LyrArc Article Gist
WSJ Editorial Board on Andy Burnham "wish him well,"  yet  this editorial says "he has wrong instincts." Calls Burnham as being "cipher on immigration," "want government to take lead on housing construction" and "wants greater state control of utilities," are unfounded criticism as shown below- "Cipher on immigration" - Burnham has supported Shabana Mahmood, as Home Secretary, on new action for strict immigration rules, tight control over migration, similar to Denmark.  He "wants greater control over utilities."  WSJ says nothing about how utilities were privatized under the Conservatives for basic services that are necessities for a basic quality of life- water, energy and transportation. It is widely accepted across Britain that the private entities have dismally failed the British people in ways not thought possible. Handing basic services to for profit companies was a fundamental error in Britain as it deteriorated the quality of life of the British people. As Burnham pointed out yesterday in speech to Labour and the British people if one cannot get something as basic as a bus service right how on earth can one fix the larger problems facing Britain? He "wants government to take the lead on housing construction."  When there are shortage of housing affecting the standard of living and quality of life as in the US and Britain the government can make a difference, and its stepping in and doing things correctly can improve the quality of life of the British people. He has "the wrong instincts on economy" with suffocating net zero policies. It is reported in The Guardian that Burnham will support drilling for oil to help bring down cost of energy. The focus now is not net zero goals but making life better, improving the quality of life, achieving some balance which now is leaning towards cost of living affecting the people. In fact on July 19 DJT said people will be dancing in the streets of Aberdeen as Burnham is supporting drilling for oil in the North Sea. Much of the criticism of the Sky News and WSJ continues to follow a pattern of failed coverage of the past with no faith in Britain's future and potential. Every new effort is met with "it can't be done." He has the wrong instincts for business. In modern economies business is part of and the main driver of the economy. In Burnham's work in Manchester business was part of his plan for the economy, and successfully implemented. For far too long in Britain there has not been an honest reckoning on how policies that were reckless with the quality of basic services that affect the quality of life of the British people, would let Britain down, would fail to deliver for the people of Britain. The country that led the Industrial Revolution deserves something better and should get it in this one bold effort by Burnham. ...

LyrArc Article Gist
A steady decline in the price of Brent crude from $115 to $92 in the period from June to October 2014. Slow or no economic growth in Europe, and declining growth in China was the main reason. A cut in oil price by Saudi Arabia in September with lack of coordination in OPEC to control supplies when prices are declining, and increasing supplies from the U.S., provided additional basis for price declines. This price decline comes as large energy companies invested heavily in mega-projects to bring more oil supplies when prices were up to $128 by mid-2012. Consulting company EY estimate is that there are 163 such mega projects worth $1.1 trillion underway, most behind schedule and over budget. The projects were based on oil prices being over $100. Oil field development costs are increasing rapidly. Douglas Westwood, a consulting firm, estimate is that productivity of upstream capital spending has fallen by a factor of 5 since 2000, declining by 5% a year, as oilfield equipment and services demand exceeds supply. Greater technological sophistication also adds to cost such as Shell's Nobel Bully platform for deep sea drilling. See link- Noble Bully. Oil majors are now cutting spending, and some planned big projects are on hold. About $300 billion in assets may be up for sale. Shell plans to cut spending by 20% in 2014, Exxon and Chevron 5-6%. Shale oil projects in America need about $57 to be profitable with an internal rate of return of 10%, by one estimate. Yet this is an average and does not reflect differing producer costs. This estimate does not reflect the high cost producers, some of whom need closer to $110....

LyrArc Article Gist
U.S. oil exports are expected to average 1 million barrels a day for all of 2017. In 2016 in some months the average was 1 million barrels a day. U.S. oil exports make up 1% of global oil volumes, yet the added inventory has helped keep prices in the range of $46  to $55 a barrel in mid 2017. American crude is at a $2.50 discount over the Brent crude benchmark, making it profitable to export to far away locations. Back-haul economics also helps as tankers coming back from the middle east can now take crude back with a stop in Europe. Oil exports go to China and Europe. Production declines in China have led to China importing from the U.S.

LyrArc Article Gist
Daniel Yergin cites an estimate by IHS Cambridge Energy Associates which shows oil from shale and dense rock, which was about 1 million barrels a day in 2011, could reach 3 million barrels a day 2020. North Dakota where much of the production is taking place is now fourth in oil production in the U.S. after Texas, Alaska, and California, and is likely to move up to second place. U.S. imports of oil come primarily from Canada 25%, Mexico 11%, Venezuela 9%, and the Persian Gulf 16%. Canadian oil sands development has increased production and the completion of the Keystone pipeline will increase the share of oil imports from Canada. This is shifting the dynamic of oil away from the Persian Gulf, with the volatile politics in the region, and more towards North America.

LyrArc Article Gist
Major decline in oil prices in Oct. 2014 as prices drop to $81 per barrel and are forecast to reach $70. U.S. oil production increased by about 56% or 3.1 million barrels a day since 2004. U.S. demand for gas and fuel declined 8% compared to 2004. Initially instability and wars in the Middle East sustained high oil prices in 2012-2013. Yet with growing output from shale and other sources in N. America and slowing economies of Europe and China, the situation reached a point in 2014 where supply exceeds demand. This shift more than offsets any instability in trouble spots. The situation affects the U.S. consumer favorably with an estimate of $1 billion in savings for American consumers with every one cent drop in price at the gas pump, by one estimate from Deutsche Bank analysts. Typical American families gained an extra $50 a month from the decline June to October 2014, according to analysts at Gasbuddy.com. The declines are a boost for the slowing economies of Europe, Japan, China, S, Korea and India. China's imports for 2015 are estimated at 61% of oil consumption, using official estimates. In the current slowdown the lower prices offer relief. India which imports 75% of its energy benefits signficantly, as this helps lower inflation and reduces cost of fuel subsidies for state run companies. Russia is adversely affected by the declines as it depends on oil and gas exports for 50% of the nation's budget. Estimates by AFK Sistema economists show the Russian economy contracting in 2015 with oil at near $90 per barrel (Brent crude is at about $85, and WTI at $81 in early Oct. 2014). Russia's former Finance Minister Alexei Kudrin reflects opinion among Russian executives and politicians, when he told state television that Saudi Arabia may be pushing prices lower to target Russia's oil resource based economy and Mr. Putin, in an effort to broaden the effect of sanctions. (The Saudis have strongly protested the Putin intervention in Syria.) Venezuela has used $120 per barrel and Angola $98 for its budget, leading to a strong hit for the economy. ...