Saudi Arabia “Takes the Gloves Off”: moment of truth arrives for US shale.

November 28, 2014 Gas, Oil 

Mark Lewis for Kepler Cheuvreux (no url): “Despite the dramatic recent fall in oil prices, OPEC decided yesterday to maintain its current production quota of 30mbd, thereby compounding market fears of a short-term supply glut and prompting a further sharp drop in the Brent and WTI benchmarks (both down 6.3% on the day to $72.8/bbl and $69/bbl respectively).”
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“OPEC Faces Off Against Shale: Who Blinks as Price Slides Toward $70?”

November 28, 2014 Gas, Oil 

Bloomberg: “OPEC’s decision to cede no ground to rival producers underscored the price war in the crude market and the challenge to U.S. shale drillers.”
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“Market rout as oil slide rocks energy groups”: FT.

November 28, 2014 Gas, Oil 

FT: “Shares in the world’s biggest energy groups have tumbled in a market rout as plunging oil prices put at risk billions of dollars of investment and jeopardised future supplies of crude.”
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61 US shale drillers owing $199 bn should fear lessons of 1986.

November 26, 2014 Gas, Oil 

Bloomberg: “The last time that U.S. oil drillers got caught up in a price war orchestrated by Saudi Arabia, it ended badly for the Americans.”
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“Shale jubilation fades as oil price falls undercut model”: FT.

November 23, 2014 Gas, Oil 

FT: ‘The revolution devours its children.’ That observation, made by French journalist Jacques Mallet du Pan in 1793, has become a commonplace of political upheavals, but it is often true of revolutions in business, too. Companies that create a new market or disrupt an existing one do not always benefit in the long run.”
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UK oil and gas industry pleads for Treasury help with low oil price.

November 23, 2014 Oil 

FT: “Oil companies want George Osborne to make good his promise of tax reforms to encourage more investment in the North Sea or risk a collapse of the sector.”
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“US oil producers can’t kick drilling habit.”

November 21, 2014 Gas, Oil 

John Dizard for the FT: “You would think, what with the recent oil price crash, the people who finance US oil and gas producers would have learnt their lesson. But not yet.”
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“Oil price slump to trigger new US debt default crisis as Opec waits.”

November 14, 2014 Finance, Gas, Oil 

Telegraph: “Remember the global financial crisis, triggered six years ago when billions of dollars of dodgy loans – doled out by banks to subprime borrowers and then resold numerous times on international debt markets – began to unravel and default?”
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IEA warns oil-price “rout” will deepen, pressure increase on OPEC, Russia.

November 14, 2014 Oil 

Bloomberg: “Oil prices could slide from a four-year low in the coming months as the market enters a period of weaker demand, increasing pressure on OPEC to reduce production, the International Energy Agency said.”
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Breathing space from non-OPEC oil output is “illusory”.

November 13, 2014 Clean Energy, Climate, Gas, Oil 

Mark Lewis for Kepler Cheuvreux (no url): “The IEA yesterday released its 2014 World Energy Outlook (WEO), the annual benchmark reference document for energy-market practitioners.”
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Falling oil price threatens junk energy bonds

November 10, 2014 Finance, Gas, Oil 

FT: “A sharp drop in energy bond prices has pushed yields to their highest level in more than one year, casting a shadow on the outlook for the broad US junk bond market and highlighting the risks to investors who flocked to the debt in recent years.”
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“Shale drillers idle rigs from Texas to Utah amid oil rout.”

November 8, 2014 Gas, Oil 

Bloomberg: “The shale-oil drilling boom in the U.S. is showing early signs of cracking. Rigs targeting oil sank by 14 to 1,568 this week, the lowest since Aug. 22, Baker Hughes Inc. (BHI) said yesterday. The Eagle Ford shale formation in south Texaslost the most, dropping nine to 197. The nation’s oil rig count is down from a peak of 1,609 on Oct. 10.”
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Opec weakness at low oil price means US shale drillers “might win”.

November 6, 2014 Gas, Oil 

Bloomberg: “Here’s why the U.S. shale upstarts just might win a confrontation with Saudi Arabia as oil sinks: While the Arab nation is as flush with cash as ever, the finances of some fellow OPEC members are deteriorating quickly.”
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As oil plunges…why it might be ‘game over’ for the fracking boom.

November 5, 2014 Gas, Oil 

Christopher Helman for Forbes: “The price of oil fell some more on Tuesday, down as low as $75.84 before closing at $77 a barrel. The decline is blamed on Saudi Arabia cutting prices rather than cutting output amid signs of global glut. That’s discouraging to America’s highly leveraged drillers, who had been hoping beyond hope that $80 would act as a floor on prices.”
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90% of undeveloped tar sands barrels at risk from eroding oil price.

November 4, 2014 Oil 

Carbon Tracker press release: “Investors in Canadian oil sands are at a heightened risk of companies wasting $271 billion of capital on projects in the next decade that need high oil prices of more than $95 a barrel to give a decent return, the Carbon Tracker Initiative (CTI) revealed today.”
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Norway’s Arctic oil ambitions threatened by oil price-slump.

October 23, 2014 Gas, Oil 

Bloomberg: “Norway’s push to exploit Arctic waters for oil, already denounced by environmentalists, is now under threat from the slump in crude prices.”
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$80 oil muffles forecasts for U.S. shale boom.

October 21, 2014 Gas, Oil 

Bloomberg: The bear market in oil has analysts reassessing the U.S. shale boom after five years of historic growth. The U.S. benchmark price dropped to $79.78 a barrel on Oct. 16, the lowest since June 2012.”
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Low oil prices: recession in Russia, revolt in Venezuela?

October 16, 2014 Finance, Oil 

Guardian: “The sudden slump in oil prices, which have fallen 15% in the past three months, has sent tremors through the capitals of the world’s great oil powers, many of whom could face testing budget crunches if the tendency persists.”
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“Has Saudi Arabia lost control of the oil market?”

October 16, 2014 Oil 

Nick Butler on the FT: “Conspiracy theories abound around the oil price fall. A 25 per cent drop in less than three months is certainly exceptional and the assumption is that in a politically driven market a political decision by someone, somewhere must have forced prices down.”
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Slowdown and Ebola fears push down stock markets and price of oil.

October 16, 2014 Finance, Oil 

Guardian: “Fears of a worldwide economic slowdown and anxiety about the spread of Ebola reverberated around stock markets Wednesday, driving shares around the world sharply down and pushing the price of oil to a four-year low.”
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  • The Winning of The Carbon War

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