Brent oil prices decreased by 3.47% or US$2.64, as prices fell this week. Oil traded on June 21, 2018 at a price of $73.44 per barrel relative to US$76.08 last week. Brent oil began the year at US$68.07 per barrel.
87 Octane prices increased week over week, by 1.26% (JMD$1.66). Additionally 90 Octane also increased by 1.23% or (JMD$1.66) week over week. 87 Octane and 90 Octane opened the year at J$121.04 and J$123.88 respectively and now trades at J$133.78 and J$136.62 per litre respectively.
Figure 1: Petrojam, U.S. Gulf Coast Conventional Gasoline Regular and Brent Crude Oil 1 Year Price History
This Week in Petroleum
Reserve additions of last year were the largest compared to 2013 while expenditures were approximately half as shown by oil company
According to the annual reports of 83 production and exploration companies, ‘in the year 2017, a group of the world’s largest publicly traded oil and natural gas producers included more hydrocarbons to their resource base relative to any year since 2013. Together, they added a net 8.2 billion barrels of oil equivalent (BOE) to their proved reserves during 2017 totalling a 277 billion BOE at the end of the year. Spending for exploration and development (E&D) rose in 2017 by 11% from the levels of 2016 but remained 47% less than 2013 levels.”
“Of the 83 companies, 18 held more than 80% of the 277 billion BOE in proved reserves at the close of 2017. Many of these companies have global operations whilst some are national oil companies with reserves concentrated in their home countries including Russia, China, and Brazil. Proved reserves change from annually because of revisions to existing reserves, extensions and discoveries of new resources, purchases and sales of proved reserves, and production.”
“Organic additions to proved reserves, or reserves added through improved recovery and extensions and discoveries, are linked directly with capital expenditures in E&D. Proved reserves acquired through purchases do not represent E&D capital investment, but rather reflect transfers of assets between companies. Revisions to proved reserves are usually more significantly influenced by movements in crude oil and natural gas prices rather than by E&D investment.”
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