Welcome to the ODAC Newsletter, a weekly roundup from the Oil Depletion Analysis Centre, the UK registered charity dedicated to raising awareness of peak oil.
There was an initial recovery in world markets at the beginning of the week following news of major cash injections into banks across Europe and the US. This was quickly overtaken by pessimism though as traders anticipate global recession. Concerns of weaker Chinese demand are adding to the downward pressure on oil and commodities prices. What effect OPEC can exert on the trend remains to be seen, but the level of anxiety about the impact of the decrease is evident in the fact that the organization has brought forward its emergency meeting on the topic from November 18th to October 24th.
As Iraq held the biggest sale of oil assets ever seen this week in London, the US government reported that crucial Iraqi export pipelines are in such bad repair that they could fail at any time. Companies bidding to invest in Iraq are taking enormous risks with regard to the physical and political security of their investment. However given the narrowing opportunities for the independent oil companies and the scale of Iraq’s resources, it is a risk they will take.
It was a good week in the political life of Gordon Brown as leaders around the world followed the UK example to rescue their financial institutions. Clearly the job of “saving the world” must have been clouding his mind when he stated that “we have had some success in bringing down oil prices”. While worldwide recession and skirting the financial abyss may bring the new political thinking required to steer the world towards a more sustainable economic model, it is difficult to believe that it was part of Mr Brown’s plan to rein in the price of oil.
Oil
Oil slide triggers Opec action
OPEC to weigh recession risk as well as price
Crude Oil Falls a Third Day on Recession Concern, Equities Drop
China Increases September Oil Imports 10% on Demand
Venezuela’s oil output slumps under Hugo Chavez
BG Group’s big holding in Kazakhstan under review
Consolidation likely as small oil explorers seek cash
Is Cheaper Oil A Good Thing?
Iraq
Iraqi government fuels ‘war for oil’ theories by putting reserves up for biggest ever sale
US warns on ageing Iraqi oil pipelines
Gas
Limited storage forces importers to give away gas
Woodside, Chevron May Delay LNG Projects on Turmoil
Chevron Will Spend $6 Billion in Asia, Unfazed by Bank Crisis
Climate
Government pledges to cut carbon emissions by 80% by 2050
A ‘Green New Deal’ can save the world’s economy, says UN
Obama to Declare Carbon Dioxide Dangerous Pollutant If Elected
Economy
Global markets slide on recession fears
Miners suffer after Rio’s China warning
UK
U.K.’s Rising Food Prices Hamper Economic Policy
Travellers squeezed by fares, warns watchdog
Wind farms must be nearer coast to meet targets, says report
