With half of global crude oil production now going to emerging markets, there is a concern that drops in demand from these countries (eg. China) may soon be adding to the world oversupply problem.

The world is so awash with crude that oil traders are eyeing a potentially profitable opportunity by turning supertankers into temporary floating storage facilities at sea.

Kuwait plans to increase its crude oil production by 150,000 barrels a day by the third quarter of this year despite the current slump in oil prices. This suggests Kuwait is planning to stick to the OPEC strategy of increasing production to maintain market share.

With oil prices so low, IHS Inc. reports that a group of 44 North American oil companies plan to cut capital expenditures from $101 billion last year to $78 billion in 2016.

Shale oil production in the US increased from 2007 through April 2015, based on estimates in Energy Information Administration’s Drilling Productivity Report, and accounted for more than one-half of total US oil production in 2015. The CEO of Russia’s Rosneft, Igor Sechin, predicts US. shale oil production will peak by 2020 and will decline in the long-term. However, BP thinks US shale oil production will double from 4 million barrels per day to over 8 million during the next 20 years as drillers become more efficient.

Laggan Tormore, one of the last large North Sea projects, has begun pumping natural gas to the UK. French oil company Total said that the deep-water natural-gas project west of the Shetland Islands will add the equivalent of 8% of current UK oil and gas production.

Cuba has total undiscovered technically recoverable reserves of 4.6 billion barrels of crude oil, 9.8 trillion cubic feet of natural gas and 900 million barrels of natural gas liquids, based on 2004 estimates by the United States Geological Survey.

BP’s Energy Outlook 2035 states that electric power generation is expected to account for an ever-increasing share of primary energy consumption as the world continues on a long-term trend of electrification. The share coming from electricity will increase from 42% today to 47% by 2035 and, as a result, power generation will become an increasingly important driver of how the global fuel mix evolves. In 2035 coal will remain a dominant primary fuel, accounting for more than a third of the inputs to power generation, down form the 44% it holds today.

The Netherlands’ plans to rely on wood energy to produce electricity have been thrown into turmoil, with legislators fearing the program will waste money, hurt the environment, and prolong the lives of polluting coal power plants. The Dutch government had set aside $4 billion in subsidies to assist the owners of coal power plants to blend wood pellets in with their coal so as to meet the country’s 2020 carbon emission target. But last week Dutch parliamentarians voted to suspend the subsidies for wood energy until they are told when all of the nation’s coal power plants will be shut down. A majority of the parliamentarians would rather shut down the coal plants completely now than continue to operate them with subsidized wood. Wood is seen as causing more carbon emissions because it keeps the coal plants open while at the same time the cleared wood forests increase in release of C02 into the atmosphere, at least until new forests are in place. Following the vote, Holland’s economic affairs minister told parliamentarians he would publish the coal plant phase-out plan this fall.


with h/t Tom Whipple

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