Free Republic

Saudi Arabia continues to ratchet up production, taking market share away from U.S. shale producers. According to OPEC’s latest monthly oil report, Saudi Arabia boosted its oil output to 10.31 million barrels per day in April, a slight increase over the previous month’s total of 10.29 million barrels. That was enough for the de facto OPEC leader to claim its highest oil production level in more than three decades. Saudi Arabia has increased production by 700,000 barrels per day since the fourth quarter of 2014 in an effort maintain market share. The resulting crash in oil prices is forcing some...

The U.S. is seeking a rapprochement with Iran over its nuclear program, potentially ending several decades of hostility. But while the U.S. is extending an open hand to Iran, other countries in the Middle East are casting a wary eye towards the negotiations. In fact, it is starting to appear that Gulf Arab states could be a major impediment to a final agreement over Iran’s nuclear program. Led by Saudi Arabia, many of the oil-producing members of the Gulf Cooperation Council (GCC) are skeptical of, if not downright hostile towards Iran. With little trust between Iran and its Arab neighbors,...

The U.S. military is helping Iraqi forces pushback ISIS at a vital oil refinery. The Baiji refinery is located between Kirkuk and Mosul, and it has been the target of ISIS militants since the extremist group first made major advances last summer. Baiji is Iraq’s largest oil refinery, and as such, is strategically important to the country for revenues and for domestic fuel supplies. “It actually also sits on a corridor that runs from the Tigris River valley to the Euphrates River valley. And so it's geographically significant as well as significant economically,” the chairman of the U.S. Joint Chiefs...

Yes, well, sort of – and they have for some time now. It’s relatively old news, but a recent Times report and an upcoming book from the Hoover Institute’s Peter Schweizer have refocused attention on a 2008 blockbuster uranium deal involving Russia, the United States, and a Canadian company Uranium One. Pushing connections and presidential candidacies aside – the Clintons’ complicity is still very much speculation at this point – lets return to the deal and take a look at the US nuclear industry and, globally, the rise of Rosatom. The saga begins in 2009 when, after roughly a year...

The Environmental Protection Agency’s (EPA) new mercury pollution regulations that took effect last month opened the flood gates for a new multi-billion-dollar energy industry that has investors scrambling to get in on second-generation technology poised for massive revenue gains. When the EPA measures to curb mercury pollution from coal-fired power plants over 25 megawatts took effect on 16 April, it wasn’t only environmentalists who were popping the champagne corks—technology companies specializing in mercury remediation broke out the glasses as well. After all, the new regulations created a $2 billion-a-year, federally mandated business for them virtually overnight. These Federal regulations add...

The United States is edging towards an historic agreement to swap crude oil with Mexico. The deal is important as it brings some relief to US producers struggling with a light oil glut at home and for Mexican national oil company, Pemex, which is hoping to mix the lighter crude coming out of US shale fields with its heavier blend. However, the arrangement is not just about the relationship between the US and Mexico. It’s also about broader North American energy integration. And critically, many experts see the deal as another crack in the US crude oil export ban. The...

The solar energy industry may prove to be a dark horse in the race to provide global energy security. The world has renewed its interest in solar energy investment as it searches for a cleaner and more sustainable alternative to conventional fossil fuels. Countries like China, Germany, the UK, the US, Japan and Canada have already made significant investments in solar power. Who are the other players who are investing big in solar energy? With its own set of limitations such as high installation costs and high plug-in time, are consumers across the world ready to choose solar energy to...

Could the rising levels of debt in the oil industry contribute to destabilization in the financial system? The collapse in oil prices has forced drillers to turn to debt markets to keep their operations going. According to the Wall Street Journal, there has been $86.8 billion in new debt issued so far in 2015, a 10 percent increase over last year. But that trend is not necessarily new. The oil industry has relied on debt for quite some time, but the dramatic fall in oil prices has put a bright spotlight on the practice. The Bank for International Settlements concluded...

The world already knows that the Organization of Petroleum Exporting Countries, or OPEC, can change the fate of the international oil price. By producing close to 40 % of the world’s combined crude oil, OPEC’s oil exports represents about 60% of the total petroleum traded internationally. In spite of having such clout, 2014 has been kind of odd for the cartel as there was a considerable drop in OPEC’s revenues. As per Energy Information Administration, OPEC earned close to $730 billion in net oil export revenues in 2014, which was a decline of 11% from 2013. Saudi Arabia- the undisputed...

Oil executives have been making headlines recently, due to large purchases of their own company’s stock. In fact, insider buying in the oil industry is higher than any other industry, except the machinery industry. Who’s buying? Major insider purchases for the month of March were made by Kinder Morgan (NYSE: KMI) and Diamond Offshore Drilling (NYSE: DO). Diamond Offshore Drilling’s CEO, Corp Loews, purchased 685,373 shares on the open market, and Rich Kinder, CEO of Kinder Morgan, purchased 100,000 shares of Kinder Morgan. In March, Rich Kinder and Corp Loews weren’t the only executives buying company stock. The Director of...

There is mounting evidence that oil prices are poised to rebound from a historic bust. Rig counts hit new lows each week. For the week ending on April 17, Baker Hughes says the U.S. lost an additional 34 oil and gas rigs, bringing the total down to 954. Domestic crude oil production appears to have plateaued and the EIA expects a contraction in May. Nearly every driller is dramatically scaling back spending, which should increasingly cut into new output. And oil consumption is finally picking up, as drivers far and wide take advantage of cheap fuel. But what if the...