Insight and inspiration in turbulent times.
In a monthly report released last week, the IEA cut its forecast for non-Opec supply growth by 175,000 barrels per day (bpd) to 910,000 bpd, pointing to prolonged disruptions in Organisation for Economic Cooperation and Development (OECD) producers and lower expectations for Russia.
Another wave of mergers may be building in the energy industry as persistent high oil prices, stockpiles of cash and a shortage of inexpensive places to drill are driving companies to eye their competitors.
Sure, Big Oil is raking in money. But new reserves are more elusive, and governments are bargaining harder.
“From the shift away from exploration spending and toward development spending you can see that the supermajors in particular are focusing on getting their returns from what they have got already, rather than going out and finding more,” said IHS Energy’s Chew.
EXXONMOBIL has seized the mantle of the world’s largest public company, in terms of stock market value, from General Electric.
Energy investment banker Matthew Simmons, of Simmons & Co International, has been outspoken in his warnings about peak oil before. His new statement is his strongest yet, “we may have already passed peak oil”.
Solid article detailing the higher costs of oil sands and industry pressures driving project investments. Includes as context many startling figures: “Shell, based in London and The Hague, reported Feb. 3 that reserves fell in 2004 because it found enough oil to replace just 15 percent to 25 percent of what the company pumped. BP replaced 89 percent of production, the company said Feb. 8”.
But many Caspian estimates proved to be unrealistic, at least in the short term. Experts now say the Caspian should in coming years pump some 4 million to 5 million barrels per day, on par with Iran.
Oil companies must be forced to report more fully and transparently about their oil and gas reserves within annual reports and financial statements, according to Big Four firm Deloitte.
HOUSTON – Want to drill an oil or gas well? Get in line. After a stunning 2004, this year looks to be even better for drilling companies. And 2006 could top them both, if prices stay high.
India is fighting China in the battle for Russian oil by angling for a supply deal and a stake in Yuganskneftegaz, the oil unit that was seized from Yukos and is now owned by Rosneft, the state oil company.
Foreign-controlled companies in Russia will no longer be allowed to develop major natural resource deposits, Russian Natural Resources Minister Yuri Trutnev said on Feb. 10.
