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Europe leans on Azerbaijan for gas security

Building a gas corridor from Azerbaijan is just as as it is Azeri economic development, a top European leader said in Baku. European Commission President Jose Manuel Barroso spoke before an audience at the Azerbaijan Diplomatic Academy University, saying the country has undergone "radical and rapid change" since it gained independence from the Soviet Union in 1991. European leaders have said the huge volumes of natural gas off the coast of the former Soviet republic could help break Russia’s grip on the European energy sector. The so-called Southern Corridor envisions a series of pipelines from Caspian reserves to the European market. "This is a project that can encourage greater economic cooperation, improve energy security and create over 30,000 jobs in all countries along the corridor," Barroso said Saturday. British energy company BP is leading efforts to draw natural gas from the Shah Deniz gas field off the coast of […]

Posted On : Published By : Tom Whipple
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IMF cuts U.S. growth outlook, says full employment years off

The International Monetary Fund cut its growth forecast for the United States on Monday and said the economy would not reach full employment until the end of 2017, allowing interest rates to be held near zero for longer than financial markets expect. In its annual health check of the U.S. economy, the IMF cut its 2014 forecast to 2 percent from the 2.8 percent it predicted in April, due to a weak first quarter. It kept its 2015 forecast unchanged at 3 percent, as job creation picks up after a harsh winter. "Recent data … suggest a meaningful rebound in activity is now underway and growth for the remainder of this year and 2015 should well exceed potential," the IMF said. Yet the country’s potential growth should only be around 2 percent going forward, below historical averages, as the population ages and productivity growth slows, it […]

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Bakken Shale Rig Count Decreases by Four to 172

The  Bakken-Three Forks rig count  decreased by four to 172 rigs running across our coverage area by the end of last week. The NDIC notes 185 rigs are active in North Dakota, but around 20 of those are in the process of moving in and rigging up. In recent Bakken news, Summit Midstream Partners announced in June of 2014 that it will spend $300 million on four new development projects involving oil, water and natural gas gathering in the Bakken Shale play. The new projects will further expand the companies footprint in Williams and Divide counties. Read more:  Summit Midstream Expanding Bakken System – $300 Million The U.S. rig count decreased by six to 1,854 rigs running by the end of last week. A total of 310 rigs were targeting natural […]

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U.S. Crude Exports Up Sixfold as Canada Taps Shale Boom

Oil exports from the U.S. in April rose to the highest level in 15 years as Canadian refineries replaced more expensive imports from Europe and West Africa with shale oil from North Dakota and Texas. The U.S. shipped 268,000 barrels a day in April, the Energy Information Administration reported today. That’s the most since April 1999, and a more than sixfold increase since April 2012. Federal law allows exports of unrefined crude to Canada and restricts them to most other destinations. The increase in exports follows a boom in oil production driven by horizontal drilling and hydraulic fracturing, or fracking, in places like North Dakota and Texas. The surge in output has increased supplies in the U.S., driving down prices relative to the rest of the world. “The boom in U.S. production caused a price differential to grow between foreign crude and U.S. crude,” said Carl Larry, president of […]

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U.S. crude exports in April rise to highest level in 15 years

Graph of U.S. crude exports, as explained in the article text Source: U.S. Energy Information Administration, Petroleum Supply Monthly The United States exported 268,000 barrels per day (b/d) of crude oil in April (the latest data available from the U.S. Census Bureau), the highest level of exports in 15 years. Exports have increased sharply since the start of 2013 and have exceeded 200,000 b/d in five of the past six months. The increase in crude exports is largely the result of rising U.S. crude production , which was 8.2 million b/d in March. To export crude oil from the United States, a company must obtain a license from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. Under export licensing requirements, the following kinds of transactions will generally be approved: Exports from Alaska’s Cook Inlet Exports to Canada for consumption or use therein Exports in […]

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After Oil, Natural Gas May Be Next On North American Rails

As politicians debate the dangers of a massive increase in oil carried by rail in North America, railroads and energy producers are considering the same for natural gas. Buoyed by the unexpected success of crude by rail, companies are beginning to consider transporting natural gas as remote drilling frontiers emerge beyond the reach of pipelines, executives said. Natural gas by rail is years away and likely to face strong public resistance after a series of explosive crude-by-rail accidents. But the potentially multibillion-dollar development could connect gas-rich regions like North Dakota with urban centers, presenting an opportunity for railroads, drillers and tank car makers already cashing in from hauling oil on trains. It could also be a cure for environmentally unfriendly flaring, a growing problem in far-flung areas where more than $1 billion of natural gas produced alongside oil is burned off […]

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Canada-South Korea trade deal would remove duties for Canadian oil, LNG exports

A proposed free trade agreement between Canada and South Korea would remove the current 3% to 8% tariff that Canadian oil and gas producers have to pay for exports into that Asian nation, a Canadian government spokeswoman said Monday. Claude Rochon, a spokeswoman with Foreign Affairs and International Trade Canada, said crude oil and LNG exports — with current duties of 3% — would become "duty-free immediately" upon implementation of the FTA. A duty of up to 8% imposed by the South Korean government on imports of Canadian refined products would be removed in stages, she said, noting 96% would be "free" right away with the FTA coming into effect and the remaining 4% over the next five years. Canada is not known to export large volumes of crude oil to South Korea, but Rochon said the deal would significantly improve market access for the Canadian oil and gas […]

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Ukraine Able to Maintain Domestic Gas Supplies for Several Months – Officials

Ukraine will be able to maintain domestic supplies of natural gas and ensure the transit of Russian exports to Europe for at least several months despite Moscow’s move Monday to cut off shipments to Ukraine in a dispute over prices and other contract terms, officials said. "The Ukrainian side has prepared for this eventuality and we are ensuring reliable transit as well as supplies to domestic consumers," Yuriy Prodan, Ukraine’s minister of energy and coal, told a cabinet meeting in Kiev, the Interfax news agency reported. Andriy Koboliv, head of state gas company NAK Naftogaz told the same session that, "We have time to resolve this issue at least until December." Transit volumes to Gazprom’s European customers are flowing normally at 185 million cubic meters a day, he said. The officials noted that Ukraine’s inventories of gas in storage–now nearly 14 billion cubic meters–and imports from […]

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Gazprom Demands Ukraine Prepays for Gas

Russian state gas giant OAO Gazprom said Monday it will only ship fuel to Ukraine if it pays in advance, making good on a threat that could lead to supply cuts affecting European customers after late-night EU-mediated talks on debt repayment failed to yield a deal . Gazprom said it hadn’t received payment for a debt it put at $4.458 billion by the Monday deadline it had set. "Ukraine will receive gas only in the amounts it has paid for," Gazprom said. There was no immediate reaction from Kiev. The shift to prepayment is likely to lead to a reduction in supplies to Ukraine and could affect Russia’s shipments to Europe, the bulk of which go through Ukraine. Industry analysts say the initial effect on European markets of any supply disruption may be limited because of current […]

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More tidal energy set for Scottish coast

| License Photo A decision to invest more than $3 million on a tidal array planned for Scottish waters is a testament to its green energy strength, the energy minister said. Tidal technology company Nova Innovation and Belgian renewable energy company ELSA secured $3.1 million from European investors to build tidal arrays off the Scottish coast. "ELSA’s decision to invest in Scotland is a testament to the confidence felt by international investors to help develop the huge wave and tidal energy resources from the waters around the Scottish coast," Scottish Energy Minister Fergus Ewing said in a statement Sunday. The tidal array, which will consist of five 100-kilowatt turbines, will be installed in three stages. Three of the turbines should be commissioned by the end of 2015. Scotland says it lays claim to about 25 percent of the wind and tidal energy potential and 10 percent of wave energy […]

Posted On : Published By : Tom Whipple