Category:

Mexico’s President Signs Energy Overhaul Into Law

Mexican President Enrique Peña Nieto signed into law Friday a bill that ends the monopoly of state-owned Petróleos Mexicanos in oil and gas, opening new horizons for private-sector investment in the world’s ninth-largest oil producer. The energy bill, Mr. Peña Nieto’s wager to lift stagnant oil production and unleash economic growth, was passed by lawmakers in just 10 days. Congress gave final approval on Thursday of last week after two days of debates, and a required majority of state legislatures, 26 of the country’s 31, approved the constitutional amendment by this week. "This year, we Mexicans have decided to overcome myths and taboos in order to take a large stride toward the future," Mr. Peña Nieto said in a speech at the National Palace. Mr. Peña Nieto became the first president in more than 50 years to propose and pass in Congress changes to the constitution on the […]

Posted On : Published By : Tom Whipple
Category:

Venezuela to raise domestic gas prices?

Venezuelan President Nicolas Maduro signaled he wants to raise gasoline prices, which are considered among the cheapest in the world at about 5 cents a gallon. "Without a doubt there’s a distortion that we need to correct," Maduro said Wednesday, in reference to the country’s highly subsidized gasoline. His comments came during a rare meeting with opposition political leaders, the Wall Street Journal reports. While the government should continue offering "special" prices for the domestic market, the president said, the subsidy "should be an advantage, not a disadvantage." The gasoline subsidy costs Venezuela about $12.5 billion a year. The president spoke of a "plan that should take us some three years for setting prices of hydrocarbons and their derivatives in the national market." Maduro added it should be a "progressive plan with national consensus." Violent riots erupted the last time the Venezuelan government […]

Posted On : Published By : Tom Whipple
Category:

China reveals Rmb300bn cash injection to calm lenders

China has made a fresh attempt to head off a cash squeeze by announcing the injection of Rmb300bn of emergency money into its financial system, in an uncomfortable echo of a crunch earlier this year which rattled global markets. China’s central bank said it had provided funds to cash-strapped lenders over three consecutive days, disclosing more detail than on Thursday when it first confirmed it had made the highly unusual move of “short term liquidity operations”. China’s interbank lending rates soared dangerously high on Friday. Fears of a Chinese “hard” economic landing are top of many international investors’ 2014 worry lists, but financial markets have so far seen little danger of the country’s growth prospects being seriously derailed. Global stocks have been buoyed instead this week by the smooth launch of US Federal Reserve plans to “taper” , or scale back its asset purchases. “This may put China back […]

Posted On : Published By : Tom Whipple
Category:

Court Finds Pa. Gas Drilling Rule Violates State's Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple
Category:

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple
Category:

Baker Hughes: US drilling rig count drops to 1,768

The US drilling rig count relinquished 14 units to settle at 1,768 rigs working during the week ended Dec. 20, Baker Hughes Inc. reported. A decline of 16 units in land rigs to 1,687 was nicked by a 2-unit increase in offshore rigs to 61. Rigs drilling in inland waters were unchanged from a week ago at 20. Oil rigs were also down 16 units, settling at 1,395. Gas rigs collected 3 more units to reach 372. Rigs considered unclassified gave up 1 unit to settle at 1 total.   Directional drilling rigs fell 7 units to 223 while horizontal drilling rigs were down 5 to 1,140. In Canada, a 28-unit drop in oil rigs brought that total to 227 and the country’s overall total to 398. Unchanged from a week ago were gas rigs at 171. Canada has 14 mores rigs compared with this week last year.   […]

Posted On : Published By : Tom Whipple
Category:

Great Lakes coal traffic down 7.3% in November from a year ago

November coal traffic on the Great Lakes totaled 2,675,065 short tons, down 4.1% from October and down 7.3% from a year ago, according to data from the Lake Carriers’ Association. Year-to-date coal shipments on the lakes total 22.4 million st, down 2.7% compared with last year. The Cleveland-based association does not comment on its monthly coal figures, released Thursday. The largest terminal on the lake, the Midwest Energy Terminal in Superior, Wisconsin, shipped 1,556,945 st in November, down 4.9% from the prior month and down 6.5% from a year ago. Europe-bound exports from the terminal totaled 129,000 st in November, up 5.7% from October. Year-ago comparisons were not immediately available. Year-to-date coal exports from Superior total 1,504,000 st, up 20.1% from the same period last year, according to the association. Thunder Bay Terminals, in Thunder Bay, Ontario, shipped 33,382 st in November, down 33.1% […]

Posted On : Published By : Tom Whipple
Category:

US growth of 4.1% validates Fed move

The US economy grew at its fastest rate in nearly two years in the third quarter of 2013 after revisions boosted the annualised rate of expansion from 3.6 to 4.1 per cent , days after the Federal Reserve said it would start scaling back its $85bn-a-month monetary stimulus. Critically, almost all of the upward revision was due to stronger consumption, which grew at an annualised rate of 2 per cent rather than 1.4 per cent. This suggests greater underlying momentum in the economy. US stocks reacted strongly to put the S&P 500 on pace for its biggest weekly gain in two months, while the dollar was stronger and Treasury yields hovered just below two-year peaks. The S&P was up 0.5 per cent to close at 1,818.31 in New York. The revision in growth adds to a series of recent data that suggests the US economy is accelerating and validates […]

Posted On : Published By : Tom Whipple
Category:

Northern Gateway project welcomed — and called 'unsafe'

The Northern Gateway oil pipeline for western Canadian ports drew criticism despite support from the regulatory National Energy Board. Barry Robinson, a staff lawyer for advocacy group Ecojustice, said in a statement Thursday the project put the pristine western coastline at risk. "The Northern Gateway pipeline is an unsafe, unsustainable and unnecessary project, and it does not serve the national interest of this country," he said. Canadian pipeline company Enbridge received support from the energy board to build a pipeline designed to send 525,000 barrels of oil per day to ports in British Columbia. The Canadian Association of Petroleum Producers said that, with nearly all of the Canadian oil exports now headed to the United States building Northern Gateway to western Canadian ports was good for energy diversity. "Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value […]

Posted On : Published By : Tom Whipple
Category:

Northern Gateway project welcomed — and called ‘unsafe’

The Northern Gateway oil pipeline for western Canadian ports drew criticism despite support from the regulatory National Energy Board. Barry Robinson, a staff lawyer for advocacy group Ecojustice, said in a statement Thursday the project put the pristine western coastline at risk. "The Northern Gateway pipeline is an unsafe, unsustainable and unnecessary project, and it does not serve the national interest of this country," he said. Canadian pipeline company Enbridge received support from the energy board to build a pipeline designed to send 525,000 barrels of oil per day to ports in British Columbia. The Canadian Association of Petroleum Producers said that, with nearly all of the Canadian oil exports now headed to the United States building Northern Gateway to western Canadian ports was good for energy diversity. "Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value […]

Posted On : Published By : Tom Whipple
Category:

Putin: Greenpeace should not 'raise a clamor'

Russian President Vladimir Putin said holding a large group of Greenpeace activists should serve as a lesson to environmental groups. Greenpeace should not "raise a clamor but [work to] minimize ecological risks should they appear," Putin said in a statement published Thursday by state news agency RIA Novosti. Thirty people were arrested in September after Greenpeace activists scaled a drilling platform in the Russian arctic. The group was using its Arctic Sunrise ship to campaign against Gazprom’s operations in the northern Pechora Sea. Gazprom’s Prirazlomnaya rig was towed to the region last year as the first ice-resistant oil rig in the world. Greenpeace said it was concerned about the potential for an oil spill in the harsh arctic environment. The detained Greenpeace activists are to be released as part of a general amnesty measure signed by Putin this week. Putin said he encouraged dialogue […]

Posted On : Published By : Tom Whipple
Category:

Putin: Greenpeace should not ‘raise a clamor’

Russian President Vladimir Putin said holding a large group of Greenpeace activists should serve as a lesson to environmental groups. Greenpeace should not "raise a clamor but [work to] minimize ecological risks should they appear," Putin said in a statement published Thursday by state news agency RIA Novosti. Thirty people were arrested in September after Greenpeace activists scaled a drilling platform in the Russian arctic. The group was using its Arctic Sunrise ship to campaign against Gazprom’s operations in the northern Pechora Sea. Gazprom’s Prirazlomnaya rig was towed to the region last year as the first ice-resistant oil rig in the world. Greenpeace said it was concerned about the potential for an oil spill in the harsh arctic environment. The detained Greenpeace activists are to be released as part of a general amnesty measure signed by Putin this week. Putin said he encouraged dialogue […]

Posted On : Published By : Tom Whipple
Category:

British official: Shale could reduce Europe's dependence on imports

British Secretary of State for Energy and Climate Change Ed Davey said shale natural gas may help reduce the European energy sector’s dependence on Russia. It’s unlikely European countries would duplicate the U.S. shale progress because the geology and regulatory regimes are more complex "but exploiting shale gas Europe-wide has the potential to contribute significantly to energy security whilst reducing dependence on imports from outside the European Union, most notably from Russia," Davey said Thursday at University College London. Shale natural gas won’t be a "silver bullet" for members of the European community but will add diversity to the base of energy resources, he said. European consumers get about 20 percent of their natural gas needs from Russia. The British government this week published policy guidelines meant to provide energy companies with the information they need to exploit the country’s fledgling shale natural gas […]

Posted On : Published By : Tom Whipple
Category:

British official: Shale could reduce Europe’s dependence on imports

British Secretary of State for Energy and Climate Change Ed Davey said shale natural gas may help reduce the European energy sector’s dependence on Russia. It’s unlikely European countries would duplicate the U.S. shale progress because the geology and regulatory regimes are more complex "but exploiting shale gas Europe-wide has the potential to contribute significantly to energy security whilst reducing dependence on imports from outside the European Union, most notably from Russia," Davey said Thursday at University College London. Shale natural gas won’t be a "silver bullet" for members of the European community but will add diversity to the base of energy resources, he said. European consumers get about 20 percent of their natural gas needs from Russia. The British government this week published policy guidelines meant to provide energy companies with the information they need to exploit the country’s fledgling shale natural gas […]

Posted On : Published By : Tom Whipple
Category:

If Gasoline Cars Still Dominate in 2040, What Fuel Will They Burn?

Today, I came across two news stories that would seem to contradict each other. Both are based on newly released U.S. government agency reports. The first headline reads, " Gas-Powered Vehicles To Dominate Roads in 2040, Feds Say .’ Published on the car-centric Edmunds web site, it contends "In 2040, 78 percent of all cars and trucks will run on gasoline, compared to 82 percent in 2012." By contrast, "Plug-in hybrid and electric vehicles will take a backseat to gas-powered vehicles, accounting for just 1 percent of total sales in 2040…" Now some of this clearly has to do with the legacy effect. Many, if not most of the 15 million gasoline cars purchased this year will likely still be in service some twenty years from now. That’s 2034. Even the most optimistic projections of EV sales – that includes plug-in and fully electric models – sees them capturing […]

Posted On : Published By : Tom Whipple
Category:

Crude Oil Slips as Investors Shrug off Fed Taper

Crude-oil futures traded lower in Asian hours Friday as strong supply fundamentals capped any major gains on account of the U.S. Federal Reserve’s endorsement of economic recovery through its tapering. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $98.77 a barrel at 0734 GMT, down $0.27 in the Globex electronic session. February Brent crude on London’s ICE Futures exchange fell $0.28 to $110.01 a barrel. "The stance of U.S. monetary policy is well down the list of key drivers for the prices of most commodities," Julian Jessop, head of commodities research at Capital Economics, said in a note. He said commodity prices decoupled from other financial markets at least two years ago and supply has been the key driver of prices for most commodities, including oil, which should be pressured by ample supply in 2014. Oil markets are […]

Posted On : Published By : Tom Whipple
Category:

WTI-Brent Spread Narrowing as U.S. Exports Record Fuels: Energy

The price gap between the world’s two biggest oil benchmarks probably will narrow next year as U.S. exports of refined fuels reach a record and crude supply from the Middle East and North Africa expands. West Texas Intermediate, the U.S. benchmark, will average $6 a barrel less than Europe ’s Brent in 2014, from $11.65 now, according to Commerzbank AG. Goldman Sachs Group Inc. is predicting $9 and Barclays Plc $8.30. The world’s most-traded energy spread already contracted 39 percent from the eight-month high of $19.01 reached Nov. 27. While the U.S. is pumping the most crude oil in a quarter century, laws prohibit most exports, driving down costs for domestic refiners and spurring record shipments of everything from diesel to gasoline that will diminish stockpiles. The forecasters expect Brent prices to weaken as regional supply recovers, led by Iran and Libya. “The continuing arbitrage for oil products out […]

Posted On : Published By : Tom Whipple
Category:

Brent Heads for Weekly Gain on Growth Prospects After Fed Move

Brent crude headed for a weekly increase on speculation that the Federal Reserve ’s plans to reduce stimulus indicate the economic recovery is gaining strength and will support fuel consumption. Brent futures were little changed in London, having advanced 1.6 percent this week. The Federal Reserve, which announced on Dec. 18 it will taper its program of bond-buying amid improved prospects for the job market, will probably reduce purchases in $10 billion increments over the next seven meetings, economists in a Bloomberg News survey said. West Texas Intermediate prices will probably decline next week amid ample U.S. crude inventories, a separate Bloomberg survey showed. “The improvement in the U.S. economy is clear, and that should offset any small negative impact from tapering,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a London-based consultant. “It has taken a few months for the market to acknowledge the upside […]

Posted On : Published By : Tom Whipple
Category:

Natural-Gas Futures Settle at Highest Price Since July 20, 2011

-Natural-gas futures climbed 4.9% to the highest level in nearly two-a-half years Thursday as government data showed strong demand pulled record volumes of gas from storage last week. Gas inventory fell by 285 billion cubic feet in the week ended Dec. 13, the Energy Information Administration said. That far exceeded the average of forecasts gathered by The Wall Street Journal for a decline of 260 bcf. It exceeded the top end of the forecast range of 280 bcf. The EIA said gas inventory dropped to 3.248 trillion cubic feet, a three-year low for this time of year. The stockpile is 13.1% below a year ago, which is the biggest deficit since July 12. Stocks also are 7.4% […]

Posted On : Published By : Tom Whipple
Category:

EIA: OPEC December Oil Output Up 100,000 Barrels a Day Vs. November

OPEC’s crude-oil output is up by 100,000 barrels a day in December from November, despite a 200,000 barrel-a-day drop in flow from Saudi Arabia, U.S. government estimates published Thursday show. Crude output from the Organization of the Petroleum Exporting Countries is averaging 29.4 million barrels a day, slightly more than the month-earlier level that was the lowest since May 2011, the Energy Information Administration said. EIA’s estimate shows labor disputes in Libya are keeping the North African nation’s December oil output at the November level of just 200,000 barrels a day. That is down from average output of 1.4 million barrels a day in the last two months of 2012, EIA data show. Output from Saudi Arabia is estimated at 9.5 million barrels a day, down 200,000 barrels a day from a month earlier, but 200,000 barrels a day more than the average in November […]

Posted On : Published By : Tom Whipple
Category:

On Iran, senators defy White House, threaten new sanctions

The escalation in the fight over sanctions comes less than four weeks after diplomats from Iran and six world powers signed a historic accord in Geneva that temporarily freezes key parts of Tehran’s nuclear program in return for short-term relief from some economic sanctions. Negotiators set a six-month deadline for hammering out a permanent treaty that would set strict limits on Iran’s nuclear capabilities. The measure introduced Thursday, if approved, would impose harsh new sanctions on Iran’s petroleum industry while also threatening U.S. allies and partners with financial restrictions unless they sharply curtail trade with Iran. The sanctions would go into effect if Iran violates the terms of the temporary accord reached last month or if it fails to reach a permanent agreement with world powers in a timely manner. Sponsors of the bill said the measure would increase U.S. leverage as its diplomats continue to work toward a […]

Posted On : Published By : Tom Whipple
Category:

Iraqi Kurds pump oil to Turkey amid fears of new clash

Iraq’s semiautonomous Kurdish enclave has reportedly started pumping oil direct to neighboring Turkey via a new pipeline even though Baghdad has not approved the landmark deal between the Kurds and Ankara, raising concerns of a new clash with Baghdad. But the Financial Times said Baghdad is expected to endorse the pipeline deal in negotiations now under way with the Kurdistan Regional Government in Erbil and the Turkish government, a project that will have important geopolitical consequences for the region. The Iraq Oil Report, a website that monitors Iraq’s energy industry, reported the oil flow which began a week ago is primarily to test the pipeline. But it stressed this is "a significant step toward Kurdistan’s first independent pipeline exports." The Financial Times said Iraqi Prime Minister Nouri al-Maliki ‘s government will likely secure 83 percent of revenues generated by KRG exports with the […]

Posted On : Published By : Tom Whipple
Category:

Double bombing kills 6 in Iraq

Authorities in Iraq say a double bombing at a sheep market in a town north of the capital, Baghdad, has killed six people. Police officials say the Friday morning attack took place when two bombs exploded at the sheep market in Tuz Khormato, about 200 kilometers (130 miles) north of Baghdad. At least 10 people were also wounded in the attack. A hospital official confirmed the casualty figures. All officials spoke on condition of anonymity because they were not authorized to talk to the media. Violence has been on the rise in Iraq since a deadly security crackdown on a Sunni protest camp in a northern town in April. At least 352 people have died in attacks across the country so far this month, according to an Associated Press count. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, […]

Posted On : Published By : Tom Whipple
Category:

Saudis to Expand Offshore Oil Field without Kuwait

Top oil exporter Saudi Arabia will go it alone in boosting the capacity of an offshore oil field in its shared neutral zone with Kuwait after the neighboring Persian Gulf state withdrew from the project due to political deadlock between parliament and the government, two people familiar with the matter said. Kuwait had initially told Khafji Joint Operations, the joint venture that oversees and develops the operations at the neutral zone, that it would participate in the Khafji offshore project, but later pulled out due to political troubles in the country, the people said. "Kuwait has several problems between its parliament and the government that are causing delays in several projects including Khafji, which is not a top priority for the government at the moment," said one person familiar with the matter. "No official wanted to make a decision on sharing the costs of the project and get questioned […]

Posted On : Published By : Tom Whipple
Category:

Nigeria Plans to Stick to Spending Targets as Oil Output Falls

Nigeria plans to spend 4.9 trillion naira ($30.96 billion) in 2014, little changed from this year, amid government expectations of reduced oil production. Budget proposals submitted by Finance Minister Ngozi Okonjo-Iweala to lawmakers today in Abuja on behalf of President Goodluck Jonathan are based on an oil output of 2.39 million barrels a day and a price of $77.5 a barrel. The economy will expand 6.75 percent next year, faster than this year’s 6.5 percent estimate, with the budget deficit increasing to 1.9 percent of GDP from 1.2 percent this year. Africa’s biggest oil producer will use an exchange rate of 160 naira a dollar to calculate its expenditure, according to the minister. Oil output estimates for next year are 6 percent lower than the figure of 2.53 million barrels a day used for this year’s spending plan. In his medium-term expenditure proposals sent to lawmakers in September, Jonathan […]

Posted On : Published By : Tom Whipple
Category:

S. Sudan: 34,000 seeking shelter from violence

The U.N. says 34,000 people in South Sudan are seeking refuge at U.N. bases in three locations across the country. The U.N.’s humanitarian arm said Friday that 20,000 people are seeking shelter in the capital, Juba, while 14,000 are seeking shelter in Bor, the capital of Jonglei state, the scene of heavy violence this week. Several hundred people are seeking shelter in Bentiu, the capital of Unity State, where South Sudan’s oil fields are concentrated. The U.S. Embassy was flying out a fifth emergency evacuation flight on Friday. A German plane was also scheduled to fly out. Violence broke out among South Sudan’s presidential guard late Sunday night. Fighting spread across the country over the next several days, leading to fears of a civil war between ethnic groups. © 2013 The Associated Press . All rights reserved. This material may not be […]

Posted On : Published By : Tom Whipple
Category:

Fatal Assault and Fears of War as Turmoil Builds in South Sudan

The United Nations said on Friday it had sent helicopters to rescue personnel from a base in South Sudan that came under lethal attack as a political crisis worsened significantly and President Obama warned that the world’s youngest country “stands at the precipice.” The number of civilians seeking refuge in the United Nations’ other facilities there exceeded 30,000 and diplomats expressed fears about the potential for a civil war. Britain, which began evacuating its nationals on Thursday, said Friday that it would send a second airplane to Juba, the capital. “We strongly advise all British nationals in South Sudan to leave the country if they can do so safely,” the Foreign Office said, adding that it might become more difficult to escape if the situation worsened further. The United States suspended operations at its embassy in Juba this week and offered similar advice to Americans. On its […]

Posted On : Published By : Tom Whipple
Category:

Fukushima's last two reactors to be decommissioned

Tokyo Electric Power Company, operator of Japan’s stricken Fukushima nuclear power plant, will decommission the facility’s two remaining reactors, Units 5 and 6. Reactors 1 to 4 were declared defunct in April, 2012, 13 months after the devastating 2011 earthquake and tsunami. That leaves Japan with just 48 operable nuclear reactors, all of which remain offline, pending safety checks after the Fukushima nuclear power plant disaster. "With the decision to decommission the two units, the whole power station will now be decommissioned," Tepco said in a statement Wednesday. "We feel an overwhelming sense of shame and regret at the fact that by this accident, we have failed to repay the trust placed in us by the local residents," the utility said. The entire 6-unit facility had a total output 4,696 megawatts. Last month, Tepco started the delicate operation of removing more than 1,000 nuclear […]

Posted On : Published By : Tom Whipple
Category:

Fukushima’s last two reactors to be decommissioned

Tokyo Electric Power Company, operator of Japan’s stricken Fukushima nuclear power plant, will decommission the facility’s two remaining reactors, Units 5 and 6. Reactors 1 to 4 were declared defunct in April, 2012, 13 months after the devastating 2011 earthquake and tsunami. That leaves Japan with just 48 operable nuclear reactors, all of which remain offline, pending safety checks after the Fukushima nuclear power plant disaster. "With the decision to decommission the two units, the whole power station will now be decommissioned," Tepco said in a statement Wednesday. "We feel an overwhelming sense of shame and regret at the fact that by this accident, we have failed to repay the trust placed in us by the local residents," the utility said. The entire 6-unit facility had a total output 4,696 megawatts. Last month, Tepco started the delicate operation of removing more than 1,000 nuclear […]

Posted On : Published By : Tom Whipple
Category:

U.S. Fuel Consumption Advanced in November, API Says

U.S. fuel consumption increased in November to the highest level for the month in six years as the economy grew, the American Petroleum Institute said. Total deliveries of petroleum products, a measure of demand, rose 4.9 percent from a year earlier to 19.4 million barrels a day, the industry-funded group said today. It was the highest level for November since 2007. Year-to-date use has averaged 18.7 million barrels a day, up 1.7 percent from 2012. “Last month’s increase in demand reflected gathering strength in the broader economy,” said John Felmy, chief economist at the API in Washington . Demand for gasoline climbed 5.4 percent to 8.94 million barrels a day last month, the report showed. Consumption of jet fuel surged 7 percent from a year earlier to 1.48 million barrels a day in November. Consumption of distillate fuel, the category that includes diesel and heating oil, gained. Diesel demand […]

Posted On : Published By : Tom Whipple
Category:

Pa. gas drilling decision leaves future uncertain

The energy industry and policy makers in Pennsylvania, the heart of the nation’s gas drilling boom, are thinking about their next moves after the state’s highest court threw out significant portions of a law that limited the power of cities and counties to regulate the industry. The state Supreme Court voted 4-2 on Thursday to strike down portions of a 2012 law that had been crafted by Gov. Tom Corbett and his industry-friendly allies in the Legislature. Republican leaders in the General Assembly said the decision raised more questions than it answered and could damage the growing industry. They said they were not sure, for example, what the ruling would mean for the millions in impact fees being collected under the law. Pennsylvania has over the past five years seen a boom in drilling and related industries rushing to exploit the deposits in the rock […]

Posted On : Published By : Tom Whipple
Category:

House Democrats want hearings on fracking quakes

Ranking Democrats serving on House energy committees have called for hearings to discuss possible seismic activity associated with hydraulic fracturing. Reps. Henry Waxman , D-Calif., ranking member of the House Energy and Commerce Committee, and Peter DeFazio , D-Ore., ranking member of the House Committee on Natural Resources, issued a letter to their Republican counterparts requesting a hearing on the risks of man-made earthquakes. The ranking members point to a joint October study from the U.S. Geological Survey and Oklahoma Geological Survey that suggested tremors in the state "may" be linked to hydraulic fracturing. Hydraulic fracturing, known also as fracking, is a target of criticism by environmental groups. Waxman and DeFazio said injecting wastewater generated by fracking underground could be a potential cause of earthquakes. "Underground fluid injection has been known to have the potential to cause earthquakes since the phenomenon was first observed […]

Posted On : Published By : Tom Whipple
Category:

Whiting refinery overhaul a win for Indiana, BP says

BP said its overhaul of the Whiting oil refinery in Indiana represents the largest private sector investment in state history. BP announced its $4 billion upgrade at the Whiting oil refinery was completed with the commissioning of a new unit. Refinery manager Nick Spencer said the project represents the largest investment in Indiana history. "Our investment in Whiting’s future shows BP’s commitment to safely providing energy and jobs in America," he said in a statement Wednesday. The Whiting facility employs 1,900 people. Ian Conn, downstream manager for BP, said the overhaul means the facility is ready to process more Canadian crude oil, which is cheaper than rival grades. "This world-class refinery is in the right location with the right equipment to process growing supplies of North American crude oil, including heavy grades from Canada," he said in a statement. BP said the refinery […]

Posted On : Published By : Tom Whipple
Category:

North Dakota grants more support to oil, gas counties

North Dakota Gov. Jack Dalrymple said grants of nearly $10 million for state oil- and gas-producing counties will help the education system cope with expansion. "These grants are an important part of a larger state commitment to help meet the many challenges that are created by rapid growth in the state’s oil and gas region," the governor said in a statement Wednesday. The funds target K-12 schools and higher education in expanding parts of the state. Oil and natural gas production from the Bakken and Three Forks shale areas in western North Dakota are providing substantial stimulus to the state economy. The North Dakota Industrial Commission said oil production in October, the last full month for which data are available, was 941,637 barrels per day, an all-time high for the state. Last year, gross domestic product per capita in North Dakota was $55,250, […]

Posted On : Published By : Tom Whipple
Category:

U.S. budget deal gives win to oil industry

Eric Milito, a director at the American Petroleum Institute, said the nod for an energy agreement with Mexico transforms the regional offshore energy sector. "American companies will now have the certainty they need to invest confidently along our maritime border with Mexico," he said in a statement Wednesday. A budget deal passed by U.S. lawmakers this week included consent for the Transboundary Hydrocarbon Agreement between the United States and Mexico. The U.S. Interior Department estimates the transboundary region in the Gulf of Mexico holds as much as 172 million barrels of oil and 304 billion cubic feet of natural gas. "The energy production made possible by this agreement will put Americans to work and raise more revenue for the government," Milito said. API said as much as $51 billion in potential revenue could be generated from expanded work in the Gulf of Mexico. The […]

Posted On : Published By : Tom Whipple
Category:

EIA: Pennsylvania Fastest Growing Gas Producer Thanks to Marcellus

Pennsylvania Fastest Growing Gas Producer Thanks to Marcellus Marcellus shale gas production boosted Pennsylvania from the seventh-largest to third-largest marketed U.S. natural gas producing state from 2011 to 2012, and may lift the state to the rank of second-largest natural gas producer this year, according to a Dec. 17 report by the U.S. Energy Information Administration (EIA). The state’s marketed natural gas production, which includes natural gas plant liquids, rose by 72 percent from 2011 to 2012, according to the EIA report Natural Gas Annual 2012. Earlier this month, EIA said that the Marcellus shale gas area in the eastern United States may account for 18 percent of total U.S. gas production, United Press International reported Dec. 10. Texas topped the list for marketed natural gas in the top 10 producing states from 2011 to 2012, followed by the Louisiana and Pennsylvania. Oklahoma, Wyoming, Colorado, federal offshore, […]

Posted On : Published By : Tom Whipple
Category:

The Natural Gas Glut Is, Like, So Over. Price Soars!

Someone must have known something. Natural gas jumped over 2% this morning before the Energy Information Administration released its Weekly Natural Gas Storage Report at 10:30 a.m. The report would show how much natural gas was in underground storage nationwide on December 13, and how much had been withdrawn from storage during that week. Every Thursday, the report sends gas futures gyrating up or down. But today, they gyrated up from the start of trading. "Unusually" cold weather had swept parts of the country. Natural gas consumption reacts sharply to cold temperatures. So analysts surveyed by Platts had jacked up their estimates for a withdrawal of 260 to 264 billion cubic feet, far above the 70 Bcf during the same week last year and above the five-year average of 133 Bcf for the week. Gas has been rising in anticipation for days. When the EIA report hit at 10:30 […]

Posted On : Published By : Tom Whipple
Category:

Natural gas saves water, even when factoring in water lost to hydraulic fracturing

Natural gas saves water, even when factoring in water lost to hydraulic fracturing Page added on December 20, 2013 For every gallon of water used to produce natural gas through hydraulic fracturing, Texas saved 33 gallons of water by generating electricity with that natural gas instead of coal (in 2011). Credit: University of Texas at Austin A new study finds that in Texas, the U.S. state that annually generates the most electricity, the transition from coal to natural gas for electricity generation is saving water and making the state less vulnerable to drought. Even though exploration for natural gas through hydraulic fracturing requires significant water consumption in Texas, the new consumption is easily offset by the overall water efficiencies of shifting electricity generation from coal to natural gas. The researchers estimate that water saved by shifting a power plant from coal to natural gas is 25 to 50 times […]

Posted On : Published By : Tom Whipple
Category:

Canada approves proposed Northern Gateway pipeline, but with 209 conditions

Canada’s Joint Review Panel has given the go-ahead for the Enbridge-backed 525,000 b/d Northern Gateway pipeline that will open up a much-desired export outlet for land-locked Alberta oil sands crude to Asia, setting 209 conditions, a report released late Thursday said. "The project, if built and operated in compliance with the conditions set out, would be in the public interest," the report stated. The report’s major conditions include the developing of marine mammal protection plan, implementing new offshore terminal safety regulations, preparing a caribou habitat restoration plan, and developing an emergency plan to deal with marine spills. 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, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily […]

Posted On : Published By : Tom Whipple
Category:

Enbridge's Northern Gateway Pipeline Gets Backing

Enbridge Inc. ‘s proposed Northern Gateway project cleared a key hurdle Thursday after a Canadian advisory panel recommended it. The pipeline would connect Alberta’s landlocked oil sands to a Pacific coast port for export primarily to markets in Asia. The decision is expected to spur a final finding in favor of the project by Canada’s federal Cabinet within a mandatory 180-day window, and likely will influence a debate over other proposed pipeline projects that aim to reduce market bottlenecks amid a boom in North […]

Posted On : Published By : Tom Whipple
Category:

Enbridge’s Northern Gateway Pipeline Gets Backing

Enbridge Inc. ‘s proposed Northern Gateway project cleared a key hurdle Thursday after a Canadian advisory panel recommended it. The pipeline would connect Alberta’s landlocked oil sands to a Pacific coast port for export primarily to markets in Asia. The decision is expected to spur a final finding in favor of the project by Canada’s federal Cabinet within a mandatory 180-day window, and likely will influence a debate over other proposed pipeline projects that aim to reduce market bottlenecks amid a boom in North […]

Posted On : Published By : Tom Whipple
Category:

Can Coal Feed The Global Energy Appetite In A Healthy Way?

No other fuel source has been tarred more than coal. Yet, no other product has done more to electrify the global population and to bring prosperity to so many. The question the world now faces is whether to up the stakes in relatively cheap coal or whether to make investments in and to depend on sustainable fuels. That’s the proposition that the International Energy Agency’s Executive Director Maria van der Hoeven put forth as she unveiled the agency’s Medium-Term Coal Market Report for 2013 . Her conclusion is that while burning coal is responsible for a third of the carbon dioxide releases, the fuel will remain integral to the world economy. Therefore, the emphasis should be on improving the technology — at least until the greener energies can take root and grow. She focuses on China, which creates the world’s most carbon dioxide emissions . Next Next comes the […]

Posted On : Published By : Tom Whipple
Category:

Global car market to double in next 20 years, says Ford

Global car market to double in next 20 years, says Ford ‘In the next decade 75% of the global population will live in cities,’ he said. ‘Our challenge is to develop cars that communicate with each other and with the world around them.’ Stephen Odell, president of Ford of Europe, Middle East and Africa, reinforced this desire for of growth. ‘Throughout the economic crisis our plan wasn’t about surviving, it was about growing,’ he said. ‘We have seen 10 straight months of year-on-year growth in Europe and we are on track to be back in profit by 2015.’ Speaking at Ford’s Go Further dealer and press meeting in Barcelona, where the company announced that it will finally build the iconic Mustang sports car for Europe by 2015, Mr Odell said that the European automotive industry will experience 20% growth over the next five years. At a similar event last […]

Posted On : Published By : Tom Whipple
Category:

Crude Prices Ease as Investors Weigh Tapering, Supplies

Crude-oil futures were slightly lower in Asian trade Thursday as weak fundamentals capped gains in oil prices after the U.S. Federal Reserve’s decision to start trimming asset purchases. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $97.69 a barrel at 0532 GMT, down $0.11 in the Globex electronic session. February Brent crude on London’s ICE Futures exchange fell $0.25 to $109.38 a barrel. The U.S. Fed’s decision to trim its bond-buying program boosted oil prices overnight as commodities markets focused on signs of a strengthening domestic economy. Nymex WTI crude has settled higher for ten of the past fourteen sessions. "The Fed tapering is consistent with the fact that the U.S. economy is recovering," National Australia Bank analyst Vyanne Lai said. Overall, it’s good news for commodities, including oil, because there is a general lift in confidence about the economic recovery, […]

Posted On : Published By : Tom Whipple
Category:

Oil prices slip after Fed stimulus decision

The price of oil slipped to under $98 Thursday after the U.S. Federal Reserve decided to start to reduce its monetary stimulus. Benchmark U.S. crude for January delivery shed 8 cents to $97.98 a barrel in electronic trading on the New York Mercantile Exchange. The contract had gained 59 cents on Wednesday to settle at $98.06 on news of falling U.S. supplies. The Federal Reserve decided to reduce its stimulus for the U.S. economy because the job market has shown steady improvement. Investors have feared such a move because Fed policies have encouraged investment in risky assets like oil. Meanwhile, the U.S. Energy Department said Wednesday crude oil supplies fell by 2.9 million barrels last week. Supplies of distillate fuels like diesel fell, while gasoline supplies rose less than expected, helping to boost oil prices. In London, the February contract for Brent crude, a benchmark for international oils, was […]

Posted On : Published By : Tom Whipple
Category:

WTI Trades Near One-Week High as Stockpiles Decline

West Texas Intermediate oil traded near the highest price in a week after crude stockpiles declined in the U.S. and the Federal Reserve said it will reduce stimulus as the economic outlook improves. Futures were little changed in New York after rising 0.6 percent yesterday. U.S. crude inventories shrank by 2.94 million barrels in the seven days ended Dec. 13, falling for a third week, according to data from the Energy Information Administration. The Fed is trimming its monthly bond purchases to $75 billion from $85 billion, starting in January, amid greater job-market prospects, Chairman Ben S. Bernanke said. “The Fed has given an endorsement to the growth that’s coming through with this decision,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney who predicts investors may sell WTI contracts between $98 and $98.50 a barrel. “From a technical point of view, West Texas is bumping up […]

Posted On : Published By : Tom Whipple
Category:

Oil Products Maintain Gains After Fed Lowers Bond Buying

Gasoline maintained gains after the Federal Reserve announced plans to cut its monthly bond purchases to $75 billion from $85 billion. Futures rose as much as 2 percent. The Fed statement was released at 2 p.m. in Washington. The Federal Reserve Open Market Committee took the first step toward unwinding the unprecedented stimulus that Chairman Ben S. Bernanke put in place to help the economy recover from the worst recession since the 1930s. Gasoline for January delivery rose 4.26 cents, or 1.6 percent, to $2.6898 at 2:08 p.m. on the New York Mercantile Exchange. The price was $2.688 before the announcement. Fed Chairman Ben S. Bernanke is scheduled to speak at 2:30 p.m. Vice Chairman Janet Yellen , awaiting Senate confirmation this week to replace Bernanke, has supported the central bank’s policy of bond buying to stimulate the economy. Ultra low sulfur diesel for January delivery gained 4.51 cents, […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Eases on Near-Term Demand Concerns

Natural gas dipped lower Wednesday as adjusted weather forecasts for next week called for more moderate temperatures than previously expected, which could lower demand for the heating fuel. Natural gas for January delivery settled down 3.6 cents, or 0.8%, at $4.251 a million British thermal units on the New York Mercantile Exchange. Prices ticked higher Wednesday morning on calls for continued cold weather but weakened after a midday government forecast shifted to predict milder temperatures next week. Cold weather is bullish for natural gas, because it suggests stronger demand for gas-powered heating in homes and offices. "The warmer trends were pretty much nationwide," said Bradley Harvey, meteorologist for private forecaster MDA Weather Services, of the […]

Posted On : Published By : Tom Whipple
Category:

Iran, six powers to resume nuclear talks after snag

Iran and six world powers will resume talks in Geneva on Thursday about how to implement a landmark nuclear agreement, a week after Tehran broke off the discussions in anger at an expanding U.S. sanctions blacklist. Under the November 24 interim accord, Iran will curb its disputed nuclear program in exchange for a limited easing of sanctions that are damaging its oil-dependent economy. The technical talks – expected to involve nuclear as well as sanctions experts – are meant to translate the political deal into a detailed plan on how to put it into practice. Diplomats said the task was complicated but that progress had been made during the December 9-12 meeting in Vienna, even though differences remained. They said there was a real political will on both sides to carry out the agreement. "It’s in the interests of the Iranians to go quickly because there […]

Posted On : Published By : Tom Whipple
Category:

Foreign Minister Fabius Concerned Tehran Won't Drop Ability to Build a Bomb

France’s foreign minister voiced doubts that Western powers will reach a final nuclear deal with Iran, questioning Tehran’s willingness to abandon its ability to build an atomic bomb. Laurent Fabius has propelled France to the forefront of nuclear talks by taking a tough stance on Iran, which insists its nuclear program is for civilian and scientific use only. To reach a lasting agreement, six Western powers are pressing Tehran to adopt measures that unwind its nuclear capabilities to the point that a weapon is no longer within reach. That goal has been partly overshadowed by disagreements over how to implement a preliminary accord that temporarily freezes Iran’s nuclear program in exchange for limited relief from biting sanctions. "We have to implement honestly the first phase," Mr. Fabius said in an interview with The Wall Street Journal. "Then my main concern is the second phase. It is unclear if the […]

Posted On : Published By : Tom Whipple