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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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