Category:

Scottish independence: New poll eases pressure on No camp

Prime Minister David Cameron speaks during a visit to Scottish Widows offices in Edinburgh, where he made an impassioned plea to keep Scotland part of the union, saying he would be "heartbroken" if the UK was torn apart. PRESS ASSOCIATION Photo. Picture date: Wednesday September 10, 2014. See PA story REFERENDUM Main. Photo credit should read: Andrew Milligan/PA Wire The embattled campaign against Scottish independence earned some respite on Wednesday as a poll gave the No side a six-point lead and leading oil bosses joined Mark Carney, the Bank of England governor, in warning of the potential costs of separation. On the day that David Cameron said he would be “heartbroken” if the United Kingdom was broken up, a Survation poll for the Daily Record suggested the No campaign’s lead was holding steady at 53 against 47 for Yes. More On this story On this topic IN UK Politics […]

Posted On : Published By : Tom Whipple
Category:

Scotland independence vote sets North Sea oil industry on edge

Scotland’s independence vote has received a last-minute jolt of energy as polls show a surge by the Nationalist camp, which has effectively countered a mostly downbeat “No” campaign and picked holes in London’s claims to be a responsible custodian of North Sea oil. A week ahead of the September 18 referendum and with oil remaining a major issue, pro-Union politicians and the financial community in London have been alarmed by polls showing the Nationalists level-pegging, after months in which the “Better Together” camp had a comfortable lead. Leaders in industry and government have presented arguments knocking down Nationalist aspirations to a prosperous Norwegian-style state underpinned by a sovereign wealth fund that would save oil wealth for future generations. But the arguments against–such as that Norway is at an earlier stage in its oil production and is thus not comparable, or has a more favorable demographic situation–have proved less persuasive […]

Posted On : Published By : Tom Whipple
Category:

Brent Trades Below $100 for Longest Run in 16 Months

Brent held below $100 a barrel for the longest period since April 2013, amid speculation that slowing economic growth will add to an excess of supply. West Texas Intermediate was steady in New York . Brent was little changed in London , trading below $100 for a third day, the longest spell since a six-day run to April 23, 2013. Chinese Premier Li Keqiang announced money-supply growth was the slowest in five months. Oil prices are poised to drop next year as U.S. crude production reaches a 45-year high, the Energy Information Administration said yesterday. Still, weekly U.S. government data published today is forecast to show crude inventories contracted last week. “We are now quite open to the idea of prices remaining weak at least until the end of the year,” David Wech , an analyst at consultants JBC Energy GmbH in Vienna, said in an e-mailed report. “The […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Surges as Technical Traders Push Rally

(Updates price table.) By Timothy Puko NEW YORK–Natural-gas prices posted their biggest gains in nearly three months on Tuesday as technical traders pushed the rally into a second day. Natural gas for October delivery briefly topped $4 a million British thermal units before ending the day up 10.8 cents, or 2.8%, at $3.984/mmBtu on the New York Mercantile Exchange. It was the largest one-day rise since June 12. Prices have gained 5% in two days, surprising many analysts and traders who struggled to pinpoint the spark for so much buying at a time when production is overwhelming demand. "I didn’t really see a whole lot of reason for it to go up this much," said Kyle Cooper, managing director of research for gas firm Cypress Energy in Houston. "The market really seems comfortable in the $3.80 to $4 range. And the market really seems to want to test each […]

Posted On : Published By : Tom Whipple
Category:

International Energy Outlook 2014

Overview International Energy Outlook 2014 cover. World markets for petroleum and other liquid fuels have entered a period of dynamic change—in both supply and demand. Potential new supplies of oil from tight and shale resources have raised optimism for significant new sources of global liquids. The potential for growth in demand for liquid fuels is focused on the emerging economies of China, India, and the Middle East, while liquid fuels demand in the United States, Europe, and other regions with well-established oil markets seems to have peaked. After a long period of sustained high oil prices, improvements in conservation and efficiency have reduced or slowed the growth of liquid fuels use among mature oil consumers. The changes in the overall market environment have led the U.S. Energy Information Administration (EIA) to focus on reassessing long-term trends in liquid fuels markets for the 2014 edition of its International Energy Outlook […]

Posted On : Published By : Tom Whipple
Category:

IEA: Energy efficiency a hidden fuel

The director of the International Energy Agency said Tuesday from Berlin energy efficiency is a hidden fuel that could support economic growth. The IEA published a study saying energy efficiency may have benefits that go beyond just cutting back on demand . "This report lays out the case for governments to invest more time in measuring the impacts of energy efficiency policies, to improve understanding of their role in boosting economic and social development and to facilitate policy design that maximizes the benefits prioritized by each country," IEA Executive Director Maria van der Hoeven said in a statement. The IEA said it’s trying to reframe the narrative of energy efficiency to show it’s a hidden fuel that can be used as a source of energy security and a builder of national wealth. The paper suggests nearly 60 percent of the economic potential from energy efficiency is unrealized through 2035 […]

Posted On : Published By : Tom Whipple
Category:

EIA Lowers Price Forecasts for Brent, WTI Through 2015

Oil prices are poised to drop next year as U.S. crude production reaches a 45-year high, government forecasters said today. West Texas Intermediate will average $94.67 a barrel in 2015 versus the August projection of $96.08, the U.S. Energy Information Administration said today in its monthly Short-Term Energy Outlook . The EIA trimmed its Brent crude forecast for next year to $103 from $105. Rising U.S. crude production is bolstering the country’s energy independence, Adam Sieminski , the administrator of the EIA, said in a statement. The agency forecast output of 8.53 million barrels a day this year, up from 7.45 million last year, and 9.53 million in 2015, the most since 1970. It’s also pushing down the EIA’s forecast for gasoline prices. “The U.S. oil production forecast for 2015 was revised up by 250,000 barrels per day, with total output expected to be at the highest level since […]

Posted On : Published By : Tom Whipple
Category:

Libyan Refugees Stream to Tunisia for Care, and Tell of a Home That Is Torn Apart

SFAX, Tunisia — Libyans seeking medical care and a refuge from war are filling the private clinics in this coastal Tunisian city for the second time in three years, bringing with them fresh accounts of the violence racking their country. Since the revolution three years ago that overthrew Col. Muammar el-Qaddafi, about 1.8 million Libyans — nearly a third of the country’s population — have fled to Tunisia. A new wave of refugees has arrived in recent months as fighting has engulfed the Libyan capital , Tripoli, driven away by random shelling and shooting, as well as shortages of cash, electricity and fuel. “The country has plunged into the sea,” said Jomaa Abdullah, 68, a farm laborer from near Tripoli who had brought his son for treatment for gunshot wounds. “It’s gone. It’s going to be hard for it to come back.” The refugees’ accounts of the most recent […]

Posted On : Published By : Tom Whipple
Category:

Iran’s Talks With Russia May Strike at Sanctions

Iran sent new signals on Tuesday that it was seeking to subvert the Western sanctions on its contentious nuclear energy program, adding uncertainties in advance of another round of negotiations next week in New York before the United Nations General Assembly. The Iranians said they had been engaged in talks with Russia, a member of the group of big powers negotiating with Tehran, about economic cooperation in energy, which could undercut the sanctions. South Africa, a former Iranian oil customer that has honored the sanctions in deference to Western pressure, said that, after talks with an Iranian delegation, it hoped to resume imports in three months. On Monday, Iran’s negotiator at the nuclear talks, Abbas Araghchi, the deputy foreign minister, said his country would not countenance any new economic penalties imposed by the United States, after an announcement by the Obama administration last month that it was adding more […]

Posted On : Published By : Tom Whipple
Category:

US Crude Export Prospects Expand Niche For Oilfield Stabilizers

HOUSTON, Sept 9 (Reuters) – Orders have surged for a type of oilfield equipment primarily used to make a light variety of crude safe for pipelines, after a federal ruling signaled that the specialized units also offered a workaround for companies eager to export oil from the U.S. shale boom. The units, known as stabilizers, process that type of crude, known as condensate, just enough to qualify it for export as a refined product, allowing oil producers to ship it abroad without violating a decades-old ban. Dozens of companies that build stabilizers, ranging from small private firms to pipeline and logistics leader Kinder Morgan Energy Partners, stand to benefit from new orders. Oil producers in condensate-heavy shale crude plays like the Eagle Ford and the western Permian Basin in Texas also could fetch better condensate prices if exported, as U.S. refiners have limited demand for it. Stabilizers are simpler […]

Posted On : Published By : Tom Whipple
Category:

Iran, Russia embrace over energy

There are few barriers in the way of expanded ties in the energy sectors of Iran and Russia, officials said during bilateral meetings in Tehran. Iranian Energy Minister Hamid Chitchian hosted Russian Energy Minister Alexander Novak for a two-day summit concluding Tuesday in Tehran. Both sides already cooperate in a variety of fields, with Russia supplying fuel for Iran’s nuclear reactor at Bushehr. The Iranian minister said Russia agreed to help build four new conventional power plants in Iran. The new facilities could add as much as 3,500 megawatts of electricity to the Iranian grid. Russian officials during the summit said energy is an "instrumental" part of the bilateral relationship with Iran. Western governments have expressed concern over the possibility that Iran was working on an oil-for-goods swap deal with Russia. Iran is the target of Western sanctions imposed in response to a controversial nuclear program, while Russia’s energy […]

Posted On : Published By : Tom Whipple
Category:

Powerful blast kills 28 rebel leaders in Syria

DAMASCUS, Sept. 9 (Xinhua) — At least 28 Syrian rebel leaders of a same group were killed on Tuesday when a powerful blast targeted their gathering place in the northwestern province of Idlib, the oppositional Syrian Observatory for Human Rights reported. The slain rebels were leaders of the Ahrar al-Sham militant group. A booby-trapped car ripped through their meeting place in the town of Ram Hamdan in the countryside of Idlib, the report said. Other reports said the main leader of Ahrar al-Sham, Hassan Aboud, who also goes by the nom de guerre of Abu Abdullah al-Hamwi, was also killed in the deadly blast. The opposition activists have so far stopped short of identifying the party behind the blast, even though it’s likely part of the rebel-on-rebel infighting that has raged in recent months of the crisis. Ahrar al-Sham is a coalition of Islamist and Salafist units which formed […]

Posted On : Published By : Tom Whipple
Category:

Fragile Iraqi Government Faces Sunni Demands for Reforms

BAGHDAD—Iraq’s fragile new government, forged under substantial U.S. pressure, could break apart if it fails to quickly meet the demands of the restive Sunni minority, representatives of the group said Tuesday. The disgruntled Sunni and Kurdish minorities have reluctantly thrown their support behind Shiite Prime Minister Haider al-Abadi, whose cabinet was approved by parliament late Monday. The slate of ministers has drawn the loudest protests from local leaders in Sunni-majority provinces now occupied by the extremist group Islamic State. These leaders, many of whom the Obama administration hopes to bring on side to confront the insurgents, said they would offer little support to Baghdad unless the new government makes real changes. Among their demands are the release of thousands of Sunni prisoners held on terror charges that human-rights groups said are dubious; the repeal of laws barring supporters of the Saddam Hussein regime from politics; and greater representation in […]

Posted On : Published By : Tom Whipple
Category:

Official: Fighting in Iraq delays Iran gas exports

TEHRAN, Iran (AP) — Iran’s oil minister says the fighting between Iraqi troops and Islamic State militants will delay the planned start of natural gas exports to neighboring Iraq. Bijan Zanganeh is quoted on the ministry’s official website on Wednesday as saying that the "upheaval in Iraq is postponing the exports." The pipeline, which is still under construction on the Iraqi side, goes partly through territory controlled by the Islamic State group. Pipeline workers, mainly Iranians, have come under attack several times, especially in Diyala province, which has disrupted work. It’s unclear when the new gas pipeline will be finished or when it will go on line. Under a 2012 agreement, Iran was to start exporting gas to Iraq in 2014 through the new pipeline, which is to feed three power plants in Iraq.

Posted On : Published By : Tom Whipple
Category:

China Deploys Troops in South Sudan to Defend Oil Fields, Workers

United Nations peacekeepers secure a section of Juba airport in South Sudan on Aug. 12. China has deployed soldiers to South Sudan to protect Chinese workers. Agence France-Presse/Getty Images KAMPALA, Uganda—China began deploying 700 soldiers to a United Nations peacekeeping force in South Sudan to help guard the country’s embattled oil fields and protect Chinese workers and installations, a spokesman for the African nation’s president said Tuesday. The airlift of the Chinese infantry battalion to the South Sudanese states of Unity and Upper Nile, the site of the only operating oil fields still under the control of the central government in Juba, was expected to take several days, spokesman Ateny Wek Ateny said. While Beijing’s troops will operate under U.N. command, their posting to South Sudan marks a sharp escalation of China’s efforts to ensure the safety of its workers and assets in Africa and guarantee a steady flow […]

Posted On : Published By : Tom Whipple
Category:

Nigeria Oil Theft At Highest Level in Years

press release Nigeria is facing its worst oil crisis in years, as the country is losing billions of dollars due to theft. In Southern Ijaw in Bayelsa State, Al Jazeera’s Rawya Rageh follows an oil theft arrest and the destruction of multiple illegal refineries for stolen crude. "Despite these efforts, oil theft in Nigeria is at its highest levels in five years since the government gave amnesty to former rebels in the area," she says. "The government says eight billion dollars in revenue were lost in ‘industrial-scale’ theft last year and multinational oil giants have started reducing their on-shore presence here, selling off fields as a result of the theft." She also speaks to illegal oil workers, who say they have no other potential form of income, and to activist Nengi James, who blames the government for not doing enough to secure the pipeline infrastructure and prosecute suspects. "Despite […]

Posted On : Published By : Tom Whipple
Category:

IEO2014: World liquid fuels consumption to rise 38% by 2040

HOUSTON, Sept. 9 09/09/2014 In the 2014 edition of its International Energy Outlook (IEO2014), the US Energy Information Administration projected world liquid fuels consumption to rise 38% by 2040. The agency also pointed out that world markets for petroleum and other liquid fuels have entered a period of dynamic change—in supply and demand. “The potential for growth in demand for liquid fuels is focused on the emerging economies of China, India, and the Middle East, while liquid fuels demand in the US, Europe, and other regions with well-established oil markets seems to have peaked,” EIA said. In countries outside the Organization for Economic Cooperation and Development, demand growth has moderated as key economies, including China, India, and Brazil, have seen slower economic growth and correspondingly slower growth in liquids demand compared with the past 2 decades. Liquids consumption among OECD countries, which reached a peak of 50 million b/d […]

Posted On : Published By : Tom Whipple
Category:

Expansion of Panama Canal expected to open in 2016

MADRID (AP) — Panama’s president says the major expansion of the Panama Canal will be completed in time to open for business in the beginning of 2016. The project is expected to be finished in December 2015, and President Juan Carlos Varela says it will open early the following year, despite construction setbacks. A dispute with the European consortium that is expanding the canal led to a two-week work stoppage earlier this year. Varela said Tuesday in Spain that Panama is working closely with Madrid and with Spanish company Sacyr, which is leading the consortium. The $5.25 billion project aims to reduce congestion and expand capacity. The new channel will be able to accommodate ships with twice the cargo capability of vessels that currently traverse the existing canal.

Posted On : Published By : Tom Whipple
Category:

Petrobras Seeking Access to Former Executive’s Testimony

Petroleo Brasileiro SA (PBR) requested access to a former executive’s allegations of a kickback scheme involving the state-run oil producer in a scandal that threatens to influence the outcome of presidential elections. Petrobras, as the Rio de Janeiro-based company is known, asked the judge investigating the so-called Car Wash money-laundering case for details of testimony given by former refining head Paulo Roberto Costa, it said yesterday in a statement. The oil producer also wrote to companies cited by Brazilian press as allegedly involved in kickbacks, Petrobras said, without identifying them. Veja magazine reported over the weekend that a group of more than 30 politicians, including members and allies of President Dilma Rousseff’s Workers’ Party, allegedly received bribes linked to Petrobras contracts. The Sao Paulo-based magazine said the list of names was given by Costa during testimony to the federal public prosecutor. Costa, who is in jail as the police […]

Posted On : Published By : Tom Whipple
Category:

BofA Sees Deficit Risk on Oil as Auctions Vanish: Russia Credit

Oil falling below $100 a barrel for the first time in 15 months is a signal that Russia can’t stay out of the bond market indefinitely after the Finance Ministry canceled its eighth auction in a row. Crude dropped to $98.96 in London today, what would be the weakest level on a closing basis since April 17 last year and a 12 percent retreat in the third quarter. Ruble-denominated debt handed investors the biggest loss in the period in dollar terms among 31 emerging markets monitored by Bloomberg . With no auctions since mid-July, a steeper decline in Russia’s main export earner could flip the nation’s $19 billion budget surplus into a deficit by year-end, according to Bank of America Corp. U.S. and European Union sanctions over Ukraine drove 10-year ruble borrowing costs 120 basis points higher since June. That compares with a 66 basis-point drop in Brazilian yields. […]

Posted On : Published By : Tom Whipple
Category:

Japan Takes Another Step Toward Restarting Nuclear Power Plants

Japan ’s atomic regulator today approved a safety report for two reactors owned by Kyushu Electric Power Co., another step toward restarting plants shut after the Fukushima nuclear disaster more than three years ago. The report was approved by the regulator’s commissioners at a meeting in Tokyo today. The reactors must still clear two more steps in the stricter safety approval process set up by the Nuclear Regulation Authority after the meltdown of three reactors at the Fukushima plant north of Tokyo in 2011. The two units are unlikely to restart before the first quarter of 2015, Hidetoshi Shioda, a Tokyo-based analyst at SMBC Nikko Securities Inc., said last month in a report. With all Japan’s 48 operational nuclear plants shut for safety reviews, the country will have functioned without nuclear power for one year on Sept. 15. Kyushu Electric is among 10 utilities that have applied for safety […]

Posted On : Published By : Tom Whipple
Category:

Looking Beyond China, Some Companies Shift Personnel

SINGAPORE — General Motors moved the headquarters of its international division here from Shanghai last month. Archer Daniels Midland, the agribusiness giant, is gradually doing the same with its Asia and Pacific operations. Other multinationals, like IBM, have shifted staff members here from China for a few functions, like treasury operations. “I’m going to spend a lot of time going back and forth — the five-hour flight is going to be my monthly bus trip,” said Ismael Roig, the president of Archer Daniels Midland’s Asia and Pacific operations. The moves reflect the broader evolution of China, now the world’s largest market for cars, flat-panel televisions and scores of other products. The Chinese economy has become so large and affluent that companies increasingly treat it like Europe, with reports going directly to head offices in home countries and no longer lumped in with those from developing countries. “We are big […]

Posted On : Published By : Tom Whipple
Category:

Oil Sands Companies to Adopt Voluntary Environmental Commitments in Canada

FORT MCMURRAY, Alberta—A group of Canadian oil sands producers, including some of the world’s biggest energy companies, is prepared to commit to specific environmental impact reduction targets later this month. The plan marks the first commitment by the industry consortium, which was set up two and a half years ago in response to criticism about the rapid pace of development of oil sands projects in northern Alberta’s boreal forests. "We are in a position to launch our first two performance goals within two weeks," Dan Wicklum, Chief Executive of Canada’s Oil Sands Innovation Alliance, said Tuesday. That environmental-technology partnership, known as Cosia, brings together the R&D departments of 14 energy producers, including the Canadian units of ConocoPhillips , Exxon Mobil Corp. and Royal Dutch Shell PLC. Mr. Wicklum declined to detail the voluntary commitments, but said they apply to water use at oil-sands strip mines and in subterranean oil […]

Posted On : Published By : Tom Whipple
Category:

Fossil Fuels Stir Debate at Endowments

A nationwide showdown between activists and universities over investments in coal, oil and gas intensified Tuesday after a University of California task force abruptly pulled back a draft recommendation not to sell its fossil-fuel holdings. The group—charged with advising the university’s investment committee—had planned to suggest that the state system join Harvard University, Yale University and Brown University in holding fast against activist calls to dump their fossil-fuel investments, said people familiar with the discussions. But in an hourlong meeting Tuesday, several task-force members successfully argued for preserving the option of divestment. The task force subsequently removed from its recommendation to an investment committee language stating that selling those investments "would not meaningfully impact climate change," these people added. A system spokeswoman said the university isn’t currently considering a complete fossil-fuel divestment but may decide to sell some assets as it sets new investment guidelines. The deliberations at the […]

Posted On : Published By : Tom Whipple
Category:

Former Obama Aide Summers Calls for End of Oil Export Ban

If the U.S. ban on oil exports is lifted, the only losers would be refiners that are now benefiting from crude prices cheaper than the global benchmark, said Larry Summers, President Barack Obama ’s former economic adviser. In an unconditional endorsement yesterday of ending the decades-long export ban, Summers said few public policy changes would hold such obvious benefits. Allowing more exports would lower gasoline prices, according to an analysis by the Brookings Institution, a Washington-based research group that analyzes national public policy. Summers, a former U.S. Treasury secretary and now president emeritus of Harvard University, agreed drivers would pay less at the pump, and he said billions of dollars of additional investment would be added to the economy if the export ban ended. “I don’t really understand who the losers are who are very important,” Summers said at a Brookings event in Washington. His remarks and the report […]

Posted On : Published By : Tom Whipple
Category:

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 […]

Posted On : Published By : Tom Whipple
Category:

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 […]

Posted On : Published By : Tom Whipple
Category:

Why Gasoline Prices Vary So Much From State-To-State

Why Gasoline Prices Vary So Much From State-To-State Expand If you’ve ever driven cross-country you know how much the price of gasoline can vary, ranging from nearly $4.00 in San Francisco to just a hair over $3.00 in Roanoke, Virginia. What’s the deal? Give credit to higher taxes, distance from supply, and type of fuel. Taxes Why Gasoline Prices Vary So Much From State-To-State Expand The map above comes from The American Petroleum Institute via ExxonMobil so take it with a coastline-cover-in-oil-sized grain of salt, but it’s accurate to say that the difference in taxes does play a role as everyone plays the federal rate of 18.4 cents-per-gallon (well, not Tesla drivers), but consumers in California have, for instance, pay 47 cents more per gallon than drivers in Alaska. But as this map from Gas Buddy (at the top of this post) shows the difference is greater than just […]

Posted On : Published By : Tom Whipple
Category:

US Boosts 2015 Oil Forecast As Shale Powers Push To 10 MMbpd

NEW YORK, Sept 9 (Reuters) – The U.S. government on Tuesday jacked up its forecast for oil production next year by 250,000 barrels per day (bpd) as the boom in shale oil drilling continues to confound expectations of slower growth. The U.S. Energy Information Administration now expects domestic output to rise to 9.53 million bpd, growing by around 1 million bpd for a third consecutive year, according to its latest monthly short-term energy outlook. A month ago the EIA had predicted output growth would slow in 2015 to 800,000 bpd. The U.S. shale boom has allowed producers to unlock thousands of barrels of reserves, putting the United States on course to become the largest producer of oil globally, which would dramatically reduce its dependence on imports. "Rising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports next […]

Posted On : Published By : Tom Whipple
Category:

Utica Shale Q2 gas production up fivefold from year ago: state data

Natural gas production from Ohio’s Utica Shale rose fivefold in the past year, according to data form the Ohio Department of Natural Resources. Based on reports from gas drillers, the Utica was producing close to 1 Bcf/d at the end of the second quarter, up from 165,550 Mcf/d at the same point in 2013. Gas output from the play in Q2 also was up 32% from Q1. The number of Utica wells drilled at the end of the second quarter doubled year on year to 562, 90% of which were hooked up to sales, with 58 wells awaiting pipelines or processing capacity, DNR reported. Chesapeake Energy, which pioneered the play, was the top gas producers with 109,500 Mcf/d, or 11% of the statewide total. Chesapeake also reported oil production of 3,760 b/d from its Utica wells in the second quarter. Because Ohio doesn’t require reporting of natural gas liquids […]

Posted On : Published By : Tom Whipple
Category:

Coal-fired power generation in US revised lower for 2014-2015: EIA

The US Energy Information Administration Tuesday lowered its estimates for coal-fired electricity generation in 2014-2015, while natural gas and renewables were revised higher. The EIA’s updated forecasts were included in its September Short Term Energy Outlook. Coal-fired electricity generation for all sectors, including residential, commercial, and industrial, was revised 0.8% lower to 4.502 million MWh/d from 4.541 million MWh/d in 2014, and 0.6% lower to 4.374 million MWh/d from 4.398 million MWh/d in 2015. Natural gas-fired generation was revised 0.4% higher to 2.995 million MWh/d in 2014, and 0.3% higher to 3.112 MWh/d in 2015. "Other renewables" generation, which includes wind, biomass, geothermal, and solar generation, was taken 1% higher to 759,000 MWh/d in 2014, and raised 0.9% higher to 811,000 MWh/d in 2015. ONLY TWO COAL PLANTS TO COME ONLINE IN 2014 According to preliminary data, power generators added 4.35 GW of new capacity during the first half […]

Posted On : Published By : Tom Whipple
Category:

Short-Term Energy Outlook

Highlights Driven in large part by falling crude oil prices, U.S. regular gasoline retail prices fell to an average of $3.49/per gallon (gal) in August, 12 cents below the July average and 21 cents below the average in June. U.S. regular gasoline retail prices are projected to continue to decline to an average of $3.18/gal in December, 12 cents lower than projected in last month’s STEO. EIA expects U.S. regular gasoline retail prices, which averaged $3.51/gal in 2013, to average $3.46/gal in 2014 and $3.41/gal in 2015, 4 cents lower and 6 cents lower than last month’s STEO, respectively. Weakening global demand and increased Libyan oil exports contributed to a drop in the North Sea Brent crude oil spot price to an average of $102 per barrel (bbl) in August, $5/bbl lower than the July average and $10/bbl below the average in June. For the first time in 14 […]

Posted On : Published By : Tom Whipple
Category:

US crude output in 2014 to average 8.53 million b/d: EIA

The US Energy Information Administration on Tuesday again lowered its 2014 price estimates for both WTI and Brent, due to weakening global demand and near-record US production. In its September Short-Term Energy Outlook, EIA decreased its 2014 forecasts for WTI to $98.28/b and Brent to $106/b, which is $2.17 and $2.11, respectively, below last month’s estimate. EIA forecasts WTI at $94.67/b and Brent at $103/b in 2015, $1.41 and $2, respectively, lower than last month’s 2015 forecast. The WTI discount to Brent, which averaged $11/b in 2013, is expected to average $8/b in both 2014 and 2015. EIA last month had projected the same discount for 2014, but said it would be $9/b in 2015. Price projections continue to fall as total US crude oil production averaged 8.6 million b/d in August, the highest monthly production since July 1986, global demand weakens and increased Libyan oil exports put downward […]

Posted On : Published By : Tom Whipple
Category:

Bakken Shale Rig Count Stays Flat at 191

Saskatchewan Ethane Processing Plant Saskatchewan Ethane Processing Plant|Click to Enlarge The  Bakken-Three Forks rig count  stayed flat at 191 rigs running across our coverage area by the end of last week. The NDIC notes 198 rigs are active in North Dakota, but around 15 of those are in the process of moving in and rigging up. In recent Bakken news, Pembina Pipeline Corp. announced in early Sept. 2014 it will acquire Bakken midstream assets for $650-million from entities affiliated with Riverstone Holdings, LLC. The U.S. rig count increased by 11 to 1,925 rigs running by the end of last week. A total of 340 rigs were targeting natural gas (two more than  the previous week) and 1,584 were targeting oil in the U.S. (nine more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.).  192  rigs are running in the Williston Basin across MT, ND, and SD.  […]

Posted On : Published By : Tom Whipple
Category:

Oil industry fight erupts over exports

The Independent Petroleum Association of America said it rejected complaints over decisions that cleared the way for the export of petroleum products. Crude oil exports are restricted under legislation enacted in the wake of the oil embargo imposed in the 1970s by Arab members of the Organization of Petroleum Exporting Countries. Refinery consortium Consumers and Refiners United for Domestic Energy last week said a June decision by the Commerce Department’s Bureau of Industry and Security to clear exports of so-called condensate as a petroleum product rather than crude oil was incorrect. IPAA said the refiner’s real complaint has more to do with competition than the "realities surrounding U.S. energy security." IPAA argues for more exports, citing the exponential rise in U.S. oil production that came as a result of the shale boom. "It’s sad that an organization that purports to stand up for consumers would distort the plain language […]

Posted On : Published By : Tom Whipple
Category:

Fossil fuels behind climate change, WMO says

"We know without any doubt that our climate is changing and our weather is becoming more extreme due to human activities such as the burning of fossil fuels," WMO Secretary-General Michel Jarraud said in a statement. WMO published its annual Greenhouse Gas Bulletin Tuesday. It found the level of greenhouse gases in the atmosphere last year reached a new record in part because of an increase in the amount of carbon dioxide. Carbon dioxide levels are 142 percent higher than a 1750 benchmark, a year WMO set as the start of the industrial era. For methane, emissions are 253 percent higher and nitrous oxide emissions were 121 percent more than the 1750 benchmark. Since 1990, the WMO said radiative forcing — the warming effect on the climate — is up 34 percent because of the persistence of greenhouse gases in the atmosphere. Last year, WMO said, CO2 levels in […]

Posted On : Published By : Tom Whipple
Category:

Tighter rules for U.S. crude oil trains

The U.S. Department of Transportation said Tuesday it adopted new measures aimed at securing unattended freight trains in response to oil train accidents. The Department of Transportation’s Federal Railroad Administration issued a new proposal aimed at strengthening rules on unattended freight trains . The rules are part of a series of federal procedures outlined in the wake of the deadly 2013 derailment in Lac-Megantic, Quebec. "This rulemaking will solidify our existing securement regulations and provide additional safeguards against the rolling of unattended freight trains, especially those carrying hazardous materials," Federal Railroad Administrator Joseph Szabo said in a statement. At least 40 people were killed in Lac-Megantic, Quebec, in the derailment of a train carrying tankers of crude oil from North Dakota to Canadian refineries. Montreal, Maine and Atlantic Railway blamed the air brakes on the locomotive for the accident. Canadian Transport Minister Lisa Raitt announced new regulations in April […]

Posted On : Published By : Tom Whipple
Category:

Shell pins oil growth to deep water projects

Deep water oil reserves are part of a fundamental growth area for Royal Dutch Shell, the company said after starting a Gulf of Mexico project. Shell last month said the start of oil production from the deepwater Bonga North West development off the coast of Nigeria was an "excellent addition" to a growing portfolio of offshore assets. At its peak, an offshore floating processing facility is expected to process as much as 40,000 barrels of oil equivalent per day. The company said Monday production started at its Cardamom project , its second deepwater project in the U.S. Gulf of Mexico brought online this year. Marvin Odum, upstream director for North American operations, said Cardamom is a high-value addition to its deepwater portfolio. "Our future opportunities in deep water mean that this will remain an important, high-return growth area for Shell," he said in a statement. Cardamom is about 225 […]

Posted On : Published By : Tom Whipple
Category:

London rolls out climate agenda

"You can go green and continue to prosper and develop — that is the strong message we will be taking to the global community in the coming months," British Energy and Climate Change Secretary Ed Davey said in a statement. The British government launched its so-called Paris 2015 document ahead of next year’s international climate summit in France. The document outlines how acting now on cutting greenhouse gas emissions can help deter future climate disasters. The government’s agenda describes how it’s giving "a decisive political signal" that the future of energy is low-carbon . Davey said the United Kingdom is already feeling the worst impacts of climate change. The British government said winter storms in December and January led to the wettest period in the country since record-keeping began. There’s an "increasing body of evidence" to suggest intense weather is "consistent with what is expected from the fundamental physics […]

Posted On : Published By : Tom Whipple
Category:

Operator: Production Resumes At UK North Sea Buzzard Oilfield

LONDON, Sept 9 (Reuters) – Production has resumed at Britain’s North Sea Buzzard oilfield, the field’s operator said in a statement on Tuesday, the latest phase of the stuttering return of one of the key streams underpinning Brent oil futures. "Production has resumed following a brief outage yesterday night, Monday 8 September, and ramp-up will continue over the coming days," Calgary-based Nexen said. Nexen was bought by China’s CNOOC last year. Since returning from summer maintenance in late August the 200,000 barrel-per-day field has gone through a number of shutdowns and restarts. Buzzard is closely watched by oil traders worldwide as it is the biggest contributor to the Forties oil stream, the largest of the four benchmark crudes that are the physical supply behind international benchmark Brent crude oil futures. (Reporting by David Sheppard and Claire Milhench; editing by Keiron Henderson) WHAT DO YOU THINK?

Posted On : Published By : Tom Whipple
Category:

Scottish independence: David Cameron launches impassioned plea to Scots

UK prime minister David Cameron ‘We desperately want you to stay; we do not want this family of nations to be ripped apart,’ said Mr Cameron David Cameron has made his most impassioned appeal to Scots to stay in the UK, urging them to choose a “brighter future for Scotland by voting No” rather than a “leap in the dark with a Yes vote”. With opinion polls showing the result of the September 18 referendum too close to call, the prime minister and Labour leader Ed Miliband have postponed their weekly clash at Prime Minister’s Questions on Wednesday to join the No campaign in Scotland. More On this story On this topic IN UK Politics & Policy Nick Clegg, the Liberal Democrat leader, will also campaign against independence. Writing in the Daily Mail , Mr Cameron said the “United Kingdom is a precious and special country . . . so let no one […]

Posted On : Published By : Tom Whipple
Category:

Why Does Scotland Want Independence? It’s Culture vs. Economics

If you had told someone in 2012 that in just two years the eurozone would remain bonded together but the United Kingdom might not, they would have thought you insane. But here we are. It’s been a good three centuries, but now Scotland may want out of the United Kingdom. The stakes are enormous for Scotland, and quite high for the rest of Britain. But the debate over Scottish independence also sheds important light on how debates over the nature of the state that are as old as Hobbes and Locke apply in a modern world of instant communication and cryptocurrency. The latest polling on the referendum, to be held Sept. 18, points to a narrow edge for Scots who wish to pull out of the state that they have been part of since 1707 and go it as a nation of their own. Previous polls, by contrast, had […]

Posted On : Published By : Tom Whipple
Category:

Is the World at ‘Peak Gold’?

This week, Chuck Jeannes told  The Wall Street Journal that either this year or next, miners will have reached “peak gold.” Peak gold means that the amount of gold being pulled out of the earth will begin to shrink every year, rather than increase, which has been the case since the 1970s. Jeannes is the chief executive of the world’s largest gold mining company, Goldcorp, so it’s probably safe to assume he knows a thing or two about mining the yellow metal. Let’s put this into context. Central banks continue to stockpile gold ( even Scotland is wondering how much of the United Kingdom’s gold it will get if it becomes an independent country). Nobody knows how much gold China is hoarding, but pretty much everyone assumes it’s a lot more than the official reports. Smart economists like Peter Schiff and Jim Rickards have been pointing out for a year now that gold buyers […]

Posted On : Published By : Tom Whipple
Category:

McKibben to Obama: Fracking May Be Worse Than Burning Coal

If you’re a politician, science is a bitch; it resists spin. And a new set of studies—about, of all things, a simple molecule known as CH4—show that President Obama’s climate change strategy is starting to unravel even as it’s being knit. To be specific: most of the administration’s theoretical gains in the fight against global warming have come from substituting natural gas for coal . But it looks now as if that doesn’t really help. In a very real sense it’s not entirely the president’s fault. When Obama took office in 2008 he decided to deal with health care before climate change, in essence tackling the biggest remaining problem of the 20th century before teeing up the biggest challenge of the 21st. His team told environmentalists that they wouldn’t be talking about global warming, focusing instead on “green jobs.” Obama did seize the opportunity offered by the auto industry […]

Posted On : Published By : Tom Whipple
Category:

WTI Crude Advances Before U.S. Fuel Stockpile Data; Brent Drops

West Texas Intermediate crude rose for the first time in four days before stockpile data that will signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent declined in London. Futures advanced as much as 0.6 percent in New York . Crude inventories probably shrank by 1.5 million barrels last week to 358.1 million, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow. Libyan output climbed to 740,000 barrels a day, Mohamed Elharari, a spokesman for National Oil Corp., said yesterday. “We have the EIA numbers to look out for; they have been showing pretty good trends,” David Lennox , a resource analyst at Fat Prophets in Sydney, said by phone today. “Barring any geopolitical events, the oil price might just meander along.” WTI for October delivery rose as much as 53 cents to $93.19 a barrel in […]

Posted On : Published By : Tom Whipple
Category:

Brent Declines Below $100 for First Time Since June 2013

Brent crude dropped to a 16-month low as falling Chinese imports bolstered concern that slower growth will worsen a global oil surplus. West Texas Intermediate slipped to the lowest level since January. The European benchmark fell 0.6 percent while WTI decreased 0.7 percent. Total Chinese imports slumped 2.4 percent in August, data from the Beijing-based customs administration show. Economic growth in China , the biggest oil consuming country after the U.S., will drop to 7.4 percent this year, the weakest pace since 1990, according to economist estimates compiled by Bloomberg. Brent has tumbled 13 percent since June 19 as economies from Europe to Asia show signs of slowing while oil output climbs. Oil markets in the U.S. and Europe face a glut amid constrained consumption and the recovery of supplies from Libya , the International Energy Agency , the Paris-based adviser to 29 nations, said last month. “Global oil […]

Posted On : Published By : Tom Whipple
Category:

Natural-Gas Rises on Mix of Technical Trading and Heating Demand Optimism

By Timothy Puko NEW YORK–Natural-gas prices closed higher Monday for the first time in a week, likely from a mix of technical trading and optimism about the chances for early-season heating demand, analysts and brokers said. The front-month October contract settled up 8.3 cents, or 2.2%, at $3.876 a million British thermal units on the New York Mercantile Exchange. The move broke a four-session losing streak and brought natural gas back into the middle of a 29-cent range that gas has traded in for almost all of the last eight weeks. Cool forecasts are probably playing a major role, said Aaron Calder, senior market analyst at energy-consulting firm Gelber & Associates in Houston. Temperatures in the Rockies and the Upper Midwest could reach as much as 15 degrees Fahrenheit below normal, and Mr. Calder said in a note that the prospects for a first frost have some traders looking […]

Posted On : Published By : Tom Whipple
Category:

OPEC unfazed by oil’s drop below $100: sources

DUBAI/LONDON (Reuters) – OPEC members seemed unconcerned by a slide in oil prices below $100 a barrel on Monday, with two officials from the producer group saying winter demand in coming weeks should support the market. Brent crude fell below $100 a barrel for the first time in 14 months, buckling on concerns about slower economic growth. [O/R] Top OPEC exporter Saudi Arabia favors oil at $100, which many others in the 12-member group also support. "The fall in prices is a temporary thing. They are still within the acceptable range. There is no real worry," said a delegate from one of OPEC’s Gulf members. "It is not a permanent drop. We are now approaching winter so the prices are expected to rise." The Organization of the Petroleum Exporting Countries does not have a official price target. Prices still need to fall further to be outside an acceptable zone […]

Posted On : Published By : Tom Whipple
Category:

Iraqi Parliament Approves New Cabinet

BAGHDAD—Iraq’s Parliament approved a new cabinet of ministers on Monday, ending a monthslong drama to select a new leadership only days before U.S. President Barack Obama lays out his strategy to confront the Sunni Islamist insurrection consuming the country. The strength of the insurgency was on full display Monday morning, when militants from the Islamic State killed 20 people, mostly Sunni tribal fighters who opposed the group, when they detonated two car bombs in the town of Dhuluiya, about 50 miles north of Baghdad. The Iraqi parliament’s support for the new cabinet will allow Mr. Obama to tell leaders in Congress and the American public that his plan for expanded U.S. airstrikes in Iraq will be supported by an inclusive new government in Baghdad. Yet despite the appearance of a broad-based agreement, Monday’s vote followed days of last-minute wrangling that laid bare the profound ethnic and sectarian differences that […]

Posted On : Published By : Tom Whipple
Category:

Abdulmahdi becomes Oil Minister in tenuous new government

You are here: Home » Politics » National Politics » Abdulmahdi becomes Oil Minister in tenuous new government Abdulmahdi becomes Oil Minister in tenuous new government (From Right to Left) Iraqi deputy Prime Minister Saleh al-Mutlak, Deputy Prime Minister Baha al-Araji, Foreign Minister Ibrahim al-Jaafari, Planning Minister Salman al-Jumaili and Oil Minister Adel Abdul-Mehdi sit after being approved during a parliamentary session to vote on Iraq’s new cabinet on Sept. 8, 2014. [AHMAD AL-RUBAYE/AFP/Getty Images] The new Iraqi government, approved by Parliament on Monday, has a nominally inclusive government led by Prime Minister Haider al-Abadi, though it is already straining for support among the country’s Kurdish and Sunni minorities. Former Iraqi Vice President Adil Abdulmahdi became the new Oil Minister on Monday. Former Oil Minister and Deputy Prime Minister for Energy Hussain al-Shahristani now has the Higher Education portfolio. Nouri al-Maliki, prime minister for the past eight years, is… […]

Posted On : Published By : Tom Whipple