2011 November 18

The Master Resource Report  2011-11-18

Platts Energy Week Interview (page 1 )

IEA WEO 2011 (page 1 )

It is all about diesel (page 2 )

Opec forecast for oil (page 2 )

Railroads & oil (page 3 )

Biophysical Economics (page 3 )

Reader Survey

If you would like to share your opinions about this report there are still some response slots available. I will close the Master Resource Report Reader Survey (click here for survey) on Wednesday, November 23rd.

I would like to thank all of you that have taken the time to complete the survey. Yes, even the negative comments are appreciated.

Imagine if the global economy wasn’t in the doldrums?

“Brent oil prices have stayed above $100/b this year and 2011 is set to become the year with the highest average normal oil prices on record, at above $111/b, Ruhl said. Even adjusted for inflation, average oil prices in real terms are going to be the highest ever this year, except for in 1864, he said.” Platts

So if it feels like you are spending more on fuel than ever before it is because you are in real terms. Now just think what it will be when the global economy picks up steam again?

It is worth remembering the primary reason why oil today even during a soft economy is not cheap. It is getting just plain hard and expensive to extract. Just because a discovery is big it doesn’t mean it will be cheap or flow in abundance as the folks involved in Kashagan have learned and those working in the Bakken, Arctic and Brazilian deep water pre-salt need to remember.

Bloomberg: “After 11 years and $39 billion of investment, Exxon Mobil Corp., Royal Dutch Shell Plc (RDSA) and their partners have yet to sell a drop of oil from what was touted as the world’s biggest discovery in four decades. Centered on a man-made island 70 kilometers (44 miles) from Kazakhstan’s coast, the Kashagan project is just months away from completion, $15 billion over budget and 8 years behind schedule”


Jonathan Callahan has posted overviews of the ASPO-USA conference on the Oil Drum. Thanks Jonathan!!

Day 1 summary Day 2 summary

I would like to thank everyone who worked on and attended the conference this year. This is especially true for the crew from Terrachord, all the ASPO-USA Board Members and the participants on the two panels I moderated.

Time to pass the hat

Air traveler’s today complain about the checked bag fees which are simply a way of raising the ticket price. But very few have been asked to chip in directly for the fuel bill at the airport. The BBC reported that it finally happened on a flight from India. “Passengers said they were asked for the money when a flight with Austrian airline Comtel Air from Amritsar in India stopped in Vienna to refuel.”