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Global Oil Demand Rising, IEA Says

Low oil prices and economic growth have helped drive up consumer demand for energy across the world in 2015, the International Energy Agency said Thursday, a phenomenon seen from U.S. gasoline stations to Chinese auto dealerships. The IEA’s closely watched oil-market report lent some support to an idea pushed by the Organization of the Petroleum Exporting Countries and other producers: that collapsing oil prices would spur more consumer demand and eventually send prices back up. The benchmark U.S. oil price hit a six-month high on Wednesday. The IEA said world demand for oil would increase by 1.4 million barrels a day this year, 300,000 barrels a day faster than it previously forecast, to a daily average of 94 million barrels this year. Global demand in 2014 was about 92.6 million barrels a day, the IEA said. That was driven in part by gasoline-demand growth of 4.2% in the U.S., […]

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The IEA Oil Market Report

mb/d World Oil Demand *Please note that these Highlights are from the latest Oil Market Report, which is released in full to subscribers only – according to this schedule each month . Non subscribers get free access to the latest Highlights on this schedule, however the full Oil Market Report is released to the public two weeks after the report is released to subscribers. If you would like to receive the full report with accompanying charts and graphs on the day of publication please subscribe or contact the subscription manager . Product market strength and rising tension throughout the Middle East supported global crude oil prices in May and through early June. At the time of writing, ICE Brent was trading at around $65.95/bbl, while US WTI was at $61.50/bbl. Global oil supplies fell by 155 kb/d in May to 96 mb/d on lower non-OPEC output, but remained at […]

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U.S. Considers Opening Network of Bases in Iraq

WASHINGTON—The Obama administration is considering opening a network of new bases in Iraq like the hub being established west of Baghdad, the nation’s top military officer said, something that would deepen the U.S. role in the war against Islamic State. Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, outlined the possibility of several new bases across Iraq as the U.S. looks for ways to help Baghdad gain the upper hand against the extremist militants. Each base could require additional U.S. troops, but it was unclear how many or whether an overall troop increase would be needed. Gen. Dempsey’s comments, to reporters accompanying him on a trip to the Middle East and Europe on Thursday, come a day after the White House formally announced a plan to open a new training site in Anbar province , west of Baghdad. The U.S. will deploy up to 450 new troops […]

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Nigeria: Country’s Crude Oil Production Rises By 230,900 BPD

Nigeria’s crude oil production output for May, increased by 230,900 barrels per day (bpd), according to the monthly oil market report of the Organisation of Petroleum Exporting Countries (OPEC) released on Wednesday. Specifically, the country’s production output, based on direct communication, rose from 1.650 million barrels per day in April to 1.881 million bpd in May. The country’s crude oil production output for April had earlier increased by 19,000 bpd, while the figure based on secondary sources, put the rise in April at 1.886 bpd from 1.867 bpd recorded in March According to the report, production by member countries in May rose by 24,000 barrels per day (bpd), due to increases in Iraq and Angola and record output in top exporter Saudi Arabia. OPEC said it expected that the world’s oversupply of crude oil to ease over the coming quarters. "The projections for market fundamentals indicate that the current […]

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Mexico’s Pemex unveils large oil find

The Mexican state oil company Pemex has announced one of its biggest discoveries in years, unveiling new shallow water oil fields in the southern Gulf of Mexico that it says could produce 200,000 barrels per day by mid-2018. The total proven, probable and possible reserves of the fields could be as high as 350m barrels of crude-oil equivalent, said Pemex’s chief executive officer, Emilio Lozoya. The new fields off the coast of Tabasco and Campeche states comprised three of light crude and one of heavy crude, and could start coming onstream in 16 months, Pemex said. “It’s a recent achievement and one of great magnitude,” Lozoya said. The fields would take around three years to reach their full 200,000 barrel per day capacity, said Jose Antonio Escalera, director of exploration for Pemex. Pemex described the finds as its biggest exploration success in the last five years after the discoveries […]

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Hugo Chavez’s Legacy: One of the Worst Crime Rates in the World

For years in Caracas, as in most cities, the sun went down before the bars lit up. No more. Stop by La Cita, a Spanish-style pub near the heart of downtown, and find clients like Freddy Barraiz, an upstanding 64-year-old physician, knocking back glasses of wine in bright sunshine. “It’s like a race against time,” Barraiz said. “By 6:00, you start to get nervous.” With shootings and kidnappings an almost daily occurrence in this city once known for animated nightlife, crowds at restaurants and clubs thin out at dark. Businesses are cutting back hours and accommodating earlier crowds. “What keeps us going is lunch,” lamented La Cita’s owner, Javier Lopez. Venezuela was never crime-free. But long-standing problems in law enforcement have been exacerbated by erratic policies of the late Hugo Chavez, who favored military force over traditional policing. Since soldiers have little training in delinquency control, crime has exploded […]

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U.S. fracking rules to face early legal test

WASHINGTON Energy industry groups and states that oppose new U.S. rules for hydraulic fracturing on public lands are headed to court this month to try to block the regulations a day before they are to take effect. Foes of the regulations will go before a federal judge on June 23 to seek a preliminary injunction. The Interior Department rules, slated to take effect on June 24, would require companies to provide data on chemicals used in hydraulic fracturing, or fracking, and to take steps to prevent leakage from oil and gas wells on federally owned land. This is the "first tranche in this battle," said Dan Naatz, senior vice president for government relations at the Independent Petroleum Association of America (IPAA), one of the groups seeking the injunction. Fracking involves injection of large amounts of water, sand and chemicals underground at high pressure to extract fuel. Environmental groups and […]

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U.S. should ditch ‘outdated’ oil export ban: Harvard

BOSTON The United States must lift an "outdated" ban on oil exports to take full economic and geopolitical advantage of its hydraulic fracturing boom, according to a study by Harvard Business School and Boston Consulting Group released on Wednesday. Lifting the 40 year-old ban imposed after the Arab oil embargo and easing restrictions on liquefied natural gas export terminals would add $23 billion to the economy by 2030, create tens of thousands of jobs, and provide the United States with additional clout overseas, the paper said. "Our energy resources have given the U.S. important new diplomatic tools that can aid allies and counteract the ability of unfriendly countries to use oil and gas access to achieve political aims," according to the research authored by Harvard Business School Professor Michael Porter and Boston Consulting Group’s David Gee and Gregory Pope. "Today, the ban on crude exports … is reducing market […]

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Total U.S. oil production increases

Federal data show total U.S. crude oil production increasing, hitting 9.6 million bpd for the week ending June 5. Photo by photostock77/Shutterstock WASHINGTON, June 11 (UPI) — Total U.S. crude oil production reached 9.6 million barrels per day, with output from the Lower 48 states showing some recovery, federal data show. The total U.S. crude oil production for the week ending June 5 was about a quarter of a percent higher than the previous week. The U.S. Energy Information Administration reports 9.1 million bpd came from the Lower 48 and 509,000 bpd came from Alaska, which in the EIA’s last report was the lone standout in production gains. Though Alaska is the No. 4 oil producer in the nation, its production is in decline as many state reserve areas reach maturation. The low price of crude oil has left energy companies with less cash for exploration and production. The […]

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Efficiency moderates effects of higher electricity prices under proposed Clean Power Plan

graph of residential electricity prices and expenditures, as explained in the article text Republished June 11, 2015, 9:30 a.m. to clarify expected electricity generation differences in certain regions. EIA’s recently released analysis of the Environmental Protection Agency’s proposed Clean Power Plan (CPP) rule finds that electricity prices are expected to rise. However, efficiency and price-induced conservation moderate the projected increase in consumer electricity bills. Implementation of the proposed rule causes electricity prices to increase compared with prices projected in Reference case (baseline) as new generating capacity is built and operated and as investments are made to improve the operating efficiency of existing electric generators. As coal-fired generators are retired, the increased use of natural gas for generation leads to higher natural gas fuel prices. Demand-side energy efficiency (EE) is another compliance option for emissions reductions under the proposed plan. Electric utilities and government programs can create incentives for consumers […]

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