The oil price drop may be seen by some as a Christmas present for motorists, but is it a crisis in the making.
Articles: oil price (56)
Erin sits down with Richard Heinberg – senior fellow at the Post Carbon Institute – to discuss oil.
Eventually, production must go down: there will still be oil that could be, theoretically, extracted, but that we won't be able to afford to extract. This is the essence of the concept of depletion.
A mid-week update. The great oil crash of 2014 continued this week with New York futures trading below $76 a barrel for a time on Tuesday before rebounding to close Wednesday at $78.67.
In this post I present a retrospective look at my prediction from 2012 published on The Oil Drum (The “Red Queen” series) where I predicted that Light Tight Oil (LTO) extraction from Bakken in North Dakota would not move much above 0.7 Mb/d.
It's likely that the Saudis are encouraging a fall in oil prices. In the face of what looks like declining demand, rather than cut production to maintain prices as they have done in the past, they've decided to maintain their market share worldwide by cutting prices.
Oil prices plunged to a four year low of just $85 per barrel this week – down from around $115 as recently as mid-June.
The price plunge which began in mid-June when New York oil futures trading around $105 a barrel continued this week with oil touching $80 on Wednesday before recovering to close at $81.78.
Faced with the prospect of losing market share to tight oil producers in the US, OPEC has simply taken the most prudent business decision. Keep the taps open.
Mid-Week Update. Energy prices continued to fall this week with New York futures trading below $87 a barrel on Wednesday and London oil falling to a close of $91.37.