Skip to main content

Home/ Economic Challenges Research/ Group items tagged oil

Rss Feed Group items tagged

Molly Fraser

Wikileaks: Saudis Warned About Oil Speculators in 2007 and 2008 - 2 views

  •  
    Kevin Hall of McClatchy wrote about Wikileaks releases showing that the Saudis were concerned about oil market speculation leading to unduly high prices in 2007 and 2008. In 2008, we wrote that the Saudis said they did not see tightness in the market, and they also warned that prices were excessive.
  • ...1 more comment...
  •  
    It was quite frustrating in 2008 to see economics commentators reject statements by numerous oil market participants that supplies were more than adequate, that the price rise was driven by speculators.
  •  
    The wikileaks releases confirm the fact that the Saudis were not attempting to shift the blame to speculators while privately enjoying profit, but were genuinely concerned over the effect that speculators had on spiking market prices. 2007/2008 saw a jump in oil prices that was unprecedented at the time; in 2007 alone, the price of oil was $58.74/Bbl in February, reaching $65.08/Bbl by June of the same year.
  •  
    Ultimately this merely reaffirms anxieties that oil prices are likely at the whim of speculators rather than actual market availability. Unfortunately, markets are partially based on faith in one's investments; It would be wise in the future to trust the Saudi reports and take into consideration that everyone in the worldwide oil market- including western businesses- are in it for the money.
Alexei Goudzenko

China, not U.S., key to global oil demand - The Globe and Mail - 0 views

  • But as the U.S. continues to pare back its oil consumption, other economies will seek a bigger share of the pie from a near static world oil supply. With power shortages spreading in China and Japan, as well as India and Pakistan, demand for diesel fuel is soaring in power-starved Asia.
  • With little, if any usable excess capacity in OPEC, world crude demand is already on the verge of outpacing world supply. In the resulting zero sum world, conflicting trends in oil consumption between the world’s two largest oil consumers, the U.S. and China, will not be the exception but the norm.
  • If the Chinese economy is going to continue to increase its oil consumption by 10 per cent a year, another economy will have to cut back its oil consumption by a comparable amount to make room for the increase in Chinese demand. More and more, that place looks like America.
Molly Fraser

Pricey oil fuelling dirtier projects - 3 views

  •  
    It has often been said that even without a price on carbon there will be a meaningful shift to renewable energy sources once global oil supply peaks.
  • ...1 more comment...
  •  
    So, has there been a mad rush to invest in cleaner, relatively more affordable alternatives to oil? Not really - it's been more like a casual stroll, even though such alternatives are highly competitive with oil above $100 (U.S.) a barrel.
  •  
    Roberts is vice-chairman of renewable energy investments within CIBC's wholesale banking group. He says the big petroleum companies are making some investments in green energy, such a solar, wind and biofuels, but it's a "drop in the bucket" compared to the money being spent on the exploration, drilling and extraction of unconventional - i.e. heavy - oil.
  •  
    Until there is a meaningful price on carbon in North America and China, oil companies will continue along this path. They'll go further, deeper and thicker. They'll take on more financial risk and take more chances with the environment. They'll scrape the bottom of the barrel, and they'll make generous profits doing it.
Alexei Goudzenko

Higher oil price prompts increased drilling - Saskatchewan - CBC News - 0 views

  • Higher-than-expected oil and gas drilling activity in Western Canada led the Canadian Association of Oilwell Drilling Contractors Wednesday to increase its forecast for the total number of wells to be drilled in 2011.
  • The forecast confirmed that more companies are drilling for oil, which has soared in price, and away from natural gas, where low price has stayed flat. Approximately 60 per cent of the wells being completed are directed at oil.
  • In the first three months of the year, exploration companies employed 68 per cent of the fleet of available rigs in western Canada, or 534 out of 788. That was 11 per cent higher than the Calgary-based CAODC's projection of 480 made last fall.
  • ...1 more annotation...
  • CAODC said it expects activity over the last three quarters of 2011 to increase by 24 per cent over its October estimate, with 200 rigs to be drilling in the second quarter, up from the 160 previously anticipated.
Peter Shishkov

Food, oil prices hit US economy - 0 views

  •  
    Economists have cut forecasts for economic growth in the second quarter following the dismal 1.8 percent pace in the first, with indicators of industrial production, consumer spending and unemployment all appearing soft. Economists said they still foresee a stronger second half, as consumers and businesses adjust to the higher oil price Ian Shepherdson, U.S. economist for High Frequency Economics, said the sharp rise in the price of oil has helped stifle job creation. "The trend in claims has nudged up a bit as companies have responded to the rise in oil prices," he said.
Peter Shishkov

Clement wants oil industry to explain gas prices - 0 views

  •  
    Federal Industry Minister Tony Clement said Thursday he wants the petroleum industry to explain how it sets gasoline prices. "No one can understand why last year, when oil per barrel was around $140 or $150, we were paying $1.37 per litre, when this year oil is south of $98 a barrel and yet we're paying more," Clement said.
Dmitri Tkachenko

Surprise: Low interest rates seen sticking around - The Globe and Mail - 0 views

  •  
    "Interest rates have recently being going somewhere unexpected: down. With the United States government bumping up against its debt ceiling, inflation ticking upward, and a growing debt crisis in Europe, most expected interest rates to be increasing.If so, it will mean pain for savers, but good news for borrowers .A drop in interest rates is equivalent to a sale on the price of money, and corporations are already rushing to take advantage of the easy lending conditions, even if they're in no immediate need of funds. Mortgage rates have fallen, too - good news for homeowners looking to refinance. But lower rates have not turned out so well for some of the market's savviest players, including Bill Gross, the founder of Pimco, the world's biggest bond fund. Earlier this year, he sold his U.S. Treasuries, because he thought interest rates were poised to rocket higher, which would drive down prices of bonds. Oil has been trading consistently around the $100-a-barrel level, thereby lifting inflation, another bond-market negative. Investors are getting nervous and growing more willing to buy super-safe government bonds."
Peter Shishkov

Commodity prices rise amid economic turbulence - 0 views

  •  
    Lately, oil price is extremely volatile due to disappointing economic data from the US and eurozone, uncertainty about a potential debt-restructure in Greece and weaker oil demand from the US, China and Japan. Gasoline demand is expected however to pick up in the coming weeks as Americans take to the road for their summer holidays. On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for July climbed to $100.35 a barrel from $97.41. Gold and Silver remain to be the safest investments during problematic economic times. As a result the precious metals have increased in price: on the London Bullion Market, gold jumped to $1,533 an ounce from $1,491 the previous week; Silver rose to $37.69 an ounce from $34.80.
Alexei Goudzenko

A bold national energy plan can benefit the provinces - The Globe and Mail - 0 views

  • Canada would benefit just as much from the creation of a national electricity grid as it did from the development of the railway and the pipeline. As a nation-building effort, developing these grid connections would give provinces options to buy and sell power of all stripes. Unlike crude oil, it is a consumer product that can be used everywhere, and Canadian supplies of electricity are increasingly renewable in form. Such a project would increase the renewable power potential for Alberta and Saskatchewan by linking existing and future hydro development in Quebec, Ontario, Manitoba and British Columbia to these markets. While the distances here are excessive, the challenge is not insurmountable.
  • Many Canadians may not realize this, but most of Canada’s long-distance, high-capacity connections for oil and electricity run north-south, not east-west. In these key industries, we have focused almost exclusively on serving the U.S. This is one of the great strengths of our nation -- the ability of each province to create its own best strategy for developing revenue streams. It’s also a weakness, because lack of access to other provincial markets has effectively siloed our energy strategies along provincial lines, leading to a patchwork of development across the country that does not take advantage of potential synergies across regions.
Mike Seo

Canada firms may miss Chinese market - 1 views

  • If Canada's energy firms don't start exporting to China now, others might beat them to it, according to an Enbridge Inc. vice-president.
  • They argued the window of opportunity to sell to China won't always be open largely due to competition and the chance the world's second largest economy may cease growing at its current staggering pace - reducing the money its investors can spend.
  • Colombian oil producer Ecopetrol plans to shift the majority of its oil exports from the United States to Asia in a decade due to higher sales profitability on the latter continent.Enbridge is on a similar quest.The company is seeking regulatory approval for its $5.5-billion Northern Gateway pipeline project to connect Canadian oilsands and natural gas fields to the West Coast, where liquefied natural gas could be shipped to Asia.
  • ...1 more annotation...
  • As some 300 million to 400 million people annually move from rural to urban China, the country becomes richer and people consume more, Abbott said, noting power consumption in 2010 of 3,248 terawatt hours should grow to 4,510 terawatt hours in 2015.
Peter Shishkov

The gas-price debate - 0 views

  •  
    Neither the Republicans' nor the Democrats' policy proposals have much chance of having a significant effect on prices. Your taxis and town cars and commutes are not going to be made any cheaper-at least in the near-term-by ending oil company subsidies or drilling in the Arctic National Wildlife Refuge There isn't much that politicians can do to lower gas prices, but there is some good news for politicians panicked about the potential effect of high gas prices on their re-election chances.
Molly Fraser

Japan auto production plunges in april after quake, tsunami - 1 views

  •  
    Toyota Motor Corp. reported Friday that Japan production in April fell 74.5 per cent to 79,341 vehicles while its global production declined 48 per cent to 346,297 vehicles.
  • ...1 more comment...
  •  
    Japanese automakers have been forced to reduce production amid parts shortages. The magnitude-9.0 earthquake and ensuing tsunami devastated huge areas in northeastern Japan, home to auto parts manufacturers.
  •  
    Auto production works in a unique method in that different factories produce different parts, and oftentimes supply is exclusive to a few choice factories. This causes significant problems when there is a sudden rise in demand for these parts, or if production must be halted, as was the case with the 2011 Japanese Earthquake.
  •  
    Japanese Auto Dealers sell around 9,000 models per month in Canada alone; Honda's production has fallen 81%, producing 14,168 vehicles in April 2011.
Kevin Yeo

AmericanEconomicAlert.org Blog Network - 0 views

  • The rise in the oil deficit did indeed greatly outpace the rise in the overall deficit for March – 22.78 percent versus 6.03 percent.  But the increase in the deficit for high-tech products also surged – by 17.00 percent.  And the manufacturing deficit grew by 6.24 percent.
  • In March alone, U.S. exports of high tech products jumped by 20.26 percent (from $21.01 billion to $25.27 billion), while manufactures exports overall rose even faster – by 21.57 percent (from $71.56 billion to $86.99 billion).  
  • But deficits in these sectors kept increasing because their much larger import levels rose robustly, too.  Meanwhile, for the first quarter of this year, the overall trade deficit is running  23.46 percent ahead of last year’s comparable total – which in turn was up 25.91 percent from the first quarter 2009 number.
  • ...1 more annotation...
  • Bottom line: Despite genuinely booming imports, trade flows still kept dragging down America’s growth and employment performance, and still kept boosting the country’s debt burden.  Do these trends really deserve the label “recovery”?
1 - 15 of 15
Showing 20 items per page