Oil and Gas
Oil Demand Expected To Rise
Feb 12th
As demand for oil increases prices will follow. There is more oil out there that if enters the market as a competing source could drive prices down.
IEA revises up global oil demand growth for 2010
Global oil demand will grow by more than previously expected in 2010, the International Energy Agency (IEA) said on Thursday, with all the growth coming from emerging markets.
The industrialised world is going through an “oil-less” recovery, the IEA said, with signs demand has peaked in developed countries despite many returning to economic growth.
The Paris-based adviser to 28 industrialised economies revised upwards its demand growth estimate for 2010 by 120,000 barrels per day (bpd) to 1.6 million bpd.
The strong rebound in demand follows two years of falling consumption as the world struggled with the deepest financial crisis since the 1930s. The IEA estimated oil demand would now average 86.50 million bpd this year, just 10,000 bpd below the all-time peak seen in 2007.
“The demand growth is all coming from countries east of Suez,” David Fyfe, head of the oil industry and markets division of the IEA told Reuters Insider TV.
“The emerging economies of China, India, the rest of Asia and the Middle East is where all the action is.”
Fyfe said while demand for motor fuels and petrochemicals may rise slightly in industrial countries, there has been a huge shift away from using oil for power and heating generation. –more
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Another Big Oil Find
Jan 13th
Here is yet another oil find in the US. With so much oil here, why do we buy so much from possible terrorists. This further reinforces my pretend conspiracy theory that the Oil companies and the US government want to use up all the oil in the rest of the world so all that is left is here in the US which will pay off the national debt and make those companies rich…in about 200 years.
Firms announce big oil find beneath shallow Gulf waters
McMoRan Exploration Co. today announced what it said could be one of the largest oil and natural gas discoveries in the shallow waters of the Gulf of Mexico in decades.
The discovery was made at the Davy Jones ultra-deep prospect located on South Marsh Island Block 230 in about 20 feet of water and 10 miles off the Louisiana coast, the New Orleans company and Energy XXI, one of its Houston partners in the project, said in statements this morning.
The well was drilled to 28,263 feet and found a 135-foot column of hydrocarbon-filled sands in the Wilcox section of the Eocene and Paleocene geologic trends.
That puts the estimated the size of the discovery close to 2 trillion cubic feet of resources, rivaling some oil and gas discoveries in the deep water Gulf.
If development drilling confirms what early testing has shown, “this is going to be a huge reserve,” McMoRan’s co-chairman, James R. Moffett, said in a conference call this morning.
What’s more, Energy XXI Chairman and CEO John Schiller said the discovery “verifies the ultra-deep potential of the Gulf of Mexico shelf and opens this horizon as a major exploration frontier.”
Investors responded by driving up the stock prices of McMoran and Energy XXI by more than 25 percent in morning trading.
“Success at Davy Jones could be a transformative event for (the companies),” said Jefferies Research, in a note to investors, noting the prospect could boost McMoRan’s year-end proved reserve base by 150 percent and Energy XXI’s by 60 percent. –more
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Oil Production Is Up Worldwide
Dec 23rd
Image by Barrybar via Flickr
Worldwide oil production is up which, according to supply and demand, would drive prices down. OPEC is determined to keep oil prices between $70-$80 a barrel.
They will have a harder time doing that now that other countries are producing oil and the US even has a surplus.
Falling Oil Demand Terrifies OPEC, Spurring It To Restrict Production
Falling oil demand from the world’s developed nations (OECD nations) has terrified the Organization of Petroleum Exporting Countries (OPEC). They’ve just maintained previous oil production restrictions.
FTAlphaville: The Organisation of Petroleum Exporting Countries meeting in Luanda, Angola, agreed on Tuesday to leave oil output curbs unchanged, while calling for greater compliance with existing output targets.
OPEC: The Conference observed with great concern that, whilst the worst of the recession appears to be over, the world economy remains confronted with the deepest, most wide-spread contraction since the 1940’s. For the first time since the early 1980’s, world oil demand has declined for the second, successive year.
This chart, via FTAlphaville, shows exactly what keeps OPEC up at night. One benefit of the past crisis and high oil prices is that the developing world has beeen spurred to use oil more efficiently and seek alternative forms of energy. –more
Energy Deflation Cometh: Plentiful Shale Gas, LNG, Ethanol, Nuclear, Geothermal
Consumers rejoice. Investors beware. Environmentalists lament.
Fossil fuel prices are just about to nose dive. Massive new supplies of energy are coming on stream worldwide. Shale gas has flipped the United States from gas importer to gas surplus. Liquid natural gas (LNG) supplies from Qatar, Algeria and Russia are flooding European and Asian markets. Ethanol production in the US is outstripping demands.
Huge new oil fields in Iraq, Saudi Arabia, Brazil and Ghana will cause an intermediate-term surge in crude oil production. Iraq alone will be producing 5 million more barrels of oil per day within just five years; Brazil will become an oil exporting nation.
The sudden ‘political correctness’ of nuclear power in Germany and the United States, coupled with new plants in China and perhaps Iran, will further shift the energy equilibrium toward ‘cheap’. Water source or geo-thermal technologies like the residential heat pumps offered by FHP Manufacturing are cutting home heating bills by 70%. All of these new ‘conventional’ sources don’t bode well for expensive renewal resources like solar and wind. –more
Related oil production articles
- Energy prices heading downward for the holiday (seattletimes.nwsource.com)
- Barreling Ahead: Oil tops $70, Defying Gloomy Predictions (blogs.wsj.com)
- Oil rises to near $75 amid US crude supplies fall (seattletimes.nwsource.com)
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