Six energy trends to watch in 2012
22.05.12
In 2012, companies are likely to continue that shift, while high-profile battles over the oil sands, pipeline projects and fracking will also persist. At the same time, both crude oil and natural gas prices may reverse course modestly during the year, as natural gas demand picks up and supply growth slows, and as global suppliers boost production as developed economies struggle out of recession.
Iran and oil prices
Political upheaval in the Middle East is a boon to oil producers everywhere. The loss of Libya’s 2.6 million barrels of daily production after the country’s revolution in February sent crude prices sharply higher.
In 2012, the focus will be on Iran, which has threatened to respond aggressively if European countries follow the United States in applying sanctions on its oil industry.
Now Iran is boasting about how easily it could close the Straight of Hormuz, where some 40 per cent of the world’s seaborne oil shipments travel. Iran is the world’s forth-largest oil producer, and while even the threat of attack spooked crude markets, a senior oil official from Saudi Arabia has since said Gulf Arab countries could make up for any lost production. This comforted oil traders, who on Wednesday pushed the price of crude down in both North America and Europe.
Source: Globe and Mail