... that we must not see this shale sale as the US Holy Grail, as at the end the American consumers may just spend more on Chinese goods. That said it will at least act as a cap on the US huge trade deficit with China.
Trouble Brewing – Do Not Boil
The energy renaissance of USA from one perspective will benefit its inhabitants and wider North American security, but such gains could also become inadvertently and indirectly undermined if the knock-on effects are too severe. For instance, the Middle East relies heavily on exporting ...
... particular strategic value since independence, connected by pipelines to Western markets that do not pass through the territory controlled by the Russians, and would be an important channel of access for advanced economies and energy consumers to the oil-rich Central Asian republics”
[1]
.The US has strong economic, political and strategic interests in Azerbaijan, because of its energy resources and geostrategic position,which puts it right in the neighbourhood of two important Eurasian players,...
... forcing firms like Shell to only enter the Arctic if they bring their best equipment and know-how. As the Arctic is absent of infrastructure and there is no stationed tools in the case of an accident, so a major cannot just try to redirect from nearby. USA has demanded that capping-stacks are always available if drilling as well as oil well replacement parts and special collector vessels that can quickly sweep up spills if they do occur. In 2012 drilling was postponed as Shell did not have such vessels in the vicinity, as the risk of oil hitting ice is unthinkable – purely ...
... look for solutions. RD: Could you give a specific example to illustrate why we need to harmonize environmental legislation? A.Z.: Well, the U.S. and Canada have very, very strict environmental restrictions. which also now include the lessons from the oil spill in the Gulf of Mexico. If the same incident happens in the Arctic, the consequences will be much more disastrous not only for coastal states, but also for the entire Arctic. And these nations have introduced such high requirements for any offshore ...
... Islands (Raine, 2011), it cannot do so all over. The Strait of Hormuz will just take the place as the next dilemma. Joseph Braml of the German Council on Foreign Relations said the basis why USA’s 5th fleet is staying in the Middle East (even though oil shale may make USA independent from the area) is because it allows the Chinese energy tap to be shut off if needed (Spiegel, 2013). So in all China will need to play its pieces in advance, but some moves may well be forced upon it.
In the discussion above we have ...
... as it is in fact a double-edge sword, if it prices oil too highly by lowering production [which is not instantaneous, as markets must firstly adjust], it also leads to alternatives being more appealing. It would be wrong to suggest that emergence of USA shale oil boom was due to Saudi Arabia/OPEC pricing policy, as it was more to do with speculation, but still, as prices increased to all time highs US local producers decided to jump on the bandwagon. I doubt that the US will be able to overtake Saudi Arabia ...
... have more than tripled since the start of 2000s. To a great degree the increase of costs is tied to the exhaustion of conventional oil resources or those that are easily recovered. Now about 15 mb/d have a commercial production cost of over $70/bbl. In USA, shale oil projects on average need $80/bbl to become profitable. As we are moving towards more expensive basins costs will continue to rise, even from now till 2025 72% of increase in supply will be attributed to hi-tech production methods and unconventional ...
... competitiveness of Russian gas and oil – for instance, the taxation system needs a lot of attention as it is a very heavy burden on the energy industry. The current tax burden of 73% per barrel is unlikely to increase, but it is very high, in contrast the USA's 44% out of each barrel sold. In the UK a dual system exist with a portion of tax going to old oil/gas wells to maintain their production levels which seems very rational and perhaps a case to look into, but vitally this cumulative tax rate is still a lot less than in Russia at around 60%. The problem for Russia is that the oil and gas industry ...
... for this crisis? Perhaps, is it a virtue of the capitalist system, its agents, or other factors?
The continuous eurozone turmoil provides a microcosm for the wider global economy. It has variously been described as a financial or a fiscal crisis, caused ... ... cheap money. This, coupled with low interest rates across the whole eurozone, fuelled credit and real estate bubbles in the USA and Europe, which burst in 2008-9 amid the global ‘credit crunch’.
At first, this led to a pan-European banking ...
... to the heavily LNG focused Asian states. But still, Gazprom made good progress by shifting 9% of Japanese LNG and 7% of its oil in 2011 to Asia. Vladivostok LNG terminal, due for launch in 2017, will increase capacity matching the rising demand, particularly ... ... gas needs. Perhaps, in the perfect world, where the last delegate to DPRK is not Denis Rodman and it does not want to destroy USA, both South and North could cooperate in all fields, including energy matters.
At a junction – ES-2030:
ES-2030 ...
