Category: Peak Oil

The JODI data came out a few days ago. Below is JODI World Total C+C with EIA data used for countries not reporting to JODI. I use EIA data also for Venezuela and Iran because JODI uses data reported by these two countries which is political and inflated by about one million barrels per day by Iran and half a million barrels a day by Venezuela. The data is in kb/d with the last data point September 2013. Notice that JODI has a new world high in July just like the EIA had but down 976,000 barrels per day from July to to September. JODI has Non-OPEC at about 350,000 barrels below the peak in December 2012. I don’t put much stock in the JODI data but I do find it interesting look at occasionally. And since it is usually almost two months […]

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Aban Offshore Ltd. (ABAN) , Asia’s third-most- indebted oil rig provider, will be able to obtain cheaper U.S. and European financing following the easing of some sanctions on Iran, the Indian company’s biggest market. The company will be able to cut its cost of debt by as much as 2.5 percentage points as the easing of sanctions allows Aban to borrow from European and U.S. banks, a route previously closed, according three analysts surveyed by Bloomberg News. The driller had debt equivalent to 129.9 billion rupees ($2.1 billion) as of Sept. 30, according to data compiled by Bloomberg, eight times as much its market value. The relaxation of some restrictions on Iran by the U.S. and five other world powers will let companies with operations in the Islamic Republic get loans and insure their assets. Aban, which earns about 40 percent of its revenue from rigs leased to Iranian […]

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Spanish energy company Repsol would get $5 billion in compensation from Argentina for the expropriation last year of the firm’s YPF unit and its vast holdings of unconventional oil and gas fields, a person with direct knowledge of the preliminary deal said Tuesday. Under terms of the proposal to be considered Wednesday by Repsol’s board, the Spanish company would get the money in Argentine bonds denominated in U.S. dollars. In return, it would drop legal action against Argentina for expropriating Repsol’s controlling stake in YPF in 2012 without payment, said the person, who was not authorized to disclose details and spoke on condition of anonymity. Investors on Tuesday cheered the news, sending Repsol shares up 4.28 percent to close at 19.24 euros ($26.03) in Madrid. News of the deal came late Monday after Repsol executives met in Buenos Aires with government officials from Argentina […]

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Record Asian oil demand is spurring the region’s refineries to charter the most supertankers in a year, driving shipping rates to the highest level since 2010. Traders hired enough carriers in the spot market from owners including Frontline Ltd. (FRO) and Mitsui O.S.K. Lines Ltd. to load 35.9 million metric tons in the four weeks ended Nov. 24, according to data compiled by Bloomberg from broker reports. The shipments, the largest this year, expanded 53 percent since the end of August, during which time a glut of shipping capacity in the Persian Gulf shrank by about the same amount. Asian economies are growing about three times faster than the global average, spurring the International Energy Agency , an adviser to 28 nations, to predict the region’s oil demand will rise to a record this quarter. Earnings from the tankers jumped to $50,801 a day on Nov. 22, a 34-fold […]

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MANILA, Nov. 26 (UPI) — The Pacific region could experience economic losses of as much as 12.7 percent of annual gross domestic product by 2100 as a result of climate change, an Asian Development Bank report warns. The ADB report — “Economics of Climate Change in the Pacific” — focuses on 14 developing Pacific nations: the Cook Islands, Fiji, Kiribati, Republic of the Marshall Islands, the Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu. The bank says most of the countries will see average annual temperatures rise by 3.24 degrees Fahrenheit by 2050. “If the world were to stay on the current fossil-fuel intensive growth model — the business-as-usual scenario — total climate change cost in the Pacific is estimated to reach 12.7 percent of annual gross domestic product equivalent by 2100,” the ADB report, released Tuesday, states. Of the […]

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While the US continues to engage in a delusional energy “debate” about whether we will continue to burn coal and whether natural gas is a panacea, China is struggling to acquire and deploy of energy resources to support its economic growth targets. China has an environment versus growth problem .    Already China is the #1 importer of oil in the world. That‘s right.  China imports more oil than the United States.     The US can hold its energy consumption below GDP growth through increased energy efficiency (technological improvements) and because our economy is more “services based” than China’s.   China on the other hand has to continue to consume more energy, particularly oil. The emerging and growing middle class there wants to buy cars, as is typical when annual GDP per capital hits $10,000-20,000 per year.  With 4X the population of the […]

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LONDON — Oil prices dipped and stocks around the world rose on Monday after the news of an agreement to temporarily freeze Iran’s nuclear program, but few specialists expected any significant change to consumer energy prices, at least in the short term. Under the interim deal brokered between the United States and other world powers with Tehran, little has changed in market fundamentals. Analysts doubted that Iran would be able to increase exports much, if at all, in the six months covered by the deal, because the Washington-led coalition has not lifted its embargo against Iranian oil. Gregg Laskoski, an analyst at GasBuddy.com, a website that tells motorists where to find the least expensive gasoline in the United States and Canada, said the Iran deal “may bring some calm to markets,” but he expressed doubt that it would have a significant impact soon. Even before the announcement Sunday, American […]

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Chinese authorities detained seven people from China Petroleum & Chemical Corp. (386) , the nation’s biggest refiner, after at least 55 died in a pipeline blast. The personnel from Sinopec, as the refiner is known, and two from an economic development zone in China’s eastern Qingdao city were detained by police, the city’s Huangdao district government said yesterday on its official microblog . The explosion and crude oil leak on Nov. 22, the deadliest since at least 2005, adds to a growing toll from industrial accidents that’s building pressure for better safety standards and management. It shines a spotlight on management of state-owned energy companies after the government pledged this month to allow more private investment as part of the biggest reforms since the 1990s. “Someone has to be accountable for what has happened,” said Laban Yu, a Hong Kong-based analyst at Jefferies Group LLC. “Sinopec executives can only […]

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The most interesting message in this year’s World Energy Outlook from the International Energy Agency is also its most disturbing. Over the past decade, the oil and gas industry’s upstream investments have registered an astronomical increase, but these ever higher levels of capital expenditure have yielded ever smaller increases in the global oil supply. Even these have only been made possible by record high oil prices. This should be a reality check for those now hyping a new age of global oil abundance. According to the 2013 WEO, the total world oil supply in 2012 was 87.1m barrels a day, an increase of 11.9mbd over the 75.2mbd produced in 2000. However, less than one-third of this increase was in the form of conventional crude oil, and more than two-thirds was therefore either what the IEA calls unconventional crude (light-tight oil, oil sands, and deep/ultra-deepwater oil) or natural-gas liquids (NGLs). […]

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