Peak Oil Review – September 1

1. Production, prices and the Gustav factor

2. US Natural Gas Supply

3. EU and Russia

4. Briefs

1. Production, prices and the Gustav factor

Despite the extensive publicity given to the forecast that hurricane Gustav was likely to cross through the Gulf oil fields and slam into Louisiana as a very powerful storm, the oil markets remained remarkably calm all week. Oil closed on Friday at $115 barrel, about where it opened on Monday after touching $120 during the week. The markets were impressed by assurances that the oil industry was in much better shape to weather a powerful storm than it was three years ago. Offshore platforms have been jacked up and strengthened, more backup power was in place for pumps, refineries had better flood walls, and the IEA pledged that emergency stockpiles of crude and gasoline would be made available. For much of the week the looming storm competed with downward pressures from a falling Euro and the reopening of the 1.2 million b/d pipeline across Turkey. […]

2. US Natural Gas Supply

Last week, the EIA reported an injection of 102 bcf of additional natural gas into US underground storage during the prior week. US natural gas reserves are now 71 bcf above the 5-year average. Natural gas prices have dropped 42 percent since early July. Last week