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Increase in US rig count will not cap oil prices

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The impact of rising oil prices on North American light tight oil (LTO) production is said to be a “Catch 22”, the title of Joseph Heller’s popular 1961 novel set in WWII. Too many analysts continue to believe drilling and service has the same problem with rising oil prices. by David Yager for Oilprice.com.

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EIA: world energy consumption to grow 56% 2010-2040, CO2 up 46%; use of liquid fuels in transportation up 38%

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World energy consumption by fuel type, 2010-2040. The US Energy Information Administration’s (EIA’s) International Energy Outlook 2013 (IEO2013) projects that world energy consumption will grow by 56% between 2010 and 2040, from 524 quadrillion British thermal units (Btu) to 820 quadrillion Btu. Source: IEO2013.

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Worldwatch Institute report finds global energy intensity increased in 2010 for second year in a row

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Global energy intensity, 1981-2010. Global energy intensity—defined as total energy consumption divided by gross world product—increased 1.35% in 2010, the second year of increases in the context of a broader trend of decline over the last 30 years, according to a new Vital Signs Online article from the Worldwatch Institute.

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Opinion: Here’s what will send oil prices back up again

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Those claiming that oil will continue to fall from here and remain low for evermore, however, are flying in the face of both history and common sense. The question we should be asking ourselves is not if oil prices will recover, but when they will. We must also consider demand, and that has been increasing too.

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Global biofuels production up 17% in 2010 to hit all-time high of 105 billion liters

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World ethanol and biodiesel production, 1975-2010. Global production of biofuels increased 17% in 2010 to reach an all-time high of 105 billion liters (28 billion gallons US), up from 90 billion liters (24 billion gallons US) in 2009. Source: Worldwatch Institute. Click to enlarge. billion liters abroad, a 300% increase over 2009.

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MIT/UC Davis professors challenge claims that ethanol production decreased gasoline prices in 2010 and 2011

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Knittel/Smith results for implied gasoline price effects from elimination of ethanol for 2010 using Du/Hayes model and pooled-sample estimates. in 2010 and 2011, respectively. in 2010 and 2011, respectively. Results from Du/Hayes are indicated by the large square. Source: Knittel and Smith (2012). Click to enlarge.

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EIA projects world liquid fuels use to rise 38% by 2040, driven by growth in Asia and Middle East; transportation 92% of demand

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Liquid fuels production (OPEC crude and lease condensate, non-OPEC crude and lease condensate, and other) and consumption (by OECD and non-OECD regions) under three price cases in 2040. Dashed red line shows 2010 consumption of 87 MMbbl/d. OPEC oil producers are the largest source of additional liquid fuel supply between 2010 and 2040.

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