Electric Vehicles

Oil Price Rally Boosts Electric Car Sales

Tesla’s competition is about to get more crowded next year with many legacy automakers and luxury brands launching a record number of battery electric vehicles and plug-in hybrids. All EV makers will have one common element that could help lift demand for battery vehicles—rising oil prices leading to fuel prices at four-year highs, which could turn consumers towards EVs. To be sure, charging infrastructure and range are still key concerns in consumers’ minds regarding EVs, but utilities and major oil firms such as Shell and BP are already looking to expand the charging infrastructure, especially in Europe.

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100 dollar Oil

$100 Oil Is A Distinct Possibility

An oil price spike is starting to look increasingly possible, with a rerun of 2008 not entirely out of the question, according to a new report.

The outages from Iran are worse than most analysts expected, and bottlenecks in the U.S. shale patch could prevent non-OPEC supply from plugging the gap. To top it off, new regulations from the International Maritime Organization set to take effect in 2020 could significantly tighten supplies.

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Stocks Up Rates Up

Do the FED’s Interest Rates Affect the Stock Market?

In anticipation of the September 25-26 Fed meeting, CNBC ran this headline (Sept. 21): “Record High Stocks Face Fed Rate Hike.” implying that the Fed’s interest rate decisions actually affect the stock market. Common wisdom says that “falling interest rates means higher stock prices, while rising interest rates means lower stock prices.” At first blush this might sound logical because rising interest rates makes fixed income investments more attractive because they pay more and have less risk than stocks. So some of the available capital will flow into bonds, etc. thus starving the stock market and putting downward pressure on prices.  In this article, Elliott Wave International contends that there is actually no consistent relationship between interest rates and the stock market and they present examples of how the exact opposite of what you would expect has happened.

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Oil Shale in WY, UT & Colo.

Technological Solution to 100 Year Old Oil Problem

For as long as I can remember there has been big talk about the “Oil Shale” in places like Utah, Colorado and Wyoming. According to Wikipedia “The largest oil-shale resource in the world is contained in the Eocene Green River Formation in Colorado, Utah, and Wyoming in three basins: the Piceance Basin, Green River Basin, and Uinta Basin. The Green River oil shales have been the focus of most efforts of the past hundred years to establish an American oil shale industry.”  The first attempts to exploit the Green River Basin shale deposit was made by the “Oil Shale Mining Company” way back in 1916. But oil from oil shale is notoriously uneconomical and hard to extract. Generally, the shale is mined and then heated to at least 300 °C (570 °F) to extract the oil, but it works better at between 480 and 520 °C (900 and 970 °F)! The usual process involves massive amounts of super-heated steam (which requires lots of water). The key to economical shale oil is not locating the oil it is developing the right technology to make the process economical (and preferably environmentally friendly). In today’s article Charles Kennedy of Oilprice.com looks at a new method of doing exactly that.

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Oil War Saudi Arabia vs Iran

Oil Price War: Saudi Arabia vs. Iran

One of the first lessons in Econ 101 is Supply vs. Demand. If the supply is curtailed and demand stays the same the price will go up. A somewhat later lesson is that Government sanctions reduces supply and drives prices up. The classic example of this is the drug trade. But recent sanctions by the U.S. has had quite the opposite effect (at least temporarily).  What has happened is that the U.S. has put trade sanctions on Iran. So Iran is offering its oil at a discount to those willing to go against U.S. wishes and buy their oil anyway. In response Saudi Arabia is offering to match Iran’s price without the risk of offending the United States. So in effect we have a price war (i.e. a race to the bottom). Chances are this won’t last long if the sanction breakers suffer severe enough consequences.

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Why Graphene hasn't taken over the world

Why Graphene Hasn’t Taken Over the World- Yet

Graphene burst into the general consciousness in 2010, when the Nobel Prize committee brought its discovery to the attention of the world with its almost sci-fi inspired properties. Graphene is the strongest material ever tested, efficiently conducts heat and electricity, can be levitated by neodymium magnets and is nearly transparent. Graphene is a form of carbon that is so thin it is actually just a single layer of carbon atoms arranged in a hexagonal lattice. Since it is only a single atom thick it is considered two-dimensional rather than three dimensional.

Scientists had theorized about graphene for years, and although it had been unintentionally produced in small quantities for centuries it was not mass produced. It was originally observed via electron microscopes in 1962, but it was studied only while supported on a metal surface.

Then in 2004, Andre Geim and Konstantin Novoselov  were able to isolate and further study it at the University of Manchester. This work resulted in them  winning the Nobel Prize in Physics in 2010 “for groundbreaking experiments regarding the material graphene.”

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Opec- New Cartel

New Oil Cartel Threatening OPEC

When reports emerged that India and China are in talks about forming an oil buyers’ club, OPEC was probably too busy with its upcoming June 22 meeting to concern itself with that dangerous alliance. Now, it may be time for it to start worrying.

“The timing is right. The boom in U.S. oil and gas production gives us greater leverage against OPEC,” the Times of India quoted an Indian official as saying last month after the formal start of said talks. The two countries, after all, account for a combined 17 percent of global oil consumption and they are the ones that would be the hardest hit if prices rise as a result of OPEC’s actions.

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Saudi Crude Oil Supply

Can Saudi Arabia Prevent The Next Oil Shock?

Current volatility in the global oil market is, according to most analysts, due to fears that markets are facing a severe threat. A doomsday scenario is being painted in the media which suggests that oil prices will collapse as Moscow and Riyadh allow for OPEC compliance to slip, and that a glut of Saudi crude will be hitting the market. This assumes that Saudi Arabia is able to produce at least 12.5 million bpd, But no one has really assessed the Saudi spare capacity capabilities…

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