Category:

Concerns raised as China steel enters ‘peak zone’

Zhang Guangning, who was elected chairman of the China Iron & Steel Association last month, did not mince his words when he gave his first speech. As China’s economy enters a “new normal”, the steel industry faces unprecedented challenges, said Mr Zhang, a life-long steel man who started his career working at an iron and steel factory in 1971. “China’s steel production has already hit a peak, or to put it another way, it has hit a turning point.” More On this topic IN Commodities He said the industry must shift its focus from expansion to quality and efficiency, adding that it is “currently in its most difficult period, it is the most optimal time for adjustment and upgrading”. After growing at an average rate of 15 per cent between 2000 and 2013, a peaking of China’s steel production would be a powerful symbol of a shift in the […]

Posted On : Published By : Tom Whipple
Category:

World Bank report highlights massive urban growth in East Asia over last 10 years; just getting started

New data and an accompanying report from the World Bank shows that almost 200 million people moved to urban areas in East Asia from 2000-2010—a figure that would be the world’s sixth-largest population for any single country. The Pearl River Delta in China—which includes the cities of Guangzhou, Shenzhen, Foshan and Dongguan—has overtaken Tokyo as the world’s largest urban area in both size and population, with more inhabitants than countries such as Argentina, Australia or Canada. At the same time, most of East Asia’s population is still non-urban, meaning the region will likely face decades of further urbanization. Urban extent in China’s Pearl River Delta, 2010 (gray) and urban extension by 2010 (red). Source: World Bank. Click to enlarge. Rapid urbanization is a significant challenge for East Asia, but we cannot manage what we cannot measure. We’re releasing this data so urban leaders can get a better picture and […]

Posted On : Published By : Tom Whipple
Category:

Oil Train Derails and Ignites Forcing West Virginia Evacuations

A fire burns after a train derailment near Charleston, West Virginia on Feb. 16, 2015. (Bloomberg) — A CSX Corp. train carrying Bakken oil from North Dakota derailed and ignited in West Virginia, forcing some residents to flee their homes in frigid weather while cutting power and threatening drinking water. Governor Earl Ray Tomblin declared a state of emergency for Kanawha and Fayette counties as the train’s operator worked with emergency responders at the scene. One person was treated for possible smoke inhalation and fire broke out on up to 15 of an estimated 27 derailed cars, said Lawrence Messina, a spokesman for the West Virginia Department of Military Affairs and Public Safety. There are about 85 people in local shelters and more may be in hotels following the derailment that occurred early Monday afternoon, according to Messina. Fire damaged power lines while the town of Montgomery shut an […]

Posted On : Published By : Tom Whipple
Category:

Thanks to Shale Production, Permian is the Economic Gift That Keeps Giving

URL: http://www.rigzone.com/news/oil_gas/a/137249/Thanks_to_Shale_Production_Permian_is_the_Economic_Gift_That_Keeps_Giving Even with the recent oil price decline, shale energy is helping spur economic opportunity throughout the Texas. This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone. Over the past few years, two of the fastest-growing cities in the U.S. are Midland and Odessa, a pair of communities separated by a mere 20 miles of interstate roadway deep in the heart of Texas. These metropolises have not only seen their populations swell to previously unforeseen numbers, but Midland and Odessa also rank first and second, respectively, in terms of economic growth nationwide. The fact that these two areas have seen this type of expansion is no accident. Growing a city is like growing a business, and growing a business is all about location, location, location. Midland and Odessa have this advantage, as both sit atop the Permian Basin, one […]

Posted On : Published By : Tom Whipple
Category:

Bakken – Has The Bubble Burst?

Nolan 1 Nolan Disclamer Nolan 2 Nolan 3 Nolan 4 Nolan 5 Nolan 7 Nolan 9 Nolan 10 Nolan 11 Nolan 13 Nolan 15 Nolan 16 Nolan 17 Nolan 18 Nolan 19 Nolan 20 Nolan 21 Nolan 22 Nolan 23 Nolan 24 Nolan 25 Nolan 26 Nolan 27 Nolan 28 Nolan 29 Nolan 30 Nolan 32 Nolan 33 Nolan 34 Nolan 35 Nolan 36 Nolan 37 Nolan 38 Nolan 39 Nolan 40 Nolan 41 Nolan 42 Nolan 43 Nolan 44 Nolan 45 Nolan 47 Nolan 48 Nolan 49 Nolan 50 Nolan 51 Hi Tom, Keep in mind this is oil production per rig. Two things happen, as the wells are drilled to hold the lease, rigs need to be moved a lot which makes the rig less productive (a lot of time is spent moving in and putting the rig up (MIRU) and then taking the rig down and […]

Posted On : Published By : Tom Whipple
Category:

Rig count in North Dakota hits new low

The number of rigs in service in North Dakota hit low-water mark in response to weak market for crude oil. (UPI/Shutterstock/ekina) Though December oil production was at an all-time high, rig activity in North Dakota is on the decline, state data released Monday show. The North Dakota Industrial Commission reported 137 active drilling rigs in service in the state as of Monday, a 26 percent decline from the same date in 2014 and 31.5 percent less than the historic peak reached in 2012. The rig count for Monday is the lowest in five years. Oil prices have declined to the point that most energy companies have enacted staff reductions and cut back on spending plans for exploration and production for 2015. The slump in oil price is a reflection of a market skewed toward the supply side because of production from states rich in shale reserves, like Texas and […]

Posted On : Published By : Tom Whipple
Category:

Canada railway strike ends after government threatens bill

OTTAWA, Canada (AP) — Canada’s labor minister said Monday the Canadian Pacific Railway strike had ended, with both sides agreeing to resume discussions. News of the deal came after Canada’s Conservative government threatened to introduce legislation to force an end to the strike by more than 3,000 Teamsters members, saying the strike posed a threat to the economy. In a surprise news conference, Labor Minister Kellie Leitch welcomed the willingness by both sides to resume talks, a development that had seemed impossible just hours earlier. The strike by 3,300 locomotive engineers and other train workers began just after midnight Sunday after contract talks failed. Leitch had said the strike could cost the economy more than $200 million in lost GDP every week. Teamsters union president Douglas Finnson called the government’s intervention in the strike disappointing and premature. CP Rail supported the move. Leitch had said the strike would affect […]

Posted On : Published By : Tom Whipple
Category:

Kiev sued by shale natural gas explorer

Ukrainian government sued by early shale natural gas explorer. Photo by Calin Tatu/Shutterstock "JKX is seeking repayment of more than $180 million in rental fees that its Ukrainian subsidiary has paid on production of oil and gas in Ukraine since 2011," the company said in a statement. The company last year said new budget measures passed by the Ukrainian government meant higher taxes for the oil and gas industry in the country. The most significant, it said, was a move to nearly double the tax on gas production to close to 55 percent. JKX, which has headquarters in London, said the market available to private gas producers in Ukraine was contracting, noting the competition for industrial customers was becoming "intense." In January, the company said the economic climate in Ukraine is no longer conducive to continue investing in shale natural gas opportunities The company said Monday it started arbitration […]

Posted On : Published By : Tom Whipple
Category:

Sanctions Don’t Bar Oil-Service Giants Bidding in Arctic

Valve control wheels are seen on pipework near gas well site at Bovanenkovo gas field, Yamalo-Nenetsky region, Russia, on Tuesday, Oct. 23, 2012. (Bloomberg) — U.S. and European suppliers to the oil industry are still able to seek work in Russia’s Arctic despite sanctions designed to limit their involvement because the rules don’t apply to foreign subsidiaries. Schlumberger Ltd., based in Houston and the world’s largest oil services company, and Baker Hughes Inc. have used units based outside the U.S. to bid for business in Russia’s Arctic, according to a Russian government website. Offshore projects in the Arctic are among those targeted by U.S. and European sanctions against Russia’s oil industry. There’s no allegation either company broke the rules and none of the bids was successful. Nonetheless, the use of subsidiaries to legally skirt sanctions will raise questions about the effectiveness of measures imposed to punish Russia by limiting […]

Posted On : Published By : Tom Whipple
Category:

Ukraine Truce Fades in Fight for Key Town

ENLARGE A Ukrainian soldier strikes a victory sign on the road between the towns of Debaltseve and Artemivsk in Ukraine on Monday. Photo: Associated Press In the railway town of Debaltseve, Ukraine’s cease-fire lasted all of 40 minutes. “We were surprised when the firing stopped, and hoped it would be the cease-fire,” said Albert Sardaryan, a 22-year-old combat paramedic in the town, by telephone. “But then it started again.” Fighting for Debaltseve has become the biggest challenge to the cease-fire that went into effect at midnight Saturday and was supposed to end months of conflict between Ukrainian forces and Russia-backed militants in Ukraine’s east. A separatist advance supported , according to U.S. and Ukrainian officials, by Russian army units, has all but cut off thousands of Ukrainian soldiers in the town. German Chancellor Angela Merkel on Monday described the situation in Ukraine as “fragile” and called on all sides […]

Posted On : Published By : Tom Whipple