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Peak Oil Pulled a Fast One on Me

Peak Oil Pulled a Fast One on Me thumbnail I’ll admit that I was completely caught off guard by the recent (and ongoing?) crash in oil prices. It’d be a stretch to say I’m embarrassed by my lack of foresight, although perhaps “dumb-ass” would be a bit deserving. I would say I’m well enough versed with the reality of peak oil : I’ve read perhaps a couple dozen books on the topic, poured through several of the peak oil blogs (upon deciding to end my 5-year Internet hiatus a year ago), have seen several talks given by authors and writers on the topic, and I’ve attended two Age of Limits conferences. Nevertheless, even though there were bloggers out there discussing the possible ramifications of low oil prices, its possibility still didn’t register with me. I’ll explain what I mean by that shortly, but to do that it’d be best […]

Posted On : Published By : Tom Whipple
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Rocky patch, or a long-term crisis for the oil field?

Some small and midsize operators have sharply curtailed their drilling plans for the Eagle Ford. So far, few of the big players in the field have announced their diminished spending plans for the year. But BHP Billiton Petroleum, one of the biggest producers in the field, said last week it will cut 40 percent of its U.S. shale drilling activity this year in reaction to lower oil prices. Photo: Express-News File Photo As the energy industry grinds through its latest chapter of low oil prices, many industry experts see nothing more than a rocky plot twist. Others see the last chapter for some shale operations, especially those that are carrying heavy debt. The price for a barrel of West Texas Intermediate was around $45 on Friday. Last June, it had soared higher than $100 per barrel. Art Berman, a Houston petroleum geologist and longtime skeptic of the shale boom, […]

Posted On : Published By : Tom Whipple
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Britain’s Guardian: Shale gas ‘questionable’

British newspaper The Guardian questions government’s pursuit of shale natural gas. UPI/Kevin Dietsch LONDON, Jan. 27 (UPI) — An editorial published Tuesday by The Guardian newspaper questioned the British government’s pursuit of shale natural gas, saying leave it alone. "It is, to say the least, questionable for the U.K. to claim the need to bring on stream a new fossil fuel at a time when it is also notionally committed to greening its economy," the newspaper opined . "Fracking will never produce American amounts of shale gas, and certainly won’t even be viable for at least a decade." The British Geological Survey estimates the Bowland shale formation in the north of the country contains 1.3 quadrillion cubic feet of natural gas. The government said it must act carefully in unlocking those reserves, but expressed support for a fledgling sector it says will provide jobs, economic growth and a source […]

Posted On : Published By : Tom Whipple
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Heavy Fighting Drains Ukraine Government’s Options and Finances

President Petro Poroshenko attends Auschwitz ceremonies Tuesday. ENLARGE Photo: Getty Images Ukrainian troops beat back fresh attacks by pro-Russia militants on a crucial rail hub Tuesday, part of recent heavy fighting that is sapping the Ukrainian administration of options and finances as it works to fend off a wider Russian-supported onslaught. U.S. and European leaders threatened new sanctions in the wake of a rebel rocket attack that killed dozens of Ukrainian civilians over the weekend, but Russian President Vladimir Putin appeared ready to shrug off any new measures. On Tuesday, he continued to blame Kiev for the fighting and for “gunning down civilians in cold blood.” The Kremlin denies giving support to pro-Russia rebels in eastern Ukraine or sending Russian troops, which Kiev said on Tuesday numbered as many as 15,000. Kiev and Western officials say a fresh infusion of Russian armor in the past two weeks has been […]

Posted On : Published By : Tom Whipple
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Russian govt proposes spending cuts in view of crisis

MOSCOW (AP) — The Russian government, facing its worst economic crisis in a decade, on Wednesday proposed cutting planned spending by 10 percent this year and 5 percent over the next two years in all categories except military and social expenditures. Russia’s economy has been battered by lower energy prices, a collapse in the value of the ruble and Western sanctions over its involvement in Ukraine. Russia’s GDP is expected to decline by 4-5 percent this year, the first drop since 2009. The ruble has lost half of its value while the Standard & Poor’s ratings agency downgraded Russia’s credit rating to a non-investment – "junk" – level for the first time in more than a decade. The anti-crisis plan released on the government’s website on Wednesday lists measures that authorities will take to support the economy including over $3.7 billion to prop up Russian banks and $700 million […]

Posted On : Published By : Tom Whipple
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Russia: Plan Approved To Cut State Spending

Moscow has approved an anti-crisis plan that would introduce structural reforms and reduce budget spending, Russian Finance Minister Anton Siluanov said, PRIME news reported Jan. 27. Siluanov said the one-year plan does not involve budget spending growth. Russia’s declining economy faces pressure from international sanctions and stands to lose from government budget cuts .

Posted On : Published By : Tom Whipple
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Oil Futures Trade in Narrow Range During Asian Hours

By Eric Yep Crude-oil futures were mostly stable in Asian trade Tuesday, after posting losses in the previous trading session. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $45.27 a barrel at 0435 GMT, up $0.12 in the Globex electronic session. Brent crude for March delivery rose $0.16 to $48.32 a barrel on London’s ICE Futures exchange. Oil markets appear to be consolidating with prices moving in a narrow price range for most of January, but analysts said prices are still at risk of falling further as the global oil surplus is expected to continue to rise in the first half of this year. China, the world’s second-largest oil consumer, has lowered its target for industrial-output growth to around 8% this year from 9.5% in 2014, as a slowing economy makes it difficult to boost industrial activity, a ministry spokesman said […]

Posted On : Published By : Tom Whipple
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Oil Trades Near 6-Year Low as OPEC Fails to Turn Focus From Glut

Oil traded near the lowest in almost six years in New York as OPEC’s warning that prices may surge without new investment in production failed to shift the market’s focus from more immediate signs of a global supply glut. Futures fell 0.2 percent in New York, paring an earlier gain of as much as 1.3 percent. A spike to $200 a barrel is possible without adequate spending for the long term, OPEC Secretary-General Abdalla El-Badri said. U.S. crude inventories probably rose to 402.1 million barrels last week, the most in records dating back to August 1982, a Bloomberg News survey shows before a government report on Wednesday. Oil slumped almost 50 percent last year as the U.S. pumped crude at the fastest rate in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to reduce output. Prices may drop to as low as $30 a […]

Posted On : Published By : Tom Whipple
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Oil falls more than 1 percent as euro tumbles after Greek election

SINGAPORE (Reuters) – Oil slid more than 1 percent on Monday, with U.S. crude falling close to a six-year low, after Greek election results heightened uncertainty in the euro zone and depressed the bloc’s currency against the dollar. Greece’s left-wing Syriza appeared on course to trounce the ruling conservatives in Sunday’s snap election, setting up a possible confrontation with international creditors. March Brent crude fell 71 cents to $48.08 a barrel by 0718 GMT, wiping out light gains made on Friday after the death of Saudi King Abdullah, but it was off an early low of $47.85. West Texas Intermediate (WTI) crude for March delivery was trading down 69 cents at $44.90 a barrel. Front-month WTI earlier slid to an intraday low of $44.35, just above the $44.20 hit on Jan. 13, which was the lowest since April 2009. Global financial markets reacted to the Greek election on Monday […]

Posted On : Published By : Tom Whipple