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In California, Big Oil Finds Water Is Its Most Prized Commodity

California’s epic drought is pushing Big Oil to solve a problem it’s struggled with for decades: what to do with the billions of gallons of wastewater that gush out of wells every year. Golden State drillers have pumped much of that liquid back underground into disposal wells. Now, amid a four-year dry spell, more companies are looking to recycle their water or sell it to parched farms as the industry tries to get ahead of environmental lawsuits and new regulations. The trend could have implications for oil patches across the country. With fracking boosting the industry’s thirst for water, companies have run into conflicts from Texas to Colorado to Pennsylvania. California could be an incubator for conservation efforts that have so far failed to gain traction elsewhere in the U.S. Drillers may have little choice. The state’s 50,000 disposal wells have come under increased scrutiny this year, after regulators […]

Posted On : Published By : Tom Whipple
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North Dakota oil output jumps in May despite low prices

An oil pumpjack operates near Williston, North Dakota January 23, 2015. North Dakota’s daily oil production rose 3 percent in May, state regulators said on Friday, hinting that the state’s Bakken shale formation may be more resilient to sliding crude prices than expected. The state’s well count hit a record high in the month with producers deciding to hydraulically fracture more freshly drilled wells, bucking a trend to mothball them. Drilling permit applications also spiked. "I was surprised by the increase in output for May," said Lynn Helms, head of the state’s Department of Mineral Resources (DMR). "It’s pretty astounding at how good (oil producers) have gotten at what they do." The data signaled that Whiting Petroleum Corp, Continental Resources Inc and other producers in the state have been able to weather a more than 50 percent drop in U.S. crude prices since last summer. North Dakota, the No. […]

Posted On : Published By : Tom Whipple
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BHI: US rig count continues upward creep

Although the overall US drilling rig count merely edged up a unit to 863 rigs working during the week ended July 10, it represented the third consecutive week of gains and another jump in oil-directed rigs, according to data from Baker Hughes Inc. Over the past 3 weeks the overall count has risen 6 units. The warm streak follows 28 consecutive weeks of losses, which has resulted in the count currently having 1,012 fewer units year-over-year ( OGJ Online, June 26, 2015 ). BHI also reported this week that the average US rig count for June was 861, down 28 from May and down 1,000 from June 2014. In an energy update this week, Raymond James & Associates Inc. noted that permitting activity, a main indicator of rig count activity, was low a week ago as a result of the Independence Day holiday in the US. Just 680 new […]

Posted On : Published By : Tom Whipple
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The EIA’s Short-Term Guessing Game

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. STEO N-O Liquids 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
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Greek parliament backs government bailout proposals

The Greek parliament voted overwhelmingly on Saturday in favor of authorizing the left-wing government of Prime Minister Alexis Tsipras to negotiate with international creditors on the basis of a reform program unveiled this week. A number of leftist members of the ruling Syriza party, including the speaker of parliament, Zoe Constantopoulou and Energy Minister Panagiotis Lafazanis called "present" – in effect abstaining from the vote in a sign of their opposition to the mix of tax hikes and spending cuts it included. However despite the dissidents, there was never any danger to the package, which was backed by pro-European opposition parties. A total of 251 voted ‘Yes’, 32 voted ‘No’ and 8 ‘Present’, while 9 deputies were absent. (Reporting by Angeliki Koutantou and Renee Maltezou; writing by James Mackenzie ; editing by Costas Pitas )

Posted On : Published By : Tom Whipple
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Greece Struggles to Rally Support for Its Proposals

Photo Euclid Tsakalotos, the Greek finance minister, on Friday at a meeting of the Syriza party, which was said to be tense because of serious objections among legislators over the additional austerity measures that are laid out in the proposals. Credit Alkis Konstantinidis/Reuters BRUSSELS — Just hours after abandoning its anti-austerity position and accepting tough terms to try and secure another bailout, Greece ’s governing party struggled on Friday to rally domestic support for its abrupt reversal while influential voices in Germany and Eastern Europe expressed skepticism about whether Greece would really follow through on pledges to be more fiscally responsible. With a Sunday deadline looming for a decision on whether to cut Greece adrift, a crunch point that all sides see as Greece’s last chance to avoid bankruptcy and stay in the euro, the chances of a deal seemed to hang less on the precise details of Greece’s […]

Posted On : Published By : Tom Whipple
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In Athens, Greeks Wonder Whether Tsipras Folded or Restored Dignity

Photo Prime Minister Alexis Tsipras of Greece, seated, was applauded by members of his governing Syriza Party at the Parliament building in Athens on Friday. Credit Jean-Paul Pelissier/Reuters ATHENS — Did Prime Minister Alexis Tsipras betray his principles and cave in to Greece ’s creditors? Or did he fight valiantly and succeed in establishing that his nation’s debt load is not sustainable and has to be reduced? Those were the questions being asked across Greece on Friday in the wake of Mr. Tsipras’s abrupt decision to give the creditors nearly all of what they have sought throughout the long and contentious negotiations over keeping Greece afloat. From the halls of Parliament to streets filled with people who have suffered through five years of severe economic hardship, Greeks were struggling to process the news, gird themselves for further budget cuts and assess what they had gotten for their efforts to […]

Posted On : Published By : Tom Whipple
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Greece Needs $83 Billion in Fresh Funding

BRUSSELS—Greece will need €74 billion ($82.55 billion) in fresh funding, the three institutions overseeing the eurozone bailout program said in their assessment of the country’s request for a new aid package, according to three European officials. The €74 billion could include €16 billion from the International Monetary Fund, should the Washington-based institution decide to participate in the new aid program, the officials said. A fourth official said some funding could come from Greece raising money on debt markets. Two officials said the institutions—which, along with the IMF, include the European Commission and the European Central Bank— found Greece’s proposals for new overhauls and budget cuts to be a basis for negotiating a new bailout “under certain conditions.” The development indicates some of the struggles that could lie ahead this weekend, when eurozone finance ministers and leaders meet to decide on how much money they are willing to commit to […]

Posted On : Published By : Tom Whipple
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Greek Debt Crisis 2015

Pro-Euro protesters gather in front of the parliament during a rally in Athens. REUTERS/Christian Hartmann LATEST: France says Greek proposals "serious and credible" Following is the latest news on Greece’s debt crisis after euro zone leaders set Athens a deadline of the end of the week to come up with convincing reform proposals. All times are in GMT. 0852 – Eurogroup chief Jeroen Djisselbloem says a "major decision" on Greece could be made at the planned meeting of euro zone finance ministers on Saturday. 0817 – French President Francois Hollande says negotiations between Greece and its international creditors must resume with the aim of reaching a deal after the country came up with "serious and credible" proposals. 0801 – French Economy Minister Emmanuel Macron says he is reasonably optimistic that Greece will reach an aid-for-reforms deal with its creditors. 0746 – France’s European affairs minister says the latest proposals […]

Posted On : Published By : Tom Whipple
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Oil rises on hopes for China, Greece but demand worries weigh

A man (R) refuels his motorcycle at an Aegean Oil gas station in Athens February 10, 2015. Oil prices rose on Friday, lifted by a rebound in Chinese stock prices and hopes that the Greek debt crisis could be resolved, but worries about oversupply and slowing demand limited gains. Brent crude oil LCOc1 was up 31 cents at $58.92 a barrel by 0839 GMT. So far this month, the international benchmark has lost more than 7 percent. The day’s gains lagged those seen in stock markets, as worries about global demand growth kept oil prices in check. The International Energy Agency (IEA) said on Friday that oil prices are set to come under further pressure from easing global demand and an expanding glut of crude, while a rebalancing of the oil markets may last well into next year. The IEA, the West’s energy watchdog, said it expected global demand […]

Posted On : Published By : Tom Whipple