OPEC upset over low gas prices -

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Time for some shock n' awe...

Militants Attack Nigeria Offshore Platform, Kidnap U.S. Sailor
June 19, 2008 - Armed militants on boats sailed 65 miles offshore to attack an oil platform in Nigeria on Thursday, forcing the oilfield to stop operation. The attackers also kidnapped a U.S. sailor.

The Movement for the Emancipation of the Niger Delta (MEND) claimed responsibility for the attack on Royal Dutch Shell's Bonga oil platform, which produces 200,000 barrels per day.

After the daring raid, the fleeing militants attacked a U.S. supply vessel along the way, injuring two seamen and seizing the ship's captain. The unidentified hostage was released after several hours.

The attack caused oil prices to jump to $137 per barrel in Asian trading as the oilfield shutdown cut supply of the commodity from Africa's biggest crude producer.

Militants Attack Nigeria Offshore Platform, Kidnap U.S. Sailor | AHN | June 20, 2008

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Imbeciles...

House fails to move gas pump price gouging bill
Jun 25, `08 WASHINGTON (AP) - House Democrats failed Tuesday to resurrect a bill to punish price gouging at the gas pump, while maneuvering to block Republican attempts to expand offshore drilling, an idea gaining in popularity amid $4-a-gallon gas prices.

Action on legislation that would assure continuation of the ban on oil and natural gas drilling in most of the country's coastal waters was put off until later this summer after it became increasingly clear that Republican lawmakers may have the votes to lift the drilling moratorium. As Democrats prepared a string of energy proposals before lawmakers depart for the July 4 holiday recess, Republicans charged that they were being blocked from getting a vote on whether to end the ban on offshore oil and gas drilling.

Last week GOP presidential candidate John McCain as well as President Bush called for ending the blanket prohibition on energy development over 80 percent of the country's offshore waters. Republicans contend that the offshore bans should be ended to allow for more domestic oil and gas production, an argument that has gained support with $130-a-barrel oil raising the cost of everything from food to air travel.

The House Appropriations Committee has postponed consideration of an Interior Department spending bill that included continuation of the offshore drilling ban. Republicans had prepared a proposal that would have ended the ban and allowed oil and gas development 50 miles from shore in all U.S. coastal waters. "Somebody's afraid that we'll send a message" and lift the drilling ban, Rep. Jerry Lewis of California, the ranking Republican on the Appropriations panel, said Tuesday as the panel focused on other legislation.

More My Way News - House fails to move gas pump price gouging bill

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Too few sellers to cool feverish oil market
Tue Jun 24, 2008 - "More buyers than sellers," is often the answer traders give when asked why prices of shares, bonds or commodities are high.

For oil, this seems to be one explanation why the market has risen to record levels near $140 a barrel and stayed there, says Marco Dunand, chief executive of oil trading firm Mercuria. "We've noticed in the last few months, it is more and more difficult to find people willing to sell the market," he told Reuters in an interview. "It's a kind of liquidity crisis."

Dunand, with partner Daniel Jaeggi, has helped turn Mercuria into one of the world's top 5 independent energy traders with turnover last year of $33 billion. The company, created in 2004, is active around the globe trading crude oil and products. It has just signed a deal as part of a consortium to buy a refinery in Albania.

It is about to start natural gas trading in North America and aims to expand refined products into the U.S. The firm's main office is in Geneva in Place du Molard, which has longstanding links with commodities trading as it was the city's commercial hub in medieval times.

More Too few sellers to cool feverish oil market | Special Coverage | Reuters

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So much for the truce...

Nigerian militants: Violence will continue
June 25,`08 -- Militants who recently attacked a Chevron facility in Nigeria promised further attacks on the African nation's oil infrastructure.

The problems in Nigeria's Niger Delta region recently prompted Shell Oil to declare it could not meet contracts because of forces outside its control. Chevron took the same action Tuesday, The Wall Street Journal reported.

The activities of the Movement for the Emancipation of the Niger Delta have contributed to the run-up in oil prices. The recent attacks have cut the country's oil production in half.

"More of such attacks will continue as long as our people continue to be shortchanged in the affairs of the Nigerian state," Cythia Whyte, a spokeswoman for the Joint Revolutionary Council, said in a statement posted online. "Violence begets violence. If they attack us, then we too would follow that option. No one has the monopoly of violence. Rebellion against tyranny is righteousness before God. We have suffered enough."

Source

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Not likely it will make a difference. Oil companies will just maximize more profits...

Bye-bye gas subsidies
July 5, 2008: Could higher gasoline prices in China and India mean lower prices here in the U.S.?

If gas were more expensive in China and India, would it be cheaper in the United States? Dozens of countries in the Middle East and Asia have subsidies and controls that keep gas prices low to consumers. Many think that the government tinkering artificially fuels demand, imposing higher prices elsewhere in the world. Let the price rise in those countries, the thinking goes, demand will fall, and global prices will come down too. But in recent weeks, China, India, Indonesia, and Iran - countries where the government sets the price of gas - have all raised prices.

And now analysts disagree on what the impact will be. Some say that gas consumption - and worldwide oil prices - could actually go up. "Their lifestyle has changed so much for the better, it's not going to impact them that much if gas prices go up 20%," said Nauman Barakat, an energy trader at Macquarie Futures, the trading arm of Macquarie investment bank. "They are willing to pay more so they don't have to wait in line." Others agree.

"Actual consumption is unlikely to be affected seriously," analysts at Wood Mackenzie, and energy consultancy, wrote in a research note. "As long as China's overall economy remains strong, significant growth in vehicle ownership will more than offset the negative effects of this price rise." One result is that higher gas prices could give refiners an incentive to make more gasoline and eliminate the shortages that have plagued China and other fast-growing countries.

The price of gas

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Florida gonna be the next Texas...

Offshore oil drilling: An early jump in Florida
July 5, 2008: After decades of start-and-stop efforts, some companies are stepping up their exploration

Oil companies once viewed drilling in the deep waters off Florida as cost prohibitive. Politicians feared even the slightest sign of support would be career suicide. No more. Record crude oil prices are fueling support for oil and natural gas exploration off the nation's shores. In Florida, movement was underway even before President Bush called on Congress last month to lift a federal moratorium that's barred new offshore drilling since 1981. The early activity here stems from a 2006 Congressional compromise that allows drilling on 8.3 million acres more than 125 miles off the Panhandle - an area that had been covered by the moratorium, which was enacted out of environmental concerns. In exchange, the state got a no-drilling buffer along the rest of its beaches.

Florida may turn out to be a prelude for other coastal states. If oil or natural gas deposits are found in the newly opened region, experts say it could further the push to explore other once-protected areas everywhere. It also could be a rallying point for critics, who say the new exploration isn't a license to expand exploration. With gas topping $4 a gallon, recent polls show Americans, Floridians included, more supportive of drilling in protected areas. Some politicians - including Gov. Charlie Crist - have switched sides.

"We think the public is way out ahead of the politicians on these issues. People are more open to (offshore drilling) now," said Tom Moskitis, spokesman for the American Gas Association, a trade group. At the same time, oil companies, driven by the record energy price, are more willing to risk $100 million or more to begin exploring new regions. The Interior Department estimates there could be 18 billion barrels of oil and 77 trillion cubic feet of natural gas beneath the 574 million acres of federal coastal waters that are now off-limits.

A long history

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Mayhem gonna reign in Nigeria...

Nigeria Shelves Oil Crisis Summit
19 July 2008 - The Nigerian government has bowed to pressure from groups and ethnic leaders from the oil producing Niger Delta to suspend indefinitely a peace summit aimed at halting attacks on the petroleum industry. President Umaru Yar'Adua has failed to pacify the Niger Delta and now must come up with a new strategy to halt the violence.

Oil production in the Niger Delta has recently been hard hit by attacks by rebel groups on petroleum facilities, causing Nigeria to lose its position as Africa's biggest oil producer. The year-old administration of President Umaru Yar'Adua has repeatedly promised to address the root causes of the violence. The peace summit was a key component of government's plan to halt the deteriorating security situation. But most of the region's ethnic leaders dismissed the conference as a distraction and instead, urged the government to urgently respond to long-standing grievances of the impoverished residents of the Niger Delta. Tom Pulo, a Niger Delta militant leader, says the Nigerian government must take concrete measures to boost development in the Niger Delta if it is to prevent militants forcing the complete shutdown of its oil industry.

"There is no equal rights and justice as far as we are concerned. You can't, for example, set up a Niger Delta Development Commission to empower them with money and you are not giving them this money to develop the Niger Delta. Then two, the federal government arranged a budget for development of Nigeria for the year. The one for power was given to power; the one for water was given to them for water. But the one for Niger Delta was not given to Niger Delta Development [Commission], they gave it to soldiers; army, navy to come and kill us," said Pulo.

Since the 1970s, Nigeria has pumped more than $300 billion worth of crude from the southern delta states, according to estimates. But high unemployment in the delta, environmental degradation due to oil and gas extraction and a lack of basic resources such as fresh water and electricity have angered some of the region's youth and incited them to take up arms. The government says it is now exploring informal dialogue with Niger Delta leaders to propose recommendations on ending violence in the region. The government insists formal talks may resume in the future. Since the beginning of 2006, attacks by militants in the restive region have cut by 25 percent oil production in Nigeria, the eighth largest world crude exporter.

VOA News - Nigeria Shelves Oil Crisis Summit

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Not a big difference...

Reality Check On Offshore Drilling
July 30, 2008 - Most Americans Support Lifting The Ban, But Experts Say Gas Prices Wouldn't Change

With gasoline hovering around $4.00 a gallon, a new poll shows two out of three Americans now agree with President Bush - that Congress should permit drilling on the outer continental shelf, CBS News correspondent Bill Whitaker reports. "Experts believe that currently restricted areas … could eventually produce up to 18 billion barrels of oil," Mr. Bush said in a recent speech. Even in Santa Barbara, Calif., where a huge oil spill from an ocean rig blowout in 1969 turned most Californians against offshore drilling, some people are having second thoughts. "Well, if it doesn't hurt the environment too bad and it lowers gas prices, I'm all for it," said driver Sean Scott.

According to the federal government's own Department of Energy, drilling off America's coasts would not have a significant impact on domestic oil production or prices before 2030. And off-shore leasing wouldn't even begin before 2012. Why? Because the leasing process is cumbersome. And currently, there aren't enough rigs or workers or refineries to handle more oil. Then there's this. Most of the U.S. offshore oil, almost 10 billion barrels, lie off the coast of California. But at the current rate of U.S. consumption - about 20.7 million barrels a day - that would be burned up in 16 months.

"It would have a pretty modest effect even when it did start flowing," said U.C. Berkeley energy researcher Severin Borenstein. Borenstein says it might drop pump prices as much as 25 cents a gallon in 10 years or more, but: "I think it is very unlikely that we will ever see oil prices that get us back to $2 a gallon or even $3 a gallon." Opponents of the drilling say what's off our shores is a drop in the bucket. Supporters say when the bucket is running dry, any little bit helps.

Reality Check On Offshore Drilling, Most Americans Support Lifting The Ban, But Experts Say Gas Prices Wouldn't Change - CBS News

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Granny says, "Dis oughta knock the speculators back on their butts...

Nigerian crude reserves increase by 3.6 billion barrels
Saturday 16th August, 2008 - Crude oil reserves in Nigeria, the world's eighth largest exporter, have increased by 12 percent over the past year.

The oil reserve base now stands at 33.6 billion barrels according to officials from the state-run oil company, Nigerian National Petroleum Corporation.

The reserves in the OPEC member state stood at 30 billion barrels a year ago.

Nigeria, until recently Africa's leading oil producer and exporter before it was overtaken by Angola, is aiming to build a reserve base of 40 billion barrels by 2010.

Nigerian crude reserves increase by 3.6 billion barrels

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Granny says, "Mebbe we need to send Cheney over there with a shotgun?...

US government tells OPEC it needs more oil
Sunday 14th September, 2008 - The US government has said more oil is needed on the market, not less.

The White House in responding to a decision by OPEC to cut production by about half a million barrels a day, has said it disagrees with the decision.

The Organisation of the Petroleum Exporting Countries has recently voiced concern about a growing surplus of oil on the market as high prices have affected demand.

To break away somewhat from OPEC, the US House of Representatives is expected to vote on an energy package this week that would open the coasts of at least four Southeastern states to offshore drilling: Georgia, North Carolina, South Carolina and Virginia.

US government tells OPEC it needs more oil

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How oil collapse changes everything...

From the Kremlin to Caracas, how oil collapse changes everything
Friday November 21 2008 - Falling price means crisis for oil-producing nations and further instability for a battered global economy

As the price of a barrel falls to below $50 for the first time in years - to a third of its value just a few months ago - petrol will be cheaper but the shockwaves mean crisis for oil-producing nations and further instability for a battered global economy. Russia is lurching towards a major economic crisis, experts predicted yesterday, following news that the price of oil had slumped to under $50 (£33.72) a barrel. The collapse was likely to have catastrophic consequences including a possible devaluation of the rouble and a severe drop in living standards next year, they said.

With oil prices tumbling and his credibility at stake, Russia's prime minister, Vladimir Putin, yesterday insisted that the economy was still robust. The country would survive the global financial turmoil - which he blamed on the US - he told delegates from his United Russia party. But the Kremlin is aware that any loss of confidence in the Russian economy could lead to a loss of confidence in Putin and his ally Dmitry Medvedev, who took over from Putin as president in May. Putin said his administration would do everything it could to prevent a recurrence of the last oil-related crash in 1998, which saw the savings of many ordinary Russians wiped out. But the plummeting oil price leaves him little room for manoeuvre. Experts suggest Russia's economy is facing profound difficulties, despite two huge stabilisation funds accumulated during the booming oil years.

The fall in oil prices from $147 this July has blown a hole in the government's budget calculations. It is now facing a $150bn shortfall in its spending plans and will have to slash expenditure in 2009. Putin sought to assure hard-up Russians that their social benefits would not be affected. "We will do everything in our power ... so that the collapses of the past years should never be repeated," he said. The oil slump, however, exacerbates Russia's already severe problems. Since May Russian markets have lost 70% of their value. Russia's central bank has spent $57.5bn trying to prop up the ailing currency. "If the trend continues, with the government supporting the rouble, oil prices falling and a slowing economy, we are going to have a major crisis," said Chris Weafer, of the Moscow brokerage Uralsib.

IRAN

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So they get us to cut back on our consumption, then they want to cut production to raise prices???

OPEC could slash output - again
November 27, 2008 : OPEC could cut oil output for the second time in as many months as weak demand and recession jitters drive prices down.

The Organisation of Petroleum Exporting Countries (OPEC) has watched oil prices collapse since striking record highs above $US147 per barrel in July, sparking serious concern among its members about plunging revenues. However, ahead of the Cairo meeting, OPEC President Chakib Khelil this week downplayed the idea of an output decision in Cairo. Mr Khelil, who is also the energy minister of OPEC member Algeria, indicated that the Cairo meeting was too early because ministers needed more time to study the market. At the same time, Libya's oil minister Shukri Ghanem told AFP that "all options are open'' in Cairo -- and added that "there could be a decision'' to cut output in the Egyptian capital.

OPEC ministers agreed in Vienna last month to reduce production by 1.5 million barrels a day from November 1 as they sought to defend tumbling prices. But the market has since crumbled, approaching the lowest levels for nearly four years on growing concern that a painful global recession could ravage demand for energy, traders said. OPEC, whose next scheduled output meeting is in Oran, Algeria on December 17, has meanwhile signalled that it is ready to intervene on a regular basis to help prop up the market.

"OPEC output cuts are just starting to eat into crude oil supplies, and the ministers may decide to cut additional barrels when they gather in Cairo on Saturday,'' said Peter Beutel, analyst at US energy consultancy Cameron Hanover. However, Raad Al Kadiri, an analyst with PFC Energy Oil, said the cartel was happy to wait until December to assess the situation. "They (OPEC) seem to be signalling that they want to wait and see how existing cuts start to feed their way through... and leave any major decisions until the meeting in Oran in December.'' He added: "But at this moment in time there does not seem to be any great enthusiasm to do anything major.''

More OPEC could slash output again | Business | News.com.au

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Oil retreats on economic concerns
November 27, 2008: Crude futures remain in low $50s range as investors ponder weak U.S. reports.

Oil prices fell below $54 a barrel Thursday as dismal U.S. economic data and rising crude inventories outweighed the possibility of production cuts by OPEC and Russia. By midday in Europe, light, sweet crude for January delivery was down 86 cents to $53.58 a barrel in electronic trading on the New York Mercantile Exchange.

Markets in the United States are closed Thursday for the Thanksgiving holiday, but electronic trading on the Nymex continues. The dollar's weakening against other major currencies helped the Nymex contract recover from a low of $52.62 earlier in the session.

Investors tend to increase their holdings in commodities like oil when the dollar falls and as a hedge against inflation. Prices have hovered just above three-year lows this week as bad economic news painted a bleak picture of U.S. demand for crude.

More http://money.cnn.com/2008/11/27/mark...l.ap/index.htm