Category:

Canada Unveils New Sanctions Against Moscow, Sympathizers in Ukraine

Canada unveiled new sanctions Tuesday evening against Moscow and its sympathizers in Ukraine that includes among its highest-profile targets the chief executive of Russia state-owned defense company Rostec, Sergey Chemezov, and the state-run energy firm Rosneft. Canada said the latest round of sanctions would apply economic sanctions and travel bans against 37 Russian and Ukrainian individuals, and economic penalties against 17 Russian and Ukrainian entities. Besides Mr. Chemezov and Rosneft, others targeted by the new Canadian sanctions include lawmakers in the Russian legislature; military officials; the head of Russia’s largest motorcycle club, the Night Wolves; and members of the Donetsk and Luhansk separatist groups in Ukraine. An official at Russia’s embassy in Ottawa declined to comment when reached Tuesday night on Canada’s new round of sanctions. Canadian Prime Minister Stephen Harper said the measures were in response to “escalated acts of aggression” in recent weeks allegedly perpetrated by Russian-backed […]

Posted On : Published By : Tom Whipple
Category:

Eni Falls Deeper Into Red on Lower Oil Price

ENLARGE Eni SpA said its fourth-quarter net loss widened as lower crude prices hit revenue and triggered write-downs. Photo: Bloomberg News MILAN— Eni SpA has reported a wider net loss in the fourth quarter as the sharp drop in crude oil prices played havoc with the Italian oil and gas group’s performance, knocking revenue lower and triggering hefty write-downs. Eni said its net loss widened to €2.34 billion ($2.67 billion) in the three months to end-December, compared with a net loss of €647 million in same period the previous year, on a 10% drop in revenue to €26.83 billion. Adjusted profit, which strips out special items, dropped by two-thirds to €464 million, below a consensus analysts’ forecast €614 million. Showing similar strain to its bigger European rivals like Royal Dutch Shell NV, BP PLC, and Total SA, Eni said it marked down the value of its oil and product […]

Posted On : Published By : Tom Whipple
Category:

Putin Offers Hungary Natural-Gas Deal

ENLARGE Russian President Vladimir Putin, center, and Hungarian Prime Minister Viktor Orban, right, arrive to speak to the media following lengthy talks at Parliament Tuesday in Budapest. Photo: Getty Images Russian President Vladimir Putin offered Hungary’s Kremlin-friendly government more favorable terms for natural-gas supplies during a visit to Budapest that underscored Europe’s challenge in defying Moscow over Ukraine amid reliance on Russia for energy. Under a new deal, Hungary will pay Russia only for the gas it actually consumes, as opposed to the volume it contracts, lowering costs for Hungarian authorities. Hungary relies on Russia for 70% of its gas, supplied under a 20-year contract that expires this year. Hungarian Prime Minister Viktor Orban said a political agreement on the gas deliveries had been reached, though technical details needed to be completed. He made a joint appearance with Mr. Putin in Budapest, a public-relations victory for a Russian president […]

Posted On : Published By : Tom Whipple
Category:

Peak What?

Peak What? thumbnail I’ve been maintaining “radio silence” for a while—mostly on account of an overflowing plate and several new new hats I wear. All the while, I have received a steady stream of e-mail thanking me for Do the Math, asking if I’m still alive, and if so: what do I make of the changing oil situation? Do I still think peak oil is a thing? Let’s start with the big picture view. I was wrong about everything. Oil is not a finite resource: never was and never will be. We will employ new technologies and innovate our way into essentially perpetual fossil energy. We’ve only scratched the surface in exploration: there are giant deposits (countless new Saudi-Arabia-scale fields) yet to be discovered). The shale oil tells us so—and it won’t stop there. Shale first, then slate, marble, granite: just squeeze the frack out of rocks and we’ll […]

Posted On : Published By : Tom Whipple
Category:

Fooling peak oil one more time: can we find new sources of liquid hydrocarbons?

The world peak of conventional oil production took place in 2005-2006, but the supply of combustible liquids did not decline, mainly because of the contribution of the newly developed “shale oil” (or “tight” oil) fields. With the impending worldwide peak of “all liquids” it is likely that the industry will try a new, all out effort to squeeze out the last drops of liquid oil from whatever sources are available, no matter how dirty and expensive. It is not certain that the attempt will be successful, but it is likely that some new monstrosity will be created in Sauron’s satanic mills.  Peak oil is something referred to as a “theory,” intended in a derogatory sense. But the concept is not just a theory; production peaks are historically observed facts, occurring not just for oil, but for any natural resource which is exploited beyond its capability to reform (e.g. for […]

Posted On : Published By : Tom Whipple
Category:

Oil rises to $62, close to 2015 high

LONDON (Reuters) – Oil rose to $62 a barrel on Tuesday, close to its 2015 high, supported by threats to Middle East supplies and expectations lower prices may prompt a slowdown in U.S. output. Egypt on Monday bombed Islamic State targets in Libya, where violence has reined in most oil output, and Iraq’s semi-autonomous Kurdistan Regional Government threatened to withhold oil exports if Baghdad failed to send its share of the budget. "The low oil prices are forcing a reduction of drilling rigs in the U.S. but also of budgets in oil-exporting countries," said Olivier Jakob, oil analyst at Petromatrix. "Libya is already mostly out in terms of production. Libya and Yemen are getting closer to the day of outside military intervention." Brent crude LCOc1 rose 65 cents to $62.05 a barrel by 0949 GMT (04:49 a.m. EST). It reached a 2015 high of $62.57 on Monday. U.S. crude […]

Posted On : Published By : Tom Whipple
Category:

Crude oil markets extend rally

Rally for crude oil markets continues into the third week in February as exploration and production activity slows in the United States. Photo by John Angelillo/UPI Brent crude oil prices continued their trajectory above the $60 mark, gaining nearly a full percentage point from the previous close to trade near $62 for the April contract. The contract for March expired last week. Brent prices have experienced a steady increase as last year’s weakened crude oil market left most energy companies without the cash needed to continue spending heavily on exploration and production. Calls for international action in Libya , a once-major North African oil producer, weighed on the minds of investors worried Monday about the state of affairs in the Middle East. Egyptian airstrikes targeted Islamic State targets in Libya in response to mass executions of Coptic Christians. The government in Kuwait, a member of the Organization of Petroleum […]

Posted On : Published By : Tom Whipple
Category:

Hedge Funds Turn Most Bullish on Brent Oil in Seven Months

Crude prices slumped in part because of the U.S. oil boom, driven by a combination of horizontal drilling and hydraulic fracturing, which has unlocked supplies from shale formations including the Permian and Eagle Ford in Texas and the Bakken in North Dakota. Photographer: Brittany Sowacke/Bloomberg (Bloomberg) — Hedge funds and other money managers’ bets on Brent crude were the most bullish since July just days before prices rallied to a two-month high. Money managers’ net wagers on rising prices rose 13 percent to 158,974 contracts in the week ended Feb. 10, the highest since the early days of last year’s oil slump on July 8, according to figures from the London-based ICE Futures Europe exchange. The change was driven by a reduction in bearish positions, rather than fresh bullish bets, signaling traders remain cautious that the price recovery will endure, according to Saxo Bank A/S. Brent futures have climbed […]

Posted On : Published By : Tom Whipple
Category:

Iraq financial crisis hurts Kurds, but oil partnership remains

Iraqi Prime Minister Haider al-Abadi, left, discusses budgetary concerns with visiting Kurdish counterpart Nechirvan Barzani. Photo courtesy of Kurdistan Regional Government The Kurdistan Regional Government said a delegation led by Prime Minister Nechrivan Barzani met during the weekend with federal officials to discuss the status of a December agreement on oil exports and budgetary issues. "During the meeting, it became apparent that due to the financial crisis in Iraq and the lack of liquidity, the Iraqi government is unable to pay the Kurdistan region’s share of January and February from the federal budget," the KRG said in a Monday statement. "The two sides agreed to continue holding further talks in order to find an appropriate solution to the situation." A January report from the World Bank found the federal government’s efforts to redistribute oil revenues for the public good had mixed results. Though oil production is breaking pre-conflict records, […]

Posted On : Published By : Tom Whipple
Category:

Baghdad and KRG deadlocked over exports, payments

KRG Prime Minister Nechirvan Barzani at a press conference in Erbil on May 1, 2013. (SOURCE: krg.org) Published Monday, February 16th, 2015 Recommend 2 people recommend this. Sign Up to see what your friends recommend. Iraqi leaders have failed to jump-start a stalled oil export and revenue-sharing deal between the federal government and the autonomous Kurdistan Regional Government (KRG).KRG Prime Minister Nechirvan Barzani led a delegation to Baghdad on Sunday for talks aimed at reviving their cooperation. But neither side has met the terms of the deal, which is embedded in the 2015 budget law, and officials from both governments indicated the agreement is still essentially on hold.“There is an item…

Posted On : Published By : Tom Whipple