Houston USAEE/IAEE North American Conference Writeup
We are pleased to provide you with a detailed conference summary that outlines the contents of the 35th USAEE/IAEE North American conference, held in Houston, Texas in November 2017. Much thanks goes to Melanie Craxton, Seth Blumsack, and team for their hard work on this compilation.
U.S. Shale Oil is Plentiful and Competitive, New Research Suggests
The emergence of U.S. shale oil has expanded the global supply of oil. New research notes that the long-run impact of shale oil will depend on how much can be produced and how much it will cost. Few have good answers. In recent research, finance professor and energy expert James Smith of SMU Cox with co-author Thomas Lee determine what portion of known shale resources are economically viable at various price points and how many wells are likely to be drilled. Their paper, "The price elasticity of U.S. shale oil reserves," was recently published in Energy Economics.
An Interview with Adam Sieminski
In a Q&A session with Adam Sieminski, former head of the Energy Information Administration, the topics of current oil price projections, oil market volatility and emergent trends during his tenure are discussed. Guest writer Jennifer Warren spoke with Mr. Sieminski, now at the Center for Strategic and International Studies, on March 17th.
Drilling into the Data: Crude Production and "Manufacturing" Trends
U.S. oil production is ascending as futures prices reach the $55 per barrel mark, and this trajectory is expected to continue. In a case where higher U.S. oil production is projected, firms will have to keep sharpening their manufacturing processes and prowess. Some firms are doing just that.
Energy Policy in the U.S.: The Play of Conventional and Alternative Sources
Some indications of policy directions have been articulated by the Trump administration. However, the fundamentals of supply, demand, price and technological advances continue to push and pull the energy mix in the U.S. Guest writer Jennifer Warren speaks with Amy Jaffe of University of California-Davis about trends and policy directions.
Natural Gas on the Move
When it comes to natural gas, America’s energy profile can be characterized as resource-rich. From the Marcellus and Utica shale plays, large volumes of gas are flowing South to growing demand centers on the Gulf Coast. University of Maryland professor and gas expert Ben Schlesinger offers comments on natural gas trends and exports as well.
Oil Markets Mash-Up 2017: Part II
In a companion article, energy writer Jennifer Warren offers more color on the influences affecting oil markets in the year ahead, including upstream investment and economic growth outlooks. Past president James Smith comments about volatility and Saudi Arabia’s market share trap. Factors contributing to future oil demand are mentioned as well.
Reflecting on Oil Supply 2017: Part I
Questions about whether global oil supply will tighten are on the collective minds of numerous stakeholders in energy. Guest writer Jennifer Warren asks two USAEE members about their thoughts pertaining to OPEC and non-OPEC supply and pricing in 2017. OPEC’s dilemma may involve incompatible incentives, whereas U.S. shale faces the prospects of making every barrel count.
Tulsa USAEE/IAEE North American Conference Writeup
We are pleased to provide you with a detailed conference summary that outlines the contents of the 34th USAEE/IAEE North American conference, held in Tulsa, Oklahoma in October of 2016. Much thanks goes to Melanie Craxton for her hard work on this compilation.
The Future of Proven Oil Reserves
Recent estimates of U.S. oil reserves show a large increase due to shale oil potential. One interesting historical aspect of U.S. oil production though is the rise of lighter oils, such as natural gas liquids (NGLs) and liquid petroleum gas (LPGs) and the reduced amount of mid-weight grades of oil produced as a percentage of “oil” production. While this lightening up of oil does not appear to be a concern, it could lead to bottle necks in producing high octane gasoline and other fuels which generally have used mid-weight grades of crude oil as feedstock. This suggests that a peak in mid-weight grade crude oil production could cause a substantial productivity decline for the economy. Dr. Douglas Reynolds looks at this in comparison to other energy civilizations.
Deliveries – How
Rates and Bills will be
Stephen St Marie, Regulatory Analyst from the Policy and Planning Division, California Public Utilities Commission has produced a new article on water use. California water users have been so successful at cutting back on their water use that in the future, rates will have to be raised so that the appropriate revenue amounts can be raised. This is not a startling revelation, but one that needs to be well documented.
Pricing Commodities and Other Risks
Glenn Labhart, Dynegy’s former chief risk officer and chairman of the Energy Oversight Committee of the GARP’s Energy Risk Program (ERP)'s paper covers everything you need to know on price formation and associated market risks.