Oil

Permian Basin Map

Is Peak Permian Only 3 Years Away?

Leave a Comment / Natural Gas, Oil / By

The Permian Basin is the largest petroleum-producing basin in the United States and has produced a cumulative 28.9 billion barrels of oil and 75 trillion cubic feet of natural gas. Currently, nearly 2 million barrels of oil a day are being pumped from the basin. It has been estimated that 43 billion barrels of oil and 18 trillion cu. ft. of gas remain; however, some experts claim the content is much bigger than expected, half a trillion barrels or even 2 trillion barrels. Eighty percent of estimated reserves are located at less than 10,000-foot (3,000 m) depth. Advances in hydrocarbon recovery such as horizontal drilling and hydraulic fracturing aka. “fracking” have expanded production into unconventional, tight oil shales… But is it possible that the current Bonanza in Oil production could come to a rapid end?

Is Peak Permian Only 3 Years Away? Read More »

Oil Train Tanker

Could the Next Oil Price Spike Cripple The Industry?

Leave a Comment / Oil / By

In the following article Andreas de Vries and Dr. Salman Ghouri of Oilprice.com discuss the possibility of oil price spikes crippling the oil industry. At first blush that seems highly unlikely.  After all the oil industry is critical to powering the world and although there have been bumps along the road over the last 100 years the oil industry has always weathered the storm. But let’s look at what they have to say.

Could the Next Oil Price Spike Cripple The Industry? Read More »

The Technical Failure That Could Clear The Oil Glut In A Matter Of Weeks

Leave a Comment / Oil / By

The following article by Cyril Widdershoven of Oilprice.com takes a look at the recent technical glitch that could cut Saudi production by as much as 900,000 barrels per day. Many Middle East oil fields are aging and are experiencing technical challenges. Creation of the Manifa oil field was a technological wonder of the modern world due to its abundance of marine life and unique structure. As of today Manifa is reporting that the water injection issue is not currently affecting oil production

The Technical Failure That Could Clear The Oil Glut In A Matter Of Weeks Read More »

NYMEX Crude Oil

Is A Big Move In Oil Prices Due?

Leave a Comment / Oil / By

On November 30th 2016, Bloomberg trumpeted the following headline, OPEC Confounds Skeptics, Agrees to First Oil Cuts in 8 Years. On the day before, (i.e. November 29th) oil prices had plunged 2.5% and the NYMEX Oil ETF was trading at $11.34 and the news drove the price up to $13.05 by January 6th, 2017 where it peaked and it’s been downhill ever since.

Was this a case of “Buy the Rumor Sell the News”?  Not quite since it did climb for a couple of months before reality set in, but the OPEC deal was doomed to fail pretty much from the beginning. First of all, U.S. Shale Oil wasn’t part of the deal and secondly the targets were set at previous peak production so there really weren’t any “cuts” simply limits to future growth. After falling to $9.89 on June 21st the price has rebounded a bit moving back above support so we could easily see a move to the resistance line or above. So have we seen the bottom and is this the beginning of  a new rally?    Or is this a counter-trend rally to the top of the channel or simply a fake and the beginning of a correction to the downside? In today’s post, Brian Noble looks at the question, “Is a big move in Oil Prices Due?”~ Tim McMahon, editor. 

Is A Big Move In Oil Prices Due? Read More »

Where Will Oil Prices Be in 2020?

Leave a Comment / Oil / By

The oil industry is notoriously cyclical. Perhaps because it takes so long to bring new supply on-line. As prices rise and the industry blossoms the oil machinery kicks into gear. Independants locate the oil and the fields get bought up by majors who bring it into production, this boosts supply. And then when the supply hits the market, prices go down, small over-leveraged players get squeezed and then go bankrupt, and exploration dries up. Eventually, this causes supply to slacken and prices begin rising again. And the cycle continues. In today’s article we’ll look at where oil prices could be 3 years on as increased demand meets Saudi production cuts and shale-oil production increases.

Where Will Oil Prices Be in 2020? Read More »

Big Oil Betting On Electric Vehicles?

Leave a Comment / Oil, Technology / By

I’ve been enamored with electric vehicles since long before they were commercially available. Way back in 1975, Mechanix Illustrated featured the “Urba Town car” and offered plans to build your own Electric Car. It required removing the body from a VW bug, and building a new cool looking body out of fiberglass. I spent a whopping $20, (which was much more valuable back then, not just because of inflation but because I was a poor college student without a job). It even had an option of adding a generator and making it a hybrid. Unfortunately, I never got around to using the plans but over the years I’ve enjoyed reading about quite a few successful conversions of various vehicles and I followed Tesla’s rise to fame in the electric vehicle market with marked enthusiasm hoping to one day, own one myself. Well, today Jon LeSage of Oilprice.com tells us that the electric vehicle may have finally reached the Tipping Point and other experts saying “By 2020 there will be over 120 different models of EV across the spectrum,” . ~Tim McMahon, editor.

Big Oil Betting On Electric Vehicles? Read More »

Oil Tanker

Is a Second OPEC Cut In The Cards?

Leave a Comment / Oil / By

In November 2016 with great fanfare OPEC announced a cut in production in an effort to drive up prices in light of the massive global supply glut partially the result of U.S. shale oil flooding the market. This supply glut had put every Oil producing country in fiscal straits (since most of the governments derive a substantial portion of their revenues from oil). It also squeezed the private U.S. shale oil producers who had racked up significant debt prior to the oil price crash. In the months since we have published several articles pertaining to the price of oil. Initially OPEC’s production cut drove up oil prices but in Oil Prices High Enough to Spark Shale Rebound we showed that Shale production was capping the oil price gains.

Is a Second OPEC Cut In The Cards? Read More »

Scroll to Top