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North Dakota: Crude Production is Being Focused in Four Core Counties

The crude oil price drop has yet to chase all producers out of North Dakota, and it likely won’t – as long as prices remain at or above a critical threshold, according to recently released analysis by the North Dakota Department of Mineral Resources House Appropriations Committee . In doing their analysis, the department looked at several areas affected by wilting crude oil values, including well permits, rig counts, production projections and even breakeven pricing. What the department concluded is that new drilling would not cease until prices fell to $30/barrel or less, far lower than prices in the mid- to upper $40s a barrel seen in recent days. The drop in prices has slowed production in the state dramatically, however, and drillers that have remained are focusing on “the most bang for the buck,” Alison Ritter, spokesperson for the House Appropriations Committee, told Rigzone. “They are focusing their […]

Posted On : Published By : Tom Whipple
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U.K. Manufacturing Strengthens as Oil-Price Drop Cuts Costs

(Bloomberg) — U.K. manufacturing growth accelerated in January as factories saw a pickup in domestic orders and the biggest decline in raw-material costs in almost six years. Markit Economics said its Purchasing Managers’ Index rose to 53 from a revised 52.7 in December. Measures above 50 indicate expansion. A gauge of input prices plunged to the lowest since May 2009. The report suggests the stimulus from cheaper commodity costs is feeding through to businesses. The oil-price drop is also easing price pressures across the economy, and Bank of England Governor Mark Carney said the inflation rate could fall below zero in the coming months. “The domestic market remains the main growth driver, as the U.K. economic recovery provides a steady stream of new business,” said Rob Dobson, an economist at Markit in London. “Waning inflationary pressures will provide the Bank of England with leeway to push back the first […]

Posted On : Published By : Tom Whipple
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Greek Factories Slump as Crisis Risks Undermining ECB Action

(Bloomberg) — Greek manufacturing shrank at the fastest pace since 2013 as uncertainty about the country’s political future mounted, threatening to undermine efforts by the European Central Bank to stimulate the euro-area economy. A Purchasing Managers’ Index for Greece slipped to a 15-month low of 48.3. The measure has been below 50, the mark that separates expansion from contraction, since September. A final reading for the 19-nation currency bloc stood at 51 in January, London-based Markit Economics said on Monday. That’s up from 50.6 in December and in line with a Jan. 23 estimate. Subdued growth and a slide in prices aggravated by a slump in the cost of oil prompted the ECB to announce a 1.1 trillion euro ($1.2 trillion) quantitative-easing program on Jan. 22. Business confidence improved last month in anticipation of the move. Three days after the QE announcement, Greek voters elected Alexis Tsipras as new […]

Posted On : Published By : Tom Whipple
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Russian Oil Output Near Record as Prices Fail to Slow Momentum

(Bloomberg) — Russian oil production remained near the post-Soviet record reached last month, as the collapse of crude prices since June has so far failed to visibly disrupt growth, and exports jumped. The country’s output dropped less than 0.1 percent from December to 10.657 million barrels a day, according to preliminary data e-mailed today from the Energy Ministry’s CDU-TEK group. Oil prices have fallen to the lowest since 2009 amid surging U.S. output and a November decision by OPEC to abandon its role as the global swing producer. Russia, which depends on the oil and natural gas industry for half of its budget, is on the brink of a recession, pressured by crude’s bear market and U.S. and European Union sanctions. Crude output will probably remain on par with 2014, although the current low prices present a risk, Energy Ministry Alexander Novak said last month, citing producers’ plans. Selling […]

Posted On : Published By : Tom Whipple
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Death Toll Mounts as Ukraine Cease-Fire Talks Break Down

ENLARGE A man examines the wreckage of his car in the suburbs of Donetsk, Ukraine, on Sunday after it was destroyed by shelling the day before. Photo: Agence France-Presse/Getty Images ARTEMIVSK, Ukraine—Cease-fire talks broke down between Ukraine’s government and Russian-backed rebels while Kiev reported 28 soldiers killed over the weekend in some of the deadliest fighting since a tentative peace deal was signed in September. Artillery duels around a government-held railway hub of Debaltseve in eastern Ukraine squelched hopes to stem a return to full-scale fighting. Both sides accused the other of shelling civilian areas Sunday. Ukraine’s military says it expects a surge in fighting in the coming days, after Russia sent a convoy of what it said was humanitarian aid into the country over the weekend. Kiev has accused the Kremlin of using the aid convoys to funnel munitions to the rebels and says there is usually an […]

Posted On : Published By : Tom Whipple
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U.S. Considers Supplying Arms to Ukraine Forces, Officials Say

WASHINGTON — With Russian-backed separatists pressing their attacks in Ukraine , NATO ’s military commander, Gen. Philip M. Breedlove, now supports providing defensive weapons and equipment to Kiev’s beleaguered forces, and an array of administration and military officials appear to be edging toward that position, American officials said Sunday. President Obama has made no decisions on providing such lethal assistance. But after a series of striking reversals that Ukraine’s forces have suffered in recent weeks, the Obama administration is taking a fresh look at the question of military aid. Secretary of State John Kerry , who plans to visit Kiev on Thursday, is open to new discussions about providing lethal assistance, as is Gen. Martin E. Dempsey , the chairman of the Joint Chiefs of Staff, officials said. Defense Secretary Chuck Hagel, who is leaving his post soon, backs sending defensive weapons to the Ukrainian forces. In recent months, […]

Posted On : Published By : Tom Whipple
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Ukraine rebel leader Zakharchenko ‘to raise 100,000 men’

Rebels have been gaining ground in the past few days Pro-Russian separatist leader Alexander Zakharchenko has announced plans to recruit 100,000 men, as fighting with Ukrainian forces intensifies. The separatists are trying to capture the key town of Debaltseve, while central areas of rebel-held Donetsk have been hit by artillery fire. Dozens of civilians were killed on both sides of the front line at the weekend. "Mobilisation will start in 11 days’ time," Mr Zakharchenko told Donetsk news agency. Hundreds of civilians have been moved out of Debaltseve amid reports that the separatists have reached the outskirts of the town. Attempts to negotiate a ceasefire failed on Saturday in the Belarusian capital Minsk when rebel representatives did not turn up.

Posted On : Published By : Tom Whipple
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Population: Four Out of Five Scientists Agree

A new poll of American scientists suggests that a large majority of them (82 percent) regard population growth as a major challenge, almost as many as those who believe that climate change is mostly due to human activity (87 percent). The poll, which was conducted by the Pew Research Center, indicates that a clear majority of the American public (59 percent) are concerned that there won’t be enough food and resources to accommodate a growing world population, but the level of concern in the scientific community, as with climate change, is noticeably higher. On one level, the poll results are not surprising. For decades now leading scientists have been warning that humanity is overusing planetary resources and inflicting dangerous harm on the environment. Earlier this month 18 scientists authored a paper in the journal Science warning that humanity is encroaching on nine “planetary boundaries,” and that we have already […]

Posted On : Published By : Tom Whipple
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Why we are at Peak Oil Right Now

In this life nothing is certain. Therefore I am not declaring, absolutely, that we are at peak oil, only that it is a near certainty. But I am putting my reputation on the line in making the claim that the period, September 2014 through August 2015 will be the year of Peak Oil. Below are my reasons for making this claim. First of all, Peak Oil is not a theory. The claim that Peak Oil is a theory is more than a little absurd. Fossil hydrocarbons were created from buried alga millions of years ago and they are finite in quantity. And as long as we keep extracting them in the millions of barrels per day, it is only common sense that one day we will reach a point where their extraction starts to decline. In fact most countries where oil is extracted are already in decline. So obviously […]

Posted On : Published By : ASPO-USA