Colver Technologies: Oil prices have fallen to their lowest levels since 2009 on the glut in supply and slowing global economic growth.
The ongoing rout in global oil prices took out another key level this week as international benchmark product Brent crude dipped below $60 for the first time since 2009 and small-scale GTL operator, Colver Technologies says the pain may not be over.
“There’s an awful lot of inventory out there and with consumers like China and the EU experiencing marked economic growth, it’s hardly surprising that prices have dropped 50% from their June highs,” said Gus Stuyvesant, Chief Operating Officer at Colver Technologies. “We think the Saudis are determined to put late arrivals to the US shale and Canadian tar sands party out of business by allowing prices to fall to a level where they will be economically unviable,” Stuyvesant added.
At OPEC’s recent meeting in Vienna, Austria on 27th November, the cartel, which represents producers responsible for 40% of the world’s crude oil production, decided to maintain production quotas despite protests from Iran, Nigeria and Venezuela.
The highest-profile casualty of the oil price rout has been Russia which, according to various estimates, needs oil priced above $90 a barrel in order to be profitable. The oil crisis together with international sanctions imposed on the country over its involvement with separatist groups in Eastern Ukraine has seen the country’s currency, the ruble, plunge to record lows against the US dollar.
Colver Technologies says it doesn’t expect Russia to be the last casualty of the oil price decline. “Venezuela is in serious trouble and civil unrest is mounting. The country may be forced to default on its public debt if prices do not recover quickly enough,’ said Stuyvesant.
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