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Oil near $99 after China manufacturing drops

The price of oil fell slightly Monday following a drop in China’s manufacturing. Benchmark U.S. crude for May delivery was down 3 cents at $99.43 a barrel at 0825 GMT in electronic trading on the New York Mercantile Exchange. The contract rose 56 cents to $99.46 on Friday. Brent crude, used to set prices for international varieties of crude, fell 28 cents to $106.64 a barrel The preliminary version of HSBC’s purchasing managers’ index for China released Monday showed manufacturing dropped to an eight-month low. The index fell to 48.1 from February’s 48.5 on a 100-point scale. Readings above 50 indicate expansion. Factory output shrank at the fastest pace in 18 months. But Asian stock markets were higher Monday as investors bet that China would introduce economic stimulus measures to prevent a deeper slowdown in the world’s No. 2 economy. Investors are also waiting for data on the U.S. […]

Posted On : Published By : Tom Whipple
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The Hydraulic Fracturing of Saudi Arabia…

Since the early twentieth century, Saudi Arabia has enjoyed a close relationship with the United States. From the development of the Saudi oil fields,to the First Gulf War, this relationship has been an uneasy cooperation—each side received something out of the alliance while nervously watching the other.  So recently we have the first open break between the two powers culminating in the Saudi’s refusing a seat on the U.N Security Council due to anger with U.S. Middle Eastern policies. Saudi Arabia holds the world’s second largest oil reserves and the sixth largest natural gas fields.  In addition to being located in the most volatile part of the world, these energy assets make the country a strategic interest for any global power. The discovery of vast hydrocarbon reserves in the United States and the ability to harvest them through hydraulic fracturing techniques has radically altered the relationship between the two […]

Posted On : Published By : Tom Whipple
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Egyptian court sentences 529 Muslim Brotherhood members to death: lawyer

An Egyptian court sentenced 529 members of the outlawed Muslim Brotherhood to death on Monday on charges including murder, a defense lawyer said, in a sharp escalation of a crackdown on the movement. Most were arrested during clashes which erupted in the southern province of Minya after the forced dispersal of two Muslim Brotherhood protest camps in Cairo on August 14. Political turmoil has deepened in Egypt since the army overthrew President Mohamed Mursi of the Muslim Brotherhood last July. Security forces have killed hundreds of Brotherhood members in the street, and arrested thousands of others. "The court has decided to sentence to death 529 defendants, and 16 were acquitted," lawyer Ahmed al-Sharif told Reuters. The ruling can be appealed. The charges against the group, on trial in Minya since Saturday, include violence, inciting murder, storming a police station, attacking persons and damaging public and private […]

Posted On : Published By : Tom Whipple
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New worries on China growth as flash PMI shows contraction

China’s manufacturing engine contracted in the first quarter of 2014, a preliminary private survey showed on Monday, raising market expectations of government stimulus to arrest a loss of momentum in the world’s second-largest economy this year. The weaker-than-expected survey knocked the country’s main share index and other Asian markets off early highs, and lopped around a quarter of a U.S. cent from the Australian dollar, which is often used as a proxy for Chinese risk. The flash Markit/HSBC Purchasing Managers’ Index (PMI) fell to an eight-month low of 48.1 in March from February’s final reading of 48.5. The index has been below the 50 level since January, indicating a contraction in the sector this year. Output and new orders both weakened but new export orders grew for the first time in four months, the survey showed, suggesting the slowdown has been driven primarily by weak domestic […]

Posted On : Published By : Tom Whipple
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Sinopec Embraces Reform Amid China Push for Private Capital

, Asia ’s biggest refiner, said it will push ahead this year with a government-driven agenda to open up state-controlled industries, as China’s energy companies search for private capital. The company and domestic peer PetroChina Co. are seeking private investors for some units. Sinopec, officially known as China Petroleum & Chemical Corp., will sell as much as 30 percent of its oil retail business, in a sale Barclays Plc (BARC) estimates could raise more than $20 billion. PetroChina and its parent China National Petroleum Corp., are considering opening up areas including pipelines, oil and gas exploration and refining to private capital. “In 2014, the company expects to make significant advances in its development by fully embracing reform, leading to corporate transformation, organizational vigor and stronger corporate values,” Sinopec Chairman Fu Chengyu said yesterday in a statement. The Beijing-based company yesterday reported 2013 net income rose 3.4 percent to 66.1 […]

Posted On : Published By : Tom Whipple
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South Korea Must Limit U.S. Shale-Gas Imports to 20% of Total, Kogas Says

South Korea must limit the share of U.S. shale gas to one-fifth of its total gas imports to avoid excessive dependence on a single supply source, a senior executive at state-run Korea Gas Corp. said Monday. "In my personal opinion, around 20% of shale gas [liquefied natural gas] is desirable. Too much exposure to shale gas LNG is not too desirable," said Kwon Young-Sik, chief operating officer at Kogas’s resources division. Asian importers of LNG such as South Korea are mulling a number of new supply sources as gas producers in Australia, the U.S., Canada, Russia and East Africa race to get new projects running. South Korea, the world’s second-largest importer of natural gas, imported around 37 million tons of LNG in 2012, according to the International Gas Union. It is positioned to be the first Asian importer of U.S. natural gas, as it has contracted […]

Posted On : Published By : Tom Whipple
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10 states with the highest gas prices

Gasoline prices have risen steadily the past six weeks through March 18. There was an uptick in gas prices all but one of the past 38 days, and gas is now more expensive than at any point the past six months. In a number of states, the price of gas is now more than $3.75 per gallon, vs. $3.52 nationwide, with gas prices in several other states not far behind. In Hawaii, the price of gas is $4.17 per gallon. There, as in a number of other states, the high price of gas reflects the difficulties involved in transporting oil and refined products to the state. Based on data from AAA’s Daily Fuel Gauge Report , these are the 10 states with the highest average gasoline prices. In an interview with 24/7 Wall St. , Michael Green, public relations manager at AAA, said that seasonal factors played a major […]

Posted On : Published By : Tom Whipple
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Vital Houston oil tanker routes shut amid spill cleanup

The closure of major Texas shipping channels that deliver crude to more than a tenth of the nation’s refining capacity was set to run into a third day and could continue through the week as crews were still working on Sunday night to clean up after an oil spill. The Houston Ship Channel, which allows oil barges and cargo ships to sail from the Gulf Coast to refiners and terminals further inland, was shut on Saturday following a collision between a Kirby Inland Marine oil barge and a cargo ship, spilling some 4,000 barrels, or 168,000 gallons (636,000 liters), of residual fuel oil. A warning to mariners issued by the U.S. Coast Guard on Sunday said portions of the Houston Ship Channel and its offshoots to Texas City and Galveston, Texas, along with a portion of the Gulf Intracoastal Waterway could be shut through […]

Posted On : Published By : Tom Whipple
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Movement of About 60 Ships Affected

TEXAS CITY, Texas—The cleanup of an unknown amount of thick, sticky oil that spilled into the Galveston Bay blocked the movement Sunday of about 60 ships, including three cruise ships, between the Gulf of Mexico and one of the world’s busiest petrochemical transportation waterways. A barge carrying nearly a million gallons of marine fuel oil sprung a leak after colliding with a ship Saturday afternoon in the Houston Ship Channel. Officials believe only one of the barge’s tanks—which holds 168,000 gallons—was breached, though Coast Guard spokesman Lt. Sam Danus said Sunday it wasn’t clear how much oil had spilled. Crews were skimming oil out of the water Sunday and about six and half miles of containment booms were being used to protect environmentally sensitive areas, the Coast Guard said. The area is home to popular bird habitats, especially during the approaching migratory shorebird season. Mr. Danus said flights are […]

Posted On : Published By : Tom Whipple
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Is Eagle Ford Peaking?

This page Texas Oil and Gas Production  was last updated on February 18. However the data on this page has been updated. And the January production has been updated also: Oil and Gas Production Data Query  then check “Lease”, “Both”, Statewide and then punch in the appropriate dates. Then when the next page comes up click on “Monthly Totals”. This brings up the updated monthly totals for Crude, Casinghead Gas, Gas Well Gas and Condensate. There were revisions going back to July 2010 but only 2013 had any major revisions though there were some 2012 revisions also as the chart below shows. <img alt="Texas Revisions" src="http://peakoilbarrel.com/wp-content/uploads/2014/03/Texas-Revisions1.png" width="655" height="437"/> The earlier revisions were smaller and there were some of […]

Posted On : Published By : ASPO-USA