December 7, 2006
Quick oil news from AG Edwards
- Year-on-year global oil demand grew modestly in November. EI reports that demand grew 1.5% and equated to 85.9 mbpd. Over the same period, supply was up 1.12 mbpd.
- Nigerian militants in seven speedboats attacked the Agip export terminal in the Niger Delta this morning. Three Italians were kidnapped and one local was killed. Oil production was not affected. Nigerias Pengassan oil union has called on the government to investigate the involvement of high-ranking officials in the Niger Delta abductions.
- As conventional reserves become increasingly difficult to develop, Algeria revised down its production target for 2010 to about 1.5 mbpd from 2.0 mbpd. Currently the nations output is about 1.4 mbpd. The revision comes on rising costs of increasingly complex projects that typically result in delays.
-In recent weeks, weve mentioned plans for new refineries to be built in the U.S. For example, Kuwait and Louisiana are looking into a project. No new refineries have been built in the U.S. since the 70s, but since 1996 refinery capacity has increased from 15.3 mbpd to 17.4 mbpd. The expansion comes from debottlenecking, modernizing, and adding capacity at existing refineries. CERA reports that this expansion is equivalent to building 17 average- sized new refineries.
Bottom line: look for more unrest in Nigera delta, a critical producer. And new Refineries won't be coming soon. We are at 85MBPD, most analyst belive that is the peak. I doubt we will see supply/demand go to 90mbpd.
Posted by Martin at December 7, 2006 5:34 PM
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