" />
Building a world of
resilient communities.

MAIN LIST

 

Peak oil notes - Feb 18

Prices and production
Oil prices have been volatile this week, opening at $75 on Monday, falling below $73 on Tuesday and closing at $77.33 on Wednesday. The prospects for a Greek bail-out, movement of the Euro, and hopes for a US economic recovery were major factors behind the activity. On Tuesday, oil prices gained nearly 4 percent on a falling dollar and a stock market rally. While the weekly stocks report has been delayed until Thursday because of the President’s day holiday, the API reported that US crude inventories fell by 63,000 barrels; gasoline and distillate inventories increased by nearly 3 million barrels, suggesting that demand remains weak.

MasterCard reported that US gasoline demand fell to the lowest level in since the 2008 Gulf hurricanes last week; however, record snowstorms across the much of the US kept drivers off the roads.

Iran
The US stepped up the pressure on Iran this week with Secretary of State Clinton, National Security Advisor Jones and JCS Chairman Admiral Mullins all making public statements concerning the situation. Clinton said evidence is accumulating that Iran intends to produce nuclear weapons and is headed towards a Revolutionary Guard military dictatorship, while Jones and Mullins talked of imposing tough sanctions on Iran. According to the Israeli press, Mullins told reporters in Israel that a military strike option is still on the table. The New York Times ran a story saying that after a year of diplomatic efforts, the Obama administration was nearing the end of its patience with Tehran.

Even the Saudis chimed in on the debate by noting publically that the threat posed by Tehran demanded “a more immediate solution” than sanctions – presumably meaning some sort of blockade or military action. The US is said to be seeking Saudi help in getting Beijing to agree to sanctions, presumably by guaranteeing that the Saudis would make up for any loss of Iranian oil shipments that might result from the sanctions.

On Tuesday, the government-controlled Chinese press ran a story noting that Moscow is saying that Tehran should start improving its cooperation with the IAEA; if they don’t, sanctions against Iran cannot be ruled out. Some would see this as yet another warning that Beijing may be reevaluating its policy and may be coming to the view that its acquiescence to harsher sanctions may be better than letting Tehran continue on its present course of increasing confrontation.

In the meantime, President Ahmadinejad continues to say that he still is ready to swap his low-grade uranium for 20 percent enriched fuel even from the US, but threatened that any country attempting to impose harsher sanctions on Tehran would regret its actions. In the past Tehran has said it will reduce oil exports, thereby driving up oil prices if sanctions are imposed.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Start your own projects. See our RESOURCES page.
Make connections via our GROUPS page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


Stranded Assets in Oil and Gas a Reality

Though climate change will no doubt prove to be one aspect of stranded …

IEA report: US shale oil growth practically zero in 2017

US growth is seen to decline to a meagre 160 kb/d by 2017. That is plausible …

Richard Heinberg on Our Renewable Future

Richard Heinberg discusses our renewable future and how to get there.

Peak Oil Review - Mar 2

A weekly roundup of peak oil news, including: -Oil and the global economy …

Oil Prices Don’t Change Because of Rig Count

Oil prices don’t change based on weekly rig count reports. Yet every …

Energy policy - Mar 1

Syriza: another energy is possible / Renewable energy grab in the Sahara? / …

The Great Game in the Holy Land

Guess what? Almost all the current wars, uprisings, and other conflicts in …