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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
Déjà vu All Over Again?
A contango exists when the market perceives that future prices will exceed current ones. This is now the case with oil. Investors and traders are attempting to exploit this by selling futures contracts at the higher prices and buying at prevailing prices. As long as the costs of acquisition and storage are less than the… Read More
Vitol’s View
“World Oil” reports that Vitol, the world’s largest independent oil trader, anticipates a decade of low prices. In an interview with Bloomberg, CEO, Ian Taylor, opined that Vitol anticipates oil trading in a band between $40 and $60 per barrel, bouncing around a mid-point of $50. Taylor cites a slowing Chinese economy as dampening demand. … Read More
Natural Gas as a Bridging Fuel
“World Oil” reports that Elisabeth Torstad, CEO of consulting firm DNV GL, asserts that natural gas will play a major role as we transition to a safer, more sustainable, energy supply. Meanwhile, she expects global demand for energy to increase by 50% by 2050. However, she contends that the market needs to become more efficient.… Read More
