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Oilprices fell back suddenly over the last few trading sessions, dragged down by some forces beyond the oil market. dollar has helped drive up crude prices for weeks , but that came to an abrupt halt last week. A rebound for the greenback led to a steep decline in oilprices on Friday.
As oilprices remain unsteady and OPEC continues to make headlines every hour, the world is focused on oil’s immediate future. With this kind of impending discrepancy between supply and demand, the industry needs to start looking for new sources of oil, and quickly. Link to original article: [link].
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.) Why an oilprice spike would be bad for the industry. Since (non-U.S.
shale in particular—is effectively capping the oilprice gains from that agreement. Four months after the OPEC/NOPEC deal took effect, oilprices dropped to the levels preceding the agreement, amid concerns over still stubbornly high inventories and rising U.S. Link to original article.
Oilprices appear to be stuck in the $50s per barrel, but that doesn’t mean there aren’t serious supply risks to the market. An unexpected disruption could occur at any moment, as has happened in the past, leading to a sudden and sharp jump in prices. All of this adds up to a further deterioration in the country’s oil output.
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.
Oilprices have climbed by about 50 percent from their February lows, topping $40 per barrel. But the rally could be reaching its limits, at least temporarily, as persistent oversupply and the prospect of new shale production caps any potential price increase. That is not good news for oilprices.
dollar to go up, which is putting downward pressure on prices,” Phil Flynn, analyst at Price Futures Group in Chicago, told Reuters. There are plenty of factors influencing oilprices right now, and the OPEC+ decision expected in a few days will be the single most important driver in the near-term. But the U.S.
Oilprices faltered at the start of the second week of the year, as fears set in about a rapid rebound in US shale production. Aside from a single week in October, the US oil industry has deployed more rigs in every week dating back to June, a remarkable run that has resulted in more than 200 fresh rigs drilling for oil.
The impact of rising oilprices on North American light tight oil (LTO) production is said to be a “Catch 22”, the title of Joseph Heller’s popular 1961 novel set in WWII. Too many analysts continue to believe drilling and service has the same problem with rising oilprices. by David Yager for Oilprice.com.
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 rivalry between Saudi Arabia and Iran is becoming increasingly evident in the oilpricing policies of the two large Middle Eastern producers. The two countries are currently reigniting the market share and pricing war ahead of the returning U.S. sanctions on Iranian oil. Link to original article: [link].
And markets won’t wait to adjust pricing until we hit a balance. There will be some foreshadowing in oilprices here. Each of the 3 stages needed to move to a sustainable price have to be given time to play out. Article Source: [link]. But overall, rising global demand and shrinking U.S And non-strategic U.S.
Global energy intensity—defined as total energy consumption divided by gross world product—increased 1.35% in 2010, the second year of increases in the context of a broader trend of decline over the last 30 years, according to a new Vital Signs Online article from the Worldwatch Institute.
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].
There have been 5 recession since then until now and I wanted to see if Oil had anything to do with them, because deep in my heart, I knew the most recent recession was directly caused by the oilprice spikes that started in 2007 and peaked in 2008. This increase in oilprices again pushed the economy into a recession.
The collapse of oilprices has ground shale drilling to a halt, but the one region where drilling is still active, and even increasing, is in West Texas. 8 article , QEP Resources paid $60,000 an acre to an undisclosed owner in June. Link to original article: [link]. by Nick Cunningham of Oilprice.com. told the WSJ.
OPEC’s coordinated effort to curtail global supply has so far managed to put a floor under oilprices, which have been sitting modestly above US$50 since the deal was announced at the end of November last year. Analysts and experts are now mostly predicting that oilprices will remain below US$60 this year.
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 party is over for tight oil. Despite brash statements by US producers and misleading analysis by Raymond James, low oilprices are killing tight oil companies. Reports this week from IEA and EIA paint a bleak picture for oilprices as the world production surplus continues. Party On, Dude!
an industry consultant, oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oilprices remain in the dumps. “I Still, upstream E&P companies are also being substantially squeezed by another plunge in oilprices. Article Source: [link].
According to a separate report from SAFE, a Washington-based think tank, the oil industry has cut somewhere around $225 billion in capex in 2015 and 2016, which will lead to global supplies 4 million barrels per day lower in 2018-2020, compared to what market analysts expected as of 2014. The price acts as a self-correcting mechanism.
Argentina offers one of the few places on earth where oil companies are not suffering from the full force of the collapse in prices. Argentina regulates oilprices, a policy originally intended to insulate the public from the whims of the market, protecting people from triple-digit crude prices.
Instead it pursued a strategy of fighting for market share, contributing to an immediate rout in oilprices. OPEC is widely expected to continue its current strategy at its next meeting, and as such, no rebound in oilprices is expected, at least not because of the results of the group’s meeting in Vienna.
The Oil War Is Only Just Getting Started. It’s been a month now that investors and analysts have been closely watching two main drivers for oilprices: how OPEC is doing with the supply-cut deal, and how US shale is responding to fifty-plus-dollar oil with rebounding drilling activity. Link to original article: [link].
While OPEC mulls over further steps to once again support falling oilprices, tech startups are quietly ushering in a new era in oil and gas: the era of the digital oil field. The Internet of Things is entering oil and gas, and so are analytics and artificial intelligence. Link to original article: [link].
We would expect that new reserves of conventional and unconventional oil may become available for exploration due to geological exploration and advances in oil extraction techniques or that extraction from less feasible oil fields becomes more economically attractive. Article ASAP doi: 10.1021/es100730q.
The official chatter is that the OPEC meeting in Algeria from September 26 to 28 could conclude with an agreement to freeze production by the member nations, with even Russia joining forces in a freeze that may prevent further oilprice erosion. What about the shale oil producers? What has changed from Doha to Algeria?
The production costs for most chemicals via microbial fermentation are currently high compared to oil-derived products primarily because of operating costs associated with feedstock and feedstock processing. One way to mitigate high feedstock cost is to maximize conversion into the bioproduct of interest. Jones, Alan G. Fast, Ellinor D.
Demand in China's NEV market has held steady amid high international oilprices, the CPCA said. For more articles, please visit CnEVPost. The post China's Nov wholesale sales of passenger NEVs hit record 732,000, CPCA estimates show appeared first on CnEVPost.
High oilprices are helping NEVs replace ICE vehicles, and the latter have more raw material costs including copper and aluminum. For more articles, please visit CnEVPost. The post China's NEV industry currently immune to inflation, analysts say appeared first on CnEVPost.
Because of this, the collective US shale industry has been likened to the new “swing producer”: low oilprices force quick cutbacks but higher prices trigger new supplies. And because there were few job openings, very few young people between the mid-1980s and 2000 went into oil and gas.
Kicking the can means that production may not fall as fast as expected, which will mean oilprices may not begin to stage a rally as quickly as some had hoped. The ratings agency cut its forecasted oilprice for 2016 to just $48 per barrel. Article Source: [link]. rig count has declined by more than half, U.S.
Improved supply and expectations of higher oilprices have kept the NEV market booming with strong order books, the CPCA said. For more articles, please visit CnEVPost. The post China's wholesale sales of passenger NEVs total 564,000 units in July, CPCA data show appeared first on CnEVPost.
One casualty of the oilprice downturn could be the megaproject. For years, as conventional oil reserves depleted and became increasingly hard to find, oil companies ventured into far-flung locales to find new sources of production. The collapse of oilprices, however, could kill off the megaproject.
The reason they are likely to join in is that unlike in previous oilprice cycles, now there are alternatives to fossil fuels. Electrification is where OPEC may have to face off with a future oil buyers’ cartel. At the same time, it still imports crude and quite a lot of it, so it cares about oilprices as a large buyer.
If You’re a Free Range Oil Producer. Despite low oilprices, Saudi Arabia is maintaining its investment in its oil industry. According to an August 26 Bloomberg article , the Saudi government is seeking ways to reduce investment in 2016 “.as In a CNN article quoting SIPRI for 2014, the author's guesses for 2015 (6.25
The latter is partly caused by “global warming constraints” and lower oilprices in general. British accountancy firm Moore Stephenson stated that lower prices were the main cause. At the same time, increased costs (North Sea decommissioning) and lower oilprice expectations are doing the rest.
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].
It’s been six months now that oilprices have been reacting to OPEC, first to the possibility of an agreement, and then to the production cut deal itself, forged by OPEC to rebalance the market. The market bought the “balance” message, and oilprices steadied at above $50 for three months.
The reason they are likely to join in is that unlike in previous oilprice cycles, now there are alternatives to fossil fuels. Electrification is where OPEC may have to face off with a future oil buyers’ cartel. At the same time, it still imports crude and quite a lot of it, so it cares about oilprices as a large buyer.
Russia’s central bank recently warned about the growing financial risks to the Russian economy from Saudi Arabia encroaching upon its traditional export market for crude oil. Russia sends 70 percent of its oil to Europe, but Saudi Arabia has been making inroads in the European market amid the oilprice downturn.
Part of the reason for that is rising oilprices, as well as a flattening of the futures curve. Indeed, recently WTI and Brent have showed a strong trend toward backwardation—in which longer-dated prices trade lower than near-term. Link to original article: [link]. But, that advantage has vanished.
That is because of two reasons—the size of its reserves, and the ability to use latent spare capacity to quickly adjust supply, affording it an outsized influence on crude oilprices. However, the collapse of oilprices since 2014 has pushed the Saudi budget deep into the red. Link to original article: [link].
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