Declining Chinese demand, a rising rig count in the United States and a devastating resurgence of COVID-19 in Asia all play a role
It has been a fluctuating week for the oil markets. In the immediate aftermath of the agreement within the Organization of Petroleum Exporting Countries and their allies in OPEC+, crude prices fell by a devastating seven per cent on July 19. However, with signs of demand holding despite the spread of the Delta COVID-19 variant,…
G7 countries will further cripple their economies by pursuing their green energy fantasies
At their meeting in June, G7 leaders agreed to a greenhouse gas emissions target of “net zero” by 2050. That would require phasing out fossil fuels that currently supply 84 per cent of global energy. But how? The common reply is “putting a price on carbon,” i.e., carbon taxes. But unless there’s a viable alternative,…
Dealing with only one side of an issue – whether it’s migrating fish or electric cars – can generate more problems than it solves
Economists often talk about over-constrained problems. These are situations where there are so many goals to be reached and/or so many limitations that it’s impossible to find a solution that meets all requirements. Contrast this with advice often given to politicians to never talk about anything that can’t be fully described on a bumper sticker.…
Ignoring its potential would be a missed opportunity
In 1950, Canada faced a difficult choice between the desire to be a leader in the development of nuclear energy technology and the fear that such technology would bring the end of the world a little closer. Despite concerns related to the bombing of Hiroshima and Nagasaki, Canada elected to be in the vanguard. As…
All eyes are focused on Saudi Arabia. Will it continue to single-handedly maintain stability in the markets?
Uncertainty has overtaken the crude oil markets again for several reasons. Since March, crude oil markets have mostly been ascending. But prices declined last week by a greater margin than any time in the last four-plus months. And the resurgence of COVID-19 in many parts of the world is clouding the near-term future of oil.…
There is no subsidy pot of gold going to oil and gas companies that can be diverted to renewable energy ventures
By Mark Milke and Lennie Kaplan Canadian Energy Centre When the issue of taxpayer subsidies for energy comes up – oil and gas and renewables alike – the public, policy-makers and media could be forgiven if they feel like they’re drowning. Endless decimal points and numbers that run into the trillions can make it near…
U.A.E. prepares for a post-oil world, endeavouring to make the best of the oil it has before demand shrinks for good
Crude oil markets have left a confused picture and observers can’t decipher where prices will stabilize. In the immediate aftermath of the Organization of Petroleum Exporting Countries (OPEC) fiasco last week, oil prices were on a slippery slope. OPEC+ ministers halted crude oil output talks on July 5 after the United Arab Emirates rejected a…
As OPEC+ talks to increase crude oil production stall, the Saudis seem to have lost a key ally in the United Arab Emirates
Adrenalin never stops flowing in the oil business. Dull moments are rare. The emerging scenario among the Organization of Petroleum Exporting Countries and their allies in the expanded OPEC+ is no different. The group was on the verge of finalizing a deal on Thursday to increase its crude output by two million barrels per day…
Immigrant wages in oil and gas extraction in Canada are 71 per cent higher than in manufacturing and are rising faster than in other sectors
By Mark Milke and Ven Venkatachalam Canadian Energy Centre A few years ago, one of us took an early morning taxi ride in Vancouver. The driver, originally from Latin America, began to complain – without prompting – about how crazy it was that local anti-oil-and-gas protesters were trying to block the Trans Mountain pipeline expansion.…
But much still depends on United States-Iran nuclear talks and how OPEC+ members will react to any deal
Crude oil markets are hot. Prices are up and the US$75 line has been breached. Chatter about oil touching US$100 is getting loud and clear. Global oil consumption is getting closer to the pre-pandemic levels. The bleak clouds hanging over the crude oil horizon are beginning to dissipate. Industry eyes are again on the Organization…