Category:

Statoil splits oil sands with Indonesian partners

Norwegian energy company Statoil said Thursday it paid an Indonesian counterpart $200 million to split up oil sands interests in Alberta, Canada. Statoil and PTT Exploration and Production divided their interests in the Kai Kos Dehseh oil sands project in Alberta. Both sides under the terms of the agreement take full control of individual development projects within the area of interest, with Statoil taking on two and the Indonesian company taking on three areas. "At the closing of this transaction, Statoil paid to PTTEP the sum of $200 million plus a working capital adjustment amount of $219 million," the Norwegian company said in a statement . The Indonesian company joined Statoil at the Kai Kos Dehseh oil sands project in 2010. Statoil’s overall production from Canadian oil sands declined 6.3 percent from 2012 to 15,000 barrels of oil per day. The company attributed the decline to […]

Posted On : Published By : Tom Whipple
Category:

U.S. Blames Outsiders as Ukraine Rebel Attack Kills 14

Pro-Russian rebels downed a military helicopter in eastern Ukraine, killing a general and 13 troops, as a spokesman for U.S. President Barack Obama blamed “outside” assistance in providing weapons. Insurgents used a shoulder-fired missile to shoot down an Mi-8 transport chopper amid heavy fighting in Slovyansk, 100 miles (160 kilometers) from the Russian border, Speaker Oleksandr Turchynov told Ukraine’s parliament yesterday. “We are concerned that this indicates separatists continue to have access to advanced weaponry and other assistance from the outside,” White House spokesman Jay Carney told reporters in Washington . Ukrainian forces used aviation and artillery assets to “destroy” the rebel unit that downed the helicopter, the Interior Ministry ’s National Guard unit said in a statement. The surge in fighting produced a new round of finger-pointing between the U.S. and Russia. Russia demanded that Ukraine halt its “fratricidal war” and withdraw troops from the mainly Russian-speaking region […]

Posted On : Published By : Tom Whipple
Category:

Statoil: Last Greenpeace activists in custody

Norwegian energy company Statoil said Thursday the Greenpeace activists who boarded a drill ship headed for arctic waters are in custody. More than a dozen demonstrators boarded a rig contracted by Statoil from Transocean that was bound for work in the northern reaches of the Barents Sea. Around half of them surrendered their campaign voluntarily this week and Statoil said the seven activists who remained behind are in the custody of Norwegian police. "Statoil is very pleased that the illegal action on the rig now has ended without anyone being injured," the company said in a statement . The Norwegian company said the rig, Transocean Spitsbergen, is now on its way to the Hoop reserve area in the Barents Sea. Its permit for drilling, however, depends on the Norwegian government’s decision on a Greenpeace complaint. The action from Greenpeace included a campaign against Russian energy company […]

Posted On : Published By : Tom Whipple
Category:

Kremlin awaits Ukrainian gas decision

An agreement on gas debt between Ukraine and Russian energy company Gazprom may be finalized by the end of the week, a negotiator said Thursday. Russian Energy Minister Alexander Novak met this week with European Energy Commissioner Gunther Oettinger and Ukrainian Energy Minister Yuri Prodan to discuss ongoing debt issues. A proposal brokered during this week’s meetings calls on Ukrainian energy company Naftogaz to pay $2 billion by Friday and another $500 million by June 7 to settle its outstanding debts. A source close to the negotiations told Russia’s state-run news agency RIA Novosti a deal is expected before the week’s end. "There will be no official information [about Ukraine’s decision] today," the source said on condition of anonymity. "Possibly, [the announcement will be made] after a meeting on Friday." The state news agency says Naftogaz owes about $4 billion to Gazprom, a figure disputed by […]

Posted On : Published By : Tom Whipple
Category:

Ukraine Moves Toward Gas Debt Compromise with Russia

By Alexander Kolyandr MOSCOW–Ukraine took a step toward compromise over its huge gas debt to Russia Thursday, approving a measure that would allow the state gas company Nafotgaz to pay off $2 billion to Moscow this week as agreed in a tentative deal mediated by the European Union. Kiev still hasn’t officially confirmed it will make the payment, despite Moscow’s threat to demand prepayment for future supplies starting next week, a move that could lead to a cutoff of shipments. Officials from Ukraine, Russia and the EU are scheduled to meet in Berlin Friday for more talks on a compromise. The Ukrainian government on Thursday formally increased the charter capital of Naftogaz, a technical step necessary to allow the government to transfer the money to the company to make the payment. However, a Naftogaz spokesperson couldn’t immediately comment on whether the payment would be made. Moscow and the EU […]

Posted On : Published By : Tom Whipple
Category:

Oil Steady Ahead of U.S. Stockpile Report

Crude-oil futures bounced back in Asian trading hours Thursday after dropping overnight, and were steady ahead of a weekly report that is expected to show higher U.S. oil supplies. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $102.96 a barrel at 0515 GMT, up $0.24 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange rose $0.11 to $109.92 a barrel. Data late Wednesday from the American Petroleum Institute showed a 3.5-million-barrel rise in U.S. oil stockpiles for the week ended May 23. The more definitive stockpile data from the U.S. Energy Infomation Administration is due later Thursday and analysts expect inventories to have increased by 100,000 barrels last week. Oil stocks are bloated in the U.S. and China, which together will account for a fourth of the 2.4 million-barrrel-a-day seasonal rise in global refinery runs between May […]

Posted On : Published By : Tom Whipple
Category:

WTI Trades Near One-Week Low After U.S. Stockpiles Grow

West Texas Intermediate traded near its lowest closing price for a week after the American Petroleum Institute reported that U.S. crude supplies expanded. Brent was steady in London as Russia called for an end to violence in Ukraine. Futures were little changed in New York after paring earlier gains of as much as 0.4 percent. Total U.S. crude inventories expanded by 3.49 million last week, the industry group said. Government data today may show a total gain of 500,000 barrels, according to a Bloomberg News survey . Russia called for “emergency” measures to halt violence in eastern Ukraine after separatist militias suffered the heaviest casualties of their insurgency. “The only thing that’s going to drive crude today is inventories,” Michael Hewson , market analyst at CMC Markets Plc, said from London. “You’ve got a pinch point at Cushing, but that doesn’t affect the overall supply for the U.S.” WTI […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Closes at Five-Week High on Warm June Forecasts

Natural-gas prices jumped to a five-week high Wednesday after a second day of gains on forecasts for a warm June. Prices for the front-month June contract settled up 11.4 cents, or 2.5%, to $4.619 a million British thermal units on the New York Mercantile Exchange. The June contract expired Wednesday. The more actively traded July contract settled up 10.4 cents, or 2.3%, to $4.615/mmBtu. Most forecasts, including from the National Weather Service, are showing strong chances for above-normal temperatures for the next two weeks. High temperatures lead to air conditioners switching on, driving more demand for power and gas. That has pushed the market up 4.9% in two days even as traders expect that drillers produced the year’s largest surplus last week. "I’m a little surprised with the" gains, said Gene McGillian, a broker and analyst at Tradition Energy. "The market is really showing its […]

Posted On : Published By : Tom Whipple
Category:

Analysts See 110 Billion-Cubic-Feet Addition to U.S. Natural Gas Inventories

Analysts and traders expect government data scheduled for release Thursday to show natural gas inventories rose by 18% more than average for this time of year. The U.S. Energy Information Administration is expected to report that storage levels rose by 110 billion cubic feet of gas during the week ended May 23, according to the average forecast of 21 analysts and traders surveyed by The Wall Street Journal. The EIA is scheduled to release its storage data for the week on Thursday at 10:30 a.m. EDT. For the May 23 week, the median estimate is for an addition of 110 bcf. Estimates range from an increase of 100 bcf to an increase of 115 bcf. The estimate for May 23 is more than the 88 bcf added to storage for the same week last year and the 93 bcf five-year average injection for that week. If […]

Posted On : Published By : Tom Whipple
Category:

Gas Prices and Global Consumption

Cheap gas makes people use too much of it — that’s the takeaway from a study in this month’s American Economic Review . In “The Economic Cost of Global Fuel Subsidies,” Lucas Davis, a associate professor at Berkeley’s Haas Business School , uses World Bank data  to show that countries with consumer fuel subsides have higher fuel consumption. Crude and refined oil are traded internationally, so their wholesale prices are similar everywhere. What causes such a great variation in price — from $0.08 a gallon in Venezuela to $9.61 in Turkey — are taxes and subsidies. Mr. Davis determined countries’ subsidies by calculating the difference between domestic consumer prices and international spot prices, and factoring in distribution, transport and retail costs. Basically, if what people pay at the pump is less than the cost of the fuel and its related costs, he considers the fuel subsidized. Without […]

Posted On : Published By : Tom Whipple
Category:

Egypt: El-Sissi wins election by landslide

With nearly all votes counted, Egypt’s former military chief has won a crushing victory over his sole opponent with more than 92 percent of the votes, according to results announced by his campaign early Thursday. The campaign of retired field marshal Abdel-Fattah el-Sissi said he won 23.38 million votes, with left-wing politician Hamdeen Sabahi taking 735,285. Invalid votes were 1.07 million, or nearly 350,000 more than the number of votes for the 59-year-old Sabahi. El-Sissi’s win was never in doubt, but the career infantry officer, also 59, had hoped for a strong turnout to bestow legitimacy on his ouster last July of Egypt’s first freely elected president, the Islamist Mohammed Morsi. According to el-Sissi’s campaign, the turnout nationwide was around 44 percent, even after voting was extended for a third day Wednesday – well below the nearly 52 percent turnout in the June 2012 election won […]

Posted On : Published By : Tom Whipple
Category:

Appointment of deputy heir to throne stirs controversy in Saudi Arabia

When Saudi Arabia’s elderly king took the unusual step of naming a deputy heir, the move initially was welcomed as a sign of continuity in a country that soon will confront major questions over the future of its leadership. But in subsequent weeks, the announcement has stirred a rare outburst of dissent, revealing previously unacknowledged strains within the royal family and casting into doubt prospects for a smooth transition from King Abdullah’s rule. The king’s youngest brother, Muqrin, who was named deputy crown prince on the eve of President Obama’s visit in March, appears to be popular among ordinary people, who say he is not corrupt. He also is well-regarded by foreign diplomats, who describe him as likable and smart. But behind closed doors, royal tongues have been wagging about the manner in which Muqrin was chosen, the validity of his newly created title and […]

Posted On : Published By : Tom Whipple
Category:

Russia eyes investments in Argentina's energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

Posted On : Published By : Tom Whipple
Category:

Russia eyes investments in Argentina’s energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

Posted On : Published By : Tom Whipple
Category:

U.S. House Votes for Venezuela Sanctions to Punish Maduro

U.S. House lawmakers voted to require sanctions against Venezuelan officials involved in a crackdown against protesters and opposition leaders in that country. The measure passed by voice vote yesterday in Washington . The legislation is intended to “hold these human rights violators accountable,” said bill sponsor Representative Ileana Ros-Lehtinen, a Florida Republican. “The first step in doing so is hitting them in their pocketbooks and denying them entry into the United States .” Venezuela has cracked down on protests that started in February over the world’s fastest inflation, crime and shortages of staples such as food and toilet paper. At least 42 people have been killed in the demonstrations. Amnesty International said April 1 it had received dozens of accounts of torture allegedly carried out by security forces since the protests began. The U.S. State Department has so far resisted calls from Congress for sanctions against Venezuelan President Nicolas […]

Posted On : Published By : Tom Whipple
Category:

Pemex in Talks for $4 Billion Investment Fund With China

Petroleos Mexicanos , the state-owned oil producer, is negotiating with Chinese companies to create a fund valued at as much as $4 billion to invest and finance projects. The proposed arrangement is in a “final stage of negotiations,” Pemex, as the Mexico City-based oil producer is known, said in an e-mailed statement yesterday, correcting an earlier filing that said a deal had already been signed. The Sino-Mex Energy Fund would be the largest Chinese investment fund in Latin America , according to the earlier statement sent to the Mexican Stock Exchange. The prospective agreement between Pemex’s international unit PMI Comercio Internacional and Xinxing Ductile Iron Pipes (000778) , SPF Capital Hong Kong Ltd. and other Chinese companies would be used to finance large-scale projects and create jobs. Pemex is seeking to increase sales to Asia and Europe to offset falling oil exports to the U.S., Mexico’s largest crude buyer. […]

Posted On : Published By : Tom Whipple
Category:

US Shale Debt Increases as Drillers Push to Maintain Gains

Shale debt has reportedly doubled over the past four years, according to a Bloomberg News analysis of 61 shale drillers, while revenue has increased just 5.6 percent. Many are spending at least 10 percent of their sales on interest compared with Exxon Mobil Corp.’s .1 percent, the news agency reported. As the struggle to keep pace with the increased spending is needed to unearth these resources, some investors are selling their assets at a loss. Loews Corp. subsidiary, HighMount Exploration & Production, announced May 23 that it is pursuing strategic alternatives, including a potential sale of the business. HighMount, primarily comprised of natural gas and oil reserves, has assets in the Sonora field within the Permian Basin in West Texas. The company reportedly lost $20 million in the first three months of 2014 and was not profitably successful over the past two years. “The list of companies that are […]

Posted On : Published By : Tom Whipple
Category:

Shale EROEI Failing

Rigzone, which reports new finds and plays in the fossil fuel industry, complains that, US Shale Debt Increases as Drillers Push to Maintain Gains : Shale debt has reportedly doubled over the past four years, according to a Bloomberg News analysis of 61 shale drillers, while revenue has increased just 5.6 percent. Many are spending at least 10 percent of their sales on interest … “What is not clear from higher-level company data is if the industry (both large players and independents) can run a cash flow-positive business in both top-quality and in more marginal plays and whether the positive cash flow could be maintained when the industry scales up its operations,” [a research associate] noted. … Furthermore, independent producers will spend $1.50 on drilling this year for every dollar in return, Bloomberg noted in February. Producers will have to drill 2,500 new wells a year just to sustain output […]

Posted On : Published By : Tom Whipple
Category:

US DOE awards NuScale up to $217 million for small reactors

The US Department of Energy and NuScale Power signed an agreement in which NuScale will receive up to $217 million over five years for small modular reactor development, the company said Wednesday. NuScale joins Babcock & Wilcox in receiving money as part of a six-year program DOE initiated in 2012 to distribute $452 million to support licensing and development of small modular reactors. DOE defines SMRs as reactors of less than 300 MW that can be built in a factory and shipped to utility sites as demand arises. "It was only yesterday that we actually signed the cooperative agreement, which will provide up to $217 million to NuScale," John Kelly, DOE deputy assistant secretary for nuclear reactor technologies, said Wednesday at Platts’ annual Small Modular Reactors conference in Washington. Article continues below… Since 1960, Platts Nucleonics Week has been the leading source of global news for the commercial nuclear […]

Posted On : Published By : Tom Whipple
Category:

U.S. Natural Gas Imports & Exports 2013

. Net imports Natural gas net imports fell by 14% to 1,311 Bcf in 2013, the lowest level since 1989. Total imports decreased by 8% to 2,883 Bcf in 2013 from the previous year’s level. Pipeline imports decreased by 6% to 2,786 Bcf, and LNG imports decreased by 45% to 97 Bcf. Total exports, which increased in all but two years from 1997 to 2012, decreased by 3% to 1,572 Bcf in 2013. Pipeline exports decreased by 1% to 1,569 Bcf, while LNG exports, already lower than 2% of total exports, decreased to 3 Bcf. For the first time, the United States exported a small amount of compressed natural gas (CNG) to Canada by truck, totaling 0.1 Bcf. Source: U.S. Energy Information Administration, based on Office of Fossil Energy, U.S. Department of Energy. Prices […]

Posted On : Published By : Tom Whipple
Category:

U.S. Natural Gas Imports & Exports 2013

. Net imports Natural gas net imports fell by 14% to 1,311 Bcf in 2013, the lowest level since 1989. Total imports decreased by 8% to 2,883 Bcf in 2013 from the previous year’s level. Pipeline imports decreased by 6% to 2,786 Bcf, and LNG imports decreased by 45% to 97 Bcf. Total exports, which increased in all but two years from 1997 to 2012, decreased by 3% to 1,572 Bcf in 2013. Pipeline exports decreased by 1% to 1,569 Bcf, while LNG exports, already lower than 2% of total exports, decreased to 3 Bcf. For the first time, the United States exported a small amount of compressed natural gas (CNG) to Canada by truck, totaling 0.1 Bcf. Source: U.S. Energy Information Administration, based on Office of Fossil Energy, U.S. Department of Energy. Prices […]

Posted On : Published By : Tom Whipple
Category:

U.S. petroleum product exports to Mexico rise while Mexican crude exports to the U.S. fall

Note: The United States does not export crude oil to Mexico. The United States imported 850,000 barrels per day (bbl/d) of crude oil from Mexico in 2013, the lowest volume since 1993. In the past decade, U.S. crude oil imports from Mexico fell 47%, primarily as a result of declining production of crude oil in Mexico. Despite the decline, Mexico was the third largest source of crude oil imports to the United States in 2013, behind Canada and Saudi Arabia. Conversely, U.S. exports of petroleum products to Mexico have increased 152% in the past decade. In 2013, the United States exported 527,000 bbl/d of petroleum products to Mexico, including motor gasoline (46% of the total), distillate fuel oil (22%), and liquefied petroleum gases (10%). While the United States is a net exporter of petroleum products to Mexico, the United States also imports some petroleum […]

Posted On : Published By : Tom Whipple
Category:

EIA: Oil imports from Mexico at historic lows

Though it’s still the third-largest source of foreign crude, imports from Mexico are at their lowest levels in a decade, the U.S. Energy Department said. The U.S. Energy Information Administration, the statistical arm of the Energy Department, said the United States imported 850,000 barrels of oil per day from Mexico last year, the lowest level since 1993. The trend has developed in part as a result of increased production from shale reserves areas in the United States. Coupled with declines in Mexican oil production and exports to the United States are down 47 percent from 1993, EIA said. On the other hand, increased U.S. oil production means exports of petroleum products to the Mexican market have increased 152 percent in the same period and most of that has been in the form of motor gasoline. The Mexican government in December enacted legislation that ends the 75-year […]

Posted On : Published By : Tom Whipple
Category:

Fracking Sucks Money From Wind While China Eclipses U.S.

U.S. President Barack Obama says natural gas can be a bridge from coal to a cleaner energy future. Investors are showing it’s more likely a bridge to nowhere. The country’s embrace of natural gas means less love for wind and solar. New investments in renewable energy sources declined 5 percent in North America last year to $56 billion, the lowest since 2010, according to Bloomberg New Energy Finance. By comparison, North American oil and gas companies spent $168.2 billion on exploration and production last year, more than double 2009, data compiled by Bloomberg show. Fracking — the process of blasting water, sand and chemicals into miles-deep shale rock to extract fuels — has helped push U.S. natural gas production to new highs in each of the past seven years, according to the Energy Information Administration. It’s also more expensive than traditional drilling and contributes to global warming, according to […]

Posted On : Published By : Tom Whipple
Category:

Birthplace of USS New Jersey Saved by Shale Production: Freight

The shale boom and the Jones Act are saving shipbuilding at the 213-year-old Philadelphia Navy Yard. On a part of the grounds now operated by Aker ASA (AKER) , workers apply a coat of gray paint to the deck of a new 800,000-barrel oil tanker in one dock. The hull of another tanker sits in the adjacent berth. Blue sparks fly from welding torches in the warehouse-sized shop where workers assemble sections known as grand blocks. Blue-green sheets of steel that will make up the skeleton of future ships are piled throughout the yard. “Less than three years ago, you would have seen an empty dock, empty building dock, no grand blocks lying around and practically empty production halls,” Kristian Rokke, the shipyard’s executive chairman, said during an April 25 oil tanker christening ceremony at the shipyard. “Many were starting to say that we might not make it.” Instead, […]

Posted On : Published By : Tom Whipple
Category:

Exxon, BP Defy White House; Extend Partnership with Russia

Several of the largest oil companies in the world are doubling down in Russia despite moves by the West to isolate Russia and its economy. ExxonMobil and BP separately signed agreements with Rosneft – Russia’s state-owned oil company – to extend and deepen their relationships for energy exploration. The U.S. slapped sanctions on Rosneft’s CEO Igor Sechin in late April, freezing his assets and preventing him from obtaining visas. However, the sanctions do not extend to Rosneft itself, allowing western companies to continue to do business with the Russian oil giant. ExxonMobil signed an agreement with Rosneft, extending its partnership to build a liquefied natural gas (LNG) terminal on Russia’s pacific coast. Known as the Far East LNG project, the export terminal will receive natural gas from Russia’s eastern fields as well as from Sakhalin-1, an island off Russia’s east coast. Rosneft announced the deal in a press release […]

Posted On : Published By : Tom Whipple
Category:

Russia Urges Emergency Steps on Ukraine Amid Rebel Losses

Black smoke billows from Donetsk international airport during a heavy gun battle… Read More Russia called for unspecified “emergency” measures to halt the violence in eastern Ukraine after separatist militias suffered the heaviest casualties of their insurgency. “It’s necessary to take emergency steps to stop the bloodshed and start an inclusive internal Ukrainian dialogue,” Foreign Minister Sergei Lavrov told his German counterpart Frank-Walter Steinmeier by phone yesterday, according to the ministry’s website. “There’s no excuse” for military action in the southeastern part of the country, Lavrov said. Ukraine stepped up air patrols over Donetsk yesterday as a convoy of pro-Russian rebels moved through the eastern city with an anti-aircraft gun in tow, threatening renewed violence after dozens of militants were killed in a government operation to retake the area’s biggest airport. Both sides suffered casualties as rebels stormed a National Guard base in Luhansk, the […]

Posted On : Published By : Tom Whipple
Category:

EU wants to avoid energy 'blackmail'

;Concrete actions" from members of the European Union to diversify the gas market is the only way forward, the energy commissioner said Wednesday. European Energy Commissioner Gunther Oettinger said EU member states need to develop stronger partnerships in the energy sphere in order to avoid falling victim to "political and commercial blackmail." Russia supplies about a quarter of the EU’s gas needs, though most of those supplies run through the Soviet-era transit network in Ukraine. In 2009, Russian energy company Gazprom cut gas supplies through Ukraine because of contractual disputes and recent tensions over Ukraine’s embrace of the West have added further strains to European energy security. "We need to accelerate the diversification of external energy suppliers, especially for gas," Oettinger said in a statement . "Only concrete actions will help." The EU said it spends more than $1 billion per day on energy imports . […]

Posted On : Published By : Tom Whipple
Category:

EU wants to avoid energy ‘blackmail’

;Concrete actions" from members of the European Union to diversify the gas market is the only way forward, the energy commissioner said Wednesday. European Energy Commissioner Gunther Oettinger said EU member states need to develop stronger partnerships in the energy sphere in order to avoid falling victim to "political and commercial blackmail." Russia supplies about a quarter of the EU’s gas needs, though most of those supplies run through the Soviet-era transit network in Ukraine. In 2009, Russian energy company Gazprom cut gas supplies through Ukraine because of contractual disputes and recent tensions over Ukraine’s embrace of the West have added further strains to European energy security. "We need to accelerate the diversification of external energy suppliers, especially for gas," Oettinger said in a statement . "Only concrete actions will help." The EU said it spends more than $1 billion per day on energy imports . […]

Posted On : Published By : Tom Whipple
Category:

Scotland sees North Sea reserves as major asset

Oil and natural gas wealth in the North Sea is expected to become major financial asset for Scotland on independence, the finance secretary said Wednesday. "North Sea oil and gas is a fantastic natural asset which has a great future for many decades to come," Scottish Finance Secretary John Swinney said in a statement . Scotland holds a referendum for independence from the United Kingdom in September. The Scottish government said it could finance itself in part through oil and gas revenues while powering its economy with renewable resources. Swinney said there may be as much as 24 billion barrels of oil and natural gas reserves left in the North Sea and production is on pace to increase by 14 percent between 2013 and 2018. The finance minister said Scotland may be the largest oil producer and the second largest gas producer in the European Union. […]

Posted On : Published By : Tom Whipple
Category:

Why Are Food Prices so High? Because We’re Eating Oil

Regardless of what we eat, we’re actually eating oil. Anyone who buys their own groceries (as opposed to having a full-time cook handle such mundane chores) knows that the cost of basic foods keeps rising , despite the official claims that inflation is essentially near-zero. Common-sense causes include severe weather and droughts than reduce crop yields, rising demand from the increasingly wealthy global middle class and money printing, which devalues the purchasing power of income. While these factors undoubtedly influence the cost of food, it turns out that food moves in virtual lockstep with the one master commodity in an industrialized global economy: oil. Courtesy of our friends at Market Daily Briefing , here is a chart of a basket of basic foodstuffs and Brent Crude Oil: In other words, regardless of what we eat, we’re actually eating oil. Not directly, of course, but indirectly, as the global production […]

Posted On : Published By : Tom Whipple
Category:

Oil Rises Ahead Of U.S. Inventory Data

Brent crude prices rose slightly Wednesday, with U.S. oil inventory data the key to whether the contract maintains its five-session run above $110 a barrel. Brent moved above that mark on May 21, the day some Western oil companies said they were removing employees from Libya where violence surrounding the oil sector is increasing. Two major oil fields remain shut in the North African country despite government proclamations weeks ago that disputes with protesters were resolved and operations would resume, and there were reports that occupiers of key oil ports refuse to recognize a newly organized central government. The disputes have dragged Libyan oil production down to 160,000 barrels a day, far below the nation’s capacity. Brent crude for July delivery rose 0.2% to $110.25 a barrel on ICE Futures Europe. U.S. crude-oil futures were up 0.1% at $104.24 a barrel on the New York Mercantile Exchange. Later Wednesday […]

Posted On : Published By : Tom Whipple
Category:

Brent Gains for First Day in Three on Libya, Ukraine; WTI Steady

Brent crude rose for the first time in three days as violence in Ukraine escalated and unrest continued to curb Libyan supplies. West Texas Intermediate was steady before inventory data. Futures climbed as much as 0.4 percent in London . Ukraine said it will press on with military operations after its forces regained control of Donetsk airport and inflicted “significant” losses on pro-Russian separatists. The U.S. advised its citizens to leave Libya because of clashes between armed groups in the OPEC member nation. U.S. government data tomorrow will probably show crude stockpiles rose last week, according to a Bloomberg News survey. “The unrest in both Libya and Ukraine continues” to support oil prices , Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark , said by e-mail. Brent for July settlement increased as much as 38 cents to $110.40 a barrel on the London-based ICE Futures […]

Posted On : Published By : Tom Whipple
Category:

NYMEX June natural gas settles 10 cents higher on hot weather

The NYMEX June natural gas futures contract closed 10 cents higher at a $4.505/MMBtu settlement on Tuesday as the market eyed forecasts for above-normal temperatures into June that could curb storage refills. "What we’re seeing is the forecast getting priced in," said Gene McGillian, broker at TFS Energy Futures. "The fundamentals remain tight. So any kind of seasonal demand can be expected to firm things up." Forecasts show above-normal temperatures across much of the US over the next six to 10 days, with the hottest weather expected from the Rockies into the Midwest and Ohio Valley, with some cities seeing highs about 10 degrees above normal, according to private forecaster WSI. Those forecasts "would limit the availability for power generators to choose their fuel and mark the end of the shoulder season," said Gelber & Associates analyst Aaron Calder. "The market is spooked on the onset of cooling demand […]

Posted On : Published By : Tom Whipple
Category:

Natural-Gas Prices Close Higher

By Timothy Puko NEW YORK–Natural gas prices settled more up than 2% Tuesday, likely from buyers jumping on prices that hit near a seven-week low. Natural gas for June delivery rose 10 cents, or 2.2%, to $4.505 a million British thermal units on the New York Mercantile Exchange. June options expire Tuesday and the contract expires Wednesday. The July contract is up 10.6 cents, or 2.4%, to $4.511/mmBtu. Futures traded down overnight and only sprung up once they bottomed out below $4.37/mmBtu, just before 9 a.m. ET. The low price may have triggered bargain shoppers to jump in, said John Woods, president of JJ Woods Associates and a Nymex floor trader. "For the big boys with deep pockets, this is where you’re buying," he said. Gas has been trading within a 20-cent range for about two weeks. Many traders are likely waiting for Thursday’s update on gas stockpiles before […]

Posted On : Published By : Tom Whipple
Category:

Big Oil Spending More, Getting Less in Production

Despite increased spending, oil majors are seeing flat or declining production as they struggle to replace reserves, according to a recent analyst report. Exxon Mobil Corp., Chevron Corp., Royalty Dutch Shell plc and BP plc recorded declines in their 2013 production. ExxonMobil reported an average production of 4,175 million barrels of oil equivalent per day (MMboepd), down 1.5 percent from 2012, and Chevron saw its production decline by .5 percent from 2012 to 2013 to 2,597 MMboepd. Shell’s average 3,199 MMboepd of production for 2013 was down 1.9 percent from 2012 levels, while BP saw its production volumes fall to 2,256 MMboepd, or 2.7 percent, from 2012 to 2013. France’s Total S.A. was the only company to buck the trend in declining production, with average hydrocarbon production in 2013 of 2,299 MMboepd, Zacks Equity research analyst Nilanjan Choudhury said in a May 16 report. “But overall, most ‘Big Oil’ […]

Posted On : Published By : Tom Whipple
Category:

Oil and gas well costs surge

As ExxonMobil and partners Santos and Oil Search yesterday celebrated the sailing of a maiden cargo from their $US19 billion ($20.6 billion) PNG LNG plant in the Pacific, Australia’s peak oil and gas lobby has revealed a five-fold increase in the cost of locally drilled offshore wells. Based on industry data, the average cost of a well spudded off Australia is more than $130 million. The huge rise in well costs has coincided with a more than two-thirds fall in activity levels since 2003, according to an analysis by the Australian Petroleum Production & Exploration Association. APPEA has used the analysis to warn about Australia’s fast-diminishing competitiveness at a time when oil and gas majors are finding massive gas finds elsewhere in the world where construction and operating costs are much lower, including in PNG, east Africa and North America. "Australia is already at the top of the cost […]

Posted On : Published By : Tom Whipple
Category:

Iraqi forces launch attack on ISIS in Babil, bombard Fallujah

Iraqi security forces clashed with members of the Islamic State of Iraq and Syria (ISIS) in the province of Babil on Sunday, as part of an effort to reassert control of the nearby city of Fallujah. A police spokesman said army and police units were searching for members of ISIS in the province area when the fighting erupted. In a statement, the spokesman said: “A unit from Babil police, in cooperation with the army, launched an extensive operation in Al-Abed, Yas and Bahbahan areas, in search of members of the armed groups who booby-trapped houses and planted a number of explosive devices on the roadside to target the army.” He added: “The operation involved violent clashes where all types of arms were used.” Meanwhile, the head of the security committee for the central and southern areas at Babil’s provincial council, Falah Al-Khafaji, said: “A unit from […]

Posted On : Published By : Tom Whipple
Category:

Nineveh requests to become autonomous region

THE GLOBE Nineveh Governor, Ethel al-Nujaifi, announced that Nineveh Provincial Council has submitted a request letter to the Iraqi central government asking for making the Province an autonomous region. Nineveh Governor, Ethel al-Nujaifi, announced that Nineveh Provincial Council has submitted a request letter to the Iraqi central government asking for making the Province an autonomous region. Al-Nujaifi pointed out: ?Nineveh administrative body has lost its trust in the central government because the Province?s requests and demands have been neglected and ignored in many respects.? Al-Nujaifi found it essential to request the central government to approve the law of the Province Council, especially the one that is related to the security case of the Province, although the Governor does not expect the central government to answer affirmatively. ?The government has no intention to solve the issues the Province is suffering from. Many key issues regarding security, energy and the public […]

Posted On : Published By : Tom Whipple
Category:

Turkey flexing muscle with Kurdish oil sales

Turkey is flexing diplomatic muscle and showing it’s ready to position itself as a key energy hub with the export of Kurdish oil, an international analyst said. The semiautonomous Kurdistan Regional Government confirmed in a statement Friday a tanker loaded with more than 1 million barrels of crude oil left a Turkish port, the first of what it said would be "many such sales of oil" from northern Iraq. The central government in Baghdad filed a case at an international court of arbitration in Paris to challenge the export. The central government says any unilateral deals in the energy sector from KRG are illegal , though the Kurdish side said it’s operating according to the rule of law. Soli Ozel, an international relations analyst at Kadir Has University in Istanbul, told Voice of America the oil issue spills over into Turkish ambitions for the […]

Posted On : Published By : Tom Whipple
Category:

First Gas Arrives at Duhok Power Station

The Kurdistan Regional Government is pleased to announce the successful delivery via pipeline of the first quantities of natural gas from the gas field at Summail to fuel the Duhok Power Station. The Summail Gas Field lies within the area of the Duhok Production Sharing Contract (PSC) and is operated by Norwegian company DNO, which together with Anglo-Turkish PSC partner Genel Energy, signed a landmark gas sales agreement (GSA) with the KRG on September 18, 2013. Long-term deliveries are expected to reach 120 million cubic feet per day sold on a take – or – pay basis for the duration of the production – showing the KRG can successfully develop its newly discovered gas assets in Kurdistan. Under the long – term GSA, the KRG will purchase up to 120mmscf/d. Initial volumes will start at around 55mmscf/d, ramping up to 120mmscf/d within the next […]

Posted On : Published By : Tom Whipple
Category:

Iraq: Civilians and medical facilities bear brunt of fighting in Fallujah

The International Committee of the Red Cross (ICRC) is profoundly disturbed by the ongoing fighting in Anbar province, particularly in Fallujah, between the Iraqi security forces and armed groups. The fighting has severely disrupted the flow of food, water, fuel, medical and other supplies to civilians in the city. Hundreds of thousands of civilians are estimated to have fled their homes in Anbar province since hostilities erupted in December 2013. Ramadi, Anbar province, Iraq. Boys stand on debris from the roof of a mosque that collapsed following fighting. @Reuters / A.a "In the past few days alone, more than 35,000 people have been reportedly displaced. A large number of civilians are still trapped inside the city by fighting," said Patrick Youssef, head of the ICRC delegation in Iraq, who recently went to the area to assess the humanitarian situation. "Supplies of water, food, and other basic […]

Posted On : Published By : Tom Whipple
Category:

35 people killed in bomb attacks across Iraq

Up to 35 people were killed and 70 others wounded in separate bomb attacks across Iraq on Tuesday, police and medical sources said. The deadliest attack occurred at noon in the Iraqi capital of Baghdad when a suicide bomber blew up his explosive vest among a crowd of Shiite worshippers inside Abu al-Timan mosque, leaving 19 people killed and 34 others wounded, a police source told Xinhua on condition of anonymity. Insurgent groups frequently attacked Shiite pilgrims who perform communal rituals in the Iraqi cities, killing and wounding hundreds of them in attempt to provoke sectarian strife. In a separate incident, a roadside bomb went off at a popular marketplace at the predominantly Shiite district of Sadr City in the eastern part of Baghdad, killing two people and wounding nine others, along with damaging several nearby shops and stalls, the source said. Also in […]

Posted On : Published By : Tom Whipple
Category:

Iraq Oil Revival Stalls Again as Violence Pinches Growth: Energy

The revival in Iraqi oil output has stalled. Again. Production forecasts for 2014 are getting less optimistic. The Oil Ministry’s official target is 4 million barrels a day by the end of the year. More likely it will be 3.75 million, Thamir Ghadhban , an adviser to the prime minister, said in an interview May 14. Or perhaps 3.4 million, about the same as last month, according to the average of six analyst estimates compiled by Bloomberg News . Violence and conflict are pinching growth for OPEC’s second-biggest member. While Iraq added about 2 million barrels to daily production since 2003, the year of Saddam Hussein ’s ouster, attacks on pipelines and an oil-revenue dispute with the semi-autonomous Kurdish region are diminishing the country’s dependability as a supplier. They’re also contributing to making oil more expensive, VTB Capital said. “Iraq always seems to be the producer of the future,” […]

Posted On : Published By : Tom Whipple
Category:

US tells its nationals to leave Libya

The US State Department has recommended that Americans leave Libya immediately in its latest travel warning amid worsening unrest in the North African country. The department said on Tuesday that the security situation in Libya "remains unpredictable and unstable", with crime levels high in many parts of the country. The advisory came amid reports newly elected Libyan Prime Minister Ahmed Maiteg had escaped unharmed after his residence was . The State Department added that various groups also had called for attacks against US citizens and US interests in Libya. "Due to security concerns, the Department of State has limited staffing at Embassy Tripoli and is only able to offer very limited emergency services to US citizens in Libya," the travel warning said. "Because of the presumption that foreigners, especially US citizens, in Libya may be associated with the US government or US NGOs, travellers should be aware that they […]

Posted On : Published By : Tom Whipple
Category:

Bombing kills Iran gas pipeline workers

Personnel from the Iraqi security forces detain suspected militants of the al Qaeda-linked Islamic State in Iraq and the Levant, during a raid operation in Jurf al-Sakhar, May 27, 2014. The operation led to the arrest of wanted figures in Jurf al-Sakhar south of the Iraqi capital Baghdad, according to an Iraqi security forces officer. (MUSHTAQ MUHAMMED/Reuters) At least four Iranian technicians building a gas pipeline in Diyala province were killed in a bombing Saturday morning – the latest in a series of attacks affecting the energy sector in northern Iraq. The pipeline, which is slated to send Iranian natural gas to the Mansuriya power plant and then down to Baghdad’s Sadr and Quds power plants, is behind schedule in part because of deteriorating security along its path. As workers were traveling by bus at 8:30 a.m. on May 24, a roadside bomb… This content is for registered users. […]

Posted On : Published By : Tom Whipple
Category:

65,000 families displaced in western Iraq: Red Crescent

The Iraq Red Crescent Society has announced the displacement of 65,000 families since the beginning of the ongoing military battles in Anbar province in western Iraq. Mohammad Al-khozai, Assistant Secretary-General of the Iraqi Red Crescent Society said in a press statement that number of families displaced since the beginning of the crisis in Anbar province was now 65,000 families, the majority from Fallujah. He pointed out that the Iraqi Red Crescent is the only humanitarian organisation in the field since the beginning of the crisis and was able to provide assistance for up to 50,000 families. He added that the majority of those displaced families were focused within the borders of the province in areas far from the conflict; the rest of the families were distributed within provinces adjacent to Anbar in addition to the cities of the provinces of northern Iraq. WAM

Posted On : Published By : Tom Whipple
Category:

Iraq Shia worshippers killed in suicide blast

A suicide bomber has killed at least 19 people at a Shia mosque in central Baghdad, officials have said, while violence elsewhere in Iraq left four dead, the latest in a protracted surge in bloodshed. The bomber blew himself up at the entrance to the mosque in Baghdad’s Shorja district on Tuesday as worshippers were preparing for midday prayers. Another 26 people were wounded in the blast, security and medical officials said. Elsewhere in the capital, roadside bombs in the Sadr City and Dura districts left two people dead. Bombings in the main northern city of Mosul killed another two people. The attacks came as Iraq’s Shia-led government struggles to contain the worst surge in sectarian violence since the country was pushed to the brink of civil war in 2006 and 2007. The UN says violence killed 8,868 people last year. Violence has surged in the past year to […]

Posted On : Published By : Tom Whipple
Category:

Libya's new PM unharmed after attack

Libya’s prime minister, who was recently approved in a contested parliamentary vote, was unharmed in an attack on his home that set off a gun battle with guards, a government official said. The official said four attackers fired rocket-propelled grenades at the house of Ahmed Maiteg early on Tuesday, sparking clashes with security guards. One of the assailants was killed and another was arrested while the rest fled, the official said, speaking to the Associated Press news agency on condition of anonymity. Maiteg was named prime minister in a vote deemed illegitimate by religious hardline lawmakers. The appointment escalated a political crisis pitting lawmakers and fighters against forces loyal to General Khalifa Haftar, who has launched an armed campaign to try to restore order, three years after the revolt that toppled and killed Muammar Gaddafi. Thousands of Libyans have held demonstrations in recent days demanding the elected assembly halt sessions and accusing […]

Posted On : Published By : Tom Whipple
Category:

Libya’s new PM unharmed after attack

Libya’s prime minister, who was recently approved in a contested parliamentary vote, was unharmed in an attack on his home that set off a gun battle with guards, a government official said. The official said four attackers fired rocket-propelled grenades at the house of Ahmed Maiteg early on Tuesday, sparking clashes with security guards. One of the assailants was killed and another was arrested while the rest fled, the official said, speaking to the Associated Press news agency on condition of anonymity. Maiteg was named prime minister in a vote deemed illegitimate by religious hardline lawmakers. The appointment escalated a political crisis pitting lawmakers and fighters against forces loyal to General Khalifa Haftar, who has launched an armed campaign to try to restore order, three years after the revolt that toppled and killed Muammar Gaddafi. Thousands of Libyans have held demonstrations in recent days demanding the elected assembly halt sessions and accusing […]

Posted On : Published By : Tom Whipple