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Despite March exports drop, record output for new buoys

As new offshore export facilities come online, Iraq has the opportunity to increase oil sales, despite enduring security and infrastructure challenges. Iraq’s single point mooring (SPM) buoys in the Basra Gulf exported an average 829,000 barrels per day (bpd) of crude in March, a new high for the expansion of the southern export system."Total exports from SPMs was 25.7 million barrels in March," said a senior official involved in Iraqi oil exports.This month a new export platform will be fully operational, and by mid-year a third SPM will be ready for use, further increasing southern oil export capacity.Iraq has made nearly $15 bill…

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Ditch being dug on northern Iraqi border with Syria

A ditch is being built on the northern Iraqi border with Syria to prevent terrorists from Syria crossing over into the Kurdish administered region, the Kurdish Regional Government authorities said. Bulldozers at a border village of Mosul’s Zumar district are digging a 17 km long, two meter wide, three meter deep ditch, according to a Kurdish peshmerga general, who wishes to remain anonymous. "This region is the transit route for terrorists. They cross our border from here and they commit bomb attacks in Iraq’s different regions," said the general to AA reporter emphasizing the importance of blocking the border for their security. Meanwhile, Kurdish Democratic Union Party (PYD), a political offshoot of the outlawed Kurdistan Workers’ Party (PKK) increasing its control in northwestern Syria, protested against the KDP decision to build the ditch. A group of around one thousand PYD-affiliated people demonstrated near the ditch, […]

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Total Says Kashagan Oil Field Won't Yield Much Output This Year

An aerial view shows the artificial islands at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan in this October 16, 2013 file photograph. PARIS— SA said Friday it doesn’t expect the to yield much output this year but said it was on the cusp of approving a $4 billion . The resumption of the Kashagan project has been beset with problems even since a tricky-to-fix gas leak forced the French company and its partners to stop production in October. "If there were to be any production by the end of the year, it wouldn’t be much," Total’s president for exploration and production, Arnaud Breuillac, told reporters on the sidelines of an oil conference in Paris. He said the companies are waiting for the results of analyses and ultrasound probes on the leaking pipeline to identify the problem and find ways to fix it. Resuming output […]

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Total Says Kashagan Oil Field Won’t Yield Much Output This Year

An aerial view shows the artificial islands at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan in this October 16, 2013 file photograph. PARIS— SA said Friday it doesn’t expect the to yield much output this year but said it was on the cusp of approving a $4 billion . The resumption of the Kashagan project has been beset with problems even since a tricky-to-fix gas leak forced the French company and its partners to stop production in October. "If there were to be any production by the end of the year, it wouldn’t be much," Total’s president for exploration and production, Arnaud Breuillac, told reporters on the sidelines of an oil conference in Paris. He said the companies are waiting for the results of analyses and ultrasound probes on the leaking pipeline to identify the problem and find ways to fix it. Resuming output […]

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Oil India Said to Study Purchase of Shell’s Nigerian Blocks

Oil India Ltd. (OINL) , the nation’s second-biggest state-run explorer, is studying an acquisition of Nigerian oil and gas assets owned by Royal Dutch Shell Plc (RDSA) , according to people familiar with the matter. Oil India is weighing a bid for stakes Shell holds in some onshore blocks, valued at as much as $2 billion, the people said. It will partner with India’s Sandesara Group on the potential purchase, according to the people, who asked not to be identified as the deliberations are private. The explorer joins Dangote Group , controlled by Africa’s richest man, and Seplat Petroleum Development Co. in seeking to acquire Nigerian assets being sold by Western rivals. Shell and Chevron Corp. are divesting fields in the country amid persistent violence and crude theft in the oil-rich Niger River delta. India’s government-run oil companies are building on their record $5.5 billion of acquisitions last year […]

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Oil pipe leak blamed for tainted water in China

An oil pipe leak caused excessive levels of the toxic chemical benzene in a major Chinese city’s water supply, prompting warnings against drinking from the tap and sending residents to queue up to buy bottled water. The scare, which has affected more than 2.4 million people in the northwestern city of Lanzhou, has once again raised concerns over safety of China’s oil pipes. Last year, a ruptured oil pipeline resulted in explosions in the eastern city of Qingdao, killing 62 people. In Lanzhou, a crude oil pipeline run by the state-owned China National Petroleum Corp. had a leak that tainted the source water feeding a local water plant, the official Xinhua News Agency said. Phone calls to the oil company’s local and national offices rang unanswered on Saturday. The city of Lanzhou said it has been monitoring levels of benzene in water pipes to ensure public […]

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China Takes On Big Risks in Its Push for Shale Gas

China’s largest energy company has made the country’s first commercially viable shale gas discovery, but the path to energy independence is fraught with risks, as one town has seen first-hand. JIAOSHIZHEN, China — Residents of this isolated mountain valley of terraced cornfields were just going to sleep last April when they were jolted by an enormous roar, followed by a tower of flames. A shock wave rolled across the valley, rattling windows in farmhouses and village shops, and a mysterious, pungent gas swiftly pervaded homes. “It was so scary — everyone who had a car fled the village and the rest of us without cars just stayed and waited to die,” said Zhang Mengsu, a hardware store owner. All too quickly, residents realized the source of the midnight fireball: a shale gas drilling rig in their tiny rural hamlet. This verdant valley represents the latest frontier in the worldwide […]

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The Absurdity of US Natural Gas Exports

Quiz: 1. How much natural gas is the United States currently extracting? (a) Barely enough to meet its own needs (b) Enough to allow lots of exports (c) Enough to allow a bit of exports (d) The United States is a natural gas importer Answer: (d) The United States is a natural gas importer, and has been for many years. The EIA is forecasting that by 2017, we will finally be able to meet our own natural gas needs. In fact, this last year, with a cold winter, we have had a problem with excessively drawing down amounts in storage. Figure 2. US EIA’s chart showing natural gas in storage, compared to the five year average, from Weekly Natural Gas Storage Report . There is even discussion that at the low level in storage and current rates of production, it may not be possible to fully replace the natural gas in […]

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Baker Hughes sees drilling efficiency increase

Drilling efficiency overall in the United States is 3 percent better than it was at this time last year, oil services company Baker Hughes said Friday. Baker Hughes published its quarterly onshore well count for the United States. It said the number of wells tallied in the first quarter was down 230, or 3 percent, when compared with fourth quarter 2013. Year-on-year, however, the well count was up 4 percent and rig efficiency was improving. "Due to improved drilling efficiencies, the average U.S. onshore drilling rig now produces 3 percent more wells compared to the same quarter last year," it said . Well counts were down in the Eagle Ford and Barnett shale basins in Texas, the Marcellus shale play in the eastern United States and the Williston shale area of the Northern Plains. Decreases, Baker Hughes said, were offset by gains in the […]

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Texas holds No. 1 oil spot, EIA says

Texas recorded the largest increase in proven oil reserves of any state, eclipsing North Dakota by nearly 2 billion barrels, the U.S. Energy Department said. The Energy Information Administration, the statistical arm of the Energy Department, said Texas and North Dakota helped pushed proven crude oil reserves in the country to record highs. EIA said proved oil reserves in 2012, the last full year for which complete data are available, increased for the fourth consecutive year and were the highest since 1976. "At the state level, Texas recorded the largest volumetric increase, up 3.0 billion barrels, in proved oil reserves among individual states, largely because of development in the Permian and Western Gulf basins," EIA said in a report Thursday. "North Dakota had the second-largest increase, up 1.1 billion barrels, driven by development of the Bakken and Three Forks formations in the Williston Basin." […]

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BP to maintain footing in Gulf of Mexico

Despite the fourth anniversary of the Deepwater Horizon incident approaching, BP says it’s committed to playing a major role in Gulf of Mexico operations. Eleven rig workers died when a series of cascading failures at the Deepwater Horizon rig, which BP leased from Transocean, caught fire and sank in the Gulf of Mexico on April 20, 2010. According to U.S. government estimates, about 4.9 million barrels of oil spilled in months following the accident. BP Chief Executive Officer Bob Dudley said during an annual meeting the Gulf of Mexico was a central part of the company’s portfolio. "We remain very committed to BP playing a major part in the future prosperity of the Gulf of Mexico region, where we invest billions, employ about 2,300 people and support tens of thousands more jobs in other businesses," he said Thursday. Last month, BP won its first […]

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Ohio Geologists Link Fracking With Earthquakes

Ohio officials are limiting hydraulic fracturing—or fracking— in a small area of the state after finding that the technique for tapping oil and gas may have triggered a series of minor earthquakes in March. The state regulator is among the first government authorities to impose seismic-related restrictions on fracking, in which drillers shoot water, sand and chemicals down wells to crack open rock and extract fuel. But other states, including Kansas, are looking at the links between oil and gas activity and small quakes. Researchers have previously found such tremors can be triggered by disposal of fracking waste water in deep wells near geologic faults. The Ohio Department of Natural Resources said Friday it was halting fracking within a 3-mile radius of the epicenter of the quakes in northeastern Ohio, and said firms operating in the Utica Shale—a rock formation holding vast quantities of natural gas—must install seismic monitors […]

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Lower prices pull down natural gas reserves in 2012

Lower natural gas prices drove down U.S. proved reserves in 2012, despite notable gains in the Marcellus and Eagle Ford shale gas plays. The decline stopped a 14-year trend of consecutive increases in natural gas reserves, according to newly published estimates in EIA’s U.S. Crude Oil and Natural Gas Proved Reserves 2012 . Proved reserves are volumes of natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Natural gas proved reserves, estimated as wet natural gas that includes natural gas plant liquids, decreased 7% in 2012 to 323 trillion cubic feet (Tcf), as operators revised the proved reserves of their existing natural gas fields downward in response to lower natural gas prices (the natural gas spot price at the Henry Hub dropped below $2.00 per million British thermal units (MMBtu) in April […]

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Key US senators call for EIA study on crude export policy

The Senate Energy and Natural Resources Committee chairman and ranking member have asked the Energy Information Administration to analyze the impact of lifting restrictions on US crude oil exports. "This is a complex puzzle that is best solved with dynamic and ongoing analysis of the full picture, rather than a static study of a snapshot in time," Senator Mary Landrieu, Democrat-Louisiana, and Senator Lisa Murkowski, Republican-Alaska, wrote to EIA Administrator Adam Sieminski on Friday. The letter follows a request in February by Senators Ron Wyden, an Oregon Democrat, and Maria Cantwell, a Washington Democrat, to produce a report on how US gasoline prices would be impacted if restriction on US crude exports were lifted. Article continues below… Request a free trial of: Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, […]

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Alaska’s Peak Oil Crisis

Competition often breeds excellence. Nowhere else does this cliché hold more true than in the shale boom that’s currently underway. In North Dakota, we see drillers are consistently improving their operational efficiencies with practically every new well drilled. Independent companies like Continental Resources have lowered their average well costs in the Bakken by almost 20%. Their success is far from an anomaly, and it has become a standard for every other operator. What’s more is that this isn’t restricted to just North Dakota. Today, competition has helped the oil bonanza spread like wildfire across the lower 48 states as new drilling technology unfolds. Unfortunately, that simply isn’t the case for everyone. Boom to Bust for Big Oil Take a look at the other side of the spectrum. Alaska has arguably been the most sensational disappointment in the U.S. oil industry since the 1980s, and the blame rests squarely on […]

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Ukraine-Russia gas row: Red bills and red rags

The political pressure is rising as the pipeline pressure falls Russia has threatened to cut gas supplies to Ukraine because of the dispute over prices. That could also affect EU countries, as much Russian gas is delivered to the West through Ukraine. We examine what’s behind the row, and its potential impact on Europe and its gas supplies. What is the row about? The immediate dispute is about Ukraine’s very large unpaid gas bill: $2.2bn (£1.2bn; 1.4bn euros), according to the Russian state-controlled utility Gazprom. If Ukraine does not settle its bill, Gazprom will in effect install the world’s largest pre-pay meter, and Ukraine will be obliged to pay for its gas in advance. If it fails to pay, Gazprom says it will restrict or suspend delivery. But lurking behind this is the power struggle between the interim Ukrainian government, which leans towards the EU, and Russia, which wants […]

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US imposes sanctions on Crimea gas group

The US government has imposed sanctions against the Crimean subsidiary of Ukraine’s national gas company, which was seized by the region’s parliament in the run-up to its annexation by Russia. The Department of Commerce said on Friday afternoon that Chernomorneftegaz – also known as Chornomornaftogaz – had been added to the list of entities facing trade restrictions, saying the company’s assets were “now being overseen by Russian government interests”. The sanctions are likely to make it impossible for US companies to enter joint ventures with Chernomorneftegaz to explore areas in the Black Sea that are believed to hold significant oil and gas reserves. However, it had already been clear since Russia’s move into Crimea that the disputed status of those areas would make operating there very difficult for western companies. ExxonMobil and Royal Dutch Shell had been pursuing an offshore joint venture in the Black Sea with companies other […]

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Gas Carousel Making Spain Europe’s Biggest LNG Exporter

Spain overtook Norway last month to become the region’s biggest exporter of liquefied natural gas. The southern European nation has never produced any of the fuel. The twist is a consequence of the crisis that left more than a quarter of Spain’s workers unemployed as the economy weakened for nine straight quarters. Utilities that contracted to buy LNG before the slump are now contending with a sixth consecutive year of diminishing domestic demand, spurring them to re-export cargoes. The trade is being underpinned by prices in Asia and South America that are about 30 percent higher than in Europe. Japan is importing more after shutting down its nuclear power plants following the Fukushima disaster in 2011. South American nations are accelerating purchases after a drought in Brazil limited the supply of hydroelectric power and cold snaps in the U.S. curbed pipeline flows to Mexico. “It doesn’t make much sense […]

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Energy Chiefs Push for European Policy Shakeup on Ukraine

The crisis in relations with Russia should compel the European Union to transform its energy policy and reduce the region’s dependence on natural gas imports, a trio of industry leaders said. “If it really wants to wean itself off Russia gas, it needs to embark on a medium-term program made up of improving gas interconnections, shale-gas friendly regulation, alternative imports, more nuclear and possibly more coal,” Paolo Scaroni , chief executive officer of Italy’s largest oil company, Eni SpA (ENI) , said in e-mail comments today. The EU imported 30 percent of its gas supply from Russia last year, a proportion that’s even higher in some eastern and southern European countries. That reliance has come under scrutiny during the crisis over Ukraine this year, sparking a debate about how to diversify sources of supply. Russian President Vladimir Putin has warned Ukraine’s non-payment for gas shipments may threaten supply to […]

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Oil Futures Extend Losses

Crude-oil futures were lower in Asian trading hours Friday on speculation a Libyan ports may reopen for exports next week and concerns of rising international supply. On the New York Mercantile Exchange light, sweet crude futures for delivery in May traded at $103.08 a barrel at 0551 GMT, down $0.32 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange fell $0.28 to $107.18 a barrel. Libya’s National Oil Co. on Thursday lifted a force majeure on the al-Hariga crude export terminal with a daily capacity of 110,000 barrels, news reports said. Libyan government forces had taken control of the Al-Hariga and Zueitina ports on Wednesday ending a nine-month blockade by rebels, they said. "Libya aims to ship the first tanker from the harbor of Hariga within the next week," ANZ said in a note. While Al-Hariga accounts for 8.5% of Libya’s export capacity rebels retain […]

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Oil extends losses on China slowdown signs

The price of oil fell further on Friday as recent signs of sputtering economic growth in China suggested demand for crude could weaken. Other factors influencing crude supplies included a report that U.S. crude reserves rose to a 38-year high and the delayed reopening of export terminals in Libya. Benchmark crude for May delivery was down 20 cents to $103.20 a barrel at 0740 GMT in electronic trading on the New York Mercantile Exchange. The contract fell 20 cents to settle at $103.40 a barrel on Thursday. Brent crude, a benchmark for international oil prices, slipped 23 cents to $107.29 a barrel on the ICE Futures exchange in London. Oil prices retreated from a five-week high this week after China report shrinking exports and imports for March, raising concerns about slowing growth in the world’s No. 2 economy. Investors are nervously awaiting the release of first-quarter economic data next […]

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WTI Heads for Weekly Gain as Discount to Brent Shrinks on Libya

West Texas Intermediate headed for a weekly gain amid speculation that U.S. fuel demand will increase as employment recovers. The discount to Brent shrank to the least since September after Libya signaled it’s ready to boost crude exports. Futures were little changed in New York and up 1.9 percent this week. Fewer Americans filed applications for jobless benefits last week than at any time since before the recession, according to Labor Department data. Brent’s premium to WTI narrowed to $4.06 a barrel yesterday as state-run National Oil Corp. lifted force majeure at its Hariga terminal, which rebels handed over to the Libyan government. “Libyan production will be bearish for Brent, and if there’s optimism on the U.S. economy, then that’s going to help boost WTI,” Victor Shum, a vice president at IHS Energy Insight in Singapore , said by phone today. “Looking back this week on the U.S. inventory […]

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Crude-Oil Benchmarks Pulled Closer By Contrasting Demand Pictures

Crude oil futures were trading lower Thursday but still not far below the week’s highs, with the price gap between the two benchmark contracts at a multi-month low. Brent crude for May delivery was down 61 cents at $107.37 a barrel on ICE Futures Europe having hit its highest since March 31 in the previous session. U.S. crude-oil futures were down 24 cents at $103.35 a barrel on the New York Mercantile Exchange having topped out Wednesday at the highest since March 4. High demand in the U.S. is boosting West Texas Intermediate, which has rallied almost 3% in the past two sessions, according to Kash Kamal of Sucden Research. This is despite crude inventories increasing by 4 million barrels week-on-week, "as steady flows towards the Gulf Coast signaled…both stronger domestic and export demand." In Europe, March demand for crude from Europe and Norway was down […]

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International Energy Agency – Oil Market Report

Highlights of the latest OMR dated: 11th April 2014 Crude oil prices were range-bound in March, with supply outages in the MENA and Russia-Ukraine tensions countering seasonally weaker demand. By early April, market expectations of an imminent restart of Libyan exports pressured Brent prices lower. Brent last traded at $107.75/bbl.   The forecast of global demand growth has been marginally trimmed to 1.3 mb/d for 2014, reflecting downward adjustments to the projection of Russian demand. The absolute demand estimate remains roughly unchanged, as upward revisions to baseline non-OECD Asian demand counterbalance lower Russian growth. Global supplies plunged by 1.2 mb/d to 91.75 mb/d in March, led by steeply lower OPEC output , but remained up by 1.1 mb/d year-on-year, as non‐OPEC growth of 1.98 mb/d more […]

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IEA Trims 2014 Oil Demand Growth Forecast

The International Energy Agency on Friday highlighted ongoing "elevated" risks in the oil market, as it trimmed its forecast for an increase in demand this year following Russia’s annexation of Crimea, but also warned of lower oil production. In its closely watched monthly report, the Paris-based energy watchdog lowered its 2014 forecast for Russian oil demand by 55,000 barrels a day to total 3.5 million barrels a day following the country’s annexation of Crimea last month and subsequent downgrades of the World Bank and International Monetary Fund’s views of the country’s growth. Further economic sanctions and pressure on Russia’s economy could cut its oil demand by a further 150,000 barrels a day this year, the IEA said. The IEA’s overall forecast for the increase in oil demand this year was cut by 100,000 barrels a day to 1.3 million barrels a day. The IEA also lowered […]

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IEA Says OPEC Will Need to Pump More Crude in Second Half

OPEC will need to pump more crude in the second half of the year to meet demand after its production plunged to a five-month low in March, according to the International Energy Agency . Supplies from the Organization of Petroleum Exporting Countries “plummeted” by 890,000 barrels a day to 29.62 million barrels a day in March, the Paris-based IEA said today in its monthly oil market report. That’s below OPEC’s collective 30 million production target and means the group will have to increase output in the second half of the year, it said. “OPEC supply actually registered a steep drop in March from February highs, but this setback looks likely to be short-lived,” the IEA, an adviser to oil-consuming nations, said. “Prospects for OPEC output are also on the rise – though not without considerable political risk.” Brent crude oil prices have dropped 3.2 percent this year to trade […]

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Platts Survey: OPEC Pumps 29.56 Million Barrels of Crude Oil Per Day in March

Down 550,000 Barrels Per Day from February on Saudi, Iraqi and Libyan Cuts Oil production from the Organization of the Petroleum Exporting Countries (OPEC) plunged 550,000 b/d from February to 29.56 million b/d in March — its lowest level since mid-2011 — according to the latest Platts survey of OPEC and oil industry officials and analysts. The decline followed February production of 30.11 million b/d and was mainly attributable to insurgent attacks which shut a key export pipeline in Iraq, and a renewed downward swing in Libyan production. Saudi Arabia also reduced output because of lower refining demand due to maintenance. The survey showed Saudi output at 9.6 million b/d, down from 9.7 million b/d in February and the lowest level since June last year, when the kingdom’s output was estimated at 9.65 million b/d. Together, Saudi Arabia, Iraq and Libya accounted for 440,000 b/d of the overall drop. […]

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House Votes to Deny Visa to Iranian Envoy Linked to ’79 Hostage Crisis

The House on Thursday unanimously passed legislation approved by the Senate aimed at denying a visa to Iran ’s choice for United Nations ambassador. The vote sent what sponsors called a blunt rejoinder to the Iranian government for having selected a nominee who played a role, however minor, in the 1979 American hostage crisis in Tehran. The legislation, which goes to President Obama for signature, reflected the raw political nerves rubbed by the nominee, Hamid Aboutalebi, a veteran diplomat who has said he once worked as an interpreter for the revolutionary student group that seized the United States Embassy and held 52 Americans for 444 days. The Obama administration had already signaled its opposition to Mr. Aboutalebi, informing the Iranian government that the choice was “not viable,” while stopping short of denying him a visa or taking a position on the legislation. But the strong bipartisan approval of the […]

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Iran Feb Oil Shipments Highest Since Sanctions Began: IEA

Iran’s crude shipments in February were the highest since the imposition of Western sanctions that have crippled its oil-dependent economy, according to the International Energy Agency . Imports of Iranian oil were 1.65 million barrels a day in February, the highest level since June 2012, the IEA said. March shipments were estimated to have fallen to 1.05 million barrels a day from February’s figure, “but that figure will likely be revised upwards closer to February levels upon receipt of more complete data,” the IEA said. “Imports of Iranian oil are running well above 2013 levels for the third consecutive month,” the Paris-based adviser to 28 nations, said in its monthly oil market report . “Imports from Iran could remain high for April.” An interim accord easing restrictions on insurance for Iran’s oil shipments and freeing up cash held outside the country went into effect in January, in return for […]

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Dam takeover highlights worsening Anbar violence

As militants seize control of a dam in Fallujah, the government is planning for April 30 elections in which worsening security problems will not allow many Anbar residents to vote. Iraqi men move a boat that was stuck on the banks of the Euphrates river in Twairij, roughly 20 kilometers east of Karbala, due to a decline in the water level after supplies were blocked by anti-government fighters who control access to the Fallujah dam further upstream in conflict-hit Anbar province on April 8, 2014. (MOHAMMED SAWAF/AFP/Getty Images) The militants controlling the Fallujah dam were skeptical at first, reluctant to grant an interview with their leader.But after a thorough questioning, a pat-down, confiscation of mobile phones, and an agreement to preserve the anonymity of the fighters, Iraq Oil Report was introduced to a man who called himself only "al-Hajji."Dressed in a traditional Afghan-style robe but speaking a distinctively Anbari […]

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Iraqi army to retake Fallujah dam: MP

Iraq will deploy its air force to retake the Fallujah dam after it was captured by armed groups who cut off water supplies to several parts of the country, an MP said Wednesday. "Security forces might launch an operation – tonight or within the next few days – to reopen the Fallujah dam, seized by the Islamic State of Iraq and Levant (ISIL) group, which cut off [water] supplies to much of the southern and central provinces," Hassan al-Sanid, head of parliament’s security committee, told Anadolu Agency. "The operation will employ aircraft to conduct limited strikes on ISIL hideouts," he added. "The ISIL hopes to flood Fallujah with water during the [annual] inundation of the Euphrates River… and cut off water to the southern and central provinces," al-Sanid asserted. Iraqi government troops have been pursuing ISIL militants – who the government says […]

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Violence kills 15 in Iraq

Shootings and bombings in Iraq killed at least 15 people Thursday, officials said, as the country struggles with rampant violence ahead of parliamentary elections at the end of the month. The country is suffering from a protracted surge in bloodshed that has killed more than 2,500 people this year and sparked fears Iraq is slipping back into the all-out sectarian fighting of 2006-2007. The unrest has been driven principally by complaints among the Sunni Arab minority of mistreatment by the Shiite-led government and security forces, and by the civil war in neighbouring Syria. In Thursday’s deadliest single incident, gunmen opened fire on a group of young Shiite men in Khales, north of Baghdad, and killed five of them, a police colonel and a doctor said. Fundamentalist Sunni militants frequently target members of Iraq’s Shiite majority, whom they consider apostates. In a […]

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Militant Bombs Stop Iraq Oil for a Record 40 days

Militants whose bombs have shut Iraq’s main northern oil export pipeline for 40 days are preventing repairs, threatening to extend an outage that is already the longest since the days of sanctions in the 1990s. Targeting the Kirkuk-Ceyhan pipeline where it crosses a stretch of desert known as Ain al-Jahash, or Donkey Springs, the saboteurs – described as Islamists by Iraqi officials – have set several more bombs since a first blast halted oil on March 2. Significantly for an Iraqi government hoping for a big rise in exports this year – and long used to brief halts on the route to the Mediterranean – gunmen have also massacred repair crews, prompting oil executives in Mosul to question optimism in Baghdad that the pipeline should be back in action next week. “We have decided to stop all repair operations in Ain al-Jahash until we are sure our crews won’t […]

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OPEC gives poor marks for Kazakhstan's Kashagan field

While oil supply from Kazakhstan has increased, its giant Kashagan oil field has "sucked in" major capital with little to show for it, OPEC said Thursday. The Organization of Petroleum Exporting Countries said in its monthly market report oil supply from Kazakhstan increased by 60,000 barrels per day year-on-year to average 1.64 million bpd. Kazakhstan hosts Kashagan, one of the largest oil fields in the world, with an estimated 16 billion barrels of oil reserves. Production was halted in October, less than a month after it started, when a pipeline associated with the field cracked open. OPEC said final results from pipeline inspections aren’t due until second quarter 2014, though the project has already consumed substantial investments. "The giant Kashagan project has sucked in almost $50 billion without yielding a barrel of oil," OPEC said in its market report. The North Caspian Operation Co. […]

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OPEC gives poor marks for Kazakhstan’s Kashagan field

While oil supply from Kazakhstan has increased, its giant Kashagan oil field has "sucked in" major capital with little to show for it, OPEC said Thursday. The Organization of Petroleum Exporting Countries said in its monthly market report oil supply from Kazakhstan increased by 60,000 barrels per day year-on-year to average 1.64 million bpd. Kazakhstan hosts Kashagan, one of the largest oil fields in the world, with an estimated 16 billion barrels of oil reserves. Production was halted in October, less than a month after it started, when a pipeline associated with the field cracked open. OPEC said final results from pipeline inspections aren’t due until second quarter 2014, though the project has already consumed substantial investments. "The giant Kashagan project has sucked in almost $50 billion without yielding a barrel of oil," OPEC said in its market report. The North Caspian Operation Co. […]

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Venezuelan Leader and Opposition Meet in Bid to Ease Tensions

President Nicolás Maduro of Venezuela and leaders of a coalition of opposition political parties held a dramatic televised meeting on Thursday in a first step aimed at defusing tensions that have escalated during more than two months of antigovernment protests. The meeting was brokered by a group of South American foreign ministers who exerted pressure on both sides to come to the table in the hopes of averting further violence in the protests, which have cost 40 lives, according to a government count. Underscoring the urgency of the situation, local news media reported that a police officer in Barquisimeto, a city in western Venezuela, died after being shot on Wednesday night in a confrontation that appeared to be linked to a protest. The ministers were trying to get Venezuelans to do what they had not been able to do on their own: bridge the country’s bitter political rift. Although […]

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Mexico bets $1.4 billion on Asian markets: Pemex

Mexico plans to build a $1.4 billion "energy corridor" between the Gulf Coast and the Pacific, state energy company Pemex said Thursday, in what appears to be part of a drive to reduce the country’s dependence on the US market. Pemex said the strategy is based on linking the nation’s concentration of oil and gas production on the Gulf Coast with potential markets in Asia, Central and South America. The corridor would run along the Isthmus of Tehuantepec between the Gulf Coast oil and petrochemicals port of Pajaritos and Salina Cruz, the only Mexican oil port on the Pacific Coast. Article continues below… Request a free trial of: Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and […]

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China consumer prices rise, but industry deflation persists

China’s consumer inflation rate increased in March as fresh food prices jumped, but persistent deflation in the industrial sector was another signal of weak demand and slowing growth in the world’s second-largest economy. The consumer price index (CPI) rose 2.4 percent in March from a year earlier, the National Bureau of Statistics said on Friday, more from a 2.0 percent rise in February but just below the median forecast in a Reuters poll. Fresh food prices were a major contributor, with fruit prices up an annual 17.3 percent and vegetables up 12.9 percent, although analysts said food inflation was showing signs of moderating. Pork prices fell 6.7 percent from a year earlier. Producer prices fell in annual terms for the 25th straight month, dropping 2.3 percent, slightly more than expected. "Overall, we expect inflation pressures to remain benign amid tepid domestic demand," Barclays economists said in […]

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China slowdown concerns reinforced by falling prices

Falling prices in China have reinforced fears of the slowdown in the world’s second-largest economy , highlighting sluggish consumer demand and the struggles of over-extended factories. Consumer prices fell 0.5 per cent in March from the previous month, while producer prices remained mired in deflationary territory for a 25th-consecutive month, according to figures published by the national bureau of statistics on Friday. Coming on the heels of weak trade figures , slower credit issuance and big declines in property sales, the price data reinforces the picture of a disappointing first quarter for the world’s second-largest economy. Analysts have rushed to downgrade their forecasts for Chinese growth and now predict that the economy will expand 7.4 per cent this year, its softest in more than two decades. The downturn has fuelled expectations that the government will prop up growth, but Li Keqiang, the premier, on Thursday rebuffed calls for […]

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Excessive benzene found in NW China tap water

Tap water in downtown Lanzhou has been found to contain excessive levels of benzene, provincial authorities said on Friday. Tests carried out in the early hours of Friday showed that tap water contained 200 micrograms of benzene per liter, far exceeding the national limit of 10 micrograms per liter, according to the city’s environmental protection office. (Xinhua/Guo Gang) LANZHOU, April 11 (Xinhua) — More than 2.4 million people in downtown Lanzhou, northwest China’s Gansu Province, have been affected by tap water found to contain excessive levels of benzene, provincial authorities said on Friday. Tests carried out in the early hours of Friday showed that local tap water contained 200 micrograms of benzene per liter, far exceeding the national limit of 10 micrograms per liter, according to the city’s environmental protection office. […]

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High depletion rates in Bakken

If you can, you could term it delusion, the theory that Shale gas is the answer to all problems in terms of energy. Just extract the gas, ship it across the pipeline and export the excess, or so goes the popular theory (boom. How easy!). Let’s call this ‘Sale for Energy Security Theory’ or SEST) If you believe in SEST, here’s a simple task for you: Take a towel or cloth soaked in water. Wring it. Note the amount of water that comes out. Now, wring it again. Okay, once more. How many drops of water did you get in the third time? Two, three? This is precisely what’s happening in the Bakken. Imagine that there aren’t buckets of oil underneath the Bakken but towels soaked with oil. And it is only recently that we figured out the technique called “fracking”: how to wring a towel full of oil. […]

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US House subcommittee passes bill to facilitate LNG exports

A US House Energy and Commerce Committee subcommittee voted to forward a bill aimed at facilitating approvals of US LNG exports to the full committee. The Energy and Power Subcommittee’s action by 15 to 11 votes was along party lines, with Republicans favoring the move and Democrats opposing it. The subcommittee also approved an amendment to HR 6 by Rep. Bobby L. Rush (D-Ill.), the subcommittee’s ranking minority member, which would require applicants seeking US Department of Energy certification that their exports are in the US national interest to publicly disclose specific destinations of their proposed LNG sales. The votes came hours before the Ways and Means Committee’s Trade Subcommittee was scheduled to hold a hearing on the trade implications of removing barriers to LNG exports and other US energy policy questions. American Petroleum Institute Pres. Jack N. Gerard applauded the subcommittee’s action. “Today’s vote is just the latest […]

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California drought gives boost to anti-fracking movement

California is known for the twin threat of natural disasters from drought and earthquakes, with both phenomena certain to give many residents serious concern. But there is one group that is starting to reap serendipitous marketing ammunition from the state’s current historic drought and the ever-present worry of ground-shaking tremors: the anti-fracking movement . “California faces two interlinked crises, a water crisis and a climate crisis, and fracking makes both of these problems worse,” said Kassie Siegel, senior counsel for the Center for Biological Diversity, a nonprofit conservation group. Fracking, or hydraulic fracturing — a method of high-pressure injection of substances to extract oil from rock formations — has become a hugely controversial subject across the United States . Defenders of the process, especially the oil and gas industry, hail it as a solution to America’s energy woes. Critics say it is highly pollutive and contributes to climate change […]

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Summer average gasoline price expected to be close to last year's level

Drivers are expected to pay an average $3.57 per gallon for regular gasoline this summer, close to last year’s level, according to the U.S. Energy Information Administration’s April Short-Term Energy and Summer Fuels Outlook . The price for Brent crude oil—which typically accounts for about two-thirds of the retail price of gasoline—is expected to average $105 per barrel this summer driving season (April through September), which is about $2 below its level last summer. However, the benefit of lower crude oil prices is expected to be almost fully offset by higher wholesale margins compared to last summer, although expected wholesale margins remain below their levels during the 2011 and 2012 summers. This summer’s monthly average gasoline price is expected to peak at $3.66 per gallon in May and then steadily decline to $3.46 in September. Gasoline prices vary by region, with the West Coast average price expected to be […]

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Summer average gasoline price expected to be close to last year’s level

Drivers are expected to pay an average $3.57 per gallon for regular gasoline this summer, close to last year’s level, according to the U.S. Energy Information Administration’s April Short-Term Energy and Summer Fuels Outlook . The price for Brent crude oil—which typically accounts for about two-thirds of the retail price of gasoline—is expected to average $105 per barrel this summer driving season (April through September), which is about $2 below its level last summer. However, the benefit of lower crude oil prices is expected to be almost fully offset by higher wholesale margins compared to last summer, although expected wholesale margins remain below their levels during the 2011 and 2012 summers. This summer’s monthly average gasoline price is expected to peak at $3.66 per gallon in May and then steadily decline to $3.46 in September. Gasoline prices vary by region, with the West Coast average price expected to be […]

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Crude oil reserves at start of 2013 reach highest level since 1976

U.S. crude oil proved reserves rose for the fourth consecutive year in 2012, increasing by 15% to 33 billion barrels, according to the U.S. Crude Oil and Natural Gas Proved Reserves (2012) report released April 10 by the U.S. Energy Information Administration. U.S. crude oil and lease condensate proved reserves were the highest since 1976, and the 2012 increase of 4.5 billion barrels was the largest annual increase since 1970, when 10 billion barrels of Alaskan crude oil were added to U.S. proved reserves. Contributing factors to higher crude oil reserves include increased exploration for liquid hydrocarbons, improved technology for developing tight oil plays, and sustained high historical crude oil prices. Proved reserves are volumes of oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Tight oil plays, which contain conventional oil in […]

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Eagle Ford’s Exports Spur Boom at Port of Corpus Christi

America’s newest energy hub just got a little busier. NuStar Energy LP (NS) officially opened its third petroleum dock at the Port of Corpus Christi, Texas, as Chairman Bill Greehey smashed a bottle of champagne against a loading arm that was filling a barge with crude. NuStar and other companies are building docks, storage tanks and other facilities in Corpus Christi to take advantage of the oil boom in the Eagle Ford shale formation 100 miles away. The port shipped out 350,000 barrels of crude a day in November, up from under 10,000 at the start of 2012, according to port data. “It’s a historic time right now for our port,” said Frank Brogan, managing director for the city’s port authority. “I’ve been here 27 years, and we’ve had more activity in the last two years than in the previous 25 combined.” The new activity is putting pressure on […]

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U.S. Proved Crude Reserves Reach 36-Year High

U.S. crude oil reserves increased 4.5 billion barrels to 33.4 billion, the highest level since 1976 and the biggest annual gain since 1970, the Energy Information Administration said today in its annual U.S. Crude Oil and Natural Gas Proved Reserves report. Close Close Open Photographer: Ty Wright/Bloomberg U.S. crude oil reserves increased 4.5 billion barrels to 33.4 billion, the highest level since 1976 and the biggest annual gain since 1970, the Energy Information Administration said today in its annual U.S. Crude Oil and Natural Gas Proved Reserves report. U.S. proved reserves of crude oil and lease condensate reached the highest level in 36 years as new technology and high prices made supplies locked in shale formations available. Reserves increased 4.5 billion barrels to 33.4 billion in 2012, the most since 1976 and the biggest annual gain since 1970, the Energy Information Administration said today in its […]

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Weekly Natural Gas Storage Report

Working gas in storage was 826 Bcf as of Friday, April 4, 2014, according to EIA estimates. This represents a net increase of 4 Bcf from the previous week. Stocks were 849 Bcf less than last year at this time and 997 Bcf below the 5-year average of 1,823 Bcf. In the East Region, stocks were 448 Bcf below the 5-year average following net withdrawals of 5 Bcf. Stocks in the Producing Region were 411 Bcf below the 5-year average of 772 Bcf after a net injection of 9 Bcf. Stocks in the West Region were 137 Bcf below the 5-year average after no net change. At 826 Bcf, total working gas is below the 5-year historical range. The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2009 through 2013. Source: Form EIA-912, "Weekly Underground Natural Gas Storage Report." The […]

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Satellites Show Russia Mobilizing Near Ukraine, NATO Says

NATO released satellite photographs on Thursday showing Russian military equipment, including fighter jets and tanks, that it described as part of a deployment of as many as 40,000 troops near the border with Ukraine . The release came the same day that President Vladimir V. Putin reiterated a threat to curtail gas sales to Ukraine. The photographs , taken by a commercial satellite imaging company called DigitalGlobe, offered some of the first documentary evidence of a military buildup that the West says Russia could use to invade Ukraine at any moment. They were released at a news conference in Belgium by Brig. Gary Deakin, the director of NATO’s Comprehensive Crisis and Operations Management Center. The Kremlin has accused the West of exaggerating Russia’s military presence along the Ukrainian border and has insisted that it has no plans for a second military incursion after its lightning-quick occupation […]

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