Oil Production and Oil Demand

In the second quarter of this year, oil production exceeded demand by 3 million barrels a day. It seems that Saudi Arabia is choosing to defend its market share rather than reduce production and stiffen prices. It seems that excessive oil will continue to be produced for the next twelve months. Continue reading

Oil Price Falls and Falls

It is odd that the price of oil falls while economic activity is increasing marginally, while the cost of oil extraction increases and while fewer new oil fields are being discovered. In the case of commodities the price usually depend upon supply and demand, and the producers of the supply always (usually) try to keep the demand high by limited the supply. This is normal economic activity. Continue reading

How did ISIS Manage to Grow so Quickly?

I am not sure whether I should refer to them as the Islamic State or the Islamic State of Syria and Iraq or as IS or as ISIS because I do not know what they call themselves. They seem to have grown into what is a de facto state, controlling certain areas of Iraq and Syria. Under traditional rules of recognition the British Government (and many other governments) would have recognised them as a state once they controlled two thirds of the land that they claimed, but these days the international recognition of a state depends more on political convenience rather than practical rules. Continue reading

Be Prepared

“British Energy Policy” is a contradiction in terms. There has been no energy policy for at least twenty years, just a collection of ill thought out statements backed by political dogma which ignores the reality of what the United Kingdom needs for energy and how it can be done. It is likely that the next very cold winter that the United Kingdom experiences will see power cuts and gas shortages. Continue reading

Burning the Unburnable

The London School of Economics and NGO Carbon Tracker made the news when they found that fossil fuel exploration companies spent £440 billion in 2012 looking for oil, gas and coal. They postulated that if this continues for ten years (reasonably likely in my view) the oil gas and coal found could not be burnt if governments adhere to their fossil fuel emission targets (unlikely in my view). The study points out that if the level of global warming was restricted to three degrees as opposed to the present two degrees, much of the fossil fuel found would be unburnable because of the three degree global warming target.

This study does not show that investors in fossil fuel companies are being misled because they are putting their savings into businesses that will be forced to fail because of the world’s global warming targets; this study shows that investors know that governments of the world will not stick to their global warming targets. The short term chase for money takes precedence over everything on our planet, even our planet.

Burning billions

It seems that in the United Kingdom we are using less petrol and diesel fuel. I have not noticed the roads getting less busy (except during the Olympics when some roads were very quiet and others choked with traffic) but the figures show that half a billion litres more fuel was sold in the second quarter of 2012 than was sold in the first quarter of 2012. Continue reading

The Methane Leak at the Elgin Rig is Continuing

The first reaction by the government to the gas leak at theElginwell, off Moray inScotland, was that there was no significant environmental impact. Continue reading