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Apr-22-2008US says high oil prices risky to economy(topic overview)
CONTENTS:
- Allan Asher, the chief executive of energywatch, a consumer watchdog, criticised the record of the Government and energy companies. (More...)
- Oil hit a new record yesterday, supported by worries of supply disruptions in Nigeria and comments by the oil producers' organisation that it saw no need to increase production. (More...)
- Access to large reserves is getting harder and projects are becoming more complex, increasing the risk of delays. (More...)
- Opec wanted an "appropriate" price, which would suit both consumers and producers, Khelil said, but did not reveal the price level. (More...)
- "We see the price in this range of $90 (a barrel) and above," he said, refusing to specify an upper limit. (More...)
- We need to keep working on alternative fuels and boosting our domestic supplies of oil and natural gas.''' (More...)
- Today, three energy industry companies ''' Devon Energy Corp., Chesapeake Energy Corp. and the Williams Cos. ''' are the state's largest publicly owned businesses. (More...)
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Allan Asher, the chief executive of energywatch, a consumer watchdog, criticised the record of the Government and energy companies. "Relying on more voluntary social programmes from energy suppliers is tantamount to sticking your head as far into the sand as it will go," he said. "Government has to be bold enough to admit its fuel poverty strategy has been broken on a vicious cycle of price rises. Price rises on such a shocking scale would be catastrophic for consumers; 25 per cent on energy bills means another million households consigned to the misery of fuel poverty." Chakib Khelil, the president of Opec, said yesterday that he saw no need to raise oil production to counter high oil prices, dealing a further blow to big oil-consuming countries such as Britain and the United States. Gordon Brown and President Bush have called on Opec, which produces 40 per cent of the world's oil, to increase its output, but Opec kept its daily output quota at 29.67 million barrels at its last meeting last month. The U.S. Department of Energy said this month that it expected American petrol consumption for the summer vacation season - when families take to their cars to go on holiday - to decrease for the first time in two decades. Mr al-Badri said that while high prices may have an impact on demand in the U.S., they would not in Asia and developing countries, where it is "business as usual". [1] Analysts expect oil to rise above $120 a barrel by the summer, and some leaders have asked OPEC to increase oil production. Chakib Khelil, the president of OPEC, said he saw no need to raise oil production to counter high oil prices, dealing a further blow to big oil-consuming countries such as Britain and the United States. British Prime Minister Gordon Brown and President Bush have called on OPEC, which produces 40 percent of the world's oil, to increase its output, but OPEC kept its daily output quota at 29.67 million barrels at its last meeting last month. Al-Badri said that while high prices may have an impact on demand in the United States, they would not in Asia and developing countries. Oil producers will have the upper hand during negotiations as continuing demand despite high prices means that they can control access to their resources in the face of soaring demand from India and China, as well as other developing economies.[2]
Crude oil prices have surged above $117 a barrel in the U.S. and Brent set a new record well over $114. Traders put that down to supply disruption worries and comments by OPEC as the cartel's members repeated that there is no need for them to raise output. Speaking at the International Energy Forum, taking place in Rome, Libya's oil minister, Shokri Ghanem, said: "We think that the supply is more than adequate, and we are seeing the figures published by different (institutions), not only OPEC and the IEA. All of them are publishing figures that are saying that the supply is more than the demand."[3] The oil price reaches a new record high above $117 per barrel, as world oil ministers and oil company executives meet in Rome at the IEF. The oil price soared over supply concerns from major oil producers and OPEC comments that there was no need to raise output.[4]
ROME, April 21 (Reuters) - Record oil has added to the strain on a fragile world economy, but producers stopped short of saying prices were too high at talks with their customers on Monday. Energy producers and consumers attending the International Energy Forum (IEF) in Rome are in broad agreement there is enough oil on the market in the immediate term and OPEC ministers have said they will not boost output right now. They also agreed the weak dollar had helped to drive oil prices, which hit a record well above $117 a barrel on Monday. While the consumers are certain this is too high, some producer countries have said the strength is only nominal, given the weakness of the dollar.[5] ROME (Reuters) - Oil prices, which have struck a record of $117 a barrel, could rise higher still, OPEC Secretary General Abdullah al-Badri said on Sunday. Factors other than supply and demand were pushing oil prices higher, he said, and the main one was the weakness of the U.S. dollar. "As long as there are other factors contributing to the market, we may see higher prices," he told reporters on the sidelines of talks between producers and consumers in Rome. Asked whether the high price was affecting demand, he said it could be having an impact in the United States, but was not in Asia and developing countries. "In some parts of the world, yes, but in other parts, it's business as usual," he said, when asked whether demand was weakening.[6]
"We in OPEC raised production last year and prices remained high. If we increase production we will not find people to buy the increment," he added. Saudi Arabia's Minister of Petroleum and Mineral Resources, Ali Al-Naimi, rejected the U.S. call for an increase in oil supply once again, saying that there was enough oil supply in the market and the pressue of the Western oil consuming countries on OPEC to raise its output is politically motivated. Customers aren't asking for more crude though, Qatari Oil Minister, Abdullah bin Hamad al-Attiyah, said as he arrived in Rome yesterday to attend a three-day biannual conference, blaming the plunging dollar for record prices. "The oil price rises as the dollar gets weaker,'' he noted. Earlier, the chairman of Libya's National Oil Corporation, Shokri Ghanem, had said he believed the markets were well-supplied, adding "OPEC is not pricing oil, it's the futures markets."[7] Al-Naimi, Scaroni and el-Badri are among more than 40 company chiefs and 90 energy ministers attending the energy forum in Rome, which started today. Industry leaders will discuss investment, resource nationalism and sustainable development as rising energy costs push some consumers, such as airlines, to bankruptcy. Kuwait's acting Oil Minister Mohammed al-Aleem told reporters in Rome today that OPEC can increase supply "if there is a need.'' When asked about the possibility of an additional meeting before OPEC's next scheduled policy-setting conference in September, al-Aleem said: "If there is a need for a meeting, they will meet for sure.'' Customers aren't asking for more crude though, Qatari Oil Minister Abdullah bin Hamad al-Attiyah said as he arrived in Rome yesterday, blaming the plunging dollar for record prices. "The oil price rises as the dollar gets weaker,'' he said.[8]
America is dependent upon oil exporting countries not only for oil, but for refined oil. Both of these needs impact the overall supply and cost of oil for American consumers and industries. Another factor is the price manipulation by OPEC. Gone are the days of the late 1970s oil embargo, but OPEC still influences prices by putting limits on both the production and refinement of crude oil. Other entities, like Russia and Venezuela, have been known to either threaten or make good on threats to increase the price for their oil supplies; and the deteriorating stalemate with Iran, an oil producer and a neighbor to oil producers, hasn't helped. As controversial as it is to question the wisdom of ethanol production, it's worth noting that ethanol is part of the reason for increased oil prices. This may seem counterintuitive, but the process of creating ethanol requires the expenditure of nearly as much petroleum-based fuel as is created by the ethanol process.[9]
Calls for OPEC to raise output were distinctly muted, even if the deputy head of the International Energy Agency -- founded during the 1973-4 oil crisis to defend the energy interests of 27 major consumer countries -- said it was "unreasonable" for the 12 members of OPEC's cartel to "fix demand for the next 30 years". William Ramsey later softened his position to say that "asking for more fuel today maybe isn't the answer," spelling out that that IEA is primarily asking producers to "increase their production capacity". "I think that prices are going to continue to rise," said Libya's acting oil minister Chukri Ghanem, the head of its national oil company. The Gulf states, particularly Saudi Arabia, said they did not like the price spiral. A Gulf official told AFP: "we don't like to see the prices at these (high) levels". He did not give the slightest hint of any measures OPEC could enact to make prices fall again.[10] The price of oil surged to another record high yesterday (Monday) as oil ministers from the Organization of Petroleum Exporting Countries (OPEC) again resisted pressure to increase output. "Any increase in production now will not have an impact on prices because there is a balance between supply and demand," OPEC president Chakib Khelil said, according to a report on Sunday by Kuwait's state news agency.[11] The oil minsters of the Organization of Petroleum Exporting Countries are opposed to an increase in the cartel's current output ceiling. "Any increase in production now will not have an impact on prices because there is a balance between supply and demand,'' the OPEC president, Chekib Khelil, said during a visit to the Kuwait Chamber of Commerce and Industry, Kuwait's state news agency reported today.[7]
April 20 (Bloomberg) -- The Organization of Petroleum Exporting Countries doesn't need to raise oil production and any increase will not affect prices, officials including the group's president, Chakib Khelil, said. "Any increase in production now will not have an impact on prices because there is a balance between supply and demand,'' Khelil said during a visit to the Kuwait Chamber of Commerce and Industry, Kuwait's state news agency reported today.[8]
There is no shortage of oil in the market, secretary-general Abdalla el-Badri said on Sunday in Rome, blaming the weak dollar and speculators for high prices. Even if the Organization of Petroleum Exporting Countries raises production, ''''''we will not find people to buy the increment,'' president Chakib Khelil said, as cited by Kuwait's state news agency.[12]
"We should avoid the risk that energy becomes the reason for tension and conflicts between various regions of the world in the future, in which case we all will be losing," Romano Prodi said in a speech. Oil exporting countries have enjoyed record revenues, but they are not immune to inflationary pressures and could be at threat from lower demand and increased use of alternative fuel. They have also voiced concern about the rising costs of bringing on new oil as an overall surge in commodity prices and labour shortages have hampered exploration and production. "No, I'm not enjoying the high price," said Qatari Oil Minister Abdullah al-Attiyah, but he added "I'm enjoying the challenge of the business."[13] ROME (AFP) — Oil prices, which surged to record 117.40 dollars a barrel on Monday, are unlikely to fall back below 90 dollars, the Venezuelan energy minister Rafael Ramirez said here. "We believe that prices will remain around this level, at least around 90 dollars," Ramirez told reporters on the sidelines of the International Energy Forum here. "Oil prices can't fall" much further because "production costs have increased," he said. Oil prices would only begin to weigh on demand once they had reached a certain level, but that level had not yet been reached, the minister said.[14] Last week, it was reported that Russia, the second-biggest oil producer, hit a peak in production in 2007. '''With oil prices surging over $110 a barrel and growing concerns over the environmental repercussions of the world'''s spiraling energy demand, the dialogue between energy producing and consuming countries is more meaningful than ever''', said Nobuo Tanaka, Executive Director of the International Energy Agency (IEA), in his key note address to the 11th International Energy Forum (IEF) today in Rome. Stressing the value of this unique forum for policy dialogue to which Ministerial delegations and senior policy makers from over 90 countries have been invited this year, he detailed IEA analysis of the key global energy challenges the world needs to address in the coming years.[15] ROME (Reuters) - A meeting of big oil consumers and producers has yet to forge a consensus that a record oil price above $117 a barrel is too costly, the head of the International Energy Agency (IEA) said on Monday. Nobuo Tanaka said he was met with silence from an audience which includes heavyweight members of the Organization of the Petroleum Exporting Countries, when he asked if they shared the IEA's view that prices were too high.[16]
The ever-increasing oil price is not likely to result in increased output, with most suppliers experiencing flat output and Russian production in steep decline. Having reached yet another record high of over USD 117 a barrel this morning, experts believe the price has not yet hit its peak and will continue rising. BP Capital founder T. Boone Pickens has reportedly said he did not expect supply to exceed 85 million barrels a day and has bough oil futures on the expectation that the price will rise even higher owing to contracting reserves and many existing wells being depleted. The International Energy Agency and Barclays Capital have both expressed concern at both OPEC and non-OPEC producers' continuing capacity to supply increasing world supply, especially from China and India.[17] If the dollar continues to slide downward then oil prices will come up," Iranian Oil Minister Gholam-Hussein Nozari said on the sidelines of the International Energy Forum. His comments follow the OPEC line given Sunday by Secretary-General Abdullah al-Badri, who said that the group was ready to raise production if the price pressure was due to a shortage of supply -- but that he doubted the connection.[18]
Lipsky, the No. 2 official at global watchdog the International Monetary Fund (IMF), was arriving for talks between energy producers and consumers that continue until Tuesday. Representatives of both sides have said the risk is prices will go higher still and although the United States has led calls for more oil to calm markets, OPEC oil ministers have repeatedly said that would make no difference. They say the problem is nothing to do with short-term supply. It is a result of a weak U.S. dollar that has hit record lows against major currencies in response to a faltering U.S. economy.[13] The Iranian official blamed stock market slumps in the developed countries, including the United States and the continued depreciation of the U.S. dollar, coupled with low interest rates, for the soaring oil prices. His remarks came after comments Monday by Iran's oil minister, Gholam-Hossein Nozari, that OPEC members had no role in oil spikes since the high prices are a function of factors other than demand and supply.[19]
OPEC's second biggest producer Iran has typically supported strong oil prices. Its energy minister said Friday's record price did not reflect fundamentals of supply and demand and was artificially supported by the weakness of the U.S. dollar. "It's not the real price," Nozari said. A sustained bull run, which set in around 2002, has drawn momentum this year from the dollar's slide to record lows against major European currencies, making dollar-denominated oil attractive as an inflation hedge. Market fundamentals, including strong demand from emerging economies, such as China and India, and chronic under-investment that has tightened supply has also driven the rally.[20] Visiting OPEC Conference President and Algeria's Energy and Mines Minister Chakib Khelil told KUNA the increase could mainly come from Saudi Arabia, adding that other countries like Algeria, Libya, Venezuela, and Nigeria could also contribute in the raise. Talking to reporters during his visit to Kuwait Chamber of Commerce and Industry (KCCI), Khelil said that the hike in oil prices is a result of economic crisis in the U.S. and the decline of the U.S. dollar's exchange rate. He pointed out that the price of oil increases by USD 4 whenever the dollar's exchange rate decreases by one percent. If the U.S. economy improves by the end of 2008 or early 2009, oil prices would decline, he noted.[21] "If there is a correlation between speculation and oil prices, it is primarily speculative money is following rising prices driven up by fundamentals, rather than that the speculation is causing rising oil prices," Mark Mathias of Dawnay Day Quantum in London told Reuters. "Pointing to speculation and need for regulation is just a way of OPEC saying that this is not a problem that they need to solve." Earlier this month, several U.S. senators including Democrat Byron Dorgan of North Dakota, said they were considering legislation that would require commodities exchanges to boost margin requirements. Critics say such action would simply raise the costs for major industry participants, and achieve little else. OPEC could increase its own levels of transparency by making more of their own production data available.[11] 'We believe that prices will remain around this level, at least around $90,' Ramirez told reporters. 'Oil prices can't fall' much further because 'production costs have increased,' he said. Iraqi oil minister Hussain Al-Shahristani told reporters, as he entered the meeting, that an increase in production by the Organisation of Petroleum Exporting Countries (OPEC) would not bring the relief the market was calling for, since prices were being driven primarily by speculation.[22] The OPEC chief said the Organization for Petroleum Exporting Countries "will not hesitate" to increase production if the group thought the higher prices were due to shortages. He said more oil will not solve the high prices. OPEC's production levels were just one of many factors, he said. "But how much higher it will go, of course it depends on a number of things: the political situation, whether there is a natural catastrophe, whether there are speculations in the market, whether there are strikes in certain producing countries.[23]
The Secretary Genral of the Organization of Petroleum Exporting Countries, (OPEC), Chakib Khelil, also said Sunday that there was no need to increase output to counter soaring oil prices. The organization, which produces about 40 percent of the world's oil, has held its daily output ceiling at 29.67 million barrels since March.[19] Abdullah al-Badri, the secretary-general of the Organization of Petroleum Exporting Countries, said oil prices could rise even higher than the present level of $117 a barrel. He said factors other than supply and demand, particularly the weakness of the U.S. dollar, were pushing oil prices higher, the London Times reported.[2] ROME (AFP) — Oil-producing countries have rejected calls to raise output amid record prices -- five times higher in as many years -- saying the rise in demand was artificial. Kuwait's acting oil minister said Sunday that supply and demand factors are not to blame for the soaring price of crude oil, which hit record highs above 117 dollars per barrel in New York last week, following a pipeline attack in Africa's biggest producer Nigeria.[10] Oil hit the latest in a series of records on Friday after a rebel attack in Nigeria added to supply concerns and offset the impact of a U.S.-led economic slowdown, which has begun to eat into energy demand. "There is a possibility of still going higher," Shokri Ghanem, Libya's top oil official, said on his arrival in Rome on Saturday for talks between producer and consumer countries. Top fuel burner the United States has led the calls for more oil to try to calm prices, but OPEC's biggest producer Saudi Arabia has dismissed this as political rhetoric.[20] About 500 delegates, including oil ministers from Opec countries, chief executives of oil companies and representatives of consumer countries, will attend the three-day meeting in Rome. Oil producers will have the upper hand during negotiations as continuing demand despite high prices means that they can control access to their resources in the face of soaring demand from India and China, as well as other developing economies.[1]
The Iranian Oil Minister Gholam-Hussein Nozari said more than enough oil is being supplied. He added that other issues are affecting oil prices like the dollar. OPEC Secretary-General Abdalla Salem al-Badri has said the group is prepared to raise production if the price pressure is due to a shortage of supply - but also said he doubted the connection. "There is a common understanding now that has nothing to do with supply and demand," he said.[24] We are facing a lot of difficulties, not only the oil prices, but also the huge costs" of maintaing or increasing production. Among the cost factors were the weak dollar, high inflation, rig costs and shortage of skilled labour, which were all delaying some projects, he argued. Venezuelan energy minister Ramirez was asked about the nationalisation dispute between between his country's national oil company PDVSA and U.S. giant ExxonMobil. He refused to be drawn, noting that the international arbitration process had not yet started and would likely take some time.[14] The short term answer to Jim's question is 'no' as there are many causes for the current price spike. (1) The Fed's cheap dollar policy, initially implemented as a short term measure during the dot com bust, was never reversed. The dollar supply inflation reflects in all commodity prices, not just oil. (2) The U.S. Congress prohibits drilling in the ANWR desert of Alaska, and in the fertile Gulf of Mexico, thus limiting supply. (3) The U.S. Congress mandates uneconomic production of 50+ different summer grades of gasoline, in a vain hope of achieving some immeasurable reduction in air pollution. (4) The U.S. Congress has made it nearly impossible for an oil company to build a new refinery in the U.S. (5) The U.S. Congress mandates use of uneconomic food-based sources of ethanol, which leads to higher prices both in food and in gasoline. (6) Production of gasoline is primarily controlled by government dictatorships ' Saudi Arabia, Russia, Mexico, Venezuela, Iran, Kuwait.[25]
How expensive is expensive? Leonid Fedun, the vice president of Lukoil ( LUKOY, news, msgs ), Russia's largest independent oil company, recently estimated that Russia needs to invest $1 trillion over the next 20 years to keep production in the range of 8.5 million to 9 million barrels a day. The Saudis say their oil production will rise to 12.5 million barrels a day by 2009 but that they see no reason to invest billions to go beyond that, notes MSN Money'''s Jim Jubak. It's never easy to find $1 trillion in investment capital, but the Russian government has made it hard for its oil industry to attract even a small part of that capital.[26]
Of course, experts once thought $3-a-gallon gasoline would lead to a drop in consumption. The latest forecast from the International Energy Agency calls for global oil demand of 87.2 million barrels a day this year. That would be an increase in consumption of 1.3 million barrels a day from 2007 -- despite a U.S. economic slowdown and soaring oil prices.[26] ROME: High oil prices could tip the world economy into recession, the International Energy Agency (IEA) warned on Tuesday. "That's possible," IEA executive director Nobuo Tanaka said on the sidelines of the International Energy Forum here. The previous day, the IEA chief had said that oil prices, at their current levels, were "too high for everyone, especially for developing countries who face other significant costs increases", namely food prices."[27] High oil prices could tip the world economy into recession, IEA chief Tanaka warned. He said that oil prices, at their current levels, were "too high for everyone, especially for developing countries who face other significant costs increases", namely food prices. British Energy Minister Malcolm Wick said: "Many of us feel that it would be a good thing for the world economy if prices were significantly lower than where they are at the moment."[28]
Outgoing Italian Prime Minister Romano Prodi told the International Energy Forum the high oil price was hurting the global economy, especially poorer countries.[4] From Iran's point of view, oil prices were not "excessively high" compared with other raw material prices, said Iranian Petroleum Minister Gholamhossein Nozari. International Energy Agency executive director Nobuo Tanaka said oil prices, at their current level, "are too high for everybody, especially for developing countries." No single factor was to blame, Tanaka said, but a combination of factors, such as as the weaker dollar, speculation and the weather, as well as the fundamentals. Some oil producers pointed out that they actually stood to gain from high oil prices.[29] ROME (Reuters) - Oil at around $117 a barrel is too expensive, especially for developing nations, the International Energy Agency's Executive Director Nobuo Tanaka said on Saturday. "The current oil price is too high, especially for the developing countries," he told reporters on his arrival for the International Energy Forum conference from April 20-22 which brings together major energy producers and consuming nations.[30] ROME (Thomson Financial) - Oil prices at their current level are too high for everyone, the head of the International Energy (otcbb: IENI.OB - news - people ) Agency (IEA), Nobuo Tanaka, said on Monday.[31] Rapid oil price growth may lead to global recession, International Energy Association estimates. Agency's Director Nobuo Tanaka confirmed this fear in a declaration at the International Energy Forum at Rome.[32] ROME (Thomson Financial) - The International Energy Agency said on Tuesday that there was a chance that high oil prices could lead to a global recession.[33]
Energy ministers (no less than 80) and Oil company executives (no less than 40) hold a meeting in Rome under '''Energy''' subject where a blame of supply-demand curve for the increase of oil price has not materialized but rather the blame leaks in the '''weakness''' of the dollar.[34] OPEC Secretary-General Abadalla el-Badri said in Rome that there is no shortage of oil, and blamed the record-high plus-$115 per barrel oil prices on the weak dollar and speculators, according to Bloomberg.[35] Speculation is probably adding about $20 a barrel to today's oil price, Shokri Ghanem, chairman of Libya's National Oil Corp., said in a Bloomberg Television interview late yesterday in Rome. OPEC pumped 32.35 million barrels of crude a day in March, according to Bloomberg estimates, and kept its production targets unchanged at its last three meetings on March 5, Feb. 1 and Dec. 5.[8] "We are estimating the associated costs and the damages it caused and we will make a claim," Ramirez said. On record high oil prices, Ramirez said that Venezuela sees "the price in this range of $90 and above," he said, refusing to specify an upper limit. OPEC's secretary-general said oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply - something he doubted.[36] Independent energy trader Jim Dietz, is one. "It's speculation alright. It's OPEC speculating that if they don't increase production, oil will rise even more and the cartel will make even more money," Dietz said, adding that he is presently long oil, with a monthly contract. Dietz said that based on technical analysis and research he's evaluated OPEC's failure to increase production during the past year "most likely has added at least $25-$30 to the price of oil." However Dietz, along with what appears to be a growing number of oil analysts and executives, relented that in the face of unlikely adequate increases in oil supply from OPEC and other sources, the onus for price reduction will be on consumers - - both nations and individuals. Oil, he said, "is beyond the high price stage, it's getting to truly dangerous levels."[35] OPEC production is relatively well known, given the organisation provides regular quota updates. Everyone has been anticipating that OPEC would increase production at these higher prices given (a) it says it has years and years of oil left and (b) it is not in the interest for OPEC to kill demand via crippling energy costs for the developed world.[37] If we increase production we will not find people to buy the increment." OPEC has held production targets steady at each of its last three meetings - March 5, Feb. 1, and Dec. 5 - routinely blaming speculation and a weak dollar for the soaring cost of oil. The group has also expressed concern that the price would recede on its own as economic conditions deteriorate and demand drops in the world's largest oil consuming nation - the United States.[11]
The United States is in the Middle of a War, which takes alot of oil to fight, President Bush is filling the Strategic Petroleum Reserve to 1 billion barrels taking it out of the economy. If the Majority of Nation in OPEC are our Allies why are they not increasing production? Every penny Gas goes up it takes a Billion dollars out of our economy.[1]
OPEC Secretary General Abdullah al-Badri reiterated Saturday that ministers from OPEC member states did not need to meet separately in Rome. Khelil, for his part, said the falling value of the U.S. dollar was responsible for the surge in prices. "When the dollar loses one percent, the price of a barrel of oil rises by four dollars," he said.[10] Ramirez also said that the country was counting on an income of '$9 billion' thanks to a tax on oil revenues it has just adopted, which will apply when the oil price is above $70 a barrel. Ramirez said that discussions about whether oil prices should be quoted in euros rather than dollars will remain at the heart of OPEC. Meanwhile Qatari oil minister Abdullah al-Atiyah confirmed that he was not jubilant about 'the elevated oil price'.[22] The oil price reaches a new record high above $117 per barrel, as world oil ministers and oil company executiv.[38] If the price climbs to $107 a barrel, the oil company's revenue increases by just $16 a barrel from what it was at $27 a barrel. That may delight U.S. consumers who believe oil companies are making obscene windfall profits from soaring oil prices, but it hasn't made companies eager to sink their money into developing new oil in Russia.[26] Asked about biofuels, Ramirez said that biofuels would have only a minimum impact on the oil markets, "but look at the impact has had on food prices. It's madness." "All the countries of Latin America have been hit by the surge in food prices," he added. Turning to Venezuela's plans to impose new tax on oil profits, he said that Caracas was pencilling in additional revenues of around nine billion dollars. Earlier this month, Venezuela's congress approved a "special contribution" from oil companies operating in Venezuela amid soaring oil prices.[14]
Speaking at the start of the biannual conference between oil-producing and consumer countries in Rome, Abdullah al-Badri said that factors other than supply and demand, particularly the weakness of the U.S. dollar, were pushing oil prices higher.[1] OPEC and its member nations, meanwhile, are maintaining that raising capacity is unlikely to have any impact as oil prices are not following supply and demand fundamentals. Other critical factors include the weakening U.S. dollar, the political situation, market speculation and investors using commodities as a hedge, and the threat of strikes and natural catastrophes.[18] Despite robust oil demand growth in emerging markets, particularly in China and India, OPEC has repeatedly argued that the weak dollar, driven by the U.S. trade deficit and federal budget deficit, and'speculators' seeking a return on equity via short-term trade profits, are primarily responsible for oil's record rise. OPEC has never stated what percentage they think these factors account for in the present oil price. Others contest OPEC's oil equation thesis.[35]
ROME, April 21 (Reuters) - Record high oil prices have deepened economic pain and even energy producers have begun to fret, but at talks with their customers in Rome they blamed the U.S. dollar and said they could not halt the rally.[13] ROME (Reuters) - Oil prices that hit a record on Tuesday are clearly too high and not beneficial for the U.S. economy, a top U.S. energy official said.[39]
Echoing comments by other members of the Organization of the Petroleum Exporting Countries (OPEC) attending the Rome talks, he said OPEC could not bring down the price by pumping more because there was already enough oil in the market. The IMF's latest World Economic Outlook earlier this month put its world growth forecast at 3.7 percent this year, down from a growth forecast in January of 4.1 percent. It has predicted the U.S. economy would enter a modest recession in 2008 and start gradually to recover in 2009.[13] "Today there is no reason to jump up and down and say 'we will supply more crude' -- because that request from consuming countries is probably politically-driven rather than a fundamental requirement," Saudi Arabian Oil Minister Ali al-Naimi said in an interview with industry newsletter Petroleum Argus. The Organization of the Petroleum Exporting Countries (OPEC) has repeatedly said it will not use the International Energy Forum (IEF) in Rome as the occasion to revise its output policy.[20] The Organization of Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world's oil, agreed. "There isn't much OPEC can do," said Iraqi Oil Minister Hussain Al-Shahristani, rebuffing repeated calls from countries such as the United States to open up the oil taps and alleviate price pressure.[28]
The chief executive of Italian energy giant ENEL, Fulvio Conti, predicted that "oil prices will remain high as long as demand remains high." The Organisation of Petroleum Exporting Countries, which produces around 40 percent of the world's oil, denied that opening the taps, as called for by countries such as the United States, would help.[29]
London Brent crude rose US6c to US$113.98. The Organisation of Petroleum Exporting Countries saw no need to raise oil production to counter high oil prices, its president said.[40] Organisation of Petroleum Exporting Countries (OPEC) president Chakib Khelil, currently touring Kuwait, said there was no need for an immediate hike in production. He said the cartel, responsible for producing around 40 percent of the world's oil, "does not need to raise output in the near future," according to Kuwait's KUNA news agency.[10]
Kuwait City: Opec members see no need to raise oil production to counter rising prices, the Opec President said on Sunday.[41] "Chakib Khelil, the president of Opec, said yesterday that he saw no need to raise oil production" - supposedly the market so well supplied that quota raising, or even busting, is not required. Why then, a decade ago when oil was cheap were all the OPEC nations exceeding their quotas on a regular basis and now when it is at records, they are not? The temptation surely must be intense. Could it be that they are already pumping as much as they can and Opec can not increase production? Decades of cheap oil and under investment in exploration means oil has a long way to climb before it peaks.[1]
"The price seems to be rising inexorably towards $120,'' said Bill Farren-Price, director of energy at London-based Medley Global Advisors. ''''''Opec has a very limited amount of spare capacity left and may be they're trying to keep that in case there's actual physical disruption.'' "Opec's assertion that an increase in its oil production will not help to bring down prices should be put to the test," Centre for Global Energy Studies said.[12] OPEC has argued that the price is about right (in Iran's case, too low) despite ongoing expectation of a U.S. and perhaps a global recession. We know for sure that OPEC never sticks to their quotas anyway (each country "secretly" produces as much as they can) and many suspect it couldn't actually increase production if it wanted to - it is running out of oil. This would easily explain why OPEC doesn't want to lift its quota - it simply can't.[37] The OPEC chief said OPEC "will not hesitate" to increase production if the group thought the higher prices were due to shortages. He said more oil will not solve the high prices. OPEC's production levels were just one of many factors, he said, while others included the political situation, market speculation, labor issues and natural catastrophes.[36] Paolo Scaroni, chief executive of Eni SpA, Italy's biggest oil company, also said OPEC should raise production to combat speculation and increases in other commodity prices that are pushing the cost of oil higher.[8] OPEC's secretary general Abdulla Salem El-Badri estimated that production costs had risen by 50-60 percent in the last few years as a result of wage inflation and equipment costs. "That's why oil prices haven't really been a boon to producers," he said.[28] ROME (AP) — OPEC Secretary-General Abdullah el al-Badri said Sunday oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply — something he doubted.[23]
Supply from outside OPEC has missed forecasts in recent years, despite a surge in oil prices from $20 in early 2002.[38] The secretary-general of Opec said yesterday that oil prices could rise even higher than the present record level of $117 a barrel.[1] NEW YORK (Reuters) - Crude oil prices hit record highs over $117 a barrel on Monday as rebel attacks cut Nigerian supplies and a Scottish refinery strike threatened North Sea crude production.[42] Crude oil futures have doubled in three years, touching a record $116.97 a barrel on April 18 in New York. High prices are caused by an economic crisis in the U.S. and the decline of the value of the U.S. dollar, he said.[8] In the short term -- say, the next two years or so -- we're looking at bad news about global oil supply that could take the price of a barrel of crude to $180.[26]
The outgoing prime minister of host nation Italy said every $10 a barrel increase in the oil price cost the global economy $500 billion and warned there was a risk to world peace.[13] "Oil prices are at an extraordinary high level today," said Akira Amari, Japan's economy trade and industry minister, in a speech. "I have been repeatedly stating my strong sense of crisis that the global economy would suffer a setback if these conditions are left as they are." The International Monetary Fund's No. 2 official also said oil prices, which he expected to stay strong, were adding to the pain. "It's dampening growth -- that's for sure, but of course it is benefiting exporters," John Lipsky told Reuters.[5]
"We would like to discuss the oil price, it is very high,'' Shin Hosaka, director of the oil and gas division at Japan's Ministry of Economy, Trade and Industry, said in an interview today in Rome.[8]
Oil prices had jumped from just a few dollars a barrel in 1969 to more than $30 a barrel in 1981, and at the same time, natural gas prices accelerated rapidly.[43] Nowsorry I'm posting a long one but I am leaving shortly. This is just the start of energy price increases, they will continue with growing intensity as far into the future as I can see, and I can see far indeed. Iron ore is up 65% over last year, coking coal is up 200% over last yearThat will drive up the price of natural gas and oil, as drilling platforms and pipelines consume vast amounts of steelThe proposed BP natural gas pipeline from the North Slope of Alaska that is currently in the planning stage may never be constructed, as the 30 billion dollar price tag underestimates the true cost of steelChina and India will coninue to grow and consume more oil and natural gas every year.[25] Tom Price, Chesapeake's senior vice president for corporate development, said unconventional fields like the ones recently announced are the future of the U.S. oil and gas industry. "For years and years, these resources have been ignored, either because there hasn't been a capability to drill into them or because there hasn't been a way to recover hydrocarbons from them in economic quantities. "Now, we have better technologies and natural gas prices are better, and that is starting to make these types of projects economical,''' Price said.[43] The company has more than 4,800 employees, worldwide. John Richels, president of Devon, said his company constantly pursues a two-pronged strategy in today's oil and natural gas business. It continues to develop low-risk oil and natural gas exploration areas to grow its proven reserves. It invests research and development dollars into long-term projects that will give the company proven petroleum reserves in the future. "That gives us a pipeline of projects we can develop in the future,''' he said. Chesapeake, with a market cap at the end of March of more than $23 billion, is the nation's third-largest producer of natural gas in the U.S., has more than 13 million acres leased and more than 36,000 drilling locations in its inventory.[43]
You don't have to be a blind conservative not to see it, just an ignorant one to deny it. Good morning Jim,Due to the price of gasoline,life here has changed quite a bit.Any trip with the Ranger has to be essential.We've cut our weekly gas consumption from $50 to $20 just by not going anywhere.Each week we save $30 on gas,about $60 on not going out to eat,at least $15 on tips.We save about $40 dollars by not going to the coffee shop in the evenings.We've been doing this for almost 6 months now and the bank account is growing by leaps and bounds. This is what we get for voting morons into political office. Just remember.right now Abdullah el al-Badri and all the rest of OPEC are laughing at us as they become even richer. Lest we forget the Oil companies here as well and their "affiliations" with politicians.[25] McCain's Bernanking of prices and markets amounts to p!ssing in the Pacific. He should charter a boat and go fishing. Take Phil Gramm and the Fed Chair with him. This is what we get for voting morons into political office. Just remember.right now Abdullah el al-Badri and all the rest of OPEC are laughing at us as they become even richer. Lest we forget the Oil companies here as well and their "affiliations" with politicians.[25]
The U.S. needs to drill in AMWAR and the GULf. We have 30 years worth of oil there and in 30 years they had better come up with something else for energy. Its out there. They just want the windfall from it all. To continue to pay those prices for oil from OPEC when we have it right here at home is slamming the American People.[25] As I understand it from an Ottawa politician, Canada is not a member of OPEC. I don't know if the U.S. or Mexico are. Would it not make sense if these countries formed a North American oil-producing alliance where they would set the price of oil? If we want to export the excess to other countries, then the price would be the one OPEC sets. If these countries did not buy another drop of oil from OPEC, oil prices would drop immediately.[44] Separately, Opec secretary-general Abdullah al-Badri said oil prices could rise higher should the U.S. dollar weaken further.[40]
We have yet to see a substantial drop in demand so far, and as long as OPEC continues to hold capacity steady, higher oil prices are a near certainty. That bad news is only made worse by the onset of the summer driving season. As motorists take to the road this summer, they may be forced to pay as much as $4 a gallon for gasoline.[11] '''Current oil prices are too high, especially for developing countries which face other significant cost increases, and considering the threats to global economic growth at the moment''', Tanaka said. Amid various views about the reasons behind the price rally ''' some blame market fundamentals, others speculation and financial flows - the IEA sees a combination of different factors driving this phenomenon: primarily, strong demand growth in the developing world coupled with constraints in bringing new oil to the market.[15] "Oil consuming countries must take action to improve energy efficiency and promote alternative energy uses,'' Brown said in an April 16 speech in London. "But with the oil price now at $100 a barrel, both oil producing and consuming countries share common interests for the stability of the global oil market.''[8] "It is hardly probable that oil prices fall down to less than USD 90 per barrel," said on Monday Venezuelan Minister of Energy and Petroleum in Rome. His remarks to the press came parallel to the World Energy Forum held in the Italian capital city, AFP reported.[45] Biofuels were developed as part of plans to limit and reduce greenhouse gas emissions, held responsible for global warming. Since they are made from crops that take up land that would otherwise be used for food production, they have been increasingly blamed for soaring food prices. Qatari Energy Minister Abdullah bin Hamad al Attiyah said the world would have to choose "what its priority is going to be -- driving or eating." He rejected suggestions that high oil prices were behind the food crisis, which was due to food shortages. "Even the big rice exporters such as India, Bangladesh and Thailand are in the process of reducing their exports," he said.[29] High oil prices have not translated into extra supplies and oil producers have complained a rally across commodities and a shortage of qualified staff have increased the difficulty of new exploration and production projects. "Some projects -- we see it worldwide -- are delayed because they are not economical, even with this price we see today," said Qatari Oil Minister Abdullah al-Attiyah.[5]
The FT says that the realisation Saudi Arabia will not increase production to 15m barrels a day as quickly as important consumers and the markets had assumed could put further pressure on oil prices, which touched fresh records last week.[15] "Even if we raised the production we may not find a buyer," Khelil added. He referred to a an increase in output last year that failed to reduce prices, and added that the falling dollar was a main factor behind the surge in oil prices.[41]
World oil prices eased only slightly in Asian trade on Tuesday after once again spiking to a record high of 117.56 dollars the day before amid reports of pipeline sabotage in Nigeria and the refusal on the part of the Organisation of Petroluem Exporting Countries to raise output for the time being.[27] The solution is in the hands of the speculators. They're the ones who are fixing the price, not the producers," Al-Shahristani said. As oil prices surged past 118 dollars per barrel for the first time on Tuesday, some countries, such as Libya, Iran and Venezuela made it clear that they were not unhappy about current developments, since they stood to pocket higher revenues.[28]
Oil prices have jumped 22 per cent since the start of the year, largely due to a tumbling U.S. dollar, geopolitical tensions in the Middle East and unrest in major oil exporter Nigeria.[40]
"Oil prices are clearly too high. We are not happy with the prices or the direction they're going in," Kupfer said. Echoing remarks last week by U.S. Energy Secretary Sam Bodman, he said the United States would not delay its plan to buy more oil for its Strategic Petroleum Reserves, in spite of the oil price.[39] "The spate of incidents has reminded the markets of the fragility of oil supplies," said David Moore, a commodities analyst at the Commonwealth Bank of Australia in Sydney. Comments from the U.S. Government that it would not delay its plan to buy oil this northern summer for the Strategic Petroleum Reserve even if crude prices stayed above US$100 a barrel also provided underlying support for oil prices.[40] Growth expectations were based on assumptions of an oil price of $95.50 for 2008 and $94.50 in 2009, well below the record of $117.40 for U.S. crude hit on Monday.[13] Tight crude supplies and vibrant demand in China and other emerging markets -- not speculative trading -- are the main reasons oil prices have been setting record highs, a top energy official said Monday.[18] "Behind the record-high pump prices are other record highs that are less visible to the naked eye of the motorist, including record high crude oil prices and a record number of regulations that are adding costs to refining," Trilby Lundberg told Reuters. Refiners and retailers have not yet fully passed their high costs on to consumers, Lundberg said.[11] Record oil prices are accelerating inflation and help is needed from producers to lower the cost of oil, a Japanese Trade Ministry official said before a scheduled meeting with al-Naimi.[8]
Needless to say, today's $3.50-a-gallon gasoline would look cheap if oil prices hit $180 a barrel. At that price for a barrel of oil, gasoline would cost somewhere north of $5.50 a gallon.[26] Oil prices over $117 a barrel are slowing world economic growth, said John Lipsky, first deputy managing director of the International Monetary Fund. "Its dampening growth - thats for sure, but of course it is benefiting exporters," he said. "Its going to slow growth, as weve said before. Its one of the many factors this year, globally."[38]
Building a new refinery is very ($$$$) expensive (even when you factor out the environmental issues). Oil prices were low and the existing refineries (through consolidation) were able to meet demand (though they did not have much extra capacity).[25] The United States is smarting from the impact of high oil prices and gasoline at more than $3 a gallon has begun to erode demand.[20]
All the easy-to-access oil is currently being produced. We are headed for higher oil prices, no matter what U.S. demand looks like,''' she said.[43] Anticipated demand reduction may be with us, but the supply side is where the problem lies. It has become surprising how each week when the official U.S. inventory figures are released the market almost always now expects a rise, and almost always gets a fall. Barclays suggests that the table above will look different again next month, as more and more analysts ratchet up their oil price forecasts just as UBS did yesterday. Does this mean investors should be buying up oil producers in anticipation of these forecast increases? Not necessarily.[37]
ROME (AFP) — The world's oil producers and consumers, gathering in Rome for the International Energy Forum this week, agreed that the market is well supplied, but held differing views of prices and the investment needed to meet long-term demand.[28] ROME, April 19 (Reuters) - Oil at $117 a barrel has left energy producers and consumers in rare agreement there is little they can do for now to prevent prices rising higher still.[20]
Oil at over $117 a barrel should give producers every incentive to pump more, analysts say, but the supply response to record prices has been limited and few predict that would change any time soon.[38]
Regarding the current conflict between Venezuela's state-owned oil group PDVSA and U.S. giant ExxonMobil, Ramirez said that the international arbitration between the two companies had not yet started and that process would take some time. On the subject of biofuels, Venezuela's oil minister said their impact on the price of oil had only been 'marginal' while their effect on the price of food is 'madness', with all Latin American countries being affected, he added.[22] Answering a question about date of final agreement with India and Pakistan concerning "Peace Pipeline", the oil minister said, "Considering the importance of the issue and since it is a huge project, it needs adequate time and its progress now is satisfactory." At the 11th International Energy Forum in Rome which started its work on Monday morning, Italian Prime Minister Romano Prodi delivered the inauguration speech before the representatives of 74 countries, 14 international organizations and 30 oil companies. Iran's Oil Minister is to deliver his speech on Tuesday afternoon on the second and last day of the forum.[46]
"The level of stockpiles does not currently affect prices on the world market," Mohammad al-Olaim said on the sidelines of an energy forum in Rome attended by oil-producing countries, companies and consumer nations. "The fundamentals do not affect the market," he said. "If there is a need to raise" production, ministers of OPEC -- of which Kuwait is a member -- "will make a decision," he added.[10] OPEC announced that it planned to raise production capacity by five million barrels per day (bpd) by 2012 and by nine million bpd by 2020 from current output stands of about 32 million barrels per day. The IEA's number two, William Ramsay, urged consumer countries to be more vocal in their concerns. The IEF was a forum for dialogue between producers and consumers and "if consumers are concerned about prices, they probably should speak up," he said.[28] Pipeline attacks in OPEC member Nigeria last week shut 169,000 barrels per day (bpd) of Bonny Light production, forcing Royal Dutch Shell Plc to declare force majeure on exports of the crude. Nigerian rebels also attacked two Shell oil pipelines in the Niger Delta on Monday after the raid last week in what they called an act of defiance against major consumer the United States.[42]
Crude oil rose above $117 a barrel on Monday for the first time after OPEC said it would maintain current production levels, rejecting calls from Japan and Britain to raise output.[38] Saudi Arabia is the cartel's number one producer. OPEC, which pumps more than one-third of the world's oil, has kept oil production levels unchanged at its last three meetings since December 2007 and next meets to officially discuss supply on Sept. 9. Jitters over Nigerian output lent support as militants said Monday they blew up two more oil pipelines in restive southern Nigeria and called for former U.S. President Jimmy Carter to help mediate an end to the crisis.[47]
The production decline in Russia would be serious enough if it were an isolated problem. It's not. The same conjunction of geology and geopolitics is crimping production in Nigeria and Mexico, for example. In Nigeria, a third of the country's oil output by 2015 is at risk, energy advisers to Nigerian President Umaru Yar'Adua have warned, because the government hasn't been paying its share of the costs of joint ventures -- about $3 billion to date -- with Royal Dutch Shell ( RDS.A, news, msgs ), ExxonMobil ( XOM, news, msgs ), and Chevron ( CVX, news, msgs ). If the government's failure to pay jeopardizes the joint ventures, Nigeria can kiss plans to double its production goodbye.[26] Unless current policies change, world energy demand will more than double by 2030. There is a clear need for governments and industry to do all they can to increase the output response of new investment and for national and international oil companies to enhance cooperation.[15] "Today, there is no need to get worked up and say, 'We must put more oil on the market', because the demands of oil consumers are probably motivated by political reasons," said Saudi Oil Minister Ali-al Naimi. "We have raised output over last year and the prices have continued to climb," he told the Petroleum Argus, an oil industry weekly.[10] As it is in America, so it is in China and India: increased industrialization means an increased need for electricity, lubricants, oil as an ingredient in various manufactured goods, and the like. Increased prosperity in these nations also results in an increased demand for individual users, whether for cars, or products, or electricity. These are just a few of the major factors in the increase in petroleum prices since 2003-04. As complex as the issue is, no single "silver bullet" solution exists, and only one or two alterations in the overall picture can produce dramatic changes in the prices Americans experience. he next installment will explore a few of the proposed solutions that will either fail to solve the issue, or even impact it negatively. He holds a B.S. in History and Naval Science from Oregon State University.[9]
Abdalla Salem el-Badri, the secretary general of the Organization of Petroleum Exporting Countries, said Sunday in Rome that there was no shortage of oil in the market and blamed the weak dollar and speculators for high prices.[38] Venezuela, for example, is planning to impose a new tax on oil profits in a move that will create additional revenues of around nine billion dollars. The head of Libya's National Oil Company, Shokri Ghanem, said rising prices would translate into substantial additional revenues for his country. IEA chief Tanaka suggested that developments would force consumer countries to be more efficient in their energy use. It would persuade them to look more seriously into alternative energy sources, such as nuclear power and renewables.[29] The head of the International Energy Agency (IEA), which represents consumer countries, stopped short of calling for more oil, saying instead that stocks would build provided OPEC maintained output.[20] OPEC Secretary-General Abdalla el-Badri also blamed the weak dollar and commodity speculators for high prices. "As long as these factors keep contributing to the market, we may see higher prices,'' OPEC's el-Badri told reporters today in Rome, where he is attending the three-day International Energy Forum, a biennial meeting of officials from energy producing and consuming countries.[8] The rise of gasoline prices in the United States to more than $3 a gallon has eroded customer demand and spending power. Those suffering most are the poor nations, said the chief economist of the International Energy Agency, representative of energy consumer nations, adding the impact on the poorest was among the themes of the International Energy Forum (IEF) talks in Rome.[13] The impact of high prices has eroded consumer spending and energy demand in the United States, where gasoline prices have risen above $3 a gallon. Those suffering most are the poorest nations, said Fatih Birol, the IEA's chief economist.[5]
Kupfer dismissed concerns by producers that high prices would erode demand and increase use of alternative fuels, saying fossil fuels would continue to meet the vast majority of energy needs. The United States has led a push to biofuels, blamed for a steep rise in food prices as they take up land that would otherwise be used for agriculture.[39]
Oil hit a new record yesterday, supported by worries of supply disruptions in Nigeria and comments by the oil producers' organisation that it saw no need to increase production. [40] OPEC Monday rejected calls from the United Kingdom and Japan to increase production, and reiterated that the oil markets are well-supplied, Bloomberg News reported. It should be noted that oil spiked higher on a report of a possible Nigeria oil flow disruption due to a damage oil pipe, Reuters said. Oil soon gave back its gains to trade 10 cents lower at $116.59.[35] Before the war, Eni had rights to an oil field with 2 to 3 billion barrels of reserves, the newspaper reported. On the sidelines of the energy conference, Venezuela Oil Minister Rafael Ramirez said Venezuela will discuss the discrepancy between its official oil production figures and much lower estimates by OPEC during a visit by the group's secretary-general in May. "We are against using figures from secondary sources," which are often cited by OPEC in its publications, Ramirez said.[36] The producer group has 2 million barrels a day of spare production capacity, mostly in Saudi Arabia, Khelil said. Other members with spare supply are Algeria, Libya, Venezuela and Nigeria, said Khelil, who is also Algeria's oil minister.[8] Iran's oil production reaching 3 million and 963 thousand barrels per day could boost oil production by about 84 thousand barrels comparing to February. Iraq raised oil supply by 33 thousand barrels and Indonesia by 12 thousand barrels while other countries have cut down oil production during this month.[48]
Ramirez said the tax should generate $9 billion a year in revenues for the government, mostly from PdVSA. Of that, foreign oil companies would pay "the equivalent part" based on their production of some 300,000 barrels a day of production, Ramirez said.[49]
I think all observers, except our hard-core leftists, would agree that the relatively free U.S. supply market has been unable to produce profits sufficient to persuade the oil companies to construct additional refineries after consideration of regulatory add-on expenses. You are correct that I cannot affirm that oil companies would have added capacity if those additional regulatory costs did not exist; I will affirm that when any industry runs @ 100% for 30 years, someone usually adds capacity.[25]
Wittner added that if dollar weakness, which has played a leading role in driving commodities' prices to records in recent months, continues, oil may well remain an attractive investment. 'If all these investors perceive that the U.S. economy is still deteriorating and the Fed (U.S. Federal Reserve) is going to cut rates, it makes sense that the dollar will weaken, and that could translate into crude strength,' he said.[47] Meanwhile OPEC declared Iran's crude oil price has increased by 8 dollars in March.[48] Iran's average crude oil price has risen by 8 dollars and 17 cents in March reaching to 92 dollars and 17 cents.[48]
As oil prices spiked to fresh records of above 117 dollars, participants at the IEF predicted that the situation was unlikely to change any time soon. "We believe that prices will remain around this level, at least around 90 dollars," Ramirez said.[29] No single factor was to blame for the surge in oil prices and there is no short term solution to bring down the record level, Tanaka said. 'Lots of elements are behind it,' he said.[31]
Oil prices have risen fivefold since 2002 and smashed a record on Monday of USD 117 per barrel.[45] Sabina Castelfranco reports from Rome the meeting, which ends Tuesday, is being held as crude oil prices reached a record high.[24] ROME (AFP) — High oil prices are here to stay, but they cannot be blamed for the current global food crisis, an international forum heard on Monday.[29]
TamikaI too am a Hillary Clinton supporter, but the President (not even Bush) has any control of the oil prices. Scott re: "I hear people all the time say we have oil here we have oil there and it is this much and that much.[25] Wicks insisted that the problem of rising oil prices was not "a football match" that pitched producers against consumers. "It's not a matter of one side blaming the other. It's a problem we all share," Wicks said.[29] Record high oil prices are hitting consumers at the pump, and have experts warning that habits must change.[38]
"When I asked the question, 'Are there any ministers who don't agree' -- total silence." At first, rising oil prices had a limited impact on the world's economy, but they have begun to bite.[5] The solution is in the hands of the speculators. They're the ones who are fixing the price and not the producers," Al-Shahristani said. Qatar minister Abdullah bin Hamad al Attiyah insisted that he did not like the fact that oil prices were so high.[14]
Barclays suggests we will yet see a higher oil price in 2008. That is not to say there will be no effect on demand.[37] I'm as prepared as I can beI'm not as stupid as Republicans who think oil prices will drop significantly in the future. China is industrializing at a fast rate, unless they stop, demand will continue to increase.[25]
The declining value of the dollar, based on factors ranging from deficit spending to increased entitlement payouts to the chaotic stock market, means that Americans have been hit harder by the increased price of oil relative to other countries that have enjoyed steady currency values. This is further complicated by the recent slowing of American economic growth, which has compelled oil speculators to invest in oil futures as a "sure thing." The result of this set of controls is that the actual American demand for oil is perceived as disproportionately drastic by Americans.[9] "When you are in the commodities business, you are at the mercy of the market.''' He told The Oklahoman that technology is going to be a driver of the market in the future, particularly when it comes to recovering natural gas from unconventional reservoirs such as shale plays. The use of captured carbon dioxide will be important to unlocking more oil reserves from previously producing fields, he also noted. Prices need to stay strong in order to encourage additional growth of domestic reserves, he said. "It is going to be interesting to see how Congress behaves toward our industry. There are areas we feel like have oil and gas in them that are off limits and we can't access.'''[43] Prices are reaching record-breaking levels, but so are costs companies have to pay to get the oil and natural gas out of the ground.[43] "We continued to drill during the tough times.''' Triad steadily has grown through ticks up and down in prices for oil, adding dozens of employees and hundreds of wells ''' a plan he and other company officers intend to continue to pursue, even with the rapid rise in oil and natural gas prices just within the past year.[43] Then in 1982, everything changed when oil and natural gas prices collapsed, banking institutions failed and the real estate industry was in decline. After that, many of these giants were sold by bits and pieces, or even all at once.[43]
McCain's idea of suspending the gas tax is a joke. How will transportation improvements, esp those which reduce congestion/ increase gas efficiency be funded. The Federal funding level is down already (not up to the latest transportation bill levels) and this state refuses to address reality (inflation, price of oil, loss of jobs, mobility, air quality,value of the dollar etc.)[25] Prices remained well underpinned, however, by supply disruptions in Nigeria and Scotland, dollar weakness and OPEC's refusal to provide the world with more oil amid record prices.[47] OPEC also blames the weak dollar and market speculators buying oil to sell it on when the price rises.[3]
Further support came as OPEC officials said the market had enough oil and that the producer group would not ramp up output to help bring down prices despite calls for more oil from some consumer nations.[42] The energy sector should not be viewed only as the cause of the climate problem but also as part of the solution''', Tanaka said. It readily lends itself to provide the type of transferable skills required to prosper in a low carbon economy. An essential step in this process would be to continue the dialogue between producers and consumers, Mr. Tanaka said and stressed that the dialogue had already resulted in concrete achievements such as the Joint Oil Data Initiative (JODI). '''It must now focus on areas where progress is needed and where mutually beneficial outcomes are possible''', he said, citing as an example cooperation between the IEA and oil cartel OPEC on carbon capture and storage -- a technology which would be doubly beneficial as it would lead to lower CO 2 emissions while enhancing oil recovery.[15] Soon, consumers will no longer be able to afford oil, and the bubble will burst. Other sources of energy, which already exist, will take hold, and oil companies and OPEC, a creation of EXONN-MOBILE and partners, will begin to listen to their victims, who must simply alter their consumtion of oil products to end the bidding war in the commodity pits.[35]
"OPEC will not hesitate to increase oil production if there's a shortage of oil, but there's no shortage of oil in the market,'' the secretary-general said in Rome.[8] Opec President Chakib Khelil, who is also Algeria's Energy and Mines Minister when questioned on Opec's production plans said: "I don't think that any increase in production will have an impact on prices.[41] "No," said Chakib Khelil, who is also Algeria's Energy and Mines Minister, when asked by reporters if Opec would raise production. He added that raising production would have no impact on prices as the market was well supplied.[40]
The IEA, which advises on energy the major economies that make up the Organization for Economic Co-operation and Development, has in the past urged OPEC to increase production to tame prices.[30]
There's the weakness of the dollar, speculation and some supply and demand concerns pushing up the price. The OPEC chief said production would be increased if they thought that higher prices were due to shortages, but they aren't." How much higher it will go, of course it depends on a number of things: the political situation, whether there is a natural catastrophe, whether there are speculations in the market, whether there are strikes in certain producing countries"al-Badri said.[25]
The world's largest economy (by far) is undergoing a significant contraction, some might even say a recession, and on that basis the demand/supply fundamentals simply have to favour lower priced oil. At the same time the world has been madly, madly rushing to explore for more oil, expand existing wells and fields, flush out old wells, drill deeper and deeper, trek further and further into the wilds - in short, with such high prices the old adage of supply increasing to meet demand is in play.[37] "Oil prices, there is a common understanding that has nothing to do with supply and demand," al-Badri said on the sidelines of an energy conference in Rome.[18] "Oil spikes have nothing to do with demand and supply. The world's oil reserves are at their highest level and there is enough energy in the market," Kazempour-Ardebili said at the 11th International Energy Forum (IEF) in Rome Monday.[19] Oil minister in Rome to attend IEBF, IEF meetings TEHRAN (IRNA) - Iran's Oil Minister Gholam-Hossein Nozari, heading a delegation, arrived in Rome on Saturday to attend the 11th session of International Energy Business Forum (IEBF) to be held in the Italian capital on April 21-22.[50] Government energy ministers from oil-rich nations and international oil company executives are attending a three-day International Energy Forum in Rome.[24]
The International Energy Agency (IEA), the Paris-based energy adviser to industrialised countries including Ireland, said today that during the past five years, spare oil producing capacity has fallen below the 3-4 mb/d (million barrels per day)typical of the past decade.[15] Representatives of some 60 exporting and consumer countries meet every two-year at the International Energy Forum. They include members of the Organization of the Petroleum Exporting Countries, which pumps about a third of the world's oil. The IEF describes itself as ""the largest global gathering of energy ministers"" and says its particular approach aids development of contacts and understanding on the key issues.[50] Members of the Organization of the Petroleum Exporting Countries and oil experts kicked off an energy conference in Rome over the weekend, from which mixed signals over the future supply/demand picture have emerged.[47]
Iran, as the second largest oil producer among OPEC countries, will provide about 13 percent of the world's demand for oil during the next 20 years. Earlier this month the Iranian president visiting OPEC secretary general Abdullah Salem al-Badri called for OPEC members to devise a comprehensive plan to preserve the oil exporting countries interests.[48] Iran's OPEC Governor Hossein Kazempour-Ardebili has termed as political pressures imposed on producer countries to raise oil output.[19]
Oil ministers from the 13 OPEC member states are joined by chief executives of major producers in Rome for the conference that started Sunday.[7] OPEC officials including Saudi Arabian Oil Minister Ali al- Naimi have rebuffed previous requests from U.S. and European politicians for more oil, saying supply is sufficient.[8]
Quizzed about billing oil in euros rather than dollar so as to protect producers against the declining dollar, Ramirez said that the issue would continue to be discussed within OPEC. Last month, Venezuela said it would sell some of its oil in euros to help offset the economic impact of the falling U.S. dollar.[14] Producer countries have blamed the weakness of the U.S. dollar for the strength of the oil market and have said supplies for now are more than adequate.[39]
The United States has been remarkably resilient in the face of expensive energy, but a rally on oil to more than $118 a barrel is an economic threat, U.S. Acting Deputy Secretary of Energy Jeffrey Kupfer told a news briefing.[39] Some economists, including economist David H. Wang, argue that it will be difficult for the U.S. economy to grow at capacity, 2.5-3.0% per year, with oil at/above $85 per barrel. Others argue that the so-called 'growth breakpoint' for the economy is considerably higher, perhaps as high as $110-120 per barrel.[35] Speaking after oil hit yet another record above $117 a barrel on Monday, the IMF's John Lipsky told Reuters the price was one of many factors eating into economic growth. "It's dampening growth -- that's for sure, but of course it is benefiting exporters."[13] 'We have bullish news everywhere you look,' said Mike Wittner, a Societe Generale (OOTC:SCREF) analyst, who explained that even though a record $117.60 was achieved earlier in the day, prices were now at the same level as Friday's close. 'I still think investor flows are as big a factor in oil as they have been,' he said.[47] Light sweet crude oil for May delivery settled at a record $117.48 per barrel, up 79 cents, on the New York Mercantile Exchange, after reaching an intraday high of $117.76.[38] Crude oil for May delivery rose as much as 71 cents, or 0.6%, to $117.40 a barrel in electronic trading on the New York Mercantile Exchange, the highest since futures started trading in 1983.[12]
Crude oil futures are up more than 20 percent so far this year, and today oil climbed to nearly $118 a barrel, with no sign that a major retreat may be near.[51]
While most Americans are anxious about rising fuel costs, and all Americans are impacted by the increased price for oil, the reasons for the quick rise in the price of a barrel of crude since 2004 are many and complicated.[9] Yesterday Australia was granted leave to expand its territorial waters for mining purposes, yet treasurer Wayne Swan noted the obvious that no one can get hold of a spare offshore oil rig at the moment anyway. The scarceness of equipment and labour has helped push the cost of producing oil through the roof, and as such there must be a flow on to the clearing price of crude.[37]
'The market is very confused. We are confronted by many difficulties, not only the price of oil but also enormous costs,' he said. [email protected] Copyright Thomson Financial News Limited 2008.[22] Ramirez also said that Venezuela plans to make a claim for compensation from Exxon Mobil Corp. (nyse: XOM - news - people ) for the costs and damages caused by a U.K. court case in which the U.S. oil company had unsuccessfully sought to freeze the overseas assets of Venezuela's state oil company as part of a larger legal dispute.[36]
We'll just have to suit up and run real fast instead. I've forgotton exactly which "oil crisis" this point was made, but a letter writer to the AJC once wrote to the idea that "If we could find a cheap substitute for oil and the Arabian economy was suffering because of it, we would help them out. If in the Arab view, there is enough oil, then why the ever increasing prices on American people? Some might be due to new "emerging nations", but isn't that just a part of the story? Nor is the cause just a shortage of oil refineries. Whatever it is, it's not just the above.[25] "The Consumer sets the price" and we've done a good job of it. Right-wing nuts search for new oil drilling sites like heroin junkies search for new veins between their toes. It would be funny if it wasn't so sad.[25] Well, if the idiots in Washington would stop all foreign aid, increase the price of food by 500% immediately to these oil countries, start hitting them in the stomach like they hit our pocket books we might see some relief.[25] As one can no doubt note most analysts have been behind the curve, not in front of it. It's only a catch-up. Oil producer share prices not only run up with each incremental increase in the spot price, commodity producer share prices always outperform their underlying commodity price (and vice versa on the downside). UBS analysts lifted their 12-month targets for oil producers mostly from below the market to above it, yet they are retaining a Neutral rating on Woodside (WPL) and Santos ((STO)), and downgrading both Australian Worldwide Exploration ((AWE)) and Tap Oil ((TAP)) from Buy to Neutral.[37] The Financial Times reports today that Saudi Arabia, the world'''s biggest oil producer, has put on hold any plans to further increase long-term production capacity from its vast oil fields, its most powerful policymakers have said.[15] The Movement for the Emancipation of the Niger Delta, or MEND, said in a statement that fighters hit two pipelines it believes are operated by Chevron Corp. (NYSE:CVX) and a Royal Dutch Shell Plc. (NYSE:RDS A) joint venture in southern Rivers state. 'MEND's leaders said that they intend to escalate activities against the oil companies operating in the Niger River Delta area, and although they've made that same claim many times in the past, with Nigeria's production already waning and with the United States' dependence upon high quality Nigerian oil growing, even small problems become large ones swiftly and easily,' said Dennis Gartman, editor of The Gartman Letter.[47]
"Venezuela has proposed that another reference be sought," to determine oil production figures. OPEC Secretary-General Abdallah Salem al-Badri will visit Venezuela in May and "we will take him to all our terminals and present him with a summary of all the ships and tankers that depart every day," Ramirez said.[36] ISNA - Tehran Service: Economy TEHRAN, April. 21 (ISNA)-Iran has managed to most raise oil production among OPEC members.[48] OPEC also reckons the current production level is adequate but the market used the cartel's stance as a reason to buy oil earlier today.[47]
Chakib Khelil, Algerias energy minister and the president of OPEC, said that even if it raised production, "we will not find people to buy the increment," according a report on Sunday by Kuwaits state news agency.[38] "If the producing countries maintain the current level of production, stock levels in consuming countries will come back," said IEA Executive Director Nobuo Tanaka. "That will give a better balanced market." He said the price was too high, especially for developing countries. Previous IEF meetings have been dismissed as talking shops, but Tanaka said the energy executives and roughly 60 ministers attending would find "common issues and common interests" and he wanted to see them all agree the price was too high.[20] 'The International Energy (OOTC:ILGL) Agency's view is that the prices are too high for everybody, especially for developing countries,' International Energy Agency chief Nobuo Tanaka told journalists on the sidelines of the conference. 'the current level of production is enough and sufficient,' he said.[47]
International Energy Agency head Nobuo Tanaka warned that current prices, which hit a record of $117 a barrel, are too high for all consumers and particularly punishing for developing nations.[24] International Energy Agency head Nobuo Tanaka also warned that current prices are too high for all consumers and are particularly punishing for developing nations, where fuel accounts for a big chunk of consumer income.[18]
"When I spoke from the podium I asked the ministers, 'Do you agree with me that current prices are too high' -- totally quiet," said Nobuo Tanaka, executive director of the International Energy Agency, which represents consumer nations.[5]
Government ministers will meet energy companies, charities and consumer groups to discuss the issue of energy prices at a fuel poverty summit on Wednesday, hosted by Ofgem.[1]
British energy minister Malcolm Wicks Britain hopes to develop a new technology to "capture" and store carbon dioxide from burning fossil fuels instead of releasing it into the atmosphere. "My government has said that we will publicly fund a large-scale demonstration project of carbon capture and storage (CCS)," he said. "It will be one of the first in the world based on a coal-powered station, stripping out the CO2, transporting it, storing it in a depleted oil or gas reservoir under the North Sea."[29] WASHINGTON, April 18 (UPI) -- In the past few years, Iraq's oil and gas sector has been featured in numerous conferences aimed at linking top government officials with the global energy industry, all of which have taken place outside Iraq.[2] Industry tracking numbers provided by the Oklahoma Independent Petroleum Association, collected using data from the Oklahoma Employment Security Commission and the federal government's Bureau of Labor Statistics, show the numbers of workers in Oklahoma's oil and natural gas industries climbing steadily. In 2000, about 36,000 men and women in Oklahoma were working for oil and gas companies and other companies supporting them. At the end of 2007, more than 70,000 Oklahomans were employed by those companies, the figures show. Even so, you don't see anyone in the oil business drinking champagne out of boots these days.[43] Three decades ago, companies like Kerr-McGeeCorp., Phillips Petroleum Co., Conoco Inc. and Cities Service Oil Co. were world leaders in the natural gas and refining business that called the Sooner State home.[43] Big and small, it seems like oil and natural gas companies across Oklahoma are growing.[43]
Some North Sea oil and natural gas output will have to be shut in if the union halts the refinery, operator Ineos said. Despite oil's rise to fresh peaks, OPEC officials reiterated their insistence that markets have enough crude.[42] Nearly half of the company's estimated proven oil and natural gas reserves are in the Mid-Continent. It recently announced yet another significant new unconventional field for natural gas in Louisiana, along with others in southwest and western Oklahoma, and new unconventional oil fields they have yet to name. This company also has grown dramatically, building dozens of buildings on a 50-acre campus near NW 63 and Western. The company employs about 6,500 people, with about 2,400 of those in Oklahoma City.[43] Then there's the additional cost of getting the oil and natural gas from remote wellheads to market.[26] Today it is the largest independent oil and natural gas producer in Canada.[43] Completely unnoticed in the Western media, a Russian transport initiative holds promise to revolutionize the maritime carriage of products throughout Eurasia, including the oil and natural gas so hungrily sought by European consumers.[2] Chesapeake owns interests in about 38,500 oil and natural gas wells producing about 2.2 billion cubic feet equivalent a day.[43]
The going rate in America is five bucks per unit, but Japan is willing to pay ten bucks plus, as is England, and Spain, with some prices going as high as 20 bucks per unit. The host countries renegotiated their contracts with the American companies for the remainder of their ten year contracts: they agreed to share the excess profits with the American companies in exchange for being able to sell the liquid natural gas to the highest bidder.[25] On the sidelines of the 11th International Energy Forum here Monday afternoon, Gholam-Hossein Nozari, answering reporters whether Iran has announced a deadline for Total and Shell companies said, "After many years of cooperation and studies we try to reach an agreement with these companies, but if they cannot continue their cooperation by any reason, there are many other companies which are ready to cooperate with Iran, especially in the field of Liquid Natural Gas (LNG).[46] The Williams Cos., with a market cap of $19 billion, is one of Oklahoma's oldest energy companies today. It started by building sidewalks, but then moved into Oklahoma and into the natural gas pipeline business. Later, it became involved in telecommunications and energy trading, but those days are done.[43]
Access to large reserves is getting harder and projects are becoming more complex, increasing the risk of delays. "The international oil companies dont have as much access to the oil as they had in the past," said Adam Sieminski, chief energy economist at Deutsche Bank. "That and other hindrances are slowing down the supply response." [38] The IEBF provides a platform for discussion between energy ministers and heads of international oil companies.[50]
In other industry developments, Iraq's Oil Minister Hussein al-Shahristani said that oil contracts between the autonomous Northern Iraqi Kurds and foreign companies remain invalid, despite recent amicable talks between the two sides over the country's long-delayed federal oil law. The Kurds have signed around 25 production-sharing contracts with several small and mid-sized oil companies, but Al-Shahristani said they do not meet the conditions of the draft 2007 law.[18]
Saudi Arabian oil minister Ali al-Naimi was quoted as saying there was no need 'to get worked up' and call for more oil to be put on the market.[47]
'''In short''', Tanaka said, '''the world''s energy economy is on a pathway that is not sustainable'''. This is valid for the oil market, where there is an urgent need for investment, to ensure an adequate cushion between supply and demand returns to the market. This is also true from an environmental perspective.[15] Until we change our demand there is not reason for BIG OIL to change theur supply. I got a great idea! Go Fish Sonny should act seriously about allowing state employees to alter their work weeks to either telecommute or work 4 x 10 hour days per week. Here's one they tried to sweep under the rug but couldn't. (http://en.wikipedia.org/wiki/Who Killed the Electric Car%3F) This Wikipedia page has all the details of the movie.[25] The price of oil will continue to rise. Its basic economics; supply and demand.[25] "If we add more oil to the market, I am sure it will not solve the problem.'' Oil consumption in some parts of the world, including the U.S., may be affected by high prices, though Asian demand won't be, he said.[8]
When the dollar declines in value, as it has declined in value over the last several years, it takes more dollars to buy a barrel of oil, and that translates into higher prices at the pump.[9] Tanaka rejected the idea that the oil price might rise just because the dollar decreases. He said that the oil price grows due to the current economic context, as global financial markets are in crisis.[32] The good news is that's about the price, experts now say, that would send global consumption tumbling and oil prices into retreat, as drivers scrambled to find ways to conserve.[26]
The sudden spike in crude oil prices have NOTHING to do with government interference.[25] The Kremlin has structured taxes so that most of the extraordinary rise in oil prices flows into government coffers, not oil-company profits.[26]
Participants at the oil summit in Rome do not seem to find agreement on what is causing the rise in oil prices.[24] Tom Ordeman, Jr. Author's Note: Given that oil prices hit record highs again this week, I thought it might be helpful to provide FSM readers with some facts, free of polemic or agenda, about the reasons for rising fuel prices in America. This is a revision of an article originally written in 2005, broken into three parts.[9] I believe that capped off wells in Texas could be re-exploited; that Alaskan oil could also be used domestically; that we could stop selling oil to other nations; that export of American technology and services should be tied to oil prices and used to OUR benefit.[25] Tanaka warned that the negative economic impact of a rapid oil price growth will be felt mostly by emerging economies or under-developped ones.[32] At the last monthly Reuters price poll, UBS was hanging on to US$74.00. Such a price seems but a distant memory. US$86.96 also implies a significant fall in the oil price from US$117 for 2008 to ultimately see such an average.[37] It is obvious that this oil price spike is part of a protracted effort by our adversaries.[1]
Because oil is priced in dollars, oil tends to rise when the dollar falls, as producers / traders bid the price up in an effort to preserve dollar-denominated purchasing power.[35] Though that hasn't been the case so far. Tight supplies and strong demand in emerging markets such as India and China have driven the price of oil to a series of record highs.[11] Prices have been driven by strong demand, especially from Asia, and a chronic lack of investment in oil infrastructure.[5]
The price of oil is increased through two bottlenecks: supply, and refinement capacity. While oil is found in many areas of the world, a number of these locations are either difficult to locate or exploit (like undersea fields), or in unstable areas (like the Middle East ).[9] A notable amount of American oil comes from places like Saudi Arabia, Nigeria and Venezuela. Not only are several oil-producing nations prone to supply and transport delays caused by violence or other instability, but many of these countries actually refine the oil they produce, turning it from crude into end products like diesel, gasoline, or lubricants.[9] It doesn't help matters that there is absolutley no incentive for BIG OIL to refine any more crude. The more they refine, the less we pay and the less they make. It's supply and demand.[25] The cartel's president Chakib Khelil effectively ruled out an increase in supply by saying there is no need for an immediate increase in crude production because there is a balance between supply and demand.[47]
Several pipelines in the oil-rich delta region of southern Nigeria were reportedly blown up and a Japanese oil tanker was attacked off the coast of Yemen. The president of the Organization of Petroleum Exporting Countries indicated that the group would not raise its production quotas.[51] ROME (Thomson Financial) - The Organization of Petroleum Exporting Countries (OPEC) plans to lift production capacity by 5 million barrels per day by 2012, the cartel's secretary general Abdulla Salem El-Badri said here on Tuesday.[52] The total amount of oil provided by OPEC members in March was hit to 32 million and 10 thousand barrels per day facing a considerable downfall comparing to that of February.[48]
Most of it will be paid by PDVSA, since foriegn companies produce only around 300,000 barrels of oil per day in Venezuela out of a total of 2.8 million barrels, Ramirez pointed out.[14]
Per the USGS there is an estimated area in western North Dakota that holds up to 4.3 billion barrels of recoverable oil! It is referred to as the Bakken Shale. It is larger than any other USGS oil assessment in the contiguous United States.[25] Then vote all oil contracts to the United States. Since we have taken care of their people for all these years turnabout is fair play.[25] IEA chief Tanaka predicted the oil market would become "more balanced" in the short term as stocks were replenished. The IEA is projecting world oil demand to slow this year, not least because of the economic slowdown in the United States.[28]
The average price for a gallon of gasoline in the United States hit a record high $3.4737 yesterday, according to the nationwide Lundberg survey of about 7,000 gas stations. Gas prices have already jumped 53.47 cents this year.[11] Most service stations in the United States now incorporate a percentage of ethanol in every gallon of gasoline. That constitutes a large quantity of ethanol, and when one considers that nearly the same amount of gasoline is burned in the production process, and the longer and more complicated process of producing combination gasoline-ethanol results in a higher overall production cost, it's easy to see why the increased production of ethanol has failed to reduce the price of petroleum.[9] The high cost of new projects does not set the flow-through price for all production.[37] High prices were here to stay, not least because the production costs had risen, too, the countries argued.[28]
Say the analysts, "Marginal costs have never really served as a useful explanatory tool for price dynamics, as the economics of the oil market do not (and have not since the 19th century) involve price-setting at the margin of the market by high-cost producers".[37] The oil sector alone needs $5.4 trillion. Although spending has recently increased, supply growth could remain sluggish, because of increasing costs and a proliferation of above-ground risks, such as more frequent access limitations and tighter fiscal and regulatory regimes.'''[15] Every $2 increase in the cost of oil adds about 1p to a litre of petrol at the pump in Britain.[1]
There would be a small middle class about 12%that would be the managers. Their control of the nation's wealth would be about 15%. Then there would be 70% of the populaton that would make up the working poor butthey wouldn't realize that they were poor as they would have more stuff than ever before, but virtually NO individual liberty! The fourth class would consist of the extremely poor and the dregs on the dole. This professor went on to prophesy that the indicators of the implementation of this conspiracy would be the massive increase in the cost and availability of food and the restriction of travelvia economic constraintsas opposed to legislation. I thought he was an idiot, but I am beginning to think that his notions might need to be reviewed. Harold is still riding his bike and snickering at everybody the whole way. These prices are really hurting my wallet, as my 17 year old just got her driver's license, and wont be getting a job until school is out. Our vaction this year will be local.[25] Certainly many ministers. said we need to send a clear message that supply is coming when demand is there." As he arrived on Saturday for the meeting in Rome, Tanaka said he hoped the forum, which is held every two years, would agree that prices were too high.[16] A host of supply and demand concerns in the U.S. and abroad, along with the dollar's weakness, have served to support prices, even as record retail gasoline prices in the U.S. appear to be dampening demand.[23] Having the oil to drill is not the question. In answer to your statement and question.Why would Exxon, Shell or any of the other companies that are recording record amounts of money want to drill for oil? It's called supply and demand! They want to keep it at a premium.[25] LONDON, Apr. 21, 2008 (Thomson Financial delivered by Newstex) -- Oil on Monday eased slightly from record levels reached in the morning on profit taking and as some energy experts said oil supply was comfortable.[47] "I have observed an unprecedented level of uncertainty, doubt and even fear in discussions about the future of energy and its impact on global economic prospects," al-Naimi said. "I can assure you unequivocally that the world is not running out of oil," he insisted. The root of the problem was primarily due to "limited capacity along the entire supply chain. at its heart, this is not an energy resource issue; it is primarily an investment issue," he said.[28]
Perdue's statement that since GDOT overprogramed projects/cost increases are the reason to not allow the citizenry to vote on raising the local regional tax is ridiculous. We have only ourselves and our self serving politicians to thank for this debacle. The politicians won't tackle the problem for fear of loosing PAC dollars from the oil and automobile lobby which keeps them re-elected. The soccer moms with their Yukons and Tahoes can afford to pay most anything for gas just so the supply is not restricted.[25] Passively stupid? Yeah, continuing to elect the same corrupt politicians. Don't you realize that everybody political from the President on down are in bed with the oil barons or ARE oil barons themselves? Why would they reduce their own profits? Anyways, THEY don't put gas in their vwhicles - we do because they are driven around in chauffuered limousines which OUR tax dollars keep fueled.[25]
Governmentvia taxesearn more from the sale of gas than the oil companies. They should have to forgo their free largess, also. Is this going to happen? Hell NO because nobody-on either side is willing to compromise ONE INCH to do what is good for the country.[25] There have been no refineries built in the USA in the last 35 years because none of the oil companies have tried to build one. Many smaller refineries have been bought by the oil companies and closed with their excuse being "they are not profitable."[25]
Things were simple and prices were low as long as there were no competitors for the oil.[35] GW & Dickey Chaney are sitting in the whitehouse making millions on the price of oil. They are OILMEN after all. They don't give a crap about us suffering. They are making money hand over fist.[25] U.K. Prime Minister Gordon Brown last week urged producing nations to provide more oil to "respond'' to higher prices, to make sure markets are "adequately supplied.''[8] There's also a persistent outlook that prices are going to continue rising. "It is still not pretty,''' said Sue Ann Hamm, manager of crude oil marketing for Continental Resources Inc. in Enid. "Until many alternative energies are in use, declining supplies of oil will dictate price,''' she said.[43] In a speech, he added high prices emphasized "the urgency of policy actions in the area of oil investment".[5]
"The price seems to be rising inexorably towards $120,'' Bill Farren-Price, director of energy at Medley Global Advisors in London, told Bloomberg News. "OPEC has a very limited amount of spare capacity left, and maybe they're trying to keep that in case there's actual physical disruption.''[51] With gas prices in the Metro Atlanta area already approaching $3.50 per gallon for regular, the Secretary-General of OPEC, Abdullah el al-Badri, predicted Sunday that they'll go even higher.[25] Even the Energy Information Administration predicted the average price for gas would peak at $3.60 per gallon by late spring with interim price spikes of more than $4 a gallon - a prediction many analysts saw as conservative.[11]
Biofuels, once seen as a key factor in curbing greenhouse gas emissions, lie behind the stunning rise in food prices worldwide, participants at the International Energy Forum suggested.[29] The International Energy Agency now estimates that worldwide production from older existing fields is now falling each year by about 4.5 million barrels a day.[26] Any decline would mark a huge turnaround. Russian production has grown steadily over the past 10 years, and in its supply-and-demand projections the International Energy Agency has been counting on growth in Russian production of 5% by 2012 to offset big declines in older fields in the North Sea and Mexico.[26]
According to the Russian energy ministry, oil production for the full year could be lower than in 2007.[26]
The forum, which meets every two years, brings together some 60 energy ministers, as well as top executives of the oil industry, but is often dismissed as a talking shop.[5] Venezuelan Energy Minister Rafael Ramirez said biofuels were having a negligible impact on the oil markets.[29]
"We are against using figures from secondary sources," Ramirez said, saying that such estimates came from sources linked to the IEA - the energy watchdog of major industrialized nations - which he described as a "political agency" biased toward oil consuming countries.[49] America and Americans is not a priority any longer it is about looking good to other countries. No mention of the oil companies? How about they make $10billion per quarter rather than $20billion.[25] When oil rises above $27 a barrel, the Russian government takes 80% of any additional revenue in taxes. That means at $67 a barrel, an oil company gets just $8 more a barrel in revenue than at $27.[26] "For years we've been saying the era of cheap oil is over,'' Libya's Ghanem said. "None of us thought it would reach $115 a barrel so quickly, so it could reach $120'' this week, he said.[8] You'd think that would be easy when oil is selling for more than $115 a barrel. It's not.[26]
In the case of (1), note that when gold traded at over US$1000/oz last month oil was at around US$105/bbl. Gold is supposedly the most closely correlated to the U.S. dollar but it's now at US$916 and oil is at $117. The U.S. dollar has been relatively steady this last month. As for (2), well yes - the latest is more Nigerian sabotage and if it's not that it's ranting from Iran or more trouble in Iraq or Venezuela trying to throw its weight around.[37] One of the most pressing factors in the oil crisis is that oil is traded on U.S. currency. What's this mean? That it's bought and sold on a dollar rate, as opposed to pounds sterling, euros, or yen.[9]
You can just about imply a geopolitical tension premium permanently, which is part of the reason we're at US$117 and not US$57, and not a lot to do with why we're not at US$87 by now. Those remaining bullish of oil put their views down to this factor most decisively, usurping any demand fall due to a weaker U.S. This relies on the "decoupled" theory, and one must remember that the U.S. economy is far, far larger than that of China's, which in turn is very large among its developing peers. As for (4), Barclays' analysts note this has become a popular explanation.[37] "Unfortunately, the U.S. is no longer the only country looked to for demand of commodities. Many existing economies, Europe, and emerging economies, South America and Asia, are also drawing heavily on fossil fuels for their manufacturing industries ''' remember, we are now a 67-percent service industry economy ''' so their demand is much more a dictator of where demand and price are headed.[43]
We need to act fast. Our whole economy is hinging on this. It is not just the gas that we put in our tanks but it is everything that is touched by fuel. groceries, general retail items everything is going up. Anyone else notice how wooten felt he had to provide a link in his piece to prove that gas prices were high and going higher, like we wouldn't believe him or his piece wouldn't have the background it needed to have the impact he wanted.[25]
The oil story is primarily one of demand--and by two countries in particular: China and India, the two most populous nations. Their economic booms are drawing off inventories even as the world's biggest economy, the United States, slows.[51] The next largest contiguous oil accumulation in the United States is in the Austin Chalk of Texas and Louisiana, with an undiscovered estimate of 1.0 billion barrels of technically recoverable oil.[25] The United States has not constructed a new oil refinery since the Carter Administration.[9]
"Just when the future seems preordained in the oil market, the unexpected can unfold. It did in the decade following 1998, just as it had several times since 1970. This year will be a stiff test for the new oil-price era that dawned on the world several years ago."[51] Russia, the second largest oil producer in the world after Saudi Arabia, has been producing less and less oil, and has seen a sharp drop in output since 2004, with a 7 per cent decline last year.[17] In the longer term, the IEA "wants to see more stockpiles and more spare capacity," because "low investment and low spare capacity are making the market very volatile," Tanaka said. Saudi Arabia, the world's biggest oil producer and the only country to have significant spare capacity at its disposal, "is investing as expected" in infrastructure and production, Tanaka noted. "But we can't expect them to do everything," he said.[28] In addition to the short-term misery inflicted by government overlords onto the citizenry, there is a semi-legitimate long-term issue also, decline in the production of oil fields all over the world, as there is less oil available for plunder.[25] Total oil and gas production will fall 30% by 2015. Where has the money gone that was supposed to go into the joint ventures? It's in the pockets of just about any Nigerian government official with any clout.[26] The dispute between the the central government in Baghdad and the Kurds has dragged on for many months, delaying agreement on a final oil law that Iraq badly requires to attract foreign investment and increase oil production.[24] The dispute between the two sides has dragged on for many months and delayed agreement on a final oil law that Iraq needs to provide the legal framework critical to attracting foreign investment and ramp up oil production.[18] Tanaka did not make that recommendation. "If the producing countries maintain the current level of production, stock levels in consuming countries will come back," he said. "That will give a better balanced market." Pressed on whether he thought producers should pump more, he replied: "I think we need the maintenance of the current levels of production." He added that he hoped the IEF talks would result in agreement to promote carbon capture and storage technology -- the capture and burying of gases seen to cause global warming. "I sincerely hope, and will ask the ministers that they will come to a consensus that this technology will be accepted as part of the U.N. negotiation process," Tanaka said, making reference to international talks on replacing the Kyoto protocol on climate change.[30] "We think the current level of production is enough and sufficient," said Nobuo Tanaka, head of the International Energy Agency, which represents the interests of oil-consuming countries.[28]
Speaking at the biennial International Energy Conference, Tanaka said the problem is not underground, but above ground. He added that better infrastructure and more stable policies in producing countries are important to increase capacity and stressed the need for investment.[24] "The problem is not underground but aboveground. to have better infrastructure, more stable policies in producing countries is important to increase capacity," Tanaka said at a biennial energy conference in Rome. "There is no quick fix on the supply side and spare capacity is likely to remain tight," he said, underscoring the need for investment.[18]
Climate change is another key challenge, against the background that fossil fuels will still continue to dominate the global energy mix in the foreseeable future. Without new policies, CO2 emissions could jump 56% by 2030, leading to an eventual increase in average global temperature of up to 6 o C. With this in mind, the IEA is currently analysing what would be needed to meet the most ambitious Intergovernmental Panel on Climate Changeopnbrkt IPCC) scenario of cutting emissions by 50% by 2050. A report to be presented at the G8 Summit in Hokkaido will show that meeting such a target would entail a huge amount of investment and unprecedented technological breakthroughs such as in carbon capture and storage (CCS). Tanaka urged Ministers gathered in Rome to support making CCS eligible to receive revenues generated by the Clean Development Mechanism (CDM) as it could accelerate deployment of this crucial new technology.[15]
While nearly all of the 13 OPEC energy ministers will attend the IEF talks from Sunday to Tuesday, the group's president Chakib Khelil of Algeria is staying away, as is U.S. Energy Secretary Sam Bodman, according to aides.[20] Al-Badri added that OPEC's production levels are just one of many factors, while others included the political situation, market speculation, labor issues and natural catastrophes. Italy's former prime minister Romano Prodi also spoke of his concern. He says what is taking place is a conflict between food and fuel, with disastrous social consequences. He adds that governments cannot just watch this happen.[24] OPECs production levels were just one of many factors, he said. "But how much higher it will go, of course it depends on a number of things: the political situation, whether there is a natural catastrophe, whether there are speculations in the market, whether there are strikes in certain producing countries.[53]
Demand from industrialised countries overall was slowing. In 'other parts of the world, notably China, India, the Middle East, there is no evidence of such a slowdown,' Tanaka said. If oil-producing countries were to maintain their current level of production, inventories would be replenished 'and that will lead to better-balanced fundamentals, assuming there are no unforeseen geopolitical events, leakages, accidents, hazardous weather or port strikes,' Tanaka said.[31]
Just when oil is getting more expensive to produce, the oil industries in three key countries -- Mexico, Russia and Nigeria -- find themselves short of cash. Without that cash, oil production in these countries, and global oil production in general, is headed into a decline.[26]
Khelil said, however, that if production is increased now, prices will not be affected because there is balance between supply and demand currently. Output was raised in 2007 and prices remained unchanged, he said. The Algerian official said there are many projects and investment opportunities in his country and welcomed Kuwaiti investments in that area.[21] To stay even -- let alone to meet rising demand from the new automobile drivers of Moscow, Shanghai and Tehran -- the world has to increase annual production by 4.5 million barrels a day.[26] Kuwaiti state news agency KUNA reported Khelil saying Opec had the ability to raise output by 2 million barrels per day.[41] Officials at Shell, which is pumping 400,000 barrels a day below capacity in the Opec nation due to sabotage and security concerns, confirmed that a small amount of production had been delayed.[40]
Opec wanted an "appropriate" price, which would suit both consumers and producers, Khelil said, but did not reveal the price level. [41] ROME, April 21 (UPI) -- OPEC leaders meeting in Rome said prices will not fall anytime soon.[2] "Some here have said that if demand becomes stronger, OPEC could increase supply,'' Scaroni told reporters in Rome today. "I hope this happens.[8]
While the American demand for global petroleum supplies has remained relatively constant, and even declined in some sectors, the global demand for oil has increased. A great deal of this increase results from the recent industrialization, on a massive scale, of both China and India, though these are just two examples.[9] If you want to steal a Trillion Dollars, you would need to start a War, Fill the Strategic Petroleum Reserve, and require alot of oil for the War.[1] One-by-one oil producing countries around the world will cease exports of oil. Why? Because they need it for themselves.[25]
If Mexico (our third largest oil supplier), as predicted, suspends oil exports in 2010, $3.50 gas will seem like a ridiculous bargain.[25] Using oil for transportation is like heating your home with $100 bills.[25]
For foodstuffs, water, oil, oxygen and the like, the profit factor should not be allowed to go unchecked. When I hear the Neal Boortzs and Herman Cains of the world telling all of us to grow up and get over ourselves, because Shell Oil is delivering a profit to its shareholders, and the rest of us be damned if we can't afford the basic necessities of life because of it, Gandhi's admonition rings true.[25] I hear people all the time say we have oil here we have oil there and it is this much and that much.[25] The oil companies would take a major hit. Now the way I see it is those people getting this opportunity would have to stay at home those days.[25] Today is a stone. Dear jm @ 11:35, I substantially agree with your argument, at least to the extent that you are saying oil companies would have built refineries, notwithstanding the additional hassles and costs from environmentalism, if those refineries would have been profitable.[25] While oil companies are investing more, much of the rise is being eroded by climbing costs.[38]
You can not take money out of the economy unless someone or something is putting it into the economy - 165 billion stimulus Pachage, Oil companies are in the process of stealing it. Sign the check and mail it to them.[1] Now perhaps we see the gaping hole in the argument that says conservation pays off. Conservation pays off in greater inconvenience for those forced to use alternative trabnsportation. Too, the oil companies will not allow their profit margin to shrink. Those who continue buying their product will pay more to make up for those who don't.[25]
Just want to make people aware of danger. Figure oil industry as a whole should use some of their high profits to upgrade and fix gas stations.[25] I drive a 4 cylinder SUV and it gets 28 mpg in town. Think about all the minimun wage people out there who are now on the welfare system because they had to give up their jobs because of gas prices. They are out there. The truth of the matter is that this government is so stuck on themselves that they just plain out dont care. They have their retirement, healthcare, pensions, thanks to 1 day in office.[25] I have yet to find a job and have decided to sell real estate (yes I know but I am actually selling houses and it sure more than unemployment benefits) I have an 18 month old and high energy prices are killing us we went from have a savings and retirement to have barely enough to get by every month. It is not just gas in the car, gas for the furnace, it is groceries and everything else that is transported by truckers.[25]
I wish the gas prices would go ahead and rise to the level of Europe. They will eventually anyway. That way there there would be no more guessing what they will be next week. People could adjust their lives and get on with it.[25] Right on skeptic tank. The U.S. is just now catching up to the rest of the world-by experiencing such high gas prices. I Traveled through Europe in 2003 and everywhere we looked were these funny little smartcars, fiats, people on scooters, bicycles, and GASPpeople using public transportation.[25] You will get bit in other ways. The U.S. has the least taxes than any other country so, in the end these high gas prices are just a price we have to pay. If you are so unhappy then write your congressperson and go vote, instead of this griping on this blog site.[25]
In the U.S., Devon has working fields in the Rocky Mountains, the Mid-Continent, Permian Basin, Gulf Coast and Gulf of Mexico. A significant field for the company is the Barnett Shale, where net daily production of natural gas and natural gas liquids from Devon wells is expected to eclipse a billion cubic feet equivalent later this year.[43] THAT'S $160 PER MONTH TO GET BACK AND FORTH TO WORK. I still want a hot shower in the morning so I also must pay the outrageous natural gas bill too. That was $90 last month. I'd like to get rid of my truck except that it's paid for.[25]
Like about 5 minutes total time before I just closed the browser to clear the page. Watching George W. fly over his handle bars while riding his titanium bike is my nightly entertainmentThis uncordinated monkey can't even mount a Sedgway without falling offJeez, no need to spend money on gas, I get all the laughs I need from watching this moron speak, or attending to his athletic endeavors.[25]
Quite to the contrary. This is the free market working flawlessly. Unfortunately, when it comes to essential items, such as oil, food, water and the like, an unchecked free market will have catastrophic effects. When Americans can no longer afford to drive to work to make those little cogs turn, perhaps you'll clue in. The free market just doesn't get much freer than this. Capitalism at its finest.[25]
All the details are in our Power Plays Report. This entry was posted on Tuesday, April 22nd, 2008 at 1:46 am and is filed under Oil, Top News. You can follow any responses to this entry through the RSS 2.0 feed.[11] Demand for oil in the form of gasoline has decreased in the last several years, a result of the free market's impact on demand. Given that most Americans see automobiles working on a regular basis, it's easy to conclude that motorists are the problem.[9] The small revision to get Barclays to that point is testament to the fact the Barclays analysts have been far more bullish than the pack for some time. They have their own spin on the reason for higher oil in the face of U.S. economic slowdown, but let's consider some possible superficial explanations.[37] When the U.S. finds it necessary to take possession of the Saudi oil fields by force what will happen then? The worst thing to ever happen was to allow crude oil on the commodities market back in 1983.[25] I'm enjoying the challenge of the business." In a sustained bull-run, U.S. crude has risen from less than $20 a barrel at the start of 2002 to its record of $117.76 hit on Monday.[5] U.S. light crude settled up 79 cents at $117.48 a barrel, off the record high of $117.76 hit earlier.[42]
At 4.14 p.m., New York's West Texas Intermediate crude for May delivery was down 45 cents at $116.24 per barrel, having hit a record $117.60 earlier. Brent crude for June delivery was down 35 cents at $113.57 per barrel, having hit a record $114.86 earlier this morning. as/kf1 Copyright Thomson Financial News Limited 2008.[47] The front-month contract for light sweet crude hit a record of $117.40 a barrel Monday in electronic trading ahead of the opening on the New York Mercantile Exchange.[18]
After rising 6% last week, the price of West Texas Intermediate crude hit $117.40 on the New York Mercantile Exchange yesterday.[11]
"We see the price in this range of $90 (a barrel) and above," he said, refusing to specify an upper limit. [49] Curving those ministers in a chart and we should focus on a bottom near $85 and the top is unlimited since Iran is looking for much higher price ($500 is my target in less than 4 years).[34] "We think the price that we are seeing is a consequence of the devaluation of the dollar," Venezuelan Energy and Mines Minister Rafael Ramirez told Reuters.[13] "We will have common issues and common interests," said Tanaka of the IEF. "I want to see all ministers, for example, agree the current price is too high."[30] The nation could temporarily halt purchases for the strategic petroleum reserves, but that's not expected either. Is anybody planning any significant change in lifestyle because of high prices? My brother just parked his pick-up truck his vehicle of choice for all travel and purchased a small Toyota that, he proudly announced over the weekend, had delivered 41.7 miles per gallon on a 250-mile trip. As for me, other than organizing routine trips more carefully and consolidating those to run errands, I'm still buying and paying. Supporters of buses and rail think these high prices make their case.[25] As a 27-year veteran of the business, Mike McDonald has seen it all. McDonald, a co-owner of Triad Energy Inc. and a vice president of the Oklahoma Independent Petroleum Association, said he got into the business just before it turned sour in 1980. His company managed to survive only because it didn't owe much money when the economy collapsed. "It was tough, but we could survive it,''' he said.[43] Of course the President, CEO of the gas companies are sitting back grinning. Because their end of the year bonuses are going to be in the MILLIONS. I'm sure if gas was cheaper the economy would not be"sluggish"anymore.[25]
How is it that for more than seven years we've had an upstream oilman for President and a downstream one for VP and in all that time the federal government has not occupied the matter of establishing formulae for the mixture of gasoline? If a restaurant has to serve more than 50 recipes every day, each dish is going to be expensive. The feds could have and should have shoved the states and their subdivisions and interstate covenants out of the way and established the minimum necessary number of formulae.[25] Exxon and state-owned Petroleos de Venezuela SA, or PdVSA, have been in a dispute over the nationalization of oil fields by President Hugo Chavez's government.[49]
We need to keep working on alternative fuels and boosting our domestic supplies of oil and natural gas.''' [43] Pressure from consumers to raise output is "probably politically driven,'' oil newsletter Argus reported yesterday, citing al-Naimi.[8] Khelil also said a previous output increase had failed to push prices down last year.[40] In the first installment, I'll review some of the reasons for the quick price increase over the last several years. The second installment will deal with proposed solutions that won't solve the problem, and why.[9]
U.S. Sen. John McCain, who'll be the Republican standard-bearer, has suggested suspending the 18.5-cent per gallon federal tax, though price increases would have consumed that in the past two weeks.[25] While it isn't an emergency, gas price increases are influencing our thinking.[25] Only when Bush boy is out of office will we see a drop in gas prices. The increase of gas while he's been in office is proof of that.[25]
I guess we have listed all the sources and cures for high gas prices. They're STILL high.Uh oh.[25] Notes to all: I understand that there is a potential for relief from high gas prices.[25]
"But look at the impact (they have) had on food prices. It's madness," he said, adding: "All the countries of Latin America have been hit by the surge in food prices."[29] 'Of course, fundamentals are a key element. It's not only that. There are other elements, such as the weaker dollar, speculation, weather, etc. All these elements are behind the current price rise.[31] Sooner or later the speculators were going to get hold of it and drive up the price for no real reason. You may laugh at all this but you won't when it happens.[25] No need to thing the USA is "lucky" when the price of the gasoline net of taxes is basically the same.[25] At no time in 2008 to date has the price been under US$90. Let's face it - such a prediction makes perfect sense.[37] Do you really think that the president alone can choose the price of gas? I wish that people would take a little time to educate themselves.[25]
Barclays Capital said it expected non-OPEC supply to be "at best very weak in 2008" and that it expected supply to actually fall, despite daily record high prices.[17] Prices were supported by potential supply disruptions in Nigeria, the largest African producer, and a possible strike at a refinery in Scotland.[38]
"Fundamentals are tight right now. Our message is take a look at fundamentals," he said on the sidelines of the International Energy Forum in Rome, which brings together producers and consumers.[39] "We do not recognize them," al-Shahristani told reporters on the sidelines of the International Energy (otcbb: IENI.OB - news - people ) Forum bringing together oil-consuming and oil-producing nations.[36] Barclays notes the International Energy Agency was predicting back in August that first quarter global demand would rise by 1.57mb/d.[37]
Today, three energy industry companies ''' Devon Energy Corp., Chesapeake Energy Corp. and the Williams Cos. ''' are the state's largest publicly owned businesses. Devon, with a market cap of more than $46 billion in late March, started as a tiny operation in 1971, posted a couple of decades of steady growth as it pioneered some production techniques and then started buying various companies and their significant holdings during the 1990s. It got busy ramping up production from the holdings it accumulated. [43] There is plenty of lower cost legacy production still going on (look at Saudi Arabia for example). Barclays puts its whole bullish view down to the weakness of non-OPEC supply growth - not the higher cost.[37]
My life is seriously being affected by high energy costs. I don't believe any of the politicians running for president this election. They are all the same to me.[25] The East India Company was holding a seven-year surplus of tea from India and could be financially ruined if it was not sold. The total cost of the Tea they destroyed was around $1.87 Million dollars.[25]
In Ramrez's opinion the U.S. dollar devaluation "has made a terrible impact on the entire world economy and affects adversely food prices; it is madness for all Latin America."[45] Minister Ramrez does not associate the upward trend to short supply or geopolitical stress, but to a feeble U.S. dollar. "Rather than shortage, it is related to the financial problems in the United States," he said.[45]
Overall gas consumption for the U.S. is down if you read the energy reports.[25] There is also one of the primary laws of capitalism and commerce: Charge as much as you can for the product/service you provide. If we keep paying the increasing price of gas and other petroleum based products without significantly altering our purchasing behavior, those who provide such product/service are going to continue to do raise their prices.[25]
SOURCES
1. Oil prices to head even higher says Opec chief - Times Online
2. OPEC: Prices unlikely to fall soon - UPI.com
3. EuroNews EuroNews : New record prices for oil
4. The Pilot News - New record for oil price above $117
5. News | Africa - Reuters.com
6. OPEC Secretary General says oil price could rise | Business News | Reuters
7. Press TV - OPEC ministers against output rise
8. Bloomberg.com: Worldwide
9. Family Security Matters
10. AFP: Oil producers refuse to raise output
11. Oil Prices Hit Another Record High with Gasoline Close Behind
12. Oil over $117, Opec refuses to raise supply-Intl Business-Business-The Times of India
13. News | Africa - Reuters.com
14. AFP: Oil price unlikely to fall back below $90: Venezuela
15. International Energy Agency says world energy demand will more than double by 2030; Meeting IPCC emissions cut of 50% by 2050 would require huge amount of investment and unprecedented technological breakthroughs
16. No consensus oil price is too high: IEA | Reuters
17. Transport & Logistics News - Peak oil in Russia?
18. IEA head blames tight supplies, demand for record oil prices
19. Press TV - Iran: Pressure on OPEC political
20. News | Africa - Reuters.com
21. MENAFN - Middle East North Africa . Financial Network News: OPEC can boost output by 2m bpd -- Chairman
22. Oil price unlikely to fall below $90 a barrel - Venezuelan oil minister UPDATE
23. The Associated Press: OPEC chief: Oil prices would go higher regardless of supply
24. VOA News - Oil Prices Reach a Record High
25. Any relief to high gas prices? | Thinking Right | ajc.com
26. Why oil could hit $180 a barrel - MSN Money
27. High oil prices could trigger recession: IEA- International Business-News-The Economic Times
28. AFP: Oil producers, consumers lock horns over prices at forum
29. AFP: High oil prices here to stay, energy forum hears
30. Oil too dear, producers must maintain output: IEA | Reuters
31. Oil prices too high, production sufficient - IEA UPDATE - Forbes.com
32. Fast pace of oil price growth may lead to global recession - Regional Europe - HotNews.ro
33. IEA Tanaka says high oil prices could lead to global recession | Latest News | News | Hemscott
34. Crude Oil to $150 confirmed
35. OPEC rejects production increase, says oil market remains well-supplied - BloggingStocks
36. Iraqi says Kurdish contracts not valid - Forbes.com
37. FNArena
38. Oil rises above $117 for the first time - International Herald Tribune
39. U.S. says high oil prices risky to economy | Reuters
40. Oil hits new high but Opec sits tight - 22 Apr 2008 - Financial markets news and information - NZ Herald
41. Gulfnews: Opec president says no need to raise oil production
42. Oil hits record over $117 on supply worries | Reuters
43. State's oil companies are booming yet again | NewsOK.com
44. Canada, U.S., Mexico should form oil alliance
45. Daily News - eluniversal.com
46. Iran's will to develop oil industry unalterable - Oil min - Irna
47. Oil eases from record but supply woes, OPEC, dollar underpin
48. ISNA - 04-21-2008 - 87/2/2 - Service: / Economy / News ID: 1117032
49. 2nd UPDATE: OPEC Venezuela Visit In May To Discuss Oil Output
50. tehran times : Oil minister in Rome to attend IEBF, IEF meetings
51. The Oil Rush - Portfolio.com
52. OPEC to lift production capacity by 5 mln bpd by 2012 - El-Badri
53. OPEC chief al-Badri says oil prices could go higher - International Herald Tribune
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