The Fuse

Oil and the Economy

Economics

Oil Sands Long-Term Growth Looks Increasingly Shaky as Majors Flee Alberta, Suncor Pivots

With existing production facing a stiff market, new oil sands projects might remain too risky for most companies. Suncor Energy’s strategy of handing over much of its cash flow to investors is a sign that oil sands face a rocky future. Read More

Demand

Short-Term Thinking in Oil Industry Collides With Broader, Long-Run Transportation Vision

Both the oil and car industries require deep capital investments and long lead times, and at times are rocked by global macroeconomic forces beyond their control. Right now, they are taking opposite strategies. Read More

Economics

Shale Industry to Remain Under Pressure With Prices in the $40s

Even though the fortunes of the shale industry have suddenly reversed course, it is not clear that drilling will abruptly take a hit. Read More

Economics

Rising Floating Storage Adds One More Bearish Element to the Oil Market

The recent increase in floating storage is an ominous sign that the OPEC cuts may not balance the market, and it also poses a threat to the ambitious drilling campaigns by U.S. shale companies that are still recovering from the price crash to below $30 in early 2016. Read More

Economics

Crosspost: Oil Dependency Grows with Falling Price

Headlines around electric cars and carbon policy suggest our oil dependency is on a slippery downward slope. Recent data from 2016 suggests the opposite: our worldwide addiction is getting stronger. Read More

Economics

How Can East Coast Refiners Reduce Imports From OPEC? Pipelines from the Bakken Are Key

One solution to reducing dependence on imports would be to build pipeline capacity connecting the Bakken area to refineries on the East Coast. Read More

Economics

Oil Sands Long-Term Growth Looks Increasingly Shaky as Majors Flee Alberta, Suncor Pivots

With existing production facing a stiff market, new oil sands projects might remain too risky for most companies. Suncor Energy’s strategy of handing over much of its cash flow to investors is a sign that oil sands face a rocky future. Read More

Demand

Short-Term Thinking in Oil Industry Collides With Broader, Long-Run Transportation Vision

Both the oil and car industries require deep capital investments and long lead times, and at times are rocked by global macroeconomic forces beyond their control. Right now, they are taking opposite strategies. Read More

Economics

Shale Industry to Remain Under Pressure With Prices in the $40s

Even though the fortunes of the shale industry have suddenly reversed course, it is not clear that drilling will abruptly take a hit. Read More

Economics

Crosspost: Oil Dependency Grows with Falling Price

Headlines around electric cars and carbon policy suggest our oil dependency is on a slippery downward slope. Recent data from 2016 suggests the opposite: our worldwide addiction is getting stronger. Read More

Economics

How Can East Coast Refiners Reduce Imports From OPEC? Pipelines from the Bakken Are Key

One solution to reducing dependence on imports would be to build pipeline capacity connecting the Bakken area to refineries on the East Coast. Read More

Economics

Is Shale Productivity Bumping Up Against Its Limits?

There are some signs that the U.S. shale industry is bumping up against its productivity limits, which could lead to lower-than-expected output gains or rising drilling costs. Read More