Views:2720
peak-oil

  The two crude oil pricing benchmarks around the world are the Brent price and the West Texas Intermediate or WTI price. The two benchmark oil trade in the futures market and attract tremendous hedging, investment, and speculative interest. Brent crude oil is the preferred pricing mechanism for around two-thirds of the world’s crude oil while WTI is the benchmark for the other third. WTI is sweeter crude, meaning it has a lower sulfur level and is more appropriate for gasoline production in the refining process. Brent’s characteristics made it easier and cheaper as an input for the refining of diesel fuels and other distillates. Meanwhile, Brent and WTI are benchmarks, and while oil production all over the world may use them for pricing purposes, there are many discounts and

Views:2680
OPEC _

Oil prices got a modest lift last week on word OPEC may be upping the production cut ante, but gains were balanced by signs of Russian production growth.   A research from PVM (International oil brokers & consultants) suggests delegates at a May meeting of members of the Organization of Petroleum Exporting Countries may consider deeper cuts than already implemented under a six-month deal that began in January.   Libya and Nigeria are exempt from the deal and Iran has room for production growth as it seeks to regain a market share lost to sanctions. Saudi Arabia, the largest producer and de facto head of OPEC, has cut its output more than any other and total group production is already below the 32.5 million barrels per day target.   PVM

Views:62191
lukoil

  In this article, we look at the implications for Bulgaria from Lukoil’s exit from the country’s and possibly EU’s market. While Bulgaria is definitely not Lukoil’s most important market in Europe, it bears significance, due to Lukoil’s almost complete monopoly in the oil fuels sector there, further exacerbated by this country’s full reliance on Russian energy. While Lukoil’s expected exit may represent an opportunity for Bulgaria to foster competition on its energy market, this analysis suggests that for a number of internal and external reasons, it may fail to make use of it.   By some accounts, Lukoil is considering disposal of its remaining downstream assets in Europe, including its refinery and possibly retail business in Bulgaria. The refineries in Italy, the Netherlands and Romania are also up for

This entry was posted in Bulgaria and tagged , , , , , , by A. Sorensen Henrik.

About A. Sorensen Henrik

Henrik A. Sorensen is a natural resources economist with more than four decades of professional experience. Mr. Sorensen has a BSc in Mechanical Engineering from the University of Gothenburg and MBA from McCombs School. In the first part of his career he has specialized in project finance of oil production, infrastructure, and downstream operations in the US, South-east Asia, Latin America, and later, the former Soviet Union. Since 2007 Mr. Sorensen specializes predominantly in research related to economics of natural resources.
Views:2119
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Two months after setting the ball rolling in Algiers and eight years after it last cut output, OPEC agreed this time in Vienna to resume its efforts to prop up oil prices. The group announced cuts of 1.166m barrels a day, effective from the beginning of January, for six months. The deal may be renewed at the end of May.   The vast majority of market participants doubted the ability of the international oil cartel to agree on anything, much less and agreement to cut production. In the days leading up to the November 30 biannual meeting, it began to appear that the framework for a deal discussed in Algeria back in September was falling apart. The Saudis stated that they would not agree to any deal where all members

Views:2697
opek

  As many commentators note, a 1,2 mbpd oil output cut as agreed by OPEC may not be enough to wipe off the surplus of oil at the global markets, let alone the concerns about the discipline of the cartel members in abiding to agreed cuts (http://www.reuters.com/article/us-opec-oil-asia-idUSKBN13Q40K). In this regard, announced participation in the cuts by non-OPEC suppliers by 600 kbpd becomes crucial, and all eyes are on Russia in the first place, which is supposed to take the biggest share of the non-OPEC cut (300 kpbd).   Leaving aside the issue of who these “other producing countries” besides Russia will be, and the question of whether they will be willing/capable of cutting output (Kazakhstan had just introduced the giant Kashagan field onstream, Mexico is struggling with oil output decline

This entry was posted in The Region and tagged , , , by Vladimir Milov.

About Vladimir Milov

Vladimir Milov is a Russian opposition politician, publicist, economist & energy expert. Former Deputy Minister of Energy of Russia (2002), adviser to the Minister of Energy (2001-2002), and head of strategy department at the Federal Energy Commission, the natural monopoly regulator (1999-2001). Author of major energy reform concepts, including the concept of market restructuring and unbundling of Gazprom, which was banned from implementation by President Vladimir Putin. Founder and president of the Institute of Energy Policy, a leading independent Russian energy policy think tank (since 2003). Columnist of major Russian political and business editions, including Forbes Russia, frequent commentator on Russian political and economic affairs in major Western media outlets (The New York Times, The Financial Times, The Washington Post, The Economist, etc.). Since leaving Russian Government in 2002, Mr. Milov had became a vocal public critic of Vladimir Putin’s dirigiste and authoritarian course. Mr. Milov is also active in the Russian opposition politics, serving as Chairman of the Democratic Choice opposition party, and is also known as co-author of the critical public report on Vladimir Putin’s Presidential legacy called Putin. The Results, written together with Boris Nemtsov (several editions published since 2008).
Views:4902
russia-in-decline-alex-alexiev

The article first published in americanthinker.com on 02/11/2016. On October 20, The Jamestown Foundation held a workshop in Washington D.C. titled “Russia in Decline,” with the participation of a veritable Who’s Who of senior American experts on Russia. It was the concluding exercise of an extensive research project on Russia designed to provide policy guidance to the next president of the United States. Prior to the workshop, the leader of the project, S. Enders Wimbush, had solicited written contributions by a dozen of the best-known Russian political commentators and economists.   The bottom line of both the workshop and Russian contributions was a remarkable consensus: Russia has entered a period of prolonged decline that will take many years to reverse even if it could be stopped soon, which is unlikely. The

Views:3332
oil_pump_bashneft_large

I have always thought that awareness is the foundation of good management practice. However, information in the form of news and analysis is not automatically converted into good findings and hence into good practical and optimal solutions. Unfortunately, in our country, what prevails is the inertia of “stability” understood as status quo reproducing itself, with the lack of analysis of costs and benefits and proactive management on a public and corporate level, rather than the employment of catching-up and breakthrough policies.   Let’s try and read through the news from last week that we cover in our newsletter.   The first item is that margins in processing costs between refineries in America and Europe and the rest of the world have decreased. Markets globalize and integrate.   The second is

Views:1637
shale

  “Peak Oil.” For years, people ascribed to the theory that the United States and the world was quickly running out of oil. In the U.S., this idea was widely accepted becausfor decades, U.S. oil production had been declining, while natural gas production had essentially flat lined. As the following charts indicate:     But something changed and over the past decade or so, the U.S. has seen a massive increase in both oil and natural gas production. This drastic shift in production is known as the “shale revolution” as the influx in production has largely come from the development of shale resources. As the U.S. Energy Information Administration notes, “the combination of horizontal drilling and hydraulic fracturing has provided access to large volumes of oil and natural gas that

Views:3755
saudi

  On August 8th, OPEC published a press release stating that H.E. Dr. Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and current OPEC president, had scheduled an informal meeting of OPEC member countries to take place on the sidelines of the 15th International Energy Forum which will take place in Algeria from 26 to 28 September 2016. This renewed rumors of another production “freeze.” But then prices began to fade until last Thursday, when the Saudi Press Agency reportedly emailed a statement to journalists quoting Saudi Energy Minister Khalid al-Falih as follows: “…We are going to have a ministerial meeting of IEF in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any