It was just last week when we said that Cushing may be about to overflow in the face of an acute crude oil supply glut.
“Even the highly adaptive US storage system appears to be reaching its limits,” we wrote, before plotting Cushing capacity versus inventory levels. We also took a look at the EIA’s latest take on the subject and showed you the following chart which depicts how much higher inventory levels are today versus their five-year averages. Continue reading
Brent crude prices fall below $30 for the first time since April 2004 and could make fuel cheaper than water
Petrol will soon cost less than bottled water as the relentless decline in oil prices sends fuel down to 86p a litre, it has been claimed.
Brent crude fell to below $30 a barrel for the first time since 2004 on Wednesday evening – and has fallen by more 73pc since reaching highs of $115 last summer.
Motoring group RAC said pump prices now could fall back to levels last seen in the aftermath of the financial crisis in 2009, if the commodity plunges to as low as $10, a forecast made by Standard Chartered bank earlier this week.
Oil markets may not balance until late 2016, but supply is finally contracting in a big way.
Early last week the EIA confirmed that U.S. oil production was down sharply since peaking in April at 9.6 million barrels per day (mb/d). The agency estimates that U.S. output fell by 140,000 barrels per day in August, a steeper decline than in previous months. In its latest weekly estimate (which is less accurate than monthly retrospective estimates), U.S. oil production is now down to just 9.1 mb/d. Continue reading
No matter how much oil the United States produces over the next few years, it will never become the next Saudi Arabia in the global oil market, according to Fatih Birol, the new executive director of the International Energy Agency (IEA).
What’s especially interesting about this forecast is that it directly contradicts what Birol said only three months ago, and he gave no explanation for his change of mind.
On Feb. 26, Birol told The Telegraph’s Middle East Congress in London that OPEC, particularly the Persian Gulf members, will prevail over all other producers for the foreseeable future, even though the revolution in extracting shale oil has been “excellent news” for American producers. Continue reading
National Council of Resistance of Iran says Iran has been hiding from the West an “underground top-secret site” that is enriching uranium.
A group of Iranian dissidents said on Tuesday that Iran has an “underground top-secret site” that is enriching uranium intended for nuclear weapons and which has been hidden from the West for years, Fox News reports.
According to the Iranian opposition group, the National Council of Resistance of Iran (NCRI), the complex, called Lavizan-3, is right outside Tehran, “buried deep underground in tunnels and underground facilities” with “radiation-proof doors” to prevent any leaks that could be detected by the United Nations International Energy Agency (IAEA) inspectors. Continue reading
On Oct. 9, we said the outlook for the world’s petrocrats looked bad. It just got worse: Saudi Arabia has been hoping that producers of American shale oil will be forced to begin cutting back given the plunge of oil prices, but the International Energy Agency (IEA) said today that prices can fall a good deal more.
What does that mean for geo-politics? Admittedly long-shot nuclear talks with Iran that resumed today in Vienna may stand a better chance of resulting in a deal. And Russian leader Vladimir Putin may be more conciliatory with Ukraine in gas-price discussions that begin next week. Continue reading
The US is overtaking Saudi Arabia to become the world’s largest producer of liquid petroleum, in a sign of how its booming oil production has reshaped the energy sector.
US production of oil and related liquids such as ethane and propane was neck-and-neck with Saudi Arabia in June and again in August at about 11.5m barrels a day, according to the International Energy Agency, the watchdog backed by rich countries.
With US production continuing to boom, its output is set to exceed Saudi Arabia’s this month or next for the first time since 1991. Continue reading
RIO DE JANEIRO — Brazil’s efforts to become one of the world’s major oil producers have attracted businesses such as U.S. drilling giants Halliburton and Baker Hughes, gained it partnerships with oil companies from India and China, lured immigrants from idyllic Norway and drawn investment dollars from American pension funds in Florida, South Carolina and California.
But the prospects for success have darkened in the seven years since Brazil first identified massive oil deposits in deep water off its coast. Many fear that Brazil’s chance to become one of the world’s major energy producers is fading as the global energy landscape changes dramatically. Continue reading
Beijing has ordered an “unprecedented” build up of oil reserves as West prepares for possible oil sanctions against Russia
China is stockpiling oil for its strategic petroleum reserve at a record pace, intervening on a scale large enough to send a powerful pulse through the world crude market. Continue reading
As already mentioned here a few times, third world countries have no bottom, thus making any sanctions against Iran’s oil industry worthless. The world has a high demand for oil and all sanctions will do is force the oil route to change direction towards another country.
Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world’s largest natural gas reservoir in the Persian Gulf.
The country’s new oil minister, Bijan Zanganeh, has set a new output target of 5.7m barrels per day (bpd) of crude by 2018, according to the official state-run news agency Shana. The latest figures produced by the Organisation of Petroleum Exporting Countries (Opec), show that Iran is currently pumping about 3m bpd of crude.
Tehran is also sending strong signals to the international community that it plans to press ahead with the development of vast natural gas reserves that it shares with Qatar in the Persian Gulf. Moshtaq Ali-Gohari, head of the National Iranian Oil Company, told Shana over the weekend that the Islamic republic plans to invest almost $14bn (£8.3bn) to develop oil and gas fields that it shares with neighbours in the region. This could signal that Tehran is preparing for the further development of the South Pars field in the Gulf. Continue reading
The US government already sold 5 million barrels as a subtle hint a little over a week ago.
Selling oil from the strategic oil reserve would hurt the USA more than anything else in the long-run. After that’s gone, what else would America have to fall back on during a crisis? At a time when Russia could trade oil in any other currency but Dollars in retaliation, sending the US economy back into the stone age, would such an action with limited effect be worth it? If the Dollar is dead and there is no strategic reserve, then what? Soros, who nearly killed the British economy overnight, and is a convicted felon in France, does not have the best interests of the country in mind. People like Soros are smarter than this and know the likely outcome(s) for their actions, and given his past record, could most likely sparking an intentional attack on the U.S. from within via provocation with Russia.
For more information on George Soros, see the following:
The infamous speculator, oligarch and political activist George Soros published a plan designed to “punish” Russia for its actions in Crimea and Ukraine. According to Soros’ plan, Washington has to crash the oil market in order to hurt the Russian economy. Continue reading
Iraq’s goal of pumping 9m barrels a day of crude could be a game changer for oil prices and British companies
Iraq is poised to flood the oil market by tripling its capacity to pump crude by 2020 and is collaborating with Iran on strategy in a move that will challenge Saudi Arabia’s grip on the Organisation of Petroleum Exporting Countries.
“We feel the world needs to be assured of fuel for economic growth,” Hussain al-Shahristani, Deputy Prime Minister for Energy in Iraq told oil industry delegates attending a Chatham House Middle East energy conference. Continue reading
Natural gas basins could turn the Mediterranean into a “sea of prosperity,” but there is a risk that politics may hamper economic progress, the head of the International Energy Agency (IEA) has warned.
“The biggest problem in the eastern Mediterranean is not the existence of reserves, it is the potential that politics may supersede the economy,” Fatih Birol, the IEA’s chief economist, told daily Hürriyet.
“If this settles down, I believe eastern Mediterranean gas will raise the prosperity of regional countries and could become an important alternative to Russian gas,” he said. Continue reading
With some predicting China will import 79% of its oil by 2030, could domestic shale gas extraction help China meet its energy needs?
As shale gas fever sweeps through Beijing, analysts are looking at the costs and benefits of extracting what is increasingly a controversial source of energy. But for China, with its growing middle class, the immediate and long-term demand for energy has the potential to spark a revolution in shale gas before sufficient and safe technological know-how and regulations are developed.
The emergence of shale gas is a game changer. Countries that have traditionally relied on hydrocarbon exports for political clout (the Persian Gulf, Russia, Venezuela) will inevitably lose some of their petro power. Europe could become less energy dependent on Russian supply by importing liquid natural gas (LNG) from North America and by exploiting the potentially significant shale gas deposits in Poland and other countries. Australia, which has significant deposits and much of the pre-existing infrastructure to begin extraction, could see its clout in the energy politics of the region increase– forcing a significant redraft of Canberra’s “Australia in the Asian Century” White Paper. Continue reading
Much digital ink has been spilled about the oil and gas boom in the US, the result of ever improving fracking technologies, and whether or not it will lead to energy independence, or even turn the US into an oil exporter.
Now a “confidential” report by the German version of the CIA, the Bundesnachrichtendienst (BND), seeped to the surface. It sketched out the boom’s geopolitical consequences. Biggest loser? China. Continue reading