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U.S. lifts ban blocking BP from new government contracts

The U.S. government lifted a ban on Thursday that excluded BP from new federal contracts, after the British oil major filed a lawsuit saying it was being unfairly penalized for its 2010 Gulf of Mexico spill. The Environmental Protection Agency and BP said they reached an agreement ending the prohibition on bidding for federal contracts on everything from fuel supply contracts to offshore leases after the company committed to a set of safety, ethical and corporate governance requirements. Shares of BP traded in the United States rose about 1 percent to $48.09 after the close of regular trading on the New York Stock Exchange, a sign investors were hopeful the company could now try to grow its U.S. offshore operations. "It’s time to let them out from the doghouse. Let’s let them get back to work," said Mike Breard, energy company analyst with Hodges Capital Management […]

Posted On : Published By : Tom Whipple
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Shell Cuts Americas Spending by 20%, Extends Refinery Sales

Royal Dutch Shell Plc (RDSA) plans to lower spending in the Americas by a fifth as Europe ’s largest oil producer focuses on more profitable operations. It’s “not acceptable” that Shell, now deploying about 36 percent or $80 billion of its capital in North America, has been losing money, Chief Executive Officer Ben van Beurden said. Shell expects to reduce capital investment in upstream operations, or exploration and production, in the Americas by 20 percent this year and North American resource spending by the same proportion, the company said today in a presentation . “That leaves us with about $10 billion in total for the upstream Americas and about $4 billion for the shale,” Chief Financial Officer Simon Henry said. “Some of that does include Argentina and Canada. It’s not all in America.” Van Beurden has pledged to shrink spending costs this year and speed up asset sales including […]

Posted On : Published By : Tom Whipple
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Canada's energy stardom expanding, government says

Canada is positioned to take advantage of growing energy demand and become a "21st century energy superpower," Natural Resources Minister Joe Oliver said. The Canadian government estimates production from its vast oil deposits should reach 5 million barrels per day by 2035. Oliver told delegates at an energy conference in Ottawa, Ontario, those reserves could help meet the world’s growing appetite for oil. "We have solid economic fundamentals and unprecedented energy wealth," he said. "Canada is emerging as a 21st century energy superpower — unmatched in reliability, responsibility, and potential." The Organization of Petroleum Exporting Countries said in its monthly market report for March it revised its world oil demand growth for 2013 up by 70,000 barrels per day to 1.05 million barrels per day. Canadian Prime Minister Stephen Harper has sought to court Asian and European consumers in an effort to diversify an […]

Posted On : Published By : Tom Whipple
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Canada’s energy stardom expanding, government says

Canada is positioned to take advantage of growing energy demand and become a "21st century energy superpower," Natural Resources Minister Joe Oliver said. The Canadian government estimates production from its vast oil deposits should reach 5 million barrels per day by 2035. Oliver told delegates at an energy conference in Ottawa, Ontario, those reserves could help meet the world’s growing appetite for oil. "We have solid economic fundamentals and unprecedented energy wealth," he said. "Canada is emerging as a 21st century energy superpower — unmatched in reliability, responsibility, and potential." The Organization of Petroleum Exporting Countries said in its monthly market report for March it revised its world oil demand growth for 2013 up by 70,000 barrels per day to 1.05 million barrels per day. Canadian Prime Minister Stephen Harper has sought to court Asian and European consumers in an effort to diversify an […]

Posted On : Published By : Tom Whipple
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Pileups at BNSF Railway Is Causing Delays for Shippers of Goods Ranging From Coal to Sugar

A major snarl in railroad traffic is ricocheting through the supply chains of businesses across the U.S. A major snarl in railroad traffic is ricocheting through the supply chains of businesses across the U.S., causing delays and losses for shippers of goods ranging from coal to sugar. Many of the problems stem from pileups at BNSF Railway Co. in a critical northern stretch of the country where it is shipping crude oil from North Dakota’s booming Bakken Shale region. The railroad, one of the biggest in North America, was already taxed by the heavy demand for oil transport. But its difficulties multiplied when it ran out of locomotives and crew, as a bitter winter forced it to use smaller trains. That has caused a ripple effect across the country as shipments have been […]

Posted On : Published By : Tom Whipple
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U.S. Shale Boom Creates Chances for Propane Sales to China

Cheap natural gas flowing from the has created new opportunities for U.S. energy companies to market fuels to China. China Petroleum & Chemical Corp., the country’s largest oil refiner, said Friday that it signed a long-term contract to buy liquefied petroleum gas, or propane, from , a U.S. refiner that spun off from ConocoPhillips . China’s state oil giant, known as , didn’t disclose the length, volume or value of the deal. "There has been a substantial increase in propane supply due to the rapid development of shale gas in the U.S.," Sinopec said, adding that the deal will help diversify its sources of propane, a cheap byproduct of oil refining and natural-gas extraction. Sinopec’s latest deal comes as more Chinese petrochemical companies begin sourcing propane from the U.S. to feed a wave of new chemical plants that can turn propane into more valuable propene, a building block for […]

Posted On : Published By : Tom Whipple
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New York county puts freeze on Bakken crude

Government officials in Albany County, NY, have issued a moratorium on Global Partners LP’s plans to increase the processing of Bakken crude oil at the Port of Albany pending a public health investigation by the county’s health department. Though primarily targeting Bakken crude deliveries, the order, which was issued on Mar. 12, stipulates a county-wide moratorium on the heating of any type of crude oil, including volumes arriving from Canadian oil sands . According to the order, the heating and storage of Bakken crude arriving to the port could pose a threat to the safety of county residents due to a combination of its extreme volatility and flammability as well as the inferiority of most of the tank cars used to rail those crude volumes into the county. The order additionally places a moratorium on any expansion or increase in Global Partners’ current operations and on the initiation of […]

Posted On : Published By : Tom Whipple
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The Crimean crisis could spell trouble for a Morgan Stanley deal

Russia’s intervention in Ukraine signals trouble for OAO ‘s bid to buy Morgan Stanley ‘s oil-trading unit, according to people involved in the deal and others familiar with the U.S. government’s approval process. The proposed acquisition by Russia’s biggest oil producer, which is state-controlled, needs U.S. government approval by the Committee on Foreign Investment. CFIUS, a secretive government body, weighs national security risks and can sink deals. One person familiar with the deal said that if U.S.-Russia relations deteriorate further the companies would reassess whether they can proceed. Rosneft is paying several hundred million dollars for the business, the person familiar with the deal said, adding the companies are still months from seeking official U.S. government approval. A Rosneft spokesman said the companies "are working together according to an agreed schedule." Morgan Stanley said it wasn’t deterred. "We intend to submit the transaction for all necessary regulatory approvals, and […]

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West readying sanctions after Crimea vote

With little hope of halting a vote to separate a strategic Ukraine peninsula from the rest of the country, the West is readying to impose harsh sanctions on Russia for what U.S. officials described as Moscow’s insistence in undermining the new upstart government in Kiev, and fueling tensions among those who oppose it. U.S. Secretary of State John Kerry flew to London on Friday to meet with Russian Foreign Minister Sergey Lavrov in a last-minute bid to stave off a new chapter in the East-West crisis over Ukraine. On Sunday, Ukraine’s pro-Russian Crimea region will vote whether to secede, and perhaps join Russia, in anger over new leaders in Kiev who seek to forge stronger economic ties with Europe. European and U.S. leaders have repeatedly urged Moscow to pull back its troops in Crimea, and stop encouraging local militias there that are hyping up the vote […]

Posted On : Published By : Tom Whipple
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No fare, pollution: French public transport free

Air pollution that has turned Paris skies a murky yellow is giving a break to millions of French travelers – all public transportation in the Paris region and two other cities is free for the next three days. Nearly three-quarters of France is under alert in what the European Environment Agency says is the worst air pollution since 2007. Subways, buses and trains are free Friday through Sunday in the entire Paris region, as well as the cities of Caen and Rouen. Bike-shares are also free, as are one-hour sessions for electric car shares. Meteorologists say unusually warm days followed by cool nights have worsened the situation. An environmental group brought a complaint earlier this week denouncing the "inertia of the government" that it says has put lives in danger.

Posted On : Published By : Tom Whipple