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Islamic State’s Ultimate Goal: Saudi Arabia’s Oil Wells

Islamic State’s Ultimate Goal: Saudi Arabia’s Oil Wells For the terrorist group known as the Islamic State, Syria and Iraq were a good place to start their campaign, but in order to survive and prosper it knew from the outset that it had no choice but to set its sights on the ultimate prize: the oil fields of Saudi Arabia. It is in that direction that the battle for control of the world’s largest oil fields is currently heading. Islamic State — which has its origins in al-Qaeda – knows fully well that in order to sustain itself as a viable and lasting religious, political, economic and military entity in the region, it has to follow the same objectives established by al-Qaeda when Osama bin Laden broke off his relations with the Saudi monarchy and vowed to bring down the House of Saud. Bin Laden’s ire at the Saudi […]

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Arabs Give Tepid Support to U.S. Fight Against ISIS

BEIRUT, Lebanon — Many Arab governments grumbled quietly in 2011 as the United States left Iraq, fearful it might fall deeper into chaos or Iranian influence. Now, the United States is back and getting a less than enthusiastic welcome, with leading allies like Egypt, Jordan and Turkey all finding ways on Thursday to avoid specific commitments to President Obama’s expanded military campaign against Sunni extremists. As the prospect of the first American strikes inside Syria crackled through the region, the mixed reactions underscored the challenges of a new military intervention in the Middle East, where 13 years of chaos, from Sept. 11 through the Arab Spring revolts, have deepened political and sectarian divisions and increased mistrust of the United States on all sides. “As a student of terrorism for the last 30 years, I am afraid of that formula of ‘supporting the American effort,’ ” said Diaa Rashwan, a scholar […]

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Advocates: Cut off oil funding to Islamic State

| License Photo WASHINGTON, Sept. 11 (UPI) — A U.S. peace advocacy group said cutting off weapons and oil funding streams for the Islamic State were better options than the use of military force. President Barack Obama laid out his plans to contain the threat posed by the Islamic State, known variably as the Islamic State of Iraq and Syria (ISIS) or the Islamic State of Iraq and the Levant (ISIL), in an address to the nation Wednesday evening. "We will degrade, and ultimately destroy, ISIL through a comprehensive and sustained counter-terrorism strategy," the president said. His agenda called for airstrikes against terrorist targets in Iraq in a broad-based strategy that may include support from U.S. allies in Europe and in the Middle East. Kevin Martin , executive director for U.S. advocacy group Peace Action, argued for a non-military solution to the problem. "It’s time to stop the bombing […]

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U.S. reviewing ‘rumors’ of Iran, Russia oil deal

WASHINGTON, Sept. 11 (UPI) — The U.S. government is taking a wait-and-see approach to the "rumors" of an oil-for-goods deal between Russia and Iran, a State Department spokesperson said. Iran and Russia have cooperated in the nuclear energy sector and more recently mulled the prospects of working on a deal for Iran to deliver oil to Russia. "In the past [we] had said we saw nothing at that time to indicate any real progress had been made in terms of that kind of agreement," spokesperson Marie Harf said during a Wednesday briefing. "There are lots of rumors about what may actually transpire from this, so we will watch and see." Iranian President Hassan Rouhani is scheduled to meet Friday in Tajikistan with Russian President Vladimir Putin. This week, Iranian Energy Minister Hamid Chitchian hosted Russian Energy Minister Alexander Novak for a two-day summit concluding in Tehran. Russian officials during […]

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Kuwait Boosts Oil Output Despite Falling Prices

KUWAIT CITY—Kuwait is boosting its crude output this month despite falling prices, people familiar with the matter said Thursday. Oil prices have declined sharply over the summer, even falling below $100 a barrel this week. But members of the Organization of the Petroleum Exporting Countries have been split in their response to the price drop. While Saudi Arabia cut its production by 400,000 barrels a day in August, others are boosting their oil flows. Kuwait has increased its production to 2.9 million barrels a day this month, up 100,000 barrels a day from August, the people familiar with the matter said. It could rise to 3 million barrels a day next month, one person said. The output hike is to supply a 10-year deal signed last month by Kuwait with Sinopec Corp. The contract will nearly double Kuwait’s supplies to the Chinese oil giant to 300,000 barrels a day. […]

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China Bid to Curb Coal Output Seen Lifting Prices by 10%

Cutting production at the largest mining companies in China is on track to do what government officials are hoping: boost coal prices and help shore up the struggling industry. That’s the conclusion of ICIS-C1 Energy, a consulting company in Shanghai, which predicts coal prices may advance 10 percent in the fourth quarter because of the output reduction and government plans to ban shipments of lower-quality cargoes from overseas. China, both the world’s largest market for coal and worst carbon-dioxide emitter, is seeking to reduce output at the nation’s 14 largest producers after prices slumped amid efforts to moderate economic growth and fight pollution. More than 70 percent of miners are unprofitable and half are delaying or cutting wage payments, according to the China Coal Industry Association. “Coal prices have started to show a recovery since the moment the government decided to step in,” Shi Yan, a Shanghai-based analyst at […]

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IEA: US Shale Squeezing Out Saudi Oil Imports, Boosting Gasoline Exports

Hess To Form MLP For North Dakota Oil, Gas Transport Assets LONDON, Sept 11 (Reuters) – North America’s shale oil boom has started to squeeze Saudi Arabian oil out of the U.S. market in the same way it did with West African crude, the West’s energy agency said on Thursday. The International Energy Agency also predicted a flood of U.S. gasoline exports to world market. "In recent years, surging light tight oil production has backed out U.S. imports of West African crude, which are now moving to Asia," the IEA said in a monthly report. "Saudi exports seem to be showing the beginning of a similar shift," it said, estimating that Saudi exports have likely run below 7 million barrels per day for the last four months, their lowest level since September 2011. "Exports to the U.S. led the drop amid rising Saudi domestic demand for crude burn and […]

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Oil Glut Ignites Gasoline Price Swoon

Consumers are expected to see lower prices at the pump as gas prices fall. Associated Press Gasoline prices have tumbled from highs hit in June. And markets are signaling that consumers will get even more relief at the pump. A global glut of crude oil is the main driver behind the decline in gasoline. Relatively cheap oil has made it more profitable for refiners to produce gasoline and other fuels, and they have ramped up production to record levels. This boom in supplies has sent gasoline prices tumbling. Traders and other market observers expect the flow of both crude oil and gasoline to keep rising, likely exerting more downward pressure on prices. The average retail price for a gallon of regular gasoline was $3.42 on Thursday, down 3.8% from the same period in 2013, according to motor club AAA. For this time of year, gasoline prices are at their […]

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API: Recent LNG nods not enough

WASHINGTON, Sept. 11 (UPI) — Despite a nod for southern U.S. LNG exports, the application backlog needs clearing to strengthen U.S. leverage, the American Petroleum Institute said. API Upstream Director Erik Milito welcomed a decision from the U.S. Energy Department to allow for exports of liquefied natural gas from projects in Cameron Parish, La., and Marion County, Fla. "But dozens of other permits still face lengthy delays," he said in a statement Wednesday. "We urge the administration to accelerate this process and work with leaders in Congress who have shown they are ready to strengthen America’s position as an energy superpower." Bills that have passed through the U.S. House of Representatives tied LNG exports to overseas leverage in the foreign policy and economic arenas , a sentiment backed by API. The Cameron LNG project and the Carib Energy project in Florida were cleared for LNG exports to countries like […]

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New gas flaring for North Dakota

NEW YORK, Sept. 11 (UPI) — The expansion of a project in the Bakken reserve area of North Dakota will cut down on costs in part due to the use of flared natural gas, project leaders said. The U.S. subsidiary of Norwegian energy company Statoil, along with a joint venture between General Electric and Ferus Natural Gas Fuels, announced plans to expand the so-called Last Mile project in order to capture flared natural gas and use it to power Statoil’s drilling operations in North Dakota. "By using this captured natural gas in place of diesel in our drilling and hydraulic fracturing operations, we are further reducing emissions and costs," Lance Langford, Statoil’s vice president for Bakken development and production, said in a statement Wednesday. Natural gas associated with the vast shale oil deposits in the states is burned off, or flared, because of a lack of processing capabilities. North […]

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British shale bid rejected

LONDON, Sept. 11 (UPI) — A shale pioneer in the United Kingdom said Thursday it was disappointed, but not surprised, by the rejection of its oil and gas exploration bid. Celtique Energie said its application to explore shale oil and natural gas reserves in the South Downs National Park in southern England was rejected. "We are disappointed by today’s decision by the South Downs National Park Authority," Geoff Davies, Chief Executive Officer of Celtique Energie, said in a statement. "However, we are not surprised, given the authority’s public stance regarding oil and gas exploration in National Parks, both in Sussex and elsewhere." The company said it believed the untapped oil and natural gas reserves thought to be present in the area would be nationally significant . The British government has endorsed shale reserves as part of a diverse energy mix. Shale campaigns in the country are in their infancy, […]

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Support for Scots’ independence slips behind with days to go: poll

EDINBURGH (Reuters) – Supporters of keeping Scotland in the United Kingdom have clawed back a 4 percentage point lead over separatists, a YouGov poll showed on Friday, with less than a week to go before Scots vote in a referendum on independence. The YouGov survey for The Times and Sun newspapers put Scottish support for the union at 52 percent versus support for independence at 48 percent, excluding those who said they did not know how they would vote. "The ‘no’ campaign has moved back into the lead in Scotland’s referendum campaign," YouGov President Peter Kellner said in a commentary on the survey. "This is the first time ‘no’ has gained ground since early August." The indication that support for keeping the United Kingdom intact has drawn slightly ahead in Scotland is of only meagre comfort to unionists; the broader picture painted by recent surveys is that the vote […]

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BASF Buys Oil, Gas Assets From Statoil to Secure European Supply

BASF SE (BAS) ’s oil and gas arm agreed to buy assets from Norway’s Statoil ASA (STL) for $1.25 billion, diversifying energy supplies for Germany’s biggest chemical maker as relations between Europe and Russia worsen. BASF’s Wintershall is acquiring a share in two producing fields, two development projects, the Polarled pipeline project and a share in four exploration licenses, the Ludwigshafen, Germany-based company said today in an e-mailed statement. Wintershall’s daily production in Norway will increase 50 percent to about 60,000 barrels of oil equivalent. The Norwegian deal will make BASF, Germany’s largest industrial user of gas, less reliant on supplies from Russia as the U.S. and European Union ratchet up sanctions in response to the conflict in Ukraine. An asset swap with OAO Gazprom (OGZD) , agreed to in 2012 and expected to close this autumn, was set to boost Russia’s share of BASF’s supply to more than […]

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Russia Weighs Response as U.S. and EU Add More Sanctions

Russia threatened retaliation against a U.S. and European Union decision to stiffen sanctions against Moscow because of Ukraine and may ban some imports including clothing and used cars. The EU added 15 companies , including OAO Gazprom (OGZD) Neft, OAO Rosneft (ROSN) and OAO Transneft, and 24 people to the list of those affected by its sanctions against Russia. European companies and taxpayers “will have to pick up the costs” for the penalties, Dmitry Peskov, a spokesman for Russian President Vladimir Putin , told Interfax yesterday. The U.S. will “deepen and broaden” its measures against Russia’s financial, energy and defense industries, President Barack Obama said yesterday. The moves raise the level of confrontation and follow reprisals last month, when the Russian leader banned a range of food imports after an earlier round of U.S. and European penalties. Putin denies any involvement in the fighting that broke out after he […]

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Sanctions Over Ukraine Put Exxon at Risk

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia’s Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia. Instead, Exxon has wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company’s best chances to find and tap significant—and much needed—amounts of crude oil. The U.S. on Thursday announced new sanctions targeting Russia’s financial, defense and energy sectors in a bid to punish the Kremlin for stoking the military conflict in Ukraine. Details of the sanctions, designed to match new measures imposed by the European Union , are set to be released Friday. A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft , though the extent of the impact was unclear […]

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Poland Resumes Gas Deliveries to Ukraine

By Patryk Wasilewski WARSAW–Poland resumed deliveries of natural gas to Ukraine on Friday, after supplies from Russian to Poland fell below ordered level earlier this week, the country’s gas network operator said. Poland’s state-controlled PGNiG SA said earlier this week that deliveries from Russia’s OAO Gazprom were 20-24% below increased order levels on Monday and Tuesday, and 45% below on Wednesday. Gazprom said it was delivering unchanged amounts of gas through Monday-Tuesday. PGNiG said it was compensating for the difference by increasing supplies from Germany and the Czech Republic. Before the halt of supplies to Ukraine, Poland supplied about 4 million cubic meters of gas a day to it neighbor, with most of it originating in Russia. Kiev was forced to import gas through Poland and Slovakia after Gazprom halted supplies to Ukraine amid a dispute over prices and unpaid bills. The dispute has been seen as part of […]

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EU Widens Sanctions on Russian Companies, Individuals Over Ukraine Crisis

By Frances Robinson And Laurence Norman BRUSSELS–The European Union extended its sanctions on Russia and rebels in eastern Ukraine on Friday, adding 15 companies and 24 individuals to its blacklist and imposing new measures against the country’s oil and defense sectors, in an effort to target those dealing with the separatists. The measures, initially approved on Monday, reinforced steps taken in July restricting trade, commerce and financial links with Russia. They will indirectly affect companies including Exxon Mobil Corp., which works with state-controlled oil companies in Russia. Under the widened sanctions list, it is "prohibited to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 30 days." As previously reported in The Wall Street Journal, three state-controlled oil companies–OAO Gazpromneft, the oil unit of OAO Gazprom; oil pipeline operator company […]

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With Gas Cut Off, Ukraine Looks West

UZHGOROD, Ukraine — Keeping Ukraine warm keeps Andriy Kobolev up at night. Mr. Kobolev, the head of Ukraine’s state energy company, Naftogaz , is scrambling to keep gas flowing into his country as winter looms. Russia’s energy giant, Gazprom, had provided a little more than half of Ukraine’s total gas supply, but suspended its shipments in June in the face of fighting in eastern Ukraine between Russian separatists and the Ukrainian military, citing a price dispute. Europe — itself dependent on Russia but also expanding sanctions on the country — has not been able to fill the gap. That means Ukraine will have to cut its energy use sharply or risk running dry, which could lead to more civilian deaths when the weather turns cold, and could further batter the country’s economy. “The situation is very difficult,” Mr. Kobolev said in a recent interview. “Since we have no choice, […]

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If oil prices stay low for long, Putin and OPEC are headed for trouble

Oil plunged today below $100 a barrel, a psychological threshold that, if it holds, threatens the rulers of Russia and numerous OPEC states that rely on higher prices to mollify their populations. A critical question, then, is whether we are looking at a sustained period of lower prices or a blip before a swing back up. The price of Brent crude—the type that dominates international trade—fell as low as $99.36 today, its lowest price in 14 months. (West Texas Intermediate, the oil produced in the United States, plummeted to $91.70 a barrel, frighteningly close to its own $90 threshold.) Voices from OPEC said they are not alarmed and that prices will go back up over the next few months when Winter demand commences. Bernstein’s Oswald Clint told Quartz that the long-term trend is for prices to rise, supported by higher costs to produce oil and constrained supply. But there is reason for OPEC members […]

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Bernstein cuts 2015 US natural gas price forecast 11% to $4/Mcf

Washington (Platts)–10Sep2014/414 pm EDT/2014 GMT US natural gas supplies, primarily from wet gas plays, will continue to outpace any increase in demand in 2015, Bernstein Research said Wednesday as it cut its 2015 price forecast 11% to $4/Mcf from $4.50/Mcf. Bernstein said gas production associated with oil and liquids drilling will continue to stay at its frantic pace until oil prices move lower and meanwhile, the associated gas from oily and wet plays is outstripping any demand for the commodity. Bernstein’s model says gas production will increase a net 3 Bcf/d in 2015 while demand will only grow 1.2 Bcf/d, primarily from the retirement of coal power plants. In the first half of 2014, gas production grew 4.1 Bcf/d over the same period last year, Bernstein said. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points […]

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EIA’s forecast of 2014 gasoline use has risen 2 billion gallons (1.6%) in past 10 months

EIA’s short-term forecasts of gasoline consumption, which cover the current and upcoming calendar year, have risen over the past year. The latest Short-Term Energy Outlook (STEO), released yesterday, expects 2014 gasoline consumption to be 8.82 million barrels per day (135.2 billion gallons), 0.13 million barrels per day (2 billion gallons) higher than last November’s forecast, which was close to the average 2014 consumption forecast across the 12 editions of STEO published in 2013. The STEO gasoline consumption estimates include the volumes of ethanol contained in all gasoline-ethanol mixtures, including both E10 and higher blends. As shown in the graph above, the STEO forecast of 2014 gasoline consumption was generally declining between January 2013 and September 2013, but has risen over the past year. The STEO estimates are used by industry as an indicator of market conditions and provide the starting point for EIA’s longer term projections. The latest available […]

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IEA Cuts Oil-Demand Estimates as Saudi Exports Drop to 2011 Low

The International Energy Agency cut its global oil demand forecasts for 2015 and said Saudi Arabia exported the least in almost three years amid slowing purchases from China and Europe . Global demand will increase by 1.2 million barrels a day, or 1.3 percent, to 93.8 million barrels a day next year, the Paris-based adviser to 29 nations said in a report today. The expansion is 165,000 barrels less than it predicted a month ago. Second-quarter growth in consumption slid to a 2 1/2 year low, spurring Saudi Arabia to export the least since September 2011. “The recent slowdown in demand growth is nothing short of remarkable,” the IEA said. “While demand growth is still expected to gain momentum, the expected pace of recovery is now looking somewhat more subdued.” Brent crude futures slipped below $100 a barrel this week for the first time in 14 months amid booming […]

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IEA Cuts 2015 Oil Demand Forecasts

The International Energy Agency cut its forecast for the rise in oil demand this year calling the recent slowdown "nothing short of remarkable." Agence France-Presse/Getty Images The International Energy Agency Thursday trimmed its forecast for the rise in oil demand this year for the third month in a row , calling the recent slowdown in demand "nothing short of remarkable." In its closely watched monthly oil market report, the Paris-based energy watchdog said it expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month’s forecast and down by 300,000 barrels a day since July. According to the IEA, oil demand growth in the second quarter was at its lowest in 2½ years, dented by economic weakness in Europe and China , a trend the agency expects will continue to weigh on demand. "While demand […]

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SAUDI ARABIA

Saudi Arabia is the world’s largest holder of crude oil proved reserves and was the largest exporter of total petroleum liquids in 2013. In 2013, Saudi Arabia was the world’s second-largest petroleum liquids producer behind the United States and was the world’s second-largest crude oil producer behind Russia . Saudi Arabia’s economy remains heavily dependent on petroleum. Petroleum exports accounted for 85% of total Saudi export revenues in 2013, according to the Organization of the Petroleum Exporting Countries (OPEC)’s Annual Statistical Bulletin 2014 . With the largest oil projects nearing completion, Saudi Arabia is expanding its natural gas, refining, petrochemicals, and electric power industries. Saudi Arabia’s oil and natural gas operations are dominated by Saudi Aramco, the national oil and gas company and the world’s largest oil company in terms of production. Saudi Arabia’s Ministry of Petroleum and Mineral Resources and the Supreme Council for Petroleum and Minerals have […]

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OPEC Cuts Demand Outlook by Most in 3 Years on U.S. Shale

OPEC reduced forecasts for the amount of crude it will need to supply by the most in at least three years as surging North American shale output reduces reliance on the group’s supplies. The Organization of Petroleum Exporting Countries expects it will need to pump an average of 29.2 million barrels a day of crude next year, 200,000 a day less than it forecast a month ago. The group boosted estimates for supplies from countries outside OPEC by the same amount. The change implies that OPEC’s 12 members would need to cut output by about 1.1 million barrels a day from the 30.3 million they produced in August. Brent crude futures declined below $100 a barrel on Sept. 8 for the first time in 14 months amid constrained global consumption, swelling U.S. output and speculation that threats to supply in Iraq , Libya and Russia are fading. U.S. crude […]

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Saudi Arabia Told OPEC It Cut Oil Output 408k b/d in Aug.

Saudi Arabia , the world’s biggest crude exporter, told OPEC that it cut production by 408,000 barrels a day in August, amid signs of a supply surplus that’s pushed prices to a 16-month low. The kingdom produced 9.6 million barrels a day, compared with 10 million barrels daily in July, it said in a submission to the Organization of Petroleum Exporting Countries, according to the group’s monthly oil market report today. Data collected by Bloomberg News show no bigger monthly decline since December 2012. Other estimates collated by OPEC, based on what it calls secondary sources, show the nation cut output by 55,200 barrels to 9.86 million a day. “It does illustrate a desire not to oversupply the market, and it does illustrate they are actively defending $100 a barrel,” Mike Wittner , head of oil market research at Societe Generale SA, said by phone from New York . […]

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Libya’s embattled premier seeks support from UAE

DUBAI, United Arab Emirates (AP) — The Libyan prime minister has met with leaders of the United Arab Emirates to shore up support for his efforts to form a government after the elected parliament that chose him was forced to flee the capital by Islamist-allied militias over the summer. The UAE state news agency said that Abdullah al-Thinni was in the country Wednesday to discuss the importance of strengthening bilateral relations in a way that serves the joint interests of both countries. The UAE has cracked down hard on Islamist groups domestically and backed regional efforts to crush the Muslim Brotherhood. U.S. officials had suggested that the UAE and Egypt were behind air strikes on Islamist militias in Libya, but al-Thinni told reporters in Abu Dhabi that there was no evidence to support that claim.

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More Libyan crude available, OPEC says

VIENNA, Sept. 10 (UPI) — More barrels of oil on the global market in part because of Libya are keeping oil prices lower, the Organization of Petroleum Exporting Countries said. OPEC said in its monthly market report for September crude oil production from the 12 members of the cartel increased by 231,000 barrels per day last month to average 30.35 million bpd. Iraq and Saudi Arabia were the only two member states to post a decline in oil production since the last monthly market report. Libya, meanwhile, posted in the highest gains in terms of percent . Libya in August produced an average 538,000 bpd, a 26.5 percent increase from July and more than twice what it produced in June. "An agreement to open some Libyan ports and resume exports of crude made additional barrels available on the global market and applied downward pressure on light sweet crude oil […]

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New oil found in southern Iraq

KUWAIT CITY, Sept. 10 (UPI) — Kuwait Energy and its Emirati counterpart Dragon Oil announced Wednesday they’ve made their first discovery of oil at a license area in southern Iraq. "This is the first well drilled in our planned high-impact exploration campaign on Block 9, so we are delighted to have made a discovery so quickly," Kuwait Energy Chief Executive Officer Sara Akbar said in a statement. Kuwait Energy holds a 70 percent stake in the Block 9 area in Basra. The company said it produced 2,000 barrels of oil per day during a production test and will continue to appraise the discovery through the end of the year. Dragon Oil CEO Abdul Jaleel al-Khalifa said in a separate statement the discovery in Basra represent the "first significant success" in the company’s portfolio . Iraq is struggling to contain a threat from the Islamic State, a Sunni-led insurgent group […]

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PKK issue complicates Turkey’s role in fight against IS

Turkey Pulse On Sept. 10, US President Barack Obama will outline his administration’s plans for fighting the Islamic State (IS). His secretary of defense,  Chuck Hagel, was in Ankara Sept. 9  to see what role Turkey could take in this US-led coalition of the willing against IS militants in Iraq. Although the Turkish side refrained from making any clear public commitment to this coalition, it agreed to be part of it in principle. Turkish Foreign Minister Mevlut Cavusoglu stressed that Turkish officials are worried about a potential backlash that could cost the lives of 49 Turkey’s Mosul consulate hostages held by IS militants since June 11 , and are also concerned about Kurdistan Workers Party (PKK) members acquiring more weapons. "The weapons sent [to Iraq] should not end up in the hands of terrorist organizations. They should not end up in the hands of the PKK,"  Cavusoglu said Sept. 9 […]

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Turkey Is Courted by U.S. to Help Fight ISIS

ANKARA, Turkey — The Obama administration on Monday began the work of trying to determine exactly what roles the members of its fledgling coalition of countries to fight the Islamic State in Iraq and Syria will play, with Defense Secretary Chuck Hagel huddled with the leaders of the one country the administration has called “absolutely indispensable” to the fight: Turkey . But after hours of meetings here, there were no announcements of what the government of President Recep Tayyip Erdogan might do. In fact, Turkish officials meeting with Mr. Hagel eschewed the news conferences that usually accompany high-level visits from American officials. Rather, Turkey ’s foreign minister, Mevlut Cavusoglu, warned on the state-run Anatolia news agency that weapons sent by Western countries to fight ISIS could end up in the hands of the Kurdistan Workers’ Party, or P.K.K., which Ankara considers a terrorist group. “We have expressed our concerns,” […]

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Sunnis in Iraq Often See Their Government as the Bigger Threat

BAGHDAD — A group of Iraqi Sunni refugees had found shelter in an abandoned school, two families to a room, after fleeing fighters from the Islamic State in Iraq and Syria . They were gathered in the school’s courtyard last week when the Iraqi Air Force bombed them. The bombing, in Alam District near Tikrit, may well have been a mistake. But some of the survivors believe adamantly that the pilot had to know he was bombing civilians, landing the airstrike “in the middle of all the people,” said Nimr Ghalib, whose wife, three children, sister and nephew were among at least 38 people killed, according to witnesses interviewed last week, as well as human rights workers who detailed the attack on Wednesday. The attack fit a pattern of often indiscriminate shelling and airstrikes on Sunni areas by the armed forces of the Shiite-led Iraqi government. The strikes have […]

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Enterprise Seeks Commitments for Bakken-Cushing Oil Pipeline

Pipeline Construction Pipeline Construction | Click to Enlarge Enterprise Products Partners L.P. began a binding open commitment period in early Sept. of 2014 to determine shipper demand for capacity on a proposed new pipeline from the Williston Basin of North Dakota to the Cushing hub in Oklahoma. The 30-inch diameter, 1200-mile pipeline is expected to have an initial capacity of approximately 340,000 b/d of crude oil, expandable to more than 700,000 . Company officials say the Bakken-to-Cushing pipeline would also serve the Powder River and Denver-Julesburg (“DJ”) Basins, and have the capability to transport up to six grades of crude oil and products, including Rockies Condensate and Processed Condensate. Subject to sufficient customer commitments, the pipeline is expected to begin service in stages, starting with the DJ-to-Cushing portion in the fourth quarter of 2016, and should be fully operational by the third quarter of 2017. “This pipeline offers a reliable, safe, and economical solution that promotes continued development […]

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Gas price slide continues through December

WASHINGTON, Sept. 10 (UPI) — AAA reported a national average price for a gallon of regular unleaded gasoline of $3.43, a price that’s held relatively stable for the last few weeks. The average price is about 4 percent, or 14 cents, less than it was on this date in 2013. AAA has attributed a general decline in retail gasoline prices to ample supply and a market that’s shrugged off geopolitical concerns. Seasonally, gasoline prices fall in the United States after the Labor Day holiday as demand wanes. By mid-September, refineries also switch to a winter blend of gasoline, which is cheaper to make because it doesn’t have to be blended to meet emissions requirements in place during warmer months. "Motorists usually enjoy cost savings during this period; however geopolitical instability, hurricanes or events that disrupt production could still cause temporary spikes in regional prices in the coming months," the […]

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API: Energy boosting U.S. economy

WASHINGTON, Sept. 10 (UPI) — A study conducted by the U.S. energy industry’s American Petroleum Institute finds the sector is supporting around 8 percent of the nation’s economy. "Oil and natural gas companies are only one part of a much larger economic success story that is creating job growth up and down the supply chain," API Upstream Group Director Erik Milito said in a statement. API published a vendor survey listing more than 30,000 segments across the country tied to U.S. energy sector. As of 2011, API said the oil and gas industry has supported 9.8 million full- and part-time jobs and 8 percent of the U.S. economy. Its study found benefits across the board , with the No. 1 state, Texas, boasting 1.9 million energy jobs to the bottom, the District of Columbia, with 13,700 jobs. API credited the growth to horizontal drilling and hydraulic fracturing in shale […]

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Cheapest U.S. Gasoline Since 2010 Set to Get Cheaper

Drivers across the U.S. enjoying the lowest pump prices for this time of year since 2010 will probably see further declines as refineries benefiting from the shale boom produce record amounts of fuel. The average is $3.433 a gallon, down 6 percent since Memorial Day on May 26, AAA data show. That’s the largest decline from the start of the summer driving season since 2008. U.S. refineries operated at the highest-ever seasonal rates every week since July 4. Processors are using domestic crude that costs less than foreign imports as horizontal drilling and hydraulic fracturing in shale formations increased output to the most since 1986. Gasoline will drop another 10 to 20 cents a gallon by the end of October as retailers switch to cheaper winter-blend fuel, said Michael Green , a Washington-based spokesman for AAA, the largest U.S. motoring group. “Refineries this summer were running at record-high levels […]

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45-Year High U.S. Oil Output May Cut Pump Price, Imports

U.S. crude production will surge to a 45-year high next year, lowering prices and reducing the need for imports, government forecasters said yesterday. The U.S. Energy Information Administration raised its estimate of 2015 output by 250,000 barrels a day to 9.53 million, the most since 1970, Adam Sieminski , the administrator of the EIA, said in a statement yesterday. The agency forecast output of 8.53 million barrels a day this year, up from 7.45 million in 2013. “U.S. production levels are astounding,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis , which oversees $2.6 billion, said by phone yesterday. ‘We will see further revisions, because these technologies get better over time.’’ The EIA also reduced its price forecasts. West Texas Intermediate will average $94.67 a barrel in 2015 versus the August projection of $96.08, the EIA said in its monthly Short-Term Energy Outlook . The […]

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NERA: U.S. still importing oil if ban lifted

WASHINGTON, Sept. 10 (UPI) — If the United States lifts a ban on crude oil exports it can realize economic benefits, though it will still be a net importer, a report prepared by NERA Economic Consulting finds. NERA prepared a 120-page report for The Brookings Institution that says lifting the ban on crude oil exports doesn’t eliminate foreign dependency. Legislation enacted in response to the oil embargo from Arab members of the Organization of Petroleum Exporting Countries limits crude oil exports from the United States. "Even with the lifting of the crude oil export ban, the U.S. will remain a net importer of crude oil," the report, published Wednesday, finds. Supporters of lifting the ban say it will increase U.S. leverage overseas and push the price of petroleum products like gasoline lower. Opponents question those claims and argue more exports would come with environmental consequences. NERA finds more U.S. […]

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Florida waters warmer, USGS finds

WASHINGTON, Sept. 10 (UPI) — USGS analysis finds water temperatures from July to September in the region in recent decades were about 2 degrees Fahrenheit warmer when compared to a century earlier. Ilsa Kuffner, lead author for the USGS report, said water temperatures are on average 84 degrees Fahrenheit during the late summer months . "When corals are exposed to water temperatures above 84 F they grow more slowly and, during extended exposure periods, can stop growing altogether or die," the USGS marine biologist said. The study comes on the heels of two reports warning of the impact of global climate change. A report this week from the World Meteorological Organization finds the warming effect of the atmospheric accumulation of greenhouse gases is increasing in part because of the continued use of fossil fuels . A study from the National Audubon Society suggests many North American bird species may […]

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China’s Global Mining Play Is Failing to Pan Out

Citic’s iron-ore mine in Western Australia, shown above late last year, cost about four times its initial budget, is expected to lose money this year and is in a legal battle with local partner Clive Palmer. ZUMAPRESS.com CAPE PRESTON, Australia—A $10 billion iron-ore mine that has taken more than eight years to develop near this remote Australian port is a glaring example of how much has gone wrong with China’s decadelong push to buy up raw materials around the world. Citic Pacific’s Sino Iron mine cost roughly four times its initial budget, and analysts who track the project say it likely will lose hundreds of millions of dollars in 2014, its first full year of production. Citic Pacific, a Hong Kong-listed subsidiary of Chinese state-owned behemoth Citic Group, and its contractors made a series of blunders, from thinking they could import workers at Chinese pay levels to a botched […]

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China’s August PPI down 1.2 pct

BEIJING, Sept. 11 (Xinhua) — China’s producer price index (PPI), which measures inflation at wholesale level, dropped 1.2 percent year on year in August, the National Bureau of Statistics (NBS) said on Thursday. The PPI declined for a 30th straight month and at a faster pace than the previous month, confirming pressure from slowing economic growth. The PPI dropped 0.9 percent from a year ago in July, down from 1.1 percent in June and 1.4 percent in May. Factory prices of production materials declined 1.7 percent in August, contributing 1.3 percentage points to the PPI drop, while factory prices for consumer goods gained 0.2 percent, data showed. Yu Qiumei, senior statistician of the NBS, attributed the decline to price falling for a series of industrial products and material. Prices of crude oil and oil products ended a rising streak and started falling in August, while prices of coal, steel, […]

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When fracking and free speech collide

Water drawn from Steve Lipsky’s property in Parker County, Texas, burns, he says, from the high amount of methane introduced into the water supply by a fracking operation near his home. Les Stone for Al Jazeera America Steve Lipsky fracking What started as a short YouTube video and a couple of local news interviews about a Texas landowner being able to light his water on fire has ballooned into a free speech fight that’s being closely watched by anti-fracking activists across the country. Steve Lipsky has complained for years that fracking company Range Resources polluted his drinking water and streams that run through his property. The company sued him in 2011 for defaming its reputation for environmental stewardship. Now Lipsky will have a chance to argue his case in front of the Texas Supreme Court,  The Texas Tribune reported this week . The court will decide whether his right […]

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U.S. Readies New Energy Sanctions on Russia

A sign at an Exxon station in Miami, Fla., on July 31, 2008. Getty Images WASHINGTON—The U.S. is close to imposing the toughest round of energy sanctions so far on Russia, measures that would also hit Western companies like Exxon Mobil that are working with Russian state-controlled oil companies. The sanctions, which the European Union is expected to match, would ban energy companies from working with Russia on future oil exploration in the Russian Arctic, deep seas and shale rock formations, according to a U.S. official. The sanctions wouldn’t affect current oil production, but could imperil the future of existing partnerships, including a deal between Exxon Mobil Corp. and OAO Rosneft , the Kremlin-controlled oil giant, to drill in the Arctic Ocean. Previous sanctions banned only the export of technology that could be used in such projects. Other companies potentially affected include BP PLC and Royal Dutch Shell PLC. […]

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Gazprom Said to Face Biggest Drop in EU Revenue in 5 Years

OAO Gazprom (GAZP) , the world’s largest natural gas exporter, may face the biggest decline in European gas revenue in five years as demand weakens and buyers negotiate discounts, according to two company officials. Sales to the European Union, the source of 40 percent of revenue by Russian accounting standards, are forecast to fall more than 10 percent to about $55 billion this year, said the officials, asking not to be identified as the forecast isn’t public yet. Gazprom’s press service declined to comment. The forecast doesn’t take into account the rift between the EU and Russia over its involvement in the crisis in Ukraine , the main transit route for gas to Europe . While flows so far remain unaffected, the EU is seeking to ease reliance on Russian gas. Demand is falling after the region pumped a record volume of the fuel into underground storage to guard […]

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Gazprom First-Quarter Profit Falls 41% on Ukrainian Gas Debt

OAO Gazprom, Russia ’s biggest company, said its first-quarter profit slumped 41 percent on a foreign currency loss and Ukraine’s debt for natural gas supplies. Net income dropped to 223 billion rubles ($6 billion) from 381 billion rubles a year earlier, the Moscow-based exporter said in a statement on its website. Gazprom, which provides 30 percent of the European Union’s gas, halted supplies to Ukraine in June over unpaid bills, including $1.45 billion from 2013. The Russian producer now estimates it’s owed $5.3 billion after raising the price for Ukraine in April to a level higher than it charges Germany , which the government in Kiev has rejected as unfair. The quarter marks the “start of not an easy year,” Gazprombank energy analysts wrote in an e-mailed note before the report. While a weaker ruble is compensating for a decrease in Gazprom’s export prices, the biggest negative factor is […]

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Russia tightens gas supplies to Poland

General view of the gas station near the border between Ukraine and Poland in the settlement of Drozdovychi, 120 km (75 miles) west of ukrainian city of Lviv. Moscow has reduced its gas exports to Poland in an apparent attempt to prevent EU countries from re-exporting Russian gas as a lifeline to Ukraine. Russia halted its direct gas shipments to Ukraine in June amid a pricing dispute that has accompanied their broader conflict over Crimea and eastern Ukraine. The latest move by state-controlled Gazprom to crack down on re-exports represents a further tightening of Moscow’s noose around Kiev before a winter that could cripple its economy if it cannot secure sufficient energy supplies. More On this topic IN Europe Poland’s state gas group PGNiG said on Wednesday that Gazprom had delivered 20 per cent less gas on Monday and 24 per cent less gas on Tuesday than it was […]

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‘Yes’ vote means more oil, Scotland says

ABERDEEN, Scotland, Sept. 10 (UPI) — Only a "yes" vote on the independence referendum will give Scotland the chance to realize the North Sea’s oil and gas potential, the energy minister said. Scottish Energy Minister Fergus Ewing said Wednesday he welcomed a paper published from the University of Aberdeen finding 99 oil discoveries will be commercially viable over the next 30 years . "In value terms half the wealth from Scotland’s oil remains and by grabbing the independence opportunity later this month we can put an end to poor U.K. stewardship of this vital resource," Ewing said in a statement. Scotland votes Sept. 18 in a one-sentence referendum for independence from the United Kingdom. The government in Edinburgh says it could support its economy with oil and gas reserves , while relying on renewable resources for power. The University of Aberdeen study finds 58 of the expected new discoveries […]

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London watching European gas row closely

LONDON, Sept. 10 (UPI) — Few in the European community could find relief in the event of a winter crisis stemming from transit issues in Ukraine, the British energy minister said. European consumers get about a quarter of their gas needs from Russia, though the bulk of that supply runs through the Soviet-era transit network in Ukraine. "We have looked at our gas resilience to a range of very extreme scenarios, including things we hope do not happen in Ukraine," British Energy Secretary Ed Davey said. Russian energy company Gazprom in 2006 and 2009 cut gas supplies to Ukraine because of contractual disputes. That left downstream consumers in Europe without gas, a situation that could be repeated because of ongoing conflict in eastern Ukraine . Russian Energy Minister Alexander Novak committed last week to meeting contractual obligations to Europe. Though the United Kingdom does not directly import gas from […]

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Gazprom Limits Polish Gas Supplies as Reverse Flows Halt

Russia’s OAO Gazprom limited natural gas flows to Poland , preventing the European Union member state from supplying Ukraine via so-called reverse flows. Polskie Gornictwo Naftowe i Gazownictwo SA, or PGNiG, got 20 to 24 percent less fuel than it ordered from Gazprom Export over the past two days and is compensating flows with alternative supply, the company said today in an e-mailed statement . Poland halted gas supply to Ukraine at 3 p.m. Warsaw time today, according to Ukraine’s UkrTransGaz. Ukraine is seeking to replace some of its Russian gas with fuel from Europe after Gazprom halted its supplies on June 16 in a dispute over debt and prices, echoing spats in 2006 and 2009 that left European customers short of fuel. Gazprom Chief Executive Officer Alexey Miller said in June the company might limit supplies to gas-metering stations where it observed reverse flows. “It would appear from […]

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Ukraine says Russia withdrawing forces from east, sees boost for peace

KIEV (Reuters) – Ukraine’s president said on Wednesday Russia had removed the bulk of its forces from his country, raising hopes for a peace drive now underway after five months of conflict in which more than 3,000 people have been killed. Moscow denies sending troops into eastern Ukraine to support pro-Russian rebels battling Ukrainian forces, despite what Kiev and its Western backers say is overwhelming evidence to the contrary. Moscow also denies arming the separatists. President Petro Poroshenko told a televised cabinet meeting Ukraine would remain a sovereign, united country under the terms of a peace roadmap approved last Friday, but said parts of the east under rebel control would get special status. "According to the latest information I have received from our intelligence, 70 percent of Russian troops have been moved back across the border," Poroshenko said. "This further strengthens our hope that the peace initiatives have good […]

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