The trouble in the oil industry may have started with a supply glut, but the problems are rapidly spreading across all facets of the industry. BP recently included the chart below in one of their investor presentations. Source: BP Spells Out What’s Wrong With Big Oil In One Chart - Yahoo Finance
Natural gas made Qatar’s citizens the richest in the world within a generation. Even with bigger fuel reserves, Iran will struggle to follow its neighbor’s path. Iran’s own production is consumed by a population of 78 million and an oil industry that injects gas into fields to boost productivity. Qatar, with a population of 2.3 … Continue reading Iran Is No Qatar, Even With World’s Second-Biggest Gas Reserves
Getting anything to Chevron’s gas-processing plant on Barrow Island is a bit of a trick. Some supplies travel 15 hours from Perth to a supply base for shipping. En route, trucks cannot stop under trees, to avoid picking up bugs and bird droppings. When people and cargo finally make it to the island, an army … Continue reading Logistics and Lizards Disrupt Chevron’s Project Off Australia – The New York Times
Gazprom’s dominance over European energy supplies may be beginning to slip. The collapse of oil prices has punished Gazprom’s revenues, but in a new development that is further damaging to the Russian state-owned company, the European Union is also beginning to shake itself of Russian gas. Russian exports of natural gas through the Nord Stream … Continue reading Is The EU Finally Breaking Free Of Russia’s Energy Grip?
Last January, the polar vortex brought extreme cold temperatures to much of the U.S., causing energy prices to spike as the natural gas system struggled and fossil-fuel power plants tripped offline. In the aftermath, there was much hand-wringing about the growth of natural gas as a direct source of home heating, as well as its … Continue reading Electricity, Not Gas, Gains Market Share in Home Heating
In a recent post, A Beginners Guide to Blackouts, I drew attention to the fact that keeping the lights on in Britain was to a large extent dependent upon our ability to source sufficient gas to power the country’s large fleet of combined cycle gas turbines. The official view from the UK Government, National Grid … Continue reading How Energy Secure Are The EU And UK?
Japan’s record purchases of liquefied natural gas (LNG) show no sign of slowing as the country continues to try and fill the energy shortfall created when it took its nuclear plants offline three years ago. With its lack of substantial domestic sources of fossil fuel, Japan is cripplingly dependent on imported oil, coal, and natural … Continue reading LNG-Dependent Japan Tries To Gain Leverage Over Pricing
The winding down of extraordinary measures taken by the U.S. Federal Reserve to ameliorate the effects of the financial crisis could reverberate through energy markets. The Fed has kept short-term interest rates near zero for several years, a target that the institution hoped would spur lending and kick start the moribund economy in 2009. With … Continue reading How Rising Interest Rates Could Spell the End of the U.S. Energy Boom
China quietly cut its 2020 goals for shale gas, a goal that was so ambitious that few took the number seriously. The goal – to ramp up from zero commercial production of shale gas to 60-80 billion cubic meters by 2020 – was met with skepticism both inside and outside China when first announced. Now, … Continue reading China Shale Development and Shriking Expectations
China's natural gas demand has been growing as the government seeks to move away from coal in favor of cleaner fuels. According to EIA's International Energy Outlook 2013 (IEO2013) Reference case, demand will more than triple from 5.2 Tcf in 2012 to 17.5 Tcf by 2040. Russia's largest natural gas company, Gazprom, finalized a deal … Continue reading Russia-China deal will supply Siberian natural gas to China’s northern, eastern provinces