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Why oil prices have hit record highs Podcast
Guardian
Economics editor Larry Elliott explains why oil prices have hit record highs. (starts about 10 minutes into the segment).
(23 May 2008)
OPEC Sec-gen says not worried by aging oil fields
Reuters
OPEC Secretary-General Abdullah al-Badri said on Friday he was not worried about reports of faster-than-expected depletion in the world’s biggest oil fields.
… Badri repeated his position that runaway prices are caused by speculation in the market place and not by supply issues.
(23 May 2008)
Economic Toll Mounts From High Oil Prices
Graham Bowley and David Jolly, New York Times
Oil prices leaped above $135 a barrel in overnight trading on Thursday, a new record that underscored the growing pressures that runaway energy prices are placing on some of the biggest names in global industry.
… The Ford Motor Company, the American auto manufacturer, said on Thursday it would cut vehicle production for the rest of this year and fall short of reaching profitability in 2009, a long-held company goal. In a statement, a top Ford executive said rising gasoline prices “are having a tremendous impact on our sales, our manufacturing operations and our profitability.”
Meanwhile, Europe’s biggest airline, Air France-KLM, warned of a profound reshaping of the world airline industry caused by what it called the “explosion” in the price of oil. And American Airlines said on Wednesday that it would slash flights and begin charging passengers to check bags, part of a company effort to cut costs in the face of skyrocketing fuel prices.
… In recent years, a chorus of analysts and oil executives have raised concerns about possible shortfalls in supplies over the next years as new discoveries and production fail to keep up with rising demand. That, they warned, could lead to a supply crunch and spiking oil prices until demand eventually fell.
Part of the reason is that costs in the industry have more than doubled in the last five years, oil-rich countries are tightening access rules for foreign investors, and many developing countries are subsidizing their fuel costs, and thereby fueling energy consumption. Global demand is expected to grow by about 1 million barrels a day in the next decade.
(23 May 2008)
Where the oil money goes (video)
Jim Boulden, CNN via Yahoo!News
As the price of oil soars, CNN’s Jim Boulden explains where all that money really goes.
(23 May 2008)
Short (2:26 minute)
Oilwatch Monthly – May 2008 (HTML and PDF available)
Rembrandt, The Oil Drum: Europe
A summary and latest graphics below the fold.
Latest Developments:
1) Total liquids – In April world production of total liquids decreased by 400,000 barrels per day from March according to the latest figures of the International Energy Agency (IEA). Resulting in total world liquids production of 86.76 million b/d. Average global production in 2007 was 85.41 million b/d according to the IEA. In the first four months of 2008 an average of 87.12 million b/d was produced. The EIA in their International Petroleum Monthly puts the average global 2007 production at 84.60 million b/d and for the first two months of 2008 at 85.80 million b/d.
2) Conventional crude – Latest available figures from the Energy Information Administration (EIA) show that crude oil production including lease condensates increased by 226,000 b/d from January to February. Total production in February broke a new all time high production record at 74.66 million b/d from the previous month.
A selection of charts from this edition:
(21 May 2008)
