A New York Times article tonight reports that China intends to become a world leader in electric and hybrid cars: Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and […]
Read more...Although fuel supply trends are only a crude (no pun intended) indicator of economic activity, the reversal of China from stockpiling diesel to being a net exporter is considerable, and demand for diesel is weak. While the steep contango for diesel indicates that traders believe the low prices are temporary, the glut is so large […]
Read more...One of our pet peeves has been that the quality of data for oil and gas is lousy. Given that these are physical products, bought and sold through many channels, with no way of assuring consistency and accuracy of reporting, it isn’t surprising. However, what is surprising is that many users of this information treat […]
Read more...Admittedly, the report from Emirates Business 24/7 (hat tip reader Michael) is only one expert’s opinion, but it focuses on an issue that hasn’t gotten the attention it warrants, namely, the level of the current oil glut and how much it is going to take to work it down. The subtext of this piece is […]
Read more...The oil-rich countries of the Middle East have some advantages in pursuing the “green” energy market. First, they have pools of investment capital they can turn to this purpose. Possibly more important than access to money is that the funding sources may be willing to take a longer term horizon and lower returns than US […]
Read more...Falling fuel prices and penny pinching consumers are not a plus for energy-saving technology, particularly the big ticket variety. And the latest auto sales figures complicate the plans of those who’d push Detroit towards making hybrids as one of the bailout concessions. From the Financial Times: US hybrid petro-electric sales in November shrank 53 per […]
Read more...Liquefied natural gas doesn’t get much attention in the US because in aggregate, it is not a significant energy source here, and imports were at a five-year low in 2008. But supply/demand conditions has shifted dramatically overseas. The combination of depressed LNG prices and cheap shipping means that excess LNG may show up in the […]
Read more...Although talk of deep OPEC production cuts and hopes for an auto industry rescue have given oil prices a boost, the fundamentals are far from out of the woods. Indeed, as OPEC bravely claimed demand and supply really weren’t so far out of whack (was that at effort to set the stage for a less-than-hoped […]
Read more...Russia is dependent on oil exports for its new-found prosperity and does not appear ready to give it up. From CNN Money (hat tip reader Michael): Russia’s top energy official said Wednesday that the nation may set aside an oil reserve to influence global prices – but won’t cut output, news reports said. Deputy Prime […]
Read more...This post is by Jim Fitch of Some Assembly Required. Americans want cheap fuel, no matter what it costs. Sign Here: JPMorgan, Citigroup, Morgan Stanley. The Usual Suspects. Now they want to take over all the pension funds. With Uncle Sam’s help, blessing, and taxpayer backing. Sort of a consolation prize for not getting their […]
Read more...Doing a bit of weekend catch-up, and this news item on Saudi reserves, or more accurately, lack thereof seemed to miss the attention it deserved with the market upheavals, Bernanke testimony before Congress, and stimulus plan announcements. A quick review: one of the arguments the peak oil types, Matthew Simmonds in particular, is that the […]
Read more...Note this dramatic headline isn’t quite as dramatic as it appears. The ten-fold increase in $200 one year Nymex WTI oil options is in open interest, meaning the number of contracts outstanding, not their price (their price increased a mere 36% in a month). And the reason for their popularity? A seriously out-of-the-money option is […]
Read more...Due to a mishap, some supposedly closed-door OPEC discussions were aired. Perhaps the most telling remark was the Saudi insistence that the dollar not even be mentioned in OPEC communiques, since any indication that the member states were talking about it would drive the currency lower. Nevertheless, as we discuss below, OPEC members are keenly […]
Read more...Martin Wolf, in today’s Financial Times, does a very nice job of summarizing the International Energy Agency’s newly released World Energy Outlook. Some tidbits: energy consumption will rise 50% by 2030; coal will increase its share of energy production; even if the powers that be get serious about greenhouse gases, their level will be 30% […]
Read more...Martin Wolf, the Financial Times’ highly regarded economics editor, has an usually blunt article today, “Biofuels: a tale of special interests and subsidies.” While the main target is the way special interests are turning biofuels into yet another agricultural pork barrel, he makes a number of important observations: biofuels are only marginally cleaner than conventional […]
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