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Power generation from coal and natural gas expected to temporarily converge this spring

Republished May 14, 2015, 2:00 p.m. to correct an error in the graph EIA’s most recent Short-Term Energy Outlook forecasts that the amount of electricity generation fueled by natural gas in April and May will total just 3.5% less than the projected amount of coal-fired generation. This convergence has occurred only once before, in April 2012, when natural gas fueled just 1.5% less generation than coal. Power generation from the two fuels is expected to rise at similar rates over the next couple months, and then diverge again later in the summer as demand rises and coal unit capacity utilization continues to rise. Natural gas-fired generation has been rising over the past few months, as the cost of natural gas has fallen to levels not seen since 2012 . These low fuel costs have made natural gas combined-cycle generating units in some areas of the country cheaper to operate […]

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New York environmental report calls for more fracking restrictions

New York has released its long-awaited report on high-volume hydraulic fracturing, which appears to cast doubt on whether the state will ever give a green light to the drilling completion practice, which essentially has been prohibited since 2008. The Department of Environmental Conservation released Wednesday the final supplemental generic environmental impact statement on fracking "that identifies and examines continued major uncertainties about potential significant adverse health and environmental impacts associated with the activity," according to a statement. The DEC will issue its formal findings statement after a required 10-day period in accordance with the state’s Environmental Quality Review Act. In a statement, DEC Commissioner Joe Martens said he would rely on the conclusions of the FSGEIS when he issues his findings statement. New York has had a de facto moratorium on fracking since 2008 while it first began to develop rules and regulations to govern the practice, which has […]

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Weekly US coal production slides for 12th straight week: EIA

Weekly US coal production totaled an estimated 16 million st in the week ended April 9, the lowest full-week estimate in the last five years, US Energy Information Administration data showed Thursday. The estimate — 16,029,316 st — is down 7.7% from the prior week’s estimate and down 15.1% from the year-ago week. While the EIA does not comment on its production estimates, the weekly total marked the 12th straight week of lower production when compared with last year as the coal market continues to deal with the fallout from low natural gas prices. Coal production in Wyoming and Montana, which is mostly made up of production from the Powder River Basin, totaled an estimated 6.9 million st during the week, down 14.4% compared with last year. Article continues below… Platts Global Coal Alert brings real-time coal industry information to those who can’t afford to wait until tomorrow to […]

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The Greatest Water Crisis In The History Of The United States

US Drought Monitor May 5 2015 What are we going to do once all the water is gone?  Thanks to the worst drought in more than 1,000 years, the western third of the country is facing the greatest water crisis that the United States has ever seen.  Lake Mead is now the lowest that it has ever been since the Hoover Dam was finished in the 1930s, mandatory water restrictions have already been implemented in the state of California , and there are already widespread reports of people stealing water in some of the worst hit areas.  But this is just the beginning.  Right now, in a desperate attempt to maintain somewhat “normal” levels of activity, water is being pumped out of the ground in the western half of the nation at an absolutely staggering pace.  Once that irreplaceable groundwater is gone, that is when the real crisis will […]

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How Sustainable is Stored Sunlight?

Whether or not to include storage is no longer just an academic question. Driven by better battery technology and the disincentivization of grid-connected solar panels, off-grid solar is about to make a comeback. How sustainable is a solar PV system if energy storage is taken into account? Picture: Tesla’s lithium-ion home storage system. In the  previous article , we have seen that many life cycle analyses (LCAs) of solar PV systems have a positive bias. Most LCAs base their studies on the manufacturing of solar cells in Europe or the USA. However, most panels are now produced in China, where the electric grid is about twice as carbon-intensive and about 50% less energy efficient. [ 1 ] Likewise, most LCAs investigate solar PV systems in regions with a solar insolation typical of the Mediterranean region, while the majority of solar panels have been installed in places with only half […]

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In Oil, Aberdeen Struggles With Price, Output

Sean Murphy, an Aberdeen oil-rig supervisor, has been looking for work for months. ENLARGE Photo: JO HANLEY FOR THE WALL STREET JOURNAL ABERDEEN, Scotland—When he was laid off in December, Sean Murphy thought he would easily find a new job with his 30 years of experience as a supervisor on oil rigs all over Europe’s North Sea. Five months and more than 200 résumés later, Mr. Murphy has lost confidence. So, too, has this once-buoyant city. Often called Europe’s energy capital for the high number of oil-and-gas firms operating here, Aberdeen is a victim of the sharp drop in oil prices since last year. More than 1,000 oil workers have been laid off in the region since the downturn began last year. Local businesses, from taxi cabs to hotels and restaurants, report fewer customers and fear worse is to come. The property market, once one of Britain’s hottest, has […]

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Oil Marginally Lower After IEA Report Points to Oversupply

May 14, 2015 1:02 a.m. ET By Eric Yep Crude-oil futures were marginally lower in Asian trade Thursday on some investor concerns that global oil oversupply hasn’t really been dented by slowing U.S. oil production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at $60.21 a barrel at 0323 GMT, down $0.29 in the Globex electronic session. June Brent crude on London’s ICE Futures exchange fell $0.24 to $66.57 a barrel. Oil prices were under pressure despite U.S. crude stockpiles falling for the second consecutive week, declining by 2.2 million barrels in the week ended May 8, official data showed. "The market may be able to shrug off this weakness and run higher, but the failure to rally on bullish news calls into question whether crude oil remains a bull market," analyst Tim Evans at Citi Futures said. Weekly U.S. gasoline and […]

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Oil slips, economic worries offset U.S. crude stocks draw

SINGAPORE Oil slipped on Thursday as weak data from the world’s top economies raised concern about the outlook for global fuel demand, offsetting data that showed a large drawdown in U.S. crude stockpiles last week. China, the world’s top energy consumer, saw its economy losing more steam in April despite easier monetary policy, while Europe’s largest economy, Germany, slowed in the first quarter. In the United States, retail sales were flat in April, dampening hopes of a sharp rebound in growth in the second quarter. "We’ve had a round of very weak data in the last 24 hours and that’s offset the strength that we would normally expect to come through from a larger than expected draw in U.S. inventories," said Michael McCarthy, chief strategist at CMC Markets in Sydney. June Brent crude fell 18 cents to $66.63 a barrel as of 0623 GMT after settling 5 cents lower […]

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Oil glut worsens as OPEC market-share battle just beginning: IEA

LONDON A global oil glut is building as OPEC kingpin Saudi Arabia pumps near record highs in an attempt to win a market-share battle against stubbornly resistant U.S. shale production, the International Energy Agency (IEA) said on Wednesday. The West’s energy watchdog said in a monthly report that although higher-than-expected oil demand was helping to ease the glut, growth in global oil consumption was far from spectacular. As a result, signs are emerging that the crude oil glut is shifting into refined products markets, which could make a recent rally in oil prices unsustainable. "Despite tentatively bullish signals in the United States, and barring any unforeseen disruption elsewhere, the market’s short-term fundamentals still look relatively loose," said the IEA, which coordinates energy policies of industrial nations. Global oil production exceeds demand by around 2 million barrels per day, or over 2 percent, following spectacular growth in U.S. shale production […]

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Iran sees Bulgaria as a gas bridge to Europe

Iranian President Hassan Rouhani said Bulgaria may be in a position to serve as an energy bridge to Europe. File photo by Monika Graff/UPI TEHRAN, May 13 (UPI) — Bulgaria is in a geographical position to serve as a stepping stone for Iranian gas ambitions to reach Europe, the Iranian president said. Iranian President Hassan Rouhani reviewed the credentials of Bulgarian Ambassador to Tehran Christo Polendakov during a ceremony in the Iranian capital. Rouhani said his government viewed Bulgaria as a means to tap into the European energy market . "Bulgaria has a superior geographical status in southeastern Europe and it can act like a bridge between Iran and the European countries in all areas, including transfer of energy," the Iranian president said. Bulgaria last year suspended its role in a now-shelved Russian natural gas pipeline planned for Europe, South Stream, arguing it violated legal requirements in the European […]

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Saudi Arabia Promises to Match Iran in Nuclear Capability

Continue reading the main story Video Play Video|1:09 Obama Hosts Saudi Princes Obama Hosts Saudi Princes President Obama hosted Crown Prince Mohammed bin Nayef and Deputy Crown Prince Mohammed bin Salman of Saudi Arabia on Wednesday, a day before the Gulf Cooperation Council summit. By Associated Press on Publish Date May 13, 2015. Photo by Doug Mills/The New York Times. WASHINGTON — When President Obama began making the case for a deal with Iran that would delay its ability to assemble an atomic weapon, his first argument was that a nuclear-armed Iran would set off a “free-for-all” of proliferation in the Arab world. “It is almost certain that other players in the region would feel it necessary to get their own nuclear weapons ,” he said in 2012. Now, as he gathered Arab leaders over dinner at the White House on Wednesday  and prepared to meet with them at Camp […]

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Traces of Chemicals in Syria Add to Pressure on Obama to Enforce a ‘Red Line’

WASHINGTON — If President Obama hoped that the danger of chemical warfare in the Middle East receded when Syria gave up tons of poison gas, mounting evidence that toxic weapons remain in the strife-torn country could once again force him to decide just how far he is willing to go to enforce his famous “red line.” The discovery of traces of ricin and sarin in Syria, combined with the use of chlorine as a makeshift weapon in the country’s grinding civil war, undercut what Mr. Obama had viewed as a signal triumph of his foreign policy, the destruction of President Bashar al-Assad ’s chemical arsenal. But Mr. Obama appears no more eager to use military force against Mr. Assad’s government today than he was in 2013 when he abruptly called off a threatened airstrike in exchange for a Russian-brokered agreement in which Syria voluntarily gave up its chemical weapons. […]

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Nigeria: Crude Oil Prices Rise Higher Than 2015 Budget Benchmark

Crude oil prices have continued to be on an upward swing in the last few days, signalling hope of better economic fortunes for Nigeria and other Organisation of Petroleum Exporting Countries (OPEC). Brent crude futures rose towards $66 yesterday, which is far above the approved $53 per barrel benchmark for crude oil in Nigeria’s 2015 budget. The price of OPEC basket of 12 crudes stood at $62.03 a barrel on Monday, while it recorded $62.44 the previous Friday. June Brent crude was up 88 cents at $65.79 (£42.02) a barrel by 14.52 London time, easing back from an intraday high of $66.45 a barrel. June West Texas Intermediate (WTI) rose 58 cents to $59.83 a barrel, after touching $60.55 a barrel earlier in the day. Meanwhile, OPEC has warned against price speculators, accusing them of contributing to the uncertainty in crude oil prices. Speaking on the recent uncertainty in […]

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Indian Prime Minister Prods Coal Monopoly

State-run Coal India has failed to keep pace with the country’s demand for electricity. Prime Minister Narendra Modi wants to whip the giant mining outfit into shape. Photo: Sanjit Das/Bloomberg News BEJDIH, India—Prime Minister Narendra Modi wants to end decades of crippling electricity shortages and turn this country into a manufacturing dynamo. At the state-run behemoth’s mine here, men still move coal in baskets on their shoulders. At another project, electricity is so unreliable miners descend in a steam-powered elevator. One giant mine that opened last year runs at a fraction of capacity because a rail line to haul its coal is mired in bureaucracy. Committees and economists have long studied how to whip Coal India, the world’s largest producer of the fuel, into shape. Labor unions and their allies oppose ideas such as breaking the company into smaller units or privatizing it. Mr. Modi is taking a gradual […]

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China reduces oil product export quotas in second quarter: traders

SINGAPORE Beijing has cut the pace at which it is allowing Chinese refiners to ship out oil products this year by more than 40 percent in its second quarter review of annual export volumes, traders familiar with China’s oil markets said on Wednesday. China controls oil product exports through quotas to state-run refiners after assessing domestic needs. Sinopec Corp, CNOOC Ltd and China National Petroleum Corp (CNPC) [CNPET.UL] were given an additional oil product export quota of 5.6 million tonnes for the year, down from the 9.75 million tonnes initially awarded for the year in the first quarter. The state refiners could not be reached for official comment on the matter. The refiners can usually apply for more allowances once initial quotas are used up. The quotas are typically given every quarter after a review of domestic supply and demand balances. The drop in the volumes issued this quarter […]

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Japan Struggles to Find Balanced Energy Strategy

ENLARGE Protesters rally in Tokyo on May 1 in opposition to nuclear power. The government’s 15-year energy strategy calls for restarting most of the country’s nuclear reactors, which were taken offline in the years after the Fukushima disaster. Photo: European Pressphoto Agency TOKYO—Four years after the Fukushima nuclear disaster, Japan is finding old energy habits hard to shake. The government’s tentative energy plan for the next 15 years seeks to significantly increase renewable sources, but will still draw heavily on the country’s traditional energy suppliers: unpopular nuclear power and imported fossil fuels. Defenders of the energy strategy, released late last month, say it’s a balanced approach for a country with few natural resources of its own. Critics say it’s a blown opportunity for a bolder move toward energy self-sufficiency and future economic growth through the development of Japanese companies’ energy technologies. With Japan’s nuclear reactors shut down in the […]

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Drilling To Start at Macondo Reservoir

NEW ORLEANS (AP) — Deep-water drilling is set to resume near the site of the catastrophic BP PLC well blowout that killed 11 workers and caused the largest U.S. offshore oil spill five years ago off the coast of Louisiana. A Louisiana-based oil company, LLOG Exploration Offshore LLC, plans to drill into the Macondo reservoir, according to federal records reviewed by The Associated Press. Harper’s Magazine first reported the drilling plans late Tuesday. LLOG’s permit to drill a new well near BP’s site was approved April 13 by the Bureau of Safety and Environmental Enforcement, which oversees offshore oil and gas drilling operations. The company’s exploration plan was approved last October following an environmental review by a sister agency, the Bureau of Ocean Energy Management. The company, a privately owned firm, will be looking to extract oil and gas deep under the Gulf of Mexico’s seafloor, an undertaking that […]

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Trican Well Service Cuts 2,000 North American Jobs

Trican Well Service Ltd., headquartered in Calgary, reduced its North American workforce by approximately 2,000 as a result of cost-cutting measures initiated in late 2014. The global well service company reported its 1Q results for 2015 Tuesday, which included 26 percent decrease in consolidated revenue from 1Q of 2014. According to the report, the company’s Canadian operations generated 1Q revenue of $222.7 million and operating income of $7.8 million for 2015, compared to $353.3 million and $62.5 million, respectively, for 1Q results in 2014. Its 1Q Canadian results were “negatively impacted by reduced customer activity caused by low commodity prices.” There was a sharp decline in activity levels in late February that remained low throughout the remainder of the first quarter. Similarly, U.S. operations generated $201.4 million, a 41 percent decrease from a year prior, in revenue for 1Q of 2015. The report cited “a weak U.S. operating environment […]

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North Dakota Posts Surprising Jump In Oil Output In March

North Dakota posted a surprising jump in oil and natural gas output in March, as producers leaned on newer technologies and processes to offset a slump in commodity prices. WILLISTON, N.D., May 13 (Reuters) – North Dakota posted a surprising jump in oil and natural gas output in March, as producers leaned on newer technologies and processes to offset a slump in commodity prices. Many industry observers had expected output to fall for the third consecutive month in the wake of a more than 50 percent drop in oil prices since last summer. "We scratched our heads in the month of March" as to why production increased, Lynn Helms, director of the state’s Department of Mineral Resources, said during a conference call with reporters. Yet the increase shows producers’ willingness to wring efficiencies out of existing operations, as well as their attempt to maintain production, even at depressed prices, […]

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BP lets Thunder Horse expansion contract

BP Exploration & Production Inc. has let a contract to Technip covering pipeline systems for a southern expansion of ultradeepwater Thunder Horse oil and gas field on Mississippi Canyon Blocks 778 and 822 in the Gulf of Mexico. The project includes a new drill center 2 miles from the Thunder Horse semisubmersible production, drilling, and quarters platform in 6,050 ft of water, 150 miles southeast of New Orleans. Four wells will tie in to the drill center. BP expects production from the project to start in 2017 and peak at 42,000 boe/d. Under a lump-sum contract, Technip will handle design, engineering, fabrication, installation, precommissioning, and other services for two rigid production flowlines with four pipeline end terminations. Production from the Thunder Horse platform, which has capacity to handle 250,000 b/d of oil and 200 MMscfd of natural gas, began in June 2008. The field produces from Upper Miocene turbidite […]

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Bakken Data + Short Term Energy Outlook

North Dakota has published their Bakken Production Data as well as North Dakota Production Data . Bakken Production North Dakota production was up 12,501 bpd above February but still stands 37,531 bpd below the December high and is still 789 bpd below the January production numbers. Bakken BPD Per Well Barrels per day per well is dropping, 12o for Bakken wells, 99 forN.D. Total and 23 for Conventional wells. Bakken Wells Producing According to the NDIC stats the number of wells actually producing in the Bakken increased by 250 in March and total North Dakota wells increased by 236. Which means some non-Bakken wells were shut down. Lynn Helms said, in the Director’s cut, that the increase was 240 producing wells though his totals were different. Feb Producing Wells = 12,199 Mar Producing Wells = 12,439 (preliminary)(NEW all-time high) 9,397 wells or 76% are now unconventional Bakken – Three forks […]

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Two Illinois Municipalities Challenge New Oil-Train Rules

In the latest legal challenge to the federal government’s new crude-by-rail rules, two Illinois municipalities on Wednesday filed a petition asking a Chicago-based federal appeals court to review the rules, saying regulators didn’t go far enough. The village of Barrington and the city of Aurora jointly filed the petition, asking for the U.S. Seventh Circuit Court of Appeals to set aside and remand parts of the rules. The municipalities are specifically challenging an exemption that allows some trains to continue using dangerous older tank cars, as well as a phaseout schedule for certain tank cars hauling flammable liquids that they deem to be “unreasonably long.” They also want the rules to require railroads to provide electronic documentation of the contents of the train to emergency workers when an accident occurs. The Transportation Department didn’t immediately respond to a request for comment. The Federal Railroad Administration doesn’t comment on pending […]

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Shale-Oil Producers Ready to Raise Production

ENLARGE A Pioneer Natural Resources oil rig in the Eagle Ford shale region of Texas. The company said last week it hopes to increase drilling and add two new rigs per month from July if oil prices continue to rise. Photo: PIONEER NATURAL RESOURCES/BLOOMBERG NEWS After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices. Last week, EOG Resources Inc. EOG -1.94 % said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. OXY -0.67 % boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent settled at $66.81. An increase in U.S. production, coupled […]

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Has the Bakken Peaked?

U.S. Shale Production |Energy Information Administration The Energy Information Administration ( EIA) is predicting that oil production in the Bakken will begin to decline in June. Shale producers have been reducing rigs, cutting budgets and laying off workers for months to compensate for low crude prices. Over the past year, the Bakken rig count has dropped by more than half, but until now production has remained at record levels, with the EIA reported 1.2 million barrels a day in February. Related: Record Production for Bakken In the EIA’s monthly productivity report for May, the agency reports that oil and gas production has probably peaked and they expect a 31,000 Mbbl/d drop in oil and 30,000 MMcf/d f drop for natural gas throughout June. The Bakken had 80 oil rigs running last week zero gas rigs. WTI oil prices continued to climb trading at $59.39/bbl on Friday afternoon, a $.63 […]

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Battered U.S. oil firms scramble to delay looming retirement wave

NEW YORK After 20 years in the oil business, Craig Reed, 62, is thinking about winding down his career just as a second downturn in six years rocks the industry. Reed is part of the baby boomer generation that forms the backbone of the U.S. oil workforce and now weighs retirement as energy firms cut spending and shelve projects. That is a worrying prospect for company executives keen to keep their most experienced workers while they ride out the oil market slump. "Between the politics and uncertainty and cost cutting, a lot of people of my age are saying that it isn’t worth it anymore," says Reed who draws up engineering and construction contracts for major energy projects worldwide. "Many of us could handle the downturn in 2008, but when the volatility comes back so quickly, and in a different form, it is difficult to take." For him, it […]

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LNG slated for U.S. exports

Texas plant cleared to send LNG to countries that don’t have a free-trade deal with the United States. Photo by Stephen Shaver/UPI WASHINGTON, May 13 (UPI) — A plant in Texas is authorized to send liquefied natural gas to countries that don’t have a free-trade deal with the United States, the federal government said. The Energy Department gave authorization to the Corpus Christi Liquefaction Project to export LNG sourced from domestic reserves to countries that don’t have free-trade deals. The plant is approved to export as much as 2.1 billion cubic feet of gas per day for the next 20 years. "The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our energy security while spurring economic development and job creation around the country," the Energy Department said. The U.S. Energy Information Administration in a November report said the […]

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U.S. oil execs see little hope for crude price bounce this year: survey

NEW YORK Nearly half of U.S. oil and gas company executives expect Brent crude oil prices to remain below $60 a barrel this year, and a third believe price volatility will extend into 2016, according to a KPMG survey released Wednesday. The survey, which canvassed nearly 200 senior U.S. energy executives, comes amid an oil industry slowdown caused by oversupply and spiraling prices, and as the oil market mulls whether prices and activity will rebound in the coming months. The survey showed that 45 percent of respondents expect an average Brent price of between $50 and $59 a barrel this year. Brent has averaged $57.59 a barrel so far this year and traded at around $67 on Wednesday, according to Reuters data. The outlook represented a major change from last year, when 94 percent of executives expected the oil price would be $100 or higher. Brent crude averaged around […]

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U.S. set to get more accurate oil production data: Kemp

LONDON "The data must be wrong," according to veteran oil analyst Phil Verleger, who wrote in a blistering note that the Energy Information Administration is probably overestimating U.S. oil production by 1.6 million barrels per day. Verleger argues substantially lower U.S. production is the most likely explanation for why global stocks are not rising as fast as predicted and discounts for storing barrels are narrowing ("Notes at the margin" May 11). Other reasons why the stock build is smaller and the forward price structure is firmer could be stronger demand and/or more oil stockpiling in developing countries. But if Verleger is correct, U.S. production would be only 7.7 million barrels per day (bpd) compared with the 9.3 million bpd reported in the agency’s most recent weekly and monthly statistics. The global oil market would be nearly balanced, since most estimates put the global supply surplus at between 1.5 and […]

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U.S. oil stockpiles slide again, but refiners ease up: EIA

NEW YORK U.S. crude oil stocks fell for a second consecutive week following four months of steady gains, even though refiners pared back record seasonal rates and imports jumped, U.S. data showed on Wednesday. Oil prices initially extended gains after the Energy Information Administration (EIA) data, but then quickly pulled off highs, with U.S. crude futures briefly trading in negative territory as analysts struggled to explain a report that seemed to have few bearish qualities. Crude inventories fell 2.2 million barrels in the week to May 8, compared with analysts’ expectations for an increase of 386,000 barrels. Gasoline and distillate inventories also declined. Crude stocks at the Cushing, Oklahoma, delivery hub fell 990,000 barrels, EIA said. "The only bearish element may be the down tick in refinery utilization which may allow crude oil inventories to resume building in future reports," said John Kilduff, partner, Again Capital LLC in New […]

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What would it take to free U.S. oil exports?

WASHINGTON Lawmakers pushing to repeal the 1970s-era ban on U.S. oil exports face a steep obstacle: The Obama administration sees no need to fully remove the restriction while the country is still importing part of its oil supply. And many politicians are wary of a voter backlash if gasoline prices go up just as they open the door to exports. However, Senator Lisa Murkowski, the Republican head of her chamber’s energy committee, is expected to introduce a bill as soon as Tuesday night that would lift the ban Congress passed in 1975 after the Arab oil embargo created fears of global shortages. While there is plenty of resistance in Congress against lifting the ban, the prospects for a reversal could improve under some of the following conditions: THE US OIL PRICE DROPS FURTHER Mainly because of the U.S. oil glut, domestic crude producers now get about $6 a barrel […]

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European growth lifts crude oil prices

European economy beats the United States in the first quarter in terms of GDP gains, supporting crude oil prices in trading Wednesday. File Photo by canadastock/Shutterstock NEW YORK, May 13 (UPI) — Signs of life in the European economy trumped concerns about an energy market tilted toward the supply side, lifting crude oil indices in Wednesday trading. Eurostat, the statistical office of the European Union, said seasonally adjusted gross domestic product increased by 0.4 percent for the 19 central economies in the region during the first quarter of the year. That’s up from the 0.3 percent growth in the fourth quarter and 1 percent higher than the first quarter of 2014. Quarterly, the European economy grew faster than the United States, though U.S. GDP is up 3 percent year-on-year, Eurostat said. The Organization of Petroleum Exporting Countries said in its latest monthly market report world economic demand was revised […]

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Is The Shale Oil Production Peak The Key Inflection Point For The Stabilization And Continual Rise Of Oil?

Summary The U.S. has lost 1 percent of its shale oil production this month. Oil production from the major U.S. shale plays is expected to fall 86,000 bpd in June of 2015. The supply of oil worldwide still is higher than the worldwide demand for oil. Has there been a production peak at the notable Eagle Ford and Bakken shale play areas? According to the most recent EIA report the former statement could yield a yes. The EIA has forecasted that oil production from the seven major U.S. shale plays which include Bakken, Eagle Ford, Utica, Niobrara, Marcellus, Haynesville and Permian, will fall by 86,000 bpd in June of 2015. This month the U.S. has lost 1 percent of its shale oil production, and most analysts believe that this is just the beginning. On Wednesday, May 13, 2015, oil rose toward its five month high. The factors contributing to […]

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The oil crash: something wicked this way comes

The recent oil price crash signals the impending demise of the oil and gas industry as a major world energy producer. That should be a good thing, in principle, but something wicked may still come out of the process. With the ongoing collapse of the oil prices, we can say that it is game over for the oil and gas industry, in particular for the production of “tight” (or “shale”) oil and gas. Prices may still go back to reasonably high levels, in the future, but the industry will never be able to regain the momentum that had made its US  supporters claim “energy independence” and “centuries of abundance.” The bubble may not burst all of a sudden, but it surely will deflate. So, what’s going to happen, now? The situation is, to say the least, “fluid”. A great rush is ongoing to convince investors to place their money […]

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Oil Extends Gains, Trades Near Year High

May 13, 2015 12:50 a.m. ET By Eric Yep Oil prices extended gains from the previous session and are trading near their highest level this year, helped by a weak U.S. dollar, bullish demand projections and signs of slowing U.S. oil production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at $61.22 a barrel at 0301 GMT, up $0.47 in the Globex electronic session. June Brent crude on London’s ICE Futures exchange rose $0.31 to $67.17 a barrel. Crude-oil prices have had a strong and "uncanny" correlation with the U.S. Dollar Index in recent weeks, and the reversal in the greenback has been a key catalyst for the run-up in oil prices since April, Morgan Stanley’s Adam Longson said. With the U.S. dollar well off its highs and given a bullish outlook, any future rally in the dollar could see a modest […]

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Natural Gas Hits Seven-Week High on Signs Oversupply May Wane

May 12, 2015 4:17 p.m. ET By Timothy Puko Natural-gas prices rose to a seven-week high as warm weather and slowing production are causing a rally by forcing bearish traders to cut their positions. Prices for the front-month June contract settled up 9.5 cents, or 3.4%, at $2.897 per million British thermal units on the New York Mercantile Exchange. It is the highest closing price since March 18. Gas is also nearing a bull market, rising more than 16% since it closed at a 2 1/2-year low on April 27. This week’s weather forecasts have sparked more optimism than the ones from late last week, Dominick Chirichella, analyst at the Energy Management Institute, said in a note. Forecasts show warmer-than-normal temperatures settling in over the entire East Coast and large parts of the Midwest for most of the second half of May, raising expectations that power plants could burn […]

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Crude oil prices holding steady

Markets start Tuesday in a state of confusion as OPEC delays the release of its monthly oil market report. UPI/Maryam Rahmanian NEW YORK, May 12 (UPI) — Crude oil prices retreated from early gains Tuesday amid market uncertainty following delays in the release of a monthly market report from OPEC. Oil prices pulled back from an early May rally as traders awaited reports on whether the world economy was pushing markets toward the demand side. Oil prices fell by more than half their June highs above $100 per barrel in early 2014 as crude oil continued to build up in storage as the global economy failed to gain traction. A survey last week from Platts showed the Organization of Petroleum Exporting Countries increased production in April by 210,000 barrels per day to 30.9 million bpd. Tacit OPEC leader Saudi Arabia, which saw an increase in production, said last month […]

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Oil prices drop on high Saudi output, Goldman expects more falls

SINGAPORE Oil prices dipped on Tuesday as Saudi Arabia reported strong crude production figures and U.S. investment bank Goldman Sachs warned of further oil price declines. Tuesday’s falls continued price declines on Monday and the previous week, and they came after Brent climbed 40 percent from its January lows, with many analysts saying upward momentum looks to have come to an end as production around the world continues to outpace demand. Top oil exporter Saudi Arabia pumped 10.308 million barrels of oil per day in April, slightly less than in March but still close to record highs. Goldman Sachs said in a note that the recent price rally itself prevented a reduction of oversupply and would therefore lead to lower prices going forward. "While low prices precipitated the market rebalancing, we view the recent rally as premature with crude oil prices expensive relative to current and forecast fundamentals," the […]

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Natural gas generation poised to nearly equal coal in April, May: US EIA

Generating power with natural gas will come close to equaling generation from coal in April and May, the US Energy Information Administration predicts in its May Short-Term Energy Outlook report, released Tuesday. Coal and gas generation are expected to make up 31.7% and 30.7%, respectively, of all generation in the US in April, EIA said. For May, EIA predicts coal to make up 33% of all generation and gas to account for 31.6%. Recent low gas prices have significantly increased the use of the fossil fuel rather than coal for generation, the EIA said, with utility switching in April and May resulting in the closest convergence in generation shares between the two fuels since April 2012, when gas prices neared record lows. Coal consumption in the electric power sector will fall 6% in 2015, making up 35.8% of all generation, the EIA said. The use of gas-fired generation is […]

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OPEC oil output boost keeps supply surplus despite higher demand

LONDON OPEC said its oil output rose further in April, keeping an excess supply in the market despite stronger demand and signs the producer group’s strategy of letting prices fall to hurt other producers is taking effect. In a monthly report on Tuesday, OPEC said demand for its oil this year would be 50,000 barrels per day (bpd) higher than previously thought, thanks to a slightly lower supply forecast for countries outside the group. Oil prices have almost halved from $115 a barrel in June 2014, in a decline OPEC officials have said is stimulating fuel use. The report made a small upward revision to forecast oil demand growth in 2015 and was upbeat about the outlook. "Despite the slow start in some countries, world economic growth could strengthen further as the year progresses, leading to an improvement in crude oil demand in 2015," the report said. Last year, […]

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Volatile Oil Market May Hurt Global Economy

ENLARGE Wind turbine blades are assembled on the ground before being placed on top of a tower at a wind farm in Uruguay. A new report Tuesday warns oil price volatility threatens the global economy and urges policy makers to support renewable energy. Photo: Bloomberg News LONDON—The dramatic fall in oil prices since last summer has been a boon for global consumers taking advantage of cheaper fuel and lower utility bills. But the price rout has increased the volatility of the crude market, which could end up hurting the global economy, a new report warns. Volatile energy prices can lead to delays in business investment and slower job growth, according to the report co-authored by Nicholas Stern, former U.K. Treasury official and a prominent climate economist. The “Oil Prices and the New Climate Economy” report will be published later Tuesday by the Global Commission on the Economy and Climate, […]

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U.S. set to get more accurate oil production data: Kemp

LONDON "The data must be wrong," according to veteran oil analyst Phil Verleger, who wrote in a blistering note that the Energy Information Administration is probably overestimating U.S. oil production by 1.6 million barrels per day. Verleger argues substantially lower U.S. production is the most likely explanation for why global stocks are not rising as fast as predicted and discounts for storing barrels are narrowing ("Notes at the margin" May 11). Other reasons why the stock build is smaller and the forward price structure is firmer could be stronger demand and/or more oil stockpiling in developing countries. But if Verleger is correct, U.S. production would be only 7.7 million barrels per day (bpd) compared with the 9.3 million bpd reported in the agency’s most recent weekly and monthly statistics. The global oil market would be nearly balanced, since most estimates put the global supply surplus at between 1.5 and […]

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EIA forecasts higher global oil consumption growth

HOUSTON, May 12 In its most recent Short-Term Energy Outlook (STEO), the US Energy Information Administration expects global oil consumption to rise by 1.2 million b/d in 2015 and by 1.3 million b/d in 2016, upward from last month’s STEO by an average of 200,000 b/d in both 2015 and 2016, as lower oil prices stimulate demand growth more than previously expected. EIA estimates production outside the Organization of Petroleum Exporting Countries to rise by 800,000 b/d in 2015 and by 400,000 b/d in 2016, reflecting slower production growth in the US and Canada, as well as declining production in Europe and Eurasia. is expected to rise by 400,000 b/d in 2015 and fall by 200,000 b/d in 2016. Forecast OPEC crude oil production was revised upward from last month’s STEO by 300,000 b/d in 2015 and by 200,000 b/d in 2016, with Iraq being the largest contributor to […]

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Oil Prices Gain on OPEC Report

Updated May 12, 2015 1:08 p.m. ET By Nicole Friedman and Georgi Kantchev Oil prices extended their gains Tuesday after the Organization of the Petroleum Exporting Countries raised its forecast for oil-demand growth this year. Light, sweet crude for June delivery recently rose $1.74, or 2.9%, to $60.99 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained $2.07, or 3.2%, to $66.98 a barrel on the ICE Futures Europe exchange. The cartel of oil producers said in a monthly report released Tuesday that it expects oil demand to increase by 1.18 million barrels a day, an increase of 50,000 barrels a day from its forecast last month. OPEC also raised its expectations for demand for its own oil this year. However, the group still expects its production to exceed demand for its oil next year. Write to Nicole Friedman at [email protected] By Nicole Friedman […]

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Inspectors in Syria Find Traces of Banned Military Chemicals

Photo Villagers in Syria headed away from what activists said was a chlorine gas attack this month in insurgent-held areas. Credit Abed Kontar/Reuters International inspectors have found traces of banned toxic chemicals in at least three military locations in Syria , four diplomats and officials said, less than two years after President Bashar al-Assad agreed to dismantle the country’s chemical arsenal. Traces of sarin, a nerve agent, were found in drainage pipes and in artillery shells in two places, and traces of another banned toxin, ricin , were found in a third location, a scientific research center, according to a United Nations diplomat, who spoke on the condition of anonymity to discuss confidential reports from the inspectors. The discovery of the small amounts of banned materials, first reported by Reuters, comes as Syrian government forces are being accused of continuing to bombard insurgent-held areas with chlorine bombs. Taken together, […]

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Iraq oil production rising, but not as high as hoped

A worker climbs a drilling rig at the Rumaila oil field. (BEN VAN HEUVELEN/Iraq Oil Report) Recommend 7 people recommend this. Sign Up to see what your friends recommend. At Rumaila, Iraq’s most prolific oil field, the development budget has been slashed this year by $1 billion – the latest sign that Iraq is tempering its long-term oil production ambitions.Even as the country works to raise production and export capacity – Iraq sold record amounts of oil in March and April – the increases are smaller than many anticipated, including Iraqi policymakers. Their ambitions have been chastened by reduced oil prices, a financial crisis, infrastructure delays a…

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OPEC denies WSJ article on oil price outlook, quotas

LONDON The Organization of the Petroleum Exporting Countries denied a Wall Street Journal story which said the producer group saw oil prices below $100 a barrel in the next decade. "The article refers to a number of scenarios, including crude oil price assumptions out to 2025, and also claims the report recommends a return to a production quota system," OPEC’s headquarters said in the statement. "The OPEC Secretariat would like to stress that these and other statements made in the WSJ article have no basis whatsoever." It is rare for OPEC to publicly deny press articles about the organization. (Reporting by Alex Lawler , editing by William Hardy)

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Saudi Arabia’s April crude output hits record high

DUBAI Top global oil exporter Saudi Arabia raised its crude production in April to a record high, feeding its flourishing Asian market share and its own power plants and refineries. The world’s top oil exporter pumped 10.308 million barrels of oil per day in April, a Gulf industry source told Reuters on Tuesday, compared to 10.29 million bpd in March. "This is an indication of strong demand, especially from Asia, as well as increasing domestic consumption during summer," the source said. The increase underlined Saudi Arabia’s determination not to cede market share to higher-cost producers, such as U.S. shale drillers. The kingdom and others in the Organization of Petroleum Exporting Countries (OPEC) had resisted cutting production to shore up oil prices. It also highlights the strength of global demand, which has helped lift refinery profit margins to their highest in years. Oil Minister Ali al-Naimi has said the kingdom’s […]

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Saudis Boosted Oil Output in April as U.S. Idled Rigs

Here’s Why the Oil Rally Might Not Last Saudi Arabia boosted crude oil production for a second month to the highest level in at least three decades, helping to raise OPEC output as U.S. supply growth showed signs of slowing. The Middle Eastern country increased crude output by 13,700 barrels a day in April to 10.308 million, according to data the country communicated to the Organization of Petroleum Exporting Countries’ secretariat in Vienna. Prices collapsed by almost half last year as Saudi Arabia led OPEC in maintaining production rather than cede market share to booming U.S. supply. The group has become more unified about keeping its output target because prices are now rising, according to Kuwait’s oil minister. Crude in New York has surged more than 40 percent from its March low as U.S. drillers pulled a record number of rigs from fields. “The Saudis must be content that […]

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Colombian oil exploration activity in Q1 sinks 83% from prior year: trade group

Exploration drilling in Colombia’s oil patch in the first quarter fell 82.5% compared with the year-ago period, while seismic exploration sank by an even steeper 92%, the Colombian Petroleum Association (ACP) said Tuesday. Speaking at a press conference in Bogota, ACP president Francisco Jose Lloreda issued another in a series of recent appeals to the government to enhance the royalty and tax incentives available to wildcatters or face the possibility of declining production and reserves in coming years. "Without tax incentives, it will not be feasible to reactivate exploration and current production levels of 1 million b/d, which would impact state revenue even more," Lloreda told reporters. He said only nine exploratory wells were drilled in Q1, down from 52 drilled in the year-ago period. Seismic exploration totaled 800 square kilometers, down from 10,000 sq km. Lloreda acknowledged that the Colombian government had made some moves in recent months […]

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