Red oil barrels image via ezioman/flickr. Creative Commons 2.0 license.
Three things you shouldn’t miss this week
- Chart: Oil production break even prices:
- Article: Oil price plunge means survival of fittest – Crude at $70 puts at least 1.5m b/d of projects for 2016 at risk
- Article: Fracking could carry unforeseen risks as thalidomide and asbestos did, says report produced by Government Chief Scientist – Historic innovations that have been adopted too hastily with grave unforeseen impacts provide cautionary examples for potential side effects of fracking.
The price of oil crashed below $65/barrel this week, its lowest level since 2009. The speed of the fall, from $100/barrel as recently as September, has caused mayhem in the financial markets. The price drop may be seen by some as a Christmas present for motorists, but for oil companies already struggling with spiralling costs, and oil producing nations trying to balance state budgets, this is a crisis in the making.
Related Reports and Commentary
Could Falling Oil Prices Spark A Financial Crisis? – The oil and gas boom in the United States was made possible by the extensive credit afforded to drillers.
Energy Access: why coal is not the way out of energy poverty – Carbon Tracker