I don't think they can work together, but without some stabilizing mechanisms in the oil market you'd have a lot more volatility, and if you had a lot more volatility you'd have a lot less investment.

Daniel Yergin

Categorized in : Company News

A premium in the oil price of somewhere between 10 to 15 dollars a barrel reflects this heightened anxiety.

anxiety dollars oil

According to one study by the United States Geological survey, 86 percent of oil reserves in the United States are the result not of what is estimated at the time of discovery but of the revisions and additions that come with further development.

revision oil discovery

We experienced similiar fears in the 1880s, at the end of World War I and II. And we ran out in the 1970s.

The bulk of extra supplies that could be put into the market come from two places. One, they come from other Persian Gulf suppliers, of which Saudi Arabia is at the top of the list.

arabia lists two

In the mid-1980s, operating problems took [nuclear] plants off-line so often that, on an annual basis, they operated at only about 55 percent of their rated total generating capacity. Today, as a result of several decades of experience and an intense focus on performance ... nuclear plants in the United States operate at over 90 percent of capacity. That improvement in operating efficiently is so significant in its impact that it can almost be seen as a new source in electric power itself.

electric-power impact focus

Clearly, the Chinese need the resources, but I don't think they want to clash with the industrial world which happens to be the market for their goods.

chinese world thinking

I think the producers, for the most part, don't want to see prices skyrocket because that will only create problems for them down the road and would also be a, you know, would be a very serious shock for a world economy that can't afford serious shocks right now.

want world thinking

A decade ago, capital investment was leaving the U.S., now it's c... by Daniel Yergin

A decade ago, capital investment was leaving the U.S., now it's coming home in a very big way.

It reflects the rebalancing that has gone on in world oil, this is the first CERAWeek ever where the world's largest producer is the country where we are holding the conference, which is the United States.

The global oil industry didn't really worry or think about trade issues. Now, trade issues are moving really pretty fast up the agenda.

I think they will not cooperate. They (Azerbaijan and Kazakhstan) are typical non-OPEC countries who simply produce at a maximum they can.

We experienced similar fears in the 1880s, at the end of World War I and II. And we ran out in the 1970s.

world-war-i end war world

We are living in a different world now. You can see it everywhere in international relations: It was noteworthy that, after his visit to Washington, the Chinese president's next stop was Saudi Arabia.

stop see you world

If a war started, the oil price probably would go up, as you said, maybe $5, $6 a barrel until you saw other oil from the extra supplies that are available elsewhere coming into the world, into the market.

go you war world

The other are the strategic, so-called strategic stocks that the United States and the other Western industrial countries have, which could put in as much as four million barrels a day of oil into the market pretty quickly.

pretty day oil four