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International Support Grows for U.S.-led Campaign Against Islamic State

U.S. Secretary of State John Kerry, left, meets with Egyptian President Abdel Fattah Al Sisi in Cairo Saturday. Associated Press WASHINGTON—International support for the U.S.-led military campaign against Islamic State gathered strength with the U.K. vowing to destroy the group after it killed a British aid worker, Arab states agreeing to participate in airstrikes and Australia pledging forces. British Prime Minister David Cameron said Sunday his country will do whatever is needed to combat the threat posed by the extremist group operating in Iraq and Syria, reacting to a video released on Saturday that showed the beheading of Briton David Haines. Leading Middle East countries are prepared to join the U.S. in conducting airstrikes on militant targets in Iraq and Syria, according to senior U.S. and Arab officials. Though pledges of support are rolling in, the plan of action is still short on specifics, particularly on the next steps […]

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UN nuke agency indicates slow going on Iran probe

VIENNA (AP) — The head of the U.N. nuclear agency is indicating that his attempted probe of allegations that Iran worked on nuclear arms is going slowly. Yukiya Amano of the International Atomic Energy Agency says that Tehran has not met his request to propose two new areas of investigation by Sept. 2. He says that discussions have begun on two other alleged series of experiments that the two sides agreed on earlier but does not say whether his agency is getting the answers it seeks. Amano spoke Monday to the opening session of the IAEA’s 35-nation board meeting. Iran says it does not want nuclear arms and never worked toward them. But the agency says it has collected about 1,000 pages of information that point to attempts to develop such weapons.

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U.S. sees Middle East help fighting IS, Britain cautious after beheading

WASHINGTON/LONDON (Reuters) – Washington said countries in the Middle East had offered to join air strikes against Islamic State militants and Australia said it would send troops, but Britain held back even after the group beheaded a British hostage and threatened to kill another. U.S. Secretary of State John Kerry has been touring the Middle East to try to secure backing for U.S. efforts to build a coalition to fight the Islamic State militants who have grabbed territory in Syria and Iraq. The United States resumed air strikes in Iraq in August for the first time since the 2011 withdrawal of the last U.S. troops, fearful the militants would break the country up and use it as a base for attacks on the West. The addition of Arab fighter jets would greatly strengthen the credibility of what is a risky and complicated campaign. "We have countries in this region, […]

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China anxiety knocks shares, oil

LONDON (Reuters) – Stock markets fell on Monday after China’s factory output grew at the weakest pace in nearly six years in August, while worries over the impact of another round of sanctions on Russian projects added to headwinds for Moscow-listed companies and the oil market. Europe’s main markets fell as much as 0.4 percent before recovering some poise .FTEU3 . That followed a 1 percent dive for Asian shares, with European oil and gas stocks – traditionally among the most exposed to signs of weakening demand from China – falling as much as 1.3 percent .SXEP. Brent crude oil slumped to a more than two-year low under $97 per barrel as the lackluster data from the world’s top energy consumer cast a shadow over the outlook for oil demand at a time of abundant supply. "Economic growth in China is one of the key drivers of world growth […]

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Chevron Shuts Gas Pipeline After Accident

Chevron Pipe Line Co. has shut an Gulf of Mexico offshore gas pipeline after an accident Saturday left a contract worker dead. Reuters Chevron Pipe Line Co. has shut down a natural-gas pipeline that feeds Gulf of Mexico production to the Henry Hub storage and delivery point in Louisiana in the wake of a deadly accident. A contract worker performing routine maintenance on an offshore gas pipeline was killed Saturday and two other workers were injured, the company said. The accident occurred 6 miles south of Timbalier Bay off the southeast coast of Louisiana, according to the U.S. Coast Guard. Chevron declined to identify the workers and offered no details about what happened offshore, but said the company has launched an investigation. The gas-handling line had a valve failure Saturday around 11:10 a.m. local time, said Gregory Langley, a spokesman for the Louisiana Department of Environmental Quality. There has […]

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Fracking Gives U.S. Energy Boom Plenty of Room to Run

Cabot Oil & Gas had the most productive gas well in the U.S. last year, in Susquehanna County, Pa., yielding 30.3 million cubic feet a day Getty Images Skeptics of the U.S. energy boom say it can’t last much longer because it requires drilling an ever-increasing number of wells. But the boom already has lasted longer than anyone would have imagined just a decade ago and has more room to run. That’s because oil and natural-gas wells have become more productive—an unrecognized but potent trend that should keep the fuels flowing. Back in 2003, the energy industry had just begun combining the techniques of drilling horizontal bores through shale and then using hydraulic fracturing—shooting tons of water, chemicals and sand into the rocks. Four Sevens Oil Co. drilled the best gas well that year, in the Barnett Shale, just north of Fort Worth, Texas, according to Drillinginfo, an industry […]

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Bakken and N.D. Update for July

North Dakota has released their Bakken and North Dakota production numbers for July. Bakken Barrels Per Day Bakken production was up 19,456 bpd while all North Dakota production was up 18,134 barrels per day. This means that North Dakota production outside the Bakken fell by 1,322 bpd or a little over 2%. Bakken Wells Bakken wells producing increased by 195 to 8,065. North Dakota wells increased by the same amount to 10,952 so non-Bakken wells were unchanged at 2,860. Bakken bpd per well Bakken bpd per well fell by one to 130. All North Dakota bpd per well was unchanged at 102 bpd per well and wells outside the Bakken were unchanged at 22 bpd per well. Bakken Change The last 12 months has saw an average per month increase in production of 19,708 bpd. That works out to be 236,496 bpd increase over the last 12 months. I […]

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President Obama has a huge gas problem

Ahead of the People’s Climate March, activists say Obama must address fracking if he wants to leave a meaningful legacy Later this month, hundreds of delegates will gather inside the U.N. to talk about climate change. President Barack Obama plans to attend the climate summit, and reportedly wants work on a deal with other world leaders to “name and shame” countries that aren’t actively pursuing serious climate action. But outside the U.N., thousands of activists will be protesting with one message: whatever Obama accomplishes at the U.N., it won’t be enough to save his climate legacy. The Obama Administration has been tough on coal, directing the Environmental Protection Agency to severely limit the amount of CO2 power plants are allowed to produce. But at the same time the administration has embraced natural gas with open arms. Environmentalists say that embrace has created a chasm between Obama’s rhetoric and his […]

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Scotland bets on North Sea oil, even as the wells start to run dry

1 of 25 Full Screen Autoplay Thousands march in Edinburgh against; a different story in Glasgow ABERDEEN, Scotland — The discovery of oil deep beneath the waters of the North Sea has made this ancient port city an energy boom town, with some of the highest wages and lowest unemployment rates anywhere in Europe. Now, leaders of the campaign to break from Britain in a Thursday referendum are counting on the spoils of “Scotland’s oil” to help spread prosperity across their newly independent nation, funding schools, health care and social welfare programs. Scottish First Minister Alex Salmond has promised an oil fund, modeled on Norway’s, to ensure that the country’s wealth is broadly shared. But in the final days before the vote, that vision of a progressive and egalitarian society built on a foundation of black goo is coming up against the hard reality of energy economics: After four […]

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The Greatest Peak Oil Novel Ever Written

The Greatest Peak Oil Novel Ever Written Herman Melville never mentioned “peak whale oil” in his “Moby Dick”, published in 1851. But the novel can be understood taking into account the fact that the American whaling industry was going through its production peak just during those years. We may consider “Moby Dick” as the greatest peak oil novel ever written. In 1970, the United States went through their production peak for crude oil. Production reached a maximum then started a decline that has been lasting up to a few years ago. The peak was an epochal event, it was the “ great U-turn ” of the American economy, which ushered in a new era of larger social inequality and diffuse poverty. But the reaction to the peak itself was a deafening silence. Earlier on, the peak had been discussed and extensively debated since the time when, in 1956, the […]

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Russian PM Medvedev says Western sanctions are testing country’s strength

MOSCOW (Reuters) – Russia’s strength is being tested by sanctions imposed by the West and the country must react in a level-headed way, Prime Minister Dmitry Medvedev told members of the country’s ruling party, United Russia, on Monday. "When a series of our partners, if they can be called that, test Russia’s strength through sanctions and all kinds of threats, it is important not to succumb to the temptation of so-called easy solutions and to preserve and continue the development of democratic processes in our society, our state," Medvedev said in a televised speech. The European Union and the United States imposed late last week a fresh set of sanctions against Moscow for its policy on Ukraine, further limiting access for some of Russia’s key companies to foreign capital markets. (Reporting by Lidia Kelly; Editing by Alessandra Prentice)

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Ukraine Fighting Prompts U.S.-Russia Meeting in Paris

The U.S. is concerned about renewed fighting and has no details about the content of a Russian convoy that entered and left Ukraine over the weekend, a State Department official said. Russia still has about 25,000 troops along the border and more than 3,000 soldiers inside the country, according to the Ukrainian government. The U.S. and other NATO countries began military exercises in the country today. Kerry will meet with Lavrov at a conference on Iraq that will take place in Paris. While Russian President Vladimir Putin has denied supporting pro-Russian rebels, Ukrainian Prime Minister Arseniy Yatsenyuk said that Putin seeks to restore the Soviet Union and take the entire country. The conflict has claimed more than 3,000 lives and clashes have occurred daily since a truce took effect Sept. 5. Artillery fire caused casualties among civilians in the city of Donetsk yesterday, according to the city council. Attacks […]

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Ukraine President Poroshenko Faces Backlash Over EU Trade Deal Delay

Ukrainian President Petro Poroshenko speaks to the press in front of Ukraine’s state coat of arms on Sept. 12. Agence France-Presse/Getty Images KIEV, Ukraine—Ukrainian President Petro Poroshenko faces rising criticism for his decision to delay implementation of part of a European Union deal to avoid threatened Russian retaliation. A senior diplomat resigned in protest over the weekend, and pro-European politicians who are competing with Mr. Poroshenko’s party in parliamentary elections next month blasted the decision as caving to Russia, which wants Ukraine to give up the deal and remain in its orbit. The tensions highlight how difficult it will be for Mr. Poroshenko to manage the competing pressures of a Kremlin that isn’t backing down and a domestic electorate that wants closer ties to Europe and no concessions to Moscow. On Friday, Ukraine and the EU agreed to put off implementing a landmark trade deal , which is part […]

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Former BP chief warns on Russia sanctions

Tony Hayward, photographed during an interview with the FT at Finsbury this morning. US and EU sanctions against Moscow are in danger of turning round and biting the west by constraining global oil supply and pushing up prices in coming years, the former chief executive of BP has warned. Tony Hayward said that cutting off capital markets from Russia’s energy groups, which would eventually lead to less investment in Russian oil production, was likely to damage long-term supply. He said the US shale boom had obscured the growing risks to the world’s supply picture, but its effect would wear off, leaving the global economy dangerously exposed to potential disruptions in the flow of oil. His comments came as the US and Europe expanded sanctions against Russia on Friday with the US adding Gazprom , Europe’s leading energy provider, and Lukoil , the privately owned oil group, to the list […]

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Are we on the path of ‘Limits to Growth’?

Probably the most important thing you need to know about the 1972 book entitled Limits to Growth is that it makes no predictions. Rather, the much maligned study provides scenarios for thinking about the future of resource use, pollution, population, food, and industrial production.  Limits to Growth detailed three scenarios originally, one of them called business-as-usual or BAU. Since then, countless scenarios have been run using the same model–called World3–and some of them are discussed in updates to the book, the most recent published in 2004. Many of the scenarios including BAU result in a collapse of industrial production and population some time this century. What has surprised those reviewing the model used by Limits to Growth researchers is how closely reality has tracked the original BAU scenario. A recent review suggests that the signs of societal collapse may be around the corner based on the observed trends. But […]

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Brent Crude Hits More Than Two-Year Low on Tepid Demand

Global oil prices slumped to the lowest price in more than two years on continued concerns about weak demand. Brent, the global oil benchmark, is down 16% from the 2014 high reached in mid-June. Prices tumbled 3.7% this week, as the U.S. Energy Information Administration, the Organization of the Petroleum Exporting Countries and the International Energy Agency all cut their projections for oil-demand growth. "Supply is overwhelming the market, and demand’s not really keeping up with it," said Oliver Sloup, director of managed futures at brokerage iiTrader in Chicago, adding that U.S. benchmark prices could fall below $90 a barrel. Light, sweet crude for October delivery wavered between gains and losses Friday before settling down 56 cents, or 0.6%, at $92.27 a barrel on the New York Mercantile Exchange, posting a 1.1% loss for the week. Brent fell 97 cents, or 1%, Friday to settle at $97.11 a barrel, […]

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Brent, WTI Drop on Speculation Global Demand Is Slowing

Brent crude fell to the lowest closing price in more than two years on signs that global demand is slowing while output climbs. The European benchmark’s decline narrowed the premium to West Texas Intermediate oil. Both grades capped weekly declines after the International Energy Agency cut its global oil demand forecast for 2015 yesterday. The IEA also said Saudi Arabia exported the least in almost three years as purchases slowed from China and Europe. “The IEA report has set the tone for the market,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “The IEA projections showed that demand growth should slow while production continues to grow. They had Saudi exports at the lowest level in years, which is a sign of how weak demand is.” Brent for October settlement fell 97 cents, or 1 percent, to close […]

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Natural gas storage deficit to five-year average continues to narrow

Republished September 12, 2014, 10:20 a.m., the end date on the second graph was corrected. Storage injections have continued to outpace the five-year (2009-13) average this summer, with inventories as of September 5 at 2,801 billion cubic feet (Bcf), according to data from the Weekly Natural Gas Storage Report (WNGSR) . The winter of 2013-14 led to a large drawdown in inventories , with stocks ending March 2014 almost 1 trillion cubic feet (Tcf) lower than the five-year average and at their lowest end-March level since 2003. Relatively higher weekly net injections into storage reduced that deficit to 463 Bcf as of September 5. EIA’s latest Short-Term Energy Outlook (STEO) expects that this trend will continue, with forecast inventories of 3,477 Bcf by the end of October, 355 Bcf below the five-year average and the lowest end-October level since 2008. However, the effect of these lower inventories on winter […]

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Natural Gas Wavers But Posts Gain for Week

By Nicole Friedman NEW YORK–Natural-gas prices bounced slightly higher Friday, after a sharp selloff the day before, as traders tried to assess upcoming demand for the fuel. Natural gas for October delivery wavered between gains and losses before settling up 3.4 cents, or 0.9%, at $3.857 a million British thermal units on the New York Mercantile Exchange. Prices posted a 1.7% gain for the week. "It was so slow today," said Frank Clements, co-owner of Meridian Energy Brokers Inc. "The market is about priced where we should be." On Thursday, prices slumped 3.3% after a weekly government storage report showed that supplies grew by 92 billion cubic feet last week, well above the 82 bcf that analysts and traders had expected. After a frigid winter depleted natural-gas supplies, inventories are now just 14% below the five-year average level for the week. Production has been much stronger than anticipated this […]

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Oil Price Plunge? It’s The Global Economy, Stupid!

Nony on Fri, 12th Sep 2014 12:50 pm  If consumption is up, while price declines, then it is impossible for demand drop to be the only reason. Supply of sub hundred dollar oil has to have increased. This is a mathematical fact. nemteck on Fri, 12th Sep 2014 1:38 pm  Who did the graph? It is hard to believe that from June to July the GDP tumbled 100*(2.73-2.49)/2.173 = 11%. In Western countries economists are worried if a GDP goes down 0.3% for the whole year. In this respect, 11% looks like a world depression. And that in a single month! Plantagenet on Fri, 12th Sep 2014 2:12 pm  Yes the economy is crappy but US oil demand and global oil demand are UP over the last few years, not down. This means the oil price drop is due to INCREASING SUPPLY, not decreases in demand. Davy on Fri, […]

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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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Bakken Providing Jobs, Economic Growth for Williston, ND

In a scene that is being played out in a number of areas across the country, residents of Williston, North Dakota are learning first-hand what a robust energy industry can do for a municipality. In fact, as economic development success stories go, few can top that of Williston, which has been going through a growth spurt in recent years “of historic proportions” amid prodigious oil and gas production in the nearby Bakken Shale formation, Caitlyn Beley, the Communications Director at the Williston Economic Development office, told Rigzone. “There’s no turning back now,” Beley said. “This is the new American dream.” Oil and gas production in the Bakken Shale is not just a part of the reason for Williston’s growth – it is the reason, Beley noted. In addition to the new development, Williston’s airport just added a direct flight from Houston, which is expected to further add to Williston’s […]

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China August factory growth slows to near six-year low, more stimulus expected

BEIJING (Reuters) – China’s factory output grew at the lowest pace in nearly six years in August while growth in other key sectors also cooled, raising fears the world’s second-largest economy may be at risk of a sharp slowdown unless Beijing takes fresh stimulus measures. The output data, combined with weaker readings in retail sales, investment and imports, pointed to a further loss of momentum as the rapidly cooling housing market increasingly drags on activity in other sectors from cement to steel and saps consumer confidence. Industrial output rose 6.9 percent in August from a year earlier – the lowest since 2008 when the economy was buffeted by the global financial crisis – compared with expectations for 8.8 percent and slowing sharply from 9.0 percent in July. "The August data may point to a hard landing. The extent of growth slowdown in the third quarter won’t be small," said […]

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Oil Rigs Surge to Record on Drilling in Bakken to Permian

Rigs targeting oil in the U.S. surged to a record this week as producers accelerated drilling in some of the nation’s biggest crude plays, from North Dakota ’s Bakken formation to the Permian Basin of Texas and New Mexico . Oil rigs rose by eight to 1,592, the highest count since Baker Hughes Inc. (BHI) separated its oil and gas rig counts in 1987, data posted on the company’s website show. The Permian Basin of Texas and New Mexico added the most, rising by four to 561. North Dakota’s Williston Basin, home of the Bakken, climbed to the highest level since January 2013. The total energy rig count has almost doubled from five years ago as producers use horizontal drilling and hydraulic fracturing to draw record volumes of oil and gas out of shale formations across the middle of the country. The boom has raised domestic crude production to […]

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Statoil expanding project that captures flare gas in North Dakota

09/12/2014 Statoil ASA says a pilot project that captures flare gas in North Dakota is expanding to power six drilling rigs and a hydraulic fracturing fleet. A joint venture of GE and Ferus Natural Gas Fuels provided Statoil with the Last Mile Fueling Solution for an eight-month pilot. Statoil said expansion is expected to provide environmental, cost-saving, and logistics solutions for the company’s Bakken operations. The company anticipates commercial expansion will increase its flare gas capture to 3-5 MMcfd by yearend. “By using this captured natural gas in place of diesel in our drilling and hydraulic fracturing operations, we are further reducing emissions and costs,” said Lance Langford, Statoil vice-president for Bakken development and production. “This is both good for the bottom line and the climate.” Natural gas that Statoil captures and is not able to use in its own operations will be compressed and sold. Statoil said emerging […]

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Top boss at Bakken player resigns

OKLAHOMA CITY, Sept. 12 (UPI) — The head of Continental Resources, the largest player in North Dakota shale, is leaving to pursue his options elsewhere, the company said. Continental announced President and Chief Operating Officer Rick Bott had resigned "to pursue other options." When releasing its second quarter results in August, the company said net production from the Bakken field, spread out over much of North Dakota and Montana, totaled 108,573 barrels of oil equivalent per day during the second quarter, a 23 percent increase year-on-year. The company boasted that cumulative oil production from the Bakken reserve reached the 1 billion barrel mark at some point during the first quarter. Quarterly profits for the second quarter, however, were down 68 percent. Chairman and Chief Executive Office Harold Hamm said the company is ahead of its five-year plan to triple production by 2017, drawing on Bakken and its shale reserves […]

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Canadian crude oil exports hold steady

CALGARY, Alberta, Sept. 12 (UPI) — Total crude oil exports from Canada in June were about 38,000 barrels per day less than the previous month, government data show, and on par with the average. The Canadian National Energy Board released data from total oil exports through June , the last full month for which data are available. Total exports for June were 2.8 million barrels per day, about 38,000 bpd, or roughly 1 percent, less than the previous month. So far this year, Canadian exports have averaged about 2.78 million bpd. Canadian Prime Minister Stephen Harper has sought to add a layer of diversity to an energy export economy that depends almost exclusively on the United States . Canadian exports to the United States for the second week of September are up about 27 percent compared with the same time last year. For the week ending Sept. 5, the […]

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U.S. importing less oil, data show

WASHINGTON, Sept. 12 (UPI) — EIA published its weekly status report on the petroleum markets. For the week ending Sept. 5, EIA said crude oil imports averaged over 7.6 million barrels per day, down 54,000 bpd from the previous week. The four-week average of 7.6 million bpd was 6.8 percent less than the same period in 2013. Canada remained the top crude oil exporter to the U.S. market. Year-on-year, imports from Canada are up 27.2 percent. Imports from Saudi Arabia and Mexico, the No. 2 and No. 3 exporters, respectively, nearly doubled from the previous week. In terms of production, EIA said the United States produced an average 8.59 million bpd during the week ending Sept. 5. That’s 40,000 bpd less than the previous week, but 845,000 bpd more year-on-year. The cumulative average daily production for the week ending Sept. 5 was 14.6 higher year-on-year, EIA said Thursday. The […]

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Minnesota balks on Enbridge oil pipeline

ST. PAUL, Minn., Sept. 12 (UPI) — Sandpiper would stretch 616 miles from Tioga, N.D., through Minnesota and to an Enbridge terminal in Superior, Wisc. It would then transfer oil to other pipelines for delivery to the U.S. and Canadian refinery markets. State regulators in a 3-2 decision called on Enbridge to study the environmental issues surrounding six alternative routes through the state proposed by outside groups. State Commissioner Dan Lipschultz said Minnesota regulators need to take their time in approving a pipeline designed to carry crude oil from the Bakken reserve area in North Dakota. "I don’t want to rush to a thumbs down any more than I want to rush to a thumbs up," he said Thursday . "I want to get it right." Enbridge in June received backing from state legislators in North Dakota to build Sandpiper . Enbridge attorney Christina Brusven said each setback is […]

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DOT under fire for oil train rules

WASHINGTON, Sept. 12 (UPI) — The Department of Transportation in July published a 200-page proposal calling for the eventual elimination of older rail cars designated DOT 111 used to ship flammable liquids, "including most Bakken crude oil." The increase in U.S. crude oil production is more than the existing network of pipelines can handle and industry officials say rail is the primary alternative transit method. DOT-111 rail cars carrying crude oil have been involved in a series of disastrous derailments , including the deadly incident in Lac-Megantic, Quebec in 2013. 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 using DOT-111 cars. Matt Krogh, campaign director with ForestEthics, said DOT-111 cars are "tin cans on wheels." "We can’t run the risk of another disaster like Lac-Megantic," Earthjustice […]

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Falling oil price tilts political, economic balance in U.S. favor

LONDON/KUWAIT (Reuters) – The drop in oil prices to their lowest in two years has caught many observers off guard, coming against a backdrop of the worst violence in Iraq this decade, heightened tensions between the West and Russia, and sanctions against Iran. But as rising supplies of North American crude and tepid demand have pushed prices LCOc1 below $100 a barrel, the move underlies how the shale oil revolution is creating a political and economic advantage for Washington and its Western allies. Russia and Iran are heavily reliant on oil sales and face budget shortages at current price levels, analysts say, weakening their position when negotiating over Ukrainian sovereignty or the Iranian nuclear deal. And higher oil production from the United States as well as Canada is providing a buffer against the threat of retaliatory supply curbs from Russia or further disruptions to supplies from the Middle East. […]

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If Scotland Goes, Bankers Fear Britain Could Exit European Union

Photo Cup cakes showing, yes, no and undecided are displayed in Cuckoo’s Bakery in Edinburgh, Scotland. Cup cakes showing, yes, no and undecided are displayed in Cuckoo’s Bakery in Edinburgh, Scotland.Credit Matt Cardy/Getty Images LONDON — Tremors over a possible breakup of the United Kingdom have been felt here in recent days, as markets gyrate and banks make contingency plans. Yet as Scotland nears its vote on whether to be an independent nation, bankers here worry that a split might unintentionally set in motion a push for what could be a much uglier divorce: an exit of Britain from the European Union. “There’s a sense of, ‘If it could happen in Scotland, it could happen in the U.K.,’ ” said Chris Cummings, chief executive of TheCityUK, a lobbying group for the financial sector. If an independent Scotland would be complicated, a Britain alone in Europe would be a complete […]

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West’s antics pushing Russia closer to China

The recent NATO summit in Wales, held against the background of the armed conflict in Ukraine, has brought back the Cold War atmosphere to Europe. NATO’s partnership with Russia remains formally suspended. In fact, NATO is treating Russia more as an adversary than a partner. The alliance is setting up a "Rapid Reaction Force" to deal with emergencies on Europe’s eastern flank. The alliance’s military infrastructure is moving toward that exposed flank, and closer to Russia’s borders. NATO forces will now spend more time exercising in the east, and their presence there will visibly grow. NATO-leaning Ukraine, which the alliance alleges is an object of "Russian aggression", has been promised financial and military support. The Ukraine crisis is not just about Eastern Europe, it is also about the world order. The Kremlin is seeking Washington’s recognition of what it regards as its core national security interest: keeping Ukraine as […]

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Ukraine to Delay Part of EU Pact Opposed by Russia

A Ukrainian soldier jumped onto an armored vehicle near Pervomaysk, Ukraine. A week-old cease-fire with rebels appeared to be holding. Reuters KIEV, Ukraine—Ukraine agreed Friday to delay a key part of a trade deal with Europe that the Kremlin had staunchly opposed, even as the U.S. and European Union ramped up sanctions intended to back Russia down. The compromise, reached in Brussels, means that Ukraine gets to ratify the overall EU pact next week—an agreement that sparked Ukraine’s confrontation with Russia last year. Moscow agreed to drop its threat to impose sweeping restrictions on Ukrainian goods as early as November. But it is unclear how the next steps will play out as Kiev tries to end the Russian-backed rebellion that erupted in eastern Ukraine after the country’s turn toward Europe. While a week-old cease-fire between Ukrainian forces and Russian-backed rebels appeared to be holding, the U.S. and EU widened […]

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U.S. and European Sanctions Take Aim at Putin’s Economic Efforts

WASHINGTON — The United States and the European Union moved on Friday to shut down Western aid to Russian deepwater, Arctic offshore and shale oil exploration, broadening and deepening the range of sanctions imposed on Moscow in retaliation for its intervention in Ukraine despite the potential cost to Western firms like Exxon Mobil and BP. With twin announcements in Washington and Brussels, the new measures targeting Russia’s energy development came in addition to further limits on access to American and European capital markets, making it harder for Russian banks to obtain any credit in foreign capitals beyond short-term loans. The United States specifically targeted Russia’s largest bank, Sberbank, for the first time. The Europeans also banned travel by and froze the assets of 24 more individuals, including Russian lawmakers and others who have supported President Vladimir V. Putin over Ukraine, while the Americans blocked the assets of five Russian […]

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U.S. Expands Sanctions to Giant Russian Energy Projects

By William Mauldin and Daniel Gilbert The U.S. joined the European Union in expanding sanctions to target Russian Arctic and shale-oil projects and further limit financing to Russian state-controlled companies, a move to put pressure on Moscow as Ukraine negotiates a long-term peace plan and closer ties to the E.U. The energy sanctions announced Friday, widely expected in recent days, will prevent Western energy firms from providing technology and services — other than financial services — to five Russian energy majors’ oil projects in the Arctic, deep offshore fields and shale, the U.S. Treasury Department said. The energy sanctions could directly impact partnerships such as Exxon Mobil Corp.’s (XOM) pact with OAO Rosneft (ROSN.MZ), one of the five firms targeted, according to U.S. officials and legal experts. The two companies have been drilling in the Arctic Kara Sea, as well as exploring for oil in a Siberian shale-rock formation. […]

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U.S., EU Widen Sanctions on Russia

A logo stands on display on the front of an OAO Rosneft gas station in Moscow. The U.S. and European Union announced new sanctions Friday that target Russian Arctic and shale-oil projects, which could affect a partnership between Rosneft and Exxon Mobil. Bloomberg News The U.S. joined the European Union in expanding sanctions to target Russian Arctic and shale-oil projects and further limit financing to Russian state-controlled companies, a move to put pressure on Moscow as Ukraine negotiates a long-term peace plan and closer ties to the EU. The energy sanctions announced Friday, widely expected in recent days , will prevent Western energy firms from providing technology and services—other than financial services—to five Russian energy majors’ oil projects in the Arctic, deep offshore fields and shale, the U.S. Treasury Department said. U.S. companies have two weeks to comply with the sanctions, likely meaning an end for now to Exxon […]

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WTI Crude Rises Second Day as Losses Seen Excessive; Brent Gains

West Texas Intermediate crude advanced for a second day amid speculation its slump to a 16-month low this week was excessive as political risks to supply persist. Brent pared a second weekly drop. Futures increased as much as 0.9 percent in New York . The U.S. will join the European Union in stiffening sanctions on Russia over Ukraine , prompting the government in Moscow to threaten retaliation. U.S. retail sales probably rose in August after stagnating the previous month, according to a Bloomberg survey. Brent futures are down 2.2 percent in London this week. “ Oil prices look to be bottoming now following the rather steep sell-off over the past week,” said Jens Naervig Pedersen, an economist at Danske Bank A/S in Copenhagen, said by e-mail. “Some upside risks prevail due to the re-escalating geopolitical tensions and rising global growth, in particular on the back of a strengthening recovery […]

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IEA expects oil demand to slow

PARIS, Sept. 11 (UPI) — The International Energy Agency said Thursday it cut its forecast for oil demand growth because of an economic slowdown in Europe and China. IEA published its monthly oil market report for September, saying it trimmed oil demand growth for 2014 to 900,000 barrels of oil per day and 2015 to 1.2 million bpd. IEA said in the report the assessment was made "because of a pronounced slowdown in demand growth in the second quarter of this year and a weaker outlook for Europe and China." The World Bank in June said the Chinese economy was slowing down in part because of a "structural transformation." Data from the European Union show economies are barely growing , if at all. The Organization of Petroleum Exporting Countries said in its oil market report it cut its demand expectations by the most in three years because North American […]

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IEA: Oil prices down on abundant supplies, slow demand growth

HOUSTON, Sept. 11 09/11/2014 Amid plentiful oil supply and weakening global economic and oil demand growth, oil prices have been easing, with front-month Brent futures slipping below $100/bbl in September for the first time in more than a year, according to the most recent Oil Market Report from the International Energy Agency . “Rising Libyan exports, an overhang of West African barrels—resulting from slower US imports—and sluggish demand from refiners in Europe and Asia took their toll on spot crude prices, deflating global benchmarks,” IEA said. West Texas Intermediate showed the biggest month‐on‐month loss due in part to unplanned refinery outages that forced a temporary slowdown in run rates while US output surged. ICE Brent futures were last trading at $98/bbl. NYMEX WTI was around $91.40/bbl.   Demand Global oil demand in the second quarter showed clear signs of weakening, as growth eased back to a near two-and-a-half year […]

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OPEC MOMR Update, August Production Numbers

OPEC 12 Saudi Arabia OPEC Secondary Sources OPEC Direct Communication Saudi Says DENE MOORE, THE CANADIAN PRESS, Published September 7, 2014 – 2:53pm VANCOUVER — It was a story about rock snot. And if there’s a person you want to talk to about the pervasive algae also known by the less-offensive, more scientific name of Didymo, it’s Fisheries and Oceans Canada scientist Max Bothwell. Bothwell is, other scientists will tell you, the rock snot man. He wrote the book. Or in this case, co-authored a published article in a renowned scientific journal. But a request from The Canadian Press to speak to Bothwell when the article was published in May failed to produce an interview. What it did produce was 110 pages of emails to and from 16 different federal government communications operatives, according to documents obtained using access to information legislation. Many hours after the request was made […]

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