Oil industry
February 21st, 2009 at 05:37pm
Under Crude oil+ Future Chain+ Oil Price 2010+ Oil business+ Oil industry+ energy prices
Crude Oil exchange is described as a free market economy because investors are not really sure whether their invested money will get any revenue or not, because of it’s volatile nature. We do not have to mention that the price of barrel of crude was just less than 7 months ago above 130 USD! Some may say that it’s a gamble but it’s also a form of a rich quick scheme when you hit the jackpot on the low levels of today. Oil exchange has this flexibility that no other investment option can offer, as quick as we go up we go down and the other way around. There’s little harm, if you look it risk-wise to start trading oil today and invest some of your savings left to take some long term oil positions.
You decide on how you will use your money when trading in oil related investments, this can be in the form of day trading or as a stored value of oil assets. You can buy big oil company shares as your form of oil investment and will gain profits if the prices of the oil company shares increase in line with the oil price when the recession comes to its end. Otherwise we advice you to trade directly in NYMEX or North sea Crude oil futures.
Even though stock and oil markets have unsure possibilities it also depends on intelligent moves taken by the oil investor himself. This is reflected on how deep the investor really knows oil market, is not really that tough to understand as many people will perceive initially but you need to investigated and do your homework. Internet has a big role in gaining knowledge of the worldwide oil & stockmarkets. On Internet you can find information related to any subject of the crude oil industry, like companies, forecasts and researches.
Moreover, your life as an oil investor will be much easier because of the use of online trading systems. Today’s oil trading process is much easier as compared with earlier system and has various advantages.
Think over today’s situation on the oil markets and reconsider if it is not the perfect time to start building your own oil related share portfolio. Many investment companies also offer oil related mutual funds. A mutual fund diversify your investment among many oil companies and you can earn easily with less risk.
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 06:41pm
Under Crude oil+ OPEC+ Oil+ Oil Theory+ Oil industry+ Oil politics
This is word that has hiding meaning with it which is sometimes coined as the hidden foreign policy of United states that has helped the US dollar to remain the world’ main currency in international trade and in which the oil is priced. It is also sometimes termed as oil currency war. This single most policy of United States have kept US in fore front of many international decisions and made US a world leader for last many decades.
There is a thought that the petrodollar warfare has kept the US dollar as world currency because some main commodities like oil and natural gases is traded in dollar and if the denomination of trading oil and gases is moved to any other currency like pound then most countries will start selling their dollar reserves bringing a quick shift in the US dollar price. Once the price of dollar goes down it will directly hurt the US economy bringing a rise in inflation and many other economic determinants. US administration officials are scared that if the denomination of oil is changed then that’s going to literally damage the position of US in international politics. This fear of loosing status was supposed to be main reason behind the US invasion in Iraq since Iraqi administration had changed the currency to trade oil from dollar to Euro in late 2000 but that was later again revoked in 2003 after the invasion.
The oil price and US dollar seem to be inversely proportional in times. Once the oil prices start rising the dollar goes down as when dollar strengthens it lowers the price of oil and viceversa. SO that makes United States in position which can determine the role of oil in its favor by using undermined policies. The physical location of major oil reserves too has determining factor in this industry so United States always has tries to keep a hold on currency that the whole industry is trading with.
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
October 25th, 2007 at 04:46pm
Under Crude oil+ Middle East+ Oil+ Oil industry
The question to the continously oil price increase and the speed by what this happens coincides closely with the economic growth. The oil industry has appeared to be able to discover new reserves and as a result, the stock level kept in place, in spite of the increased demand for crude oil during the previous years. Though there are reasons enough for to concern.
The oil industry has already indicated that she is no longer able to discover new reserves and get these new plants fast enough in production to pump up the crude oil to keep the speed as before.
The time in which new reserves could become against relatively restricted production costs are definitely send to the past.
New reserves are more and more discovered at difficult places and the production goes accompanied by technological problems which cost very much!
It is known that the middle of east contains the largest oil reserves of the world. In the current production speed the Middle East region can still live 90 years of these reserves, with these figures she stands way above the other regions. On a good 2nd place comes forward South/Central America that still has 40 years to go on its oil reserves. Africa comes on the third place where a country as Nigeria has the largest reserve. Then Europe comes on a fourth place if Russia is also counted, that has an important and big reserve. On the 5th place the region Asia-Pacific and on the last place North America.
The official oil reserves have grown in the period from 1995 up to 2007 with 17%, whereas the production in the same period has grown by 19%.
Evolution
At this moment there is still no shortage of oil although that threat arises in the future. Even without an oil shortage, crude oil increased strongly to a top of more than 90 dollars in September 2007.
Now the oil reserve is no longer increasing and in the future gradually reduces, it can be expected that the price of crude oil will become more volatile. The peak oil prices will get stable on higher levels. Beside the increasing shortage for oil the delivery of additional oil reserves will considerably more precious than in the past. Countries such as Saudi Arabia, Iran and Iraq which has the largest reserves, can produce against relatively low costs and have sufficient surplus to export oil.
Due the strong economic growth of the last years and consequently strong demand increase for finished refined oil products, the refineries occupancy has been very high last years. It costs a lot of time to develop an oil refinery, getting a license and building takes years. This resulted in enormous profits for the refineries. A situation which changes if the price of crude oil (temporarily) decreases by a delay in the economic growth. Especially if that delay takes place in countries 
which have a large oil usage, such as the United States and China.
Supply and demand
The Middle East is with 19.821 million barrels by far the largest exporter of crude oil and the major part of it goes direction to the Far East. Japan takes 4.269 million barrels per day, China 1.360 million barrels and the other countries in that region are together well for 7.466 million barrels per day. The former Soviet Union is the second largest exporter with 7.076 million barrels per day. The European countries are grateful consumers with 5.811 million barrels per day.
The region North-America imports 9.668 barrels per day. Canada and Mexico are exporters, whereas the United States if individual country globally largest importers are with 13.525 – 1.129 = 12.396 million barrels per day.
Conclusion
Last decades the oil industry has proven to be able to keep the reserve, in spite of the increased usage, at the same levels by discovering new oil sites. The chance that she succeeds the same job in the coming decades is much smaller; moreover the costs of winning oil from new reserves will strongly increase. By the decrease in life span of the worldwide oil reserve the price of crude oil will tend higher for the upcoming years, where considerable fluctuations can appear. If you are a commodity trader, be aware!
The Middle East has the largest oil reserve as a result of which they will be to provide the world longest with crude oil. The export of crude oil aims mainly for the Far East, which makes the rapidly growing countries from that region dependent to satisfy to their strongly increasing need for crude oil. By the increasing shortage of oil, the extremism and the many conflicts can cause geopolitical tensions in the rest of the world
By Oilism.com