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Shell may get federal permits for Alaska

Arctic Challenger to be positioned near drilling sites for Shell, which should be getting necessary permits for exploration from the federal government soon. Photo courtesy of Shell Alaska. WASHINGTON, Aug. 12 (UPI) — Shell may soon get the permits necessary to start drilling into potential oil basins in an exploration well off the coast of Alaska, a federal regulator said. The Bureau of Safety and Environmental Enforcement granted permission to Shell in July to drill two wells in the arctic waters off the Alaskan coast. BSEE said the permits excluded drilling into oil-bearing zones because Shell lacks a capping stack, a critical piece of safety equipment, positioned near drilling sites to continue beyond the exploratory phase. Shell’s early efforts off the coast of Alaska were plagued by equipment issues. Shell last month discovered a small breach in the hull of MV Fennica, chartered to carry the safety equipment to […]

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Report: U.S. incomes increase with oil exports

Consultant group finds gross domestic product, incomes, get lift if ban on U.S. crude oil exports is lifted. Photo by tcly/Shutterstock HOUSTON, Aug. 12 (UPI) — Ending the ban on the export of crude oil sourced from U.S. basins would result in a per household labor income increase of $158 per year, a report finds. Consultant firm IHS published an installment in a series of reports reviewing potential benefits of ending the 1970s ban on exports of U.S. crude oil. The report finds the economic activity that would come as a result of ending the ban would support an additional 124,000 jobs on average through 2030, with a peak 293,000 by 2018. A Senate committee on energy voted in July to repeal a 1970s-era ban on crude oil exports. Committee Chair Sen. Lisa Murkowski , R-Alaska, has moved several pieces of legislation aimed at ending a ban on U.S. […]

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France secures LNG from United States

French energy company EDF secures shipments of LNG drawn from U.S. basins. File Photo by UPI/Stephen Shaver HOUSTON, Aug. 12 (UPI) — French energy company EDF secured a deal for liquefied natural gas drawn from reserves in the United States, Cheniere Energy announced. Cheniere and EDF signed a sales agreement for up to 26 cargoes of LNG from its Sabine Pass export terminal through 2019. "Volumes will be sourced from Cheniere Marketing’s LNG supply portfolio, which includes rights under a sale and purchase agreement with Sabine Pass Liquefaction, LLC to purchase any LNG produced from Sabine Pass in excess of that required for other customers," Cheniere said in a statement. Cheniere has designated several dozen cargoes for sale to date, with delivery expected to begin next year. A special permit is needed to send natural gas to companies without a U.S. free trade agreement. Though France has no such […]

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Fracking Pullbacks Fail to Diminish Water Management Market Value

Despite a decline in hydraulic fracturing activity, the value of the fracking water management market remains at $1.9 billion, Lux Research reports. The estimated value of the hydraulic fracturing water management market remains at $1.9 billion for 2015 – not including water transportation and disposal opportunities – despite the sharp decline in fracking activity due to weakened global oil prices. U.S. frac activity remained strong for several months following the start of oil’s decline in July 2014, but finally started to start slow in January. The number of fracs in the United States declined from around 2,300 in October 2014 to 1,350 in February 2015, as companies refocused their efforts on their core regions and most economic resources, according to a recent study by Boston-based Lux Research. Significant pullbacks occurred in the Permian, Eagle Ford and Barnett plays in Texas, while the Marcellus play in northeastern Pennsylvania, which produces […]

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Canadian Heavy Crude Slumps To Lowest In At Least A Decade

CALGARY, Alberta, Aug 12 (Reuters) – Heavy Canadian crude slumped to its lowest level in at least a decade on Wednesday after Enbridge Inc closed two of its main pipelines in the United States because of a leak, piling fresh misery on Canadian oil companies that are close to producing at a loss. Western Canada Select heavy blend crude for September delivery last traded at $20.75 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers, having settled at $19.80 per barrel below on Tuesday. Earlier in the session it hit $21.75 per barrel below WTI, the widest differential since August last year. That pushed the outright price of Canadian heavy crude to around $22.50 a barrel, a level at which some companies will struggle to cover the cost of production, blending and transportation. It was lower than the 2008 trough of $24.62, according to one […]

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World Population Will Nearly Double by 2100

The world population is 7.3 billion presently. It will surpass 11 billion by the end of the century, according to UN Population Division projections The world population is growing at an unprecedented rate. It will nearly double as much as we have today by 2100. Currently, the world population is 7.3 billion. It will be 9.7 million in 2050 and will cross 11 billion by the end of the century, according to United Nations Population Division . The global population growth will be largely driven by Africa. The continent’s current population is 1.2 billion. It is expected to triple or quadruple over the next 85 years. This is all due to consistent rapid growth in population in the region. Nigeria will likely be the biggest contributor if it continues to follow the current trend. United States will also have a significant increase in population. The country is projected to […]

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Nuclear fusion reactor in just five years?

The greatest fusion reactor in our neighborhood sends energy free for the harvesting from about 8 light-minutes away, where it safely burns and flares without any help at all from the small, blue marble that orbits it once a year. But expansion of photovoltaic technologies to capture that solar power has had a hard time competing against the big boys of power: petroleum, coal, and nuclear reactors. It’s no wonder scientists and engineers continue to pursue the dream of harnessing nuclear fusion here on Earth. A “ small, modular, efficient fusion plant ” designed by a team at MIT promises new hope for growth in the fusion industry. Equipment of similar scale and complexity has been constructed in “within about five years” the team notes. By comparison, August 4th marked the fifth anniversary of breaking ground on the world’s biggest nuclear fusion reactor project, the ITER* project. So far, […]

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Peak Oilers Shut Up Forever Please

Princeton University geologist Ken Deffeyes predicted that global oil production would peak on Thanksgiving Day, 2005 . In 2005, daily global oil production averaged 85 million barrels per day. Daily petroleum liquids production in July was 96 million barrels per day. For the past six months global oil prices have been falling steeply. Today West Texas Intermediate was selling for $43.20 per barrel. That means the price per barrel is just over $31 in inflation adjusted 2000 dollars. CNBC cite analysts who project that the price will fall further into the $30s per barrel range soon. Should the price fall to $30 dollars, that would be about $22 per barrel in 2000 dollars. That would be nearly back to what the price was 15 years ago . Read it and weep peak oilers NYMEX

Posted On : Published By : Tom Whipple
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Oil prices fall further as China lets yuan slide

An attendant prepares to refuel a car at a petrol station in Rome January 4, 2012. Crude oil prices continued to fall on Wednesday as China allowed its currency to drop for a second day, triggering concerns over its economic health just as oil production hit multi-year highs. China’s yuan hit a four-year low on Wednesday, slipping further a day after authorities devalued it to support its struggling economy. Analysts noted that China’s overall currency fall was relatively low by historical standards in foreign exchange markets, but were quick to add that China’s case was different. "It is China – the largest consumer of most commodities and a large producer of many – and it’s the yuan, which rarely moves much against the U.S.-dollar and when it does, it traditionally appreciates not depreciates," Australian bank Macquarie said in a note to clients. Tuesday’s fall in the yuan against the […]

Posted On : Published By : Tom Whipple
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Oil Prices Slide Further On Yuan Devaluation

HONG KONG–Oil prices slipped further Wednesday to multi-month lows in the wake of China’s surprise move to devalue its currency, the yuan. Imports of crude oil into one of the largest consuming nations will become more expensive following the devaluation, as most commodities are priced internationally in dollars. China’s decision is also being read as a ploy to revive its sputtering economy, pointing to underlying weakness in its industries. Imports of crude oil into China have so far been robust, but investors are concerned about how long the trend will last. In addition, fears about a widening oil glut increased as the Organization of Petroleum Exporting Countries reported a 0.3% rise in output month-on-month for July, said Daniel Ang, investment analyst at Phillip Futures. Looming new supplies from Iran have also put pressure on prices. Despite low prices, large producers have shown few signs of reducing output, including those […]

Posted On : Published By : Tom Whipple