Headlines like the one screaming the oil crash has caused losses to date of about $1.3 trillion, should be ignored by those that weren't affected by the disaster, as it has brought about opportunities rarely seen in one's investing lifetime.
The demand for oil is never going to go away, and the price it is now at won't remain at that low level for a long period of time. Producers will simply cut back until the price starts to rise to a level that is profitable to them. That of course has already happened, and it will take time until the effect of it works its way through the market.
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Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Thursday, August 6, 2015
Saturday, January 26, 2013
Giant Oil Field Found in Australia
A giant oil field has been found in south Australia that could hold as much as 233 billion barrels of oil, valued at today's prices at over $20 trillion. The oil is located in the Arckaringa Basin, an area surrounding Coober Pedy.
Estimates at this time are anywhere from 3.5 billion to 233 billion barrels of oil.
While the range has a huge disparity, Linc Energy is moving towards securing financing so it can drill six horizontal wells to confirm and identify the amount of oil estimated to be available for extraction.
Barclays Bank has been hired by Linc to secure financing for the project, which for the next stage is estimated to cost from $150 to $300 million.
Assuming the probable upper target of the estimates, the range is expected to come in at from 103 billion barrels of oil to 233 billion barrels.
Estimates at this time are anywhere from 3.5 billion to 233 billion barrels of oil.
While the range has a huge disparity, Linc Energy is moving towards securing financing so it can drill six horizontal wells to confirm and identify the amount of oil estimated to be available for extraction.
Barclays Bank has been hired by Linc to secure financing for the project, which for the next stage is estimated to cost from $150 to $300 million.
Assuming the probable upper target of the estimates, the range is expected to come in at from 103 billion barrels of oil to 233 billion barrels.
Wednesday, October 10, 2012
U.S. Oil Stockpiles Rise for Second Straight Month
For the second month in a row U.S. oil wholesalers boosted their stockpiles, pushing the benchmark price of oil up past the $93 mark in morning trading.
According to the Commerce Department, oil wholesalers in the United States raised their inventory by 0.5 percent in August, following a 0.6 percent jump in July. Also significant is the sales of oil wholesalers climbed by the largest margin since February 2012.
The reason for the rise in oil prices in response to the data is usually it signals wholesales believe oil sales will rise in the near term.
Gasoline for the national average in the United States remains at $3.81 a gallon.
Thursday, April 22, 2010
Exxon (NYSE:XOM) Strikes Oil, Natural Gas at Bass Strait
ExxonMobil (NYSE:XOM) has struck oil and natural gas at its Bass Strait site in southeastern Australia, where they are in a joint venture with BHP Billiton (NYSE:BHP).
The well striking oil and gas, located in the prolific Gippsland Basin, hasn't been confirmed as whether or not it's commercial, but if it is like similar wells in the area, it has a strong possibility that it is, although we'll have to wait for confirmation on that.
Exxon and BHP Billiton are 50/50 partners in the venture, with Exxon being the operating partner.
The well striking oil and gas, located in the prolific Gippsland Basin, hasn't been confirmed as whether or not it's commercial, but if it is like similar wells in the area, it has a strong possibility that it is, although we'll have to wait for confirmation on that.
Exxon and BHP Billiton are 50/50 partners in the venture, with Exxon being the operating partner.
Thursday, April 8, 2010
Oil, Unemployment and Economic Recovery
Excuses being prepared for why an economic recovery was reported as being real
Everywhere I read, I continually hear what sounds like excuses for why the so-called recovery won't be continuing on. Now I have no doubt there is no economic recovery, and the most recent excuse for that, from the mainstream media perspective, is the increasing price of oil.
Before we get into that, think for a moment if you're a consistent reader of economic news, on how many times over the last several months you've heard the term "unexpected" used when referring to economic data.
The latest "unexpected" referred to the number of new unemployment claims which were of course, "unexpected.
Why is it this way? That's easy. Reporters for mainstream media, and some of the sycophants of the Obama administration simply can't think in terms of there being no recovery after the trillions being spent to make sure there is one.
That would mean the government has failed, and they should have listened to those who told them and other that we should allow the market to take care of the problem and to leave their hands off of it.
Now for oil, it is rising in anticipation of what the industry is hoping is a robust summer vacation time for travelers, but I'm highly suspicious of that being what emerges. I think people will stay closer to home and continue to do more local and inexpensive activities.
So the assumption that oil will continue to rise in price can't be a certainty because of the continuing weak economy around the world, and especially in America.
what is happening, in my estimation, is mainstream media around the world are preparing to explain their failure in identifying the outrageous spending by governments and central banks and how it has been a disaster which future generations will have to pay for with almost no results. Of course they did identify it, but it'll be spun as something they didn't see, and are raising a bunch of bogeyman like oil and other "unexpected" events which brought their faulty conclusions into the light.
Of course the Keynesian economists are already preparing the same strategy, as they're made to look like the complete idiots they are, as they as a group supported the outrageous government spending which Keynesian economics is founded upon, and of course will be exposed as the complete failure it has always been; it just takes years for it to be exposed as debt is piled on, taxes are raised and money printed which can no longer cover up the hoax that it is.
Now other commodities are also being added to the mix as to why there may be economic problems ahead of us, but that misses the point. A number of economists and others have pointed out that printing money will result in inflation. Now that inflation is coming, the analysis is higher prices could keep the economic recovery from happening.
Another factor is demand, which always pushes prices higher if the demand is strong and supply weak, and that has been predictable for a long time.
All of this is saying the hoopla and stupidity of mainstream media in promoting the lie that we're in a recovery when in fact we haven't even began a recovery, has them scrambling to explain why that isn't so after reporting so faithfully on behalf of the Obama administration.
In other words: damage control. All the excessive government spending was for one reason, and that was an attempt to buy time in hopes there would be a legitimate recovery which would cover up the outrageous behavior of politicians, who for populist reasons allowed the outrage to continue, with little chance of it having a chance to succeed, although the politicians didn't know that, but there advisers and those in economic positions as well.
Now the mainstream media is positioning themselves in an attempt to keep from looking like complete buffoons in the matter, but it is far too late for that, as they committed to quickly, too long and too deeply to what was coming out of the White House concerning the alleged recovery, and now they'll have to again pay the price for becoming increasingly irrelevant concerning being legitimate sources of news, and more the parrots they've sadly become.
Everywhere I read, I continually hear what sounds like excuses for why the so-called recovery won't be continuing on. Now I have no doubt there is no economic recovery, and the most recent excuse for that, from the mainstream media perspective, is the increasing price of oil.
Before we get into that, think for a moment if you're a consistent reader of economic news, on how many times over the last several months you've heard the term "unexpected" used when referring to economic data.
The latest "unexpected" referred to the number of new unemployment claims which were of course, "unexpected.
Why is it this way? That's easy. Reporters for mainstream media, and some of the sycophants of the Obama administration simply can't think in terms of there being no recovery after the trillions being spent to make sure there is one.
That would mean the government has failed, and they should have listened to those who told them and other that we should allow the market to take care of the problem and to leave their hands off of it.
Now for oil, it is rising in anticipation of what the industry is hoping is a robust summer vacation time for travelers, but I'm highly suspicious of that being what emerges. I think people will stay closer to home and continue to do more local and inexpensive activities.
So the assumption that oil will continue to rise in price can't be a certainty because of the continuing weak economy around the world, and especially in America.
what is happening, in my estimation, is mainstream media around the world are preparing to explain their failure in identifying the outrageous spending by governments and central banks and how it has been a disaster which future generations will have to pay for with almost no results. Of course they did identify it, but it'll be spun as something they didn't see, and are raising a bunch of bogeyman like oil and other "unexpected" events which brought their faulty conclusions into the light.
Of course the Keynesian economists are already preparing the same strategy, as they're made to look like the complete idiots they are, as they as a group supported the outrageous government spending which Keynesian economics is founded upon, and of course will be exposed as the complete failure it has always been; it just takes years for it to be exposed as debt is piled on, taxes are raised and money printed which can no longer cover up the hoax that it is.
Now other commodities are also being added to the mix as to why there may be economic problems ahead of us, but that misses the point. A number of economists and others have pointed out that printing money will result in inflation. Now that inflation is coming, the analysis is higher prices could keep the economic recovery from happening.
Another factor is demand, which always pushes prices higher if the demand is strong and supply weak, and that has been predictable for a long time.
All of this is saying the hoopla and stupidity of mainstream media in promoting the lie that we're in a recovery when in fact we haven't even began a recovery, has them scrambling to explain why that isn't so after reporting so faithfully on behalf of the Obama administration.
In other words: damage control. All the excessive government spending was for one reason, and that was an attempt to buy time in hopes there would be a legitimate recovery which would cover up the outrageous behavior of politicians, who for populist reasons allowed the outrage to continue, with little chance of it having a chance to succeed, although the politicians didn't know that, but there advisers and those in economic positions as well.
Now the mainstream media is positioning themselves in an attempt to keep from looking like complete buffoons in the matter, but it is far too late for that, as they committed to quickly, too long and too deeply to what was coming out of the White House concerning the alleged recovery, and now they'll have to again pay the price for becoming increasingly irrelevant concerning being legitimate sources of news, and more the parrots they've sadly become.
Wednesday, March 31, 2010
Bank of America (NYSE:BAC): Oil at $90 a Barrel
Will oil reach $90 a barrel in 2010?
Bank of America (NYSE:BAC) say they see oil reaching as high as $90 a barrel before the end of 2010, although others believe prices will stay close to where they're at today for the remainder of the year.
Of course most of this is all speculation, as we need to wait to see whether Americans loosen up their wallets in the summer months and travel more, or decide to stay closer to home. Much will depend on that as to the demand oil will have.
Some reasons cited for prices remaining lower is the large global supply and probable lower demand will keep prices in check.
It's possible prices could even fall in the summer months, again, depending on the traveling habits of consumers.
Bank of America (NYSE:BAC) say they see oil reaching as high as $90 a barrel before the end of 2010, although others believe prices will stay close to where they're at today for the remainder of the year.
Of course most of this is all speculation, as we need to wait to see whether Americans loosen up their wallets in the summer months and travel more, or decide to stay closer to home. Much will depend on that as to the demand oil will have.
Some reasons cited for prices remaining lower is the large global supply and probable lower demand will keep prices in check.
It's possible prices could even fall in the summer months, again, depending on the traveling habits of consumers.
Thursday, March 18, 2010
Chevron (NYSE:CVX) LA Refinery Flaring Under Control
Chevron's LA Refinery Should be Back to Full Operations Soon
Problems from their instrument air system resulted in flaring at the LA-region refinery of Chevron (NYSE:CVX), which produces 279,000 barrels a day. It is located in El Segundo, California.
Chevron spokesman Rod Spackman said concerning the flaring that "The issues ... were corrected quickly and we should be back to normal shortly."
News of the incident was released when Chevron had to contact California pollution regulators to report the problem.
Originally the company said the unplanned flaring could continue through Thursday morning.
Problems from their instrument air system resulted in flaring at the LA-region refinery of Chevron (NYSE:CVX), which produces 279,000 barrels a day. It is located in El Segundo, California.
Chevron spokesman Rod Spackman said concerning the flaring that "The issues ... were corrected quickly and we should be back to normal shortly."
News of the incident was released when Chevron had to contact California pollution regulators to report the problem.
Originally the company said the unplanned flaring could continue through Thursday morning.
Saturday, March 13, 2010
UBS (NYSE: UBS) Looking at Commodities
UBS Commodity Investing
Even though UBS (NYSE: UBS) largely got out of the commodities business during the economic crisis, and sold some of their holding in that sector at that time, officials at the company confirm they are again poised to enter that market again in the near future; possibly sometime in 2010.
While selling off most of its commodities assets, UBS did hold on to exchange-traded and index funds, and also it precious metals business. Its energy and base metals business it sold to Barclays (LON:BARC), which included oil, gas and power supplied to the U.S.
Some of their rivals ramped up their commodity play in 2009 and were very successful in their respective commodity units, generating good income, and positioned to continue on with that success in 2010 and beyond; making UBS somewhat behind their major rivals in that regard, and so we'll see them make a number of moves to shore up their depleted commodities investment unit soon.
UBS Commodity Investing
Even though UBS (NYSE: UBS) largely got out of the commodities business during the economic crisis, and sold some of their holding in that sector at that time, officials at the company confirm they are again poised to enter that market again in the near future; possibly sometime in 2010.
While selling off most of its commodities assets, UBS did hold on to exchange-traded and index funds, and also it precious metals business. Its energy and base metals business it sold to Barclays (LON:BARC), which included oil, gas and power supplied to the U.S.
Some of their rivals ramped up their commodity play in 2009 and were very successful in their respective commodity units, generating good income, and positioned to continue on with that success in 2010 and beyond; making UBS somewhat behind their major rivals in that regard, and so we'll see them make a number of moves to shore up their depleted commodities investment unit soon.
UBS Commodity Investing
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