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oil prices

Oil Prices Soar on Economic News and G20 Meeting

As we write this blog, WTI prices are up over 7% this morning with crude oil trading slightly under $52 a barrel.  Yesterday, oil prices were in the $47-$48 range as the value of the US dollar was rising and the weekly inventory numbers were sour.  =>Continue Reading

U.S. Energy Demand Contraction Documented

Yesterday, the U.S. Energy Information Agency released its March 2009 Energy Monthly Report showing that total energy consumption fell 2% in 2008 while total energy production rose by 3.3%.  These trends help explain the sharp fall in hydrocarbon fuel prices during the second half of last year.  In the month of January, total energy consumption increased 2% from the same month in the prior year, but by December it was down 3%.  =>Continue Reading

Energy and Environment Changes Are Coming - Prepare for Heat

Sunday's New York Times carried several columns discussing the impending need for dramatic action on carbon emissions before the damage from global warming overwhelms the world.  One column was by Thomas Friedman arguing that if one follows climate science you see that some of the world's best (I'm not sure who determines that status) scientists they are warning that climate change is happening faster and will bring bigger changes quicker thn we anticipated just a few years ago.  Could the fact that there is a meeting of climate change scientists and government policy makers in th

Future Oil Supply At Risk - Price Spike Risk Increased

A new study is scheduled to be released today by Cambridge Energy Research Associates (CERA) detailing why they believe the fall in oil prices will mean less future oil supply.  The outcome is a greater risk of an oil price spike sometime within the next five years.  Of course, the key to the timing of a crude oil price spike will be the pace of demand for oil, which is currently suffering through its second consecutive year of falling global oil consumption. =>Continue Reading

Suncor and Petro-Canada: Is the Merger Genie Out of the Bottle?

This morning Suncor and Petro-Canada announced plans to merge in a stock-for-stock transaction valued at $15 billion.  With the assumption of $3 billion in debt, the total transaction is valued at $18 billion.  This deal is the 5th largest global M&A transaction this year and the 6th largest Canadian deal ever.  It is the 10th largest oil and gas merger ever and the largest energy deal since December 2006 when Norsk Hydro and Statoil ASA agreed to merge in a deal valued at $30 billion. =>Continue Reading

OPEC Speaks: Urges Greater Member Compliance With Cut

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The 152nd meeting of the oil ministers of the members of OPEC ended Sunday afternoon with a press release announcing that the organization was urging its members to fully comply with current production quotas.  The press release discussed the reduced global economic projections and their negative impact on oil demand.  =>Continue Reading

Why Are Oil Prices Recovering?

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Thursday oil futures prices jumped by more than 11% taking oil above $47 a barrel.  The futures are up another $0.87 (as this blog is being written) pushing the price close to $48.  So after being hammered on Wednesday when crude oil inventories rose rather than fell as analysts expected, why is crude rising? =>Continue Reading

Marketmakers Energy Conference Presentation

Last Thursday I presented an outlook for the oilfield service industry at a conference in Houston.  Attached are the slides from the presentation.  I did not have a prepared text.

The presentation focused on how dramatically the oil market changed in the fall of 2008, which coincided with Hurricane Ike hitting the Gulf Coast while an economic and financial hurricane was hitting New York.  Those events changed the face of the financial industry and in turn the global energy business. =>Continue Reading

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