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Could the Saudi strategy be working?

Take it away, OilPrice.com … “Slumping oil prices are putting pressure on U.S. drillers. The number of active rigs drilling for oil and gas fell by their most in two months, according to the latest data from oil services firm Baker Hughes. There were 19 oil rigs that were removed from operation as of Oct.…

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The predators from Riyadh

Yesterday, French economist Jean Tirole won the Nobel Prize in Economics for his work in understanding imperfect markets such as monopolies or oligopolies. Personally, Tirole has been a huge influence in how I view the world. His graduate-level textbook on Industrial Organization remains, to me, the standard in the field, even though it is getting…

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Graph of the day

I’m not sure what the calculations were to get at this number, but the figure is significantly lower than Monaldi’s estimate of $200 as a breakeven price. Regardless, we’re far from where we would like to be.

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Revolution at 45%, and dropping

I concur with Setty: this talk by experts Daniel Kerner of Eurasia Group, Chevron’s Ali Moshiri, and our friend Francisco Monaldi of Harvard is well worth your time. It talks about the politics and the geology of oil in Argentina and Venezuela. The key part is Francisco’s estimate that the revolution needs the price of a…

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Venezuela’s encripted devaluation

An obscure document was published yesterday by Venezuela’s Central Bank (BCV), allowing PDVSA to sell the dollars it makes via oil exports to the BCV for deposit into an undeclared, secret fund at a more comfortable rate. Up until now, the rate that PDVSA got for its hard-earned dollars was the cheapest of the four…