Oil Price Increases News

Petrochemicals giant Saudi Basic Industries Corp (SABIC) swung to a $2 billion quarterly profit and said it expects solid performance to continue in the second half of 2021, backed by healthy demand and rising oil prices.SABIC, the world's fourth-biggest petrochemicals company by sales and asset value, swung to a second-quarter profit of $2 billion (up from a $592M loss in the same period last year) beating the average forecast of $1.6B by six analysts according to Refinitiv data."Average selling prices rose by more than 10% backed by oil price increases and healthier demand.

Global competition in the shipbuilding industry, which is continuously intensifying due to the entry of developing countries into the shipbuilding market, leads to decreasing margins and enormous cost pressure in this industry. Many shipyards have already gone bankrupt through the inability to keep to their original budget that the offer was based on. In the naval sector it is not unusual to double the originally estimated costs when building the vessel. The first oil crises in…

Twelve U.S. lawmakers asked that President Bill Clinton, who has only two days left in office, re-impose a ban on exports of Alaskan crude oil in order to protect consumers on the United States' West Coast from high gasoline prices. In a letter to Clinton, the lawmakers cited recent news reports that BP Amoco exported Alaska North Slope crude to reduce supplies on the West Coast and raise oil prices in the region. The lawmakers making the export ban request include Senators Ron Wyden and Gordon Smith of Oregon, Barbara Boxer of California and Patty Murray of Washington. The lawmakers said secret oil company documents show that BP shipped Alaska crude to Asia even though the company earned less profit on the exported oil than it would have if it sold the same oil in West Coast markets.

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.

The AP has reported that ships have been stranded, seafood sources threatened and the nation's oil reserve tapped as the result of 47,000 gallons of oil spilling into a southwestern Louisiana shipping channel, forcing its closure. The June 19 spill at a Citgo Petroleum Corp. refinery in Lake Charles forced the closure of the Calcasieu Ship Channel, a key lane for transporting petroleum in and out of the region's four refineries. About 11 miles of the channel remained closed Thursday. The entire 40 miles to the Gulf of Mexico had been closed. About 31,000 barrels had been cleaned up by Thursday, the Coast Guard said. A Citgo spokesman said the clean up was going well partly because a lack a wind kept oil patches in place and the dry, sunny weather was evaporating much of the oil.

The offshore industry should enjoy steady growth over the next five years and the longer-term prospects are looking even better as the potential for higher oil prices grows. Addressing delegates at a special meeting of the Society of Underwater Technology at London’s Imperial College today speakers from leading energy analysts Douglas-Westwood and offshore industry data specialists Infield systems painted a picture of long-term growth. However, the growth was mainly seen to be outside the North Sea where the reserve sizes of new field developments are now very small. “The oil majors have already voted with their dollars and shifted their attention to the deepwater areas of Brazil, West Africa and the Gulf of Mexico” said John Westwood, Douglas-Westwood’s MD.

The long-term growth in the transport sector will shortly become unsustainable due to oil price increases forecast to occur in the next few years. These are amongst the conclusions of an important report by energy analysts Douglas-Westwood. Oil price rises due to concerns over a possible war in the Middle East are, according to the report authors, nothing compared to what is ultimately in prospect. The World Oil Supply Report states that global oil reserves are being drawn down at an unprecedented rate and even assuming no growth in demand it is likely that that by 2010 oil supply will begin to 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.