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Iraq worried by terrorist ties to oil

The Sunni-led Islamic State has taken control over parts of northwestern Iraq. Last week, the U.N. Security Council passed a resolution condemning the use of oil as a source of finance for a group known also as the Islamic State in Iraq and the Levant. The Iraqi Ministry of Oil said Wednesday it was calling on U.N. member states to take action to prevent the export of smuggled crude oil into territories they control. "The Ministry of Oil is troubled by reports that crude oil from fields currently under the control of ISIL is being smuggled to export markets , generating revenues for this terrorist organization," it said in a statement. The ministry said the only entity authorized to sell crude oil on the international market was the State Organization for Marketing of Oil. "International purchasers and other market participants should be aware that any oil exports made without […]

Posted On : Published By : Tom Whipple
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Iran Speaks More Softly But Keeps Building Bigger Sticks

While Iran ’s military has toned down its rhetoric about military capabilities and exercises, it continues a low-profile buildup of weapons in and near the Strait of Hormuz, according to a classified Pentagon assessment. “Iran’s military strategy is defensive” and designed to “deter an attack, survive an initial strike, retaliate against an aggressor and force a diplomatic solution” while avoiding major concessions, says the unclassified executive summary of a congressionally mandated Pentagon report submitted to lawmakers on July 7. Since the August 2013 election of President Hassan Rouhani, the Iranian government “has adjusted some of its tactics” to achieve core objectives such as preserving the rule of Supreme Leader Ayatollah Ali Khamenei , according to the summary, which was obtained by Bloomberg News . “Of note, Tehran’s strategic messaging about its military capabilities through the mass media has been less strident since Rouhani took over,” it said. “Widespread publicity […]

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Israel Nears Gas Sales to Egypt as Mideast Unrest Flares

In the midst of some of the worst Middle East tensions in a decade, one-time enemies Egypt and Israel are negotiating deals that may mean the sale of $60 billion in Israeli natural gas to liquefaction plants in Egypt. The talks come as Israel resumes air strikes on Gaza after Hamas, which the U.S. and the European Union classify as a terrorist group, fired rockets following a breakdown in Egypt’s efforts to broker a cease-fire. The move is all the more improbable because Egypt — little more than a year ago — was under the sway of the Muslim Brotherhood, which had begun to steer the country away from viewing Israel as a trading partner. Noble Energy Inc. (NBL) and units of Israel’s Delek Group Ltd. (DLEKG) plan to deliver as much as 6.25 trillion cubic feet of gas from the Tamar and Leviathan offshore fields to LNG facilities […]

Posted On : Published By : Tom Whipple
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In the dark: Egypt's electricity deficit worsens as shortages hit five hours a day

The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. More > , The electricity deficit reached approximately 6,180MW on Monday, resulting in power outages for periods exceeding five hours daily, said an official at the Ministry of Electricity. A 1900MW portion of the deficit resulted from a shortage of 8m cubic metres of gas and equivalent while another 2500MW was attributed to poor technical conditions at power stations, partially a result of failure to carry out the necessary maintenance and repair operations. The deficit increased by approximately 1700MW as a result of a rise in the sulphur content of fuel oil supplied to the plants. This led to clogs in fuel oil […]

Posted On : Published By : Tom Whipple
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In the dark: Egypt’s electricity deficit worsens as shortages hit five hours a day

The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. More > , The electricity deficit reached approximately 6,180MW on Monday, resulting in power outages for periods exceeding five hours daily, said an official at the Ministry of Electricity. A 1900MW portion of the deficit resulted from a shortage of 8m cubic metres of gas and equivalent while another 2500MW was attributed to poor technical conditions at power stations, partially a result of failure to carry out the necessary maintenance and repair operations. The deficit increased by approximately 1700MW as a result of a rise in the sulphur content of fuel oil supplied to the plants. This led to clogs in fuel oil […]

Posted On : Published By : Tom Whipple
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Libya's Largest Terminal Resumes Oil Exports

A view of the anchorage at the Es Sider export terminal in Ras Lanuf, west of Benghazi in March, 2014. Reuters LONDON—Libya said Wednesday it was resuming oil exports from its largest terminal after a year-long stoppage, as its oil industry manages to recover despite intense fighting in large cities. But new uncertainty emerged later in the day as Libya’s de facto oil minister said he was being replaced. Italian tanker Maria Bottiglieri, which arrived overnight, is set to leave later Wednesday from the Es Sider terminal with about 600,000 barrels on board, Mohamed el-Harari, a spokesman for the state-owned National Oil Co. told The Wall Street Journal. Mr. el-Harari said the vessel was chartered by Austria’s OMG AG and is bound for the Italian port of Trieste, confirming information from shipping and oil managers. The terminal, which has an export capacity of 350,000 barrels a day, hasn’t shipped […]

Posted On : Published By : Tom Whipple
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Libya’s Largest Terminal Resumes Oil Exports

A view of the anchorage at the Es Sider export terminal in Ras Lanuf, west of Benghazi in March, 2014. Reuters LONDON—Libya said Wednesday it was resuming oil exports from its largest terminal after a year-long stoppage, as its oil industry manages to recover despite intense fighting in large cities. But new uncertainty emerged later in the day as Libya’s de facto oil minister said he was being replaced. Italian tanker Maria Bottiglieri, which arrived overnight, is set to leave later Wednesday from the Es Sider terminal with about 600,000 barrels on board, Mohamed el-Harari, a spokesman for the state-owned National Oil Co. told The Wall Street Journal. Mr. el-Harari said the vessel was chartered by Austria’s OMG AG and is bound for the Italian port of Trieste, confirming information from shipping and oil managers. The terminal, which has an export capacity of 350,000 barrels a day, hasn’t shipped […]

Posted On : Published By : Tom Whipple
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Feds pressed on offshore drilling

A coalition of oil and gas groups led by the American Petroleum Institute and the U.S. Oil & Gas Association called on the Interior Department’s Bureau of Ocean Energy Management to open all U.S. territorial waters to drillers under a five-year energy plan ending in 2022. "We believe that BOEM should fully consider all areas for inclusion in the program and keep as many areas as feasible in the draft proposed program," the coalition said in a letter filed with the Interior Department. The group said offshore incident response has improved dramatically in the wake of the BP spill in 2010 from the Deepwater Horizon rig leased from Transocean. That incident was the worst of its kind and took nearly three months to contain. API in July outlined recommended practices for the installation of so-called capping stacks, a mechanism developed in the wake of the 2010 oil spill in […]

Posted On : Published By : Tom Whipple
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Angolan oil flow seen above 2 million b/d

HOUSTON, Aug. 20 08/20/2014 Angola will produce 2.1-2.2 million b/d of crude oil by 2016, predicts Moody’s Investors Service. In a credit analysis of the Angolan government, Moody’s cited deepwater projects due on stream soon in the Lower Congo basin and the government’s plans to offer deep and ultradeepwater blocks to international operators next year in the southern Kwanza basin and unexplored Namibe basin. The Kwanza basin, Moody’s points out, has presalt geology similar to that of Brazil’s Campos and Santos basins ( OGJ Online, Dec. 11, 2011 ). Important to the imminent production gain is Total SA’s Kaombo project in 1,400-1,900 m of water in the Lower Congo basin. Total and its partners decided to proceed with the $16-billion development in April ( OGJ Online, Apr. 14, 2014 ). That decision, Moody’s said, boosts Angola’s production prospects. “First, it signals investors’ positive assessment of Angola’s long-term offshore prospects, […]

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China manufacturing drags on Asia, but Europe up

SEOUL, South Korea (AP) — Asian stock markets were dampened by a weak China manufacturing survey Thursday, but European stocks opened higher. Japan gained on the prospect of a stronger dollar after Fed minutes showed policymakers are leaning toward their first rate hike since the 2008 financial crisis. KEEPING SCORE: Britain’s FTSE 100 added 0.2 percent to 6,771.49 and Germany’s DAX gained 0.4 percent to 9,354.87. France’s CAC 40 was up 0.4 percent to 4,259.54. Futures augured more gains on Wall Street. S&P 500 futures rose 0.1 percent and Dow Jones futures added 0.2 percent. CHINA CHILL: Growth in China’s vast manufacturing industry weakened in August, suggesting that the recovery in the world No. 2 economy is losing momentum and Beijing may need to spoon out more stimulus. The preliminary version of HSBC’s manufacturing index fell to a three-month low of 50.3 from 51.7 in July, indicating that manufacturing […]

Posted On : Published By : Tom Whipple