Arthur Berman (consulting geologist) on global oil inventories
“Global oil inventories are falling because of OPEC and non-OPEC production cuts, but the road to market balance will be long.”
–Arthur Berman, Consulting Geologist
Peak Oil Review – 24 Apr 2017
Last week, oil prices underwent their biggest weekly decline in a month as the markets lost confidence in OPEC’s ability to reduce the global oil surplus in the near future. The move was supported by reports that a glut was developing in the physical oil market in the North Sea area as lower Asia purchases, increased shipments of US crude to the EU, and more supplies coming out of storage all served to drive down prices. At week’s end, US futures were once again trading below $50 a barrel and London’s Brent below $52.
Head of analysis at Rystad Energy on new oil discoveries
“The shortcoming of oil replacement by the drill bit has been quite drastic … Discoveries are not keeping up with production.”
Per Magnus Nysveen, head of analysis, Rystad Energy. Last year, 10 billion barrels of oil were discovered, around one third of global consumption, including well-appraisal activity, said Nysveen. He added that supply could fall short by up to 2 million barrels per day within seven to eight years.
Peak Oil Review – 17 Apr 2017
After climbing steadily since March 27th, oil prices stabilized at the $53-55 level late last week. As usual, prices got a boost from various oil minister’s comments about how well they were doing in meeting their production cut goals and how they are considering extending the cuts until the end of the year. The monthly OPEC report shows that the cartel’s production jumped by about 1.2 million b/d after production cuts were first seriously discussed last fall, and then fell about the same amount after cuts started in January. The net result was to leave OPEC’s production about where it was through most of 2016.
Canadian Natural Resources Minister on the future of wind energy
“It’s clear that wind energy’s time has come. My message is a very simple one: our government is committed to addressing climate change, and we know that wind power will play a critical role in those efforts.”
Canadian Natural Resources Minister Jim Carr.
Peak Oil Review – 10 Apr 2017
After falling on Monday on the news that Libya was resuming production from its largest oilfield that was shut down the previous week, oil prices moved higher for the next three days on hopes that the OPEC production cut was having the desired effect. Some believe that oil traders have been too busy watching the well-publicized build in US crude stocks, while excess inventories in other parts of the world are shrinking away unnoticed. Futures prices, which were about $48 a barrel the US the week before last, climbed to over $51 a barrel by Thursday.
President Trump & the founder and CEO of US’s largest coal company on the future of mining jobs in America
“My administration is putting an end to the war on coal…The miners are coming back.”
US President Donald Trump, as he signed the “energy independence” executive order
“I suggested that (Trump) temper his expectations. He can’t bring them back.”
Robert Murray, founder and CEO of Murray Energy, the biggest US coal company
Peak Oil Review – 3 Apr 2017
Crude prices rebounded sharply last week erasing nearly half the $7-8 selloff that began in early March. The March price drop came on the consensus that increasing crude inventories and ever higher rig counts would offset the 1.8 million production cut that OPEC was trying to orchestrate. At the close Friday, New York futures were at $50.85, and London was at $53.83.