The Great Divide on Energy Policy
At the 2009 Offshore Technology Conference (OTC) in Houston two weeks ago, the top issues revolved around policy questions more than technology, such as drilling the Outer Continental Shelf (OCS) and climate change legislation. I saw little in the way of progress, however. Oil industry representatives pleaded for a transparent and fact-based public dialogue about our energy options for the future,
More
Production and Prices
After rising by $10 a barrel since mid-April, oil prices continued to increase early last week, and at one point touched a six-month high of $60. Just as the equity markets remain largely detached from economic news and focus on hopes for recovery, the oil markets remain largely detached from the news of supply and demand. When the equity markets turned softer on Thursday, oil followed them down to
Nigeria
A few years ago when the oil supply situation was much tighter, every militant attack on an oil facility in the Niger Delta triggered an immediate jump in oil prices. However, ever since world oil supplies began outrunning demand last fall and OPEC began massive production cuts, nobody outside of the Nigerians and their contractors really cared if the country produced any oil or not. As more production
IEA Lowers Demand
As a leading compiler of information relating to oil, the release of the IEA’s Oil Market Report around the middle of each month always draws much attention. This month the Agency concludes that it does not see any sign of a recovery in demand and that the oil market fundamentals remain weak. Demand for 2009 was lowered by a relatively small 200,000 b/d to 83.2 million b/d which is 2.6 million
A Changing LNG Story
On April 27th natural gas prices fell to a recent low of $3.25 /Mcf but have since rebounded to the vicinity of $4. The demand for natural gas, which has been falling lately in step with falling US industrial production, is the main reason for the decline. This decline in demand and the buildup of supplies in storage has resulted in a major drop in the number of rigs drilling for natural gas. From
Briefs
Saudi Aramco produced 8.9 million b/d of crude oil on average last year, up from 8.5 million barrels a day in 2007, according to its 2008 annual report posted Wednesday. Reserves of crude and condensate remained unchanged at 259.9 billion barrels. (5/13, #9) Saudi Arabia needs to rein in fast-growing power demand-up 5.6 percent per year during 2001-2008. An economic boom fuelled by record oil revenues
Quote of the Week
“When I became president, the average gas mileage on a car was 12 miles per gallon, and we had mandated, by the time I went out of office, 27.5 miles per gallon. But President Reagan and others didn’t think that was important, and so it was frittered away.” – Jimmy Carter, former U.S. President, testifying before a Senate committee
