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Car-bombings Shatter Relative Lull in Baghdad

A shop damaged by a bomb blast in Baghdad’s Karrada area on Saturday night. ENLARGE Photo: ahmad al-rubaye/Agence France-Presse/Getty Images BAGHDAD—A surge in car bombings renewed security concerns in the Iraqi capital on Sunday, after Islamic State claimed seven attacks in the past week. The bombers struck locations across Baghdad, including an open-air market Saturday night in the commercial district of Karrada, where some people had gathered to distribute sweets for a Shiite holy celebration. At least 20 people were killed and 79 were injured in the string of bombings, according to a security official. Eleven died in Saturday night’s attack alone. Car-bombings, which were a hallmark of life in Baghdad nearly a decade ago when Islamic State’s predecessor, al Qaeda in Iraq, was ascendant, had become more sporadic in recent years, even as Islamic State took power in parts of the country. Intensified fighting last week in Ramadi, […]

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Iran Nuclear Talks Open a Tangled Path to Ending Syria’s War

Photo Staffan de Mistura, left, the United Nations envoy for Syria, meeting in Damascus in February with the Syrian deputy foreign minister, Faisal Mekdad, in an effort to halt fighting in Aleppo. Credit Louai Beshara/Agence France-Presse — Getty Images UNITED NATIONS — Wearing pinstripes and a pince-nez, Staffan de Mistura, the United Nations envoy for Syria , arrived at the Security Council one Tuesday afternoon in February and announced that President Bashar al-Assad had agreed to halt airstrikes over Aleppo. Would the rebels, Mr. de Mistura suggested, agree to halt their shelling? What he did not announce, but everyone knew by then, was that the Assad government had begun a military offensive to encircle opposition-held enclaves in Aleppo and that fierce fighting was underway. It would take only a few days for rebel leaders, having pushed back Syrian government forces, to outright reject Mr. de Mistura’s proposed freeze in […]

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Energy Secretary Moniz emerges as Obama’s secret weapon in Iran talks

The energy secretary’s job title has always been a bit of a misnomer. Nearly two-thirds of the department’s budget has nothing to do with energy. Instead, it is devoted to taking care of the nation’s nuclear weapons stockpile — and cleaning up radioactive waste from old weapons development sites. That nuclear expertise has catapulted Energy Secretary Ernest Moniz, a physicist from MIT, from a Cabinet backwater to center stage in the negotiations over Iran’s nuclear program. An unlikely breakout star, Moniz sports a long wavy mop of mostly white hair that has been compared to George Washington’s locks. The energy secretary is providing a knowledgable voice that the Obama administration hopes can reassure nervous members of Congress as they weigh the deal. Moniz is someone who “can take complex issues and make the lay person understand them,” said Carol Browner, who was the top White House adviser on energy […]

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Yemeni Fighters Trained in Persian Gulf Are Said to Join Saudi-Led Mission

MUKALLA, Yemen — Yemeni fighters who are believed to have received training and weapons in the Persian Gulf entered combat around the southern city of Aden on Sunday, joining with militiamen who are battling Houthi rebels, according to local militia fighters in Aden.   The new troops arrived by sea in the last few days, they said. They all appeared to be Yemenis from the south who had trained in Saudi Arabia and possibly other Persian Gulf states, according to a senior local commander, a fighter and an allied resident, who spoke on the condition of anonymity to discuss troop actions. Their claims could not be independently verified. If confirmed, the influx would represent one of the first major deployments of ground troops trained by the Saudi-led coalition, and would shift the makeup of a military operation that has largely relied on airstrikes through its first weeks. The reinforcements, […]

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Saudi Arabia Tapping Wealth Fund to Maintain Low Oil Prices

The low prices for crude are costing Saudi Arabia some serious cash. The Saudi central bank reported last week that its net foreign assets fell 4.7% year-over-year in March to about $691 billion, their lowest level since July 2013. The Saudis nicked their savings account to the tune of $36 billion in the last two months as the country’s new king has had to increase both withdrawals and borrowing to meet the kingdom’s public-sector salaries and large development projects according to a report in the Financial Times. One analyst firm has said that crude oil output from OPEC countries in April rose by 125,000 barrels a day month-over-month to 30.9 million barrels a day, with most of the increase due to higher Saudi production. OPEC production averaged 1.2 million barrels a day more year-over-year compared with the two-month March-April period in 2014. And that level of production is not […]

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Oil slump tempers Bakken drillers’ worries over new rail rules

NEW YORK (Reuters) – In the first part of 2014, U.S. shale drillers watched with growing alarm as rail regulators contemplated tough new oil-by-rail rules, fearing rapid changes might slow shipments from North Dakota’s Bakken fields and force them to curtail production due to a lack of new pipelines. What a difference a year makes. Now, with beat-down oil prices slamming the brakes on the shale industry’s breakneck growth, even tough new rules on phasing out older oil-tank cars and speed restrictions announced Friday are unlikely to thwart new production, experts say. The deceleration of growth in the shale plays has taken the pressure off rail operators to make up for a shortfall in pipeline capacity, particularly from North Dakota’s Bakken region, which relies on trains to ship as much as 60 percent of its output, according to state figures. "Oil producers have more to worry about than new […]

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California Crops raised with oil field water

Here in California’s thirsty farm belt, where pumpjacks nod amid neat rows of crops, it’s a proposition that seems to make sense: using treated oil field wastewater to irrigate crops. Oil giant Chevron recycles 21 million gallons of that water each day and sells it to farmers who use it on about 45,000 acres of crops, about 10% of Kern County’s farmland. State and local officials praise the 2-decade-old program as a national model for coping with the region’s water shortages. As California’s four-year drought lingers and authorities scramble to conserve every drop, agricultural officials have said that more companies are seeking permits to begin similar programs. The heightened interest in recycling oil field wastewater has raised concern over the adequacy of safety measures in place to prevent contamination from toxic oil production chemicals. Recycling oil field wastewater Until now, government authorities have only required limited testing of recycled […]

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Greece cites progress in talks with EU/IMF lenders, aims for May deal

ATHENS (Reuters) – Negotiations between Greece and its international lenders over reforms to unlock remaining bailout aid have made headway and an agreement could be closer this month, a government official said on Sunday. Prime Minister Alexis Tsipras’s three-month-old government is under growing pressure at home and abroad to reach an agreement with European and IMF lenders over reforms to avert a national bankruptcy. Talks have been painfully slow as the leftist-led government is resisting cuts in pensions and labour reforms that would clash with its campaign pledges to end austerity. "There were very important steps made at the Brussels Group (talks) which bring an agreement nearer," the official said, declining to be named. "All sides aim for an agreement at a Brussels Group level within May." The talks between technical teams from Athens and EU/IMF/ECB lenders are expected to resume on Monday, the official said after the country’s […]

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Exclusive: European Union sees supplies of natural gas from Turkmenistan by 2019

ASHGABAT (Reuters) – The European Union, keen to lessen its dependence on Russia for energy supplies, expects to start receiving natural gas from Turkmenistan by 2019, European Commission Vice President Maros Sefcovic said in an interview. Russia currently supplies around a third of Europe’s gas needs, but Moscow’s annexation of Crimea and its involvement in the military conflict in eastern Ukraine has added urgency to the EU’s search for gas from alternative sources. "We have good mutual understanding. For Turkmenistan it is very important to diversify its export options, while for the EU it is very important to diversify its imports," Sefcovic told Reuters in the Turkmen capital Ashgabat. "Europe expects supplies of Turkmen gas to begin by 2019," he said, speaking in Russian. Turkmenistan, a Central Asian nation with the world’s fourth-largest reserves of natural gas, is keen to diversify exports of the fuel away from Russia which […]

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The Great Oil Game: Resource Crisis in Russia?

Weekly pageviews of “Resource Crisis.” My blog seems to be having a remarkable success in Russia, but do the Russians understand the problem of resource depletion? Complex structures, such as states and empires, are always prone to collapse and they usually give little or no previous warnings. The collapse of the Soviet Union, indeed, had not been predicted by anyone and it came completely unexpected. In the present crisis, instead, Western analysts seem to have fallen in the opposite mistake, predicting the rapid demise of the Russian Federation. But that didn’t happen. On the contrary, the Russian economic system showed a remarkable resilience and it strongly rebounded after a bad moment, last year. (image below from Bloomberg). So, predicting collapses is always very difficult in a world’s situation that looks more and more like a Russian Roulette (an appropriate name in this context), but played with nuclear weapons. It […]

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Oil off 2015 highs on Iraq export record, strong dollar

NEW YORK (Reuters) – Oil prices eased off 2015 highs on Friday after Iraq said its crude oil exports hit a record in April, and on pressure from a stronger dollar. Both Brent and U.S. crude settled well above intraday lows, supported by data showing another slip in drilling rig activity and news of a shut gasoline-making unit in Venezuela. Venezuela’s 645,000 barrel-per-day (bpd) Amuay refinery has halted its catalytic cracking unit for maintenance, helping U.S. RBOB gasoline RBc1 and ultra-low sulfur diesel (ULSD) HOc1 futures post higher settlements on the first day of trading with June contracts in front-month position. June Brent LCOc1 crude fell 32 cents to settle at $66.46 a barrel, after falling to $65.52 and having earlier matched Thursday’s 2015 peak of $66.93. Brent jumped 21 percent in April. U.S. June crude CLc1 fell 48 cents to settle at $59.15, after hitting a 2015 high […]

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Oil markets start May on down note

Some sector activity data indicate a recovery may be on the horizon for a weakened crude oil market, though prices still suppressed. Photo by David Gaylor/Shutterstock NEW YORK, May 1 (UPI) — Mixed activity reports in the exploration and production sector helped push crude oil prices lower in a light trading day that started the month of May. North Dakota, a state at the heart of the U.S. oil boom, reported a modest increase in rig activity for the week, adding two to its state-wide count. On the whole, however, the North American rig count, a key barometer of the health of the exploration and production side of the energy sector, is depressed. Baker Hughes reports the number of rigs in service in the United States and Canada fell by a total of 23, or 2.2 percent, between April 17 and April 24. Year-on-year, the North American rig count […]

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Oil Slips After Strong April Rally

By Nicole Friedman Oil prices retreated from 2015 highs Friday as the dollar strengthened and traders assessed the still oversupplied global crude market. Light, sweet crude for June delivery settled down 48 cents, or 0.8%, at $59.15 a barrel on the New York Mercantile Exchange. Prices rose 3.5% on the week. Brent crude, the global benchmark, fell 32 cents, or 0.5%, to $66.46 a barrel on ICE Futures Europe. The contract gained 1.8% this week. The dollar rose against other major currencies Friday on positive U.S. economic data. Oil is priced in dollars, so a stronger dollar makes oil less affordable to buyers using foreign currencies. Oil prices have surged in recent weeks after falling to six-year lows in March as traders bet that the global glut of crude would soon shrink due to stronger demand and reduced spending on new production. But some analysts caution that the rally […]

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Gas prices mirror crude oil’s rise

Consumers watching retail gasoline prices rise along with crude oil, though price at the pump is still far lower than last year, AAA says. File Photo by UPI/Gary C. Caskey. WASHINGTON, May 1 (UPI) — The national average price for a gallon of gas in the United States, mirroring crude oil prices, has risen at the fastest seasonal rate since 2012, AAA said. AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.60 for Friday, the first day of May. That’s up two cents, or three quarters of a percent, from Thursday and 57 cents, or 28 percent, higher than in late January. AAA spokesman Avery Ash said that, while it’s normal for gasoline prices to climb as summer approaches, the rate of increase is faster than in the past. The national average price for Friday is the highest since Dec. 12 and […]

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Natural Gas Hits Five-Week High

By Nicole Friedman NEW YORK–Natural-gas prices extended their gains to a new five-week high on Friday as traders who had bet on lower prices closed out those wagers. Natural gas for June delivery settled up 2.5 cents, or 0.9%, to $2.776 a million British thermal units on the New York Mercantile Exchange, the highest settlement since March 24. Prices rose 8.1% for the week. The rally began Tuesday but picked up steam on Thursday after U.S. government data showed that stockpiles grew less than expected last week. Robust production had kept prices subdued in recent months, especially as warmer weather reduced demand for gas-powered indoor heating. But the smaller-than-expected addition to stockpiles "spooked some traders who were expecting massive injections due to oversupply during the month of May," said Aaron Calder, an analyst at Gelber & Associates, in a note. "Traders saw the cracks in the wall of production […]

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Oil Turnaround Punishes Investors — Energy Journal

Here’s your morning jolt of news, insight and analysis on the global energy business. Send us tips, suggestions and complaints : [email protected] Sign up for this newsletter : http://on.wsj.com/EnergyJournalSignup A view of a Chevron refinery on March 3, 2015 in Richmond, California. U.S. gas prices have surged in the last month, which has been bad news for some investors. Justin Sullivan/Getty Images OIL PRICE WAS CATALYST FOR REVERSALS Investors in financial markets who had bet oil prices would keep falling and the U.S. dollar would keep climbing saw their trades backfire in April, Tommy Stubbington and Christian Berthelsen report. The U.S. benchmark crude oil price ended up soaring 25% after falling 11% in the first three months of the year. Quick cutbacks by U.S. shale-oil producers and a slowdown in U.S. growth were a couple of the surprise factors behind the turnabout across stock, bond, currency and commodity markets. […]

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Forward oil prices anchor around $75: Kemp

LONDON (Reuters) – Market participants expect the price of Brent to average around $75 per barrel through the rest of the decade, not much above the current level. Spot Brent prices have risen around $20 per barrel from their mid-January low, from $46 to $66, an increase of more than 40 percent. Over the same period, however, futures prices for oil delivered at the end of 2017 have increased just $4.50 per barrel and remain semi-fixed a little over $70. As spot prices have risen, the slope of the forward curve has become flatter, ensuring prices for 2017 and beyond are almost unchanged ( link.reuters.com/jyr64w ). Analysts tend to cite the curve selectively, quoting it when it coincides with their own view and ignoring it when the curve is at variance with their forecasts. In any case, the forward curve is a notoriously poor predictor. Back in June 2014, […]

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Little chance Big Oil’s refining boom will last for long

LONDON (Reuters) – The world’s top oil companies can expect only limited solace from refining for the rest of the year, even as the often-troubled segment proved valuable in the face of sinking oil prices. Overcapacity in the sector previously made it the bane of integrated oil majors such as BP, Royal Dutch Shell, Exxon Mobil, Chevron, Total and Eni. But the situation was reversed by weak crude prices, so that combined profits for the oil majors from refining and trading represented 60 percent of total earnings in the first quarter of 2015, compared with 18 percent last year, according to Reuters calculations. In contrast, companies without refining divisions felt the brunt of the oil price collapse, with Norway’s Statoil for instance swinging to surprise net loss. Refining and trading is now expected to cushion companies’ results in the second quarter, albeit less so after oil prices gained more […]

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Car bombs kill 21 people in Iraq; EU warns of donor fatigue

Mideast Iraq Islamic State BAGHDAD (AP) — The head of the European Union’s humanitarian aid department warned on Thursday that the situation in Iraq is deteriorating rapidly while the world is preoccupied with crises elsewhere. Shortly after Jean-Louis de Brouwer sounded the stark warning, a wave of car bombs targeting public places after nightfall in Baghdad and in a town just south of the Iraqi capital killed a total of 21 people and wounded scores of others. No group immediately claimed responsibility for the attacks but Baghdad and its surroundings have seen near-daily bombings, mostly targeting the country’s majority Shiites or security forces even as authorities struggle to win back territory captured by the Islamic State group. Earlier in the day, De Brouwer told The Associated Press that the number of displaced people in Iraq has quadrupled in the last year and shows no signs of decreasing. "The worst […]

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Strait of Hormuz Once Again at Center of U.S.-Iran Strife

The Strait of Hormuz , the slender waterway that connects the Persian Gulf to the rest of the world and is a critical conduit in the global oil supply chain, has again become a point of contention for Iran and the United States — just as they are trying to reach a nuclear accord. Responding to Iran ’s seizure at gunpoint of a cargo ship that was traversing the strait this week, the United States Navy on Thursday began deploying about a dozen warships there to protect American vessels from possible seizure or harassment. The seized vessel was owned by the Danish company Maersk and registered in the Marshall Islands. The American decision was seen as a signal to Iran, which historically has regarded the strait, an international waterway, as part of its sphere of influence. Iranian and United States forces battled in the strait 27 years ago. More […]

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Yemen crisis: Saudi Arabia ‘repels Houthi border attack’

Houthi rebels launched an assault on border posts in Najran, Saudi officials say Yemen unrest Three Saudi troops and "dozens" of Houthi rebels were killed as Saudi forces repelled a major attack from inside Yemen, Saudi officials say. The rebels attacked near the town of Najran, reports say, in what would be their biggest assault on Saudi soil since a Saudi military campaign began. A Saudi-led coalition has staged air strikes against rebels since late March in support of Yemen’s exiled president. Meanwhile aid groups say a lack of fuel is threatening their operations there. Interactive video: Why my country is in a mess A statement by the Saudi Press Agency, SPA, said the overnight attack happened on its southern border. Identifying the attackers as Shia Houthi rebels and groups allied to them, SPA said Saudi ground troops exchanged fire with them and called in air strikes. The rebels […]

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Central Tunisia discovery yields 4,300 b/d

The Chouchet El Atrous-1 (Cat-1) well, drilled by Mazarine Energy Tunisia BV in the Zaafrane permit in central Tunisia, has discovered two net oil-bearing reservoirs with combined 38-m net pay. Primary objectives of the Cat-1 were to test the Ordovician El Hamra and El Atchane formations. Each zone has confirmed 19-m net pay. On test, the Cat-1 flowed 4,300 bo/d and 395,000 cu m/day of natural gas. The Cat-1 is the first of a two-well campaign, the company said. Compagnie Tunisienne de Forage drilled the Cat-1 well, which reached a total depth of 3,950 m. The DGH-1 well will follow. The Zaafrane permit spans an area of 5,168 sq km in central Tunisia. Mazarine Energy is the operator of the permit, with state-owned Enterprise Tunisienne d’Activites Petrolieres (ETAP) and Medex Petroleum (Tunisia) Ltd. as partners.

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Saudi Aramco Names Amin H. Nasser as Acting President, CEO

ENLARGE Amin H. Nasser, center, listens to Martin Craighead, right, president and CEO of Baker Hughes, during a CERAWEEK energy conference panel discussion in 2012. His appointment comes after Saudi Arabia’s King Salman bin Abdulaziz reshuffled his ministers earlier in the week. Photo: Reuters LONDON—Saudi Arabia’s state-owned oil company named a new chief executive following a shake-up of the country’s ministerial elite this week. Amin H. Nasser on Friday was promoted to acting president and CEO of Saudi Arabian Oil Co., known as Saudi Aramco. He was previously Aramco’s senior vice president for upstream operations. The appointment follows a government reshuffle by King Salman bin Abdulaziz Wednesday that saw former Aramco CEO Khalid al-Falih appointed health minister and made chairman of the oil company. Mr. Nasser has spent more than 20 years at the national oil giant, working in various roles throughout the organization, though has stayed largely behind […]

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Riyadh reshuffle reaches Saudi Aramco

Restructuring of political landscape in Saudi Arabia reaches oil market with new plan for Saudi Aramco. Photo by sakhorn/Shutterstock RIYADH, Saudi Arabia, May 1 (UPI) — The government in Riyadh sanctioned a restructuring plan that would break oil company Saudi Aramco off from the nation’s oil ministry, sources said Friday. Citing undisclosed sources, Saudi-owned pan-Arab news channel al-Arabiya reported the country’s Supreme Economic Council approved a restructuring plan offered by Deputy Crown Prince Mohammad bin Salman. The crown prince was appointed as defense minister earlier this week amid a government shake-up. Saudi Aramco Chief Executive Khaled al-Falih was named chairman of the company and health minister, the news channel reported. Saudi Aramco said in a Wednesday briefing of its annual spring meeting the board of directors "focused on deeper re-examination of the framework and investment profile in light of what happened in the crude markets over the past nine […]

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Saudi Arabia to restructure Aramco, separate it from oil ministry: Arabiya TV

DUBAI (Reuters) – Saudi Arabia’s Supreme Economic Council has approved a restructuring of state oil company Saudi Aramco [SDABO.UL] that includes separating it from the oil ministry, Al Arabiya television channel reported on Friday, citing sources. There are no indications that the move will lead to changes in the fundamental way the world’s top crude exporter makes its oil decisions. "Saudi Supreme Economic Council agrees on Deputy Crown Prince Mohammed bin Salman’s vision of restructuring oil-giant Aramco," Arabiya reported on its Twitter account. "Restructuring of Saudi Aramco includes separation from petroleum ministry," the channel said. The Supreme Economic Council is a new body formed by King Salman earlier this year to replace the Supreme Petroleum Council, which used to help set the kingdom’s oil policy. The new council is headed by the king’s son Prince Mohammed, a move seen by analysts as laying the ground for a generational shift […]

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Uganda: Refinery Will Take Five Years to Complete

Repairs to the railway network operated by RVR in Kenya and Tanzania. Transport infrastructure remains a challenge as Uganda readies itself for oil production. Uganda’s planned crude oil refinery will take five years to complete, a representative of the firm that won the bid to build the multi-billion 60,000 barrels per day facility has revealed. Andrey Kozenyashev, the Regional Representative of RT Global Resources in East Africa told an industry meeting convened by the Uganda Chamber of Mines and Petroleum in Kampala yesterday that the company anticipates to complete the project in 2020 at the earliest. "After signing the agreement, it will take one and a half years to do the designs and then three years for construction of the facility," Kozenyashev said. The RT-Global Resources-led consortium beat off a challenge from another consortium led by South Korea’s SK Group to win the $2.5 billion project that will involve […]

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Nigeria: Fuel Crisis – Marketers Deny Receiving Payment From Govt, Say Strike Continues

Despite the claim by the Federal Government that N156 billion was released on Thursday to oil marketers to facilitate the quick resolution of the current fuel crisis, the National Association of Road Transport Owners (NARTO), has said normal lifting of fuel will not resume till their members’ accounts are duly credited by the banks. As at 4.35 p.m. on Thursday, the Executive Secretary, Depot & Petroleum Products Marketers Association(DAPPMA), Odufemi Adewole, told PREMIUM TIMES in a telephone interview that none of its members and their counterparts in the Major Oil Marketers Association(MOMAN), had confirmed receiving any payment. "The money government said it was paying to marketers has not yet hit our accounts. So, there is little we can do about the situation," Mr, Adewole said. "The money the Minister of Finance promised to pay us last February did not get into our hands till about four or five weeks […]

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China manufacturing business activity expands modestly in April

BEIJING, May 1 (Xinhua) — Chinese manufacturing activity continued to improve in April, with an important index remaining in expansion territory, official data showed on Friday. The manufacturing purchasing managers’ index (PMI), a key measure of factory activity in China, posted at 50.1 in April, unchanged from the March reading but up from 49.9 in February, according to the data released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). A reading above 50 indicates expansion, while a reading below 50 represents contraction. The NBS manufacturing PMI samples 3,000 enterprises of various sizes nationwide. Zhao Qinghe, a senior analyst with the NBS, said China’s manufacturing PMIs in the last three months lingered around the expansion/contraction threshold, but some PMI sub-indices in April showed encouraging signs. The production sub-index posted at 52.6, the highest monthly reading since November last year, he said. The […]

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U.S., Canada toughen oil-train safety standards

WASHINGTON/NEW YORK (Reuters) – The United States and Canada on Friday announced long-awaited safety rules for trains carrying oil, as regulators seek to reduce risks after a series of explosive accidents that accompanied a surge in crude-by-rail shipments. The rules call for a rapid phase out of older tank cars considered unsafe during derailments, and are more aggressive than even some of the toughest proposals yet put forward. The rail and energy sectors have already expressed concern that the required speed of the phase outs is not feasible and the potentially billions of dollars in costs will be too high for the small safety improvements they deliver. Shares of railroad car and equipment manufacturers rose after the announcement. Under the rules, announced by Canada’s Minister of Transport, Lisa Raitt and U.S. Transportation Secretary Anthony Foxx, tank cars built before October 2011 known as DOT-111 will be phased out within […]

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North Dakota still on track for oil tax break

WILLISTON, N.D. (Reuters) – The clock kept ticking in April on a suspension of North Dakota’s oil extraction tax after a state-calculated average of the month’s crude price fell below $52.59 per barrel for a fourth straight month. The tax break, enacted in the 1980s, had the potential to be worth more than $5 billion to oil producers over a two-year period. However, sweeping tax changes signed into law late Wednesday by Governor Jack Dalrymple effectively ended that boon for the oil industry, though the new law also lowered the overall permanent tax rate. The tax break would be triggered if crude fell below $52.29 for fifth straight month, but it would only continue through November because of new legislation. The state waives its 6.5 percent oil extraction tax if the monthly price of benchmark West Texas Intermediate (WTI) crude at the Cushing, Oklahoma, transport hub falls below an […]

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Texas oil pipeline network to expand

New pipeline infrastructure planned for Texas by midstream company Enterprise Products Partners. File Photo by UPI/Shutterstock/Kodda. HOUSTON, May 1 (UPI) — Oil customers in the U.S. market will have links to most Texas refineries and ports once a string of new pipelines come online, Enterprise Products said Friday. Midstream company Enterprise Products Partners announced it had the long-term agreements in place to support the development of a 416-mile pipeline to send crude oil and condensate, an ultra-light grade of oil found largely in U.S. shale deposits, from its terminal in Midland, Texas, to a storage facility in Sealy, west of Houston. The new pipeline would be able to carry as much as 540,000 barrels per day, largely from the Permian shale basin in Texas, and be in service by 2017 . From there, it would connect to the company’s so-called ECHO terminal and associated pipeline infrastructure, expected online by […]

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Bakken Rig Count Increases by One

Crude and Natural Gas Prices on the Rise The Bakken-Three Forks rig count increased this week to 80 rigs running across our coverage area by midday Friday. In recent Bakken news, North Dakota lawmakers cleared the way to change a 30 year old tax structure that gave some tax breaks for the oil industry have been linked to a price “trigger.”  Debate in North Dakota’s House was fierce and ended in a 66-26 vote in favor of cutting the state’s oil tax rate from 11.5 percent to 10 percent. Read more: Lower Oil Tax for North Dakota The U.S. rig count fell again this week by 27 ending, ending with 905 rigs running by midday Friday.  A total of 222 rigs were targeting natural gas (and decrease of three from the previous week) and 679 were targeting oil in the U.S. (24 less than the previous week). The remainder […]

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U.S. Tank-Car Rule to Require Electronic Train Brakes

ENLARGE U.S. transportation regulators issued tough new rules for railroads hauling crude oil and ethanol that will require trains be equipped with expensive new brake systems. Photo: Associated Press U.S. transportation regulators Friday issued tough new rules for railroads hauling crude oil and ethanol that will require trains be equipped with expensive new brake systems. The regulations also require that sturdier tank cars be built for hauling oil, ethanol and other flammable liquids and prescribes upgrades for an estimated 154,500 tank cars already carrying flammables. Trains carrying large amounts of crude oil will be restricted to 30 mile an hour speeds if they don’t have new electronic brakes installed by 2021. Other flammable liquids, including ethanol in high volumes would be speed-restricted after 2023. Trains with either a block of 20 or more cars or a total of 35 or more cars of flammable liquid will be required to […]

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Five Years After First Bailout, Greece Back on the Brink

Greece is once more on the brink of failing. Why now? What happens if it goes bankrupt? WSJ’s Jason Bellini has #TheShortAnswer. ATHENS—Five years into the biggest bailout of a debtor in history, Greece is closer to the brink than ever, with time running out to avert a bankruptcy that could destabilize not only the eurozone, but the global economy as well. When Europe and the International Monetary Fund first agreed to bail Greece out on May 2, 2010, the plan was to return Greece to growth and bond markets within three years. Instead, after half a decade and €245 billion ($274 billion) in promised loans, the two sides have reached an impasse. Although Greece has come close to financial meltdown before, the ideological divide has never been deeper. The government’s refusal to inflict on an exhausted society the further belt-tightening that creditors insist is needed has created a […]

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Chevron’s Results Beat Expectations

Employees work on a storage tank inside Chevron’s Richmond, Calif., refinery. ENLARGE Photo: David Paul Morris/Bloomberg News Chevron Corp. CVX -1.82 % said on Friday its first-quarter earnings dropped 43% amid slumping crude oil prices, though strength in its refining segment helped put the results above analysts’ estimates. Chevron, the second-biggest U.S. oil company in market value behind Exxon Mobil Corp. XOM 1.69 % , has been working to increase its oil-and-gas output. In the latest quarter, its daily oil-equivalent production rose to 2.68 million barrels from 2.59 million barrels a year earlier. On Thursday, Exxon also posted a sharp drop in profit while exceeding Wall Street expectations. Both energy companies have moved to trim spending as the collapse in oil prices wiped billions of dollars from their cash flow, and Chevron stopped buying back its shares. Chevron, which is based in San Ramon, Calif., said Friday it is […]

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U.S. Oil Rig Count Falls for 21st Straight Week

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 58% fewer rigs compared with a peak of 1,609 in October, and Friday’s report marks the 21st straight week of declines, boosting expectations U.S. crude-oil production is near a peak. Ahead of the release, energy-advisory firm Ritterbusch & Associates speculated a drop of fewer than 15 to 20 rigs could push oil prices lower, while a drop of more than 30 to 35 might have the opposite effect. U.S. oil prices hit 2015 highs recently on hopes production is finally showing signs of falling. U.S. crude-oil futures were recently down 1.9% at $58.50. According to Baker Hughes, gas rigs were down three to 222 this week. Offshore rig count was 34, unchanged from last week and down 20 from a year earlier. For all […]

Posted On : Published By : Tom Whipple
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U.S. Oil Rig Count Falls for 21st Straight Week

By Angela Chen The U.S. oil-rig count fell by 24 to 679 in the latest week, the lowest level since September 2010, according to Baker Hughes Inc. 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 58% fewer rigs compared with a peak of 1,609 in October, and Friday’s report marks the 21st straight week of declines, boosting expectations U.S. crude-oil production is near a peak. Ahead of the release, energy-advisory firm Ritterbusch & Associates speculated a drop of fewer than 15 to 20 rigs could push oil prices lower, while a drop of more than 30 to 35 might have the opposite effect. U.S. oil prices hit 2015 highs recently on hopes production is finally showing signs of falling. U.S. crude-oil futures were recently down 1.9% at $58.50. According to Baker Hughes, […]

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Canada Not Aligned With U.S. on New Oil Train Brake Requirement

May 1, 2015 1:53 p.m. ET By Paul Vieira OTTAWA–Canada refrained on Friday from immediately matching a new U.S. brake-system rule for trains carrying dangerous goods, saying more discussion with the domestic rail industry was required. The rule, which would require trains be equipped with an expensive electronic brake system by 2021, was unveiled in a joint announcement in Washington by Canadian Transport Minister Lisa Raitt and her U.S. counterpart, Secretary of Transportation Anthony Foxx. Ms. Raitt said she has asked government officials to work with Canadian industry "to determine a Canadian solution" that harmonizes with a final U.S. braking rule. The new rule, part of a set of regulations aimed at harmonizing tankcar standards for both countries, would require trains with 70 or more tankcars loaded with a flammable liquid to operate with an electronically controlled pneumatic braking system. This feature is costly, but is said to provide […]

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Alaska residents are paid a unique yearly dividend from state’s permanent fund

graph of Alaska permanent fund value and dividend, as explained in the article text The Alaska Permanent Fund, established using revenues paid to the state by oil and natural gas producers, provides Alaska residents with an annual cash dividend, which is unique among natural resource permanent funds in the United States . In 2014, the annual dividend was $1,884 per resident, more than double the 2013 dividend and the highest since 2008. All Alaska residents receive an annual cash dividend from the permanent fund. The fund was established by voters in 1976, as the extent of Alaska’s oil and natural gas resources began to emerge, and retains at least 25% of the royalties that oil and natural gas producers pay to produce on leased state lands. Those royalties have provided $800 million or more to the fund annually in recent years. The permanent fund is now worth more than […]

Posted On : Published By : Tom Whipple
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BHI: US rig count loses 27 units, down 1,015 units since Dec. 5

HOUSTON, May 1 OGJ Staff Writer The US drilling rig count fell 27 units—all on land—to 905 rigs working during the week ended May 1, according to data from Baker Hughes Inc. The count has now plunged 1,015 units over 21 weeks since the week ended Dec. 5 ( OGJ Online, Dec. 5, 2014 ). The total of 905 is the lowest since June 19, 2009, and 949 fewer units compared with this week a year ago. The rig count’s nadir during the 2008-09 downturn was 876 units on June 12, 2009. During the week, oil rigs fell 24 units to 679, down 848 year-over-year and 930 since a recent peak of 1,609 on Oct. 10. Gas rigs fell 3 units to 222. Rigs considered unclassified were unchanged at 4. Land rigs now total 868, down 918 year-over-year. Rigs engaged in horizontal drilling dropped another 21 units to 699. […]

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US coal stockpiles at 165.6 million st, up 29.2% from a year ago: Bentek

US coal stockpiles totaled an estimated 165.6 million st for the week ended April 30, up 1.6% from the prior week and 29.2% from a year ago, Platts unit Bentek Energy said Friday. Utility coal consumption totaled 13.4 million st as it increased 2% with gains in the MISO and ERCOT regions, Bentek said. While recent coal consumption has been increasing, consumption is still 7% off from the same period last year. Coal production gains outweighed the increased consumption totaling 17.9 million st for the week, an increase of 6% from the prior week, Bentek said. Coal production is still down 5% on a year-to-date basis. –Jeffrey McDonald, [email protected] –Edited by Richard Rubin, [email protected] Platts Coal Trader provides the latest prices for key benchmark coals, as well as: Daily pricing for tons and allowances for SO2 and NOx emissions The exclusive Platts OTC Broker Index, a market assessment compiled […]

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Senate Democrats offer bill to phase out older rail tank cars

WASHINGTON, DC, May 1 Legislation to accelerate the phase-out of older rail tank cars to reduce accidental crude oil spills has been introduced by Finance Committee Ranking Minority Member Ronald L. Wyden (D-Ore.) and six other US Senate Democrats. The bill, S. 1175 , also would impose a fee of $175/shipment on older tank cars and would make a tax credit available to railroads that upgrade newer cars to the highest required safety standard. “It’s time for the [US] Department of Transportation to push faster and more aggressively to make oil-by-rail transportation safer,” Wyden said on Apr. 30. “This legislation takes a market-based approach to get unsafe cars off the tracks and safer cars on the tracks more quickly.” The bill also would use the revenue raised by the fee to help communities and first responders be better prepared in the event of a rail accident. It would establish […]

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The EU may soon have Gazprom and Vladimir Putin running on fumes

Tags: Gazprom | natural gas | | Ukraine | vladimir putin Russian President Vladimir Putin chairs a meeting in Abakan, the Republic of Khakassia, April 21, 2015. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin For all of President Vladimir Putin’s rhetoric about Russian nationalism and economic self-reliance, he finds himself surprisingly constrained in his ability to respond to the European Commission’s action against Gazprom. The European Commission’s decision to bring antitrust charges against the Russian energy giant sparked an immediate complaint from Russian Foreign Minister Sergei Lavrov. He loudly protested that the European Union was changing the rules in midstream. The European Union, however, was trying to send a different message to Russia: institutions matter, and Gazprom does not get a free pass around its rules. The commission charged Gazprom with abusing its dominant market position and overcharging customers in several countries. As a state-owned firm with geo-strategic implications, Gazprom is no ordinary […]

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How Shale Is Becoming The Dot-Com Bubble Of The 21st Century

As I review the financials of one of the largest shale producers in the United States, Whiting Petroleum (WLL), I can’t help but notice the parallels to the .COM era of 1999 which, to some extent, has already returned to the technology and biotech sectors of today . Back then, the faster you burned cash to capture customers regardless of earnings to drive your topline, the higher your valuation. The theory was that after capturing the customers (in energy today, it is the wells) spending would slow and so would customer additions allowing companies to generate cash. By the way, a classic recent case is none other than Netflix (NFLX) which, in the past was exposed for accounting gimmicks that continue even today. It is still following this path of burning cash for the sake of customer additions, while never generating any cash in its entire existence. Cash was […]

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Peak Oil: One-Track Minds

One could argue that the most dangerous push in our energy/environment discussion is that which seeks to stop/limit oil production and/or divest from oil companies. That’s because our primary fuel has nowhere near a significant substitute. As such, publicly-traded oil companies are the lone bastion between us and a complete reliance on OPEC. [1] Well … sure, I guess one could argue that … “Big Oil: Leaping Tall Buildings … for Truth, Justice, and the American Way….” One could also argue this: given that oil is a finite resource becoming increasingly more challenging and expensive to locate and produce—among other inconvenient truths—perhaps we might urge industry and elected leaders to … you know … think about the future in terms other than “let’s maximize oil revenues and our bank accounts today.” Pursuing the one-track approach to our energy supply today and tomorrow has its advantages, at least for some. […]

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Kjell Aleklett Update: Peak Oil 2015-2016

What happened to peak oil? Here an older 2012 video from Swedish peak oil luminary and ASPO chairman Kjell Aleklett . At the time, when we started this blog, we were entirely in the Richard Heinberg mode of thinking, summarized as: ‘ industrial society is going to be hit very soon by a truck, that few see coming and industrial society is doomed, because the world is running out of oil quickly. ‘ We no longer think that is the case. That doesn’t mean that peak oil is not going to happen, but it is at least a little postponed and there is fossil fuel life after peak oil. On the fossil fuel supply front, we are much more optimistic than we were three years ago. Meanwhile we think that it is very well possible to have a sustainable light-weight industrial society for 100% based on renewable energy, to […]

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Oil Prices Post Biggest Monthly Gain Since 2009

Oilfield equipment in North Dakota can be seen in this January file photo. ENLARGE Photo: Associated Press Oil prices rose to a new 2015 high Thursday, capping their best-performing month in years, as traders bet that U.S. crude-oil supplies are near a peak. Light, sweet crude for June delivery settled up $1.05, or 1.8%, at $59.63 a barrel on the New York Mercantile Exchange, the highest settlement since Dec. 11. Prices rose 25% for the month, the largest monthly percentage gain since May 2009. Brent crude, the global benchmark, rose 94 cents, or 1.4%, to $66.78 a barrel on the ICE Futures Europe exchange, the highest level since Dec. 9. Prices rose 21% this month. Both benchmarks remain more than 40% below their June 2014 peaks. U.S. oil stockpiles rose by 1.9 million barrels last week to 490.1 million barrels, the U.S. Energy Information Administration said Wednesday. The increase […]

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Macroeconomics lifts crude oil prices

U.S. Labor Department data show improvements gaining traction, pushing oil prices up on the last trading day in April. File photo by Debbie Hill/UPI NEW YORK, April 30 (UPI) — Stable personal income and spending in the United States, coupled with lower unemployment, helped lift crude oil prices on the last trading day of April. The U.S. Commerce Department said Thursday personal income increased less than 0.1 percent from last month as did spending. From the Labor Department, meanwhile, comes word initial claims for unemployment for the week ending April 25 fell 34,000 to 262,000. Unemployment figures are at their lowest level in 15 years . Data suggest a slow but steady improvement in the U.S. economy, though demand may be tempered moving forward. West Texas Intermediate, the U.S. oil standard, increased nonetheless in early Thursday trading, gaining 1 percent from the previous session to $59.16. WTI for April […]

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Oil prices to stay weak for at least a year: Reuters poll

(Reuters) – Oil is likely to stay relatively weak for at least the next year, a Reuters poll forecast on Thursday, suggesting a slowdown in oil production in the United States will not be enough to offset a global supply glut. Reuters monthly survey of 32 analysts predicted North Sea Brent crude would average $60 a barrel in 2015, up 80 cents from the projection in last month’s survey. The North Sea crude oil benchmark has averaged around $56 a barrel so far this year.     Brent prices collapsed to a low just above $45 in January from a high above $115 a barrel, and have recovered gradually over the last three months to trade close to $66 by Wednesday’s close. The price crash has forced some exploration companies to stop drilling for oil and the number of rigs operating in the United States has fallen for 20 weeks […]

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NYMEX June gas futures jump 14.5 cents to $2.751/MMBtu settle

The NYMEX June natural gas futures contract settled 14.5 cents higher at $2.751/MMBtu Thursday as the market reacted to a government report showing a smaller-than-expected storage injection for the week ended April 24. US natural gas in storage rose 81 Bcf to 1.71 Tcf for the week ended April 24, the US Energy Information Administration said Thursday, below Platts’ consensus expectations of an injection of between 84 Bcf and 88 Bcf. "People got caught by surprise," said Derek Salvino, vice president of research at Tradition Energy. "When I saw the [EIA storage] number myself, I did a double take." However, Thursday’s rally does nothing to change the natural gas market’s bearish near-term fundamentals, Salvino said. "I don’t think it changes the fundamentals of injection season," he said. "We’re going to see big healthy injections." Article continues below… By the end of injection season this year, total storage stocks could […]

Posted On : Published By : Tom Whipple