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China pushing for new-energy cars, but challenges abound

In his government work report during the Two Sessions, Premier Li Keqiang said tackling air pollution was at the top of the government’s list. To attain this goal, a multi-pronged strategy is needed. One solution is to develop new energy vehicles, something easier said than done. A green solution to a chronic problem. New energy vehicles are rapidly becoming a new trend, after the number of smoggy days in the country hit a record high of 52 last year. During the Two Sessions, some industry experts predicted 2014 would witness a surge in the sale of new energy cars. "This year might be a critical year for the popularity of electric cars. I remember 2003 marked the rise of families buying cars because of the SARS outbreak. And this year, due to the prevalent smog, electric vehicles might see a boom in sales," said […]

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ASIA THERMAL COAL: Chinese buyers draw back as domestic market buckles

"Shenhua has achieved what it wanted by cutting prices. It may not want to cut its prices again this month," said a Shanghai-based trader. Smaller and medium-sized coal producers in China were among the most aggressive sellers in Friday’s market, as some seek to unload their remaining stock with a view to existing the business, said sources in China. In the seaborne market for China, April-arrival high-ash Australian cargoes were heard to trade this week at around $75.50/mt CFR in a thin market as Chinese buyers drove hard bargains. A Capesize cargo of Australian 5,500 kcal/kg NAR coal was being offered Friday at slightly above $76/mt CFR South China for April arrival, while bids were at $75.50/mt CFR, as heard through broker Starfuels. "The arbitrage into China for imported thermal coal is closed," said one market participant in Singapore. April-May delivery cargoes of 5,500 kcal/kg NAR Australian thermal coal […]

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Keystone XL pipeline's strategic worth debated

A former White House official said the Keystone XL pipeline could be a strategic asset, though Sierra Club’s director said it’s not worth the climate threats. The U.S. Senate Foreign Relations Committee heard testimony Thursday over whether or not the proposed Keystone XL oil pipeline from Canada is in the national interest. Proposed more than five years ago by pipeline company TransCanada, the project has become the scapegoat for debates over U.S. energy policy. James Jones , a retired Marine general who served as national security adviser to President Obama , told the Senate approving Keystone XL would rival "international bullies" who are using energy as a weapon. With geopolitical tensions in Ukraine tied to Russia’s influence over Eastern European energy markets, Jones said denying Keystone would help the Kremlin’s position. "There is no doubt in my mind that the outcome [of the Keystone […]

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Keystone XL pipeline’s strategic worth debated

A former White House official said the Keystone XL pipeline could be a strategic asset, though Sierra Club’s director said it’s not worth the climate threats. The U.S. Senate Foreign Relations Committee heard testimony Thursday over whether or not the proposed Keystone XL oil pipeline from Canada is in the national interest. Proposed more than five years ago by pipeline company TransCanada, the project has become the scapegoat for debates over U.S. energy policy. James Jones , a retired Marine general who served as national security adviser to President Obama , told the Senate approving Keystone XL would rival "international bullies" who are using energy as a weapon. With geopolitical tensions in Ukraine tied to Russia’s influence over Eastern European energy markets, Jones said denying Keystone would help the Kremlin’s position. "There is no doubt in my mind that the outcome [of the Keystone […]

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U.S. rail industry sees exponential growth in oil delivery

The Association of American Railroads said 285 million barrels of crude oil were delivered on the U.S. rail system last year, a 74 percent increase from 2012. The AAR reported fourth quarter 2013 rail deliveries of crude oil were 108,590 carloads, or the equivalent of about 76 million barrels of oil. For full 2013, the AAR said Thursday 407,642 railcars, or about 285 million barrels of oil, traveled on the U.S. rail network, a 74 percent increase from the previous year. Industry officials said the accelerated pace of U.S. oil production has strained the existing pipeline capacity, prompting energy companies to rely on rail as an alternate delivery method. The U.S. Energy Information Administration said in its short-term market report, published earlier this week, U.S. crude oil production should reach 8.4 million barrels per day by the end of 2014, a 12 percent increase […]

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Surge in Oil From U.S., Canada Helps Meet Demand

The dramatic increase in oil supply from the U.S. and Canada—coupled with a surprise surge in Iraqi output—helped stave off global demand pressures brought on by a cold U.S. winter and geopolitical concerns over rising tensions between Russia and Ukraine. The International Energy Agency, a watchdog for the world’s biggest energy consumers, said North American output helped mitigate a bigger-than-expected draw from global crude inventories, caused by a colder than usual winter in the U.S. also helped keep global markets supplied, and prices in check. In recent years, new drilling and extraction techniques employed across North America—from shale-oil deposits in Texas to oil-sands reserves in Alberta—have boosted global supply. amid big, recent output disruptions. U.S. and European economic sanctions against Iran have choked off a big chunk of Iranian oil to world markets, and Libyan unrest has all but shut off that country’s once-prodigious oil shipments. Recent worry centered […]

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Baker Hughes: US drilling rig count spikes to 1,792

The US drilling rig count increased 17 units to 1,809 rigs working during the week ended Mar. 14, reported. The 40-unit rise over the past 2 weeks has enabled the US the eclipse the 1,800 mark for the first time since December 2012. Land-based rigs received an 18-unit boost to 1,737 while offshore rigs edged down a unit to 54. Rigs drilling in inland waters were unchanged from a week ago at 18. Mirroring the rise in land rigs, oil rigs gained 18 units to 1,461. Gas rigs dropped a unit to 344. Rigs considered unclassified were unchanged at 4. rigs climbed 10 units to 1,212 as directional drilling rigs rose 6 units to 204. It was a different story in Canada, where its rig count plummeted 65 units to 522, a vast majority of which were oil rigs. The 62-unit drop in those rigs to 327 came with […]

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Fracking Waste Injection Wells Put Millions of Californians at Risk of Increased Earthquakes

Oil companies are increasing California’s earthquake risk by injecting billions of gallons of oil and gas wastewater a year into hundreds of disposal wells near active faults around Los Angeles, Bakersfield and other major cities, according to a new report from Earthworks , the Center for Biological Diversity and Clean Water Action . A boom in hydraulic fracturing— fracking —in California would worsen the danger of earthquakes, the report finds, by greatly increasing oil wastewater production and underground injection. Extracting the Monterey Shale’s oil could produce almost 9 trillion gallons of contaminated wastewater, the report estimates. That could expose California to a surge in damaging earthquakes like those seen in Oklahoma, Texas and other states experiencing rapidly increased fracking and wastewater production . The report, On Shaky Ground: Fracking, Acidizing and Increased Earthquake Risk in California finds that millions of Californians live in areas threatened by oil industry-induced earthquakes. […]

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CEOs of Biggest Russian Firms Could Be Hit by Sanctions -Paper

The CEOs of Russia’s two largest firms are on a list of those who may be hit next week with European and U.S. sanctions over the Crimea crisis, a German newspaper said on Friday, suggesting tougher than expected measures against Russia’s elite. Moscow shipped more troops and armour into Crimea on Friday and repeated its threat to invade other parts of Ukraine, showing no sign of heeding Western pleas to back off from the worst East-West confrontation since the Cold War. Russia’s stock markets tumbled and the cost of insuring its debt soared on the last day of trading before pro-Moscow authorities in Crimea hold a vote to join Russia, a move all but certain to lead to U.S. and European Union sanctions on Monday. European officials told Reuters the EU was working on a five page list of 120-130 Russians who could […]

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Russian companies withdraw billions from west, say Moscow bankers

Russian companies are pulling billions out of western banks, fearful that any US sanctions over the Crimean crisis could lead to an asset freeze, according to bankers in Moscow. and VTB , Russia’s giant partly state-owned banks, as well as industrial companies, such as energy group Lukoil , are among those repatriating cash from western lenders with operations in the US. VTB has also cancelled a planned US investor summit next month, according to bankers. The flight comes as last-ditch diplomatic talks between Russia’s foreign minister and the US secretary of state to resolve the tensions in Ukraine ended without an agreement. In depth Battle for Ukraine Viktor Yanukovich has been ousted but Russia is flexing its military muscle, fearing a threat to its interests in Ukraine Markets were […]

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ANALYSIS: Potential sanctions may hit Russian oil, gas sectors long term

While many analysts see the sanctions, as they are proposed currently, only being partially effective, others say they could have much wider implications in the long term, potentially affecting the oil and gas sector too. "Though the scope of the sanctions remains uncertain, the effect could be enormous," Russia’s economist Sergei Guriev said in his column with the Project Syndicate, an online platform for expert opinion. A significant fall in foreign direct investment, "which brings not only money but also modern technology and managerial skills, would hit Russia’s long-term economic growth hard," Guriev said, adding that FDI was estimated to have reached $80 billion in 2013. In the short term, "it is trade that matters much more than investment," he said. Russia’s annual exports, mostly oil, gas, and other commodities, are worth nearly $600 billion, with annual imports totaling almost $500 billion, according to Guriev. The most important source […]

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Merkel Says Russian Trade Impact Limited as Industry Backs Curbs

Chancellor Angela Merkel won industry support as she stepped up her threat of sanctions against Russia , saying that Germany could withstand the economic impact of any measures taken. Merkel, speaking in Munich today, compared the 76 billion euros ($106 billion) in bilateral trade with Russia with the more than 60 billion euros in trade Germany has with its neighbor, the Czech Republic, a nation of 10 million people. Russia has a population of about 142 million. “That shows that there is a dimension there, but not to such an extent that it would have an impact on Germany’s entire economic engagement,” Merkel said. Ulrich Grillo, president of Germany’s BDI industry federation, told the same event that he “fully” supports the chancellor during the crisis in Ukraine . A day after she warned Russia that it risked “massive economic and political harm” if it didn’t change course, Merkel maintained […]

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Russia holds war games near Ukraine; Merkel warns of catastrophe

Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down on plans to annex its neighbor’s Crimea region despite a stronger than expected drive for sanctions from the EU and United States. In an unusually robust and emotional speech, German Chancellor Angela Merkel warned of "catastrophe" unless Russia changes course, while a man was killed in Ukraine in fighting between rival protesters in a mainly Russian-speaking city. At the U.N. Security Council, the United States circulated a draft resolution that would declare illegal Sunday’s planned referendum on independence for Ukraine’s Crimea region. But Russia, one of the Security Council’s five veto-wielding permanent members, made clear it opposed the draft. "Russia announced they will kill it," a senior Western diplomat told Reuters. In Berlin, Merkel removed any suspicion she might try to avoid a confrontation with Russian President Vladimir […]

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Crude-oil futures moved in opposite directions in Asian trading hours Friday as markets kept a close watch on the Ukraine crisis and Chinese economic indicators.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $98.18 a barrel at 0536 GMT, down $0.02 in the Globex electronic session. April Brent crude on London’s ICE Futures exchange rose $0.18 to $107.57 a barrel. Worries over an economic slowdown in China have pressured industrial commodity prices and wider financial markets this week but the impact on oil has been limited by tensions in Ukraine and Libya. "While a weaker macro outlook would certainly reverberate in the oil market, Chinese demand is still supported by steady activity and a rise of new refining capacity," analyst Sijin Cheng at Barclays said in a note. She said China’s implied oil demand contracted 3.1% on-year in the first two months of 2014 to 9.97 million barrels a day, but imports also surged on stockpiling for new refineries and strategic reserves. Meanwhile, the U.S. is […]

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Natural Gas Continues to Fall Despite Depleting Supplies

Natural gas slumped for a third straight session Thursday as traders expected production levels to rise in the spring, just as demand typically eases for the heating fuel. Natural gas for April delivery settled down 10.7 cents, or 2.4%, at $4.383 a million British thermal units on the New York Mercantile Exchange, its lowest settlement price since Jan. 17. This winter’s unusually cold weather in the central and eastern U.S. has led to record demand for gas-powered heating in homes and offices. About half of U.S. households use natural gas as their primary heating fuel, according to the U.S. Energy Information Administration. Inventories have fallen from 3.834 trillion cubic feet in the first week […]

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EIA projects record US natural gas storage injection in 2014

The US Energy Information Administration’s Short-Term Energy Outlook (STEO) for March forecasts a robust natural gas injection season through April to October with nearly 2,500 bcf added to storage as operators seek to rebuild stocks. US gas inventories will end the current withdrawal season at the end of March below 1 tcf, hitting a 10-year low, after unusually cold weather sparked high demand and forced a record-breaking winter withdrawal. EIA expects relatively high gas production growth and moderate demand growth starting in April that will allow for a record storage build through October. The forecasted electric power consumption of gas from April to October is 23.9 bcfd, essentially flat compared with a year ago. Expected dry natural gas production during this period reaches 68.1 bcfd, up 2% from last year. “The forecasted April-to-October storage build of nearly 2,500 bcf would surpass the previous record injection season net inventory build […]

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OPEC to Cut Exports as Refinery Demand Slows, Oil Movements Says

The Organization of Petroleum Exporting Countries will cut crude exports this month to the lowest level since November as refinery demand slows in Europe and North America, according to tanker-tracker Oil Movements. OPEC, responsible for 40 percent of global oil supplies, will decrease shipments by 1.1 million barrels a day, or 4.6 percent, to 23.6 million a day in the four weeks to March 29, Oil Movements said in an e-mailed note. The figures exclude two of OPEC’s 12 members, Angola and Ecuador . Sailings were last this low in the four weeks to Nov. 16, when an extended maintenance period caused a fall in refinery demand, according to the consultant. “There is a spring low point for refinery demand sometime in April” in Europe and North America, Oil Movements founder Roy Mason , said by phone from Halifax, England . “Demand is going down and sailings respond to […]

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OPEC Production Surges as Iraq Pumps Most in 35 Years, IEA Says

OPEC crude production rose above its target for the first time in five months as Iraq pumped the most in 35 years, according to the International Energy Agency . The 12 members of the Organization of Petroleum Exporting Countries produced 30.49 million barrels a day in February, up from 29.99 million in January, the Paris-based IEA said today in its monthly oil market report. That’s about 300,000 barrels a day higher than the average level required in the second half of the year, according to the agency. Iraqi crude output jumped by 530,000 barrels a day to 3.62 million, driven by upgraded infrastructure in the country’s southern oil-producing region and the reduction of bottlenecks at its Gulf export facilities. That was the highest since 1979. Exports soared by 572,000 barrels a day to 2.8 million. “The exceptional increase in February’s exports has been an unexpected boost for the country, […]

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IEA Highlights Increases in Oil Supply

A relentless increase in oil supply from the U.S. and Canada and a surprise surge in Iraqi crude production last month is offsetting demand pressures bought about by the cold winter in the U.S. and geopolitical concerns over the rising tensions between Russia and Ukraine, the International Energy Agency said Friday. "While international tensions may be on the rise, pressure on oil markets, ceteris paribus, seems set to ease," the Paris-based energy watchdog said in its closely-watched monthly report on the oil market. The cold snap in the U.S., which has seen commercial oil inventories in industrialized countries plummet this winter to hit a whopping 154 million barrels below the seasonal average last month, is abating. Meanwhile, oil supply looks comfortable. The IEA expects supply from outside the Organization of Petroleum Exporting Countries to rise by 2 million barrels a day in the first quarter of […]

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IEA says supply surge to ease oil tensions

The International Energy Agency expects the pressure on global oil markets to ease in spite of rising geopolitical tensions because of surging supply from Iraq and other producers. “While international tensions may be on the rise, the pressure on oil markets . . . seems set to ease”, the Paris-based group said in its widely followed monthly report, noting the extreme cold weather that had dug into US oil stocks in January had abated. US oil prices rose above $100 for the first time in five months in February because of exceptionally cold weather in the US and robust refining demand. Brent, the international marker, also rose, supported by fresh supply outages in Libya and the tensions in the Ukraine. However, in recent weeks prices have eased back. Nymex April West Texas Intermediate is currently trading at $98.36 a barrel, while ICE Brent April is at $107.44. The IEA, which advises Western governments […]

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Iran's Oil Exports Peak After Interim Nuclear Deal

Iran’s oil exports peaked at a one-year high in the past two months, a top energy agency said Friday, as a thaw in relations with the West boosts the troubled economy of the Islamic Republic. But the boost in oil exports—if it continues—threatens to exceed a cap on exports Iran agreed to as part of an interim deal over its nuclear program. The deal between Iran and six global powers requires that Iran’s shipments shouldn’t average more than 1 million barrels a day of crude over the six months of the agreement, which started Jan 20. In its authoritative monthly oil report, the International Energy Agency said crude exports of Iranian oil averaged 1.16 million barrels a day in January and, based on preliminary estimates, stayed put in February. That compares with average crude exports of 1 million barrels a day in 2013, based on the report. Though bans […]

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Iran’s Oil Exports Peak After Interim Nuclear Deal

Iran’s oil exports peaked at a one-year high in the past two months, a top energy agency said Friday, as a thaw in relations with the West boosts the troubled economy of the Islamic Republic. But the boost in oil exports—if it continues—threatens to exceed a cap on exports Iran agreed to as part of an interim deal over its nuclear program. The deal between Iran and six global powers requires that Iran’s shipments shouldn’t average more than 1 million barrels a day of crude over the six months of the agreement, which started Jan 20. In its authoritative monthly oil report, the International Energy Agency said crude exports of Iranian oil averaged 1.16 million barrels a day in January and, based on preliminary estimates, stayed put in February. That compares with average crude exports of 1 million barrels a day in 2013, based on the report. Though bans […]

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Oil-Fouled Waters Spoil Niger Delta as Homes Abandoned

… A polluted swamp and river is seen in Goi, a former fishing and farming community, in the Ogoni region of southeast Nigeria. What remains of Goi is the legacy of the Niger delta, heartland of the oil industry that supplies four-fifths of Nigeria’s state revenue and is now soiled by spills, sabotage and contaminated waters. Close Close Open Photographer: Dulue Mbachu/Bloomberg A polluted swamp and river is seen in Goi, a former fishing and farming community, in the Ogoni region of southeast Nigeria. What remains of Goi is the legacy of the Niger delta, heartland of the oil industry that supplies four-fifths of Nigeria’s state revenue and is now soiled by spills, sabotage and contaminated waters. Goi is gone, given over to nature. Residents of the former fishing and farming […]

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Controlled by Iran, the deadly militia recruiting Iraq's men to die in Syria

Each day for the past nine months, the bodies have been coming. Some are carried in simple wooden coffins strapped to car roofs. Others arrive with more ceremony, escorted by black-clad mourners or men in military fatigues to a hypnotic soundtrack of Islamic hymns. The convoys turn into the lanes of the Valley of Peace cemetery, squeezing past tombstones weathered by millennia and stopping next to freshly dug holes in the desert soil. The newest inhabitants of the world’s biggest cemetery were killed not here in Iraq but in Syria , where they fought under the green flag of the Middle East’s most potent new Shia Islamic political force, Asa’ib Ahl al-Haq (League of the Righteous). The militia has been busy readying for the afterlife, buying up more than 2,500 square metres of burial plots and erecting shrines for its fallen. In Baghdad, nearly 100 miles north, the group has […]

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Controlled by Iran, the deadly militia recruiting Iraq’s men to die in Syria

Each day for the past nine months, the bodies have been coming. Some are carried in simple wooden coffins strapped to car roofs. Others arrive with more ceremony, escorted by black-clad mourners or men in military fatigues to a hypnotic soundtrack of Islamic hymns. The convoys turn into the lanes of the Valley of Peace cemetery, squeezing past tombstones weathered by millennia and stopping next to freshly dug holes in the desert soil. The newest inhabitants of the world’s biggest cemetery were killed not here in Iraq but in Syria , where they fought under the green flag of the Middle East’s most potent new Shia Islamic political force, Asa’ib Ahl al-Haq (League of the Righteous). The militia has been busy readying for the afterlife, buying up more than 2,500 square metres of burial plots and erecting shrines for its fallen. In Baghdad, nearly 100 miles north, the group has […]

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Libya's interim PM calls for dialogue to end 10-month port blockade

Shakmak said the shutdown of the ports had had a "severe impact" on revenues in the second half of 2013. He said Libya had lost more than $8 billion in revenues in that time. "The deficit continued in the first quarter of 2014 and the proportion of income earned in accordance with the budget was just 16% in January," he said. "In February, it was the same percentage or less, so there is no doubt of the importance of oil as a source of funding for the Libyan people," he said. Al-Thani took over as prime minister on Tuesday after the country’s highest political authority, the GNC, ousted former PM Ali Zeidan. Zeidan was sacked after a vote of no confidence that followed the news that the Libyan navy had failed to contain an oil tanker carrying an "illegal" cargo of Es Sider crude, which managed to escape the […]

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Libya’s interim PM calls for dialogue to end 10-month port blockade

Shakmak said the shutdown of the ports had had a "severe impact" on revenues in the second half of 2013. He said Libya had lost more than $8 billion in revenues in that time. "The deficit continued in the first quarter of 2014 and the proportion of income earned in accordance with the budget was just 16% in January," he said. "In February, it was the same percentage or less, so there is no doubt of the importance of oil as a source of funding for the Libyan people," he said. Al-Thani took over as prime minister on Tuesday after the country’s highest political authority, the GNC, ousted former PM Ali Zeidan. Zeidan was sacked after a vote of no confidence that followed the news that the Libyan navy had failed to contain an oil tanker carrying an "illegal" cargo of Es Sider crude, which managed to escape the […]

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Asian Gas Supply Cut by Heat, Drought, World Cup Soccer

SINGAPORE—Asian natural-gas buyers are being hit in the pocket by a combination of drought and heat in South America, as well as the coming World Cup soccer tournament. Liquefied natural gas available for sale on the spot market, which might normally be shipped to Asia by sea from the Atlantic basin, has for the past two months or so been snapped up by Brazil. The country needs to offset shortfalls in hydroelectricity output caused by dry weather. It also is building up fuel reserves to avoid embarrassing power cuts during the World Cup, which starts on June 12. Argentina has also been buying more. Extremely hot weather earlier in the Southern Hemisphere summer and shortages of domestic gas used to make electricity continue to boost its demand for imports. In a development that illustrates how gas markets are becoming more global, buying by both countries has left less fuel […]

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World Bank snubs Venezuela on oil dispute

The World Bank said it won’t reconsider Venezuela’s request to review last year’s decision against it for seizing assets of ConocoPhillips in 2007. Venezuelan energy company Petroleos de Venezuela , known as PDVSA, said a 2013 ruling it failed to act in good faith in talks to compensate Conoco for assets seized in 2007 was unfair. The World Bank’s International Center for Settlement of Investment Disputes said Wednesday it was upholding the September decision. "The majority of the tribunal concludes that it does not have the power to reconsider," the ruling states in part. Former Venezuelan President Hugo Chavez in 2007 moved to put the state in control of several oil projects in 2007. PDVSA said the September decision for compensation was unjust and ICSID said in its ruling it would take that matter up "in due course." There was no statement from PDVSA […]

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Oil Stays Thick in China Downturn

Consumers are powering China’s petroleum use. As China’s slowdown becomes clearer, the ground is shaking beneath commodities bulls’ feet. Yet there is one corner of the commodities markets that can relax somewhat easier—oil. Investors in iron ore and copper are on edge after and inflation data , not to mention the default of a local bond. in January and February was weaker than expected, while fixed-asset investments rose at their slowest since 2002. That is bad news for metals. China’s consumes two-thirds of the world’s seaborne iron ore and 40% of its copper. And prices have reacted. Copper slid 8% the past week in London trading to its lowest level since mid-2010. Oil is a different story. While China accounts for 10% of global petroleum consumption and 40% […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

Posted On : Published By : Tom Whipple
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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 […]

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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
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Oil Futures Pressured by Weak Chinese Industrial Data

Crude-oil futures backtracked from an early rebound in Asian trading hours Thursday after gains were capped due to weaker-than-expected industrial output data from China. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $98.19 a barrel at 0550 GMT, up $0.20 in the Globex electronic session. April Brent crude on London’s ICE Futures exchange rose $0.29 to $108.31 a barrel. Industrial production in China undershot expectations to increase 8.6% year-over-year in the January-February period, in yet another indication of slowing growth in the world’s second-largest economy. The increase was below the median 9.5% gain forecast by 13 economists in a Wall Street Journal survey. "Some of the numbers coming in below forecast will add to the bearish sentiment in the market and put pressure on crude-oil prices," said Tan Chee Tat, analyst at Phillip Futures. "The underperforming [data] releases […]

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Oil back above $98 after China jitters

The price of oil rose above $98 per barrel on Thursday after plunging the day before on concern China’s economic slowdown is deepening. Benchmark U.S. crude for April delivery was up 11 cents to $98.19 per barrel at 0830 GMT in electronic trading on the New York Mercantile Exchange. A day earlier, the contract fell $2.04 to close at $97.99, its first close below $100 in a month. Brent crude, used to set prices for international varieties of crude, was down 2 cents to $107.33 on the ICE exchange in London. A decline in Chinese exports in February has fueled worries the world’s second-largest economy is weakening further. Growth in factory output, investment and retail sales, reported Thursday, was unusually weak. Oil prices had been falling after spiking last week on fears Russia’s military incursion into the Crimean Peninsula might lead to U.S. and European sanctions on one of […]

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WTI Trades Near One-Month Low on China Data; Brent Premium Gains

West Texas Intermediate traded near the lowest price since February after data showed slower growth in factory output in China , the world’s second-largest oil consumer. Brent’s premium to WTI widened. Futures were little changed in New York after falling the most since in two months yesterday. Chinese industrial production expanded by 8.6 percent in the January-February period from a year earlier, according to the National Bureau of Statistics. A 9.5 percent gain was forecast in a Bloomberg News survey of economists. The U.S. announced a test sale of oil from the Strategic Petroleum Reserve while the Energy Information Administration reported a 6.18 million-barrel increase in crude stockpiles , triple the median analyst estimate. “It’s not an improving picture with a very weak rating on industrial production,” Michael McCarthy, a chief market strategist at CMC Markets in Sydney, said by phone. “We could see oil under pressure over the […]

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OPEC sees global oil production up

With world oil demand growing, the Organization of Petroleum Exporting Countries said Wednesday most producers were firing on all cylinders. OPEC 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. "For 2014, global oil demand is seen rising by 1.14 million bpd, following an upward revision of 50,000 bpd," the March report said. OPEC said there’s a general "assumption" the global economy will recover gradually in 2014, despite some disappointing data from the United States and China. While ongoing turmoil in Ukraine adds risk to the health of the global economy, the cartel said the European community as a whole should experience economic growth this year. Demand for OPEC crude oil remained relatively steady, though the cartel expected demand to decline through 2014 by […]

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Libya Peace Deal Seen Complicated by Oil Cargo From Rebel Port

The prospect of a deal between Libya ’s eastern rebels and the central government is diminishing after the breakaway region shipped its first cargo of crude oil. A North Korean-flagged tanker left Es Sider, the largest oil-export terminal, yesterday after the navy refused to attack the vessel and then failed to impound it. Libya’s parliament then ousted Prime Minister Ali Zaidan in a no confidence vote. Federalists in the Barqa region control four oil ports and are demanding a share of the revenue from exports. “This will complicate a settlement because it emboldens the Barqa people,” said Theodore Karasik , the director of research at the Dubai-based Institute for Near East and Gulf Military Analysis. “It shows their ability to operate independently from the central government.” Libya’s central government has been hobbled by a lack of oil revenue since the ouster of Muammar Qaddafi in 2011. Crude production slumped […]

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Gunmen attack army bus in Cairo, kill 1 soldier

Egyptian security officials say gunmen have opened fire on an army bus in Cairo, killing one officer and wounding three soldiers. The officials say the bus, which belongs to the army’s Military Police, was driving through the capital’s Amiriyah district when it was targeted on Thursday morning. The officials did not say who was responsible for the attack, which bore the hallmarks of Islamic militants. In the eight months since the ouster of Egypt’s Islamist President Mohammed Morsi, militants have targeted the military and police forces in Cairo and elsewhere in the country, often using motorbikes. Militants also are waging a full-fledged insurgency in the strategic Sinai Peninsula. The officials spoke on condition of anonymity because they were not authorized to speak to the media.

Posted On : Published By : Tom Whipple
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Libyan PM flees country after ouster

Former Libyan Prime Minister Ali Zeidan  fled to Europe in defiance of a travel ban on Wednesday after parliament voted him out of office for failing to stop rebels from independently exporting oil from the country in a challenge to  Libya’s fragile unity . The crisis arose when rebels, who have seized three eastern ports since August, loaded crude oil onto a North Korean-flagged tanker  at Al-Sidra terminal over the weekend. The tanker left Al-Sidra on Tuesday. According to varying accounts by government officials, the navy or air force then fired on the vessel, although it was not clear if this happened in Libyan or international waters. Government spokesman Habib al-Amin told a news conference in Tripoli on Wednesday that the firing failed to disable the tanker, which proceeded eastwards into Egyptian waters. He said Libya had asked Egypt and other countries to help stop the ship. There was […]

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North Korea Says Egyptian Firm Controls Libya Oil Tanker

North Korea denied on Thursday it was illegally exporting oil from rebel-controlled eastern Libya, claiming that an Egyptian company was operating a North Korean flagged oil tanker in the center of an armed standoff since Saturday. North Korea said it had revoked the registry of the tanker, named "Morning Glory," and demanded that Alexandria-based Golden East Logistics Company leave al-Sidra port without loading oil. The tanker, carrying at least 234,000 barrels of crude oil, sailed from a rebel-controlled port into international waters on Tuesday. A contract signed by North Korea with the Egyptian company prohibits the tanker from transporting contraband cargo and entering war or disaster zones, North Korea said through a report in its state media. "The ship has nothing to do with the DPRK at present and it (North Korea) has no responsibility whatsoever as regards the ship," the report said, using the abbreviation of country’s official […]

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Kurdistan tourist towns last resort for Iraqi refugees

The holiday season has yet to begin, but hotels in the mountain resort towns of Iraq’s Kurdistan region are already fully booked. The patrons are not tourists but refugees who have fled conflict in the country’s arid Sunni Arab heartland for the relative safety of its autonomous north, where Kurds run their own affairs. Shaqlawa may seem an unlikely refuge, but the resort town’s population has swollen by almost a half since the start of the year. On the main street of the town, crowded with construction sites, motels and guest houses, the newly opened "Falluja Kebab Restaurant" is testimony to its new residents. It is no small irony in a country with a historic enmity between Sunni Arabs and Kurds that residents of Anbar, a place synonmous with Arab nationalism, should now seek sanctuary with their onetime foe. In this mix, there is mistrust […]

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Nigeria: Missing U.S.$20 Billion – Government Approves Forensic Audit of Corrupt NNPC

The Federal Government may soon commence the forensic audit of the accounts of the Nigerian National Petroleum Corporation, NNPC, as President Goodluck Jonathan has approved the engagement of reputable international firms to handle the exercise. The Special Adviser to the President on Media and Publicity, Reuben Abati, who stated this in Abuja on Wednesday, said this was to reassure Nigerians that government was actually determined to unravel the truth and get to the root of the controversy. Mr. Abati said that contrary to claims by the suspended Governor of the Central Bank of Nigeria, CBN, Lamido Sanusi that government was attempting to sweep the allegation of missing oil monies under the carpet, President Goodluck Jonathan was committed to ensuring that the relevant committees of the National Assembly investigated the issues to ensure that the culprits were brought to book. Mr. Abati was reacting to alleged claims by Mr. Sanusi […]

Posted On : Published By : Tom Whipple