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No $100 Oil until 2020
“World Oil” reports that Nobuo Tanaka, former head of the International Energy Agency (IEA), predicts that oil prices will not reach $100 per barrel until 2020 to 2025. He anticipates depressed prices until U. S. shale production starts to decline. This, in conjunction with increasing demand from Asia and Africa, will enable prices to eventually… Read More
Demise of LNG?
We tend to think of oil, natural gas, liquefied natural gas (LNG), coal and nuclear energy as separate markets. Domestically, and in the short term, this is true. However, globally, and in the long term, these are all interrelated. Economists correctly contend that when a commodity’s price changes, it affects the prices of compliments and… Read More
Murphy Pounds Sand
The recent oil price collapse resulted in massive reductions in capital spending, headcount and rig counts across the entire energy sector. Many industry observers predicted that oil production would decrease precipitously as a result. However, as “World Oil” reveals in a recent article, actual crude output has remained relatively stable. In fact, it is only… Read More
Low Prices = Reduced Investment
A recent article in “World Oil” cites analysis by the International Energy Agency (IEA) which contends that a period of sustained low oil prices will result in reduced exploration and production investment. The underlying assumption is that prices reflect a balance between supply and demand. Increasing prices imply a need for more supply which requires… Read More
BP’s LoSal Technology
Operators are always looking for cost effective ways to extend the lives of mature oil fields and stimulate production. Waterflooding, which involves injecting water into the reservoir, restores pressure and pushes oil toward producing wells. Both fresh and saltwater have been used in waterflood projects, and each has its strengths and weaknesses. Freshwater can make… Read More
