Under the new Saudi- Russo oil deal, Saudi Arabia and Russia lead the record for oil cuts as part of the agreement committed by 23 countries to withhold 9.7 million barrels a day from markets. Western publications, including The New Yorker, ran articles this week with headlines such as “How the Russian-Saudi Oil War Went Awry—for Putin Most of All.”
In order to complete Nord Stream 2, Russia decided to have the Gazprom vessels accompanied by Russian warships. The route is from the Indian ocean to the Mediterranean Sea. Nord stream 2 is a new export gas pipeline from Russia to Europe via the Baltic Sea. The combined capacity of each of the two Nord streams lines is expected to be 55 billion cubic meters of gas per year. Thus, the total design capacity of Nord stream and Nord stream-2 is 110 billion cubic meters of gas per year.
The cost of making artificial diamonds is a very expensive process. It consumes large amounts of energy with the high costs. Now a unique new technology has been announced, which is a collaboration by American and Chinese chemists, to create much cheaper precious stones from crude waste. The project involved chemists from the Stanford University, California, University of Chicago and the Center for High Pressure Science and Technology Advanced Research in China. A full spectrum of the technology has been published in the scientific paper the Science Advances Journal.
Russia’s head of the Minenergo, Alexander Novak, recently stated the nation’s interest is to gradually severe ties with OPEC, the Organization of the Petroleum Exporting Countries comprised of 14 nations. Founded in 1960 in Baghdad by the first five members, OPEC moved its headquartered in 1965 to Vienna, Austria. The countries that joined later were:
The US Senate approved additional anti-Russian sanctions. The Defending American Security from Kremlin Aggression Act was introduced by Sen. Lindsey Graham (R-SC) back in February 2019. US President Donald Trump is forced to put restrictions on Russian Sovereign debt but it is only applicable to newly issued bonds. It is possible Trump will veto the Defending American Security from Kremlin Aggression Act.
The Saudi monarchy experienced attacks against their oil production facilities in the last week. Tensions in the Middle East escalated following the drone attacks on the two largest oil facilities in Saudi Arabia. Yemen’s Houthi rebels claimed responsibility for the attacks.
The global economic impact will be felt, since Saudi Arabia lost more than half of their crude output via the attacks. The nation is the number one oil producer in the world, holds 5% of the global oil supply, and cut output by 5.7 million barrels per day. last year, Aramco’s net income was $111.1 billion.
The majority of all global conflicts are connected to oil. The map below provides the current oil resources available globally. The power of the Black Gold and greed has been overriding human lives for close to 100 years. The first large scale demand for petroleum was documented in the 1880s due to kerosene been derived from petroleum.
This week, Durig Capital takes a look at a leading marine transportation company. Teekay Corporation provides marine transportation, storage, and vessel leasing for the oil and natural gas industry. The company’s third quarter saw increases in its subsidiaries revenues over second quarter. Here are some highlights from its third quarter results.
Teekay Tankers nearly doubled its quarterly revenues from the prior year period.
Teekay Corporation recorded adjusted cash flow from vessel operations of $19.8 million as compared to $1.2 million a year earlier.
Teekay LNG revenues increased to $123.3 million as compared to $104.3 million a year earlier.