Britain faces a nasty shock when the global energy cycle turns
Ambrose Evans-Prichard notes, "Britain's energy industry is dying. While the US is striving for self-sufficiency in fuel and power as a primary goal of strategic security in a dangerous world, this country has acted with strange insouciance.
More after the break.
China Desperate to Catch Up to US Shale
Either they will unlock these reserves, or our companies will unlock the reserves for them, regardless this will destroy not only the price of natural gas, but of oil as well. This would send a tectonic shock through the energy world.
Shale Ready to Tango with the Saudis
"Back when prices first started to tumble, analysts believed the breakeven price for most shale projects—that is, the oil price companies would need to still turn a profit with their operations—was somewhere near $75 per barrel. Pioneer is now claiming it is operating wells that could still turn a profit with prices under $3 per barrel, putting those projects on par with the bigger conventional fields of Saudi Arabia."
This took two years. What will this look like in five? And how soon before American producers are expanding the Shale Oil Revolution to the wide world?
Tick tock House of Saud, tick tock.
Oil recovery faces new downstream threat - FT.com
I have been forecasting lower oil prices, and I continue to do so. With the strengthening of the dollar, the price should be somewhere between $30 and $35 bbl. We have a glut in oil, and in gasoline. Worse yet for the oil bulls, we are in mid summer, and gas/oil prices should be strengthening. They are not. Expect the price to suffer once the driving season ends. The world economy is not going to move powerfully towards using more oil. China has been buying up lots of oil, but it is using far less, and that can only mean storage issues.
The long term price of oil should be lower. And with US tight oil becoming ever less costly to produce, it will be difficult to force the price upwards.
Shale Keeps Getting Leaner and Meaner
This is America's best foreign policy strategy, bankrupt the autocratic oil producers. Best not to bet against the Americans.
U.S. Officials Fear Saudi Collapse If New Prince Fails
The House of Saud reigns based on an agreement between the Saud, and the Wahhabi clerics. The Wahhabi beliefs are the genesis for ISIS.
More below the fold.
The US currently is beating its Kyoto Protocol CO2 goals, without the need to buy a box of green weenie credits