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oil prices

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Is $140 oil in the works again?

July 26, 2018

By Bill Loveless Oil prices, which hit a record $140 a barrel in 2008, could reach that level again within three years because of insufficient investments in exploration and production around the world, the professional services firm PwC warns in a new report. “While we’re not in the business of predicting the price of oil, the foundation exists to suggest that oil prices could rise over the next three years, potentially hitting new record highs of $140 (a barrel),” PwC says in a report on U.S. oil and natural gas deals released July 26. Oil producers have been reducing investments since 2015, a trend that continues today, causing “a pause” in exploration and development and “creating a lag in the development of new barrels,” PwC says. “Looking ahead at the next five years, the shortage of supply is clear, yet…

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by Bill Loveless
Energy, Podcast, Policy

Columbia Energy Exchange: Spencer Abraham

November 20, 2017

America’s energy fortunes have certainly changed over the past dozen years or so. Just that recently, the nation’s ability to satisfy its oil and natural gas appetite at home was uncertain, and reliance on foreign supplies seemed likely to increase. How times have changed! Today, the U.S. is once again a world leader in oil and gas production, even exporting oil for the first time in decades and gas for the first time ever. This turnabout has happened as solar, wind and other forms of renewable energy gain ground in the U.S., as their costs decline. And combined with gas, they are forcing old coal and nuclear power plants to go out of business. What have we learned from this shift in energy fortunes? And has U.S. energy policy kept pace with the changes? In a new Columbia Energy Exchange…

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by Bill Loveless
Blog, Oil, Prices

Stable outlook for U.S. oil producers at $45 a barrel

July 19, 2017

Most U.S. oil companies will be able to produce more oil while reducing operating costs at prices of $45 a barrel or so, Fitch Ratings said July 19. While the price for West Texas Intermediate, the U.S. benchmark for crude oil, has fallen from a 2017 high of $54.45 on February 23, producers with solid credit ratings can compensate for the lower price now through further gains in efficiency and lower costs per barrel, Fitch said. WTI closed at $46.02 on July 18. “Most U.S. (exploration and production) companies will continue to see production profile gains and lower costs per barrel of oil equivalent through a combination of reduced drilling days, improved well bore placement, expanded multi-well pad drilling, longer laterals and higher intensity completions, which should help offset market price pressures,” Dino Kritikos, senior director for U.S. Corporates at…

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by Bill Loveless
Article, Corporations, Defense, Economy / Finance, Energy, Government and Politics

OPEC’s power slips amid a spurt in U.S. oil production

December 4, 2016

Only time will tell whether OPEC will effectively implement its recent decision to curb oil supplies and reverse a price slump that’s persisted for 2½ years. But amid the many prognostications over oil prices, something else is clear: When it comes to energy security, the U.S. is in a much better position today than it has been in years. (Read More)

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by Bill Loveless
Article, Corporations, Economy / Finance, Energy, Government and Politics

Oil’s slide will affect sector for ‘some time,’ CEO says

September 11, 2016

Still in the midst of their worst downturn in 30 years, big oil companies warn that world oil markets are likely to remain vulnerable to sharp swings in prices for years to come. Among the latest alerts is one from Ryan Lance, chairman and CEO of ConocoPhillips, the world’s largest independent exploration and production company. (Read More)

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by Bill Loveless
Article, Corporations, Economy / Finance, Energy, Organizations

‘World’s energy superpower’ fights OPEC obsession

August 10, 2016

Although OPEC’s influence over world oil prices has declined in recent years, the mere mention of a meeting by the cartel’s member countries is still enough to trigger speculation and move the market. We saw that Monday when oil prices jumped 3% in New York after news broke that OPEC planned to assemble unofficially in Algeria in September in response to the latest setback in the market. (Read more.)

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by Bill Loveless
Article, Corporations, Economy / Finance, Energy

Oil’s slide: Some lenders are bearing up

August 1, 2016

The two-year-old slump in oil prices continues to take its toll on producers, with no end in sight. And that pain extends to the regional banks that cater to the oil patch. But some banks insist that the difficulties aren’t as bad as they may seem. Among them is BOK Financial, a Tulsa-based bank that’s been lending to producers for 100 years. (Read more)

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by Bill Loveless
Article, Consumer, Corporations, Economy / Finance, Energy, Government and Politics, International, People

Oil supply uncertainty helps pump up prices

June 13, 2016

With oil markets stuck in a slump for two years now, it’s easy to forget how much a sudden loss of supply can impact prices. But the U.S. Energy Information Administrationreminds us of that risk in a new report that puts “unplanned” oil supply disruptions throughout the world at a five-year high in May. (Read more)

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by Bill Loveless
Article, Economy / Finance, Energy

Oil industry problems, prospects keenly felt in N. Dakota

May 15, 2016

Oil prices have rallied lately, but not enough to convince U.S. oil producers that hard times may be over soon. That’s evident in shale regions like North Dakota that have driven a resurgence in U.S. oil and natural gas production over the last few years. Lynn Helms, the director of the North Dakota Department of Mineral Resources, told reporters the other day that producers won’t begin to ramp up activity until they see oil prices holding steady at more than $40 a barrel for 90 days or so. (Read more)

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by Bill Loveless
Article, Economy / Finance, Government and Politics, International

It’s back to normal for oil after Doha distraction

April 18, 2016

The world oil market can return to normal, at least the normal that has characterized it for the last couple of years, now that a hyped-up meeting of major oil producers has ended without striking a deal to freeze production and bolster prices. The mere hint that Saudi Arabia, Russia and other major oil producers would follow through on a commitment to limit oil output to January levels had contributed substantially to a 50% rebound in prices for the commodity since February, when the goal was announced. But even as delegates from the producing nations arrived in Doha over the weekend, expectations were widespread that the unusual meeting would end in stalemate, as it did on Sunday. (Read more)

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by Bill Loveless