energy prices
October 26th, 2007 at 04:41pm
Under Crude oil+ Oil+ energy prices+ peak oil
Human-beings are for their development dependent on their energy reserves. More energy means a more rapidly and sophisticated a society. Energy is everything, literal. The current society depends almost entirely on oil and gas. The industrial revolution was fed by fossile fuels. In former days in the form of coals, nowadays in the form of oil and gas. Almost every aspect of our daily life is made with, or gets energy by, fossil fuels. It stipulates our manner of life, our look on the world, how we live and where we live.
Industries are entirely depending on their energy supplies like oil and gas so suppliers can use our need for energy for political aims by threatening to stop energy supplies. A recent example of this is Russia, which uses gas as a political power against neighbors like Georgia, Ukraine and Belarus.
Too conservative
The volume of the worldwide oil stock reserve is difficult to calculate. Optimists and pessimists continue contradict each other in this. Some countries also benefit by underestimating or over-estimating their oil reserves. Although the world wide oil supply reserves are annually reported in the “Oil and gas Journal“ but these quantity figures are impossible to independently check.. Furthermore it is not possible to tell how much oil will be found in the near and far future. According to some scientists half of the totally valued quantity of oil on earth has been pumped and refined already. According to optimists it still lasts decades before we will reach the point of “peak oil” and then what?
Because of the development of advanced technology oil will be will pumped for quite a while. Even sources which were formerly considered as exhausted can be obtained in the future in a cost-effective way. Up to at the beginning of the next century.
It is certain, that the demand for oil will only continue to increase. New emerging markets and economies, such as China and India, and the increasing world population will ask for more and more energy. If the pessimists are right and we reach the moment of peak oil shortly, the supply of oil will become less every year. The impact is serious, because every aspect of our life is influenced as a result of it. We must reconsider our world energy regime to be not too much dependent of other countries for our energy, on the other side to limit CO2-emissions.
By Oilism.com
October 26th, 2007 at 11:31am
Under Crude oil+ Oil and gas+ Production levels+ Uncategorized+ energy prices
As history demonstrates, energy prices have typically been high and volatile. Energy prices, particularly crude oil and natural gas can fluctuate by more than 60% from year to year. The past year has certainly been no exception to this volatility.
The average oil barrel price for October 2007 climbed by more than 30% in relation to May 2007.Today, crude oil prices hovering around $91 per barrel about 30% higher than one year ago and 5 years ago it hovered around the $20. That is a 450% raise within 5 years!!These are a direct consequence of a highly crude oil supply-demand curve and today’s drop in the US Dollar. Minor changes in supply or demand, even on the order of just a million barrels per day, can significantly impact the price of crude oil or a couple of cents off the US dollar exchange rates triggers non US countries to buy lot’s of barrels. This increasing demand will be followed by Supply concerns primarily arise from:
- Geopolitical instability. Instabilities in OPEC regions diminish production and raise fears about OPEC’s future ability to safeguard global energy needs. In addition, past movements in Nigeria, Bolivia, and Venezuela for local control of oil supplies have added instability to the marketplace couple of months ago. Nowadays the tensions in Turkey and Iran/Iraq play a big role in the sentiment on the oil market.
- OPEC’s hesitancy to increase daily production levels. Some fear that the Middle East fields have peaked, but others believe that OPEC maintains a tight supply to benefit from high prices.
- Crash or drop of the US Dollar to lower levels will impact the demand for oil which can cause a shortage on supplies and reserves.
- Insufficient midstream and downstream infrastructure to deliver increased oil and gas production in a timely manner.
- Natural disasters. Approximately 20% of the Gulf of Mexico’s oil and gas production was offline after Hurricane Katrina’s visit. Since much of this production was marginal, it may never come back online because of cost-prohibitive repairs. Global warming will cause more and more natural disasters in the near future.
Forecast: Oil keeps on Raising
With the continued instability problems in several parts of the world, the near future will likely bring continued high and volatile energy prices. Furthermore, adverse weather conditions caused by global warming and climate changes, experts predict more natural disasters on the magnitude of Katrina over the next several years. This could add several dollars to oil barrel prices. The U.S. Energy Information Administration expects average barrel prices to increase slowely over the next 12 months, yet other groups argue that this statement is too conservative. For example, investment bank Goldman Sachs anticipates a “super spike” in oil prices with potential surges to $105 per barrel. The bank also expects oil prices to remain high through the rest of the decade.
By Oilism.com
October 25th, 2007 at 03:36pm
Under Crude oil+ energy prices
According to a recent publication the oil-producing countries, further OPEC, is becoming more nervous about the rise on Bio-ethanol products, in spite of that the impact is as yet limited for now. The fear of the oil-producing countries OPEC is remarkable. The influence of Bio-ethanol is still very limited, as it happens, – and that remains provisionally this way, according to the international Energy Agency (IEA) in its World Energy report.
The produced quantity of crude oil increases, however, the share of Bio-ethanol fuel amounts in 2030, still no longer than seven percent. The risks according to the Opec is motivated by the split in which the trust finds oneself. In one hand the Oil producers and refiners are asked to produce as much oil as possible to satisfy to the enormous energy question, on the other hand especially the west tries to reduce the dependence of the same OPEC by giving full commitment on green diesel and petrol. Those who must fear most of all for the up rise of bio energy are the poorest people in the world: they see the price of food sharply increasing because for example wheat disappears more and more as fuel in the tank of cars.
By Oilism.com
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