Insight and inspiration in turbulent times.
In recent years, while fracking’s supporters were shouting “drill baby drill” the oil industry began lobbying behind the scenes to undercut programs designed to make vehicles more fuel efficient or less reliant on fossil fuels.
Shale oil, which the Energy Information Administration projects will represent a rising proportion of American oil supplies in the coming decades, has a surprising Achilles heel: its low octane levels, which make it a poor fit for the high-efficiency car engines of the future.
The estimate of three years of easily affordable driving depends primarily on how long the current fracking boom, which is holding down the global oil price, can be sustained.
Three more years? That’s pretty scary! Surely there must be a mistake in that headline.
Gasoline prices in the United States have risen sharply recently, leading some newspapers to round up the usual suspects.
Much of America’s new found oil wealth is being shipped abroad, which is worrying Americans who figured they had a Made-in-the-USA solution to the country’s energy needs.
A mid-week update. The surge in oil prices which took NY oil futures from $86 a barrel in mid-April to over $96 continued this week with June futures closing Wednesday at $96.62. The spread between NY and London futures continues to narrow with London currently trading at a premium of only $7.72– the lowest since January 2011. The dollar a barrel jump in NY futures on Wednesday came despite a rather small, 230,000 barrel, increase in US crude inventories and a 57,000 b/d increase in US crude production to 7.37 million b/d — the highest level since February 1992.
A midweek update. Wednesday was a down day with oil, natural gas, gasoline futures, and the equity markets all dropping sharply. NY oil futures were down 2.8 percent, closing at $94.45, as the EIA reported that US crude stocks rose by an unexpected 2.7 million barrels last week to the highest level in 22 years.
A mid-week update.
A weekly update, including:
-Oil and the global economy
-The Middle East
-China -Venezuela -Quotes of the week -The Briefs
A weekly roundup, including:
-Oil and the global economy
-Middle East
-US Gasoline Prices
-The Keystone Decision
-Quotes of the week
-Briefs
A midweek update…New York oil traded in a narrow range around $93 a barrel this week, closing a touch higher on Wednesday on better news about the US economy. Brent continued last week’s plunge closing on Wednesday at $111.89 a barrel, down $6 a barrel in the last 10 days. The indecisive Italian elections and the renewed nuclear talks with Iran were the main factors behind Brent’s plunge.
