Cheap oil now, high costs later

Their game plan is simple: Persuade the world that Saudi Arabia is the global ‘central bank of oil, the guarantor of supplies as a last resort’, as Mr Ronald E. Minsk, an energy expert who served in the Clinton administration, put it. Moral hazard doesn’t worry this bank. In fact, it thrives on it. The more hazard for us, the less for it. The question is: Should we trust this arrangement?

The Straits Times, Singapore

There’s enough oil left to last for 40 years, says BP

“There is no global resource or reserve shortage,” said Peter Davies, chief economist at BP.

He was speaking as the company published its annual review of world energy trends.

The report said that the amount of proved oil left in the world was 1.15trillion barrels, 10pc more than it estimated last year. It would take 41 years for this to be depleted, the report added.

Telegraph

Analysis: Is Saudi oil in peril?

United Press International obtained copies of e-mail exchanges between Saudi Aramco executives pointing out the ineffectiveness of Saudi forces in dealing with mounting threats of Islamist terrorism.

Interest

Severe energy shortage warned

China’s energy sector has to face two major challenges as growing energy supply will pose pressure on the environment and low energy efficiency has become a major constraint on the expansion of the energy sector and sustainable social and economic problems. Coal accounts for 80 percent of the country’s energy consumption.

People’s Daily

Tip-off foils new Iraq oil sabotage

“US soldiers have foiled a new sabotage attempt against Iraq’s key oil sector following three successful attacks earlier in the week, the US military says.”

ABC

Imminent Decline Of Oil And Gas

Jeanette Fitzsimmons showed Dr. Colin Campbell’s famous graph of global peak oil and several likely decline scenarios, explaining that extension of the plateau would make the decline even faster and worse.

Scoop Media

EIA Statistics

US Oil Imports US Oil Production US Oil Exports EAI

Vast oil reserves lie untapped in Iraq, awaiting investment

Vast oil reserves lie untapped Iraq’s crumbling oil industry awaits U.S. cash, expertise.

USA Today

U.S. addiction to oil puts it at mercy of risky characters

“Our pals in OPEC announced the other day that they’re boosting daily oil-production targets by 2 million barrels to bring down soaring gas prices.

It was a hollow gesture.
”

SF Gate

After the Oil Runs Out – Washington Post

If you’re wondering about the direction of gasoline prices over the long term, forget for a moment about OPEC quotas and drilling in the Arctic National Wildlife Refuge and consider instead the matter of Hubbert’s Peak. http://www.washingtonpost.com/wp-dyn/articles/A17039-2004Jun4.html

If Saudis pump more oil, will gasoline prices fall?

Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mass., suspects that US gasoline prices will drop after July, with extra Saudi production arriving on the East Coast

PetroleumWorld

Oil Discovered in Bosnia: Find Hushed Up for Years

According to

Kuwait earns half of year’s budgeted oil income in two months

“KUWAIT CITY : OPEC member Kuwait’s oil earnings in the first two months of the current 2004/2005 fiscal year make up about half of the budgeted oil income for the whole year, an independent economic think-tank said.”

CNA

Community Works With Solar Power

“If your goal is to save money, you’re not going to do it. If your goal is to save fossil fuel, that’s fine

Alberta conventional natural gas production likely peaked in 2001

Conventional natural gas production in Alberta likely peaked three years ago and a yearly decline of about 2.5 per cent should be expected, the province’s energy regulator said Thursday in its annual reserves report.

canada.com

Oil vs. jobs

“This is a disconnect; job growth is psychologically and practically the core of what’s happening in the economy,” said William Hummer, principal and market strategist at Wayne Hummer in Chicago. “In sharp contrast, the oil price is volatile. It’s certainly not meaningless, but it’s subject to so many variations that it doesn’t have the same importance.”

CNN – Money

Audio Interview: Chris Skrebowski

Chris Skrebowski, Editor of Petroleum Review, speaks with Julian Darley about the state of Saudi oil wells and their dependence on maximum reservior contact wells, as well as share options, financial incentives for unreasonably favorable expensing of oil fields, and Shell Oil.

GlobalPublicMedia

UAE to Pump Extra 400,000 Bpd in June

“In the present circumstances, I believe that the increase must be above two million bpd in order to be effective, but these issues will be discussed when we meet in Beirut,” Nasseri said.

Yahoo – AP

Iraq and the Problem of Peak Oil

‘By some estimates,’ Cheney stated, ‘there will be an average of two percent annual growth in global oil demand over the years ahead, along with, conservatively, a three percent natural decline in production from existing reserves.’ Cheney ended on an alarming note: ‘That means by 2010 we will need on the order of an additional fifty million barrels a day.’ This is equivalent to more than six Saudi Arabia’s of today’s size.

currentconcerns.ch

The die-off begins at the bottom

This one is from my local paper. Looks like the people on the bottom rung are already starting to feel the squeeze. Growing requests for help surprises N.C. charitiesCHARLOTTE, N.C. — Social workers and charities say rising gasoline and utility bills have sent more people into financial crisis during April and May, usually the slowest […]

Militants kill 11, take hostages in assault on Saudi oil sector

AL-KHOBAR, Saudi Arabia : Suspected Islamist militants killed at least 11 people, including an American and an Egyptian boy, and then holed up with hostages in a series of spectacular attacks on oil facilities in Saudi Arabia.

more

Mabro On The Futures Markets And The Price Of Oil

If OPEC believes that a tight market will continue in the near future it should cease talking temporarily about quotas and simply say that demand will be met up to the limit of capacity and that after that point is reached the entire game is in the hands of the market.

PetroleumWorld

New air-quality rules possible for Alyeska

Alyeska is already reorganizing its operations to cope with reduced oil flow through the line, said spokesman Mike Heatwole. That reorganization is likely to include changes at the ballast-water-treatment plant, which is processing less water as oil flow drops, he said.

The peak oil flow of 2 million barrels a day is now down to half that, because major oil fields on the North Slope are mature and in decline.

Forbes.com

Royal Dutch Petroleum Company Annual Report 2003

Capital investment in 2003 = $9.2 billion
Net income in 2003 = $12,496 million
new projects include renewed exploration in Saudi Arabia and Gas to Liquids projects.

Largest project was Athabasca Oil Sands Project in Canada, with a total investment of $4.2 billion.

Full Reports on Shell.com

Cooling China’s economy and red-hot oil prices

The single most important factor for the oil market this year will be the ability of China to cautiously slow its rate of economic growth. Last year, China became the second-largest oil consuming country, surpassing Japan, and has accounted for 40 percent of the world’s oil-demand growth between 2000 and 2004.

Asia Times

Global Instability Helping Push Up Oil Prices

Experts say the current high prices for crude oil and gas are more than just a result of growing demand. The costs involved in shipping oil from politically shaky places like the Middle East and Angola — increased insurance premiums, higher salaries for workers — are also playing a significant role in pushing up prices, experts say.

Audio on NPR

500,000 due to strike against high gasoline prices

The Lebanese Army staged a show of force to deter troublemakers Friday. Troops and armored vehicles took up positions in the suburb, and elite soldiers guarded the nearby highway to the airport.

Yahoo |

Daily Star, Lebanon

Hollywood Activist Group TV Ad Targets Cost of Gas

Hollywood activists unveiled a TV ad on Thursday to air over Memorial Day weekend accusing President Bush and the oil industry of robbing Americans at the gas pump.

Reuters on Yahoo | Watch the Ad

CNN Special: GAS PAINS

includes articles such as:
“U.S.: Mexico to the rescue on oil”
“An oily monkey on our back”
realvideo “Stop whining!”

CNN.com

Gasoline Price Rises $0.14 in 14 Days

(CNN) — Gas prices in the United States continued to climb sharply over the past two weeks, rising more than 14 cents to an average of $2.07 per gallon, according to a nationwide survey released Sunday.Drivers in San Diego, California, paid the most, at $2.36 per gallon of self-serve regular. Those in Charleston, South Carolina, […]

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