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Nigerians groan under biting petrol shortages over subsidy row

Business leaders in Africa’s leading oil producer Nigeria on Thursday warned that jobs could be at risk, as a weeks-long fuel crisis showed no signs of easing. Long queues have been seen for days outside filling stations, flights have been grounded and generators that kick in when the country’s patchy public electricity supply goes off have run silent, leaving many without power. "Many companies have shut down because they cannot get diesel to fuel their plants," Musa Yusuf, of the Lagos Chamber of Commerce and Industry, told AFP. "Unless the situation is redressed, companies may be forced to lay off (staff)." Addressing the crisis looks likely to be the first major task for incoming president Muhammadu Buhari, who takes office next Friday. – Empty tanks – Nigerian motorists have borne the brunt of the shortages, with long queues at petrol stations in major cities such as Lagos, the capital […]

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Exxon makes big oil find offshore Guyana

Exxon announces the finding of a significant volume of oil in the deep waters off the coast of Guyana. Photo by project1photography/Shutterstock IRVING, Texas, May 21 (UPI) — Exxon Mobil said it made what it described as a significant oil discovery in the deep waters about 120 miles off the coast of Guyana in the Caribbean. The company ran through a 295-foot column of oil reserves while drilling an exploration well in the Stabroek reserve area about 120 miles of the Guyana coast in 5,719 feet of water, "I am encouraged by the results of the first well on the Stabroek block," Stephen M. Greenlee, president of Exxon Mobil Exploration Co., said in a statement. "Over the coming months we will work to determine the commercial viability of the discovered resource, as well as evaluate other resource potential on the block." A report from the U.S. Geological Survey said […]

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Reliance Petrol Stations Are Back in Business in India

ENLARGE A woman walks past a Reliance petrol and gas station in Navi Mumbai, India, in 2012. Photo: Bloomberg News NEW DELHI— Reliance Industries Ltd. EQRELIANCE -0.73 % plans to fully resume retail sales of fuel—a business it exited in 2008—by next March, as India’s move to end diesel subsidies provides it a level playing field to compete with state-run operators. The Mumbai-based refiner of crude oil had ventured into selling gasoline and diesel in 2006 through its nearly 1,400 petrol stations across the country. But it had to shut operations as it wasn’t getting subsidies extended to state-run operators. The subsidies were to compensate retailers for losses incurred on mandatory fuel sales below market prices, aimed at shielding the poor from inflation. However, the government ended subsidies on gasoline in 2012 and diesel last October , paving the way for private operators’ entry. The move “has presented an […]

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Gasoline Futures Hit Six-Month High

NEW YORK—Gasoline futures climbed to a 2015 high Thursday on expectations of strong driving demand during the Memorial Day weekend. U.S. gasoline consumption has risen this year as oil prices fell to multiyear lows and employment increased. Economists debate about how much cheaper gasoline encourages drivers to hit the road, but some analysts and investors are counting on increased driving demand to help shrink the global glut of crude oil this year and boost oil prices. Prices at the pump averaged $2.73 a gallon Thursday, according to motor club AAA, up more than 25 cents in the past month but still 91 cents cheaper than a year ago. Gasoline futures started rising Wednesday after weekly inventory data showed that stockpiles of gasoline fell more than expected, even as refineries processed more crude oil into fuel. On Thursday, gasoline futures for June delivery settled up 4.13 cents, or 2%, at […]

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Net imports of natural gas fall to lowest level since 1987

U.S. Energy Information Administration, based on U.S. Department of Energy Office of Fossil Energy U.S. net imports of natural gas decreased 9% in 2014, continuing an eight-year decline. As U.S. dry natural gas production has reached record highs, lower domestic prices have helped to displace natural gas imports. Net natural gas imports (imports minus exports) totaled 1,171 billion cubic feet (Bcf) in 2014, the lowest level since 1987. Imports by pipeline from Canada account for nearly 98% of all U.S. natural gas imports, and were the main driver of the decrease in total imports. Net imports from Canada represented 7% of total U.S. natural gas consumption in 2014, down from 11% in 2009. U.S. natural gas exports also decreased in 2014, but at a slower rate than the decrease in imports, and were still 9% above the previous five-year average. Natural gas exports to Mexico, which account for nearly […]

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US BOEM director defends Shell Arctic drilling decision

Faced with intense opposition from environmentalists, the director of the US Interior Department’s Bureau of Ocean Energy Management defended the administration’s conditional approval of Shell’s plans to drill in the Arctic this summer, a decision she indicated was based on both federal statute and, partly, national security. "There are certain regulatory requirements and [Shell] had met all of those requirements," BOEM Director Abigail Ross Hopper said in an interview with Platts on Wednesday. "We don’t have the ability to push things back, we can either approve or deny or approve with conditions. [Shell] met all the regulatory requirements … there’s not a basis upon which to reject it." The majority of environmental groups are pushing for an effective ban on US Arctic drilling, a path some felt President Barack Obama may have been moving toward when in late January he designated 9.8 million acres in the Beaufort and Chukchi […]

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Murray Energy to Lay Off Around 1,800 Workers

ENLARGE The planned layoffs at Murray Energy will come mostly from its mines in West Virginia and Ohio. Photo: Jeff Swensen for The Wall Street for The Wall Street Journal Coal miner Murray Energy Corp. is set to announce layoffs of around 1,800 workers at nine locations on Friday, according to a person familiar with the matter, dealing another blow to the coal-mining industry in Appalachia. The planned layoffs, which represent about 21% of Murray’s workforce, will come largely at mines in West Virginia and Ohio, a region already reeling from the impact of abundant natural gas and a global coal glut. Robert Murray, the 75-year-old founder and chief executive of the company, made the decision Wednesday after a 12-hour meeting with operations managers, according to the person familiar with the matter. The company decided to make much bigger cuts than it had previously been considering because of growing […]

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Vanguard Natural Resources to Buy Eagle Rock Energy Partners

The deal gives Vanguard a bigger presence in Oklahoma, where the company already pumps oil and gas, Vanguard chief executive Scott Smith said. “The assets being acquired are attractive bolt-ons to our Mid-Continent, Permian, and Gulf Coast Basin operations,” Mr. Smith said, referring to Vanguard’s existing drilling operations in Texas, New Mexico, Colorado, Wyoming and several other states. Terms of the deal calls for a subsidiary of Vanguard to merge into Eagle Rock for $474 million in stock and assume Eagle Rock’s net debt of $140 million. Following that combination, Eagle Rock will be a subsidiary of Vanguard. Joseph A. Mills, chief executive of Eagle Rock, said the agreement gives Eagle Rock shareholders a 24% premium over Thursday’s closing price of $2.45 a share. “We have been very impressed with the Vanguard team and look forward to working together to successfully combine our two companies,” he said.

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U.S. Railroad Oil Shipments Fell Amid Weak Oil Pricing

ENLARGE Crude oil volume on U.S. railroads has been falling as the declining price of oil pushes companies to pull back production. Photo: Associated Press Railroads carried less crude oil in the first quarter as oil companies scaled back domestic shipments. The Association of American Railroads reported that crude oil carried by big U.S. railroads fell nearly 14% to 113,089 carloads compared with the fourth quarter of 2014. The railroads have been major beneficiaries of the U.S. energy boom, as oil companies shipped crude oil from the Bakken Shale in North Dakota to refineries on the coasts. But as the price of oil tumbled, shipments dipped. Crude-by-rail shipments are still a small part of railroads’ total revenues—only about 5% for the sector combined with drilling supplies—but the business has grown at a rapid rate in recent years. The tonnage of crude petroleum carried by U.S. railroads soared from about […]

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Santa Barbara Oil Spill Worsens Dramatically

What was originally thought to be around 21,000 barrels is now over 105,000 barrels of oil spilled on to the pristine beaches of Santa Barbara County . On Wednesday, Gov. Jerry Brown declared a state of emergency for Santa Barbara County to free up resources to respond to the spill, which as the following horrible images show, is far worse than it initially appeared. After seeing all of that, it is no wonder that OilPrice.com’s Charles Kennedy believes this latest oil pipeline spill could galvanize environmentalist opposition . Santa Barbara area oil and gas facilities But the images of the cleanup are awful… Source: LA Times, The Telegraph *  *  * After seeing all of that, it is no wonder that OilPrice.com’s Charles Kennedy believes this latest oil pipeline spill could galvanize environmentalist opposition. A pipeline in California broke and spilled oil into the Pacific Ocean on May 19. […]

Posted On : Published By : Tom Whipple