Category: Energy

Oil Exacerbates Sub-Saharan Africa’s Currency Woes

Since lower oil prices typically result in depreciation of the oil exporters’ currencies, the dramatic plunge of oil prices has severe implications for sub-Saharan Africa.

After the global financial crisis, many emerging economies have coped with diminished global growth prospects by deploying direct government intervention and capital controls for competitive devaluation. In turn, advanced economies have achieved the same indirectly through low policy rates and quantitative easing (QE).

Not Everyone is Bailing on the Arctic

After billions of dollars invested over several years, Royal Dutch Shell said September 28 it would end oil exploration offshore Alaska after “disappointing” results.

However, industry efforts to drill for oil and natural gas in the Arctic are unlikely to end with Shell’s decision to abandon the Chukchi Sea.

Oil Price Volatility as the New Normal?

On September 10 the EIA reported a production decline in the Lower 48—essentially shale production—of 208,000 BOPD. That is a staggeringly enormous number, approximately 10 percent of the estimated global over-supply. Additionally, it was a week-over-week number, which makes it all the more impressive. Yet it received little attention through the week. Rather, Goldman Sachs was grabbing all the headlines with its $20 call on oil.

Carbon Trading Initiative Consequences

In recent years, there has been significant movement toward land acquisition in developing countries to establish forestry plantations for offsetting carbon pollution elsewhere in the world. Land grabbing is the common reference to this practice.

These carbon-trading initiatives work on the basis that forestry plantations absorb carbon dioxide and other polluting greenhouse gases. This helps to undo the environmental damage associated with modern western lifestyles.

Oil Takes the Path of Least Resistance

As traders, investors and pundits, we all like to think that what we do is akin to a science. We believe that by working harder and being smarter we can give ourselves an edge, that enough research will reveal to us the next move, either a long-term trend or an intraday blip on a chart, and that we can profit from that knowledge. Usually, especially over longer time spans, we are correct in that assumption. Sometimes, however, no amount of fundamental or technical analysis will help.

Do Oil Sands Have to be Dirty?

After decades of exhaustive attempts to overcome the dirty reputation of oil sands, we finally have an environmentally-friendly and low cost method to tap into these vast resources in the state of Utah—good news both for Mother Nature and all oil and gas investors.

Perhaps Japan’s Abe Should Fire Off Another Arrow?

On 11 August, the Japanese government went along with its plan to revive nuclear energy after the Fukushima disaster by restarting one of the Sendai nuclear power plants. Prime Minister Shinzo Abe insists that Japan cannot thrive without nuclear energy because oil and gas imports put a costly burden on the Japanese economy.