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Global Gas Market
“Oil Voice” reports that global LNG (Liquefied Natural Gas) capacity has increased dramatically. In the year 2000 worldwide liquefaction capacity was 121 million tons per annum (mmtpa) or 844 billion cubic feet per day (bcf/d). By 2010 it had reached 270 mmtpa (1,882 bcf/d). By the end of this year it will be about 400… Read More
Chevron’s Permian Pivot
“Rigzone” reports that Chevron, like fellow super majors ExxonMobil and Shell, is shifting focus to the Permian Basin of West Texas and Southeast New Mexico. On the surface this could be interpreted as merely following the trend to the Permian shales. However, this is not a change of direction, but rather a change of emphasis.… Read More
OPEC Optimistic
“World Oil” reports that OPEC Secretary-General, Mohammad Barkindo, feels that production cutbacks instituted by OPEC and 11 other producer nations are starting to reduce the global oil glut. While compliance with the production quota arrangement has been surprisingly good, I think the jury is still out as to how effective it will be between now… Read More
Paucity of Permian Pipelines Poses Potential Price Problem
When you see the price for WTI (West Texas Intermediate) quoted on the evening news, this is the price the oil brings at the transportation hub in Cushing, OK. Producers in the Permian Basin of West Texas and Southeast New Mexico receive this price, less the cost of transportation to get the crude to Cushing.… Read More
Future Shock?
Some crude traders fear that we might be facing a long term oil supply shortfall given current trends. Back in November, OPEC and 11 other producing nations announced plans to cutback on production in an effort to shrink the global glut and increase prices. In response, prices jumped 20% and many producers hedged future production… Read More
