jarco

6 Oil Industry Suppliers to Consider

Do you have thoughts on suppliers to these installers/processors?

Pipe suppliers such as NOV, for example.

Halliburton: Oil Prices May Depend on Russia

While it may take several years to fully play out, the world’s appetite for oil is sinking rapidly. Emerging markets and speculators drove the price to $140’s and both are irrelevant at this point and for the next 2-3 years in my view.

About 45% of a barrel of oil becomes gasoline. Another 30% fuel oil goes for North-country home heating and diesel fuel. 10% is jet fuel, 6% worthless residue, 4% propane as gas liquids, 3% asphalt, with the balance is Naphtha, and other “solvents” used in industrial processes and chemicals. While some “fine tuning” exists, this fixed yield will cause some erratic price swings as one particular use (e.g. gasoline) declines due to electric/hybrid cars. For example, despite less consumption of one element, the same number of barrels would need to be imported to satisfy diesel or jet fuel uses. The excess gasoline will cause noticeable price declines prompting increased use along with correspondingly less attractiveness of alternative energy..

The bottom line, an ongoing need for imports, and more importantly, some controls as to component allocation. Specific component consumption, up to this point, been purely by happenstance.