As China’s demand for light oil products continues to drive incremental consumption growth, it is becoming apparent that commodities framed as “oil products” are increasingly not actually made from crude oil. Fellow Gabriel Collins explores the possible ramifications of this situation in this issue brief. He writes that oil producers — whether in Riyadh, Moscow or the Permian Basin — should take stock of how China’s growing use of “oil products” that do not actually come from crude oil may translate into effective reductions in demand and prices for the crude oil they produce.
This brief quantifies the potential exposure of key European countries to Russian gas price and supply manipulation, shows how Moscow has used energy as an instrument of coercive diplomacy since the early 1990s, and briefly assesses the impacts and future policy implications of Russian entities’ past use of the “energy weapon” in and near Europe.
Although it has not been widely successful to date in the former Soviet zone, Russia's use of the energy weapon against Western European countries in various forms still constitutes a strategic threat that warrants close attention from policymakers in Washington and throughout Europe, writes fellow Gabriel Collins.
OPEC may opt to continue or deepen its oil production cuts at its upcoming May meeting, as a growing number of highly efficient U.S. shale operators now appears able to maintain oil production — and even expand it — at prices that likely are unsustainably low for many major exporters’ national budgets, writes energy fellow Gabriel Collins.
State regulators and legislators — not federal courts — should get first crack at resolving problems arising from seismic activity related to wastewater injection. Fellow Gabriel Collins explains.
The oil production targets agreed to at the November 30, 2016, OPEC meeting have created the firmest prospect in the past two years of a meaningful oil price recovery. If WTI prices rise and stabilize in the $60/bbl range, how fast can U.S. shale producers respond? This brief addresses the question and highlights the challenges U.S. unconventional liquids producers will likely face during a scale-up. It also points out price and timing inflection points likely to broadly influence industry decision-making.
Gabriel Collins, Kenneth B. Medlock IIIJanuary 17, 2017
This paper examines the progress of energy subsidy reforms in the Persian Gulf, documenting policy changes in all six monarchies and briefly examining the role of energy and the state.
The Nov. 13 terrorist attacks in Paris have turned public opinion against allowing Syrian refugees to resettle in other countries. But rejecting refugees based on their religion or assumptions that they may assist ISIS in launching acts of terrorism betray universal values of freedom and equality.
The accession of a new king in Saudi Arabia and the kingdom’s intervention in Yemen have overshadowed important moves to reform two of the kingdom’s key institutions. Incoming King Salman has taken steps to prepare Saudi Arabia for a new generation of leaders, both within the royal family and among the world’s largest oil export sector and its marquee company, Saudi Aramco. The changes involve installing new personalities into key positions and shifting the roles of long-serving managers. "Overall, the moves ought to enhance the resilience of the kingdom and its economy by shifting leadership responsibilities to a younger generation," writes fellow Jim Krane.
As the United States once again ramps up involvement in Iraq, it makes sense to examine U.S. interests and strategy while considering what might constitute realistic parameters for participation and outcome.
In this issue brief, energy fellow Jim Krane explores answers to the question "What are U.S. interests in Iraq and how are they best pursued?"