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Byproduct of fracking spilled in North Dakota

Spill of product used during hydraulic fracturing reported in North Dakota near the Canadian border. Photo by David Gaylor/Shutterstock BISMARCK, N.D., Aug. 7 (UPI) — The North Dakota Department of Health reported more than 4,000 barrels of a product associated with hydraulic fracturing spilled near the Canadian border. The state said it was notified by Samson Resources of a spill of brine in Divide County, situated in the northwest of North Dakota at the Canadian border. Of the 4,260 barrels spilled, the Department of Health reported 225 barrels were recovered . No surface waters were impacted. The brine release is at least the sixth such incident reported this year. In May, Oasis Petroleum reported its fourth release of brine, known also as produced water, in the state. Energy companies inject brine, or salt water, to improve oil and gas production from shale deposits. The Federal Environmental Protection Agency said […]

Posted On : Published By : Tom Whipple
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Canadian oil exports hit low mark for year

Canadian energy regulator reports total crude oil exports for May were at their lowest point for the year. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Aug. 7 (UPI) — Canada reported total oil exports for May were at their lowest level for 2015, though slight increases have emerged while the country moves into recession. The National Energy Board in Canada reported total exports through May, the last full month for which it has data. Government data show total crude oil exports for May at 2.8 million barrels per day, about 10 percent less than April and the lowest monthly total for the year. The wildfire threat is high in the Pacific Northwest, with provincial response teams in British Columbia and Saskatchewan battling the blazes. In May, producers Canadian Natural Resources and Cenovus Energy curbed production, closed facilities and evacuated staff from Alberta operations during wildfire outbreaks. Fires were as close […]

Posted On : Published By : Tom Whipple
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Sinking diesel prices, glut alarm U.S. refiners ahead of peak season

Gas and diesel pumps along with gas prices are shown at an Exxon gas station in Carlsbad, California May 28, 2008. Falling diesel futures and ballooning supply have alarmed U.S. refiners about when, or even if, demand may pick up ahead of the peak winter season, potentially hurting crude oil prices amid the year-long rout. Futures plunged 16 percent in July, stockpiles are at four-year highs and demand is down 3.7 percent, all signs refiners’ gains from strong summer gasoline demand may not be sustained this winter. Over the past five years, diesel futures prices have risen by an average of 4 percent in July and a further 4 percent in August, ramping up ahead of the fall and winter when demand from farmers and heating oil customers rises. "That was one area that impacted us negatively in the mid-continent," said George Damiris, executive vice president at HollyFrontier Corp. […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple
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U.S. shale drillers struggle amid slumping prices: Kemp

Various Halliburton equipment being stored at the equipment yard in Alvarado, Texas June 2, 2015. North America’s shale drillers are struggling with the renewed slump in oil prices, despite cutting costs, boosting output, and in some cases employing hedging to improve realized prices. Stock prices for most of the main shale drillers have fallen faster than the price of U.S. light crude since the middle of April. Spot WTI has fallen 20 percent since mid-April but the share price of Pioneer Natural Resources has dropped 30 percent and Continental Resources is down almost 40 percent over the same period. Both companies increased production during the second quarter. Pioneer produced 197,000 barrels of oil equivalent per day (boepd) in April-June, up from 194,000 in January-March, while Continental reported output of 227,000 boepd, up from 207,000. Pioneer’s production is mostly from the Permian Basin and Eagle Ford in Texas, while Continental’s […]

Posted On : Published By : Tom Whipple
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Ruble’s Seventh Week of Losses Has Taken Drop Too Far for ING

The ruble fell, extending its seventh straight weekly decline, as ING Groep NV and VTB Capital said the Russian currency’s retreat with oil has gone too far. A 14 percent depreciation since the end of June, the most among 31 major currencies tracked by Bloomberg, has pushed the ruble’s relative strength index below 30 for the past week, the threshold signaling to some technical analysts that an asset is oversold. With the price of Brent crude trading near $50 a barrel, the exchange rate should be closer to 61 against the dollar, VTB Capital analysts Maxim Korovin and Tatiana Zueva said in an e-mailed note. Dmitry Polevoy, the chief economist for Russia at ING Groep NV in Moscow, echoed the view, saying the ruble’s fair value is closer to 61-62, as much as 5 percent stronger than it is currently trading. While the world’s largest energy exporter’s state budget […]

Posted On : Published By : Tom Whipple
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Ukraine crisis: Why a lack of parts has hamstrung Russia’s military

A Russian Mi-26 helicopter: Ukraine stopped delivering engines for the military versions Russia’s defence firms have been hit not only by Western sanctions but also by a breakdown in business ties with Ukraine. For decades under Soviet rule, Russia’s strategic industries had close links with partners in Ukraine, all centrally controlled from Moscow. But relations soured last year, with Ukraine’s pivot to the West, Russia’s annexation of Crimea and the pro-Russian insurgency in eastern Ukraine. The EU and US banned military exports to Russia, saying Moscow was supplying the insurgents with sophisticated heavy weapons and regular troops. Moscow denied the allegations. Equipment blocked Last month, Russian Deputy Prime Minister Dmitry Rogozin told parliament that Ukrainian components were used in the production of 186 types of Russian military equipment. That is a serious problem, he admitted, and Moscow could resolve it only by 2018. Back in June 2014, Ukrainian President […]

Posted On : Published By : Tom Whipple
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Global Oil Supply More Fragile Than You Think

Oil pumps image via shutterstock. Reproduced at Resilience.org with permission. Many oil companies had trimmed their budgets heading into 2015 to deal with lower oil prices. But the rebound in April and May to $60 per barrel from the mid-$40s suggested that the severe drop was merely temporary. But the collapse of prices in July – owing to the Iran nuclear deal, an ongoing production surplus, and economic and financial concerns in Greece and China – have darkened the mood. Now a prevailing sense that oil prices may stay lower for longer has hit the markets. Oil futures for delivery in December 2020 are currently trading $8 lower than they were at the beginning of this year even while immediate spot prices are $4 higher today. In other words, oil traders are now feeling much gloomier about oil prices several years out than they were at the beginning of […]

Posted On : Published By : Tom Whipple
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Peak Oil and what our response should be

Peak Oil will change the way the world works and our long-held assumptions about the world around us is going to be overturned. Peak oil will render millions of people jobless. Those who depend on food made thousands of kms away from where they stay will find food very expensive. That includes all of us who stay in big cities. So the future is a bit rocky. What should our response be? The intuitive thing that people think when confronted with the problem of oil depletion is that the answer lies in oil conservation. Oil conservation is a good idea but of little help when it comes to tackling the systemic changes that peak oil brings. Why is peak oil missed by the mainstream? I see two reasons. One is human nature which likes to avoid bad news and always believes in the magical power of science and technology. […]

Posted On : Published By : Tom Whipple
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Oil Price Outlook Still Bearish Despite Slight Gains

HONG KONG–Oil prices nudged higher in Asia trade Friday, though the near-term outlook remains bearish. Traders are awaiting U.S. non-farm payrolls data later in the day, which could signal firmer near-term demand. That would help trading sentiment as a supply overhang has been the biggest price driver over the past few months. Yet analysts say the downward slide in oil prices probably has more room before hitting bottom. “There is absolutely no fundamental strength now. It does not look like that the market will reverse any time soon,” says Gnanasekar Thiagarajan, director of Commtrendz Risk Management. Brent crude oil on London’s ICE Futures Exchange slipped below $50 per barrel this week and is now trading at $49.84 per barrel, up 32 cents from the previous settlement. On the New York Mercantile Exchange, light, sweet crude futures for September delivery traded at $44.93 a barrel at 0410 GMT, up 27 […]

Posted On : Published By : Tom Whipple