CTRM Center

What Happened to Peak Oil?

About a decade ago, the peak oil concept was very popular. The argument went that oil was a finite resource and that the peak output level and decline was shortly to arrive as demand exceeded supply. A number of people even expanded on this basically accusing the Saudis of ‘lying’ about their reserves and painting a very dim picture of future supply/demand. At the time, I argued and wrote that this peak oil theory was simply nonsense as it neglected two very important things – economics and human ingenuity. On the former point, the peak of oil recovery will show a relationship to the price of oil and on the second, we humans have a habit of being opportunistic and inventive so that I expected new recovery methods and new plays to be found offsetting and delaying... continue reading

A Trip To London – An Emerging Technology Theme

Last week, both Patrick and I were in London. It was a busy week and we managed to visit a lot of people in the industry over the course of the week. One recurrent theme that we picked up was changing technology. Whether discussions about the impact of blockchain over lunch, or the impact of cloud on CTRM, each meeting seemed to have a strong technology theme to it. This even seemed echoed ion the OpenLink announcement of their cloud strategy. The industry is changing very quickly – perhaps too quickly. At a dinner we attended on Tuesday night, the discussion was all about technology but also about still needing to get some of the basics right. If I put data in, how do I get the... continue reading

OPEC oil cut extension renews Asia’s crude supply worries

The OPEC-led decision to extend a production cut to March 2018 disappointed financial investors, prompting an exit from oil futures markets, while refiners in Asia were mostly concerned with whether it meant they would need to go hunting for crude. In Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers on Thursday extended a pledge to cut 1.8 million barrels per day (bpd) of output until the end of the first quarter of 2018. Financial traders did not like what they heard, thinking it meant an ongoing oil glut. “The market voted with its feet”, investment bank Jefferies said, dragging crude futures CLc1 LCOc1 down 5 percent to near $50 a barrel. [O/R] In physical markets, however, where tankers can take weeks or... continue reading

U.S. crude inventories slump amid near record refining: EIA

By David Gaffen U.S. crude oil inventories fell for the seventh straight week as refiners processed a near record amount of crude last week, the Energy Information Administration said on Wednesday, even as gasoline and distillate stockpiles also dipped. Crude inventories fell 4.4 million barrels in the week ended May 19, more than analysts’ forecasts of a 2.4 million-barrels decline. At 516.3 million barrels, U.S. crude inventories were the smallest since mid-February, a sign that OPEC’s efforts to reduce world supply are starting to have an effect in the United States, the world’s largest oil consumer. The data comes one day before the Organization of the Petroleum Exporting Countries, along with non-member nations, are scheduled to decide whether to extend its agreement to cut world supply, an... continue reading