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Eni envisions $5 billion investments in Egypt

Italian energy company Eni signs framework agreement that envisions large-scale investments in country’s oil and gas reserves. Photo courtesy: Eni Italian energy company Eni said it signed a framework agreement to develop Egyptian oil and gas reserves that calls for as much as $5 billion in investments. Eni Chief Executive Officer, Claudio Descalzi, met over the weekend with Egyptian Petroleum Minister Sherif Ismail on the sidelines of an economic summit in Sharm el-Sheik. The framework agreement calls for as much as $5 billion in total investments. "The investments, which will be utilized through the realization of projects to be implemented in the next 4 years, are directed to the development of 200 million barrels of oil and 1.3 trillion cubic feet of natural gas," the Italian company said in a Saturday statement. "These investments will also contribute effectively to the increasing energy needs of local demand." Political and economic […]

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Significant gas discovery made in Libya

Italian energy company Eni reports what it says is a major natural gas discovery off the Libyan coast. UPI/Maryam Rahmanian Italian energy company Eni said Monday it made what it considers to be a significant discovery of natural gas off the coast of war-torn Libya. The company said it produced about 29 million cubic feet of natural gas per day from a discovery well off the Libyan coast . Its estimated capacity is 50 million cubic feet per day and its proximity to existing production infrastructure will allow for rapid development. "This exploration success further confirms the enormous potential of Libyan gas resources," the company said in a statement. "The future development of Libyan resources will allow supporting the growth of the domestic consumption and industry, while maintaining Libya’s position as a strategic supplier for Italy and Europe." Italy received nearly 10 percent of its natural gas from Libya’s […]

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PetroChina Vice Chairman Under Investigation

ENLARGE Liao Yongyuan, PetroChina’s vice chairman, is suspected of ‘serious law and discipline violations,’ according to a brief statement from a Communist Party agency. Photo: Zuma Press BEIJING—The vice chairman of major Chinese oil producer PetroChina Co. has been placed under investigation as China’s anticorruption drive continues to shake up its massive state-owned parent company. Liao Yongyuan most recently served as vice chairman of U.S.-listed PetroChina and as general manager at the state-owned parent company China National Petroleum Corp., the country’s largest oil and natural gas producer by volume. A brief dispatch by the Communist Party’s Central Commission for Discipline Inspection released Monday night said Mr. Liao was suspected of “serious law and discipline violations,” though no details were given. The term is typically used by the party watchdog in cases of suspected graft. Mr. Liao couldn’t be reached for comment, and it wasn’t known whether he had a […]

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Citi Sees Slower Commodities Demand Growth as China Recedes

(Bloomberg) — Global commodity markets will see slower and less synchronized demand growth from across the world as China’s dominance fades, according to Citigroup Inc. Global demand expansion, which centered on the rise of China in the 2000s, will slow in the next decade and be driven increasingly by India, Southeast Asia, the Middle East, Latin America and Africa, the New York-based bank said in a report e-mailed Tuesday. While demand will increase from these regions, dubbed the “Emerging 5”, it won’t be enough to offset the impact of slower growth from China, Citigroup said. Commodities tumbled to a 12-year low on Monday, with crude oil in New York slumping 18 percent in 2015. Inventories are rising after a decade-long bull market spurred farmers, miners and drillers to increase production just as economic growth slowed in China. The world’s biggest metals and energy consumer grew at the slowest pace […]

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China orders over 600,000 ton Ukrainian corn, snubs U.S. supplies

BEIJING (Reuters) – China, the world’s second largest corn consumer, has booked over 600,000 tonnes of corn from Ukraine this year and more deals are expected as Beijing’s stockpiling dries up supplies and boosts domestic prices. China’s move to import Black Sea shipments under a loan-for-grain deal is seen as a blow to U.S. corn exporters who are struggling to sell the country’s record crop. U.S. corn futures fell for a fourth straight session on Tuesday, trading near a six-week low with additional pressure from China’s purchases of Ukrainian corn. Some of the Ukraine cargoes for April-May shipment were struck at about 1,500 yuan ($240) per ton, including cost and freight, said one buyer. The price is about 60 percent lower than domestic corn quoted at 2,490 yuan per ton in the major port of Shenzhen. U.S. corn is quoted about 80 yuan ($13) per ton cheaper than Ukraine […]

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California Is Turning Back Into A Desert And There Are No Contingency Plans

California Is Turning Back Into A Desert And There Are No Contingency Plans thumbnail Once upon a time, much of the state of California was a barren desert.  And now, thanks to the worst drought in modern American history, much of the state is turning back into one.  Scientists tell us that the 20th century was the wettest century that the state of California had seen in 1000 years.  But now weather patterns are reverting back to historical norms, and California is rapidly running out of water.  It is being reported that the state only has approximately a one year supply of water left in the reservoirs, and when the water is all gone there are no contingency plans.  Back in early 2014, California Governor Jerry Brown declared a drought emergency for the entire state, but since that time water usage has only dropped by 9 percent.  That is […]

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U.S. fuel consumption is soaring amid cheaper prices

LONDON (Reuters) – Fuel demand in Texas is growing strongly as lower oil prices encourage motorists to use their vehicles more and buy larger replacements. Receipts of motor fuel taxes in February 2015 were 6 percent higher than in the same month in 2014, according to the Texas Comptroller of Public Accounts. Texas collected almost $284 million in motor fuel taxes last month compared with $269 million in February 2014 according to the comptroller’s monthly Revenue Watch report ( link.reuters.com/xas34w ). Motor fuel taxes must be paid to the comptroller by the 25th day of the month after which they are collected by suppliers and distributors, so the February receipts are for gasoline and diesel sold in January. Year-over-year collections – and by extension gasoline and diesel sales – are growing at the fastest rate for more than a decade. Texas consumed 35.7 million gallons of gasoline and 20.1 […]

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Canada Crude Falls Below $30; BMO Seeks Oil Sands Cost Cuts

(Bloomberg) — Canadian heavy oil prices fell below $30 for the first time in more than six years as Bank of Montreal warned that oil sands producers must cut costs. Western Canadian Select fell 59 cents to $29.85 at 12:28 p.m. Mountain time, the lowest since Feb. 18, 2009, according to data compiled by Bloomberg. The grade’s discount to U.S. benchmark West Texas Intermediate narrowed 80 cents to $13.60 a barrel. Crude futures settled at a six-year low of $43.88 in New York on concern record supply may strain storage capacity. The cash costs of oil sands producers must shrink to remain competitive in the “new normal of lower oil prices for longer,” BMO analyst Randy Ollenberger said in a note today. The majority of Canada’s crude comes from oil sands in Northern Alberta and is among the most expensive to produce. Companies including Royal Dutch Shell Plc and […]

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Exxon CEO Said to Visit Moscow Amid Talk of More Sanctions

Exxon Mobil Corp. Chief Executive Officer Rex Tillerson said, North American shale “is more resilient than some people think it is.” Photographer: Andrey Rudakov/Bloomberg (Bloomberg) — Exxon Mobil Corp. leader Rex Tillerson is visiting Moscow this week for meetings with Russian oil producer OAO Rosneft and government officials amid talk of further sanctions, according to people familiar with the matter. The chief executive officer, who increased Exxon’s drilling rights in Russia fivefold last year, has preliminary plans to meet with officials on Wednesday, said two of the people who asked not to be identified because details of the visit are confidential. Exxon declined to comment, saying the travel plans of its executives aren’t public. The trip comes even as the U.S. and Europe consider further sanctions on Russian companies and individuals over the annexation of Crimea one year ago. Exxon snapped up millions of acres in Russia last year, […]

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