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Nigerian Oil Dispute Exposes Dysfunction Ahead of Power Shift

By Drew Hinshaw And Patrick McGroarty LAGOS, Nigeria–The most oil-rich nation in Africa nearly ran out of gas this week. Airlines grounded flights because they couldn’t find jet fuel in recent days, and gas stations nearly all closed down. The companies licensed to restock Nigeria’s fuel depots refused to do so, saying the government here–defeated in an election in March–owed them more than $1 billion. The result was the worst fuel shortage here since a 1993 military coup, one that could echo for weeks in Africa’s top economy. Television stations, banks, and cellphone towers all went offline. Doctors worried their emergency rooms would go dark, and several soldiers in the north said they considered halting their pursuit of Boko Haram and the women the Islamist terrorist group has kidnapped. Late Monday, the shortage ended, when Nigeria’s government agreed to look into the debts it owed. On Tuesday, gas stations […]

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China’s CNPC makes first tight oil find over 100 million tonnes

BEIJING Chinese state-owned energy giant China National Petroleum Corp (CNPC) has discovered more than 100 million tonnes of tight oil geological reserves in its Changqing field, a company-run newspaper said on Tuesday. The discovery, located in the western province of Shaanxi, is the first Chinese tight oil find to surpass 100 million tonnes, the China Petroleum Daily said. Technically recoverable reserves may be considerably lower. Tight oil production capacity in the Ordos basin, where Changqing is located, is more than 1 million tonnes, the paper said. CNPC is Asia’s largest oil producer and the parent of PetroChina Co Ltd.. In the first quarter of 2015, Changqing produced 6 million tonnes of crude oil, or 487,600 barrels per day, according to the official Xinhua News Agency’s China Oil, Gas & Petrochemicals (OGP) newsletter. (Reporting by Adam Rose; Editing by Alan Raybould )

Posted On : Published By : Tom Whipple
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Bakken Well Completions Spike

Bakken Well Completions Spike Bakken well completions rose sharply last month, according to the North Dakota Department of Mineral Resources (DMR). The DMR reports a preliminary completion count for March was 189, up 350% from 42 the previous month. Related:  Bakken Rigs Decrease to 77 Many oil and gas companies who have been hard hit by low crude prices are postponing well completions as a temporary measure in order to wait out the crisis with plans to resume production when oil prices rebound. But oil prices remain unstable, why would North Dakota experience a spike? Director of DMR Lynn Helms speculates that the increase is likely due to state-mandated time limits and major tax incentives, which forced companies to bring 125 wells online by June to comply with time limits. Nathan Conway, CEO of Fortis Energy Services, told OAG360 that “In the state of North Dakota, a well can only […]

Posted On : Published By : Tom Whipple
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Driving is making a comeback in the U.S.: Kemp

LONDON California motorists consumed an extra 34,500 barrels of gasoline every day in February compared with the same month last year, state tax records show. The state is just part of a nationwide surge in driving that has pushed U.S. gasoline consumption up by more than 300,000 barrels per day compared with last year. California drivers filled their cars with 1.148 billion gallons of gasoline in February, about 40.5 million gallons more than in February 2014, an increase of almost 3.7 percent. The Golden State has the most expensive gasoline in the country owing to its relative isolation, special fuel formulations and high level of tax. The state collects 66 cents per gallon in state and federal gasoline taxes, second only to Pennsylvania on 70 cents, and far above the national average of 49 cents, according to the American Petroleum Institute. But thanks to the plunge in crude oil […]

Posted On : Published By : Tom Whipple
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U.S. rig activity leveling out

BISMARCK, N.D., May 26 (UPI) — The number of rigs actively exploring or producing oil and natural gas in North Dakota was 82 as of Tuesday, relatively stable from a week ago, state data show. The state government reported 82 rigs in active service as of Tuesday, down one from May 18. The rig count, a reflection of the health of the exploration and production side of the sector, is at its lowest level since January 2010, but holding steady for North Dakota. Rig counts in the state fell from 93 at the middle of April to 84 by the end of that month. Low oil prices means less cash for energy companies to spend on exploration and production. Oil field services company Baker Hughes reported 885 rigs in active service in the United States in its weekly count last week, down three from the previous week. North Dakota […]

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California Oil-Spill Estimate Revised Down

ENLARGE Animal-care experts at SeaWorld San Diego attend to an oiled sea lion found Friday at Refugio State Beach near Goleta, Calif. Photo: Associated Press The amount of oil believed spilled from a ruptured pipeline off the Santa Barbara County, Calif., coast last week has been revised downward, as cleanup crews worked through the Memorial Day weekend mopping up crude off of eight miles of affected beaches. The pipeline’s owner, Plains All American Pipeline PAA -1.34 % LP, now estimates that the maximum amount spilled when the rupture was detected May 19 is 101,000 gallons, or 4,200 gallons lower than previous estimates officials of a state-federal joint unified command have announced. As of noon Monday, a total of 10,060 gallons of an oil-water mix created by the crude that reached the Pacific Ocean had been skimmed off of coastal waters and beaches, said Tom McKenzie, a U.S. Coast Guard […]

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Hundreds more oil sands staff evacuated on Alberta fire threat

CALGARY, Alberta Statoil ASA, MEG Energy Corp and Cenovus Energy Inc evacuated hundreds of workers from three oil sands projects in northeastern Alberta on Tuesday as wildfires raged through the key crude-producing region. The latest evacuations are in addition to project shutdowns by Cenovus and Canadian Natural Resources Ltd over the weekend, as companies rushed to remove staff from potential danger. At least 233,000 barrels per day of oil sands production, 9 percent of Alberta’s total oil sands output, have been suspended because of the fire risk, though none of the projects have been damaged. The Alberta government said there are 70 forest fires now burning in the province, with 20 considered out of control. Lightning storms are forecast for Tuesday evening, increasing the risk of more fires, a government spokesman said. Cenovus evacuated all 90 staff from its Narrows Lake oil sands project on Tuesday, which is not […]

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How the ‘Paddle in Seattle’ Plans to Beat Shell

Kayak-tivists gathered in Elliott Bay on Saturday, May 16, where the Polar Pioneer drilling rig is docked. (Flickr / Backbone Campaign) Kayak-tivists gathered in Elliott Bay on Saturday, May 16, where the Polar Pioneer drilling rig is docked. (Flickr / Backbone Campaign) Seattle has become a hub of anti-extraction activism. Protests began on May 14, when Royal Dutch Shell — bucking city residents and officials — docked its Polar Pioneer off the Emerald City coast. The towering 400-by-355-foot oil rig is en route to the Arctic, where it is scheduled to begin drilling operations this summer. The largest demonstration yet happened May 16, as hundreds of “kayak-tivists” swarmed Seattle’s Terminal 5, where the Polar Pioneer is docked. Since then, protests against the rig have been ongoing, and show few signs of letting up. This week, I spoke with Puget Sound resident John Sellers, a global justice movement veteran and […]

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Oil prices steady but indications rally running out of steam

SINGAPORE Crude oil prices were broadly unchanged in early trading on Tuesday, as firm demand supported and ample supply dragged, but analysts said there were signs that a recent rally was running out of steam. Robust demand in Asia as well as due to the driving season in the United States is being met by near record output, especially from the Organization Of Petroleum Exporting Countries (OPEC), although U.S. production seems to have been peaked, at least temporarily. Front-month Brent crude prices were up 6 cents to $65.58 per barrel by 0120 GMT. U.S. crude prices were up 16 cents at $59.88 a barrel. Analysts said that big price spikes away from current levels were unlikely. "Crude oil markets were supported by a reported decline in U.S. production and crude oil inventories last week but prices failed to re-test the highs set earlier in the month," ANZ bank said […]

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Oil prices dip below $65 as dollar strengthens

LONDON Crude oil futures dipped below $65 a barrel as the dollar strengthened on Monday, with a public holiday in the United States and much of Europe keeping oil trading volumes muted. Front-month Brent crude fell 62 cents to $64.75 a barrel by 0828 GMT. U.S. crude was down 46 cents at $59.26 a barrel. The dollar rose to its highest against the euro and yen in nearly two months and reached a one-month high against a basket of currencies. A strong dollar makes crude oil less attractive for holders of other currencies. "The overall fundamentals still point to a well-supplied market, a fact that should continue to put a ceiling on prices," Barclays said. However, the market drew support from strong demand figures across Asia and the United States. "Global oil demand continues to surprise to the upside, with April data showing no signs of slowdown despite a […]

Posted On : Published By : Tom Whipple