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Exxon preparing to drill in Kurdistan

Exxon preparing to drill in Kurdistan A drilling rig towers above the Pirmam exploration block, where ExxonMobil is days away from spudding its first well in Iraq’s autonomous Kurdistan region.The start of drilling will cheer Kurdish leaders, who saw Exxon’s entry to Kurdistan – over the objections of federal oil officials in Baghdad – as an implicit endorsement of both the Kurdistan Regional Government’s (KRG) independent oil sector and its wider ambitions for almost total autonomy within the federal structure of the Iraqi … This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Boosted by foreign Shi'ite militia, Assad's forces advance on Aleppo

AMMAN (Reuters) – Syrian government forces backed by foreign Shi’ite Muslim militia advanced on rebels in the northern city of Aleppo on Tuesday, bent on recapturing districts from opposition brigades weakened by infighting, activists said. They said that rebels saw the threat of President Bashar al-Assad wresting back Aleppo, Syria’s former commercial hub and once most populous city, as so grave that Islamist brigades, including an al Qaeda affiliate, had declared an emergency and summoned all fighters to head to the fronts. After 2-1/2 years of conflict, which started when Assad’s forces fired on pro-democracy demonstrators and escalated into a full-blown civil war, the fighting has settled into a rough stalemate in which scores of people are killed every day. Aleppo has been divided roughly in half by the warring parties for much of the conflict but the government is determined to reassert total control to solidify a foothold […]

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Boosted by foreign Shi’ite militia, Assad’s forces advance on Aleppo

AMMAN (Reuters) – Syrian government forces backed by foreign Shi’ite Muslim militia advanced on rebels in the northern city of Aleppo on Tuesday, bent on recapturing districts from opposition brigades weakened by infighting, activists said. They said that rebels saw the threat of President Bashar al-Assad wresting back Aleppo, Syria’s former commercial hub and once most populous city, as so grave that Islamist brigades, including an al Qaeda affiliate, had declared an emergency and summoned all fighters to head to the fronts. After 2-1/2 years of conflict, which started when Assad’s forces fired on pro-democracy demonstrators and escalated into a full-blown civil war, the fighting has settled into a rough stalemate in which scores of people are killed every day. Aleppo has been divided roughly in half by the warring parties for much of the conflict but the government is determined to reassert total control to solidify a foothold […]

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Private Donors’ Funds Add Wild Card to War in Syria

AL SUBAYHIYAH, Kuwait — The money flows in via bank transfer or is delivered in bags or pockets bulging with cash. Working from his sparely furnished sitting room here, Ghanim al-Mteiri gathers the funds and transports them to Syria for the rebels fighting President Bashar al-Assad. Mr. Mteiri — one of dozens of Kuwaitis who openly raise money to arm the opposition — has helped turn this tiny, oil-rich Persian Gulf state into a virtual Western Union outlet for Syria’s rebels, with the bulk of the funds he collects going to a Syrian affiliate of Al Qaeda. One Kuwait-based effort raised money to equip 12,000 rebel fighters for $2,500 each. Another campaign , run by a Saudi sheikh based in Syria and close to Al Qaeda, is called “Wage Jihad With Your Money.” Donors earn “silver status” by giving $175 for 50 sniper bullets, or “gold status” by giving […]

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Israel PM calls for joint Western effort to reduce transport sector's oil dependency

Jerusalem (Platts)–13Nov2013/326 am EST/826 GMT Israel’s Prime Minister Benjamin Netanyahu has called for a concerted effort by Western countries to reduce their dependency on oil in the transportation sector. Speaking at an alternative energy conference in Tel Aviv Tuesday evening, the Israeli leader said that oil remains a tremendous source of international instability. He added that oil acts as a weight holding down economic development. In 2011, the government had approved a $420 million 10-year program aimed at sharply reducing oil consumption in the country’s transportation sector, Platts previously reported. The funds were to be allocated for research and development of alternative fuels. They would not focus on an individual technology, but will make funds available to a wide range of ventures. Article continues below… Request a free trial of: Oilgram News Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, […]

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Israel PM calls for joint Western effort to reduce transport sector’s oil dependency

Jerusalem (Platts)–13Nov2013/326 am EST/826 GMT Israel’s Prime Minister Benjamin Netanyahu has called for a concerted effort by Western countries to reduce their dependency on oil in the transportation sector. Speaking at an alternative energy conference in Tel Aviv Tuesday evening, the Israeli leader said that oil remains a tremendous source of international instability. He added that oil acts as a weight holding down economic development. In 2011, the government had approved a $420 million 10-year program aimed at sharply reducing oil consumption in the country’s transportation sector, Platts previously reported. The funds were to be allocated for research and development of alternative fuels. They would not focus on an individual technology, but will make funds available to a wide range of ventures. Article continues below… Request a free trial of: Oilgram News Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, […]

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Chevron tapped for TAPI pipeline

ISLAMABAD, Nov. 12 (UPI) — U.S. energy company Chevron may come on board to help build a multilateral gas pipeline eastward from Turkmenistan, official sources told the Express Tribune. The Pakistani newspaper reported Tuesday a possible role for Chevron in the Turkmenistan- Afghanistan -Pakistan-India pipeline is on the agenda of a bilateral meeting this week between U.S. and Pakistani officials in Washington. “During the energy group meeting, the issue relating to awarding [the] TAPI gas pipeline contract to Chevron will come under discussion,” sources told the newspaper on condition of anonymity. The same sources said participating countries, notably Pakistan, were called on to award pipeline construction contracts to Chevron. Iran and Pakistan are negotiating terms for the construction of a bilateral pipeline designated for Iranian gas. Pakistan says it needs to secure more sources of energy to help compensate for a domestic energy sector crippled by an aging infrastructure. […]

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Facing Shortages, Uzbekistan to Increase Turkmen Oil Imports

Drivers in Uzbekistan have long complained about gasoline shortages. With little explanation, it seems the secretive government is trying to address mounting domestic gasoline shortages and panic at local petrol stations. Tashkent intends to increase imports of oil from neighboring Turkmenistan, Moscow-based Fergana News reported on November 11, citing Uznefteprodukt, the state-run refining company.  It’s unclear how large the increase will be, however. Repeated calls to Uznefteprodukt went unanswered on November 12. The company’s website confirms the plans for imports, but does not name figures.  Oil output in Uzbekistan fell from 78,000 barrels per day (bpd) in 2010 to 68,000 bpd in 2012, according to the BP Statistical Review of World Energy for 2013, largely due to aging infrastructure and limited investments. Over the same period, consumption increased from 75,000 bpd to 82,000 bpd, BP said.  Neither Uzbekistan nor Turkmenistan disclose energy import or export figures. Uzbekistan also imports […]

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Sudan devalues currency by 22.6% amid dollar shortages

Share/Bookmark Sudan’s central bank has devalued the Sudanese pound by 22.6 percent against the dollar, the second such move in little over a year as the African country struggles with hard currency shortages. Sudan’s economy has been in turmoil since South Sudan’s secession in 2011 took away of three-quarters of oil production. Oil was the driver of the economy and source for dollars needed for food and other essential imports. Sudan produces too little to feed its around 32 million people. Bidding prices for the pound were stated as 5.6871 for one dollar, compared with 4.4 previously, central bank data on Reuters terminals showed on Monday. Ask prices were 5.7155. In 2011, the official rate was around 3. The central bank has been trying to bridge a ballooning gap with the black market rate where one dollar costs 7.8 pounds as import firms struggle to get their hand on […]

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Brazil to Boost Oil Exports as Output Triples, IEA Says

Brazil will triple oil production by 2035 and become a major exporter as it develops the Americas’ largest discoveries in almost four decades, the International Energy Agency said. Latin America’s largest economy will produce 6 million barrels a day in 2035 and account for one-third of the increase in global crude output, the Paris-based agency said. The IEA forecasts that Brazil will be the world’s sixth-largest producer, up from 12th now. The new production will come mostly from deposits trapped under a layer of salt more than two miles beneath the Atlantic Ocean’s floor, the so-called pre-salt fields. Deep-water fields including Libra and Lula, the largest oil discoveries in the Western Hemisphere since Mexico ’s Cantarell field in 1976, have attracted investments from Royal Dutch Shell Plc (RDSA) and Total SA. (FP) “The increase in oil and gas production is dependent on highly complex and capital-intensive deepwater developments, requiring […]

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Venezuela's Maduro poised to get decree powers

AP Photo CARACAS, Venezuela (AP) — Venezuela’s National Assembly on Tuesday stripped an opposition lawmaker of her immunity from prosecution in a case of alleged corruption, clearing the way for the legislature to grant the president special power to enact laws by decree. President Nicolas Maduro has said he will use the extra authority to intensify actions against opponents and businesses that he says are waging “economic war” trying to destabilize the South American country. As a result of the assembly’s vote, which was widely expected, lawmaker Maria Aranguren will have to step down while she faces prosecution on what she says are trumped up embezzlement charges. Aranguren, who broke with the late President Hugo Chavez’s government in 2012, will be replaced by a lawmaker more in line with the government’s wishes, likely giving the president the crucial 99th vote he needs to ensure passage of the decree powers. […]

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Venezuela’s Maduro poised to get decree powers

AP Photo CARACAS, Venezuela (AP) — Venezuela’s National Assembly on Tuesday stripped an opposition lawmaker of her immunity from prosecution in a case of alleged corruption, clearing the way for the legislature to grant the president special power to enact laws by decree. President Nicolas Maduro has said he will use the extra authority to intensify actions against opponents and businesses that he says are waging “economic war” trying to destabilize the South American country. As a result of the assembly’s vote, which was widely expected, lawmaker Maria Aranguren will have to step down while she faces prosecution on what she says are trumped up embezzlement charges. Aranguren, who broke with the late President Hugo Chavez’s government in 2012, will be replaced by a lawmaker more in line with the government’s wishes, likely giving the president the crucial 99th vote he needs to ensure passage of the decree powers. […]

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Ecuador Court Affirms and Halves Chevron Judgment

QUITO, Ecuador—Ecuador’s highest court affirmed an environmental verdict against Chevron Corp. CVX -0.89% Chevron Corp. U.S.: NYSE $ 120.00 -1.08 -0.89% Nov. 12, 2013 4:00 pm Volume (Delayed 15m) : 6.05M AFTER HOURS $ 120.06 +0.06 +0.05% Nov. 12, 2013 7:47 pm Volume (Delayed 15m): 867,941 P/E Ratio 9.75 Market Cap $232.86 Billion Dividend Yield 3.33% Rev. per Employee $3,588,150 11/12/13 Chevron, Brazil’s Petrobras St… 11/01/13 Chevron Pumps Up Its Spending 11/01/13 The Race for Oil, and Chevron’… More quote details and news » CVX in Your Value Your Change Short position but cut the judgment against the oil giant in half. Ecuador’s National Court of Justice ruled late Tuesday that Chevron must pay $9.5 billion to plaintiffs in the country’s rainforests over decades-old contamination. The verdict had stood at $19 billion, but the court tossed out punitive damages that were imposed in 2011 after Chevron refused to apologize […]

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CNPC, PetroChina to Buy Peru Oil, Gas Assets From Petrobras for US$2.6 Bln

By Yvonne Lee HONG KONG–China National Petroleum Corp., the country’s largest integrated oil producer, will pay US$2.6 billion for oil and gas assets in Peru, in the latest foray by China’s state-owned oil firms into Latin America. CNPC and its unit PetroChina Co. (0857.HK) have reached a deal with Brazil’s state-owned Petroleo Brasileiro SA (PBR), or Petrobras, to buy Petrobras Energia Peru S.A., which owns three oil and gas blocks in Peru, the Chinese firm said Wednesday. China has looked to Latin America and Africa in recent years to meet its energy needs, with domestic oil output slowing in the past decade as its fields mature. PetroChina has said it aims for overseas production to account for half of its business by 2015. PetroChina produced a total 67.5 million barrels of oil equivalent overseas in the first half of 2013, up 8% on year and accounting for 9.7% of […]

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Brazil to Triple Oil Output to 6 Million Barrels/Day by 2035 — IEA

RIO DE JANEIRO–Brazil’s recently discovered offshore oil fields will triple the country’s current crude oil output to six million barrels per day by 2035, making Latin America’s largest country a leading producer and exporter, the International Energy Agency said Tuesday. Brazil discovered billions of barrels of crude trapped under a thick layer of salt beneath the Atlantic Ocean off the country’s southeast coast, finds that will make the country the world’s sixth-largest producer and a major oil exporter, the IEA said. Development of the fields, however, will be complex and expensive when compared with other areas holding large oil reserves such as the Middle East or Russia, the IEA warned. Brazil currently produces about two million barrels of oil per day. In October, Brazil sold rights to develop one of the fields–the Libra prospect–to a group led by state-run energy giant Petroleo Brasileiro SA (PBR, PETR4.BR) that also included […]

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CNOOC ups ownership to 50% of CSG-LNG Queensland project

China National Offshore Oil Corp. (CNOOC) will move to a 50% interest in Train 1 of the Queensland Curtis Island coal seam gas-LNG project, operated by BG Group. BG sold a further 40% of the project to the Chinese company for $1.93 billion to add to its existing 10% interest. Under a separate agreement, BG is to supply CNOOC with another 5 million tonnes/year of LNG for 20 years beginning in 2015. This LNG will come from BG’s global portfolio of assets. The Queensland Curtis LNG deal includes CNOOC receiving a 20% interest in reserves and resources of some BG permits in the Walloon Fairway region of the Surat basin taking its share there to 25%. In addition CNOOC gets a 25% equity in other BG permits in the Bowen and Surat basins. CNOOC will have the option to participate in up to 25% in one of the possible […]

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China vows 'decisive' role for markets, results by 2020

BEIJING (Reuters) – China’s ruling party pledged to let markets play a "decisive" role in allocating resources as it unveiled a reform agenda for the next decade on Tuesday, looking to overhaul the world’s second-largest economy to drive future growth. China aims to achieve "decisive results" in its reform push by 2020, with economic changes a central focus of overall reforms, the ruling Communist Party said in a communiqué released by state media at the end of a four-day closed-door meeting of the party’s 205-member Central Committee. "The core issue is to straighten out the relationship between government and the market, allowing the market to play a decisive role in allocating resources and improving the government’s role," the party said in its statement. It added that it would set up a central leading team for "comprehensively deepening reform," responsible for "designing reform on an overall basis, arranging and co-ordinating […]

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China vows ‘decisive’ role for markets, results by 2020

BEIJING (Reuters) – China’s ruling party pledged to let markets play a "decisive" role in allocating resources as it unveiled a reform agenda for the next decade on Tuesday, looking to overhaul the world’s second-largest economy to drive future growth. China aims to achieve "decisive results" in its reform push by 2020, with economic changes a central focus of overall reforms, the ruling Communist Party said in a communiqué released by state media at the end of a four-day closed-door meeting of the party’s 205-member Central Committee. "The core issue is to straighten out the relationship between government and the market, allowing the market to play a decisive role in allocating resources and improving the government’s role," the party said in its statement. It added that it would set up a central leading team for "comprehensively deepening reform," responsible for "designing reform on an overall basis, arranging and co-ordinating […]

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Japan passes law to launch reform of electricity sector

TOKYO (Reuters) – Japan’s upper house passed legislation on Wednesday to start the most ambitious reform of its electricity sector since 1951, a process prompted by the Fukushima nuclear crisis that may end with the break-up of powerful regional monopolies. The reforms, including the establishment of a national grid and the liberalization of the power market for homes, are central to Prime Minister Shinzo Abe’s drive to overhaul the economy, as high energy costs threaten to derail efforts to reverse decades of stagnation. Regional monopolies, including Tokyo Electric Power Co and Kansai Electric Power Co, supply almost 98 percent of Japan’s electricity and terms for access to their transmission lines make it onerous for new entrants. Wrenching control of transmission from the monopolies to create a national grid became a big issue after the March 2011 earthquake and tsunami that sparked the Fukushima disaster and highlighted an inability to […]

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Essar Billionaires Cut Exports on Refiner Glut: Corporate India

Billionaire brothers Shashikant and Ravikant Ruia, who run India’s second-biggest oil refinery, will increase fuel sales at home as capacity additions in China and the Middle East shrink export margins. Essar Oil Ltd. (ESOIL) will reduce overseas sales from its 400,000-barrel-a-day plant as it predicts local demand for gasoline and diesel will rise in the year ending March 31, Managing Director Lalit Kumar Gupta said in an interview. The end of an above-normal monsoon in India will help revive diesel demand in Asia ’s second-biggest energy consumer, he said. “Domestic sales will rise and protect margins,” Gupta, 53, said by phone from New Delhi. “Demand in India will increase, and local refineries will be needed.” New processing capacities in China and the Middle East are set to increase supplies of petroleum products to Asia and erode earnings of export-focused refineries including Essar Oil and Reliance Industries Ltd. (RIL) , […]

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Shale’s Effect on Oil Supply Is Forecast to Be Brief

WASHINGTON — The boom in oil from shale formations in recent years has generated a lot of discussion that the United States could eventually return to energy self-sufficiency, but according to a report released Tuesday by the International Energy Agency, production of such oil in the United States and worldwide will provide only a temporary respite from reliance on the Middle East. The agency’s annual World Energy Outlook, released in London, said the world oil picture was being remade by oil from shale, known as light tight oil, along with new sources like Canadian oil sands, deepwater production off Brazil and the liquids that are produced with new supplies of natural gas. “But, by the mid-2020s, non-OPEC production starts to fall back and countries from the Middle East provide most of the increase in global supply,” the report said. A high market price for oil will help stimulate drilling […]

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U.S. to Be Top Oil Producer by 2015 on Shale, IEA Says

The U.S. will surpass Russia and Saudi Arabia as the world’s top oil producer by 2015, and be close to energy self-sufficiency in the next two decades, amid booming output from shale formations, the IEA said. Crude prices will advance to $128 a barrel by 2035 with a 16 percent increase in consumption supporting the development of so-called tight oil in the U.S. and a tripling in output from Brazil, the International Energy Agency said today in its annual World Energy Outlook. The role of the Organization of Petroleum Exporting Countries will recover in the middle of the next decade as other nations struggle to repeat North America’s success with exploiting shale deposits, the agency predicted. “As production goes up and imports go down, it does have positive macroeconomic effects for the U.S.,” said Mike Wittner , head of oil research at Societe Generale SA in New York. “It’s […]

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Ethanol Advances for Fourth Day With Stockpiles at Lows

Ethanol extended its longest streak of gains in almost two months with stockpiles at a record low for the time of year. Futures jumped 0.7 percent as the Energy Information Administration may report tomorrow that supply of the motor fuel declined last week. Ethanol stockpiles are down 26 percent from this year’s high in January, according to the Energy Department’s statistical arm. “We do have fairly tight supply,” said Mike Blackford, a consultant at INTL FCStone in Des Moines , Iowa . “It’s had a better bias, a firmer tone.” Denatured ethanol for December delivery rose 1.2 cents to $1.718 a gallon on the Chicago Board of Trade. The gain was the fourth in a row, the most since Sept. 19. Prices have dropped 22 percent this year. Gasoline for December delivery dipped 0.11 cent to $2.5954 a gallon on the New York Mercantile Exchange . The contract covers […]

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Consumers Get Relief at Pump

U.S. gasoline prices have fallen to their lowest level in nearly 33 months amid a boom in domestic oil drilling, leaving consumers with some extra disposable income just in time for the holiday-shopping season. Tuesday’s national average price of $3.18 a gallon—26 cents below a year ago—was the lowest since Feb. 22, 2011, when it was $3.17, according to AAA, which tracks daily gas prices. The automobile club predicted that the national average could fall close to $3 a gallon by year’s end because of abundant supplies, declining seasonal demand and lower crude-oil prices. The respite at the pump was welcomed by Heidi Pickerell, president and chief executive of Meals on Wheels of Shawnee and Jefferson Counties Inc. in Kansas, who said the prices made it easier to find volunteers to deliver for the nonprofit group. “It certainly does help out with the budget, particularly now as we are […]

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Cnooc Wins Right to Build LNG Export Plant at Canadian Site

CALGARY—The Canadian subsidiary of Chinese state-owned energy giant Cnooc Ltd. 0883.HK -2.62% CNOOC Ltd. Hong Kong $ 14.86 -0.40 -2.62% Nov. 13, 2013 4:01 pm Volume : 62.98M P/E Ratio 8.09 Market Cap $692.04 Billion Dividend Yield 3.36% Rev. per Employee $33,147,300 11/12/13 Cnooc Wins Right to Build LNG … 10/25/13 Chinese Energy Deals Focus on … 10/22/13 Chinese Hunt for Oil in Brazil… More quote details and news » 0883.HK in Your Value Your Change Short position has been awarded exclusive rights to proceed with a proposed terminal to export liquefied natural gas from Canada’s Pacific coast, local government and company officials said Tuesday. Known as Aurora LNG, the project is one of nearly a dozen proposals for plants to export surplus natural gas from British Columbia, none of which have been formally approved yet by their corporate sponsors. In addition to Calgary-based Nexen Inc., a wholly owned […]

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How North America's Oil Boom Is Hurting Farmers In Western Canada

“We are not getting the rail capacity we need to move the product,” Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents major grain companies, said. The 81 million-tonne harvest and increased rail traffic from the energy sector has created a backup of grain sitting in elevators waiting to be transported to the market. The best way to transport the crude oil is by rail since there is no significant pipeline network in place, John Felmy, chief economist at the American Petroleum Institute, told International Business Times. “So, I think [railroading] will fit in well in terms of all of our shipping aspirations,” he said. “Definitely, increased shipments of oil by rail are having an impact,” Blair Rutter, executive director of the Western Canadian Wheat Growers Association, which represents farmers, said. “The fact that we don’t have [enough] pipelines is hurting the Canadian farmer in getting […]

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How North America’s Oil Boom Is Hurting Farmers In Western Canada

“We are not getting the rail capacity we need to move the product,” Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents major grain companies, said. The 81 million-tonne harvest and increased rail traffic from the energy sector has created a backup of grain sitting in elevators waiting to be transported to the market. The best way to transport the crude oil is by rail since there is no significant pipeline network in place, John Felmy, chief economist at the American Petroleum Institute, told International Business Times. “So, I think [railroading] will fit in well in terms of all of our shipping aspirations,” he said. “Definitely, increased shipments of oil by rail are having an impact,” Blair Rutter, executive director of the Western Canadian Wheat Growers Association, which represents farmers, said. “The fact that we don’t have [enough] pipelines is hurting the Canadian farmer in getting […]

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Ireland ready for offshore oil, gas auction

DUBLIN, Ireland, Nov. 12 (UPI) — Irish Natural Resources Minister Fergus O’Dowd said his government aims to attract international investors to an offshore oil and gas auction next year. “It is important then that the state provides suitable opportunities for international investors and provides the right environment to encourage industry to take the risk associated with investing in exploration,” he said at a conference Monday in Dublin. O’Dowd said at the conference the government would open parts of its territorial waters up for auction starting in April. The auction will run through September 2015 and include an offer for a two-year license for exploration. No commercial discoveries have been made offshore Ireland since 1996. An energy exploration team led by Exxon Mobil announced in April it started drilling in the Porcupine Basin, a first for deepwater work off the Irish coast. O’Dowd said there “no guarantees” for offshore success, […]

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Eurozone industrial output down in September

BRUSSELS (AP) — Official figures show industrial output across the 17-country eurozone fell a monthly rate of 0.5 percent in September, a decline that may mean economic growth across the region came to a standstill in the third quarter of the year. The fall reported Wednesday by Eurostat, the EU’s statistics office, was larger than expected and means the sector weighed on third quarter growth. September’s fall follows a 1 percent rise in August that only compensated for an equivalent decline in July. The industrial figures come a day ahead of the first estimate for third quarter growth. A run of disappointing figures have reined in expectations – before Wednesday’s data, the consensus in the markets was that the eurozone eked out growth for the second straight quarter, albeit a paltry 0.2 percent. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, […]

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Analysis: Deflation threat in Europe may prompt investment rethink

LONDON (Reuters) – The threat of deflation in the euro zone could reverse a major investment trend of 2013, drawing funds out of stocks and into government bonds and cash. Europe is still some way from a negative inflation rate, let alone a Japanese-style deflationary spiral – the policymakers’ nightmare in which falling prices weaken demand, leading to wage cuts and even lower prices. But a warning light is already flashing, with euro zone inflation registering a shock drop last month that prompted an interest rate cut. This year’s "Great Rotation" flows away from bonds have propelled many stock markets to multi-year or record highs and fuelled a rally in property and other relatively high-yielding assets. But it’s a potential money loser in an environment of weak inflation or even outright price declines. With chronic price falls, investors become ultra-risk averse. "Deflation would follow from lower growth than we […]

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Oil Falls as China Reform Talks Weigh

Crude-oil futures edged lower in Asian trade Tuesday as the U.S. dollar strengthened, while sentiment was cautious ahead of the outcome of a key meeting of top Chinese leaders on the country’s economic reform. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $94.83 a barrel at 0550 GMT, down $0.31 in the Globex electronic session. December Brent crude on London’s ICE Futures exchange fell $0.23 to $106.17 a barrel. Oil had settled higher in overnight floor trade on signs of strength in the U.S. economy and after weekend talks between Iran and Western leaders failed to produce a formal agreement on Tehran’s nuclear program. However, Iran Monday agreed to allow the United Nations to conduct additional inspections of its nuclear sites. The secretary general of the Organization of the Petroleum Exporting Countries, Abdalla El-Badri, was also hopeful that sanctions against Iran […]

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Natural-Gas Futures Gain for Fifth-Straight Sessions on Cold Weather

–Price up 1.5 cents to settle at $3.574/mmBtu, most since Oct. 31 –Gas up 3.5% over five sessions; longest streak since March –Near-term cold across eastern half of U.S., before warming trend (Adds price chart.) By David Bird NEW YORK–Natural-gas futures rose for a fifth day Monday as the eastern U.S. felt its strongest chill of the season, raising expectations of higher demand for gas-fired home heating. Natural gas for December delivery on the New York Mercantile Exchange settled 1.5 cents higher, at $3.574 million British thermal units, the highest price since Oct. 31. Prices gained 12.9 cents, or 3.7%, over the past five sessions as the colder outlook formed. That is the longest string of gains since mid-March when a lingering stretch of late-winter cold temperatures fueled a rally. Analysts said the potential for the current rally to continue looks limited, as forecasts call for a broad return […]

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WTI Oil Drops From November High as Crude Stockpiles Seen Rising

West Texas Intermediate fell from the highest closing price this month amid speculation crude stockpiles rose to the most since June in the U.S., the world’s biggest oil consumer. Futures slid as much as 0.4 percent in New York after two days of gains. U.S. crude supplies climbed for an eighth week, adding 500,000 barrels in the period ended Nov. 8, according to a Bloomberg News survey before a report from the Energy Information Administration this week. Iran and United Nations atomic inspectors signed their first accord in six years yesterday, giving monitors broader access to nuclear facilities in the Persian Gulf country. “The continued surplus in U.S. domestic production will put pressure on the downside” for crude prices, said David Lennox, a resource analyst at Fat Prophets in Sydney. “Inventory levels are heading in the wrong direction.” WTI for December delivery dropped as much as 34 cents to […]

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Crude Climbs as Meeting Ends Without Iran Nuclear Accord

Crude advanced after Iran and six world powers concluded a meeting in Geneva without coming to an agreement on the nation’s nuclear program, tempering projections of a resolution to the dispute that has cut Iranian oil exports. Brent futures rose 1.2 percent in London while West Texas Intermediate oil in New York gained 0.6 percent. Iran’s talks with the five permanent members of the United Nations Security Council and Germany will resume Nov. 20 in Geneva. The International Atomic Energy Agency signed the first accord in six years with Iran today, giving the monitors broader access to nuclear facilities in the Persian Gulf country. “Crude is up because we’ve gotten over the fear of an Iranian nuclear deal,” said Tim Evans , an energy analyst at Citi Futures Perspective in New York. “Prices came off over the last few weeks on the prospect of an agreement and the lifting […]

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Petronas Stands by Brent Even After Manipulation Claim

Petroliam Nasional Bhd., Malaysia ’s state energy company, remains committed to using Brent as a benchmark for buying and selling oil even amid accusations of price fixing, its chief executive said. “I don’t see any manipulation,” Chief Executive Officer Shamsul Azhar Abbas told reporters in Kuala Lumpur today. “Brent is still the most acceptable benchmark.” Four energy traders claimed in a lawsuit last month that some of the world’s biggest oil companies including BP Plc, Statoil ASA and Royal Dutch Shell Plc conspired with Morgan Stanley and energy traders such as Vitol Group to fix spot prices for Brent for more than a decade. The North Sea oil price as assessed by Platts, a unit of New York-based McGraw Hill Financial Inc., is used to price more than half the world’s crude including Australia ’s Cossack, Malaysia’s Tapis and Castilla in Colombia . The case is one of at […]

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Tony Hayward, After Deepwater Horizon Debacle, Seeks Oil in Somalia

When London’s Genel Energy GENL.LN -0.92% Genel Energy PLC U.K.: London GBp 960.05 -8.95 -0.92% Nov. 12, 2013 9:16 am Volume : 22,722 P/E Ratio 0.26 Market Cap GBp2.23 Billion Dividend Yield N/A Rev. per Employee GBp2,292,700 09/09/13 Genel Pulls Out Somaliland Sta… More quote details and news » GENL.LN in Your Value Your Change Short position PLC decided last year to search for oil in Somalia, it didn’t negotiate with the country’s internationally recognized government in Mogadishu. Instead, Genel Chief Executive Tony Hayward flew to a city about 500 miles north: Hargeisa, the dusty capital of breakaway Somaliland. He visited the separatist president at home and told the resources minister that Genel could spend about $100 million prospecting there. “We will find oil,” said Mr. Hayward at the July 2012 meeting, according to him and the resources minister, Hussein Abdi Dualeh. Somaliland gave Genel permission to prospect. Mr. […]

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Defying predictions after BP's huge spill in 2010, offshore drilling has taken off

After the Deepwater Horizon oil spill in the Gulf of Mexico in 2010, the largest in U.S. history, there was a lot of talk about the possibility of offshore drilling being scaled back. Instead, the opposite has happened. Since the moratorium imposed on deep-water drilling in the U.S. in May 2010 was lifted in October of that year, offshore exploration and drilling in the Gulf of Mexico has continued uninterrupted and taken on new momentum, as it has around the world. Today, deep-water drilling—500 feet or more below the surface of the sea—remains the next big frontier for oil and natural-gas production. Some environmentalists have expressed concerns that expanded offshore drilling poses new risks of spills and other damage to the environment. “We still don’t know all the impact of the Deepwater Horizon spill on the ecosystem,” says Sean Dixon, a water-policy attorney at environmental-protection group Clean Ocean Action […]

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Defying predictions after BP’s huge spill in 2010, offshore drilling has taken off

After the Deepwater Horizon oil spill in the Gulf of Mexico in 2010, the largest in U.S. history, there was a lot of talk about the possibility of offshore drilling being scaled back. Instead, the opposite has happened. Since the moratorium imposed on deep-water drilling in the U.S. in May 2010 was lifted in October of that year, offshore exploration and drilling in the Gulf of Mexico has continued uninterrupted and taken on new momentum, as it has around the world. Today, deep-water drilling—500 feet or more below the surface of the sea—remains the next big frontier for oil and natural-gas production. Some environmentalists have expressed concerns that expanded offshore drilling poses new risks of spills and other damage to the environment. “We still don’t know all the impact of the Deepwater Horizon spill on the ecosystem,” says Sean Dixon, a water-policy attorney at environmental-protection group Clean Ocean Action […]

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Typhoon in Philippines Casts Long Shadow Over U.N. Talks on Climate Treaty

Olai Ngedikes, the lead negotiator for an alliance of small island nations, said in a statement that the typhoon, named Haiyan, which by some estimates killed 10,000 people in one city alone, “serves as a stark reminder of the cost of inaction on climate change and should serve to motivate our work in Warsaw.” Naderev Saño, the chief representative of the Philippines at the conference, said he would stop eating in solidarity with the storm victims until “a meaningful outcome is in sight.” “What my country is going through as a result of this extreme climate event is madness; the climate crisis is madness,” Mr. Saño said. “We can stop this madness right here in Warsaw.” His declaration, coupled with the scope of the disaster, moved many of the delegates to tears. Yet scientists remain cautious about drawing links between extreme storms like this typhoon and climate change. There […]

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Iran Says It Has Agreed to ‘Road Map’ With U.N. Agency on Nuclear Inspections

PARIS — The International Atomic Energy Agency said on Monday that Iran had agreed to resolve all outstanding issues with the agency and would allow international inspectors “managed access” to two important nuclear facilities that have not been regularly viewed. But the promise of wider scrutiny did not extend to one of the most contentious locations: the Parchin military site southwest of Tehran. Inspectors from the agency, the United Nations’ nuclear watchdog, have been trying for months to see selected areas of that site, where they suspect that Iran at one time tested triggering devices for nuclear weapons. “This is an important step forward to start with, but much more needs to be done,” Yukiya Amano, the director general of the agency, told reporters in Tehran. The agreement came on the heels of talks between Iran and six world powers over Iran’s nuclear program. Those talks ended without an […]

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IMF Lowers 2013 Mena Growth Forecasts on Oil Production, Instability

DUBAI (Zawya Dow Jones)–The economic outlook for the Middle East has weakened this year amid expectations of lower oil production in crude-exporting countries and continuing political upheaval in Syria and Egypt, the International Monetary Fund said Tuesday. Oil exporters are dealing with domestic supply disruptions and lower global demand, which has led to reduced output even as political instability puts upward pressure on prices, the IMF said in a regional economic outlook. The IMF slashed its 2013 economic growth forecast for the region, which includes the Middle East, North Africa, Afghanistan and Pakistan, to 2.3% from a May prediction of 3%. The IMF now expects the region’s oil production to fall this year for the first time since the global financial crisis because of disruptions to output in Iraq and Libya and a “modest fall” in production in Saudi Arabia, one of the world’s biggest exporters. While growth is […]

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Iran Agrees to Give UN Monitors Broader Inspection Powers

By Jonathan Tirone – 2013-11-11T13:58:53Z Iran and United Nations atomic inspectors signed their first accord in six years, giving the monitors broader access to nuclear facilities in the Persian Gulf country. The International Atomic Energy Agency and Iran agreed “to implement practical measures” aiding inspections, agency director Yukiya Amano said at a Tehran briefing broadcast by Iran’s Press TV. Included in the accord is access to Iran’s largest uranium mine, said Ali Akbar Salehi , who heads the Islamic republic’s atomic program. The pact followed three days of talks in Geneva between Iran and world powers that failed to clinch a broader accord to relieve international sanctions on Iran in exchange for Iranian restrictions on its nuclear program. The IAEA’s decade-long investigation into alleged past nuclear-weapons work has underpinned international concerns about a program that has cast the specter of war and proliferation across the Middle East . Iran […]

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China's pace at oil fields frustrates Iran

TEHRAN, Nov. 11 (UPI) — Chinese energy companies aren’t moving fast enough to develop the Yadavaran and Azadegan oil fields in southern Iran, an Iranian executive said. Abdolreza Hossainnejad, managing director of Iran’s Petroleum Engineering and Development Co., said Sunday the China Petroleum & Chemical Corp., known also as Sinopec, wasn’t working fast enough to meet the development criteria for Yadavaran. “We had planned to raise output from Yadavaran oil field to 85,000 barrels per day over a 59-month period but Chinese companies were willing to achieve the figure in a 74-month period,” he told the Iranian Oil Ministry’s official website Shana. China National Petroleum Corp is contracted to help develop the Azadegan complex, one of Iran’s largest oil fields. It straddles the border with Iraq. Hossainnejad said CNPC is behind schedule there but provided few details. He said drilling rigs need to be procured for the field and […]

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China’s pace at oil fields frustrates Iran

TEHRAN, Nov. 11 (UPI) — Chinese energy companies aren’t moving fast enough to develop the Yadavaran and Azadegan oil fields in southern Iran, an Iranian executive said. Abdolreza Hossainnejad, managing director of Iran’s Petroleum Engineering and Development Co., said Sunday the China Petroleum & Chemical Corp., known also as Sinopec, wasn’t working fast enough to meet the development criteria for Yadavaran. “We had planned to raise output from Yadavaran oil field to 85,000 barrels per day over a 59-month period but Chinese companies were willing to achieve the figure in a 74-month period,” he told the Iranian Oil Ministry’s official website Shana. China National Petroleum Corp is contracted to help develop the Azadegan complex, one of Iran’s largest oil fields. It straddles the border with Iraq. Hossainnejad said CNPC is behind schedule there but provided few details. He said drilling rigs need to be procured for the field and […]

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Obama faces worry at home, abroad over Iran talks

AP Photo WASHINGTON (AP) — President Barack Obama’s hopes for a nuclear deal with Iran now depend in part on his ability to keep a lid on both hard-liners on Capitol Hill and anxious allies abroad, including Israel, the Persian Gulf states and even France. Each of the wary parties is guided in some measure by domestic political interests. But they also share concerns that Obama may want a breakthrough with Iran so badly that he would be willing to accept a deal that prematurely eases economic pressure on Iran and gives the Islamic republic space to pursue a nuclear weapon. “All of us want to see diplomacy,” Sen. Bob Corker, R-Tenn., told NBC News. “But we’re also concerned about an administration that seems really ready to jump into the arms of folks and potentially deal away some of the leverage we have.” Indeed, there’s little question Obama desires […]

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Baker Hughes Suspends Iraq Operations After Protest

By Michael Calia Baker Hughes Inc. (BHI) said Monday it suspended operations in Iraq following a protest incident last week at a facility belonging to one of the oilfield services company’s subsidiaries. Baker Hughes said there was a significant disruption of business, but there were no injuries and the facility, near Basrah, was secured. The incident is under investigation, the company added. The company also said it issued “force majeure” notices to its customers. A force majeure clause is often included in contracts, giving companies leeway on deliveries when extraordinary incidents occur. “Baker Hughes supports the Iraqi oil industry,” Chairman and Chief Executive Martin Craighead said. “And the safety and welfare of our employees are our top priorities.” Mr. Craighead said the company hopes to resolve the issue in a “timely manner” and resume operations in Iraq when it’s safe to do so. Baker Hughes last month said its […]

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Iraq keeps eye on Kurd-jihadist battle in Syria

A Syrian Kurdish policeman patrols the border between Syria and Iraq, on October 14, 2013 Baghdad (AFP) – As the latest jihadist-Kurdish military showdown eases in northeast Syria, Baghdad is keeping a close watch on a battle which threatens even greater instability in Iraq. Kurdish forces and Al-Qaeda-linked groups have for weeks fought over territory, with the Kurds taking over a key border point late last month. But with the likelihood of more fighting to follow, Baghdad is worried of jihadists securing a wider corridor between eastern Syria and western Iraq. “This border point is significant for both Al-Qaeda, and the (Syrian) Kurds,” said Ali al-Haidari, a Baghdad-based security analyst. “At the same time, it threatens the Iraqi government’s security as well.” “For Al-Qaeda, it is a border point through which they smuggle explosives, fighters and suicide bombers.” Iraq and Syria share a 600-kilometre (375-mile) border, and jihadists and […]

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Abu Dhabi oil expansion backed by $52 bil in committed investment: execs

Abu Dhabi (Platts)–12Nov2013/215 am EST/715 GMT Executives of the UAE’s Abu Dhabi National Oil Company and affiliated operating partnerships have disclosed about $52 billion of investment commitments intended to achieve a government target of raising Abu Dhabi’s oil production capacity to 3.5 million b/d by 2017, even as the emirate undergoes what promises to be a major shift in its concession structure. The investment total includes major contracts already awarded in the past two to three years. But the bulk of the spending is planned for the next three years, as the UAE’s major oil producing emirate intensifies its push to lift output capacity from its current level of, at most, 2.9 million b/d, mostly from aging fields with high depletion rates. ADNOC Deputy Director of Strategy and Coordination, Omar al-Suwaidi, told delegates attending the Abu Dhabi International Petroleum Exhibition and Conference in the UAE capital Monday that its […]

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Libya calls people to liberate oil sector

TRIPOLI, Libya, Nov. 11 (UPI) — Libyan Prime Minister Ali Zeidan called on the people to work to “liberate” oil and natural gas facilities crippled by strikes and insurgency. “Women, children, men and even old people should support the government and go to the oil ports and terminals to liberate them from the criminals and protect their only sustenance,” he was quoted by the Libya Herald as saying Sunday. Libya has struggled to return to a pre-civil war oil production level in excess of 1 million barrels per day. Rival groups in the east of the country announced early November they declared independence for the region known as Cyrenaica, which hosts some of Libya’s key oil terminals. Labor strikes have shut down processing facilities in the west of the country. The Libyan newspaper reported Zeidan gave strikers a 10-day deadline to end their protests. He said the situation may […]

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Libya Expects Tanker to Load Crude at Hariga Oil Port Tomorrow

A tanker is expected to dock and load crude from a Libyan oil export terminal that has been shut for much of the past two months, according to a state company official and ship tracking data. The vessel will pick up at least 600,000 barrels of crude from the country’s eastern port of Hariga tomorrow, for shipment to a European destination, Mohamed Elharari, a spokesman for the state-run National Oil Corp. said today by phone from Tripoli, without elaborating on the tanker’s name or its charterer. Shiptracking data on Bloomberg show that the British Falcon is headed to Hariga, after being moored at another Libyan port, Zawiya, from Oct. 27 to Nov. 9. Libyan oil output was 250,000 barrels a day yesterday Elharari said. That’s a fraction of the 1.6 million produced prior to the country’s civil war. The nation, holder of Africa ’s biggest oil reserves, is losing […]

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