The buzz from the oil sector is that operators from around the world need to brace themselves due to the economic changes to $50 oil as potentially the next benchmark. This is going to push operators to look for more ways of efficiency. They will have to decrease allotted budgets for upcoming projects by 20 to 30 percent. The amount is double that of the usual expected reduction amount. This decrease and cutting will affect the services and supply chain sectors, making its effect very prominent at lower levels of the industry specifically.
President Obama just announced that he has rejected the Keystone XL Pipeline. The administration and environmentalist have claimed a huge victory in the rejection of this project.
The fact that oil prices are low, due to the supply glut and other variables, didn’t help advocates for the project either. The project was proposed more than seven years ago, close to the beginning of Obama’s first term.
Low oil prices are not hurting the entire energy sector as U.S. refiners are reporting record profits. Valero Energy, Phillips 66 and Marathon Petroleum have all posted their best quarter in three years, Tesoro Corp. just reported a record profit for its third quarter.
Phillips 66, the largest U.S. refiner by market share, saw its shares rise 3 percent on Oct. 30 to $89.05, a record high. An index of the four companies is up 26 percent for the year while the broader Standard and Poor’s 500 Energy Index has lost 14 percent over the same period.
“Refining is one of the better places to be in right now. They have the luxury of low crude feedstock prices and high demand for their products.” according to Carl Larry, head of oil and gas for Frost & Sullivan LP in Houston. Crude prices are down by more than half since their 2014 peak, but drivers in the US are logging records in driven miles.
Analysis looks at new renewable energy plans by Brazil, China, European Union, India, Indonesia, Japan, Mexico and the United States
Renewable energy supply is set to double collectively in eight major economies by 2030 spurred on by new national climate and energy plans, according to new analysis by World Resources Institute. These renewable energy levels will be 18 percent higher in 2030 than previously projected growth rates, WRI found.