There have been lots of recent headlines about how much money the governments of oil exporting nations will lose as a result of declining oil prices. But these countries will really just earn less money than they would from selling their product at a higher price. The price of oil has never been static and… Keep reading →
Ed. note: This is a weekly column by Elie Mystal, Managing Editor of Above the Law Redline. This space will focus on the laws that exist, should exist, and should be put out of their misery. OVER-REGULATED Oil That Funds Terrorism: Evil crackpot Zacarias Moussaoui, a former Al-Qaeda operative in prison because we caught him,… Keep reading →
A few years ago, the oil boom brought jobs, workers and money to Williston, N.D. But the influx of young men also brought a rise in crimes like prostitution, drug trafficking, theft, and even murder. The town’s two strip clubs — Whispers and Heartbreakers — stand closed after police were called 189 times in under… Keep reading →
With the global oil market currently oversupplied to the tune of an estimated 2 million barrels per day, oil producer group Opec has struggled to formulate an effective strategy aside from “let the market sort it out.” For decades Opec played a price-setting role by increasing production to boost supply when prices were deemed too… Keep reading →
With the global oil market in a situation where futures contract prices are higher than prevailing prices – known by traders as contango – there is an incentive to purchase crude now and hold it until oil prices recover. Indeed, the world’s largest trading houses have been chartering tankers and shares of oil tanker companies… Keep reading →
The Saudis have stated that their goal in maintaining current oil output and export volumes has been to protect market share against foreign rivals. The Saudi’s rivals are not limited to other oil producers though, they are also striving to undermine clean energy technologies and climate change policies. “Lower oil prices are going to make… Keep reading →
When supplies of dry US natural gas swelled several years ago as companies honed their shale resource development skills, gas prices dramatically declined hitting a low of about $2 per million BTU. This caused natural gas producers to shift drilling operations into more liquids-rich areas and adjust their production more toward oil, which fetched higher… Keep reading →
News that Saudi King Abdullah bin Abdulaziz Al Saud passed away sent oil prices sharply higher on Friday, but analysts dismissed the move as a knee jerk reaction, noting the recent trend remains intact. “It’s not an extraordinary move in oil prices, given the recent volatility and turmoil in the oil markets,” said Michael Levi,… Keep reading →
In its goal of pursuing statehood, the Islamic State became an oil state at the worst time. When international oil prices were trading closer to $100/bbl, it’s estimated that IS could have been making $6 million a day from black market oil sales. The oil price decline is altering the way IS conducts its business… Keep reading →
The fallout from declining oil prices continues materializing on a daily basis – several companies announced workforce reductions this week – and Baker Hughes is one of the latest to make that difficult decision. “This is what I hate about this industry, frankly, is these brutal cycles we have to go through,” said Martin Craighead, chief executive… Keep reading →
