The world is drawing down its oil reserves at an unprecedented rate and even assuming no growth in demand it is likely that that by 2010 oil supply will be constrained by global production capacity and oil will permanently cease to be abundant. Supply and demand will be forced to balance - but at a price. Then, like during the oil shocks of the 1970’s, prices could double and treble within two or three years as the world changes from oil abundance to oil scarcity. The world is facing a future of major oil price increases which will occur sooner than many people believe. These are amongst the conclusions of The World Oil Supply Report, an important new study published today by energy analysts Douglas-Westwood. Oil production to peak soon The overall conclusion of the extensive research carried out for this report, into all potential sources of oil, is that the world’s known and estimated ‘yet to find’ reserves cannot satisfy even the present level of production of some 74 million barrels per day beyond 2022. Any growth in global economic activity only serves to increase demand and bring forward the peak year. 1% demand growth brings the year to 2016, when production is expected to peak at around 83 million barrels per day; with 2% growth, peak production of 87 million barrels per day occurs in 2011, and with 3% growth, peak production of 87 million barrels per day occurs in 2006.
OPEC member Indonesia has reportedly become a victim of the very oil supply cuts it helped to shape, as it has tendered to buy Saudi Arabian, Iranian and Iraqi crude because its normal supply has been cut under the latest OPEC accord to boost oil prices.
A U.S. federal court reportedly has granted a one-year injunction barring oil producer group OPEC from fixing prices. Prewitt Enterprises won a civil anti-trust case in an Alabama court, accusing the Organization of the Petroleum Exporting Countries (OPEC) of conspiring to fix oil prices through oil supply agreements. OPEC is for the next year "restrained from entering any agreements among themselves or with third parties to raise, lower
INTERTANKO is delighted that the Irene SL has been released by the Somali pirates who hijacked this tanker and her 2m barrel oil cargo in February, and that Master, officers and crew are in good health after 58 days in captivity – especially after 12 days being used as a pirate mothership. At the time INTERTANKO’s Managing Director Joe Angelo remarked that the Irene SL hijacking marked a significant shift in Somali piracy
International Energy Agency (IEA) reports call on 'OPEC crude & stock change' rising IEA reports that global oil supply increased by 0.6 mbd to 91.0 mbd in April, 3.9 mbd above last year. Higher Iraqi, Nigerian and Libyan supplies lifted OPEC production by 0.41 mbd, to 31.85 mbd. The ‘call on OPEC crude and stock change’ is raised by 0.2 mbd to 30.9 mbd for 3Q12 and by 0.4 mbd to 30.7 mbd for 4Q12, with the 2012 average now 30.3 mbd.
Rosneft’s President and Chairman of the Management Board, Igor Sechin, and Eni’s CEO, Paolo Scaroni, in the presence of the Russian President, Vladimir Putin, and Italy’s Prime Minister, Enrico Letta, has signed a term sheet on mutual crude oil supplies and a heads of agreement on joint participation and investments in logistic and commercial activities within the hydrocarbons sector. Rosneft will supply crude oil to PCK Schwedt refinery in Germany and Česká
Brazil's state oil giant Petrobras said Tuesday it declared force majeure on Monday on oil deliveries to barges in the ports of Santos and Rio de Janeiro. Petrobras said it was forced to declare force majeure to clients due to a federal police investigation into an alleged crime ring at the ports that is impeding deliveries. While the force majeure was declared to clients on Monday, Petrobras only confirmed it late Tuesday.
"Due to increasing demand and reducing reserves, oil prices currently at $40 are likely to soon enter a period of sustained rises resulting in a need to massively develop natural gas and renewable energy resources" according to John Westwood of energy analysts Douglas-Westwood. "Oil reserves are depleting and demand growing. Recent increases in oil demand from China, for example, are likely to accelerate. The average American consumes 25 times as much oil as the average Chinese yet China
Auramarine Ltd, manufacturer of heavy fuel oil supply systems and other auxiliary units for marine and power station engines, is now applying its wide-ranging experience in liquid flows to a new sector that benefits the environment. Auramarine is bringing out Auramarine Crystal Ballast, Ballast Water Treatment System (BWTS). Due to technological innovations featured in this system, it is energy-efficient, compact and easy to install
U.S. is the world's largest producer of oil in 2013, according to data presented at PIRA Energy Group's recent Retainer Client Seminar held in New York City recently. The U.S. has surged to be the world's lead oil supplier because of growth in shale oil. Shale crude and condensate production at 2.5 MMB/D in 2013 is now slightly over one-third of total U.S. crude production, and shale NGL at 1.2 MMB/D is almost half of total Natural Gas Liquids (NGL's).
IEA report sees a transformed market, with supply more responsive to prices than in the past – and demand less so The recent crash in oil prices will cause the oil market to rebalance in ways that challenge traditional thinking about the responsiveness of supply and demand
A robust and sustained recovery in freight rates in both VLCC and Suezmax sectors gained traction during the fourth quarter of 2014 – a feature which has continued and expanded into Q1 2015, says press release from Euronav
The largest brig to be built in the U.K. in a century sailed into in a Greenock dry dock yesterday for general maintenance and essential winter repairs. The Stavros S Niarchos has arrived at the Garvel Clyde site, which is owned by Aberdeen-based Dales Marine Services
Russia's Urals crude exports and transit from the Baltic Sea ports and Novorossiisk are set to fall in April by 2.5 percent on a daily basis to 8.14 million tonnes from 8.623 million tonnes in March, a preliminary loading plan showed on Tuesday.
* Middle East supply remains strong * Equities fall on confirmed case of Ebola in New York * Economists see gloomy 2015 for China, euro zone - Reuters poll * Commerzbank cuts price forecast on bearish OPEC signals (Updates prices, adds Middle East supply)
Russian pipeline monopoly Transneft has suspended oil loadings through all Russian ports except for Makhachkala due to bad weather conditions, RIA news agency said on Monday. Russia is the world's second biggest oil exporter behind Saudi Arabia, shipping around 4 million barrels of oil per day
BP announced today that it is now operating the world’s first robotic coreflooding system. The Core Flood Robot is the most recent addition to BP’s programme of enhanced oil recovery (EOR) research facilities. Coreflooding is one of the most important techniques used to identify and
What’s New in October 2014? Today 324 oil/gas floating production units are now in service, on order or available for reuse on another field. FPSOs account for 65% of the existing systems, 78% of systems on order. Production semis, barges
Demand for shipping fuel at major Indian ports has climbed in the past week by up to 25 percent as the cost of refuelling at Singapore, Asia's bunkering hub, soared following the collapse of the world's leading supplier, traders said. The announcement of OW Bunker's bankruptcy drove up shipping
Russian top crude producer Rosneft and Venezuelan state oil company PDVSA have signed a new contract for supplies of oil and oil products of Venezuelan production, the Russian company said on Monday. The document envisages the supplies of over 1
China and India will account for about 35% of global oil trade in the next 10 to 15 years, according to predictions by Harald Lone, Chairman and CEO of Newport Shipping Group. Many traditional global shipbuilding patterns are in flux with the proliferation of oil and gas coming from the U.S
The American Salvage Association’s Jon Waldron provides the ultimate cabotage primer. There always seems to be constant chatter about waiving the Jones Act. In reality, it is a simple task to demystify the thought that it is easy to obtain such waivers
U.S. lawmakers gave a preview on Thursday of a looming fight next year on lifting the ban on crude exports with supporters saying it would sustain the drilling boom and others questioning its impacts on industry and fuel prices. In a House of Representatives hearing on the ban
Some of the world’s largest oil traders are reportedly hiring supertankers in a possible attempt to stockpile oil supplies following the plunge in world prices. Trading firms including Vitol, Trafigura and energy major Shell have all booked crude tankers for up to 12 months
The window to sell Western fuel oil to Asia is starting to close as demand for a limited fleet of supertankers to store cheap crude pushes freight rates to multi-month highs, shipping and trade sources said. Crude prices have fallen nearly 60 percent since June and