Oil Today

Strait of Hormuz

admin — Mon, 16 Jan 2012 22:33:16 +0000

Energy is what makes the world run today. Without energy all the machines that allow us to live the luxurious life that we live will stop working. Many of us would not mind going in our car to the grocery store that is 5 minutes away by walk. Most of the cars we use today run on fossil fuel. I know there are a few on the road that run on electricity, but guess what: the electricity that you use to charge the battery was produced by burning coal.

Coming back to oil, the possibility of the price of Oil going so high that more than 50% of the world would not be able to purchase it, is really high. This is because the president of Iran has been threatening to close the Strait of Hormuz. 20% percent of oil traded in the world passes through this strait and closing this strait would severely affect the world economy. The threat could become real as early as in 5 months time, as both Europe and U.S have agreed on sanctions that would make it impossible for any country to buy oil from Iran. We know these sanctions were imposed to stop the Iranian regime from getting hold of nuclear bombs. The sanctions are not yet made effective as 6 months time has been given for all the countries to find alternate ways to get oil.

In six months time instead of time management software you will need fuel management software, as the price of oil will surely shoot up. Wastage of oil will be a crime and economies around the world will start failing. One good thing that could come out of this problem would be the attention of world governments turning to alternative energy. Well, I am sure this is wishful thinking, because if Iran closes the Strait, we will immediately have another war for oil underway.

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Oil Future in a Financially Unstable Europe

admin — Sun, 02 Oct 2011 17:03:28 +0000

How is the European debt crisis going to affect the oil trade and business in the continent? This is the question that many of the people engaged in oil business have been asking after the beginning of the financial problems in Europe in 2011. The answer might appear to be quite complex because it is yet unknown what is actually gonna happen with the European commodity and stock markets. Nonetheless, a prediction by leading European economists indicate that the future of oil might not be that bright in the second largest oil consumer in the world – the EU.

Firstly, the commodity market might reject a further expansion of the oil business. The deficiency of capital and the reduced trade due to the economic problems of Europe might lead to significantly less demand for oil from international retailers such as Shell, the Russian oil giants and Arab providers. Even though oil would remain largely consumed, its use for commercial and industrial purposes might reduces. Many businesses have already decided that in the current economic climate, they are ready to spend more money and once and buy solar equipment or wind equipment for their facilities and thus reduce their energy expenses in the long run even being obliged to pay a lot for the beginning of such a venture.

In terms of general consumption, oil would also reduce its influence over the market. However, the demand would decrease slightly simply because people would still need transportation which for now only oil dominate as a source of energy and fuels. Even small businesses, such as providers of office cleaning supplies and other media-sized enterprises would continue to use oil because they would not have the necessary capital to go green. This is the reason why while with larger corporations and certain rich governments oil might reduce in popularity and despite the economic crisis, it would remain strongly consumed by small business and general consumers.

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New Oil Deposits Discovered

admin — Tue, 27 Sep 2011 10:54:52 +0000

Oil is now related as an ending resource to absolutely any transportation industry and activity (such as moving and handling instructor courses and separate transportation cores) and any other branch of production indirectly related to oil (such as technology and electronics). However, rather than worrying about oil, we might now be sure that there is much to be discovered. As the US unleashes a new program about discovering resources on the territory of the country, oil deposits keep appearing on the map making the country a possible leader in the oil industry in the upcoming years, overtaking Saudi Arabia and Russia.

Claims like this can be easily proved with the discovery of the Bakker ’Boom’. The Environmental News Network (http://www.enn.com/energy/article/43303) reports that the amount of oil in this area might well reach some 11 billion barrels and even exceed that amount thus contributing a huge amount of fuel to the american consumers for a short period of time. The states Montana and North Dakota are most likely to be the first states to benefit from the upcoming oil boom in the US as the deposits would be most comfortably extracted from these locations.

The news about the oil deposits puts a doze of certainty into the troubled US society – it is now certain that there would be oil in the upcoming decade unlike some predictions by economists that the deficiency of oil would force the American consumers to put up with extortionate prices. The oil extraction would also have a positive effect over the employment opportunities in these states and would significantly improve the economic situation of the US because currently the US is importing almost two thirds of its oil from abroad. Should the Bakker oil basin be developed as a leading source of fuel, the US might afford financial stability and large oil reserves.

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Asian Giants and Solar Energy

admin — Fri, 19 Aug 2011 20:33:22 +0000

The prices have always been rising, but it has jumped really high recently. Well that’s not the only problem, apart from the high prices there is also a shortage in petrol production due to the Arab revolutions in countries like Libya.

There was a time when people used to think what they would do if there was no petrol. Thankfully nowadays people know what they would do if there is no more petrol. There are many options of alternate energy, so that even if petrol is going to finish, life would still go on. It might not be the same, but if you look at it from the perspective of the environment it’s only going to be better.

China and India are two Asian giants that are together consuming the majority of fossil fuels in the world and every year their energy needs are only growing. This not only means that their development is causing an additional carbon release, but it also means that it is going to be affected by the shortage of fossil energy.

But while looking for some good pv panels at pv panels surrey, I realised that there is something that both these countries are overlooking right now. Both of these countries have the equator crossing them which means they are receiving a lot of sunlight per year. That is free, natural, renewable and environment friendly source of energy. All they have to do is to start investing into solar energy, especially when they have the financial ability to do so. This way they will not only fulfil their energy needs, but will also do a lot of good for the environment.

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Oil Today

admin — Thu, 18 Aug 2011 19:03:10 +0000

If you open Google news and type any sensible word in the search, most likely you will find news related to that word, from all around the world. But that does not really mean that the word that you typed was important. However with every news headline in there, below it mentions the time when it was posted. The word that will have higher number of recent posts is most likely going to be the most important word. Now go ahead and put oil in the Google news search and you will be surprised at the number of most recent news. You will find some might even be posted just a few second ago and more are on the way. Oh, by the way you also have to add the particular word to your section of Google news homepage. You don’t have to do that in case if you are not interested in oil related news, but in case if you are reading this blog then most likely you are.

The point that I am trying to make or the question that I am trying to evoke is ‘how important is oil today and are we willing to part ways with it?'There are schemes of wars and wars underway due to oil and the future is not even oil.

Last week right after we got our new flooring done, our 5 year old son slipped and fell due to some oil that had spilled onto the floor. It’s true that Oil is very important but it can be very slippery too. Many nations have fallen due to oil. You might want to try and reduce your dependency on oil. It’s only going to get costlier.

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Shell Strikes Out

admin — Mon, 08 Aug 2011 15:03:14 +0000

Oil is a commodity which we all take for granted and come into contact with on a daily basis. Yet the companies who are controlling the supply of this resource are not always doing the best job they can in ensuring safety and environmental standards are met. Oil is not dirty – it is how it is treated by some companies that make it dirty. Shell is the latest company to come under scrutiny.

A news item reported in The Guardian online just two days ago illustrates how much farther there is to go in convincing people that oil is and can be safe. As always it is the way the substance is treated by man that causes the problems. With BP still reeling from international condemnation from last year’s spill off the Gulf of Mexico, oil giants seem eager to incite hatred against them with the latest news from Nigeria.

For the past 50 years Shell has been drilling in and around the area known as Goi, 40 miles from the port of Harcourt in Nigeria. Due to some lax regulation from the Nigerian authorities, drilling and environmental concerns have not been taken as seriously as they should have been by the oil giant. Goi itself is now uninhabitable following a number of spills over the years that have been quietly swept under the carpet amongst the international community. It is only now thanks to the power of the internet, things like worldsim cards have become readily available in Nigeria enabling people previously without a louder voice to communicate effectively with the rest of the world.

Shell is currently facing a law suit in The Hague thanks to Goi resident and Deacon Barrisa Tete Dooh. Dooh has galvanised the former residents of Goi into action and whether or not their case is successful is almost a moot point. The publicity they hope to generate should be enough to make the world stand up and pay attention. The worst thing about the case is that Shell is another high profile provider of oil that can ill afford to annoy the people that rely on it.

It is difficult to say whether or not Shell is solely responsible for the Goi spills and subsequent move of its inhabitants. However as a well known oil giant living through a time where public outrage at oil spills, banks and much more is at fever pitch, Shell needs to be seen to be setting a good example. If it is found guilty in The Hague, perhaps it will encourage other oil companies to step up and take the lead in changing out-dated and environmentally unsound operating practises. Profit may be the defining factor on the balance sheet for Shell, but the costs they will incur from the trial and the potential damages involved could be the thing to force the top executives to take note and clean up their act.

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Unbearable Prices in Eastern Europe

admin — Tue, 26 Jul 2011 18:03:23 +0000

Eastern Europe keeps suffering from the economic disturbances around the world. The most recent shock is the increasing oil price that hit the region with increased petrol prices. Most of the households in the region denied to be able to afford petrol at these prices any longer and demanded their governments to take reasonable measures in order to maintain the affordable price limit over fuels.

The most damaged economy from the fuel prices increase was Bulgaria. The country is now suffering from extortionate prices of fuels where gasoline and diesel fuel are reaching 1.25 Euros per liter. Compared to the income of most of the households, such a price would have a devastating effect over the consumers in the country. Even hybrid cars will not make great difference to the people since the prices are nearing limits that have never been suspected as reasonable in the region.

Other economies such as Greece and Romania were also severely hit. The countries'economic problems coupled with the opportunity for oil to increase in price made it almost unbearable for people to travel with their own cars. Public transportation prices, however, are also increasing and thus inflation is quickening in the region.

For states such as Serbia and Macedonia the price change is even more severe because such countries are not even within the EU. Thus they cannot receive EU law protection and cannot trade oil from the EU without paying tax.
Thus the overall situation resembles an oil crisis not seen before – the demand for petrol products have decreased in times and the ability to purchase of the consumers has reduced with almost 7% overall by the increase in the prices.

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More Than Ever e Need To Start Drilling for Oil

admin — Mon, 18 Jul 2011 17:33:05 +0000

Drilling for oil has been a source of contention among policy makers for years. The shocking rise in oil prices over the last five years has had a negative impact on not only the local economy but also the global economy in general. The usual end result of oil price hikes is a slowing down of the rate of growth of an economy which often leads to an increase in the inflation rate.

Such increase in oil prices serves as a key point to the idea of drilling for ne oil fields. The most effective solution for this is to open up areas for offshore capabilities to enable oil extraction and drilling.

Offshore output is a very important component of production for countries that do not belong to the Organization of Petroleum Exporting Countries (OPEC) that have abundant onshore reserves.

The offshore drilling process is similar to what is done onshore. It also allows people in those countries doing the drilling to potentially benefit from lower electricity bill. Also businesses involved in manufacturing and in enterprises such as commercial cleaning surrey will see great power saving benefits.

Oil drilling off major coasts would provide plenty of mineral resources like sulfur and salt in addition to oil and natural gas. The broader economic effects are potentially more significant. A study in 2008 placed the possible revenue from opening up all off-limit Outer Continental Shelf (OCS) at $1.1 trillion and the direct cost at around $200 billion, for a net benefit of $900 billion.

All these provide clarity to the vitality of allowing offshore for oil production. Oil reserves are not expected to stay under the ground and it will be important to find other means to meet the growing needs of the society for more energy.

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Does a drop in crude mean relief at the pump???

admin — Sat, 25 Jun 2011 03:33:07 +0000

With oil prices'dropping by $4.00 at the close of day yesterday it has many people wondering if it will have an immediate impact on the high cost of auto fuel. Sadly the answer is no, and although people are weary of outrageous gas prices there is no real end in sight. There are far too many factors that work against consumers seeing any significant drop in price at the pumps.
The first and foremost issue being that although the price of auto fuel has increased on the flip side the demand has not decreased. In the US the summer months of May through August are often the most traveled and with the economy still unstable as it is many families are still opting to vacation close to home. This leads to an increase in gasoline consumption and offsets any decrease due to a drop in oil prices. As the summer months wind down the cooler temperatures set in and so begins the increased demand for home heating fuel.
Additionally, irrational speculations by investors as well as the unsettled situations in Middle East countries like Libya have not helped to bring the cost of oil down until recently. While Libya is only responsible for approximately 2% of the world’s oil exports when a country is at war with no end in sight it drives the prices up. To counter the loss of these exports OPEC has increased its production by about 60 million barrels a day to accommodate the demand and therefore has helped to drive costs of crude down.
The future of oil dependency does look hopeful though. Advances in technologies like hybrid vehicles and alternative fuel options have slightly decreased the need for oil, however until these advances are widely used and accepted the world’s dependence and use will remain at or slightly above the current levels. While it is unlikely that the global population will ever be oil free, reducing the need for it will good for both the environment and the wallet. Oil is not the evil that it is portrayed as by many economists and environmentalists. The truth is the excessive consumption is really the problem and until people can figure out how to effectively use alternative fuels, this vicious cycle is bound to continue.

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A Curse or a Blessing?

admin — Wed, 22 Jun 2011 19:03:06 +0000

What seems like a blessing can also become a curse if care is not taken. This is the case in an oil producing country in the western part of Africa called Nigeria. The nation is very rich with oil even if its leaders are corrupt and keep embezzling funds from oil money. This is not to criticise anyone or to pick on any nation because corruption is part of every country in the world. The discovery of crude oil in this country known as the giant of Africa has brought so much wealth for the nation; it has equally created other problems as well. The disadvantages of this ‘blessing'are fast superseding its advantages. There have been cases of violence in the region where most of the oil in the country comes from. Youths complain that multinationals are not doing enough to take care of their immediate environment.

They also complain of neglect among other things. I think it’s profitable to work for London builders than for an oil company in Nigeria, due to the vandalism of oil pipes which has become rife since young people trace and break them to take oil and sell illegally. This activity has cost many people their lives and of course cost government extra money in repairing the damaged pipelines and in creating awareness about the dangers of vandalising pipelines. The numerous cases of unrest caused by oil have made observers to wonder if crude oil is really the blessing that most people think it is. There is also the case of artificial scarcity that is sponsored by petrol marketers or retailers. This helps them sell it to those who can afford it at a higher price. The price of fuel during these scarcity doubles sometimes which also doubles the prices of other public amenities such as transportation thereby making life difficult for the masses. I just wish someday Nigeria would really profit from its natural resources.

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