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Alberta fires threaten oil installations

More than 30 new blazes erupt in Alberta as energy companies report key installations under threat. File photo Heinz Ruckemann/UPI CALGARY, Alberta, May 28 (UPI) — Wildfires are moving closer to key oil installations in Alberta province as the government reports nearly three dozen new outbreaks in the last 24 hours. The provincial government in Alberta enacted an open-fire ban amid a persistent threat of wildfires. The government expects hot, dry conditions to continue at least through the end of the week . "In the last 24 hours there have been 33 new wildfires," the provincial government said in its latest update. "The wildfire outlook in Alberta continues to be severe." Since April 1, more than 600 wildfires have been reported , charring more than 32,000 acres of land. As of late Wednesday, there were 63 active wildfires in the province and 13 are out of control. Canadian energy […]

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Texas oil production falls

Texas oil production falters, though latest rig numbers show sector may be leveling off. File photo by Gary C. Caskey/UPI AUSTIN, Texas, May 28 (UPI) — Total crude oil production in Texas in March dropped by close to 2 percent from the previous month, data from the state energy regulator show. The Railroad Commission of Texas, the state’s energy regulator said preliminary data from March show crude oil production averaged 2.31 million barrels per day, down from the 2.34 million bpd reported in February. A depressed crude oil market leaves energy companies with less money to invest in exploration and production. The market may be leveling off, however, as oil services company Baker Hughes reported the 373 active rigs in service in Texas for the week ending May 22 was unchanged from the previous week. The industry is nevertheless sagging. The Texas commission said it issued a total 848 […]

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U.S. labor numbers drag on oil

U.S. Labor Department reports uptick in weekly unemployment claims, sending crude oil prices into negative territory. File photo by Brian Kersey/UPI NEW YORK, May 28 (UPI) — A poor showing for the U.S. labor market sent oil prices lower in early Thursday trading, with key indices off about a half percent from the previous session. The U.S. Labor Department reported seasonally adjusted claims for unemployment at 282,000 for the week ending May 23, an increase of 7,000 from the previous week. The four-week moving average rose by 5,000 and, for the week ending May 16, the insured unemployment rate of 1.7 percent represented a 0.1 percent increase from the previous week. Weak overall demand in a market with a surplus of oil pushed crude oil markets into bearish territory, dropping below the $50 per barrel mark at times in early 2015. Markets have since recovered somewhat, though economic growth […]

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Huge drop in West Virginia coal production forecast

CHARLESTON, W.Va. (AP) — West Virginia University researchers predict that state coal production will drop 39 percent compared with the industry’s last high point in 2008 – less-than-encouraging news for more than 1,800 coal miners who learned last week they would likely lose their jobs. Already-struggling southern coalfield counties would bear the brunt of the industry’s downturn, with an expected 29 percent production drop in 2035, compared to 2014. The dwindling coal industry has ravaged that region with job losses, and has even necessitated cuts to government services. The report rattles off a combination of familiar economic, geological and regulatory challenges: weak export demand; less use of coal for electricity amid competition from natural gas; changes in emissions rules for power plants; and worsening geological conditions that make extracting southern West Virginia coal less productive. The dismal projections don’t even account for a federal proposal to stem carbon emissions […]

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BP Drops Fight Over $750 Million Deepwater Horizon Insurance

Boats battle the fire on the Deepwater Horizon rig on April 21, 2010. Source: U.S. Coast Guard via Getty Images BP Plc won’t seek to access Transocean Ltd.’s $750 million insurance policy for the Deepwater Horizon rig, which exploded while drilling a BP well in 2010, sparking the worst offshore spill in U.S. history. London-based BP notified the Texas Supreme Court on Wednesday that the two companies resolved all differences over the drilling accident and spill in a confidential settlement reached May 20. BP withdrew its request for the state high court to reconsider its February decision that BP wasn’t entitled to Transocean’s insurance. The U.S. appeals court in New Orleans bounced the case to the Texas Supreme Court in August 2013 for guidance on how to interpret the insurance policy under Texas law. Earlier, it sided with BP. The Texas high court interpreted the policy and associated drilling […]

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Mexico-U.S. Seen Integrating More Power Than Oil, Moniz Says

The historic end of Mexico’s state monopoly on energy could spark more integration with U.S. power utilities than the much hyped opening of the country’s oil industry, U.S. Energy Secretary Ernest Moniz said. The focus of Mexico’s energy overhaul “is typically on the hydrocarbons but in fact the most consequential part for further energy integration may very well be electricity,” Moniz said in an interview during the Clean Energy Ministerial conference in Merida, Mexico, on Wednesday. “American companies will clearly be coming in, and we will also see Mexican companies in the U.S.” Mexico ended the monopolies to allow foreign energy companies to operate in the country for the first time in more than seven decades. The move will enable further integration with U.S. utilities and natural gas pipelines across the border, much like links between the U.S. and Canadian gas and electricity markets, Moniz said. “Presumably we will […]

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Exxon, Chevron Say No Thanks to European Peers on Climate

Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corp. Photographer: F. Carter Smith/Bloomberg The biggest U.S. oil producers have dismissed the prospect of joining their European peers in forging a common stance on climate change, with Exxon Mobil Corp.’s CEO saying he doesn’t intend to “fake it.” Exxon Mobil and Chevron Corp.’s go-it-alone strategy could weaken the impact of any targets, carbon goals or other climate-friendly measures endorsed by explorers including Royal Dutch Shell Plc, BP Plc and Total SA. The European energy giants are coordinating a strategy ahead of the United Nations’ climate talks in Paris this December. The industry is under mounting pressure from politicians and some investors to take a leading role in fighting climate change. U.S. Secretary of State John Kerry said last week the onus is on energy producers to voluntarily curb emissions and encourage governments to adopt ambitious carbon limits. “We […]

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A Relic of California’s Oil Past Haunts State With Sea Spill

Oil soaked kelp and oil sheen in Santa Barbara on May 20, 2015. Photographer: Brian van der Brug /Los Angeles Times via Getty Images A pipeline the oil market had all but forgotten resurfaced like a painful memory last week, spilling 500 barrels of heavy oil into the Pacific Ocean. Line 901. A quarter century ago, it was a pipeline full of promise. Today, it’s full of — not much, really. Before it leaked on May 19, pouring viscous crude into the waters off California’s coast, the 24-inch line was schlepping 28,800 barrels a day, mostly to a small refinery near Santa Barbara, at less than a fifth of its capacity. Graphic: California’s Oil Spill It’s a relic from another time, an era that peaked in the 1990’s when drillers dove into the waters off California’s coast chasing billions of barrels lying beneath the ocean floor. The state was […]

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Ruble Trades Closest to Oil Since 2013 as Rate Cuts Damp Allure

The ruble’s movements are the closest to those of oil prices in 20 months as a series of Russian interest-rate cuts and central bank currency purchases damp its carry-trade appeal. The Russian currency fell for a third day, losing 1.6 percent to 52.8 versus the dollar as of 7:02 p.m. in Moscow, the weakest since April 22. The correlation between changes in the ruble-dollar exchange rate and moves in the price of Brent rose to 36 percent, the most since September 2013, according to data compiled by Bloomberg. “The ruble is now following the dollar’s move against other currencies and oil, which is also tracking the dollar,” Andrey Mishko, a foreign-currency trader at National Standard Bank in Moscow, said in e-mailed comments. “On top of that, the central bank is buying, making the overall market positioning long dollar.” The ruble has pared its world-leading performance this year to 15 […]

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Putin Declares Soldiers’ Deaths and Wounds Secret, in War and Peace

MOSCOW — The deaths or wounds of Russian soldiers in “special operations” can be classified as military secrets, even in peacetime, President Vladimir V. Putin decreed on Thursday. The decree comes as Russia faces accusations that it is sending its soldiers clandestinely to fight in Ukraine , an allegation the Kremlin denies. Mr. Putin’s decree amended a law that previously let the military keep soldiers’ deaths or injuries secret only in times of war. Mr. Putin has repeatedly insisted that Russian soldiers are not taking part in the conflict in eastern Ukraine, where government forces and pro-Russian separatist rebels have continued despite a cease-fire deal in February. At home, Russia’s political opposition says that by refusing to acknowledge that its soldiers are in combat in Ukraine, the Russian military is unjustly denying them disability payments, and denying their relatives death benefits and other awards. All the while, there are […]

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Armed With Google and YouTube, Analysts Gauge Russia’s Presence in Ukraine

WASHINGTON — An unusual investigation using publicly available videos, smartphone photographs and satellite images shows that Russia is continuing to defy the West by conducting protracted military operations inside Ukraine , according to an independent report. Russia has long dismissed Western allegations that its military has intervened in Ukraine as little more than computer-generated propaganda. In an attempt to puncture the Russian denials, independent experts have operated like digital Sherlock Holmeses, using Google’s Street View, YouTube, Instagram, Twitter, satellite photographs and Russia’s version of Facebook, including social media updates by Russian soldiers. That research was then supplemented by more traditional sources like court documents and local media reports. “Independent researchers, using open sources and rigorous methodology, have demonstrated that Russian troops and Russian weapons have been an important part of the fight in Ukraine’s east,” said John E. Herbst, a former American ambassador to Ukraine and one of the […]

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Peak Oil and Technology – The Never Ending Game

Whenever oil prices abnormally elevate due to a variety of reasons, some of which are beyond human control and some the result of human intervention – the world often panics and the press is filled with articles highlighting that the world is running out of oil, ‘peak oil theory’, and oil prices are likely to increase to $250/bbl etc. The term peak oil was originally coined in the 1950s by M. King Hubbert who predicted US oil production would peak in 1970, and decline at the same rate it arose. But in the history of the petroleum era, Matt Simmons will be remembered for calling attention to peak oil. T. Boone Pickens, another peak oil proponent said in a statement, “You had to admire his advocacy and his ability to focus on the need to better prepare for a new energy future.” In reality, like many Malthusian beliefs, the […]

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Oil rises as dollar dips, eyes on U.S. stocks data

LONDON Oil prices recovered on Thursday after a two-day slide as the dollar weakened, making fuel less expensive for holders of other currencies. The dollar has risen more than 4 percent against a basket of currencies .DXY over the last 10 days, helping accelerate a fall in oil prices from a five-month high early in May. But the surge in the U.S. currency paused on Thursday, encouraging some oil buying, traders and analysts said. "Much depends on the U.S. dollar," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt. "If the dollar resumes its rise, oil will probably test new lows again," Fritsch added. Front-month Brent LCOc1 was up 65 cents at $62.71 a barrel by 0815 GMT. U.S. crude futures CLc1 were up 30 cents from their last settlement at $57.81 per barrel. Investors awaited oil inventory data from the U.S. Energy Information Administration (EIA) […]

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Oil Prices Up as Market Awaits U.S. Oil Supply Data

ENLARGE Shell oil rig Transocean Polar Pioneer arrives in Seattle. The oil drilling rig was moved from Port Angeles to Seattle’s Terminal 5 where it will remain until June as it is prepared for the upcoming drilling season. Photo: Zuma Press LONDON—Oil prices rose in a volatile session Thursday as investors brace themselves for key U.S. oil supply data. Brent crude for July delivery recently rose 0.7% to $62.48 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures for July were trading up 0.3% at $57.67 a barrel. Late Wednesday, the American Petroleum Institute, an industry group, reported a surprise 1.3-million-barrel rise in U.S. crude stockpiles for last week. The more closely watched data by the U.S. Energy Information Administration is due later, and markets expect weekly supplies to have decreased by 1.1 million barrels, according to analysts polled by The […]

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Nigerian govt paying $800 million to oil suppliers to end fuel crisis crippling economy

The Associated Press By MICHELLE FAUL, Associated Press LAGOS, Nigeria (AP) — Nigeria’s outgoing government has agreed to pay a debt of $800 million to resolve a months-long fuel crisis crippling the economy days before the inauguration of a new president in the country, oil suppliers said Wednesday. Chaos reigned Tuesday at Nigerian airports where most flights were cancelled. Foreign airlines flew to other African countries to refuel. Cars and other vehicles formed queues two and three deep blocking roads for more than 2 kilometers (a mile) outside of gas stations. Attendants turned away people carrying yellow cans to buy kerosene for cooking. There was none. Banks started closing at lunchtime on Monday and cell phone companies warned they would be forced to shut down service countrywide for lack of diesel to fuel generators. Nigeria — Africa’s biggest oil producer— generates more than 2 million barrels of petroleum a […]

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Saudi Arabia’s summer oil demand for power generation to climb

SINGAPORE Saudi Arabia’s demand for oil products could increase by up to 20 percent this summer from last year as soaring temperatures stoke demand for power generation, but new refineries will limit the need for imports, traders and analysts said. Requirements for fuel oil, the cheapest form of oil to burn to generate electricity, could climb by up to 20 percent this year, although demand for pricier gasoil is likely to be unchanged from last year. Imports of the middle distillate into the country are expected to hit a record low this year due to new refineries’ ability to meet demand, potentially curbing Asian gasoil margins as this removes a major outlet for barrels, traders said. Saudi Arabia has added 800,000 barrels per day (bpd) of new capacity in its refineries of Yanbu and Jubail over the past two years, reducing its reliance on imports and stalling term talks […]

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OPEC sees rivals boosting oil output despite weak prices

LONDON The North American oil boom is proving resilient despite low oil prices, producer group OPEC said in its biggest and most detailed report this year, suggesting the global oil glut could persist for another two years. A draft report of OPEC’s long-term strategy, seen by Reuters ahead of the cartel’s policy meeting in Vienna next week, forecast crude supply from rival non-OPEC producers would grow at least until 2017. Sluggish global demand for oil means the call on OPEC’s crude will fall from 30 million barrels per day (bpd) in 2014 to 28.2 million in 2017, effectively leaving the group with two options – cut output from current levels of 31 million bpd or be prepared to tolerate depressed oil prices for much longer. "Since June 2014, oil prices have experienced a significant reduction, reaching levels even lower than the crisis experienced in 2008, yet non-OPEC supply is […]

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June OPEC meeting won’t cut output: Saudi paper quotes source

KHOBAR, Saudi Arabia OPEC is not expected to cut oil production at its meeting in June, and the meeting is expected to be a short one, Saudi Arabia’s Al Hayat newspaper quoted an unnamed OPEC source as saying on Thursday. Saudi Arabia will continue producing oil to meet customer demand, and its output is now at about 10.3 million barrels per day in light of growth in demand from China and India, the source added. He said Saudi Arabia would not sacrifice its market share for other people’s interests, especially if there was no cooperation on oil policy from outside OPEC – a line which has been stated repeatedly by Saudi officials in recent months. Al Hayat is a major Saudi newspaper with a strong reputation for covering oil policy. (Reporting by Reem Shamsedine, Writing by Andrew Torchia)

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Obama’s Chief Negotiator in Iran Nuclear Talks Plans to Depart After Deadline for Deal

WASHINGTON — President Obama ’s chief negotiator with Iran , Wendy R. Sherman, said on Wednesday that she planned to leave the administration shortly after the June 30 deadline for a final deal on limiting the country’s nuclear program . “It’s been two long years,” Ms. Sherman, the under secretary of state for policy, said in her office on Wednesday. With her departure, all the top officials who have negotiated with Iran over those two years will have left the administration, leaving questions about who will coordinate the complex process of carrying out a deal if one is struck by the deadline. On Wednesday night, Secretary of State John Kerry, who has relied on Ms. Sherman to conduct the high-stakes negotiations, said that her “mentoring of colleagues, her experience, her passion for diplomacy, her calm in the storm set her apart as a great under secretary of state.” Her […]

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Sunnis Fleeing ISIS Find Few Doors Open Elsewhere in Iraq

Photo Iraqi civilians fleeing fighting in Ramadi crossed the Bzebiz Bridge, which offers passage into Baghdad from Anbar Province. Credit Karim Kadim/Associated Press AMIRIYAT FALLUJA, Iraq — On one side of a rickety bridge that spans a narrow stretch of the Euphrates River were panicked families on the run from Islamic State forces, hoping to escape Anbar Province and reach safety in Baghdad. On the other side were Iraqi Army officers and Shiite militiamen, under orders to keep the bridge closed because of fears that militants could slip in among the displaced civilians. “It’s like the other side is Europe and this is Asia,” said Ehab Talib, 27, who was waiting to meet relatives fleeing the fighting in Anbar, the Sunni-dominated region whose capital, Ramadi, recently fell to the Islamic State . With new waves of civilians fleeing violence in Anbar there are now more internally displaced Iraqis, nearly […]

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Oil workers continue protest for shift changes

The Rumaila oilfield on Sept. 4, 2014, operated by BP and CNPC. (ESSAM AL-SUDANI/Reuters) Recommend 13 people recommend this. Sign Up to see what your friends recommend. Workers at Rumaila as well as other southern oil fields are pressing foreign oil companies and Iraqi oil officials to reverse their stance and adopt a non-industry standard work rotation. This is not the only demand from oil workers, who have for years put forward a series of union-backed demands to improve working conditions and receive bonus pay. Following a March protest at South Oil Company headquarters, the issue of shift scheduling now appears to be at the top of the agenda through… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Saudi Arabia Sanctions Two Hezbollah Commanders, Alleging Terrorist Activities

Saudi Arabia sanctioned two top Hezbollah commanders allegedly involved in regional terrorist operations, in a sign of the kingdom’s growing coordination with the U.S. Treasury Department. Riyadh on Wednesday blacklisted Khalil Yusif Harb and Muhammad Qabalan for activities the Saudis alleged were designed to destabilize the kingdom’s close strategic allies in Yemen, Egypt and Lebanon. The U.S. Treasury sanctioned the same Lebanese men in August 2013. Hezbollah is a militia and political party based in Lebanon. “The Saudi government will continue to combat Hezbollah’s terrorist activities with all available tools and will continue to work with partners around the world to make it clear that Hezbollah’s militant and extremist activities should not be tolerated by any nation,” Saudi Arabia’s Ministry of the Interior said in a statement. The Treasury Department’s top counterterrorism official praised the action as a sign of increased cooperation between the U.S. and Saudi Arabia in […]

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Libyan Prime Minister Escapes Assassination Attempt

Libyan Prime Minister Abdullah al-Thinni on a visit to Tunis in March. ENLARGE Photo: mohamed messara/European Pressphoto Agency Libya’s internationally recognized prime minister escaped an assassination attempt, the latest sign of a widening security vacuum that is complicating European Union efforts to stem the flow of illegal migrants from the country. Prime Minister Abdullah al-Thinni was targeted Tuesday night when several unidentified gunmen shot at his motorcade as he left a parliamentary session in the eastern city of Tobruk, according to a member of parliament and security officials. Libya’s internationally recognized government is based in Tobruk while a rival administration opposed to Mr. Thinni is based in the capital Tripoli and controls the country’s west. Human smugglers have exploited Libya’s deep political crisis and insecurity to use the country as a launching ground for thousands of migrants —mostly African and Middle Eastern—making the perilous journey across the Mediterranean Sea. […]

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Venezuela, Russia’s Rosneft agree on $14 billion oil, gas investment

CARACAS Venezuela and Russia’s top oil producer, Rosneft, have agreed on around $14 billion in investment in the South American OPEC country’s oil and gas sector, President Nicolas Maduro said on Wednesday evening. Maduro said he met with the chief executive of state-owned Rosneft, Igor Sechin, earlier on Wednesday, in the company of PDVSA [PDVSA.UL] President Eulogio del Pino and National Assembly boss and Socialist Party No. 2 Diosdado Cabello. "We had a great meeting and agreed on investment of over $14 billion," said Maduro during a televised broadcast, adding the funds would go toward doubling Venezuela’s oil production. PDVSA has formal ambitious targets to double national production to 6 million barrels a day by 2019, with 4 million of that projected to come from the Orinoco Belt, but few industry experts or foreign investors expect those goals to be met. Speaking at a Socialist Party event broadcast on […]

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Total reaches production milestone in Angola

French energy company Total announces production milestone at offshore reserve area in Angola. Photo by James Jones Jr./Shutterstock PARIS, May 27 (UPI) — With 2 billion barrels of cumulative production from an offshore block in Angola, French energy company Total said Wednesday it set the global gold standard. Total announced it reached the milestone at its offshore Block 17 reserve area, located about 90 miles off the coast of Angola in deep waters. "Block 17 is a global benchmark in the deep offshore and represents a unique industrial adventure, with 15 discoveries and a very high level of production," Arnaud Breuillac, Total’s president of exploration and production," said in a statement. With more than 700,000 barrels of oil equivalent in production at the start of 2015, the French energy company said it’s the lead operator in Angola. Apart from Block 17, the company holds a 30 percent stake in […]

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China May official factory PMI seen lackluster despite stimulus moves

BEIJING China’s factories struggled to expand in May despite recent interest rate cuts and other policy stimulus, a Reuters poll showed, suggesting the government may have to do more to halt a protracted slowdown in the economy. The official manufacturing Purchasing Managers’ Index, or PMI, is forecast to inch up to 50.2 from April’s 50.1, according to the median forecast of 14 economists in the poll. A reading above 50 points indicates an expansion in activity while one below that shows a contraction on a monthly basis. "Although the government has unveiled a series of policy stimulus measures, the effect has yet to show up," said Nie Wen, an economist at Hwabao Trust in Shanghai. The flash HSBC/Markit PMI released last week showed factory activity contracted for a third month in May and output shrank at the fastest rate in just over a year, indicating persistent weakness in the […]

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Plains defends California pipeline infrastructure

1 of 6 Workers continue the cleanup along Refugio Beach as efforts continue to remove the oil that has spilled an estimated 100,000 gallons off the Santa Barbara County coast in Goleta, California on May 22, 2015. A unified command center established for the spill said the worst-case estimate is that 2,500 barrels of oil was released from a pipeline operated by Plains All American. Photo by Jim Ruymen/UPI | License Photo SANTA BARBARA, Calif., May 27 (UPI) — Plains All American defended pipeline infrastructure in California after last week’s spill, saying automatic shutoff valves were not the best safety option. Plains is working with state, local and federal regulators to remove part of its Line 901 from a region near Refugio State Beach in Santa Barbara. A unified command center established for the spill said the worst-case estimate is that 2,500 barrels of oil was released from the […]

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Bill is wrong way to speed gas pipeline approvals, House panel told

WASHINGTON, DC, May 27 A bill that would give the US Department of the Interior authority to approve natural gas pipelines crossing National Parks Service land is unnecessary and unwanted, a US Bureau of Land Management official told a House Natural Resources subcommittee. “Most of the authorizations of HR 2295 are already within the scope of existing [Interior] authorities, and consistent with current priorities and activities,” Timothy Spisak, BLM’s senior advisor for energy, minerals, and realty management, said during the Energy and Minerals Subcommittee’s May 20 hearing. “Additionally, the department strongly opposes the bill’s provisions that would authorize the secretary to issue natural gas pipeline rights of way on NPS lands,” Tpisak said. The bill’s sponsors, Reps. Tom McArthur (R-NJ) and Cedric Richmond (D-La.), said their measure, the National Energy Security Corridors Act, is necessary to reduce federal bureaucratic roadblocks. “All along the East Coast, families are paying higher […]

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EU officials dismiss Greek statement on aid agreement being drafted

ATHENS Greece’s government on Wednesday said it is starting to draft an agreement with creditors that would pave the way for aid, but European officials quickly dismissed that as wishful thinking. Greece and its European and International Monetary Fund lenders have been locked in tortuous negotiations on a reforms agreement for four months without a breakthrough in sight. Without a deal, Athens risks default or bankruptcy in weeks. A new round of talks begin on Wednesday in Brussels, and a Greek government official said the two sides would start drafting a technical-level agreement there, along the lines of Athens’ longtime demands for no wage or pension cuts and a lower target for a primary budget surplus. But European Commission Vice President Valdis Dombrovskis said the two sides still had some way to go before any agreement could be drawn up. "We are working very intensively to ensure a staff-level […]

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How Russia was warned against oil output cut as prices dived

MOSCOW/LONDON As Russia prepares to meet OPEC next week, a briefing paper from a Moscow think tank has shed light on how the government was warned against cutting oil output late last year even though global prices were plummeting. Speculation was rife that Russia and the oil exporters’ cartel might strike a production deal to arrest the slide when Energy Minister Alexander Novak met his Saudi Arabian counterpart last November. However, the think tank had already advised Novak that OPEC would not cooperate and unilateral action would be costly at a time when Russian state finances were in a dire state. "If Russia cuts output, OPEC will take our market share in Europe," a team led by energy expert Grigory Vygon said in the previously unpublished paper, commissioned by the Energy Ministry before the Nov. 25 meeting in Vienna. The paper was prepared by the Skolkovo Institute’s energy team, […]

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Oil Marginally Higher but Strong Dollar Weighs

By Eric Yep Oil prices were marginally higher in Asian trade Wednesday, attempting a rebound after sharp losses of nearly 3% in the previous session on the back of a strong U.S. dollar. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $58.35 a barrel at 0324 GMT, up $0.32 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange rose $0.15 to $63.87 a barrel. However, strength in the greenback continues to weigh on oil prices. Market participants have raised concerns about the inability of the oil market to sustain its latest price rally. "At least for the time being, the strength in the U.S. dollar has called attention away from declining U.S. petroleum inventories," analyst Tim Evans at Citi Futures said. He said while the upcoming meeting of the Organization of the Petroleum Exporting Countries in early […]

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Oil rebounds 1 percent, U.S. crude stocks in focus

SINGAPORE Crude futures rose about 1 percent on Wednesday to recover some ground after steep drops in the previous session, boosted by expectations that U.S. crude stocks could fall for a fourth straight week. Prices were also supported by comments from western diplomats that a nuclear deal with Iran was unlikely by a June 30 deadline, and the oil producer would not get sanctions relief before the end of the year in the best of cases. July Brent crude LCOc1 rose 60 cents to $64.32 a barrel by 0651 GMT, while U.S. crude was up 75 cents at $58.78 a barrel. Both contracts fell more than 2 percent on Tuesday after a stronger greenback curbed buying interest in dollar-denominated commodities such as oil. U.S. commercial crude inventories likely decreased by 2 million barrels last week, a preliminary Reuters survey showed. Declining U.S. stockpiles of crude and oil products in […]

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Oil Price Hurt by Dollar Strength

ENLARGE An Endeavor Energy Resources rig outside Midland, Texas. U.S. players say they could start adding rigs in coming months if prices stabilize near current levels. Photo: Bloomberg News Oil prices fell Tuesday as the U.S. dollar strengthened and market participants continued to question the sustainability of the recent price rally. Light, sweet crude for July delivery recently fell $1.27, or 2.1%, to $58.45 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.12, or 1.7%, to $64.40 a barrel on ICE Futures Europe. The Wall Street Journal Dollar Index, which tracks the dollar against a basket of other major currencies, rose 0.7% on Tuesday. As it is priced in dollars, oil becomes more expensive for holders of other currencies as the greenback appreciates. “Oil prices are fighting exceptional strength in the dollar,” said Phil Flynn , analyst at Price Futures Group in Chicago, in […]

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Natural Gas Futures Fall as Demand Outlook Weakens

By Christian Berthelsen Natural gas futures extended losses Tuesday as forecasts for an East Coast heat wave faded, dashing expectations for a bout of gas-fired cooling demand. Natural gas for June delivery settled down 6.5 cents, or 2.3%, at $2.822 a million British thermal units on the New York Mercantile Exchange. The June contract expires Wednesday. The loss prolonged last week’s slide, as concerns about robust production and more than adequate supplies prompt the market to give back gains made in early May. The May rally was driven by hotter-than-average temperatures that were expected to provide a boost for natural gas demand to generate power and run air conditioning. But the most recent forecasts show that trend beginning to moderate, with a spate of much-above normal temperatures in the Northeast fading in the coming days and predictions for renewed heat into early June losing strength, according to forecaster Commodity […]

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Return of crude/dollar trade fuels oil market dilemma ahead of OPEC

A once-popular pair trade pitting the U.S. dollar against oil prices has re-emerged in recent weeks, injecting a new wildcard into the market just as the Organization of the Petroleum Exporting Countries prepares to meet. Through the second half of 2014, oil slid while the dollar rose, though market watchers viewed this inverse correlation as a coincidence. Oil’s rout was fueled by a swelling global glut, the dollar’s rise driven by European monetary easing and expectations of higher U.S. interest rates. In recent weeks, however, oil market analysts and traders said it looked as though foreign exchange markets were jerking oil prices around. Oil market players are now paying closer attention to currency markets than they have since the European financial crisis. About two weeks ago, Morgan Stanley analysts said an "uncanny" relationship has developed between the dollar index and benchmark Brent crude oil. The inverse correlation between the […]

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Nuclear Move Stands to Lift U.S.-Israel Ties

ENLARGE Israeli Prime Minister Benjamin Netanyahu speaks in the parliament in Jerusalem earlier this month during a ceremony marking the 70th anniversary of the victory over Nazi Germany. Photo: jim hollander/European Pressphoto Agency Israeli officials criticized the Obama administration last week when they thought the U.S. was about to support a United Nations conference on nuclear weapons in the Middle East—with or without Israel’s participation or consent. But by Saturday, Prime Minister Benjamin Netanyahu called Secretary of State John Kerry and praised the White House for instead blocking the proposed meeting, which might have pressured Israel to disclose its presumed nuclear-arms program. “The United States kept its commitment to Israel by preventing a Middle East resolution that would single out Israel and ignore its security interests,” said a senior Israeli official briefed on the call, which was confirmed by U.S. officials. Israel’s diplomatic U-turn over the weekend shined a […]

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Iran denies military role in Iraqi oil fight

An Iranian deputy foreign minister for regional affairs said there are no Iranian troops fighting against the Islamic State in Iraq. photo by Mushtaq mohammed /UPI MOSCOW, May 26 (UPI) — An Iranian deputy foreign minister denied allegations that Iranian forces were fighting in Iraq to regain control over the Beiji oil refinery. U.S. military strikes have supported Iraqi troop activity against the group calling itself the Islamic State in many of the country’s western Sunni-dominated provinces. The militant group claimed a brief hold over the Beiji oil refinery in Saladin province, north of Baghdad, last year and heavy fighting has been reported recently in and around the area. The Islamic State has claimed control over Ramadi, the capital of neighboring Anbar province. U.S. defense officials said last week there were a small number of Iranian forces working on the ground in coordination with Shiite militias to retake the […]

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Iraqi Army and Shiite Militias Begin Push to Take Ramadi From ISIS

Photo Shiite fighters during an operation to retake the remaining areas of the Baiji oil refinery from the Islamic State on Monday in Salahuddin Province in Iraq. Credit Ahmad Al-Rubaye/Agence France-Presse — Getty Images BAGHDAD — Iraqi officials said Tuesday that a combined force of Iraqi soldiers and allied Shiite militias had started moving to retake the city of Ramadi, the capital of Anbar Province, from Islamic State fighters. The officials billed the operation that began Tuesday as the start of a major offensive to liberate all of Anbar Province. But most of the action reported on Tuesday involved pro-government forces maneuvering in the desert areas north and east of Ramadi, and it was unclear when an assault there might begin. The loss of Ramadi more than a week ago was a major setback for the Iraqi government and the United States-led air campaign to contain the Islamic State, also […]

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Baiji refinery devastated by IS scorched earth tactics

Iraqi army tanks get into position on the outskirts of the Baiji refinery during a joint operation between the army and popular mobilization units to retake the remaining area of the refinery from Islamic State (IS) militants, on May 24, 2015. (AHMAD AL-RUBAYE/AFP/Getty Images) Recommend 4 people recommend this. Sign Up to see what your friends recommend. The Baiji refinery, which was once Iraq’s single largest source of fuel, appears to have been almost entirely destroyed.Militants from the so-called Islamic State (IS) group have detonated explosives and set fire to key infrastructure, including control rooms and processing units, as pro-government forces launched a fresh offensive over the weekend to regain control of the facility, Iraqi security and oil officials said."The damage to the refinery is huge," said a senior engineer who use… This content is for registered users. Please login to continue. If you are not a registered user, […]

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Iraq About to Flood Oil Market

Iraq is taking OPEC’s strategy to defend its share of the global oil market to a new level. The nation plans to boost crude exports by about 26 percent to a record 3.75 million barrels a day next month, according to shipping programs, signaling an escalation of OPEC strategy to undercut U.S. shale drillers in the current market rout. The additional Iraqi oil is equal to about 800,000 barrels a day, or more than comes from OPEC member Qatar. The rest of the Organization of Petroleum Exporting Countries is expected to rubber stamp its policy to maintain output levels at a meeting on June 5. While shipping schedules aren’t a promise of future production, they are indicative of what may come. The following chart graphs planned tanker loadings (in red) against exports. As in previous months, Iraq might not hit its June target – export capacity is currently capped […]

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Gunmen try to kill Libya’s recognized prime minister

AP Photo/Alexander Zemlianichenko Interactive Interactives Buy AP Photo Reprints Multimedia Libya Opening Doors to Tourists BENGHAZI, Libya (AP) — Gunmen tried to assassinate Libya’s internationally recognized prime minister on his way to the airport in the eastern city of Tobruk on Tuesday, a spokesman for his government said. Arish Said, head of the government’s media department, said that Prime Minister Abdullah al-Thinni’s motorcade was attacked and one of his guards was lightly wounded but that there were no fatalities. "They managed to escape," Said said. Prior to the attack, he said armed men who had been protesting outside a session of the Tobruk government’s House of Representatives tried to storm the building, firing shots into the air and demanding al-Thinni be removed from office. They were "threatening to kill the prime minister and force the House to sack him," Said said. He identified the men as being funded by […]

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Eni finds gas offshore Libya

MILAN, Italy, May 26 (UPI) — Italian energy company Eni announced Tuesday it made its second discovery of the year at an exploration prospect off the coast of Libya. Eni said it made a natural gas and condensate discovery in so-called Area 3, a reserve area about 85 miles off the Libyan coast. "The well represents the second discovery made by Eni in Libyan offshore Area D since the beginning of 2015," the company said in a statement. Production tests yielded a preliminary flow rate from the well at 1,340 barrels of oil equivalent per day. Eni estimates the well should be able to produce at least 3,000 boe per day at its peak. Before NATO forces intervened in Libyan civil war in 2011, the country was producing more than 1 million bpd. The Organization of Petroleum Exporting Countries in its latest market report said production from member-state Libya […]

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Libyan Prime Minister Survives Assassination Attempt Amid Protests

RIYADH, Saudi Arabia — The prime minister of Libya ’s internationally recognized government survived an assassination attempt Tuesday after facing hostile questioning inside Parliament and demands for his resignation from armed protesters outside. The mayhem and violence broke out amid growing signs of divisions in the faction backing the government of Prime Minister Abdullah al-Thinni against a rival faction that has taken over the capital, Tripoli. If the conflicts and discord further threaten the stability of Mr. Thinni’s government, the result could cripple the United Nations-brokered talks aimed at bringing the two factions together and could further compound the chaos that has engulfed Libya since the fall of Col. Muammar el-Qaddafi in 2011. It was unclear who was responsible for the assassination attempt. Armed forces allied with the government, which is based in Tobruk and Bayda, have been battling Islamist militants from Benghazi and Dernah. Last winter, militants hostile […]

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Peak Oil Dress Rehearsal?

This is extraordinary. Remember all those dire things that were supposed to happen when Peak Oil hit? All the stuff in The Long Emrgency? Cars queuing up for miles to buy petrol, public transportation jacking up rates, cell phones not working, banks closing their doors, planes grounded for lack of fuel, supermarkets stripped bare, scalpers selling gas in jerry-cans, factories shutting down, stations going off the air, people losing their jobs, political disorder, human sacrifice, dogs and cats living together, mass hysteria… Turns out all of it is happening…In Nigeria: Nigeria is facing a prolonged fuel-supply crisis that is taking a severe toll on the country’s economy, living conditions, and basic services, reports say. The shortage in Africa’s leading oil producer has forced an increasing number of drivers in Lagos to stop using their personal vehicles, but prices for commuters on public transport have more than doubled. Black market […]

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Report: South Sudan’s fate hinges on oil

Durability of Salva Kiir, president of South Sudan, may be closely linked to oil production in the war-torn country. File Photo by John Angelillo/UPI JUBA, South Sudan, May 26 (UPI) — The political unity holding South Sudan together may hinge on battles over oil-producing regions along the country’s northern border, an analyst said. When it gained independence from Sudan in 2011, the landlocked country gained control over much of the oil-producing regions, but Sudan maintained its grip on export infrastructure. Conflict erupted in South Sudan in 2013 when Salva Kiir, the country’s president, accused former Vice President Riek Machar of staging a coup. Rebel forces two years on are waging battle for control over Paloch near the Sudanese border, the only part of South Sudan still producing oil. "Oil is South Sudan’s bread and butter," Luke Patey, a researcher at the Danish Institute for International Studies in Copenhagen, told […]

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Nigerian gas shortage resolved but new leader still faces major challenges

Hawkers sell gasoline in Abuja, Nigeria, on Monday. The country has been experiencing a severe scarcity of fuel. (Deji Yake / European Pressphoto Agency) Nigeria’s gasoline scarcity was resolved Monday, but only after the shortages had damaged the economy, canceled or diverted commercial flights, shut down radio stations and put mobile phone networks at risk. With incoming President Muhammadu Buhari set to be sworn in Friday, the opposition All Progressives Congress accused outgoing President Goodluck Jonathan of sabotaging the new administration. Buhari faces high expectations and myriad problems, including a government financial crisis partly caused by the fall in oil prices, a battle against the militant group Boko Haram in the country’s northeast, electricity outages, widespread corruption and poor infrastructure. In the final days of Jonathan’s term, the country has also faced dire gasoline shortages and millions in unpaid wages of government workers. The gasoline shortage began before the March election that […]

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Nigerian unions end strike that shut 100,000 b/d of oil output for week

Nigerian oil worker unions at state-owned Nigerian National Petroleum Corporation and Nigerian Petroleum Development Company have called off a strike that shut about 100,000 b/d of production for a week, union and company officials said late Monday. The Pengassan and Nupeng unions started the strike May 18 to protest the transfer by the government of the operatorship of onshore oil block OML 42, sold by Shell to local firm Neconde. "Since the strike has been called off, other necessary things will follow," a NPDC spokesman said, referring to the restart of oil production at shut fields, without giving further details. Article continues below… For over 100 years Platts has been at the forefront of pricing and news in the energy markets. Today, we publish the essential information that you need to navigate the rapidly evolving commodity markets that Africa plays a key part in. Here you will find a […]

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Nigeria’s Energy Crisis Worsens – Only 5 of 23 Power Plants Functional

Nigeria’s energy crisis deteriorated Monday, as the Nigerian Electricity Regulatory Commission (NERC), the government agency responsible for regulating operations in the electricity sector, reported that only five of the country’ 23 power plants are currently functional. By implication, Nigerians would now have to contend with a biting fuel supply crisis, which has almost grounded the economy for months, and lack of electricity to power. On Friday, the Permanent Secretary, Federal Ministry of Power, Godknows Igali, had during a meeting with outgoing Vice-President, Namadi Sambo, in Abuja raised the alarm over the epileptic supply of electricity across the country. Mr. Igali, in the company of the Minister of Power, Chinedu Nebo, said the country’s dwindling electricity supply took a further nosedive to unprecedented all-time low level of 1,327 megawatts (MW) from the 4,800 MW level attained recently. He attributed the damning situation to the epileptic performance of most key power […]

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Nigeria: Fuel Crisis Grounds Economy

By Abel Orukpe, Tunde Opeseitan, Emma Nzomiwu, Chukwujekwu Ilozue And Temidayo Akinsuyi The lingering fuel crises caused by the refusal of oil marketers to lift and supply petroleum products until their demand for payment of oil subsidy is met by the federal government, appear to have affected virtually every sector of the Nigerian economy. Judicial activities at the various courts in Lagos were halted as those who managed to sit adjourned abruptly. In Enugu State, all the roads were deserted as the exorbitant cost of petrol forced motorists who could not afford to pay N200 per litre to either abandon their vehicles and trek or use commercial means of transportation. Also in Anambra State, business and social activities were almost shut down due to the crises. The price of petrol as at yesterday is said to have risen to between N180 to N250 per litre. Unfortunately, Mega stations from […]

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