Looking at David Tauber’s Presentation on the North American Energy Landscape
From a high of $113 per barrel in March 2012, Carbon Black Oil Feedstock (CBOF) has fallen to a low of $70 in October 2014. This has benefited the carbon black consumer by lowering the formula calculated prices of the products they buy. Rough estimates suggest that prices are down by nearly $0.22 per pound. While many global factors play a role in the overall CBOF market, the biggest factor has been the bonanza of new oil and gas wells successfully drilled in the U.S. Thanks to improvements in fracking technology, North America has become the world’s largest producer of oil and gas. Having more resources, closer to refineries and the consumer, has lowered costs and lessened US dependence on foreign sources.
The market paper linked below, from the 2013 Asia Pacific Carbon Black World Conference, further explains the underlying factors in this North American boom. Titled, “The Changing Energy Landscape of North America and its affect on Carbon Black Feedstock,” this paper was prepared and presented by Mr. David Tauber. While this presentation provides details behind the oil boom and the refining of this newfound oil, it also provides a cautionary message tied to a notable downside associated with this new oil. Being a lighter crude and having less carbon content, this new oil is not showing the same yields in carbon black production as that of our historic sources, thus increasing the cost on some level.
We think you will enjoy the slides of the presentation and encourage you to contact us with questions and to get further explanation.