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OPEC Says Its Oil Revenue Plunges $438 Billion to 10-Year Low
OPEC said its oil revenue plunged by $438 billion to a 10-year low last year, as an increase in export volumes failed to compensate for the collapse in prices. The Organization of Petroleum Exporting Countries earned $518.2 billion in 2015 from the sale of crude and refined fuels, the lowest figure since 2005, the group’s Vienna-based secretariat said in its Annual Statistical Bulletin. It boosted exports by 1.7 percent to 23.6 million barrels a day, maintaining its share of global markets, as Iraq increased output and Saudi Arabia pressed on with a policy to squeeze rivals. Oil futures tumbled by 35 percent last year as U.S. crude production held up despite the Saudi-led strategy to pressure OPEC’s competitors with lower prices. Crude has since recovered, rising almost 90 percent in London from the lows reached in January, as U.S. output retreats and disruptions from Canada to Nigeria help whittle […]
Saudi may return to market balancing role post recovery: energy minister
A gas flame is seen in the desert near the Khurais oilfield, about 160 km (99 miles) from Riyadh, in this June 23, 2008 file photo. Saudi Arabia, the world’s largest oil exporter, may return to its role of balancing oil supply and demand after the recovery of the global market, the country’s energy minister said on Wednesday. “Despite the surplus in global oil production and lower prices, the focus of attention remains on countries such as Saudi Arabia which, due to its strategic importance, will be expected to balance supply and demand once market conditions recover,” Energy Minister Khalid al-Falih was quoted as saying by state oil company Saudi Aramco. “The Kingdom’s oil policies are rooted in responsibility, and Saudi Arabia is seeking to maintain that balance while also giving heed to moderate prices for producers and consumers,” Falih said in the statement on Aramco’s website. He made […]
Google And Uber Threatening Car Industry Giants
Rarely has there been an industry as stable as the car industry. Except for design modifications, the basics of the automobile as a product haven’t changed in half a century. And while the Big 3 of Detroit did face new competition from overseas competitors, the structure of the industry has generally remained remarkably stable as well – at least until the last few years. Ever since the Great Recession, the car industry has changed more in a decade than it has in the last 70 years. Today almost every aspect of the car business is being rethought from the product itself to the business model. And that should make investors in the industry very nervous – change creates risk after all. Tesla is still a very small producer of cars, but their products appeal and Elon Musk’s marketing acumen are sufficiently powerful that every Tesla product gets […]
Venezuela’s worsening economic crisis – the Guardian briefing
Venezuela is suffering the worst economic crisis in its history. Ordinary people in the oil-rich country are regularly going without food. Three-quarter empty supermarkets are being ransacked by angry, hungry mobs . The government has declared a state of emergency, food is now being transported under armed guard, and basic necessities are being rationed. People have to queue for hours and sometimes overnight on their assigned days to receive staples like rice and cooking oil. By IMF figures , it has the world’s worst negative growth rate (-8%), and the worst inflation rate (482%). The unemployment rate is 17% but is expected to climb to near 30% in the coming few years. The shadow of hunger, the desperation of the crowds and the spread of unrest […]
Shell’s Ambitious Plan To Topple Exxon
Shell Rig Ben Van Beurden, Chief Executive Officer of Royal Dutch Shell has laid out an ambitious plan to overtake ExxonMobil as the number one oil company in the world. Prior to the 1990s, Shell was the leader in total shareholder returns, however, its rivals went on a deal-making spree to gain the lead, while Shell shied away from making any acquisitions. Now, Mr. Beurden believes that Shell will be able to regain its lost glory post the acquisition of the BG group. “I am determined to get us to that number one place,” Mr. Beurden said after outlining the company’s long-term strategy in London. “I want to create a world class investment case for Shell and our shareholders,” reports Bloomberg . Shell, with a market capitalization of $216.6 billion , has a lot of catching up to do if it wants to surpass Exxon’s market capitalization of $379.5 […]
