Oil and gas
December 15th, 2007 at 03:20pm
Under China Oil+ Middle East+ Oil and gas+ Oil company+ Oil fields
The Iranian minister of oil Gholam Hossein Nozari told the press during a press conference a contract had been closed with the Chinese Oil company Sinopec for the development of the Iranian oil field Yadavaran.
The Chinese oil company Sinopec invests over two billion dollar for the development of the Iranian oil field Yadavaran.
China is already consumer of Iranian crude oil and gas. It is however for the first time that a Chinese joint venture will develop an Iranian oil field. The signatures placed on the contracts is a sign that China is not really impressed by the American, European and Israeli attempts to isolate Iran and all tensions that comes with it.
Fact is that the contract, about which was negotiated for a long time, was signed immediately after the American information services have came with its conclusion that Iran in 2003, stopped with the development of nuclear energy. Adoptive must become that the managers of Sinopec do not expect that the sanctions will further be tightened up against Iran within a short period of time. Peking has already made clear to be against any kind of sanctions against Iran.
11% of Chinese crude oil import comes from Iran and that will increase during the duration of this contract. According to last estimates the Yadaravan field contains 3.2 billion barrels of crude oil or black gold! The intention is that Sinopec will eventual pump up 185,000 barrels per day from these oil sources. A month earlier
Chinese oil ministers already visited the Iranian president Ahmedinejad and talked about more coorperation between China and Iran in the field crude oil refinery and general energy winning. It not only about crude oil but also concerns a new gas contract.
By Oilism.com
November 25th, 2007 at 06:48pm
Under Crude oil+ Middle East+ Oil and gas+ Production levels
The price for a barrel crude oil has approached the 100 US dollar barrier.
During the electronic trade in Asia the barrier of 99 dollars was broken and a new record of 99.29 dollar was reached. Afterwards the price of crude oil fell something, but a poll position was sent for monday trade. Experts call the price increase of this moment exaggerated.
The increasing oil price coincides at this moment especially with the rate of the dollar, the currency in which crude oil is traded. The US dollar has strongly decreased the last periode. Check Dollar Drops for the latest USD currency exchange rates. Some analysts think however that the price increase of oil does not weights the decrease of the American currency.
Therby the price increase of crude oil coincides with an increasing demand for oil now the winter knocks on the door for Christmas. Weather analist expect harsh weather in the east upcoming winter. During last weeks OPEC meeting the decision was to increase the oil production capacity.
On this news the Januari future for a barrel crude oil closed Friday on the New York Mercantile Exchange 89 dollar pennies higher on $98,18. The previous record, of last Tuesday, was set on $98,03.
If we have a good combination of a further drop in US the dollar, geopolitical news and a considerable decline of the oil stocks, then we can hit the $100 for sure 100%, thus Jim Ritterbusch, president of Ritterbusch and Associates, in the United States.
By 0dmin
October 26th, 2007 at 11:31am
Under Crude oil+ Historical oil prices+ 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
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