A new wave of innovation is hitting the oil patch, allowing for a significant reduction in drilling costs. If efficiency gains continue at this pace, the US may weather the onslaught of Saudi oil much better than many expected.
Coal-burning power plants that capture carbon aren’t worth the expense.
The US oil rig count has plummeted since October 2014, falling from 1,609 down to 668 as of May 8. If oil companies oscillate between cutting back and adding more rigs as the price of oil bobs above and below the $60 mark, they won’t exactly be raking in the profits.
Unfortunately, as helpful as the energy sector was in buoying the U.S. during the Recession of 2008, the energy sector may now hold down the economic expansion just as the economy is starting to pick up steam.
Who will win the oil price battle, Saudi Arabia or US capitalism and shale producers? Probably both; US oil producers are taking unparalleled steps to lower their costs. By the same token, Saudi Arabia is the king of the oil markets for a reason – geologically it is essentially the perfect oil producer
Argentina holds the world's second largest shale gas and fourth largest shale oil reserves. Yet unlike the production boom unleashed by the shale revolution in the US, its vast shale plays have remained comparatively idle. Politics and economics are largely to blame.
With the huge reduction in its revenues and growing discomfort among its members such as Venezuela, Libya and Nigeria over its current production levels, is OPEC really getting weaker?
European Union member states have many differences in terms of their energy security and, in particular, in their degree of exposure to a possible disruption of gas supplies from Russia.
While volatility in oil markets will likely persist, prices are expected to remain soft over the next few years. The declining prices present a unique window of opportunity to reform inefficient fossil fuel subsidies everywhere, says a new World Bank estimate.
How vulnerable are the Gulf economies to low oil prices and how will they cope if the current slump continues?