Category: ‘ Energy Supply ’

 

OPEC’s Price Target

The price of oil continued its steady upward climb yesterday as OPEC member nations decided that changes to their output ceiling would not be needed this year.  NYMEX crude futures are trading at over $82 per barrel this morning....

Will Natural Gas Really Profit from the Death of U.S. Coal?

Today, in its Energy Source blog, the Financial Times looked at the possibility of a broad switch from coal plants to natural gas power plants.  It cites Bernstein Research as predicting that this shift will come despite uncertai...

More Uncertainty Affects Nigeria Outlook

The Financial Times reported this week that the outgoing Africa chief of Royal Dutch Shell issued a stinging public criticism of the Nigerian government over proposed legislation that could raise royalties from 1-2 percent to more...

New Report Adds Fodder to Peak Oil Debate

Since the 1950s, when M. King Hubbert correctly predicted a 1970s peak in U.S. oil production, the “peak oil” debate has roiled industry and policy groups as different stakeholders try to prove that either we are rapidly runni...

Boosting biofuels; bothering enviros

Steven Mufson has a good piece in today's WaPo (http://www.washingtonpost.com/wp-dyn/content/article/2010/02/03/AR2010020303804.html?sub=AR) that nicely summarizes the policy debate on mandates for increased biofuels use in the tr...

A Nuclear Renaissance

Later today, we expect to learn that the President’s FY 2011 budget will include $54 billion in loan guarantees for the construction of new nuclear power plants. This is a critical step forward to the revitalization of the nucle...

Common Sense Required in Kazakhstan Dispute

The Financial Times reported yesterday that Kazakhstan is threatening to extract higher taxes from western oil majors.  Contracts on the country’s three largest oil projects (led by ChevronTexaco, BG/Eni and Eni respectively) w...

Oil Prices: Speculation vs. Fundamentals

Last week this blog pointed out the current oil price conundrum – extremely high spare capacity of upwards of 4 million barrels per day (mmbd) coinciding with high oil prices. Speculation or rebounding demand? At yesterday’...

Is Oil Overvalued?

This morning WTI crude traded at above $80 per barrel.  A year ago they traded closer to $40 per barrel.  The OECD oil demand projection is set to fall by 4.3% (-2.0 mb/d) year-on-year in 2009 and remain flat in 2010.  Notably,...

Domestic Oil Consumption in the Middle East may put Pressure on Export Capacity

While oil prices hover around $80 a barrel, in Saudi Arabia you can buy a barrel – for domestic use – for $5. The subsidy might not seem so unreasonable in the current climate, when Saudi and other OPEC members find themsel...