Transcript Oil Market
The US Oil Market World Suppliers US Crude Oil Production is rising The North Dakota Oil Boom Canadian Oil Market • http://business.financialpost.com/2014/01/08/as-canadian-heavy-crude-prices-strengthen-oil-industry-poised-for-moreprofits/?__lsa=70bc-57b7 • Today Western Canada Select is enjoying a sudden bump. The key Canadian oil blend is trading at its highest level in five months as export jams clear, new refinery demand comes online and frigid weather contributes to production snafus in northern Alberta. Upward Trend in Production of Canadian Crude Overall World Production of Oil • http://labs.wnstnsmth.net/worldoil/ Petroleum Consumption Growth US Demand versus US Supply China’s Demand for Oil West Texas Intermediate (US market) vs Brent (global) Gas Prices since 2003 http://www.gasbuddy.com/gb_retail_price_chart.aspx Price of Unleaded Gasoline Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1998 1.131 1.082 1.041 1.052 1.092 1.094 1.079 1.052 1.033 1.042 1.028 0.986 1999 0.972 0.955 0.991 1.177 1.178 1.148 1.189 1.255 1.28 1.274 1.264 1.298 2000 1.301 1.369 1.541 1.506 1.498 1.617 1.593 1.51 1.582 1.559 1.555 1.489 2001 1.472 1.484 1.447 1.564 1.729 1.64 1.482 1.427 1.531 1.362 1.263 1.131 2002 1.139 1.13 1.241 1.407 1.421 1.404 1.412 1.423 1.422 1.449 1.448 1.394 2003 1.473 1.641 1.748 1.659 1.542 1.514 1.524 1.628 1.728 1.603 1.535 1.494 2004 1.592 1.672 1.766 1.833 2.009 2.041 1.939 1.898 1.891 2.029 2.01 1.882 2005 1.823 1.918 2.065 2.283 2.216 2.176 2.316 2.506 2.927 2.785 2.343 2.186 2006 2.315 2.31 2.401 2.757 2.947 2.917 2.999 2.985 2.589 2.272 2.241 2.334 2007 2.274 2.285 2.592 2.86 3.13 3.052 2.961 2.782 2.789 2.793 3.069 3.02 2008 3.047 3.033 3.258 3.441 3.764 4.065 4.09 3.786 Annu a l 1973 versus 2012 Oil Prices Finding Equilibrium • • • • • Price Quantity supplied (QS) $2.30 300 million gallons per day $2.90 340 $3.20 380 $3.50 400 • $4.10 500 • • • • • Price Quantity demanded by all U.S. consumers of gasoline (QD) $4.70 300 million gallons per day $4.10 350 $3.50 400 $2.90 425 • $2.30 470 Politics and Economics • Where will prices go from here? • What are the factors that influence the price? • How will the supply factors change? • How will the demand factors change? • http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/08/u-s-oil-exports-havebeen-banned-for-40-years-is-it-time-for-that-to-change/ Additional Slides Natural Gas Consumption Total natural gas consumption is expected to increase by 2.7 percent in 2008 and by 2.2 percent in 2009 Unleaded Gas Price U.S Oil Production Total U.S. marketed natural gas production is expected to increase by 7.8 percent in 2008 and by 3.8 percent in 2009. Strong yearover-year production growth has been led by the development of onshore fields, particularly in Texas and Wyoming, where production increased by 16 and 12 percent, respectively, during the first 6 months of 2008 relative to year-ago levels.