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Exxon grabs more Permian shale

IRVINE, Calif., Sept. 19 (UPI) — Exxon Mobil said it added to its portfolio in the Permian shale basin in Texas in exchange for a portion of its field operations in California. Exxon under the terms of a non-monetary exchange with LINN Energy gets 17,000 net acres in the Permian basin in exchange for 500 acres at its Belridge field in California. Permian production increased 58 percent from 2007 to reach 1.35 million barrels per day last year, which represents 18 percent of total U.S. crude oil production. Exxon said the Belridge field is producing approximately 3,400 bpd. The Permian area will be operated by Exxon’s subsidiary XTO Energy Inc. "We continue to expand our leasehold position in a prolific area that is poised for profitable volumes," Randy Cleveland, president of XTO Energy, said in a Thursday statement. For LINN, it said it would examine 300 potential future drilling […]

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House wants more energy in era of record production

| License Photo WASHINGTON, Sept. 19 (UPI) — A bill that passed through the U.S. House of Representatives will bring relief to consumers feeling the "squeeze" of high gasoline prices, backers say. The House of Representatives passed a measure largely along party lines that supporters said would lower energy prices and expand U.S. energy production. House Natural Resources Committee Chairman Doc Hastings , R-Wash., said the bill came in response to bureaucratic red tape getting in the way of true U.S. energy potential . The measure is "a common sense" approach to "provide relief to hardworking Americans who are feeling the squeeze of higher gasoline and electricity prices, reduce burdensome government barriers to American energy production, and increase America’s energy security," he said in a statement Thursday. The American Petroleum Institute, which represents the business interests of the energy sector, said permits for everything from the Keystone XL oil […]

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Surging Gas Supply Masks Risk of Winter Price Shock

Gas traders betting that ample supply will limit price gains risk a repeat of last winter’s rally as forecasts for another frigid season raise the specter of supply constraints. AccuWeather Inc. and Commodity Weather Group LLC predict below-normal temperatures for much of the U.S. this winter. The price difference between gas for delivery in October and January is the narrowest for this time of year since 2000, a sign that the market views stockpiles as adequate to meet peak heating demand. Goldman Sachs Group Inc. cut its forecast for average gas prices in the fourth quarter of this year and throughout 2015 to $4 per million British thermal units from $4.25, citing a mild summer and rising production. Last winter, a polar vortex left gas supply at an 11-year low and sent futures to a five-year high. Gas inventories will enter the heating season at the lowest level for […]

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No means yes for Scotland, energy companies say

| License Photo LONDON, Sept. 19 (UPI) — After a "no" vote, British energy company BP said Friday it would work closely with the governments in Edinburgh and London to boost North Sea recovery. More than half of the voters taking part in a Thursday referendum for independence from the United Kingdom chose to continue on with 307 years of unity. BP said it would stay on with its commitments in the North Sea . "BP will continue to work closely with both the UK and Scottish governments to realize our shared ambition of maximizing economic recovery from the North Sea," the company said. Scotland said independence would have drawn in substantial oil and gas wealth in the North Sea, with power coming from renewable resources. Edinburgh touted the revenue potential on the day of the referendum. Analysis this week from Wood Mackenzie found that while most of the […]

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Exxon Gets U.S. Sanctions Extension to Shut Russian Arctic Well

Exxon Mobil Corp. (XOM) said the U.S. government is giving the company more time to shut its Russian Arctic well beyond the deadline for sanctions aimed at halting the $700 million project. Exxon asked Washington for an extension to allow it to continue performing shut-down work on the Universitetskaya-1 (University-1) well in Russia ’s Kara Sea to make sure the well was safe before it’s temporarily abandoned. The Irving, Texas-based company already had ceased drilling the offshore well after U.S. sanctions set a Sept. 26 deadline for ending the work. “The U.S. Treasury Department, recognizing the complexity of the University-1 well and the sensitive Kara Sea arctic environment, has granted a license to Exxon Mobil and other U.S. contractors and persons involved to enable the safe and responsible winding down of operations related to this exploration well,” Exxon said in a statement today. The most-recent round of sanctions intended […]

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EIA: Russia diversifying energy production

WASHINGTON, Sept. 19 (UPI) — Russia is looking to develop energy in hard-to-reach areas as legacy production falls from its peak, the U.S. Energy Information Administration found. EIA said Russia typically depends on oil and gas fields in West Siberia. Production there has fallen from peak production levels in the 1980s and companies like Rosneft and Gazprom Neft are looking at new prospects. Last year, Russia was the largest producer of crude oil and condensate and the second-largest producer of natural gas. Oil production in 2013 increased 1.3 percent and gas by 2.1 percent. "However, new technologies, growing Asian markets, and Western sanctions have the potential to shift the regional balance of Russian oil and natural gas production in the long term," EIA said. Last week, Russian oil company Gazprom Neft said it reached a milestone with the production of its 1 millionth barrel of oil from the arctic […]

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Gazprom: Europe our top priority

MOSCOW, Sept. 19 (UPI) — Though China is becoming an important business partner, the European market is the prime destination for Russian gas, the CEO of Gazprom said Friday. Chief Executive Officer Alexei Miller said Russian gas would account for 64 percent of European imports this year, up 17 percent from four years ago. "The European market is No. 1 for us, and we are Europe’s No. 1 gas supplier," he said. Gazprom officials have expressed interest in moving deeper into a growing Asian economy in an effort to offset a stagnant European Union. Construction started this month on the 2,500-mile Power of Siberia natural gas pipeline to carry Russian gas to China. A contract between Russian natural gas company Gazprom and China National Petroleum Corp. is for 30 years and calls for 1.3 trillion cubic feet of natural gas per year. Russia’s role in the European energy sector […]

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Russian bank boss feeling sanctions pain

MOSCOW, Sept. 19 (UPI) — Last week, the European Union enforced a new round of sanctions targeting Russian energy efforts in shale, arctic oil and deep waters. The U.S. and European governments already have imposed punitive sanctions on Russian energy companies Rosneft, Gazprom Neft and others in response to the crisis in Ukraine. Herman Gref, the director of Russian bank Sberbank, told Rossiya-24 television the sanctions, which extend into the banking realm, were taking their toll . Russian Prime Minister Dmitry Medvedev said earlier this month the government had a responsibility to support companies like Rosneft , controlled in part by the Kremlin. The European Bank for Reconstruction and Development said sanctions "have negatively affected business confidence in Russia."

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Exxon winds down Russian Arctic drilling campaign

Cold world: sanctions against Russia have raised questions on the future of expensive projects in the Kara Sea north of Siberia Cold world: sanctions against Russia have raised questions on the future of expensive projects in the Kara Sea north of Siberia ExxonMobil , the US oil company, is winding down its drilling campaign in the Russian Arctic , making it the biggest corporate casualty of sanctions announced by the US and EU this month, by putting its $700m project on indefinite hold. The company said on Friday that the US Treasury had granted it a short term licence “to enable the safe and responsible winding down of operations”, but said there would be no further extensions. More On this topic IN Oil & Gas It added that it would be bringing to an end all activities associated with the project, a joint venture with Russia’s Rosneft , “as […]

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Russia looks beyond West Siberia for future oil and natural gas growth

Russia was the world’s largest producer of crude oil (including lease condensate) and the world’s second-largest producer of dry natural gas in 2013. In 2013, production of crude oil and lease condensate grew by 1.3%, and production of dry natural gas grew by 2.1%. Most of Russia’s crude oil and natural gas production occurs in West Siberia, a part of central Russia that stretches from the northern border of Kazakhstan to the Arctic Ocean. However, new technologies, growing Asian markets, and Western sanctions have the potential to shift the regional balance of Russian oil and natural gas production in the long term. In 2013, production of oil and natural gas in West Siberia totaled 6.2 million barrels per day of crude oil and 21.1 trillion cubic feet (Tcf) of natural gas, respectively, down from peak production levels in the 1980s. Russian energy companies Rosneft and Gazprom Neft have increased […]

Posted On : Published By : Tom Whipple