• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 6 days America should go after China but it should be done in a wise way.
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 4 hours Even Shell Agrees with Climate Change!
  • 2 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 12 days Does Toyota Know Something That We Don’t?
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Stuart Burns

Stuart Burns

Stuart is a writer for MetalMiner who operate the largest metals-related media site in the US according to third party ranking sites. With a preemptive…

More Info

Premium Content

Boom in Production of ‘Technological Barrels’ of Oil Drives Prices Down

A debate is going on in the oil industry and among its consumers about the medium- to longer-term impact of North American shale oil and Canadian tar sands on the oil price.

While oil from less conventional sources like this has flooded the market, particularly impacting North America and driving down both imports and prices, they remain technologically more complicated to extract.

Nevertheless, these technological barrels of oil are predicted to make up roughly 65% of non-OPEC oil production capacity growth until 2018, according to the IEA as quoted in the FT, while North America is forecast to make up some 40% of incremental oil production capacity growth over the next five years.

Related article: Peak Oil Price: The Latest Industry Worry

Clearly these technological barrels are looking to have a significant impact on global oil supply and prices – which, in turn, affects metal prices.

Indeed, some feel the impact will drive prices lower during this decade, Dennis Gartman, a pundit followed by many investors, is quoted in another article as saying to CNBC this week: “If there were a way to sell OPEC short, I would try to find a way to sell OPEC short.”

If that is the case, a lower oil price could have a profound impact on the global economy, boosting growth and demand for metals. In addition, the price of many energy-intensive metals like aluminium react to a fluctuating oil price – gaining support from rising oil prices and falling with lower oil prices – even though electricity is rarely produced directly from oil.

Related article: Why the High Oil Prices if Supplies Really are Abundant?

Not all are agreeing with the idea of lower oil prices, though.

The industry -has been caught between rising output and weak global demand, at least from mature markets, which has resulted in a lower oil price. However, rising production costs are prompting analysts to examine the true cost of production, particularly for new sources of “technology barrels.”

ADVERTISEMENT

To be continued in Part Two.

By. Stuart Burns


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News