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EIA: Short-term global oil supplies face uncertainties

Global consumption of petroleum and other liquids will rise an average of 1.3 million b/d in 2014 and 1.4 million b/d in 2015, exceeding 93 billion b/d by second-half 2015, according to the most recent Short-Term Energy Outlook released by the US Energy Information Administration. EIA said global consumption of petroleum and other liquids rose by 1.2 million b/d in 2013, exceeding 91 million b/d by the year’s second half. Major uncertainties surround its 2014-15 global oil supply outlook, however. These include lingering unplanned global supply disruptions and unknown US oil production growth, which is attributable to upward US onshore supply risk due to drilling technological innovations and downward production risk in the federal Gulf of Mexico because of potential project delays and hurricane or maintenance outages. Kazakhstan’s Kashagan oil field and North Sea maintenance will also contribute to short-term global supply fluctuations. EIA estimates US total crude oil […]

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Yemen: 7 killed in attack on prison, 29 escape

Heavily armed militants attacked Yemen’s main prison in central Sanaa on Thursday, killing seven people and helping 29 inmates escape, many of them convicts in terrorism-related charges, the country’s state news agency reported. The attack started with a car bomb explosion, then militants exchanged heavy gunfire with the guards at the Sanaa Central Prison, and a number of prisoners fled amid the chaos, according to SABA. A security official said authorities suspect it was an inside job. Among the 29 who fled, 19 are convicted al-Qiada prisoners including those plotting the assassinations of Yemeni President Abed Rabbo Mansour Hadi and western diplomats, the official said. He said those killed in the exchange of gunfire were mostly security forces. Witnesses said earlier that explosions rocked the capital and smoke billowed into the sky. Security forces and army troops have been deployed to the site […]

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Minister claims Lebanon faces 'conspiracy' over gas fields

As Lebanon’s political leaders and sectarian chieftains squabble over who will control the Energy Ministry and the oil and gas bonanza in the eastern Mediterranean, Energy Minister Gebran Bassil accuses rivals of "conspiring against our oil." And just to underline the extent of the prize that’s at stake, one of Lebanon’s major banking houses, Bank Audi, reported that on the basis of the 96 trillion cubic feet of gas and 865 million barrels of oil the ministry estimates lies offshore, Lebanon’s energy wealth could exceed $600 billion. The bank said in the report published Thursday it was optimistic about the prospects for the nascent energy industry, even though Lebanon’s been without a functioning government since March 2013, has a $63 billion national debt, and is hovering on the brink of another bout of sectarian bloodletting linked to the civil war in neighboring Syria. […]

Posted On : Published By : Tom Whipple
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Minister claims Lebanon faces ‘conspiracy’ over gas fields

As Lebanon’s political leaders and sectarian chieftains squabble over who will control the Energy Ministry and the oil and gas bonanza in the eastern Mediterranean, Energy Minister Gebran Bassil accuses rivals of "conspiring against our oil." And just to underline the extent of the prize that’s at stake, one of Lebanon’s major banking houses, Bank Audi, reported that on the basis of the 96 trillion cubic feet of gas and 865 million barrels of oil the ministry estimates lies offshore, Lebanon’s energy wealth could exceed $600 billion. The bank said in the report published Thursday it was optimistic about the prospects for the nascent energy industry, even though Lebanon’s been without a functioning government since March 2013, has a $63 billion national debt, and is hovering on the brink of another bout of sectarian bloodletting linked to the civil war in neighboring Syria. […]

Posted On : Published By : Tom Whipple
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Turkey stays on sidelines of Iran's energy sector

Turkish Energy Minister Taner Yildiz said he’s ready to listen if Iran comes forward with new energy investment proposals, but nothing is in the works. Turkey and Iran signed preliminary arrangements in 2007 and 2008 for development of Iran’s giant offshore South Pars natural gas field. Yildiz said Wednesday state-owned Turkey Petroleum Corp., known by its Turkish initials TPAO, was staying on the sidelines for now. "If Iran wants to make a new proposal with new conditions we will look at it," he was quoted by the Platts energy news website as saying. "But as it stands at the moment there has been no decision for TPAO to invest in Iran." Both sides in the past had considered building a 1,100-mile pipeline that would carry South Pars natural gas through Turkey to European consumers, a long-time ambition for Iran. Yildiz was quoted by […]

Posted On : Published By : Tom Whipple
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Turkey stays on sidelines of Iran’s energy sector

Turkish Energy Minister Taner Yildiz said he’s ready to listen if Iran comes forward with new energy investment proposals, but nothing is in the works. Turkey and Iran signed preliminary arrangements in 2007 and 2008 for development of Iran’s giant offshore South Pars natural gas field. Yildiz said Wednesday state-owned Turkey Petroleum Corp., known by its Turkish initials TPAO, was staying on the sidelines for now. "If Iran wants to make a new proposal with new conditions we will look at it," he was quoted by the Platts energy news website as saying. "But as it stands at the moment there has been no decision for TPAO to invest in Iran." Both sides in the past had considered building a 1,100-mile pipeline that would carry South Pars natural gas through Turkey to European consumers, a long-time ambition for Iran. Yildiz was quoted by […]

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Eni Sees Kashagan Output Recovering to Expected Level From 2015

Eni SpA, Italy’s biggest energy company by market value, Thursday said it expected the giant Kashagan field in Kazakhstan to recover production to the original expected level from 2015. The field’s contribution to Eni’s production for 2014 has been assumed to be marginal, the company said in a statement accompanying fourth-quarter results. Recovery activities are ongoing at Kashagan, it added. Output at Kashagan, which is one of the biggest oil finds in decades, was suspended in October at about 65,000 barrels of oil a day, only a few weeks after starting, after a series of natural gas leaks. No timing of its recommencement has been given. The consortium developing Kashagan, which includes Eni, Total SA, Royal Dutch Shell PLC and Exxon Mobil Corp., had said it planned to increase production to 370,000 barrels of oil a day in 2015. Write to Liam Moloney at [email protected]

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Apache, YPF deal in Argentina a win-win

U.S. energy company Apache Corp. said it was selling off its operations in Argentina to better focus on drilling operations in North America. Apache and its subsidiaries agreed to sell all operations in the country to YPF Sociedad Anonima for $800 million cash plus the assumption of $52 million of bank debt. G. Steven Farris, chairman and chief executive officer at Apache, said the company spent much of the year focusing on shaping its portfolio to enhance its "deep inventory" in North America. "This transaction is consistent with that strategy," he said in a statement Wednesday. Apache said it averaged 256 million cubic feet of natural gas per day in terms of production and estimates its reserves in Argentina at approximately 540 billion cubic feet of natural gas. Miquel Galuccio, president of YPF, said the acquisition is an "excellent opportunity" for his company, already […]

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At least two killed by gunfire at Venezuela protests

At least two people were shot dead on Wednesday during anti-government protests in Caracas, escalating the worst bout of unrest in Venezuela since turmoil after President Nicolas Maduro’s election last year. The violence was a crescendo to weeks of sporadic demonstrations in the provinces led by opposition hardliners who denounce Maduro for failing to control inflation, crime and product shortages and vow to push him from office. The government says the opposition is sowing violence to stage a coup similar to the one a decade ago that briefly ousted late socialist leader Hugo Chavez, though there are few signs that the current melees could topple Maduro. The country’s top prosecutor confirmed the death of a student and a pro-government community leader amid chaotic scenes as marches by opposition and government sympathizers ended just a few blocks apart in the city center. Maduro said another student suffered […]

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Chinese researchers propose energy strategy revamp

The director of a Chinese government research institute has suggested China revamp its energy strategy to secure its energy future. Li Wei, head of the Development Research Center of the State Council, China’s Cabinet — in a paper published in the People’s Daily newspaper — called for a "secure, green and efficient" system of energy production and consumption in China, Xinhua News Agency reported Wednesday. While growth of China’s energy demand will experience a slowdown because of the cooling of its economy, China will continue to depend more on foreign suppliers of oil and natural gas, says Li’s report, "Foreseeing and Analyzing China’s Future Energy Development." Li’s report calls for China to set clear strategic goals to limit dependency on foreign oil and natural gas. Li says as much as 75 percent of China’s oil could be imported by 2030, and its dependency on […]

Posted On : Published By : Tom Whipple