Category:

Iran nuclear deal may open oil taps in months, not weeks

WASHINGTON (Reuters) – A possible deal over Iran’s nuclear program that would phase out economic sanctions against Tehran is unlikely to flood world markets with more oil any time soon, despite Iran’s declared intention to claw back market share lost because of the curbs. Negotiators are still working out details of the deal they aim to seal by the end of June, but it would almost certainly lift sanctions only in stages, deferring even a partial return of Iranian crude exports until at least 2016, according to market experts, former U.S. officials, and Western diplomats. Progress in talks in Switzerland this month has contributed to a more than 10 percent slide in oil prices over the past week as some traders and analysts brace for up to 1 million barrels per day (bpd) of Iranian crude hitting markets, potentially doubling the estimated global supply surplus. Many focus on how […]

Posted On : Published By : Tom Whipple
Category:

Iran reports economic growth momentum

Central Bank of Iran reports modest economic growth despite pressure from Western sanctions. UPI/Maryam Rahmanian Iran’s economy emerged from recession in late 2014, though sanctions still curb the country’s ability to generate revenue from oil and gas sales. The Central Bank of Iran, however, said a nine-month growth rate of 3.6 percent represents an increase in $54 billion. Iranian budget negotiators are working on a draft for a new year that begins Saturday that envisions less dependency on oil revenue. When he wrapped up his mission to Iran last month, Martin Cerisola, assistant regional director for the International Monetary Fund, warned "the sharp drop in global oil prices and an uncertain external environment" presents significant challenges to Iran’s economic future . Sanctions on Iranian oil exports and other parts of the economy resulted in an economic contraction of 5.8 percent in 2012-13. For fiscal year 2013-14, the World Bank […]

Posted On : Published By : Tom Whipple
Category:

Libya’s recognized government says oil sales must go through eastern firm

BENGHAZI/CAIRO, Libya (Reuters) – Libya’s internationally recognized government said on Tuesday that any sales of the country’s oil should be arranged through a state firm based in Benghazi under its leadership to prevent fraud. If implemented, the decision would escalate a battle for control that is raging, four years after the ousting of Muammar Gaddafi, between the official government based in the east and a rival administration in Tripoli. Oil markets have been wondering who is owning Africa’s largest oil reserves. But so far customers have continued paying for exports worth hundreds of millions of dollars each month through state National Oil Corp (NOC) based in Tripoli, which is under effective control of the rival government. "The government confirms that any contracting or sale outside the legal framework represented by National Oil Corp headed by Mabrouk Bou Seif and based in Benghazi is considered a violation," the official government […]

Posted On : Published By : Tom Whipple
Category:

U.S.: Security risks in oil-rich Saudi region

Riyadh-Makkah (Mecca ) highway in Saudi Arabia U.S. warns of threats to Westerners in oil-rich parts of Saudi Arabia. (UPI/Shutterstock/Fedor Selivanov) U.S. consular services in Saudi Arabia remain closed five days after a threat surfaced against Western oil workers in the country, the U.S. embassy said. The U.S. Embassy in Riyadh said consular services are suspended through Tuesday because of unspecified heightened security concerns at diplomatic outposts in Saudi Arabia. "A new security message will be sent out as soon as consular services return to normal," an embassy statement read. An embassy statement last week was specific to Western oil workers . The embassy said Friday it had information stating that terrorist groups may have plans to target oil workers, "possibly to include those U.S. citizens working for oil companies in the Eastern Province [of Saudi Arabia], for an attack and/or kidnapping." The embassy provided no further information on […]

Posted On : Published By : Tom Whipple
Category:

Algerian Attempt to Rally Oil Prices Fails to Ignite

An Algerian invitation to fellow oil producers to work together on oil prices attracted only Angola this week, as the latest attempt to counter slumping oil prices failed to ignite. A Nigerian proposal last month to convey an emergency meeting of the Organization of the Petroleum Exporting Countries immediately fizzled after the group’s kingpin Saudi Arabia opposed the move. Fears of a mounting oil glut amid resilient U.S. oil production and brimming inventories have driven oil prices down again in recent days—after already halving since last June. Writing on behalf of Algerian President Abdulaziz Bouteflika, oil minister Youcef Yousfi sent invitations to a dozen countries, including Saudi Arabia, Nigeria, Angola and non-OPEC producer Russia, to discuss a concerted response to falling oil prices as part of “consultative meeting” in Algiers on March 16, according to people familiar with the letter. But only Angola’s oil minister José Maria Botelho de […]

Posted On : Published By : Tom Whipple
Category:

Egypt Signs Gas Import Deal With Russia’a Gazprom – Petroleum Ministry

Cairo — Egypt signed a deal to import 35 shipments of liquefied natural gas (LNG) over five years with Russian energy company Gazprom on Tuesday, the Petroleum Ministry said in a statement. The deal will see Egypt receive seven shipments of LNG annually for five years. The state’s Egyptian Natural Gas Holding Company signed the deal with the giant Russian firm. Gazprom has an 18 percent share of global natural gas reserves. The two sides will agree on when Egypt will receive shipments in the second half of this year. Signing this deal brings the amount of LNG shipments Egypt has agreed to import to 90 shipments provided by five foreign companies, 49 of which are going to be delivered in 2015 and 2016. These agreements are part of the state’s global tender to import natural gas in order to meet fuel demands of electric power plants, amid a […]

Posted On : Published By : Tom Whipple
Category:

Political uncertainty plagues Nigeria’s oil potential

Politics creating investment risk to Nigeria’s offshore oil potential, report from IHS finds. (UPI/Shutterstock/project1photography) The Independent National Electoral Commission said it plans to hold a nation-wide vote March 28, six weeks later than originally planned. Nigeria’s government postponed the vote in February, arguing the threat from militant group Boko Haram was too great to ensure safety at the polls. Nigeria is Africa’s largest oil producer. A report from IHS finds the future of the nation’s oil sector is at risk from the uncertain political future. Roderick Brice, the author of the report on Nigeria for the analytical group, said elections are a disruptive force in the oil-rich country. Regardless of who wins, investors will face an uncertain future. "That uncertainty has already constrained deepwater exploration and development," he said in a statement Monday. IHS forecasts crude oil production in Nigeria will drop from the 2 million barrels per day […]

Posted On : Published By : Tom Whipple
Category:

BP: U.S. Gulf Returning to Pre-Spill Condition

Deepwater Horizon Gulf of Mexico Oil Spill In the five years since the Deepwater Horizon oil spill, scientific data and studies are showing that the Gulf environment is returning to its baseline condition, according to a new report BP released today. The Gulf of Mexico Environmental Recovery and Restoration report also indicates that impacts from the spill largely occurred in the spring and summer of 2010. The report is based on scientific studies that government agencies, academic institutions, BP and others conducted as part of the spill response, the ongoing Natural Resource Damage Assessment (NRDA) process or through independent research. While individual studies are helpful, they tell only part of the story. This report, a wide-ranging compilation of reputable studies by respected researchers, provides a broader overview of the state of the Gulf environment. “The data and studies summarized in this report are encouraging and provide evidence that the […]

Posted On : Published By : Tom Whipple
Category:

Are The Good Times Over For Growth In US Shale Gas?

US natural gas production could decline in 2016 for the first time in 10 years, driven by low oil prices after a decade of gangbusters growth from shale plays. March 17 (Reuters) – U.S. natural gas production could decline in 2016 for the first time in 10 years, driven by low oil prices after a decade of gangbusters growth from shale plays. While most analysts forecast gas production will continue growing year-over-year, albeit at a slower pace, a couple of outlier analysts believe low oil and gas prices will prompt drillers to cut spending enough to reduce gas production next year. Any talk of cutbacks is an early sign that low oil prices have slowed the U.S. shale gas boom that has revolutionized global markets and is expected to transform the nation into a net exporter of gas by the end of the decade. U.S. gas production has increased […]

Posted On : Published By : Tom Whipple
Category:

ConocoPhillips Expects Output To Rise 13% In Next 3 Years

ConocoPhillips expects production to climb 13% to touch 1.7 million barrels of oil equivalent per day in 2017. March 17 (Reuters) – ConocoPhillips expects production to climb 13 percent to touch 1.7 million barrels of oil equivalent per day (mmboed) in 2017. The company, whose forecast excludes output from Libya, produced 1.5 mmboed in 2014, a 4 percent rise from 2013. ConocoPhillips said on Tuesday it expects output to grow 2-3 percent in 2015. It did not specify a growth rate for 2016. The company, which cut its 2015 capital budget by $2 billion to $11.5 billion in January, said it expects to maintain spending at the new level for the next two years. ConocoPhillips, like its rivals such as Chevron Corp and Apache Corp, has deferred drilling plans and delayed spending on some of its major projects to cope with a roughly 50 percent slump in global crude […]

Posted On : Published By : Tom Whipple