The problem is, inflation and high commodity prices —
including oil and gas prices — tend to feed on each other in a vicious circle: people stock up on commodities to hedge against inflation, which leads to even higher prices, and thus inflation continues to rise.
Not exact matches
The world's top
oil and gas companies,
including Exxon
and Chevron, reported sharp drops in quarterly results last week due to lower
oil prices and weaker refining margins.
The report comes as world
oil and gas prices are falling
and other major LNG developers,
including Malaysian state - owned Petronas, put their B.C. LNG export facility plans on hold.
We tackle a host of news items in
Oil and Gas including; British Columbia halts development of the TransMountain pipeline, consumers face high
prices at the pumps,
and China's new intelligent highway will be able to charge electric vehicles as they...
Edmonton, June 2, 2016 — Canadian Western Bank (TSX: CWB)(CWB) today announced second quarter financial performance which
included strong growth in pre-tax, pre-provision (PTPP) earnings
and the significant negative impact of persistent low
oil prices on the credit performance of
oil and gas production loans.
CWB today announced second quarter financial performance which
included strong growth in pre-tax, pre-provision (PTPP) earnings
and the significant negative impact of persistent low
oil prices on the credit performance of
oil and gas production loans.
The knee - jerk reaction of many Canadians,
including Industry Minister Tony Clement, is to assume that high
gas prices and inflated profit margins are likely to be explained by collusion among the big
oil companies to fix
prices at higher than acceptable levels.
Today, futures market participants trading futures to hedge
price risk exposure may
include any commercial entity that produces or buys any of the commodities such as grains
and livestock, the «softs»
including cocoa, sugar, cotton, coffee,
and orange juice; energies
including crude
oil, heating
oil, gasoline,
and natural
gas;
and metals such gold, silver, platinum,
and copper.
Of course, whether the Prius pays for itself in the current market uncorrected for externalities is a different question than whether it would pay for itself once you accounted for the
price of
gas if it
included all the environmental costs
and much of the cost of the Iraq War (which, even if not directly about
oil, is really pretty much about
oil in the sense that it is what makes that whole region of important strategic interest to us).
The problem with this concept is that even if
oil and gas prices are likely to increase in the future, thus increasing federal revenues from
oil and gas leases on public lands, any such revenue coming from areas already open to production will be considered by CBO as already
included in the baseline revenue picture.
Several of those policies are not specific to the
oil and gas sector; instead, many of these jurisdictions have adopted economy - wide carbon
pricing that
includes oil and gas emissions.
Obama: I have always been in favor of an «all of the above» climate policy,
including a carbon
price with cap
and trade, crippling EPA regulatory restrictions on the coal plus
oil and gas industries, fewer incentives for exploratory drilling, no further drilling on government lands, no Keystone pipeline, more taxes on the rich, etc..
It should be obvious to all,
including politicians, that the
oil price is stubbornly stuck above $ 100 per barrel
and talk of an impending unconventional
oil and gas bonanzas in the USA
and other places has not produced any change in the cost of a barrel of society's hemoglobin.
Interestingly, beyond this, despite considerable rhetoric about moving beyond debates about carbon -
pricing, the report recommends that in order to avoid adding to the Federal debt, it would be necessary to impose new taxes,
including increased royalties for
oil and gas extraction, a tax on imported
oil, a tax on electricity sales,
and a «very small carbon
price» (presumably from a modest carbon tax or unambitious cap -
and - trade system).
His remarks covered the need for investment in upstream
oil to meet rising demand
and offset decline in mature fields, how competitive
prices are vital for growth in
gas markets, the rapid growth in solar
and wind,
and prospects for reaching universal access to electricity,
including India's significant achievements over recent years in this respect.
To meet those challenges, the IEA recommends Slovakia take the following steps to comply with EU
and IEA standards
and Shared Goals; improve the security of
oil and gas supplies
including through diversification; enforce an energy efficiency action plan to offset high energy
prices and compensate for decommissioning power generating capacity;
and effectively open its markets to competition.
Vast quantities of coal — proven to exist — remain in the ground — but not
included on the reserve tally because they are not economically recoverable at current
prices — in part due to the availability of
oil and natural
gas.
American politicians who really care about climate change — I'm assuming this
includes our president, as well as a majority in Congress — should skip the summits
and instead ask themselves why the
oil and gas prices that started rising a couple of years ago (creating a boom in alternative - energy research) have once again dropped to an artificial low.
For example, Canada will impose a carbon
price by 2018, which will affect industries
including mining,
oil and gas and auto.
Recent experience
includes LCIA arbitrations about political risks insurance, major bank loans to Russian entities,
and long - term coal supply agreements; an UNCITRAL arbitration about a coal contract
price adjustment mechanism; LMAA arbitrations relating to shipbuilding contracts, charterparties,
and bills of lading; a FOSFA Board Of Appeal hearing about a contaminated cargo of vegetable
oil;
and ICC arbitrations about a South American
gas field consortium
and an East African
oil and gas exploration project.
Typical claims litigated
include disputes relating to
price redetermination provisions,
oil and gas royalty obligations, representations
and warranties, purchase
price adjustments, take or pay provisions, capital contribution obligations,
oil and gas well drilling obligations, implied lease covenants, delivery of goods requirements, force majeure provisions, right of first refusal
and other preferential rights provisions, trade secret protection, contract termination provisions, indemnity obligations, fiduciary obligation,
and corporate
and partnership governance issues.
Robert's commercial disputes experience has focused on the energy sector
and includes representing a multinational energy company in a $ 150 million ICC arbitration concerning the impact of government - imposed
price renegotiation in the coal industry; representing an
oil &
gas major in a dispute under a long term
gas supply agreement in relation to an off - shore West African field; defending a Russian energy infrastructure company in LCIA arbitration proceedings;
and advising an
oil major on potential claims under a bi-lateral investment treaty related to corruption charges
and maltreatment of company officers.
The reasons for this jump in
gas prices include increased demand as drivers get out to enjoy the warm weather, routine maintenance at
oil refineries
and the switch to summer formulations at those refineries.