As Achilles knows first hand, I've got a little scrap book gorging itself on articles concerning oil/gas issues and energy issues in general. I'll post some of the headlines, their source, date and a short summary below.

Enjoy, and add anything you have picked up in the news lately.


-Tight Oil Supply Won't Ease Soon NY Times, 5/16/04

Relatively small increases in the price of oil takes "spare change" out of consumer's pockets. Large consumer companies cite a decrease in sales. Terrorism, China's economic boom, production capacity, instability in Iraq and refinery capacity cited as proximal causes.

-Saudis Suffer Fresh Terrorist Attack The WS Journal, 6/1/04

Al-Qaeda intends to disrupt oil supplies through attacks, serving the double purpose of weakening America and weakening the regimes that support America with oil. Effect in Saudi Arabia is more psychological than physical, could goad foreign workers into leaving. Iraq more directly affected by attacks.

-Oil Companies Curb Their Spending The WS Journal, 6/2/04

Companies cut spending, focus more on mergers, acquisitions and liquidation of mature fields even though oil prices (thus, income) are high. Little investment in risky ventures. Interesting quote:
[From a Chevron Texaco spokesperson] "Our projects are moving forward at a pace guided by long-term corporate strategies and business plans - and not by short term market conditions."
Perhaps they know about supply trends in the future? Oil and natural gas prices were previously expected to rise 1.5% this year, but are now slated to rise 2.3%.

-Crude Held the Sweet Spot in May The WS Journal, 6/2/04

Rising oil prices cause weak stock and bond prices. China trying to slow down economy before it "overheats." As economies reach the apex of recovery, oil prices simmer. Prices considered a temporary problem, with terrorism and short term demand cited as proximal causes. Current prices called "irritating, not disastrous."

-High Oil Prices Cast a Shadow Over the World's Recovery The WS Journal, 6/2/04

At the time of article, oil prices were the highest for a non-crisis time in two decades. Author asks whether we could soon face oil shock, citing Middle East supply disruptions, unreliability of Iraqi oil, China/US demand, short US energy supply and negative speculation. If prices stay at current levels, world economic recovery could be dampened by half a percentage point. As money leaves consumer's pockets, companies face "greater coasts, lower investment, reduced profits...layoffs." Possible inflation in US. Oil prices not high compared to Gulf War (50 $ barrel +) and 1973 embargo (80 $ barrel + w/inflation).

-Oil Futures Surge 6.1% to New High The WS Journal, 6/2/04

Leaders of the OPEC cartel initiate meeting to help ameliorate high oil prices. Call for an increase in production from its members before any attempt is made to increase capacity. Global demand, low inventories and terror [once again] cited as kinks in the oil supply chain. Author likens Saudi Arabia to the world's "central bank" of oil. Saudi Arabia to increase production now, and capacity by fall. The rest of OPEC members already pumping to capacity - realistically, they are worthless to the effort to alleviate prices. OPEC considering raising target oil price from 22$ a barrel (fat lot of good that is) to 28$ a barrel, a move opposed by members for a more opportune time. Also considering desperation move of selling discounted oil. Officials say only a period of calm will cool the terror premium on oil.

-Slippery Slope The WS Journal, 6/7/04

Article suggests that OPEC has reached its production ceiling, exluding Saudi Arabia. Previous reports that capacity in Saudi Arabia was 9.2 mb a day conflict with current promises to increase production to 10.5 mb a day in the short term and 11.3 mb a day by autumn. Market worries as a cause of hoarding blamed by author for high prices.

-Lack of New Refining Capacity is Spotlighted by High Oil Prices The WS Journal, 6/7/04

US refineries are to blame for the some of the high price of gasoline. They blame environmental regulation, while consumer advocates blame self-constriction of capacity and consolidation of companies to decrease competition (Rockerfelleresque?) for the high prices of gasoline. Industry tentative to increase capacity with the precedence of low margines in the last decade. Lower imports because of environmental statutes also to blame. Refineries push to upgrade and expand around environmental rules: Bush considers it.

-For East Timor, Energy Riches lie Just Out of Reach The WS Journal, 6/10/04

East Timor, after having only recently gained indepence of a belligerent Indonesia staked a claimed to offshore oil deposits already claimed and under development by Austrlia. The offshore patch is closer to East Timor, but Australia claims development rights. Joint development with an uneven split in profits (in favor of East Timor) is already underway, but many suggest the indigent nation deserves rights to all of the profits. Meanwhile, living conditions in East Timor are some of the worst on the earth. Education is a dream, and the government operates from a bungalo in the capital.
The squabbling for limited resources begins, gentlemen.

-An Oil Enigma: Production Falls Even as Reserves Rise The NY Times, 6/12/04

Companies are constantly finding more than they produce according to article, but the distinction between proved, easily accessible reserves and reserves with a low energy returned to energy investment rendered or completely inaccessible is not being made in reports to stockholders. Article does not suggest conniving, but rather the ambiguousity of state of reserves. Reserve speculation may have overestimated significantly and, the "supermajor" oil companies may have access to signifcantly less crude than previously predicted. Additionally, maturing fields begin to produce less because of technical problems even though there is still oil remaining in the deposit.

-Oil Majors Replace Just 75% of Reserves Pumped, Study Says The WS Journal, 6/16/04

According to a study by Deutsche Bank, only 75% of reserves have been replaced recently. In the 2001-03 period, 116% of production was replaced with new reserves, but these may not represent genuinely new finds (see above in NY Times!) Cut in exploration budget, mergers and focus on existing reserves cited as problems. BP claims that current reserves "are sufficient to support current global production levels of nearly 77 million barrels a day for the next 41 years.