Wednesday, December 17, 2008

#17- AubreyJ’s Energy Update Report - Wednesday, December 17, 2008


AubreyJ’s Energy Update Report
* Crude Oil Price falls below $40.00 a barrel...
for first time in four years
* LATEST News out on the Haynesville Shale...
Wednesday,
December 17, 2008

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Image credit: Kingdom of Saudi Arabia – MOPM
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Bloomberg.com brings us this report today on OPEC and Crude Oil Prices and it goes in part like this... Oil fell below $40 a barrel for the first time in more than four years as OPEC failed to convince traders that the glut in crude will diminish and the U.S. government said supplies climbed for the 11th time in 12 weeks... The Organization of Petroleum Exporting Countries agreed that the group’s 11 members with quotas will trim current production by 2.46 million barrels a day to 24.845 million barrels a day, OPEC president Chakib Khelil said in Oran, Algeria. OPEC has held four meetings in as many months...

...“They are facing the distinct possibility of oil falling to $30 a barrel and even lower,” said Addison Armstrong, director of market research for Tradition Energy in Stamford, Connecticut. “They have to bring supply down further because they aren’t getting any help on the demand front until the second half of next year at the earliest.”...
Read the full report at link below...
Crude Oil Falls Below $40 on OPEC Skepticism, U.S. Supply Gain
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* Reuters.com has this report on the story today...
OPEC oil ministers agreed their deepest output cut ever on Wednesday, slashing 2.2 million barrels per day from oil markets in a race to balance supply with rapidly crumbling demand for fuel...
Read the rest at link below...

OPEC makes deepest oil cut ever to rescue prices
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* AP.Google.com reports it this way...
Oil prices tumbled to new four-year lows Wednesday despite OPEC's announcement of a record 2.2 million-barrel crude production cut from OPEC, with markets already pricing in a vastly reduced flow of oil... Light, sweet crude for January delivery fell more than 5 percent, or $2.21, to $41.39 on the New York Mercantile Exchange. Benchmark crude prices fell as low as $40.20, a price last seen in the summer of 2004... U.S. gasoline inventories continued to rise, the government reported, providing further evidence of a major pullback by American motorists... Demand for gasoline over the four weeks ended Dec. 12 was 2.7 percent lower than a year earlier...

Read the full report at link below...
Oil tumbles despite huge OPEC production cuts
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Note: The following News Video was posted earlier this morning
before Oil Prices fell.

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Read more on story HERE
News Video posted on the web by FoxBuesiness.com
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Now... Here’s some of the LATEST News out on the Haynesville Shale...
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Note: I’ll be doing a very lengthy report on the Shale in the next week or so... just as soon as I can get where I can sit for longer periods of time. My back is getting better, but I’m still pretty much stuck in bed all day. Maybe by next week things will get better. But for now...
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Here’s a report I found posted on the Shreveport Times website Dec. 15th and it starts off like this...
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> The Louisiana Mineral Board collected more than $1.4 million during its lease sale Wednesday, pushing the total collections to more than $191.3 million for the first half of the fiscal year that began July 1... The results continue to show, however, the slowdown in leasing in the Haynesville Shale natural gas area in northwest Louisiana. Per-acre lease payments that reached $30,000 in July started dwindling two months ago... Last week’s lease sale saw tract bids in DeSoto, Red River and Natchitoches parishes range from $225 to $611 an acre. Some bids were accepted, but a majority, especially on more than a dozen tracts in Natchitoches Parish, were rejected...Of the 144 tracts nominated for leasing, only 44 were bid on...
Read this article, by Vickie Welborn, in full at link below...
December lease sale nets $1.4 million
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> Here’s another article I found posted on the Shreveport Times website from Dec. 16th... It was written by Adam Kealoha Causey and it starts off like this...
Caddo commissioners won't consider a mineral lease Thursday because at least one member believes they should wait for a bigger offer... The commission voted the contract off its agenda Monday... Red River Oil and Gas is seeking the rights to about four acres of parish rights of way on Gilliam Scotts Slough Road, northeast of Mira... Commissioner John Escude led in the dissent with the parish administration, which brought the proposal to the commission. "We don't go around pimping our property, so to speak. I don't see the point to leasing this."...
Read the rest at link below...
Caddo knocks mineral lease off agenda
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UPDATE:
Thursday
, December 18, 2008.
FoxBuesiness.com brings us this update today and it starts off like this...
Oil prices continued sagging Thursday as renewed signs of demand destruction coupled with more signs of economic deterioration overshadowed an attempt by the Organization of Petroleum Exporting Countries to put a floor under plunging energy prices... The benchmark oil contract recently slid $2.04 – or 5% -- to a four-year low of $38.02 a barrel, after falling 16% in the previous four trading sessions. Oil futures are expected to be particularly volatile during the next two trading sessions as the benchmark contract terminates and shifts to the next month...
Read the full report at link below...
Oil Slips to 4 1/2-Year Low Despite Steep Production Cut
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* MarketWatch.com has this report posted on their website this morning and it starts off like this... The Abraham Energy Report today issued a special analysis to subscribers of OPEC's decision Wednesday to cut production by 4.2 million barrels per day... A special Web-only bulletin from the Abraham Energy Report (AbrahamEnergyReport.com) advises subscribers that "the cut is the largest the organization has attempted at one time in its history to date" and that the "agreement was swift with little apparent dissention."... The recent collapse in oil prices by almost $100 per barrel is a symptom of the slowing economy. "Global oil demand is now certain to shrink in 2008 for the first time in 25 years, and a consensus is developing around the notion that demand will fall next year as well," the Report said...
Read the full report at link below...
OPEC Attempts Shock Therapy for Declining Demand: Abraham Energy Report

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AubreyJ.........

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