Middle East
February 20th, 2009 at 05:44pm
Under China Oil+ Middle East+ Oil+ Oil Price 2010+ Oil politics+ Production levels
From next year a lack of oil arise as the world economy recovers from the current deep recession.
This is said by the chief executive of the International Energy Agency (IEA) Nobuo Tanaka, he states that oil producers are investing too little in new projects with current market circumstances.
”The demand for oil is very low because of the extremely poor economic conditions. But if the recovery quick, likely first signals occur after 2010, we face a serious supply problem, if the investments do not increase’’said Tanaka.
Oil Projects
The members of oil cartel OPEC said earlier this month that they are disappointed, because of demand for oil thirty-five of all new oil projects are set on the long term.
Tanaka expects oil demand will grow next year by 1 percent, thanks to the recovery of growth in emerging economies like China and India. This year, the need for oil by the global recession is likely(for sure) lower than a year earlier.
Production
The chief executive of French oil group Total, Christophe De Margerie, warned Monday in the British newspaper Financial Times that oil producers already are near their production levels. Worldwide, the crude oil production is never higher than 89 million barrels per day. These are four million barrels per day less than he previously thought. The current demand for oil is about 84 million barrels per day. The IEA expects that the long term oil need for 2030 will certainly have grown to 100 million barrels per day.
Tension
According to De Margerie, the companies limited by the high cost of new projects, for example, in Canada and the continued political tensions in Iran and Iraq.
The current low oil revenues, according to him not only at the expense of new projects. They shall also ensure that existing projects are more likely to be stopped because it is too expensive they are longer in operation.
By Oilism.com
January 21st, 2009 at 05:31am
Under China Oil+ Middle East+ OPEC+ Oil Price 2009+ Oil and gas+ Oil politics+ Russian Oil & Gas
By signing the gas agreement between Russia and Ukraine the oil price fell back sharply. The price of a barrel of U.S. light crude oil now hovers around 34 dollars, a decrease of over 7 percent with earlier this week.
In December 2008, crude oil prices fell for the first time since the summer of 2004 under the 40 dollar per barrel barrier. In July 2008, oil prices showed a record of more than 147 dollars a barrel.
The oil price now strongly react on the developments in the Middle East and the gas conflict between Russia and Ukraine. According to the Ukrainian Prime Minister Julia Timosjenko Russian gas will continue to flow to Ukraine and other European customers as from yesterday.
Credit Crisis & Oil demand
The oil price falls due a weakening oil demand. After 25 years of growth, the demand for oil in 2008 decreased by 0.3 percent. The International Energy Agency (IEA) has estimated that the worldwide oil demand in 2009 will fall further, probably by 0.6 percent.
For 2009, the IEA expects we will see a bottom in the oil demand, lowering with 940,000 barrels of crude oil per day to 85.3 million in total. “It’s the biggest change in our estimate over the last couple of years,” said David Fyfe of the IEA chief marketing officer.
In earlier reports, the institute published a growth for 2009 in oil demand after the losses of 2008, this mainly based upon the increasing demand of the emerging economies. But, these estimates are now showing that the Chinese oil demand will grow with just 90,000 barrels a day, which is the lowest increase in eight years time.
By Oilism.com
January 1st, 2008 at 03:29pm
Under Middle East+ Oil+ Oil company+ Oil industry
As you may know, oil & energy companies are becoming some of the richest companies in the world, even toping larger companies like Microsoft and Apple. Just last year, ExxonMobile, America’s largest oil company, toped at 195 billion dollars. Second in the US ranking was the ChevronTexaco with over 130 billion dollars, but spent over 6 billion that same year.
The absolute top oil company of the world is Saudi Aramco which is a state owned national oil company for Saudi Arabia which is headquartered in Dhahran. Saudi Aramco owns and operates within the world’s largest hydrocarbon network.
Coming up to the second in row of Worlds Largest Oil Companies is Petroleos Mexicanos (or PEMEX), which distributed just over 1270 million barrels of crude oil in 1998. PEMEX is the stat-owned, nationalized petroleum company for Mexico, and is located in Mexico City. PEMEX made over 98 billion dollars in 2006 and employees over 138,000 people.
Even more interesting is number 5 for world distribution which is a company called Petroleos de Venezuela, which is located in Caracas, Venezuela, and distributed over 1200 million barrels in 2006. This oil company is 100% ownership of Hugo Chavez and toped its revenue at over 100 billion dollars in 2006, and is expected to release even more profit when the yearly figures for 2007 come in. This company was founded in 1975, and ever since has had record amounts for producing and refining crude oil, revenue income, and company popularity – imago.
Energy Intelligence produces every year the complete Top 50 of Oil companies worldwide. The past annual reports are available on the EI website but for the race of World’s Next Top Oil Company the following key findings are already published;
- Saudi Aramco holds on the poll position for 2008 and leaves the oil competition way behind. Their ongoing investment in both downstream as upstream oil and gas producing/refining is paying them out in the first place of the Top 50 2007 Oil Companies.
- ConocoPhillips makes top ten debut; Mexico’s Pemex drops out of the top ten
- For the first time in years, Iran’s NIOC enters the top 10, helped by the ascent of ConocoPhillips and its acquisition of Burlington Resources, which moved it ahead of Chevron and Total.
- Russia’s Novatek enters the Top 50 on position 49. These rankings are based on rapid increases in both their oil and gas supplies and oil output. Japanese Inpex benefits from its merger with Teikoku Oil.
By Oilism.com
December 23rd, 2007 at 06:33pm
Under China Oil+ Crude oil+ Historical oil prices+ Middle East+ OPEC+ Oil+ Oil politics+ Oil price+ Production levels
The price of oil was well low at $25/barrel in late 2003 but jumped to double at whooping $60/barrel in the mid 2005. There was an uncontrolled change in the price of oil in most of times since 2005 to 2006 with some high and downs but settled at around $50-$60/barel in the early 2007. But this was not enough so it raised more above the price of $92/barrel in late 207 and ended up at about $99.29 in NYMEX futures in November end of 2007.
This clearly shows that oil prices has been increasing by passing years and the price tag of $100/’ barrel is clear to cross in the year 2008. Perhaps the price may increase above that if there are political conflicts in Middle East or any more OPEC production cuts. This uncertainty in the oil prices shows the indication of inflation of 1980 which was led to an economic recession. There are many philosophies that has attributed that US economic and political factors like UR-Iran conflict, North Korea Missile Launch, Israel- Lebanon crisis and decreasing US oil reserves are some determine factors of international oil prices.
There are many reasons to decrease in supply of oil that is main factor being increasing oil prices. The demands and supply policy of economics makes it true as if when ever the oil supplying countries like Iran and Saudi Arabia cut down the oil supplies then that is going to bring a surge in price in international market. The conflict in Middle East is the major reason behind this and even outside Middles East countries like Venezuela and other African countries producing oil have been facing local unrest like strikes and civil wars that has forced for decrease in oil supplies. Moreover the increasing terrorism by certain faction of people in oil rich countries has added to this price increase of oil.
A recent survey shows that the total supply of oil in recent times is 83 million barrel per day which is more than any other time in the history but the speculation that the a major Peak oil situation is nearing and a reducing oil supply is just in the near future has created a panic situation in the international market. Few secondary factors like OPEC supply cut and decreased value of dollar is too important reason for sudden increase in oil prices.
By Oilism.com
December 15th, 2007 at 06:29pm
Under China Oil+ Crude oil+ Middle East+ Oil industry+ Production levels
There have take place several global energy crisis’s that affected the oil price. For example in 1973 a large selection of the OPEC nations forced an oil export embargo. This oil embargo was organized as a protest against the Western help for Israel during the Yom Kippur War. In two years time crude oil prices rose more than 400% from $3.00 to $12.17.
In 1979 the worldwide oil market was focused on the Iranian revolution causing an another future energy drama followed by a 35% peak in crude oil prices only ten years later caused by the Gulf War. Around the millennium year 2000, crude oil prices got a boost by high fuel taxes and mass protests in the United Kingdom organized against the UK oil industry. From 2003 up till now late in 2007, crude oil futures broke record after record as the United Stated was involved in the Iraq War. The increasing demand (hunger/addiction) for crude oil in China, India, Russia and the United States caused the upward pressure on oil prices. Additionally the recent fall of the dollar made crude oil cheap for countries trading in an other currency. The dollar drop helped the crude oil price above the $95, late December 2007.
Crude oil is the #1 resource in the worldwide resource usage. Oil is consumed in significant large quantities by us people. Although you maybe think you as individual you don’t but you do! Drive your own vehicle? Do you live in a house or do you frequently use public transportation like a bus? This all means you do rely on crude oil. The crude oil prices are volatile of which the cause can be found in the supply and demand curve for crude oil. Finally sentiment and expectations playing a major role on oil markets. The latest global warming concern resulted in a downwards adjustment of crude oil demand forecast based on warmer winters.
By Oilism.com
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