In a lackluster economy, there hasn't been much from OPEC members to suggest there was any sort of revival, Graeber writes. But with seven of the 12 members of the cartel experiencing at least some form of upheaval, the cost of doing business suggests members may need more than a little bit of luck to return to glory.
Oil companies should no longer be valued by their reserves. New drilling technologies like fracking and horizontal drilling mean oil companies operate more like advanced manufacturers, which have much higher price-earnings ratios.
BP's largest new oil project in the Gulf, called Mad Dog Phase 2, sits atop a 4 billion barrel oil field. BP blames 'market conditions and industry inflation' for delay.
Members of the US House of Representatives last week proposed legislation that would open up more areas for oil drillers offshore, Graeber writes. Lawmakers say getting more work done in the Gulf of Mexico would ensure energy independence.
Oil demand has to do with how much oil we can afford, Tverberg writes, and many of the developed nations are not able to outbid the developing nations when it comes to the world’s limited oil supply.
BP will sell its US wind energy assets as part of a strategy to focus on oil and gas. It also forms part of the program to raise $38 billion from assets sales in order to cover the costs that BP is facing from the fallout of the 2010 Deepwater Horizon spill in the Gulf of Mexico, Peixe writes.
Venezuela's oil is too big for major energy companies to ignore and too risky to plunge into. Eventually, post-Chávez Venezuela will choose pragmatism over idealism.