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Shrinking Surplus
As recently as February, the International Energy Agency (IEA) had been warning that the global oil surplus could drive prices down even further. Now, “World Oil” reports that as lower prices are taking their toll, non-OPEC production is slipping to the point that markets could start moving toward equilibrium in the second half of this… Read More
Rigless Gas Producers
“World Oil” reports that the number of drilling rigs looking for gas has dropped to the lowest level in almost three decades. Not since 1987 has the gas rig count been so low. In 2008 it was more than 1,600; now it is 88. Southwest Energy, the third largest domestic gas producer, has stopped drilling… Read More
Fooled by the “Freeze”
“World Oil” reports that Ole Hansen, the head of commodity trading at Saxo Bank A/S, sees the current oil market as being distracted by the sideshow that is a possible crude production “freeze”, and missing the main attraction which is U. S. drilling and production. Oil traders seem to be bidding up the price of… Read More
Bear Head LNG Facility
I recently ran across an article in “World Oil” about Bear Head LNG (liquefied natural gas) buying additional land adjoining the site of its proposed facility in Nova Scotia (http://www.worldoil.com/news/2016/3/29/bear-head-lng-buys-additional-land-as-it-expands-proposed-facility ). The article went on to say that original plans were to liquefy 8 mtpa (million tons per annum) of natural gas for export to… Read More
Oil Demand Alive and Well
Industry observers have focused on oil production and oversupply since late 2015, but not as much attention has been devoted to demand recently. Admittedly, a downturn in manufacturing and financial turmoil dampened demand in the developed economies. Annual demand growth did fall from over 2% to 1.2% in the fourth quarter of last year. A… Read More
