Production and Prices
Oil prices hovered around $71 a barrel last week with most movement linked to the climbing or falling dollar. The usual concerns about inflation and hopes for an economic recovery were the major factors in last week’s moves. Even a week of widespread rioting in Iran and three new production-cutting attacks on oil pipelines in the Niger Delta did little to move the markets. The biggest move of
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Commentary: Interview with Charlie Maxwell (Part 1 of 2)
We caught up with Charlie Maxwell, the life-long oil industry analyst viewed by Barrons’ magazine as their energy guru, and asked him for a few minutes of his time. He shared that and much more with Steve Andrews. ASPO: Over the last 12 months, what has surprised you the most about the oil roller coaster we’ve been on? Maxwell: I would have to say that what struck me the most, as a surprise,
Iraq
In the last few months, Iraqi oil exports have been hitting post-invasion highs as oil has begun flowing from northern oil fields to the export terminal in Turkey. However, the next few weeks are likely to mark a turning point for Iraqi oil production as US forces pull out of Iraqi cities and service contracts are awarded to foreign oil companies to develop six of Iraq’s largest oil fields over
Natural Gas
The US’s supply of natural gas has been much in the news lately as prices have fallen to $4 /mbtu and a steady stream of announcements and articles have touted the potential of shale gas. In the short term, falling industrial production has reduced the demand for natural gas and electricity generated by natural gas. In addition to the fall in industrial demand, mild weather — expected to
Briefs
The Movement for the Emancipation of the Niger Delta destroyed six more pipelines and pumping stations in the last week. A statement issued by its spokesman, Gbomo Jomo, said the latest attack was in line with its campaign to cripple the entire oil and gas exports of the Federal Government. (6/18, #5) The escalation of violence in the Niger Delta region in the last three weeks may have reduced Nigeria’s
Bill O’Reilly, The O’Reilly Factor
“I’m a free-market guy, but the government must step in to stop the [oilprice] speculators!” [Ed. note: can one make a more oxymoronic statement?]
Statistic of the Week
Today more than half the USA’s nitrogen fertilizer is imported, and about 20 percent of the imports are from Russia. The cost of natural gas now accounts for up to 90 percent of the cost of making nitrogen fertilizer (6/17, #21)
