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Libya hopeful about its oil sector

The chairman of the Libyan National Oil Corp. said the government aims to hold an auction for new oil licenses once political hurdles are cleared. Companies interested in investing in Libya, once a premier North African oil producer, have said the nation’s troubled security sector and tough contractual terms are keeping them at bay. NOC Chairman Mustafa Sanallah told potential investors at an energy conference in London another bidding round is expected once a permanent government is formed and new draft oil laws are ready. "Hopefully by next year the situation will be very clear," he said Thursday. The latest monthly market report from the Organization of Petroleum Exporting Countries, of which Libya is a member, says the North African nation produced 238,000 barrels of oil per day in April, down from the first quarter average of 364,000 bpd and well below its 2012 level of 1.4 million bpd. […]

Posted On : Published By : Tom Whipple
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Prolonged Libyan Oil Closures Delay Return to Normal Output

LONDON—Prolonged closures in Libya’s oil fields are set to delay a return to normal output, a senior official said Friday—even after production at the country’s largest oil field is restarted. Speaking at the third New Libya Oil and Gas Forum in London, Anwar Agil, head of production management at Libya’s National Oil Corporation, said a return to normal production at the country’s largest oil field could be delayed by four months because more than 20 underground pumps needed to be replaced. The Sharara field, in western Libya, which is operated by Spain’s Repsol SA, is currently shut after being occupied by local protesters seeking better redistribution of oil revenue. Underground pumps there have been repeatedly switched on and off amid false starts. The field has the capacity to produce 340,000 barrels a day—more than a fifth of Libya’s normal output of about 1.5 million barrels a day. But even […]

Posted On : Published By : Tom Whipple
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Obama Uses Hurricane Season Start to Boost Climate Plan

Anticipating more storms like Hurricane Sandy , President Barack Obama urged emergency workers and residents in coastal areas to brace themselves for the start of the hurricane season. The official beginning of the hurricane season two days from now coincides with an administration focus on climate change, which Obama is making a central issue during his final years in office. “The changes we’re seeing in our climate mean that, unfortunately, storms like Sandy could end up being more common and more devastating,” Obama said today at a hurricane preparation meeting at the Washington headquarters of the Federal Emergency Management Agency. “And that’s why we’re also going to be doing more to deal with the dangers of carbon pollution that help to cause this climate change and global warming.” The Environmental Protection Agency is set to announce on June 2 limits on carbon emissions from power plants . While the […]

Posted On : Published By : Tom Whipple
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Cheniere signs U.S. gas export deal with Iberdrola

U.S. gas company Cheniere Energy said Friday its Spanish counterpart, Iberdrola, agreed to buy liquefied natural gas from a planned export terminal in Texas. Cheniere Energy Chairman Charif Souki said Friday deliveries of as much as 400,000 tons of liquefied natural gas from the planned Corpus Christi export facility could begin by 2019. Iberdrola, he said, "is the first foundation customer" for the export facility and more deals are on the way. "We are in advanced discussions with other counterparts and are working towards finalizing additional agreements," he said in a statement . "We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015." The deal is the third of its kind for Cheniere. The company signed a deal with Spanish energy company Endesa in April and with Indonesian state-owned company PT Pertamina in December. Iberdrola in a statement said the […]

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API: Oil exports good for most U.S. states

Even states that don’t produce much oil could benefit from the lifting of a 1970s-era export ban, a report prepared for the American Petroleum Institute says. The U.S. government restricted crude oil exports in 1973 in response to an embargo from Arab members of the Organization of Petroleum Exporting Countries. An increase in U.S. oil production has prompted groups like API to call for a repeal of the 1973 measure. Kyle Isakower, vice president of regulatory policy for API, which represents the interests of the energy industry, said exports would bring benefits to most of the 50 states. "New jobs, higher investment, and greater energy security from exports could benefit workers and consumers from Illinois to New York, especially in areas where consumer spending and manufacturing drive growth," he said in a statement Thursday. The report, prepared by ICF International and EnSys Energy, says some states without much oil […]

Posted On : Published By : Tom Whipple
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Monthly Natural Gas Gross Production Report with data for March 2014

The two graphs below show total U.S. and Lower 48 natural gas production on one and the individual State production on the other. In March, production in the Lower 48 States increased by 1.6 percent or 1.18 billion cubic feet per day (Bcf/d). Texas had the largest volumetric increase at 2.6 percent or 0.57 Bcf/d primarily due to new wells being brought online and shut-in wells returning to production. Other States also reported a gain of 1.4 percent or 0.40 Bcf/d as many operators reported improved weather conditions and new wells in the Appalachian and Uinta Basins. Oklahoma production also saw an increase of 4.1 percent or 0.24 Bcf/d due to the completed maintenance and improved weather conditions from the prior month. Both the Federal Gulf of Mexico and Louisiana saw declines of 2.7 percent or 0.09 Bcf/d and 1.4 percent or 0.08 Bcf/d respectively, mainly due to maintenance […]

Posted On : Published By : Tom Whipple
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US gas demand could increase by 3-10 Bcf/d under EPA GHG rule: analysts

US natural gas demand could increase by 3 Bcf/d to 10 Bcf/d by 2020 under an expected Environmental Protection Agency plan to reduce carbon dioxide emissions from power plants, analysts said Friday. Using its authority under the Clean Air Act, EPA is expected Monday to announce proposed rules designed to limit the amount of COs emitted by existing power plants. Gas will be one of the winners under every assumption about new source performance standards for existing power plants, analysts said Friday. They differed only on the size and scale of how much gas would be needed, saying that will depend entirely on how strict or lax the new regulations are on coal-fired plants. President Barack Obama’s Climate Action Plan calls for a 20% cut in carbon dioxide emission by 2020 but which year will serve as the benchmark from which to measure the cut is still unknown. There […]

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Baker Hughes: US drilling rig count rises to 1,866

The US drilling rig count gained 9 units to reach 1,866 rigs working during the week ended May 30, Baker Hughes Inc. reported. All 9 of those units were land-based rigs, bringing its total to 1,792. Rigs drilling offshore and in inland waters were unchanged from a week ago at respective totals of 60 and 14. Oil rigs rose 8 units to 1,539 while gas rigs edged up a single unit to 326. Rigs considered unclassified were unchanged from a week ago at 4. Horizontal drilling rigs jumped 8 units to 1,251. Directional drilling rigs climbed 7 units to 212. In Canada, a 44-unit leap brought the nation’s total to 198, 53 units higher than this week a year ago. A vast majority of those units were oil rigs, which spiked 40 units to 105. Gas rigs, meanwhile, merely gained 4 units to 93. Major states, basins Oklahoma’s […]

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$4 gas fuels shock and awful words

Four-dollar gasoline has made an unwelcome and unexpected return. Prices of regular, unleaded rose to within a penny or two of $4 per gallon yesterday across central Ohio, according to GasBuddy.com, with a few retailers hitting the $4 mark. Analysts say the increase is because of a national surge in demand that is hitting the state particularly hard. This is in contrast to reports earlier this month that prices likely had peaked. “There is strong demand, and supply is not as robust as needed,” said Brian Milne, an editor at Schneider Electric, a service provider to the energy industry. “That’s a market signal to produce more supply and bring more supply to the area.” Ohio gets much of its fuel from a wholesale market in the Chicago area, which has seen an unusually large price increase. The current wholesale price is the highest since July, Milne said. Central Ohio’s […]

Posted On : Published By : Tom Whipple
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EIA: Russian gas pipeline exports to Western Europe up 20%

In 2013, Russia’s natural gas pipeline exports to Eastern and Western Europe averaged 15.6 bcfd, a 16% rise compared with 2012, according to data from the US Energy Information Administration, Eastern Bloc Research, and Russian Energy Monthly. The increase was mainly driven by exports to Western Europe, which rose by 20% to 12.3 bcfd. “The entire increase in Russian natural gas exports to Western Europe in 2013 occurred in three countries—Italy, Germany, and the UK,” EIA said. Italy had the largest increase in gas pipeline imports from Russia in 2013, receiving 2.4 bcfd and reflecting a 1 bcfd increase over 2012. Germany and the UK’s imports from Russia increased in 2013 to 3.9 bcfd and 1.2 bcfd, respectively, 0.7 bcfd and 0.4 bcfd more than in 2012. Italy can receive Russian gas on the Bratstvo (Brotherhood) and Soyuz (Union) pipelines, which pass through Ukraine. Germany can receive Russian […]

Posted On : Published By : Tom Whipple