Oil
March 11th, 2009 at 05:53am
Under China Oil+ Crude oil+ OPEC+ Oil+ Oil Price 2009+ Oil Price 2010+ Production levels
OPEC has more reason than ever to cut the oil productions. Will the oil cartel be able the push back oil prices again?
“A price of 75 dollars a barrel is fair for oil producers and consumers. This is said by Saudi Arabia last year, according to Bloomberg. With this in
mind is a further reduction of the oil production by OPEC this week is certainly not unlikely. With over 40% of the total world production is the power of OPEC
very big.
Since the Brent Crude Oil futures on July 11, 2008 set a record oil price of $ 147.50 it got in a free fall. On December 24, 2008 the oil price hit as low as USD36.20, a decrease of 75% in five months. It is therefore not surprising that oil producers benefit of oil production cuts. Since September 2008, the OPEC production is already decrease with 13%. The oil price is now stabilized, the crude oil futures move since early 2009 within a bandwidth of 39 and 52 dollars.
Market focus mainly on oil demand failure
The oil markets focussed in the past few months with more attention to OPEC and the production side. Traders look today way more to the demand side of the oil market. That is not crazy, given the recession in the U.S. The U.S. labor market figures on Friday March 6 to speak for it self. Unemployment rose to 8.1% in February 2009, the highest level in 25 years. Moreover the U.S. lost in the last quarter a small 2 million jobs, the fastest pace since 1939 when analysts began tracking the data. With one quarter of the global oil consumption is the demand from the U.S. very important.
The recession & financial crisis is for sure not limited to the USA only. For example, the World Bank stated that the entire world economy will show shrinkage for the first time since 1945. Proving the demand for oil is closely connected with the growth of world economy. The black gold is indispensable for transport, industry and many other sectors. If economic activity is declining, falling demand for oil is a logical trend you can expect. The International Energy Agency (IEA) are taking into account a decline in demand for oil in 2009 by 1.1% year on year to 84.7 million barrels of crude oil per day, even after a decline in 2008 0.4% 5. Two years of falling demand figures didn’t occurred since 1982/1983, says the IEA.
Where should an oil investor look out for?
The oil price is obviously determined by demand and supply at this moment. If OPEC again decreases the oil production, it can have a big impact on current oil prices. In the last few days we already could notice some upwards movements: the price of oil rose Monday in New York to the highest level in six weken. In the upcoming months, for each oil investor of today it is important to focus on the development of both demand as the supply side of crude oil. This week first – very cautious – Signs of recovery on the demand side were noticed. The U.S. business confidence ISM rose for the second month in a row. While China – the second biggest oil consumer in the world – takes an economic growth in 2009 8% in to account.
On the supply side are the current developments around OPEC of big importancy. Geopolitical tensions in Nigeria, Iran could influence worldwide oil markets. In time, the crisis could trigger higher oil prices says the IEA. The sharp drop in oil prices makes investing in new oil production capacity unattractive and can put the oil supplies in 2009 further under pressure.
By Oilism.com
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
July 17th, 2008 at 11:39am
Under Fuel Oil+ Oil+ Oil business+ Oil price
Today we find ourselves in a very unique position. We are facing unusually high oil hikes. Oil has become so very expensive that people are trying all kinds of extreme measures to lower the price. In fact the hike in price of oil is a bit of a controversial issue. The hike in price has affected every nation; the entire world is trying to find a way out of the soaring prices. The price hike in oil has even started the blame game between several countries. The need for oil has increased in most countries today; we really ought to find an alternative resource.
If you take a look at the last two years, you will realize that the oil prices have steadily increased. They are currently at an all time soaring high price. We may not realize it but increases in oil prices affect the economy of a country in a terrible way. Thanks to the hike in the oil prices, travel expenses have increased. Forget flying being expensive, driving your own car is very expensive. Hike in oil prices effect the regular man besides it being a problem that the government works to solve.
The rise in the oil prices are being analyzed by people all round the world. Many attribute it towards the growing unfriendly relationship between the US and Iran. Because of the dispute between these two nations, prices soar up, especially since Iran happens to be a nation that produces the most number of oil. And ofcourse another important reason for its increase is the fact that today the global demand is way more than the global supply being offered. Many developing and under developed countries are desperate for more oil to fuel their economy and yet somehow the regions producing oil don’t seem to produce enough to go meet everyone’s needs.
Higher oil prices my friend, affects everything. Right from everything produced, transported, food items, and of course your exports. Basically, life as you know it, the cheap way, will seize to exist. Everything you need to buy will increase. Oil prices leads to rise in price of more commodities than you can think of which ultimately makes one have to live a life of more expenses. The toll is seen on the common man. It is the working class that will get affected the most due to soaring high prices. Oil prices will not affect you at the gas pumps; you will find yourself paying the price for it even at your grocery store.
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 28th, 2007 at 03:27pm
Under Oil+ Oil Spill+ Oil and gas
Major oil spills shave occurred in the oil industry since many years and some have had devastating effects on the environment, local climate and habitat of animals. Oil spills are the accidental release of oil in environment due human activity on oil riggs and containerships. This oil cargo can be of different types including crude oil, natural gases, refined petroleum or any other type of petroleum product. Sometimes it is also releases by natural geologic seeps in the sea floors. Most oil spills occurre due to large oil carrying tankers on sea but there have been also cases of oil disasters on land. Like the confrontation in Nigeria with rebels which has led to closing down refinery stations because several oil pipelines were on fire.
Environment studies have proved that effect of oil spill can be more than it is expected to be in some places. Petrochemical products can harm the marine life in the oceans as well as degrade the air quality in the atmosphere. Some variants of oil are highly toxic which can create a huge dent in the ecosystem once they are faced to the open air. The oil is thought to be evaporating quickly once they are opened in air but some types are less volatile and remain for longer period of time in the air. These types gasses are serious threats as they posses longer effect in the ecosystem. Moreover if the oil spill is not cleared and cleaned in short time of period then it mixes up with pebble and sandy beaches and pose danger even to human society living around the sea shores.
Many countries have spent million of dollars in cleaning their sea shores due to the accidental fault of oil tankers. The major oil spills in history are mostly found in middle east countries like in Gulf War oil spill which occurred in Persian Gulf in the year January 23, 1991, Nowruz oil field in Persian Gulf in the year February 1983 and more in recent times. This oil spills effect a large number of area which has to be cleared by a army of people. Many different methods including skimming, Bioremediation, Burning, etc are used to clear the oil spill but that really fails in times when the operation is not started in quick response of oil spill.
Update: Gulf of Mexico oil rig disaster 2010:
Experts have warned that the Gulf of Mexico oil rig disaster caused by BP could develop into one of the worst spills in US history if the well is not sealed quick. Currently there are about 5,000 barrels, or 200,000 gallons, spewing every day into the Gulf of Mexico. This Massive Oil Spill reaches Louisiana Shore any moment depending on wind and stream.
5 Largest oil rig spills
- Gulf War oil spill
Location: Persian Gulf
Date: January 23, 1991
volume spilled: 136,000 – 1,500,000 tonnes
- Ixtoc oil well
Date: June 3, 1979- March 23, 1980
volume spilled 454,000 – 480,000 tonnes
- Atlantic Empress / Aegean Captain
Location: Trinidad and Tobago
Date: July 19, 1979
Volume spilled: 287,000
- Fergana Valley
Location: Uzbekistan
Date: March 2, 1992
Volume spilled: 285,000 tonnes
- Nowruz oil field
Location: Persian Gulf
Date: February 1983
Volume spilled: 260,000 tonnes
By Oilism.com
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