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Shrinking Glut?
“Rigzone” cites a Bloomberg report that the global oil glut might be starting to shrink. A month ago, international traders and major oil companies were considering buying oil and storing it on tankers. This can be profitable when a contango, or the expectation of higher future prices, exists. However, the spread between current prices and… Read More
Condensate Con
A recent article in “Oil Voice” by Kurt Cobb, offers the possibility that the global oil glut is mostly attributable to condensate, rather than crude oil per se. Condensates are hydrocarbons that exist in the reservoir as a gas, but when they reach the lower temperatures and pressures at the surface, they condense into a… Read More
Gas Exports to Canada
The shale revolution resulted in a surplus of gas, especially in the Marcellus shale area of Pennsylvania, West Virginia and Ohio. As a consequence, prices plummeted and gas producers had to scramble to find new markets. Some of the cheap gas replaced coal for power generation. The abundance also gave rise to a number of… Read More
At the Bottom?
“World Oil” reports that the International Energy Agency (IEA) thinks that oil prices might be turning the corner. Increasing demand, falling inventories, and production declines both within, and outside of, OPEC, could lead to a price recovery by the second half of this year. The IEA anticipates global demand rising by 1.2 million barrels of… Read More
Shell’s Best Bet
After Shell bought BG Group Plc, for $53 billion, crude prices slumped further. Critics quickly questioned the wisdom of the size and timing of the acquisition. Nevertheless, Shell CEO, Ben Van Beurden, pressed on, stressing the strategic importance of the deal. Now, “World Oil” reports that the market is exonerating Van Beurden. A significant majority… Read More
