" />
Building a world of
resilient communities.

MAIN LIST

 

Peak oil notes - July 22

Prices and production
So far it has been a quiet week, with oil hovering around $77-78 a barrel and generally moving with changes in the equity markets. The weekly stocks report showed a small, but unexpected increase in US crude stocks based on larger-than-usual imports. Prices fell on Wednesday to close at $76.56 a barrel after Fed Chairman Bernanke told a Senate committee that no new moves to bolster the economy were imminent.

Oil prices have been stuck between $70 and $80 a barrel as high inventories and conflicting economic information have left traders without any clear signals as to where prices will move.

At a meeting on increasing Iraqi oil production – optimistically to 12.5 million b/d – BP and Shell presented papers on behalf of the 11 oil companies that have contracts to develop Iraqi oil. The papers discuss the roadblocks the Iraqi government itself causes to increased production. BP announced that it plans to drill 80-100 new wells in Iraq during the next 18 months.

Although Mexico continued to keep its total oil production level in the first half of July, output from the Cantarell field, which six years ago produced 2.1 million b/d now has fallen below 500,000 b/d.

Deepwater Horizon
With the oil leak largely under control and with hopes high that the well will be sealed with the next few weeks, attention is turning to other aspects of the disaster. Currently the government appears to be permitting BP to keep the well valves closed with extensions being granted 24 hours at a time. Although a new tropical storm is brewing SE of Florida, it is not as yet forecast to become a major problem for operations at the Deepwater well site.

Pressures on Washington to lift the drilling moratorium continue with a law suit being filed against the second round of the government moratorium. So far there does not seem to be a mass exodus of drilling rigs from the Gulf as most drillers are biding their time and waiting to see what happens.

Recriminations are increasing as more people with direct knowledge of the Deepwater explosion are called to testify. At least five Transocean employees have been designated “parties of interest” in the criminal investigations that are underway. At $4,300 a barrel, BP could face an $18 billion fine for the incident, but no one expects the courts to be that harsh.

BP has sold $7 billion worth of assets in the US, Canada, and Egypt to help pay for oil spill liabilities.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES 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.


Fracking and Health: What we Know from Pennsylvania's Gas Boom

Tensions between economic development, energy policy and environmental and …

Peak Oil Review: A Midweek Update - 24th Aug 2016

 A midweek update. It has been a volatile three days for oil with …

How We Went on an Energy Diet, and What We Lost (and Gained!)

In which I reveal the changes in our household energy usage from 2003 …

Five Billion Years of Energy Supply: the "Stereosphere" and the Upcoming Photovoltaic Revolution

Both the biosphere and the stereosphere use solar light as the energy …

Peak Oil Review - Aug 22 2016

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

Limitless imagination and physical limits

How do we distinguish those ideas that are forever going to remain in the …

Some Reflections on the Twilight of the Oil Age (part III)

The impact of the Tooth Fairy Syndrome is all the more felt in the main …