The Canadian Association of Petroleum Producers (CAPP) released the 2018 edition of its Crude Oil Forecast, Markets and Transportation report last month. It is a very useful report in some ways, but unfortunately the crude forecasts in these reports have long suffered from myopia.
July 16, 2018, 7:58 AM MDT
There is a damned good reason international benchmark crude prices have been rocketing higher since so-called OPEC+ — the 14 OPEC members and 10 non-OPEC countries restricting crude production since the beginning of 2017 — agreed to raise output on June 22: a potential supply crunch late this year or early next year due to yet another misguided policy by U.S. President Donald Trump.
July 3, 2018, 9:04 AM MDT
There may be more prominent targets in U.S. President Donald Trump’s multi-front trade war, such as China and the European Union, but Canada and Prime Minister Justin Trudeau have recently been the primary recipients of Trump administration vitriol.
June 25, 2018, 7 AM MDT
British Colombia’s Premier John Horgan, environmentalist-extraordinaire Tzeporah Berman, the other leaders of the anti-Trans Mountain expansion (TMX) movement and their minions have lost the pipeline war.
May 30, 2018, 7:36 AM MDT
There finally appears to be light at the end the tunnel for British Columbia’s fledgling LNG industry, and it’s not a bitumen-laden unit train.
May 28, 2018, 6 AM MDT
The goalposts for international crude prices appear to have moved yet again, with Reuters reporting in mid-April that Saudi Arabia is now targeting US$80/bbl-$100/bbl.
May 7, 2018, 8:48 AM MDT
It was an interesting weekend.
April 24, 2018, 7:59 AM MDT
The CEO of Kinder Morgan Steve Kean said investment in the Trans Mountain oil pipeline expansion project (TMX) “may be untenable for a private party to undertake” during his company’s first quarter earnings call on April 18.
April 20, 2018, 10:18 AM MDT
International benchmark crude prices played out basically as expected by Geopolitics Central (GPC) in the first quarter of the year, with a few interesting twists on the market fundamentals front and growing signs of ongoing Russia-OPEC co-operation encouraging us to maintain our current short-term outlook.
April 9, 2018, 6 AM MDT
When I’m wrong, I’m wrong.
March 22, 2018, 9:29 AM MDT
It’s time for the Alberta government to think outside the box.
March 12, 2018, 3:29 AM MDT
The Organization of the Oil Exporting Countries (OPEC) was born in a time of plenty, prospered over a period of real or perceived scarcity, and will likely die in the distant future as the world shifts away from high-carbon energy resources.
February 26, 2018, 3:47 AM MST
The pipeline war between Alberta and British Columbia is getting hot, and it will get a lot hotter in the next few years if Prime Minister Justin Trudeau pushes through expansion of Kinder Morgan Canada’s Trans Mountain pipeline. The legal and regulatory challenges B.C.’s New Democratic Party (NDP)-Green Party government is throwing up against Trans Mountain expansion (TMX) is only the first round of defence, and a relatively weak one at that.
February 9, 2018, 9:19 AM MST
A new Western Canadian oil pipeline pinch had been widely predicted for the fourth quarter of last year. The corresponding increase in regional oil price differentials was expected to be gradual and moderate, with Canadian National Railway (CN) and Canadian Pacific Railway (CP) coming to the rescue of oil shippers, just as they did earlier this decade.
February 5, 2018, 6 AM MST
As discussed in our last article — Politics to Continue to Drive Crude Prices Through 2019 — Geopolitics Central (GPC) is bullish on WTI crude prices through 2019 partly because we expect a significant rebound in politically-inspired oil production outages. Rising tensions between Saudi Arabia and Iran should provide a solid base of geopolitical uncertainty, but as of now we do not expect it to lead to a hot war and a massive supply disruption over this period. But there are many more potential sources of disruption to supply, albeit significantly less dramatic, the four most likely ones from our perspective are Iran (new economic sanctions), Libya (election-related violence), Nigeria (militancy in Niger Delta region), and Venezuela (end game).
January 22, 2018, 6 AM MST
The jump in international benchmark crude prices in the fourth quarter of last year surprised most oil forecasters. Here at Geopolitics Central (GPC), we expected spot West Texas Intermediate (WTI) to rebound, having previously predicted the price to average US$62.50/bbl this year (DOB, Oct. 11, 2017) — but failed to see the speed in which prices would increase.
January 8, 2018, 9:32 AM MST
People around these parts don't much like those who say peak oil demand is inevitable. Can’t say that I blame them. The theory ain’t good for business in the short term — although taking the appropriate actions now, assuming it is correct, could keep them from driving off a proverbial cliff in the more distant future. Funny thing, many of the people trying to debunk peak oil demand are the same ones who sold Peak Oil — on the supply side — like snake oil last decade. It's like these people just tell you folk what you want to hear, not what you need to hear.
December 20, 2017, 6 AM MST
It may be early days for development of the Duvernay shale in Alberta, but it is increasingly looking like the next liquids-rich formation to take off in North America.
December 11, 2017, 4:33 AM MST
Alberta needs to get its financial house in order.
November 27, 2017, 10:11 AM MST
China and India are expected to continue to drive global oil consumption higher in the longer term, according to major oil forecasting organizations such as the International Energy Agency (IEA), U.S. Energy Information Administration (EIA) and OPEC.
November 6, 2017, 8:08 AM MST
October 23, 2017, 7:49 AM MDT
Crude oil prices should surprise on the upside in 2018, after a decent rebound this year, despite major oil forecasting agencies such as the U.S. Energy Information Administration (EIA) projecting a weakening of market fundamentals. The Saudi royal family has painted the kingdom into a corner through a series of missteps, making it increasingly important that crude oil prices are fairly high next year to ensure a successful initial public offering (IPO) for family-owned Saudi Aramco.
October 11, 2017, 6 AM MDT
The future would certainly be bright for Mexico’s oil industry, after years of production decline, if not for politics. After a slow start Mexico’s energy reform is bearing fruit. Interest in the latest oil and gas licensing rounds has jumped significantly from the earlier ones despite continuing low oil prices. Major international oil companies (IOCs) have now won blocks in deepwater Gulf of Mexico, while a substantial new discovery has already been made in its shallow waters.
September 25, 2017, 6 AM MDT
Peak oil demand has been a hot topic in the past few years, just as Peak Oil from the supply side was a hot topic last decade. Energy economists wrote books exalting Peak Oil, and some of them even ended up being interviewed by the oh so hip Jon Stewart on The Daily Show. But, of course, they were dead wrong. They failed to take into account the role that technological advancement has played in economically opening new oil resource since the beginning of the Oil Age. They failed to foresee the Shale Revolution.
September 11, 2017, 7:28 AM MDT
President Donald Trump’s negative outlook for the North American Free Trade Agreement (NAFTA) as expressed during his Arizona rally on Tuesday should have come as no big shock. The U.S. had already thrown down the gauntlet on August 16, the first day of the first round of NAFTA renegotiations with Canada and Mexico. Robert Lighthizer, Trump’s top trade advisor, said the U.S. is not interested in “a mere tweaking” of the 23-year-old trade pact.
August 24, 2017, 12 AM MDT