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Bakken April Production Data

The North Dakota Industrial Commission is out with the April production Data for the Bakken and all North Dakota . Eight month of flat to down production from the Bakken. Bakken Amplified I have shortened the data to 16 months here to give a better picture of what is really happening. North Dakota reached an 8 month low. North Dakota, in April, was 17,631 barrels per day below their September 2014 production. The Bakken was only 11,024 below September 2014 so conventional wells seem to be dropping off pretty fast. The Baken is 54,599 bpd below their peak in December and all North Dakota is 59,385 bpd below their December Peak. As usual there was very little adjustments in the previous months data. Bakken March production was adjusted down by 114 barrels per day while North Dakota production was adjusted down by 81 barrels per day. Bakken BPD Per […]

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BHI: US rig count continues fall in 27th straight week

The US drilling rig count declined 9 units during the week ended June 12 to settle at 859 rigs working, according to data from Baker Hughes Inc. After 22 straight weeks of double-digit and near triple-digit declines, the count over the past 5 weeks has dropped by an average of just 7 rigs/week. It has now fallen in 27 consecutive weeks overall, during which time it has lost 1,061 units ( OGJ Online, Dec. 5, 2014 ). Compared with this week a year ago, the count is down 995 units. An energy update earlier this week from Raymond James & Associates indicated that the number of weekly well permits issued in the US last week, using a 4-week average, was flat compared with the prior week. A primary indicator of rig count activity, 865 permits were issued last week, up from 839 during the previous week. However, the 4-week […]

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Study: US Can Profit from Unconventionals While Protecting Environment

Contrary to popular belief, the United States can capture the full economic benefits of unconventional gas and oil while also substantially addressing local environmental impacts and making major strides toward a lower-carbon energy system. But stakeholders must let go of the misconceptions, historic rivalries, and distrust that have led to zero-sum mindsets and slow progress, according to a recent report from Harvard Business School (HBS) and The Boston Consulting Group (BCG). The report, America’s Unconventional Energy Opportunity, offers a comprehensive plan to overcoming the “false trade-offs between reaping the enormous economic benefits of developing unconventional gas and oil, minimizing environmental impacts, and making major progress towards reduced greenhouse gas emissions.” U.S. unconventional oil and gas development, which has eliminated the need for natural gas imports and reestablished the United States as the world’s second largest oil producer for the first time since 1991, offers the United States the largest […]

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Wall Street falls as Greece crisis unresolved; energy shares dip

U.S. stocks fell on Friday as Greek debt talks hit a stalemate and as concern over how soon the Federal Reserve might raise interest rates kept investors cautious. Energy shares dropped as oil prices fell for a second straight day. The energy index .SPNY, down 1.2 percent, led the day’s decline, followed by a 1.1 percent drop in the healthcare index .SPXHC. Upbeat consumer sentiment and other data added to views the economy may be regaining momentum, which increased anxiety for investors ahead of next week’s Federal Open Market Committee meeting, the U.S. central bank’s last meeting before September. Also of concern, a day after the International Monetary Fund quit bailout talks with Greece, EU officials said they had held their first formal discussions on the worst-case scenario for the country. "It’s the Greek situation again, and that’s been played out on a day-to-day basis, where you had a […]

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Oil prices fall after Saudis say could raise output to meet demand

SINGAPORE Oil futures dipped on Thursday, with U.S. crude retreating further from a one-month peak of almost $62 a barrel earlier this week, after Saudi Arabia said it was ready to raise output further to meet strong demand. U.S. crude prices hit a high of $61.82 a barrel earlier this week, their strongest since May 6, as firm demand and a stock drawdown lifted the market. But the rally was halted by a dimming global economic outlook as well as top crude exporter Saudi Arabia saying it was ready to increase its oil output in the coming months to a new record to meet a rise in global demand. Front month U.S. crude CLc1 had fallen 25 cents to $60.52 a barrel by 0035 GMT. Brent futures LCOc1 were down 29 cents at $64.82 a barrel. (Reporting by Henning Gloystein ; Editing by Ed Davies )

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Oil Data Not Keeping Up as Market Adjusts to Low Prices

Jun 11, 2015 In today’s oil market, even the data providers are frustrated with the data. Market watchers have become obsessed in recent weeks with “missing barrels,” or the idea that total supply-and-demand figures from forecasting agencies show that the market is more oversupplied than market behavior suggests. Some say the physical market is actually better balanced than the data show, either because production is lower than reported or demand is stronger. In its monthly report released today, the International Energy Agency – whose forecasting reports are the most widely followed by energy traders – acknowledged that this might be the case. “Statistics…have a poor track record of capturing rapid market changes, as the statistical process often entails adjustments and extrapolations from recent trends, which naturally tend to assume business as usual,” the agency said. “Current markets could thus be tighter than reflected in recent data.” One major problem […]

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Oil prices fizzle on so-so economic data

Weak economic growth figures send crude oil prices lower in Thursday trading, ending a string of gains. Photo by Stephen Shaver/UPI NEW YORK, June 11 (UPI) — Expectations of a short-term global decline in oil demand and a modest increase in U.S. unemployment sent crude oil prices lower in early Thursday trading. Brent crude oil prices ended a string of gains Thursday to fall nearly a full percentage point to $65.07 per barrel. West Texas Intermediate, the U.S. benchmark, sold for $60.79, down 1 percent from the previous close. The U.S. Labor Department said Thursday initial claims for unemployment insurance increased 2,000 to a seasonally adjusted 279,000 for the week ending June 6. Low oil prices have left workers in the energy sector struggling, though federal data show more jobs gained overall in Texas, the No. 1 oil producer, but fewer in North Dakota, the country’s second-largest oil producer. […]

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Oil prices fall after Saudis say could raise output to meet demand

SINGAPORE Oil futures dipped on Thursday, with U.S. crude retreating further from a one-month peak of almost $62 a barrel earlier this week, after Saudi Arabia said it was ready to raise output further to meet strong demand. U.S. crude prices hit a high of $61.82 a barrel earlier this week, their strongest since May 6, as firm demand and a stock drawdown lifted the market. But the rally was halted by a dimming global economic outlook as well as top crude exporter Saudi Arabia saying it was ready to increase its oil output in the coming months to a new record to meet a rise in global demand. Front month U.S. crude CLc1 had fallen 25 cents to $60.52 a barrel by 0035 GMT. Brent futures LCOc1 were down 29 cents at $64.82 a barrel. (Reporting by Henning Gloystein ; Editing by Ed Davies )

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IEA: Global oil demand rising on economic recovery, lower oil prices

According to the International Energy Agency’s most recent Oil Market Report , global oil demand averaged 93.3 million b/d in this year’s first half, up 1.6 million b/d on the year and 400,000 b/d above the estimate in last month’s report. Global demand for the whole year is forecast to average 94 million b/d, 1.4 million b/d up on the year and 300,000 b/d higher than in last month’s OMR. “Since bottoming out at a 5-year low in second-quarter 2014, global oil demand growth has steadily increased, as additional economic growth, colder-than-year-earlier European winter weather conditions and more recently price effects have filtered through,” IEA said. However, momentum is expected to ease somewhat in this year’s second half, assuming a return to normal weather conditions and given a recent partial recovery in oil prices. Global oil production fell 155,000 b/d in May to 96 million b/d as a small […]

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Oil demand rises after price drop, but supply strong: IEA

LONDON World oil demand will rise much more than expected this year, the International Energy Agency (IEA) said on Thursday, in the latest sign that the collapse in oil prices is helping to boost fuel use. The Paris-based agency also pointed to "exceptionally high" growth in global supplies, forecasting OPEC crude production would remain near May’s multi-year high and boosting its projection of supplies this year from other producers. In a monthly report, the IEA raised its forecast for global oil demand growth in 2015 by 280,000 barrels per day (bpd) to 1.40 million bpd, bringing demand this year to almost 94 million bpd. "Recent oil market strength of course partly stems from unexpectedly strong global oil demand growth," said the IEA, which advises industrialized nations on energy policy. Oil prices have recovered this year after hitting a near six-year low close to $45 a barrel in January. Prices […]

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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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Opinion: Busting The “Canadian Bakken” Myth

« Major Dutch waste-to-chemicals initiative more than doubles with new partners | Main | CA Energy Commission awards CSE $1.5M for development of standards-based smart EV charging platform; first employment of ISO/IEC 15118 » The financial pages of Canadian newspapers have been full of headlines lately announcing the potential of two large shale oil fields in the Northwest Territories said to contain enough oil to rival the Bakken Formation of North Dakota and Montana. The report by Canada’s National Energy Board (NEB) evaluated, for the first time, the volume of oil in place for the Canol and Bluefish shale formations, located in the territory’s Mackenzie Plain. It found the “thick and geographically extensive” Canol formation is expected to contain 145 billion barrels of oil, while the “much thinner” Bluefish shale contains 46 billion barrels. The report did not estimate the amount of recoverable oil, but points out that even […]

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Cheniere outlines LNG project developments

Cheniere Energy Inc. plans to add 19 million tonnes/year of incremental production capacity to two LNG projects , bringing the company’s aggregate nominal production capacity to 60 million tpy by 2025. The company is developing 9 million tpy of incremental LNG production capacity through the addition of two liquefaction trains adjacent to the existing site of the Corpus Christi liquefaction (CCL) project. Expected nominal production capacity of each of these trains is 4.5 million tpy, which would increase the expected aggregate nominal production capacity to 22.5 million tpy. Cheniere initiated the regulatory process this month by filing the National Environmental Policy Act prefiling request with the US Federal Energy Regulatory Commission and Federal Transit Administration, and non-FTA approval requests with the US Department of Energy. Regulatory approvals would be expected in 2017. A final investment decision (FID) for CCL was reached last month ( OGJ Online, May 14, 2015 […]

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Who Cares How Fast You Can Sell Debt If Borrowers Can’t Repay It

What if corporate-bond buyers focused less on how quickly they could trade the stuff and more on the basic question of, are they actually going to get their money back? Because, in a growing number of cases, they may not. While American companies seem to be in good shape based on a historically low default rate, they look a lot less good if you peek under the hood of their balance sheets. One problematic sign: the least-creditworthy companies have seen pretty much no growth in a basic measure of their earnings, even after stripping out the embattled energy companies, Bank of America Corp. analysts found. Yet these junk-rated corporations are selling debt at a rapid clip to lock in ultra-low borrowing costs, meaning their levels of debt relative to their income are steadily rising. Another problematic sign: creditors of companies that are going bankrupt are getting less of their […]

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Shell Arctic Spill Contingency Plans In Alaska Survive Challenge

A divided federal appeals court on Thursday rejected an effort by a coalition of environmental groups to revoke federal approval of Royal Dutch Shell Plc’s oil spill response plans related to drilling on Alaska’s remote Arctic coast. By a 2-1 vote, the 9th U.S. Circuit Court of Appeals said the Bureau of Safety and Environmental Enforcement, which is part of the Department of the Interior, acted lawfully in approving the plans, which relate to Shell oil leases in the Beaufort and Chukchi seas from 2005, 2007 and 2008. It rejected arguments by environmental groups such as the National Audobon Society, the Natural Resources Defense Council and the Sierra Club, that the approval was “arbitrary” and “capricious,” based on Shell’s unsupported assumption that it could recover 90 percent to 95 percent of any oil spilled. Many environmental advocates oppose drilling in the Arctic on concern that any spill might prove […]

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Oh US gas demand, where art thou?

In the United States, natural gas is having quite a year. Year-to-date, Platts unit Bentek Energy data shows natural gas production has averaged 72.4 Bcf/d, a 5.2 Bcf/d, or almost an 8% increase, from a year ago. This growth is impressive itself, but what makes it even more impressive is the growth has come while prices have been depressed and demand has lagged. For example, year-over-year: • Platts assessed spot prices at Henry Hub in June have averaged $2.65/MMBtu, which is more than a 40% decline from a year ago, when the June 2014 price average month-to-date was $4.59/MMBtu. • Baker Hughes shows US natural gas drilling rigs have fallen by nearly a third, from 320 to 222. • Baker Hughes shows US oil drilling rigs have fallen by over half, from 1,536 to 642. (This is important because associated gas from crude oil wells account for about for […]

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Gazprom Seeks A Way Around Ukraine By 2019

Gazprom has vowed to entirely cut out Ukraine as a transit hub for natural gas exports to Europe. The conflict with Ukraine has scrambled the longstanding energy relationship between Russia and Europe. The European Union imports around one-third of its natural gas from Russia, but having seen those flows cut off multiple times in the past, European officials are pushing to rid themselves of their dependence on Moscow. The violence in Ukraine solidified that motivation. Russia is also unhappy with the arrangement. In an effort to separate gas exports to the EU (a critical business relationship that Moscow doesn’t want interrupted) from its ongoing conflict with Kiev (a geostrategic priority), Russia has a great incentive to cut out Ukraine. About half of Russia’s gas exports to Europe must travel through Ukraine. But that could change within the next four years, if Gazprom gets its way. “We will not export […]

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Survey: Mid-life crisis for North Sea oil sector

Mid-life crisis for North Sea oil and gas operators as crude oil markets limp through the year, survey finds. File Photo by UPI/Shutterstock/num_skyman ABERDEEN, Scotland, June 11 (UPI) — Most oil and gas companies working in the North Sea canceled projects and about half have cut staff because of the weak oil market, a survey found. The Aberdeen & Grampian Chamber of Commerce, in partnership with law firm Bond Dickinson, said 67 percent of the companies working in the North Sea have been forced to shelve projects and half have been forced to cut staff in the depressed crude oil market. "Confidence levels are at an all-time low and we are now experiencing our first ‘recession of confidence’, and it looks gloomy in the year ahead too," James Bream, policy director for the chamber of commerce, said in a statement. The price for Brent crude oil, a North Sea […]

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Despite IMF walkout, Greece hopes for deal on June 18

ATHENS Greece hopes to clinch a deal with its lenders at a meeting of eurozone finance ministers on June 18, the state minister said on Friday, as time runs short for the country to stave off default at the end of the month. The statement by Alekos Flabouraris came a day after the International Monetary Fund walked away from negotiations in Brussels, citing major differences, and a top EU leader bluntly told Athens to stop "gambling" with its future. A Greek source told Reuters that the entire Greek delegation that had been negotiating a cash-for-reform deal had also left for home on Thursday, citing continuing disagreements. "I hope it (a deal) will come very soon, on June 18, when the Eurogroup takes place," Flabouraris, a close aid to Greek Prime Minister Alexis Tsipras, told state television ERT. Greece needs a deal to unlock aid before the end of the […]

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Renewable Energy Will Not Support Economic Growth

Container terminal image via shutterstock. Reproduced at Resilience.org with permission. The world needs to end its dependence on fossil fuels as quickly as possible. That’s the only sane response to climate change, and to the economic dilemma of declining oil, coal, and gas resource quality and increasing extraction costs. The nuclear industry is on life support in most countries, so the future appears to lie mostly with solar and wind power. But can we transition to these renewable energy sources and continue using energy the way we do today? And can we maintain our growth-based consumer economy? The answer to both questions is, probably not. Let’s survey four important sectors of the energy economy and tally up the opportunities and challenges. The electricity sector: Solar and wind produce electricity, and the fuel is free. Moreover, the cost of electricity from these sources is declining. These are encouraging trends. However, […]

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Oil prices fall as World Bank cuts economic growth outlook

SINGAPORE Crude oil futures fell on Thursday as the World Bank cut its global economic growth forecast, ending a two-day rally triggered by a sharp U.S. inventory drawdown. In its twice-yearly Global Economic Prospects report, the World Bank predicted the global economy would expand 2.8 percent this year, below its 3 percent outlook in January, with India recording the biggest growth of major economies for the first time, ahead of slowing China. Front-month Brent crude oil prices were down 11 cents at $65.59 a barrel by 0306 ET, while U.S. crude shed 25 cents to trade at $61.18 a barrel. "Considering China’s economic slowdown, we lean towards lower prices today," said Daniel Ang, an analyst at Singapore-based Phillip Futures. In South Korea, the world’s No.5 importer of crude oil, the central bank cut its policy rate by 25 basis points to a record-low 1.50 percent in a bid to […]

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Oil futures settle higher on EIA data showing jump in gasoline demand

The oil complex strengthened Wednesday, led by NYMEX July RBOB, after US Energy Information Administration data showed gasoline demand jumping 622,000 b/d and crude stockpiles falling 6.812 million barrels. NYMEX July RBOB settled 6.93 cents higher at $2.1464/gal. On a per barrel basis, that was equivalent to a $2.91 increase. NYMEX July ULSD settled 2.8 cents higher at $1.9459/gal. NYMEX July crude settled up $1.29 at $61.43/b, while ICE July Brent settled 82 cents higher at $65.70/b. With implied demand rising, gasoline stocks fell 2.939 million barrels to 217.354 million barrels last week. Analysts had been looking for a 500,000-barrel draw. "The fact that we’re drawing with production near a record-high suggests strong demand," Jim Ritterbusch, president of Ritterbusch & Associates said. Gasoline production rose 599,000 b/d last week to 10.007 million b/d, just below the all-time high of 10.195 million b/d in December 2014, according to EIA data […]

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Nat-Gas Glut Means Low Prices Here to Stay

The supply glut from the shale drilling bonanza meant that May was another month when U.S. natural gas production from the Lower 48 states stayed strong. As per the latest report from Bentek Energy – the forecasting unit of Platts – May natural gas production edged down less than 1% from the record highs of April to 72.6 billion cubic feet per day (Bcf/d). In fact, the May output was 7.2% higher year-over-year. Thanks to the emergence of major shale plays yielding impressive results, Bentek analysis further suggests that average domestic natural gas supply will climb to 73 Bcf/d in 2015. To put things in perspective, U.S. production was averaging just 55.1 Bcf/d in 2009, only six years back. The Shale Revolution Over the last few years, a quiet revolution has been reshaping the energy business in the U.S. The success of ‘shale gas’ – natural gas trapped within […]

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Global oil demand slowed to a crawl in 2014: Kemp

LONDON World oil demand grew by just 843,000 barrels per day (bpd) last year, the slowest pace for 14 years, outside U.S. recessions. Consumption increased by less than 1 percent to 92.1 million bpd in 2014, according to the BP Statistical Review of World Energy published on Wednesday ( link.reuters.com/hus84w ). Demand in the advanced economies of North America, Europe and Asia has been declining for nine years and is now down by 5 million bpd since 2005. Over the same period, however, consumption in non-OECD economies has risen by almost 12.7 million bpd, according to BP. For the last decade, the non-OECD has absorbed all the growth in supply. In 2013 and 2014 emerging economies consumed more oil than the advanced economies for the first time. But last year the continued slide in OECD consumption (-475,000 bpd) was offset by relatively tepid growth in the non-OECD (+1.3 million […]

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Oil rallies in response to OPEC report

OPEC report shows mixed economic growth, though demand should increase globally. Crude oil prices may be reaching their ceiling, however. File photo by Monika Graff/UPI NEW YORK, June 10 (UPI) — Expectations of increased demand for oil from the Organization of Petroleum Exporting Countries sent crude oil prices higher in Wednesday trading. OPEC in its latest monthly market report said global oil demand for 2015 is seen as growing at 1.18 million barrels per day, an increase from last year’s growth of 960,000 bpd, but unchanged from OPEC’s assessment in May. Crude oil prices rallied nonetheless. Brent crude oil rose nearly 2 percent to $66.12 per barrel in early Wednesday trading. West Texas Intermediate, the U.S. standard, rallied 2.2 percent early in the trading day to $61.51 per barrel. Both indices are above where they started June 1. OPEC’s decision to keep production levels static pushed oil prices lower […]

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OPEC no place for debate, Iran says

OPEC meetings are no place for negotiations or debate, Iranian oil minister says. File photo by Maryam Rahmanian/UPI TEHRAN, June 10 (UPI) — Meetings between members of the Organization of Petroleum Exporting Countries are no place for debate, Iran’s oil minister said. OPEC last week opted to keep production levels static , taking note of the expected increase in global demand in the second half of the year. OPEC’s November decision to hold output steady in an over-supplied market pushed crude oil prices to historic lows. Iranian Oil Minister Bijan Zangeneh said crude oil prices are largely driven by political factors . "Never can one say that politics has nothing to do with oil," he said. "Oil is an eco-political issue." The minister in April said the Islamic republic could return as a dominant force in OPEC if sanctions are lifted as a result of nuclear negotiations with international […]

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EIA: Continuing but lower global oil inventory builds expected in second half

Global petroleum liquids production continues to exceed consumption, resulting in inventory builds, the US Energy Information Administration said in its most recent Short-Term Energy Outlook , released this month. However, averaged global oil inventory builds are projected to fall from 2.2 million b/d through this year’s first half to 1.6 million b/d during this year’s second half, reflecting rising demand and slowing production growth outside of the Organization of Petroleum Exporting Countries, particularly in the US. EIA expects global consumption to increase 1.3 million b/d in both 2015 and 2016. Forecasted global consumption growth was revised modestly upward from last month’s STEO, as lower oil prices stimulated global demand growth more than previously expected. Projected real gross domestic product weighted for oil consumption, which increased an estimated 2.8% in 2014, is projected to rise 2.4% in 2015 and 3% in 2016. In this month’s outlook, OPEC crude- oil production […]

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OPEC + Different EIA Data

The latest OPEC Monthly Oil Market Report is out. There were no big surprises. OPEC 12 OPEC crude only production was up 23,000 bpd in May but that was after April had been revised upward by 110,000 bpd. Saudi Arabia Almost no change is Saudi production, down 5,000 bpd to 10,107,000 bpd. Iraq had the largest change of all, up 105,000 bpd to 3,800,000 bpd. Kuwait suffered the largest drop in May, down 77,000 bpd to 2,685,000 bpd. Secondary Sources Above are the total changes for all OPEC countries. The top chart, “Secondary Sources” is the one I always use. OPEC is expecting world oil supply to grow by 680,000 bpd in 2015. World Oil Supply Non-OPEC oil supply in 2015 is projected to grow by 0.68 mb/d, in line with the previous forecast and below last year’s strong growth of 2.17 mb/d. OPEC NGLs are forecast to grow […]

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OPEC Decision Doesn’t Intimidate

OPEC to Keep Oil Production High OPEC announced last Friday that it will stick with its policy to produce oil at a high rate, a measure that may signal they are underestimating Bakken producers. If the measure by OPEC was meant to intimidate U.S. energy producers, they may want to try again. Despite this tactic to crush competitors, U.S. oil companies have worked to streamline operations an become more efficient. Many now claim they can remain profitable at the lower crude prices for some time. Lynn Helms, head of North Dakota’s Department of Mineral Resources says that “OPEC is still is our main competition. But what you’re seeing now is the Bakken becoming the swing producer, something that has happened relatively quickly because of efficiencies in drilling and completion technology” In response to OPEC’s announcement, oil prices fell on Monday and analysts project this will prolong the supply glut […]

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OPEC says oil market oversupply to ease, but raises output again

LONDON OPEC voiced confidence that excess supply in the oil market will ease as demand picks up and supply growth slows from producers outside the group, an indication its strategy of letting prices fall, reaffirmed at a meeting last week, is working. In a monthly report on Wednesday, OPEC pointed to its expectations that supply from rival producers would decline in the second half of the year after rising in the first. World oil demand will grow faster than it did in 2014, OPEC said. "The current oversupply in the market is likely to ease over the coming quarters," OPEC’s in-house economists said in the report. But the report also said production by members of the Organization of the Petroleum Exporting 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. Last year, OPEC […]

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U.S. Working to Block Iran From Using Recently Acquired Airbus Jets

U.S. officials said Wednesday the Obama administration is actively working to block Tehran from using nine recently acquired Airbus Group EADSY 2.95 % SE jets in a battle over sanctions weeks before the two sides are supposed to complete a final nuclear deal. Iranian officials this week threatened to take legal action against the U.S. if it seeks to block the use of the jets, according to Iranian media. Officials have said the country plans to use the planes on international flights. But a senior administration official said Wednesday the U.S. would continue to “vigorously” enforce the sanctions it has in place on Iran despite the advanced state of nuclear talks. The negotiations are aiming at an agreement which would block Iran’s path to nuclear weapons in exchange for the lifting of a broad array of energy, financial and economic sanctions. “We have identified the planes in question and […]

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Kurds Have Bigger Prize in Mind After Political Gains in Turkey

ISTANBUL — Late into the night on Sunday on the shattered streets of Kobani, the Syrian Kurdish city devastated last year by battles with militants affiliated with the Islamic State, residents celebrated the outcome of the recent Turkish parliamentary election results , honking horns, cheering and firing their guns. The election, in which the Kurdish party surpassed a threshold for the first time to enter Parliament, was the latest milestone in a broader trend: As the Middle East unravels, at great human cost, from wars and sectarian strife, the Kurds have moved doggedly through the chaos to secure more rights and autonomy for themselves. Their electoral victory in Turkey was a historic watershed, a moment of political empowerment for the long-suppressed Kurdish minority, which fought a three-decade insurgency against the Turkish state. The victory was celebrated in Kurdish areas across the Middle East, reverberating in the mountains of northern […]

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In Shift, U.S. Will Send 450 Advisers to Help Iraq Fight ISIS

Photo United States Army trainers instructed Iraqi Army recruits at a military base in Taji, Iraq, in April. The United States now has about 3,000 troops in Iraq. Credit John Moore/Getty Images WASHINGTON — President Obama has authorized the deployment of up to 450 more American troops to Iraq to train and assist the Iraqi forces battling the Islamic State, the White House announced on Wednesday, signaling a major shift of focus in the fight against the Sunni militant group. The United States forces will use Al Taqqadum, an Iraqi base near the town of Habbaniya in eastern Anbar Province, as their training hub, the White House said. Mr. Obama opted to send them at the request of Prime Minister Haider al-Abadi of Iraq, and after consultation with Ashton B. Carter, the secretary of defense, and Gen. Martin E. Dempsey , the chairman of the Joint Chiefs of Staff. […]

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Nigeria: NEITI Asks President to Prioritise Recovery of Unremitted U.S.$18 Billion Oil Funds

Abuja — The Nigerian Extractive Industries Transparency Initiative (NEITI) yesterday called on President Muhammadu Buhari to consider making it a priority of his government to recover the $18.1 billion unremitted oil and gas funds from oil and gas companies operating in Nigeria. NEITI said that over $7.5 billion, which represents underpayments, under-assessment of taxes, royalties and rents as revealed by several independent audit reports of the agency, as well as $11.6 billion which represents outstanding total dividends arising from loans and interest repayments from the federal government’s investment in the Nigerian Liquefied Natural Gas (NLNG) company were still outstanding. The Executive Secretary of NEITI, Mrs. Zainab Ahmed, stated in Abuja that while these monies were still outstanding, issues around their recoveries had not been adequately addressed in the past. A statement from the agency’s head of communications, Ogbonnaya Orji, disclosed that NEITI had made this call to Buhari at […]

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China’s Offshore Oil and Gas Production Started to Peak in 2010

The China National Offshore Oil Corporation (CNOOC) is the largest producer of offshore oil and gas in China. Production statistics should therefore be pretty much indicative of what is happening along China’s coastline. Data from annual reports show that net oil and gas liquids production in 4 key offshore areas increased rapidly in the first decade of this century but then remained fairly flat after 2010. Gas production peaked in 2011 and was 7% lower in 2014. At the recent 14 th Asia Security Summit in Singapore – organised by the Centre for International and Strategic Studies (CSIS, Washington) – media focus was on several artificial islands China is building on half sunken reefs in the South China Sea. Dredging…. Fig 1: Fiery Cross Reef reclamation started in Aug 2014 http://amti.csis.org/fiery-cross-reef-tracker/ South China Sea dispute: US defence secretary demands Beijing immediately halt island-building The United States has demanded Beijing […]

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BP: US surpassing Saudis in oil output among world’s ‘tectonic’ energy shifts in 2014

An eventful 2014 in the world oil and gas markets was headlined by the US overtaking Saudi Arabia as the world’s biggest oil producer and surpassing Russia as the world’s largest producer of both oil and gas, BP PLC said in its 64 th Statistical Review of World Energy released June 10. The US last year recorded the largest oil output growth in the world at 1.6 million b/d, becoming the first country ever to increase production by at least 1 million b/d for 3 consecutive years. Along with the US, oil production in Canada, up 310,000 b/d, and Brazil, up 230,000 b/d, also reached record levels in 2014, the report notes. While production outside the Organization of Petroleum Exporting Countries increased 2.1 million b/d—the largest increase in BP’s dataset—OPEC output was flat and the group’s share of global production fell to 41%, its lowest since 2003. Global oil […]

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Disappearing Bakken oil discount adds to output slowdown signs

NEW YORK Oil traders scrambling to secure crude in the U.S. Midwest have pushed North Dakota’s Bakken to a near premium for the first time in two years, a rally stoked by record refinery runs and an unprecedented slump in Canadian imports. Yet some traders say the surprising strength emerging from opaque physical crude markets in the heartland of the fracking boom also points to a more important, lasting factor: declining production of Bakken crude, a long-anticipated but as yet unproven twist in the shale revolution. The buying frenzy pushed Bakken delivered at Clearbrook, Minnesota WTC-BAK, to trade just 35 cents a barrel below the West Texas Intermediate benchmark last week, dealers say, the narrowest discount since July 2013. On Tuesday, it widened slightly to a 75-cent discount. Four months ago, it traded at a $7.50 discount. "The rapid spread contraction may be indicative of a faster-than-anticipated production decline, […]

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Oil production forecast for Canada lowered

Canadian petroleum association lowers its forecast for oil production given weak market for crude oil. File photo by Brian Kersey/UPI CALGARY, Alberta, June 10 (UPI) — While demand for Canadian oil remains strong, an industry group said the low price for crude oil forced it to cut its production estimates for 2030. The Canadian Association of Petroleum Producers said it estimated Canadian oil production would reach 5.3 million barrels per day by 2030, up from the 3.7 million bpd produced last year. In June, when crude oil prices were $40 more per barrel, CAPP estimated 2030 output at 6.4 million bpd. "While the two forecasts are similar during the early years of the forecast period, the slower pace of production in the latter years is the result of reduced capital spending intentions due to the sharp decline in global oil prices," the association said. CAPP in May said it […]

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Despite ambitions, BP sees Russian gas waning

BP statistical review finds Russia leading in terms of declines in gas production and pipeline deliveries just as the Kremlin holds out its reserves as a key to European energy security. File Photo by UPI Photo/BP/HO LONDON, June 10 (UPI) — BP in a statistic review said Russian natural gas production declined, just as the Kremlin holds out its reserves as a component of European energy security. BP in the 64th edition of its statistical review of world energy said global natural gas production last year grew by 1.6 percent, which is nearly a full percentage point below the 10-year average. Production from members of the European Union declined 9.8 percent to its lowest level since 1971, though in terms of overall volume, Russia’s decline of 4.3 percent was among the largest drops in the world, the review found. European economies rely on Russia for about 20 percent of […]

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