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Article Archive

  • This Week In Energy: Data Pointing To Another Fall In Oil Prices

    Oil prices have stabilized somewhat around the $60 per barrel mark, and over the past few weeks oil has shown less volatility than what we have grown used to in the preceding six or seven months. But another swoon could be just over the horizon. That is because oil producers are starting to run out of storage. As production has soared and global demand has failed to keep up, oil producers have been diverting oil into storage tanks at a remarkable rate since last summer. The latest EIA data shows that weekly inventories jumped by another 7.7 million barrels, with…

  • Oil Prices Tumble As Pace Of Rig Count Decline Slows

    With production and inventories at record levels despite the total collapse in rig counts, all eyes remain on Baker Hughes data for any signal the algos can use to mount a run. The total rig count fell for the 12th week, down 43 to 1267. This 3.3% decline is the slowest drop in 6 weeks and oil prices are sliding on this news. The key level to watch for WTI is $48.24 which moves it into the red for the 8th month in a row. • *U.S. TOTAL RIG COUNT -43 TO 1,267, BAKER HUGHES SAYS• *U.S. OIL RIG COUNT…

  • Paranoia And Purges For Venezuela As Oil Misery Continues

    As the finances of Venezuela continue to deteriorate under the collapse of crude oil prices, the government of President Nicolas Maduro is becoming more paranoid and vindictive. Venezuela derives the vast majority of its export earnings from sending oil overseas. With the largest endowment of crude oil reserves in the world, the oil-driven economy worked well for the late Hugo Chavez: he provided generous support for the poor, and built allies in the western hemisphere by dispensing cash and cheap oil in exchange for political allegiance. But state-owned PDVSA has struggled to keep production up. Rather than using its earnings…

  • How Much Crude Oil Do You Consume On A Daily Basis?

    Oil. The commodity. We know what it’s worth – at least we thought we did – but what does a barrel of the black stuff get you in real life? Before we get theoretical, let’s first consider how much oil you use. If you’re in the United States, that figure is approximately 2.5 gallons of crude oil per day; roughly one barrel every seventeen days; or nearly 22 barrels per year. That’s just your share of US total consumption of course; the true number is harder to discern – minus industrial and non-residential uses, daily consumption drops to about 1.5…

  • OPEC’s Strategy Is Working Claims Saudi Oil Minister

    Saudi Oil Minister Ali al-Naimi, the architect of OPEC’s strategy to regain market share by causing the price of crude oil to plunge, says his plan is working, and data from petroleum research firms seem to back him up. Making his first public comments in two months, al-Naimi told reporters in the southwestern Saudi city of Jazan that the markets have cooled off, and cited Brent crude, the global benchmark, as an example, noting that its price has stabilized at about $60 per barrel. He also pointed to data that inexpensive oil is driving up demand, notably in China and…

  • Bakken Decline Rates Worrying For Drillers

    I have been supplied an Excel spreadsheet of all North Dakota wells back to 2006, thanks to Enno Peters and Dennis Coyne. I only used the data back to 2007 however. This is a wealth of information if we want to know how many wells came on line in a given month, we simply count them. We are given the monthly production data for each month. And since we have the monthly production data we can very easily figure the decline rate of each well, or any group of wells for any month or year. A note on the data.…

  • 2015 Is The Year For Argentinian Shale And For This Small-Cap

    Following an impressive strategic growth plan over the last12 months, Madalena Energy (TSXV: MVN , OTC: MDLNF) is quick off the 2015 starting blocks, leading small-cap exploration and production in Argentina--the next hot bet for shale development—and recently reporting significant increases in reserves that are turning investor heads. Earlier this month, Madalena released an independent report showing a 149% increase in proved reserves and a 155% increase in proved plus probable reserves, driven solely by the Company’s conventional, production-backed reserves. For investors, the real upside here is that not only is the company demonstrating solid growth and progress year-on-year across…

  • Europe Overtakes Asia As LNG’s Hottest Market

    The gravity of liquefied natural gas (LNG) demand shifted westwards over the past year. For several years now, LNG demand – and as a result, the price of LNG – has been the highest in Asia. Japan is responsible for about one-third of total LNG imports worldwide, and China, although a smaller player, is projected to be one of the key drivers of growth for LNG imports. But the Fukushima meltdown forced Japan to scramble for imported energy to replace its shuttered nuclear reactors. It turned to much higher imports of oil, coal, and LNG to make up for the…

  • EU Energy Union Could Start In The North Sea

    Interconnectivity? Check. Lessens dependence on Russia? Check. Fosters renewables growth while addressing climate goals? Check. Norway’s upcoming NordLink accomplishes all of the above, but is it representative of a larger trend in European energy security a la the European Commission’s “energy union”? The short answer is yes, though with some sizeable reservations. On Tuesday, February 24 the European Commission (EC) leaked a 19-page draft blueprint for an “energy union” – a grab bag of policies and proposals designed to transform the 28-member European Union into a more cohesive energy market. Despite its seemingly widespread appeal, the initiative has revealed deep…

  • OPEC Considers Emergency Meeting On Oil Prices

    Many OPEC members say the cartel may have to call an emergency meeting production and prices because of the damage the collapse of oil prices has been doing to their countries’ economies. But the prospects of such a gathering seem remote. Diezani Alison-Madueke, Nigeria’s oil minister who now holds OPEC’s rotating presidency, told the Financial Times, “Almost all OPEC countries, except perhaps the Arab bloc, are very uncomfortable.” This discomfort comes just three months after OPEC’s last meeting, in November, in which, under Saudi pressure, the group decided to ignore the drop in oil prices, as well as the pleas…