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Showing posts from November 15, 2020

Managing the Tide of Green Revolution: OPEC needs to evolve to stay relevant

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Every living thing in the universe tends to evolve in order to guarantee its own survival that includes the Covid-19 virus that has been wreaking havoc across the globe at many levels, including those of the beleaguered oil industry. Even the virus in question, despite the absence of a ‘brain’ in the biological sense, appears to be evolving, because the latest data shows it’s not as ferocious as it was during the First Wave of the pandemic. That means it has evolved, not necessarily in Darwinian sense, taking millions of years, for a purpose: to guarantee its survival for the next few years or even decades; it simply does not want to destroy its host, us, the human beings. In short, it is not as 'stupid' as it has been portrayed to be, due to lack of what we have in a corresponding, anatomical sense. It holds the whole world hostage, while remaining at microscopic level, until its goal is achieved - hardly an inverse  ingenuity. In this context, there is a humble lesson t

Auctioning Off Land Blocks in Alaska for Oil Exploration

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  By narrowing down the definition of what is tantamount to ‘serious environmental harm’, the Trump administration is going ahead with auctioning off the lands of Arctic National Wildlife Reserve, ANWR, while asking potential bidders to come forward on Tuesday. With less than 70 days left before a change in administration, the critics argue that it was a move that makes the determination of the incoming administration to oppose or even reverse it, much more difficult. It's interesting to see how many big players in the realm of oil exploration will come forward without the incurring the wrath of the Green activists, who are getting bolder and more influential by the day. Even if they are reluctant, the opportunities for potential smaller players are wide open they may be tempted to make a move. Even before the presidential election in 2016, Mr Trump had been advocating the trimming down what he used to call, 'unnecessary bureaucracy' in the machinery of the government

Oil Price: recovery on track as US crude inventories fall by 11 billion barrels last week

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The price of oil on the rise again in the markets, buoyed by a combination of factors. Among them, in my opinion, the steady fall of US oil crude inventories stands above the rest, showing the significance of the US demand in the commodity. In addition, sanity seems to have broken out in the OPEC block, which blows hot and cold over the issue of production cuts, as the members of the very block are struggling to balance the books. For instance, federations like the UAE have taken pragmatic steps to shore up the economies, badly hit by the effect of the pandemic as well as rock-bottom oil prices.  The UAE has taken steps to ease social restrictions such as the consumption of alcohol in public and even the unthinkable co-habitation, perhaps causing unease among the conservatives. The motive of the authorities, however, is clear: they want to encourage inward investment and tourism. They have already walked the extrra mile by establishing full diplomatic connections with Israel. Investors

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