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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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Nigeria: FG Moves to Privatise Refineries

The Federal Government appears set to privatise the nation’s four refineries in Port-Hacourt, Warri and Kaduna. Mr. Ben Dikki, the Director-General of the Bureau of Public Enterprises, BPE, announced this at a briefing in Abuja, yesterday. He said however, that his team would first secure the cooperation of labour leaders, especially in the oil industry before taking concrete steps in that regard. His words, "it should be noted that the labour unions have expressed their willingness to dialogue with government to develop appropriate business models for the refineries. This will be followed up and should lead to the commencement of the privatization process in 2014. "The steering committee is expected to commence work soon and develop an appropriate framework for privatization that is acceptable to all stakeholders. "The labour leaders have said that they are not averse to the privatization of the refineries. What they want is […]

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Drought Tests Brazil's Cool

A drought in Brazil is crimping water and electricity supplies, creating tensions between the country’s two largest cities and raising the prospect of rationing that stands to hurt President Dilma Rousseff’s re-election hopes. The several-week drought in Brazil’s wealthy southeastern region, home to São Paulo and Rio de Janeiro, is the worst in close to 50 years, and has severely depleted the reservoirs in a country that relies on hydroelectric plants for over two-thirds of its power. Ms. Rousseff won the 2010 election while promising to improve the country’s infrastructure—particularly transportation, housing and energy. But the drought—which experts say is likely to lead to power rationing this year—is now weighing on Ms. Rousseff’s expected run in the October elections. "Dilma will try to sweep this issue under the rug for as long as she can," said Adriano Pires, head of Rio-based energy consultancy CBIE. "The government will try […]

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Drought Tests Brazil’s Cool

A drought in Brazil is crimping water and electricity supplies, creating tensions between the country’s two largest cities and raising the prospect of rationing that stands to hurt President Dilma Rousseff’s re-election hopes. The several-week drought in Brazil’s wealthy southeastern region, home to São Paulo and Rio de Janeiro, is the worst in close to 50 years, and has severely depleted the reservoirs in a country that relies on hydroelectric plants for over two-thirds of its power. Ms. Rousseff won the 2010 election while promising to improve the country’s infrastructure—particularly transportation, housing and energy. But the drought—which experts say is likely to lead to power rationing this year—is now weighing on Ms. Rousseff’s expected run in the October elections. "Dilma will try to sweep this issue under the rug for as long as she can," said Adriano Pires, head of Rio-based energy consultancy CBIE. "The government will try […]

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US New England oil-fired generation averaging 16.2 GWh/day in 2014

Oil-fired power plants in New England have accounted for about 5.3% of total generation in the region so far this year, more than eight times the level during the same period of 2013, according to data grid operator ISO New England published Wednesday. The ISO, which handles electric markets for Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, showed generation from oil-fired units averaged 16.201 GWh/day through March 24, compared with about 1.991 GWh/d, or 0.6% of total generation, during the comparable period last year. ISO New England’s oil-fired generation has been high this winter because of repeated cold snaps and a grid operator-initiated winter reliability program that provided a number of incentives to use oil to generate electricity. Article continues below… Request a free trial of: Megawatt Daily Megawatt Daily provides detailed coverage of power prices in major US and Canadian electricity […]

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Senate panel reviews prospects for energy exports

The United States is in a unique position to use its energy resources to increase its leverage on the international stage, U.S. Sen. Lisa Murkowski said. Legislation enacted in response to the Arab oil embargo in the 1970s limits U.S. options for crude oil exports. Murkowski, an Alaskan Republican and ranking member of the Senate Energy and Natural Resources Committee, said exporting more oil and natural gas could be an economic asset at home as well as a geopolitical tool overseas. "The United States has an historic opportunity to generate enormous geopolitical and economic benefits by expanding its role in the global gas trade," she testified Tuesday. "We should send a powerful signal to the world that the United States is ready to assert its role as a leader on energy." U.S. policymakers have called for more energy exports to Europe to counter Russia’s economic influence in the region. […]

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Economy in oil-rich North Dakota booming

Jack Dalrymple, governor of the oil-rich state of North Dakota, said personal income growth has outpaced the national average by 5 percent. The Bureau of Economic Analysis said North Dakota’s average personal income increased 7.6 percent last year compared with the national average growth rate of 2.6 percent. It’s the sixth time in the last seven years North Dakota reported an increase in personal income. Dalrymple said the data are a testament to a sound state economic model. "We are enjoying economic growth in all regions of the state and our income growth stems from nearly every business sector," he said in a statement . North Dakota is the second-largest oil producing state in the country behind Texas. North Dakota produced 933,128 barrels of oil per day in January, the last full month for which data are available. The bulk of the production came from […]

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China’s Long Road to Shale-Gas Boom

The development of China’s shale-gas industry has moved forward over the past year, but far more remains to be done than has been accomplished if the nation’s ambitious production targets are to be met, according to executives attending an energy conference here. Here’s a quick rundown on the status of the industry and the daunting challenges ahead: The Players Only two players have made progress on the ground so far. Leading the pack is state-run China Petroleum & Chemical Corp., or Sinopec, which said this week that its first commercial shale-gas field is running “ahead of schedule.” A worker performs a routine check on the valves at a Sinopec appraisal well in Langzhong county, Sichuan province. The field, in the Fuling district of Chongqing, will produce around 1.8 billion cubic meters of gas this year, 5 billion cubic meters next year and 10 billion by 2017, the company said. […]

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EIA: China exceeds US as the largest net petroleum importer

In September 2013, China’s net imports of petroleum and other liquids exceeded those of the US on a monthly basis, making it the world’s largest net importer of crude oil and other liquids, according to the US Energy Information Administration. Rapidly increasing Chinese petroleum demand driven by steady economic development outpaces domestic production growth, pushing up the country’s net imports of petroleum and other liquids. Chinese petroleum and other liquids production is expected to rise 5% between 2011 and 2014 compared with a growth rate of 31% in the US over this period. Chinese production is estimated to be only a third of US production in 2014. On the demand side, China’s liquid fuels consumption is expected to reach more than 11 million b/d in 2014. In the meantime, US consumption in 2014 is estimated at 18.9 million b/d, down 9% from the peak consumption in 2005. US refined […]

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Soros-Endorsed Sale of U.S. Oil Reserves Seen as Russian Penalty

America’s emergency stockpile of oil stands twice as large as the amount required by an international pact. George Soros has proposed selling some now to punish Russian President Vladimir Putin — and U.S. lawmakers are starting to listen. As the U.S. and its European allies seek to rebuke Russia for taking over the Crimea region of Ukraine, America could push down global oil prices by as much as $12 a barrel by selling 500,000 barrels a day from its strategic reserve, said Philip Verleger, a consultant who worked in the Ford and Carter administrations. The lower prices would cost Russia about $40 billion in lost income from oil and gas sales, equivalent to 2 percent of its economy, he said. While Energy Secretary Ernest Moniz has dismissed the idea, it was raised before a congressional hearing yesterday, less than a week after Soros discussed the subject at a panel […]

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Kansas-Missouri heavy oil area draws new operator

Worthington Energy Inc. , San Francisco, said it will attempt to recover heavy oil on the Barr Cattle Co. lease near Chetopa in southeastern Kansas. A press release issued by Worthington provided no field details about the proposed project but said it will be conducted in collaboration with American Dynamic Resources Inc. (ADR). It was not clear when field work might start. Worthington signed a definitive agreement on Mar. 12 to acquire the oil and gas assets of ADR and heavy oil technology and intellectual property from ADR Pres. and Chief Executive Officer Charles Adams. As part of that acquisition, Worthington said it will utilize the Levia oil recovery process developed by ADR to begin recovering heavy oil in Kansas and Missouri. Worthington said ADR has integrated surfactant formulations for enhanced oil recovery developed by chemists with Oil-Chem Technologies LLC, Sugar Land, Tex. State geological organizations in Kansas, Missouri, […]

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Continental CEO: Bakken Oil Is Safe

WASHINGTON, March 26 (Reuters) – The biggest leaseholder in North Dakota’s booming oil fields said the crude shipped by rail to markets across the United States is safe, despite growing fears that crude from the Bakken formation is dangerously volatile. Regulators say that North Dakota crude should be treated more carefully after a number of trains carrying Bakken crude derailed and exploded over the past year. But Harold Hamm, the CEO of Continental Resources Inc, which is one of the pioneers in North Dakota drilling that ships crude by rail from North Dakota, said that as long as there are no accidents, the oil is not a threat. "Bakken oil is safe," Hamm told reporters when asked if there was anything the company should be doing to make Bakken oil safer. "Anytime you don’t keep trains on the track bad things happen," he said. "It’s like cars on the […]

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North Dakota Oilman Urges US Crude Exports To Europe

Ending the 40-year ban on U.S. crude exports is the fastest way the American drilling boom could bolster energy security in Europe and Ukraine, the CEO of the biggest operator in North Dakota’s vast oil fields told lawmakers on Wednesday. After Russia’s invasion of the Crimean region of Ukraine, several U.S. lawmakers have introduced bills pushing the government to speed approvals of U.S. liquefied natural gas exports. They say the extra U.S. supplies would provide Europe with an alternative to supplies from Russia, from which it currently gets nearly a third of its fuel. "While opening LNG exports is a noble goal and one that we as a country are actively working towards, the fact is the infrastructure to undertake large scale overnight LNG exports does not currently exist," Harold Hamm, the chairman and CEO of Continental Resources Inc said at a hearing of […]

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Canada Approves 4 LNG Export Licenses on Pacific Coast

By Judy McKinnon The Canadian government said Wednesday it has approved four, long-term licenses to export liquefied natural gas from proposed projects on the country’s west coast. The licenses, which had received approval from Canada’s National Energy Board in December, are for LNG exports from proposed Pacific Coast terminals backed by Exxon Mobil Corp. (XOM), BG Group PLC (BG.LN) and Malaysian state-owned energy giant Petroliam Nasional Bhd (PET.YY), or Petronas. None of the proposed projects have been built or even formally approved by their sponsors. The government said in a statement that the licenses will allow for the export of up to 73.38 million metric tons of LNG a year. Western Canada is aiming to become a major global supplier of LNG by matching rising demand in Asia with abundant supplies of gas in North America. Specifically, Canada said it has approved export licenses for the proposed Pacific NorthWest […]

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Canadian oil exports down marginally for January

Canada exported about 2 percent fewer barrels of oil per day in January than it did at the same time last year, the National Energy Board reported. NEB published data on total crude oil exports for January, the last full month for which export data are available. Overall, it said Canada exported around 2.7 million barrels per day for January 2014, about 2.3 percent less than the same time last year. The bulk of Canadian oil deposits are in Alberta province in the form of the heavier grade of oil sands, or bitumen. In January 2014, Canada exported 1.8 million barrels of oil sands per day, about 1 percent more year-on-year, NEB reported Tuesday. NEB didn’t break down exports by destination in its Tuesday data set. Nearly all of Canada’s oil exports are designated for the U.S. market, though Canadian Prime Minister Stephen Harper has tried to woo Asian […]

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London awards grants for low-carbon heating schemes

The British government said Wednesday two dozen communities received more than $3 million in grants to develop heating networks using low-carbon technology. British Energy and Climate Change Minister Greg Barker said using energy from waste, or what he described as recovered heat from the industrial sector, would help advance a low-carbon economy. "Heat networks are a defining part of our smarter, cleaner energy future," he added in a statement Wednesday. Grants for 24 local communities are valued at a combined $3.4 million. More than 50 local communities since January 2014 have received similar developmental grants ranging in value from $24,000 to $410,000 each. As part of a broader European agreement, the British government is committed to using renewable energy to meet 20 percent of its demand by 2020. © 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly […]

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Ukraine Crisis Spurs Calls for Europe to Rethink Shale

The crisis in Ukraine has intensified calls from industry and political leaders—including senior U.S. officials—for Europe to develop its own shale industry. Proponents hope doing so will help wean the Continent off gas imported from Russia, which currently exports around 30% of the region’s gas needs, and shield Europe’s energy supply from geopolitical disputes with its Eastern neighbor. President Barack Obama , speaking at a news conference in Brussels on Wednesday, also urged European leaders to find ways to become less dependent on Russian energy and consider its own energy sources in the wake of the crisis. "This entire event, I think, has pointed to the need for Europe to look at how it can further diversify its energy sources," he said. With 470 trillion cubic feet of potentially recoverable shale-gas reserves, Europe has around 80% of the resource available in the U.S., according to U.S. Energy Information Administration […]

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The outlook for Russian oil output in a post-Crimea world

Could economic sanctions finally halt Russia’s crude production growth? In June last year, I wrote a blog post for The Barrel making much of the fact that Russia is the world’s biggest oil producer and has been for quite a while. Its output has consistently ranked above that of Saudi Arabia in the past few years and production has continued to rise in recent months, averaging some 10.53 million b/d in February this year. There is no sign of output starting a material decline — like those seen in a number of the world’s more mature producing regions such as the UK, Norway and Denmark — and Russia keeps finding new ways to pump more oil whether it be through improved technology or tapping new, under-explored regions like East Siberia. So while the geology and the technology keep on bringing in the barrels, what factors are there that could […]

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World crude production 2013 without shale oil is back to 2005 levels

Unnoticed by the mainstream media, US shale oil covers up a recent decline of crude oil production of 1.5 mb/d  in the rest of world (using data up to Oct 2013). This means that without US shale oil the world would be in a deep oil crisis similar to the decline phase 2006/07  when oil prices went up. The decline comes from many countries but is also caused by fights over oil and oil-related issues in Iran, Libya and other countries which can be seen on TV every day. Fig 1: World’s incremental crude oil production Oct 2013 Incremental production for each country is calculated as the difference between total production and the minimum production between Jan 2001 and Oct 2013. The sum of minima is the base production. Countries which had substantial changes in production appear as large areas in the graph. Russia supplied – quite reliably – […]

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Export Stupidity

Congress is holding hearings this week on the possible lifting of a US oil export ban instituted in the 1970s to promote national energy self-sufficiency and has invited a  number of “experts” with dubious ties to the oil and gas industry  to explain to them why it’s such a good idea. Following Russia’s near-annexation of Crimea, American politicians are intent on undercutting Russian president Vladimir Putin’s greatest geopolitical asset—his country’s oil and natural gas exports. If the US could supply Europe with large amounts of fuel, that would reduce the Continent’s dependency on Russia while depriving Putin of needed revenues. Lawmakers from both parties are also using the hearings to urge the Obama administration to speed up natural gas exports as a hedge against the threat of a conceivable Russian cutoff of gas supplies to Ukraine and other countries. Four […]

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The Real Inflation Fear – US Food Prices Are Up 19% In 2014

  We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 – up a staggering 19% …     h/t Bloomberg’s Chase van der Rhoer   Comment viewing options Flat list – collapsed Flat list – expanded Threaded list – collapsed Threaded list – expanded Date – newest first Date – oldest first 10 comments per page 30 comments per page 50 comments per page 70 comments per page 90 comments per page 150 comments per page 200 comments per page 250 comments per page 300 comments per page Select your preferred way to display the comments and click "Save settings" to activate your changes. Laws, […]

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Peak Oil: “Show-Stoppers”

Freshly fracked wells sent U.S. oil production soaring 39 percent since 2011. That’s the steepest climb in history, and if production continues apace, the U.S. would become the world’s biggest source of oil by 2015, according to the U.S. Energy Information  Administration. Rapid well declines threaten to spoil that promise. The average flow from a shale gas well drops by about 50 percent to 75 percent in the first year, and up to 78 percent for oil, said Pete Stark, senior research director at IHS Inc. ‘The decline rate is a potential show stopper after a while,’ said Stark, a geologist with almost six decades in the oil patch. ‘You just can’t keep up with it.’ [1] That’s an interesting comment, given that the company Mr. Stark works for is more commonly known for its sunny optimism about our future fossil fuel supply. FRACKING ISN’T FREE OR EASY The […]

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Crude Becalmed Ahead Of U.S. Stockpile Data

Crude-oil prices are becalmed Wednesday, with no clear direction emerging. Brent crude for May delivery on London’s ICE Futures exchange was up 12 cents at $107.11 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May were up 15 cents at $99.34 a barrel. The American Petroleum Institute, an industry group, Tuesday reported another massive weekly build in U.S. crude stocks. If these figures are confirmed by the Energy Information Administration later, U.S. stock levels will even faster approach the record levels seen last year "and is a good 5% above the five-year average," JBC Energy Markets said. "The easing political tensions in Ukraine will prompt market participants to switch focus back to the macro picture, with U.S. durable goods orders expected later today, initial jobless claims tomorrow and the University of Michigan confidence index on Friday," said Kash Kamal of Sucden Research. […]

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Natural Gas Prices Jump on Profit-Taking, Late-Season Cold Snap

Natural-gas prices jumped 3.2% Tuesday as short-sellers took profits from three straight losing sessions, and as another Eastern snowstorm boosted expectations of increased demand. Natural gas for April delivery settled up 13.5 cents at $4.411 a million British thermal units on the New York Mercantile Exchange. The April contract expires Thursday, and the majority of the volume in the market has shifted to the May contract, which ended up 14.2 cents, or 3.3%, at $4.414/mmBtu. Market prices declined 4.6% over the prior three trading days, and analysts and brokers said Tuesday’s uptick was the result of traders locking in profits by closing out bets that the market would fall. Prices have declined to the lowest level […]

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Angolan oil will peak in 2016, IMF says

Economic growth in Angola will slow in 2017 as oil output declines, according to the International Monetary Fund (IMF). The economy is forecast to expand by 5.3 percent this year, and by 5.5 percent and 5.9 percent in the following two years before the rate slows to 3.3 percent in 2017, IMF figures show. Crude oil production in Africa’s second-largest producer is set to decline to 1.77 million barrels a day in 2017 from 1.9 million barrels a day in 2016. “This reflects the expectation that oil production from currently known reserves will peak and then start to fall,” Nicholas Staines, the IMF representative in Angola, said last week. “The timing of this turnaround could well be pushed back as new reserves are discovered.” Angola produced 1.69 million barrels of oil a day last month. The country is attempting to diversify its economy away from oil, which accounts for […]

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Protesting in Venezuela, With Antipathy Toward Cuba’s Government

Enraged as they are by their nation’s leaders, many of the protesters who have spilled onto Venezuela’s streets have their eyes fixed on another government altogether, one they resent perhaps just as bitterly as their own: Cuba’s. The Cuban government and its president, Raúl Castro, they contend, have leeched off Venezuela’s oil wealth, grafted Cuba’s rigid brand of socialism onto their country and helped choreograph a broad crackdown on dissent. Their rancor is echoed by the Cuban opposition, which has thrown itself behind the Venezuelan protesters’ cause with gusto, sharing photos and videos of protests and police abuse on Twitter, urging Venezuelans to resist and even rapping an apology for what they call Cuba’s meddling. The fixation with the influence of Cuba in Venezuela’s affairs reflects how meshed the two countries’ economic and political realities remain a year after the death of Venezuela’s longtime president, Hugo […]

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Asia needs all the gas it can get, Chevron says

Expanding Asian economies will need to tap into as many sources of liquified natural gas as they can to meet growing demand, a Chevron official said from Seoul. "My view is that we’re going to need all sources of natural gas supply to meet Asian gas demand in the years ahead and LNG will be the key to delivering sufficient supply," Pierre Breber, a vice president in charge of midstream operations for Chevron, said at a gas conference in Seoul. South Korea has no international natural gas pipelines and therefore relies on LNG shipments to meet its demands. It’s the second-largest importer of LNG in the world. "Not all gas consumers in Asia have sufficient domestic resources to draw from," the vice president said. "That leaves the balance of Asian natural gas demand — over 40 percent — to be met through imports, by pipeline and LNG." As a […]

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Ukraine Crisis Spells Opportunity for Asian Gas Buyers

;As Europeans fret about the stability of their natural gas supply from Russia amid a standoff over the latter’s , gas buyers in Asia are looking to benefit from a situation that may improve import opportunities. The possibility that sanctions imposed by Western countries may eventually extend to Russia’s gas exports is prompting a cautious stance among buyers of Russian gas and investors in Russian projects, but many are optimistic that gas will continue to flow. "We hope that this will pass in a way that doesn’t impact business and that we are able to continue our current operations and our future projects," said Maarten Wetselaar, executive vice president at Royal Dutch Shell PLC’s integrated gas business. "Our business is to deal with it and not to walk […]

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South Korea takes on more Iranian crude

The South Korean government said Tuesday its February imports of Iranian oil more than doubled year-on-year to 8.1 million barrels. Iran secured relief from some international sanctions in exchange for agreeing in November to curb some of its nuclear research activity. The U.S. government said oil restrictions remain in place, though Iranian customers can secure relief from sanctions if they show a decline in crude oil purchases. South Korea secured a six-month extension to the sanctions waiver in November. Data published Tuesday by the state-run Korea National Oil Corp. show imports of Iranian crude oil doubled last month when compared with February 2013. Year-on-year, South Korean imports of Iranian crude declined in January by 66 percent and by 34 percent in December. Iran has touted its investment potential since brokering an interim nuclear deal with Western powers in November. Representatives from French energy company Total […]

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Punishing Putin Fuels Energy-Export Drive in Congress

In the decades after the Arab oil embargo, the U.S. restricted energy exports to promote self sufficiency as a matter of national security. Now Russia’s annexation of Crimea and massing of troops on the Ukrainian border is fueling a push in Congress to remove those limits to punish President Vladimir Putin . “In the 70s, we argued that for the sake of national security we have to prohibit exports,” Michael Webber , deputy director of the Energy Institute at the University of Texas at Austin, said in an interview. “Now we argue that for the sake of national security we have to allow exports. Our mind has flipped in 40 years.” Three congressional committees are holding hearings this week on whether the U.S. should sell more of its growing oil and gas resources overseas, in part to lessen European dependence on Russian oil and gas. Europe imports about 30 […]

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Booming U.S. NGL Exports Idled With Houston Channel Shut

The closing of the Houston Ship Channel is idling ships that carried a record amount of U.S. natural gas liquids exports last year, raising questions about the need for geographic diversity in the burgeoning market. Most U.S. capacity to export NGLs is on the channel, said Peter Fasullo, a principal at Houston-based energy consultant EnVantage Inc. The U.S. averaged 475,000 barrels a day of exports in 2013, up from 164,000 in 2010, according to Energy Information Administration data. Two companies, Enterprise Products Partners LP (EPD) and , have channel operations that combine to represent 380,000 barrels a day of export capacity, Fasullo said. “That’s all going to go offline,” Fasullo said. “Ships can’t get into the terminals to get loaded, and those that are loaded can’t get out.” There is no estimate on when the 52-mile (83-kilometer) channel will reopen, U.S. Coast Guard Captain Brian Penoyer said yesterday at […]

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US Senate Hears Pleas For More Natural Gas Exports

Calls to increase U.S. natural gas exports to counter Russian influence across Europe grew louder Tuesday amid concerns that Russia will move deeper into Ukraine. Lithuania’s energy minister, Jaroslav Neverovic, pleaded in emotional terms for U.S. help, saying his country is "100 percent" dependent on Russia for natural gas and has to pay 30 percent higher prices for it than other countries in Europe. "This is not just unfair, this is abuse," Neverovic told the Senate Energy and Natural Resources Committee. Lawmakers from both parties used the hearing to urge the Obama administration to speed up natural gas exports as a hedge against the possibility that Russia could cut off its supply of gas to Ukraine and other countries. Four Central European nations — Hungary, Poland, Slovakia and the Czech Republic — made formal requests for U.S. exports as Moscow moved to annex part of Ukraine. […]

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WoodMac: US tight-oil market ‘too robust to bust’

A drop in global oil price levels or a significant widening of the differential between global oil prices and inland realizations are just two of the ways the North American tight-oil boom could go bust, according to a recent analysis from Wood Mackenzie. The research and consultancy group, which reported its findings Mar. 25 at the American Fuel & Petrochemical Manufacturers annual conference in Orlando, Fla., stated that 70% of US reserves would remain economic with global oil prices at $75/bbl. “There is not much US producers can do to influence global oil prices,” said Harold York, WoodMac principal downstream research analyst. “Supply and demand fundamentals and nonmarket dynamics around the globe keep the price environment well above the break-even economics levels of several US tight oil plays,” he said, adding that nearly all proved reserves of US light tight oil (LTO) are viable at today’s prices. WoodMac reported […]

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Oregon LNG nod draws mixed reviews

The American Petroleum Institute welcomed a permit for LNG exports from Oregon, though the Sierra Club said it came with too many environmental risks. The U.S. Energy Department gave its consent to the Jordan Cove Energy project in Coos Bay, Ore., to export domestically produced liquified natural gas to countries that don’t have a free-trade agreement with the United States. American Petroleum President Jack Gerard said the LNG decision gives foreign energy markets an added layer of energy security. "We urge the administration to continue making U.S. exports a priority," he said in a statement . There are more than 20 applications pending for non-FTA exports of LNG. The federal government needs to weigh such projects against the public’s interest before giving its consent. Environmental groups are critical of LNG exports, saying it will lead to more hydraulic fracturing, the controversial drilling practice dubbed fracking. Nathan Matthews, an attorney […]

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Canadian National Railway to Phase Out Older Tank Cars Used for Fueling

Co. said Tuesday it will gradually phase out the older tank cars used to transport diesel fuel that it owns as part of its effort to improve safety in the wake of several fiery derailments. Canada’s biggest railway said it would spend 7 million Canadian dollars ($6.25 million) to remove from service the 183 DOT-111 railcars that transport fuel for its locomotives. The rail operator said it would replace those cars with 40 new ones meeting the latest safety specifications by the end of the year. It also plans to phase out and replace 143 DOT-111 cars that it leases for fueling. Mark Hallman, a spokesman with CN, said that DOT-111 railcars that ship crude oil across its rail network are owned by oil shippers and leasing agencies. He said Montreal-based CN is providing incentives to customers to replace the older DOT-111s and acquire more robust tank cars that […]

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Russia’s Black Sea Oil Flows Declining as Baltic Cargoes Gain

Russia is poised to cut crude exports from the biggest oil port near Crimea next month while shipping more in the Baltic Sea about 1,000 miles away. Cargoes will leave the Black Sea port of Novorossiisk at about 620,000 barrels a day in April, the lowest rate since at least 2008, according to loading programs obtained by Bloomberg News . Daily shipments from Primorsk in the Baltic will average 1 million barrels, the most since November. Igor Dyomin, a spokesman for OAO Transneft, Russia’s pipeline operator, declined to comment. Russia increases sales from Primorsk in April most years . Next month’s change in volumes between the country’s two main oil terminals will be the largest in a year when measured in barrels. There is also maintenance work scheduled on a pipeline running to Novorossiisk, which is about 70 miles from Crimea, the peninsula Russia annexed this month. “One loading […]

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G7 ties energy security to Ukraine's future

Energy security for Ukraine is an essential part of national security, Western leaders said in a joint declaration from The Hague. Leaders from Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, along with high-ranking officials from the European Union, met in The Hague, Netherlands, to express their support for Ukraine’s sovereignty, territorial integrity and independence. The leaders in a joint declaration , published Monday, said energy security was part of national security for Europe and Ukraine. "We remain united in our commitment to provide strong financial backing to Ukraine, to coordinate our technical assistance, and to provide assistance in other areas, including measures to enhance trade and strengthen energy security," they said. Ukraine descended into chaos in November when the government of ousted President Viktor Yanukovych opted to suspend efforts to sign free trade and association agreements with the EU. Russia has […]

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G7 ties energy security to Ukraine’s future

Energy security for Ukraine is an essential part of national security, Western leaders said in a joint declaration from The Hague. Leaders from Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, along with high-ranking officials from the European Union, met in The Hague, Netherlands, to express their support for Ukraine’s sovereignty, territorial integrity and independence. The leaders in a joint declaration , published Monday, said energy security was part of national security for Europe and Ukraine. "We remain united in our commitment to provide strong financial backing to Ukraine, to coordinate our technical assistance, and to provide assistance in other areas, including measures to enhance trade and strengthen energy security," they said. Ukraine descended into chaos in November when the government of ousted President Viktor Yanukovych opted to suspend efforts to sign free trade and association agreements with the EU. Russia has […]

Posted On : Published By : Tom Whipple
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3 Surprising Sources of Oil Pollution in the Ocean

  The Texas spill is obvious, but automobile oil is a bigger contributor. An iridescent sheen spreads from a drop of crude oil on top of the water in the Gulf of Mexico. Obvious oil spills, like the 168,000 gallons (635,000 liters) of oil that leaked into Galveston Bay on Saturday, usually make national news, accompanied by pictures of oil-blackened wildlife . But such publicized events account for only a small part of the total amount of oil pollution in the oceans—and many of the other sources, such as automobile oil, go largely unnoticed, scientists say. In fact, of the tens of millions of gallons of oil that enter North American oceans each year due to human activities, only 8 percent comes from tanker or oil pipeline spills, according to the 2003 book Oil in the Sea III by the U.S. National Research Council of the National Academy of […]

Posted On : Published By : Tom Whipple
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Well integrity a fracking concern, British study finds

March 25 (UPI) — A study published Tuesday in the British journal Marine and Petroleum Geology finds underground wells used for shale exploration may cause water contamination. A study from Research Fracking in Europe, or ReFINE, finds the structural casing of underground wells may present a risk to underground water supplies. In the Marcellus shale play in the United States, the study found around 6 percent of the 8,000 wells had some sort of well integrity issue. In the United Kingdom, it found about one half of one percent of active wells showed evidence of failure. With European countries looking to replicate U.S. success with shale exploration, the study found the data on well failure rates of onshore wells in Europe were "scarce." Richard Davies, the project’s leader from Durham University, said well integrity will be an issue if the shale narrative evolves in Europe. "The data from the […]

Posted On : Published By : Tom Whipple
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Revisiting the IEA’s World Energy Outlook 2013

I was going over the IEA’s World Energy Outlook 2013 and noticed a few things you might find interesting. Exactly what is their opinion on Peak Oil? Here, cut and pasted from the report. Got that? The URR is great enough to delay any peak until after 2035. Here is one of their graphs that indicate how much they think is left, coal, gas and oil. Okay 54 years of proven reserves. That puts the peak out to well past mid century. Likely well past 2100 if you count those remaining recoverable resources. And just who has all this oil? 2.2 trillion barrels of conventional crude oil resources. However only 1.7 trillion barrels of that has a 90% probability of being recoverable. Of this the Middle East has the lions share, 971 billion barrels of resources with a 90% probability of recovering 813 billion barrels of that.   The […]

Posted On : Published By : ASPO-USA
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Climate Change and Human Extinction – A Personal Perspective

Just one source, methane from the arctic…leads us [by 2030] to…a temperature beyond which humans have never existed on the planet.” Guy McPherson, professor emeritus of University of Arizona in Environmental Studies, shares highlights from his compilation of recent reports on climate change effects. Their number and extent have grown exponentially since he began five years ago. In this interview, he shares his personal journey through despair and deep grief to recent acceptance. “I suspect we get to see the end of this movie… Nobody else in human history [has]… We get to see how humans act in the face of their own demise.” Episode 262. [guymcpherson.com] Watch Guy’s Climate Change presentation February 2014

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Peak Oil: Laherrère, Real Curves, and Official Curves

The thin blue line at the top right is Laherrère’s prediction of the grand totals, differing considerably from the others. He explains: “The confidential technical data on [mean values of proven + probable reserves] is only available from expensive and very large scout databases. . . . There is a huge difference between the political/financial proved reserves [so-called], and the confidential technical [proven + probable] reserves. . . . Most economists . . . rely only on the proved reserves coming from [the Oil and Gas Journal, the US Energy Information Administration], BP and OPEC data, which are wrong; they have no access to the confidential technical data.” The difference between his figures and the various government figures is enormous. It reminds me of the 1950s, when M.K. Hubbert and others were saying one thing, and the government was saying quite the opposite. A few years ago I met […]

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WTI Oil Near $100 Before U.S. Crude Stockpile Data; Brent Steady

West Texas Intermediate traded near $100 a barrel before data that is forecast to show crude stockpiles rose for a 10th week in the U.S., the world’s biggest oil user. Brent was steady in London . Futures were little changed in New York. Crude supplies probably expanded by 2.5 million barrels last week, according to a Bloomberg News survey before an Energy Information Administration report tomorrow. U.S. authorities are planning inspection flights over the Houston Ship Channel, home to 11 percent of the nation’s refining capacity, as the waterway remains closed for a fourth day after a fuel oil spill. “Supply is ample,” said Jonathan Barratt , the chief executive officer of Barratt’s Bulletin in Sydney who predicts investors may buy West Texas contracts if prices fall to about $97 a barrel. “WTI looks like it wants to consolidate.” WTI for May delivery was at $99.72, up 12 cents, […]

Posted On : Published By : Tom Whipple
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DOE approves LNG exports to non-FTA countries from Oregon project

The US Department of Energy conditionally approved Jordan Cove Energy Project LP’s application to export LNG through its proposed terminal on Oregon’s coast to countries that do not have a free-trade agreement with the US. The project near Coos Bay will be permitted to ship overseas as much as the 800 MMcfd of gas equivalent for 20 years subject to environmental review and final regulatory approvals, DOE’s Fossil Energy Office said in its Mar. 24 order . Federal law assumes that gas exports to countries having an FTA with the US are in the national interest. For those that don’t have an FTA, DOE must make a determination before they are permitted. DOE also said it has decided that the Jordan Cover project’s request for LNG export authorization to non-FTA countries was in the US national interest after considering possible economic, energy security, and environmental impacts, and reviewing more […]

Posted On : Published By : Tom Whipple
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Hundreds of Egyptians Sentenced to Death in Killing of a Police Officer

; A crowd gathered outside a courthouse in the town of Matay erupted in wailing and rage on Monday when a judge sentenced 529 defendants to death in just the second session of their trial, convicting them of murdering a police officer in anger at the ouster of the Islamist president. Here in the provincial capital just a few miles away, schools shut down early, and many stayed indoors fearing a riot, residents said. But the crowds went home, and soon the streets were quiet. After nine months of escalating repression that culminated in the extraordinary verdict, the military-led government that removed President Mohamed Morsi of the Muslim Brotherhood appears to have finally cowed his supporters into near-silence here in […]

Posted On : Published By : Tom Whipple
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Libyan Oil Output Plunges to Six-Month Low as Elephant Halted

Libya ’s oil production plunged to the lowest in about six months after protesters seeking jobs and development projects halted a western oilfield run by Eni Spa. (ENI) Demonstrators forced the Elephant field to halt today, cutting the nation’s production to 150,000 barrels a day from 230,000 barrels yesterday, Mohamed Elharari, a spokesman for National Oil Corp., said by phone from Tripoli. Paolo Scaroni, Eni’s chief executive officer, met with Libyan Prime Minister Abdullah Theni today to discuss increasing production in the North African country. Protesters in the Western Mountain range, south west of the capital Tripoli, shut a valve on a pipeline that carries crude from Elephant to the Mellitah oil export terminal, Elharari said. The disruption is compounding a rebellion in the east, depriving the country from most of its oil production. Curtailed Libyan supply has bouyed the price of Europe ’s Brent crude this year, according […]

Posted On : Published By : Tom Whipple
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Libya releases crew of renegade oil tanker

The crew of a renegade oil tanker seized by the U.S. Navy and handed over to Libya has been released and will be deported, a Libyan investigator said Monday. Al-Sadik al-Sour, the head investigator for Libya’s prosecutor general, did not give the nationality of the 21 crew members. He said they were referred to border police Monday to send them out of the country. Three eastern Libya militia members who were aboard the vessel will be detained for 14 days to be interrogated by prosecutors over their role in the saga. Al-Sour said investigations revealed that the crew members were working at gunpoint, according to witnesses interrogated at the militia-held eastern port where the vessel was loaded with an estimated 350,000 barrels of oil. The ship remains in Tripoli and is due to be unloaded in the port of Zawiya refinery, 40 kilometers (25 miles) […]

Posted On : Published By : Tom Whipple
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Venezuela unveils new currency market

– President Nicolas Maduro’s cash-strapped government unveiled a new currency market Monday that allows Venezuelans to buy and sell dollars legally for the first time since 2010. Opposition leader Gov. Henrique Capriles said the so-called Sicad 2 exchange system is akin to a devaluation and will eat away at the savings of poor families. The government is counting on the new exchange mechanism to alleviate pressure on a black market Venezuelans turn to when they can’t purchase hard currency from the government at the official 6.3 bolivars per dollar rate. Maduro’s government has been increasingly safeguarding its shrinking supply of dollars as oil production declines and deficit spending remains high. That’s led it to fall behind on payments to foreign airlines and carmakers, exacerbating a shortage of imported goods.

Posted On : Published By : Tom Whipple