Keyword: oil

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  • UPDATE 3-Saudis to keep spending heavily in 2015 budget, shrug off oil plunge

    12/25/2014 7:28:56 PM PST · by TigerLikesRooster · 13 replies
    Reuters ^ | Dec 25, 2014 | Andrew Torchia
    UPDATE 3-Saudis to keep spending heavily in 2015 budget, shrug off oil plunge Thu Dec 25, 2014 10:14am EST * Figures suggest Saudis could cope with years of cheap oil * State spending to edge up 0.6 pct from 2014 plan * Big economic development projects to continue * Budget slashes revenue projection by 16 pct * $39 bln deficit to be covered by fiscal reserves (Adds comments by finance minister, stock market reaction) By Andrew Torchia DUBAI, Dec 25 (Reuters) - Saudi Arabia will lift state spending to a record in its 2015 budget while covering a deficit with...
  • Merry Christmas from Texas to the World

    12/25/2014 12:24:13 AM PST · by Cincinatus' Wife · 26 replies
    The Hill ^ | December 25, 2014 | Ben Voth
    Texas has blessed the world with an incredible Christmas gift: plummeting oil prices. Both the production and the technology of fracking were substantially innovated and pioneered in the Lone Star state. The ramifications here at home and abroad are profound and incredible example of how innovation, property rights,and economic freedom trump the ugly agendas of statism. The gift of Texas oil is a gift that keeps on giving and stands in contrast to the lumps of coal dished out by the Federal government:...Gift 1:A true economic stimulus. The drop in oil prices from over $100 a barrel to less than...
  • New Cold War Underday?

    12/24/2014 10:39:09 AM PST · by Jumper · 13 replies
    12/24/2014 | self
    Is it possible that the world is witnessing a low threshold war that is actively being prosecuted by various actors on the international stage? Could it lead to a Political realignment as economic sanctions cripple countries hostile to the United States and other freedom loving peoples....
  • Oil spills into Black Sea near Russian port after pipeline leak

    12/24/2014 8:57:03 AM PST · by thackney · 6 replies
    Reuters ^ | Dec 24, 2014 | MAXIM NAZAROV AND GLEB GORODYANKIN
    A leak on a major Russian oil pipeline caused a spill in the Black Sea near the port of Tuapse on Wednesday where officials said stormy weather was hampering efforts to assess and respond to the mishap. "Some quantity of oil has spilled into the sea," Sergei Proskurin, first deputy captain of the port of Tuapse, told Reuters. He said the size of the spill was unclear and that emergencies services were working to deploy temporary floating barriers to contain the spill but were being delayed by the stormy conditions. Tuapse is a busy industrial and oil port but is...
  • A "Crude" Approach to Evaluating the US Oil Export Ban

    12/24/2014 5:24:19 AM PST · by thackney · 8 replies
    Forbes ^ | 12/23/2014 | Michael Maher
    With the U.S. experiencing a period of rapidly increasing production of light tight oil (LTO) and Gulf Coast refining configurations geared toward processing medium and heavy crude, a growing chorus is calling for the end of the ban on US crude exports. The concern is, due to the medium/heavy orientation of the US refining sector, LTO will continue to be sold at a discount to foreign light oil prices (Brent). This discount will grow as increased LTO production is faced with growing refining bottlenecks and, eventually, will restrict LTO production in the U.S. Moreover, the issue becomes even more relevant...
  • The Next Shale Revolution?

    12/24/2014 5:01:42 AM PST · by RoosterRedux · 15 replies
    weeklystandard.com ^ | SAMUEL THERNSTROM
    Just five years ago, almost no one outside the natural gas industry had heard of fracking, even though the basic technologies were not new; today, the shale gas revolution has transformed America’s energy markets, with profound effects for economic growth, competitiveness, security, and environmental quality. In a nation still deeply concerned about its energy future, this extraordinary success story should prompt the question: Can we do it again? The answer is yes​—​if we correctly understand both the model for innovation that shale gas exemplifies and an opportunity that now exists to emulate the shale model. That opportunity involves exploiting a...
  • Sliding oil prices leave socialist Venezuela on brink of financial collapse

    12/24/2014 5:01:35 AM PST · by thackney · 23 replies
    Washington Times ^ | December 23, 2014 | Guy Taylor
    The ongoing plunge in global oil prices is pushing Venezuela toward economic collapse just as President Nicolas Maduro the hand-picked successor to the late socialist Hugo Chavez faces mounting international criticism for jailing opposition figures after months of street protests. Where Chavez once drew praise from the worlds leftist elite for using the high price of crude oil during the 2000s to underwrite a socialist revolution, a growing number of analysts in Washington say Mr. Maduro is clinging to power in a country on the edge of becoming a failed state. Venezuela still boasts some of the worlds...
  • Why there are so many kooky conspiracy theories about oil

    12/24/2014 4:50:47 AM PST · by thackney · 25 replies
    Washington Post ^ | December 23, 2014 | Chris Mooney
    The sudden, dramatic drop in oil prices has changed the world almost overnight. Russia's facing an economic crisis, and U.S. consumers are saving a fortune at the pump. The reasons for the sudden swing are not particularly glamorous: They involve factors like supply and demand, oil companies having invested heavily in exploration several years ago to produce a glut of oil that has now hit the market -- and then, perhaps, the "lack of cohesion" among the diverse members of OPEC. But now, right on cue, out come the conspiracy theorists including Vladimir Putin to tell us what's...
  • Deadly oil train blast settlement fund tops $200M ahead of filing next month

    12/23/2014 8:57:43 AM PST · by Citizen Zed · 4 replies
    Times Colonist ^ | 12-23-2014 | DAVID SHARP
    A proposed settlement fund for victims of a fiery train derailment that claimed 47 lives in Canada is nearly halfway to a goal of $500 million in funding commitments ahead of its filing next month, the defunct railroad's bankruptcy trustee said. More than a dozen corporations that face potential liability in the Lac Megantic, Quebec, oil train disaster have agreed to pay over $200 million to the fund and that sum could more than double by the time judges in the U.S. and Canada sign off, bankruptcy trustee Robert Keach told The Associated Press. Keach, the trustee in the Montreal,...
  • Brent oil $90 to $100 in 12 to 18 months: Pickens

    12/23/2014 8:00:36 AM PST · by shove_it · 24 replies
    CNBC ^ | 23 Dec 2014 | Matthew J. Belvedere
    Energy entrepreneur T. Boone Pickens predicted Tuesday that Brent crude oil will be at $90 to $100 barrel in 12 to 18 months. "The world got along fine with $100 oil," he said on CNBC. Less global demand for oil is more to blame for the price drop than oversupply, Pickens said in a "Squawk Box" interview. "The demand for the world was another 1.3 million this year, and half of that is what we got," he continued. "The oversupply for oil has come from the United States." The Organization of the Petroleum Exporting Countries alone can't satisfy the world's...
  • Scenes From Putin's Economic Meltdown

    12/23/2014 7:48:12 AM PST · by C19fan · 8 replies
    Politico ^ | December 21, 2014 | Alec Luhn
    Get the hot deals while they last! Whatevers on your holiday shopping listbuy now, it may never be this cheap again! In a single day this past week, the ruble exchange rate dropped from 59 to 80 to the dollar, further eroding confidence in the Russian economy and ensuring a deep recession next yearbut also briefly turning Moscow into the shopping capital of the world. Although this past weeks currency crisis marked the worst fall for the ruble since Russia defaulted on its debt in 1998, no one was waiting in bread lines or starting a run on the bank....
  • How Broken Are The Energy Markets?

    12/23/2014 7:30:49 AM PST · by thackney · 7 replies
    Oil Price ^ | 22 December 2014 | Euan Mearns
    A few commenters have mentioned peak oil recently. I am cautious about making forecasts and predictions and prefer instead to observe and document the data as the peak oil story unfolds. I have in fact published a couple of charts recently illustrating aspects of peak oil, one showing a possible peak in the rest of the world that excludes N America and OPEC (Figure 1). The other shows the undulating plateau in conventional crude + condensate that has persisted since 2005 (Figure 2). In my last post on oil price scenarios two of those showed global oil production capacity 1...
  • Full MEES Interview With Saudi Oil Minister Ali Naimi

    12/23/2014 7:04:26 AM PST · by thackney · 4 replies
    Oil Pro ^ | Dec 23, 2014 | Fadi Aboualfa
    Saudi Arabian Oil Minister Ali Naimi sat down with MEES on 21 December in Abu Dhabi and gave his fullest explanation yet of Saudi thinking in pushing for an OPEC rollover on 27 November. Yesterday, excerpts of the interview were widely quoted in the mainstream press, moving the price of oil. Today, for the first time, the full interview is being published beyond the MEES subscriber base on Oilpro. Will Saudi Arabia Not Cut Production If The Russians Do Not Cut? First of all, why did we decide not to reduce production? I will tell you why. Is it reasonable...
  • Low Oil Prices: History Not Science Fiction

    12/23/2014 5:41:47 AM PST · by thackney · 6 replies
    Forbes ^ | 12/22/2014
    In the late 1990s, after the oil price boom of 1996 and bust of 1998, with the accompanying hire-and-fire cycle in the industry, company executives sighed and talked about how they would exhibit capital discipline in the future. And they were true to their wordsome of them, at least for a while. Five years later, oil prices passed $40 a barrel and there was increasing pressure on the major oil companies to increase their upstream activities. The CEO of Exxon, Lee Raymond, argued that the tight services market meant that spending more would simply drive up costsas it had in...
  • US-Saudi Arabia: Winter Is Coming

    12/23/2014 4:53:44 AM PST · by thackney · 22 replies
    Energy Intelligence ^ | December 2014 | Bill Murray
    Republican victories in the US midterm elections in early November and the Saudi Arabia-imposed decision by Opec on Nov. 27 to maintain production at 30 million barrels of oil a day may seem too disconnected and tangential to merit deep consideration of any linkage. But the two political events actually illustrate the slowly diverging paths between the US and Saudi Arabia that could become too entrenched to redirect, and may ultimately destroy or at least permanently alter one of the most important remaining strategic constants in the world since 1945 America's security guarantee of Saudi Arabia and its energy...
  • Arab OPEC Sources Say Oil Will Be Back Above $70 By The End Of 2015

    12/23/2014 3:56:01 AM PST · by blam · 4 replies
    BI - Reuters ^ | 12-23-2014 | Rania El Gamal
    Rania El Gamal, ReutersDecember 23, 2014Arab OPEC producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year as a global economic recovery revives demand, OPEC delegates said this week in the first indication of where the group expects oil markets to ‎stabilize in the medium term. The delegates, some of which are from core Gulf OPEC producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon. Once deemed a “fair” price by many major producers, $100 a...
  • Saudi Oil Minister Says Russia Doesn't 'Deserve Market Share'

    12/22/2014 7:58:21 PM PST · by TigerLikesRooster · 41 replies
    BI ^ | Dec. 22, 2014 | Jim Edwards
    Saudi Oil Minister Says Russia Doesn't 'Deserve Market Share' Jim Edwards Dec. 22, 2014, 12:10 PM Saudi Oil Minister Ali Naimi really got the world's attention in an interview he gave to the energy journal Middle East Economic Survey (MEES). We told you earlier that Naimi said the Saudis don't care how low the price of oil goes: "Whether it goes down to $20, $40, $50, $60, it is irrelevant." What's interesting though is Naimi's rationale for not caring. Basically, he told MEES, the Saudis can afford not to care about the low price of oil. /snip Everyone is asking...
  • Oil Companies Seen Cutting Spending 25 Percent in 2015 Due to Falling Crude

    12/22/2014 1:35:43 PM PST · by thackney · 26 replies
    Rig Zone ^ | December 22, 2014 | Reuters
    Plunging oil prices will prompt energy companies to cut investments in new projects by 25 percent or more in 2015, analysts said over the past week, as firms try to stay cash-flow positive and keep debt in check. With oil prices down more than 40 percent since June, some companies, including ConocoPhillips, have slashed spending by 20 percent. But because crude prices have yet to stabilize, other companies are waiting to draw up budgets. "Many are buying time on 2015 capex and production guidance while hoping for a stable baseline to plan from," Capitol One Securities said in a note...
  • The reason for lower gas prices: Saudi Arabia and fracking

    12/22/2014 7:21:19 AM PST · by shepardspie33 · 18 replies
    Red Dirt Report ^ | December 22, 2014 | Brian Woodward
    ... While the U.S. does not export crude oil, its increased production has curbed imports, resulting in excess supply. Although the fracking boom has helped to increase supply and steal market share from the Middle East, it is the Saudi response to the increased production from North American shale that has sent the price of oil tumbling. In September 2014, in the face of falling oil prices, Saudi Arabia chose to increase oil production by half a percent. Days later on Oct. 1, they discounted oil exports to leading Asian customers. These actions set off a rapid decline in international...
  • Railcar Bottleneck Looms for Oil

    12/22/2014 6:14:48 AM PST · by thackney · 26 replies
    Wall Street Journal ^ | Dec. 21, 2014 | BOB TITA
    One-third of the crude oil hauled from North Dakotas Bakken Shale region by railcars could be forced off the tracks and into expensive truck fleets in the next four years, according to a railcar-industry trade group. The Railway Supply Institute says there arent enough shops to retrofit cars carrying flammable liquids in time to meet proposed federal deadlines, and that tens of thousands of cars will be idled as a result. The U.S. Department of Transportation wants tank cars carrying crude oil to be retrofitted with more puncture-resistant features in two years, and those carrying ethanol to be upgraded in...
  • Stock Market - Oil 'Panic' Period Ends As Analysis Replaces Emotion

    12/22/2014 5:51:44 AM PST · by thackney · 5 replies
    Forbes ^ | 12/21/2014
    Yes, oil closed below $60 on Friday, but the U.S. stock market closed up way up from Tuesdays close. The Feds action/non-action might seem the cause, but that looks like coincidental timing. With oil stocks like Chevron selling at both extremely attractive valuations and strong price support levels..., the market turnabout was waiting in the wings, only needing a gentle push to hit the stage in full action. What is noteworthy (and disturbing) is the ease with which commenters tossed about fear-inducing descriptors like plunge, rout, crash and panic. Following those emotional portrayals were the typical (and erroneous) visions...
  • Who Will Get Caught When The Oil Debt Bubble Pops?

    12/22/2014 5:31:55 AM PST · by thackney · 18 replies
    Forbes ^ | 12/19/2014
    Americas oil and gas boom was enabled by a huge pile of cheap financing. Many of the leading players in the boom, such as Chesapeake Energy and Continental Resources have for years been making capital investments at levels far surpassing the cashflow generated from operations. The mountain of debt advanced to drillers in recent years is estimated to be in the neighborhood of $500 billion some $300 billion in leveraged loans and another $200 billion in high yield debt. Thats about 16% of the U.S. high yield debt market, quadruple its share a decade ago. Thats a lot, even...
  • Saudi Arabia: We'll never cut oil production {OPEC really dead?}

    12/22/2014 5:28:28 AM PST · by thackney · 40 replies
    CNN Money ^ | December 22, 2014 | John Defterios
    In an exclusive interview with CNN, Saudi oil minister Ali al-Naimi also said he wasn't conspiring to take out rival producers by driving down the price. "These rumors or whoever generated them, is completely mistaken," he said. U.S. crude prices have slumped by nearly 50% in six months, the sharpest fall for many years. That has unsettled stock markets, accelerated a financial crisis in Russia, raised the risk that Venezuela will default and forced some U.S. producers to shed jobs and scale back investment. Depending on which conspiracy theory you subscribe to, Saudi Arabia is waging an oil price war...
  • Guess What Happened The Last Time The Price Of Oil Crashed Like This?

    12/20/2014 8:06:02 PM PST · by NKP_Vet · 85 replies
    http://www.prophecynewswatch.com ^ | December 6, 2014 | Michael Snyder
    There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but this time the stakes are even higher. When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing affect on financial...
  • North Sea oil industry 'close to collapse'

    12/19/2014 12:13:59 PM PST · by Lorianne · 37 replies
    BBC ^ | 18 December 2014 | Ben King
    The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money. Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse". Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. "It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis." "This...
  • Chevron, Statoil Announce First Oil Strike In New Gulf Of Mexico Field

    12/19/2014 12:23:47 PM PST · by Lorianne · 15 replies
    Oil Price ^ | 03 December 2014 | Andy Tully
    Two multinational energy giants, Chevron Corp. of the United States and Norways Statoil, have begun extracting oil and gas from the large Jack and St. Malo fields in US waters of the Gulf of Mexico. The two fields are among the largest in the Gulf and are expected to yield 94,000 barrels of oil equivalent and 21 million cubic feet of gas per day for an estimated 30 years, Chevron said in a statement on Dec 2. The Jack fields reserves were discovered in 2004 and the St. Malo oil was discovered a year earlier. The fields are situated about...
  • Obama: Keystone benefits for U.S. consumers, workers nominal (More crap sandwich advice)

    12/19/2014 1:34:17 PM PST · by AngelesCrestHighway · 26 replies
    Reuters ^ | 12/19/14 | Staff
    U.S. President Barack Obama said on Friday that construction of the Keystone XL pipeline to transport crude oil from Canada to the U.S. Gulf Coast would only nominally benefit American consumers and workers. "There is very little impact - nominal impact - on U.S. gas prices, what the average American consumer cares about," Obama told reporters during an end-of-year press conference. In his strongest comments on the Canada-to-U.S. pipeline to date, Obama picked apart some of the most common arguments proponents have used to urge the president to approve it: that it would create jobs, lower domestic gasoline prices and...
  • The reason oil could drop as low as $20 per barrel

    12/19/2014 12:11:58 PM PST · by C19fan · 82 replies
    Reuters ^ | December 19, 2014 | Anatole Kaletsky
    How low can it go and how long will it last? The 50 percent slump in oil prices raises both those questions and while nobody can confidently answer the first question (I will try to in a moment), the second is pretty easy. Low oil prices will last long enough for one of two events to happen. The first possibility, the one most traders and analysts seem to expect, is that Saudi Arabia will re-establish OPECs monopoly power once it achieves the true geopolitical or economic objectives that spurred it to trigger the slump. The second possibility, one I...
  • Whats Really Driving Saudis Reluctance?

    12/19/2014 10:50:36 AM PST · by thackney · 42 replies
    Oil Pro ^ | 12/19/2014 | Kurt Rippelmeyer
    There are numerous stories, on the internet, regarding the decline of oil prices. Everybody has an opinion or forecast, but unfortunately, they range from the eternal optimist to depths of the ultra deep (well ok the deepwater) drill rig. The majority of these posts talk about the glut in recent months as supply overwhelms the demand. Mostly thanks to slumping economies around the world, especially the largest users of petroleum. There is also significant chatter around the internet about Saudi Arabia (KSA) and their reluctance to curb production, which would help the price of oil go back up, to the...
  • US stripper well operators eye closures amid low oil prices

    12/19/2014 6:30:24 AM PST · by thackney · 30 replies
    Financial Times ^ | 14 DEC 2014 | Gregory Meyer
    Analysts examining the effect of the oil prices precipitous decline on companies should spare a thought for stripper well operators, the mom-and-pop businesses that coax the last trickles of crude from long-ago drilled holes. Although tiny in isolation the average stripper well yields less than 2 b/d there are more than 400,000 such wells in the US supplying about 11 per cent of US oil production. They produced 700,000 barrels per day in 2012, the latest year for which data are available as much as the OPEC member Qatar, according to data from the Interstate Oil &...
  • EIA, Analyst: US Crude Production Strong, Despite Rig Count Decline

    12/19/2014 5:05:37 AM PST · by thackney · 8 replies
    Rig Zone ^ | December 18, 2014 | Gene Lockard
    Rig counts have trended lower in recent weeks, and the drop is right on schedule, according to online economic blog Zero Hedge. There is a lag time of about four to six months before initial declines in crude oil prices lead to a reduction in rig counts, and its been about that long since crude oil prices began sliding last summer. But while analysts acknowledge the reduction in rigs, they say production levels will continue to grow, though not as quickly. There can be a reduction of as much as 10 to 25 percent in the number of wells without...
  • TransCanada CEO says it's not easy, but oil business is 'resilient'

    12/19/2014 5:02:56 AM PST · by thackney
    CTV News ^ | December 18, 2014 | Lauren Krugel
    The CEO of TransCanada Corp. (TSX:TRP) says he doesn't see the oil industry's appetite for new pipelines faltering even though crude prices have skidded to the lowest point in more than five-years. In an interview in his downtown Calgary office, Russ Girling said he's seen ups and downs far more drastic over his career and expects the oilpatch will come out of the latest downturn in reasonably good shape. "There's a tremendous need to build irrespective of the price of the commodity right now," Girling said. "We're being pressed to get these facilities online as quickly as we possibly can."...
  • The Conventional Wisdom On Oil Is Always Wrong

    12/19/2014 4:54:53 AM PST · by thackney · 21 replies
    538 Economics ^ | DEC 18, 2014 | BEN CASSELMAN
    In 2008, I moved to Dallas to cover the oil industry for The Wall Street Journal. Like any reporter on a new beat, I spent months talking to as many experts as I could. They didnt agree on much. Would oil prices then over $100 a barrel for the first time keep rising? Would post-Saddam Iraq ever return to the ranks of the worlds great oil producers? Would China overtake the U.S. as the worlds top consumer? A dozen experts gave me a dozen different answers. But there was one thing pretty much everyone agreed on: U.S. oil...
  • Don't expect a Cuban oil bonanza

    12/19/2014 4:48:35 AM PST · by thackney · 9 replies
    Politico ^ | 12/17/14 | MATT DAILY and ELANA SCHOR
    More U.S. travelers may soon start flocking to Cuba, but dont expect oil executives to follow them. Cuba is believed to hold sizable oil and gas resources off its northwest coast, in the eastern Gulf of Mexico raising speculation that the Communist nation could become an attractive target for energy companies if Wednesdays diplomatic thaw eventually leads to the end of the five-decade-old U.S. trade embargo. But exploration by Brazilian, Malaysian and Spanish companies in the past few years has failed to produce any gushers and the current worldwide glut of cheap oil is not going to encourage...
  • Exxon Mobil Shows Rising U.S. Output as Prices Fall

    12/18/2014 1:16:24 PM PST · by Up Yours Marxists · 29 replies
    Salt Lake Tribune ^ | December 18, 2014 14:15 GMT | Joe Carroll (Bloomberg News)
    Crude oil production from U.S. wells is poised to approach a 42-year record next year as drillers ignore the recent decline in price pointing them in the opposite direction. U.S. energy producers plan to pump more crude in 2015 as declining equipment costs and enhanced drilling techniques more than offset the collapse in oil markets, said Troy Eckard, whose Eckard Global owns stakes in more than 260 North Dakota shale wells. Oil companies, while trimming 2015 budgets to cope with the lowest crude prices in five years, are also shifting their focus to their most-prolific, lowest-cost fields, which means extracting...
  • Global Warming, Empty Gestures

    12/18/2014 6:37:24 AM PST · by Kaslin · 9 replies
    Townhall.com ^ | December 18, 2014 | Debra J. Saunders
    I have a theory as to why Americans don't worry all that much about global warming: High-profile purveyors of climate change don't push for reductions in greenhouse gases so much as focus on berating people who do not agree with their opinions. They call themselves champions of "the science" yet focus on ideology more than tangible results. Their language is downright evangelical. Recently, science guy Bill Nye joined other experts who objected to the media's use of the term "climate skeptic." They released a statement that concluded, "Please stop using the word 'skeptic' to describe deniers." Deniers? Like Judas? Why,...
  • Crude Oil Is Rolling Over

    12/18/2014 10:06:12 AM PST · by blam · 49 replies
    BI ^ | 12-18-2014 | Myles Udland
    Myles Udland December 18, 2014Crude oil is starting to roll over. In late morning trade, West Texas Intermediate crude oil futures were giving up earlier gains and were down more than 1% on the day. WTI futures were down near $56 a barrel on Thursday, after briefly touching $59 a barrel earlier. On Wednesday, crude oil had a wild ride, spiking ahead of the Federal Reserve's announcement before giving up those gains. (snip)
  • Venezuelan President Calls American Oil Fracking Act of Aggression [satire]

    12/18/2014 9:28:35 AM PST · by John Semmens · 7 replies
    Semi-News/Semi-Satire ^ | 13 Dec 2014 | John Semmens
    With his countrys economy on the ropes due to declining oil prices, Venezuelan President Nicolas Maduro blamed the United States oil fracking industry. It is an act of aggression against my country and a crime against humanity, Maduro maintained. Venezuela needs high oil prices to support our programs to feed our people. These frackers are destroying our ability to feed ourselves. While most economists see falling fuel prices as beneficial for the vast majority of consumers, Maduro complained that most of the beneficiaries are rich, white Americans. Saving them money at our cost is a direct attack on my governments...
  • Exxon and ConocoPhillips make record-breaking bid for offshore exploration rights

    12/18/2014 7:07:14 AM PST · by thackney · 18 replies
    Houston Business Journal ^ | Dec 17, 2014 | Olivia Pulsinelli
    Exxon Mobil Corp., ConocoPhillips and Canada-based Suncor Energy Inc. The parcel is in the Flemish Pass offshore Newfoundland in northeast Canada. That's where Norway-based Statoil ASA (NYSE: STO) last year made a major oil discovery, its third in the Flemish Pass Basin. The record-breaking bid comes as oil prices have fallen to their lowest levels in years, though production is still going strong, Houston Business Journal previously reported. The news helped boost ConocoPhillips' stock on Dec. 16, when it reached $64.94 per share, up nearly 6 percent, before closing at $63.24, up 2.5 percent. Similarly, Exxon's stock jumped to $89.14...
  • Oil drop sends major central banks in different directions

    12/18/2014 6:58:19 AM PST · by mac_truck · 2 replies
    Reuters ^ | 12/18/2014 | Paul Carrel, Mike Peacock and Howard Schneider
    The world's major central banks are scrambling to work through the implications of the near halving of the price of oil in the second half of 2014, and they are coming up with very different conclusions. Perhaps unsurprisingly, policymakers looking at robust economic recoveries such as in the United States and Britain are focused on the likely boost to growth and consumption from markedly lower energy prices and the later upward impact that should have on inflation. But for the European Central Bank, battling to revive a moribund economy, the worry is whether cheap oil could tip the euro zone...
  • North Sea oil industry 'close to collapse'

    12/18/2014 6:24:01 AM PST · by Oldeconomybuyer · 26 replies
    BBC News ^ | December 18, 2014 | By Ben King
    The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money. Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse". Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. "It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis." "It's...
  • Mitsui CEO: U.S., Saudis Pushing Oil Prices Lower, Working Together to Hurt Islamic State and Russia

    12/18/2014 5:26:45 AM PST · by thackney · 31 replies
    Wall Street Journal ^ | Dec. 17, 2014 | PETER LANDERS And MARI IWATA
    The head of Mitsui & Co., a big energy investor, said he thinks the U.S. and Saudi Arabia are working together to keep oil prices down in an effort to hurt Islamic State and Russia. Masami Iijima, chief executive of the Japanese trading company, spoke in an interview as crude oil was trading near its lowest level since May 2009. He said the recent decision by the Saudi-led Organization of the Petroleum Exporting Countries to keep production at current levels, which triggered the oil-price plunge, would particularly hurt Islamic State, the militant group that has seized parts of Iraq and...
  • Saudi Arabia's Oil Strategy Is About More Than Destroying The US Shale Business

    12/18/2014 5:14:34 AM PST · by thackney · 34 replies
    Business Insider ^ | DEC. 17, 2014 | SHANE FERRO
    Saudi Arabia may not be aiming at the US in its hands-off policy toward falling oil prices. At a panel discussion Wednesday hosted by the Overseas Press Club and Control Risks (the latter a global risk consultancy), the speakers seemed skeptical of the idea that Saudi Arabia was refusing to prop up oil prices because it wanted to force American producers out of the market. (US shale basins are among the most expensive sources of oil to tap.) There may be better political reasons for this move, with a reduction in American shale supply on the market just being the...
  • The (temporary) pain of tanking oil prices

    12/18/2014 4:55:20 AM PST · by thackney · 2 replies
    The Globe and Mail ^ | Dec. 17 2014 | PETER TERTZAKIAN
    Your numbers must have a bust! exclaimed my disbelieving friend who produces oil for a living. I dont think so, I said as I led him through some rough calculations. If the price of a barrel of U.S. light oil averages $60 in 2015, the hit to the Canadian industry will be worse than in 2009. I noted that at $80 (U.S.) a barrel, there was some immunity to the shock, but a sustained price below $60 will cause the industry to lose most of its white blood cells. Thanks, he muttered with a wince, like a kid that had...
  • Obama shift on Cuba wont mean big oil boom in Gulf of Mexico

    12/18/2014 4:46:59 AM PST · by thackney · 6 replies
    Fuel Fix ^ | December 17, 2014 | Jennifer A. Dlouhy
    President Barack Obamas decision to normalize relations between the United States and Cuba may lead to more commercial opportunities for Americans within the island nation. But dont expect U.S. oil producers to move swiftly to take advantage of them. Although geologists believe billions of barrels of crude may be lurking off Cubas coast in the Gulf of Mexico, oil companies have had a hard time finding that black gold. When Repsol, Petronas and other oil companies bored exploratory wells in 2012 and 2013, they turned up dry. In some cases, oil wasnt found, and in others, the discovery was not...
  • Congress blocks sage grouse protections, but work goes on

    12/18/2014 4:41:23 AM PST · by thackney · 11 replies
    Fuel Fix ^ | December 17, 2014 | Associated Press
    U.S. wildlife officials will decide next year whether a wide-ranging Western bird species needs protections even though Congress has blocked such protections from taking effect, Interior Secretary Sally Jewell said Wednesday. They could determine the greater sage grouse is heading toward possible extinction, but they would be unable to intervene under the Endangered Species Act. The birds fate instead remains largely in the hands of the 11 individual states where they are found. President Barack Obama signed a $1.1 trillion spending bill late Tuesday with a provision that barred money from being spent on rules to protect the chicken-sized bird...
  • Gold Roubles - This Is What Gold Does In a Currency Crisis

    12/17/2014 10:39:37 AM PST · by blam · 13 replies
    TMO ^ | 12-17-2014 | John_Rubino
    December 17, 2014 John Rubino To say that gold is in a bear market is to misunderstand both gold and markets. Gold isn't an investment that goes up and down. It is money in the most basic store-of-value sense. Most of the time it just sits there, and when its price changes in local currency terms that says more about the local currency than about gold. But when currencies collapse, gold shines. Consider the above from the point of view of a typical Russian. The ruble is tanking (no need to understand why -- all fiat currencies go this way...
  • Obama withdraws Alaska's Bristol Bay from oil drilling

    12/16/2014 7:59:43 PM PST · by Jet Jaguar · 35 replies
    Associated Press Fairbanks Daily News-Miner ^ | Dec 16, 2014 | Associated Press
    <p>President Barack Obama announced Tuesday that he's removing more than 52,000 square miles of waters off Alaska's coast from consideration for oil and gas exploration or drilling.</p> <p>The president said in a video announcement that Bristol Bay and nearby waters, covering an area roughly the size of Florida, would be withdrawn from consideration for petroleum leases. He called Bristol Bay one of the country's great natural resources and a massive economic engine.</p>
  • OIL JUST SPIKED

    12/17/2014 10:05:19 AM PST · by blam · 112 replies
    BI ^ | 12-17-2014 | Sam Ro
    Sam Ro December 17, 2014Oil prices are surging. The price of West Texas Intermediate crude oil on Tuesday rose to $58.98 from $54.20. Brent crude rose to $63.50 from about $58.70. At this point, there seems to be no obvious explanation for the move. On Tuesday, oil prices tumbled to five-year lows. WTI touched $53.60 and Brent sank to $59.86, both were the lowest levels since May 2009. (snip)
  • Low Oil Prices to Slow, but Not Derail US Shale Boom

    12/17/2014 9:57:31 AM PST · by thackney · 5 replies
    Rig Zone ^ | December 17, 2014 | Karen Boman
    Recent declines in North Sea Brent and West Texas Intermediate (WTI) crude oil prices and the recent decision by the Organization of Petroleum Exporting Countries (OPEC) to maintain oil output has caused speculation about whether the boom in U.S. shale exploration and production could continue. The U.S. shale revolution has created in a boom in U.S. oil production over the past five years, growing from 5.4 million barrels of oil per day (MMbopd) in 2009 to 8.6 MMbopd today. Shale gas production has also soared from 59.3 billion cubic feet per day (Bcf/d) in 2009 to more than...