Tag Archives: saudi arabia

Oil Prices and Production: Danger vs. Opportunity

The Chinese word for crisis has two characters – Danger and Opportunity. When we see the collapse of oil prices from more than $100.00 per barrel down to $45.00, clearly we have a crisis in the energy sector. The US oil industry has been hit hardest. A year ago the shale oil fracking industry was the darling of investors. Now, share prices have plummeted, companies are cutting back expenses, budgets are getting slashed, oil rigs are being taken out of service and the stage is set for some shale companies to go belly up. Shale oil is highly capital intensive and these companies are highly leveraged with huge debt.Continue Reading

Oil Price War – Saudis up Ante Cutting Prices Another $2.00 Per Gallon

The State owned company Saudi Aramco announced that it is cutting prices to a record low $2.00 per barrel discount to Asia, Europe and all grades of crude to US refineries. To reinforce Saudi Arabia’s vow to crush US oil shale producers, Saudi prince, Turki Al-Faisal said: “Saudi Arabia won’t give up oil market share at this time for anybody.”Continue Reading

Will the Oil Glut Cause a Drop in Price?

The world is awash in oil. From the US to the Mid East oil supply is outstripping demand. It is already causing disruptions in worldwide delivery systems.Continue Reading

Railroads Increase Revenue from the US Oil Boom

Oil was first discovered at Spindletop near Beaumont, Texas in 1901. Through the next several decades Texas became the biggest oil producer in the US. Then in 1968 oil was discovered at Prudhoe Bay in Alaska. The completion of the Alaska Pipeline in 1977 placed Alaska in the number two spot for oil production. As early as 1951, oil was found at the Bakken Oil Shelf, however extraction proved too costly. A large portion of The Bakken Field is in North Dakota. In 2000, a revolutionary process for extracting oil called “ Hydraulic Fracturing” was developed that changed the oil industry. By 2010, 458,000 barrels of oil were recovered from the Bakken Shelf, placing North Dakota number three in US oil production.Continue Reading