LONDON, July 5 (Reuters) – Pressure to respond to falling
oil and gas prices by cutting operating costs, coupled with the
need to reduce the social and environmental footprint on host
communities, will force fracking firms to employ a more targeted
approach to drilling wells and hydraulic fracturing in future.
More than a million fracturing operations have been
conducted in the United States since 1947, according to the U.S.
National Petroleum Council, yet in many ways the technology is
LONDON (Reuters) – Commissioner Scott O’Malia has emerged as the most consistent and formidable opponent of Chairman Gary Gensler’s rule-writing efforts at the U.S. Commodity Futures Trading Commission (CFTC).
On everything from position limits to the legal definition of swap dealers and rules for derivatives clearing organizations, O’Malia has issued a string of long and carefully reasoned dissents from regulations proposed by CFTC staff and endorsed by a majority of the other commissioners.
LONDON, June 28 (Reuters) – For all that Malthusians worry
about oil running out, and analysts cite the rising costs of
exploration and production, the oil industry has been adding
reserves faster than they are being consumed since 2005, as high
prices spur an investment boom across the industry.
Contrary to the alarming predictions made a few years ago,
and still periodically revived by peak oilers, there is no sense
in which oil is running out.
LONDON, June 27 (Reuters) – Soaring output of light
condensate in the United States has crushed refining margins for
naphtha and added to the global gasoline surplus.
But it is also providing a boost to Canada’s oil industry,
which increasingly benefits from a captive source of the diluent
needed to make bitumen and heavy oil flow through processing
facilities and pipelines.
LONDON, June 14 (Reuters) – ConocoPhillips Chief Executive
Ryan Lance has caused a stir by warning an audience including
OPEC oil ministers that North America could become
self-sufficient in oil by the middle of the next decade, ending
the region’s dependence on imports.
“In 1990, North American reserves and production were
falling, but thanks to unconventionals proved reserves have
risen 68 percent since then,” Lance told an audience of OPEC
ministers on Wednesday.
LONDON (Reuters) – Global financial regulators seem to have thought better about imposing ambitious new rules on physical oil markets.
Instead they are leaning towards a modest set of record-keeping requirements for price reporting agencies (PRAs) that largely codify existing practice and are in line with voluntary commitments the agencies have already given.
LONDON (Reuters) – Following recent falls, oil prices are much closer to the industry’s marginal cost, especially in North America, where light sweet crude futures are now valued at only a little over $80 per barrel.
For bullish investors, lower prices promise to provide support by threatening to curb rapid output growth, especially from high-cost tight oil and bitumen projects across the United States and Canada, as well as deepwater exploration, unless the global economy enters another tailspin.
LONDON, June 11 (Reuters) – The overdone selloff in
commodity prices, especially crude oil, has created the
potential for a strong rally once fundamentals reassert
themselves and hedge funds re-enter the market, according to
researchers at Goldman Sachs.
“We believe that the selloff in commodity prices is likely
overdone and the price risks are shifting more to the upside,”
Goldman wrote in a note published on Monday (“Commodity Watch:
Stepping back into the markets” June 11, 2012).
LONDON, June 7 (Reuters) – Politics is brutal. Just how
brutal became apparent Wednesday when Wall Street teamed up with
Republican lawmakers in the U.S. House of Representatives to
emasculate the Commodity Futures Trading Commission (CFTC) by
slashing its budget while imposing new requirements for
cost-benefit analysis and rule-writing.
The aim is to stop the agency implementing the 2010
Dodd-Frank Wall Street Reform and Consumer Protection Act by
depriving it of resources needed to draft and oversee new
regulations, while erecting tougher barriers to writing new
LONDON (Reuters) – Investment behavior, jobs and growth hinge on assumptions about the long-run returns and risks that investors should expect, and these expectations rarely budge, even when they become inappropriate or unrealistic.
“The most stable and least easily shifted element in our contemporary economy has been hitherto, and may prove to be in future, the minimum rate of interest acceptable to the generality of wealth-owners” John Maynard Keynes wrote in 1936 in his landmark “General Theory of Employment, Interest and Money”.