The US Energy Information Administration reported that US oil production peaked at 9.6 million barrels per day in April and  is expected to fall a million barrels to 8.6 million b/d by August 2016. OPEC is expected to maintain a high level of production so that global oil supply will remain unchanged at 96.5 million b/d this year and 97.3 b/d next as more Iranian oil will enter the market next year. Global oil prices are expected to average in the mid-$50 range next year. Current oil prices are in the mid-$40 range.

Gulf Arab oil ministers will meet this week to discuss ways to make crude oil prices rise. Russia has announced that it will not cooperate with the Arab nations by cutting back on its own production.

US waters in offshore Alaska are estimated to hold roughly 27 billion barrels of crude oil and 132 trillion cubic feet of natural gas, the vast majority of which is located in the Arctic. Experts believe that the Chukchi Sea in particular, which holds more resources than any other undeveloped U.S. energy basin, may represent one of the world’s largest sources of untapped oil and gas.

Job cuts in the global petroleum industry have reached nearly 200,000, according to Houston energy consultant, Graves & Co.,  as firms continue to announce more layoffs. Nearly half of the oil industry’s reductions over the past year have come from the oil field service industry, firms that provide oil and gas producers with drill bits, well casing, hydraulic fracturing pumps and other technology. The next wave of layoffs are expected to come from the crude oil producers.

The Indian Government approved a national offshore wind energy policy which may lead to a significant rise in the country’s wind electricity generation capacity. The policy is intended to promote and streamline the process of implementing offshore wind energy projects. The National Institute of Wind Energy recently upgraded the onshore wind energy potential of the country to 302 gigawatts (GW). The offshore wind energy potential is expected to be significantly high. As of mid-summer India had an installed wind energy capacity of 23.8 gigawatts which is targeted to be increased to 75 GW by 2022. (1 GW = 1 billion watts and is the electricity production of a typical nuclear reactor.)

The US state of California has abandoned plans to cut petroleum use by 50% by the year 2030. Opponents had warned that the mandate would result in higher fuel and electricity costs; the petroleum industry added that it could lead to fuel rationing and bans on sport utility vehicles. The state is expected to mandate that half of its energy come from renewable resources by 2030.

Honda Motor Co. has received a permit from the US state of California to drive its self-driving vehicles on public streets, joining 10 other companies  such as Tesla Motors Inc., Nissan Motor Co., BMW AG, Google Inc. and Volkswagen AG in testing the new technology.

Here is a chart from the European Union (EuroStat) that gives renewable energy production by type for each country in the EU.

 

with h/t Tom Whipple and Fred

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