Monday, May 21, 2018
Business

Shale won't end reliance on Middle East oil, report predicts

WASHINGTON — The boom in oil from shale formations in recent years has generated a lot of discussion that the United States could eventually return to energy self-sufficiency, but according to a report released Tuesday by the International Energy Agency, production of such oil in the United States and worldwide will provide only a temporary respite from reliance on the Middle East.

The agency's annual World Energy Outlook, released in London, said the world oil picture was being remade by oil from shale, known as light tight oil, along with new sources like Canadian oil sands, deepwater production off Brazil and the liquids that are produced with new supplies of natural gas.

"But, by the mid 2020s, non-OPEC production starts to fall back and countries from the Middle East provide most of the increase in global supply," the report said.

A high market price for oil will help stimulate drilling for light tight oil, the report said, but the resource is finite, and the low-cost suppliers are in the Middle East.

"There is a huge growth in light tight oil that will peak around 2020, and then it will plateau," said Maria van der Hoeven, executive director of the International Energy Agency.

The agency was founded in response to the Arab oil embargo of 1973-1974 by oil-importing nations.

The agency's assessment of world supplies is consistent with an estimate by the U.S. Energy Department's Energy Information Administration, which forecasts higher levels of U.S. oil production from shale to continue until the late teens, and then slow rapidly.

"We expect the Middle East will come back and be a very important producer and exporter of oil, just because there are huge resources of low-cost light oil," van der Hoeven said. "Light tight oil is not low-cost oil."

Predicting energy trends is notoriously difficult. For example, hardly anybody predicted the revolution in oil and gas production created by hydraulic fracturing, or fracking, in shale.

The energy outlook, which makes projections through 2035, does not anticipate breakthroughs, although it expects continued reductions in cost for electricity from renewable sources. Electricity from wind and the sun, though, may command less revenue going forward, as it becomes harder to integrate into the electric system, because it cannot be turned on at will.

Comments
GasBuddy predicts plunge in summer travel, blames gas prices

GasBuddy predicts plunge in summer travel, blames gas prices

At least one gas price tracker expects rising fuel prices to sharply curtail summer travel. In a recent survey by GasBuddy.com, just 58 percent of motorists surveyed said they would take a road trip this summer, down 24 percent from last year. Just u...
Updated: 21 minutes ago
Construction poised to begin this week on four-story boutique hotel in Ybor City

Construction poised to begin this week on four-story boutique hotel in Ybor City

TAMPA ó A ceremony marking the start of construction on a four-story, $32 million boutique hotel at 1402 E Seventh Avenue has been set for Thursday.The site is now a parking lot, but plans on file with the city of Tampa outline a hotel project with 1...
Updated: 1 hour ago
FPL parent wants to expand its Florida footprint with new purchase

FPL parent wants to expand its Florida footprint with new purchase

TALLAHASSEE ó The parent company of Florida utility giant Florida Power & Light announced Monday that it will buy the largest electricity producer in Northwest Florida, Gulf Power, in a $6.4 billion deal.Juno Beach-based NextEra Energy Inc. said in a...
Updated: 1 hour ago
Barack and Michelle Obama are becoming television and film producers for Netflix

Barack and Michelle Obama are becoming television and film producers for Netflix

Netflix announced a production deal Monday with Barack and Michelle Obama that will see the former first couple create a wide range of content for the streaming service.The deal, talks for which had first been reported in March, will encompass a wide...
Updated: 3 hours ago
Starbucks: You donít have to buy coffee to sit in our cafes or use our restrooms

Starbucks: You donít have to buy coffee to sit in our cafes or use our restrooms

Starbucks is now allowing people to use its restrooms and sit in its cafes and patios even if they do not buy anything.The coffee giant on Saturday announced its new policy, which says that customers, including those who did not make a purchase, can ...
Updated: 8 hours ago

Hernando Business Digest for May 25

Business digestBrieflyHOSPITAL UPGRADES SURGICAL SYSTEM: Oak Hill Hospital recently acquired the latest da Vinci Xi Surgical System, which has broader capabilities than prior generations of the system. The new system is designed with the goal of furt...
Published: 05/21/18
Camping without the hassle: New service rents you all the gear you need, plus the car

Camping without the hassle: New service rents you all the gear you need, plus the car

One day in April, I returned from a camping trip - a quick 24 out of the city - and ran a load of laundry. Whatís more telling is what I didnít do.I didnít hose down a muddy tent, I didnít soak a shoddily cleaned pot, and I categorically did not empt...
Published: 05/19/18
Romano: Save your money, sports betting wonít be in Florida anytime soon

Romano: Save your money, sports betting wonít be in Florida anytime soon

It is the middle of the day and the beginning of the off-season at Tampa Bay Downs. That means the action is limited to simulcast wagering, and that means the televisions outnumber the bettors.The parimutuel industry is long past its heyday in Americ...
Published: 05/19/18
Son of Crabby Billís founder leaves complex legacy of troubled projects and good deeds

Son of Crabby Billís founder leaves complex legacy of troubled projects and good deeds

SOUTH PASADENA ó Like his father, who founded the Crabby Billís seafood restaurant chain, John Loder Sr. had a larger-than-life personality. That was one reason he dived into the real estate business, becoming a well-known, if at times controversial ...
Updated: 6 hours ago
Global Tampa Bay initiative seeks to grow direct foreign investment through expanded regional teamwork

Global Tampa Bay initiative seeks to grow direct foreign investment through expanded regional teamwork

TAMPA ó A decade ago, the Great Recession put Hillsborough and Pinellas countiesí efforts to grow their foreign exports on hold.But since then those efforts have returned, gained support and momentum, expanded the range of their ambition and are now ...
Updated: 11 hours ago