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Chevron Profit Declines on Lower Production

Chevron—the second-biggest U.S. oil company in market value behind Exxon Mobil—had warned last month that production would drop year-over-year as severe weather led to downtime in the U.S., Canada and Kazakhstan, among other regions. Chevron Corp. said its first-quarter profit fell 27% as revenue slipped amid lower oil prices and production. The results fell short of expectations. "Our first quarter earnings were down from a year ago, primarily due to lower prices and volumes for crude oil," Chairman and Chief Executive John Watson said. The company said its global oil-equivalent production for the period fell to 2.59 million barrels a day from the year-earlier tally of 2.65 million, as normal field declines and unplanned downtime related to poor weather–mainly in Kazakhstan–more than offset production increases in Nigeria, Angolia and the U.S. Chevron—the second-biggest U.S. oil company in market value behind Exxon Mobil Corp. —had warned last month that production […]

Posted On : Published By : Tom Whipple
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U.S. Transportation Dept. Says Energy Companies Not Sharing Test Data on Bakken Oil

The federal government said only three companies have voluntarily turned over data on the from North Dakota, despite requests for this information dating back to January. The U.S. Department of Transportation said Friday that Exxon Mobil Corp. , Continental Resources Inc. and Savage Services Corp. had shared testing data, but none of the many other producers or shippers active in the area had done so. The government is seeking data on the crude after a series of railroad accidents in which oil exploded, including one in that left more than 40 people dead. Historically, crude hasn’t erupted into fireballs, raising questions about the composition of the oil from the Bakken. In January, Transportation Secretary Anthony Foxx said the oil industry had agreed to share testing data about the , but since then the government and industry have disagreed over what was promised. The amount of oil moving by rail […]

Posted On : Published By : Tom Whipple
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Keystone XL bill backed by Big Oil, group says

U.S. senators who drafted legislation in support of the Keystone XL oil pipeline received $21 million from the oil industry, an advocacy group says. U.S. Sens. John Hoeven , R-N.D., and Mary Landrieu , D-La., chairwoman of the Senate Energy Committee, introduced legislation that would immediately authorize pipeline company TransCanada’s application to build Keystone XL. Oil Change International, an advocacy group opposed to Keystone XL, said Hoeven and Landrieu received campaign support from the oil industry. It said Thursday its review of campaign contributions finds the nine Democratic senators who joined the entire rank of Senate Republicans in co-sponsoring the bill received an average $375,000 each in "dirty energy money." TransCanada submitted an application to the U.S. federal government to build the pipeline across the U.S.-Canadian border. A decision on the application is pending because of legal issues over the pipeline’s route through Nebraska. […]

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U.S. to Store Gasoline for Crises in the Northeast

The federal government will build its first gasoline storage reserves in the New York Harbor area and in New England in response to the shortages suffered after Hurricane Sandy , the secretary of energy, Ernest J. Moniz, is to announce on Friday. Together, the reserves will hold about a million barrels of gasoline and cost about $215 million. The fuel is intended to be held back in case another disaster cripples regional fuel supplies. Energy Department officials envision the reserves as the first in a series that will be built in parts of the country vulnerable to extreme weather, believed to be caused by global warming . “In addition to our mitigation and international efforts, the president’s Climate Action Plan calls on us to take measures today in order to better prepare for the effects of climate change we already see occurring here at home,” Mr. Moniz […]

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Wooing of Senators to Force Keystone Seen Falling Short

Keystone XL supporters are falling short in their efforts to round up the Democratic votes in the Senate to bypass the White House and approve the Canada-to-U.S. oil pipeline. A bipartisan bill was introduced yesterday that would circumvent President Barack Obama by issuing a permit allowing construction. The move came after his administration delayed a decision on the $5.4 billion project, possibly into next year, citing a legal challenge to the route it would take through Nebraska. Senate Majority Leader Harry Reid , a Nevada Democrat who opposes the pipeline, told reporters yesterday that there is a “75 to 80 percent chance” that a vote on a standalone Keystone bill will be allowed. That might seem like good news for pipeline supporters, but Democratic leaders are convinced they could defeat a binding measure to force a permit for the pipeline, said a Democratic leadership aide who spoke on condition […]

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Chevron's profit drops on lower production, crude prices

(Reuters) – Chevron Corp, the second-largest U.S. oil producer, posted a lower-than-expected quarterly profit on Friday on lower global production and crude oil prices. The company posted net income of $4.51 billion, or $2.36 per share, compared with $6.18 billion, or $3.18 per share, in the year-ago quarter. Analysts, though, expected earnings of $2.51 per share, according to Thomson Reuters I/B/E/S. Globally, Chevron’s production fell 2 percent to 2.59 million barrels of oil equivalent per day (boed). The average price Chevron received for its crude oil fell as well. The results stood in contrast to rivals Exxon Mobil Corp and ConocoPhillips, which on Thursday posted quarterly profits that beat Wall Street’s expectations. Both companies produce more natural gas than Chevron inside the United States, and rebounding natural gas prices in the first quarter lifted their respective results. Chevron Chief Executive, John Watson attributed lower crude oil prices to "global […]

Posted On : Published By : Tom Whipple
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Chevron’s profit drops on lower production, crude prices

(Reuters) – Chevron Corp, the second-largest U.S. oil producer, posted a lower-than-expected quarterly profit on Friday on lower global production and crude oil prices. The company posted net income of $4.51 billion, or $2.36 per share, compared with $6.18 billion, or $3.18 per share, in the year-ago quarter. Analysts, though, expected earnings of $2.51 per share, according to Thomson Reuters I/B/E/S. Globally, Chevron’s production fell 2 percent to 2.59 million barrels of oil equivalent per day (boed). The average price Chevron received for its crude oil fell as well. The results stood in contrast to rivals Exxon Mobil Corp and ConocoPhillips, which on Thursday posted quarterly profits that beat Wall Street’s expectations. Both companies produce more natural gas than Chevron inside the United States, and rebounding natural gas prices in the first quarter lifted their respective results. Chevron Chief Executive, John Watson attributed lower crude oil prices to "global […]

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TransCanada Sees Job Cuts With Keystone Build Delayed

TransCanada Corp. (TRP) doesn’t expect to start building its proposed $5.4 billion Keystone XL pipeline this year, resulting in hundreds of job losses as construction contracts are wound down. The company has pushed the timetable to start building the northern leg of the project, intended to transport crude from Alberta ’s oil sands to Gulf Coast refiners, to 2015 after the Obama administration delayed a decision because of a legal challenge in Nebraska . TransCanada is still targeting startup of the line in 2016, Chief Executive Officer Russ Girling said today. “There will be several hundred that will be impacted by this decision, both employees and contractors,” Girling told reporters at the company’s annual meeting in Calgary. “At this point in time, there’s a very low probability that we would have a decision in time to meet this year’s summer construction period.” The State Department, which is leading an […]

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Valero to Suncor Shun Overseas Imports in Eastern Canada

Suncor Energy Inc. (SU) and Valero Energy Corp. are poised to use only North American crude in eastern Canada by 2015, helping to displace overseas imports. Suncor’s Montreal refinery will reach that point in 2015 and Valero’s Quebec City plant by the end of this year, the companies said April 29. Imports to Quebec, Ontario and Atlantic provinces from outside North America dropped by more than 50 percent in November from a year earlier. Enbridge Inc. plans to start a pipeline late this year allowing oil to flow to Montreal from fields in North Dakota and Alberta , further reducing higher-priced supplies from Europe and Africa . U.S. crude production reached a 26-year high in April, increasing stockpiles in the U.S. to the highest since 1931, while Canadian output is forecast to rise 4.1 percent this year. A shift of oil to eastern Canada, coupled with future potential to […]

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Buckeye plans for heavy crude by rail at Perth Amboy for Canadian re-exports

Buckeye Partners may facilitate exports of Canadian crude to its BORCO terminal in the Bahamas from its Perth Amboy, New Jersey, terminal, where the company is rushing to make a new crude-by-rail unloading facility heavy-crude capable, CEO Clark Smith said Friday. "Customer demand has also accelerated the second phase of this rail project as we position the facility to handle heavier crude slates and facilitate exports of Canadian-sourced crude oil," Smith said on an earnings call. "Given this customer demand, we are adding certain equipment to fast track the completion of new infrastructure to handle the heavy crude oil slates." The "re-export" of Canadian crudes from US ports is an increasingly discussed topic as more heavy crude production from Western Canada moves on pipelines and tank cars to the East and Gulf coasts. For example, Texas-based Valero Energy has a license to re-export Canadian […]

Posted On : Published By : Tom Whipple