US Oil and Gas Exports: Crushing The U.S. Energy Export Dream - by Arthur Berman

Exporting crude oil and natural gas from the United States are among the dumbest energy ideas of all time.
Exporting gas is dumb. Exporting oil is dumber.

The U.S. imports almost half of the crude oil that we use. We import 7.5 million barrels per day. The chart below shows the EIA prediction that production will slowly fall and imports will rise after 2016.

In other words, the U.S. is a fairly minor player among the family of major oil-producing nations. For all the fanfare about the U.S. surpassing Saudi Arabia in production of crude oil, we are not even players in reserves.

What that means is that we may temporarily pass Saudi Arabia in production because it chooses to restrict full capacity, and U.S. production will fade decades before Saudi Arabia's production begins to decline.

Read more: Crushing The U.S. Energy Export Dream

Oil Supplies: No relief in sight as oil hits five-year low - by Jeffrey Jones

Crude oil skidded to a 5 1/2-year low as the Organization of Petroleum Exporting Countries showed no sign it would step in to rescue prices that have dropped to levels forcing deep spending cuts throughout the oil industry.

In Canada, energy companies that have recently reduced their 2015 capital expenditure budgets by double-digit percentages will likely have to claw back spending again if prices remain in the current range for much longer.

Crude prices began the day in positive territory against a backdrop of supply disruption due to violence in Libya, but market fears resurfaced that crude is still too plentiful as the outlook for demand weakens.

U.S. benchmark West Texas Intermediate oil fell $1.12 (U.S.) to settle at $53.61 a barrel, its lowest since May, 2009. U.S. crude has lost roughly half its value since June, and some analysts see little meaningful recovery in prices until the second half of 2015.

Read more: No relief in sight as oil hits five-year low - The Globe and Mail

North Sea Oil Exploration: Falling oil price could hit planned North Sea projects, analyst warns - by Magnus Gardham

Major new North Sea oil projects could be shelved as a result of plummeting prices, a leading industry analyst has warned.

James Webb, of global energy consultants Wood Mackenzie, said 32 untapped fields in the North Sea and across Europe were at risk if prices stayed below 80 dollars per barrel.

The benchmark price of Brent crude settled at 62 dollars per barrel at the end of last week, down 45 per cent since June.

Nearly three quarters of the new fields require a price of 60 dollars per barrel if oil companies are just to break even, Mr Webb said.

He added: "Major projects and investment in the UK and across continental and Mediterranean Europe could be at risk if prices stay below 80 dollars per barrel."

The 32 projects he identified are awaiting the green light on investment that would total €69 billion.

Read more: Falling oil price could hit planned North Sea projects, analyst warns | Herald Scotland

EU-Economy: Falling Oil Prices Could Add € 63bn to EU Economy and damage Russian energy based economy

Falling oil prices could result in a saving of up to € 63 ($80bn £50bn,) for the European Union, delivering a welcome boon to the floundering economic bloc.

Research from Reuters shows that oil prices have fallen to below $85 per barrel for the first time since June 2010. The figures show that the EU forked out some $500bn on oil, natural gas and thermal coal imports in 2013 and that around 75% of that figure was spent on oil.

If the low prices hold, it could result in a saving of $25bn this year and $80bn in 2015, compared to 2013's outgoings.

While the EU – which produces little of its own fuel – would benefit from the falling prices, the likes of Russia, Iran and Saudi Arabia are set to suffer as a result.

The Economist reports that the oil price breakeven level is $90 per barrel for Libya, Russia and Saudi Arabia – three economies which are heavily reliant on oil exports.

Russia is already in line to suffer from worsening relations with the EU, which imports a huge amount of its crude. Even after negotiating large energy deals with China this year, a fall in price of such scale could have a dramatic effect on an industry which provides 45% of its GDP.

Read more: Falling Oil Prices Could Add $80bn to EU Economy