Exxon Mobil and Shale
Slow to get into the enormous potential represented by shale fields, Exxon Mobil has now smelled the roses and is sprinting to catch up with some of its rivals who have been quietly working to cut costs to extract oil and gas from teh shale.
This is why Exxon recently bid $31 billion to acquire XTO Energy (NYSE:XTO) to get back ahead of the curve. XTO is the leading company which extracts energy from what is called "unconventional" sources.
With most large discoveries behind oil and gas companies (possibly other than those under the ocean floor), large energy companies are looking for new sources of gas and oil, with shale being the next wave of source for the industry.
Exxon Mobil and Shale
Showing posts with label Oil Inventory. Show all posts
Showing posts with label Oil Inventory. Show all posts
Wednesday, March 10, 2010
Wednesday, February 24, 2010
API: Crude Oil Inventories Drop
Crude Oil Inventories Drop
The American Petroleum Institute said yesterday that crude oil inventories in the United States dropped by 3.14 million barrels last week to 334.4 million.
Distillate fuels fell by 834,000 barrels to 158.7 million, which inventories for gasoline increased by 1.74 million barrels to 232 million.
Today the Energy Department will release their inventory report as 10:30 a.m. EST.
It'll be interesting to see if the report from the API lines up with the Department of Energy report, as they do move in different direction about 25 percent of the time over the last several years.
The major reason for the discrepancy is the API collects data on a voluntary basis while the DOE does on a required basis.
With consumer sentiment dropping to 46, people are starting to be concerned over the alleged economic recovery, which most really aren't feeling in their pocketbook, and are starting to doubt as being real.
With that in mind, we'll probably find out inventories have in fact risen, as people again hold back on spending and travel.
Crude Oil Inventories Drop
The American Petroleum Institute said yesterday that crude oil inventories in the United States dropped by 3.14 million barrels last week to 334.4 million.
Distillate fuels fell by 834,000 barrels to 158.7 million, which inventories for gasoline increased by 1.74 million barrels to 232 million.
Today the Energy Department will release their inventory report as 10:30 a.m. EST.
It'll be interesting to see if the report from the API lines up with the Department of Energy report, as they do move in different direction about 25 percent of the time over the last several years.
The major reason for the discrepancy is the API collects data on a voluntary basis while the DOE does on a required basis.
With consumer sentiment dropping to 46, people are starting to be concerned over the alleged economic recovery, which most really aren't feeling in their pocketbook, and are starting to doubt as being real.
With that in mind, we'll probably find out inventories have in fact risen, as people again hold back on spending and travel.
Crude Oil Inventories Drop
Tuesday, January 19, 2010
Goldman Sachs | Oil Shortages 2010
Oil Prices
Goldman Sachs (NYSE:GS) said today that there will be crude oil shortages as supply won't be able to keep up with demand, signifying higher oil prices in 2010 and 2011.
Projections from Goldman Sachs are the demand for oil will return to pre-recession levels, while production for oil will be down, causing the shortages and resultant oil price increases as a result.
There is probably more optimism in Goldman Sachs' report than among most others watching the industry, who believe oil demand will in fact remain down for some time to come, as the so-called recovery, for the most part, really isn't one.
Consider that jobs aren't being created and businesses aren't hiring. Goldman is saying that those working will start traveling more and spending on transportation, which I personally don't see happening, as I don't even begin to believe the recession is ended, let alone that we're in a period of recovery.
Nothing points to that being what is happening at this time, and I think Goldman Sachs is wrong here and we're going to continue to see consumers and businesses keep things tight as far as spending goes.
Consequently, I think oil prices will probably remain relatively level, although I'm sure there will be occasional spikes in oil prices over the next couple of years.
I don't doubt the production side being possibly challenged, just that the demand will remain low and so lower oil production won't cause significant oil price increases because of lower demand.
Of course the wild card in all of this is the state of the consumer in China, India and Brazil. If they take on a new role of consuming much more oil, then it could cause some price increases. But as far as it relates to the American consumer, I don't see them being a price driver of oil any time soon.
Oil Prices
Goldman Sachs (NYSE:GS) said today that there will be crude oil shortages as supply won't be able to keep up with demand, signifying higher oil prices in 2010 and 2011.
Projections from Goldman Sachs are the demand for oil will return to pre-recession levels, while production for oil will be down, causing the shortages and resultant oil price increases as a result.
There is probably more optimism in Goldman Sachs' report than among most others watching the industry, who believe oil demand will in fact remain down for some time to come, as the so-called recovery, for the most part, really isn't one.
Consider that jobs aren't being created and businesses aren't hiring. Goldman is saying that those working will start traveling more and spending on transportation, which I personally don't see happening, as I don't even begin to believe the recession is ended, let alone that we're in a period of recovery.
Nothing points to that being what is happening at this time, and I think Goldman Sachs is wrong here and we're going to continue to see consumers and businesses keep things tight as far as spending goes.
Consequently, I think oil prices will probably remain relatively level, although I'm sure there will be occasional spikes in oil prices over the next couple of years.
I don't doubt the production side being possibly challenged, just that the demand will remain low and so lower oil production won't cause significant oil price increases because of lower demand.
Of course the wild card in all of this is the state of the consumer in China, India and Brazil. If they take on a new role of consuming much more oil, then it could cause some price increases. But as far as it relates to the American consumer, I don't see them being a price driver of oil any time soon.
Oil Prices
Saturday, November 8, 2008
Commodities: Drilling Oil off Norway's Coastline
Oil fields off of Norway's coastline look good to oil companies searching for new opportunities with the commodity.
Even though oil prices have fallen recently, the higher prices have renewed interest for oil companies in drilling off the Norwegian coastline.
In the latest round of bidding, a record 46 countries participated in the licensing round. That's twice the number of the last round in 2005, when only 19 companies took part in the process.
Norway's oil production in the North Sea fields has been gradually declining since 2000, and now stands at 2.2 million barrels a day in contrast to the over 3 million barrels a day they retrieved 8 years ago.
The new blocks are located north of the current production area.
Announcements on who won the bids will come early or mid-2009, as the commodity continues to attract attention in spite of plunges in the black liguid.
Even though oil prices have fallen recently, the higher prices have renewed interest for oil companies in drilling off the Norwegian coastline.
In the latest round of bidding, a record 46 countries participated in the licensing round. That's twice the number of the last round in 2005, when only 19 companies took part in the process.
Norway's oil production in the North Sea fields has been gradually declining since 2000, and now stands at 2.2 million barrels a day in contrast to the over 3 million barrels a day they retrieved 8 years ago.
The new blocks are located north of the current production area.
Announcements on who won the bids will come early or mid-2009, as the commodity continues to attract attention in spite of plunges in the black liguid.
Tuesday, August 19, 2008
Tuesday, June 17, 2008
Merrill Lynch Analysts Say Investment in Commodity Markets not Pushing Prices Higher
In an attempt to get the attention off of themselves, American politicians have been spinning the idea that what they call "speculators" in the commodities markets are one of the key causes of the huge increase in prices.
In response, analyst Francisco Blanch at Merrill Lynch (NYSE:MER) not only refutes that, but says the trading causes more stability in the market. Blanch said:
“Only some commodities have experienced significant price appreciation, and we see no evidence linking increases in open interest and trading volumes to price rises. On a positive note, we find evidence that the increases in trading volumes actually help decrease price volatility.”
The real problem is the policies of the government in relationship to supply-and-demand (not allowing much drilling in US), as well as their horrid monetary policies which continue to devastate the market by overprinting their funny money; causing booms and busts.
Another problem cited is the decline in real interest rates which cause prices to increase.
In response, analyst Francisco Blanch at Merrill Lynch (NYSE:MER) not only refutes that, but says the trading causes more stability in the market. Blanch said:
“Only some commodities have experienced significant price appreciation, and we see no evidence linking increases in open interest and trading volumes to price rises. On a positive note, we find evidence that the increases in trading volumes actually help decrease price volatility.”
The real problem is the policies of the government in relationship to supply-and-demand (not allowing much drilling in US), as well as their horrid monetary policies which continue to devastate the market by overprinting their funny money; causing booms and busts.
Another problem cited is the decline in real interest rates which cause prices to increase.
Wednesday, April 9, 2008
Commodities Leap the Highest in 2 Weeks; Records for Corn, Oil, Gas
After U.S. government reports confirmed supply for energy and grain can't keep up with the demand, commodities surged the most in two weeks, led by record-breaking prices for corn, oil and gasoline.
"Supplies for a lot of different commodities are dwindling as demand has gained globally," said Michael Pento, a senior market strategist at Delta Global Advisors in Huntington Beach, California, which manages about $1.5 billion. "I'm bullish on all commodities."
Crude oil leaped as high as $112.21 a barrel, while corn ended at $6.16 a bushel, as inventory fell below anticipated levels.
Setting a new record was gasoline futures as well, climbing to $2.8228 a gallon, a reflection of what it costs wholesale.
Thursday, March 6, 2008
Oil Reaches Another High on U.S. Inventory Concerns
Oil prices climbed to almost $106 a barrel, as inventory surprisingly fell by 1.3 million barrels, after seven straight increases.
Most of that was in response to U.S. supplies being lower than expected.
Other problems affecting the price were the recent decision by OPEC to not increase production, as well as the continuing tensions between Columbia and Venezuela.
Oil inventory as of the early part of 2009 has dramatically changed, as the contango, or rather - super contango conditions has resulted in oil futures buyers starting to store there oil as oil futures prices stretch out more predictably, and the perfect arbitrage opportunity exists for those looking for something that is not only safe to invest in for 2009, but will also make them some money.
The super contango for oil is one of the few guaranteed commodity futures winners for 2009, and one of the few overall investment winners overall.
Commodity investing in certain sectors will be the best investment over the next several years, and those investing in strategic commodity sectors will do very well.
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