After falling from $147 to $35 per barrel towards the end of last year, crude oil has once again gained and touched $45 per barrel on speculation that China's stimulus plan may spur demand for the commodity near term. However, some experts are of the view that this is not just speculation but real purchases driving the prices up.
Baytex achieved high capital efficiencies and strong reserve replacement for the fifth consecutive year as an energy trust. For full story, click here
Baytex is pleased to announce its 2008 year-end reserves as evaluated by Sproule Associates Limited (“Sproule”), the independent reserves evaluator for all of Baytex’s oil and gas properties, in accordance with National Instrument 51-101. For full story, click here
The United States government statement that U.S. employers had slashed over a half million jobs in January, the highest yet in 35 years, lead to crude oil prices dropping just below $41 a barrel, way below the high of $147 a barrel last summer. There is a link between layoffs and the demand on oil, say analysts, as those laid off see no need for the daily commute, and buy less of petroleum products like toys and raincoats.
OPEC’s meeting tomorrow will almost certainly result in talk of cutting production, but not much in the way of concerted action. Member nations’ motivations are not synchronized, so consensus is exceedingly unlikely. Iran wants to impose OPEC-wide decreases, but the UAE thinks current levels are appropriate. Although OPEC will not move together on this issue, some countries (notably Saudi Arabia) are likely to retrench significant volumes.
This column will not be trying to determine who started the war or who is in the right, but how the war might affect the future of Caspian oil extraction and Caucasian transhipment. Aside from the direct damage of the war, ripples will be felt throughout the Black Sea, Caucasian and Caspian regions, with somewhat paradoxical effects on who benefits and who is placed at a disadvantage.
Indonesia’s oil watchdog, BPMIGAS, warned that country’s declining oil reserves could be finished in 10 years’ time if no new reserves are found. Edi Purwanto, deputy chief of watchdog, BPMIGAS, said: The declining rate in production is between 8 to 10 percent per year. That means production will finish in 10 years’ time if we have not [...]
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