Wednesday, June 13, 2012

#40- AubreyJ’s Energy Update Report - June 13, 2012

AubreyJ’s Energy Update Report
Iraq to Overtake Iran as OPEC’s Second Biggest Producer
Wednesday, June 13, 2012
Image credit Chesapeake
* Reuters brings us the following report and it starts off like this… Iraq’s rise is upsetting OPEC’s power balance. For the last decade, the oil cartel has let the Gulf country produce crude without an output quota. The exemption allowed Iraq the freedom to invest in its war-damaged oil industry. That reconstruction is picking up pace - production is now higher than before the U.S.-led invasion in 2003. Iraq is set to overtake Iran as OPEC’s second biggest producer. The rapid increase in output is an urgent challenge for OPEC’s oil ministers who are meeting this week in Vienna….
Read the rest at link below…
* Also from Reuters is this report and it goes in part like this… A mutual need for oil above $110 a barrel to balance their budgets is expected to prompt Iran and Iraq to call for Saudi Arabia, pumping its highest in decades, to cut back when producers meet in Vienna on Thursday… Oil has fallen $30 since March to below $100 as oil stocks build and the economy wobbles. That falls short of the $100-$120 range that Iraqi Oil Minister and current OPEC President Abdul Kareem Luaibi says is reasonable...
Read this report in full at link below…
Meanwhile, back to the States and my main love -- Natural Gas!
Here’s a fun question for ya:
Just how much Shale Gas is there in the U.S.?
Would you believe…?
• Enough natural gas to meet US electricity demands for 575 years.
• Enough to fuel U.S. homes heated by natural gas for 857 years.
• MORE Natural Gas than Russia, Iran, Qatar, Saudi Arabia, and Turkmenistan… COMBINEED!
* Gary Hunt wrote the following, in part, back on Feb. 15th… Low energy prices also bring energy security as long as reliable supply is sustained reducing American dependence on imported oil and natural gas from the Middle East and reducing the volatility of oil prices as demand is distributed across wider global supply opportunities from shale. Low energy prices especially in oil undermine the economies of OPEC member states and reduce their geopolitical and global economic leverage. This can lead to a change in US foreign policy priorities away from the Middle East
Read the full report at link below…
* Steve Levine wrote this article back on May 31st and it starts off like this… One of the most consequential energy decisions on the Obama Administration's plate isn't one typically discussed in the election-year hot house -- whether to expand drilling, allow the expansion of a pipeline for Canadian oil sands, or to throw clean-tech entrepreneurs to the sharks… It is whether to more fully open the floodgates of the U.S. natural gas boom on the world by permitting greater exports of shale gas. The appearance of large volumes of U.S. shale gas on the global market could rattle geostrategy and markets from Russia, to Europe, China and the Middle East… Shale gas drillers -- saddled with a glut of gas, and fire-sale prices -- are pushing hard for permission to build liquefied natural gas terminals and export some of their supply, perhaps 60 billion cubic meters a year, especially to Asia…
Read the rest at link below
* reports

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