Tag: Oil Prices
‘Lower forever’ oil prices mean Alberta needs to quickly rein in budget deficits – Part 1
MacKinnon/Mintz prescription for balanced budget: constrain public sector wages, reduce healthcare costs, lower business taxes Sooner or later, an Alberta government will have to grapple with the effect of “lower forever” oil prices – to quote Shell CEO Ben van Beurden – on the province’s treasury. A new report from the School of Public Policy […]
Column: Macroeconomic risks for the oil industry
Oil industry in early stages of cyclical expansion By John Kemp LONDON – The global oil industry now appears to be in the early stages of a cyclical expansion which is likely to see prices rise over the next few years, slowly at first but then accelerating later. Deep and long cycles in oil prices […]
Weak oil prices undermine any chance of recovery for Alberta finances before 2019 election
“There’s no self-correcting way out of this situation… if [oil] prices don’t rise, there’s no easy way.” – Tombe The Alberta government is betting on rising oil prices and growing royalties over the next year to pare its budget deficits, but how likely is that scenario? Not very, according to economist Trevor Tombe, as global […]
Opinion: US shale producers are drilling themselves into a hole
Even US shale producers in Permian Basin struggling to make money By John Kemp LONDON, June 30 (Reuters) – US shale firms are drilling themselves into a deep hole despite warnings from industry leaders about the risk of flooding the market with too much crude. Drilling and production are rising. Prices are declining. Companies are […]
Oil prices tick up as Saudis cut exports to Asia, US
Oil prices up slightly in Tuesday trading Oil prices rose slightly on Tuesday after OPEC detailed global supply cuts, but increases were limited as the cartel reported an overall increase in production in May and admitted that the rebalancing of the market was moving at a slower pace than earlier anticipated. Brent crude was up 43 cents to $48.72/barrel […]
OPEC’s dilemma: when to lift production restraint?
$55/b Brent price for 2017 still forecast by Wood Mackenzie In Nov. 2016, OPEC reversed course on its strategy to seek market share and agreed, with the support of additional non-OPEC countries, to cut production and support higher oil prices, according to Wood Mackenzie. After six months and a dramatic recovery in the US, OPEC […]
Opinion: OPEC meets again but has it had an impact on oil prices?
Structural factors in oil market more important than OPEC cuts By John Kemp LONDON, May 24 Ministers from OPEC and non-OPEC oil exporters are meeting in Vienna today and tomorrow to decide whether to extend production cuts that have been in effect since the start of the year. The formal conference comes after extensive […]
Alberta cheering on Saudis in oil price battle with American shale
Alberta oil sands in good shape to ride out price volatility, but high paying oil and gas jobs won’t be back until 2018 Alberta is watching the Saudi vs. US shale cage match over marketshare with some trepidation, hoping this isn’t late 2014 all over again, when OPEC opened the taps to drive US shale drillers out […]
US shale oil rebound shakes OPEC
How low can the costs of US shale oil production go? By Ross McCracken, Platt’s Managing editor, Energy Economist Even with oil prices hovering around the $50/b mark, the US rig count has increased rapidly while E&P companies continue to record substantial reductions in well drilling costs. The increase in new well oil production per rig […]
BP lifts outlook for core oil business after cost cuts
BP core oil and gas divisions will be able to break even at $35-$40/barrel By Karolin Schaps and Ron Bousso LONDON, Feb 28 (Reuters) – British oil major BP lifted the outlook for its core oil and gas divisions on Tuesday, saying it would be able to balance its books with crude prices as low as […]
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