By A-J Editorial Board
The full article is here-> http://lubbockonline.com/filed-online/2016-04-28/our-view-limiting-oil-imports-would-help-protect-american-producers#.Vyf6UPkrLIU
“When the price of oil drops, so does the cost of gasoline. But while people are enjoying paying lower prices at gasoline pumps, plunges in oil prices can cause economic damage in Texas.
And it can put American oil producers out of business when the price of foreign oil imports gets cheaper than the costs of extracting oil from the ground in the U.S.
Oil producers in the Panhandle recently announced the Panhandle Import Reduction Initiative. Their hope is to limit the amount of oil that can be imported from other countries.
We wish them success in getting sympathetic ears to hear their initiative and gathering like-minded people to help further it.
They are right that a limitation should be set on the amount of oil imports from the Organization of Petroleum Exporting Countries.
Representatives of OPEC’s 18 nations recently met in Doha, Qatar. Among their topics of discussion was whether to freeze oil production levels.
The nations didn’t reach an agreement on the subject.
“OPEC and Russia and various countries met and decided they weren’t going to freeze oil and, in fact, OPEC said they will increase production again. This will drive the price down to $26 (a barrel) again,” said oil producer Tom Cambridge.”
Apr. 19, 2016 6:40 PM EDT
ALBUQUERQUE, N.M. (AP) — Oil drilling companies and royalty owners from the Texas Panhandle to New Mexico’s stretch of the Permian Basin are embarking on a grass-roots campaign to limit foreign oil imports, salvaging what they say is a major sector of the U.S. economy.
“American oil is competing against a cartel of government operators which has a stated initiative of driving an American industry out of business,” said Tom Cambridge, one of the Panhandle producers leading the campaign.
The grass-roots movement is pushing for the next president of the United States to issue a proclamation setting quotas for imports — something that hasn’t been done in more than four decades.
“It’s not that this is the first time but this is a more concerted, deliberate effort and I think it’s gaining ground,” said John Yates Jr., a member of a well-known family that is a leader in the industry and has over the last century developed some of New Mexico’s largest and most significant oilfields. The complete article is here-> http://www.bigstory.ap.org/article/74b8fac6517649d7a0ecac7fa55951ad/texas-new-mexico-oil-producers-push-import-limits
The complete article is here-> http://www.daily-times.com/story/money/industries/oil-gas/2016/03/05/energy-policy-expert-says-oil-slump-bust/81289608/
That’s the verdict from Daniel Fine, one of Gov. Susana Martinez’s senior advisers on energy policy. The U.S. oil and gas industry — and the San Juan Basin — is in a “bust” period, Fine said Tuesday at an inter-tribal energy conference at San Juan College’s School of Energy.
“This is what a bust is. You lose the workforce,” said Fine, who is associate director at New Mexico Center for Energy Policy at New Mexico Tech. “Loss to the country and to the Southwest will be the workforce. It will be decimated at levels of less than $30 a barrel (of crude oil).”
And 2015 was a year of layoffs and cutbacks.
Since the collapse of oil prices on the commodities market in fall of 2014, the number of workers laid off from local oil and gas companies — from the large corporations to the smaller independents — has been in the thousands.
“We’re in a ‘bust.’ So be ahead of the curve, and think ahead in this business by at least six months,” Fine told the Native American and non-tribal energy leaders and business people in the Merrion conference room at the new $15.8 million school.
He said looming federal regulations such as the the U.S. Bureau of Land Management’s proposed Onshore Oil and Gas Orders Nos. 3, 4 and 5 along with proposed updates to its rule aimed at reducing “fugitive” atmospheric methane from oil and gas operations were doubling the pain already caused by low crude oil prices. He said that a third of all U.S. oil and gas producers — especially those burdened with debt — will inevitably go bankrupt.
But Fine’s sobering analysis wasn’t without one ray of hope for the industry.”
The complete article is here (Please share!)-> http://www.daily-times.com/story/opinion/columnists/2016/01/24/fine-washington-dc-and-oil-and-gas-part-2/78875210/
Editors note: This is the conclusion of a two-part article by Daniel Fine. The first appeared on Dec. 28 in The Daily Times’ Energy magazine.
A measure lifting the crude oil export ban was approved by Congress in December. OPEC and Saudi Aramco entered the price war against American high-cost shale production in September 2014. This war has consisted of counter strike or retaliation options from the beginning.
Consequently, the congressional “deal” lowered the Brent and WPI price of oil by 6 percent in December. Advocates of lifting the crude oil ban were silent or indifferent. Where are they now?
At least 60,000 barrels were sold to a Swiss trading company by one of the advocate oil producers. We must wait for a first quarter report for details on the pricing and impact to cash flow. Simply put, was the money spent on studies and lobbyists profitable? Highly unlikely.
The year 2016 has opened with both Brent and WPI prices in virtual convergence at 2008 trading lows. OPEC does not expect recovery oil prices (2010-2014 levels) until 2040 which almost coincides with the Paris objectives of reducing fossil fuels. Meanwhile, the San Juan Basin is active with forced asset sales.
The big energy banks will face stress tests soon which explore price scenarios in relation to oil trading positions and loans to oil and gas producers. Smaller banks, the traditional source of small oil explorers and producers credit will face more severe determinations of debt.
The OPEC price war for market share continues. Some $200 billion of capital expenditure among the shale or light tight oil American producers has been lost. There is still weak demand, oversupply, and Chinese reset on buying commodities, including oil, leading from super-boom to deflation.
Will geopolitics revive prices? Yes, but only on episodic and short-term speculative thrusts in financial market trading.
The “deal” between the parties over the energy future of the United States and the San Juan Basin at the end of 2015 was the most misguided example of politics at the fuel pump since th…
Source: Fine: Washington, D.C., on oil and gas
The full article can be found here–> http://rdrnews.com/wordpress/blog/2015/11/28/oil-guru-fine-was-right-on-gas-prices/
Energy expert Dr. Daniel Fine, left, in March predicted the current low gasoline prices. Pictured with Fine during a meeting in Roswell in March are local oil men Rory McMinn of Reed & Stevens, center, and Bob Armstrong of Armstrong Energy Corp. (Jeff Tucker Photo)
An energy expert’s prediction in March that gasoline prices in New Mexico would dip to $1.65 a gallon has been proven true.
Dr. Daniel Fine, associate director of the New Mexico Center for Energy Policy at New Mexico Institute of Mining and Technology, said at a landmen’s association’s meeting in Roswell in March that gasoline prices in New Mexico would drop to as low as $1.60 a gallon this year as the United States and the Organization of Petroleum Exporting Countries engage in a crude oil price war.
Gasoline prices in Bernalillo County dipped to $1.64 a gallon this week at some stations, according to GasBuddy.com. Gasoline prices in Chaves County were as low as $1.80 a gallon this week at Sam’s Club in Roswell.
In March, Fine predicted gasoline prices in the Albuquerque market in 2015 would rise slightly to $2.35 a gallon before leveling off somewhere between $2.35 and $1.65 per gallon. He said in March that gasoline prices in Albuquerque could ultimately drop to as low as $1.60 a gallon.
“We made it to $1.60 and I have an outline of where we’ll be in 2016,” Fine told the Daily Record this week. “I’m getting calls to return to Roswell to do the next year.”
Fine said fuel prices in the United States are at their lowest levels since 1998, unadjusted for inflation. Fine attributed the low gasoline prices to soft market demand and excess supplies of crude oil.
The United States has more crude oil reserves than it has had since 1933, Fine said.
Fine said he’s not so sure crude oil prices will rise any time soon. He said there is a lot of anticipation about a Dec. 4 meeting of OPEC in Vienna, Austria.
“There’s a little excitement in the market about what the Saudi Arabian position might be on the 4th,” Fine said. “What’s reported out is some language about stability. So the speculators are buying oil today. But I am very skeptical that this will last.”
Fine, who has been critical of OPEC, said the oil cartel is creating an imbalance in the marketplace by over-producing while crude prices continue to drop.
Fine said many economists assumed Saudi Arabia’s state-owned oil producers would cut back production as crude oil prices plummeted, but he said that did no occur.
“From Thanksgiving (2014) on, we’re in this oil price war crisis,” Fine said.