03-04-2015, 10:45 PM
On Wednesday, Feb. 25, EU Energy Commissioner Maros Sefcovic presented an Energy Union proposal to supply Eastern Europe with gas from domestic sources. This draft document, which was made available to The Guardian, details another “paper” plan by EU officials that is completely out of touch with any sort of realistic system for providing energy as well as the interests of the oil and gas industry in the end-users’ countries.
This Is Why The EU Energy Union Will Fail
From June of 2014 until now, the price of a barrel of West Texas Intermediate (WTI) crude oil has fallen approximately 57 percent. As the above chart shows, there have been drops of a similar percentage five times in the last 30 years. The rate of recovery has been different each time, but recovery has come. In addition, since 1999 the chart shows a consistent pattern of higher lows. In other words, oil is a volatile market, but prices are in a long term upward trend.
Here’s What Will Send Oil Prices Back Up Again
In his remarks, American Energy: Keeping the Momentum Going, Lance cited the nation’s oil and natural gas industry for supporting 9.8 million domestic jobs, and the recent energy renaissance for providing 40% of the growth in the nation’s gross domestic product over the past two years. He explained that lifting the export ban would enable surplus U.S. light oil that exceeds U.S. refiners’ processing capacity to sell on the world market. This would create additional demand for light oil from the nation’s growing shale producing fields, helping sustain the energy-driven economic stimulation and job creation that has contributed to the rebounding U.S. economy.
Oil exports could sustain benefits of U.S. energy renaissance, ConocoPhillips CEO says
Glencore Plc, the world’s biggest listed commodities trader, said 2015 could be a boom year for oil amid the biggest price swings in six years. “It is looking very well structured for oil trading,” CEO Ivan Glasenberg said in a conference call with analysts Tuesday. “If it continues like this, oil could have a blow-out year.”
Glencore sees ‘blowout’ year for oil traders as volatility surges
OAO Lukoil said profit fell 39% last year as crude prices slumped and Russia’s second-largest oil producer reported asset impairments from Kazakhstan to West Africa. Net income dropped to $4.75 billion from $7.83 billion in 2013, the Moscow-based company said in an emailed statement on Tuesday. Impairments of $2.34 billion were partly countered by a $1.89 billion hedging gain from oil trading.
Lukoil profit drops 39% after impairments, oil-price slump
Anadarko Petroleum Corp. has cut its planned capital expenditure for 2015 to $5.4 billion to $5.8 billion, about 33% less than last year, the company announced Tuesday. “In the current market, we believe it is prudent to reduce capital investments and position the company for the future, rather than to pursue year-over-year growth,” Al Walker, Anadarko’s chairman, president and CEO, said.