As hard as it is to believe - given the strength of the "Russia-is-doomed" meme - Crude oil prices for Russia (in Rubles) are unchanged since February... This is important as all costs are Ruble denominated while revenues are USD denominated, leaving Russian oil companies’ margins insulated despite the dollar decline in price. In addition, the Russian government is easing the export taxes which further improve the profitability of Russian oil. So as US Shale Oil sector is destroyed by its USD costs, it appears Putin's core energy industry is somewhat insulated... and America's late-80s "defeat The Soviet Union" playbook is failing.
With a third of S&P 500 capital expenditure due from the imploding energy sector (and with over 20% of the high-yield market dominated by these names), paying attention to any inflection point in the US oil-producers is critical as they have been gung-ho "unequivocally good" expanders even as oil prices fell. However, as Reuters reports, new data suggests that the much-anticipated slowdown in shale country may have finally arrived - permits for new wells dropped 15% across 12 major shale formations last month, as one analysts warns, "the first domino is the price, which causes other dominos to fall."
By Lisa Twaronite TOKYO (Reuters) - Oil prices, oil-related shares and oil-linked currencies all tumbled in Asia on Friday, in the wake of OPEC's decision to refrain from cutting output despite a huge oversupply. U.S. markets were closed on Thursday for the Thanksgiving holiday, leaving the spotlight on the Organization of Petroleum Exporting Countries' meeting in Vienna where Saudi Arabia blocked calls from poorer cartel members to cut production to stem a slide in global prices. ...
Rig counts often take three to six months to respond to swings in the oil price market, said R.T. Dukes, a senior analyst at energy research firm Wood Mackenzie, who expects that drilling activity will continue falling off as more rigs complete their contracts. The day's losses were triggered in part by news that the International Energy Agency again cut its prediction of global oil demand growth, saying demand will grow by only 900,000 barrels per day next year, 230,000 barrels per day fewer t
Oil Wars: Why OPEC Will Win By Roger Andrews, Oil Price In the green corner we have the US shale producers. In the red corner we have the oil exporting countries of OPEC. Assuming the fight is fought to a conclusion, who wins? OPEC wins. The US shale producers will shut down first. The reasons are: [...]
A couple of years back, I attended a presentation by Tom Eizember, Exxon's head of strategic planning. During the presentation, Eizember asked how many in the audience believed in peak oil, and I raised my hand. I believe I was the only one. Exxon does not subscribe to peak oil
And yet. Exxon has issued its new Outlook (which is well worth a look). One of the interesting features of this report is its view of conventional oil production, comprising traditional onshore and offshore /
When you are felling a really big tree, the first signs that it is coming down are subtle; a crack here and there, a twitching of the crown. By the time these clues register on you, the tree is on its way down.Read more....
A major threat to fossil fuel companies has suddenly moved from the fringe to center stage with a dramatic announcement by Germany’s biggest power company and an intriguing letter from the Bank of England.
German architect André Broessel, of Rawlemon, has looked into his crystal ball and seen the future of renewable energy. In this case it’s a spherical sun-tracking solar energy-generating globe — essentially a giant glass marble on a robotic steel frame. But this marble is no toy. It concentrat
VIENNA (Reuters) - Saudi Arabia's oil minister told fellow OPEC members they must combat the U.S. shale oil boom, arguing against cutting crude output in order to depress prices and undermine the profitability
Recently we posted the following article commenting on the impact of USD appreciation and dollar circulation among oil exporters, as well as how the collapsing price of oil is set to reverberate across the entire oil-exporting world, where sticky high oil prices were a key reason for social stability. Following today's shocking OPEC announcement and the epic collapse in crude prices, it is time to repost it now that everyone is desperate to become a bear market oil expert, if only on Twitter...