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Posts tagged “Petrobras”

By Robert Rapier on Dec 13, 2012 with 22 responses

An Oil Company Finds Itself On the Losing End of Fossil Fuel Subsidies

Petrobras: A Case Where ‘Fossil Fuel Subsidies’ are Bad for an Oil Company

When most people hear the phrase “fossil fuel subsidies” it conjures up images of governments giving their hard-earned tax dollars to already highly profitable oil companies. That’s what they have been conditioned to think by certain activists and politicians, and quite naturally this image evokes outrage.

On more than one occasion, I have pointed out that the vast majority of these so-called fossil fuel subsidies are really governments keeping fuel prices artificially low for consumers. This is a subsidy because consumers aren’t paying the true price of the fossil fuel, and the amount of the subsidy is the difference between what consumers pay and the market price. In most cases, the primary beneficiary of the subsidy is the consumer, and the secondary beneficiary is the fossil fuel company who gets to sell more product than they otherwise might.

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By Robert Rapier on Dec 14, 2011 with 10 responses

R-Squared Energy TV: Episode 5 – Cleantech, Oil Industry, Energy Careers

This week’s episode of R-Squared Energy TV answers the following viewer questions: Do you have any comments on Matthew Nordan’s recent 4-part response to Peter Thiel’s comments on cleantech VC as a failure? Do you retain any oil industry ties that your readers/viewers might like disclosed? What books do you recommend that choose a more positive outlook on our future, and are actual realistic predictions? Do you see a future in petroleum engineering, as most think it will be a doomed profession within the next twenty to thirty years? If I choose to become more involved in other energy solutions what would you recommend studying? Readers who have specific questions can send them to ask [at] consumerenergyreport [dot] com or… Continue»

By Samuel R. Avro on Oct 12, 2011 with 36 responses

This Week in Energy: Gasification, China, Brazil, KiOR

This Week in Energy is a weekly round-up of news making headlines in the world of energy. Most of these stories are posted throughout the week to our Energy Ticker page. The purpose is to stimulate discussion on energy issues. Community members should feel free to turn these into open thread energy discussions. Suggestions and news tips are welcome. I (Sam) can be reached at editor [at] consumerenergyreport [dot] com. Reporting from the Gasification Technologies Conference This week Robert Rapier attended the 2011 Gasification Technologies Conference. This conference covers developments for converting coal, natural gas, and biomass to power and liquid fuels via gasification. Robert provided some updates from the conference on Twitter (@RRapier), including: Shell’s 140,000 bpd Pearl GTL… Continue»

By Robert Rapier on Sep 16, 2009 with no responses

Brazil Flexing Its Muscles

A couple of years ago I was thinking about the possible fates of various nations in a world in which depleting oil reserves begin to have a very strong impact on oil prices. I had visions of $100+ oil and eventually $5-10 gasoline, which would place a crushing burden on the U.S. economy. Of course higher prices will motivate people to conserve (and will contribute to recession), and then you may find yourself in a situation in which the supply/demand balance once again tips toward excess supply (as we found ourselves in as oil approached $150/bbl). Prices fall. The economy starts to recover. What happens then? Prices rise, putting the brakes on recovery. This is what I postulated in The… Continue»

By Robert Rapier on Jun 10, 2009 with no responses

Time to Switch to Natural Gas?

A couple of articles, both at Seeking Alpha, got me to thinking about whether it might be time to trade in my Petrobras (PBR) stock for something in the natural gas sector. From the first of the two articles: Natural Gas Should Get a Boost from China’s New Demand China has been developing natural gas vehicles for many years, recently the number of vehicles running on nat gas has risen dramatically. For example, the government of Xi’an in western China, a medium size with 8M population, has decided to mandate all city buses and taxis using natural gas. The government website reported 5000 buses and 20000 taxis was using nat gas in 2008, and is expected to grow in coming… Continue»

By Robert Rapier on Mar 22, 2009 with no responses

Trying to Make Sense of Ethanol Tariffs

Note that in the following essay, I am not trying to come down either for or against ethanol tariffs, but rather to discuss what I see as the key issues surrounding them. U.S. energy policy is slanted to favor U.S. farmers and ethanol producers, and I am merely trying to explain the tariffs within that context. ——————- You are probably aware that the U.S. imposes a $0.54/gallon tariff on ethanol that we import from Brazil. Brazil’s President Luiz Inacio Lula da Silva met with President Obama last week and implored him – in the name of a better environmental policy – to remove the “absurd tariffs on ethanol.” In response President Obama said the situation is “not going to change… Continue»

By Robert Rapier on Mar 8, 2009 with no responses

Fortune Says Oil Stocks are a Bargain

I certainly can’t disagree with this: Betting on big oil’s comeback The article first argues that oil prices are unlikely to stay low for too long: “Right now, the upsides in the oil sector far exceed the downside risks,” says Fadel Gheit, an analyst at Oppenheimer & Co. “I am absolutely convinced that oil prices will rise.” After last year’s $100 free-fall rocked expectations, that kind of confidence is surprising. But Gheit is not alone; a strong consensus is growing for a price rebound. While crude isn’t likely to rocket back to the sky-high levels of 2008, even bearish analysts admit that oil can’t stay below $50 for long. Those are of course my sentiments as well. I believe that… Continue»

By Robert Rapier on Dec 23, 2008 with no responses

Loading Up on PBR

A little over a month ago, as a result of the dramatic fall in the market capitalizations of oil companies, I opened up a brokerage account with Ameritrade to take advantage of the fire sale. Besides my ConocoPhillips (COP) stock, most of my investments are diversified in various mutual funds – often diversified into things I don’t know too much about. As I have said many times before, I am a long-term investor. Short-term volatility doesn’t impact me much; my time horizon when I buy a stock is 5-10 years out. Therefore, I see an opportunity. Do I think oil prices will be hanging around $40 in 10 years? Absolutely not. I think the OPEC cuts will begin to bite,… Continue»

By Robert Rapier on May 2, 2008 with no responses

Oil to $250 a Barrel?

In case you missed it, there were several stories this week – and of particular note coming from OPEC – that suggested that much higher oil prices may be on the way: Oil Price May Go Up to $250, Warn Experts Crude prices continue to baffle analysts and pundits. With the $100-era a well established fact in our daily life, there is now a growing chatter within the energy fraternity that $200 a barrel may not be a far fetched idea altogether. Is another global oil shock now gathering pace? With limited additional supplies, alternative fuel still some decades away and demand far from collapsing, Deutsche Bank is pointing to a “huge risk” that oil prices would continue to rise… Continue»