Energy

  • There are factors out there that can lead to oil price stability.

    Oil Price Volatility as the New Normal?

    On September 10 the EIA reported a production decline in the Lower 48—essentially shale production—of 208,000 BOPD. That is a staggeringly enormous number, approximately 10 percent of the estimated global over-supply. Additionally, it was a week-over-week number, which makes it all the more impressive. Yet it received little attention through the week. Rather, Goldman Sachs was grabbing all the headlines with its $20 call on oil.

    view 0

  • The rural poor in Africa are being carbon traded out of their homes.

    Carbon Trading Initiative Consequences

    In recent years, there has been significant movement toward land acquisition in developing countries to establish forestry plantations for offsetting carbon pollution elsewhere in the world. Land grabbing is the common reference to this practice.

    These carbon-trading initiatives work on the basis that forestry plantations absorb carbon dioxide and other polluting greenhouse gases. This helps to undo the environmental damage associated with modern western lifestyles.

    view 0

  • Tight oil in the U.S. has seem to come to an end.

    Oil Market Fundamentals Will Need Some Magic

    The party is over for tight oil.  Despite brash statements by U.S. producers and misleading analysis by Raymond James, low oil prices are killing tight oil companies.  Reports this week from IEA and EIA paint a bleak picture for oil prices as the world production surplus continues.  EIA said that U.S. production will fall by 1 million barrels per day over the next year and that, "expected crude oil production declines from May 2015 through mid-2016 are largely attributable to unattractive economic returns."

    view 0

  • Despite the recent price swings, oil appears to be heading lower.

    Oil Takes the Path of Least Resistance

    As traders, investors and pundits, we all like to think that what we do is akin to a science. We believe that by working harder and being smarter we can give ourselves an edge, that enough research will reveal to us the next move, either a long-term trend or an intraday blip on a chart, and that we can profit from that knowledge. Usually, especially over longer time spans, we are correct in that assumption. Sometimes, however, no amount of fundamental or technical analysis will help.

    view 0

  • Launching a clean oil sands project in Utah.

    Do Oil Sands Have to be Dirty?

    After decades of exhaustive attempts to overcome the dirty reputation of oil sands, we finally have an environmentally-friendly and low cost method to tap into these vast resources in the state of Utah—good news both for Mother Nature and all oil and gas investors.

    view 0

  • Maybe renewable energy should be Abe's fourth arrow?

    Perhaps Japan's Abe Should Fire Off Another Arrow?

    On 11 August, the Japanese government went along with its plan to revive nuclear energy after the Fukushima disaster by restarting one of the Sendai nuclear power plants. Prime Minister Shinzo Abe insists that Japan cannot thrive without nuclear energy because oil and gas imports put a costly burden on the Japanese economy.

    view 0

  • Why does it seem like the Saudis are killing OPEC?

    Are the Saudis Killing OPEC?

    "If you are the world's leading energy economy, you produce energy, that's what you do."

    "A government can stay irrational longer than it can stay solvent."

    "Even in the short term, you're dead, if you commit suicide."

    view 0

  • Saudi Arabia could face revolt at the December OPEC meeting.

    A Potentially New OPEC(ing) Order at the Next Meeting

    OPEC next gathers December 4 in Vienna, just over a year since Saudi Oil Minister Ali Al-Naimi announced at the previous OPEC winter meeting the Saudi decision to let the oil market determine oil prices rather than to continue Saudi Arabia's role of guarantor of $100+/bbl oil.

    view 0

  • Canadian oil falls below $25 per barrel.

    The Real Price of Oil is Real Low

    By the time the yuan had weakened almost 2%, the slide in commodity prices was cited as evidence of the market's concern that China was going to export deflation.  This weighed on the dollar-bloc currencies, and the currencies of other commodity producers.  Now the yuan has fallen further; oil prices are higher as are the dollar-bloc currencies and the main commodity producers in the emerging market space.

    view 0