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Alaska’s governor upset with BP move

JUNEAU, Alaska, Sept. 16 (UPI) — Sean Parnell BP announced layoffs as the result of the April sale of some of its assets in the North Slope to Houston-based energy company Hilcorp. "I’m extremely disappointed in this action," Parnell said in a statement Monday. "When I spoke with BP Alaska President Janet Weiss today, she assured me that BP remains on track for the new rigs planned for the North Slope and for new investment promised to Alaskans." BP said the assets sold to Hilcorp represent about 19,700 barrels of oil equivalent per day in production, or less than 15 percent of BP’s net production on the North Slope. The British company said the sale has no impact on its operations at the Prudhoe Bay oil field, where BP said it plans to deploy two new drilling rigs by 2016. Parnell’s office said he was confident those laid off […]

Posted On : Published By : Tom Whipple
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Fracking Bans Enrage Coloradans Sitting on Energy Riches

Mineral owners left out of the energy boom in Colorado and other states are mobilizing to fight local fracking bans they say are depriving them of billions of dollars in oil and natural-gas royalties. Colorado Governor John Hickenlooper repeatedly invoked the rights of his state’s 630,000 royalty holders to head off ballot measures that would have given local governments more control over energy drilling. Now owners of royalty interests are going public, organizing in an effort to exploit deposits that cities and counties have blocked them from developing. “We have valuable minerals in the Niobrara that may be worth some money — a lot of money,” Bill Peltier said of rights in an oil shale formation that his family has held for five generations. “They should pay me off for those mineral rights.” Mineral owners are emerging as a potent force in the escalating battle between residents and producers […]

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EPA Extends Comment Period on Climate Rules

WASHINGTON—The Obama administration said Tuesday it is allowing more time for the public to weigh in on draft regulations controlling carbon emissions from hundreds of fossil-fuel power plants across the country after a majority of senators called for the extension. The Environmental Protection Agency said Tuesday it was extending by 45 days its public-comment period that was originally scheduled to end Oct. 16. In a letter to EPA Administrator Gina McCarthy last week, 53 senators, including several Democrats up for re-election this year, urged the administration to allow 60 more days; the comment period was originally 120 days. The new closing date is Dec. 1. Announced on June 2, the proposed rule seeks to cut carbon emissions from the nation’s power plants 30% by 2030 based on emissions levels from 2005. EPA has set different standards for each state, based upon regional energy mixes and what the agency has […]

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White House says it will veto Republican-backed energy bill

Washington (Platts)–16Sep2014/428 pm EDT/2028 GMT The White House on Tuesday said it plans to veto a sweeping energy bill the Republican-controlled House is expected to approve this week. In a statement of administration policy, the White House’s Office of Management and Budget said the bill, HR 2, could imperil oil and gas pipeline approvals and endanger public health and the environment. The bill "runs contrary to the administration’s commitment to promoting safe and responsible domestic oil and gas development as part of an all-of-the-above energy strategy to increase domestic production and reduce dependence on foreign oil while protecting the environment and human health," the White House said. The bill was never seen as likely to get through the Democrat-controlled Senate, let alone to President Barack Obama’s desk. The House package, which is seen as highlighting the House’s energy priorities going into the next Congress, combines several previous bills, such […]

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BP To Cut 275 Jobs In Alaska After Oil Field Disposals

LONDON, Sept 16 (Reuters) – BP will cut around 275 staff and contractor jobs in its Alaska operations in early 2015 following the sale of its interests in four oil fields in the North Slope area, it said on Tuesday. BP, one of the largest oil producers in Alaska, last April announced the sale of the fields to privately held Hilcorp, though it remains committed to developing Alaska’s Prudhoe Bay, the largest oil field in North America. BP has a total of 8,300 employees and contractors in Alaska, according to its website. Its plans for expansion in Alaska include an additional investment of $1 billion over five years, including two additional drilling rigs, one in 2015 and a second in 2016. "The Alaska business is still very important to BP. It’s just a smaller business than it was before," a BP spokesman said. BP is also considering production of […]

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Denmark – the last of a dying breed

Denmark is the European Union’s (EU) only net exporter of oil. The Nordic state’s oil exports totalled approximately 13.7 million barrels of oil equivalent in 2013. This is in stark contrast to the EU’s only other significant oil producer, the UK, which became a net importer in 2004 and has experienced a steep decline in output since, as its historically productive North Sea fields reach extreme maturity. Denmark has maintained its status as a net exporter despite peak oil production in 2004. A strong shift towards wind power has seen a decrease in oil used for electricity generation while district heating systems traditionally fuelled by oil are now switching to natural gas and renewable sources. Denmark’s ability to hold on to its status as the EU’s last net exporter is likely to diminish in the long-term. Its North Sea fields continue to stutter and decline in output, seeing production […]

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BP Seeks Access to $750 Million Transocean Insurance

BP Plc (BP/) , which has paid more than $28 billion for the 2010 Gulf of Mexico oil spill, asked a Texas court to let it tap into $750 million in Transocean Ltd. (RIG) ’s insurance policies on the doomed Deepwater Horizon rig. BP filed claims with Transocean’s carriers in 2010, seeking to tap a $50 million primary policy issued by Ranger Insurance and $700 million in excess coverage from Lloyd’s of London and other underwriters. The carriers asked the court overseeing the spill litigation to rule that BP wasn’t entitled to unlimited access to Transocean’s insurance. BP lost its battle for coverage at a lower court, won reversal on appeal, then saw that victory erased last year as the U.S. Court of Appeals in New Orleans withdrew its original opinion. The panel sent the case to the Texas Supreme Court , which held oral arguments today in Austin, […]

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Russian Central Bank Fears Weak Oil Price Could Threaten Economy

The headquarters of Russia’s central bank in Moscow. The Bank of Russia said that inflationary expectations among households increased in August. Bloomberg News MOSCOW—The Bank of Russia said that the ruble and the Russian economy could be hit by sliding prices for commodities—the country’s key exports—if oil prices fail to recover in the midterm. The ruble hit fresh all-time lows on Tuesday, weakening to 38.93 against the dollar, as banks and companies bought foreign currencies and external markets remained largely closed to Russian borrowers. A drop in the price of Brent crude to $98 per barrel from above $115 three months ago has added to downward pressure on the ruble. In a quarterly report on its monetary policy, the central bank said that it forecasts prices for Urals crude blend, which usually trades a bit lower than Brent, to recover above $100 per barrel in the next few quarters. […]

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Russian crude oil exports seen down 6pc in Q4

MOSCOW: Exports of seaborne Russian Urals and ESPO crude oil blends were seen declining by 6.2 percent to 50.17 million tonnes in the last three months of the year from the previous quarter, traders said on Monday, citing a quarterly loading schedule. Russia has been cutting crude oil exports as it has increased production of oil products from its refineries. Traders also said that the Black Sea port of Novorossiisk is expected to load 7.4 million tonnes next quarter, down from 8.86 million tonnes. However, shipments of Azerbaijan crude via the port in the fourth quarter has not been yet agreed. Russian crude exports from the Baltic Sea port of Primorsk were seen down to 11.5 million tonnes in the fourth quarter from 12.5 million tonnes in July-September. Shipments from the neighbouring port of Ust-Luga were scheduled unchanged, at 6.5 million tonnes. Fourth-quarter ESPO crude exports from the Pacific […]

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Ukraine Truce Wobbles as Eastern Regions’ Power Expanded

The cease-fire in Ukraine showed more signs of strain as rebels questioned further peace talks with the government, even after lawmakers in Kiev approved a special status for the country’s two easternmost regions. Some separatist groups called for a renewed offensive and a rebel leader accused the government of violating the terms of a truce signed Sept. 5. Clashes continued near Donetsk, the largest city in the conflict zone, including near the airport, site of some of the heaviest fighting. The uncertainty about the peace process overshadowed the ratification of Ukraine’s association agreement with the European Union on the same day that lawmakers approved a bill expanding the powers of the Donetsk and Luhansk regions. The law falls short of Russia’s demands, according to Otilia Dhand, an analyst at Teneo Intelligence in London . “The key point, the right of regions to influence foreign policy decisions, is not included,” […]

Posted On : Published By : Tom Whipple