The Peak Oil Crisis: A $4 Trillion Hole
If prices stay low for the next three years, the global oil industry and the countries it finances will be out $4.4 trillion in revenues.
oil price
What is the price of oil telling us?
Market fundamentalists tell us that prices convey information. Yet, while our barbers and hairdressers might be able to give us an extended account of why their prices have changed in the last few years, commodities such as oil–which reached a six-year low last week–stand mute. To fill that silence, many people are only too eager to speak for oil.
Global Oil Supply More Fragile Than You Think
2014 was one of the worst in over six decades for major new oil discoveries, even though oil prices were high for most of the year.
‘Perfect Storm’ Engulfing Canada’s Economy Perfectly Predictable
Economists, an irrational tribe of short-sighted mathematicians, are now calling Canada’s declining economic fortunes "a perfect storm."
What Greece, Cyprus, and Puerto Rico Have in Common
We all know one thing that Greece, Cyprus, and Puerto Rico have in common–severe financial problems. There is something else that they have in common–a high proportion of their energy use is from oil.
Why EIA, IEA, and BP Oil Forecasts are Too High
EIA, IEA, and BP forecasts miss the issue of low prices, and what they do to the possibility of future oil production. We get lulled into thinking that current prices are almost high enough, but they really are not. Companies really need to have enough funds on a cash flow basis, and on this basis they seem to need about $130 per barrel now, and more later. The likelihood of getting prices up to this high level seems very low.
Delayed gratification for OPEC, more pain for investors
OPEC at age 55 demonstrated its maturity this week as it left oil production quotas for its members unchanged. It did so in the face of oil prices that are about 40 percent lower than they were at this time last year, delaying once again a return to the $100-per-barrel prices seen during the past four years.
Peak Oil Notes – May 14
A midweek update. Market uncertainty continues as US crude stocks decreased for the second straight week, but so did US refinery utilization.
Changes to Total Global Credit Affects The Oil Price
In this post I present results from an analysis of developments to the annual changes in total debt in the private, non financial sector of some Advanced Economies (AE’s), and 5 Emerging Economies (EME’s) from Q1 2000 and as of Q3 2014 with data from the Bank for International Settlements (BIS in Basel, Switzerland).
Putting the Real Story of Energy and the Economy Together
What is the real story of energy and the economy? We hear two predominant energy stories.
Goldilocks Is Dead
For oil, the Goldilocks zone has ceased to exist. This will have staggering consequences throughout the economy for the foreseeable future.
Lifting the U.S. Oil Export Ban Is No Solution to Low Oil Prices
Lifting the oil export ban would only perpetuate the problem of over-production. That is no solution to low oil prices, lost jobs or lower oil-related spending.