MarketLine Blog

Posts tagged to Oil & Gas

OPEC: Supply restriction amid global oil glut

MarketLine

OPEC, consisting of 13 oil-rich governments, is the only true cartel allowed, albeit grudgingly, to operate in today’s global economy and it wields considerable power. In 1973 Arab members imposed an oil embargo on the US during the Arab-Israeli war which tripled prices in a matter of months. Three times in recent history OPEC has stepped in to shore up the oil market, and each time prices rallied within days of action being taken. It is fair to say, therefore, that OPEC is a force to be reckoned with. Or… Read more

Fracking approval: In spite of public opinion

MarketLine

The decision to approve Third Energy’s application to begin exploratory drilling for shale gas outside of Kirby Misperton in North Yorkshire has been hailed as a landmark decision for the UK fracking industry. Many believe that it will open the door to a swathe of further approvals, while setting a precedent which could help rival firm Cuadrilla in their appeal against the decision not to allow them to frack up on the Fylde coast. However, industry chiefs would do well to keep their champagne on ice, as public opposition is… Read more

Oil & Gas Industry Analysis: 2013 is expected to be a hard year for oil & gas segment due to lower consumption.

MarketLine

While the oil segment is operated on a global scale, the natural gas segment tends to be more localized, due to high transport costs and the need to ensure adequate transport infrastructure. In its January report, the Organization of the Petroleum Exporting Countries (OPEC) reports that in 2012, the increase in production in OPEC countries was just 0.54 million barrels per day, as a result of record deceleration in the Middle East and Africa. However, in North America, the increase stood at more than one million barrels per day. The… Read more

Ukraine reduces reliance on the Russian gas and imports more from Europe

MarketLine

Ukrainian state energy company, Naftogaz, has reduced gas imports from Russia by 30% so far in 2013 and will cut them further in 2014. At the same time imports from Europe will double, according to Ukraine’s Energy Minister Eduard Stavytsky. Imports from Europe are expected to reach 2-2.5 billion cubic meters this year, and no less than 5 billion cubic meters in 2014. The reason behind this move is the high price of Russian gas. While the sample average price of gas supplied from Europe by German firm RWE (RWEG.DE)… Read more