Oil Glut Grows Larger According to Colver Technologies
Colver Technologies says the world's largest oil producers added over 500 million barrels more crude than the world needs in the 9 months to September.
- (1888PressRelease) October 26, 2015 - According to Colver Technologies, the supply glut in crude oil appears to be set to continue after it was revealed that, in the first 9 months of the year, the world's largest producers further saturated the market with over half a billion barrels more oil than the world actually needs.
OPEC pumped about 30 million barrels a day which is 2m barrels more than the demand for their oil. Their reasoning is that by keeping the market oversupplied, they can drive down crude oil prices to the point where it is no longer viable for the shale oil producers in the US and elsewhere to continue drilling since it costs more to produce than they can sell their product for.
"Unfortunately for OPEC, the shale oil producers have held on for much longer than it anticipated. By increasing efficiencies, hedging their product and using services like ours to add value, they've been able to keep going," says Gus Stuyvesant, COO at Colver Technologies.
Commercial stockpiles of crude of fuel in the developed industrial countries have hit an all-time record of 2.94 billion barrels according to the International Energy Agency (IEA).
"If the sanctions on Iran are lifted next year as expected, the oversupply situation could get even worse. The only hope for prices is a reduction in supply or confirmation that Federal Reserve won't raise interest rates," explained Stuyvesant.
Weak employment data and concerns over the slowing of the US economy have seen the dollar weaken notably against other global currencies in the last 2 weeks and, as oil is denominated for sale is US dollars, weakness translates into higher nominal prices.
Colver Technologies says it believes the dollar will weaken further as it becomes apparent that the Federal Reserve is not going to raise interest rates any time soon.
About Colver Technologies
Colver Technologies' modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
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