In its October 2012 Oil Market Report, the International Energy Agency cut its projections for global oil demand to 87.9 million barrels per day for the year. OPEC also issued an October oil report, which pointed to a sluggish global economy placing uncertainty on the energy market.
As a result, Brent crude has dropped while the WTI Cushing Spot has risen slightly. No one seems certain what the future holds for oil. [And Bakken oil is selling at a premium to WTI.]
Rising production capacity in the United States, a world leader in oil consumption, is turning established market dynamics on their head.
British Petroleum recently received permission from the United States government to ship U.S. crude to Canada. Royal Dutch Shell has also applied for an export license.
Non-OPEC oil supply is expected to increase by 600,000 barrels per day in 2012, and increase to 900,000 barrels per day in 2013. As U.S. imports of oil are expected to decline while exports increase, markets will experience growing pains.And this is all on-shore.
There was a moratorium on off-shore drilling in the Gulf back in 2010, and now the permitorium in the Gulf, in the Arctic, off Virginia, and off Alaska continues. This is all on-shore shale. It is incredible. Who wudda thought, that with all the regulations, all the obstacles, the US would be where it is? And CO2 emissions are at a 20-year low -- according to the NY Times.
There are so many story lines in this short story, but it's Friday night, NASCAR racing, so this will have to wait. [Link to NASCAR news; radio report; turn volume down.]
Haven't heard much about the Keystone XL 2.0 lately.
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