Post Tagged with: "energy markets"

Source CNBC

Oil prices ‘could make a run at $80’ if US-Iran conflict intensifies, analysts say

CNBC Oil prices could surge toward $80 a barrel if escalating geopolitical tensions disrupt Middle East crude supplies, analysts told CNBC on Friday, with energy market participants “on tenterhooks” after a U.S. airstrike killed key Iranian and Iraqi military personnel. International benchmark Brent crude traded at $68.65 Friday morning, up more than 3.6%, having earlier spiked to an intraday high of $69.16. U.S. West Texas Intermediate (WTI) stood at $63.38, over 3.5% higher, paring some of its gains after climbing to $63.84 earlier in the session. Iran’s General Qasem Soleimani, who led a special forces unit of the Islamic Republic’s elite Revolutionary Guards, was killed in an airstrike at the Baghdad International Airport early on Friday. The same attack was thought to have killed Iraq’s Abu Mahdi al-Muhandis, the deputy commander of Iran-backed militias known as the Popular Mobilization Forces, Reuters reported, citing an Iraqi military spokesperson. The airstrike, which the Pentagon said was issued at[Read More…]

Alaska Is the Biggest Bet Yet for Texas’s Anti-Shale Oil Billionaire

Alaska Is the Biggest Bet Yet for Texas’s Anti-Shale Oil Billionaire

From Bloomberg Hildebrand gained fortune buying old, conventional oil assets, bet may be timely as investors begin to sour on shale Texas oilman Jeffery Hildebrand became a billionaire by shunning the shale revolution taking place in his home state. Now, he’s making his biggest bet yet — Alaska — just as shale producers run out of steam. Hildebrand’s Hilcorp Energy Co. is buying a collection of old wells and pipelines from BP Plc for $5.6 billion as the oil major chases fast-growing shale production that has transformed global energy markets over the past decade. Meanwhile, the Alaskan wells have been in decline for years. “Hilcorp is somewhat uniquely following a counter-cyclical strategy, really going after these legacy assets that public companies are selling at pretty attractive price points,” Andrew Dittmar, a senior analyst at Enverus, said by phone. “They will generate cash flow for decades.” It’s an unpopular strategy but[Read More…]

Japan LNG Buyers Talk Tough as Spot Prices Drop to 3-Year Lows

Japan LNG Buyers Talk Tough as Spot Prices Drop to 3-Year Lows

From Reuters An inexorable decline in spot market prices for liquefied natural gas (LNG) is pushing utilities in Japan to be more aggressive in price reviews built into traditional long-term contracts linked to oil prices, lawyers and analysts said. The utilities are also looking to buy more LNG on the spot market, where prices LNG-AS are plumbing three-year lows and are around half the average contract import price for buyers in Japan, the world’s biggest importer of the fuel for power generation and industrial use. The tougher stance marks a shift for Japanese utilities, which have long favored stability of supply over price, partly because they have been able to pass on costs to consumers. But liberalization in Japan’s energy markets means the old guard utilities are losing customers to new entrants and they are desperate to cut costs. “Given the gas and power markets liberalization and intensifying domestic competition[Read More…]

U.S. Energy Expenditure Level Lowest Since 2004

U.S. Energy Expenditure Level Lowest Since 2004

The EIA reported today that the U.S.’s expenditures for delivered energy totaled $1.127 trillion, or 6.2% of the nation’s GDP, in 2015—the lowest since 2004. The decrease was approximately 20% lower than expenses in 2014, which totaled a little over $1.4 trillion. Decreases in transportation prices Transportation expenditures made up approximately 45% of the $1.127 trillion, or about $507 billion. Transportation expenditures include expenditures for fuels for automobiles, rail lines, aircraft, and ships and barges. Transportation expenditures experienced a decrease of 28% due largely to decrease in fuel prices. The EIA’s report shows that declines in petroleum product prices accounted for the majority of the overall price decline. The petroleum fuels made up the majority—97%—of total consumption in the transportation sector. Decreases in expenditure, despite growth The amount money spent on energy decreased despite a growing economy and growing energy use. Over 2015, the U.S. GDP increased by 2.6%, and[Read More…]