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Iran’s tantalizing oil prize: Kemp

LONDON (Reuters) – Iran contains some of the largest and most attractive petroleum resources in the world, so any easing of sanctions could have a major impact on oil and gas markets in the second half of the decade. Iran’s possible re-emergence as a major exporter would force a re-ordering of the world oil market both because of the country’s location on the cost-curve and the quality of its oil. Iran’s proved oil reserves of 160 billion barrels, almost 10 percent of the world total, rank it fourth after Venezuela (300 billion barrels), Saudi Arabia (265 billion barrels) and Canada (175 billion barrels), according to BP. The country also has the world’s largest proved gas reserves of almost 34 trillion cubic meters (18 percent of the global total), putting it ahead of Russia (17 percent) and Qatar (13 percent). Iran’s petroleum resources are contained in large, conventional reservoirs with […]

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Iraqi Prime Minister Warns Yemen Conflict Could Spark Broader Sectarian War

WASHINGTON—Yemen’s civil conflict and the U.S.’s emerging nuclear deal with Iran are sowing divisions among the Obama administration’s key Arab allies and placing the White House in the cross hairs. The strains flared publicly on Wednesday when the Shiite leader of Iraq, a U.S. ally, accused another American ally, Sunni Saudi Arabia, of threatening a regional sectarian war by launching airstrikes against Iranian-backed insurgents in Yemen. In Washington on Wednesday, Iraqi Prime Minister Haider al-Abadi said the Saudi airstrikes made no sense and urged world leaders to quickly forge a cease-fire in Yemen, where the United Nations has voiced concerns about a growing humanitarian crisis. Iraqi Prime Minister Haider al-Abadi in Washington on Tuesday. “To me, there is no logic to the operation at all in the first place,” Mr. Abadi said during his first official visit to the U.S. since taking office in September. “What is the aim? […]

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Tensions Flare Between Iraq and Saudi Arabia in U.S. Coalition

Photo Prime Minister Haider al-Abadi of Iraq, center, on Capitol Hill on Wednesday. He is making his first official visit to Washington. Credit James Lawler Duggan/Reuters WASHINGTON — A remarkable clash between two key American allies in the Middle East burst into the open here on Wednesday as the Iraqi prime minister publicly criticized the Saudi air campaign in Yemen and a top Saudi official retorted that there was “no logic to those remarks.” The exchange, driven by sharply opposing views of Iran in the region, reflected the challenges facing the Obama administration as it tries to hold together a diverse coalition, including Sunni Arab states and Shiite-dominated Iraq , in the fight against the Islamic State, also known as ISIS . Iran is a sometimes patron to Iraq but an ideological archrival to Saudi Arabia . The United States remains caught in a difficult balancing act as it […]

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Iraqi forces lose initiative as IS hits Anbar, Baiji

Iraqi Army troops move along the frontline April 14, 2015 near Al-Karmah, in Anbar Province, Iraq. (JOHN MOORE/Getty Images) Recommend 5 people recommend this. Sign Up to see what your friends recommend. Iraqi security forces are suffering major setbacks in Anbar and Baiji – areas that Prime Minister Haider al-Abadi has identified as the most important fronts in the war with the Islamic State (IS) militant group. Following its successful operation to retake Tikrit, the Iraqi government has planned major campaigns to reassert control of Anbar province, an IS stronghold, and the Baiji area of Salahaddin province, which includes the country’s largest oil refinery. But the IS group, which…

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China Approves First Locally Designed Nuclear Reactor to Spur Economy

BEIJING—China’s top government body approved construction of the nation’s first domestically designed nuclear reactor as Beijing looks to ramp up infrastructure spending to combat slowing economic growth . The State Council issued a statement after its weekly meeting that it had approved the first demonstration unit of China’s Hualong-1 nuclear reactor. The reactor, which has been jointly developed by Chinese state-backed nuclear companies, is expected to be constructed at a nuclear project in the southern province of Fujian. The statement gave no details of when construction would start or when the reactor would enter service. Nuclear power has emerged as an attractive option for Chinese leaders looking to replace coal-fired electricity with cleaner power sources. The State Council, in approving Hualong-1, said it was “using an adjustment of the energy sector to promote steady growth.” Promoting infrastructure development, such as power plants, roads and railways has been a favored […]

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The Major Paradox at the Heart of the Chinese Economy

China Old Economy vs New The day-to-day data coming out of China are sometimes reminiscent of the classic Zen riddle about listening to the sound of one hand clapping. They’re puzzling, even a little baffling. The world’s second-biggest economy is decelerating. The government reported Wednesday that first-quarter gross domestic product grew 7 percent, the slowest pace since the 2009 global recession. The International Monetary Fund, meanwhile, sees Chinese expansion slowing even further to 6.8 percent this year and 6.3 percent in 2016. India is now the rock-star emerging market, tipped to grow 7.5 percent this year. At the same time, the scent of fast money hovers over Shanghai, Shenzhen and Hong Kong, where stock markets are enjoying explosive rallies. The Shanghai Composite Index is up 94 percent over the last 12 months and some $4 trillion has been added to the total market value — now $7.3 trillion — […]

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Bakken production dips, major well completion increase in June

February saw North Dakota’s second consecutive month to have a declining number in oil production, dropping roughly one percent from the previous month. PHOTO: OVERLAND AERIAL PHOTOGRAPHY February was North Dakota’s second consecutive month to see a decline in oil production. While it wasn’t a significant production decline—dropping roughly one percent to 1.17 million barrels of oil per day (bopd)—it was the first time since December 2010/January 2011 that the state saw back-to-back production declines, said Lynn Helms, director of the North Dakota Department of Mineral Resources, during his April Director’s Cut. Along with production decline, rig counts in the Bakken continued to remain low in comparison to the same time one year prior. Drilling rig count dropped 27 from January to February, 25 more from February to March, and has since fallen 17 more from March to today. The number of well completions dropped from 63 in January […]

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U.S. oil stockpiles show smallest rise this year: EIA

NEW YORK (Reuters) – U.S. crude stocks rose less than expected last week as imports fell, while gasoline stocks decreased and distillate inventories rose, data from the Energy Information Administration showed on Wednesday. Crude inventories rose by 1.3 million barrels to 483.69 million last week, the smallest build reported since the week ending Jan. 2, compared with analysts’ expectations for an increase of 4.1 million barrels. Crude stocks were at record levels for the 14th consecutive week. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.287 million barrels, EIA said. "Since the market has grown accustomed to much larger, if not spectacular, crude oil inventory increases, the smallish build this week is supportive," said John Kilduff, partner, Again Capital LLC in New York. U.S. crude futures rallied sharply after the EIA data and were up $2.01 at $55.30 a barrel at 11:28 a.m. EDT, after posting a […]

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Payout from BP oil spill settlement tops $5 billion

(Reuters) – The administrator overseeing a BP Plc fund to compensate people and businesses claiming they were harmed by the 2010 Gulf of Mexico oil spill said on Wednesday more than $5 billion has been paid out. A total of $5.037 billion has been paid to 62,162 claimants, the administrator, Patrick Juneau, said in a statement on his website for spill claims. The money is being paid under a 2012 settlement tied to the explosion of the Deepwater Horizon drilling rig, which killed 11 workers and caused the largest U.S. offshore oil spill. The fifth anniversary of the disaster will be April 20. BP originally said it expected to pay $7.8 billion to resolve claims under the settlement but by February of this year had boosted its estimate to $9.9 billion. The London-based oil company had long complained that Juneau was paying out too much, including to claimants who […]

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Why Nuclear Power Is All but Dead in the U.S.

Employees adjust nuclear fuel rods in a fuel pool. Photographer: Timothy Fadek/Bloomberg The Obama administration supported a bill yesterday, April 14, that would give Congress a chance to review a nuclear power agreement with Iran, if the two countries clinch a deal before their June 30 deadline.  In other words, if the diplomatic hurdles are surmounted, nuclear power may have a smoother ride in Iran than in the U.S. “No question,” said Judd Gregg, the former New Hampshire Republican senator and governor and current co-chairman of Nuclear Matters , a bipartisan nonprofit group that promotes keeping nuclear alive in the U.S. “There are 150 plants on the drawing board around the world. There are five on the drawing board in the United States.” Say what? The U.S. achieved fission before anybody else. It learned before anybody else to control nuclear power, train it to boil water, to spin turbines, to generate electricity. There are 99 nuclear reactors across the […]

Posted On : Published By : Tom Whipple