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Two diametrically opposed views dominate the current debate about where the oilprice is heading. In fact, we have been highlighting this threat to the energy industry in articles since 2015, for example here , here , here and here.) by Andreas de Vries and Dr. Salman Ghouri for Oilprice.com. Since (non-U.S. Since (non-U.S.
With OPEC breaking down and any kind of coordination among its members on price cuts looking increasingly unlikely, it now appears that oilprices could remain below $50 a barrel for a year or more. Stripper-operated wells account for all of the oil production in the state of Illinois, for instance.
The OPEC published its World Oil Outlook 2015 (WOO) in late December, which struck a much more pessimistic note on the state of oil markets than in the past. On the one hand, OPEC does not see oilprices returning to triple-digit territory within the next 25 years, a strikingly bearish conclusion.
The latest crash in oilprices once again raises this prospect. On the one hand, lower oilprices – despite the recent rebound, prices are still down sharply from a few months ago – can cause some E&Ps to want to hold off on drilling new wells. Link to article: [link].
High oilprices, a global economic rebound, and new laws and mandates in Argentina, Brazil, Canada, China, and the United States, among other countries, are all factors behind the surge in production, according to research conducted by the Worldwatch Institute’s Climate and Energy Program for the website Vital Signs Online.
Responding to press articles saying that the collapse of the global oilprice is threatening oil and gas production in the off-shore Brazil pre-salt layer, Petrobras countered that it is expanding its production capacity “in an economically viable manner.”
The firm said that in the third quarter of 2017, the “average operating cost per barrel has broadly remained the same without any efficiency gains.” Not only that, but the cost of producing a barrel of oil, after factoring in the cost of spending and higher debt levels, has actually been rising quite a bit.
The oil majors reported poor earnings for the fourth quarter of last year, but many oil executives struck an optimistic tone about the road ahead. The collapse of oilprices forced the majors to slash spending on exploration, cut employees, defer projects, and look for efficiencies. Link to original article: [link].
The auction was closely watched as a gauge of sentiment towards Brazilian oil exploration projects after a decade of Petrobras’ reign in the country’s continental shelf. After the oilprice collapse and a huge corruption scandal, Petrobras has struggled to stay afloat, let alone find the billions of investments needed to develop new deposits.
Once the capital costs of setting up the facility are recouped, about ten years in this case, all they have are maintenance and operational costs since the energy source is essentially free forever. Here is the full text of the NY Times article (in case the link goes bad). URL: [link]. Hawaii Endorses Plan for Electric Cars.
At present, an electric vehicle costs 30% more than an IC engine-powered vehicle with similar specifications. In this article, we will be discussing the factors contributing to the price reduction of electric vehicles as mentioned in the study conducted by BloombergNEF along with a few general aspects on the topic. Conclusion.
And these are only some of the challenges, the biggest being the cost of ramping up without cash flow to rely on. And markets won’t wait to adjust pricing until we hit a balance. There will be some foreshadowing in oilprices here. Article Source: [link]. It is time consuming to hire and re-train.
Oilprices are probably already high enough to spark a rebound in shale production. Even when US oil production hit a peak at 9.7 By the third quarter, oilprices had climbed back to above $40 and traded at around $50 per barrel for some time, replenishing some lost revenue. Link to original article: [link].
Other findings from the study include: Ethanol policy can have a substantial impact on corn prices. However, production costs of US corn-ethanol are very high. The gap between the intercept of the ethanol supply curve and the oilprice creates large deadweight costs that may overwhelm any external benefits.
Annual use of an EV should be less than the average cost of $8,000 per year for using a gasoline in many countries including the USA. Clean Fleet Article It would be a financial win-win for all. Pre-paid 600 kilometer cards are one approach that is suggested. This will be five percent of the nation’s vehicle population.
The collapse of oilprices has forced the US shale industry to slash production costs. He broke down the cost reductions into a few categories: “One of these factors is high-grading, where operators are drilling only the better acreage,” said Olmstead. Link to original article: [link].
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