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Energy

  • Falklands Present A Unique Opportunity To Smaller Players

    IntroductionArgentina has started to make a name for itself in the oil and gas world due to the vast reserves located in the Vaca Muerta shale region. If successfully developed, Argentina could become the first major shale producer outside of North America. But just off the coast of Argentina in the Atlantic Ocean is another budding oil and gas region. Although it is not Argentine territory – this is a very sore subject – this area could also be another source of new oil and gas production. The Falklands (or as Argentina calls them, Las Malvinas) are a group of…

  • Investor Sentiment Could Be Shifting

    A drop in U.S. crude oil production helped drive futures prices higher this week. There is even evidence of renewed hedging in the deferred futures contracts that suggest the bottom has been made. The slowdown in U.S. crude oil production is the key to sustaining the rally since excessive production was the driving force behind the tremendous price slide. The recent inventory figures suggest that cutbacks in oil production and oil exploration may finally be taking hold. U.S. production fell for the second time in three weeks and refinery runs are spiking higher indicating increased demand. Market participants seem to…

  • This Week In Energy: Oil Markets May Finally Be Adjusting

    The oil price rally is finally underway. This week saw both WTI and Brent hit their highest levels in all of 2015 thus far. WTI closed on April 16 above $56 per barrel and Brent extended its lead into the $60s, settling above $63 per barrel. Through all the fits and starts over the past few months, the gains this time around appear to be more justified. That is because the markets are finally adjusting. U.S. oil production is poised to post a monthly decline of 57,000 barrels per day in May as the main shale regions in North Dakota…

  • The Latest Media Attempts To Suppress Oil Prices

    It started with the Iranian supply overhang and has grown louder by the day in the media. While we were all supposed to be cowering in fear at the 1MB/D that would be coming from Iran any day, it emerged instead that not only is the deal in doubt, as the only real agreement was to agree to say there was an agreement, but any such additional supply won’t occur imminently. Far from it. That sanctions will only be lifted through intensive verification is now the reality and this process will take time. And even that isn’t fully agreed upon…

  • These Major Players Could Make Or Break The EV Market

    For decades, drivers have wistfully dreamed of weaning themselves from using environmentally unfriendly and unpredictably priced gasoline. Like most dreams, this appeared to be unrealistic and unlikely to transpire in the real world. However, recent developments in electric vehicles (EVs) have the potential to make these cars affordable to regular individuals, cutting back on gasoline consumption and the consequent air pollution associated with this form of energy use. EV Manufacturer Tesla Motors, headed by PayPal co-founder Elon Musk, shipped more than 10,000 vehicles in the first quarter of 2015. This represents an increase of 55 percent from last year's first…

  • Is Saudi Arabia Setting The World Up For Major Oil Price Spike?

    In order to maintain a grip on market share by pushing U.S. shale producers out of the market, Saudi Arabia (and OPEC) is willing to use up its spare capacity. That could lead to a price spike. Saudi Arabia produced 10.3 million barrels per day in the month of March, a 658,000 barrel-per-day increase over the previous month. That is the highest level of production in three decades for the leading OPEC member. On top of the Saudi increase, Iraq boosted output by 556,000 barrels per day, and Libya succeeded in bringing 183,000 barrels per day back online. OPEC is…

  • The Inconvenient Truth About A Green Revolution

     “Green energy is the future!” “Green energy will create tens of thousands of new jobs!” Statements like these have become the new mantra for green energy advocates even as fossil fuel emissions have fallen dramatically thanks at least in part to the rise of natural gas. Fossil fuel emissions today are roughly 10% lower than they were a decade ago in the United States according to the EPA. Combined with the precipitous decline in oil prices, green energy generation has become less economically appealing and less environmentally necessary. This has led to increased emphasis on the employment aspects of green…

  • Libyan Civil War Could Drive Away Energy Investment

    One thing that keeps uniting the warring factions in the spilling-out-of-control civil war in Libya is crude oil revenues. Despite falling from a high of 1.7 mbd shortly before the toppling of Colonel Qadaffi, oil production hovers around 600,000 bpd today, which is still enough to pay for the subsidies and salaries of workers. Surprisingly, the National Oil Company (NOC), selling the crude abroad mostly to Italy, Spain and France, and the central bank, where the oil revenue is deposited, have been able to preserve their independence and continue to execute long-term oil contracts and transferring salaries and subsidies to…

  • Africa Could Use Fossil Fuel Wealth For Renewable Future

    When oil prices plunged in the 90s, Africa was a major beneficiary. Yes, exporters like Nigeria and Angola suffered as their revenues dropped, but overall the continent benefited. Back then, oil majors, challenged by declining oil prices, the rise of the national oil companies (NOCs), and hemmed in by investor demand and high costs/risks of exploration, consolidated through mergers and acquisitions and focused on proven basins. Independents, shut out of established basins, recruited good talent from the majors, formed alliances with other juniors as necessary, and pivoted to new formations and new countries. Some landed in Africa’s frontier, where barriers…

  • Can Electric Vehicles Take The Private Transportation Crown?

    Of late, there has been a lot of buzz related to electric vehicles. Volatility in oil, and thus fuel prices has the world in search of an alternative that can reduce the consumption of gasoline, motor oil and other fossil fuels. An electric vehicle (EV) is one such alternative that is muscling in on the market. So what can EVs offer to compete with conventional vehicles? An electric vehicle is powered by one or more electric motors instead of a conventional internal combustion engine. Based on the source and method of electricity production, EVs are divided into: a. EVs requiring…