All Discussions Tagged 'EnergyandCommerceCommittee' - GoMarcellusShale.com2024-03-28T10:09:02Zhttps://gomarcellusshale.com/forum/topic/listForTag?tag=EnergyandCommerceCommittee&feed=yes&xn_auth=noAnalysis: Things are flat in the Permian, and there's a push for renewables in Santa Fe by Dr. Daniel Finetag:gomarcellusshale.com,2019-02-01:2274639:Topic:7925682019-02-01T15:11:22.893ZBob Perkinshttps://gomarcellusshale.com/profile/BobPerkins
<p>The full article is here-> <a href="https://www.daily-times.com/story/money/industries/oil-gas/2019/01/27/analysis-things-flat-permian-governor-wants-renewables/2595583002/" rel="noopener" target="_blank">https://www.daily-times.com/story/money/industries/oil-gas/2019/01/27/analysis-things-flat-permian-governor-wants-renewables/2595583002/</a></p>
<p>"The Permian-Delaware Basin rig count should start falling as oil operators, large and small, are flat for 2019.…</p>
<p>The full article is here-> <a href="https://www.daily-times.com/story/money/industries/oil-gas/2019/01/27/analysis-things-flat-permian-governor-wants-renewables/2595583002/" target="_blank" rel="noopener">https://www.daily-times.com/story/money/industries/oil-gas/2019/01/27/analysis-things-flat-permian-governor-wants-renewables/2595583002/</a></p>
<p>"The Permian-Delaware Basin rig count should start falling as oil operators, large and small, are flat for 2019.</p>
<p class="speakable-p-2 p-text">Spending has been sharply reduced as supply now dominates the A.I. (Artificial Intelligence) used by many commodity traders in oil. </p>
<p class="p-text">The large or integrated oil companies have all the rigs of 2018 in place for 2019. This would make October the price peak of the latest boom or recovery in oil. Permian-Delaware Basin production would decline at least 500,000 barrels in 2019 to offset the supply glut and stabilize at $50 per barrel.</p>
<p class="p-text">OPEC members, notably Saudi Arabia, need a fiscal price of oil of $85 per barrel to pay for government and social spending. But at $60 per barrel, cash flow will not make it.</p>
<p class="p-text">Its new public relations-lobbying in the U.S will require Sovereign Wealth Fund borrowing at market rates, which will be higher mainly because of U.S Senate sanctions over the murder of a Saudi journalist writing for the Washington Post. </p>
<div class="partner-placement partner-spike ad-gray-border ad-notice ad-paramount-inline partner-placement-visible" id="ad-position-54"><div class="ad-slot" id="ad-slot-7103-nm-farmington-C1279-native-article_link-money-6"><div id="google_ads_iframe_7103/nm-farmington-C1279/native-article_link/money_0__container__">This writer forecast a 2019 $50 per barrel average price of oil when prices fell to $43.00 last month. </div>
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<p class="p-text">At the same time, many small and independent producers have break-even at $50 with high-interest debt!</p>
<p class="p-text">There are Chapter 11 bankruptcies valued at $140 billion from the Panhandle in Texas to the San Juan Basin that resulted from the OPEC -Saudi Arabian price and market share war of 2014-2016 against Southwestern small/independent shale and tight sands producers who now want reparations or damages."</p> Dr. Daniel Fine: No such thing as 'free trade' with OPEC as a carteltag:gomarcellusshale.com,2018-05-29:2274639:Topic:7791022018-05-29T22:32:56.606ZBob Perkinshttps://gomarcellusshale.com/profile/BobPerkins
<p>"</p>
<p class="speakable-p-1 p-text">Among some speakers at the 2018 Four Corners Oil and Gas Conference last month in Farmington there were evasive positions on the future of OPEC. Also, previous online or media positions of “free trade” were muted to be popular with the oil, gas and equipment operators who made up those in attendance. </p>
<p class="speakable-p-2 p-text">There is no “free trade” with OPEC as a cartel, either with assigned member production quotas or with the current…</p>
<p>"</p>
<p class="speakable-p-1 p-text">Among some speakers at the 2018 Four Corners Oil and Gas Conference last month in Farmington there were evasive positions on the future of OPEC. Also, previous online or media positions of “free trade” were muted to be popular with the oil, gas and equipment operators who made up those in attendance. </p>
<p class="speakable-p-2 p-text">There is no “free trade” with OPEC as a cartel, either with assigned member production quotas or with the current maximization of revenue strategy led by Saudi Arabia. If you hear free traders saddling up with current higher prices and OPEC, run for cover. </p>
<p class="p-text">On Thanksgiving 2014, OPEC and Saudi Arabia refused to reduce oil production volume and entered a market share offensive against non-OPEC high cost oil producers in shale and tight sands. </p>
<p class="p-text">This was a glut, or oversupply, of world oil but it was a chance to put San Juan oil just then — with rising production in the Gallup Sand — out of business. This was only reversed through the Algiers Meeting and agreement among OPEC members by cartel anti-free trade supply and demand manipulation. </p>
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<p class="p-text">President Trump captured this with his position that something was “artificial” about the price and supply of OPEC oil. Internal changes in the ruling House of Saudi Arabia, coupled with its power over OPEC, raised the price of world oil at least temporarily within the historic cycle of the industry.</p>
<p class="p-text">Some Republicans oppose Trump and published or spoke against his opposition to OPEC. which is also connected to higher oil prices for consumers who might be voters. OPEC members had no problem with a hypocritical response to let the market work. Not only is there no free market making oil prices, but oil and gas operators do not make markets any longer. Commodity traders have replaced them since the 1980s. </p>
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<p class="p-text">Only three years ago, when OPEC/Saudi Arabia had deviated from its role of supporting the world price of oil through supply volume strategy, Harold Hamm of Continental Resources called for smashing OPEC to protect independent and non-super major producers in New Mexico, Oklahoma, Texas and North Dakota." The complete article is here-> <a href="https://www.daily-times.com/story/money/industries/oil-gas/2018/05/27/if-free-traders-saddle-up-higher-oil-prices-and-opec-run-cover/615999002/" target="_blank" rel="noopener">https://www.daily-times.com/story/money/industries/oil-gas/2018/05/27/if-free-traders-saddle-up-higher-oil-prices-and-opec-run-cover/615999002/</a></p> Column: Mexico oil swap a response to Saudi price war (complete article) by Dr. Daniel Finetag:gomarcellusshale.com,2015-05-02:2274639:Topic:6741362015-05-02T02:50:41.501ZBob Perkinshttps://gomarcellusshale.com/profile/BobPerkins
<p><a href="http://www.daily-times.com/energymagazine/ci_28020522/column-mexico-oil-swap-response-saudi-price-war" target="_blank">http://www.daily-times.com/energymagazine/ci_28020522/column-mexico-oil-swap-response-saudi-price-war</a> <-- For the complete article use this link</p>
<p>Since the Organization of Petroleum Exporting Countries has imposed a price war upon Southwest shale oil producers, there have been efforts to come up with a counter-strategy. Since San Juan Basin oil is light…</p>
<p><a href="http://www.daily-times.com/energymagazine/ci_28020522/column-mexico-oil-swap-response-saudi-price-war" target="_blank">http://www.daily-times.com/energymagazine/ci_28020522/column-mexico-oil-swap-response-saudi-price-war</a> <-- For the complete article use this link</p>
<p>Since the Organization of Petroleum Exporting Countries has imposed a price war upon Southwest shale oil producers, there have been efforts to come up with a counter-strategy. Since San Juan Basin oil is light and tight (along with the region) is there a market in North America for it? As projects are underway for the export of natural gas to Mexico for Liquid Natural Gas, or LNG, conversion for overseas markets primarily in Asia, until now no parallel strategy surfaced concerning oil. Mexico is prepared to take the ultra-light crude oil for blending purposes into its Mayan heavy and sour.</p>
<p>So far, the discussion is over Mexican ocean-based refineries taking 100,000 barrels of our light oil in a swap for 100,000 barrels of their heavy for U.S. East Coast refineries.</p>
<p>The swap can be a physical exchange with tankers delivering to Mexico and picking up cargoes of Mexican heavy.</p>
<p>Any heavy Mexican oil purchased by U.S. refiners displaces foreign overseas imports from Saudi Arabia and Venezuela. This emerges as a North American counter to the OPEC oil price war. Now Mexico and the United States have a common market interest in a swap of oil between them. There are historic and strategic origins that surround the swap transactions. First, the change in Mexico towards oil and gas ownership and investment is itself a significant, if not radical, shift from exclusive, anti-foreign government control (enshrined in its 1938 Constitution) towards an opening to private foreign exploration and production companies. American companies are prominent among applicants to the first auction. PEMEX, Mexico’s state monopoly company is prepared to take partners who deliver capital and technology to increase production.</p>
<p>It is this historical change that must be conscious in the Swap strategy. The “Swap” transaction is part of a new southward emphasis on PEMEX and Mexico in a North American market. Earlier, Canada was the northern emphasis only in contrast to an anti-foreign PEMEX controlled by government policy. Canadian market acceptance of U.S. investment was reciprocal under American mining law since the 1920s, although sidetracked briefly by Canadian resource nationalism.</p>