The press reports this morning that members of Opec have joined Saudi Arabia in boosting oil output to make up the fall in output from Libya. The countries concerned – Kuwait, UAE and Nigeria – have all promised to boost production. In many ways you could argue that OPEC’s gamble is trying to delay the … Read More
Oil Price
UK Gov: its “crazy” not to prepare a low-carbon future
Three years ago during the last oil price hike when oil reached $150 a barrel, there were repeated calls for a concerted effort for the international community to finally wean itself off its chronic oil addiction. There were repeated calls that the combined financial crisis and energy crunch was a prefect reason to kick-start the … Read More
If We Reach $100 a Barrel: Blame the Bankers
Only a couple of weeks ago Iran’s OPEC governor Mohammad Ali Khatibi was saying the crude oil market is oversupplied and prices of $70 and $80 are more nominal than real. “If we compare the current prices with the real prices of a few years ago, [today’s real] prices will stand at USD 50 per … Read More
What About the Demand-Side Warning?
It’s interesting how peak oil continues to grab the headlines. If you log on to the Independent newspaper this morning the “Exclusive” headline is “Warning: Oil supplies are running out fast.” The paper’s story was based on an interview with Fatih Birol, the lead economist with the International Energy Agency (IEA) who talked how depletion … Read More
Economic Collapse Leads to Supply Crunch and Less Renewables
First it was the credit crunch, now it looks like an oil crunch. The International Energy Agency is warning that, due to the economic downturn and reduced investment in oil, when demand picks up next year there may not be enough oil to go round. Nobuo Tanaka, the IEA’s executive director, said that he expected … Read More
“I Will Point Out Hypocricy”
As the price of oil plummets below $50 a barrel, the price of gasoline falls too. The high oil prices and record gas prices of the summer now seem years away. As we fill up our cars, the temptation will be that cheaper motoring will mean more motoring. But not if the friendly folks from … Read More
Gaddafi and Chávez Invited to Gordon’s Oil Summit
Britain’s embattled Prime Minister Gordon Brown faces a growing call from trade unions for his government to impose a $2 billion windfall tax on energy companies, who have made billions from the high oil price. Whilst all the indications are that this will be ignored, Brown has come up with the novel idea of hosting … Read More
There’s nowt like high oil prices
While all the indications are that we are heading for an oil crunch soon, in the short term the high oil prices have finally had an effect on demand. There is an old saying in the world’s financial institutions that “nothing cures high prices like high prices,” and it certainly seems as true today as … Read More
The oil supply crunch is coming….
For those who thought the oil price was on a steady downward spiral after its recent highs, it is time to think again. Prices have risen again as the conflict between Russia and Georgia raised concerns that Caspian supplies, especially through the Baku-Tblisi-Ceyhan pipeline, may be disrupted. But forget any short-term fluctuations, the big crunch … Read More
Airlines Spin Anti Oil-Speculation Website
Log onto the website StopOilSpeculationNow.com and you might think that it’s a plea by poor American consumers who are being hit by rocking oil prices. But you would be wrong: it is a PR effort by the Air Transport Association of America. The adverts include one where a globe is being squeezed with a drop … Read More