India is expected to account for 30-40% of overall demand growth for energy in the next two decades. India’s crude oil demand alone is expected to increase from about 4.4 million barrels per day in 2016 to about 9.7 million by 2040. A key driver of this demand is the projected five-fold increase in the number of cars in India.

OPEC and its crude oil-exporter allies have concluded that the world oil supply glut is dissipating at a faster pace than previously anticipated.  After about four years of surplus, they expect the global oil market to rebalance in the second or third quarter of this year. This conclusion is based on signals of tighter supply, including Brent crude briefly surging above $70 a barrel and oil stockpiles in developed nations falling by the most in six years. OECD inventories are now just 74 million barrels above the five-year average recorded in January 2017, according to a report by Reuters. When the output reduction deal went into effect at the beginning of last year, inventories were 340 million barrels above the benchmark. However, there is still the fear that when the production cut agreement ends later this year we could see a return to an all-out pumping that would crash oil prices once again — particularly in a year in which the US might be adding upwards of 1 million barrels per day of new supply.

The Energy Information Administration is now saying US crude oil production could top 11 million barrels per day by the end of 2018, a year earlier than it had expected just a month ago.

The US Energy Information Administration projects US shale oil production to increase through the early 2040s, when it will surpass 8.2 million barrels per day and account for nearly 70%of total US oil production. Shale oil production made up 54% of the US total last year.

Venezuela’s government has launched the world’s first sovereign cryptocurrency, the “petro”, to help its collapsing economy. The government is trying to sell $2.3 billion worth of the new form of money. Theoretically, the petro is backed by Venezuela’s reserves of precious metals and crude oil; however, the petro does not give investors any ownership stake in Venezuelan oil. Most economists say the petro won’t solve Venezuela’s many problems, including food shortages, plummeting oil production, and a mass exodus of its population.

Norway’s $1 trillion sovereign wealth fund, the world’s largest, will avoid investments in energy sources such as coal that are unlikely to be needed in a future low-carbon economy.

Production from Norway’s Johan Sverdrup crude oil field in the North Sea is due to begin in 2019 and by 2022 is expected to reach a total capacity to 660,000 barrels per day.

Russia’s oil production in the Arctic will reach peak levels in the 2020s, according to the head of the state commission on natural resources Igor Shpurov. By 2026 production could be 122 million tons a year.

Natural gas exploration of the coast of Cyprus in the Mediterranean Sea has been put on hold after Italy’s Eni faced a standoff with Turkish military vessels in the area. A diplomatic solution to the dispute is being sought. The confrontation comes after Eni and its partner Total made a major gas find offshore Cyprus with the Calypso well. This reignited tensions with Turkey that believes its citizens in northern Cyprus have an equal right to the island’s offshore resources. In the past several years vast fields of natural gas have been found in the eastern Mediterranean off the coasts of Egypt and Israel.

Presently the Panama Canal can handle only one liquefied natural gas (LNG) tanker a day. In October this will be increased to two LNG carriers a day. The Canal could be a bottleneck as the global demand for LNG heats up, especially from Asia.

The amount of digital information that needs to be produced and then shared in real-time for self driving vehicles turns out to be enormous. Hi tech company Intel says vehicles will generate and consume, and in some cases transmit, some 40 terabytes of data for every eight hours of driving. Cameras alone will generate 20 to 40 megabytes per second, and the radar will generate between 10 and 100 kilobytes per second.  Each car driving on the road will generate about as much data as 3,000 people currently do.












with h/t Tom Whipple

Tags: , , , , , , , , , , , , ,

Leave a Reply