Still, Oil Prices Will Remain High!

In a report published by The Street, unfortunately there won’t be much relief at the gas pumps. Moreover, we’ve been witnessing an array of opinions, papers and articles attacking the ideas that the gas and oil prices are affected by Obama’s recent plan on the Commodity Futures Trading Commission against speculation. Besides, Syria’s disorder is adding up to the chaos of oil prices across the world.

Moreover, because of nuclear negotiations with Iran, oil prices have soared up in the last couple of weeks. But there is hope that Iranians will give up their uranium enrichment programs and thereby put an end to tensions in the Middle East and the ever-increasing threats of a supply shortage.

And quite possibly, there has been any supply risk and the impending EU embargo of Iranian oil has caused the oil and gas prices soaring up and may continue to retain high.  

Over and above, Chinese PMI reports, growing Spanish bond and Greek’s political unease are all affecting global stock market and similarly fueling oil prices. 

Alongside, according to the report published in Reuters, Iranian President has claimed that they can withstand a boycott of Iranian oil exports for over 2 years if need be.

Contrary to this, defense minister of Israel expressed doubts that sanctions can be implied to Iranians to abandon their nuclear aspirations.
 

And most importantly, the ever-increasing global demands of oil will again boost up the oil prices high and this may give ultimate advantages to investors in oil and gas to stand a good chance of getting higher returns on higher prices across the globe.

So whether it’s about buying oil stocks or participating in drilling rigs, the higher prices of this liquid gold, although can’t ease the consumers but the investors!

Energy Consumption across the Whole World To Rise 56% by 2040 Led By Asia

According to EIA, ‘Because of the constant growth in developing countries such as India and China, energy consumption will be increased by 56% in the next three decades across the globe.’

By 2040, demands will soar up to 820 quadrillion British thermal units from existing 524 quadrillion and these two Asian countries have already been accounted for half the gain. Moreover, China which has noticeably used 3.4 % energy than the United States in 2010, is predicted to double US demand by 2040.

Source : Eia.gov

EIA administrator in the International Energy Outlook 2013 said, ‘‘upsurging properties in India and China is a major factor for huge energy demand worldwide. Similarly, this will have strong effects on the development of world energy markets.’’ Additionally, an array of opportunities in oil and gas industries is also predicated to be increasing than what is existing so far.

Consumption of petroleum and other fuels will also increase to 115 million barrels a day in 2040 from 87 millions in recent years. All the liquid fuels will be increased to 28% during those 2040.

Energy consumption of US will reach 107 quadrillion Btu and China will use almost the double- 220 quadrillion Btu by 2040. This is how US will be using 19 million barrels a day in 2040 and China will use 20 million barrels- double than what it’s consuming now.

The report by EIA as published in Bloomberg also made following predictions:

• Fossil fuels, containing natural gas, oil and coal will provide almost 80 % of world energy by 2040.
• Consumption of natural gas will increase up to 64 %, i.e 185 trillion cubic feet.
• Nuclear and renewable resources will soar up by 205 % a year.
• There will be 1.3% rise in coal consumption a year to 220 quadrillion Btu by 2040.
• Consequently, carbon dioxide emissions will be increasing to 46 % to 45 billion metric tons during 2040.

Top 10 States of the U.S Having Plentiful Oil Reserves

U.S. Energy Information Administration has defined the most oil-rich states in the country. All of these states possess majority of oil refined in the U.S every year. Texas, Louisiana, California and Oklahoma are the only regions who can produce 10 million barrels per day.

Due to such a high oil production, more number of jobs is also increasing in these regions. In addition, oil and gas industry workers are well paid. In all the oil-rich states, the median pay is even higher. So there are more numbers of oil and gas exploration companies in USA coming up every year and adding up to the economy of the countries. 

Top 10 oil-rich states of the U.S are as mentioned below: (according to the report by US Today)

1. Texas

According to EIA, Texas has the largest quantity of oil reserves. Between the year, 2010 and 2011, there were 32 new field discoveries. And recent reports also state that such discoveries are not going to slow down. Recently, there are 27 oil refineries existed in Texas regions.

2. Alaska

This is the least-populated state and has second-largest oil reserve of the US. There is approximately 11.9% of the workforce is employed by oil and gas industry. There are 6 oil refineries in this region and nearly 4 billion barrels of oil reserves available.

3. California

In 2013, economists from the University of Southern California carried out study which stated that California could give rise to more than 512,000 to 2.8 million jobs in the state. And possibly, during some years, it will surpass Texas in oil production. California has so far 16 oil refineries with over 3 billion barrels of oil reserves.

4. North Dakota

According to the EIA report, the oil reserves in North Dakota added up to by 46% in 2010. With such energy boom, this state is in greater demands for labor. However North Dakota reported as nation’s lowest unemployment rate, but with the increase in oil and gas projects, it’s gradually coping up with unemployment rates. There is 1 oil refinery and producing around 2,649 million barrels.

5. Oklahoma

Oklahoma generated 210,000 barrels oil per day in 2011, and its 5 refineries produce— 508,700 barrels a day which is completely more that twice production.

6. New Mexico

Oil production in New Mexico increased to 195,000 barrels a day. Its 3 refineries had capacity of producing 142,900 barrels per day, but only two were in service and their overall capability was condensed to 126,600 barrels per day in 2013.

7. Wyoming

During a year 2011, Wyoming produced 150,000 barrels of oil per day. Additionally, this state had the capacity to produce 165,500 barrels a day. The economy of this state largely depended on coal production but it also produced 9% of the state’s natural gas in 2011. Consequently, this state employs most of the workforce in energy industries in comparison with the other states on this list. Moreover, Wyoming is also home to some of the largest gas and oil fields. It has so far 6 oil refineries and it’s proved oil reserve was reported 660 million barrels.

8. Utah

In 2011 Utah accomplished a total of 26.27 million barrels of crude oil and about 72k barrels per day. The state’s 5 oil refineries produced 176,000 barrels a day. In this state, more than 15,553 civilians are employed in quarrying, mining and gas and oil industries, i.e 1.2% of the entire workforce.

9. Colorado

Colorado has so far less capacity to produce its oil resources. It has only 2 refineries and that can process around 103,000 barrels per day, which places this state on 25th rank in the U.S. Of the entire workforce in this state, approximately 6.7% of all jobs are the result of the gas and oil industry.

10. Louisiana

Louisiana holds 10th-most proved oil reserves in the U.S. It has 19 refineries that can process 3,273,020 barrels a day. Moreover this state is the second-largest employer across the U.S.