Home » Posts tagged 'oil reserves' (Page 2)

Tag Archives: oil reserves

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Get Ready for Oil Deals: Shale Is Going on Sale

Get Ready for Oil Deals: Shale Is Going on Sale

(Bloomberg) — A decision by Whiting Petroleum Corp., the largest producer in North Dakota’s Bakken shale basin, to put itself up for sale looks to be the first tremor in a potential wave of consolidation as $50-a-barrel prices undercut companies with heavy debt and high costs.

For the first time since wildcatters such as Harold Hamm of Continental Resources Inc. began extracting significant amounts of oil from shale formations, acquisition prospects from Texas to the Great Plains are looking less expensive.

Buyers are ultimately after reserves, the amount of oil a company has in the ground based on its drilling acreage. The value of about 75 shale-focused U.S. producers based on their reserves fell by a median of 25 percent by the end of 2014 compared to 2013, according to data compiled by Bloomberg. That’s opening up new opportunities for bigger companies with a better handle on their debt, said William Arnold, a former executive at Royal Dutch Shell Plc.

“In this market, there are whales and there are fishes, and the whales are well armed,” said Arnold, who also worked as an energy-industry banker and now teaches at Rice University in Houston. “There are some very vulnerable little fishes out there trying to survive any way they can.”

Smaller producers with significant debt that depend on higher prices to make money are the most likely early targets for buyers such as Exxon Mobil Corp. or Chevron Corp., companies that have bided their time for years as the value of some shale fields soared to $38,000 an acre from $450 just a few years earlier.

…click on the above link to read the rest of the article…

 

Libya Warns of Oil Shutdown as Attacks Escalate

Libya Warns of Oil Shutdown as Attacks Escalate

(Bloomberg) — Libya’s state-run oil company warned that it would shut production at all fields if authorities in the divided nation fail to contain an escalation of attacks on facilities that cut crude output to a year-low.

“If these incidents continue, National Oil Corp. will regrettably be forced to stop all operations at all fields in order to preserve the lives” of employees, the company said in a statement on its website. “National Oil Corp. urges the Ministry of Defense and the Petroleum Facilities Guard to take the appropriate measures to protect oil sites.”

The North African nation’s oil production was reduced by 180,000 barrels a day after a fire at a pipeline that carries crude to the eastern Hariga port, National Oil spokesman Mohamed Elharari said by phone in Tripoli. Hariga, near Tobruk, has oil left in storage for exports and the last ship to load there was the Greek-flagged Minerva Zoe, he said.

Libya, holder of Africa’s largest oil reserves, was producing 350,000 barrels a day in January, Elharari said at the time. The nation may be producing less than 200,000 barrels a day after the pipeline fire. The previous lowest daily average was in March 2014, at 150,000 barrels. A member of the Organization of Petroleum Exporting Countries, Libya was producing 1.6 million barrels a day before the 2011 rebellion that ended Muammar Qaddafi’s 42-year rule.

…click on the above link to read the rest of the article…

 

Study: Foreign Countries Intervene in Civil Wars 100 Times More Often when Afflicted Countries Have Oil

Study: Foreign Countries Intervene in Civil Wars 100 Times More Often when Afflicted Countries Have Oil

The Independent reports that a new study conducted in the Universities of Portsmouth, Warwick and Essex, and published in the Journal of Conflict Resolution, finds that “hydrocarbons play an even bigger role in conflicts” than “conspiracy theorists” ever imagined.

…foreign intervention in a civil war is 100 times more likely when the afflicted country has high oil reserves than if it has none.

…a third party is 100 times more likely to intervene when the country at war is a big producer and exporter of oil…

…suggesting hydrocarbons were a major reason for the [US/UK] military intervention in Libya … and the current US campaign against Isis in northern Iraq.

“After a rigorous and systematic analysis, we found that the role of economic incentives emerges as a key factor in intervention,” said co-author Dr Vincenzo Bove, of the University of Warwick. “Before the Isis forces approached the oil-rich Kurdish north of Iraq, Isis was barely mentioned in the news. But once Isis got near oil fields, the siege of Kobani in Syria became a headline and the US sent drones to strike Isis targets,” he added.

[The study] found that the decision to intervene was dominated by the third-party’s need for oil, far more than historical, geographic or ethnic ties.

The US maintains troops in Persian Gulf oil producers and has a history of supporting conservative autocratic states…

David Cameron was instrumental in setting up the coalition that intervened in Muammar Gaddafi’s Libya in 2011, a country with sizeable oil reserves.

It is also important to remember that often control over resources, rather than mere access, is more important to a regime seeking an illegal stranglehold over international affairs:

 

…click on the above link to read the rest of the article…

The Deep State Strategy: Burn Everyone Else’s Oil First, Leave Ours in the Ground

The Deep State Strategy: Burn Everyone Else’s Oil First, Leave Ours in the Ground

The U.S. Deep State is in favor of Saudi Arabia’s strategy of forcing production cuts on its rivals and marginal producers for two profound reasons.

It is widely presumed that if the U.S. government isn’t actively concerned about the financial carnage being visited upon the domestic oil/gas sector, it should be actively concerned for self-evident reasons. These self-evident reasons include lay-offs, cratering profits and a mountain of shale-oil based debt that is in danger of default as revenues fall off a cliff.
The political class that must be re-elected to retain power is obligated to publicly express concern about the negative impact on employment, profits and domestic production. Whether the political class can do anything about the lay-offs and decline in oil/gas revenues is another thing.
But we should also keep our eye on the political system which retains power regardless of which party or politico is in office: the Deep State.The Deep State exists to maintain the essential infrastructure of global power and domestic stability. Its class of officials are paid to take the long view and consider the chessboard not from the point of view of winning re-election in two or four years but on what might unfold in the decades ahead that would challenge U.S. supremacy and the stability of the current world system and domestic economy.

…click on the above link to read the rest of the article…

 

World Proved Oil Reserves Data A Work Of Fiction

World Proved Oil Reserves Data A Work Of Fiction.

The EIA publishes Annually a list of World Proved Reserves of Crude Oil. Though all charts in this post use the EIA data, BP, the IEA and virtually every other reporting agency in the world uses basically the same data. It is my contention that this data is misleading and totally meaningless. This is especially true of OPEC Middle East Reserves. However because this data is taken as gospel by the media and perhaps 90% of energy analysts in the world, this misinformation becomes a serious problem.

But first let’s look at the data. It dates to 2014 in most cases but some data only goes to 2013. All data is billion barrels of reserves.

EIA World Proved Reserves

The EIA said we had 1,646 billion barrels of proved reserves in 2013. Other agencies put that figure a bit higher but we will go with this. And just where are these reserves located?

…click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
Click on image to purchase