After ignoring an order by the French government to get back to work, oil workers in the country stepped up their battle against an increase in the retirement age to 62, setting tires on fire at an oil refinery just outside of Paris.
Close to a dozen oil refineries in France have been blocked by residents and workers in order to keep workers from entering into the plants to reopen them. Oil depots have also been blockaded by human chains.
Intervention of some sort is expected from the government as Prime Minister Francois Fillon said on Sunday they'll do whatever it take to be sure there aren't fuel shortages in the country.
At this time there are fuel shortages in some places scattered around the country, but it'll get much worse if the protests are allowed to go on.
There are approximately a month of oil reserves left in the country.
Concerns that truckers would join the protests were confirmed Monday, as they started organized slowdowns in order to bring traffic to almost a halt, riding at extremely slow speeds.
Showing posts with label Oil Reserves. Show all posts
Showing posts with label Oil Reserves. Show all posts
Monday, October 18, 2010
Wednesday, March 10, 2010
Crude Oil Futures Up
Crude Oil Futures
After a report from the U.S. Energy Information Administration that gasoline stocks had fallen last week by 2.9 million barrels, the price of crude oil shot up as high as $83.03 a barrel, its highest levels since early January.
The benchmark contract settled to $80.96 as the day went on, a decrease of 0.5 percent a barrel.
Other news affecting the price of oil was the announcement from OPEC that crude demand per day would rise by over 190,000 barrels a day over its previous estimate of 28.94 million barrels a day.
Crude Oil Futures
After a report from the U.S. Energy Information Administration that gasoline stocks had fallen last week by 2.9 million barrels, the price of crude oil shot up as high as $83.03 a barrel, its highest levels since early January.
The benchmark contract settled to $80.96 as the day went on, a decrease of 0.5 percent a barrel.
Other news affecting the price of oil was the announcement from OPEC that crude demand per day would rise by over 190,000 barrels a day over its previous estimate of 28.94 million barrels a day.
Crude Oil Futures
Thursday, February 19, 2009
The Myth of Peak Oil
It's sometimes hard to look at all the nonsense being perpetuated by people with agendas, as it seems there's almost nothing important any more that isn't politicized in some way, and so ultimately lied about. Gold is one of those things, and another major one, which I want to talk about is peak oil.
So by definition, what is peak oil? It simply means that oil that was relatively easy to reach and extract has been depleted. The question then becomes if that is in reality the case. The answer is absolutely no. The peak oil myth is just that - a myth. That doesn't mean there won't come a day when that becomes the reality, it's just that it isn't the case now, and won't be any time soon.
So why is the myth continually perpetuated? Because it takes the eyes and minds of people off of why oil prices sometimes surge and the caused behind it. The major reason there's the beginnings of an artifially induced oil peak is because of consequences of political actions put into law which forbids access and drilling on easy-to-drill and extract oil. Think of Alaska and off the coastlines of the U.S. There are billions of barrels of oil available, yet not allowed to be drilled for because of pressure from radical environmentalists and lawmakers looking to curry favor from the media which loves this type of idiocy.
This is mostly brought about from the endless introduction of fear as the key tool used by these liars in order to manipulate public policy to their hidden agendas.
These manipulators even try to ask the types of irrelevant questions that herd people a certain way so, again, they don't look at the facts, realities and agendas behind them. For example, they use terms like what is going to happen "after oil." Or other statements like "surviving peak oil," or "life after peak oil. The implication is that peak oil is reality that we must now deal with, rather than the fact that there's absolutely no basis for concern at this time if the current regulations were removed. That's what is trying to be hidden from the minds of people.
Besides the obvious billions of barrels of oil in Alaska and off American coastlines, where else is there oil available? In the United States itself there is enough oil in shale to make it the largest oil reserves in the world; far beyond what Saudi Arabia has. That is a proven fact. There are of course also have billions of barrels of oil in the Canadian sands area, which will also last for decades. These are just a couple of areas which don't include many other areas in the world.
So why imply an oil shortage, what is the hidden agenda behind it. Some of it is philosophical, as ignorant people literally think of the earth as their mother, and to drill into their mother is actually hideous in their warped minds. Another reason for asserting oil depletion is in order to promote agendas related to radical environmentalists and their business allies, who want to try to cash in on the misguided focus on what is called "alternative energy," where billions of dollars are being wasted because of the fear mongering people who make it look like the world is falling in order to gain access to public and private money to further their purposes. It's nothing more than that.
There's no oil crisis, we're not close to losing easy access to oil supplies.
While I do agree that oil prices will eventually have to go up, especially until ways of figuring out how to extract oil from shale is made cheaper, there is still so much oil available that to say we're in any type of crisis is dishonest at best, and ignorant at worst.
Even new ways of scouring the ocean floors and seeing what lies beneath the salty residue has resulted in billions of barrels of oil being discovered by Brazil, and their just getting going on that, as Petrobras continues to look for more deposits. Granted, it's far below the ocean floor and will be more costly - at this time - to extract, is does show how much oil there is that hasn't been discovered yet, and how much would be avaiable when restrictions on drilling for oil on coastlines are lifted.
The world oil supply is fine, and world oil reserves in a solid place. Oil consumption for now has cut back, as economic weakness causes consumers to drive less and stay around home more. That will extend signficantly the amount of oil available and its use.
So you don't have to worry or be fearful over the dishonest assertions by those with private agendas. There's billions and billions of barrels of oil available, it's just not being allowed to be drilled for because of existing laws which eventually will be withdrawn when real pressures from the population make it politically dangerous to keep people from cheaper oil and gas prices.
So by definition, what is peak oil? It simply means that oil that was relatively easy to reach and extract has been depleted. The question then becomes if that is in reality the case. The answer is absolutely no. The peak oil myth is just that - a myth. That doesn't mean there won't come a day when that becomes the reality, it's just that it isn't the case now, and won't be any time soon.
So why is the myth continually perpetuated? Because it takes the eyes and minds of people off of why oil prices sometimes surge and the caused behind it. The major reason there's the beginnings of an artifially induced oil peak is because of consequences of political actions put into law which forbids access and drilling on easy-to-drill and extract oil. Think of Alaska and off the coastlines of the U.S. There are billions of barrels of oil available, yet not allowed to be drilled for because of pressure from radical environmentalists and lawmakers looking to curry favor from the media which loves this type of idiocy.
This is mostly brought about from the endless introduction of fear as the key tool used by these liars in order to manipulate public policy to their hidden agendas.
These manipulators even try to ask the types of irrelevant questions that herd people a certain way so, again, they don't look at the facts, realities and agendas behind them. For example, they use terms like what is going to happen "after oil." Or other statements like "surviving peak oil," or "life after peak oil. The implication is that peak oil is reality that we must now deal with, rather than the fact that there's absolutely no basis for concern at this time if the current regulations were removed. That's what is trying to be hidden from the minds of people.
Besides the obvious billions of barrels of oil in Alaska and off American coastlines, where else is there oil available? In the United States itself there is enough oil in shale to make it the largest oil reserves in the world; far beyond what Saudi Arabia has. That is a proven fact. There are of course also have billions of barrels of oil in the Canadian sands area, which will also last for decades. These are just a couple of areas which don't include many other areas in the world.
So why imply an oil shortage, what is the hidden agenda behind it. Some of it is philosophical, as ignorant people literally think of the earth as their mother, and to drill into their mother is actually hideous in their warped minds. Another reason for asserting oil depletion is in order to promote agendas related to radical environmentalists and their business allies, who want to try to cash in on the misguided focus on what is called "alternative energy," where billions of dollars are being wasted because of the fear mongering people who make it look like the world is falling in order to gain access to public and private money to further their purposes. It's nothing more than that.
There's no oil crisis, we're not close to losing easy access to oil supplies.
While I do agree that oil prices will eventually have to go up, especially until ways of figuring out how to extract oil from shale is made cheaper, there is still so much oil available that to say we're in any type of crisis is dishonest at best, and ignorant at worst.
Even new ways of scouring the ocean floors and seeing what lies beneath the salty residue has resulted in billions of barrels of oil being discovered by Brazil, and their just getting going on that, as Petrobras continues to look for more deposits. Granted, it's far below the ocean floor and will be more costly - at this time - to extract, is does show how much oil there is that hasn't been discovered yet, and how much would be avaiable when restrictions on drilling for oil on coastlines are lifted.
The world oil supply is fine, and world oil reserves in a solid place. Oil consumption for now has cut back, as economic weakness causes consumers to drive less and stay around home more. That will extend signficantly the amount of oil available and its use.
So you don't have to worry or be fearful over the dishonest assertions by those with private agendas. There's billions and billions of barrels of oil available, it's just not being allowed to be drilled for because of existing laws which eventually will be withdrawn when real pressures from the population make it politically dangerous to keep people from cheaper oil and gas prices.
Sunday, January 25, 2009
Oil: OPEC Production Cuts
OPEC countries are under increasing pressure to cut oil production as oil prices aren't able to prop up the many countries so reliant on higher prices to take care of their needs.
It's not a stretch to say the leaders of oil producing countries will have their hands full as people start to get edgy over consequences of low prices.
In reality, there's not much OPEC and other oil producing countries can do about it, as the economic crisis has lowered demand for oil, and no matter how far oil production is cut, it's not going to get people to spend their money on gas they're not going to use.
Cutting oil production will only cause people to travel even less, undercutting the very strategy attempted by countries to prop up their crude prices.
If oil prices rise than there will be a high cost of oil that will sit there not being used, as people continue to save rather than spend their money.
Oil storage and reserves are growing while consumers hold back from buying, that isn't going to change for OPEC or oil companies. The oil industry can cut production, and it has already, but that won't solve the problem the market has already decided.
All that corporations and countries should do is get out of the way and let the market figure it out. Intervention into the oil market will cause unintended consequences as government interference always does, and only prolong the economic pain for everyone.
There is nothing driving the oil markets, prices, supply, costs, drilling and production other than consumer demand. Nothing can be done to change that until the economic crisis ends and then money flowing back into consumer goods and services.
The oil industry can only stand by and watch, cut cost, get leaner, and prepare for when the turnaround in the oil market comes.
This will be essential for the industry, as once demand rises, there will probably be a huge surge in buying as pent up demand explodes. Oil companies and refineries need to be ready for that time, as they'll soon forget the bad oil news of today and their profits will again surge ahead.
Oil exploration is another important factor in the mix, as there is plenty of oil out there, and the demand will come back stronger than ever as America, China and other nations will return to their insatiable appetites for oil that they had in the recent past.
So OPEC and oil companies just need to relax a bit. Yes there's problems related to low oil prices, but forcing the issue in attempts to artificially raise the price of oil above market levels never works.
We just have to wait out the tough times and wait for oil demand to rebound.
It's not a stretch to say the leaders of oil producing countries will have their hands full as people start to get edgy over consequences of low prices.
In reality, there's not much OPEC and other oil producing countries can do about it, as the economic crisis has lowered demand for oil, and no matter how far oil production is cut, it's not going to get people to spend their money on gas they're not going to use.
Cutting oil production will only cause people to travel even less, undercutting the very strategy attempted by countries to prop up their crude prices.
If oil prices rise than there will be a high cost of oil that will sit there not being used, as people continue to save rather than spend their money.
Oil storage and reserves are growing while consumers hold back from buying, that isn't going to change for OPEC or oil companies. The oil industry can cut production, and it has already, but that won't solve the problem the market has already decided.
All that corporations and countries should do is get out of the way and let the market figure it out. Intervention into the oil market will cause unintended consequences as government interference always does, and only prolong the economic pain for everyone.
There is nothing driving the oil markets, prices, supply, costs, drilling and production other than consumer demand. Nothing can be done to change that until the economic crisis ends and then money flowing back into consumer goods and services.
The oil industry can only stand by and watch, cut cost, get leaner, and prepare for when the turnaround in the oil market comes.
This will be essential for the industry, as once demand rises, there will probably be a huge surge in buying as pent up demand explodes. Oil companies and refineries need to be ready for that time, as they'll soon forget the bad oil news of today and their profits will again surge ahead.
Oil exploration is another important factor in the mix, as there is plenty of oil out there, and the demand will come back stronger than ever as America, China and other nations will return to their insatiable appetites for oil that they had in the recent past.
So OPEC and oil companies just need to relax a bit. Yes there's problems related to low oil prices, but forcing the issue in attempts to artificially raise the price of oil above market levels never works.
We just have to wait out the tough times and wait for oil demand to rebound.
Sunday, November 9, 2008
Will Global Oil Demand Contract in 2009?
A number of energy analysts are asserting that global oil demand for 2009 will contract for the first time in 26 years.
If this were to happen, it would pretty much depend upon the depth the economic crisis goes and reaches.
The major emerging market economies (BRIC) are expected to decline in growth from between 2 percent to 3.5 percent, but will still remain in the positive, if projections are accurate.
More significant as far as oil contraction goes, is whether demand in the U.S. can fall to the point where it becomes a factor. with oil and gas prices falling so much in the recent months, it's difficult to see this continuing to the point of it going into negative territory.
Still, it's unknown at this time how deep the economic crisis will go, and there is definitely the possibility oil demand could contract with BRIC slowing down.
It remains to be seen if the increase in domestic gasoline demand in the U.S. last week is an anamoly, or if it's the beginning of increased use.
If this were to happen, it would pretty much depend upon the depth the economic crisis goes and reaches.
The major emerging market economies (BRIC) are expected to decline in growth from between 2 percent to 3.5 percent, but will still remain in the positive, if projections are accurate.
More significant as far as oil contraction goes, is whether demand in the U.S. can fall to the point where it becomes a factor. with oil and gas prices falling so much in the recent months, it's difficult to see this continuing to the point of it going into negative territory.
Still, it's unknown at this time how deep the economic crisis will go, and there is definitely the possibility oil demand could contract with BRIC slowing down.
It remains to be seen if the increase in domestic gasoline demand in the U.S. last week is an anamoly, or if it's the beginning of increased use.
Wednesday, October 22, 2008
Crude Oil Prices Continue to Fall off the Cliff: Now at 15-Month Low
In intraday trading crude oil fell of the cliff again, plunging by over $4 a barrel - a 15-month low. The continued fall in oil prices is completely tied to consumer demand, which has dropped as people cut back on spending on anything but essentials.
December delivery for crude oil dropped by $4.25 to $67.93 a barrel shortly after 11:00 a.m. EST today on the NYMEX. Oil futures hit a low of $67.50, the worst showing since June 27, 2007.
On London's ICE Futures Europe exchange, Brent crude has dropped by $3.40 for the December settlement, a 4.9 percent fall. It now stands at $66.32 a barrel. That's the lowest price since May 10, 2007.
For the week ending October 17, fuel demand in the U.S. averaged 18.7 million barrels a day, according to the report of the Energy Department released today. That's down 8.5 percent from the same period last year.
Average use of gasoline has also fallen, now averaging 8.8 million barrels a day for the last four weeks, down from last year by 4.3 percent.
With distillate fuel (heating oil, diesel) use also dropping significantly, we can see demand for oil will continue to fall for some time.
Even though the unprecedented special meeting by OPEC next month is expected to result in the cutback of 1 million barrels a day in production, that will do nothing to change the demand factor until the global economy recovers. That isn't going to happen any time soon.
Part of the result of all this will be less travel, which will affect not only oil companies, but airlines and shipping companies as well.
Oil inventories also continue to rise, as there was an increase of 3.18 millon barrels to 311.4 million barrels, the fourth time in a row.
December delivery for crude oil dropped by $4.25 to $67.93 a barrel shortly after 11:00 a.m. EST today on the NYMEX. Oil futures hit a low of $67.50, the worst showing since June 27, 2007.
On London's ICE Futures Europe exchange, Brent crude has dropped by $3.40 for the December settlement, a 4.9 percent fall. It now stands at $66.32 a barrel. That's the lowest price since May 10, 2007.
For the week ending October 17, fuel demand in the U.S. averaged 18.7 million barrels a day, according to the report of the Energy Department released today. That's down 8.5 percent from the same period last year.
Average use of gasoline has also fallen, now averaging 8.8 million barrels a day for the last four weeks, down from last year by 4.3 percent.
With distillate fuel (heating oil, diesel) use also dropping significantly, we can see demand for oil will continue to fall for some time.
Even though the unprecedented special meeting by OPEC next month is expected to result in the cutback of 1 million barrels a day in production, that will do nothing to change the demand factor until the global economy recovers. That isn't going to happen any time soon.
Part of the result of all this will be less travel, which will affect not only oil companies, but airlines and shipping companies as well.
Oil inventories also continue to rise, as there was an increase of 3.18 millon barrels to 311.4 million barrels, the fourth time in a row.
Thursday, October 16, 2008
Crude Oil Inventory Pressures Commodity Below $69
Most industry watchers had their suspicions confirmed concerning an expanding crude oil inventory in the U.S., as the government report revealed a declining demand as consumers cut back on spending, causing the investory to rise.
As of about 11 a.m. EST, November delivery for light, sweet crude dropped by $4.73 to $68.87 a barrel on the New York Mercantile Exchange.
The last time oil prices were this low was on August 22, 2007, when the session finished at $69.26 a barrel. Prices have plunged since the high of $147 a barrel in July.
What triggered an even bigger fall than looked for was the amount of the inventory growth. Most analysts expected inventories to rise, but were looking for about 3.1 million barrels, instead inventory grew by a more-than-expected 5.6 million barrels for the week ending October 10.
Gasoline inventory tracked oil inventory, rising by 7 million barrels. According to the Energy Information Administration, gasonline demand has fallen by 5.2 percent over the last four weeks, averaging 8.8 million barrels a day, said the agency.
As of about 11 a.m. EST, November delivery for light, sweet crude dropped by $4.73 to $68.87 a barrel on the New York Mercantile Exchange.
The last time oil prices were this low was on August 22, 2007, when the session finished at $69.26 a barrel. Prices have plunged since the high of $147 a barrel in July.
What triggered an even bigger fall than looked for was the amount of the inventory growth. Most analysts expected inventories to rise, but were looking for about 3.1 million barrels, instead inventory grew by a more-than-expected 5.6 million barrels for the week ending October 10.
Gasoline inventory tracked oil inventory, rising by 7 million barrels. According to the Energy Information Administration, gasonline demand has fallen by 5.2 percent over the last four weeks, averaging 8.8 million barrels a day, said the agency.
Wednesday, October 15, 2008
Oil Plunges to 13-month Low on Demand Concerns
Concerns over the global economy continues to pummel oil prices, as it dropped to a 13-month low below $71 a barrel early Wednesday. Demand continues to shrink as consumers cut back on spending.
Most of this is based on the biggest oil consumer in the world, the U.S., where demand continues to diminish over the financial crisis.
November delivery for Brent North Sea crude fell to $70.70 a barrel, a $3.6 drop from Tuesday's close.
Delivery for November light sweet crude in New York also experienced a significant drop, falling as low as $74.93 a barrel, before recovering to $75.23 a barrel.
OPEC, which has taken the unusual step of meeting a month before their scheduled December meeting, has cut back its 2009 estimate for demand, citing the continuing economic climate in the U.S.
On Thursday there'll be an update on where U.S energy inventory stand, which will give a clearer picture on how the demand factor is playing out in the country.
Most of this is based on the biggest oil consumer in the world, the U.S., where demand continues to diminish over the financial crisis.
November delivery for Brent North Sea crude fell to $70.70 a barrel, a $3.6 drop from Tuesday's close.
Delivery for November light sweet crude in New York also experienced a significant drop, falling as low as $74.93 a barrel, before recovering to $75.23 a barrel.
OPEC, which has taken the unusual step of meeting a month before their scheduled December meeting, has cut back its 2009 estimate for demand, citing the continuing economic climate in the U.S.
On Thursday there'll be an update on where U.S energy inventory stand, which will give a clearer picture on how the demand factor is playing out in the country.
Friday, October 10, 2008
Oil Falls Over $9 to End at 13-month Low on Friday
Oil prices plummeted to a 13-month low Friday, following ongoing dramatic stock market losses, as investors fear that the anemic global economy is having negative impact of fuel demand.
Crude for November delivery in the U.S. plunged $9.21 to $77.38 a barrel, the lowest its been since September 11 2007 when it hit a mid-day low of $77.
The Dow Jones industrials lost 128 points Friday, as it limped to the end of the wild session where it traded in a range of 1019 points during the day.
As economic concern drives people to tighten up their wallets, demand for oil continues to drop, as in the U.S. last week supplies increased by 8.1 million barrels, indicating people are cutting back on usage.
OPEC nations are starting to go into panic mode as well, calling an emergency session on November 18, a month before the regularly scheduled meeting.
It is expected they are going to decide to cut back on production in order to shore up prices, but that will be futile as problems are much bigger than they can affect.
The U.S. government and others will soon find out that they need to quit interfering in all markets and let them take care of what they know how to do. The market after all consists of people and businesses in their enormous number of interactions during this period of time; they'll know how to best respond to the government-induced financial crisis.
According to AAA, the average gas price per gallon in the U.S. is now at $3.35 a gallon.
Wednesday, October 8, 2008
U.S. Crude Oil Inventories Increase While Demand Slackens
Crude oil and gasoline inventories increased last week in the U.S., as crude supplies grew by 8.1 million barrels to 302.6 million, according to the Energy Information Administration.
As expected, the lowering demand because of economic fears, along with the growing inventory has put downward pressure on prices as oil dropped below $87 a barrel early in the day for November delivery. Gasoline futures also fell by over 10 cents to their lowest levels in a year.
Most analysts were surprised by the amount the oil inventory rose, as they had looked for a 6 percent gain, while the real gain was 8.6 percent, now bringing inventories up to 80.9 percent of capacity as of last week.
Gasoline supplies increased 7.2 million barrels to end the week at 186.8 million. Some analysts were especially surprised here, as they were looking more for an increase of around 1.1 million barrels.
As expected, the lowering demand because of economic fears, along with the growing inventory has put downward pressure on prices as oil dropped below $87 a barrel early in the day for November delivery. Gasoline futures also fell by over 10 cents to their lowest levels in a year.
Most analysts were surprised by the amount the oil inventory rose, as they had looked for a 6 percent gain, while the real gain was 8.6 percent, now bringing inventories up to 80.9 percent of capacity as of last week.
Gasoline supplies increased 7.2 million barrels to end the week at 186.8 million. Some analysts were especially surprised here, as they were looking more for an increase of around 1.1 million barrels.
Wednesday, September 17, 2008
Light Sweet Crude Oil in big $6.01 Increase
Investors continued to move their money out of equities and put it in commodities, as oil was a beneficiary of the recent economic bad news which has hammered the financial companies. AIG was the main culprit today in moving commodities up.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
October delivery for light sweet crude in New York surged by $6.01 dollars to finish the session at $97.16.
Across the pond Brent North Sea crude also moved upward by $5.62 to end at $94.84.
The U.S Department of Energy says that over the last month oil-based product use has fallen by 4.4 percent over the same time last year.
Recent bad weather has also caused a drop of 6.3 million barrels in the U.S reserves.
Even with the gain today, prices have dropped by $55 a barrel since the July 11 high of $147 a barrel.
Friday, August 22, 2008
Warren Buffett says Oil Sands Trip for Learning, not to put in "Buy Order"
The secretive trip that became common knowledge this week, where Warren Buffett and Bill Gates took a look at Canadian Natural's C$9.3 billion ($8.9 billion) Horizon oil sands mining and synthetic crude processing operation, touring the facility which is scheduled to begin production later in 2008, resulted in speculators bidding up the oil sands producers' share prices.
Buffett has sinced cooled the stocks and speculators down, saying in an interview on CNBC that he has no plans at this time to buy into the sector.
"No, no. I go to the movies, but I don't buy movie companies. I mean, I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business," he said on CNBC's Squawk Box.
Buffett usually does things quietly so this very thing doesn't happen. Obviously somebody on the inside let it out the duo were touring the operations so that rumors would bid up the oil stocks on the Toronto Stock Exchange.
Even so, Buffett added that the fact-finding tour may be something useful in the future, but said it's the ability to make long-term price forecasts for oil that will determine if it's profitable to invest in the commodity. Buffett also said if oil stayed at about $120 a barrel over the next 50 years, the tar sands would do very well, but he concluded he doesn't have the answer to that uncertainty.
Part of the difficulty in projecting profits is the higher operational cost connected to the thicker crude inherent in the sands. If oil prices plummeted, and new oil resources tapped (like the billions of barrels available in America), it could end up a poor investment, as thinner crude would be less expensive to access and produce.
Buffett has sinced cooled the stocks and speculators down, saying in an interview on CNBC that he has no plans at this time to buy into the sector.
"No, no. I go to the movies, but I don't buy movie companies. I mean, I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business," he said on CNBC's Squawk Box.
Buffett usually does things quietly so this very thing doesn't happen. Obviously somebody on the inside let it out the duo were touring the operations so that rumors would bid up the oil stocks on the Toronto Stock Exchange.
Even so, Buffett added that the fact-finding tour may be something useful in the future, but said it's the ability to make long-term price forecasts for oil that will determine if it's profitable to invest in the commodity. Buffett also said if oil stayed at about $120 a barrel over the next 50 years, the tar sands would do very well, but he concluded he doesn't have the answer to that uncertainty.
Part of the difficulty in projecting profits is the higher operational cost connected to the thicker crude inherent in the sands. If oil prices plummeted, and new oil resources tapped (like the billions of barrels available in America), it could end up a poor investment, as thinner crude would be less expensive to access and produce.
Thursday, August 21, 2008
Weaker U.S. Dollar, Increasing Global Tensions Drive Oil Up
Even though a U.S. government report revealed crude inventories in the U.S. increased by 9.4 million barrels, political tensions outweighed the good news in relationship to oil, as prices surged by almost 5 percent on Thursday.
While most of the political concerns center on the growing differences with Russia and the West, other factors like the ongoing battle with Iran over its nuclear program, as well as the neverending attacks on oil production in Nigeria have traders on edge on supply disruptions. In the case of Russia, their foray into Georgia already has slowed down the transportation of Azeri oil in the region.
One other factor contributing to the rise in oil prices is the possibility that Tropical Storm Fay could come back into the Gulf of Mexico during the weekend, which would slow down production by affecting offshore platforms and oil refineries.
more ...
While most of the political concerns center on the growing differences with Russia and the West, other factors like the ongoing battle with Iran over its nuclear program, as well as the neverending attacks on oil production in Nigeria have traders on edge on supply disruptions. In the case of Russia, their foray into Georgia already has slowed down the transportation of Azeri oil in the region.
One other factor contributing to the rise in oil prices is the possibility that Tropical Storm Fay could come back into the Gulf of Mexico during the weekend, which would slow down production by affecting offshore platforms and oil refineries.
more ...
Wednesday, August 6, 2008
Oil Prices Swinging Back and Forth On Gasoline Stockpiles and Crude Oil Supply
A government report showing gasoline stockpiles are lower than last weeks' forecast, along with a surprise that the crude oil supply grew more than expected, has oil prices swinging back and forth today after the release of the report.
In early trading, September delivery of light, sweet crude gained 51 cents, to reach $119.68 a barrel on the Nymex. After the report prices have been going up and down.
According to the Energy Information Administration, stockpiles of gasoline dropped by 4.4 million barrels last week. That's much more than the 1.4 million decline analysts were looking for.
Crude supplies also surprised analysts in the positive, as they grew to 1.7 million barrels, in contrast to the 1.2 million barrel drop analysts thought would be coming.
In early trading, September delivery of light, sweet crude gained 51 cents, to reach $119.68 a barrel on the Nymex. After the report prices have been going up and down.
According to the Energy Information Administration, stockpiles of gasoline dropped by 4.4 million barrels last week. That's much more than the 1.4 million decline analysts were looking for.
Crude supplies also surprised analysts in the positive, as they grew to 1.7 million barrels, in contrast to the 1.2 million barrel drop analysts thought would be coming.
Monday, July 14, 2008
President Bush Lifts White House Offshore Drilling Ban - Puts Pressure on Democrats
President Bush sent a message to the Democrat-controlled Congress today, putting the pressure on them to respond by opening up offshore drilling that could bring billions of barrels of oil to Americans in the not-too-distant future.
It wouldn't do much in the short-term, but it beats what is being done now: nothing!
You can't call the misguided attempt at pushing ethanol forward something, as it has done more harm than good, as food prices skyrocket. The subsidy to farmers needs to be repealed.
Democrats are already whining about this, but their inept answer is to drill in areas the oil companies own where there aren't any proven reserves. Oh yeah, Obama's solution is to tax the oil companies. That'll bring more oil to the market.
The Democrat-controlled Congress needs to now get some guts and also lift the ban on drilling; not just offshore, but across Alaska and in the continental U.S.
Billions of proven oil reserves are there for us to use.
It wouldn't do much in the short-term, but it beats what is being done now: nothing!
You can't call the misguided attempt at pushing ethanol forward something, as it has done more harm than good, as food prices skyrocket. The subsidy to farmers needs to be repealed.
Democrats are already whining about this, but their inept answer is to drill in areas the oil companies own where there aren't any proven reserves. Oh yeah, Obama's solution is to tax the oil companies. That'll bring more oil to the market.
The Democrat-controlled Congress needs to now get some guts and also lift the ban on drilling; not just offshore, but across Alaska and in the continental U.S.
Billions of proven oil reserves are there for us to use.
Monday, April 28, 2008
Scotland and Nigeria Strikes Cause Another Oil Price Record
Crude oil prices reached another record today, as strikes in Scotland and Nigeria reduced output. Another factor causing prices to rise to $119.93 a barrel in New York is the continuing attacks in Nigeria on pipelines.
The Nigerian strike has now entered its fifth day, as production has decreased by 50 percent since April 25.
"As long as there are disruptions of high-quality crude supplies, prices are going to move higher," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."
The two areas represented by the strike in the North Sea and Nigeria produce the low-sulfur oils which refiners prefer.
June delivery for crude oil climbed by 23 cents to finish at $118.75 a barrel on the Nymex. Brent Crude for June increased by 40 cents to settle at $116.74 a barrel on ICE Futures Europe exchange in London.
The strike in Scotland will only last for two days, as it was a protest over their pensions. Even so, it'll take about three weeks for the refinery to return to its full capacity of 200,000 barrels a day.
The Nigerian strike has now entered its fifth day, as production has decreased by 50 percent since April 25.
"As long as there are disruptions of high-quality crude supplies, prices are going to move higher," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "If the Nigerian strike isn't settled, we could easily see oil rise to $125 by the end of the week."
The two areas represented by the strike in the North Sea and Nigeria produce the low-sulfur oils which refiners prefer.
June delivery for crude oil climbed by 23 cents to finish at $118.75 a barrel on the Nymex. Brent Crude for June increased by 40 cents to settle at $116.74 a barrel on ICE Futures Europe exchange in London.
The strike in Scotland will only last for two days, as it was a protest over their pensions. Even so, it'll take about three weeks for the refinery to return to its full capacity of 200,000 barrels a day.
Wednesday, April 23, 2008
Oil Closing in on $120, Gas Prices Over $3.50
The price of gas across America has now reached over $3.51 a gallon, as prices for oil continue to break records almost daily. Diesel also broke new records, as it surged to $4.204 a gallon overnight. This was according to a survey by the Oil Price Information Service and the AAA.
Foreign supply constraints continue to be a factor in oil prices in the U.S., as the problems in Nigeria continue, and Mexico is producing less oil than usual, dropping be 7.8 percent in the first quarter, producing about 2.91 million barrels a day.
Crude for delivery in the U.S. increased by 23 cents on Wednesday to finish at $118.30 a barrel.
London Brent crude increased by 51 cents to settle at $116.46 a barrel; down from the record of $116.75 set on Tuesday.
Gasoline futures hit another record high today after the reports last week of U.S.inventories dropping by 3.2 million barrels.
Foreign supply constraints continue to be a factor in oil prices in the U.S., as the problems in Nigeria continue, and Mexico is producing less oil than usual, dropping be 7.8 percent in the first quarter, producing about 2.91 million barrels a day.
Crude for delivery in the U.S. increased by 23 cents on Wednesday to finish at $118.30 a barrel.
London Brent crude increased by 51 cents to settle at $116.46 a barrel; down from the record of $116.75 set on Tuesday.
Gasoline futures hit another record high today after the reports last week of U.S.inventories dropping by 3.2 million barrels.
Friday, April 11, 2008
Weekend Oil News Roundup
Energy Sector Roundup: Oil Out of Gas
Oil ended the day flat, keeping its distance from that $112.21 a barrel record set earlier in the week. Light, sweet crude for May delivery fell 70 cents to $109.41 on the New York Mercantile Exchange. But retail gas and diesel prices jumped to new records.
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Mexico leftists camp in Congress to stop oil plan
Leftist lawmakers blocked both houses of Mexico's Congress on Friday after an all-night sleepover protest against an oil reform plan that could open the state-run sector to more foreign investment.
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Oil Rises Above $110 a Barrel
Oil prices rose above $110 a barrel Friday after slipping from a record high at midweek as investors locked in profits from a stronger U.S. dollar.
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Pemex and Mexican Peak Oil Mean Expensive Oil
Pemex better start exploring for more oil in the Gulf of Mexico or its going to pump out all its reserves in less than ten years. Mexican President Felipe Calderon went on national television last night in Mexico and told his countrymen (in Spanish, we presume), "We have to act now because we're running out of time and out of oil."
What's he talking about?
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Oil steadies on weak dollar, demand revisions
Oil prices steadied on Friday as supply concerns and the weak dollar countered expectations that growing economic problems will slow global demand this year.
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Bakken Shale in US may hold 3.7 bln bbl oil - USGS
A shale rock formation that stretches across Montana and North Dakota could hold about 3.7 billion barrels of oil, the biggest single deposit in the United States except for Alaska, the U.S. Geological Survey said this week.
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Oil ended the day flat, keeping its distance from that $112.21 a barrel record set earlier in the week. Light, sweet crude for May delivery fell 70 cents to $109.41 on the New York Mercantile Exchange. But retail gas and diesel prices jumped to new records.
=====
Mexico leftists camp in Congress to stop oil plan
Leftist lawmakers blocked both houses of Mexico's Congress on Friday after an all-night sleepover protest against an oil reform plan that could open the state-run sector to more foreign investment.
=====
Oil Rises Above $110 a Barrel
Oil prices rose above $110 a barrel Friday after slipping from a record high at midweek as investors locked in profits from a stronger U.S. dollar.
=====
Pemex and Mexican Peak Oil Mean Expensive Oil
Pemex better start exploring for more oil in the Gulf of Mexico or its going to pump out all its reserves in less than ten years. Mexican President Felipe Calderon went on national television last night in Mexico and told his countrymen (in Spanish, we presume), "We have to act now because we're running out of time and out of oil."
What's he talking about?
=====
Oil steadies on weak dollar, demand revisions
Oil prices steadied on Friday as supply concerns and the weak dollar countered expectations that growing economic problems will slow global demand this year.
=====
Bakken Shale in US may hold 3.7 bln bbl oil - USGS
A shale rock formation that stretches across Montana and North Dakota could hold about 3.7 billion barrels of oil, the biggest single deposit in the United States except for Alaska, the U.S. Geological Survey said this week.
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Wednesday, April 9, 2008
Oil Futures Break another Record: Close over $110 a Barrel
Crude oil futures broke another record today, as they surged to a new intraday high of $112.21, and broke another record when it closed at $110.87 a barrel.
While the increase was connected to news from the Energy Information Administration that oil inventories in the U.S. had fallen by 3.2 million barrels last week, speculators continue to play a big role in the price of oil futures. According to the Energy Information Administration, gasoline inventory also slid, falling by 3.4 million barrels last week.
"Fundamentally, there's no reason we should be at these levels. Speculation has definitely taken over this market," GRZ Energy trader Anthony Grisanti told FOX Business this morning. "I think $120 is right around the corner. There is nothing that can turn this market around at this point."
Oil inventory in the U.S. stands at 316 million barrels as of April 4.
While the increase was connected to news from the Energy Information Administration that oil inventories in the U.S. had fallen by 3.2 million barrels last week, speculators continue to play a big role in the price of oil futures. According to the Energy Information Administration, gasoline inventory also slid, falling by 3.4 million barrels last week.
"Fundamentally, there's no reason we should be at these levels. Speculation has definitely taken over this market," GRZ Energy trader Anthony Grisanti told FOX Business this morning. "I think $120 is right around the corner. There is nothing that can turn this market around at this point."
Oil inventory in the U.S. stands at 316 million barrels as of April 4.
Monday, April 7, 2008
Crude Oil Up over $2 a Barrel in New York
Prices for crude oil increased by $2.86 to close at $109.09 a barrel on the NYMEX. That's the highest closing price since March 18.
May delivery for gasoline closely mirrored the crude oil price rise, rising by 2.68 cents a gallon, to close at $2.7835 in New York. The national average is now at an all-time high according to AAA, where they reported on their Web site that it now stands at $3.339 a gallon.
Futures for RBOB also broke an intraday record, as it went up to $2.7978. RBOB is the gasoline used to mix with ethanol.
The two major factors in the increase in prices were investors moving to commodities again, and the ongoing concerns about fuel inventory declines. It was estimated in a Bloomberg News survey that gasoline supplies dropped by 2.5 million barrels last week.
"We're seeing the funds jump in and buy commodities," said Phil Flynn, a senior trader at Alaron Trading Corp. in Chicago. "Commodities had by far the best returns during the last quarter. It would be risky to bet that either the stock market or dollar has hit a bottom yet."
Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts said, "There's little that's rational with the gains in the commodity markets now. I don't think we'll see oil prices fall until the economic slowdown is much more severe or inventories just become too high."
Commodity investment
In the first quarter alone, commodity investment has exploded to $400 billion, an increase of over 20 percent. Some think it'll pullback some, which could provide more investing opportunities.
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