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China Makes More Gasoline, Less Diesel as Auto Sales Rise

Prompted by accelerating auto sales , China’s oil refiners are ramping up gasoline output at the expense of diesel. The production shift away from the diesel used by trucks, power generators and farm vehicles in favor of the gasoline used by passenger autos coincides with a national drive to improve fuel standards and so curb vehicle emissions. Sharply higher motor-vehicle sales are one reason pollution is so bad in many of the Chinas cities. Vehicle emissions contribute as much as 30% of the fine particulate matter known as PM2.5—which is considered particularly hazardous—in urban air. Chinese motor-vehicle sales in 2013 were up 14% from 2012, the biggest increase in three years, according to the government-backed China Association of Automobile Manufacturers. Sales totaled nearly 22 million vehicles—including almost 18 million passenger cars, up 16%. Passenger-car sales have traditionally supported China’s gasoline demand, which was up 12% in the first 11 […]

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China Cites Lapses in Sinopec Pipeline Blasts

China’s work safety agency on Thursday blamed the country’s largest refining company and local officials in the city of Qingdao for pipeline explosions in November that killed 62 people and left 136 more injured. Huang Yi, a spokesman for the State Administration of Work Safety said at a news conference that the initial oil leak at the pipeline wasn’t properly inspected and that both the pipeline’s operator and local government departments bore responsibility for the explosions. Mr. Huang said the initial emergency response was "inadequate" and that workers on the scene failed to detect lingering oil and gas in the eight-hour period between the initial leak and the explosions. The pipeline is owned by China Petrochemical Corp., known as Sinopec Group. The transcript of the news conference released by the safety agency didn’t mention Sinopec by name, but the official Xinhua news agency said the regulator blamed both Sinopec […]

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Caribbean Oil-Tanker Rates Surge as Libya Seen Disrupting Trade

The cost of hauling Caribbean oil to the U.S. surged to a five-year high amid speculation the region’s vessel supply is being diminished by months of delays to Libyan crude exports that are altering trade flows. Aframaxes hauling 70,000 metric-ton cargoes on the route earned $83,205 a day yesterday, the most since December 2008, according to the Baltic Exchange in London . Larger Suezmaxes departed the region to meet rising demand for West African oil shipments to Europe , George Los, senior market analyst at Charles R. Weber Co., a shipbroker in Greenwich, Connecticut , said by phone. That trade-route expansion helped Europe’s refineries cover a shortfall in Libyan crude, he said. The rates surge shows how parts of the tanker market are recovering from a slump after the industry’s biggest vessels earned the most in 3 1/2 years at the end of 2013, according to Baltic Exchange data. […]

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Ethanol Discount Shrinks as Snow Delays Deliveries

Ethanol’s discount to gasoline narrowed as ice and snow are slow railroad deliveries across North America. The discount to the motor fuel tightened 2.57 cents to 71.76 cents as ethanol deliveries by rail are taking twice as long as normal, according to Chad Conn, a vice president of operations for Franklin, Tennessee-based Eco-Energy Inc. “Logistical issues are playing a role in the surprising firmness of the market,” said Sean Wever, a biofuels broker at Green Key Markets LLC in Chicago . Denatured ethanol for February delivery gained 1.2 cents, or 0.6 percent, to settle at $1.925 a gallon on the Chicago Board of Trade. Prices have dropped 14 percent in the past year. The cold snap pummeled energy infrastructure and prompted railroad companies BNSF Railway Co., Union Pacific Corp. and Norfolk Southern Corp. to warn customers earlier this week to expect delays. About 70 percent of U.S.’s ethanol is […]

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Oil-by-rail deliveries up for week ending Jan. 2, rail group says

U.S. rail delivery of petroleum and petroleum products was up 20.2 percent last week from the same period in 2013, the American Association of Railroads said. The AAR said Thursday 13,967 carloads of petroleum and petroleum products, or about 9.77 million barrels of oil, were delivered on the U.S. rail system for the week ending Jan. 2. An accelerating pace of oil production in the United States has placed a burden on pipeline capacity, industry officials say. U.S. oil production has increased, in part, because of gains from states including Texas and North Dakota. Last year, the U.S. Energy Information Administration said U.S. oil production was 7.5 million barrels per day, a 1 million bpd increase from the previous year. AAR Senior Vice President John Gray said a mixed report for the delivery of other commodity groups, including grain and non-metallic minerals, indicate the […]

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Critical energy concerns wane as arctic cold fades

– A call to conserve energy expired for U.S. consumers digging out after a severe winter blast strained the region’s energy grid, a utility company said. The Weather Channel forecast a steady warming trend beginning Thursday. That follows an arctic blast brought on by a weather phenomenon known as a polar vortex, which pushed temperatures well below the freezing point in U.S. states east of the Mississippi River. PJM Interconnection, a company operating the electric grid for more than a dozen Midwest and mid-Atlantic states, lifted a call for conservation Wednesday as the cold spell began to moderate. The company, which services more than 61 million people, said its grid was strained by the intense cold weather. Several natural gas-fired plants reported issues, though PJM said that represented a "relatively small percentage" of energy problems blamed on the extreme cold. The company said […]

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U.S. rig count increased in December

HOUSTON, Jan. 9 (UPI) — Oil service company Baker Hughes Inc. said the number of active drilling rigs working in the United States in December was up 15 from the previous month. Baker Hughes said in its monthly report on rig activity there were 1,771 rigs working in the United States. That’s an increase of 15 from November but down 13 from December 2012. The U.S. Energy Information Administration, a division of the Energy Department, said in a short-term market report Tuesday total U.S. crude oil production in 2013 averaged 7.5 million barrels per day, a 1 million bpd increase from the previous year. In 2014, the United States should produce 8.5 million bpd. The 9.5 million bpd expected in 2015 would break a record set in 1972, EIA said. New drilling technologies used in shale formations in the United States are credited with the increase in oil production. […]

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U.S. Gas Output at Record High, but Growth Pace Slows

Natural gas output in the U.S. is hitting record levels, but there is mounting evidence that the best days of the shale boom are over. Government data released Tuesday show production climbed to 70.21 billion cubic feet in 2013. Output grew by just 1.5% from 2012, the slowest rate since output fell in 2005, before widespread use of new drilling technologies began to unlock massive quantities of natural gas from shale rock formations. The EIA is projecting output to rise by 2.1% in 2014 and 1.3% in 2015. The slowdown has major implications for gas prices. As abundant supplies flooded the market, benchmark U.S. gas prices have fallen, averaging $3.20 per million British thermal units over the past five years, down from close to $9/mmBtu in 2008. Sustained bouts of cold weather this winter have eroded supplies, spiking prices to two-and- a-half-year highs near $4.50/mmBtu recently. […]

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Coal-related chemical spill prompts state of emergency in West Virginia

West Virginia Gov. Earl Ray Tomblin declared a state of emergency for nine counties Thursday night because of a chemical spill into the Elk River in Charleston, advising residents not to drink, bathe, cook or wash clothes in the water and to only use it for flushing. The chemical, used in the coal preparation process, leaked from a tank at Freedom Industries and overran a containment area on Thursday. Freedom Industries did not immediately respond for comment. The amount that spilled isn’t immediately known. West Virginia American Water has a treatment plant nearby. The company’s president, Jeff McIntyre, said the advisory affects up to 100,000 customers. "The water has been contaminated," said Tomblin, who didn’t know how long the emergency declaration would last. It includes includes West Virginia American Water customers in Boone, Cabell, Clay, Jackson, Kanawha, Lincoln, Logan, Putnam, and Roane counties. Tomblin said the advisory also extends to restaurants, hospitals, nursing homes and other […]

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Frozen US Midwest refineries find upside in stronger margins

US Midwest refining margins largely rebounded this week amid a surge in regional gasoline prices, after a cold snap cut production at some area refineries. Cracking margins for West Texas Intermediate were around $18.37/b Wednesday, up from just $12.86/b Friday. West Texas Sour cracking margins rose to $18.54/b Wednesday, up from $12.76/b. Coking margins for both crudes showed a similar increase. 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 futures summary Weekly API statistics, and much more Request a trial to Oilgram News Request More Information Platts’ margin calculations reflect the difference between a crude’s netback and its spot price. Netbacks are based on […]

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LNG growth to make US net natural gas exporter by 2016: report

T The US will become a net exporter of natural gas by the first half of 2016, largely due to the expected rapid growth of the US liquefied natural gas export industry along with a boost in Mexican pipeline capacity and a drop in domestic demand for Canadian gas, analysts with Barclays Commodities Research said in a report Thursday. "In a shift of tectonic magnitude, the US is firmly on track to become a net exporter of natural gas, with far-reaching implications for the US economy, geopolitics, natural gas markets and the global LNG space," the report said. Barclays analysts see US LNG exports, specifically six LNG export facilities it expects will begin shipping LNG by the end of the decade, as the largest driver shifting the US from a gas importer to a gas exporter by June 2016. Article continues below… Request a free […]

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Poland's PGE OKs $3.78 billion expansion of Opole coal-fired plant

Construction will begin next month on 1,800 megawatts of new coal-fired generating capacity at Poland’s Opole Power Plant, owner PGE announced this week. A statement released Thursday by the state-owned power producer said its management board had approved a program of internal financing to build two 900-megawatt generators in a $3.78 billion expansion of the Opole plant, to be designed by the French multinational Alstom. The move came two months after PGE’s former chief executive, Krzysztof Kilian, quit his job heading Poland’s biggest utility amid reports the company was being politically pressured to proceed with the expansion despite rejecting it in April as unprofitable. Now led by Marek Woszczyk, the company now says the financing will allow construction to begin as scheduled Feb. 1, with the first unit to be completed in 4 1/2 years and the second less than year later. In […]

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Poland’s PGE OKs $3.78 billion expansion of Opole coal-fired plant

Construction will begin next month on 1,800 megawatts of new coal-fired generating capacity at Poland’s Opole Power Plant, owner PGE announced this week. A statement released Thursday by the state-owned power producer said its management board had approved a program of internal financing to build two 900-megawatt generators in a $3.78 billion expansion of the Opole plant, to be designed by the French multinational Alstom. The move came two months after PGE’s former chief executive, Krzysztof Kilian, quit his job heading Poland’s biggest utility amid reports the company was being politically pressured to proceed with the expansion despite rejecting it in April as unprofitable. Now led by Marek Woszczyk, the company now says the financing will allow construction to begin as scheduled Feb. 1, with the first unit to be completed in 4 1/2 years and the second less than year later. In […]

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Michael Klare: Peak Oil Is Dead. Long Live Peak Oil!

The eulogies for peak oil came too soon. Among the big energy stories of 2013, “peak oil”—the once-popular notion that worldwide oil production would soon reach a maximum level and begin an irreversible decline—was thoroughly discredited. The explosive development of shale oil and other unconventional fuels in the United States helped put it in its grave. As the year went on, the eulogies came in fast and furious. “Today, it is probably safe to say we have slayed ‘peak oil’ once and for all, thanks to the combination of new shale oil and gas production techniques,” declared Rob Wile, an energy and economics reporter for Business Insider. Similar comments from energy experts were commonplace, prompting an R.I.P. headline at Time.com announcing, “Peak Oil is Dead.” Not so fast, though. The present round of […]

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Peak Oil: Clear As Mud

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. (links in original) [1]  The International Energy Agency has sounded the alarm about a potential oil supply crunch…. (links in original) [2] 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. [3] [A]n analysis of a few key global oil production factors exposes the unstable foundation upon which hopes for North American oil independence are built. […]

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Crude Rebounds With Eyes on Payrolls

Crude-oil futures rebounded in London trading Thursday after falls in the previous session with some support from geopolitical tension, but the market is waiting for upcoming U.S. data before moving out of its current range. Brent crude for February delivery was up 70 cents, or 0.7%, at $107.86 a barrel on ICE Futures Europe. U.S. crude-oil futures were up 46 cents at $92.72 a barrel on the New York Mercantile Exchange. "The market is looking for direction, and all eyes are looking at the U.S. non-farm payroll data which will come out on Friday," said Gareth Lewis-Davies, an analyst at BNP Paribas in London. The data have gained more significance since the announcement that U.S. economic stimulus would be rolled back, as a stronger economy could prompt swifter tapering, Mr Lewis-Davies said. Although some Libyan oil has returned to the market, ongoing tensions in the country’s industry are buoying […]

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WTI Rebounds From Six-Week Low Before ECB Rate Decision

West Texas Intermediate crude rebounded from the lowest closing price in six weeks as the dollar weakened against the euro before a meeting of the European Central Bank today. Futures rose as much as 0.6 percent in New York , after sinking 1.4 percent yesterday as data from the Energy Information Administration showed U.S. gasoline and distillate stockpiles increased more than forecast. The euro strengthened from near a five-week low against the dollar on speculation the ECB will refrain from increasing stimulus. A technical gauge indicated oil’s recent losses may have been excessive. “There’s quite a good correlation between oil and the euro-dollar at the moment,” said Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich. “The macro situation has a good chance of stabilizing here on a more healthy level, but that means underscoring stability, and not potential for big increases” in the oil price. WTI for […]

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Natural-Gas Futures Drop to One-Month Low on Mild Weather Outlook

-Natural-gas futures sank to a one-month low Wednesday as forecasts for warmer temperatures sparked concerns that demand for the heating fuel will fade in the next few weeks. Natural gas for February delivery fell 8.3 cents, or 1.9%, to $4.216 a million British thermal units on the New York Mercantile Exchange and posted their lowest settlement value since December 6. Prices had run up more than 20% since early November as unusually frigid weather boosted usage of the fuel that nearly half of all U.S. households rely on as their primary heating source. But the futures market has pulled back by 7% over the past two-and-a-half weeks as many traders […]

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EIA: Global oil demand to rise 1.2 million b/d in 2014

Global liquid fuels consumption is forecast to increase by 1.2 million b/d in 2014 and by another 1.4 million b/d in 2015, according to the US Energy Information Administration’s Short-Term Energy Outlook (STEO), released this month. Countries outside of the Organization for Economic Cooperation and Development, led by China, account for nearly all consumption growth over the forecast period, EIA said. OECD consumption is expected to decline by 0.1 million b/d in 2014 and remain flat in 2015. EIA forecasts OPEC crude oil production to decline by 0.5 million b/d in 2014, as some OPEC producers cutting back production to accommodate non-OPEC supply growth. In 2015, overall OPEC production is to remain close to its 2014 level while some key member countries continue to reduce their output to accommodate assumed production recovery from Iraq and Angola. In 2014, non-OPEC supply growth is expected to grow by 1.9 million b/d […]

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Iraq Is New Schism for Saudis in Strained Alliance With West

Few goods transit the desert border between the Middle East ’s two biggest oil producers, and Saudi authorities have built a fence to help ensure that political instability in Iraq doesn’t cross over either. Dysfunctional ties between the countries have come into focus as a wave of violence sweeps Iraq, turning it into another arena where Saudi interests are diverging from those of the U.S. Fighting is centered in Anbar province, bordering Saudi Arabia , where Sunni fighters with ties to al-Qaeda are rebelling against the Shiite-led government of Nouri al-Maliki, which is supported by Iran . The Saudi view is that Maliki is “aggravating the feelings of marginalization that some Iraqi Sunnis have long complained about, and that are at the root of the current violence,” said Fahad Nazer, a political analyst at Vienna, Virginia-based intelligence analyst JTG, and a former analyst for the Saudi embassy in Washington […]

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Bombing kills 12 at Iraq army recruiting center

A suicide bomber blew himself up at a military recruiting center in Baghdad on Thursday, killing at least 12 people – an attack that was likely retaliation for the Iraqi government’s campaign to retake two cities overrun by al-Qaida militants. The attacker detonated his explosives outside the recruiting center in the city’s central Allawi neighborhood as volunteers were waiting to register inside, according to a police official. At least 25 people were wounded in the blast, he said. A hospital official confirmed the casualty numbers. Both officials spoke on condition of anonymity because they were not authorized to talk to the media. There was no immediate claim of responsibility, but suicide attacks are the hallmark of al-Qaida’s Iraq branch, known as the Islamic State of Iraq and the Levant. Its fighters last week overran parts of the key cities of Fallujah and Ramadi, both […]

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Iraqi Kurds announce start of crude flow to Turkey

The authorities in Iraq’s self-ruled northern Kurdish region say they’ve unilaterally started exporting crude oil through Turkey despite objections by the central government in Baghdad. The Kurds’ regional Natural Resources Ministry said in a statement late Wednesday that pumping started in early January. The oil is being shipped north through a newly constructed pipeline to the Turkish port of Ceyhan, bypassing Baghdad. The Kurdish ministry has invited companies to participate in a January tender for the 2 million barrels already deposited in Ceyhan. It anticipates an increase in exports to 4 million barrels in February and 6 million barrels in March, with the goal of 10-12 million barrels in December. Kurds and Arab-led government in Baghdad have been in a long-running dispute over who is in charge of oil exports. © 2014 The Associated Press . All rights reserved. This material may not be published, broadcast, […]

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U.S. Leverage in Iraq Tested As Fears of Civil War Mount

Iraq’s Shiite-led government paused on Wednesday on the brink of a military assault against al Qaeda-linked Sunni militants that posed the risk of exacting a high civilian toll and plunging the country deeper into sectarian conflict. Senior U.S. officials, including Vice President Joseph Biden, have urged Iraq’s Prime Minister Nouri al-Maliki to secure the support of local Sunni leaders before attacking to drive the extremists from Fallujah, which sits in the heartland of Iraq’s Sunni minority. Many Sunni tribal leaders, alienated and angered by Mr. Maliki, have refused. The standoff tests the U.S.’s remaining leverage in Iraq, which has declined since American forces fought alongside Iraqis to subdue Islamist fighters in Fallujah in two large battles during the nearly decadelong U.S.-led occupation. In the latest incursion, armed Sunni extremists seized control of Fallujah and parts of Ramadi, capital of Anbar province, more than a week ago. The fighting has […]

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Kurdistan to Sell Oil Via Pipeline to Turkey in January

The autonomous Iraqi region of Kurdistan said Wednesday it plans to sell the first two million barrels of oil exported through its controversial new pipeline to Turkey at the end of the month. In a statement posted on Kurdistan Regional Government’s website, it said prospective buyers would be able to lift the oil shipments from the Turkish port of Ceyhan under arrangements similar to those used by the Iraq State Oil Marketing Organization. The prospect of independent exports from Kurdistan to Turkey has infuriated Baghdad, which claims it has sole authority to market Iraqi oil. Baghdad’s refusal to approve an oil-supply deal between Kurdistan and Turkey announced in December delayed the start of flows through the pipeline until this month. Kurdistan already sends some oil to Turkey on trucks, but the pipeline will allow it to rapidly increase these volumes. Kurdistan says it expects exports to increase to four […]

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Grim Sequel to Iraq’s War

For two years, President Obama has boasted that he accomplished what his predecessor had not. “I ended the war in Iraq,” he has told audience after audience. But a resurgence by Islamic militants in western Iraq has reminded the world that the war is anything but over. What Mr. Obama ended was the United States military presence in Iraq, but the fighting did not stop when the last troops left in 2011; it simply stopped being a daily concern for most Americans. While attention shifted elsewhere, the war raged on and has now escalated to its most violent phase since the depths of the occupation. The turn of events in a country that once dominated the American agenda underscores the approach of a president determined […]

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ExxonMobil rig up at al-Qush, drilling at Pirmam

ExxonMobil rig up at al-Qush, drilling at Pirmam ExxonMobil has spudded at the Pirmam block in Erbil province and has erected a rig in preparation for drilling at the al-Qush block in Ninewa province, breaking ground for the first time in the super major’s six-block deal with the autonomous Kurdistan region.Visits to the areas near both drilling sites show Exxon has mobilized Weatherford rig 888 to al-Qush, though drilling has not started, and Weatherford rig 887 to Pirmam, at the well called Maseif-1."Drilling operations in the region…

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KRG says independent tanker loadings to begin

KRG says independent tanker loadings to begin The Kurdistan Regional Government (KRG) has announced that it will market crude from oil fields under its control sent autonomously of Iraq’s central government to the Turkish port of Ceyhan in a pipeline it claims as its own, with the first shipment up for sale before the end of January.On the KRG’s website late on Jan. 8, the Ministry of Natural Resources (MNR) gave “public notice of the commencement of the sale of its first shipment of crude oil exported via Kurdistan Region’s new…

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Syrian Rebels Deal Qaeda-Linked Group a Reversal

Lebanon — For months, the patchwork of rebel brigades spread across northern Syria watched with foreboding as a new group gradually expanded its control, filling a vacuum left by nearly three years of war. The group, the Islamic State of Iraq and Syria, which is linked to Al Qaeda and known as ISIS, seemed less interested in fighting President Bashar al-Assad than in imposing its ultraconservative version of Islam, antigovernment activists said. It banned smoking, ousted other rebels from their bases, and detained and executed those it decided were opposed to its international jihadist project. Last week, mounting tensions between the Islamic State of Iraq and Syria and other rebel groups exploded into clashes that have raged across northern Syria, left […]

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Abu Dhabi to Operate Main Onshore Oil Fields Alone

Abu Dhabi said it would continue to produce and market crude alone from its main onshore oil fields after a shared license to run the fields expires later this month. State-run Abu Dhabi National Oil Co., known as Adnoc, said Wednesday it wouldn’t renew its 75-year oil-production agreement with BP BP.LN +1.04% BP PLC U.K.: London GBp 498.00 +5.15 +1.04% Jan. 9, 2014 11:27 am Volume : 5.77M P/E Ratio 6.14 Market Cap GBp92.08 Billion Dividend Yield 4.66% Rev. per Employee GBp2,864,460 01/08/14 Abu Dhabi to Operate Main Onsh… 01/03/14 Reliance Industries to Up Outp… 01/01/14 Asian Refiners Get Squeezed by… More quote details and news » BP.LN in Your Value Your Change Short position PLC, Exxon Mobil Corp. XOM -0.33% Exxon Mobil Corp. U.S.: NYSE $ 100.74 -0.33 -0.33% Jan. 8, 2014 4:00 pm Volume (Delayed 15m) : 11.07M AFTER HOURS $ 100.74 0.00 0.00% Jan. 8, 2014 […]

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Libyan Rebels Say Oil Companies Eager to Buy Crude From East

Rebels in east Libya , who last year declared the region semi autonomous, said oil companies are eager to buy their crude and offered to protect tankers after the government’s navy blocked one such vessel from loading. “Companies are fighting to make contracts,” Salem Al Jedran, whose brother Ibrahim is the self-appointed leader of Cyrenaica, Libya’s eastern coastal region, said by phone today. “We will use Es Sider, Hariga and Ras Lanuf,” he said, referring to three of the country’s largest export facilities that have been disrupted since the middle of last year. The region’s Libyan Oil and Gas Corp. sent a letter to international oil companies yesterday offering to ensure the safety of tankers loading at Es Sider, the biggest port. The notice was distributed days after a vessel was stopped from going to the facility by the central govermnent’s navy. Libyan Prime Minister Ali Zaidan said today […]

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Libyan oil crisis swells as militias refuse to end shutdown

Libya’s battered oil industry crisis appears to be escalating again, with armed separatist militants who have shut down vital facilities in the east since July now seeking to sell oil from rebel-controlled terminals, while the navy drove off with shellfire a Maltese-flagged tanker that tried to illegally load at one of the blockaded ports. The militias, who have set up their own "official government of Cyrenaica," named after the Roman province that covered eastern Libya, vowed in a letter sent to major international oil trading companies that they would "fully ensure the security and safety of any ship or tanker that will enter Libyan waters for oil lifting" at the major eastern port of es-Sider. That pledge rang a little hollow Sunday after the Libyan navy, controlled by the government in Tripoli in western Libya, fired warning shots at the tanker Baku and […]

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Libya Vows to Stop Rebel Plan to Sell Oil

The Libyan government and a rebel group stepped up rhetoric Wednesday as Tripoli responded to a vow by dissidents to sell oil with a threat to sink their cargoes. The exchange, which comes after Libya shot at a tanker it said was illegally entering its waters, raises concerns about whether the chaos that has more than halved oil production in the North African nation and rattled oil markets could get worse. On Sunday, the Libyan Navy stopped a tanker it said was about to load at the blocked Es Sider terminal—though the shipper said it had already renounced entering the oil port. The government has banned shippers from lifting oil at several ports in eastern Libya, including Es Sider, after they fell under the control of a rebel militia seeking autonomy for its region, Cyrenaica. Sunday’s incident and the verbal escalation that followed came as the rebels are making […]

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Libya Warns Oil Tankers Against Dealing With Militias

In a further escalation of tensions with the militias occupying Libya ’s oil facilities, Prime Minister Ali Zeidan on Wednesday threatened to sink any foreign tankers attempting to load oil supplies from seized port terminals. For nearly six months, most of Libya’s oil production and exports have been obstructed by militias in the eastern region of the country that are seeking to gain autonomy from the weak central government in Tripoli. Mr. Zeidan has repeatedly threatened to send the country’s nascent armed forces to dislodge the militias, but he opted to negotiate to retake control of three key export terminals with little to show for his efforts. But the war of words became more trenchant in recent days. Over the weekend, Libya’s navy apparently fired warning shots near a Malta-flagged tanker that government oil officials said was trying to load at the occupied eastern port of Es […]

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Lebanon Again Delays Offshore Energy Auction

Lebanon has again delayed its first auction of oil and natural gas licenses in its coastal waters after the government repeatedly failed to vote on decrees needed to start the bidding process, the country’s energy minister said Wednesday. The auction will now be held three months later than scheduled on April 10, instead of this Friday, Gebran Bassil said in a statement, but vowed that the bidding round will go ahead regardless of whether it has government backing. "It is sad for Lebanon to postpone this tender for the third time and this will certainly lead to a lack of trust and a lack of seriousness among the companies," Mr. Bassil said. Lebanon had twice deferred the licensing round—from Nov. 4 to Dec. 10, and then to Jan. 10—after the cabinet failed to approve two decrees. Mr. Bassil insisted that his ministry was willing to launch the bidding on […]

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Ministry: China to Double Oil, Gas Production by 2030

More Ministry: China to Double Oil, Gas Production by 2030 BEIJING, Jan 8 (Reuters) – Top world energy consumer China is expected to double output of oil and gas to nearly 700 million tonnes of oil equivalent by 2030 as available resources rise, the Ministry of Land and Resources said on Wednesday. Decades of breakneck economic growth pushed China ahead of the United States to become the world’s top net oil importer in September, the U.S. Energy Information Administration (EIA) has said, a position China is set to keep through 2014. With energy demand still increasing, Beijing is desperate to reduce the risk of growing import dependency by raising domestic production as quickly as it can. China’s oil and gas production in 2013 rose 4.6 percent from the previous year to 320 million tonnes of oil equivalent, the land ministry said on its website (www.mlr.gov.cn). Of the total, oil […]

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China vows greater efforts to abate pollution

A Chinese official said on Thursday the government will continue to fight against air, soil and water pollution with great determination. "The government can never slack off on the task of reducing pollutant discharge," Minister for Environmental Protection Zhou Shengxian said at a national meeting of environmental protection work held in Beijing. Targets for the reduction of key air pollutants have been set for 2014, with targets for annual emissions of sulfur dioxide, chemical oxygen demand and ammonia nitrogen down two percent from 2013, Zhou said. However, reduction of oxynitride emissions still faces great challenges, he said, adding that a 5 percent decrease target has been decided for 2014. The air pollution in Beijing, and neighboring Tianjin municipality and Hebei Province, will be the ministry’s top priority, and systems will be made to evaluate local governments’ progress in abating pollution, the official noted. The […]

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Exxon Mobil launches Singapore petrochemical processing

Exxon Mobil has inaugurated a petrochemical processing facility in Singapore on the island of Jurong. The facility is part of the expansion of an existing chemical plant that was built in 2002 and currently accounts for about a quarter of Exxon Mobil’s global chemical capacity. Exxon Mobil Chairman and Chief Executive Officer Rex W. Tillerson, speaking at the plant inauguration Wednesday, said global chemical demand would grow faster than gross domestic product expansion as living standards continue to rise and people purchase more household and packaged goods manufactured with chemical products. "Two-thirds of that growth in chemical demand will be here in the Asia-Pacific region," Tillerson said. "Exxon Mobil’s expanded Singapore chemical plant is uniquely positioned to serve these growth markets — from China to the Indian subcontinent and beyond." Exxon Mobil says the facility incorporates more than 40 new proprietary technologies and is […]

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China's auto sales rise 15.7 percent in 2013

China’s auto sales rose 15.7 percent last year to 17.9 million vehicles, boosted by strong demand in December, an industry group reported Thursday. Sales growth in China, the biggest auto market by number of vehicles sold, has slowed but still outstrips Western markets. Automakers including General Motors and Toyota reported record China sales in 2013 and BMW said this country became its biggest market. December was China’s busiest sales month yet at 2.1 million vehicles, the China Association of Automobile Manufacturers said. It gave no growth rate, but that total would be a 17 percent increase over the figure reported earlier for December 2012. Competition is intensifying as automakers plow billions of dollars into developing models to suit Chinese tastes. Some have launched low-cost brands created for this country. Sales growth is likely to decline to 8 to 10 percent this year, said Jia Xinguang, an […]

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China’s auto sales rise 15.7 percent in 2013

China’s auto sales rose 15.7 percent last year to 17.9 million vehicles, boosted by strong demand in December, an industry group reported Thursday. Sales growth in China, the biggest auto market by number of vehicles sold, has slowed but still outstrips Western markets. Automakers including General Motors and Toyota reported record China sales in 2013 and BMW said this country became its biggest market. December was China’s busiest sales month yet at 2.1 million vehicles, the China Association of Automobile Manufacturers said. It gave no growth rate, but that total would be a 17 percent increase over the figure reported earlier for December 2012. Competition is intensifying as automakers plow billions of dollars into developing models to suit Chinese tastes. Some have launched low-cost brands created for this country. Sales growth is likely to decline to 8 to 10 percent this year, said Jia Xinguang, an […]

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No deep freeze: Australia swelters in heat wave

Bats are dropping from trees, kangaroos are collapsing in the Outback and gardens are turning brown. While North America freezes under record polar temperatures, the southern hemisphere is experiencing the opposite extreme as heat records are being set in Australia after the hottest year ever. Weather forecasters in Australia said some parts of the sparsely populated Pilbara region along the rugged northwest coast on Thursday were approaching 50 degrees Celsius (122 degrees Fahrenheit). The record high of 50.7 degrees Celsius (123.3 F) was set in 1960 in Oodnadatta, South Australia state. Outback resident Gian Tate, 60, spends much of the day soaking in a small wading pool at her home near Emu Creek in the Pilbara region, a remote area off the electric grid. The thermometer outside her home registered 50 degrees Celsius (122 F) on Wednesday, she said. Tate and her husband […]

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India reviews diesel deregulation for bulk consumers: official

India is reviewing its policy of deregulating diesel prices for bulk consumers introduced in January 2013 after bulk sales have dropped as those consumers shifted to the retail sector, a senior oil ministry official said Thursday. "Bulk diesel sales have dropped dramatically and [as a result] subsidies have increased," Petroleum Secretary Vivek Rae said. Rae was speaking on the sidelines of a Petrotech 2014 pre-conference session in New Delhi. India in January 2013 allowed oil companies to raise diesel prices each month by Rupees 0.50/liter in the retail sector but announced deregulated prices for bulk consumers. Bulk consumers include state-run bus transport corporations, the Indian Railways, and small and medium-size enterprises that use gasoil to run their facilities. They buy gasoil directly from refineries. The Petroleum Planning and Analysis Cell, which is a part of the oil ministry, in a November report on […]

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Oil-Tanker Recovery Trails Market With U.S. Export Ban: Freight

The recovery propelling shipping markets is poised to leave crude-oil tankers behind, unless the U.S. changes its 39-year-old ban on most unrefined exports. Sea shipments of refined fuels are set to expand the fastest since 2010 and demand to transport dry-bulk commodities such as iron ore and coal will rise more than capacity for the first time in seven years, according to Clarkson Plc, the world’s largest shipbroker. Demand for crude carriers will advance the least since 2009, as the U.S. produces the most domestic supply in a quarter century and cuts imports for the fourth straight year, Clarkson estimates. Profits will increase for companies including product-tanker owner Scorpio Tankers Inc. (STNG) and Star Bulk Carriers Corp., whose ships carry dry-bulk commodities, analyst estimates compiled by Bloomberg show. Allowing more U.S. crude exports would be a “positive surprise” for tankers, according to RS Platou Markets AS. […]

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Keystone Pipeline Approval Snag Spurs Oil to Rail Tankers

As the year rolled to a close, Russ Girling , chief executive officer of TransCanada Corp. (TRP) , repeated on television what he has often said: he’s “very confident” that President Barack Obama will approve the Keystone XL pipeline. The problem is that people have been saying that for years. As a result, the oil industry on both sides of the border has begun to aggressively deploy alternatives to the pipeline, including shipping by rail and barge, to get that oil to U.S. Gulf Coast refineries. Rail, though, poses its own issues. A train carrying hazardous materials, including crude oil, derailed and caught fire in New Brunswick, Canada, on Jan. 7, causing the evacuation of as many as 150 residents — the latest serious accident involving rail cars hauling flammable liquids. The tilt toward rail is rooted in an industry sense that more than five years […]

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Calls to Drop 1970s-Era U.S. Oil Export Ban Stir Fight

Almost four decades after the Arab oil embargo, political leaders are beginning to contemplate what was once unthinkable: lifting restrictions on the export of U.S. crude oil. Senator Lisa Murkowski of Alaska, the top Republican on the Senate’s energy committee, and the American Petroleum Institute held events yesterday to push for an end to the export ban. U.S. Energy Secretary Ernest Moniz has said it’s time to revisit the policy amid forecasts the U.S. will surpass Saudi Arabia and Russia to become the world’s largest oil producer by next year. “This may well be the biggest energy issue of 2014,” Daniel Yergin , author of “The Quest: Energy, Security and the Remaking of the Modern World,” said in a phone interview. “Our logistics, our laws and our thinking are all having to play catch up with the dramatic change in the U.S. energy position” in recent years, he said. […]

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EIA expects lower gasoline prices for U.S. drivers

The U.S. Energy Information Administration said the average price for a gallon of regular unleaded gasoline should decline steadily for the next two years. EIA, the statistical arm of the Energy Department, said the average retail price for a gallon of regular unleaded gasoline was $3.32 as of Monday, a price 3 cents higher than the same time last year. Nevertheless, EIA said average gasoline prices in the United States should experience a steady decline. In a short-term energy report published Tuesday, EIA said the annual retail price for a gallon of regular unleaded gasoline in 2013 was $3.51. That average price is expected to decline further to $3.46 this year and to $3.39 in 2015. In terms of U.S. crude oil production, EIA said the 2013 average of 7.5 million barrels per day was 1 million bpd higher than the previous year. "Projected […]

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API touts stimulus from Keystone XL

WASHINGTON, Jan. 8 (UPI) — A report from the American Petroleum Institute said building the Keystone XL oil pipeline from Canada would be a victory for the North American economy. API, in a 40-page annual report on the state of the U.S. energy sector published Tuesday, said the United States and Canada could strengthen their relationship by building the Keystone XL oil pipeline. Keystone XL is planned by Canadian energy company TransCanada to deliver the heavier grade of oil sands crude from Alberta province to refineries in the southern United States. The cross-border section of the pipeline needs U.S. federal approval, though a domestic leg from Oklahoma should go into service by the end of January. "Buying oil from Canada makes sense, because for every U.S. dollar spent on Canadian products, such as oil, up to 89 cents is returned to the U.S. in the form of Canadian imports […]

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U.S. refiner backs oil export restrictions

U.S. refining company Valero said keeping crude oil produced in the United States in the domestic market shields the economy from overseas shocks. "The more oil you have at home, there’s less [price] volatility when Iran rattles its saber or that kind of thing," Valero spokesman Bill Day said in an interview published Tuesday by The Wall Street Journal. "It makes more sense to keep the raw materials here, use American processes and labor to make a higher value product and use that for the export market instead of sending it abroad and importing it back at a higher price." The increase in U.S. oil production has generated calls for a reversal of legislation enacted in the wake of the 1970s Arab oil embargo that restricts U.S. crude oil exports. Higher levels of oil production, coupled with export restrictions, means companies like Valero can […]

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Extreme weather hurts Conoco's production levels

ConocoPhillips said recent production levels were lower because of extreme weather in the United States and the North Sea but no long-term impact was expected. "The recent quarter’s [fourth quarter 2013] average production was negatively impacted by significant weather-related downtime in several operational areas, notably in the Lower 48 and the North Sea," the company said in a statement Tuesday. Much of the eastern half of the United States is coping with an extreme cold snap brought on by a meteorological phenomenon known as the polar vortex. Temperatures in southern states dropped into the single digits while Chicago and other Midwest areas saw sub-zero temperatures in double digits. December storms in the North Sea region impacted Conoco’s production levels at its Ekofisk field in Norwegian waters "There has been no long-term impact to production from this weather-related downtime and 2014 guidance for continuing operations […]

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Extreme weather hurts Conoco’s production levels

ConocoPhillips said recent production levels were lower because of extreme weather in the United States and the North Sea but no long-term impact was expected. "The recent quarter’s [fourth quarter 2013] average production was negatively impacted by significant weather-related downtime in several operational areas, notably in the Lower 48 and the North Sea," the company said in a statement Tuesday. Much of the eastern half of the United States is coping with an extreme cold snap brought on by a meteorological phenomenon known as the polar vortex. Temperatures in southern states dropped into the single digits while Chicago and other Midwest areas saw sub-zero temperatures in double digits. December storms in the North Sea region impacted Conoco’s production levels at its Ekofisk field in Norwegian waters "There has been no long-term impact to production from this weather-related downtime and 2014 guidance for continuing operations […]

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