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Oil Retreats Slightly, But Holds Near Three-Week Highs

Oil futures retreated slightly Tuesday but held near three-week highs on expectations that strong demand from U.S. refineries would continue to shrink domestic oil supplies. Light, sweet crude for August delivery settled down 17 cents, or 0.2%, at $104.42 a barrel on the New York Mercantile Exchange. The August contract expired at settlement Tuesday. The more-actively traded September contract settled down 47 cents, or 0.5%, at $102.39 a barrel. Brent crude on the ICE futures exchange fell 35 cents, or 0.3%, to $107.33 a barrel. U.S. crude-oil supplies have fallen for three straight weeks as refineries have run at unusually high rates. U.S. refineries used 16.6 million barrels of oil a day in the week ended July 11, a record high in U.S. Energy Information Administration data going back to August 1982. The EIA is due to release its data for the week ended July 18 on Wednesday. Analysts […]

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WTI Falls for Second Day as Fuel Stockpiles Expand; Brent Steady

West Texas Intermediate crude fell for a second day after an industry report showed gasoline supplies expanded in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures dropped as much as 0.6 percent in New York. Gasoline inventories increased by 3.6 million barrels last week, the American Petroleum Institute was said to have reported yesterday. Stockpiles probably rose by 1 million barrels, according to a Bloomberg News survey of analysts before government data today. Brent traded near its lowest closing price in two days amid speculation that further sanctions on Russia over the downing of a Malaysian Air jet will have no impact on energy supplies. “Tensions related to Ukraine seem to be fading a bit, with clear signs that the separatists are willing to help, and with no new sanctions on Russia introduced,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in […]

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Oil falls to near $102 amid Gaza peace efforts

The price of oil retreated to near $102 per barrel on Wednesday amid a new push for a cease-fire between Israel and Palestine and after Europe imposed additional sanctions on Russia that fell short of a heavy hit. U.S. benchmark oil for September delivery was down 34 cents to $102.07 a barrel at 0850 GMT in electronic trading on the New York Mercantile Exchange. The contract slipped 47 cents to $102.39 on Tuesday. Brent crude for September delivery, a benchmark for international oils, was up 9 cents to $107.43 on the ICE exchange in London. The price of oil has been kept high after a civilian jetliner was last week shot out of the sky over part of eastern Ukraine controlled by pro-Russian separatists and as Israel’s invasion of the Gaza Strip added to risks of instability in the Middle East. On Wednesday, U.S. Secretary of State John Kerry […]

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Natural-Gas Futures Fall to 8-Month Low on Mild Weather

Natural-gas prices fell to an eight-month low on Tuesday, as a mild summer and growing stockpiles of the fuel discouraged investors. The latest forecasts indicate mild temperatures extending into what is usually the hottest period of the year, which would damp demand for natural gas used to generate electricity for air conditioning. Natural gas for August delivery was down 7.7 cents, or 2%, to $3.772 a million British thermal units on the New York Mercantile Exchange. It is the lowest price since Nov. 22, 2013. "The weather has not been particularly off the charts," said Ed Kevelson, head of over-the-counter energy markets at brokerage Newedge USA, which is owned by Societe Generale. Even forecasts for August are beginning to call for lower-than-usual temperatures, he said. In addition to the lack of heat, continued gains in supplies are driving prices […]

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OPEC’s Two-Decade Ride on Global Growth Stalls: Chart of the Day

For the past two decades, growth in the global economy spelled higher revenues for the Organization of Petroleum Exporting Countries. Not any more. The CHART OF THE DAY shows how last year was the first since 1993 that the value of OPEC’s total crude exports didn’t track the direction of global gross domestic product. The bottom panel shows how the group supplying about 40 percent of the world’s oil fetched lower average prices and also shipped fewer barrels year on year. Production among OPEC’s 12 members fell 2.5 percent to average 31.6 million barrels a day last year, data from OPEC’s Annual Statistic Bulletin showed on July 18. Libya’s output slumped 31 percent amid political protests at oilfields and export terminals. Output from Iran , whose exports are subject to international sanctions, fell by 4.4 percent. The group’s members also consumed about 1 percent a day more domestically. “It’s […]

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Sanctions relief for Iran extended

The U.S. Treasury Department said sanctions relief on Iran, which includes oil export provisions, is extended through November. Iran under the terms of a November 2013 agreement secured relief from some of the sanctions targeting its energy sector in exchange for a pledge to cut back on its nuclear research activity. The International Atomic Energy Agency, the United Nations’ nuclear watchdog, said Iran has converted its uranium stockpiles into a form that’s difficult for use in a nuclear weapon. The Treasury Department said members of the P5-plus-1 — Britain, China, France, Russia, the United States plus Germany — agreed with Iran to continue moving forward under the terms of the November 2013 joint plan of action. "The U.S. government has extended through Nov. 24, 2014, the sanctions relief provided for in the joint plan of action," the Treasury Department said Monday. Iran is limited to exporting approximately 1 million […]

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Iraq: Death toll from Baghdad attack rises to 31

Iraqi officials say the death toll from a late night suicide attack targeting a police checkpoint in Baghdad has climbed to 31 people, most of them civilians. The bomber had rammed his explosives-packed car into a checkpoint in Baghdad’s northern neighborhood of Kazimiyah where people lined up in cars for security checks en route to a revered Shiite shrine during the Islamic holy month of Ramadan. Police officials said Wednesday that along with 31 killed, the explosion also left at least 58 people wounded. Initial reports had 21 killed. The officials spoke on condition of anonymity as they are not authorized to talk to media. Baghdad has been on edge since the Sunni militant blitz led by the Islamic State extremist group seized large swaths of northern and western Iraq.

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Libya May Offer Deeper Crude Discounts After Sale Fails

Libya is preparing a new pricing strategy for its crude exports that may include further discounts after a sales offer last week failed because potential buyers offered “unacceptable” prices, according to state-run National Oil Corp. Libya plans to offer different crude prices before the end of next month that will compensate customers for the additional risk of loading oil in the country, Ahmed Shawki, marketing director at National Oil, said by phone from Tripoli today. The country reduced July export prices for seven grades of crude by as much as $1.90 a barrel, according to a price list from National Oil obtained by Bloomberg News on July 18. “Tenders were not awarded because the price was unacceptable,” Shawki said. “They were meant to test the market as we prepare a pricing strategy.” Exports of oil from Libya were disrupted after political feuding closed oilfields and export terminals a year […]

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Angola’s Goal to Rival Nigerian Oil Output Aided by Eni

Eni SpA (ENI) crews in Angola, Africa ’s second-largest crude oil producer, upgraded a production vessel for new pumping this year as the southwest African country targets output rivaling its bigger competitor, Nigeria. Eni plans to start production within five months as operator of Block 15-06’s West Hub fields, estimated to hold reserves of 200 million barrels, and boost flows to 80,000 barrels a day, documents on the Rome-based company’s website show. The block’s East Hub development is due to pump about 49,000 barrels a day after starting in 2016, the documents say. The block, 350 kilometers (217 miles) northwest of Luanda, the capital, is one of eight offshore projects Petroleum Minister Jose Maria Botelho de Vasconcelos is counting on to help raise production to 2 million barrels a day by next year from 1.66 million last month. That compares with Nigeria’s 2.15 million barrels daily. One of the […]

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Arctic Ice Melt Seen Freeing Way for South Korean Oil Hub

Melting Arctic ice is widening a path for ships to deliver European oil to Asia, stoking South Korea’s ambition to become a regional storage and trading hub. The country, whose proximity to China, Russia and Japan makes it an ideal conduit for oil arriving via the Arctic, plans to add tanks for storing almost 60 million barrels of crude and refined products by 2020, about the same as Singapore’s current capacity. The nation also seeks to leverage its energy infrastructure, which includes five refineries, to become Northeast Asia’s oil hub, said Kim Jun Dong , the deputy minister of energy and resources policy. Global temperatures are rising, breaking up polar ice and opening the Northern Sea Route to tanker traffic for a longer period each year than from July to October. It’s forecast to be ice-free for six months by 2020, boosting South Korea’s appeal as the destination for […]

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Pump Prices in U.S. at 4-Month Low as Refineries Ramp Up

Retail gasoline in the U.S. slid to the lowest level in almost four months as refineries boosted production to cash in on cheaper domestic oil, offering relief to consumers who saw their costs rise last month. Pump prices averaged $3.593 a gallon yesterday, down 4.2 cents from the previous week and the lowest since March 31, data posted on the Energy Information Administration’s website show. Gasoline was 2.4 percent below 2013 levels. Drivers are seeing relief at the pumps as U.S. refiners process a record amount of oil, reversing an increase in June that boosted U.S. consumer prices. A production boom from U.S. shale formations and Canadian oil sands pushed some domestic crudes down last month to multiyear seasonal lows versus foreign grades. Oil futures in New York and London have retreated as output in Iraq has been unaffected so far by unrest there. “Refineries are running really smoothly […]

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Sierra Club irked by U.S. LNG export stance

U.S. policies on the export of liquefied natural gas are out of step with renewable and climate protection goals, the Sierra Club said. The Sierra Club announced it filed comments with the Department of Energy on the impacts of LNG. The advocacy group said LNG exports would lead to more domestic gas production, which may cause an increase in greenhouse gas emissions and inhibit the development of renewable energy projects. Sierra Club attorney Nathan Matthews said Monday the analysis from the Department of Energy falls short. "The increase in drilling and fracking [needed] to meet export demand will increase overall carbon pollution emissions, putting it at odds with the Administration’s goal to reduce carbon pollution emissions 17 percent by 2020," he said in a statement . His statement follows an announcement from Exxon Mobil that it filed an application to export LNG from Alaska with the Department of Energy. […]

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Test carbon capture plans start in Kentucky

The U.S. Department of Energy said construction started on a $19.5 million carbon capture research project at a coal power station in Kentucky. Kentucky Gov. Steve Beshear and state Energy Secretary Len Peters joined Department of Energy officials and other dignitaries for a ribbon-cutting ceremony for the construction of the pilot project at Kentucky Utilities’ E.W. Brown Generating Station near Harrodsburg, Ky. The facility is designed to strip carbon dioxide from the flue gas at the power station. The project, developed in part by the University of Kentucky Center for Applied Energy Research, was selected to receive the majority of its funding by the Department of Energy in a competitive process in 2011. Eli Capilouto, president of the university, said results from the pilot project could determine if it’s ready for commercial-scale use for a state dependent on coal. "Coal has been the lifeblood of Kentucky and the most […]

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Obama Administration to Announce Stricter Oil Train Safety Standards

The Obama administration will unveil Wednesday new rules proposing stricter safety standards on trains carrying flammable fuels, including oil and ethanol, according to a Capitol Hill source familiar with the pending regulation. The rules, to be announced by U.S. Transportation Secretary Anthony Foxx, will include standards for tank cars, speed limits for trains carrying flammable fuels, brake standards and required testing for oil and other volatile liquids. Railroads, oil companies and railcar owners have been expecting new federal rules meant to improve the safety of oil shipments in the wake of several fiery train accidents. The proposed regulation could impact several industries. The railroads have been worried that slower speed limits could cause major gridlock, while oil companies have fretted that new rules about tank car volumes might prevent them from shipping all the crude they wanted. Shipments of oil on trains have grown exponentially in the past few […]

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Fuel economy and average vehicle cost vary significantly across vehicle types

Vehicle price and fueling costs are important factors consumers take into account when deciding to purchase a new light-duty vehicle. While vehicle purchase is influenced by cost and fuel economy, other important factors such as environmental concerns, performance, and style also play a part. Comparison of the fuel savings and incremental vehicle cost among various vehicle fuel types sheds light on how at least some consumers may perceive the value of purchasing a given vehicle fuel type relative to another. Standard gasoline vehicles. The compliance fuel economy of midsize passenger cars using gasoline is projected to increase from about 35 miles per gallon (mpg) today to more than 53 mpg in 2025 by adding fuel efficiency technology, including micro and mild hybridization. These additions raise the average vehicle price from about $25,000 (2012$) to more than $27,000 . For a vehicle driven 12,000 miles annually, 116 gallons of fuel […]

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Keeping Oil Production From Falling

Average monthly production from Texas wells drilled in indicated period as a function of months since well completion. Source: Anderson, Kellogg, and Salant (2014).” src=”http://econbrowser.com/wp-content/uploads/2014/07/AKS1-866×1024.png”> >Average monthly production from Texas wells drilled in indicated period as a function of months since well completion. Source: Anderson, Kellogg, and Salant (2014). Makati1 on Tue, 22nd Jul 2014 7:52 am  The recovery of real petroleum has been declining for decades. Net energy produced, per capita, has also been declining for at least as long. Never any mention of that in the ‘news’ though. Too depressing and the market casino would crash and never recover. BTW: We do not “produce” oil, we recover it. Mother Nature produced it hundreds of millions of years ago. “Which force is winning the race?” – Econbrowser I do not see it as a “race” nor is there any “winning,” there is only “depletion.” Anyway, the arithmetic is […]

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Polish oil and natural gas production rising

| License Photo Oil and natural gas production in Poland increased during the second quarter of the year, state energy company PGNiG said in a Tuesday report. In an amended quarterly report , the state energy company said it produced roughly 2.2 million barrels of oil during the full second quarter of the year, a 33 percent increase year-on-year. For natural gas, the company said its second quarter production volume was nearly 40 billion cubic feet, a 3.7 percent increase over the same period last year. The European Investment Bank last month loaned Poland $132 million for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine. The EIB said the Polish gas project is "crucial" to European energy security. Poland is thought to be rich in shale natural gas reserves. In April, PGNiG […]

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As Russia’s Isolation Grows, Oil Companies Caught in Middle

The confrontation between Russia and the West took a turn for the worse with the downing of a Malaysian airliner on July 17, and that could spell trouble for several major oil companies operating in Russia. Just one day earlier, U.S. President Barack Obama slapped sanctions on Russia over its ongoing role in the destabilization of Ukraine. The sanctions prohibited American banks from issuing loans with a maturity of over 90 days to four key Russian companies – Rosneft, Novatek, Gazprombank, and VEB. “Because Russia has failed to meet the basic standards of international conduct, we are acting today to open Russia’s financial services and energy sectors to sanctions,” U.S. Treasury Official David S. Cohen said in a press release describing the agency’s actions . The sanctions tightened the economic noose on the Russian economy by targeting companies in Russia’s energy sector. Up until now, western sanctions largely targeted […]

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WTI Rises for Second Day Before Stockpiles Data; Brent Gains

West Texas Intermediate rose for a second day before stockpile data that will signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent gained in London. Futures climbed as much as 0.6 percent in New York. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before tomorrow’s Energy Information Administration report. The United Nations Security Council voted unanimously to approve a resolution calling for an international probe into the downing of a Malaysian Air passenger jet in Ukraine. U.S. Secretary of State John Kerry is holding talks in Cairo to end fighting in the Gaza Strip. “Inventories are something that can influence prices as in the past weeks there were large draws which were bullish,” Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, said by phone today. “The biggest issue supporting prices are the crises […]

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Oil gains further on concerns over Ukraine, Gaza

The price of oil rose above $103 a barrel Tuesday on persisting jitters over the situation in Gaza and the standoff over the shooting down of a Malaysian airliner in Ukraine. U.S. benchmark crude for September delivery was up 21 cents to $103.06 a barrel at 0615 GMT in electronic trading on the New York Mercantile Exchange. The contract rose 91 cents to $102.86 on Monday. The August contract, which expires Tuesday, was up 41 cents at $105.00 a barrel. Brent crude for September delivery, a benchmark for international oils, gained 3 cents to $107.71 on the ICE exchange in London. Israel bombed five mosques, a sports stadium and the home of the late Hamas military chief across the Gaza Strip early on Tuesday, as U.N. chief Ban Ki-moon and U.S. Secretary of State John Kerry met in Cairo to launch the highest-level push yet to end two weeks […]

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Natural-Gas Prices Fall to Near Eight-Month Low on Cool Weather

Natural-gas prices on Monday slid to a nearly eight-month low as another sweep of unseasonably cool weather across the U.S. is expected to keep a lid on demand. Gas prices have slid 24% since mid-June as cooler-than-normal temperatures have reined in the use of power-thirsty air conditioning. In the hotter months of summer, rising electricity consumption has spurred power plants’ natural-gas demand. This year, the lack of that additional demand has resulted in a rapid buildup of natural-gas supplies, which has weighed on prices. Natural gas for August delivery, the front-month futures contract, dropped 10.2 cents, or 2.6%, to $3.849 a million British thermal units on the New York Mercantile Exchange. Monday’s close was the lowest since Nov. 26. The cooler-than-normal temperatures have extended into the latter half of July and are poised to continue into the beginning of August, a period that is usually the […]

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Natural gas falls to an 8-month low

Natural gas was falling to its lowest level in eight months following forecasts that nationwide summer temperatures are expected to be milder than normal. The price of natural gas fell 10 cents, or 2.6 percent, to $3.85 per 1,000 cubic feet on Monday. That’s the lowest since mid-November. Weather analysts expect U.S. temperatures to be lower than normal for the next two to three weeks, which is typically when U.S. temperatures are at their hottest. In the summer natural gas is used for to generate electricity, particularly when demand is high and other sources are at full capacity. Crude oil rose $1.46, or 1.5 percent, to $104.59 a barrel and wholesale gasoline rose three cents, or 1 percent, to $2.89 a gallon. Gold and silver rose. Crop prices fell.

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Kurdish Oil Gambit Hits Troubled Waters

ERBIL, Iraq—Shortly before midnight, an oil tanker set sail from Turkey’s Ceyhan port one day in late May with a historic, $100 million cargo. The tanker, United Leadership, ferried the first major consignment of Kurdish crude into the Mediterranean that night, a million-barrel payload with the potential to shift oil markets and transform the geopolitics of the Middle East. The oil, pumped to Turkey through a newly built pipeline, is part of a gambit by northern Iraq’s Kurdistan Regional Government, or KRG, to carve out a nation for Iraq’s 6.5 million Kurds, even as Iraq defends its north against the Jihadist Sunni militant group, the Islamic State. Iraq, with U.S. backing, is treating the oil as stolen goods and an attack on its sovereignty. Iraqi authorities have accused the Kurds of treason, and threaten to sue any buyer of crude taken from Iraq without permission. After zigzagging the Mediterranean […]

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Five Kuwait politicians' citizenship revoked

Kuwait has stripped five well-known opposition figures of their citizenship, including the owner of a newspaper and television station. The official Kuwait News Agency announced the decision by Kuwait’s cabinet on Monday, which approved a draft decree to revoke the citizenship of the five. Among those named in the decision is Abdullah al-Barghash, a former Islamist opposition legislator, and three other members of his family. The government also revoked the nationality of Ahmad al-Shemmeri, owner of the independent Al-Youm television station and Alam Al-Yawm newspaper. His newspaper was ordered temporarily shut down twice this year by a court for defying a prosecutor-ordered media blackout about an investigation into a coup plot to overthrow the Gulf monarchy’s government. The state news agency account did not give a reason for the cabinet’s decision.

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Five Kuwait politicians’ citizenship revoked

Kuwait has stripped five well-known opposition figures of their citizenship, including the owner of a newspaper and television station. The official Kuwait News Agency announced the decision by Kuwait’s cabinet on Monday, which approved a draft decree to revoke the citizenship of the five. Among those named in the decision is Abdullah al-Barghash, a former Islamist opposition legislator, and three other members of his family. The government also revoked the nationality of Ahmad al-Shemmeri, owner of the independent Al-Youm television station and Alam Al-Yawm newspaper. His newspaper was ordered temporarily shut down twice this year by a court for defying a prosecutor-ordered media blackout about an investigation into a coup plot to overthrow the Gulf monarchy’s government. The state news agency account did not give a reason for the cabinet’s decision.

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Seven killed in clashes between army and militants in Libya's Benghazi

Islamist militants attacked an army base in the eastern Libyan city of Benghazi on Monday, triggering fierce clashes involving helicopters and jets that killed at least seven people and wounded 40 others after days of escalating violence. Benghazi’s clashes followed a week of fighting between rival militias for control of Tripoli International Airport in the capital that has prompted the North Africa country to appeal for international help to stop Libya becoming a failed state. Tripoli was calmer on Monday, but in Benghazi, militants linked to Islamist group Ansar al-Sharia attacked an army camp and were repelled by troops and forces loyal to renegade retired general Khalifa Haftar, who has been carrying out a self-declared war on Islamist fighters, security sources said. "Ansar al-Sharia tried to take over one special forces camp, but the special forces and Hafter’s forces fought back, using helicopters and military […]

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Seven killed in clashes between army and militants in Libya’s Benghazi

Islamist militants attacked an army base in the eastern Libyan city of Benghazi on Monday, triggering fierce clashes involving helicopters and jets that killed at least seven people and wounded 40 others after days of escalating violence. Benghazi’s clashes followed a week of fighting between rival militias for control of Tripoli International Airport in the capital that has prompted the North Africa country to appeal for international help to stop Libya becoming a failed state. Tripoli was calmer on Monday, but in Benghazi, militants linked to Islamist group Ansar al-Sharia attacked an army camp and were repelled by troops and forces loyal to renegade retired general Khalifa Haftar, who has been carrying out a self-declared war on Islamist fighters, security sources said. "Ansar al-Sharia tried to take over one special forces camp, but the special forces and Hafter’s forces fought back, using helicopters and military […]

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Lebanon Set to Delay Oil and Gas License Auction Until 2015

Lebanon is likely to delay again the first auction of oil and natural gas licenses in its coastal waters until 2015 because of political gridlock over decrees needed to start the bidding process, people familiar with the matter said. The nation, which claims it may have as much as 96 trillion cubic feet of natural gas and 850 million barrels of oil off its coast, repeatedly has delayed the bidding round for the licenses after a cabinet failed to approve two necessary decrees. "The situation is quite complicated. The ministerial committee that was formed to review the decrees has not done much since some members are not happy about the royalties and taxes mentioned in the drafts," one official familiar with the matter said. "Now no one wants to move forward with any action until the parliament elects a new president and we have a new government, which could […]

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Libya publishes parliamentary election results

Libya’s electoral committee on Monday announced results of an earlier parliamentary election, but many fear it might fuel the ongoing clashes between pro-secular militia and armed Islamist groups. The polls, held on June 25, elected the new parliament House of Representatives to replace the previous General National Congress. All 1,714 contestants were registered as independent candidates, as party lists are not allowed under current electoral law. Of the total 200 seats in the new parliament, 188 were set, while the remaining 12 seats were absent due to boycott or insecurity in some electoral districts, according to Libya’s High National Electoral Commission. Analysts said the secular factions have seemingly taken most of the seats, while the Islamist lawmakers, who had a bigger say in the old parliament, only won around 30 seats this time. Some feared that the results might intensify the current armed clashes between […]

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Toll Climbs in Fight for Syrian Gas Field

More than 100 people were killed in two days in a continuing fight between government forces and militants for control of a gas-production facility east of Homs, according to opposition activists and media outlets aligned with the regime. Among the casualties as of Sunday evening were at least 65 members of the regime’s forces, according to Syrian opposition activists, while the rest were fighters from the extremist group Islamic State. The fighting erupted after gunmen from Islamic State mounted an attack late Wednesday on the Al-Shaer gas field and production facility, located in the desert about 150 miles northeast of the capital Damascus. Over 270 guards, workers and members of a pro-regime paramilitary group known as the National Defense Force were killed in the initial attack and subsequent executions carried out by Islamic State militants, according to the U.K.-based Syrian Observatory for Human Rights, an […]

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Israelis barely break stride under missile shield

Civilians take cover in an air raid shelter in Sderot, south Israel, as several rockets are fired from the Gaza Strip Several large booms rang out over Ashkelon, southern Israel, on Monday afternoon as Israel fired interceptor missiles from its Iron Dome defence system to destroy incoming rockets fired by militants in the Gaza Strip, 7km away. The sound has become common across Israel since it began its war in Gaza two weeks ago; people shopping near a crowded town centre shopping mall did not break their stride. More On this story On this topic IN Arab-Israel conflict As of Monday, Hamas and other Gaza-based militants had shot 154 rockets into Ashkelon, a seaside city of 137,000, since Israel’s Operation Protective Edge began. Of these, 85 were intercepted and blown to pieces mid-air by Iron Dome; one of the few that landed in a populated area where residents were […]

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Palestinian death toll rises in Gaza fighting; Israel thwarts infiltration attempts

GAZA CITY — The Palestinian death toll rose to more than 500 on Monday as Israel announced that it had prevented two more attempts by Hamas militants to infiltrate the nation via tunnels from the Gaza Strip. As international concern mounted over the growing casualties on both sides in the conflict, now in its 14th day, yet another diplomatic push was underway to bring about a cease-fire. U.S. Secretary of State John F. Kerry and U.N. Secretary General Ban Ki-moon were both expected in Cairo later Monday in hopes of finding a diplomatic resolution that has so far proved elusive. Israeli airstrikes continued to bombard Gaza on Monday — more than 50 Hamas targets were attacked, including two weapons manufacturing sites, six underground rocket launchers and five tunnels, Israel’s military said. Over the past few hours, Israel reported intense rocket fire across its southern communities, reaching up to Tel […]

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Fracking Opponents Renew Call for South African Shale-Gas Halt

A South African environmental group renewed its call for a moratorium on shale-gas fracking, as the government moves closer to a decision on whether to allow the process opponents say imperils water quality. The Treasure Karoo Action Group, named after the semi-desert area of South Africa that has attracted petroleum exploration companies, started in Johannesburg today the latest phase of a campaign to block the drilling technique. An April 2011 moratorium placed on shale-gas exploration in South Africa ended in September 2012. The government on Oct. 16 published proposed regulations for hydraulic fracturing as it seeks to tap as much as 390 trillion cubic feet of resources in the Karoo. Opponents of fracking, which blasts water, chemicals and sand into rock to release natural gas, say it risks contaminating ground water. Royal Dutch Shell Plc (RDSA) is among explorers to have applied for permits to explore the Karoo. South […]

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Production Dries Up Amid Currency Woes and a Scramble for Parts

This car-crazed country’s auto industry, once the third largest in South America, is seizing up as manufacturers struggle to produce a few vehicles a day. Car makers, including global giants like Ford Motor Co. , Fiat Chrysler Automobiles NV, General Motors Co. and Toyota Motor Corp. , have cut output by more than 80% in the first six months of the year compared with a year earlier because of a lack of dollars to pay parts suppliers, according to data compiled by the Automotive Chamber of Venezuela, which represents car makers. "This is the first time I have ever seen things this bad," said 61-year-old Antonio Lopez, a Ford worker who recently prepared a sedan for painting at the auto maker’s factory […]

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Pakistan working with China on gas needs

Pakistan’s government said Monday it was getting China’s help with the construction of a liquefied natural gas terminal and associated pipeline infrastructure. The Ministry of Petroleum and Natural Resources said it consented to the construction of an LNG terminal for the port city of Gwadar near the Iranian border. An associated pipeline would be built through a government-to-government arrangement. "We are running from pillar to post to get this mega LNG terminal-cum-pipeline included in the list of early harvest projects agreed with China," Pakistani Natural Resources Minister Shahid Khagan Abbasi told The News , a Pakistani newspaper. "It will take three to four years to get commissioned." The minister said the pipeline would cost an estimated $1 billion and more than $2 billion would be needed for the LNG terminal. The Pakistani government has said aging infrastructure in the country is leaving it short on energy supplies. Sanctions on […]

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Sinopec First-Half Production Increases 8% on Overseas Output

China Petroleum & Chemical Corp. (386) , Asia ’s biggest refiner, reported an 8 percent gain in first-half oil and gas production as overseas output doubled. Output rose to 237 million barrels in the six months ended June 30, the Beijing-based company known as Sinopec said in a statement yesterday after the close of trade. Production rose faster than the 3.8 percent increase a year earlier. Overseas crude oil production increased to 23.7 million barrels in the first-half, Sinopec said. Output rose after the refiner bought foreign assets from its state-owned parent last year, according to Laban Yu, a Hong Kong-based analyst at Jefferies Group LLC. “The increase came totally from the acquisition of the parent’s assets last year,” Yu said by phone. “Its organic growth was flat in the first-half, although the near 10 percent increase in natural gas could be considered positive, compared with the around 7 […]

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California Halts Injection of Fracking Waste

California officials have ordered an emergency shut-down of 11 oil and gas waste injection sites and a review more than 100 others in the state’s drought-wracked Central Valley out of fear that companies may have been pumping fracking fluids and other toxic waste into drinking water aquifers there. The state’s Division of Oil and Gas and Geothermal Resources on July 7 issued cease and desist orders to seven energy companies warning that they may be injecting their waste into aquifers that could be a source of drinking water, and stating that their waste disposal "poses danger to life, health, property, and natural resources." The orders were first reported by the Bakersfield Californian, and the state has confirmed with ProPublica that its investigation is expanding to look at additional wells. The action comes as California’s agriculture industry copes with a drought crisis that has emptied reservoirs and cost the state […]

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Corralling Carbon Before It Belches From Stack

So much soot belched from the old power plant here that Mike Zeleny would personally warn the neighbors. “If the wind was blowing in a certain direction,” Mr. Zeleny said, “we’d call Mrs. Robinson down the street and tell her not to put out her laundry.” That coal plant is long gone, replaced by a much larger and cleaner one along the vast Saskatchewan prairie. Sooty shirts and socks are a thing of the past. But as with even the most modern coal plants, its smokestacks still emit enormous amounts of carbon dioxide, the invisible heat-trapping gas that is the main contributor to global warming. So this fall, a gleaming new maze of pipes and tanks — topped with what looks like the Tin Man’s hat — will suck up 90 percent of the carbon dioxide from one of the boilers so it can be shipped […]

Posted On : Published By : Tom Whipple
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Temporary Closing of Indian Point Power Plant Is Considered

Business groups and the operator of the Indian Point Energy Center have aligned against a proposal by New York state to close the nuclear power plant in spring and summer months to protect fish in the Hudson River, an idea drawing tentative support from some environmental advocates. Indian Point produces about 25% of the electricity consumed in New York City and the lower Hudson Valley. The state Department of Environmental Conservation, which is proposing the shutdown, hasn’t specified how the loss of power produced by Indian Point would be made up, though it said it would do what it could to prevent service disruptions. The DEC is advocating the shutdown as an alternative to proposed engineering changes to the facility that have largely been rejected by Entergy Corp. , the plant’s operator. Millions of fish and larvae are killed as Indian Point sucks in 2.5 billion gallons of Hudson […]

Posted On : Published By : Tom Whipple
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North Dakota’s Oil Bonanza Is Unsustainable

A decade ago, North Dakota was a wind-swept also-ran in the oil industry. Wildcatters struck oil there in the 1950s, but the rock was too dense to get most of it out, and the fields never amounted to much. The state produced about 30 million barrels of oil in 2004, enough to satisfy U.S. demand for about a day and a half. Then everything changed. In the mid-2000s, companies in Texas had figured out how to extract natural gas from dense shale rock near Fort Worth. A few enterprising oil men figured the same approach might work in North Dakota’s oil fields, and after a few false starts, they proved correct. Between 2004 and 2008, North Dakota’s oil production doubled. Then it doubled again. And again. This month, the Energy Information Administration said North Dakota produced 30 million barrels of oil in April — as much as it had […]

Posted On : Published By : Tom Whipple
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Few limits offshore, Shell says

Oil companies have yet to reach the point that technology is limiting access to offshore reserves, a Shell official in charge of deep American waters said. Shell announced a discovery in the Rydberg area of the Norphlet play in the deep waters of the Gulf of Mexico last week. The company said it’s still assessing the data from the exploratory well in the area but expects it to hold about 100 million barrels of oil equivalent. John Hollowell, Shell’s vice president in charge of deep waters in the Americas, told The Daily Telegraph in London there were few limitations to how deep or how far offshore oil companies can drill. "How far you can go is really technology based," he said in an interview published Sunday. "When we can’t overcome the technical barriers, that will be the end, but we have yet to reach that stage." […]

Posted On : Published By : Tom Whipple
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Delta sources Bakken crude for Pa. refinery

A subsidiary of said Monday it signed a five-year deal to send 65,000 barrels of Bakken crude oil per day to its refinery in Trainer, Pa. Delta subsidiary Monroe Energy signed the deal with midstream energy company Bridger LLC to supply about 30 percent of the crude oil refined daily at the Trainer facility. The crude oil would be sourced primarily from the Bakken reserve area in North Dakota, which the company says is cheaper than oil imported from overseas markets. "Supplying a third of the crude refined at Trainer from the Bakken further reduces the overall cost of fuel for Delta," Graeme Burnett, a senior vice president for fuel optimization for Delta and chairman of Monroe, said in a statement . Bridger is a midstream company that recently invested $200 million on railcars, which are said to exceed current safety standards for crude oil transportation. There’s not enough […]

Posted On : Published By : Tom Whipple
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Russia’s Message on Jet: Conciliation and Bluster

Russia presented a combination of conciliation and bluster on Monday over its handling of the downed Malaysia Airlines jet, with President Vladimir V. Putin seemingly probing for a way out of the crisis without appearing to compromise with the West. On one hand, he offered conciliatory words in a video statement , oddly released in the middle of the night, while the separatists allied with Moscow in southeastern Ukraine released the bodies of the victims and turned over the black box flight recorders from the doomed aircraft to Malaysian officials. However, two senior military officers forcefully demanded that the United States show publicly any proof that rebels fired the fatal missile, and again suggested that the Ukrainian military shot down the Malaysia Airlines jet despite the fact that Ukraine has not used antiaircraft weapons in the fight along its eastern border. Mr. Putin seemed to respond to […]

Posted On : Published By : Tom Whipple
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Peak Oil: Abundance? Not Really

It’s certainly understandable and indeed common practice in probably every sales conversation in every profession known to man that putting the best spin on the story told is a given. Most buyers/consumers would be surprised at the very least if a presenter offered up her or his best but then immediately discounted that version with other information contradicting it all and discouraging the consumers from even considering what’s being offered. We all understand there’s a game to be played. While that may be standard practice and simply part of the bargain to eventually be struck in the great majority of consumer transactions where the parties tend to be on equal footing, energy supply conversations don’t fall into that category when the discussion is between everyday consumers and industry officials or their representatives. Matters of such scope tend to be outside the range of interest for all but a few, […]

Posted On : Published By : ASPO-USA
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Tech Talk – and things continue to get worse

It is difficult to see any positive interpretation of the changes and conflicts that are increasingly filling the headlines of the press. Fluctuating optimism over the return to credible export production from Libya, to take but one example, is no sooner reported when the news comes of increased fighting in Tripoli , including the international airport. At the same time violence is spreading towards Egypt . Without a strong central government it is likely that the conflicts in that country will continue into the foreseeable future, with continued negative impacts on the export of oil from the country. Transient attempts to maintain a cease-fire and stabilize South Sudan have apparently failed again . The fighting has shut down local oil production, while overall production from South Sudan has been cut to 165 kbd. Capital continues to leave Russia (h/t Nick) and that flight is only likely to accelerate as […]

Posted On : Published By : Tom Whipple
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Oil prices ease but remain elevated

Oil prices fell further Monday as concern about Ukraine eased but still were elevated on anxiety about the Middle East. Prices rose last week on fears stemming from the escalating crisis in Ukraine and Israel’s offensive in Gaza, though analysts said the likelihood of disruption in supplies was small. Benchmark U.S. crude for August delivery was down 32 cents to $102.81 per barrel at 0730 GMT in electronic trading on the New York Mercantile Exchange. That added to a 6 cent decline on Friday to $103.13. Brent crude for September delivery, a benchmark for international oils, gave up 30 cents to $106.94 on the ICE exchange in London. Washington announced new sanctions last Wednesday on Russia, including its biggest oil company, over Moscow’s support for separatist forces in Ukraine. On Thursday, a Malaysia Airlines jetliner was shot down in Ukraine, raising concern a possible Western response might disrupt Russian […]

Posted On : Published By : Tom Whipple
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Iran Seen Keeping Oil Sales Steady as Nuclear Talks Extended

Iran ’s oil exports will remain near the highest level in two years as talks with six global powers over the Persian Gulf state’s nuclear program are extended for four more months, according to six analysts in a survey. Sales of crude and condensates by Iran to six main buyers averaged 1.27 million barrels a day in the first six months of the year, according to data compiled by Bloomberg from customs statistics and International Energy Agency estimates. Shipments will stay near that level in the second half, according to the analysts Bloomberg surveyed on July 16 and 17. “Iran’s going to want oil exports to keep edging up, and the U.S. has been willing to allow some wiggle room,” Robin Mills, an analyst at Manaar Energy Consulting & Project Management, said by phone from Dubai yesterday. “The extension is a sign they’ve made progress on nuclear talks and […]

Posted On : Published By : Tom Whipple
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Overnight attacks in Iraq kill at least 16 people

Attacks overnight in two Iraqi cities killed at least 16 people, officials said Monday as authorities struggle to stop the Sunni militants’ offensive that has left huge areas in northern and western Iraq outside of government control. In one of the attacks, mortar rounds rained down on Shiite neighborhoods in the town of Mahmoudiya on Sunday night, killing 11 civilians and wounding 31, a police official said. The mixed Shiite-Sunni town is about 30 kilometers (20 miles) south of Baghdad. And in Baghdad’s western suburb of Abu Ghraib, a roadside bomb struck an army patrol, killing two soldiers and three volunteers who took up arms following the Sunni militant push across Iraq in recent weeks. Eighth people were wounded in that attack, said the police official. Two medical officials confirmed the casualty figures. All officials spoke on condition of anonymity as they were not authorized to […]

Posted On : Published By : Tom Whipple
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Besieged Iraqi oil sector buoyed by southern expansion

Iraq is on track for a strong month of oil sales, as southern fields increase output into revamped export infrastructure.The success of the southern oil sector to date has been essential, partly compensating for the loss of nearly all Iraqi production and refining capacity north of Baghdad, following a massive insurgent offensive led by the Islamic State of Iraq and al-Sham (ISIS). Making good on growth plans will be equally as important."Currently our output is estimated at 3.15 million… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple