Production and Prices
After falling into the high $40s, oil prices closed out the week about where they started, at $52 a barrel. The struggle continues between bad economic news combined with pessimistic economic forecasts vs. investor optimism that the end of the economic downturn is in sight. Comments to the effect that OPEC production cuts can no longer control the oil market continue to surface. On Thursday the Secretary
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The Clean Energy & Security Act
Last week the chairs of two key Congressional Committees released a draft of the most far-reaching energy and climate change legislation ever proposed in the U.S. The four titles of the bill, which has dozens of subsections, encompass: A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, low-carbon fuels, electric vehicles, and the smart grid
Cuba
Relations between the US and Cuba seem to be warming. Cuban officials are already in discussions with members of the US Congress to end the 47-year trade embargo. Last week a senior Cuban official said that Cuba would welcome the help of US oil companies in developing its oil resources. Although Chinese, Russian, Angolan, Spanish, Vietnamese, and Malaysian companies are already in discussions about
Detroit
With the rejection of the automobile industry’s recent restructuring plans, attention is now focusing on some sort of managed bankruptcy before the end of June. GM’s new CEO seems willing to entertain the idea and is on record as saying that the company cannot move forward in the midst of a recession without a balance sheet that has been purged of debt and union contract obligations. Current
Briefs week of April 6, 2009
Kuwait has boosted production capacity to 3 million b/d and is on track to reach its goal of 4 million by 2020, the head of its state oil company said on Monday. (3/31, #7) Kuwait plans to pump 450,000 barrels a day of heavy oil by 2020, cutting an earlier target agreed on with Exxon Mobil Corp., as part of a new energy strategy that will be completed this year. (4/1, #3) OPEC is more scared of the
Quote of the Week
“We are swimming in oil because production is strong and demand is weak … and it is going to remain that way in the short run.” – Stephen Schork, oil industry analyst
Interview with Matt Simmons, Part 1
ASPO-USA’s Steve Andrews recently hooked up with Matthew R. Simmons, chairman of Simmons & Company, Int’l, for a lengthy interview. The first portion is listed below; more will follow next week. Question: How has demand for your presentations and TV experiences moved up or down with the price of oil? Answer: The flow doesn’t seem to be as intense as it has been periodically.
