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API: U.S. October Oil Use Up 1.3% vs Year Earlier at 18.953 Million B/D

*API: U.S. October Gasoline Use Up 2.6% vs Year Earlier *API: U.S. Gasoline Use of 8.928 Million B/D Hit Three-Year October High *API: U.S. Crude Oil Output at 25-Year October High *API: U.S. Crude, Products Imports at 17-Year October Low *API: U.S. Crude Oil Stocks Highest at End-October Since 1930 By David Bird NEW YORK–U.S. oil demand rose 1.3% year-on-year in October to 18.953 million barrels a day, led by a three-year high in gasoline use in the month, the American Petroleum Institute said Thursday. The trade group said U.S. crude oil output continued to climb, reducing the need for foreign supplies. “Domestic crude oil production hit a 25-year October high last month, while imports fell to a 17-year October low,” said John Felmy, API’s chief economist. “The United States continues to meet more and more of its demand with energy produced here at home.” Demand for gasoline, the […]

Posted On : Published By : Tom Whipple
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New report: jobs from shale gas development greatly exaggerated by industry

There’s a new report out from the  Multi-State Shale Research Collaborative , which consists of independent, nonpartisan research and policy organizations in New York, Ohio, Pennsylvania, Virginia, and West Virginia that monitor employment trends, tax policy, economic development, and the community impacts of energy extraction in the Marcellus and Utica Shale region. The Collaborative has an advisory committee of academic experts. The new report is entitled: Exaggerating the Employment Impacts of Shale Drilling : How and Why . It contains a lot of great data and important analysis. Among the key findings: Between 2005 and 2012, an estimated 3.7 jobs were created for every well […]

Posted On : Published By : ASPO-USA
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Canada's NEB Forecasts 75% Rise In Crude Oil Output By 2035

Canadian oil production will rise by nearly 75 percent to 5.8 million barrels per day by 2035, the country’s National Energy Board (NEB) said in a report on Thursday, assuming the infrastructure is built to transport crude to export markets. The NEB, Canada’s energy regulator, said the discount on Canadian crude versus the West Texas Intermediate benchmark will likely remain volatile if extra takeaway capacity is not built, potentially affecting production growth. Congested pipelines and booming production mean Canadian crude tends to get bottlenecked in Alberta, pushing prices lower. Western Canada Select, the benchmark heavy crude blend, traded as low as $41.50 per barrel below WTI earlier this month. Throughout 2011 and 2012 the WCS price traded on average nearly $19 per barrel below the WTI. “A key assumption in this analysis is that there will be sufficient infrastructure to deliver […]

Posted On : Published By : Tom Whipple
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Canada’s NEB Forecasts 75% Rise In Crude Oil Output By 2035

Canadian oil production will rise by nearly 75 percent to 5.8 million barrels per day by 2035, the country’s National Energy Board (NEB) said in a report on Thursday, assuming the infrastructure is built to transport crude to export markets. The NEB, Canada’s energy regulator, said the discount on Canadian crude versus the West Texas Intermediate benchmark will likely remain volatile if extra takeaway capacity is not built, potentially affecting production growth. Congested pipelines and booming production mean Canadian crude tends to get bottlenecked in Alberta, pushing prices lower. Western Canada Select, the benchmark heavy crude blend, traded as low as $41.50 per barrel below WTI earlier this month. Throughout 2011 and 2012 the WCS price traded on average nearly $19 per barrel below the WTI. “A key assumption in this analysis is that there will be sufficient infrastructure to deliver […]

Posted On : Published By : Tom Whipple
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PM Cameron's green gaffe sparks uproar

British advocacy group Friends of Earth said Thursday it wouldn’t be surprised if the prime minister did issue a call to back off renewable energy policies. “It would come as little surprise if David Cameron did tell aides to ditch the ‘green crap’ — his government has been attacking environmental policies for years,” Friends of Earth Policy Director Craig Bennett said in a statement. British newspaper The Sun quoted an unnamed Cameron ally as saying the prime minister made those comments in connection to levies used to support renewable energy projects but could also lead to higher consumer prices. Deputy Prime Minister Nick Clegg dismissed the allegations Thursday, the Guardian newspaper reported. Cameron’s administration had pledged to push efforts to provide more renewable energy options to British consumers. Bennett called on the Cameron administration to fight the urge to drift back toward the “toxic” […]

Posted On : Published By : Tom Whipple
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PM Cameron’s green gaffe sparks uproar

British advocacy group Friends of Earth said Thursday it wouldn’t be surprised if the prime minister did issue a call to back off renewable energy policies. “It would come as little surprise if David Cameron did tell aides to ditch the ‘green crap’ — his government has been attacking environmental policies for years,” Friends of Earth Policy Director Craig Bennett said in a statement. British newspaper The Sun quoted an unnamed Cameron ally as saying the prime minister made those comments in connection to levies used to support renewable energy projects but could also lead to higher consumer prices. Deputy Prime Minister Nick Clegg dismissed the allegations Thursday, the Guardian newspaper reported. Cameron’s administration had pledged to push efforts to provide more renewable energy options to British consumers. Bennett called on the Cameron administration to fight the urge to drift back toward the “toxic” […]

Posted On : Published By : Tom Whipple
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Apache cuts freshwater use in Permian fracking

In Irion County, where Apache is probing for the Wolfcamp shale, the company is tapping the Santa Rosa formation for brackish water supplies that lie between 600 and 800 feet below ground in this part of the Permian, just below freshwater aquifers. The brackish water complements existing efforts to treat and recycle flowback and produced water. “We’re not using freshwater out here,” Lucian Wray, production manager for Apache’s South Permian region, said of the company’s Barnhart operating area. “We are recycling 100% of our produced water. We don’t dispose of any of it,” he told Reuters. The tactic is saving Apache money in trucking and disposal costs. Water costs alone can eat up around 10% of a well’s budget, according to IHS CERA. Apache says it costs about 29 cents per barrel to treat flowback water, an enormous discount to the roughly $2.50 per barrel it costs to dispose […]

Posted On : Published By : ASPO-USA
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Suncor expects 'strong year' for oil production

Suncor Energy Chief Executive Officer Steve Williams said his company is set for a strong year in 2014 in terms of oil sands production. “We’re set for a strong year of continued production growth,” he said in a statement Wednesday. Suncor said it would spend $7.8 billion next year, about half of which would go toward projects like its Fort Hills oil sands project in northern Alberta. The company said it expects oil sands production to increase next year, which would offset the production loss from the sale of some of its assets in 2013. Exploration and production from its Canadian assets should result in the total production next year of at least 53,000 barrels of oil equivalent per day. “We will be diligent in pursuing only those projects we believe will deliver long-term shareholder value,” Williams said. “This approach applies not only […]

Posted On : Published By : Tom Whipple
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Suncor expects ‘strong year’ for oil production

Suncor Energy Chief Executive Officer Steve Williams said his company is set for a strong year in 2014 in terms of oil sands production. “We’re set for a strong year of continued production growth,” he said in a statement Wednesday. Suncor said it would spend $7.8 billion next year, about half of which would go toward projects like its Fort Hills oil sands project in northern Alberta. The company said it expects oil sands production to increase next year, which would offset the production loss from the sale of some of its assets in 2013. Exploration and production from its Canadian assets should result in the total production next year of at least 53,000 barrels of oil equivalent per day. “We will be diligent in pursuing only those projects we believe will deliver long-term shareholder value,” Williams said. “This approach applies not only […]

Posted On : Published By : Tom Whipple
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Working Around Keystone XL, Suncor Energy Steps Up Oil Production in Canada

Suncor Energy, Canada’s top petroleum producer, announced on Thursday that it would expand its oil production in 2014 by 10 percent in another sign that the Obama administration’s delay in approving the Keystone XL pipeline extension is not holding back growth in the western Canadian oil sands fields. “We’re set for a strong year of continued production,” Suncor’s chief executive, Steven W. Williams, said. The company announced a capital spending program of $7.45 billion for 2014, $477 million more than it had forecast earlier this year. Suncor, which is based in Calgary, produces oil and gas around Canada, and has operations in North Africa and the North Sea. But its oil sands operations are the main driver for the company. In the most recent quarter, its oil sands output rose 16 percent from the year before for a record of 396,000 barrels a day, nearly 20 percent of the […]

Posted On : Published By : Tom Whipple