Refinery Acquisitions Reduce Saudi Risks, Increase U.S. Energy Security Risks

Robert Boslego - Contributor - Energies

A recent article noted that Saudi Arabia Is Buying Up America's Oil Assets. Saudi Aramco is buying U.S. refining and petrochemical assets as well as energy and technology companies through its Saudi Aramco Energy Ventures LLC fund.
Congress has recently received a Long-Term Strategic Review (LTSR) of the Strategic Petroleum Reserve. The SPR's mission is to protect the U.S. from severe petroleum interruptions. The LTSR was intended to identify the key challenges that could impact the ability of the SPR to accomplish its mission.

I submit that it ignores a key challenge, the foreign ownership of refineries and petrochemical plants, that could render the SPR crude supplies meaningless.

The existence of the SPR is a key factor determining oil prices because the market does not have to factor in large interruptions of crude supply into prices because it knows the government has the SPR and will use it. Continue reading "Refinery Acquisitions Reduce Saudi Risks, Increase U.S. Energy Security Risks"

Applying More Logic To Oil Prices

Adam Feik - Contributor - Energies

I wrote last week about applying some logic to the oil crash, which as of January 20th had taken prices below $27.

It seems like ever since the very day I wrote the article (January 20th), a lot more "logic" has seeped into energy markets, as oil has quickly rebounded to around $34 (I'm sure my article had something to do with that; ha ha).

Could things possibly be stabilizing somewhat?

I know oil prices can always be volatile, but surely the crash that's taken prices from $107 to $27 can't continue forever. So what's next? Continue reading "Applying More Logic To Oil Prices"

What's Next For Oil? Use Logic

Adam Feik - Contributor - Energies

All right. Now we've tried everything. And we still can't figure out when oil prices will finally turn around – or at least stabilize.

Experts' predictions are all over the map. Smart people – including analysts, industry executives, and entrepreneurs – are on both sides. Many predict even lower oil prices before the market steadies itself. Many others predict oil in the $40-60 range again as soon as the 2nd half of 2016. Both groups have applied rigorous study and analysis. Both have valid, compelling points.

Yet, the more I listen, the more confused I become. Meanwhile, oil prices continue falling like a knife. What's truly causing this massive, slow-moving train wreck from $107/barrel in June 2014 to $27/barrel 19 months later?


Recently, many pundits and experts seem to be speaking in a refreshing new language. It sounds a lot like logic and common sense. I've heard a ton of commentary lately that makes me go "hmm, that seems logical." Today I'll summarize a selection of these observations, and add a few musings of my own.

We've tried everything else. Let's try applying some logic to the situation. Continue reading "What's Next For Oil? Use Logic"

Would you take a $100 bet that gas prices exceed $4 again in 2015?

Adam Feik - Contributor - Energies

If only one could know – in advance – when oil prices would bottom… right?

Well, on Fox Business Network’s Varney & Co. Wednesday morning, a well-known expert informed us he expects gas prices to exceed $4 per gallon again by the end of the year. That’s right; in 2015!!!

“Care to put your money where your mouth is on that?” the show’s host, Stuart Varney asked, in essence (I’m paraphrasing).

Would you take the bet? The guest, former Shell Oil President John Hofmeister did! Varney, of course, eagerly and confidently took the other side.

The $100 bet

Here’s a link to the video, if you’d like to watch these 2 aspiring futurists making a $100 bet. Oh, and you’ll be able to hear Hofmeister’s logic as well (summarized later in this article for your convenience).

Mr. Hofmeister must feel pretty secure in the deal he reached with Mr. Varney, since Hofmeister appeared on CNBC the day prior, predicting (sans bet) $5/gallon gas by 2020, saying the world will need 100 barrels of oil by that time, and that “we don’t know how to get there yet.” Continue reading "Would you take a $100 bet that gas prices exceed $4 again in 2015?"