Entries in Oil (130)


Billionaire Oil Executive’s Divorce Could Be Most Expensive of All Time

ABC News(NEW YORK) -- The man that Forbes calls the 35th richest American is getting divorced, and it could split up control of the nation’s fastest growing oil company and result in a record-breaking settlement.

Harold Hamm, 67, is a self-made man worth over $11 billion, in large part due to his oil company, Continental Resources. His second wife, Su Ann Hamm, 56, filed for divorce on May 19, 2012 after she discovered he had cheated on her.

The settlement could include part of Hamm’s 68 percent share in Continental Resources, which she helped him build.

“This is clearly going to be watched on Main Street as well as Wall Street, and internationally,” Su Keenan at Bloomberg told ABC News.

After details of the divorce were leaked, Continental Resources issued a statement to help calm any nervous investors claiming that the divorce “is not anticipated to have any impact or effect on the Company’s business or operations.”

Hamm was the senior energy advisor on Mitt Romney’s presidential campaign and is so wealthy that the candidate allegedly shied away from appearing in public with him. Hamm is a major promoter of fracking.

Copyright 2013 ABC News Radio


Oil Production Could Make US Energy Independent by 2035

Comstock/Thinkstock(NEW YORK) -- The news is all good from the International Energy Agency about the United States' energy future.

The agency predicted on Monday that the U.S. will become the top producer of oil globally within five years.

Furthermore, America is on a path to become a leading oil exporter in less than 20 years and should be able to end its dependence on most foreign fuel sources by 2035.

While all this may seem too good to be true since the country now imports about 20 percent of oil and natural gas to fulfill its energy needs, the IAE credits a variety of reasons for America's sudden surge as an energy powerhouse.  Among them: dramatic gains in oil, shale gas and bio-energy production due to hydraulic fracturing, more commonly known as fracking.

Meanwhile, vehicle fuel efficiency is improving steadily and significant inroads have been made in the clean energy industry.

Copyright 2012 ABC News Radio


Gas Price Drops as Hurricane Sandy Keeps Drivers off Road

Jupiterimages/Thinkstock(WASHINGTON) -- The weekly national average gas price fell about 2 cents to $3.57 for a gallon of regular, the Energy Department’s Energy Information Administration reported on Monday, though Hurricane Sandy may affect East Coast refineries enough to push prices higher later.

Oil prices were falling before the financial markets closed on Monday due to Hurricane Sandy, and analysts are expecting a drop in demand as drivers stay off the road as a result of the storm.

Patrick DeHaan, senior petroleum analyst with gas price tracking website GasBuddy, said the company has seen a major drop in price reports submitted by drivers in areas affected by Sandy. Normally, GasBuddy receives hundreds of thousands of gas price updates from the 50 states, he said.

In Washington, D.C., price reports dropped 55 percent compared to last Monday.

DeHaan said Hurricane Sandy may not affect gasoline prices significantly, “but long term changes will depend on how hard the region is hit.”

If refineries in the region restart operations quickly after the storm subsides, he said he expects minimal pricing increases.

“If there are long term outages at refineries, there may be a more pronounced increase,” he said.

After Hurricane Irene in August 2011, the national average rose about 8 cents a gallon, according to GasBuddy.

“For Sandy, I’d expect even less of an increase at this point,” he said.

Prices may rise 5 to 15 cents a gallon in the Northeast, he said, “but the biggest impact remains to be seen after Sandy moves out.”

Copyright 2012 ABC News Radio


US Oil Production Booming

Comstock/Thinkstock(NEW YORK) -- A boom in domestic oil production over the past four years has enabled the U.S. to move up to second place behind Saudi Arabia in the list of the world's leading oil producers and it likely won't be long before America takes the top spot.

Currently, the U.S. pumps close to 11 million barrels of oil a day, which sounds impressive until you realize that the country uses 17 million barrels daily, meaning importing petroleum will be a necessity for some time to come.

However, high prices and innovative drilling methods are giving the U.S. a leg up on the rest of the world and by 2020, the daily output could be around 13 million to 15 million barrels per day.

This has deeper repercussions than just relying less on foreign sources.  It also means that the economies of oil-producing states will grow exponentially since an estimated 1.3 million jobs will be created, adding to the 1.7 million that already exist in the U.S.

Copyright 2012 ABC News Radio


Gas Prices Fall Again

Jupiterimages/Thinkstock(WASHINGTON) -- Gas prices are working their way down again.

The weekly average price of a gallon of regular gas is $3.82, down three cents compared to a week ago, according to the Department of Energy.  This price is still up 34 cents from this time a year ago.

The West Coast is working through supply issues, so prices there are also down nearly two cents compared to a week ago.  The West Coast has the most expensive gas in the country, with an average price of $4.39 a gallon.

The Gulf Coast has the least expensive gas in the country at $3.54 a gallon.

Copyright 2012 ABC News Radio


No Gas Price Relief in Sight for Motorists

Jupiterimages/Thinkstock(NEW YORK) -- The global thirst for oil may be good news for drillers and refiners, but it’s hard on U.S. motorists.

Despite a recent drop in the price of West Texas Intermediate crude, and growing U.S. oil production, gasoline prices in most of the country are still high.  The average is around $3.80 a gallon -- higher in some East and West Coast states, and lower in the middle part of the country.

Motorists should not expect much price relief soon because the U.S. prices are linked to the global market.  Another problem: a shortage of refiners in some regions.  

Despite a 10 percent plus rise in domestic oil output in 2012, the strong supply is more than met by soaring demand from overseas.  The cost of Brent crude -- the benchmark price for the international market -- is up 7 percent this year.

Copyright 2012 ABC News Radio


Average Price of Gas Down 5 Cents

Jupiterimages/Thinkstock(WASHINGTON) -- The much-anticipated gas price drop is here.
The weekly average price of a gallon of regular gas is $3.83, down five cents compared to a week ago, according to the Department of Energy.  This price is still up 32 cents from a year ago.
Crude oil has been trading lower in recent days, so analysts say these lower prices are likely here to stay for a bit.

Copyright 2012 ABC News Radio


Are Lower Gas Prices Finally on the Way?

iStockphoto/Thinkstock(NEW YORK) -- Oil prices have been sharply lower this week, down about seven percent since Friday.
In New York trading Wednesday, oil settled at $91.98, down $3.31 for the day.
The recent run-up in the price of oil may have been a bit of an anomaly.  Analysts have been saying for weeks that oil prices near the $100 mark seemed too high.
Oil prices may also be coming down because U.S. oil inventories reported by the Energy Information Administration were higher than expected.
The price drop is particularly significant because prices are coming down despite QE3. Critics of the Fed’s move often cite concerns that it could increase oil (and other commodity) prices.
Oil Wednesday had its lowest close since Aug. 3.   This confirms forecasts that gas prices will drop through the end of the month and the end of the year.

Copyright 2012 ABC News Radio


Gas Up 3 Cents; Odd Price Drop in Oil Markets

Jupiterimages/Thinkstock(WASHINGTON) -- The weekly average price of a gallon of regular gas is $3.88, up three cents compared to a week ago, according to the U.S. Department of Energy.  This price is up 28 cents from a year ago.

Gas prices are still expected to move lower in coming weeks, but protests in oil producing countries have pushed the price of crude oil higher, which contributes to higher gas prices.

The Fed’s QE3 announcement last week is another factor that could keep prices higher.

In the crude oil market Monday, prices dropped $3 in less than a minute in New York trading.  Brent crude, a separate crude oil market also saw a similar price plunge.

It was not immediately clear what caused the sharp drop, absent any concrete reason there is speculation that this was the result of a high frequency trade -- a massive computer trade.

Oil settled at $96.62 a barrel in New York trading Monday, down $2.38.

Copyright 2012 ABC News Radio


Gas Prices Inch Higher -- But Biggest Price Hikes of 2012 Likely Behind Us

Jupiterimages/Thinkstock(WASHINGTON) -- The weekly average price of a gallon of regular gasoline is $3.84, up nearly seven cents from a week ago, according to the U.S. Department of Energy, and up 17 cents from a year ago.

Prices have inched up in recent weeks because of refinery problems  brought on by Hurricane Isaac, which shut down most oil production and refining along the Gulf coast.

Experts expect prices to start coming down toward the end of  September.  The country should see some of the lowest gas prices  around Thanksgiving and Christmas, with the caveat that a surprising pick-up in the economy or unforeseen supply disruptions could keep prices higher.

Even with a price drop, we could still see the highest yearly average gas price ever in 2012.

Copyright 2012 ABC News Radio

ABC News Radio