Oil is getting cheaper. The price of a barrel of Brent crude is approaching $60, down from around $140 in 2008. The price drop is largely attributed to American shale oil, also called tight oil, production of which has increased from a few thousand barrels/day a decade ago to over 5 million barrels/day today, mainly coming from the Bakken, Permian and Eagle Ford shales. By the end of 2013, American tight oil accounted for 4.1% of global crude oil production. The International Energy Agency calls it a "supply shock", and according to the World Energy Council, the notion of "peak oil" has almost been forgotten [PDF, page 24]. While speculation continues over the motives behind OPEC's refusal to curb production, others worry that the drop in oil prices distorts economic and political decision making, discourages the development of renewable energy sources [may require registration], and may induce deflation. The BBC tallies up the winners and losers.
"If wealthy countries reduce their oil consumption to combat global warming, they should pay compensation to oil producers." Previously.
We're filthy rich - now help us!! This is mostly an artice about Kyoto, but one little paragraph left my jaw wide open to see that OPEC thinks they should be compensated if the world finds a better way... I guess it's not a unique concept though - does anyone have some other examples of a (potentially) failing industry that wants compensation?? My apologies if I've missed this in another thread somewhere...
Is the currency that oil is denominated in the real reason for the Iraq War? "The Federal Reserve's greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a euro standard. Iraq actually made this switch in Nov. 2000 (when the euro was worth around 80 cents), and has actually made off like a bandit considering the dollar's steady depreciation against the euro. (Note: the dollar declined 17% against the euro in 2002.)"
Carve-up of oil riches begins US plans to ditch industry rivals and force end of Opec, write Peter Beaumont and Faisal Islam
Back from a vigorous and exhausting vacation of petty but life sustaining activities, I find this overview of our larger reality, without the noisy claptrap of narrowly self serving ideologies, yet worrisome enough to shake the world's boat I'm travelling in with some comfort and some reasonable concern spiced with anxiety. (NYT)
Why Big Oil Backed The Fuel Protests In Europe -- "Watched from a distance, the oil blockades in Britain look like spontaneous popular uprisings: regular working folk, frightened for their livelihoods, getting together to say, "Enough's enough." But before this David and Goliath story goes any further, it deserves a closer reading...."
OPEC to increase crude oil production. Hopefully this will drop the prices of gas in Southern Ontario to below 70 cents/litre. More >>