Daily Digest

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Daily Digest 1/8 - The Real Cause Of Low Oil Prices, Adapting To A Warmer World

Thursday, January 8, 2015, 12:43 PM

Economy

2015: Grounds for Optimism (thc0655)

Looking back on 2013 and before, such sentiments were already being expressed, but on the fringes and quietly. The difference is that in 2014 they became commonplace knowledge, and their expressions thundered from presidential podiums. What's more, there just isn't that much of a counterargument being voiced. I don't hear a single voice out there arguing that the US is a benevolent force that is on the up-and-up, would never hurt a fly and is the permanent center of the universe. Yes, some people can still think that, but it's hard to see value in such “thought.”

New class of antibiotic could turn the tables in battle against superbugs (jdargis)

In studies on mice, the new antibiotic wiped out infections of Staphylococcus aureus and Streptococcus pneumoniae, which can cause life-threatening blood and lung infections. It was also effective against Enterococcus, which can infect the heart, prostate, urinary tract and abdomen.

New Research Links Scores of Earthquakes to Fracking Wells Near a Fault in Ohio (jdargis)

The authorities in Ohio ordered a halt to fracking at seven wells on March 10 after the two biggest quakes there, measured at magnitudes 2.8 and 3, were felt in Poland Township, about 10 miles south of Youngstown on the Pennsylvania border.

A spokeswoman for the state’s Department of Natural Resources, Bethany McCorkle, said Wednesday that the wells remained in production but that further fracking had been banned.

Potential of dangerous asteroid to hit the Earth on January 26 (Chris M.)

The asteroid, named 2004 BL86 by scientists, is estimated to be between 440-1,000 meters in diameter. 1.2 million kilometers is approximately three times the distance from the Earth to the Moon.

A space object is considered potentially dangerous if it crosses the Earth's orbit at a distance of less than 0.05 AU (approximately 19.5 distances from the Earth to the Moon), and if its diameter exceeds 100-150 meters. Objects of this size are large enough to cause unprecedented destruction, or generate a mammoth tsunami in case they fall into the ocean.

Adapting to a warmer world (Richard B.)

“There’s a lot of hope, but many fear we might be starting too late,” Manning says. “As people experience more effects of climate change, we’re going to have to work toward finding ways to lift people up out of more grief and trauma. We may have to go into triage mode.”

Stable climate demands most fossil fuels stay in the ground, but whose? (jdargis)

Breaking the world apart into 10 regions, things get even more complex. Looking at oil, the US could produce over 90 percent of its oil, while Canada would have to leave 75 percent in the ground (largely because Canada’s oil sands are more costly). While the Middle East would only be leaving 38 percent of its oil—just above the global average—that works out to be 263 billion barrels, accounting for about half of the total global “unburnable” oil.

Canada: A Microcosm Of The Ultimate Effect Of Low Oil Prices? (Evan K.)

Canada’s economy, lately driven in large part by oil, is a classic example of the old see-saw axiom: Downward pressure in one place creates upward pressure in another. In this case, the bad news of low oil prices for the provinces of Alberta, Newfoundland and Saskatchewan, which until recently were enjoying an oil boom, becomes good news for Manitoba, Ontario and Quebec. Alberta is a good model for what’s begun to go wrong in Canada. Already, three huge oil companies have canceled oil sands projects there: Shell of Britain at Pierre River, Statoil of Norway at the Corner oil field and France’s Total at the Joslyn mine. And more cancellations are expected as what feels like a non-stop drop in oil prices drives even more energy companies to postpone or even cancel projects.

The Real Cause Of Low Oil Prices: Interview With Arthur Berman (Doug A.)

We’ve seen several announcements by U.S. companies that they will spend less money drilling tight oil in the Bakken and Eagle Ford Shale Plays and in the Permian Basin in 2015. That’s great but it will take a while before we see decreased production. In fact, it is more likely that production will increase before it decreases. That’s because it takes time to finish the drilling that’s started, do less drilling in 2015 and finally see a drop in production. Eventually though, U.S. tight oil production will decrease. About that time—perhaps near the end of 2015—world oil prices will recover somewhat due to OPEC and Russian cuts after June and increased demand because of lower oil price. Then, U.S. companies will drill more in 2016.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/7/15

Provided daily by the Peak Prosperity Gold & Silver Group

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