Category:

Top 5 Oil Producing Countries Could See Production Peak This Year

The EIA’s Short-Term Energy Outlook came out a few days ago. That is where they try to guess the future production and price for oil, for the USA as well as the world. As of late they seem to be getting a little timid with their predictions. They are saying not much growth is happening until the fourth quarter of 2016, and only a slight bump then. (Click to enlarge) This chart is Non-OPEC Total Liquids in million barrels per day. Production of N.O Liquids surged upwards from September of 2012 until December 2014, gaining 6.38 million barrels per day in those 27 months. That’s an average increase of 236,000 barrels per day per month. But then in January 2015 there was a drop of 800,000 bpd. Non-OPEC total liquids still have not reached that December high again but the EIA thinks they will by August. I have my […]

Posted On : Published By : Tom Whipple
Category:

Oil Prices Fall as Nuclear Deal Paves Way for Iran Exports

SINGAPORE—The nuclear accord between Iran and six global powers to be signed Tuesday paves the way for the lifting of Western sanctions and is a step toward restoring Tehran’s oil exports to previous levels. Oil prices fell sharply after news of the deal emerged, with both Brent and Nymex oil futures dropping by more than 2%, posting a loss for the second consecutive day this week. Traders said that while markets have largely priced in a successful nuclear deal, oil prices could breach support levels as a knee-jerk reaction, even though the actual ramp-up in Iranian oil exports could take several months to materialize. Iran, which holds the world’s fourth-largest proved oil reserves, has seen its oil exports nearly halve from peak levels since Western sanctions were imposed. Ramping up oil exports will likely add to current oversupply in the global market and pressure oil prices further. Initial estimates […]

Posted On : Published By : Tom Whipple
Category:

Oil Drops With Ruble on Iran as Bonds Climb on Inflation Outlook

A deal that may allow Iran to add to a global oil glut pushed energy prices lower, weakened Russia’s ruble and dimmed the outlook for inflation, boosting bonds. U.S. oil approached $50 a barrel, dragging the Bloomberg Commodity Index down 0.6 percent at 9:52 a.m. in London. Energy producers posted some of the biggest declines in the Stoxx Europe 600 Index and the ruble weakened for a second day. Treasury 30-year bonds rose for the first time in four days and German bunds also advanced. Chinese stocks halted a three-day rally. Iran and world powers sealed a historic accord to curb the Islamic Republic’s nuclear program in return for the lifting of sanctions on a timetable yet to be announced, according to an official involved in the Vienna talks. Data today on U.S. retail sales and Federal Reserve Chair Janet Yellen’s testimony from Wednesday may provide clues on the […]

Posted On : Published By : Tom Whipple
Category:

Euro below $1.10 as investors refocus on diverging interest rates

American dollar notes are displayed in this photo illustration in Johannesburg August 13, 2014. The euro inched towards a six-week low against the dollar on Tuesday, staying below $1.10 as investors switched their focus away from Greece and back towards diverging U.S. and euro zone monetary policy. As oil fell after Iran and major world powers reached an historic nuclear deal that will grant Tehran sanctions relief in exchange for curbs on its nuclear programme, oil-rich Canada’s dollar hit a four-month low CAD=D4 . With Greece’s debt saga off centre-stage – at least temporarily – after the almost-bankrupt country and its creditors agreed to a deal for a third bailout, the spotlight returned to when the U.S. Federal Reserve will begin hiking interest rates. Investors expect the Fed to start raising rates later this year, in stark contrast to the European Central Bank and the Bank of Japan, both […]

Posted On : Published By : Tom Whipple
Category:

Oil Production Shows Signs of Flagging

The U.S. and the Organization of the Petroleum Exporting Countries have flooded the world with crude oil, sending prices tumbling. But the abundance has overshadowed declining production in areas—from Colombia to Norway to northern China—that experts consider vital to long-term supply growth. Confronted with the plunge in prices, companies in these regions are delaying and canceling projects. Across the world, just six major oil projects received the green light in 2014, compared with an average of more than 20 a year from 2002 to 2013, according to Deutsche Bank AG. The International Energy Agency said Friday that growth in supplies from outside OPEC would “grind to a halt” in 2016, with output due to fall in Russia, Mexico, Europe and elsewhere. Oil companies need to replace between 5% and 8% of crude output each year just to offset shrinking production from old wells, analysts estimate. Currently, that amounts to […]

Posted On : Published By : Tom Whipple
Category:

Iran, world powers set to adopt nuclear deal, oil price slips

Iran and six world powers have begun a final meeting in Vienna Tuesday to ratify a historic agreement on Iran’s nuclear program that will lead to the removal of sanctions and increased flows of Iranian oil onto world markets. Oil prices slipped slightly on the news that a deal had been reached, with both Brent and WTI futures trading down around 2% at $56.75/b and $51.17/b, respectively, at 0920 GMT. Speaking before the final session, Iranian Foreign Minister Mohammad Javad Zarif said the agreement, details of which have yet to be released formally, was "not perfect for anyone" but marked the beginning of a new chapter. "I believe this is a historic moment," Zarif told a short press briefing in the Austrian capital. "Today could have been the end of hope on this issue but now we are starting a new chapter of hope." Article continues below… Platts Global […]

Posted On : Published By : Tom Whipple
Category:

Bet for Obama on Iran Nuclear Deal Will Take Years to Pay Off

Photo President Obama is essentially betting that once sanctions have been lifted, Iran’s leaders will have no choice but to use much of the new money to better the lives of their citizens. Credit Doug Mills/The New York Times VIENNA — Richard M. Nixon’s opening to China more than 40 years ago was a huge Cold War gamble that he could forge a working relationship with a Communist country that had built a small arsenal of nuclear weapons and clearly had long-term ambitions for global power. For President Obama , the deal struck Tuesday morning with Iran represents a similar leap of faith, a bet that by defusing the country’s nuclear threat — even if just for a decade or so — he and his successors would have the time and space to restructure one of the United States’ deepest adversarial relationships. Mr. Obama will be long out of […]

Posted On : Published By : Tom Whipple
Category:

Iran Nuclear Deal Is Reached After Long Negotiations

Photo Secretary of State John Kerry with foreign ministers and other delegates from the United States’ negotiating partners in Vienna on Monday. Credit Pool photo by Carlos Barria VIENNA — Iran and a group of six nations led by the United States have agreed to a historic accord to significantly limit Tehran’s nuclear ability for more than a decade in return for lifting international oil and financial sanctions against Iran, a senior Western diplomat involved in the negotiations said on Tuesday. The deal, which President Obama had long sought as the biggest diplomatic achievement of his presidency, culminates 20 months of negotiations. A formal announcement of the agreement was expected later on Tuesday, when foreign ministers from Iran and the six nations it has been negotiating with will meet at a United Nations complex in Vienna. Catherine Ray, a spokeswoman for the European Union, said a final plenary meeting […]

Posted On : Published By : Tom Whipple
Category:

Iran, World Powers Reach Nuclear Deal

VIENNA—Iran reached a landmark nuclear agreement with the U.S. and five other world powers, a long-sought foreign policy goal of the Obama administration that sets the White House on course for months of political strife with dissenters in Congress and in allied Middle Eastern nations. The accord, which was expected to be signed off at a meeting at 10:30 a.m. local time in Vienna, after a decade of diplomatic efforts that frequently appeared on the verge of collapse, aims to prevent Iran from producing nuclear weapons in exchange for sanctions relief. A press conference will follow, a spokeswoman for European Union foreign policy chief Federica Mogherini said. Assessments of the pact’s likely effect are a source of argument. The Obama administration and its partners hope the deal will resolve a dispute that at times threatened to spark a military conflict. In the optimistic view, it would ease tensions with […]

Posted On : Published By : Tom Whipple
Category:

What Iran’s Nuclear Deal Means for the Global Crude Oil Market

The nuclear accord reached in Vienna on Tuesday could eventually reshape global oil markets. After almost two years of talks, the holder of the world’s fourth-biggest crude reserves will benefit from an easing of international sanctions on exports in return for curbs on its nuclear program, according to an official involved in the talks in Vienna. How Much More Oil Can Iran Produce? Iranian Oil Minister Bijan Namdar Zanganeh says the country can increase exports by 500,000 barrels a day as soon as sanctions are lifted, and then an additional 500,000 a day in the following six months. Iran produced an average of 2.8 million barrels a day this year. Goldman Sachs Group Inc. says adding 500,000 barrels a day will take about a year because Iran must first demonstrate its compliance with the terms of the nuclear accord and revive aging wells. Further expansion will need foreign investment, […]

Posted On : Published By : Tom Whipple
Category:

Iran Nuclear Deal Seen Opening Last Big Frontier Market in 2016

An economy bigger than Thailand’s and oil reserves rivaling those of Canada make Iran the most important market still closed to major equity investors, according to investment bank Renaissance Capital. Lifting sanctions could open the Islamic Republic’s stock market to investors in early 2016, Renaissance’s Charles Robertson and Daniel Salter wrote in a report on Monday. Inflows could total $1 billion in the first year, they said. Diplomats from Iran and six world powers have been holding talks over more than two weeks in Vienna to clinch an accord that would curb the country’s nuclear program in return for easing sanctions. Negotiators cleared one of their last remaining roadblocks on Sunday when they agreed on the phased lifting of a United Nations arms embargo, according to two diplomats. “We are confident that Iran opening up will be one of the most interesting and positive developments for the emerging and […]

Posted On : Published By : Tom Whipple
Category:

OPEC sees more balanced oil market in 2016

A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. The oil market should be more balanced next year as China and the developing world use more oil while supply of fuel from North American shale grows more slowly, OPEC said on Monday. In its monthly report, the 12-member Organization of the Petroleum Exporting Countries said it expected world oil demand to increase by 1.34 million barrels per day (bpd) in 2016, up from growth of 1.28 million bpd this year. World oil demand growth should outpace any increase in oil supply from non-OPEC sources and ultra-light oils such as condensate, increasing consumption of OPEC crude, it said. "This would imply an improvement toward a more balanced market," OPEC’s in-house economists said in the report. OPEC has increased production sharply over the last year as its most powerful member, Saudi Arabia, and other core producers in […]

Posted On : Published By : Tom Whipple
Category:

Former BP boss takes helm at Kurdish oil player

Tony Hayward now chairman at Kurdish oil player Genel Energy after management reshuffle. File Photo by UPI/Roger L. Wollenberg LONDON, July 13 (UPI) — Former BP boss, Tony Hayward , was appointed Monday as the chairman of Genel Energy, one of the largest oil players in the Kurdish north of Iraq. Genel, which has headquarters in London, said Hayward, the former chief executive officer, was appointed chairman when Rodney Chase resigned from the position Sunday. Murat Ozgul, chief commercial officer since 2008 and president of Turkey and Kurdish operations, ascends to CEO. Hayward credited the new CEO with helping Genel boost net Kurdish oil production to more than 100,000 barrels per day, which he said makes it one of the largest independent producers traded on the London Stock Exchange. Genel in January said it was trimming capital expenditure plans by 30 percent to $200 million and reducing its workforce […]

Posted On : Published By : Tom Whipple
Category:

Iraq Begins Military Operation to Drive ISIS From Anbar

Photo Shiite fighters launched a rocket on Sunday toward Islamic State militants from the outskirts of Fallujah, in Anbar Province, Iraq. Credit Reuters BAGHDAD — The Iraqi government declared on Monday that it was beginning a major military operation to retake the western province of Anbar from the Islamic State, which occupies much of the area including its major cities, Ramadi and Falluja. It was not immediately clear if the operation would be more effective than an earlier one that Iraq announced in May , when the Islamic State seized Ramadi, the provincial capital, after holding Falluja for more than a year. Little has changed on the ground since then. But a barrage of 29 American-led airstrikes near Ramadi on Monday signaled that the United States was strongly backing the operation, a week after President Obama vowed a “long-term campaign” to defeat the Islamic State, also known as ISIS […]

Posted On : Published By : Tom Whipple
Category:

Iraq gets first funding to rebuild war-struck regions

Iraq and the World Bank signed a $350 million loan agreement on Sunday to fund emergency reconstruction in towns recaptured from Islamic State militants, a deal Baghdad said marked the first international help to rebuild areas devastated by war. Finance Minister Hoshiyar Zebari said around a third of the money would go toward repairing roads and bridges, with a similar amount allocated to restoring electricity networks, water and sewage. Iraq faces a budget deficit of up to $20 billion this year as it grapples with low oil revenues and the heavy cost of war with Islamic State insurgents. The militants hold much of north and west Iraq, but have been driven out of parts of Diyala and Salahuddin provinces north of Baghdad by Shi’ite militia, Kurdish peshmerga and Iraqi security forces, backed by U.S.-led air strikes. The extensive damage from those battles has left the Iraqi government, whose revenues […]

Posted On : Published By : Tom Whipple
Category:

Saudi oil production at new high

Oil production from Saudi Arabia reaches new high, but demand from the de facto head of OPEC also expected to surge. Photo by ekina/Shutterstock VIENNA, July 13 (UPI) — With oil demand from the Middle East expected to surge, Saudi Arabia reported to OPEC its crude oil production was at its highest levels in more than 30 years. Saudi Arabia reported to the Organization of Petroleum Exporting Countries it produced 10.56 million barrels of oil per day in June, a 2.2 percent increase from the previous month. Saudi Arabia has maintained a high level of oil production despite the slump in crude oil prices, arguing it needs to protect its market share in an economy in flux because of the glut of U.S. oil. Saudi Oil Minister Ali al-Naimi said during an April meeting in Beijing his country was a reliable partner to China, which at the time was […]

Posted On : Published By : Tom Whipple
Category:

Nigeria Military Leaders, Faulted in Fighting Militants, Are Fired

Photo Lt. Gen. Kenneth Minimah, shown reviewing troops last month, was dismissed as leader of the Nigerian Army on Monday. Credit Agence France-Presse — Getty Images NIAMEY, Niger — Nigeria ’s new president, Muhammadu Buhari , dismissed all of his country’s top military officials on Monday, his spokesman announced, after weeks of mounting violence in which Boko Haram fighters have killed hundreds of civilians. The Nigerian military’s handling of Boko Haram’s bloody six-year uprising has been widely seen as dismal. It has been faulted not only for failing to stem the extremist group’s murderous rampages, but also for making the situation worse through widespread human rights violations. The country’s news media has been urging Mr. Buhari for weeks to get rid of the architects of what is seen in Nigeria as a failed campaign to stop the Islamist militant group. On Monday, some analysts questioned why Mr. Buhari, who […]

Posted On : Published By : Tom Whipple
Category:

Mexico Battles Bad Timing in 1st Sale of Oil Fields Since 1930s

Mexico waited 77 years to invite foreign oil producers back into its borders. That was one year too many. The move to lure tens of billions of dollars from the likes of Exxon Mobil Corp. will be put to the test for the first time at an oilfield auction on Wednesday. With oil prices down by about half since last year, five of 38 potential bidders, including Glencore Plc, Noble Energy Inc. and even Mexico’s state-owned oil producer, have pulled out. President Enrique Pena Nieto moved to end the state monopoly after poor drilling infrastructure and technology failed to reverse a decade-long production decline that reduced government revenue. To lure investments now, Mexico will probably get a much smaller share of profits than it would have a year ago. “They shaped expectation at a $100-per-barrel market and we are way off that now,” Wilbur Matthews, chief executive officer of […]

Posted On : Published By : Tom Whipple
Category:

Water diversion project increases supply to parched Beijing

BEIJING, July 14 (Xinhua) — A new pumping station has increased the capacity of the massive project bringing water from the Yangtze River to Beijing, just as the city’s water demand soars under a heat wave. Huinanzhuang, a major pumping station on the middle route of the south-to-north water diversion project, went into operation on Monday, pushing up the water inflow of the route from 24 to 38 cubic meters per second, according to the Beijing south-to-north water diversion office. As a result, the project’s water supply capacity has been increased from 2.07 to 3.28 million cubic meters per day, with its daily supply to the city’s water plants growing from 1.77 to 2 million cubic meters. Beijingers have been thirsty as the Chinese capital has baked under temperatures above 35 degrees Celsius since Saturday. Daily water supply in the city has been kept above 3 million cubic meters […]

Posted On : Published By : Tom Whipple
Category:

Emerging Stocks Halt Three-Day Gain on Fed’s Timing; Ruble Drops

Emerging-market stocks fell for the first time in four days as Chinese shares retreated and investors weighed the timing of U.S. interest-rate increases. Russia’s ruble weakened with oil. China’s Shanghai Composite Index slid 1.2 percent before Wednesday’s economic growth data. Samsung Electronics Co. sank to a seven-month low in Seoul, leading technology stocks lower. South Africa’s Sasol Ltd. paced losses for energy companies. The ruble dropped 0.8 percent versus the dollar as Brent crude tumbled 1.7 percent after Iran and world powers were said to have reached a nuclear deal . South Korea’s won fell 1 percent. The MSCI Emerging Markets Index lost 0.5 percent to 938.64 at 9:05 a.m. in London. As Greece’s parliament convenes Wednesday to vote on a bailout package, attention is shifting to the Federal Reserve as it mulls its first interest-rate increase since 2006. U.S. retail sales data are due Tuesday, while Fed Chair […]

Posted On : Published By : Tom Whipple
Category:

China commodity imports raise economic growth questions: Russell

A ship loaded with containers is seen at a port in Lianyungang, Jiangsu province, September 7, 2013. China’s commodity imports for the first half of the year go some way to confirming what is already known about the state of the world’s second-biggest economy, and also offer some pointers for the rest of 2015. Although the dynamics vary across the major commodities, there are some clear trends that have emerged in the first six months that point to a loss of economic momentum in China, the world’s largest importer of raw materials. Iron ore offers the best example, showing that not even record low prices are enough to boost demand for the steel-making ingredient. June imports were 74.96 million tonnes, up 5.8 percent from the prior month but only 0.5 percent higher than June last year. First half imports totaled 452.9 million tonnes, a drop of 0.9 percent over […]

Posted On : Published By : Tom Whipple
Category:

EIA report forecasts further US shale oil output drops in August

US crude oil production from shales is projected to fall for the fourth month in a row in August to 5.357 million b/d, a drop of 91,000 b/d from July estimates, the US Energy Information Administration said Monday in its latest Drilling Productivity Report. It is the second consecutive month the agency has predicted a month-on-month decline of 91,000 b/d. The data, which EIA began publishing in October 2013, showed estimated oil production in the Bakken, Eagle Ford and Niobrara shale plays dropping in August, although Permian Basin production will continue to rise. EIA data predicted oil output in the Permian, located in West Texas and New Mexico and widely considered the US’ hottest unconventional play, to increase 5,000 b/d in August to 2.046 million b/d. That is up from the 3,000 b/d increase that the agency estimated for July. Article continues below… Crude Oil Marketwire delivers vital intelligence […]

Posted On : Published By : Tom Whipple
Category:

U.S. companies expected to report worst sales fall in nearly six years

A trader waits for news while working on the floor of the New York Stock Exchange following a halt in trading in New York, July 8, 2015. U.S. companies are expected to report their worst sales decline in nearly six years when they post second-quarter results, giving investors reason to worry about future profits. Companies have managed to drive 2015 earnings by cutting costs, a practice they turned to during the financial crisis. They have also used share buybacks to lift earnings per share. But it is hard to make a case for sustained earnings growth given forecasts for a second-straight quarter of revenue decline at S&P 500 companies, which begin reporting financial results in earnest this week. Though analysts expect corporate America to show a decline in second-quarter profits, according to Thomson Reuters data, some strategists expect them to defy those forecasts and eke out a gain, just […]

Posted On : Published By : Tom Whipple
Category:

Oil output from U.S. shale plays seen down for fourth month -EIA

Oil production from U.S. shale in August is expected to fall by the most since at least 2007, according to the U.S. agency tasked with tracking oil output, the latest sign a price rout will shrink the nation’s crude output. Oil production from the largest U.S. shale plays will plunge in August for a fourth consecutive month, forecasts from the U.S. Energy Information Administration showed on Monday. Output was expected to decline by 91,000 barrels per day, 12 percent over July’s forecast production decline, to 5.4 million bpd, the lowest level since November for the seven shale plays tracked in EIA’s productivity report. Energy firms fired thousands of workers and cut back on new drilling after U.S. crude futures collapsed 60 percent from over $107 a barrel in June 2014 to near $42 in March on oversupply concerns and lackluster world demand. Despite the cuts, however, overall U.S. production […]

Posted On : Published By : Tom Whipple
Category:

Accelerating Shale Gas Declines Show Supply Held Hostage by Oil

Natural gas output from U.S. shale formations is set to fall for a third straight month after the collapse in crude prices forced drillers out of fields that yield both oil and gas. After four years of record supply, natural gas output is showing signs of weakness as producers pull back amid tumbling oil prices. Gas production from the seven largest shale basins will fall 0.6 percent to 45.1 billion cubic feet a day in August from a month earlier, the biggest drop since March 2014, the U.S. Energy Information Administration said Monday in its monthly Drilling Productivity report. EIA estimates have shown supply declines since June. The government’s forecasts signal that the 51 percent collapse in crude oil prices since June 20, 2014, is reverberating in the natural gas market. As drillers shut wells in liquids-rich deposits from North Dakota to Texas, they’re also curtailing gas output from […]

Posted On : Published By : Tom Whipple
Category:

Shale Oil Output Heads for Record Drop After Drilling Swoon

U.S. Oil Boom Stymied Shale fields that powered the U.S. energy renaissance will suffer the biggest drop in output since the boom began after companies idled more than half their drilling rigs. Production from the prolific tight-rock formations such as the Eagle Ford in southern Texas will decline 91,000 barrels a day in August to 5.36 million, the Energy Information Administration said Monday. It’s the fourth month in a row production is expected to slide, after more than tripling from 2007. Output is slipping after producers from ConocoPhillips to EOG Resources Inc. reduced the number of drilling rigs in order to cut costs following a 50 percent drop in the price of oil. About 645 rigs were drilling for oil last week, down from 1,609 in October, according to oil-field service company Baker Hughes Inc. “The market is largely anticipating oil production to keep declining this year and snap […]

Posted On : Published By : Tom Whipple
Category:

North Dakota oil production up despite fewer rigs

North Dakota rig numbers decline, though state data show operators on shale basins are doing more with less. UPI/Gary C. Caskey BISMARCK, N.D., July 13 (UPI) — The number of rigs actively exploring for or producing oil and gas in North Dakota declined nearly 4 percent from last week, state data show. North Dakota reported 73 rigs in active service as of Monday, down from the 76 reported one week ago. The exploration and production side of the North Dakota, measured by rig counts, is slower by more than half from this date in 2014, when 190 rigs were deployed across the state. Rig deployments were near historic highs in 2012, with 215 reported. North Dakota is the second largest oil producer in the nation and, while diversified, its economy depends in part on the surge of oil taken from shale basins in the state . State government data […]

Posted On : Published By : Tom Whipple
Category:

North Dakota’s oil output stabilizes but does not fall: Kemp

Pumpjacks taken out of production temporarily stand idle at a Hess site while new wells are fracked near Williston, North Dakota November 12, 2014. Crude oil production data published by the state of North Dakota on Friday contained something for both bulls and bears. Bears can point to the unexpected resilience of shale production in the face of lower oil prices while bulls can point to the fact that production is no longer growing after five years of tremendous gains. The state pumped an average of 1.2 million barrels per day (bpd) in May, an increase of 32,000 bpd compared with April, according to the Department of Mineral Resources ( link.reuters.com/kan25w ). Production remained steady with an average of just 80-90 rigs drilling in May, far fewer than the 120-130 rigs the department forecast at the start of the year would be necessary to maintain 1.2 million bpd. By […]

Posted On : Published By : Tom Whipple
Category:

Energy Companies to Merge in $15.8 Billion Deal

A Marathon Petroleum refinery in Texas City, Texas. A partnership controlled by Marathon Petroleum Corp. MPC 7.87 % , a refinery and pipeline company, will buy MarkWest Energy Partners LP for $15.8 billion in one of the biggest oil-patch deals since crude prices began to slump last summer. The deal will marry Marathon’s oil pipeline network with MarkWest’s business separating natural gas into fuels such as propane and ethane. The combined company would have a market capitalization of $21 billion, making it the fourth-largest master limited partnership. These partnerships, which typically own infrastructure like pipelines that earn steady revenue from long-term contracts, have fared better than traditional drilling companies during the energy downturn but still have faced headwinds. Shares of MPLX closed 15% lower to $59, while shares of MarkWest rose nearly 14% to $68. Shares of Marathon Petroleum Corp. rose 7.9%. The deal is the latest consolidation between […]

Posted On : Published By : Tom Whipple
Category:

Environmental Activists Can’t Intervene in Exxon Case, Judge Rules

A judge on Monday rejected an attempt by environmental activists and a state lawmaker to intervene in New Jersey Gov. Chris Christie’s decision to settle a contamination case with Exxon Mobil Corp. XOM 0.24 % for $225 million, a significant setback in the effort to scuttle the deal. Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute. The environmental groups say the proposed $225 million settlement doesn’t cover the damage caused by Exxon’s refineries to an area spanning more than 1,500 acres of wetlands, meadows and waterways near Bayonne. The state initially sought $8.9 billion from Exxon. The groups and Mr. Lesniak “have done nothing to overcome the presumption of adequate representation that arises when they share the same ultimate goal with an original […]

Posted On : Published By : Tom Whipple
Category:

EIA Confirms: U.S. Oil Production Peaked

U.S. oil production has peaked…at least for now. That is the conclusion from a new government report that concludes that U.S. oil production is on the decline. After questions surrounding the resilience of U.S. shale and when low oil prices would finally cut into production, the EIA says the month of April was the turning point. In its Short-Term Energy Outlook released on July 7, the EIA acknowledged that U.S. oil production peaked in April, hitting 9.7 million barrels per day (mb/d), the highest level since 1971. In May, production fell by 50,000 barrels per day, and EIA says that it will continue to decline through the early part of next year. Still, the declines won’t be huge, according to the agency’s forecast – production will average 9.5 mb/d in 2015 and 9.3 mb/d in 2016. The EIA figures move a little closer to what some critics have been […]

Posted On : Published By : Tom Whipple
Category:

Gas overtakes coal at US power stations

The US generated more of its electricity from gas than from coal for the first time ever in April — in a sign of how the shale boom is putting mounting pressure on the country’s mining industry. Plunging prices for natural gas, which have fallen alongside oil since last summer, led to it being used to generate 31 per cent of America’s electricity in April, while coal contributed 30 per cent. This was the first month in US history that gas-fired electricity generation surpassed coal-fired generation, according to SNL Energy, a research firm — although it came close in 2012 when gas prices were also very weak. In 2010, coal provided 45 per cent of US power. Since then, competition from cheap shale gas — unlocked by the rise of horizontal drilling and hydraulic fracturing — plus a growing regulatory burden on coal-fired power plants, has squeezed out coal […]

Posted On : Published By : Tom Whipple
Category:

Premier of Greece, Alexis Tsipras, Accepts Creditors’ Austerity Deal

Photo Prime Minister Alexis Tsipras of Greece after reaching an agreement with European leaders in Brussels on Monday. Credit Geert Vanden Wijngaert/Associated Press ATHENS — Forced by his nation’s creditors into broad new concessions to avert financial collapse, Prime Minister Alexis Tsipras of Greece returned home on Monday with just days to sell the deal to fractured lawmakers and a dazed electorate. The agreement he struck with other European leaders early Monday after a contentious all-night bargaining session would give Greece the chance to receive its third international bailout in five years, a package of as much as 86 billion euros, or $96 billion, as well as easier repayment terms on some of its existing debt of more than €300 billion and a short-term economic stimulus plan. But it would require Greece to swallow a wide array of measures, including pension cuts and tax increases, and effectively subject itself […]

Posted On : Published By : Tom Whipple
Category:

Greece debt crisis: Tsipras faces eurozone deal battle

Greek Prime Minister Alexis Tsipras is facing a tough battle to win support from coalition partners for the third bailout offered by eurozone leaders. Four pieces of legislation must be passed by the end of Wednesday including pension and VAT reforms. But Defence Minister Panos Kammenos, a junior coalition partner, has already said he will not support the measures. If the deal fails, Greece’s banks face collapse and the country could then be forced to leave the euro. The bailout is conditional on Greece passing all the agreed reforms – including raising tax revenue and liberalising the labour market – in parliament by Wednesday. Finance ministers from all 28 EU countries are holding a scheduled meeting in Brussels on Tuesday morning, where they will discuss the situation in Greece. Defence Minister Panos Kammenos likened the situation to a ‘coup’ by foreign leaders There were demonstrations at the Greek Parliament […]

Posted On : Published By : Tom Whipple
Category:

Russia extends energy hand to Greece

Russian government said its ready to do its part to support Greek economic recovery through a role in the nation’s energy sector. File Photo by Dimitris Michalakis/UPI MOSCOW, July 13 (UPI) — The Kremlin will do its part in the Greek economic recovery by working to support the country’s energy sector, Russia’s energy minister said. European finance ministers ended 17 hours of negotiations Monday that set the stage for a $39 billion support mechanism for Greece, nearly two weeks after it defaulted on its $1.73 billion loan from the International Monetary Fund. Hours before the deal was secured, Russian Energy Minister Alexander Novak said the Kremlin was ready to lend a hand in the Greek energy sector. "In connection with this we study options for direct supplies of energy resources for the Greek government, and they may begin shortly," he said. Greek Prime Minister Alexis Tsipras met in April […]

Posted On : Published By : Tom Whipple
Category:

Oil prices fall as Iran nuclear deal seems likely

An offshore oil platform is seen in Huntington Beach, California September 28, 2014. Oil prices opened up lower on Monday as Iran and six world powers were close to nailing down a nuclear deal, while Greece and its creditors failed to find a bailout agreement over the weekend. The potential of Iran soon adding to global oil oversupply and the demand side weakening over China and Europe led several analysts to say that crude would fall further. Iran and six world powers were on the brink of finding a nuclear deal that would bring sanctions relief in exchange for curbs on Tehran’s nuclear program. In Europe, the Greek debt crisis continued as political leaders argued late into the night at an emergency summit, so far without result. And in Asia, investors will watch whether China’s stock markets can stabilize after a barrage of government support sparked a bounce in […]

Posted On : Published By : Tom Whipple
Category:

Oil Extends Decline as Iran Nuclear Deal Seen Exacerbating Glut

Oil extended its decline after its biggest weekly drop since March as investors weighed the prospects of Iran increasing crude exports in an oversupplied market. Futures dropped as much as 1.8 percent in New York after capping a 7.4 percent loss through July 10. Iran and world powers may announce a nuclear deal as soon as Monday after a political agreement was reached to lift a United Nations arms embargo. Prices also slid as investors eschewed risky assets amid concern Greece may be cut from the euro area . Oil’s rebound from a six-year low has faltered, capping a second weekly drop on Friday, as a rout in Chinese equities and the turmoil in Greece stoke speculation demand will weaken and a global glut will persist. Prices may fall further as the world remains “massively oversupplied,” before markets tighten in 2016 when output growth outside OPEC grinds to a […]

Posted On : Published By : Tom Whipple
Category:

Oil Prices Extend Slide on Uncertainty Around Iran, Greece

Oil futures continued to drop in Asian trade Monday as uncertainty over the Iranian nuclear deal carried over from last week and Greece continues to be in limbo. Data showing strong Chinese oil imports for June also failed to limit losses as investors remained cautious over the stability of Chinese stock markets and projections of persistent oversupply of crude oil in the coming months. On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $51.93 a barrel at 0339 GMT, down $0.81 in the Globex electronic session. August Brent crude on London’s ICE Futures exchange fell $1.04 to $57.69 a barrel. Oil prices have dropped for two consecutive weeks, during which Nymex oil futures have lost 11.6% and Brent crude has lost 7.2%. U.S. oil prices have seen a sharper drop due to the resilience of shale oil production. The U.S. oil-rig count […]

Posted On : Published By : Tom Whipple
Category:

Oil Bulls’ Will Broken as Roiled Economies Pose Risk to Growth

Speculators retreated from bullish oil bets at the fastest pace since 2012 on mounting concern that economic turmoil in Europe and Asia will prolong a supply glut. The net-long position in West Texas Intermediate crude fell 20 percent in the week ended July 7, U.S. Commodity Futures Trading Commission data show. Longs dropped 1.7 percent as short wagers jumped 56 percent. U.S. benchmark crude slumped 12 percent in the CFTC report period as the Greek debt crisis intensified and plunging stocks in China threatened to slow the world’s second-biggest economy. Delays in Iran reaching a nuclear accord and lifting curbs on its oil exports did little to stem the rout. Prices may fall further because the world remains “massively oversupplied,” the International Energy Agency said. “Several bearish elements came together to break the back and will of the longs in the market,” John Kilduff, a partner at Again Capital […]

Posted On : Published By : Tom Whipple
Category:

Iran deal would add to oil glut, open door to cement, steel imports

Any nuclear deal between Iran and six world powers loosening sanctions against Tehran could flood an oversupplied oil market with more fuel, yet sectors like cement and steel would see a rise in demand as the country works to revitalize its economy. Officials involved in ongoing negotiations said on Sunday they were close to a deal that would bring sanctions relief in exchange for curbs to Tehran’s atomic program, although no agreement was expected before Monday. Analysts have focused largely on oil in determining the impact on international commodities markets if sanctions are lifted. The timing of any lifting of the measures that have cut Iran’s crude exports as well as a United Nations Security Council arms embargo and ban on its ballistic missile program have been among the major sticking points on reaching a deal. But even with a diplomatic agreement this week it would take time for […]

Posted On : Published By : Tom Whipple
Category:

Europeans Press for Iran Nuclear Deal on Monday

U.S. Secretary of State John Kerry leaves his hotel in Vienna on Sunday. VIENNA—Nuclear negotiations between Iran and six world powers have reached the make-or-break point, European officials said, warning the diplomacy could fail if there is no final agreement by Monday night. The comments by senior European diplomats in Austria’s capital on Sunday suggested a divergence from Washington on the way forward with Tehran. The Obama administration has also said it is willing to end nearly two years of negotiations if a deal isn’t struck in the coming days to prevent Iran from acquiring nuclear weapons in exchange for sanctions relief. But senior White House officials have also indicated the U.S. wasn’t going to be rushed into a final agreement and it might be willing to roll over an interim accord signed with Tehran in late 2013. That deal locks in modest sanctions relief for Iran and freezes […]

Posted On : Published By : Tom Whipple
Category:

Congress promises rough ride for any nuclear deal with Iran

The top Republican in the U.S. Senate cast doubt on Sunday on whether President Barack Obama would be able to win approval in Congress for any nuclear deal with Iran, and some Democrats also expressed reservations. "I think it’s going to be a very hard sell, if it’s completed, in Congress," Senate Majority Leader Mitch McConnell told "Fox News Sunday". "We already know it’s going to leave Iran as a threshold nuclear state." The U.S. Congress could play a key role in the future of any deal to curb Iran’s nuclear program, with negotiations reaching a critical juncture in Vienna on Sunday. Obama can enter a deal with Iran, which Congress would review. If the review went against him, Obama could veto the disapproval legislation. Congress could then try to reverse his veto, which is difficult. But if it succeeded, its disapproval would take away Obama’s ability to temporarily […]

Posted On : Published By : Tom Whipple
Category:

Bureaucrats Go Hungry as Nigeria’s Oil Crisis Hobbles Economy

Nigeria president Muhammadu Buhari. Photographer: Pius Utomi Ekopei/AFP/Getty Images It’s been five months since Johnson Umeadi and his wife, Adaku, received their salaries as government workers in southeastern Nigeria. With Nigeria’s finances shot by last year’s collapse in oil prices, they’re struggling with rent and can’t afford school fees for their three children. Shops and grocers are no longer willing to extend them the credit they need to buy basic items such as food and drinks. “It’s like we put all our eggs in one basket and then it went porous,” said Johnson, a 45-year-old employed by a department of Imo state responsible for infrastructure projects in Owerri. “If one of us was working in a private company, or even engaged in petty trading, we would’ve fared better,” he said, declining to disclose his salary. The plight of the Umeadis and others who haven’t received wages has hit everything […]

Posted On : Published By : Tom Whipple
Category:

GOP Leaders: Any Nuclear Deal With Iran Will Face Deep Opposition in Congress

Republican leaders signaled Sunday that any final nuclear deal struck with Iran will face deep opposition in the GOP-controlled Congress. For weeks, Republicans have called for President Barack Obama and his team of U.S. diplomats to walk away from negotiations aimed at curbing Iran’s ability to build nuclear weapons. As top officials entered what they labeled a “decisive” phase of talks with Iran and five other global powers on Sunday, GOP leaders said they doubted a final deal would pass muster with most Republicans. “It’s going to be a very hard sell — if it’s completed — in Congress,” Senate Majority Leader Mitch McConnell (R., Ky.) said on Fox News Sunday. Mr. McConnell said he worried that any deal would still leave Iran capable of producing a nuclear weapon on relatively short notice. “We already know that it’s going to leave Iran as a threshold nuclear state,” Mr. McConnell […]

Posted On : Published By : Tom Whipple
Category:

Iran Leader Ayatollah Ali Khamenei Calls U.S. ‘Embodiment of Arrogance’

Supreme Leader Ayatollah Ali Khamenei attended a meeting with university students in Tehran on Saturday. Iran’s Supreme Leader Ayatollah Ali Khamenei called the U.S. the “ultimate embodiment of arrogance” and warned that his nation’s opposition to Washington wouldn’t end if a nuclear accord is reached between Tehran and world powers in the coming days. Mr. Khamenei’s comments on Saturday again raised questions about whether the 75-year-old cleric fully backed an emerging agreement that calls for Iran to constrain its nuclear program in exchange for a lifting of international sanctions. Tehran’s top political leader has consistently railed against the U.S. in the years since Iran’s 1979 Islamic revolution. But the timing of his comments, at a critical juncture in the negotiations, pointed to the continued hurdles the Obama administration faces in trying to forge an agreement with Iran. “The U.S. is the ultimate embodiment of arrogance,” Mr. Khamenei told a […]

Posted On : Published By : Tom Whipple
Category:

Dozens die in Baghdad bombings

The bombings targeted Shia neighbourhoods in the Iraqi capital [Al Jazeera] Explosions have rocked a string of Shia neighbourhoods across the Iraqi capital, killing at least 35 people and wounding 81, police have said. The deadliest bombing took place in Baghdad’s northern Shaab neighbourhood when a man detonated an explosive vest in a crowded market, killing nine people and wounding 25. Earlier on Sunday, in Baghdad’s Khazimiyah district, a suicide car bombing targeted the Aden checkpoint, killing eight people, including five civilians, and wounding 23. And in the Banook district, six people were killed and 15 injured in a car bombing, police said. In Baghdad’s al-Askan district, a car bomb killed at least four people and wounded 11 on a commercial street as people gathered after sunset to break their fast for Ramadan. Police also said a roadside bomb on a commercial street in Baghdad’s al-Amal neighbourhood killed two […]

Posted On : Published By : Tom Whipple
Category:

Saudi Arabia borrows $4bn as oil price reality hits home

Newspaper + Premium online Premium online Full FT.com subscription Standard online Full news & archive Registration 3 articles per month Price Monthly Annual £76.00 £13.50 per week (52 weeks in total) £42.00 £7.35 per week (52 weeks in total) £30.00 £5.35 per week (52 weeks in total) Free FT Alphaville plus selected FT blogs FT Alphaville and more Unlimited access to Alphaville, the FT’s popular finance blog, plus many other FT blogs featuring comment and analysis from top columnists Gavyn Davies on macroeconomics, economic policy making & financial markets The Westminster blog covering the UK’s political scene Dispatches from FT experts in San Francisco, London & Taipei on Tech blog The World blog on international affairs yes yes yes yes Unlimited FT.com article access Unlimited FT.com article access Enjoy full access to FT.com’s award-winning news, comment and analysis. With over 500 journalists reporting from over 50 countries, read our […]

Posted On : Published By : Tom Whipple