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Despite decline in some regions, world oil consumption still seen rising

Source: U.S. Energy Information Administration, International Energy Outlook 2014 The largest potential for growth in demand for liquid fuels lies in the emerging economies of China, India, and countries in the Middle East, according to EIA’s recently released International Energy Outlook 2014 (IEO2014). In the Reference case projection, world liquid fuels consumption increases 38% from 87 million barrels per day (MMbbl/d) in 2010 to 119 MMbbl/d in 2040. China, India, and other developing countries in Asia account for 72% of the net world increase in liquid fuels consumption, with Middle East consumers accounting for another 13%. Most liquid fuel demand is for industrial uses and transportation. In the United States, Europe, Japan, and other mature industrialized economies, liquid fuel demand has leveled off and is projected to slowly decline. The combined effects of several factors have slowed or even reversed the growth in liquid fuels use. These factors include […]

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Kerry opposes Iran role in anti-Islamic State coalition

ANKARA (Reuters) – U.S. Secretary of State John Kerry said on Friday it was "not appropriate" for Iran to join talks on confronting Islamic State militants, as he appeared to play down how fast countries can commit to force or other steps in an emerging coalition. Kerry met Turkish leaders to try to secure backing for U.S.-led action against Islamic State militants, but Ankara’s reluctance to play a frontline role highlighted the difficulty of building a willing coalition for a complex military campaign in the heart of the Middle East. As he tours the region to gather support for President Barack Obama’s plan to strike both sides of the Syrian-Iraqi frontier to defeat Islamic State Sunni fighters, Kerry said Shi’ite Iran should have no role in talks on how to go about it. Accusing Iran of being "a state sponsor of terror” and backing Syria’s brutal regime, Kerry said […]

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Nuclear energy tops Russia, Iran agenda

| License Photo MOSCOW, Sept. 12 (UPI) — Though oil and gas are on the agenda, an aide to the Kremlin said work on nuclear energy was one of the more important issues during talks Friday with Iran. Iranian President Hassan Rouhani met Friday with Russian President Vladimir Putin on the sidelines of a regional multilateral meeting of the Shanghai Cooperation Organization in Tajikistan. Yuri Ushakov, an adviser to the Russian president, said both sides would discuss Russian supplies of oil, gas and energy equipment to Iran. The two leaders, however, would focus on "the most important aspects of cooperation in the peaceful use of nuclear energy," he said Friday. Russia supplies nuclear fuel to Iran’s nuclear reactor in Bushehr. Both sides have mulled an oil-for-goods deal that would give Iran an opportunity to circumvent international sanctions on its energy sector. The U.S. government said it would act should […]

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Abdulmahdi makes bold Baiji trip

Oil Minister Adil Abdulmahdi tours the besieged Baiji refinery on Sept. 11, 2014. On his first full day as minister, following a handover ceremony at the Oil Ministry Wednesday in Baghdad, Adil Abdulmahdi toured the besieged Baiji refinery, which is still surrounded by anti-government militants.The visit to the refinery, which has been offline for three months, was a show of support for the security forces and an attempt to boost morale at the start his new administration.Eyewitnesses in Baiji said that a helicopter landing at the refinery Thursday came under fire, al… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Kurdistan Minister: ‘The Kurds Had to Go to Baghdad’

Bawamurad: “The Shiites did their best to make sure the Kurds wouldn’t participate in the government.” Bawamurad: “The Shiites did their best to make sure the Kurds wouldn’t participate in the government.” The Kurds signed up to the new government in Baghdad this week under great US pressure, confessed Mawlud Bawamurad, the Kurdistan Regional Government’s (KRG) minister for parliamentary affairs. He said the US had made its stepped-up military support in the fight against the Islamic State (IS) conditional on there being a government in Baghdad. In an interview with Rudaw, Bawamurad said that, although the agreement signed in Baghdad is not perfect for the Kurds, it is enough for now: “What is important is that our participation in it is conditional and the witness to our conditions is America.” An edited transcript of his interview follows:   Rudaw : Do you think the Kurds did the right thing […]

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Nigerian October program slow to clear as Europe remains awash with crude oil

London (Platts)–12Sep2014/909 am EDT/1309 GMT Nigerian October crude cargoes are selling very slowly due to tepid demand caused by an oversupply of light sweet crudes, trading sources said Friday. There was almost half of the October program or 30 odd cargoes still available which, sources said, was very long for this point in the trading cycle. "The structure is at a contango of 80 cents and differentials are correcting. Nigerian crudes have been slow to sell, despite better refining margins, as the Atlantic Basin was awash with material, especially light sweet crudes," a trader said. Sources said Nigerian crudes had been slow to sell despite better refining margins as the Atlantic Basin was inundated with too many crudes especially light sweet crudes. Article continues below… Crude Oil Marketwire delivers vital intelligence to help you make critical decisions. Delivered daily direct to your desktop, Crude Oil Marketwire provides detailed market […]

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Pemex tries to cut fuel imports

MEXICO CITY, Sept. 12 (UPI) — Mexico relies on imports from its North American counterparts for some of its energy needs. Last year, the United States exported 658 trillion cubic feet of natural gas to the Mexican market, a 6 percent increase from the previous year. State-owned Petroleos Mexicanos, known also as Pemex, said it’s spending $2.5 billion to upgrade domestic refineries to produce more diesel and gasoline. The effort could cut back on Mexico’s imports from the United States and eventually lead to fuel exports . Lawmakers in Mexico are putting the final touches on plans embraced by President Enrique Peña Nieto aimed at drawing international energy companies into the nation’s energy sector. The move opens Mexico up to private investors after more than 70 years under a monopoly controlled by Pemex. The country’s energy sector accounted for more than 10 percent of export earnings last year. The […]

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State Oil Firms to Invest $400 Million in Ecuador Oil Block

QUITO—State-run oil companies from Ecuador, Chile and Belarus plan to invest about $400 million to explore and develop the 490,000-acre Block 28 oil concession in southeast Ecuador. Ecuador’s Petroamazonas will have a 51% stake in the project, while Sipetrol SA, a unit of Chile’s state-owned Empresa Nacional de Petroleo, or Enap, will own 42% and Belarus’s Belorusneft will have the remaining 7%. About $30 million of the planned investment will come from Sipetrol and Belorusneft and will go into exploration. The companies plan to conduct exploration over a three-year period, and anticipate to produce oil from the block for over 15 years. The remaining $370 million investment, which will be used for production, will come from the three state oil companies, with their share of investment based on their stakes in the project. Petroamazonas General Manager Oswaldo Madrid said exploration work will begin in January 2015. Ecuador, the smallest […]

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BHI: US rig count continues upward trend, reaches 1,931 units

HOUSTON, Sept. 12 09/12/2014 The US drilling rig count increased 6 units to reach 1,931 rigs working during the week ended Sept. 12, Baker Hughes Inc. reported. The average US rig count for August totaled 1,904, up 28 from July and 123 from August 2013. During the week, the 6-unit gain was comprised of a 5-unit rise in land rigs to 1,852 and a 1-unit rise in offshore rigs to 66. Rigs drilling in inland waters held steady at 13.   An 8-unit gain in oil rigs to 1,592 was cut into by a 2-unit decline in gas rigs to 338. One rig considered unclassified remains from a week ago. Horizontal drilling rigs jumped 9 units to 1,342, overcoming a 7-unit fall in directional rigs to 217. In Canada, a 9-unit loss brought its rig count to 405. Oil rigs dropped 6 units to 222 and gas rigs dropped […]

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N.D. Oil Output Jumps Even As Flaring Rule Changes Loom

Hess To Form MLP For North Dakota Oil, Gas Transport Assets Sept 12 (Reuters) – North Dakota’s daily oil production jumped 5 percent in July to an all-time high, though the number was lower than expected as producers worked to meet aggressive flaring-reduction targets, state regulators said on Friday. The production numbers, which have been steadily rising for years, highlight the massive investments Hess Corp, Whiting Petroleum Corp and other companies are making to develop the state’s oil-rich Bakken and Three Forks shale formations and others. Despite the positive production data, shares of top North Dakota oil producers fell with the broader market. The investments have brought thousands of new workers to North Dakota, as well as billions in infrastructure and real estate investment, making the state the fastest-growing economy in the United States. North Dakota’s oil wells produced 34.4 million barrels in July, up from 32.8 million barrels […]

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