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China Nuclear Firm Plans Biggest Domestic IPO in 5 Years

ENLARGE A model of a nuclear power plant by China National Nuclear Corporation on show at the 18th China Beijing International High-Tech Expo in Beijing, China, 13 May 2015. Photo: European Pressphoto Agency China National Nuclear Power Corp., one of the top two state nuclear-power giants, will raise as much as $2.16 billion in what is set to be the country’s largest domestic initial public offering in five years. CNNPC plans to sell up to 3.89 billion new shares, or a quarter of its total, in the sale, according to its IPO prospectus, filed to the Shanghai Stock Exchange on Monday. The offering’s expected launch date is June 2. China National Nuclear Group holds a 97% stake in CNNPC. About 40% of China’s total nuclear energy is generated by operators controlled by CNNPC. Excluding issuance-related fees, the firm will raise 13.4 billion yuan ($2.16 billion), according to the prospectus. […]

Posted On : Published By : Tom Whipple
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Oil prices hit struggling oil companies

(Photo: Thinkstock) Low oil prices are endangering an increasing number of exploration and production companies. According to a new report from Moody’s Investors Service, the oil and gas industry could see the rate of defaults rise over the next year. The companies in danger of going belly up, not surprisingly, are the ones that already have low credit ratings. Moody’s finds that the default rate for oil drillers with a credit rating of B2 or lower could jump from 2.7% to 7.4% by March 2016. Moreover, distressed oil companies make up a rising share of overall firms with a poor credit rating – roughly 14.8% of the companies with a B3 credit rating or worse covered by Moody’s are in oil and gas. That is up sharply from the 8% share that oil firms accounted for in 2014. The credit ratings agency also said that even if oil prices […]

Posted On : Published By : Tom Whipple
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After a Political Reversal in Alberta, ‘Anything Seems Possible’

Photo Rachel Notley, leader of the New Democratic Party in the Canadian province of Alberta, at the ceremony in Edmonton on Sunday in which she was sworn in as the province’s premier. Credit Topher Seguin/Reuters EDMONTON, Alberta — This is the Canadian province known for oil, cowboys and rodeos, and as the adopted home of Prime Minister Stephen Harper , whose Conservative Party has long dominated politics. So it seemed especially jarring when a boisterous crowd in this bastion of conservative voting known as Canada ’s Texas celebrated its new premier this weekend: a woman regarded by much of the country as a leftist who vows to take on big oil and champion the poor. The 51 newly elected New Democratic Party members who sat behind the premier, Rachel Notley, their leader, in the swearing-in ceremony on Sunday did not resemble typical revolutionaries. Largely political novices, they dressed like […]

Posted On : Published By : Tom Whipple
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With Money Drying Up, Greece Is All but Bankrupt

Photo A street in central Thebes, northwest of Athens. While the trash is being collected, budget cuts of 50 percent leave room for little else. Credit Eirini Vourloumis for The New York Times ATHENS — Bulldozers lie abandoned on city streets. Exhausted surgeons operate through the night. And the wealthy bail out broke police departments. A nearly bankrupt Greece is taking desperate measures to preserve cash. Absent a last-minute deal with its creditors, the nation will run out of money early next month. Two weeks ago, Greece nearly defaulted on a debt payment of 750 million euros, or about $825 million, to the International Monetary Fund . For the rest of this month, Greece should be able to cover daily cash deficits of around 100 million euros, government ministers say. Starting June 5, however, these shortfalls will rise sharply, to around 400 million euros as another I.M.F. obligation comes […]

Posted On : Published By : Tom Whipple
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Russia Carries On With Turkish Stream Pipeline

A worker carries out a routine check at a natural gas control center in Turkey.(ADEM ALTAN/AFP/Getty Images) Summary Russian energy company Gazprom has made it clear that it intends to move forward with the construction of the Turkish Stream natural gas pipeline as quickly as possible, whether or not the project can overcome political obstacles in Europe. Earlier in May, Gazprom notified a subsidiary of Italian energy firm Saipem that it could begin laying pipes for the planned 63 billion-cubic-meter pipeline in the Black Sea and also resumed a contract with Germany’s Europipe for 150,000 metric tons of pipe for the project. Russia said it plans to start constructing the underwater portion of the pipeline in June. Gazprom has already told Europe that it plans to cease using its current export route through Ukraine in 2019 and shift those natural gas supplies to the Turkish Stream pipeline. But the […]

Posted On : Published By : Tom Whipple
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China data: Apr crude imports from Mideast rise to record 4 million b/d

China’s April imports of crude oil from Middle East suppliers rose 10% year on year to a record high of 16.61 million mt or 4.06 million b/d, led by Saudi Arabian supply, according to detailed data released Saturday by the General Administration of Customs. The country’s monthly crude imports from the Middle East were last higher in April 2014 at 3.69 million b/d. Crude imports from OPEC producers also hit a record high in April of 4.54 million b/d, up 8% year on year. China’s overall April crude imports rose 8.6% year on year to 7.4 million b/d, preliminary customs data showed earlier this month. It was the first time for China to surpass the US as the world’s biggest importer of crude oil. Russia moved up to China’s second-largest supplier in April, with deliveries up 26.4% year on year to 770,447 b/d. Iran rose to third place with […]

Posted On : Published By : Tom Whipple
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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
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Oil Trades Sideways as Markets Weigh Demand, Supply Metrics

By Eric Yep Crude-oil futures traded sideways in early Asian trade Monday as investors weighed signals of global oil demand growth and U.S. oil supply, and amid caution ahead OPEC’s next meeting in early-June. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $59.86 a barrel at 0252 GMT, up $0.14 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange rose $0.05 to $65.42 a barrel. U.S. oil prices lost 1.4% last week, snapping a three week winning streak and ending the week below the $60 mark. Brent crude in London lost 2.2% last week and has been down for two of the past three weeks. The number of oil rigs in the U.S. fell by only one last week, according to data from oil services company Baker Hughes, raising concerns that U.S. shale production could rebound quickly […]

Posted On : Published By : Tom Whipple
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World Exports versus Consumption, The ELM

The EIA has updated their International Energy Statistics  with annual production numbers through 2014 and export data through 2012. Sometimes these stats can be confusing as they include several types of production and exports. But for production I use only “Crude plus Condensate” and for exports I used “Crude Oil Exports” which I assume includes condensate as well. Also the export data is not exact, just close, because some importers are also exporters. For instance in 2001 the US exported 59,000 barrels per day. In 2012 the US exported 629,000 barrels per day. The exporting of condensate is allowed in the US and since the Shale boom condensate exports have increased quite dramatically because Light Tight Oil is rather top heavy with condensate. To get exports versus consumption for exporting nations I simply subtracted their exports from their production. The difference was what they consumed. Similar data can be […]

Posted On : Published By : ASPO-USA