Saudi Arabia’s Energy Minister Prince Abdulaziz recently claimed that the Kingdom will be the world’s biggest hydrocarbon producer “even” in 2050. But is this just a boast? Or can they live up to it?
Saudi Arabia Eyes Total Dominance In Oil And Gas Read More »
Almost everyone has heard the old joke, “Where does an 800 pound Gorilla sleep?” The answer of course is, “Anywhere he wants to”. For most of the last century Saudi Arabia has been the 800 pound gorilla of the oil industry. But recently people have begun wondering whether Saudi Arabia is losing some clout. In today’s article Tsvetana Paraskova of Oilprice.com will look at just where Saudi Arabia stands.
Is Saudi Arabia Still an 800 Pound Gorilla Read More »
In the following article from OilPrice.com we see a major merger in the works to expand Saudi Aramco from just energy into chemical products. In previous articles we’ve discussed the possibility that Saudi Arabia is looking for alternative revenue streams as the world shifts toward renewable energy.Â
Merger Mania: The World’s Largest Oil Company And Petrochemical Company Merge Read More »
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.
$100 Oil Is A Distinct Possibility Read More »
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.
Oil Price War: Saudi Arabia vs. Iran Read More »
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…
Can Saudi Arabia Prevent The Next Oil Shock? Read More »
Although the U.S. oil situation is on the upswing there are a variety of factors affecting a number of other countries like Iran, Iraq, Saudi Arabia, Venezuela, and Russia, that could lead to instability in the world oil market. In today’s article by Nick Cunningham of Oilprice.com we will look at a few of the possibilities
Oil Market Fears: War, Default And Nuclear Weapons Read More »
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 »
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 »
If you follow the oil news, you’ve probably heard about the deal between the energy ministers from Saudi Arabia, Russia, Qatar, and Venezuela. When the news was announced Oil prices jumped. But if you think this deal actually means anything I’ve got a bridge to sell you. So before you go buying any bridges or buying any oil future’s contracts, let’s take a look at the facts.
The Truth About the Russia-Saudi Oil Deal Read More »
