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ISIS Fighters Seize Government Headquarters in Ramadi, Iraq

Photo Iraqis prepared to leave Ramadi, the capital of Anbar Province, some 70 miles west of Baghdad, on Friday amid an advance by Islamic State fighters. Credit Associated Press BAGHDAD — In a major setback for the Iraqi government’s efforts to defend its hold on Ramadi, a crucial regional capital, Islamic State militants conquered the city’s government sector on Friday, raising their black flag over the main compound before setting fire to the building, local officials said. The new jihadist assault began under the cover of darkness late Thursday, starting with a wave of suicide attacks by clean-shaven fighters driving armored Humvees and dressed in Iraqi Army uniforms. As fighters for the Islamic State, also known as ISIS or ISIL, advanced on Friday, there were reports of massacres. Sheikh Omar Shihan al-Alwani, a tribal leader whose men have been fighting the Islamic State there, said more than a dozen […]

Posted On : Published By : Tom Whipple
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Nigeria: Shell Shuts Down Nigeria’s Crude Export Pipeline

The Trans Nigeria Pipeline that carries Nigeria’s Bonny Light crude oil to an export terminal has been shut down since May 12, a Shell spokeswoman said on Thursday. While neither the reason for the shut down nor its expected duration have been disclosed as at the time of filing this report, traders affirmed that Bonny Light loadings have been delayed by up to four days over the past week. This development is taking place about a week after the Anglo-Dutch oil giant, Shell, declared force majeure on exports of Nigeria’s Forcados crude oil stream. "Force majeure" is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control. It declared force majeure on the evening on May 5 following "a series of leaks" in the Trans Forcados pipeline that brings the oil to the export terminal. The pipeline itself is operated by the Nigerian […]

Posted On : Published By : Tom Whipple
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WPX Energy would add North Dakota rigs with $65 per barrel oil

WILLISTON, N.D. Oil and gas producer WPX Energy Inc would add one or two drilling rigs in North Dakota if WTI oil prices stabilized around $65 per barrel, Chief Executive Rick Muncrief told Reuters on Friday. The forecast falls in line with U.S. shale peers, several of whom have pointed to $65 to $70 per barrel as the range in which they would add rigs and ramp up production. Indeed, Muncrief’s comments add to a body of evidence that the United States is now the world’s swing oil producer, able to ramp production up or down quickly. For WPX specifically, Muncrief’s outlook is part of a broader strategy to show Wall Street that after years of bloated spending, cash flow and cost management are top priorities. It’s a focus that appears to be working: WPX’s stock is up 15 percent so far this year, compared with a nearly 3 […]

Posted On : Published By : Tom Whipple
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Shell facing stiff Seattle opposition

Seattle protestors plan weekend events in an effort to try to show Shell is a poor steward for the environment. Photo courtesy: Emily Johnston/350 Seattle. SEATTLE, May 15 (UPI) — Though Shell may drill in Alaska’s arctic waters no matter how many protests are held, a Seattle organizer said the company can be cast in a bad light. Seattle organizers are planning weekend protests against Shell’s use of a port terminal for drilling rigs bound for the Chukchi Sea off the coast of Alaska. Emily Johnston, a spokeswoman for advocacy group 350 Seattle, said in response to email questions port consideration for Shell was offensive. "We probably can’t stop them from getting to Alaska this summer, but we can make sure they don’t get to make such catastrophic decisions in quiescent business-as-usual conditions," she said. "We’ll shine a bright light on exactly how bad an actor they are." Seattle […]

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Canada oil group vows to strengthen industry

Canadian oil group pledges to work to make the industry stronger than ever in the evolving energy market. Photo by Heather Snow/Shutterstock CALGARY, Alberta, May 15 (UPI) — The oil and gas industry in Canada said it was ready to work with the incoming provincial government in Alberta to strengthen a sector hurt by low oil prices. The Canadian Association of Petroleum Producers announced it would form an industry group to work alongside Alberta Premier-elect Rachel Notley to advance their interests in the oil-rich province and all of Canada. The Canadian National Energy Board said it was monitoring crude oil prices as U.S. oil production gains push markets toward the supply side. Low energy prices means less spending on exploration and production and Kevin Brin, director of the Canadian oil sands division at consultant firm IHS, said in a February interview a potential slowdown in Canada was a reflection […]

Posted On : Published By : Tom Whipple
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Pace of U.S. rig decline slows

The pace at which the exploration and production sector in North America seems to be slowing. Photo by Lilac Mountain/Shutterstock HOUSTON, May 15 (UPI) — The pace at which the exploration and production sector in North America is declining is slowing, weekly data from oil field services company Baker Hughes show. Baker Hughes said in a weekly report the number of rigs actively exploring for or producing oil and natural gas in the United States and Canada declined by a combined 15 for the week ending May 8. That’s an improvement over the week-on-week decline reported for the week ending May 1. A weak crude oil market, characterized by a slump in demand and a surplus of supplies, has forced most energy companies to cut back on exploration and production. Through the first quarter of the year, that’s resulted in a decline in production from some states, though rig […]

Posted On : Published By : Tom Whipple
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U.S. sued over oil-train rules

American Petroleum Institute challenges federal mandates for oil-trains in court, arguing timelines are arbitrary. File Photo by Steven Frame/Shutterstock. WASHINGTON, May 15 (UPI) — The American Petroleum Institute said it filed a lawsuit against the U.S. Department of Transportation challenging a federal timeline for oil-train safety. U.S. Transportation Secretary Anthony Foxx hosted Canadian Transport Minister Lisa Raitt in Washington to announce new standards for "stronger, safer rail tank cars" carrying flammable liquids like crude oil through North America. By Jan. 1, 2018, the U.S. rule mandates the retrofit or removal from the rail fleet for oil transport of cars designated DOT-111. The Canadian government set a May 1, 2017, deadline. Brian Straessle, a spokesman for the American Petroleum Institute, said the industry was frustrated with those timelines. "Improving on a 99.997 percent safety record requires data-driven efforts to prevent derailments with enhanced inspections and maintenance, upgrade the tank car […]

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U.S. Oil Rig Count Falls to 660 in Latest Week

The U.S. oil-rig count fell by eight to 660 in the latest week, according to Baker Hughes Inc., marking the 23nd straight week of declines. 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 about 59% fewer rigs working since a peak of 1,609 in October. That hasn’t yet translated into a drop in actual output, even though it has squelched production capacity. Crude-oil futures were recently down about 0.75% to $59.42. According to Baker Hughes, gas rigs were up two to 223 this week. The U.S. offshore rig count is at 34, unchanged from last week and down 23 from last year. For all rigs, including natural gas, the week’s drop was six to 888, and down 973 from last year’s 1861.

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BHI: US rig count decline shrinks to 6 this week, settles at 888

HOUSTON, May 15 OGJ Staff Writer The trend of shrinking declines in the US drilling rig count continued during the week ended May 15. Just 6 units were laid down to settle at a total of 888 rigs working, representing the smallest drop in the 23 consecutive weeks in which the count has dived, easily surpassing last week’s 11 that went offline, according to data from Baker Hughes Inc. ( OGJ Online, May 8, 2015 ). Since Dec. 5, 1,032 units have now gone offline ( OGJ Online, Dec. 5, 2014 ). The total of 888 is still higher than the nadir of 876 during the 2008-09 downturn but is 973 fewer units compared with this week a year ago. In an energy update early this week, Raymond James & Associates noted that weekly well permits, a primary indicator of rig count activity, “have been relatively stable as of […]

Posted On : Published By : Tom Whipple