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Somali Petroleum Minister Sees Start of Oil, Gas Output by 2020

(Bloomberg) — Somalia may start producing oil and gas by 2020 after exploration work showed the potential for “huge” deposits of the resources in the Horn of Africa country, outgoing Petroleum Minister Da’ud Mohamed Omar said. “We expect that Somalia will produce oil and gas in 2020 and the nation will reap enormous benefits such as alleviating the poverty and leading the country into prosperity,” Omar told reporters Wednesday in the capital, Mogadishu. He didn’t identify which oil companies are carrying out exploration work in the country. Somalia is considering its first bidding round for oil blocks since 2009 as increasing stability begins to attract more foreign investors. African Union-backed government forces have regained control of about 70 percent of the country that had fallen under the control of al-Shabaab, the al-Qaeda-linked militant group seeking to create an Islamic state in Somalia. The government is in talks with companies […]

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Nigeria: FG Cries Out Over Pipeline Vandalism

Abuja — The Federal Government on Wednesday cried out over the continuing attacks on pipelines supplying gas to power plants across the country, declaring that there are forces undermining its effort to boost power supply to Nigerians. Minister of Power, Cinedu Nebo said in Abuja that pipeline vandals are targeting gas facilities to ensure that power generation do not exceed 4,000mega watt. To check this, Nebo said Government was deploying remote sensing technologies to assist security agents to curb the menace. He, however, stressed that Government efforts would amount to nothing without the collaboration of citizens. Nebo therefore called on Nigerians to join the Government in its fight against the vandals by promptly reporting incidences of vandalism in the areas. To achieve this, Government signed a memorandum of understanding with Charlie Boy, National Association of Nigerian Students (NANS) and other youth groups to sensitize citizens on the activities of […]

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BW Offshore Says 5 Dead After Petrobras Platform Explosion

By Anna Molin Norway’s BW Offhore Ltd. (BWO.OS) Thursday said five people were killed and four are still missing following an explosion on a Petroleo Brasileiro SA vessel off the coast of southeastern Brazil. The offshore production operator and owner said all remaining crew have been accounted for and receiving medical care where needed, with two in critical condition. There were a total of 74 people onboard the platform, operated for state-run oil company Petrobras by BW Offshore. Production has been stopped and the Cidade de São Mateus FPSO unit has been shut down, BW Offshore said. For safety reasons, all employees have been taken off the unit, it added. The accident occurred shortly after midday Wednesday about 75 miles off the coast of Espirito Santo state, north of Rio de Janeiro. "This is a tragic day, and our primary focus now is on the crew and their families. […]

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Oklahoma shale booming

Oklahoma shale seen as mirroring developments in Texas and North Dakota, analysis finds. Photo by photostock77/Shutterstock Analysis from Wood Mackenzie finds the South Central Oklahoma Province, or SCOOP, to be economical with a price of West Texas Intermediate crude oil, the U.S. benchmark, as low as $41 per barrel, more than 15 percent below the current price. "The region will see drawbacks, rig counts are down in the near-term but production won’t fall off by much and we expect it to bounce back quickly in 2016," Brandon Mikael, a Wood Mackenzie analyst for the Lower 48, said in a Tuesday statement. Last year, Continental Resources, which is one of the largest operators in the Bakken oil reserve area in North Dakota, said its acreage in the SCOOP basin was a "significant" part of its growth strategy. According to oil services company Baker Hughes, shale basins in Oklahoma were among […]

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Japan plans to restart some nuclear plants in 2015 after Fukushima shutdown

Source: U.S. Energy Information Administration, International Energy Agency, METI Previously one of the world’s largest producers of nuclear-generated electricity, Japan has relied heavily on fossil fuels following the meltdown at Fukushima Dai-ichi and subsequent shutdown of the country’s nuclear fleet. In 2013, when almost all of Japan’s nuclear fleet was shut down, more than 86% of Japan’s generation mix was composed of fossil fuels. In 2014, Japan’s nuclear generation was zero. The Japanese government anticipates bringing online a few nuclear facilities in 2015. Nuclear reactor restarts could begin as soon as May 2015, as Kyushu Electric’s Sendai Units 1 and 2 in southwestern Japan received approval to restart from the Japan’s Nuclear Regulatory Agency (NRA) and local authorities in November 2014. The NRA also approved Kansai Electric’s Takahama Units 3 and 4 at the end of 2014, although these units are still awaiting authorization from the local government. The […]

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Three U.S. Oil Plants Targeted by Union Strike Report Upsets

(Bloomberg) — At least three of the nine U.S. oil refineries targeted by a nationwide strike of United Steelworkers union members have reported upsets and unplanned repairs since their workers walked out earlier this month. Royal Dutch Shell Plc’s Deer Park refinery in Texas had an upset at a fluid catalytic cracker on Feb. 8. Tesoro Corp.’s Carson plant near Los Angeles performed unscheduled repairs after a unit breakdown. Marathon Petroleum Corp.’s 451,000-barrel-a-day Galveston Bay refinery in Texas, the biggest of the plants on strike by capacity, leaked diesel from an ultracracker. The equipment failures are occurring amid the biggest strike of U.S. oil workers since 1980. United Steelworkers union members have walked out of nine U.S. refineries since Feb. 1 that account for about 13 percent of the country’s processing capacity. One of the sites affected has halted production, and a full strike of USW members would threaten […]

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Halliburton, Baker respond to DOJ queries

Standard anti-trust queries issued to Halliburton and Baker Hughes ahead of planned merger. Photo by Christopher Halloran/Shutterstock Both companies said they’ve received "expected" and "standard" requests from the Justice Department related to Halliburton’s pending acquisition of rival Baker Hughes. "Halliburton and Baker Hughes are working cooperatively with the Department of Justice as it conducts its review of the transaction, which remains subject to shareholder and other approvals, as well as customary closing conditions," the companies said in a joint statement Tuesday. Separately, the two companies are the largest of their kind. Halliburton under the terms of the deal buys all outstanding shares in Baker Hughes for $34.6 billion. Baker Hughes had initially balked at the deal when it emerged in late 2014. Before ultimately consenting to the deal, Baker Hughes Chairman and Chief Executive Officer Martin Craighead said in November he was advising shareholders against the deal after Halliburton […]

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House passes Keystone XL legislation; will test veto pen

Sen. John Hoeven, R-N.D., may face presidential showdown as Keystone XL bill moves up the steps of Capitol Hill. UPI/Kevin Dietsch The House of Representatives passed the bill with a vote of 270-152. Twenty-nine Democrats joined House Republicans in the vote for the legislation. Rep. Justin Amash, R-Mich., was the only Republican to vote against the measure. A coalition of energy groups in the United States issued letters to the House in support of the legislation, which is meant to advance the construction of the pipeline meant to cross the U.S.-Canadian border. James P. Hoffa , president of the powerful Teamsters Union, said building the pipeline would bring net benefits to the United States. "If the pipeline is not built, important socio-economic benefits will not be realized," his letter reads. The House took up a Senate bill sponsored by Sen. John Hoeven , R-N.D., to build the pipeline. Hoeven […]

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U.S. oil trade survey draws mixed reviews

Public opinion survey on trade in U.S. crude oil draws mixed reviews. Photo by nito/Shutterstock WASHINGTON, Feb. 11 (UPI) — A public opinion survey on foreign trade in U.S. crude oil, conducted for a pro-export group, was criticized as shoddy by those backed by a refinery coalition. FTI Consulting was hired by the Producers for American Crude Oil Exports to gauge public opinion on trade policies governing the U.S. energy sector. It found 69 percent of those likely voters supported policies that would allow "producers to sell crude oil to customers in countries who are trading partners" with the United States. PACE Executive Director George Baker said in statement the survey reaffirms studies by policy centers and government agencies on loosening trade policies on crude oil produced in the United States. "Each [study] has determined that crude oil exports will grow the economy and provide broad-based consumer benefits," he […]

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North Dakota Tax Trigger Getting Closer

Countdown to ND Tax Incentive The countdown has begun on North Dakota’s small oil tax trigger. This measure, which kicked in at the beginning of the month, was introduced by lawmakers to provide tax incentives to strained producers in order to ease the sting of prolonged lower crude prices. The formula for the tax trigger states that when West Texas Intermediate (WTI) stays below $52.58 (2015) for five consecutive months, then the state waives its 6.5% oil extraction tax. Since January crude prices averaged $47.98 per barrel, the trigger took affect February 1st. As long as the price stays below $52.59 for the next four months, the incentive will take effect. Once the prices inches up, the calculations start over. Related: No Income Tax for North Dakota? North Dakota state legislators jumped this week to take measures to extend the trigger through June 30, 2019. House Bill 1437 extends a smaller trigger that […]

Posted On : Published By : Tom Whipple