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Insider Secrets

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Energy / Energy-General

OIlprice.com's Energy section focuses on all energy related topics that can't be easily classified in our other categories. Topics covered are fossil fuel energy, solar energy, wind energy and many other types of energy sources.

  • Global Economic Fears Cast Long Dark Shadow On Oil Price Rebound

    After bouncing around, oil prices finished off the week with just a bit less volatility than when it started the week. WTI stayed at around $46 per barrel as of midday on September 4, with Brent holding at $50 per barrel. Aside from supply and demand fundamentals in the oil markets, central bank policymaking is another major factor determining the trajectory of oil prices. The European Central Bank hinted that it might consider more monetary stimulus to help the stagnant European economy. Oil prices rose on the news. The markets, however, are waiting on a much more significant announcement from…

  • This Is Why The Saudis Are Unlikely To Accept Any Production Cutback

    ‘Clack! cla-cla clack-clack clack-clack CLACK!!’ (today’s fanfare for Nonfarm Friday was played on football helmets to celebrate the start of college football season). It is the first Friday in September, which means we see official US employment data, aka nonfarm payrolls. Today’s report has showed 173,000 jobs were created in August, which was less than the expected 220,000, but has been offset by a drop in the unemployment rate to 5.1%. Given the market response, it believes this report is good enough to usher in an interest rate hike later in the month….and crude is heading lower. Elsewhere in the…

  • EIA On Board With Lifting U.S. Crude Export Ban

    A new report from the Energy Information Administration adds more weight to the notion that crude oil exports from the U.S. would not damage the economy. The EIA studied the prospect of oil exports in response to questions from Congress, and it builds on several prior reports completed by the agency over the past year and a half. The report is full of caveats and other drawbacks, but the headline takeaway could fuel political momentum to remove the export ban. According to the results, the EIA believes that if U.S. oil production remains below 10.6 million barrels per day through…

  • Could Waste To Energy Play A Key Role In U.S. Manufacturing?

    The waste-to-energy business has been steadily growing for a decade now, but recently BMW unveiled a new innovation in the industry. The car manufacturer powered forklifts at its car manufacturing facility in South Carolina with fuel cells produced from on-site biomethane gas from a nearby landfill. The point of the project was to demonstrate that using current technology, hydrogen of sufficient purity for use in fuel cells could be recovered from landfill gases. The Department of Energy is a big backer of the project as it offers several solutions to existing problems. First, by using fuel cells rather than conventional…

  • Russian Economy In Dire Straits As Chinese Demand For Oil & Gas Slows

    As opposed to the usual free-form structure, let’s do some painting by numbers to color in the backdrop for today’s market currents. Henceforth, five observations ahoy: 1) There is an interesting piece out this morning addressing the dichotomy seen within US shale producers, as some chose to hedge fairly aggressively in Q2, while some chose not to at all. While a similar volume of oil was hedged by the 30 largest publicly-listed producers at the end of Q2 as there was in Q1, 366 million barrels, some simply missed the opportunity to hedge at higher prices, and are less inclined…

  • Venezuela Delaying The Inevitable With $5 Billion From China

    Venezuela, a country in economic crisis because of the dramatic fall in oil prices, is seeking additional financial help from China this week. Venezuela is overwhelmingly dependent on oil for its economy, and the country’s budget has a breakeven price of well over $100 per barrel. In other words, the government had fiscal pressures even before the collapse of oil prices. With oil down around $46 per barrel, it is facing a veritable economic and financial crisis. Related: West Texas Fracker Uses Toilet Water To Cut Cost In the past, the government has been able to paper over its budget problems…

  • Financial Sector To Cut Credit Supply Lines For Oil And Gas Industry

    More U.S. oil and gas companies could come under financial distress in the coming months as crucial hedging protection begins to expire. Many companies had locked in high prices for their oil sales last year, allowing them a degree of protection as oil prices collapsed precipitously over the second half of 2014. Few, if any, hedged all of their production though, so revenues declined along with the oil price. Still, with some protection, the vast majority of companies (aside from a tragic handful) have not missed debt payments and have stayed out of bankruptcy. That could become an increasingly tricky…

  • How Brazil Can Rebound From The Massive Corruption Scandal

    As Brazil officially enters recession it appears that the nation’s annus horribilis is far from over. Corruption investigations have reached deep into Brazil’s energy sector and high-profile casualties are piling up. Moreover, there are fears that the recession could deepen as large energy and infrastructure projects are put on hold. Still there may be a silver lining for Brazil. A clean up of politics and business - and a culture change at national oil company Petrobras - is just what the country needs. A less corrupt Brazil could bring new investment and rejuvenate the flagging economy. But it will take…

  • West Texas Fracker Uses Toilet Water To Cut Cost

    It is no secret that fracking companies across the U.S. have been turning over every rock in the supply chain looking for ways to cut costs and improve efficiency. That’s what the business requires in a downturn. But now Pioneer Natural Resources seems to be going a step further in the name of price cuts and efficiency. The firm is finding an efficient, if somewhat unconventional, source of water for use in its fracking operations – the neighbors’ toilets. Pioneer recently signed an 11-year, $117 million deal with the city of Odessa, Texas giving Pioneer the rights to treated sewage…

  • Oil Prices Might Dip Over This Bearish News

    Once again, the API has put the cat among the pigeons ahead of the weekly EIA inventory report. Prices had already spent yesterday getting stomped on all day, before the API released its report, revealing a surprise 7.6 million barrel build versus the expectation for a minor 0.8 mb draw. This was the largest build since April (think: refinery maintenance), and was a mirror image of last week’s whopping 7.3 mb draw. With last week’s EIA report yielding a significant draw of 5.5 mb, it appears we may see a correspondingly significant build this morning.API Weekly Crude Inventories (source: investing.com)…

Martin tiller