Tag Archives: oil

Price of oil crashes, goes negative

The beatings will continue until morale improves: Due to the crash in demand due to the government-imposed Wuhan panic shutdowns, oil producers, who can’t turn off their oil wells, have run out of storage space and are now forced to pay others to take the oil off their hands, thus sending the price of oil into negative numbers.

Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus. West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel.

Meanwhile, international benchmark, Brent crude, which has already rolled to the June contract, traded 8.9% lower at $25.58 per barrel.

While this crash is indicative of the entire crash of the economy, in the near long term it might be a good thing. If the government ever decides to release us from house arrest and people decide it is time to go back to normal, the low price of oil will help stricken businesses get back on their feet.

Then again, there is a very big “if” in that last sentence. I see no indication that our fascist state governors, especially in states run by Democrat governors, have the slightest interest in ending the shut downs. They like the almost absolute power it has given them over everyone, and that absolute power is corrupting them quite effectively. They might be making noises about “easing” the restrictions, but that is only political dishonesty. The bottom line will remain: They are now in control of everything everyone does, and have the right to give or take, as they please, whenever they please.

Major natural gas discovery off of South Africa coast

The French oil and gas company Total has made a major natural gas discovery off the coast of South Africa that could contain one billion barrels.

Total said it had made a significant gas condensate discovery after drilling its Brulpadda prospects on Block 11B/12B in the Outeniqua Basin.

“It is gas condensate and light oil. Mainly gas. There are four other prospects on the license that we have to drill; it could be around 1 billion barrels of total resources of gas and condensate,” [Chief Executive Patrick] Pouyanne said.

Big money here, which can change the balance of power in terms of fossil fuel energy resources.

Hat tip Max Hunt. I had missed this when it was announced on February 7.

The meteoric rise in Texas oil production since 2010.

The meteoric rise in Texas oil production since 2010.

Amazingly, oil production in the Lone Star State has more than doubled in less than three years, from 1.142 million bpd in July 2010 to 2.295 million bpd in February 2013, which has to be one of the most significant increases in oil output ever recorded in the history of the US over such a short period of time. A million bpd increase in oil output in less than three years in one state is remarkable, and would have never been possible without the revolutionary drilling techniques that just recently started accessing vast oceans of Texas shale oil.

The article does not going into any detail about why this boom suddenly started in 2010. They indicate that it is linked to the development of new drilling techniques, but I’d like to know more.

An Israeli company has discovered a giant off-shore oil and gas field within Israeli territorial waters.

An Israeli company has discovered a giant off-shore oil and gas field within Israeli territorial waters.

“The quantity of gas discovered in the licenses, and the high probabilities, make it the third largest offshore discovery to date,” according to Israel Opportunity chairman Ronny Halman, quoted by Globes. He added, ”This quantity guarantees Israel’s energy future for decades, and makes it possible to export Israeli gas, and boost the state’s revenues without worrying about gas reserves for domestic consumption.”