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Global Oil Price Yardsticks Tell Different Stories


After dropping to close to a six-year low in January, the price of oil has rallied in recent weeks. But how strong is the recovery? Depends on who you ask. Looking at Brent, the global oil benchmark, the price is up more than 30%. But take West Texas Intermediate, the U.S. marker, and the percentage […]

Forget Peak Oil; Worry About Peak Demand


Brian Bagnell of Macquarie Capital Markets has two caveats for investors in junior oil and gas companies: Expect extreme volatility, and don’t expect oil prices above $70/barrel anytime soon. He tells the The Energy Report that the winners in this sector will demonstrate maximal efficiency and minimal costs, and that even in this time of […]

Canada’s Oilsands Face ‘Death Spiral’ If They Don’t Cut Costs


As the world’s oil glut continues to build, wiping out hopes of a price recovery, the head of one of Canada’s largest oilsands operators is warning the industry faces a “death spiral” if it doesn’t figure out how to cut costs. Speaking before the Chamber of Commerce in Fort McMurray, Steve Laut, president of Canadian […]

Oil-Drop Pain Spreads to Saudi Aramco

Oil-Drop Pain Spreads to Saudi Aramco thumbnail

Saudi Arabia’s refusal late last year to rein in oil production helped trigger the price crash that has hurt oil-producing countries and publicly listed energy companies alike. And now even the kingdom’s own oil company is feeling the pain. As a result, state-owned Saudi Aramco is looking for ways to cut costs everywhere, from pushing […]

Canada’s Oil Industry ‘In Near-Death Condition


Russian state-owned energy giant Rosneft is responding to sanctions slapped on it by the Harper government by talking down Canada’s oil industry. “In Canada the [oil] industry is in a near-death condition,” Rosneft spokesperson Mikhail Leontiev told the Russian News Service, as quoted at the Moscow Times. “This was sanctions against the departed, and I […]

A New Global Currency; the Rise of the East; and Peak Oil – Erik Townsend


Originally Published on Jun 3, 2014 John Jay College of Criminal Justice, The City University of New York Subscribe to the GoldMoney newsletter at Episode 126: Alasdair Macleod interviews Erik Townsend

The price of oil reaffirms the lesson of a legendary wager


When you look at a chart of the price of oil during the last six months, it says a lot of things. One of them is that Julian Simon has won again. I’d long known about the legendary Julian Simon-Paul Ehrlich bet, made in the early 1980’s at the tail end of a commodity boom. […]

Starting A Successful Permaculture Based Business

Starting A Successful Permaculture Based Business thumbnail

  Key Takeaways: Instead of looking at business as the enemy, look at green business. Use business to support yourself, fix the planet and create community. There is so much opportunity out there – “Find the intersection between your passions and your strengths and problems that need solving.” Permaculture is unique. It gives you a […]

The global financial system stands on the brink of second credit crisis


The world financial system stands on the brink of a second credit crisis as interbank lending shows increasing risk The world economy stands on the brink of a second credit crisis as the vital transmission systems for lending between banks begin to seize up and the debt markets fall over. The latest round of quantitative […]

Oil as Low as $20 Seen by Citigroup


Oil may drop more than 50 percent to “the $20 range” by the start of the second quarter as oversupply fills storage tanks close to capacity, Citigroup Inc. said. Signs of a slowdown in U.S. drilling don’t mean the crude glut will be eliminated, Edward Morse, Citigroup’s global head of commodity research, said in a […]

Here’s Why Big Oil Companies Are Unable To Increase Reserves To Counter Declining Production

Here’s Why Big Oil Companies Are Unable To Increase Reserves To Counter Declining Production thumbnail

According to the quarterly results announced during the past few weeks, major oil companies have reported a mediocre performance for last year, as far as exploration and production of crude oil and natural gas reserves is concerned. At the same time, companies have also reduced their capital spending budgets for this year, which might exacerbate […]

Jeremy Grantham Divines Oil Industry’s Future


  The simplest argument for the oil price decline is for once correct. A wave of new U.S. fracking oil could be seen to be overtaking the modestly growing global oil demand. It became clear that OPEC, mainly Saudi Arabia, must cut back production if the price were to stay around $100 a barrel, which […]

Commodities explained: Oil and rig counts

Commodities explained: Oil and rig counts thumbnail

The weekly US rig count data, published on Friday, have generated considerable excitement in the oil markets recently, with the numbers released by oil-services group Baker Hughes moving crude prices. What’s going on? The numbers identify the level of drilling activity and have traditionally been regarded as a gauge for the health of the US […]

Here’s One Theory for Why Oil Is Going Nuts

Here’s One Theory for Why Oil Is Going Nuts thumbnail

Brent oil surged to $58 a barrel on Tuesday. It is now 24 percent higher than it was just a few weeks ago, meeting the technical definition of a bull market. (Some perspective: Prices are still down 50 percent since June.) One possible reason for the recent surge: an industry in despair. U.S. drillers idled 94 rigs last week, […]

Deloitte studies oil supply growth for 2015-16


A Deloitte MarketPoint analysis suggested large-field projects, each producing more than 25,000 b/d, could bring on 1.835 million b/d in oil supply this year of which 635,000 b/d would be from members of the Organization of Petroleum Exporting Countries and the rest from non-OPEC productions. In 2014, new non-OPEC large-field projects collectively brought on 2.3 […]

Citi: The oil (and gas) plunge isn’t over yet

Citi: The oil (and gas) plunge isn’t over yet thumbnail

The oil crash — and cheap gas bonanza — probably isn’t over yet. For a few days, oil was showing real signs of life following last year’s meltdown. Prices spiked above $54 a barrel on Tuesday after oil’s best three-day performance in six years. Drivers may have even noticed a little pop in gas prices. […]

Oil workers in US on first large-scale strike since 1980

Oil workers in US on first large-scale strike since 1980 thumbnail

The United Steelworkers union, which represents employees at more than 200 U.S. oil refineries, terminals, pipelines and chemical plants, began a strike at nine sites Sunday, the biggest walkout held in support of a nationwide pact called since 1980. The USW started the work stoppage after failing to reach agreement on a labor contract that expired […]

97% of fracking now operating at a loss at current oil prices

97% of fracking now operating at a loss at current oil prices thumbnail

 If the Saudis wanted to crush America’s shale oil industry they are certainly doing a good job of it.  West Texas Intermediate reached a 2014 peak of $107.73 in June before dropping as low as $49.77 today on the New York Mercantile Exchange. The grade settled at $50.04 a barrel. That’s below the break-even price […]

Where Is All That Excess Oil Going?

Where Is All That Excess Oil Going? thumbnail

There’s a term traders use when the price of a commodity like oil has fallen because of oversupply but seems guaranteed to rise again. It’s a market that’s “in contango,” says Brenda Shaffer, an energy specialist at Georgetown University. “It almost sounds like a sort of great oil dance or something.” And Shaffer says that […]

The shale oil fields most at risk


With crude prices down nearly 60 percent from their highs, investors are learning that not all oilfields are created equal. U.S. oil production grew 49 percent between 2008 and 2013, as drillers improved productivity and tapped high-yield debt markets. But with their product fetching far less these days, exploration and production companies have slashed capital […]

The Gold/Oil Ratio Shows A Crisis Is Inevitable

The Gold/Oil Ratio Shows A Crisis Is Inevitable thumbnail

Market developments over the past six months have created an environment where a “crisis” seems all but inevitable. The world’s reserve currency, USD, is now 17% stronger than it was in June on a trade-weighted basis. Europe and Japan, the world’s largest and fourth largest economies, are in recession, while China, the third largest economy, […]

World’s Largest Traders Use Offshore Supertankers to Store Oil

World’s Largest Traders Use Offshore Supertankers to Store Oil thumbnail

Companies Are Buying Oil Now to Sell Later When Prices Rise The supertanker TI Oceania was built to ferry vast quantities of oil across oceans, but for the next year it is expected to remain anchored off the coast of Singapore, storing millions of barrels of oil for Vitol SA, a giant trading house. The […]

The Oil Crash Is No Small Matter…Repurcussions Will Be Extensive


Awkward Beginnings… With all due respect… What a way to start the year. The crash in oil prices is no small matter. The previous down sweep in energy prices occurred in the midst of the financial crash 0f 2008 and Great Recession. Oil prices soon reversed afterwards and climbed back to dizzying heights, even as […]

BP, Shell, And Petrofac: Why Peak Oil Theory Was Wrong


During the 1990s, the oil price was around $10-20 a barrel. Petrol was cheap and SUVs and gas guzzlers were selling in record numbers. Oil company share prices were low and there was next to no oil exploration. Yet wells from the North Sea to Saudi Arabia were still producing oil — after all, once an oil well has been drilled, […]

Shale Debt and its Implications


We have all been held spell bound by the recent precipitous plunge in oil prices. The implications are the stuff of conjecture, conspiracy theories and just plain interesting conversation. Adding to this conversation, it would appear that another troubling trend has possibly emerged. It is well known that the Fed has kept interest rates artificially […]

Oil traders to store millions of barrels at sea as prices slump

Oil traders to store millions of barrels at sea as prices slump thumbnail

Some of the world’s biggest oil traders have booked supertankers to store at least 25 million barrels at sea in recent days, seeking to take advantage of the crash in crude prices and make a profit down the line. Floating storage levels are expected to increase further in coming weeks as trading companies adopt a […]

Oil price crash bankrupting ‘small oil’

Oil price crash bankrupting ‘small oil’ thumbnail

Sherri McDaniel is already feeling the sting of the drop in crude oil prices from more than $115 per barrel in June to less than $50 in early January. She is president of ATEK Access Technologies, a small Minneapolis firm that owns TankScan, a wireless monitoring system that keeps track of fluid levels in oil […]

Colorado Groups Work to Balance Oil, Gas Production and Environment


Following last summer’s stand-off in Colorado between the state’s pro-environment and pro-energy forces, an unofficial triumvirate consisting of Coloradans for Responsible Energy Development (CRED), the University of Colorado and Governor John Hickenlooper’s task force is upping efforts at finding a balance before tensions – and tempers – heat up again. It is no secret to […]

The Oil Crash Looks A Lot Like 8 Other Classic Bubbles That Burst

The Oil Crash Looks A Lot Like 8 Other Classic Bubbles That Burst thumbnail

Oil might have been in a bubble that’s now popping. Gluskin Sheff Chief Economist and Strategist David Rosenberg observed in his Friday morning research note that: “Well, with perfect hindsight, oil was in a classic bubble: parabolic price moves, tremendous excitement, widespread participation by the investing public, a ton of leverage.” Rosenberg noted that, when […]

Mounting debt for energy firms as oil prices plummet

Mounting debt for energy firms as oil prices plummet thumbnail

Energy firms have been financing new oil production by taking on large amounts of debt. When oil prices averaged over $100, that strategy made sense. But with oil at $50, most indebted firms are suddenly in crisis. In recent years oil exploration companies have taken on more debt in order to finance their operations. The […]

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