China, United States move to stabilize crude oil markets

If OPEC forecast turns out to be correct, oil prices could go much higher

China, United States move to stabilize crude oil marketsA strong message is being sent to major global oil capitals: it’s time to cool down the markets. By urging the Organization of Petroleum Exporting Countries and their allies in OPEC+ to open taps – and endeavouring to impact the markets by selling crude oil from strategic reserves – the world’s major oil consumers are…

Oil and gas taxes play significant role in Canadian social programs

If the sector disappeared, taxes would have to be increased substantially to provide us with the services we have come to expect

Oil and gas taxes play significant role in Canadian social programsBy Mark Milke and Lennie Kaplan Canadian Energy Centre Between 1969 and 2019, Canadian parents received $499 billion in family allowance payments and children’s benefits from the federal government. That 50-year cost was matched by $505 billion in revenues to governments from the oil and gas sector – except that such taxpayer cash was collected…

Blowing in a fierce wind: Why crude oil prices are declining

Non-fundamental factors appear to be controlling crude oil market patterns

Blowing in a fierce wind: Why crude oil prices are decliningA number of major events weighed on global oil markets throughout last week. Those factors included: Hurricane Ida; the United States Federal Reserve delaying the tapering off of its economic stimulus; the decision of the Organization of the Petroleum Exporting Countries and its allies in OPEC+ to stick to their original output increments; the rising…

Delta variant hammering crude oil prices

Asia’s market is softening

Delta variant hammering crude oil pricesThe crude oil rally is stuttering. Having ceded some 15 per cent in prices in recent months, the rally we saw earlier this year has lost steam. Despite talk of growing demand, tightening markets, galloping prices and the call by U.S. President Joe Biden to the Organization of Petroleum Exporting Countries and their allies in…

With Iranian nuclear deal uncertain, crude oil prices rise

The summer driving season is upon us and Americans are hitting the road in much larger numbers than a year ago

With Iranian nuclear deal uncertain, crude oil prices riseCrude oil markets face an interesting mix of influences. While the COVID-19 Delta variant continues to affect the markets, conflicting signals seem to push oil prices in the opposite direction. Reports confirm that American oil consumption is rushing back much faster from the pandemic slump than initially predicted. The summer driving season is upon us…

Crude oil markets remain unsettled

Declining Chinese demand, a rising rig count in the United States and a devastating resurgence of COVID-19 in Asia all play a role

Crude oil markets remain unsettledIt has been a fluctuating week for the oil markets. In the immediate aftermath of the agreement within the Organization of Petroleum Exporting Countries and their allies in OPEC+, crude prices fell by a devastating seven per cent on July 19. However, with signs of demand holding despite the spread of the Delta COVID-19 variant,…

Oil markets feel pinch from renewed COVID-19 outbreaks

All eyes are focused on Saudi Arabia. Will it continue to single-handedly maintain stability in the markets?

Oil markets feel pinch from renewed COVID-19 outbreaksUncertainty has overtaken the crude oil markets again for several reasons. Since March, crude oil markets have mostly been ascending. But prices declined last week by a greater margin than any time in the last four-plus months. And the resurgence of COVID-19 in many parts of the world is clouding the near-term future of oil.…

Bleak clouds over the crude oil horizon are dissipating

But much still depends on United States-Iran nuclear talks and how OPEC+ members will react to any deal

Bleak clouds over the crude oil horizon are dissipatingCrude oil markets are hot. Prices are up and the US$75 line has been breached. Chatter about oil touching US$100 is getting loud and clear. Global oil consumption is getting closer to the pre-pandemic levels. The bleak clouds hanging over the crude oil horizon are beginning to dissipate. Industry eyes are again on the Organization…

Pepsi tax a sour deal for Newfoundland and Labrador taxpayers

Government maintains its sugar tax is all about keeping you healthy

Pepsi tax a sour deal for Newfoundland and Labrador taxpayersWhat’s all about sweets, sours your wallet and leaves a bitter taste? It’s Premier Andrew Furey’s proposal for a new Pepsi tax. This tax will increase the price of soft drinks by 20 cents a litre. By this time next year, you’ll be paying 15 per cent more for a two-litre bottle of Pepsi at…

Rising demand and prices suggest an oil market resurgence

US$100 oil is a distinct possibility

Rising demand and prices suggest an oil market resurgenceThe world needs more oil. The Organization of Petroleum Exporting Countries (OPEC), Russia and American shale oil producers all need to up their output to keep the rising prices of the “super cycle,” as Saudi Energy Minister Prince Abdulaziz bin Salman called it, under control. Media reports say Prince Abdulaziz bin Salman told the Robin…

Short-term gains on the crude oil market as climate change looms

The IEA concedes rising oil demand at odds with its call to end new oil, gas and coal funding

Short-term gains on the crude oil market as climate change loomsThe International Energy Agency (IEA) is torn between two conflicting ends. On one hand, it’s grappling with climate change issues; on the other, it sees rising oil prices. For now, the two ends seem to be running parallel but not converging. Oil demand is rising fast, as are prices, reaching multi-year highs on Friday. Brent…

OPEC+, IEA clash over future of fossil fuels

IEA wants all investments in new developments to stop. Others warn that could lead to $200 a barrel oil

OPEC+, IEA clash over future of fossil fuelsThe Organization of Petroleum Exporting Countries and their allies in OPEC+ are on a collision course with energy watchdog International Energy Agency (IEA) on at least two counts. Last month, the Paris-based IEA delivered the starkest warning yet on fossil fuels, saying the exploitation and development of new oil and gas fields must stop this…

Why Canada’s heavy oil is an integral part of U.S. production

Anyone who thinks the U.S. can do without Canadian oil, especially heavy oil, is misinformed. Canadian oil is critical to the Americans

Why Canada’s heavy oil is an integral part of U.S. productionBy Mark Milke and Lennie Kaplan Canadian Energy Centre The United States banned exports of crude oil in the mid-1970s, as the result of an oil embargo directed at the U.S. by Middle Eastern countries. The embargo began as a result of American support for Israel during the 1973 Yom Kippur War. In response, some…

Sugar-coating a sugar tax won’t make it any more palatable

If Newfoundland and Labrador pursues a sugar tax, it’s certainly not to get its people to lead healthier lives. It’s about paying bills

Sugar-coating a sugar tax won’t make it any more palatableIn its recent budget, the Newfoundland and Labrador government announced it will introduce a tax of 20 cents per litre on sugary drinks, starting on April 1, 2022. This a first in Canada. So far we know very little about how the tax would work, which products would be affected and how revenues from the…

Oil market shows signs of improvement but for how long?

Alternative energy and calls for the world to overcome its reliance on fossil fuels gaining currency

Oil market shows signs of improvement but for how long?The short-term prognosis for crude oil looks exciting. But that may be a mirage. The approaching summer driving season in the Northern Hemisphere and the lifting of COVID-19 restrictions have stimulated demand. The Organization of Petroleum Exporting Countries (OPEC) and its allies in the expanded OPEC+ appear confident that with the accelerating vaccination programs and…

Oil and gas sector soars over aerospace, auto industries

Higher wages and better productivity contribute to an industry that’s a dominant part of Canada’s economy and its GDP

Oil and gas sector soars over aerospace, auto industriesBy Mark Milke and Lennie Kaplan Canadian Energy Centre It’s hard for anyone but mathematicians and economists to conceptualize numbers in the billions. To get around that problem, and as a prelude to comparing major Canadian industries, let’s start with a smaller number and a question: How would you like to make $2,740 every week?…

America may not like it but pipelines are crucial

Are we prepared for the economic consequences of shutting them down?

America may not like it but pipelines are crucialBy Mark Milke and Lennie Kaplan Canadian Energy Centre There’s nothing like real life as a corrective to Disney-like musings, where fantasies are concocted absent any connection to reality. The newest example comes from a recent ransomware attack directed against Georgia-based Colonial Pipeline. The American pipeline company, which ships 100 million gallons of refined fuel…

Iran’s likely return to crude oil marketplace causes ripples

Biden seems to have slackened America's tight grip on Iranian crude exports reigniting a market share battle within OPEC

Iran’s likely return to crude oil marketplace causes ripplesIran and the United States are closing in on reviving the 2015 Joint Comprehensive Plan of Action (JCPOA), commonly termed as the Iran nuclear deal. U.S. President Joe Biden is keen to strike a deal before the June presidential elections in Iran, which hardliners are projected by many to win. All this has significant bearing…

Democracies can’t abandon oil and gas production

We have to beware tyrannies and autocracies that use oil and natural gas as weapons

Democracies can’t abandon oil and gas productionBy Mark Milke and Lennie Kaplan Canadian Energy Centre History shows tyrannies and autocracies use oil and natural gas as weapons when interacting with democracies. This is obvious during wars – tanks and jets don’t run on vegetable oil – as well as peacetime. For example, in 2009, Russia cut natural gas supplies to Ukraine in…

Atlantic Canada won’t prosper until it kicks the equalization habit

Taxpayers from so-called have provinces can no longer afford to subsidize the Atlantic provinces

Atlantic Canada won’t prosper until it kicks the equalization habitFor many years, there has been debate about equalization and other transfer programs and their impact on Atlantic Canada and other regions. Much of this discussion has been technical and difficult to follow. The debate has also been misleading because it focused on equalization even though equalization is only about a quarter of the net…

Oil producers prepare for one last profit push

But the good old days are gone

Oil producers prepare for one last profit pushA new reality is dawning: the short-term direction of oil markets is in sharp contrast to its longer-term trajectory. The short-term outlook – courtesy of the decision by the Organization of Petroleum Exporting Countries and their allies in OPEC+ to withhold some eight million barrels per day (bpd) from the markets – and the emerging…

No major relief in sight for oil markets

Ominous clouds continue to hang over the global oil horizon

No major relief in sight for oil marketsWhere will world oil markets be in a year? With so many variables impacting the markets, no one has the crystal ball to see the crude oil price trajectory a year ahead. On April 20, 2020, panic had gripped the energy market as a frightening realization dawned on oil traders: The world was rapidly running…

Why oil-producing nations are rushing to ramp up production

Oil producers face catastrophe if countries worldwide move to limit global warming by two degrees Celsius

Why oil-producing nations are rushing to ramp up productionCrude oil demand is weak and the fundamental factors aren’t encouraging. Yet, most major oil-producing countries are moving to boost their output levels in the short run. Why? Saudi Arabia is pursuing plans to develop major offshore expansion projects to add an extra 1.15 million barrels per day (bpd) to its oil capacity by 2024,…

Harnessing Newfoundland and Labrador’s vast mineral potential

The province appeals to mining investors because it’s able to match its relatively strong endowment with competitive policies

Harnessing Newfoundland and Labrador’s vast mineral potentialBy Jairo Yunis and Alex Whalen The Fraser Institute As Newfoundland and Labrador deals with the effects of COVID-19 and recession, good news economic stories appear to be in short supply. However, a recent survey of investors sheds light on the province’s mining potential. Mining plays an important role in the province’s economy and the…

Canadian oil still the safest bet for Americans

Canada was the only free-country supplier of foreign crude oil to the U.S. between 1993 and 2020

Canadian oil still the safest bet for AmericansBy Mark Milke and Lennie Kaplan Canadian Energy Centre Imagine you’re in Germany and wonder if it’s a good idea to rely so heavily on natural gas imports from Russia, where the governing regime is accused by German politicians of killing journalists and the attempted murder of Russian opposition leader Alexei Navalny. German Chancellor Angela…

Policy uncertainty continues to hurt Canada’s mining industry

To attract the investment required to develop resources, mitigating the risks of policy uncertainly needs to be a top priority

Policy uncertainty continues to hurt Canada’s mining industryBy Jairo Yunis and Elmira Aliakbari The Fraser Institute The COVID recession has hurt Canada’s natural resources sector, with supply disruptions, commodity price declines and greater uncertainty regarding future demand. Not surprisingly, capital investment in the Canadian mining industry has dropped to its lowest level since 2009. Of course, business investment should be a key…

Which sector spends the most on the environment? Oil and gas

Between 2006 and 2018 the oil and gas sector spent $28.1 billion on environmental protection; ALL other industries combined spent $39.6 billion

Which sector spends the most on the environment? Oil and gasBy Mark Milke and Ven Venkatachalam Canadian Energy Centre As two people not born in Alberta but who live here now – one of us came from British Columbia and the other from India – we’re constantly amazed at the misinformation about the province and one of Canada’s biggest economic contributors: the oil and gas…

Saudis determined to keep crude oil market on a tight leash

Although the OPEC+ decision resulted in immediate oil price gains, the warning shots on the horizon couldn’t be altogether ignored

Saudis determined to keep crude oil market on a tight leashSaudi Arabia is leading the pack on crude oil production management. Russia seems to be following. Despite murmurs in the oil market of a possible rift between the two countries on the issue of output, the Organization of Petroleum Exporting Countries (OPEC) and their allies in the OPEC+, at their virtual meeting last Thursday, went…

Oil and gas sector’s high productivity primes our standard of living

Has led to significantly higher wages, higher investment by industry, more taxes and royalty revenues for governments

Oil and gas sector’s high productivity primes our standard of livingBy Mark Milke and Lennie Kaplan Canadian Energy Centre We take a lot for granted. Consider the evolution in farming over the centuries. Imagine being a farmer a century or more ago. You likely used animals or your muscle to move a plow to furrow the soil in preparation for planting the seeds. Perhaps you…
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