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U.S. Gas Is No Cure-All for Europe

Energy was the talk of the town during President Barack Obama’s visit to Brussels this week, raising expectations that U.S. gas exports could help loosen Russia’s energy stranglehold on Europe. European leaders would love to cut their energy imports from Russia, which supplies 30% of Europe’s gas and whose economy is heavily reliant on sales to Europe. But for now, many European countries depend on that gas. Mr. Obama said in a press conference Wednesday that a new trade deal with the European Union could make it easier for U.S. firms to export liquefied natural gas, or LNG, to the continent. But many obstacles stand in the way of that goal, and it’s unclear how, and if, the U.S. can really help. European worries about energy security have soared since Russian troops took control of the Crimea from Ukraine this month. Moscow in recent years has cut gas supplies during regional […]

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Data deepen eurozone deflation fears

The cost of borrowing for crisis hit countries in the eurozone is tumbling amid expectations that the European Central Bank will be forced to start buying government bonds to fend off the spectre of a damaging period of deflation. Yields on 10-year Portuguese government bonds, which move inversely with prices, dropped below 4 per cent for the first time since early 2010 on Friday while Spanish 10-year yields tumbled to a near decade-low. Fears that the eurozone is drifting towards a Japanese-style bout of deflation were stoked further on Friday after prices fell in Spain this month and inflation edged down in Germany. The unexpected dip in Spanish prices capped a week that saw yields on peripheral countries’ debt tumble and the euro edge lower after Germany’s powerful central bank radically scaled back its opposition to the possibility of the ECB embarking on a government bond buying programme. […]

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New UN Report Is Cautious On Making Climate Predictions

The draft of the latest report from the Intergovernmental Panel on Climate Change warns that the world faces serious risks from warming and that the poor are especially vulnerable. But it avoids the kinds of specific forecasts that have sparked controversy in the past. Batten down the hatches; fill the grain stores; raise the flood defenses. We cannot know exactly what is coming, but it will probably be nasty, the latest report from the UN’s Intergovernmental Panel on Climate Change (IPCC) will warn next week. Global warming will cause wars, displace millions of people, and do trillion-dollar damage to the global economy. But careful readers will note a new tone to its discussion of these issues that is markedly different from past efforts. It is more humble about what scientists can predict in advance, and far more interested in how societies can make themselves resilient. It also places climate […]

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Ex govt adviser: "global market shock" from "oil crash" could hit in 2015

In a new book, former oil geologist and government adviser on renewable energy , Dr. Jeremy Leggett, identifies five "global systemic risks directly connected to energy" which, he says, together "threaten capital markets and hence the global economy" in a way that could trigger a global crash sometime between 2015 and 2020. According to Leggett, a wide range of experts and insiders "from diverse sectors spanning academia, industry, the military and the oil industry itself, including until recently the International Energy Agency or, at least, key individuals or factions therein" are expecting an oil crunch "within a few years," most likely "within a window from 2015 to 2020." Interconnected risks Despite its serious tone, The Energy of Nations: Risk Blindness and the Road to Renaissance , published by the reputable academic publisher Routledge , makes a compelling and ultimately hopeful case for the prospects of transitioning to a clean […]

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Ex govt adviser: “global market shock” from “oil crash” could hit in 2015

In a new book, former oil geologist and government adviser on renewable energy , Dr. Jeremy Leggett, identifies five "global systemic risks directly connected to energy" which, he says, together "threaten capital markets and hence the global economy" in a way that could trigger a global crash sometime between 2015 and 2020. According to Leggett, a wide range of experts and insiders "from diverse sectors spanning academia, industry, the military and the oil industry itself, including until recently the International Energy Agency or, at least, key individuals or factions therein" are expecting an oil crunch "within a few years," most likely "within a window from 2015 to 2020." Interconnected risks Despite its serious tone, The Energy of Nations: Risk Blindness and the Road to Renaissance , published by the reputable academic publisher Routledge , makes a compelling and ultimately hopeful case for the prospects of transitioning to a clean […]

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WTI Crude Rises to Two-Week High on Cushing Supplies

West Texas Intermediate crude advanced to the highest level in more than two weeks after supplies at Cushing, Oklahoma , the delivery point for the contract, reached a two-year low. Brent gained in London . WTI rose 1 percent. Cushing supplies fell 1.33 million barrels last week to 28.5 million, the Energy Information Administration said yesterday. President Barack Obama said yesterday that the crisis in Ukraine may escalate and warned that sanctions on Russia may include the energy sector. WTI’s gain also narrowed the discount to Brent. “The continuing depletion of supplies at Cushing is on everyone’s mind,” said John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “We’re seeing the WTI-Brent spread come in as a result. There’s speculation that Cushing supplies could get below operational rates.” WTI for May delivery gained $1.02 to $101.28 a barrel on the […]

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NYMEX crude settles up after pushing through key technical levels

NYMEX May crude settled up $1.02 at $101.28/barrel Thursday after key technical levels were breached, helping to narrow the spread to ICE May Brent. ICE May Brent settled 80 cents higher at $107.83/b. This pulled the Brent-WTI spread down to $6.55/b, in from a settle of $6.77/b Wednesday. Earlier, however, the front-month spread narrowed to $6.03/b, its tightest since trading at $5.85/b on March 7. Article continues below… Products were higher as well, led by NYMEX April RBOB, which rose 3.37 cents to settle at $2.9426/gal. April ULSD settled 2.83 cents higher at $2.9477/gal. "We broke through a key technical level, with some fresh buying as market starts to rally," Tradition Energy analyst Gene McGillian said. Front-month NYMEX crude broke through its respective 30-day and 200-day moving averages, with the 100-day moving average appearing to offer a floor. Bollinger Bands, a technical analysis […]

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Tight oil production pushes U.S. crude supply to over 10% of world total

U.S. tight oil production averaged 3.22 million barrels per day (MMbbl/d) in the fourth quarter of 2013, according to U.S. Energy Information Administration estimates. This level was enough to push overall crude oil production in the United States to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. The United States and Canada are the only major producers of tight oil in the world. In recent years, North American producers have developed technologically advanced drilling and completion processes to produce oil from tight formations. Tight oil refers to oil found within reservoirs with very low permeability, including but not limited to shale. Permeability is the ability for fluid, such as oil and gas, to move through a rock formation. In February 2014, 63% of U.S. tight oil production came from two basins: the Eagle Ford in South […]

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Frigid US winter converts analysts, investors into natural gas bulls

Washington (Platts)–27Mar2014/456 pm EDT/2056 GMT The coldest winter since 1977 in the US has made natural gas analysts and investors more bullish about gas prices in 2014. Bank of America’s commodities team raised its average price forecast for 2014 by 50 cents to $4.40/MMBtu Thursday and predicted storage would end the injection season at 3.46 Tcf, 14 Bcf shy of the 3.6 Tcf benchmark. "Given the unexpectedly strong first quarter, we [are raising] our average price forecast for 2014 from $3.90 to $4.40/MMBtu," the analyst said. "We do not see a major acceleration in gas output despite higher prices, we now project $4.40/MMBtu in 2015 as well, two dimes above the current forward" curve. Article continues below… Request a free trial of: Gas Daily Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily […]

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Iraq Oil Income to Jump on Decades-High Output

Iraqi oil income is set to surge in April as Basrah Light crude to Asia sells at the highest rate in more than a year against Saudi prices and shipments expand. The CHART OF THE DAY shows a tightening discount for Basrah Light, Iraq ’s biggest export, relative to Saudi Arabia ’s Medium grade for Asian customers. Iraq is set to export the most Basrah Light in at least two years next month, at the same time as the grade’s discount to Saudi crude is the narrowest in 17 months. “It looks optimistic for them,” Alexander Poegl, a JBC Energy GmbH analyst in Vienna, said by phone. “They should be on track for a good April. There’s great export capacity available and that will help boost confidence among customers that they’ll get their crude when they want it.” Oil producers in the Persian Gulf sell the bulk of their […]

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Gulf Keystone feeling bullish about Iraqi oil

Though gross production for 2013 slumped, Gulf Keystone Petroleum, active in the Kurdish oil sector of Iraq, said Thursday it had a successful year. The company, which has headquarters in London, said gross production for 2013 declined more than 40 percent from the previous year to 496,921 barrels of oil. Its sales, all of which came from the Shaikan reserve area in the Kurdish north of Iraq, generated $6.7 million in revenue last year, compared with $32.2 million in 2012. Chief Executive Officer Todd Kozel, however, said 2013 was a successful year for the company because it transitioned from an exploration company to a development and production company in large part because of its stake in Kurdish oil. "We continue to be encouraged by the recent positive political developments in the Kurdistan Region of Iraq, where the fast pace of economic development was maintained in 2013, not solely but […]

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Saudi Arabia Appoints Prince Muqrin as Second in Line to Throne

Saudi Arabia named Prince Muqrin bin Abdulaziz as second in line to the throne, the latest royal promotion as King Abdullah confronts unprecedented political instability in the Middle East and economic changes at home. Muqrin, the king’s half-brother who was born in 1945, was made second crown prince alongside his duties as second deputy prime minister, the official Saudi Press Agency said yesterday, citing a royal decree. King Abdullah named his defense minister and half-brother Prince Salman bin Abdulaziz, born in 1935, crown prince in June 2012, making the traditionalist former governor of Riyadh next in line to become king. “By many accounts, Prince Muqrin is a close and trusted adviser to King Abdullah,” said Fahad Nazer, a political analyst at Vienna, Virginia-based JTG, and a former official at the Saudi embassy in Washington . “His relative youth, extensive experience in government and knowledge of the West make him […]

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Nigeria: Shell Declares Force Majeure On Forcados Facility After MEND Attack

The Management of Shell Petroleum Development Corporation, SPDC, on Thursday said it had declared a force majeure on the lifting of crude from its Forcados facility in Warri, Delta State. The SPDC’s spokesperson, Precious Okolobo, in an email to PREMIUM TIMES, stated that the action was taken on Tuesday to allow for repairs on the 48-inch crude export pipeline. Mr. Okolobo noted that the subsea line was shut when a leak was discovered on March 4, leading to suspension of SPDC and third party crude oil exports through the terminal. A part of the mail read: "The SPDC Joint Venture declared force majeure on lifting of Forcados blend effective 0900hrs on Tuesday, March 25, 2014, due to ongoing repairs on the 48-inch crude export line at Forcados Terminal in the Western Niger Delta. The subsea line was shut when a leak was discovered on March 4, 2014, leading to […]

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Oil price rises on Nigeria supply woes, US growth

The price of oil rose Friday amid signs of stronger economic growth in the U.S. and possible disruptions to Nigerian crude exports. Benchmark U.S. crude for May delivery was up 20 cents to $101.48 a barrel at 0740 GMT in electronic trading on the New York Mercantile Exchange. The contract gained $1.02 to $101.28 on Thursday. Concerns are growing in energy markets about supply from Nigeria, which produces about 2.5 million barrels of oil daily, after reports of sabotage at a pipeline, where leaks have forced Shell Nigeria to halt exports from its Forcados terminal since March 4. Meanwhile, the recovery in the U.S. economy signals greater demand ahead. The Commerce Department raised its economic growth estimate for the last quarter of 2013 to 2.6 percent from 2.4 percent, largely because of higher consumer spending. Brent crude, a benchmark for international varieties of oil, fell 13 cents to $107.70 […]

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Tullow upbeat about Kenyan oil prospects

British energy explorer Tullow Oil said Thursday some of its oil reserve areas in Kenya were poorly developed, though it remained upbeat about the potential. Tullow announced exploration results from Blocks 10BB and 13T, which it operates in parity with Africa Oil Corp. Tullow said it encountered a "poorly developed oil bearing reservoir" in Block 13T, though deploying rigs elsewhere in the nearby Amosing discovery would target an area it said "may be one of the largest discoveries in the basin to date." African Oil Corp., in a separate statement , said early 2013 testing from both blocks yielded a flow rate of about 5,000 barrels of oil per day. Angus McCoss, exploration director for Tullow, said in a statement early exploration results from Kenya were in line with expectations. "Our focus remains on continuing to explore and appraise our first successful basin, as well as stepping out into […]

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Argentina Cuts Utility Subsidies as Fiscal Deficit Swells

Argentina reduced government subsidies on natural gas and water by an average 20 percent in a bid to narrow the largest fiscal deficit in more than a decade. The government could save as much as 13 billion pesos ($1.6 billion) and will use proceeds to cover utility company costs and finance social spending, Economy Minister Axel Kicillof and Planning Minister Julio De Vido said today at a press conference in Buenos Aires. The cuts won’t apply to industrial users. President Cristina Fernandez de Kirchner has boosted social spending since taking office in 2007 and left utility rates largely unchanged amid average annual inflation of about 25 percent, straining the finances of power distribution companies and leading to periodic blackouts. Argentina, which has subsidized utilities since 2003, wants to cut aid from about 5 percent of gross domestic product to 2 percent of GDP and make higher income earners pay […]

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Most Chinese Cities Fail Minimum Air Quality Standards, Study Says

Only three of the 74 Chinese cities monitored by the central government managed to meet official minimum standards for air quality last year, the Ministry of Environmental Protection announced this week, underscoring the country’s severe pollution problems. The dirtiest cities were in northern China, where coal-powered industries are concentrated, including electricity generation and steel manufacturing. The ministry said in its announcement, posted on its website on Tuesday, that in the broad northern region that includes the large cities of Beijing and Tianjin as well as the province of Hebei, which surrounds Beijing, the air quality standards were met on only 37 percent of days last year. Beijing, with 20 million people, did so on only 48 percent of days, […]

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China may opt for 'two children' policy in future, says senior official

After decades of enforcing a one-child policy, China may in the future allow every couple to have two children, a senior family planning official has said. China’s national health and family planning commission will study the impact of a universal two-child rule, its head of research, Ma Xu, told state news agency Xinhua, adding that there was no specific timetable for the decision. Experts said it was inevitable that China would make the shift, but probably not for several years. While most couples face large fines if they have more than one child, there are several exemptions, notably for ethnic minorities and rural residents. China recently relaxed its tight birth control rules slightly , allowing couples to qualify for a second birth if one of the partners was an only child; previously, both had to be without siblings. The move affects a relatively small proportion of families, but experts […]

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China may opt for ‘two children’ policy in future, says senior official

After decades of enforcing a one-child policy, China may in the future allow every couple to have two children, a senior family planning official has said. China’s national health and family planning commission will study the impact of a universal two-child rule, its head of research, Ma Xu, told state news agency Xinhua, adding that there was no specific timetable for the decision. Experts said it was inevitable that China would make the shift, but probably not for several years. While most couples face large fines if they have more than one child, there are several exemptions, notably for ethnic minorities and rural residents. China recently relaxed its tight birth control rules slightly , allowing couples to qualify for a second birth if one of the partners was an only child; previously, both had to be without siblings. The move affects a relatively small proportion of families, but experts […]

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Japan's Answer to Fukushima: Coal Power

Japan is turning into a rare bright spot in the world coal market, stepping up coal-fired power generation to replace nuclear plants that went offline after the 2011 Fukushima accident. Plans by Japanese companies to spend billions of dollars on new coal-fired plants offer a striking contrast with the U.S., which has effectively blocked new coal plants using existing technology over concerns about global warming. And they show how deeply Japan’s energy picture has changed since the March 2011 earthquake and tsunami caused meltdowns at Fukushima Daiichi nuclear reactors. On Thursday, Kyushu Electric Power Co. said it would restart a long-frozen project to build a one-gigawatt coal-fired unit in southern Japan. Other utilities including Co. have announced similar plans for more coal-fired power. If the plans all come to fruition, Japan’s coal-fired power capacity would increase to around 47 gigawatts over the next decade or so, up 21% from […]

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Japan’s Answer to Fukushima: Coal Power

Japan is turning into a rare bright spot in the world coal market, stepping up coal-fired power generation to replace nuclear plants that went offline after the 2011 Fukushima accident. Plans by Japanese companies to spend billions of dollars on new coal-fired plants offer a striking contrast with the U.S., which has effectively blocked new coal plants using existing technology over concerns about global warming. And they show how deeply Japan’s energy picture has changed since the March 2011 earthquake and tsunami caused meltdowns at Fukushima Daiichi nuclear reactors. On Thursday, Kyushu Electric Power Co. said it would restart a long-frozen project to build a one-gigawatt coal-fired unit in southern Japan. Other utilities including Co. have announced similar plans for more coal-fired power. If the plans all come to fruition, Japan’s coal-fired power capacity would increase to around 47 gigawatts over the next decade or so, up 21% from […]

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Facing Rising Seas, Bangladesh Confronts the Consequences of Climate Change

When a powerful storm destroyed her riverside home in 2009, Jahanara Khatun lost more than the modest roof over her head. In the aftermath, her husband died and she became so destitute that she sold her son and daughter into bonded servitude. And she may lose yet more. Ms. Khatun now lives in a bamboo shack that sits below sea level about 50 yards from a sagging berm. She spends her days collecting cow dung for fuel and struggling to grow vegetables in soil poisoned by salt water. Climate scientists predict that this area will be inundated as sea levels rise and storm surges increase, and a cyclone or another disaster could […]

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Crude oil inventories at Cushing, Oklahoma hub down 32% over the past two months

Source: U.S. Energy Information Administration, Weekly Petroleum Status Report Crude oil inventories at Cushing, Oklahoma, the primary crude oil storage location in the United States, decreased 13 million barrels (32%) over the past two months. On March 21, Cushing inventories were less than 29 million barrels, more than 20 million barrels lower than a year ago and the lowest level since early 2012 . Cushing is the delivery location for the New York Mercantile Exchange (Nymex) West Texas Intermediate (WTI) crude oil futures contract. The recent drawdown of stocks at Cushing resulted from three factors: The startup of TransCanada’s Cushing Marketlink pipeline, which is now moving crude oil from Cushing to the U.S. Gulf Coast Sustained high crude oil runs at refineries in Petroleum Administration for Defense Districts (PADD) 2 (Midwest) and 3 (Gulf Coast), which are partially supplied from Cushing Expanded pipeline infrastructure and railroad shipments that have […]

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Weekly Natural Gas Storage Report

Working gas in storage was 896 Bcf as of Friday, March 21, 2014, according to EIA estimates. This represents a net decline of 57 Bcf from the previous week. Stocks were 899 Bcf less than last year at this time and 926 Bcf below the 5-year average of 1,822 Bcf. In the East Region, stocks were 419 Bcf below the 5-year average following net withdrawals of 39 Bcf. Stocks in the Producing Region were 378 Bcf below the 5-year average of 754 Bcf after a net withdrawal of 15 Bcf. Stocks in the West Region were 129 Bcf below the 5-year average after a net drawdown of 3 Bcf. At 896 Bcf, total working gas is below the 5-year historical range. The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2009 through 2013. Source: Form EIA-912, "Weekly Underground Natural Gas […]

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U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Price volatility falls to prewinter levels as storage injection season nears Natural gas markets entered January 2014 with low storage levels, following heavy withdrawals at the end of 2013. In January 2014, Lower 48 working inventories fell to a 10-year low, as freezing temperatures led to record natural gas demand and storage withdrawals. Significant inventory drawdowns continued into February 2014 , further tightening the balance between natural gas supply and demand and leading to increased natural gas spot price volatility, before relatively less severe temperatures in March brought spot price volatility back to prewinter levels. The Henry Hub natural gas spot price spiked on many days in January and February. As the winter progressed, increased spot price volatility led to increased interest in monthly delivery contracts, which provide a measure of protection against daily price fluctuations. This was particularly the case during the final three days of trading (bidweek) […]

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Ethanol Rises Above $3 a Gallon for First Time Since 2011

Ethanol futures rose above $3 for the first time since 2011 amid demand from refineries and blenders before U.S. gasoline use rises with warmer weather. Distillers are facing delays transporting the ethanol they produce to markets after winter storms slowed deliveries and competition for rail cars forced ethanol plants to slow production . A 2007 U.S. law requires the biofuel, mostly made from corn, to be blended into gasoline, so higher ethanol costs can boost prices at the pump. Inventories last week were down 10 percent from a year earlier, according to government data. “We’re moving into the driving season, and refineries want more ethanol than they’re able to get,” Chris Wilson , an analyst at Atten Babler Risk Management LLC in Galena, Illinois , said in a telephone interview. “Also, logistics continue to be a big component.” Denatured ethanol for April delivery gained 7.3 cents, or 2.5 percent, […]

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U.S. energy export options limited, Senate hears

It’s oil, not gas, that will increase U.S. leverage in the overseas market more quickly, the chairman of the largest stakeholder in North Dakota’s oil said. The U.S. House Foreign Relations Committee heard testimony Wednesday on how best to exploit the glut of oil and natural gas brought on by the shale boom in the United States. With Russia aggravating Western leaders over its reaction to the Ukrainian crisis, U.S. policymakers say easing some of the restrictions on oil and gas exports could weaken the Kremlin’s influence in Eastern Europe. Harold Hamm, chairman of Continental Resources Inc., the largest stakeholder in North Dakota oil fields, said the oil spigot would be easier to open. While Russia’s primary "energy weapon" is gas, the United States lacks the infrastructure to have an immediate impact. "If we want to have an overnight impact on today’s global events, we can immediately begin exporting […]

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KMEP to build Permian carbon dioxide pipeline

Kinder Morgan Energy Partners LP will build and operate a 213-mile, 16-in. OD pipeline to transport carbon dioxide from its St. Johns source field in Apache County, Ariz., to the KMEP-operated Cortez Pipeline in Torrance County, NM. The Lobos Pipeline will have an initial capacity of 300 MMcfd, supporting current and future enhanced oil recovery projects owned by KMEP and other operators in the Permian basin of West Texas and eastern New Mexico. In addition the pipeline, KMEP plans to drill wells and build field gathering, treatment, and compression facilities at the St. Johns field. The company is targeting a third-quarter 2016 in-service date, pending regulatory approvals. The $300 million Lobos Pipeline will follow existing utility rights-of-way wherever possible. KMEP will spend an additional $700 million preparing St. Johns. KMEP bought the St. Johns dome CO and helium holdings from Enhanced Oil Resources Inc. in 2011 ( OGJ Online, […]

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Obama Envisions Russia Sanctions Limiting Global Impact

The U.S. is looking to minimize the global harm from further penalties on Russia over Ukraine , as the International Monetary Fund moves forward with a multibillion-dollar lifeline to the government in Kiev. President Barack Obama said that Russia’s military, energy and finance industries are possible targets if it moves deeper in Ukraine. While additional sanctions would inevitably also affect the economies of the U.S. and Europe, Obama said, the goal is to limit the collateral damage. “Hopefully, we can design sanctions that minimize the impact on U.S. companies or Italian companies, and maximize the impact on the narrow set of interests in Russia that help drive the decisions that they’re making,” he said yesterday at a news conference in Rome with Italian Prime Minister Matteo Renzi. Obama spoke hours after the IMF unveiled a preliminary accord with Ukraine for a two-year loan of $14 billion to $18 billion […]

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Crude oil inventories at Cushing, Oklahoma hub down 32% over the past two months

Crude oil inventories at Cushing, Oklahoma, the primary crude oil storage location in the United States, decreased 13 million barrels (32%) over the past two months. On March 21, Cushing inventories were less than 29 million barrels, more than 20 million barrels lower than a year ago and the lowest level since early 2012 . Cushing is the delivery location for the New York Mercantile Exchange (Nymex) West Texas Intermediate (WTI) crude oil futures contract. The recent drawdown of stocks at Cushing resulted from three factors: The startup of TransCanada’s Cushing Marketlink pipeline, which is now moving crude oil from Cushing to the U.S. Gulf Coast Sustained high crude oil runs at refineries in Petroleum Administration for Defense Districts (PADD) 2 (Midwest) and 3 (Gulf Coast), which are partially supplied from Cushing Expanded pipeline infrastructure and railroad shipments that have […]

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Canada signs off on four LNG export licenses

Canada is well positioned to help meet the growing market demands for liquified natural gas, Canadian Natural Resources Minister Greg Rickford said. "World energy demand is on the rise, and Canada has the unprecedented energy supply to meet that demand," he said in a statement. Rickford announced Wednesday the government approved four long-term liquified-natural gas export licenses for projects along the country’s West Coast. Canadian Prime Minister Stephen Harper has worked to diversify an economy that relies almost exclusively on the United States for oil and natural gas exports. "Opening new markets for our energy products supports our government’s top priority: creating jobs, growth and long-term prosperity for Canadians," Rickford said. Rickford said LNG from Canada’s West Coast can get to Asian markets in less than two weeks, compared with the month it takes a tanker to leave from export terminals in the Gulf of […]

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A Canadian family's 'Plan B' to pump tar sands oil

Keystone XL, a pipeline proposal to pump Canadian oil sands through the heart of America, has alarmed environmentalists and become one of the most contentious issues of the Obama presidency. But there is a "Plan B" to cut the United States out of the picture, and it is championed by one of Canada’s wealthiest business dynasties. Since 2012, the billionaire Irving family has been advocating a proposal called Energy East. The 2,858-mile (4,600-km) pipeline would link trillions of dollars worth of oil in land-locked fields in the western province of Alberta to an Atlantic port in the Irvings’ eastern home province of New Brunswick, north of Maine, creating a gateway to new foreign markets for Canadian oil. The C$12 billion ($10.8 billion) line, which would pump 1.1 million barrels per day, would include about 1,865 miles of existing natural gas pipeline converted to […]

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A Canadian family’s ‘Plan B’ to pump tar sands oil

Keystone XL, a pipeline proposal to pump Canadian oil sands through the heart of America, has alarmed environmentalists and become one of the most contentious issues of the Obama presidency. But there is a "Plan B" to cut the United States out of the picture, and it is championed by one of Canada’s wealthiest business dynasties. Since 2012, the billionaire Irving family has been advocating a proposal called Energy East. The 2,858-mile (4,600-km) pipeline would link trillions of dollars worth of oil in land-locked fields in the western province of Alberta to an Atlantic port in the Irvings’ eastern home province of New Brunswick, north of Maine, creating a gateway to new foreign markets for Canadian oil. The C$12 billion ($10.8 billion) line, which would pump 1.1 million barrels per day, would include about 1,865 miles of existing natural gas pipeline converted to […]

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Russian Energy Denied Goods as U.S. Exports Suspended

The Obama administration is blocking certain U.S. exports to Russia , including some used in its oil and gas industry, expanding the response to the annexation of Crimea. The State Department said today it halted licensing for exports of defense items and services on March 24. The Commerce Department posted a notice on its website saying it had also suspending licensing, effective March 1. Goods licensed by Commerce alone represented $1.5 billion, or 14 percent of all U.S. exports to Russia last year. “This is a lot more significant than blocking some oligarchs,” said Michael Burton , a Washington lawyer who works on export controls. “In light of the allegations that have been made, how could we continue to license, say, rifle scopes to Russia?” Full coverage of the : The U.S. has previously issued sanctions to business leaders and government officials with ties to Russian President Vladimir Putin […]

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IHS: Western sanctions indirectly could hinder Russian oil, gas revenues

Western sanctions imposed against Russian government officials and business executives regarding Russia’s conflict with Ukraine could slow the availability of capital for Russian oil and gas companies trying to launch major new projects, IHS said. The US and Europe earlier this month strengthened economic sanctions against Russia in response to Russia’s annexation of Crimea. “While the sanctions so far do not impose any direct restrictions on the Russian energy sector, they undermine investor confidence, impeding Moscow’s efforts to generate economic growth through expanded investment,” said Julia Nanay, IHS Russia and Caspian energy analyst based in Washington, DC. International sanctions could weaken the ruble, resulting in what Nanay calls “negative momentum for Russian economic growth.” She said, “The sanctions on Russian officials, as well as ratings downgrades on investment, may negatively impact various big-ticket upstream and midstream projects perceived as vital for the Russian state–including gas pipelines, LNG projects , […]

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Russian Buildup Stokes Worries

Russian troops massing near Ukraine are actively concealing their positions and establishing supply lines that could be used in a prolonged deployment, ratcheting up concerns that Moscow is preparing for another major incursion and not conducting exercises as it claims, U.S. officials said. Such an incursion could take place without warning because Russia has already deployed the array of military forces needed for such an operation, say officials briefed on the latest U.S. intelligence. The rapid speed of the Russian military buildup and efforts to camouflage the forces and equipment have stoked U.S. fears, in part because American intelligence agencies have struggled to assess Russian President Vladimir Putin ‘s specific intentions. The troop movements and the concealment—involving covering up equipment along the border—suggest Mr. Putin is positioning forces in the event […]

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Obama Tells Europe to Get Its Energy House in Order

President Barack Obama is passing through Europe, and the Russian annexation of Crimea is top of the agenda. At a summit meeting with European Union leaders in Brussels, Mr. Obama was pressed to speed the export of America’s natural gas as a means of reducing the bloc’s reliance on Russia. Sure thing, said the president, who this week approved a seventh application to export LNG. Let’s just get this trade deal signed and the gas can flow, he added, and in the meantime,  how about you get your own act together ? “This entire event, I think, has pointed to the need for Europe to look at how it […]

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Ukraine crisis: Old constraints spike Kremlin’s firepower

From armour and kit to structure and logistics, the Kremlin has for six years been on a mission to transform Russia’s military from a clunking Soviet-era relic into a modern, flexible fighting force. Given the surgical ease with which Russian troops secured Crimea, wrongfooting Kiev and blindsiding Nato, it would be tempting to judge the reforms as having worked. Indeed, to many in Europe, Russia is proving itself a militarily resurgent power, adroitly, if aggressively, wielding its newfound heft. Russia’s defence budget is forecast to rise to just under 2.5tn roubles ($70bn) this year compared with 1.8tn roubles in 2012. But this perception belies the real state of Russia’s armed forces, which contains 850,000 active service personnel and 2m reservists. Although much changed since the country’s last major campaign, against Georgia in 2008, Russia’s military remains ill-organised and largely underprepared. In depth Crisis in Ukraine Russia has annexed the […]

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Total and Lukoil in talks over Russian shale deal

Total is in talks to partner with Lukoil on its shale oil projects in Russia, as Moscow targets unconventional resources to replace falling production at ageing fields in Siberia. Lukoil, the largest private energy company in Russia, is exploring the giant but unproven Bazhenov formation, which holds the lion’s share of Russia’s shale oil reserves, estimated by the US Department of Energy to be the biggest in the world. People familiar with the matter said that Lukoil and the French oil major are discussing a joint venture to co-operate on the production of “difficult oil” in Russia – a category that includes shale oil. There is no guarantee that the talks would result in a deal, they added. Total and Lukoil declined to comment. The two companies have been discussing a tie-up since before Russia’s annexation of Crimea and the subsequent sanctions imposed on the country by the US […]

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The bill for climate change is coming due

Americans have just endured one of the coldest winters in memory, so global warming may not be on their radar. But a new U.N. panel report has just refocused the public debate on a problem some scientists call the greatest threat facing the world.

There is trouble ahead for global agriculture, warns the influential Intergovernmental Panel on Climate Change, if measures are not taken quickly to reduce greenhouse gas emissions. The panel, which synthesizes the findings of thousands of peer-reviewed studies every seven years, has issued a report card on the state of the planet.

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WTI Trades Near One-Week High as Cushing Inventories Fall

West Texas Intermediate traded near the highest price in a week as crude stockpiles fell at the main U.S. oil storage hub, and gasoline demand reached a three-month high. Brent was little changed in London. U.S. futures were down 0.1 percent after rising 1.1 percent yesterday to close above $100 a barrel for the first time in a week. Supplies at Cushing , Oklahoma, the delivery point for WTI, shrank for the eighth week to the lowest in two years, the Energy Information Administration said. President Barack Obama said yesterday that sanctions on Russia may include the energy sector. The U.S. publishes today initial jobless claims figures. “We have seen a small correction lower this morning on Obama’s comments yesterday about U.S. sanctions on Russia,” Myrto Sokou , senior analyst at Sucden Financial in London, said by phone. “The key economic data coming from the U.S. later will set […]

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Natural-Gas Prices Slip as Market Awaits Supply Data

Natural-gas futures slipped for the fourth time in five sessions Wednesday as the market awaits weekly U.S. government inventory data on Thursday. Prices for the front-month April contract lost 0.9 cent to settle at $4.4020 a million British thermal units on the New York Mercantile Exchange. Options on the April contract expired Wednesday, and April futures go off the board Thursday. Most of the volume in the market has moved to the May contract, which fell 1.9 cents to settle at $4.395/MMBtu. Analysts and traders surveyed by The Wall Street Journal expect natural-gas stockpiles to fall by 54 billion cubic feet in the data to be released Thursday at 10:30 a.m. by the U.S. Energy Information […]

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U.S. Oil Boom Shifts Alliance as Obama Visits Saudi King

When Barack Obama sits down tomorrow with Saudi Arabia’s King Abdullah , he’ll do so knowing the U.S. is importing the least crude in two decades, a shift changing America’s strongest relationship in the Arab world. Five years after Obama’s first visit to Riyadh, the drilling of shale oil fields from North Dakota to Texas has put the U.S. on the path to energy independence, weakening economic interdependence between the two nations as they work through disagreements on Syria and Iran. The U.S. energy boom that’s upended global markets is now reshaping political alliances built over decades. Almost 70 years after Franklin Roosevelt cemented relations with the Saudi royal family, the U.S. finds itself free to address policy differences with oil as less of a bargaining chip, analysts said. The shift gives the U.S. a freer hand in shaping Middle East policy, especially in seeking an accommodation with Iran […]

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Iran fuel price hikes will be big test for Rouhani

Looming fuel price rises in Iran will be the first major test of President Hassan Rouhani’s ability to retain public support in the face of attacks from his hardline rivals. Since he was elected in August, Rouhani has pleased many Iranians by reaching an interim agreement with the United States and the European Union on his country’s nuclear program, and pursuing a deal that would end economic sanctions against Iran. He has promised more social freedoms and repaired some of the economic damage of the sanctions; the rial currency has stabilized and sky-high inflation has started to come down. But this could be threatened if Rouhani’s government mishandles planned cuts in the massive state subsidies which keep domestic prices of gasoline and other fuels far below global levels. The cuts are a key part of Rouhani’s efforts to reform the economy after years of erratic management […]

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Iran reviews development steps at South Pars

Five facilities to process natural gas from the South Pars complex in the Persian Gulf should be on stream by November, an Iranian official said Wednesday. Mohammad-Reza Akbari, an executive with general energy contractor Petropars, said platforms tied to the field should be loaded in May and additional processing facilities should enter into service by November, Shana, the Oil Ministry’s official news agency, reported . South Pars, which Iran shares with Qatar, is the largest natural gas complex in the world and accounts for 35 percent of Iran’s total natural gas production. Iran aims to develop South Pars through 24 separate phases. The government has expressed frustration with the pace at which its international counterparts were developing the gas complex. Earlier this month, Iranian Deputy Oil Minister Mansour Moazami said China National Petroleum Corp. was at risk of losing its $4.7 billion contract for South Pars development because it […]

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Iraq PM warns of poll delay after election chiefs quit

Iraq’s premier warned Wednesday that April legislative polls may be delayed as he pushed for a controversial election law to be amended after electoral chiefs suddenly quit complaining of political interference. The electoral officials are pressing for the same reform to the law ahead of the April 30 vote, amid doubts the polls can in any case be held countrywide as anti-government fighters still control a city on Baghdad’s doorstep. Much is at stake as Prime Minister Nuri al-Maliki bids for a third term with his security credentials dented by a surge in violence to levels not seen since 2008, and as the country battles to rebuild its conflict-battered economy and boost oil production. Diplomats have said that even though the Independent High Electoral Commission’s nine-member board resigned en masse on Tuesday, the vote was unlikely to be delayed as all major political parties had agreed it […]

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China May Give ‘Teapot’ Oil Refineries More Crude Import Quotas

China ’s smaller, independent oil refineries known as teapots may be granted more import licenses this year, a government research official said. The plants may be allowed to import as much as an additional 20 million metric tons a year of crude, or about 400,000 barrels a day, under the new quotas, Jiang Xinmin, a deputy director at the Energy Research Institute of China’s National Development and Reform Commission, the top economic planner, said today in Shanghai. In late 2012, the country first allowed China National Chemical Corp., or ChemChina, to import as much as 10 million tons a year of crude to supply its teapot plants. China wants to break the dominance of China Petroleum & Chemical Corp. (386) and , its two biggest refiners, by allowing teapots to import crude as an alternative feedstock to fuel oil. “China will further open up its energy import and export […]

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General Who Led Takeover of Egypt to Run for President

Abdul-Fattah el-Sisi, the defense minister and military officer  who led last summer’s takeover  of the elected government in Egypt, formally announced on Wednesday that he was resigning from the army and running for president as he moved to consolidate his power. “It is true this is my last day in uniform but I will fight every day for Egypt free of fear and terror,” Mr. Sisi said, alluding to the military-led government’s continuing battles against the Islamist militants and street protesters. “I repeat what I have said before: ‘We’d rather die before Egyptians are terrorized.’” Mr. Sisi, who held the rank of field marshal, is almost universally expected to win the election and thus formalize  the de facto power he currently holds. He has been the government’s pre-eminent decision maker  since he led the ouster of Egypt’s first freely elected leader, President Mohamed Morsi of the Muslim […]

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Nigeria: Shell Declares Force Majeure On Forcados Oil Exports

Nigeria’s export of crude oil has suffered a major setback as Shell Petroleum Development Company (SPDC) yesterday declared force majeure on the export of Forcados grade of crude oil after it had shut down the 400,000 barrels per day capacity Forcados export terminal in Delta State. The declaration of he force majeure has freed the oil giant from contractual obligations to its customers due to circumstances beyond its control. Shell and other third parties export crude oil from the Western Niger Delta through the Forcados terminal, which was once shut down on October 19, 2012, due to flooding and damage to the supply pipelines. However, the company resumed loadings at the terminal on November 21, 2012 and also lifted the force majeure declared on exports of Forcados grade of crude oil. Before yesterday’s declaration of force majeure on Forcados exports, the export terminal had earlier been shut down when […]

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Nigeria: There's No Need for More Oil Wells in Nigeria

Nnimmo Bassey , an award-winning environmentalist, is one of Africa’s leading campaigners, particularly for his work in Nigeria’s oil-rich Niger Delta region. Mr. Bassey was a human rights advocate in the 1980s. He was imprisoned many times by late president Sani Abacha’s government in the 1990s. He is co-founder and chair of Friends of the Earth International and Environmental Rights Action. In 2009, Time magazine named him one of the Heroes of the Environment. In this interview with Yemisi Akinbobola for Africa Renewal, Mr. Bassey discusses the continuing protests by the Niger Delta people against oil pollution and makes the case for compensation. Can you provide some historical context to the struggle in the Niger Delta region? It’s really a long history. The first commercial export of oil was in 1958, but before then there had been some very serious encounters with forces whose major interest was to exploit […]

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