Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
October 22, 2014

Posts in "Oil"

October 21, 2014

Would American Crude Oil Exports Hurt Putin?

Over the last month or so the chorus supporting the lifting of the decades-old American crude oil export ban has grown increasingly louder.

For years, exporters have argued for lifting the ban, motivated by the promise of more profits. But lately their argument has gained a bit more traction due to increased tension with Russian President Vladimir Putin. According to exporters, not only would lifting the ban be good for business, but it could provide the United States with a geopolitical “win” as well. Russia, whose economy relies heavily on oil and gas exports, could take a significant hit due to falling international prices.

There is already evidence that increased U.S. oil production and economic sanctions are having a negative impact on Russia, shaving a predicted 1-1.5 percent off the country’s GDP. And just yesterday CQ reported (subscription required) on a GAO study that claims lifting the ban would cause domestic fuel prices to drop, encouraging further domestic oil production.

But some argue that due to the elastic nature of oil supply, in the long term, American oil exports won’t have much of an impact on Russia exports. However, it’s the potential of expansion of the current U.S. oil production boom that should have Putin worried.

By Clyde McGrady Posted at 5:08 p.m.
Oil

Are High Gas Prices Already A Thing Of The Past?

dw09070800141 240x165 Are High Gas Prices Already A Thing Of The Past?

Energy investor T. Boone Pickens speaks at a press conference promoting natural gas as an energy source. (Photo by Ryan Kelly/Congressional Quarterly)

In large parts of the country gas prices are just below $3 per gallon. And in an interview conducted on Monday at the Concordia Summit in New York City, T. Boone Pickens, the billionaire oil tycoon, was asked whether he thinks these prices are here to stay.

Pickens first noted the counter intuitive nature of the oil price drop given the recent unrest in the Middle East and the fact that just six years ago consumers were paying around $4 and $5 per gallon at the pump. When asked for the explanation, he pointed to the uptick in U.S. oil production.

“The United States has changed the whole landscape for oil, I’m talking about globally. We’re using more oil, we’re using 92 million barrels in the world every day, and that’s the most oil that we’ve ever used in the world,” he said. “So, oil demand is going up, and, by golly, oil supply  — the additions that have been added to it — come from the United States.”

But according to Pickens, the future of long-term oil prices is directly tied to natural gas and its use in American automobiles.

“Today, if you went out and shopped for a natural gas passenger car, you know what you see? One Honda GX Civic and you can get the Ford F-150 pickup,” he said, adding: “If we were in Paris, France, tonight, and we were going down to shop for a passenger car, you’d see 40 that you could buy.”

But although he thinks the United States will eventually head toward natural gas cars, he refused to predict when, noting that his past market predictions feature “good direction [but] questionable timing.”

October 17, 2014

ICYMI: Oil Slides, CO2 Talk & Yucca Echoes

Down, down, down was the way oil looked this week, with the global benchmark Brent crude dropping 27 percent from July before rebounding slightly Thursday. Full story

October 16, 2014

Asian Refinery Upgrades Contribute to Light Oil Glut

Recent refinery upgrades in China and India have given those countries more flexibility in choosing imports and diminished demand for light crude on the global market, which has dropped a quarter of its value in the past three months. Full story

October 15, 2014

Cheap Oil, Sanctions Impact Russia

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(SERGEI CHIRIKOV/AFP/Getty Images)

Russian President Vladimir Putin said his country may cut budget spending because of falling crude prices, the government news agency TASS reported Tuesday. Full story

October 14, 2014

Global Oil Supply Showdown

174775753 445x296 Global Oil Supply Showdown

(Andrew Burton/Getty Images)

Well, we’ve validated a basic theory of economics once again. Rising supplies led by U.S. shale production and resurgence in Libyan oil output coupled with less than expected demand have sent oil prices tumbling – setting up a faceoff within OPEC and between the group and U.S. shale investors. Full story

The Week Ahead: Russia, Solar, Gas, Carbon and Coal

A little bit of everything is happening this week, and much of it takes place Tuesday. Full story

October 10, 2014

Methane Hotspot Associated with Hydrofracked Coalbeds

satellite methane signal averages 445x234 Methane Hotspot Associated with Hydrofracked Coalbeds

(NASA/JPL-Caltech/University of Michigan)

An area in the Southwest accounted for the nation’s largest concentration of methane emissions during a period before 2010, researchers at NASA and the University of Michigan announced Thursday. Full story

ICYMI: Oil Slides, Export Reviews & Winter Outlook

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Traders on the floor of the New York Stock Exchange Thursday, when the Dow Jones Industrial Average plunged more than 330 points on energy sales.
(Andrew Burton/Getty Images)

Oil prices dropped this week, leading to an energy sell off Thursday and the year’s biggest drop in the Dow Jones Industrial Average. Lower oil prices could lead companies to curtail shale development. Full story

October 9, 2014

Falling Oil Prices Could Cut Shale Production

174775721 445x296 Falling Oil Prices Could Cut Shale Production

Andrew Burton/Getty Images

For years the price of oil has been controlled by OPEC, which would simply throttle down the flow to decrease supply and maintain prices. The free market analogous process in U.S. shale oil production would likely kick in if oil prices continue their decline and fall another 20 percent or so, Fitch Ratings said Wednesday. Full story

October 8, 2014

Oil Flows Amid Mideast Unrest

452844800 445x296 Oil Flows Amid Mideast Unrest

Flames and smoke billow from an oil depot following clashes around Tripoli airport in July. (MAHMUD TURKIA/AFP/Getty Images)

Despite the attention on conflicts in Iraq and Libya this summer, oil production is humming right along. Full story

EIA: Less Heating in Warmer Winter

Costs1 445x392 EIA: Less Heating in Warmer Winter

In developing models for estimating how much consumers are going to spend heating their homes this winter, the Energy Information Administration relied on a forecast that calls for a warmer than average winter. Full story

October 7, 2014

EIA Still Evaluating Crude Exports

108876647 445x262 EIA Still Evaluating Crude Exports

MARK RALSTON/AFP/Getty Images

The Energy Information Administration is running several studies on crude oil exports and expects results this month with a comprehensive report near year’s end, according to Administrator Adam Sieminski. Full story

October 6, 2014

Commerce Wants to Understand Condensates

phototry 445x332 Commerce Wants to Understand Condensates

A condensate stabilizer (Tryer Process Equipment).

Amid the industry tumult and political hullaballoo following two rulings earlier this year, the Commerce Department section in charge of regulating exports of crude oil has taken its sweet time figuring out what process companies deploy in the production of ultalight crude oil known as lease condensate. Full story

The Week Ahead: International Energy & Winter Heating

Monday

Energy Central will hold a webinar on U.S. energy policy with Mike Morris, former head of American Electric Power. Full story

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