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Energy / Crude Oil

Articles and research looking into crude oil, whether it be exploration and refining - crude oil price movements or new crude oil extraction techniques. we have it covered here. Look at our energy section for more fossil fuel coverage.

  • Winners And Losers Of $80 Oil, Part IV

    For the last few columns on winners and losers of $80 oil, I want to try and construct an investment strategy we can use for the duration of what I’m calling the $80 oil winter. There are definitely some positional moves that should be made in portfolios right now as stock indexes streak higher while most energy shares lag. We’ve seen capital expenditure cuts come from the big and small in energy, from Shell (RDS.A) to Conoco-Philips (COP) to Continental Resources (CLR) and Rosetta Resources (ROSE) to Halcon (HK). And despite the rosy spin that most of these companies have…

  • Mid-Sized Oil Companies Poised for Growth in West Africa

    Mid-Sized Oil Companies Poised for Growth in West Africa Introduction In 2013, the continent of Africa produced 9.3 million barrels per day (bpd), or about 10% of global supplies. Africa’s oil production is concentrated in a relatively few number of countries, namely, Nigeria (2.3 million bpd); Angola (1.8 million bpd); Algeria (1.7 million bpd); and Libya (production fluctuated, but averaged 0.98 million bpd). Those four countries account for somewhere between two-thirds and three-quarters of the continent’s oil output. Nevertheless, there are other countries that are starting to make waves in the oil sector. Many of them are located in West…

  • The US Shale Breakeven Price Debate

    My favorite quote by H.L. Mencken is ‘a cynic is a man who, when he smells flowers, looks around for a coffin‘. A bit morose, I know, but this appeals to the contrarian in me. My second favorite is überly-applicable to US shale oil break-evens: ‘For every complex problem there is an answer that is clear, simple, and wrong‘. For there is no lack of estimates flying around as to the price level at which US shale oil production could be curtailed. The problem is, they all appear to be different. The debate was ignited by OPEC, after comments from…

  • 5 Reasons The Halliburton-Baker Hughes Deal Is Poisoned

    Halliburton’s takeover of Baker Hughes is setting out to be the oil and gas merger of the year. One of the largest such deals in years, it has not, however, met with unanimous approval. From antitrust concerns to management frictions and negative market forces, this has not been a smooth ride. And with a $3.5 billion break-up fee promised to Baker Hughes by Halliburton should the merger fall through, failure would come at a hefty price. Here are five reasons why the deal might still capsize. 1. Worldwide Regulatory Objections Halliburton and Baker Hughes have not been model corporate citizens…

  • Gulf Of Mexico Deepwater Reserves May Have Been Overestimated

    BOEM and BSEE have published in 2014 the GOM oil & gas reserves at end 2010 few months ago and at end 2011 lately. The big change is that they now report proved and probable reserves = 2P (in contrary to SEC rules for operators reporting at the US Stock Exchange, forbidding the reporting of probable reserves), when before they reported only proved reserves = 1P.They argue:In order to more closely align BOEM GOM reserves definitions with the Petroleum Resources Management System definitions (SPE/AAPG/WPC/SPEE 2007), this report clarifies that Proved Reserves in this and previous reports are Proved plus Probable…

  • Iran Negotiations, OPEC Meeting Loom For Oil Markets

    As November draws to a close, there are two major events that could profoundly change the oil markets. With the clock ticking, the 5 permanent members of the UN Security Council plus Germany (P5 plus 1) are negotiating down to the wire with Iran over its nuclear program. The two sides have made substantial progress, but some difficult issues remain unresolved ahead of the November 24 deadline. “We’re very keen to try to get to a deal, but not a deal at any price,” U.K. Foreign Secretary Philip Hammond said on November 17. “There will have to be very significant…

  • Local Policies Set Back East Africa Oil And Gas Projects

    East Africa is set to emerge as a global supplier of oil and gas within the next decade due to the recent major oil and gas discoveries in Mozambique, Tanzania, Kenya and Uganda. Uganda and Kenya alone are estimated to hold 4 billion barrels of crude oil while Tanzania and Mozambique claim 200 trillion cubic feet of natural gas. With the promise of unprecedented petro-revenues possible, host governments are working on bold, detailed, and comprehensive local content policies as they eye the next phase: production.These policies, though intended to boost the economic well-being of the local population and indigenous enterprises,…

  • Kurdistan And Baghdad Make Interim Oil Deal

    Kurdistan and the Iraqi central government have reached an important agreement over oil. Although the deal is only an interim agreement, leaving larger issues unresolved, the two sides forged a short-term compromise. The accord calls for the payment of $500 million from Baghdad to the Kurdish Regional Government (KRG). In return, the Kurds will turnover around half of their daily oil production – 150,000 barrels of oil per day. The two sides have been at an impasse since the beginning of the year. The KRG began exporting oil through Turkey without the approval from the central government in Baghdad. Under…

  • Kazakhstan Stuck Between Falling Exchange Rates And Oil Prices

    How will Kazakhstan’s economy react to the double threat of the falling ruble exchange rates and falling oil prices? Kazakhstan’s growth rate since 2010 has been above 6%, but current forecasts are far less optimistic. Kazakhstan is a close ally of sanctions-hit Russia and a member of the Eurasian Economic Union (EEU), a supranational organisation furthered by the Kremlin and founded in Astana last May by Russia, Belarus and Kazakhstan. Kazakhstan’s political and economic proximity to Russia might become a liability in consideration of the latter’s economic slowdown and the constant fall of the Russian ruble’s exchange rate. In addition,…

  • US Shale Winners And Losers – Part Three

    I think that many people are misreading the purpose of this series on $80 oil winners and losers. Most are looking at the most superficial message; as I mention specific companies who run into spend difficulties in a depressed oil environment, they imagine that I’m bashing the companies and telling investors to stay away. Nothing could be further from the truth. We’ve seen forward-looking CEO’s report this quarter on how lowered margins will trim projected Capex. We’ve heard from companies as well-financed as Hess (HES), which announced an $800m reduction, Conoco Philips (COP) and Rose Resources (ROSE) and particularly Continental…