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With Iran’s Help, India Eludes China in Race for Gas Riches

Anyone looking for the biggest immediate impact from Iran’s nuclear deal may want to turn away from the Middle East and toward the Indian subcontinent. With U.S. sanctions easing, India is racing to build a port in Iran that will get around the fact that its land access to energy-rich former Soviet republics in Central Asia has been blocked by China and its ally Pakistan. “We’re seeing the latest manifestation of the Great Game in Central Asia, and India is the new player,” said Michael Kugelman, a South Asia expert at the Washington-based Woodrow Wilson International Center for Scholars. “It’s had its eyes on Central Asia for a long time.” While the world focuses on what Iran’s opening means for Israel and Arab nations, the ramifications are also critical for Asia. Closer Iran-India ties would allow New Delhi’s leaders to secure cheaper energy imports to bolster economic growth and […]

Posted On : Published By : Tom Whipple
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Petrobras Oil Scandal Leaves Brazilians Lamenting a Lost Dream

Photo Comperj, a giant refinery and petrochemical complex built by the state oil company, Petrobras, in Itaboraí, Brazil. The unfinished project was originally planned to cost $6.1 billion, but a state audit put the price closer to $50 billion. Credit Andre Vieira for The New York Times Alberto Youssef, a convicted money launderer and former bon vivant, sat in a Brazilian jail cell in March of last year, getting ready to tell his lawyers a story. It was about an elaborate bribery scheme involving Petrobras , the government-controlled oil giant. He opened with a dire prediction. “Guys,” Mr. Youssef said, “if I speak, the republic is going to fall.” To those lawyers, Tracy Reinaldet and Adriano Bretas, who recently recounted the conversation, this sounded a tad melodramatic. But then Mr. Youssef took a piece of paper and started writing the names of participants in what would soon become known […]

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China’s July exports slump 8 percent, raises pressure for more stimulus

Piles of steel pipes to be exported are seen in front of cranes at a port in Lianyungang, Jiangsu province March 7, 2015. Chinese exports tumbled 8.3 percent in July, their biggest drop in four months and far worse than expected, reinforcing expectations that Beijing will be forced to roll out more stimulus to support the world’s second-largest economy. Imports also fell heavily from a year earlier, in line with market forecasts but suggesting domestic demand might be too feeble to offset the weaker global demand for China’s exports. Economists had forecast exports to fall just 1 percent, after a 2.8 percent uptick in June, but the data on Saturday showed depressed demand from Europe and the first drop in exports to the United States, China’s biggest market, since March. Exports to the European Union fell 12.3 percent in July while those to the United States dropped 1.3 percent. […]

Posted On : Published By : Tom Whipple
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China’s energy asset-rush stalls on crude slump, graft probes

A woman walks past the entrance of the headquarters of China National Offshore Oil Corp (CNOOC) in Beijing September 23, 2010. As global oil giants struggle with plunging earnings, Chinese state oil firms are unlikely to be waiting in the wings to buy any unwanted assets. After pouring tens of billions of dollars into foreign energy projects in the last two decades, China’s rush to purchase overseas oil and gas projects is over – at least for now – and some state firms are even looking to sell assets. China, the world’s second-biggest oil consumer, invested more than $140 billion in the sector in the period from 1993, according to Thomson Reuters data. But Chinese firms have slammed the brakes on after a slide in crude prices has slashed returns on some investments and with deals coming under greater scrutiny since Beijing stepped up an anti-graft campaign two years […]

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July job gains may favor September interest rate rise

A job seeker holds literature while waiting to speak with a representative of the Golden Gate National Parks Conservancy at a career fair in San Francisco, California July 14, 2015. The number of U.S. jobs probably rose at a healthy pace in July and wages likely rebounded in data due on Friday, providing further signs of an improving economy that could allow the Federal Reserve to raise interest rates in September. A Reuters survey of economists forecast U.S. nonfarm payrolls increased by 223,000 last month, matching June’s job gains, a number which would be slightly above the monthly average for the first half of the year. Though the pace of hiring has slowed from last year, it remains double the rate needed to keep up with population growth. The Labor Department will release its closely watched employment report on Friday at 8:30 a.m. (1230 GMT) "We expect this report […]

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U.S. adds rigs in July, Baker Hughes said

Baker Hughes reports a net gain in rig deployments across the North American energy sector. File Photo by UPI/Gary C. Caskey HOUSTON, Aug. 7 (UPI) — While down year-on-year, oil services company Baker Hughes said Friday there were a net five more rigs deployed across the United States in July than in June. Baker Hughes reported net rig counts for July . Rig counts serve as a barometer for the health of the exploration and production side of the energy sector, which has been depressed because of the low price of crude oil. Crude oil prices are down more than 50 percent from last year because of oversupplies in a weak global economy. Much of the increase in supply comes from U.S. shale oil basins. Companies operating in U.S. shale have said they’re able to produce more with fewer rigs because of the improved efficiencies. Others have started adding […]

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U.S. Oil-Rig Count Rises for Third Week

The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, had fallen sharply since oil prices headed south last year. The rig count had dropped for 29 straight weeks before rising for two weeks, falling, then rising again. Oil prices fell nearly 60% from June 2014 to a six-year low in March, as soaring production from the U.S. and other countries overwhelmed global demand. There are still about 58% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably recently. In late May, several U.S. shale-oil companies said they were ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices. According to Baker Hughes, gas rigs were up by four to 213 this week. The U.S. offshore rig count was up four […]

Posted On : Published By : Tom Whipple
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International Rig Count Still Falling

The Baker Hughes International Rig Count is out. I have decided to try something new with the charts. That is to compare the current year’s rig count with the previous two years count and to insert, within the charts, the percent change for this year as compared to last year. Also, this is the total rig count, Oil and Gas. Also the charts are not zero based. I do this in order to better emphasize the monthly change. July usually sees a big jump in rig counts. This year there was a very tiny July increase, only a fraction of the increase we usually see for July. Rig Count Total International *The Total International rig counts does not include the USA, Canada or the FSU. The Total International rig count was down 28 in July to 1118. Last July it was up3 to 1344. Rig Count Middle East The […]

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EIA: US refinery inputs hit record high

Gross inputs to US refineries exceeded 17 million b/d in each of the past 4 weeks, according to the US Energy Information Administration . That’s a level not previously reached since EIA began publishing weekly data in 1990. The rolling 4-week average of US gross refinery inputs has been above the previous 5-year range during 2010-14 every week so far this year, reflecting both higher refinery capacity and higher utilization rates. Lower crude oil prices and strong demand for petroleum products, primarily gasoline, both in the US and globally, have led to favorable margins that encourage refinery investment and high refinery runs. Refinery margins are currently supported by high gasoline crack spreads that reached a peak of 66¢/gal on July 8, a level not reached since September 2008. “For the past several years, distillate crack spreads have consistently exceeded those for gasoline, but since May, this trend has reversed,” […]

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Plunging Oil Prices a Boon for Logistics Companies

The logistics of the oil market is proving to be a lucrative business, even as the price of crude plunges toward multi-year lows. Companies that transport and store oil and refined products, as well as manage shipping terminals reported soaring profits this week. The glut of crude driving down prices is also creating more work for petroleum logistics firms, also known as midstream companies. Higher volumes of oil being brought to market generally means more business for operators of pipelines, tanker trucks, storage tanks and marine terminals. Tesoro Logistics TLLP -0.42 % LP reported second-quarter income of $72 million on Wednesday, more than twice its net income as the same quarter a year ago, citing big gains in oil production and an improving climate for its terminal and transportation businesses. Spectra Energy Partners SEP -1.53 % and Arc Logistics Partners ARCX 0.00 % LP also posted earnings this week […]

Posted On : Published By : Tom Whipple