries and life spheres, it is impossible to give up plastic all together. Plastic has been charged guilty on several accounts, but [...]
The Mumbai Oil Spill ()
There was some good news for the Indian shipping industry as the nation's two premier ports-Jawaharlal Nehru Port Trust and Mumbai Port Trust-reopened for business partially. Thirty-two ships had been stranded at the two ports. Most of these carry vegetable oils, steel, crude oil, and naphtha. (adsbygoogle = window.adsbygoogle || [...]
Oil price at comfortable level? ()
Something to chew over: The reference basket of 12 crude oils of OPEC stood at 79 dollars on Friday, July 30. This year, the OPEC reference basket has been moving between $70-$80, to average $76/b. OPEC had suspended its official price band in 2005, so the reference basket doesn't reflect the oil price in the market as itself. However, it [...]
Oil prices headed lower ()
The oil price has ingratiated itself with the lower price band for some time now closing below $73 a barrel in New York on Friday. There seems to be a melange of reasons at play for the price drop. First on the list- oil and gas prices have been rocked by the uncertainty about the extent of economic recovery. The June job report, not on [...]
BP shadow on oil investments ()
If the signs are directly overhead, will they be visible or invisible? That the Deep Water Horizon rig, which exploded on April 20, was leaking prior to the explosion, as claimed by an oil worker who survived to tell the tale, seem to suggest the latter. The leak in the BOP, which was the reason for the explosion, was spotted, a week before the [...]
Nuclear option feasible for BP spill ()
The odds are stacked against: potential radioactivity, more pores, more spills and a whole array of add-ons. Put that way, it sure doesn't seem to come from a sapient mind, the provocative option of a nuclear explosion to contain the oil spill. But then, what has been wise about the whole action on the Gulf of Mexico? (adsbygoogle = [...]
Gulf oil spill: the aftermath ()
Forty long days, and the saga of the Gulf oil spill continues unabated. The efforts to contain the spill seem doltish in multi levels, more confounded as weeks march by, latest in the series 'top kill' too failing to plug the fissured well. Shifting strategies but failed response have mutated to an environmental disaster for the Gulf coast, [...]
Nuking the oil spill: nuclear option being considered? ()
The oil spill in the Gulf of Mexico continues to spill black venom into the sea. The world has got to see stirring images of oil gushing with decipherable great force, enough even to turn a staunch critic towards environmental protection. Initially scoffed and sniffed at, a radical solution in the form of a nuclear explosion is now trotting as a [...]
Use nukes to contain the oil spill ()
The April 20 explosion on the Deepwater Horizon rig not only killed eleven people but also triggered a massive influx of oil into the ocean. President Obama has called the oil spill a "potentially unprecedented environmental disaster." The cause of the explosion is not known and equally obscure and hazy are the means to contain the oil gushing [...]
Tar sand mining gaining force ()
The picture above the ground: The Boreal forest of Canada, a unique blend of pristine forests, water bodies, and wet lands. The picture below the ground: Tar sands, a source of oil, spread across 138,000 km2 of land. About 4.3 million hectares of the said forest has tar sand deposits. And, one or rather both the pictures are about to [...]
How Exxon paid zero taxes in 2009 ()
Here's a simple question in Economics: If Exxon Mobil, the largest U.S. energy company, made a profit of $35 billion, and if the income tax paid is $15 billion at a tax rate of 47%, how much did it pay to the IRS? The answer is, according to a report published recently in Forbes magazine, zero. How come the results when 47 percent of the [...]
US opens more areas for oil exploration ()
Sarah Palin is the one allied with the campaign "Drill, baby, drill", but in an inventive merger the President has laid claims for it too-very nearly. In a bold attempt to boost the domestic oil and gas production, he has opened up large offshore areas along the southern Atlantic coastline, the eastern areas of the Gulf of Mexico and northern [...]
Increasing role of China in the oil market ()
China, it seems, is everywhere. In what has become a routine, not a day passes without a mention of China in the news, in everyday conversations and predictions. As the next superpower, the country is wielding clout in every sphere possible. The growing influence is felt even in the oil market where the Asian giant is one of the biggest [...]
When OPEC decided on the production quotas ()
OPEC production quotas as expected Without giving any room for surprises, OPEC has agreed to keep the production quotas unchanged this time too. Meeting in Vienna on March 17, this is the fifth time since 2008 that the output levels have been kept unchanged. The oil cartel expects the emerging markets to absorb the oil output, and help [...]
The Oil Scene in New Zealand ()
Heard about Zealandia, the eighth continent of the world? Zealandia is said to be a submerged or micro continent that sank millions of years ago. Most of this submerged continent is said to be in the Pacific Ocean. Zealandia is rich in oil and could be the answer for unlocking the oil potential of New Zealand, the largest country in the [...]
Multiple reasons behind the oil price rise ()
In the U.S. there is an over-supply of crude oil in the market, at present. Not that it definitely should but, obviously, the price of oil should slide, right? Well, last week the oil prices closed at $81.79 a barrel. There reason? There isn't one but many. Before that let us look at some data: First, the industry report from the American [...]
Petrobras discovers oil again ()
There has been a slew of oil discoveries around the Brazilian coast in recent times. Could they make a difference to the oil thirsty world of ours? Let's see: Petrobras, the state controlled Brazilian energy firm, has found two accumulations of oil in the Campos basin. The recoverable reserves of the accumulations have been put at 65 [...]
Niger, Nigeria and the oil price rise ()
What's in a name? Niger or Nigeria will be in a better position to answer this question. If not anything the confusion in the name pushed oil prices to $80 a barrel last week. How? There was a coup in Niger and traders hustled to buy oil, mistaking Niger for oil rich Nigeria. (adsbygoogle = window.adsbygoogle || []).push({}); Mistaken [...]
Oil War in the Falkland Islands ()
This could be the script of any Hollywood blockbuster: The recent spat between Argentina and the UK over oil in the Falkland Islands. For, there is a conflict, two or more protagonists, oil, money and drama. (adsbygoogle = window.adsbygoogle || []).push({}); The diplomatic battle started hogging the headlines as Argentina began [...]
New Trade Regulation proposals and Oil ()
On Jan 21, the US President Barack Obama announced a series of measures to reduce risk in the financial sector. The proposals intend to tighten the regulatory mechanism and prevent a second- or like- sub-prime mortgage crisis. That is, the banks will not be able to put the whole economy at risk-again. (adsbygoogle = window.adsbygoogle || [...]