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Shell claims discovery with CNOOC

A discovery in the deep waters of the Gulf of Mexico is a milestone for a partnership that includes a spinoff of China’s state oil company, Shell announced. Shell announced a discovery in the Rydberg area of the Norphlet play in the deep waters of the Gulf of Mexico. It’s the third major discovery in Norphlet for Shell and part of a series of wins for the partnership that includes the U.S. subsidiary of Colombian energy company Ecoptrol and Nexen, a subsidiary of China National Offshore Oil Corp. Shell said Tuesday it’s still assessing the data from the exploratory well in the Rydeberg area but expects it to hold about 100 million barrels of oil equivalent. Together with the two other discoveries in the Norphlet play — Appomattox and Vicksburg — Shell says the region holds at least 700 million boe. Shell and Nexen are planning another exploratory well […]

Posted On : Published By : Tom Whipple
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States Siphon Gas Tax for Other Uses

States are allotting a growing share of the funds they raise from gas taxes to debt service and spending unrelated to roads and bridges, making them more reliant on federal assistance to pay for new infrastructure. The shrinking pot of state cash is one reason why governors increasingly are in a panic over a congressional impasse about replenishing the federal Highway Trust Fund. The federal fund, too, is running out of money and will cut disbursements to states in August if Congress doesn’t intervene. Texas spends 25% of its fuel-tax revenue on education programs. Kansas has allocated some of its gas-tax revenue to pay for Medicaid and schools. Nationwide, making interest payments on debt used to fund existing infrastructure projects is one of the biggest state expenditures. Allen Biehler, who ran Pennsylvania’s transportation department for eight years before joining Carnegie Mellon University in 2011, said many states pursued bond […]

Posted On : Published By : Tom Whipple
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Petrotrin blames US shale gas revolution for reduced refinery runs

07/16/2014 Trinidad and Tobago’s state-owned Petrotrin is blaming the shale gas revolution in the US and lower crude prices at Cushing, Okla., for its decision to significantly reduce its refinery throughput to 120,000 bo/d from 180,000 bo/d. Petrotrin Pres. Khalid Hassanali told OGJ that the decision was an attempt to limit the company’s losses at its Point a Pierre refinery and to avoid going out of business like two other Caribbean refineries. Refineries in both Aruba and the US Virgin Islands have been shuttered as Caribbean refineries are facing higher prices for crude on the international market than many US refineries, which are benefiting from the continued bottleneck at Cushing. While the 30% reduction in refinery throughput is hurting the company’s bottom line, Hasannali insists that Petrotrin—an integrated company—is allowing its exploration and production arm to carry the ball for the time being. Mado Bachan, Petrotrin vice-president of refining […]

Posted On : Published By : Tom Whipple
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North Dakota flaring reduction policy may impact January production

North Dakota production continued to climb in May but new requirements in the state’s flaring reduction plan slowed permitting activity in June and may lead to production curtailments for some operators early next year. About 75% of permit applications required an extra 2-7 days of processing time while the state contacted operators to obtain additional information on gas processing plans, Lynn Helms, director, North Dakota Department of Mineral Resources, told reporters during a July 14 conference call. “At least 75% of the permits are missing one or more pieces of information,” Helms said. The state began requiring operators to submit gas capture plans with permit applications on June 1. Plans include information on area gas-gathering system connections and processing plants ; the rate and duration of planned flowback; current system capacity; a timeline for connecting the well; and a signed affidavit verifying […]

Posted On : Published By : Tom Whipple
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US refiners pursue more overseas product sales, EIA forum told

US refiners continue to respond to a changed competitive environment with additional investments and aggressive oil product export deals, speakers said during the US Energy Information Administration’s 2014 energy conference’s opening day. Flat US demand has made exports more attractive, but feedstocks and regulations continue to matter, “and the industry is deintegrating,” Joanne M. Shore, chief industry analyst at the American Fuel & Petrochemical Manufacturers , said during a July 14 session on changing global product trade flows. “Our surplus has allowed the US to change from a net product importer to a net exporter,” Shore said. “Rail has been a tremendous boon in moving crude to refineries. So have pipelines.” Not every US refinery has access to discounted crude, Shore said. Plants in the Midwest and Rocky Mountains have ample supplies, but situations for East Coast, Gulf Coast, and West Coast refineries have not changed much, she […]

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U.S. slaps toughest sanctions yet on Russia, targets Putin allies

President Barack Obama imposed the toughest U.S. sanctions yet on Russia, striking at the heart of Vladimir Putin’s powerbase by targeting companies closest to him over what Washington says is Moscow’s failure to curb violence in Ukraine. By imposing penalties on Russia’s largest oil producer Rosneft, its second largest gas producer Novatek and its third largest bank Gazprombank, Washington targeted Putin’s allies, many of whom have become wealthy during his tenure. The sanctions, which in effect close medium- and long-term dollar funding, were also put on Vnesheconombank, VEB, a state-owned bank that acts as payment agent for the government, and eight arms firms, including the producer of the Kalashnikov assault rifle. The sanctions did not freeze those four companies’ assets, or stop U.S. firms from doing business with them and several were quick to say it was business as usual. But Russia’s rouble-traded stock market and […]

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U.S., EU Escalate Russia Sanctions as Putin Holds Firm

The U.S. and the European Union imposed the most aggressive sanctions to date on Russian business and said more may follow, acting after weeks of threats to squeeze the $2 trillion economy over the confrontation in Ukraine. The benchmark Micex index dropped 1.9 percent as of 10:54 a.m. today in Moscow to the lowest since May 30 and the ruble slid 0.7 percent against the central bank’s basket of currencies after the Obama administration unveiled the sanctions. Targeted companies include OAO Rosneft (ROSN) , Russia’s largest oil company, natural gas producer OAO Novatek (NVTK) , OAO Gazprombank, the country’s third-largest lender, and eight defense firms. EU leaders agreed to blacklist companies and halt lending to public-sector projects in Russia. “These sanctions are significant,” U.S. President Barack Obama said yesterday at the White House. “But they are also targeted, designed to have maximum impact on Russia while limiting any spillover […]

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London signs off on Rampion wind farm

| License Photo The British government said Wednesday it signed off on plans to build the 700 megawatt Rampion wind farm off the coast of Sussex. German utility company E.ON is leading development of the offshore installation that should be completed by 2019. The British government said it expects the project to bring in more than $3.4 billion worth of investments to its economy. Signing off on the project Wednesday, the British government said the Rampion wind farm would generate enough energy to meet the annual needs of 450,000 households. The government said the consent decision is a testament to its commitment to renewable energy resources. "We’re driving investment in our energy security, and our plans have made us number one in the world for investment in offshore wind energy," British Energy and Climate Change Secretary Ed Davey said in a statement . DECC in a recent assessment said […]

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Put 53 Years on the Clock: The End of Easy Oil Is Within Sight

Love it or hate it, British multinational oil and gas company BP ( NYSE:BP ) is one the world’s top institutional experts on energy. Besides being a business leader in its industry — the sixth largest integrated oil company (IOC) by market cap in 2013 — the supermajor is at the forefront of the semi-commercial, semi-academic conversation about the future of energy use at large. Since 1952, BP has offered a share of its two cents in the form of an annual statistical review , the aim of which is to share data and insight about current energy markets and where the world could be heading. The report proper is somewhat dense and is generally only partially digested, if at all, by the media, but the 2013 review contained a few salient points that were thrust into the spotlight. First, and most broadly, was this insight: Demand growth for […]

Posted On : Published By : ASPO-USA
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Researchers Address Economic Dangers of ‘Peak Oil’ in USA

Researchers from the ICTA-UAB and the University of Maryland (UMD) demonstrate in a new study which sectors could put the entire U.S. economy at risk when global oil production peaks (‘Peak Oil”). This multi-disciplinary team recommends immediate action by government, private and commercial sectors to reduce the vulnerability of these sectors. References Christian Kerschner, Christina Prell, Kuishuang Feng, Klaus Hubacek (2013). Economic vulnerability to Peak Oil , Global Environmental Change. While critics of Peak Oil studies declare that the world has more than enough oil to maintain current national and global standards, these researchers from ICTA-UAB and UMD say Peak Oil is imminent, if not already here—and is a real threat to national and global economies. Their study is among the first to outline a way of assessing the vulnerabilities of specific economic sectors to this threat, and to identify focal points for action that could strengthen the U.S. […]

Posted On : Published By : Tom Whipple