Tag: OPEC

Russia’s oil and gas production sharply down in 2020, but here comes a new Arctic offshore platform

Barents Observer: Russia’s oil and gas production sharply down in 2020, but here comes a new Arctic offshore platform. Hundreds of workers at yards in Severodvinsk are engaged day and night with construction of Russia’s second ice-resistant platform for Arctic waters.

Oil production was down 8,6% in 2020 and gas production was down 6,2%, online newspaper Lenta reports.

This is the first year since 2008 Russia sees a drop in petroleum production. The decrease is partly explained by last year’s agreement with OPEC to cut production due to decreased demand in a world seriously hit by the pandemic.

The drop in oil production in 2020 came after two consecutive years of production records in the country’s post-Soviet history.

In December, and this Tuesday, Russia reached a new deal with OPEC to modestly raise oil production, but uncertainties are still high in regards to gas demand in Europe. Especially in the longer run, as the European Union aims at dramatically boosting climate-friendly green energy sources by 2030.

Another OPEC Promise: Fool Me Twice, Shame on Me

OPEC is back again, with an extension of its November 2016 accord that – subject to review – will extend its existing production quotas through 2018. The oil market responded by pushing oil prices up quickly and sharply to near $60 at year end.

https://www.forbes.com/sites/uhenergy/2018/01/03/another-opec-promise-fool-me-twice-shame-on-me/

Oil market trends are setting the foundation for higher crude prices, Schlumberger says

Oil prices are poised to rise as a number of positive trends take shape in the market, which is now balanced after years of oversupply, according to Schlumberger, the world’s largest publicly traded oilfield services company.

https://www.cnbc.com/2017/10/20/oil-market-trends-are-setting-up-higher-prices-schlumberger-says.html

Another Nail in OPEC’s Coffin: Fracking Old Wells Dropping US Breakeven Points Further

Ed Morse, Citigroup’s head of commodity research, told a Bloomberg television audience last week that OPEC’s position “is not sustainable over a long period. In the end, the markets are going to win, and [the winner] is going to be shale. If we’re in a $40 to $45 world, we’ll have enough drilling to add to the [world’s] surplus.”

https://www.thenewamerican.com/tech/energy/item/26730-another-nail-in-opec-s-coffin-fracking-old-wells-dropping-u-s-breakeven-points-further

US Fracking Keeps Pushing Oil Price Forecasts Down

A major financial company just lowered its five-year forecast for the oil price ceiling, as the U.S. continues to increases its oil production, Axios reported Friday. Citigroup is projecting that over the next five years, oil prices will not rise above $60 a barrel, down from the previous forecast of $65 a barrel.

http://dailycaller.com/2017/08/18/us-fracking-keeps-pushing-oil-price-forecasts-down/

 

This Stock Will More Than Double in the Medium-Term

Crude oil prices are less than 50% of their 2014 levels but the US shale oil drillers continue to add oil rigs and increase their production. As a result, the Energy Information Administration expects the US crude oil production to reach 10 million barrels per day in 2018. We want to be a part of this shale oil boom.

https://hacked.com/stock-will-double-medium-term/

Scared of Secular Stagnation? Just Look at Oil Industry’s Innovations

In recent years, it’s been in vogue to claim all the “big” innovations — the real game changers like the steam engine, car, airplane, computer and internet — are behind us. We’ve entered secular stagnation, as humans have maxed out creativity, proponents presume, and all that’s left is to tweak past ideas for minor gain. To my mind, this is as short-sighted today as it was in 1938, when economist Alvin Hansen first came up with this notion.

https://www.thestreet.com/story/14234573/1/scared-of-secular-stagnation-just-look-at-oil-industry-s-innovations.html

OPEC Maintains Production Cuts But Fracking Controls Prices Now

This Forbes article discusses the reduced clout that the Organization of Petroleum Exporting Countries (OPEC) now has because of fracked gas. OPEC has agreed to maintain their production cuts for the purpose of supporting the oil price. Which is fine, a cartel operating like a cartel, no one really expects them to do much else but try to exercise their market power. The problem here is that they’ve not got as much market power as they’d like, not got as much market power as they used to have.