This past quarter was another tough one for the US economy. Industrial production sank to a record low in March below 70% of capacity. The resulting lower demand for fuels is sending storage levels toward record highs. The EIA reported this morning that natural gas rose another (more…)
Posts Tagged ‘prices’
Recession Demand Sends Fuel Inventories Toward Record Highs
Thursday, April 16th, 2009Solar Prices Creep Lower in April
Monday, April 6th, 2009
Solarbuzz.com reported that solar prices dropped again in April. In Europe, prices reached a new record low at 4.54 euros per watt (though only 1 euro cent below last month). In the US, prices fell 4 cents (.8%) to $4.74 per watt. These changes translate into a price per kWh of (more…)
Natural Gas Rig Count Continues Nosedive
Friday, March 27th, 2009
Baker Hughes reported today that the number of active natural gas rigs is now half the peak level hit last September. That’s right – in just 6 months US companies have gone from actively trying to increase production (taking advantage of high US natural gas prices above $10 per MMBtu) to not even having the rigs to maintain (more…)
Natural Gas Supplies Remain High, For Now
Friday, March 13th, 2009Yesterday’s EIA natural gas storage report showed ample supplies continuing through March. Inventories are 13.3% higher than average for this time of year and almost 20% higher than last year. But the rig count makes many analysts think prices will rise in the second half of the year unless economic collapse sends demand even further down. (more…)
Natural Gas Storage Climbs Even Higher Versus Last Year
Thursday, February 26th, 2009Today’s weekly US Energy Information Agency (EIA) natural gas report showed that US storage fell only 101 billion cubic feet (bcf) (which is 30% below normal). This builds on the high inventory levels I talked about last week to an even higher level of (more…)
First Solar Breaks $1 per Watt Cost Barrier!
Tuesday, February 24th, 2009
The US-based, thin-film solar company, First Solar, just became the first solar company to lower its costs per watt below $1. After starting out with typical costs ~$3 per watt back in 2004, the company has achieved economies of scale and other advances to lower their costs more than 67%. Their production capacity has expanded rapidly to more than (more…)
Another source of non-OPEC oil output growth disappears
Friday, February 20th, 2009
As I’ve said many times, the crucial role Russia played since the late 1990s as the main growth driver for non-OPEC oil production will be sorely missed. But the US Energy Information Agency (EIA) forecast three countries would step up in 2009 to reverse the 2008 fall in production: the US, Brazil, and Azerbaijan. Now one of these countries says their 2009 output will be flat. (more…)
Oil in Mexico: Where is it headed?
Monday, January 26th, 2009
As I have reported many times these past few months, Mexican oil production has been declining rapidly. Last year’s full numbers were just released, and the country produced ~9% less oil in 2008 than the year before, even though prices hit their highest ever. But there was an interesting trend at the end of last year that could determine whether their exports will fall to zero by the end of Obama’s first term. (more…)
More Recession News, More Oil Price Drops
Monday, November 17th, 2008
A new report today confirmed that Japan is in recession. And one of China’s leading oil companies, CNPC, says demand has fallen sharply. These declines in demand out-muscled the news of pirates taking a Saudi Arabian supertanker off Kenya coast to send prices to their lowest level since January 2007 at ~$55 per barrel. (more…)
Alarming Trend of Lower Oil Production Continues
Tuesday, October 7th, 2008Ever since 2004, the non-OPEC world has struggled to increase its oil production from a plateau around 50 million barrels per day. Today’s EIA Short-Term Energy Outlook (STEO) now projects that 2008 non-OPEC production will actually decrease by more than 200,000 barrels per day. As I have been stressing in recent blogs, the EIA has been constantly lowering its non-OPEC production predictions throughout the year. As recently as February, they thought non-OPEC producers would supply 900,000 barrels per day more in 2008. Their current prediction couldn’t be too far off now that (more…)