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Natural-Gas Rally Gets a Boost from Warming Weather Forecasts

By Timothy Puko NEW YORK–Natural-gas prices are resuming their week-long rally Monday as weather updates warmed over the weekend, signaling the potential for an uptick in demand. Natural gas for September delivery is up 8.4 cents, or 2.2%, at $3.924 a million British thermal units on the New York Mercantile Exchange. Trading for the October contract has now surpassed trading for the September contract. September options expire Tuesday and the contract expires Wednesday. The October contract rose 8.1 cents, or 2.1%, to $3.964/mmBtu. The front-month contract has gained 5.3% in a week since intraday trading on Aug. 18 dipped to nearly a nine-month low. That rally has brought gas back to the middle of a 30-cent range it has traded within for more than a month. Monday’s lift was primarily from the weather, analysts said. Weather Services International in Andover, Mass., issued a heat alert for a swath of […]

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Syria Declares Its Readiness in Backing Efforts to Fight Jihadists

BAGHDAD — Syria’s foreign minister said Monday that his government was ready to cooperate with international efforts to fight the extremists of the Islamic State in Iraq and Syria. But in a nod to the possibility of expanded American airstrikes, he warned that any action inside Syria without the government’s approval would be considered “aggression.” The offer by the minister, Walid al-Moallem, appeared to be a preliminary effort to rehabilitate the international standing of his government, which has been condemned by the United States and others for its brutal tactics in the country’s civil war and against the popular uprising that preceded it. In comments to reporters in Damascus, Mr. Moallem seemed well aware of how greatly the rise of ISIS in both Syria and Iraq had changed Western views toward the region. He presented his government as the natural partner in the fight against jihadist groups. “Syria is […]

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Obama Approves Air Surveillance of ISIS in Syria

WASHINGTON — President Obama has authorized surveillance flights over Syria, a precursor to potential airstrikes there, but a mounting concern for the White House is how to target the Sunni extremists without helping President Bashar al-Assad. Defense officials said Monday evening that the Pentagon was sending in manned and unmanned reconnaissance flights over Syria, using a combination of aircraft, including drones and possibly U2 spy planes. Mr. Obama approved the flights over the weekend, a senior administration official said. The flights are a significant step toward direct American military action in Syria, an intervention that could alter the battlefield in the nation’s three-year civil war. Administration officials said the United States did not intend to notify the Assad government of the planned flights. Mr. Obama, who has repeatedly called for the ouster of Mr. Assad, is loath to be seen as aiding the Syrian government, even inadvertently. As a […]

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Insurgency Deepens Iraqi Ethnic, Sectarian Divides

Displaced people from the minority Yazidi sect, who fled from the violence in the Iraqi town of Gwer, wait to return at a check point.. Reuters GWAIR, Iraq—Sunni families in northern Iraq are being prevented from returning to their homes, suspected by their neighbors and Kurdish authorities who control the area of collaborating with the extremist group Islamic State. The offensive by the Sunni militants is threatening to reshape the demographics of once-mixed communities by dividing territory along ethnic and religious lines, Iraqi and Kurdish officials say. Kurds, Christians and other minorities were driven from their homes by the insurgents’ rapid advance. But even after Kurdish forces, aided by U.S. airstrikes, wrested back control of some of the towns, many are refusing to move back if their Sunni Arab neighbors are also allowed to return. Kurdish security forces have been screening Sunni Arabs for ties to Islamic State fighters […]

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Kurds Get Seizure Order Thrown Out for Texas Oil Tanker

The Kurdistan Regional Government can bring $100 million of crude ashore in Texas after a U.S. judge threw out a court order that would have required federal agents to seize and hold the cargo for the Iraqi Oil Ministry until a court there decided which government owns it. U.S. District Judge Gray Miller in Houston said he lacked authority under federal laws governing property stolen at sea to decide the dispute. Both Iraq’s central government and the regional government claim control of 1 million barrels of Kurdish crude waiting in a tanker moored in international waters off the Texas coast for almost a month. Miller ruled yesterday that Iraq’s national oil ministry lost control of the crude when the Kurdish government pumped it without authorization from oilfields in the northern part of the country. Iraq failed to convince Miller that the oil was misappropriated when it was loaded into […]

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EU Foreign Policy Chief Ashton to Meet Iranian Counterpart Zarif Next Month

BRUSSELS–The European Union and Iran will meet next Monday in Brussels to pave the way for a fresh round of international negotiations on Tehran’s disputed nuclear program, the European Commission said Monday. EU foreign policy chief Catherine Ashton will meet Iranian Foreign Minister Mohammad Javad Zarif in Brussels. Baroness Ashton is leading negotiations on behalf of six major powers to reach a comprehensive agreement with Tehran to address international concerns over its nuclear work. International negotiators had hoped to reach a landmark deal by July, but they agreed during talks in Vienna last month to extend the deadline to Nov. 24 . A new, full round of negotiations will take place in New York in the run-up to the opening of the United Nations General Assembly on Sept. 16. "This is an important meeting in the context of getting ready for that next big round of talks," said a […]

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Will Islamic State’s Rise Turn U.S. Public Opinion?

People gathered outside of the White House in June to protest against renewed U.S. involvement in Iraq. Associated Press Here in the nation’s capital, the question of the moment is whether the rise of the Islamic State extremist group has changed President Barack Obama ‘s reluctance to re-engage in Iraq militarily, or to really intervene for the first time in Syria—and that certainly is an important question. But equally important and far less discussed is this: Has the specter of a new, different and frightening kind of Islamic extremism changed the American public’s deep reluctance to engage anew in the Middle East? Privately, some administration officials think it probably will. But it is hard to tell that yet from either public polling data, which is sparse in August, or the sketchy discourse in the midterm elections, which tends to reflect the national conversation as much as shape it. What […]

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Iraqi oil exports increased in July

Iraqi oil exports in July, including oil sent from the Turkish sea port of Ceyhan, were 4 percent higher than the previous month, a marketing company said. The Iraqi State Oil Marketing Organization said Monday a total of 75.7 million barrels of oil were exported from the country in July. Total quantities include oil sent from the southern Iraqi oil terminal in Basra and from the Turkish sea port of Ceyhan, SOMO said. July exports were 4 percent higher than the total for June. SOMO said three American companies — Chevron, Exxon Mobil and Phillips 66 — were among the 31 companies that received Iraqi oil last month. Asian economies received the bulk of the oil exported in July, though the organization didn’t break down quantities per destination. SOMO is the only entity authorized to export oil from Iraq, the federal government in Baghdad says. The semiautonomous Kurdish government […]

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Iran Postpones Oil Deals Roadshow to 2015

LONDON—Iran is delaying a London oil contracts roadshow to next year to make it possible for Western companies to sign them, an Iranian oil official said Monday. The news comes after the Islamic Republic last month failed to reach a comprehensive nuclear agreement with six world powers, postponing a deadline to reach a deal to Nov 24. The delay has forced companies from the U.S. and the European Union to delay their return to the country’s vast oil and gas resources. Speaking to The Wall Street Journal, the Iranian oil official said "the conference in London will be in February 2015." Iran’s oil ministry had already postponed the date from July to early November 2014. A committee set up by oil minister Bijan Zanganeh has proposed draft oil contracts designed to attract Western investors to Iran. But sanctions currently ban U.S. and European companies from entering the country’s hydrocarbon […]

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Libya crisis: US ‘caught off-guard’ by air strikes

Smoke rises from fighting at Tripoli airport. 23 Aug 2014 Life has come to a standstill in Tripoli after weeks of fighting Continue reading the main story US officials say Egypt and the UAE were behind air strikes in Libya last week that targeted Islamist militia. A senior US official told the BBC that Washington was not consulted about the attacks and was "caught off-guard". The air strikes on militia positions around Tripoli’s international airport were reportedly carried out by Emirati fighter jets using bases in Egypt. The Egyptian authorities have denied involvement, and there has been no direct comment from the UAE. The strikes failed to stop militias from Misrata and other cities, which operate under the banner Libya Dawn and include some Islamist groups, seizing the airport from a militia from Zintan that had controlled it since 2011. Damaged plane at Tripoli airport. 25 Aug 2014 Planes […]

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Arab Nations Strike in Libya, Surprising U.S.

CAIRO — Twice in the last seven days, Egypt and the United Arab Emirates have secretly launched airstrikes against Islamist-allied militias battling for control of Tripoli, Libya, four senior American officials said, in a major escalation of a regional power struggle set off by Arab Spring revolts. The United States, the officials said, was caught by surprise: Egypt and the Emirates, both close allies and military partners, acted without informing Washington, leaving the Obama administration on the sidelines. Egyptian officials explicitly denied to American diplomats that their military played any role in the operation, the officials said, in what appeared a new blow to already strained relations between Washington and Cairo. The strikes in Tripoli are another salvo in a power struggle defined by Arab autocrats battling Islamist movements seeking to overturn the old order. Since the military ouster of the Islamist president in Egypt last year, the new […]

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Hero of Libya’s revolution wages war on government

Salah Badi has a reputation for resorting to other means when politics do not go his way. A hero of the 2011 uprising against Muammer Gaddafi and head of a militia affiliated with the coastal city of Misurata, the former member of parliament is now waging war in the capital, Tripoli, as he tries to maintain the dominance of Islamists – and his home town – in the face of overwhelming voter opposition to his agenda in June 25 general elections. More On this topic IN Middle Eastern Politics & Society “He reflects a certain component of Libyan politicians who see themselves as still fighting out the revolution,” said Claudia Gazzini, Libya researcher for the International Crisis Group. “They don’t care that they’re not popular. They see themselves as righteous defenders of Libya and saviours of a Libya that is gradually returning into the hands of the former regime.” […]

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Libya Officials Seek Help as Rifts Deepen Amid Militia Violence

Libya ’s outgoing parliament defied its successor by naming an alternative premier, while government officials called for international help amid growing violence between rival militias. The General National Congress, the legislature that has refused to disband even after a new one was elected in June, invited Omar El-Hassi to form a salvation government during a meeting yesterday in the capital, Tripoli. The congress, where Islamists are among the strongest factions, also announced a “public mobilization” in all institutions and the highest level of security alert, the official news agency Lana said. The newly elected parliament has been meeting in the east of the country instead of Tripoli, the seat of the outgoing legislature. El-Hassi was nominated as a rival to Prime Minister Abdullah Theni, whose house was set ablaze by militia fighters yesterday, according to Al-Arabiya television. The political schisms and spread of violence highlight the lack of central […]

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Rockets Target Lifeline Airport in Eastern Libya

Plumes of black smoke can be seen after clashes between the Benghazi Revolutionaries Shura Council and fighters of renegade general Khalifa Haftar, as they each attempt to seize control of the airport from the council in Benghazi, Libya, Aug. 23, 2014. Reuters August 25, 2014 9:32 AM BENGHAZI, LIBYA— Attackers fired rockets at eastern Libya’s Labraq airport on Monday, its director said, targeting one of the oil producer’s few functioning air hubs as violence between armed groups escalates. The airport east of the city of Benghazi has become a major gateway into Libya since Egypt and Tunisia canceled almost all flights to the capital Tripoli and the west of the country last week, citing security reasons. The North African nation has descended into anarchy with a weak government unable to control fighters, who helped topple strongman Moammar Gadhafi in 2011 but now vie for control of territory and resources. […]

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Libya Says Waha Oil Field Resumes Operations

LONDON—Libya said Monday normal operations had resumed at the giant Waha oil field as the country’s output jumps in contrast with mounting violence in urban centers. The latest step in Libya’s oil recovery contrasts with claims by an Islamist militia to have taken over of Tripoli’s airport over the weekend. Speaking to The Wall Street Journal, Mohamed el-Harari, spokesman for the state-owned National Oil Co., said operations had resumed earlier Monday at Eastern Libya’s Waha oil field, paving the way for a return to exported production later this week. Waha, which normally produces 160,000 barrels a day, supplies crude to the Es Sider terminal, which restarted exports using stored oil last week after a year-long interruption. The Waha field, which is partly owned by U.S. companies ConocoPhillips , Hess Corp. and Marathon Oil Corp. , has kept producing small quantities of oil for its own maintenance, according to an […]

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Libya has two governments, assemblies as chaos spreads

BENGHAZI Libya/CAIRO (Reuters) – The Libyan parliament that was replaced in an election in June reconvened on Monday and chose an Islamist-backed deputy as prime minister, leaving the chaotic country with two rival leaders and assemblies each backed by armed factions. The election was meant draw a line under another incidence of competing prime ministers in May and allow nation building to being to try to quell three years of spreading violence since veteran ruler Muammar Gaddafi was ousted. But the old General National Congress (GNC), where Islamists had a strong voice, has refused to acknowledge the legitimacy of its successor assembly, the House of Representatives, which is dominated by liberals and federalists. The GNC reconvened after armed factions from the western city of Misrata forced a rival faction from Zintan out of Tripoli’s main airport on Saturday after a month of fighting that has come to symbolize the […]

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Saudi Aramco Plans To Invest $40B A Year For The Next Decade

Saudi Aramco Plans To Invest $40B A Year For The Next Decade STAVANGER, Norway, Aug 25 (Reuters) – Saudi Aramco, the world’s biggest oil producer, plans to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production, Chief Executive Khalid Al-Falih said on Monday. State-owned Aramco sees more capital going into offshore projects and expects rising costs across the oil sector to underpin oil prices, Al-Falih told a conference. Oil prices fell to a 14-month low of $101.07 last week as global demand growth weakens, even as production ramp ups in several places create a glut of oil. "To meet forecast demand growth and offset (global output)decline, our industry will need to add close to 40 million barrels per day of new capacity in the next two decades," Al-Falih said. "Although our investments will span the value chain, the bulk […]

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Statoil To Hold Back US Shale Ramp Up

Hess To Form MLP For North Dakota Oil, Gas Transport Assets STAVANGER, Norway, Aug 25 (Reuters) – Norwegian energy firm Statoil will only slightly raise its U.S. shale oil and gas output in the near term due to spending curbs, well below a potential for a 50 percent surge, the firm said on Monday. Statoil, which produces around a tenth of its oil and gas from its U.S. shale operations in the Bakken, Eagle Ford and Marcellus formations, has even cut back investments in the area, as shale projects are competing for capital within the company, said Torstein Hole, Statoil’s chief for U.S. onshore activities. Statoil abandoned its 2020 production target earlier this year and cut its capital spending budget, arguing that it needs to save cash and return more to shareholders after a decade of ramping up spending. The firm increased shale production to around 210,000 barrels of […]

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Iran testing gas pipeline to Iraq

The first stage of a natural gas pipeline connecting Iran to Iraq is ready for testing, the head of an Iranian gas development company said. Alireza Gharibi, managing director of the Iranian Gas Engineering and Development Co., said a 60-mile pipeline crossing the Iranian border into Iraq is ready for water deliveries as part of an initial testing process. Once cleaning operations and testing are completed, the pipeline will be ready for initial exports of 176 million cubic feet of natural gas per day. "When this part of the pipeline becomes operational, additional pipeline loops will increase gas export to Iraq," he said Saturday. Iran said last week natural gas production is on the rise and on pace to reach 35 billion cubic feet in the next three years with help from the South Pars field. Iran has held out its vast gas resources as an option for a […]

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Iran Delays Oil Contracts Conference Until After Nuclear Talks

Iran is delaying by three months a conference to offer international companies rights to develop oil deposits there, allowing the London event to fall after negotiations on the country’s nuclear program are set to end. Foreign companies will be able to express interest in producing crude and natural gas in Iran “immediately” after a final nuclear deal is reached, said Mehdi Hosseini, head of the Oil Contracts Revision Committee. Iran and six global powers have given themselves until Nov. 24 to agree on limits to the Persian Gulf state’s nuclear program in return for lifting sanctions on the country. The London conference, previously scheduled for Nov. 3, will take place in late February, to allow companies to participate that would otherwise be barred by sanctions from dealing with Iran , Hosseini said. “We are very interested in seeing the international companies, especially the major companies, participate in that conference,” […]

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Iran says ‘completing’ nuclear steps agreed with IAEA

VIENNA/DUBAI (Reuters) – Iran is "in the process" of completing measures on transparency in its nuclear research that were agreed with the U.N. atomic agency, a senior Iranian official was quoted as saying, suggesting Tehran had at least partly met a Monday deadline for cooperation. Atomic energy chief Ali Akbar Salehi did not give details in remarks reported by the official IRNA news agency. Those remarks came a few days after diplomatic sources in Vienna told Reuters the U.N. watchdog’s investigation into suspected atomic bomb research by Iran appeared to be making only limited headway. Western officials say Iran must address the questions of the International Atomic Energy Agency (IAEA). They say that would be an important boost for parallel diplomatic efforts to end the dispute over a nuclear program the country says is peaceful. Under an accord reached by the U.N. agency and Iran in November in an […]

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China oil, gas production up, Sinopec says

China Petroleum and Chemical Corp. said Monday oil and natural gas production increased 8 percent year-on-year, with most of the gains coming from overseas. The company, known also as Sinopec, said combined oil and natural gas production during the first half of the year was up 8 percent from the same time last year. Crude oil production in China of 154.1 million barrels of oil was up 0.3 percent year-on-year, though the 23.7 million barrels produced overseas was more than twice what Sinopec produced during first half 2013. Natural gas production of 354.8 billion cubic feet was 9.5 percent higher year-on-year, though Sinopec offered no breakdown of the origin. The company said net profits through June 30 were $5.2 billion, up 7.2 percent from the same time last year. In terms of the Chinese economy itself, Sinopec said it expected steady growth with gross domestic product up by 7.4 […]

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Clegg: Energy, climate to top Indian agenda

British Deputy Prime Minister said energy and climate change would be near the top of his agenda during a three-day visit to India. "There is already $26.5 billion of trade every year between India and the U.K.," he said before leaving Monday. "India invests more in the UK than it does in the rest of the European Union combined, and no country in the G20 invests more in India than Britain does." The deputy prime minister led a delegation to India this week to discuss British opportunities in the growing Indian economy . His office said climate change and energy were expected to be near the top of the agenda for this week’s meetings. A report from financial firm Dun & Bradstreet said last week the Indian gross domestic product should grow by 5.5 percent next year, up from the 5.2 percent expected this year. Dun & Bradstreet India […]

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Energy reform could increase Mexico’s long-term oil production by 75%

Source: U.S. Energy Information Administration, International Energy Outlook 2014 preliminary projections On August 11, Mexico’s president signed into law legislation that will open its oil and natural gas markets to foreign direct investment, effectively ending the 75-year-old monopoly of state-owned Petróleos Mexicanos (Pemex). These laws, which follow previously adopted changes in Mexico’s constitution to eliminate provisions that prohibited direct foreign investment in that nation’s oil and natural gas sector, are likely to have major implications for the future of Mexico’s oil production profile. As a result of the developments in Mexico over the past year, EIA has revised its expectations for long-term growth in Mexico’s oil production. Although there are many complexities to the new reform and many details that still must be settled before the reforms can take effect, reform is expected to improve the long-term outlook for growth in Mexico’s petroleum and other liquids production. Analysis in […]

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All Coal-Mining Rights Issued in India Since 1993 Are Ruled Illegal

Miners haul baskets full of coal as they load a truck in the northeastern state of Meghalaya, in this file photo. Agence France-Presse/Getty Images NEW DELHI—India’s Supreme Court ruled on Monday that all coal-mining licenses distributed since 1993 are illegal, dealing a significant blow to operators and providing another setback to the image of the country’s administration. The three-judge bench led by Chief Justice R.M. Lodha said the allotments by past governments weren’t carried out in a transparent manner and no objective criteria were followed. Guidelines were also breached, it added. However, the court didn’t immediately cancel the 200 or so licenses given out since 1993 whose fate now hangs in the balance. "Further hearing is required to determine whether there is a need for canceling all the coal block allocations," the bench said in the order. It will next hear the case on Sept. 1. The order follows […]

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China’s BYD Posts Better Electric Car Sales in First Half of Year

HONG KONG— BYD Co. , China’s leading producer of electric cars, said its sales of the cutting-edge vehicles rose sixfold during the first half of the year, following moves by Beijing to encourage green cars to tackle pollution. Still, the jump—which brought BYD’s sales of full-electric and plug-in hybrid cars to roughly 7,600 in the six months ended June 30—wasn’t big enough to signal there will be serious mass-market demand for the pricey cars, analysts said. And the increased sales of electric cars couldn’t offset a 27% decline in sales of traditional gasoline-powered cars, which still account for nearly half of BYD’s total revenue. Poor sales of gasoline-powered cars and continued losses from a division that makes solar panels pushed BYD’s first-half net profit down more than 15% to CNY361 million versus the previous year, the company said Sunday. BYD’s weak results underscore the challenges China’s car makers face […]

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Saudi Aramco Chief Executive Warns on Oil Supply

STAVANGER, NORWAY—The chief executive officer of Saudi Aramco, the world’s biggest oil producer, said Monday that worries such as rising oil-sector costs and global turmoil could lead to a lack of oil supplies down the line, if oil companies fail to make sufficient investments. "The factors I just highlighted are likely to put downward pressure on supplies over the longer term, if the industry fails to make prudent and timely investments," Khalid A. Al-Falih said at the Offshore Northern Seas energy conference. The factors that could threaten global oil supply include rising costs and cost overruns on oil mega projects, Mr. Al-Falih said. He also pointed to manpower shortages, climate change issues, low oil demand growth amid global economic weakness in the short term, and turmoil in oil-producing regions such as Africa, the Middle East and the former Soviet Union. "For now, however, the market is shrugging them off, […]

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Permian Basin crude prices depressed by lack of pipelines: analyst

Wildfire growth in Permian Basin crude output is outpacing the building of infrastructure to move the oil out of West Texas and eastern New Mexico to Gulf Coast refineries or the oil hub at Cushing, Oklahoma, causing a glut of crude in the region that will depress crude prices until the beginning of 2015, according to an analyst. Platts unit Bentek Energy projects August Permian crude production at 1.7 million b/d, with current pipeline capacity out of the region at 1.27 million b/d. Rail will play a negligible role in moving crude in the Permian, expected to carry only 627,000 b/d in 2015, Bentek data shows. "WTI Midland/Cushing differentials should revert to historical levels in early 2015 with completion of Plains’ Sunrise pipeline," John Mayes, director of special studies at Turner, Mason, told attendees in Houston at last week’s RBN Energy/Turner Mason conference called "Surviving the Flood." Demand for […]

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Slow Going for Natural-Gas Powered Trucks

A factor limiting natural-gas-powered sales is the arrival of new, more efficient diesel engines. Pictured, a trucking firm’s fuel pump in Florida. Edward Linsmier for The Wall Street Journal In the midst of the strongest market for commercial trucks in eight years, North American sales of natural-gas-powered haulers are just crawling along. Higher purchase prices compared with diesel trucks, improved diesel fuel economy and continued scarcity of fueling stations are damping natural-gas-powered truck demand. About 10,480 of the heavy-duty trucks are expected to be sold this year, up 20% from the 8,730 sold last year, according to Power Systems Research. However, some forecasters had expected sales to about double to 16,000 vehicles this year amid the trucking industry’s enthusiasm for natural gas a year ago. What happened? A big roadblock remains the premium for a heavy-duty gas truck—$50,000 more than the about $150,000 for a new diesel-powered truck. In […]

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IEA Chief Says Europe Must Rely on Russian Gas

STAVANGER, Norway—Europe has limited options for finding natural-gas supplies from outside of Russia despite tensions over Ukraine, the International Energy Agency’s chief executive, Maria van der Hoeven, said on Monday. "In the short term, Europe has very, very little means to diversify its gas imports," Ms. van der Hoeven said on the sidelines of the Offshore Northern Seas energy conference. "As far as we can see, Russian gas will be needed in Europe." About a third of Europe’s gas supply comes from Russia and a fifth is supplied by Norway, while other key sources include imported liquefied natural gas and producers like the Netherlands and the U.K., Ms. van der Hoeven said. "If you want to change that and diversify, it takes time. You can’t do it overnight," she said. The agency—which advises industrialized nations on oil and gas policies—forecast last year that the European Union’s annual gas imports […]

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Bakken Shale Rig Count Decreases by One to 191

DMR: North Dakota Hits Record Oil & Gas Production – June 2014 Bakken Oil Well Bakken Oil Well | Click to Enlarge The  Bakken-Three Forks rig count  decreased by one to 191 rigs running across our coverage area by the end of last week. The NDIC notes 193 rigs are active in North Dakota, but around 19 of those are in the process of moving in and rigging up. In recent Bakken news, North Dakota hit nearly 1.1-million b/d oil in June 2014, setting a new record, according to the Department of Mineral Resources’ (DMR) August Director’s Cut . During the same month, North Dakota also had record monthly gas production (1,253,154 mcf/d), and the highest recorded number of producing wells (11,079). Read more : North Dakota Hits Record Oil & Gas Production – June 2014 The U.S. rig count decreased by 17 to 1,896 rigs running by the end […]

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North Carolina fracking protests scheduled

A grassroots group in North Carolina said it plans to hold rallies Monday to protest hydraulic fracturing legislation pending in the state’s government. Advocacy group Frack Free N.C. said a public meeting Monday before the state Mining and Energy Commission is a "critical opportunity" to weigh in on draft legislation covering hydraulic fracturing , the controversial drilling practice dubbed fracking. Gov. Pat McCrory in June signed the so-called Energy Modernization Act, a bill the grassroots group said could result in $1 million in fracking contracts in the state by lifting a fracking moratorium. "Rather than tamping down resistance to hydraulic fracturing, the state’s newest legislation on fracking Senate Bill 786, dubbed the Energy Modernization Act, has only strengthened it and increased the controversy across the state," the advocacy group said. Fracking critics say some of the chemicals used in the process are a threat to groundwater supplies. The process, […]

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Lowest Crude Since January Cuts U.S. Gas to $3.48, Lundberg Says

The cheapest crude oil since January has refiners producing fuel at record rates, helping lower the cost of gasoline at pumps across the country. The average price for regular gasoline at U.S. pumps dropped 4.21 cents in the two weeks ended Aug. 22 to $3.4785 a gallon, according to Lundberg Survey Inc. The average is based on information obtained at about 2,500 filling stations by the Camarillo, California-based company. Prices are 8.01 cents lower than a year ago, the survey showed. Retail prices dropped as West Texas Intermediate crude futures fell below $94 a barrel. U.S. refiners are processing the most petroleum for this time of year in records dating back to 1989. “It’s crude oil at work,” Trilby Lundberg , the president of Lundberg Survey, said in a telephone interview yesterday. “The down factors outweighed the up factors. One of the many factors include robust U.S. oil production.” […]

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Statoil mulls impact of Russian sanctions

Norwegian energy company Statoil stands by its partners in Russia, though Western sanctions do present some obstacles, the company’s top executive said Monday. Rosneft last week announced it started an exploration program in the Barents Sea through a partnership with Statoil. Rosneft was the target of Western economic sanctions imposed in response to the Kremlin’s stance on crises in Ukraine. Statoil Chief Executive Officer Helge Lunde said Rosneft is a steady partner , though sanctions have complicated the relationship. "We hope for a diplomatic solution, but of course [the imposition of sanctions] hasn’t made it any easier for either Rosneft or companies working with that company and other Russian companies," he told the Wall Street Journal. "But our aim is to continue the [Rosneft] partnership, and we hope for diplomatic solutions." Russia and Norway are the top energy suppliers to the European market. Lund said, however, bilateral ties may […]

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ANALYSIS: UK gas demand so far in August up 19% year on year

UK gas demand so far in August has been around 19% higher than last year despite a much slower rate of storage injections this month, as demand from other sectors has risen, a Platts analysis of National Grid figures showed Friday. UK gas demand so far this month has averaged around 159 million cubic meters/day — up from around 133 million cu m/d during the same period last year — as higher gas burn and exports, stronger local distribution zone (household) demand and a boost in demand from industrial units all contributed to the demand hike. This has continued the recent trend of UK gas demand being higher than in 2013, after June demand was higher than a year earlier. UK gas demand averaged 176 million cu m/d in June against the June 2013 average of 160 million cu m/d. This also confirmed the recent bucking of the trend […]

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Statoil Warns of Delays in Russian Energy Projects

Statoil CEO Helge Lund said Monday that Western sanctions against Russia might delay some of the Norwegian oil group’s projects with Russian partner Rosneft. Bloomberg News STAVANGER, Norway— Statoil AS A has warned that Western countries’ sanctions against Russia will slow down the process of gaining approval for some of the company’s joint ventures with Russian oil group OAO Rosneft . Norway’s largest oil group said Monday that it will stand by its 27-month-old partnership with the state-controlled Russian company because it hopes diplomacy will resolve Russia’s standoff with the U.S. and Europe over the crisis in Ukraine . "This will be a more bureaucratic process, so that things will take more time," Statoil Chief Executive Helge Lund said in an interview at the Offshore Northern Seas energy conference. Mr. Lund said not all of Statoil’s joint-venture projects with Rosneft would be slowed down, as sanctions target mainly shale-, […]

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Wood Mac: 10B Barrels of Undeveloped Resources on NCS

Norway has 10 billion barrels of oil equivalent of discovered hydrocarbons that are yet to be developed, according to new analysis released Tuesday at Stavanger’s ONS 2014 conference by Wood Mackenzie. Wood Mackenzie said that, despite being at different stages of evaluation, facing intense investor scrutiny and considerable technical and commercial challenges, more than 60 percent of these resources could be commercialized – potentially adding $106 billion to Norway’s oil and gas industry revenues. The oil and gas industry research firm said that the 10 billion barrels of oil equivalent of undeveloped resources are held with 206 discoveries – ranging in size from under one million boe to the giant 2.4 billion boe at Johan Sverdrup – and spread across the Norwegian Continental Shelf. James Webb, Wood Mackenzie’s upstream analyst for North West Europe, commented: "We consider 4.8 billion boe likely be economic, 1.6 billion boe potentially economic and […]

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Can You Guess Which Country Depends Most Heavily on Russian Gas?

When it comes to energy, Germany is a bit of a conundrum. It’s a global leader in renewables usage, having increased the share of renewables in its total energy consumption from 6% to an impressive 25% over the past decade. Yet it’s also a heavy user of coal – a fact that’s glaringly inconsistent with its sustainable energy leadership. What’s even more surprising, however, is that Germany is actually the biggest importer of natural gas from Russia. According to BP’s latest annual review , it imported close to a whopping 40 billion cubic meters of gas from the Russian Federation in 2013. That places it well ahead of even Ukraine, which imported about 25 billion cubic meters, as the chart below shows. German reliance on Russia Germany relies on imports to supply more than 70% of its domestic energy demand, with Russia alone representing a quarter of the country’s […]

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Oil Slips, Brent Trades Around $102 a Barrel

By Eric Yep Crude-oil futures continued to slide in Asian trade Monday as oversupply concerns outweighed tensions in oil-producing regions like the Middle East. On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $93.54 a barrel at 0442 GMT, down $0.11 in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell $0.11 to $102.18 a barrel. Both the global oil benchmarks ended lower last week. Nymex crude has now been down for four consecutive weeks while Brent has been down for three of the past four weeks. The Chicago Mercantile Exchange halted electronic futures trading on contracts for a few hours due to technical issues, but trading has resumed on its platforms. The Obama administration is considering a wider military campaign against Islamic State militants in Iraq and Syria, after the beheading of American journalist James Foley. The […]

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Brent Extends Drop as Mideast Oil Supply Stays Safe; WTI Steady

Brent fell for a second day amid speculation that turmoil across the Middle East won’t threaten crude supplies. West Texas Intermediate was steady in New York after a technical issue disrupted electronic trading. Futures dropped as much as 0.6 percent in London . Libya’s production increased even as Islamist militias seized Tripoli’s international airport, while supply from Iraq remained uninterrupted by its struggle to form a new government. CME Group Inc., the world’s largest futures market, halted most of its Globex platform for about four hours, suspending contracts including oil and commodities. “The region is in chaos but production continues to rise,” Robin Mills, the head of consulting at Manaar Energy Consulting and Project Management, said by phone from Dubai. “Brent’s been pretty weak. Global demand is still sluggish.” Brent for October settlement declined as much as 64 cents to $101.65 a barrel on the London-based ICE Futures Europe […]

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Hedge Fund Crude Bets Tumble Amid Surging Global Supply

Speculators are the least bullish on U.S. crude oil prices in 16 months as refinery maintenance weakens demand at a time when Libya and Iraq are swelling global supplies. Futures dropped a fifth consecutive week after money managers reduced net-long positions in West Texas Intermediate, the U.S. benchmark grade, by 14 percent in the seven days ended Aug. 19, the Commodity Futures Trading Commission said. Prices sank below $95 on Aug. 19 for the first time in seven months as U.S. air strikes in Iraq helped reverse the advance of Islamic State fighters and the country’s Kurds work to increase oil shipments. Libyan output climbed last week and exports resumed from the port of Es Sider. Refineries in the U.S. typically schedule work for September and October, when demand for gasoline declines after the summer peak, and before consumption of heating fuel picks up during winter. “It’s hard not […]

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Islamic State Captures Major Air Base in Syria From Government

A resident of the Syrian town of Tabqa celebrates by waving the Islamist flag after Islamic State fighters took over a regime air base nearby. Reuters BEIRUT—The extremist group Islamic State captured a major air base in Syria in the northeastern province of Raqqa, driving out regime forces and gaining full control of an entire province for the first time in the country’s civil war. The takeover of the Tabqa air base on Sunday follows setbacks in neighboring Iraq, where U.S. airstrikes since Aug. 8 succeeded in beating the group back in several areas in the north. The base had been the last foothold for forces of Syrian President Bashar al-Assad in Raqqa. Islamic State fighters over the past month drove regime forces from the headquarters of the Syrian Army’s 17th Division and another base for the 93rd Brigade of the same division. The loss of the air base […]

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Islamic State renews push for Iraq oil field

The Islamic State group has launched a renewed push to seize Iraq’s main oil refinery north of Baghdad, battling security forces backed by air support, authorities and witnesses said. At least three Iraqi security personnel were killed, and seven others were injured in the fighting on Sunday, in which fighters attacked the Baiji refinery from three sides, sources told Al Jazeera. The attack on Sunday came as Iraq’s next-door neighbour Iran reiterated its support for the new Shia-led government of Prime Minister Haider al-Abadi, with a visit from Iranian Foreign Minister Javad Zarif.    The fight over the oil field started overnight and continued into the next day, according to news reports. The Islamic State fighters have repeatedly sought to overrun the refinery, which once accounted for about 50 percent of Iraq’s supplies of refined oil products. While they have previously managed to enter the refinery compound, security forces were able to push them […]

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A look into heart of jihadist ‘caliphate’ in Syria, Iraq

News A look into heart of jihadist ‘caliphate’ in Syria, Iraq 23 Aug 2014 "What do you want to be? A jihadist, or to execute a martyrdom operation?" In the "caliphate" recently proclaimed by jihadists in Syria and Iraq, even young children are indoctrinated, and Sharia law is backed by the gun, according to a gripping documentary offering one of the first glimpses of life in Raqqa, power base of the so-called Islamic State (IS). Part 1 of a five-episode series, The Islamic State, filmed by Anglo-Palestinian journalist Medyan Dairieh was released Thursday by New York-based Vice News. The tone is set early: "Sharia can only be established with weapons," an IS fighter explains to Dairieh, who spent three weeks embedded with the radical Sunni group. Dairieh, toting a video camera, gained "unprecedented access" to the organization, Vice News said. In Raqqa, heavily-armed jihadists are seen celebrating on US […]

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Iraq’s Maliki Drops Struggle for Power

Departing Iraqi Prime Minister Nouri al-Maliki speaks during an interview in Baghdad on Jan. 12. Reuters BAGHDAD—Iraq’s outgoing prime minister, Nouri al-Maliki, appears to have dropped his quixotic struggle to remain in power over the past week and is resigned instead to remaining a member of parliament insulated from prosecution. Fears that Mr. Maliki might play the spoiler in the new government have largely receded since his initial reaction to the appointment of Haider al-Abadi to replace him. The night before Mr. Abadi’s appointment , Mr. Maliki called out his security forces in Baghdad in what looked like preparations for a coup. Now Mr. Maliki meets with Mr. Abadi daily and advises him about the formation of a new cabinet, said Hussein Al-Marabi, a parliamentarian from the Shiite Islamist Fadhila Party. However other leaders of Shiite parties said Mr. Maliki doesn’t take part in the negotiations on forming a […]

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Kurdish Oil Shipments From Turkey Said to Resume as Tanker Loads

Shipments of Iraqi Kurdish oil resumed from the Turkish terminal Ceyhan today as the Spanish-flagged tanker Ultimate Freedom completed loading and prepared to depart, according to an official with knowledge of the situation who asked not to be identified, citing policy. The tanker loaded some 950,000 barrels and is expected to leave Ceyhan shortly, the official said by phone. Oil flow from northern Iraq restarted last week after a pause of more than two weeks while Iraqi Kurds installed a booster station to speed up the flow through the pipeline. The Malta-flagged Phoenix AN and the Greek-flagged United Carrier tankers were on their way to Ceyhan on the Mediterranean cost to pick up some 250,000 and 500,000 barrels of Kurdish oil, respectively, the official said. The Kurdish regional government’s press officer didn’t answer phone calls seeking comment today. Turkey has ignored objections by Iraq’s central government, which says the […]

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Libya Islamists Seize Tripoli Airport as Parliament Duel Set

An alliance of Islamist militias said it wrested control of Tripoli’s international airport from a rival force after weeks of fighting that triggered an exodus of foreigners and threatened to plunge Libya deeper into chaos. Libya’s defunct, Islamist-dominated parliament said it would temporarily resume its sessions, the state-run Libya News Agency reported, a move that may set the stage for dueling legislatures amid a leadership vacuum. The fighting has battered Libya, undercut efforts to revive oil output in the OPEC member and dimmed hopes for a transition to democracy. It has sparked concern the nation, led by a largely toothless central government, will descend into anarchy and emerge as little more than a failed state controlled by militias. The announcement of the airport’s capture by Fajr Libya, or Libya Dawn, came hours after warplanes struck Islamists near and around the airport, killing at least 13 people and wounding 30 […]

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Libya's neighbors fear spillover of violence

CAIRO (AP) — Egypt’s foreign minister has called for an international push to disband militias in neighboring Libya, where weeks of inter-militia fighting has wreaked havoc in the country. Sameh Shukri says the escalation of violence in oil-rich Libya poses a threat to the entire region. He is calling for a joint effort to disband all militias, "without exception." The Egyptian top diplomat spoke Monday at a Cairo gathering of Libya’s neighbors. It was attended by Tunisia, Algeria, Sudan and Chad. The meeting comes as Islamist-led militias in the Libyan capital say they consolidated their hold on Tripoli and its international airport, driving out rivals to the city’s outskirts after battles that largely destroyed the strategic hub. It’s the worst violence in Libya since the 2011 downfall and killing of dictator Moammar Gadhafi.

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Libya’s neighbors fear spillover of violence

CAIRO (AP) — Egypt’s foreign minister has called for an international push to disband militias in neighboring Libya, where weeks of inter-militia fighting has wreaked havoc in the country. Sameh Shukri says the escalation of violence in oil-rich Libya poses a threat to the entire region. He is calling for a joint effort to disband all militias, "without exception." The Egyptian top diplomat spoke Monday at a Cairo gathering of Libya’s neighbors. It was attended by Tunisia, Algeria, Sudan and Chad. The meeting comes as Islamist-led militias in the Libyan capital say they consolidated their hold on Tripoli and its international airport, driving out rivals to the city’s outskirts after battles that largely destroyed the strategic hub. It’s the worst violence in Libya since the 2011 downfall and killing of dictator Moammar Gadhafi.

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Libya’s Islamist Militias Claim Control of Tripoli

Smoke fills the sky over Tripoli after fighting between Dawn of Libya and rival militias Aug. 23, 2014. European Pressphoto Agency Libya’s Islamist militias said Sunday they have consolidated their hold on Tripoli and its international airport, driving out rival militias to the outskirts of the capital after a weeks-long battle for control of the strategic hub. The umbrella group for Islamist militias, calling itself Dawn of Libya, said it has also taken hold of other locations in the capital that were controlled by rival militias. The move draws to a close one chapter in a prolonged confrontation between the Islamist-allied militia, largely from the city of Misrata, and the powerful militia from the western mountains of Zintan. The fight has largely destroyed the airport and scarred the capital, prompting diplomats, foreign nationals and thousands of Libyans to flee. The violence in Libya is rooted in the empowerment of […]

Posted On : Published By : Tom Whipple