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oil prices

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

Is WTI About To Become History?

Platts, the division of McGraw-Hill that tracks oil markets and oil prices, announced it plans to launch a new physical oil price marker that it believes better reflects market dynamics in the United States.  The historical measures of oil prices, and in turn the health of the global oil market, have been West Texas Intermediate (WTI) and Brent.  WTI is generally associated with the U.S.

Energy Demand Shows Further Signs of Recovery

Yesterday, crude oil futures fell by more than $4 a barrel to settle at $40.15 as negative economic and financial news sent shivers of fear about future oil demand.  At the same time, the Southeast Asia brokerage firm, CLSA, reported that its monthly survey of Chinese purchasing managers' confidence showed a rise for the third consecutive month.  The improvement in this leading indicator dates back to the implementation of the Chinese government's economic stimulus plan. =>Continue Reading

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