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Iraq’s war within a war

Diyala stands as a microcosm of Iraq with a mixed population of Sunnis, Shias, Kurds and Turkmen [Reuters] When one of Iraq’s Shia militia commanders this week declared the province of Diyala "liberated", few people familiar with the province believed it would be a lasting victory. In a country with a largely Shia south, Kurdish north and Sunni west, Diyala stands as a microcosm of Iraq – a mixed population of Sunnis, Shias, Kurds and Turkmen. The apparent massacre of dozens of unarmed villagers by Shia militias is a reminder of the war within a war potentially more dangerous to Iraq than the fight against ISIL. The accounts from survivors of the massacre in Barwana are horrifying. But particularly chilling was an account from one of the survivors, a university student, that the gunmen knew their victims. "I realised there are two types of militias," he said. Shia militia […]

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Exclusive: Iran sweetens oil contracts to counter sanctions and price plunge

ANKARA/LONDON (Reuters) – Iran is sweetening the terms it offers on oil development contracts to draw the interest of foreign investors deterred by sanctions and low crude prices, as its pragmatic president seeks to deliver on his promise of economic recovery. Tehran is engaged in talks with world powers about its disputed nuclear program as it tries to strike a final deal to lift the sanctions that have halved its oil exports to just over 1 million barrels per day since 2012 and hammered its economy. To prepare for any agreement, it has already circulated new draft oil contracts to foreign firms to attract business once the restrictions end, Iranian oil officials and Western diplomatic sources said. Such deals would involve helping Iran revive aging fields and develop new ones, they added. But there is no certainty about the outcome of the nuclear negotiations. The contracts offer far more […]

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Libyan oil official released; kidnappers still unidentified

Libyan oil official freed, though no word on responsible party. File Photo by Tariq AL-hun/UPI TRIPOLI, Libya, Feb. 2 (UPI) — Though he’s been released, it’s unclear which group was behind the kidnapping of a member of the Libyan National Oil Co., his family said. Samir Kamal, a member of the NOC’s planning committee, disappeared Jan. 15 while leaving his office in Tripoli. He was released Sunday , though no group has yet to claim responsibility for his kidnapping. "He is well, but of course shaken up," a family member told the Libya Herald. "The reasons for his kidnapping are unclear, and the people responsible are still unknown." Kamal has represented Libya’s interests at the Organization of Petroleum Exporting Countries as the country struggles to resume its North American dominance in the 12-member group. OPEC in its January market report said continued unrest in Libya led to "significant disruption" […]

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Dana Gas building momentum in Egypt

Emirati energy company Dana Gas sees strong foundation for growth in Egypt. Photo: Dana Gas. SHARJAH, United Arab Emirates, Feb. 2 (UPI) — Emirati energy company Dana Gas said there was positive momentum building behind its exploration and production operations in Egypt. Dana said two concession agreements signed for operations in the Nile Delta provides the company, the sixth largest gas producer in Egypt, a strong foundation for growth . "We see this positive momentum continuing and are excited about our exploration and development plans in Egypt," Chief Executive Officer Patrick Allman-Ward said in a Sunday statement. Dana in early January said it received $60 million from the Egyptian government, which represents about a quarter of its outstanding debt . Political and economic instability in Egypt has left the government in debt to energy companies eager to tap the country’s natural gas potential. The government recently agreed to cover […]

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Asia’s Oil Giants Rethink Spending Plans

Malaysia’s Petronas has warned of double-digit percentage cuts in capital spending this year. ENLARGE Photo: Bloomberg News SINGAPORE—Asia’s largest oil companies are set to join their global peers in slashing investment plans for 2015 in response to the slump in oil prices, putting production growth in jeopardy in the energy-hungry region. Malaysia’s Petroliam Nasional Bhd., known as Petronas, has warned of double-digit percentage cuts in capital spending this year, while China’s Cnooc Ltd. and PetroChina Ltd. could reduce spending by a similar amount, people briefed by the companies said. Indonesia’s Pertamina said last week it could cut its investment by up to 50% this year. In all, Asian state-run oil-and-gas companies—which in the recent past have spent around $120 billion a year, accounting for nearly one-fifth of annual sector investment world-wide—could cut capital spending by between 15% and 30% in 2015, according to several experts. Meanwhile, major developments planned […]

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DW: Oil Price Downturn Impacts North American Land Rig Market More

UK’s Douglas-Westwood, an energy business strategy, research and commercial due-diligence services provider, discusses "Oil Price Downturn to have Significant Impact on North American Land Rig Market in 2015 with International Market More Resilient" in its latest edition of DW Monday. The recent oil price downturn is expected to have a significant impact on the global land rig market in 2015, as operators announce planned cuts to expenditure. Following a 24 percent rise over the 2010-2014 period, the number of active drilling rigs is expected to fall 12 percent in 2015.  The North American market, which is particularly susceptible to fluctuations in commodity prices, is expected to see the largest impact, with the active drilling rig fleet forecast to decline by 29 percent. Notably, Apache Corporation has announced plans to cut spending on its North American assets by 26 percent in 2015.  In comparison, the impact of the oil price […]

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Arctic Oil On Life Support

Oil companies have eyed the Arctic for years. With an estimated 90 billion barrels of oil lying north of the Arctic Circle, the circumpolar north is arguably the last corner of the globe that is still almost entirely unexplored. As drilling technology advances, conventional oil reserves become harder to find, and climate change contributes to melting sea ice, the Arctic has moved up on the list of priorities in oil company board rooms. That had companies moving north – Royal Dutch Shell off the coast of Alaska, Statoil in the Norwegian Arctic, and ExxonMobil in conjunction with Russia’s Rosneft in the Russian far north. But achieving the goals of tapping the extensive oil reserves in the Arctic has been much harder than previously thought. Shell’s mishaps have been well-documented. The Anglo-Dutch company failed to achieve permits on time, had its drill ships run aground , and saw its oil […]

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U.S. consumer spending in December weakest since 2009

WASHINGTON (Reuters) – U.S. consumer spending recorded its biggest decline since late 2009 in December with households saving the extra cash from cheaper gasoline. Other data on Monday showed factory activity cooled in January, suggesting the economy may have entered the new year on a slightly softer footing than had been expected. Nevertheless, upbeat and cash-flush consumers are expected to step-up spending and buoy the economy this year. "The consumer is poised to do well in early 2015. Lower gasoline prices are going to provide a big lift to consumption," said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.3 percent after gaining 0.5 percent in November and 0.3 percent in October. The drop, the largest since September 2009, reflected a decline in spending at service stations as […]

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U.S. workers strike for second day at nine refineries; one to shut

HOUSTON (Reuters) – Union workers were on strike for a second day on Monday at nine U.S. refineries and chemical plants as they sought a new national contract with oil companies covering laborers at 63 plants. The walkouts were the first in support of a nationwide pact since 1980 and targeted plants with a combined 10 percent of U.S. refining capacity. One of the plants, Tesoro Corp’s ( TSO.N ) 166,000-barrel-per-day Martinez, California, refinery, was being shut because it was in the midst of planned maintenance work. The other refineries appeared set to continue running normally as operators initiated contingency plans, calling on trained managers as replacement workers. U.S. gasoline and diesel fuel prices rose on Monday on concerns over supply, as well as a bounce in crude. Talks broke down against a backdrop of plunging crude prices, down nearly 60 percent since June, prompting oil companies to cut […]

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Refineries to Rely on Automation Amid Strike

Oil Workers Strike (Bloomberg) — The heart and soul of a modern refinery isn’t the welders and pipefitters with grease on their hands, it’s the white-collar technicians seated at computers in a control room, overseeing the flow and temperature of every tank and valve. That’s why a strike that began in nine of the nation’s refineries yesterday isn’t likely to have much effect on fuel production at the plants. It will probably hurt refiners even less than the last strike 35 years ago, which also had a negligible impact on operations, according to industry analysts and consultants. “Refineries are highly automated operations that should be able to run with minimal disruption in the initial days and weeks,” Roger Read, an analyst for Wells Fargo Securities, said today in a note to investors. “Strikes are not new to the industry and a combination of non-union management and contract workers will […]

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