Has oil price predicted stock returns for over a century?

This paper contributes to the debate on the role of oil prices in predicting stock returns. The novelty of the paper is that it considers monthly time-series historical data that span over 150. years (1859:10-2013:12) and applies a predictive regression model that accommodates three salient features of the data, namely, a persistent and endogenous oil price, and model heteroscedasticity. Three key findings are unraveled: first, oil price predicts US stock returns. Second, in-sample evidence is corroborated by out-sample evidence of predictability. Third, both positive and negative oil price changes are important predictors of US stock returns, with negative changes relatively more important. Our results are robust to the use of different estimators and choice of in-sample periods.

Oil price and stock returns of consumers and producers of crude oil

In this paper we investigate how differently stock returns of oil producers and oil consumers are affected from oil price changes. We find that stock returns of oil producers are affected positively by oil price changes regardless of whether oil price is increasing or decreasing. For oil consumers, oil price changes do not affect all consumer sub-sectors and where it does, this effect is heterogeneous. We find that oil price returns have an asymmetric effect on stock returns for most sub-sectors. We devise simple trading strategies and find that while both consumers and producers of oil can make statistically significant profits, investors in oil producer sectors make relatively more profits than investors in oil consumer sectors.

Ionic liquid adsorption and nanotribology at the silica-oil interface: hundred-fold dilution in oil lubricates as effectively as the pure ionic liquid

The remarkable physical properties of ionic liquids (ILs) make them potentially excellent lubricants. One of the challenges for using ILs as lubricants is their high cost. In this article, atomic force microscopy (AFM) nanotribology measurements reveal that a 1 mol % solution of IL dissolved in an oil lubricates the silica surface as effectively as the pure IL. The adsorption isotherm shows that the IL surface excess need only be approximately half of the saturation value to prevent surface contact and effectively lubricate the sliding surfaces. Using ILs in this way makes them viable for large-scale applications.

High-efficient production of boron nitride nanosheets via an optimized ball milling process for lubrication in oil

Although tailored wet ball milling can be an efficient method to produce a large quantity of two-dimensional nanomaterials, such as boron nitride (BN) nanosheets, milling parameters including milling speed, ball-to-powder ratio, milling ball size and milling agent, are important for optimization of exfoliation efficiency and production yield. In this report, we systematically investigate the effects of different milling parameters on the production of BN nanosheets with benzyl benzoate being used as the milling agent. It is found that small balls of 0.1-0.2 mm in diameter are much more effective in exfoliating BN particles to BN nanosheets. Under the optimum condition, the production yield can be as high as 13.8% and the BN nanosheets are 0.5-1.5 μm in diameter and a few nanometers thick and of relative high crystallinity and chemical purity. The lubrication properties of the BN nanosheets in base oil have also been studied. The tribological tests show that the BN nanosheets can greatly reduce the friction coefficient and wear scar diameter of the base oil.

Hybrid high internal phase emulsion (HIPE) organogels with oil separation properties

Hybrid HIPE organogels were prepared from pre-formed hybrid organogels, which were formed from a triblock ionomer and Fe3O4 nanoparticles via charge-driven assembly. Magnetic materials can be obtained from these hybrid HIPE organogels simply by removal of solvents, and these materials have been confirmed to be excellent candidates for absorption of oil from water.

Oil-spill cleanup: the influence of acetylated curaua fibers on the oil-removal capability of magnetic composites

A magnetic resin based on cardanol, furfural, and curaua fibers was prepared and characterized. The material could be used in oil-spill cleanup processes, because of its aromatic/aliphatic balance. The resin was prepared through bulk polycondensation of cardanol and furfural in the presence of curaua fibers and maghemite nanoparticles. Hydrophobicity of the curaua fibers was improved by acetylation, increasing the oil-absorbing capability of the composites. The obtained magnetic composites were studied by Fourier-transform infrared spectroscopy, X-ray diffraction, and thermogravimetric analysis. Degree of cure, magnetic force, and oil-removal capability tests were also performed. The results show that the composites possess an elevated cure degree in addition to a considerable magnetic force. The materials exhibit a good oil removal capability in the presence of a magnetic field, which is improved by the use of acetylated curaua. In the best case, the composite filled with maghemite and curaua can remove 12 parts of oil from water.

A multi-criteria decision approach to decommissioning of offshore oil and gas infrastructure

Thousands of the world's offshore oil and gas structures are approaching obsolescence and will require decommissioning within the next decade. Many nations have blanket regulations requiring obsolete structures to be removed, yet this option is unlikely to yield optimal environmental, societal and economic outcomes in all situations. We propose that nations adopt a flexible approach that allows decommissioning options to be selected from the full range of alternatives (including 'rigs-to-reefs' options) on a case-by-case basis. We outline a method of multi-criteria decision analysis (Multi-criteria Approval, MA) for evaluating and comparing alternative decommissioning options across key selection criteria, including environmental, financial, socioeconomic, and health and safety considerations. The MA approach structures the decision problem, forces explicit consideration of trade-offs and directly involves stakeholder groups in the decision process. We identify major decommissioning options and provide a generic list of selection criteria for inclusion in the MA decision process. To deal with knowledge gaps concerning environmental impacts of decommissioning, we suggest that expert opinion feed into the MA approach until sufficient data become available. We conducted a limited trial of the MA decision approach to demonstrate its application to a complex and controversial decommissioning scenario; Platform Grace in southern California. The approach indicated, for this example, that the option 'leave in place intact' would likely provide best environmental outcomes in the event of future decommissioning. In summary, the MA approach will allow the environmental, social, and economic impacts of decommissioning decisions to be assessed simultaneously in a transparent manner. © 2013 Elsevier Ltd.

Fish assemblages associated with oil industry structures on the continental shelf of north-western Australia

This study provides the first assessment of fish associations with oil and gas structures located in deep water (85-175 m) on Australia's north-west continental shelf, using rare oil industry video footage obtained from remotely operated vehicles. A diverse range of taxa were observed associating with the structures, including reef-dependent species and transient pelagic species. Ten commercially fished species were observed, the most abundant of which was Lutjanus argentimaculatus, with an estimated biomass for the two deepest structures (Goodwyn and Echo) of 109 kg.

Psychological oil price barrier and firm returns

In this paper, we investigate the psychological barrier effect induced by the oil price on firm returns when the oil price reaches US$100 or more per barrel. We find evidence of the negative effect of the US$100 oil price barrier for: (a) the entire sample of 1559 firms listed on the American stock exchanges; (b) both foreign and domestic firms, with domestic firms significantly more affected; (c) the 10 different sizes of firms, with the smaller firms less affected compared to the larger firms; and (d) 17 sectors of firms, with firms in the utilities, mining, and administration sectors being the least affected.

Optimisation of the microencapsulation of tuna oil in gelatin-sodium hexametaphosphate using complex coacervation.

The microencapsulation of tuna oil in gelatin-sodium hexametaphosphate (SHMP) using complex coacervation was optimised for the stabilisation of omega-3 oils, for use as a functional food ingredient. Firstly, oil stability was optimised by comparing the accelerated stability of tuna oil in the presence of various commercial antioxidants, using a Rancimat™. Then zeta-potential (mV), turbidity and coacervate yield (%) were measured and optimised for complex coacervation. The highest yield of complex coacervate was obtained at pH 4.7 and at a gelatin to SHMP ratio of 15:1. Multi-core microcapsules were formed when the mixed microencapsulation system was cooled to 5 °C at a rate of 12 °C/h. Crosslinking with transglutaminase followed by freeze drying resulted in a dried powder with an encapsulation efficiency of 99.82% and a payload of 52.56%. Some 98.56% of the oil was successfully microencapsulated and accelerated stability using a Rancimat™ showed stability more than double that of non-encapsulated oil.

Doing democracy in difficult times: oil unions and the Maliki Government

This chapter focuses on the specific case of the Iraqi Federation of Oil Unions (IFOU), Iraq’s largest and most powerful independent workers’ union. Leaving aside IFOU’s resistance of foreign occupation and its fight against privatisation, this chapter focuses on the tensions between IFOU and the Maliki government and examines the extent to which IFOU has served as a bulwark against the state’s rising authoritarianism. The chapter begins with a brief history of Iraqi trade unions under the Baathist regime and concludes by arguing that examples of civil society movements such as IFOU are perhaps Iraq’sonly real hope for genuine democratisation.

A superamphiphobic coating with an ammonia-triggered transition to superhydrophilic and superoleophobic for oil-water separation

Superhydrophilic and superoleophobic materials are very attractive for efficient and cost-effective oil-water separation, but also very challenging to prepare. Reported herein is a new superamphiphobic coating that turns superhydrophilic and superoleophobic upon ammonia exposure. The coating is prepared from a mixture of silica nanoparticles and heptadecafluorononanoic acid-modified TiO2 sol by a facile dip-coating method. Commonly used materials, including polyester fabric and polyurethane sponge, modified with this coating show unusual capabilities for controllable filtration of an oil-water mixture and selective removal of water from bulk oil. We anticipate that this novel coating may lead to the development of advanced oil-water separation techniques.

Lipase-catalysed incorporation of EPA into emu oil: formation and characterisation of new structured lipids

Partial hydrolysis of emu oil was performed using Thermomyces lanuginosus lipase to remove some shorter chain fatty acids. Then eicosapentaenoic acid (EPA) was incorporated into the modified emu oil using either Lipozyme RMIM or Lipozyme TLIM to produce new EPA enriched structured lipids. Using Isooctane as a reaction solvent increased the level of EPA incorporation, which was higher with RMIM than with TLIM. TLIM incorporated EPA almost exclusively into the sn-1,3 positions, whereas RMIM incorporated EPA at sn-1,3 and sn-2 positions in an almost statistical ratio. Both structured lipids were less oxidatively stable than emu oil.

Isolation and development of oil producing microorganisms including Thraustochytrids from Indian and Australian marine biodiversity

 The author isolated and characterized several Thraustochytrid strains from Indian and Australian marine biodiversity and compared these strains for their application in biodiesel and DHA production depend on their fatty acid profile. Strain having best productivity was further optimized for the coproduction of DHA and biodiesel.