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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 […]

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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
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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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