Prices and production
It was another down week for oil prices. Starting out in the low $40s, oil fell as low as $35 a barrel before jumping to a close at $37.71 after the UAE announced the details of the production cuts it was making to comply with the recent OPEC decision. Despite widespread skepticism that the cartel will actually cut production on the order of 4 million b/d in the next few months, several OPEC members
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Russia
Of all the countries exporting oil, Russia seems to be suffering the most serious consequences from the precipitous drop in oil prices. The Russian stock market has collapsed and the ruble, devalued eight times in recent months, has lost 20 percent of its value vs. the US dollar since August. Although Moscow managed to accumulate a substantial reserve during the good years, this is being rapidly dissipated
Electric Cars
It is now generally acknowledged that if the automobile is to have a future, it will be completely or partially electrically powered. GM is staking its future on its plug-in hybrid, the Volt, which is due out in 2010. A Chinese automaker is already selling a competing vehicle, and several Japanese manufacturers are planning to announce new all-electric or hybrid vehicles in January. At the Detroit
Briefs
(clips from recent Peak Oil News dailies are indicated by date and item #) Japan, the world’s third-largest consumer of oil, said its crude imports fell 12 percent during November as the country’s industrial output plunged the most in almost 55 years. Industrial output in Japan declined 8.1 percent in November intensifying worries that the world’s second-largest
Quote of the Week
“Cheating on OPEC quotas is not a problem. It’s a tradition.” – Byron King, energy analyst and writer
Drill Baby Drill - A Reality Check
Many Americans want to believe that the US still has unlimited oil resources within its boundaries, if only the pesky environmentalists would just get out of the way. Throughout the recent presidential campaign, the “Drill baby drill” mantra was exploited relentlessly by John McCain, his supporters and rightwing media sources. The oil industry has contributed to the belief that if it
