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A partitioned Iraq would be a nightmare for Iran

Iran is not a sectarian actor, but Tehran still needs to prove it. Its involvement in the fight against the Islamic State in Iraq and the Levant (ISIL) is a good opportunity to do so. Iran’s ability to constrain and control Shia militias in the ongoing offensive in Tikrit, Iraq, will determine how Iraqis, regional powers and the rest of the international community view Iran and its policies. If the widely shared fear of a backlash against Sunnis in Iraq materializes, Iran will continue to be a player in the sectarian game despite itself. Iraq’s stability is an important concern for Iranians, who still remember the two countries’ devastating eight-year war in the 1980s. Iran sees ISIL as a grave threat in its backyard. After initial hesitation over the extent of the ISIL threat, Tehran has transformed the group’s menace into an opportunity. Tehran is providing the Iraqi army […]

Posted On : Published By : Tom Whipple
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Nigeria Votes in Sharply Contested Presidential Election

KANO, Nigeria — The most sharply contested election in Nigeria ’s post-independence history wound down to a tense conclusion on Saturday amid fears that a polarized electorate would clash regardless of the outcome in a country split on religious, ethnic and sectional lines. There appeared to be little middle ground between partisans of the incumbent president, Goodluck Jonathan , a Christian from the south hated in the north for mismanaging a bloody Islamist insurgency at steep cost, and his challenger, Muhammadu Buhari, a former military ruler, a northerner and a belated democratic convert whose Muslim faith and authoritarian past are feared in the south. Voters on Saturday morning crowded around registration stations here in the north’s largest city, a packed metropolis of more than five million, as hitches in the process added to the tension. Election officials were more than two hours late in some places, and malfunctioning electronic […]

Posted On : Published By : Tom Whipple
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Advanced Drillships Become Burden For Owners As Business Dries Up

March 27 (Reuters) – Not so long ago, advanced drillships costing more than half a billion dollars each and capable of operating in ever-deeper waters practically guaranteed big profits for oil-rig operators. Now, with oil prices down by half since June, many have become a burden on their owners as drilling activity slows. Drillship operators face a more brutal hit to margins than they did after the oil-price crash of 2008 because of the huge cost of maintaining the more than $10 billion worth of state-of-the-art vessels that have been idled at sea, analysts say. Noble Corp Plc, Ensco Plc and Transocean Ltd are among companies that have invested in advanced rigs which, unlike older jack-up rigs that attach to the ocean floor, rely on dynamic positioning systems using thrusters to keep them in position. And it’s these thrusters that are the problem. They need to be removed to […]

Posted On : Published By : Tom Whipple
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Bakken Rig Count Remains Flat

New Regulations For Fracking on Public Lands The Bakken-Three Forks rig count remained flat at 97 rigs running across our coverage area by midday Friday. In recent Bakken news, the Bureau of Land Management (BLM) finalized new rules on that will regulate hydraulic oil and gas fracturing on public and tribal lands. The ruling could potentially impact more than 90,000 oil and gas wells and set a precedent for future regulations. Read more: New Fracking Rules for Public Lands The U.S. rig count fell another 21 to 1048 rigs running as of today. A total of 233 rigs were targeting natural gas (down nine from the previous week) and 814 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 97 rigs are running in the Williston Basin across MT, ND, and SD. 96 are […]

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U.S. economic growth slows in fourth quarter; corporate profits fall

WASHINGTON (Reuters) – U.S. economic growth cooled in the fourth quarter as previously reported and after-tax corporate profits took a hit from a strong dollar, which could undermine future business spending. Gross domestic product expanded at a 2.2 percent annual rate, the Commerce Department said on Friday in its third estimate of GDP. That was unrevised from the forecast the government published last month. Businesses throttled back on inventory and equipment investment, but robust consumer spending limited the slowdown in the pace of activity. The economy grew at a 5 percent rate in the third quarter. After-tax corporate profits declined at a 1.6 percent rate last quarter after increasing at a 4.7 percent pace in the third quarter. Corporate profits from outside the United States fell at an 8.8 percent rate, the steepest decline since the 2007-2009 recession. "Slower profit growth could mean slower investment in the coming months," […]

Posted On : Published By : Tom Whipple
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Oil Rigs Decline by Smallest Number in 15 Weeks

U.S. oil rigs fell by the smallest number in 15 weeks, a potential sign that America’s oil-drilling crash may be tapering. Drillers idled 12 oil rigs (excluding gas rigs), dropping the number to 813, Baker Hughes reported on Friday.  The rig count has dropped 49 percent since October, an unprecedented retreat, as the drop in oil prices has made production less profitable. The median forecast from a Bloomberg survey of 10 #RigCountGuesses on Twitter was for a decline of 39. But production isn’t slowing yet, and new efficiencies in U.S. drilling and pumping may make raw numbers of rigs in the field misleading. The U.S. will pump 9.3 million barrels a day this year, the most since 1972, despite the fewest rigs in the field in almost four years, according to the Energy Information Administration.  http://www.bloomberg.com/graphics/2015-oil-rigs/embed.html?title=1 U.S. oil in storage is at a record, and production is at its highest level since […]

Posted On : Published By : Tom Whipple
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U.S. Oil Rig Count Falls Again

By Chelsey Dulaney The U.S. oil-rig count fell by 12 to 813 in the latest week, according to Baker Hughes Inc., marking the 16th-straight week of declines. The number of U.S. oil drilling rigs–a proxy for activity in the oil industry–has fallen sharply since prices headed south last year. There are now nearly 50% fewer rigs working since a peak of 1,609 in October. That hasn’t yet translated into a drop in actual output, even though it has squelched production capacity. Crude-oil futures held their declines after the data’s release and were recently off 3.2% to $49.79. According to Baker Hughes, gas rigs were down 9 to 233 this week. The U.S. offshore rig count is at 34, down 3 from last week and down 16 from the previous year. For all rigs, including natural gas, the week’s drop was 21 to 1048, and down 761 from 1809 at […]

Posted On : Published By : Tom Whipple
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BHI: US rig count decline smallest in 15 weeks

HOUSTON, Mar. 27 By Matt Zborowski OGJ Staff Writer The US drilling rig count dropped just 21 units to settle at 1,048 rigs working during the week ended Mar. 27, representing the smallest decline in 15 weeks, according to data from Baker Hughes Inc. Oil rigs shed just 12 units, also its smallest decline in 15 weeks. The overall count has now fallen in 16 consecutive weeks, during which time it has plunged 872 units ( OGJ Online, Dec. 5, 2014 ). The total of 1,048 is the lowest count since the week ended Oct. 23, 2009, and 761 fewer units compared with this week a year ago. The slowed decline comes following analysis last week from Raymond James & Associates Inc. that said the decline’s pace has “far exceeded” RJA’s original expectations, which saw a March average of 1,485 units. The average for the first four weeks of […]

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Coal’s percentage of US power generation drops in January: EIA

Coal burn accounted for more US power generation in January than in December, but by percentage made up less of all power generated, Energy Information Administration data Friday showed. Coal’s share of the US electric power sector totaled 132,742 MWh in January, or 36.8% of all generation, down from the previous month as 19,467 MWh more power was generated. In December, coal burn totaled 124,715 MWh, which accounted for 40.7% of all generation. Natural gas made up 28% of generation in January and 29.4% of generation in December. Coal accounted for 46.5% of power generation in January 2014. Utility coal stockpiles grew from 151.4 million st in December to 157.8 million st in January. The last time stockpiles topped 156 million st was November 2013. Article continues below… Platts Coal Trader provides the latest prices for key benchmark coals, as well as: Daily pricing for tons and allowances for […]

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Shell Moves Rigs To Alaska Ahead Of Possible Drilling Permit

Shell is moving oil rigs to Alaska ahead of the possible resumption of controversial drilling activities as the oil major awaits the green light from US authorities. LONDON, March 27 (Reuters) – Royal Dutch Shell is moving oil rigs to Alaska ahead of the possible resumption of controversial drilling activities as the oil major awaits the green light from U.S. authorities. The Anglo-Dutch oil major hopes to revive its Arctic drilling programme two years after the grounding of a rig in Alaska that led to a huge uproar from environmental groups. But even before getting the go-ahead from the U.S. interior secretary, Shell is moving the drilling rigs Noble Discoverer and Polar Pioneer to the area in anticipation of the short operations window in summer. The vessel are "heading to North America ahead of a potential 2015 drilling season," a Shell spokeswoman told Reuters. "Any final decision to go […]

Posted On : Published By : Tom Whipple