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Report: Pennsylvania gas lines leaking

PITTSBURGH, Sept. 24 (UPI) — Billions of dollars are needed to update the vast network of natural gas pipelines, some at least 90 years old, beneath Pennsylvania, a newspaper report found. About 20 percent of the natural gas pipelines in Pennsylvania were installed before 1960, twice the average national age of pipeline infrastructure. Data compiled by the Pittsburgh Tribune-Review found a gas leak reported in one out of every three miles of pipe last year, making it one of the leakiest networks in the United States. "We have a ticking time bomb under most of our cities, especially in the Northeast where we have older cities," Allentown Mayor Ed Pawlowski said in a report published Tuesday. Gas explosions in the last 10 years left 10 people dead and 21 others injured, the Tribune found. Pennsylvania is home to the Marcellus shale natural gas basin . Energy consultant group Wood […]

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Under threat, California looks to greener future

PALM SPRINGS, Calif., Sept. 24 (UPI) — Deputy Interior Secretary Michael Connor unveiled a report showing winter runoff will increase , but decrease in the spring because of changing temperature patterns. That means water reservoirs will fill up earlier in the season, which will have an impact on everything from irrigation to ecosystems and hydropower generation. "This assessment is one of several that studies climate risks to water supplies and related resources in river basins in the western United Sates," Connor said in a Tuesday statement. His comments coincided with the release by Interior Secretary Sally Jewell and California Natural Resources Agency Secretary John Laird of a draft renewable energy and conservation plan covering more than 22 million acres in the California desert. The proposal calls for setting aside land for nature conservation while at the same time assessing where it’s appropriate to develop solar, wind and geothermal energy […]

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More David Archibald on LTO plus Net Imports

David Archibald has recently revised his peak date for shale oil. The below was contained in a recent post I received from him: Ron, For what it is worth, just to let you know that I have recanted on my estimate of US LTO production. This is from reading the presentations put out in September by the US independents.   I started with the EOG presentation and then worked through the others that EOG referred to.  If Hubbert-type analysis works for LTO, it may be too early to apply it. The rig count for the Bakken etc may be down to flat but the fraccing units are pumping a lot more sand and the economics of fraccing have improved a lot over the last two years.  That in turn means that the resource is larger at a given IRR cutoff.  This is currently my best guess of the three major […]

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Canadian PM Says US Will Approve Keystone XL Pipeline Eventually

NEW YORK, Sept 24 (Reuters) – Logic dictates that the United States will one day approve the northern leg of TransCanada Corp’s controversial Keystone XL crude oil pipeline, Canadian Prime Minister Stephen Harper told an audience of executives in New York on Wednesday. "I’m not going to speculate on timelines other than to say the obvious benefits and merits of the project…. mean that the logic is it will be approved at some point in the future," he said. "I think its eventual approval under the right circumstances is inevitable." Harper also said that while increased U.S. oil production has changed the economics of the industry, the need for the pipeline has not vanished. "Obviously there’s been a great growth in United States energy production capacity. We view that as a good thing but … American self-sufficiency is a long way off," he said. The debate in the United […]

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North Dakota Oil Producers Resist Wholesale Safety Overhaul

BISMARCK, North Dakota, Sept 23 (Reuters) – Hess Corp and other major North Dakota oil producers told the state’s top energy regulators on Tuesday that existing field practices used to prepare Bakken crude for rail transport are safe, and tighter standards could do more harm than good. The comments, at a special hearing of the North Dakota Industrial Commission (NDIC), came as federal, state and local officials grapple with how to ensure the safe transport of the state’s crude oil. The matter has come under increased scrutiny after a string of crude-by-rail explosions, including one last year in Quebec that killed 47 people. The NDIC asked companies, academics and others to testify about how regulatory changes could affect the safety of Bakken crude oil and producers’ costs. The NDIC has not set a timeline for any decisions. Oil producers laid out in detail the methods they say make the […]

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The Most Consumed Fuel by State

Most Consumed Fuel by State bobinget on Wed, 24th Sep 2014 7:41 pm  Oh btw, NYMEX will finally be going higher due to an inventory shortfall reported this AM. http://www.eia.gov/petroleum/supply/weekly/pdf/highlights.pdf (excerpt) Total products supplied over the last four-week period averaged about 19.4 million barrels per day, up by 1.5% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged 8.9 million barrels per day, and remained unchanged from the same period last year. Distillate fuel product supplied averaged over 3.7 million barrels per day over the last four weeks, down by 0.2% from the same period last year. Jet fuel product supplied is up 3.4% compared to the same four-week period last year. posted note: if one opens above link, note that gasoline production was lower DESPITE increased consumption. This Did Not result in an increase in crude inventories as would be expected. […]

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Ukraine Urges Rebel Withdrawal as Obama Presses Moscow

Ukraine urged pro-Russian separatists to stop shelling government troops and start withdrawing their heavy weapons, while President Barack Obama said Russia must choose peace to have U.S. sanctions lifted. Separatists shelled government troop-held Donetsk airport and a checkpoint in the area, wounding eight servicemen, military spokesman Andriy Lysenko told reporters in Kiev today. He said Russia provided no information to Ukraine about the content of a fourth aid convoy that is on its way to the region. Russia denies U.S. and European Union allegations that it’s stoking the unrest in eastern Ukraine. NATO said yesterday Russia has embarked on a “significant” withdrawal of its forces from Ukraine, adding to signs that the truce is holding between the government in Kiev and separatist groups. The conflict, which erupted after Russia annexed Crimea in March, has killed more than 3,200 people, the United Nations estimates. Obama, in a speech today to […]

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WTI Trades Near 16-Month Low Before Stockpile Data; Brent Steady

West Texas Intermediate traded near the lowest price in more than 16 months on estimates that crude inventories increased last week in the U.S., the world’s biggest oil consumer. Brent was steady in London . Futures were little changed in New York and London. Crude stockpiles probably expanded by 750,000 barrels last week to 363 million, according to a Bloomberg News survey before an Energy Information Administration report today. Saudi Arabia and Qatar are among countries that joined the first wave of U.S.-led air strikes in Syria against Islamic State. “Weak demand, rather than rampant supply growth, is currently the Achilles heel of the market,” Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd., said in a report. “Even in the U.S., despite strong economic momentum, most of the post-recessionary increase for oil demand is now largely behind us.”  WTI for November delivery was at $91.77 a barrel […]

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Natural Gas: Injections Soon To Turn Into Withdrawals

Summary The price of natural gas is volatile. Last year’s cold winter depleted inventories. This summer inventories were rebuilt, but remain below last year’s level and the five-year average. A cold winter this year will cause natural gas prices to explode. Natural gas is one of the most volatile commodities that trade. The New York Mercantile Exchange (NYMEX) introduced futures on Henry Hub natural gas in April 1990. Henry Hub is a distribution hub on the natural gas pipeline system in Erath, Louisiana owned by Sabine Pipe Line LLC, a subsidiary of Chevron Corporation. Since 1990, active month natural gas futures have traded in a range between a low of $1.02 per million British thermal units (mmbtus) in January 1992 and a high of $15.65 per mmbtus in October 2005. Price spikes to the upside in 2005 and again in 2008 were due to hurricane activity in the Gulf […]

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Gas prices end long slide

WASHINGTON, Sept. 23 (UPI) — AAA lists a national average price of $3.34 for a gallon of regular unleaded, an increase of about 0.5 percent from Monday’s average. Prices for Brent crude oil, the international benchmark, increased Tuesday following reports of improvements in Chinese manufacturing and U.S.-led airstrikes on Islamic State targets in Syria. Military conflict in the Middle East could spark wider security concerns in the broader oil-rich region. Chinese manufacturing data, meanwhile, tempers some of the worries about the slowdown in the Chinese economy. Meanwhile, the Organization of Petroleum Exporting Countries said it may cut back on production to make room for output coming from North America. The U.S. Energy Department explains oil prices account for 65 percent of what consumers see at the gasoline pump . Gasoline prices in the United States typically decline after the Labor Day holiday as refiners switch to a cheaper winter […]

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Iran Sees Oil Prices Falling to $90 a Barrel By Late March

Oil prices will likely fall to $90 a barrel by the end of the winter, Iran’s head of oil sales was quoted as saying Tuesday, countering views by other producers that expect prices to rebound. The remarks come after members of the Organization of the Petroleum Exporting Countries said in recent days they expect oil prices to rebound after it fell below $100 a barrel earlier this month. But in remarks carried by Iran’s oil ministry website Shana, Mohsen Ghamsari, the director at the National Iranian Oil Company in charge of international oil sales, said that "if the oil market only looks at supply and demand, the oil price will further decline in the global market." Though it has fallen in recent weeks, the Brent oil contract—the most widely traded in the world—has remained above $95 a barrel. But Mr. Ghamsari said "the oil price will likely fall to […]

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Abadi shakes up military leadership after Anbar massacre

Abadi shakes up military leadership after Anbar massacre Iraqi Prime Minister Haider al-Abadi (second from left) and Foreign Minister Ibrahim al-Jaafari (third from left) meeting with Arab leaders and U.S. President Barack Obama and advisors Sept. 23, 2014 in New York City ahead of the annual UN General Assembly. (SPENCER PLATT/Getty Images) Iraqi Prime Minister Haider al-Abadi has fired two top army officials and announced a significant change to the chain of command, after anti-government militants ambushed and killed dozens of Iraqi soldiers Sunday in Anbar province.The move to retire Joint Operations Commander Lt. Gen. Abboud Qanbar and Commander of Ground Forces Lt. Gen. Ali Ghaidan comes a day after Abadi issued "arrest warrants against regiment commanders who lacked due diligence in their performance of their duty in Saql… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase […]

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OPEC Output-Target Cut Not Agreed Yet, U.A.E. Oil Minister Says

OPEC nations have yet to decide to cut their collective oil-production target, the United Arab Emirates’ energy minister said, days after the group’s chief suggested its 12 members may lower the ceiling in 2015. “It’s not a one-man decision,” Suhail Al Mazrouei told reporters today in Abu Dhabi . “It’s a decision by all the ministers when we meet.” The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will review its target of 30 million barrels a day when it meets next on Nov. 27 at its Vienna headquarters. The group may reduce its official daily limit by 500,000 barrels to 29.5 million next year, OPEC Secretary-General Abdalla El-Badri said Sept. 16. OPEC’s monthly report on Sept. 10 showed demand for its oil will decline to 29.2 million barrels a day in 2015 from 29.5 million this year. Brent crude , a global […]

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Saudi Refinery Hits Capacity as Total, Vitol See EU Slump

Saudi Arabia ’s newest oil refinery reached full capacity last month, adding to international competition that Total SA and Vitol SA said will force more European plants to close. The Satorp refinery, a venture between Total and Saudi Arabian Oil Co., processed crude at full capacity of 400,000 barrels a day on Aug. 1, Patrick Pouyanne, Total’s president of refining and chemicals, said at a conference in Brussels today. Europe ’s refineries are too small and not sophisticated enough to compete with new plants, Chris Bake, executive director at Vitol, the world’s largest oil trader, said at a separate conference in Fujairah, in the United Arab Emirates . “Rationalization is a necessity for Europe,” Pouyanne said at the Platts European Refining Summit. “We are facing a global overcapacity” and companies in Europe should close about 10 percent of refining capacity by 2020 because of falling domestic demand and rising […]

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Bentek Energy: ND Bakken Hit 1.2 Million b/d – Aug. 2014

ND Pump Jack Photo ND Pump Jack | Click to Enlarge Combined oil production from the Bakken and South Texas’ Eagle Ford Shale rose by more than 78,000 b/d in August 2014. That’s a 3.1% increase over July. Bakken oil prices are on the downward trend, and fell to the mid $80.00 per bbl mark around the first of September. Eagle Ford oil prices have been below $100.00 per barrel since the middle of August. Click Here to follow weekly updates on Bakken activity and commodities pricing on our site. According to Bentek Energy, increased production from shale will help keep storage levels at the Cushing, Oklahoma oil hub on pace with domestic refinery demand. Read more at bentekenergy.com

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Obama: U.S., China Must Lead on Climate Change Efforts

President Barack Obama speaks during the Climate Summit at the U.N. on Tuesday. REUTERS NEW YORK—President Barack Obama on Tuesday said the U.S. and China have a "special responsibility to lead" efforts to curb carbon greenhouse gas emissions, as he sought to enlist nations around the globe in efforts to combat climate change. "There is one issue that will define the contours of this century more dramatically than any other," Mr. Obama said at a United Nations climate summit in New York. "That is the urgent and growing threat of a changing climate." Mr. Obama told delegates the U.S. is ready to lead in a new set of global climate-change negotiations but urged major economies—including emerging economies—to get on board. "Nobody gets a pass," he said. In an afternoon address, Mr. Obama announced a set of limited measures Washington will take to address climate change abroad and to align […]

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China, not Russia, could shape Asia’s energy future, speakers say

WASHINGTON, DC, Sept. 23 09/23/2014 China apparently could be in a better position than Russia to directly influence future Asian oil and gas development and policies, speakers agreed during a Sept. 22 discussion at the Center for Strategic & International Studies . The $400 billion natural gas deal the two countries signed in May was significant, they agreed ( OGJ Online, May 21, 2014 ). “Both sides wanted it, but its economics are very hard,” said Edward C. Chow, a senior fellow in CSIS’s Energy and National Security Program. “They’ve been negotiating for 10 years to build a very long pipeline involving eastern fields which will be difficult to develop,” Chow said, adding, “The gas price when it reaches China’s border won’t be attractive.” Shoichi Itoh, a senior analyst at the Institute for Energy Economics in Tokyo, said, “The development of eastern Siberia and the Far East is Russia’s […]

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No hard landing yet in China

This photo taken on October 17, 2011 shows a worker monitoring the loading of containers on to a ship at the harbour in Qingdao, in northeast China’s Shandong province (STR/AFP/Getty Images)   © STR/AFP/Getty Images China’s economic rebalancing has been the main downside risk to global economic activity in 2014, and will probably remain so for the foreseeable future. The industrial production figures for August were the weakest seen since the 2008-09 recession, and they were followed by a statement from finance minister Lou Jiwei to the effect that there would be no change in economic policy “in response to one indicator”. This echoed Premier Li Keqiang’s recent speech at the summer Davos meetings, which indicated broad satisfaction with the overall thrust of policy. “Just like an arrow shot, there will be no turning back”, he promised. The possibility of a clash between a slowing economy and a Chinese […]

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Backwardation in Asian gasoline market firms sharply amid shrinking supply

Singapore (Platts)–24Sep2014/206 am EDT/606 GMT The backwardation in the FOB Singapore 92 RON gasoline market firmed sharply Tuesday, September 23, as concerns that replacement barrels in Asia could be limited going forward perked up sentiment, traders said Wednesday. The spread between FOB Singapore October and November 92 RON gasoline swaps widened 25 cents/barrel, or 27% day on day, to be assessed at $1.15/b Tuesday. The spread was last assessed at the same level on August 29 this year, data showed. In a backwardated market, the price for the distant delivery month is lower than the prompt delivery month and the firming of a backwardated curve could indicate rising demand and lower supply. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology […]

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Obama called on to ban oil trains

WASHINGTON, Sept. 23 (UPI) — An environmental advocacy group said it wants President Barack Obama to use his authority to ban the type of rail cars tied to recent oil train derailments. Older rail cars designated DOT-111 carrying crude oil have been involved in a series of disastrous derailments, including the deadly incident in Lac-Megantic, Quebec in 2013. In mid-September, Earthjustice, ForestEthics and the Sierra Club filed a lawsuit against the Department of Transportation for not responding to a petition filed in July calling for a ban on shipping Bakken crude from North Dakota using DOT-111 cars. ForestEthics campaigner Matt Krogh said a recent report from the U.S. Governmental Accountability Office emphasized some of the risks associated with shipping oil by rail. "ForestEthics is asking the president to take the GAO report to heart, ban dangerous DOT-111 tanker cars, slow these trains, and protect the American public from the […]

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More gas capacity planned for N.D., Wyo.

OKLAHOMA CITY, Sept. 23 (UPI) — Energy company ONEOK said it plans to invest at least $480 million on shale natural gas processing infrastructure in North Dakota and Wyoming. ONEOK said it would invest between $480 million and $680 million between now and late 2016 to expand gas processing capabilities and associated infrastructure in the Bakken and Niobrara shale formations. A facility in Dunn County, N.D., would be able to process 80 million cubic feet of natural gas per day from the Bakken shale formation in the state. North Dakota lags behind other oil-producing states in gas utilization , but set a goal of capturing 90 percent of associated gas within six years. ONEOK said it’s built 11 new natural gas processing plants since 2010, including eight in the Bakken region of North Dakota. The company says its gas processing capacity in the region should increase by more than […]

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North Dakota bent on fighting sexual violence

BISMARCK, N.D., Sept. 23 (UPI) — U.S. Sen. John Hoeven announced the Office of Violence Against Women in the federal Justice Department made $1.4 million in awards available to the state to high address domestic violence and sexual assault . The Republican senator said North Dakota has been recognized for its expanding economy brought on by the accelerated pace of growth in oil production from the Bakken and Three Forks part of the state. "In order to maintain that quality, we need to adapt to the challenges that growth can bring," he said in a statement Monday. "That means investing in our law enforcement as well as our public and private community service providers." The North Dakota economy is expanding faster than any other state in the union. Based on June data from the U.S. Department of Commerce, North Dakota real gross domestic product increased 9.7 percent between 2012 […]

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Bentek Energy: ND Bakken Hit 1.2 Million b/d – Aug. 2014

ND Pump Jack Photo ND Pump Jack | Click to Enlarge Combined oil production from the Bakken and South Texas’ Eagle Ford Shale rose by more than 78,000 b/d in August 2014. That’s a 3.1% increase over July. Bakken oil prices are on the downward trend, and fell to the mid $80.00 per bbl mark around the first of September. Eagle Ford oil prices have been below $100.00 per barrel since the middle of August. Click Here to follow weekly updates on Bakken activity and commodities pricing on our site. According to Bentek Energy, increased production from shale will help keep storage levels at the Cushing, Oklahoma oil hub on pace with domestic refinery demand. Read more at bentekenergy.com

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Higher Permian production, constrained infrastructure increase spread between WTI oil hubs

Source: U.S. Energy Information Administration, Thomson Reuters Increasing production of crude oil in the Permian Basin in western Texas, and parts of New Mexico , has outpaced pipeline infrastructure to move the crude to refineries, causing prices for crude in the Permian Basin (at Midland, Texas) to fall below similar crudes priced at Cushing, Oklahoma. While the price difference between Midland and Cushing has been increasing for almost a year, recent refinery outages in the region caused it to widen substantially. Several infrastructure projects that will allow more crude to flow from the Permian to the U.S. Gulf Coast are expected to come online soon, which should cause this price difference to narrow. The latest U.S. Energy Information Administration Drilling Productivity Report (DPR) estimates that August Permian Basin oil production will be almost 1.7 million barrels per day (bbl/d), 0.3 million bbl/d more than a year ago. With increased […]

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US oil, gas pipeline companies seek new markets, sources of financing

Houston (Platts)–23Sep2014/520 pm EDT/2120 GMT The dramatic ramp-up in North American natural gas and oil production, combined with shifting gas flow patterns, such as from LNG exports, signals the need for new investments in pipeline infrastructure, speakers at the Platts Pipeline Development and Expansion conference said Tuesday. Along with the need for new infrastructure comes the need to tap traditional sources of financing as well as develop new ones, panelists at the Houston conference said. Potential investors must weigh the inherent risk that the construction of new pipelines inevitably carries, said Lucien Pugliaresi, president of Energy Policy Research Foundation. Pipelines that cross federal land must comply with the strict requirements of the National Environmental Policy Act, which can delay the construction of a project by months or years, he said. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline […]

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Westport unveils proprietary enhanced spark-ignited natural gas system; up to 10% improvement in power and torque over diesel

Westport Innovations Inc. unveiled the first generation of its new, proprietary enhanced spark-ignited (ESI) natural gas system. The new approach to natural gas combustion technology is designed to provide vehicle and engine original manufacturers (OEMs) with a “downsized” natural gas solution that is cost competitive while providing similar levels of power, torque, and fuel economy to a larger diesel engine. Using 100% dedicated natural gas as fuel, Westport’s new technology optimizes the combustion and thermal efficiencies of the engine by taking advantages of the positive properties of natural gas. The Westport ESI combustion system is targeted at sub 9L engines for Class 6 and 7 trucks applications and is also adaptable for sub 2L applications for use in automotive and non-automotive applications. Mercedes-Benz 7.7L mono-fuel gas engine Mercedes-Benz has also developed a new all natural gas engine for medium-duty applications that delivers the performance of diesel but with the […]

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Range agrees to pay $4.15 million to settle Pennsylvania DEP charges

WASHINGTON, DC, Sept. 22 09/22/2014 Range Resources Corp ., Fort Worth, has agreed to pay a $4.15 million fine, close five impoundments, and upgrade two others at its Washington County operations, Pennsylvania’s Department of Environmental Protection (DEP) reported. The fine is the biggest against an oil and gas producer in the state’s shale drilling era, the agency said on Sept. 18. Violations included releases of contaminants, such as leaking flowback, that affected soil and groundwater, PDEP said. There has been no impact on drinking water from any of these impoundments, it noted. Under a consent order it reached with the agency, Range will begin to close its Hopewell Township 11 (Lowry), Cecil Township 23 (Worstell), and Kearns impoundments. Range also will continue the closure of the Yeager impoundment. It also must close the Hopewell Township 12 (Bednarski) impoundment by Apr. 1, 2015. DEP said the consent order also directs […]

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Total to divest $10 billion in assets during 2015-17

Total SA plans to divest $10 billion in assets during 2015-17 in an effort to improve cash flow and enforce stricter financial discipline. The announcement follows the realization of the company’s goal to divest $15-20 billion in assets during 2012-14, including the recent sale of 10% interest in Azerbaijan’s Shah Deniz field and the South Caucasus pipeline to Turkish Petroleum Corp. for $1.5 billion ( OGJ Online, May 30, 2014 ). Last week, Total received an offer from French specialty chemical company Arkema to acquire global adhesives affiliate Bostik for $2.25 billion. Organic investment within the company is expected to decrease to $26 billion this year from $28 billion in 2013. By 2017, it hopes to reduce investment to $25 billion. Total is targeting $15 billion in free cash flow for 2017, which it believes will be aided by the launch of 15 major projects expected to boost production […]

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WoodMac: EOR could boost US tight oil output 3 million b/d by 2030

HOUSTON, Sept. 23 Additional volumes from enhanced oil recovery (EOR) slated to come on stream after 2020 could boost tight oil production in the US by 1.5-3 million b/d by 2030, up to 25% more oil than is being forecasted today, according to analysis from Wood Mackenzie . “Growth in US tight oil continues to impress as development technology and techniques have yet to mature beyond adolescence,” explained Phani Gadde, WoodMac senior North America upstream analyst. WoodMac notes that these technologies are in early test phases and not yet commercial, but indicators suggest up to a 100% increase in recovery rates. Pilot tests are being conducted by operators such as EOG Resources Inc. in the Eagle Ford shale ( OGJ Online, Apr. 8, 2010 ). “This is going to happen, like horizontal drilling and [hydraulic fracturing], leading to another step-change in production technology,” noted Skip York, WoodMac principal analyst, […]

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Wood Mackenzie: US Tight Oil Technology Could Boost Output by 25%

GNRL Oil & Gas makes oil discovery at ND#1A well in Dholasan field in Gujarat, India. There continues to be great potential for surprises to the upside in production of U.S. tight oil according to Wood Mackenzie’s latest integrated analysis. "Growth in U.S. tight oil continues to impress as development technology and techniques have yet to mature beyond adolescence," said Phani Gadde, Senior North America Upstream Analyst for Wood Mackenzie. To better illustrate, Gadde said additional volumes from Enhanced Oil Recovery (EOR) will come on stream after 2020, and could add 1.5 to 3 million barrels per day (mb/d) by 2030, up to 25 percent more oil than is being forecasted today. These technologies are in early test phase and not commercial yet, but indicators suggest up to a 100 percent increase in recovery rates. There are pilot tests that are underway with operators like EOG testing it out in […]

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Suncor Looks East to Find Buyers for Western Canada Crude

Western Canadian crude may be crossing the Atlantic Ocean soon as Canada’s oil companies seek buyers outside North America. Suncor Energy Inc. (SU) , the largest Canadian oil company by market capitalization, loaded its first tanker of heavy crude out of Canada’s eastern coast this week. Enbridge Inc. (ENB) ’s Line 9B is scheduled to complete its reversal next month, bringing 300,000 more barrels a day to the Saint Lawrence River, which empties into the Atlantic. Canada’s search for overseas markets comes as its crude production is rising along with that of its traditional buyer, the U.S. Combined output of those countries has risen 51 percent in the past five years to 12.2 million barrels a day, according to their governments. Unlike the U.S., Canada has no restrictions on exporting crude. “As we get more and more production in North America, prices will get lower and companies will have […]

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Kiev commits to gas transit to Europe

KIEV, Ukraine, Sept. 23 (UPI) — Members of a European energy council met Tuesday in Kiev to discuss energy security challenges in the European market. Europe gets about a quarter of its gas needs met by Russia, though more than half of that runs through the Soviet-era transit system in Ukraine. Russian energy company Gazprom in 2006 and 2009 cut gas through Ukraine in response to contractual rows, and ongoing tensions in eastern Ukraine add another layer of risk to European energy security. Ukrainian Prime Minister Arseniy Yatsenyuk said energy solidarity in the European community would lead to advances in energy independence and energy security. "Ukraine will abide by the Energy Community rules and ensure uninterrupted transit of gas through its territory," he said in a statement. Ukrainian, Russian and European leaders are scheduled to meet Friday in Berlin to discuss lingering challenges to their trilateral energy ties. European […]

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EU confirms schedule for trilateral gas talks

| License Photo BRUSSELS, Sept. 22 (UPI) — The European Commission confirmed a trilateral meeting with Russian and Ukrainian energy ministers was scheduled for Friday in Berlin. The commission said European Energy Commissioner Gunther Oettinger would sit down with Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan. No agenda was given in Monday’s announcement . Russian media reported European leaders were ready to discuss reliable gas transits and would consider the status of the planned South Stream gas pipeline if the issue was raised. Members of the European Parliament passed a resolution Thursday calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline." South Stream is a Russian option to avoid geopolitically sensitive territory in Ukraine, plagued by conflict since a November pivot toward the European Union . Russia meets about a quarter of Europe’s gas needs, though […]

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EU Set for New Clash with Russia over Ukraine Pact

EU enlargement chief Stefan Füle, pictured in Brussels last year, has told The Wall Street Journal that the Russian government is living in a "virtual reality" over its interpretation of a recent compromise trade deal involving Ukraine. Agence France-Presse/Getty Images NEW YORK—The European Union seemed set for a fresh clash with Russia after the bloc’s enlargement chief, Stefan Füle, accused Moscow of living in a "virtual reality" over its interpretation of a recent deal aimed at defusing trade tensions over Ukraine. The dispute threatens to dampen hopes that a Sept. 12 accord between the EU, Russia, and Ukraine could start to ease tensions between Brussels and Moscow. Last week, Russian Economy Minister Alexei Ulyukaev sent a letter to the European Commission’s trade chief and Ukraine’s foreign minister setting out Moscow’s interpretation of the agreement and warning that Russia could still retaliate against Ukraine for ratifying a broad trade and […]

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Brent Rebounds From 1-Week Low on China Manufacturing; WTI Rises

Brent rose from a one-week low after a Chinese manufacturing gauge beat forecasts, signaling increased demand from the world’s second-biggest oil consumer. West Texas Intermediate climbed in New York . Futures advanced as much as 0.5 percent in London . A preliminary Purchasing Managers ’ Index from HSBC Holdings Plc and Markit Economics was at 50.5 for September, compared with the median estimate of 50 in a Bloomberg News survey and a final reading of 50.2 for August. U.S. gasoline stockpiles probably shrank for a second week, a separate survey shows before an Energy Information Administration report tomorrow. “The PMI data reduces concern in the market that crude demand in China will be affected by slowing growth,” said Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul. “For today, this will be the supporting reason for higher prices.” Brent for November settlement gained as much as 51 […]

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Natural-Gas Futures Gain on Forecasts for Warmer Weather

By Christian Berthelsen NEW YORK–Natural-gas futures ticked higher Monday as the market took stock of predictions of warm weather for much of the country in the coming weeks and whether that might prompt demand for gas-powered air conditioning. Natural gas for October delivery rose 1.3 cents, or 0.3%, to settle at $3.850 a million British thermal units on the New York Mercantile Exchange. The market flipped between gains and losses over the course of the day as traders bet whether the forecasts could spell higher demand for natural gas, the fuel stock for power plants that ramp up production as customers run their air conditioners. An approaching late-season warm front is expected to bring temperatures in the 70s and 80s to much of the Midwest and Northeast into early October. Some analysts said the higher temperatures wouldn’t be hot enough to drive cooling demand and would likely result in […]

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U.S., Arab partners launch first strikes on IS in Syria

WASHINGTON/BEIRUT (Reuters) – The United States and several Gulf Arab allies launched air and missile strikes on Islamic State strongholds in Syria on Tuesday, U.S. officials said, opening a new, far more complicated front in the battle against the militants. "I can confirm that U.S. military and partner nation forces are undertaking military action against (Islamic State) terrorists in Syria using a mix of fighter, bomber and Tomahawk Land Attack Missiles," Rear Admiral John Kirby, Pentagon press secretary, said in a statement. "Given that these operations are ongoing, we are not in a position to provide additional details at this time." A U.S. official, speaking on condition of anonymity, said that Saudi Arabia, the United Arab Emirates, Jordan and Bahrain were all involved, although their exact roles in the military action were unclear. Qatar played a supporting role in the air strikes, the official said. Another official said at […]

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OPEC Output-Target Cut Not Agreed Yet, U.A.E. Oil Minister Says

OPEC nations have yet to decide to cut their collective oil-production target, the United Arab Emirates’ energy minister said, days after the group’s chief suggested its 12 members may lower the ceiling in 2015. “It’s not a one-man decision,” Suhail Al Mazrouei told reporters today in Abu Dhabi . “It’s a decision by all the ministers when we meet.” The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will review its target of 30 million barrels a day when it meets next on Nov. 27 at its Vienna headquarters. The group may reduce its official daily limit by 500,000 barrels to 29.5 million next year, OPEC Secretary-General Abdalla El-Badri said Sept. 16. OPEC’s monthly report on Sept. 10 showed demand for its oil will decline to 29.2 million barrels a day in 2015 from 29.5 million this year. Brent crude , a global […]

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Iraq relying on oil wealth from Basra

BASRA, Iraq, Sept. 22 (UPI) — Iraqi Oil Minister Adil Abd al-Mahdi visited oil and natural gas installations in southern Iraq, saying there’d be a rise in production levels that would benefit the people of Iraq. Describing Basra as the economic capital of the country, the minister said oil, the ports and all parts of the energy sector would lift Iraq as a nation. "These are not just promises," he said during Sunday’s visit. "Our aim is to build Iraq." Iraq last week said southern oil exports were 73.6 million barrels for August, down more than 2 percent from the previous month. Oil ministry spokesman Assim Jihad said oil from the southern port city of Basra was sent to nearly three dozen international companies. Kuwait Energy and Dragon Oil, two companies holding assets in Basra, announced the production of 2,000 barrels of oil per day during testing, describing the […]

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Report: MENA unprepared for climate change

| License Photo WASHINGTON, Sept. 22 (UPI) — Countries in the Middle East and North Africa have done little as a whole to address the threats from climate change, the American Security Project said Monday. International delegates gather Tuesday in New York City for a climate change summit hosted by U.N. Secretary-General Ban Ki -moon. The summit comes on the heels of a report from the World Meteorological Organization that said the level of greenhouse gases in the atmosphere last year reached a new record in part because of the steady use of fossil fuels. A report Monday from the American Security Project found the Middle East and North Africa — home to nine of the 12 members of the Organization of Petroleum Exporting Countries — least prepared for climate change . "Perhaps an explanation of this is the continued political and military strife in the region," the report […]

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China September factory activity edges up but employment shrinks

BEIJING (Reuters) – China’s manufacturing sector unexpectedly picked up some momentum in September even as factory employment slumped to a 5-1/2-year low, a potential source of worry for Communist leaders who prize social stability above all else. Signs of a weakening labor market reinforced expectations that China would further relax financing conditions in coming weeks, but stop short of cutting interest rates or loosening the reserve requirement for all banks to support the economy. The HSBC/Markit Flash China Purchasing Managers’ Index (PMI) rose to 50.5 in September from Augusts’ final reading of 50.2, slightly above the 50 mark separating expansion from contraction which had been expected by economists in a Reuters poll. "We believe liquidity conditions will be easy," said Ting Lu, an economist at Bank of America-Merrill Lynch. "But we don’t expect a universal cut in interest rates or the reserve requirement ratio." Instead, policymakers are likely to […]

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China pledges to boost climate cooperation with UN

UNITED NATIONS, Sept. 22 (Xinhua) — Chinese Vice Premier Zhang Gaoli said here Monday that Beijing will offer 6 million U.S. dollars to support UN Secretary General Ban Ki-moon in promoting South-South cooperation on climate change. Zhang, who is here to attend Tuesday’s UN Climate Summit as Chinese President Xi Jinping’s special envoy, made the pledge in a meeting with Ban. Zhang stressed that China appreciates UN leader’s proposal to hold the UN Climate Summit, adding that the summit would have an important and positive influence on the international cooperation in dealing with climate change. The Chinese government and Chinese leaders attach great importance to the issue of climate change as well as the role of the UN in tackling the issue, Zhang added. Noting that the UN will celebrate the 70th anniversary of its establishment next year, the Chinese presidential envoy suggested that by taking the advantage of […]

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Pump Prices in U.S. Fall to Lowest Since February

Gasoline prices at U.S. pumps may decline further from a seven-month low as falling crude costs and less stringent fuel regulations boost supply, according to Lundberg Survey Inc. The average price of regular gasoline slid 8.9 cents in the two weeks ended Sept. 19 to $3.3741 a gallon, the lowest since Feb. 7, according to the survey, which is based on information obtained at about 2,500 filling stations. Prices are 14.66 cents lower than a year ago and may drop by a few more cents, the Camarillo, California-based researcher said. U.S. crude prices have dropped by more than $10 a barrel since reaching this year’s peak in June. Refineries ran at 93 percent of capacity in the week ended Sept. 12, the most for this time of year since 2006, taking advantage of rising oil production from shale formations. Ethanol futures have dropped by half since early April, encouraging […]

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EU confirms schedule for trilateral gas talks

| License Photo BRUSSELS, Sept. 22 (UPI) — The European Commission confirmed a trilateral meeting with Russian and Ukrainian energy ministers was scheduled for Friday in Berlin. The commission said European Energy Commissioner Gunther Oettinger would sit down with Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan. No agenda was given in Monday’s announcement . Russian media reported European leaders were ready to discuss reliable gas transits and would consider the status of the planned South Stream gas pipeline if the issue was raised. Members of the European Parliament passed a resolution Thursday calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline." South Stream is a Russian option to avoid geopolitically sensitive territory in Ukraine, plagued by conflict since a November pivot toward the European Union . Russia meets about a quarter of Europe’s gas needs, though […]

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US gas costs to rise this winter for residential, commercial customers: AGA

Washington (Platts)–22Sep2014/353 pm EDT/1953 GMT US residential and commercial natural gas customers can anticipate more normal temperatures this winter, but the price they pay for gas will be "slightly higher" than last winter because of the growing competition from industrial and electric generation users, the American Gas Association said Monday. This year, local distribution companies have been competing with those segments for gas to refill their storage facilities, which were depleted by last winter’s record low temperatures, said Chris McGill, AGA vice president of policy analysis. Last winter was characterized by a string of polar vortexes that resulted in prolonged periods of deep cold in key consuming regions. The US set a single-day record for gas use on January 7, 2014, or 139 Bcf — almost double the overall daily average, AGA noted. Looking forward, McGill said the commodity price of gas has been about 9% higher than the […]

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California governor signs 6 bills to advance state’s electric vehicle market; HOT and HOV benefits

Capping off National Drive Electric Week, California Governor Jerry Brown signed into law half a dozen bills to strengthen California’s best-in-the-nation electric vehicle market, including free or reduced-rate access to new high-occupancy toll (HOT) lanes, and more HOV stickers for plug-in hybrids. The action builds on the state’s efforts to support the growth of the electric vehicle market, including legislation Governor Brown signed last year and the executive order he issued in 2012 to establish a target of 1.5 million zero-emission vehicles on the road in California by 2025 and a number of other long-term goals. California accounts for 40% of US plug-in electric vehicle sales and earlier this month, surpassed 100,000 plug-in electric vehicles sold. ( Earlier post .) The Governor signed the following bills: AB 1721 by Assemblymember Eric F. Linder (R-Corona): Grants free or reduced-rates in high-occupancy toll (HOT) lanes to clean air vehicles. HOT lanes, […]

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ExxonMobil ‘winding down’ Arctic well, complying with US, EU sanctions on Russia

HOUSTON, Sept. 19 09/19/2014 ExxonMobil Corp. released a statement that the company is complying with all US sanctions on Russia after news reports that the operator had halted operations on its first arctic exploration well—University-1—in Russia’s Kara Sea. In an energy industry brief, Raymond James & Associates Inc. analysts Darren Horowitz and Edward Rowe noted, “This being the first major exploration prospect drilled in the Russian Arctic, the well (part of a joint venture with [OAO] Rosneft) has garnered an exceptionally high profile in the media—even though its results would be completely inconsequential for production and reserves over any investable timeframe….” By halting the well, the analysts noted, “it appears that Exxon was unable to find a creative ‘workaround’ to last week’s tightened US and [European Union] sanctions on technology transfer to Russia.” In its statement, the supermajor said, “The US Treasury Department, recognizing the complexity of the University-1 […]

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Siemens To Buy Dresser-Rand To Tap US Shale Gas Boom

Siemens To Buy Dresser-Rand To Tap US Shale Gas Boom FRANKFURT, Sept 22 (Reuters) – Germany’s Siemens has agreed to buy U.S. oilfield equipment maker Dresser-Rand for $7.6 billion in cash, aiming to catch up with arch-rival General Electric in a booming U.S. shale gas market. The acquisition, which ranks among the biggest in the history of the German industrial group, will strengthen Siemens’ position in the United States, its weakest region, and focus the group more tightly on its industrial customers. Siemens embarked on a corporate overhaul in May dubbed "Vision 2020", seeking to make up ground on more profitable competitors such as Switzerland’s ABB as well as U.S-based General Electric (GE), while reducing its exposure to more cyclical consumer businesses where it has had limited success. As part of that drive, the group said on Monday it had also agreed to sell its stake in household appliances […]

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Californians Debate Oil v. Water Aquifers in State’s Monterey Shale

If its Monterey Shale potential is fully realized, California could get back to its modern-day high levels of oil production at the 1 million b/d mark, but ongoing issues of water and energy sustainability may get in the way, the state’s oil/natural gas supervisor said during a panel discussion Thursday night at Loyola Marymount University (LMU) in Los Angeles. “Oil in California is produced from aquifers, and we actually produce way more oil than water,” said Steve Bohlen, head of the state Division of Oil, Gas and Geothermal Resources (DOGGR). He said the state’s oil production is 600,000 b/d. “Ultimately the question becomes whether that water [produced with oil] could be put to some beneficial use.” Bohlen spoke on a panel discussion on “California’s Sustainable Future: Water and Energy Challenges,” hosted by a local chapter of the American Academy of Environmental Engineers and Scientists (AAEES). It included representatives from […]

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Arctic oil bound for Europe, Gazprom Neft says

MOSCOW, Sept. 22 (UPI) — Gazprom Neft Gazprom Neft confirmed a tanker filled with 200,000 barrels of oil was shipped to markets in northwest Europe last week. It was the second tanker of oil delivered from the Novoportovskoye field at the Yamal Peninsula. Gazprom Neft, the oil arm of Russian energy company Gazprom, said the oil is designated as Novy Port, which it said was "superior" in quality to the global benchmark, Brent. "A third tanker is currently being prepared for shipment," the company said in a statement. Changes in global weather patterns are leaving parts of the arctic region ice-free for longer periods of time. Gazprom Neft said it confirmed in 2011 that using a nuclear-powered icebreaker would facilitate transportation of oil from the port on the northern peninsula, where pipeline infrastructure is lacking. Any technology used to build a pipeline would "have minimal impact on the environment," […]

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