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Deadly rebel counteroffensive a setback for Ukraine forces

Pro-Russian rebels killed at least 19 Ukrainian troops Thursday, a setback for Kiev’s military forces after they  made significant headway  in recent weeks against a dogged insurgency in the country’s restive east. Separately, Ukrainian border guards began inspecting a Russian truck convoy carrying aid earmarked for humanitarian relief in eastern Ukraine. The convoy has been  stranded at the border between the two countries  for more than a week. Ukrainian government officials said the troops died in intense battles in the strategically important town of Llovaisk, near the rebel-controlled city of Donetsk, the BBC reported. Donetsk was the  site of heavy shelling that hit residential neighborhoods  on Wednesday. Rebel and government forces fought street battles there and in other towns across the east. The forces of the Western-backed government have been  steadily gaining the upper hand  over the separatists in eastern Ukraine and are tightening the noose around the main rebel bastions […]

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Russian aid trucks pass Ukraine border post, with rebel escort

MOSCOW (Reuters) – About twenty trucks from a Russian aid convoy have crossed the Russia-Ukraine border and are heading in the direction of the Ukrainian city of Luhansk, a Reuters witness said. He added that the trucks were accompanied by a small number of pro-Russian rebels. The trucks were previously in the no-man’s land between the Russian and Ukrainian border posts, but have now moved past the Ukrainian border post. (Writing by Katya Golubkova)

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Russia Said to Forgo $6.7 Billion of Oil Revenue for Investment

Russia may lose as much as 240 billion rubles ($6.7 billion) of oil revenue next year after the government chose a three-year tax plan favored by crude producers, according to two state officials. Deputy Prime Minister Arkady Dvorkovich picked the lower of two proposed oil output tax rates, leaving an additional 55 billion rubles in producers’ pockets, the officials said, asking not to be identified because discussions were confidential. Dvorkovich, who made his choice to encourage investment, met yesterday with government and business representatives to set the rates before the budget is sent to parliament. Russia, the world’s biggest energy exporter, is trying to balance the interests of producers and the budget with the $2 trillion economy on the brink of recession amid a standoff with the U.S. and Europe over Ukraine . Oil taxes provide about 45 percent of the country’s budget revenue. The oil companies got what […]

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Oil stock depletion 'felt by 2030'

Depleting oil and gas production will begin to be felt by 2030 and will have serious implications for the economy, jobs and balance of payments in an independent Scotland, according to Sir Ian Wood. Sir Ian, an authority on the sector, has warned that an independent Scotland without new hydrocarbon regions being discovered will have no more than 35 years of depleting offshore oil and gas production left, and this must be taken into account in the economics of independence. The industry, therefore, cannot figure significantly in Scotland’s medium-term economic calculations, he said. During an interview with EnergyVoice.com, Sir Ian contradicted the Scottish Government’s own figures for remaining North Sea resources and tax income. He said that even with further tax breaks and less complex regulation in the North Sea, only a further 15-16.5 billion barrels of oil equivalent (boe) are likely to be recovered. The Scottish Government has […]

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Oil stock depletion ‘felt by 2030’

Depleting oil and gas production will begin to be felt by 2030 and will have serious implications for the economy, jobs and balance of payments in an independent Scotland, according to Sir Ian Wood. Sir Ian, an authority on the sector, has warned that an independent Scotland without new hydrocarbon regions being discovered will have no more than 35 years of depleting offshore oil and gas production left, and this must be taken into account in the economics of independence. The industry, therefore, cannot figure significantly in Scotland’s medium-term economic calculations, he said. During an interview with EnergyVoice.com, Sir Ian contradicted the Scottish Government’s own figures for remaining North Sea resources and tax income. He said that even with further tax breaks and less complex regulation in the North Sea, only a further 15-16.5 billion barrels of oil equivalent (boe) are likely to be recovered. The Scottish Government has […]

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Oil Eases on Libya Supply, Weak China Data

By Eric Yep Crude-oil futures eased slightly in Asian trade Thursday as markets continue to weigh global supply levels and weak economic data from China. On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $93.17 a barrel at 0533 GMT, down $0.28 in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell $0.35 to $101.93 a barrel. Chinese manufacturing activity weakened in August to a three-month low, with the preliminary HSBC China Manufacturing Purchasing Managers Index slipping to 50.3 compared with a final reading of 51.7 in July. Analysts said the soft numbers point to a fragile economic recovery and will likely be negative for oil demand. Libya said it has resumed oil exports from its largest terminal–Es Sider– after almost a year, with an initial cargo of 600,000 barrels of oil headed for Europe. "The Libyan recovery […]

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Brent Falls From 3-Day High on China Manufacturing; WTI Declines

Brent crude fell from the highest closing price in three days as a measure of China ’s manufacturing missed estimates and the U.S. pledged to continue operations to stop Islamic radicals in Iraq . West Texas Intermediate also dropped. Futures declined as much as 0.8 percent in London. A preliminary Purchasing Managers ’ Index from HSBC Holdings Plc and Markit Economics slid to 50.3 for August. A median 51.5 was projected in a Bloomberg News survey. President Barack Obama said the beheading of an American journalist by Islamic State militants won’t deter him from a bombing campaign aimed at halting their advances. “The softer China PMI might be one of the key news drivers today,” Torbjoern Kjus, an analyst at DNB ASA in Oslo, said by phone. “That’s more affecting the financial players.” Brent for October settlement decreased as much as 80 cents to $101.48 a barrel on the […]

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Oil ‘super spike’ is coming: Dan Dicker

Another bad day for traders bullish on energy as WTI crude oil slid 2% , hitting its lowest level since January. Across the pond Brent crude traded at its lowest level in almost 14th months . From the heady days of mid-2008 when it traded at nearly $150 a barrel, crude oil has had quite a rocky ride. After sliding down to the $30s and rallying back around $120, crude has settled in around the $90 to $110 range for the past two years. Commodity traders and analysts have wondered why oil hasn’t gone higher. Geopolitical tensions abound across the world; the Middle East seemingly hasn’t been this unstable in years. In fact, some believe the commodity could actually go lower. Blake Morrow posits that with North American production rising, vehicles becoming more efficient, and crude oil’s inability to rally with global equities, all signs point to a bearish […]

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Natural Gas Retreats as Weather Forecasts Cool

By Timothy Puko NEW YORK–Natural-gas prices closed lower Wednesday as weather forecasts pulled back hopes for a late-summer bump in demand. The front-month September contract settled down 5.4 cents, or 1.4%, at $3.823 a million British thermal units on the New York Mercantile Exchange. The price held near the middle of a 29-cent trading range that gas has stayed in for the past month. Several weather models are showing unseasonably cool weather spreading from the North starting next week. Cool summer weather limits how much consumers use their air conditioners–and the gas-fired electricity that powers them. Temperatures that had been expected to reach as high as 8-degrees-Farenheit above normal in parts of the south are now getting pushed out as a cool front from Canada sweeps through the Midwest and Mid-Atlantic regions. Traders are also expecting the storage update Thursday from the federal government to show producers maintained their […]

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Doomsday dam could bring Iraqis together

Water stole the show from oil in Iraq last week, as Kurdish peshmerga soldiers and forces loyal to the government in Baghdad routed Islamic State (IS) fighters from Mosul and a nearby strategic dam – the shoddy construction of which may in some ways be even more dangerous than IS, experts said on Wednesday. Since it was built 30 years ago, the Mosul Dam on the Tigris River has supplied water and electricity to Iraqis living in major population centers to the south. But it requires constant and intensive maintenance to continue holding back billions of gallons of water. Many fear that if it is neglected amid the current fighting it could rupture and flood villages, towns and Baghdad itself, potentially drowning or displacing hundreds of thousands of people. But experts say the dam – and the region’s water resources in general – also presents an enormous opportunity for […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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NE China drought leaves 330,000 thirsty

SHENYANG, Aug. 21 (Xinhua) — Drought in northeast China’s Liaoning Province has caused drinking water problems for nearly 330,000 people and 82,000 head of livestock, said authorities Thursday. The worst drought since 1951 has also affected 28 million mu (1.8 million hectares) of crops, 56 reservoirs and 427 rivers, said the provincial flood control and drought relief headquarters. Liaoning received only 102mm of rain from July 1 to Aug. 17, 60 percent less than normal. The dry and hot weather will continue through late August. Artificial rain has failed to relieve the situation. "We have more than ten mu of crops. I am afraid the planting costs will not be earned," said Dong Yuxia, a farmer in Sijiazi Village, Kazuo County. Feng Lichen, a grain expert, said the current drought has a limited impact on crops, especially corn, but a lingering drought through the autumn will have a greater […]

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U.S. opens Gulf acreage to energy companies

John Rodi, regional director for the Bureau of Ocean Energy Management, opened the auction for 21 million acres for oil and gas development in New Orleans. BOEM said Lease Sale 238 offers more than 4,000 tracts ranging from nine miles to 250 miles off the Texas coast. Water depths range from 16 to more than 10,975 feet. The agency, a division of the U.S. Interior Department, said the acreage could lead to the production of between 116 million and 200 million barrels of oil and 538 billion and 938 billion cubic feet of natural gas. The U.S. government placed a brief moratorium on deep water oil and gas drilling in the wake of the Deepwater Horizon tragedy in 2010. Eleven rig workers were killed in an accident that resulted in the worst offshore oil spill in U.S. history. In May, U.S. Deputy Interior Secretary Mike Connor said the Gulf […]

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Iran wants to develop mini-LNG plants

Hamid Reza Araqi, managing director of the National Iranian Gas Co., said the government is considering as many as four small-scale LNG facilities for domestic use. Storage facilities associated with the plants could store 3.1 billion cubic feet of natural gas. "After the launch of the invitation [in October], investment companies can announce their readiness for contribution to the construction of mini-LNG plants," the director said. Iran said it’s producing enough natural gas that imports are on the decline. The director said using LNG in some parts of the country may be easier than building pipelines . The LNG plants would require at least $100 million in investments. Such investments in Iran may be limited by economic sanctions targeting Iran’s energy sector, imposed by Western governments wary of Iran’s nuclear ambitions.

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Pennsylvania driller fined for gas leak

Cabot was fined $76,546 by the Pennsylvania Department of Environmental Protection for an incident at its Huston well in the northeast part of the state. DEP said the January incident was the result of the failure of a subcontractor to follow standard operating procedures that would have led to a proper valve closure on the well. Furthermore, DEP said the presence of frozen sand in the well may have led to a false positive indicating the well was closed off. DEP Director of Oil and Gas Operations Johns Ryder said his department ensured there was no significant environmental impact from the accident. "In this incident, mostly gas was released, which dissipated quickly to background levels within 100 feet from the well," he said in a statement Tuesday. Cabot told DEP it couldn’t determine how much gas was released during the 27-hour incident. There was no statement from the company […]

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North Dakota Hits Records Oil & Gas Production – June 2014

Flared Gas Still High Despite Completion of Tioga Gas Plant Expansion in May 2014 Bakken Oil Well Bakken Oil Well | Click to Enlarge The State of 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). In April, North Dakota crossed the milestone 1-million b/d oil mark. The Bakken region, which includes portions of western Montana, exceeded the 1-million b/d mark at end of last year according to the Energy Information Administration (EIA). It is the fourth region, along with the Gulf of Mexico, Eagle Ford, and Permian basins, producing more than 1 million b/d in the nation. Read more :  North Dakota Hits the 1-Million b/d Mark About 28% of gas […]

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North Dakota Hits Records Oil & Gas Production – June 2014

Flared Gas Still High Despite Completion of Tioga Gas Plant Expansion in May 2014 Bakken Oil Well Bakken Oil Well | Click to Enlarge The State of 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). In April, North Dakota crossed the milestone 1-million b/d oil mark. The Bakken region, which includes portions of western Montana, exceeded the 1-million b/d mark at end of last year according to the Energy Information Administration (EIA). It is the fourth region, along with the Gulf of Mexico, Eagle Ford, and Permian basins, producing more than 1 million b/d in the nation. Read more :  North Dakota Hits the 1-Million b/d Mark About 28% of gas […]

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Canadian Rail Accidents Involving Dangerous Goods Rose Last Year

Canadian rail accidents involving dangerous goods rose 21% last year from 2012, reflecting a rapid rise in the movement of crude oil by rail. The Transportation Safety Board of Canada recorded 144 rail accidents that involved dangerous goods last year, up from 119 in 2012 and above the five-year average of 133. The figures were contained in the Canadian safety agency’s annual report released Wednesday. Of those accidents, seven resulted in a spillage of dangerous goods, compared with two such incidents in 2012, the agency said. The latest results included the July 6, 2013, derailment of an oil train in Lac-Mégantic, Quebec, which killed 47 people. The report came out a day after the TSB issued its final report on the Lac-Mégantic accident, citing 18 factors that contributed to the derailment, including a weak safety culture at the company that operated the train and lax regulatory oversight. On Tuesday, […]

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Alaska Oil Tax Repeal Measure Losing

An Alaska ballot measure to repeal a 2013 oil tax law that drastically cut the amount major oil companies in the state appeared headed for defeat. The referendum was losing by a 52.2% to 47.8% margin, with all but six of the state’s 441 precincts reporting results by Wednesday morning, but it was still too close to call, according to the Associated Press. The No on One campaign opposed the measure to revive oil tax policies enacted under former Gov. Sarah Palin . The state’s Republican and business establishments waged a $15 million campaign—funded in large part by three oil companies—to defeat the question. Willis Lyford, a spokesman for the No on One campaign, said he expected that the results would hold and the measure be defeated once all the votes were counted. Outspent by more than 15-to-1, supporters of the ballot question wanted to revert to the old […]

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US Gulf Coast crude runs highest on record; crude stocks draw: EIA

* Crude runs at 8.74 million b/d, counter to analysts expectations * USGC imports up despite LOOP closure as Saudi, Mexico flows rebound * Cushing stocks up, weighing on prompt NYMEX WTI, easing strong backwardation * US Atlantic Coast gasoline stocks recover on higher imports * US distillate demand continues over 4 million b/d for third-straight week Crude runs at US Gulf Coast refineries hit a record high last week, up 177,000 b/d to 8.74 million b/d, weekly Energy Information Administration oil data showed Wednesday. This helped to push USGC refinery utilization — which includes feedstocks other than crude — up 2.5 percentage points to a record 96.9% of capacity. Refinery utilization had last been higher at 96.5% of capacity in December 2012, when USGC operable capacity was just 3.72 million b/d. EIA has pegged USGC operable capacity at 3.81 million b/d since May. The increased crude runs helped […]

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Gas transportation system key to boosting power sector's gas use: Oglethorpe

A US Environmental Protection Agency proposal to increase the capacity factor of natural gas-fired combined-cycle power plants to 70% by 2030 is "doable," but only if the country’s gas transportation system is strengthened, officials with a large Georgia generation and transmission cooperative said Wednesday. Oglethorpe Power, which supplies wholesale power to 38 electric cooperatives in the state, could comply with language in EPA’s June proposal to reduce greenhouse gas emissions from the generation sector 30% below 2005’s level by 2030 in part by increasing the use of gas-fired units to the 70% level, CEO Mike Smith said in a second-quarter earnings call. But Smith said transitioning to an era when combined-cycle units provide much of the nation’s baseload power would require a significant expansion of the existing network of gas pipelines. EPA’s proposed rule is "very bullish" on natural gas and would put the fuel into a "very dominant" […]

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Gas transportation system key to boosting power sector’s gas use: Oglethorpe

A US Environmental Protection Agency proposal to increase the capacity factor of natural gas-fired combined-cycle power plants to 70% by 2030 is "doable," but only if the country’s gas transportation system is strengthened, officials with a large Georgia generation and transmission cooperative said Wednesday. Oglethorpe Power, which supplies wholesale power to 38 electric cooperatives in the state, could comply with language in EPA’s June proposal to reduce greenhouse gas emissions from the generation sector 30% below 2005’s level by 2030 in part by increasing the use of gas-fired units to the 70% level, CEO Mike Smith said in a second-quarter earnings call. But Smith said transitioning to an era when combined-cycle units provide much of the nation’s baseload power would require a significant expansion of the existing network of gas pipelines. EPA’s proposed rule is "very bullish" on natural gas and would put the fuel into a "very dominant" […]

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BP Names New CEO of US Shale Unit

BP announced Wednesday that it has named David Lawler chief executive officer of its US Lower 48 Onshore business. Lawler, who brings more than 20 years of industry experience to the role, will begin Sept. 15 and report to Lamar McKay, BP’s Upstream Segment chief executive. Lawler, 46, takes over just months before BP formally establishes a separate business to manage its onshore oil and gas assets in the continental United States. The move is designed to give the business the flexibility it needs to aggressively compete in the rapidly changing market. “With an impressive track record at integrated oil and gas companies as well as independents, Dave is uniquely qualified to lead our onshore business during this exciting transition,” McKay said. “His experience and skills match up perfectly with our goals for the business. I’m confident he will create a competitive and sustainable operation that will be a […]

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A New Frontier for Fracking: Drilling Near the Arctic Circle

Hydraulic fracturing is about to move into the Canadian Arctic, with companies exploring the region’s rich shale oil deposits. But many indigenous people and conservationists have serious concerns about the impact of fracking in more fragile northern environments. Among the dozens of rivers that flow unfettered through the Canadian North, the Natla and the Keele may be the most picturesque and culturally important. They are especially significant to the Dene people of the Sahtu region, which straddles the Arctic Circle in the Northwest Territories. Both of the rivers flow crystal clear out of the Mackenzie Mountains along the Yukon/Northwest Territories border before coming together in their final course to the Mackenzie River. Conoco-Phillips fracking project in Sahtu Photo credit: Conoco-Phillips. A Conoco-Phillips shale oil fracking site in the Sahtu region of Canada’s Northwest Territories. For hundreds — if not thousands — of years, the Mountain Dene people have been […]

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Potential oil window is last gasp for Utica Shale

Tweet YOUNGSTOWN 11 Jim McKinney, senior vice president and general manager from EnerVest, a Houston-based company, said his company believes that with changes in drilling techniques, activity will increase in the oil-rich northern part of the Utica Shale, which includes Trumbull County. “When companies first drilled, they were using the same techniques they were using in the dry- and wet-gas areas of the Utica,” he said. EnerVest has found in Tuscarawas and Guernsey counties that by using more water and sand in the fracking process, there can be success in the oil-rich portions of the Utica, McKinney said. “Oil has different molecules than gas,” he said. Companies were using 200 feet to 250 feet spacing between injections, but for the oil area it needs to be shorter, about 150 feet, McKinney said. “It allows the oil to move more freely toward the well bore,” he said. If the tests […]

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BP Hires Chief to Run its U.S. 'Lower 48' Onshore Business

BP PLC said Wednesday that it hired David Lawler, an executive with U.S. independent petroleum producer Sandridge Energy Inc., to run a separate business unit it is creating for the U.S.’s lower 48 states. The move is part of BP’s plan to restructure its shale-focused U.S. assets in response to the difficulties that it and other big oil companies have had profiting from the shale boom in the country. Mr. Lawler, most recently an executive vice president and chief operating officer of Sandridge, will take over a new business with "separate governance, processes and systems" from the rest of BP, the company said in a statement. He will report to BP’s exploration-and-production chief, Lamar McKay. BP said in March that it would put its lower-48 onshore assets into a new business in an effort to become nimbler and "compete more effectively with the independents," BP CEO Bob Dudley told […]

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BP Hires Chief to Run its U.S. ‘Lower 48’ Onshore Business

BP PLC said Wednesday that it hired David Lawler, an executive with U.S. independent petroleum producer Sandridge Energy Inc., to run a separate business unit it is creating for the U.S.’s lower 48 states. The move is part of BP’s plan to restructure its shale-focused U.S. assets in response to the difficulties that it and other big oil companies have had profiting from the shale boom in the country. Mr. Lawler, most recently an executive vice president and chief operating officer of Sandridge, will take over a new business with "separate governance, processes and systems" from the rest of BP, the company said in a statement. He will report to BP’s exploration-and-production chief, Lamar McKay. BP said in March that it would put its lower-48 onshore assets into a new business in an effort to become nimbler and "compete more effectively with the independents," BP CEO Bob Dudley told […]

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Dozens die in Ukraine in street battles, Donetsk shelling

KIEV/DONETSK Ukraine (Reuters) – Heavy shelling hit residential neighborhoods in Ukraine’s rebel stronghold of Donetsk and government forces fought street battles in other towns on Wednesday as they sought to crush a four-month-old separatist rebellion. The forces of the Western-backed Kiev government are steadily gaining the upper hand over the separatists in Russian-speaking eastern Ukraine and are tightening the noose around the main rebel bastions of Donetsk and Luhansk. Reuters reporters in Donetsk said mortar bombs had struck Chelyuskintsev Street in the north of the city, a few km (miles) from the frontline of the conflict, shattering the windows of several five-floor apartment buildings and shearing off the branches of trees and downing power lines. The attack left large craters in the street and a meter-wide hole in the first floor of one of the apartment buildings. "The Ukrainian army or whoever they are – they’re bombing us again. […]

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Ukraine Fight With Rebels Intensifies as Deaths Mount

Ukraine ’s armed forces said they continue to push back separatists in fighting in the country’s east, as the death toll from the conflict, already more than 2,000, mounted further. Ukraine’s National Guard captured the city of Ilovaysk, leading rebels to counter-attack with tanks and artillery, the force said today on its website. Nine Ukrainian servicemen died and 22 were wounded in the past 24 hours, military spokesman Andriy Lysenko said in Kiev. He later told reporters that government troops control a “significant” part of Luhansk, one of the main separatist strongholds. Thirty-four civilians were killed and 29 hurt in Donetsk, the other redoubt, in the past 24 hours, the regional administration said. “It’s a question of the next month for the rebels to either be defeated or for Russia to send in far larger forces to stop their defeat,” Joerg Forbrig, senior program officer for central and eastern […]

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Europe could learn from U.S. shale success

Europe may be on the cusp of developing a shale natural gas sector that could mimic the expansion in the United States, analysis from finds. Developments in hydraulic fracturing, or fracking, and horizontal drilling have led to exponential increases in U.S. natural gas production since at least 2005. Geological complexities have presented obstacles to a replication of the phenomenon outside the United States. Robert Clarke , director of research into the area for Wood Mackenzie, said U.S. shale gas production has evolved from operations in easy-to-reach and highly productive basins to what he’s describing as "unconventional 3.0" — a phase characterized by a lessons-learned approach to areas once considered too difficult for commercial drilling. "Europe is one of the best areas outside of the United States for this to occur," he said Wednesday in an e-mailed statement. His report says countries outside the United States — notably Mexico, Russia, […]

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Slovakia plants seed in Ukrainian gas sector

Slovakia and Ukraine have laid the preliminary groundwork for a long future in the natural gas sector, the Slovakian minister of economy said from Kiev. The Ukrainian government this week said testing began to send 70 million cubic feet per day from Slovakia to Ukraine through the joint work of transit companies Uktransgaz and Eustream. Ukrainian Energy Minister Yuri Prodan hosted Slovakian Minister of Economy Pavol Pavlis in Kiev to discuss the prospects of a new relationship in the natural gas sector . "Small reverse flow will become a basis for further collaboration between Slovakia and Ukraine," Pavlis said in a statement. Russian energy company Gazprom in June cut gas supplies to Ukraine because of lingering contractual disputes. Most of the Russian gas sent through Ukraine heads to European consumers and the Ukrainian energy minister said his country was still a reliable transit nation. "The Ukrainian side stands technologically […]

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Russia-China deal will supply Siberian natural gas to China’s northern, eastern provinces

Source: U.S. Energy Information Administration, International Energy Outlook 2013, IHS Energy, Eastern Bloc Research Note: Volumes shown for Russia-China gas deal assume minimal contract obligations. Increases in these volumes will lessen the amount needed from LNG imports and other contracts. China’s natural gas demand has been growing as the government seeks to move away from coal in favor of cleaner fuels. According to EIA’s International Energy Outlook 2013 (IEO2013) Reference case, demand will more than triple from 5.2 Tcf in 2012 to 17.5 Tcf by 2040. Russia’s largest natural gas company, Gazprom, finalized a deal with the Chinese National Petroleum Corporation (CNPC) in May. Under the first phase of the new 30-year contract, Russia will supply China 38 billion cubic meters (bcm), or 1.3 trillion cubic feet (Tcf), per year of natural gas starting in 2018. Future phases could increase this volume to as much as 60 bcm (2.1 […]

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Brent Rebounds From 14-Month Low on Speculation Losses Excessive

Brent crude rebounded from its lowest closing level in 14 months amid speculation that losses have been excessive amid risks to Middle Eastern supply. West Texas Intermediate was steady before U.S. inventory data. Brent futures advanced as much as 0.8 percent in London , having lost 5.1 percent in the past month. Iraqi security forces stepped up attacks against Islamic State militants after ousting fighters from the country’s largest dam with U.S. air support. Crude stockpiles in the U.S. probably dropped by 1.75 million barrels while gasoline and distillate supplies shrank for a third week, a Bloomberg News survey shows before an Energy Information Administration report. “It would take extraordinary circumstances to drive prices lower on a sustained basis,” analysts at JBC Energy GmbH in Vienna said in a report. “We thus see prices slowly recovering over the coming months to levels back above $105.” Brent for October settlement […]

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Natural Gas Rising on Warming Weather Forecasts

By Timothy Puko NEW YORK–Natural-gas prices briefly surged Tuesday morning as updated weather forecasts suggested warmer weather and a short-term bump in demand. Natural gas for September delivery is up 8.7 cents, or 2.3%, at $3.879 a million British thermal units on the New York Mercantile Exchange. The contract bounced off of a nearly nine-month intraday low on Monday and has now returned to the middle of its 23-cent trading range from the past month. Several weather models are showing the potential for increased heat for the next week, especially in the south and the Midwest. Hot weather leads to increased demand for air conditioning and the gas-fired electricity that powers it. There have also been recent signs that power plants are using a higher proportion of gas, relative to coal, as gas prices have hit their lowest points of the year. "Perhaps there’s a temporary bottom," said Anthony […]

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Militants attack major air base in eastern Syria

BEIRUT (AP) — Activists say Islamic extremists have launched an attack on a major air base in northeastern Syria, aiming to seize the last position held by the Syrian government in a province that is an Islamic State stronghold. The attack on the Tabqa air base had been expected for weeks. Islamic State fighters have tightened their siege of the sprawling facility in recent days, capturing a string of nearby villages. The group has virtually eliminated the military’s presence in the Raqqa province, with the exception of Tabqa. Wednesday’s attack was announced on militant websites. It was also reported by the Raqqa Media Center, an activist collective, which reported fierce clashes around the facility accompanied by government airstrikes. The Britain-based Syrian Observatory for Human Rights also reported the clashes.

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Iraq Ups Oil Output in South, as Militants Stem Northern Production

The West Qurna oil field in Basra, southeast of Baghdad, as seen in March. Output from the area is underpinning the country’s militant-threatened oil production. Reuters LONDON—Iraq is pushing forward with an ambitious increase in production at its prolific southern oil fields, as an Islamist insurgency has strangled output in the country’s north. Russian oil company Lukoil Holdings said on Tuesday that output at its West Qurna II field has reached over 280,000 barrels a day from 120,000 barrels a day when it first started pumping from the field in March. West Qurna II is one of several large tracts under development and is crucial to Iraq’s ambitious plans to ramp up output from its southern fields, which have remained shielded from the violence in the north of the country. The country, the second-largest producer in the Organization of the Petroleum Exporting Countries, is targeting output of around 8.4 […]

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Kurds take tough line as Abadi races to form Iraq government

Iraqi prime minister-designate Haider al-Abadi Iraqi prime minister-designate Haider al-Abadi The threat of Iraq’s collapse has forced conciliatory tones from the country’s Sunni and Shia Arab populations – but the Kurds, once the kingmakers of Iraqi politics, are vowing to play hardball. Prime minister designate Haidar al-Abadi has 20 days to put together a cabinet, and foreign powers are pressing for a national unity government that can bring Iraq’s main parties together and slowly heal divisions along sectarian and ethnic lines. More On this story On this topic IN Middle East & North Africa The race to reach the political consensus Iraq needs to unlock greater foreign and internal support for its fight against the Islamic State of Iraq and the Levant (known as Isis) takes place as its army, Kurdish peshmerga fighters and Shia militias separately battle to contain the territorial gains made by the group in a […]

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In Retaking of Iraqi Dam, Evidence of American Impact

MOSUL DAM, Iraq — The two bodies lay festering in the midday sun on Tuesday, some of the only remnants of the Sunni militant force that until Monday night controlled the strategically important Mosul Dam. Around them was the evidence of not just a fierce battle but also a different sort of fight: buildings reduced to rubble; cars churned into twisted metal; mammoth craters gouged from the road. All bore testament to the deadly effect American airstrikes were having on the militants of the Islamic State in Iraq and Syria, or ISIS, who until this month were marauding over northern Iraq with little resistance and who two weeks ago seized control of the dam. It was not until President Obama authorized airstrikes by the United States military on Aug. 7 that the Sunni fighters’ advance was halted. Two days of concerted air assaults starting Sunday around the dam then […]

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Iraq army advances towards rebel-held Tikrit

Iraqi forces have launched an operation to retake Tikrit, the hometown of toppled President Saddam Hussein, from Islamic State fighters. Al Jazeera sources reported that the troops were advancing from the south and southwest and heavy clashes with the armed group were taking place 10km from the the city, capital of Salahidin province and located about 200km north of Baghdad. Tikrit fell to the group formerly known as ISIL on June 11 and has since been controlled mostly by Sunni armed groups, including former members of Saddam’s ruling Baath party. "We have to remember Tikrit is an urban city so there’s going to be fighting in urban areas. The army had abandoned their positions in much of the Sunni heartland in June when the IS group took control of that territory," Al Jazeera’s Zeina Khodr reported from Erbil. "There’s a real risk of this becoming a Sunni-Shia war because […]

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Next Leader May Echo Maliki, but Iraqis Hope for New Results

BAGHDAD — The last time the United States pushed Iraqis to choose a new prime minister who could unite the country to confront a sectarian civil war was in 2006, and the Iraqis chose Nuri Kamal al-Maliki. The result was another civil war. This time, with the country again on the edge of collapse, they have chosen Haider al-Abadi. Both men come from the same Shiite Islamist movement whose members, after decades of clandestine opposition to Saddam Hussein and the Sunni elite that dominated his rule, were asked to govern Iraq in an inclusive way that accommodated the Sunnis they considered their former tormentors. So far, that has proved elusive, but this time hope rests on a belief that Mr. Abadi is a different type of Islamist: one whose education, big-city upbringing and decades of living in Britain can surmount what have seemed the reflexive positions of Iraqi Shiite […]

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Iraq Ups Oil Output in South, as Militants Stem Northern Production

The West Qurna oil field in Basra, southeast of Baghdad, as seen in March. Output from the area is underpinning the country’s militant-threatened oil production. Reuters LONDON—Iraq is pushing forward with an ambitious increase in production at its prolific southern oil fields, as an Islamist insurgency has strangled output in the country’s north. Russian oil company Lukoil Holdings said on Tuesday that output at its West Qurna II field has reached over 280,000 barrels a day from 120,000 barrels a day when it first started pumping from the field in March. West Qurna II is one of several large tracts under development and is crucial to Iraq’s ambitious plans to ramp up output from its southern fields, which have remained shielded from the violence in the north of the country. The country, the second-largest producer in the Organization of the Petroleum Exporting Countries, is targeting output of around 8.4 […]

Posted On : Published By : Tom Whipple