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Alaska seeks balanced energy agenda

Alaska facing a mutlimillion dollar deficit as most oil pipelines running far below peak capacity. Photo by Heather Snow/Shutterstock ANCHORAGE, Alaska, Sept. 1 (UPI) — Alaska needs to exploit its vast natural resources, but do so in a way that heeds the growing threats of climate changes, the state’s lieutenant governor said. President Barack Obama is in Alaska touting the dual agenda of taking the steps needed to slow the impacts of climate change while ensuring state revenue from the oil and gas industry remains durable. Obama’s plan to cut greenhouse gas emissions while at the same time signing off on arctic drilling permits for Royal Dutch Shell has earned both praise and condemnation. Speaking at an Alaskan arctic conference in Anchorage, Lt. Gov. Byron Mallott said the state needs to exploit the oil and gas resources it has, but in a way that recognizes the industry’s impact on […]

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Texas regulator clears oil and gas company of causing quakes

AUSTIN, Texas (AP) — The regulatory agency overseeing Texas’ oil and gas industry has determined that a series of small earthquakes in North Texas likely wasn’t caused by drilling operations by an Exxon Mobil subsidiary. The preliminary findings mark the first decision by the Texas Railroad Commission since it was authorized last year to consider whether seismological activity was caused by injection wells, which store briny wastewater from hydraulic fracturing. The commission ordered hearings after a university study suggested two companies’ wells were responsible for quakes that shook Reno, Texas, in 2013 and 2014. Commission investigators concluded that a well where Exxon Mobil subsidiary XTO Energy pumps millions of gallons of the wastewater likely didn’t cause the quakes, but also said there wasn’t enough evidence to demonstrate the earthquakes were naturally occurring. Parties have 15 days to respond. The report was released Monday, a day before a new law […]

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Russia says oil output could decline if prices stay low

Russian Deputy Prime Minister Arkady Dvorkovich speaks during an interview with Reuters journalists in Moscow September 25, 2012. Russia will not deliberately cut oil production to prop up prices, however its output may decline if prices remain low, local news agencies quoted Deputy Prime Minister Arkady Dvorkovich as saying on Tuesday. He also said that Russia was ready to discuss measures aimed at oil price stabilization with the Organization of the Petroleum Exporting Countries (OPEC) and other key producers, TASS news agency reported. "It’s quite possible that if oil prices remain at the low levels for long, oil production could decline, as had been the case before. Anyway, we don’t expect any significant cuts," Dvorkovich said according to TASS. Oil prices almost halved from last year mainly due to oversupply. OPEC kingpin Saudi Arabia, in a strategy designed to squeeze out rivals, such as U.S. shale oil firms, has […]

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Russia Says It Won’t Cut Oil Production to Support Prices

By James Marson MOSCOW–Russia won’t cut crude-oil production in order to support prices, although output may fall if prices remain low for a sustained period, Russian news agencies quoted Deputy Prime Minister Arkady Dvorkovich as saying Tuesday. Russia’s position has come into focus in recent weeks as a renewed oil-price plunge has battered its economy and those of members of the Organization of the Petroleum Exporting Countries, such as Russian ally Venezuela. Russia has repeatedly said it had no plans to cut oil production to prop up prices, but a Kremlin aide said Monday that Russian President Vladimir Putin would discuss "possible mutual steps" to stabilize the global price for oil at a meeting with Venezuelan President Nicolás Maduro on Thursday, without elaborating what those steps could be. Mr. Dvorkovich said Tuesday that Russia, which vies with Saudi Arabia as the top global oil producer, is prepared to discuss […]

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Opinion: OPEC Divorce And Self-Destruction Thanks To Saudi Oil Strategy?

by Dalan McEndree for Oilprice.com “If you are the world’s leading energy economy, you produce energy, that’s what you do.” The first quote modifies a GEICO commercial describing a free-range chicken (If you’re a free range chicken, you roam free, that’s what you do), the second, the famous John Maynard Keynes quote about markets (The market can stay irrational longer than you can stay solvent), the third, another famous Keynes quote (In the long run, we’re all dead). Together, the three quotes provide a framework for analyzing Saudi options heading into the December 4 OPEC meeting in Vienna and its choices vis-à-vis the OPEC outsiders (all members but Saudi Arabia and its Gulf Arab allies, Kuwait, UAE, Qatar): reconciliation, separation, or divorce . If You’re a Free Range Oil Producer… Despite low oil prices, Saudi Arabia is maintaining its investment in its oil industry. Saudi Aramco Chairman Khalid Al-Falih […]

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Oil falls 3 percent on weak China factory data

A customer prepares to fill the tank of her car at a fuel station in Sint Pieters Leeuw December 5, 2014. Oil prices fell more than 3 percent on Tuesday after official data showed China’s giant manufacturing sector, the engine powering the world’s biggest energy consumer, contracted at the fastest pace in three years. China’s official Purchasing Managers’ Index (PMI) fell to 49.7 in August from 50.0 in July, reinforcing concerns over the world’s second-largest economy. The figures helped spur a retreat in oil prices after three days of hefty gains. Investors took profits after Brent and U.S. crude both soared more than 8 percent on Monday, traders said. "It was primarily the China fear factor," Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt, told Reuters Global Oil Forum. Benchmark Brent crude dropped $2.13 to a low of $52.02 a barrel, and was trading around $52.15 by 0815 […]

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Oil Prices Pull Back After Breathless Rally

Oil prices fell in Asian trade Tuesday as weak Chinese manufacturing data and profit-taking pared some of crude’s 25%-plus gains of the previous three trading sessions. U.S. oil prices had surged by around 27.5% in the past three days , the largest such rally since Iraq’s invasion of Kuwait in August 1990. Much of Monday’s gains came after reports that the Organization of the Petroleum Exporting Countries may consider cutting output to boost oil prices, and on signs of a decline in U.S. oil production. Despite hitting multiyear lows toward the end of August, Nymex crude prices rebounded sharply in recent days to finish up 4.4% for the month, while Brent crude gained 3.7% over the same period. But soft Chinese economic data helped to weaken oil prices in early Asian hours Tuesday. China’s official manufacturing purchasing managers index fell to 49.7 in August from 50.0 a month ago, […]

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U.K. Stocks Fall as Investors Weigh Data Showing China Slowdown

U.K. stocks declined as investors considered further indications that the Chinese economy is slowing down. Bwin.party Digital Entertainment Plc dropped 1.5 percent after its takeover battle took another twist with a revised proposal from 888 Holdings Plc. BP Plc slid 1 percent as oil’s biggest three-day rally in 25 years stalled before U.S. government data forecast to show crude stockpiles expanded. British American Tobacco Plc weighed heaviest on the FTSE 100 Index, falling 2 percent. Drugmakers were also a drag, with AstraZeneca Plc and GlaxoSmithKline Plc losing at least 2 percent. Shire Plc posted the biggest drop, falling 3.1 percent. The FTSE 100 retreated 1.5 percent to 6,154.38 at 8:32 a.m. in London. The equity benchmark slid 6.7 percent in August, its worst month in more than three years, amid investor concern about global growth as China’s economy shows signs of weakening just as the Federal Reserve prepares to […]

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World’s Top Oil Trader Vitol Sees Price Stuck at $40-$60 to 2016

Oil prices will remain stuck at $40 to $60 a barrel into 2016 as rising crude supplies overwhelm demand, according to the world’s largest independent oil trader. The oil-production surplus means stockpiles will keep expanding for “the next few quarters” and excess inventories won’t clear until 2017 at the earliest, Vitol Group BV Chief Executive Officer Ian Taylor said in an interview. The forecast, if realized, would mean oil-producing countries and the energy industry would need to weather a longer downturn than occurred after the financial crisis of 2008-2009, when prices fell as low as $36 a barrel, but recovered to almost $80 within a year. “Oil prices will be stuck between $40 and $60 a barrel this year and in 2016,” Taylor said. “I don’t see much reason to go higher, and we can go lower” because the physical crude oil market is “quite weak” right now. Vitol […]

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NYMEX October gas futures settle at $2.689/MMBtu, down 2.6 cents

The NYMEX October natural gas futures contract fell 2.6 cents Monday to settle at $2.689/MMBtu as traders focused on weather forecasts calling for more moderate temperatures by mid-September. In its six- to 10-day forecast, WSI called for above-average temperatures across the US Northeast, Upper Midwest and large portions of Texas. Below-average temperatures are expected across portions of the Northwest. Further into September, WSI’s 11-15 day forecast calls for unseasonable warmth over a smaller portion of the US, extending from eastern New York through New England, as well as west Texas and portions of the West Coast. "The natural gas market is on the defensive in Monday trade, with a lack of more intense late summer air-conditioning demand pointing to above-average storage injections in the weeks ahead," Citi analyst Tim Evans said. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate […]

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Gas sales give lift to Israel’s Delek Group

Israeli energy company Delek Group expecting forward momentum through future strategic investments. File Photo by Maryam Rahmanian/UPI TEL AVIV, Israel, Aug. 31 (UPI) — After posting strong second-quarter results, the chief executive officer at Israeli energy company Delek said growth should continue through future investments. Delek, which operates in some of the largest natural gas fields in the Mediterranean Sea, said operating profit for the second quarter increased 69 percent to $69 million. Net income swung from a $152 million loss in the second quarter of 2014 to a $5.5 million gain, driven in large part from sales from the Tamar gas field off the Israeli coast. Members of the Israeli government moved in mid-August to clear the way for the full development of offshore natural gas reserves. The Israel Antitrust Authority had ruled that Delek Group and its partners at Noble Energy, which has headquarters in Texas, control […]

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Eni expects to change Egyptian gas dynamics

Claudio Descalzi, CEO of Italian energy company Eni, says latest gas discovery off the Egyptian coast may be a game changer for the country. Photo courtesy of Eni. CAIRO, Aug. 31 (UPI) — The discovery of what may be the world’s largest gas field off the Egyptian coast could be a sea change for the North African country, Italy’s Eni said. Eni announced the discovery of gas in the deepwater Zohr prospect off the Egyptian coast. With an estimated 30 trillion cubic feet of natural gas in place, it’s the largest ever made in regional waters and potentially the largest in the world . "This historic discovery will be able to transform the energy scenario of Egypt," Claudio Descalzi, the chief executive officer of Eni, said in a statement. "This exploration success acquires an even greater value as it was made in Egypt which is strategic for Eni, and […]

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Protests in Iraq Bring Fast Promises, but Slower Changes

Photo A protest in Baghdad’s Tahrir Square last week. The demands for better public services have grown into calls for broad reform. Credit Karim Kadim/Associated Press BAGHDAD — Surrounded by the clamor of protest — a sea of Iraqi flags, vendors selling coffee and melon drinks, protesters singing the national anthem and railing against politicians — two friends paused and described their dreams. “I want to find a job opportunity,” said one of them, Yasir Abdulrahman, 21, who recently earned an engineering degree but remains unemployed. “I want to build a country. I want an opportunity.” His friend Hussein Ali, 22, quit university to support his family and now works as a taxi driver. He said that even the specter of bombings would not keep him away from the square. “We are only thinking of reforms,” he said. “If you want to change, you have to sacrifice yourself.” For […]

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After Peshmerga victory, homes looted and destroyed

Volunteers with Peshmerga forces clash with Islamic State militants in Daquq, south of Kirkuk, on Sept. 30, 2014. (AKO RASHEED/Reuters) In the wake of a recent military victory against the Islamic State (IS) militant group south of Kirkuk, forces belonging to the Kurdistan Regional Government (KRG) have overseen the destruction and looting of homes belonging to displaced Sunni Arab residents.The looting began on Aug. 27 at the end of a major Peshmerga offensive – supported by air strikes by the U.S.-led coalition – which dislodged IS fighters from a half-dozen villages around the Daquq district in southern Kirkuk provinc… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Gas discovery offshore Egypt rivals Mediterranean giants

Eni SPA expects accelerated development of what it describes as a “supergiant gas discovery ” at its deepwater Zohr prospect offshore Egypt. The company will immediately appraise its discovery, which it says might hold 30 tcf of lean gas in place in an area covering 100 sq km. The Zohr 1X NFW discovery well was drilled to a total depth of 13,553 ft in 4,757 ft of water on Egypt’s Shorouk Block 9. The well hit a 2,067-ft hydrocarbon column in a carbonate sequence of Miocene age with 400 m of net pay, Eni said. The company has future plans to target a deeper Cretaceous upside with a dedicated well. Zohr is the largest gas discovery made in Egypt and the Mediterranean Sea, and if early estimates hold true, could become one of the world’s largest natural gas finds, the company said. As Eni begins to fast track development […]

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China factory indexes ebb in new sign of economic weakness

AP Photo HONG KONG (AP) — Chinese manufacturing showed further signs of weakness in August, adding to evidence of an inexorable slowdown in the world’s No. 2 economy despite recent government efforts to support growth. Two factory activity indexes released Tuesday were at multi-year lows. An official manufacturing index based on a survey of factory purchasing managers fell last month to 49.7, the lowest level since August 2012, from 50.0 in July. The index, compiled by the Chinese Federation for Logistics and Purchasing, is based on a 100-point scale on which numbers above 50 indicate expansion. A separate survey, the Caixin purchasing managers’ index, fell to a six-year low of 47.3 from 47.8 in July, although the number was slightly better than a preliminary reading released last month. Caixin’s survey focuses on smaller, private enterprises while the federation’s survey is weighted toward larger, state-owned companies in China’s manufacturing industry, […]

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Big Rail’s little cousins find boon in U.S. oil-by-rail bust

Unused oil tank cars are pictured on Western New York & Pennsylvania Railroad tracks outside Hinsdale, New York August 24, 2015. Amid the rolling mountains surrounding this quiet town in southwest New York state, tucked away on miles-long stretches of underused rail tracks, hundreds of idle oil tank cars attest to the extent of fallout from oil’s rout. The oil tank cars – a year ago sought-after to haul crude from North Dakota to New Jersey – now stand idle as a result of two converging trends: the reversal in U.S. shale oil production and the completion of new pipelines. They show how the pain from the slump in the oil-by-rail industry has spread far and wide. Big rail lines, such as Berkshire Hathaway-owned BNSF Railways or Union Pacific are losing what used to be their fastest-growing source of new traffic; refiners such as PBF Energy are left with […]

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New U.S. oil data shows lower 2015 production: EIA

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. The U.S. oil industry pumped less crude than initially estimated this year, according to new government data that offered the clearest look yet at the impact of drillers’ retrenchment in response to collapsing prices. The downward supply revisions were "unambiguously" bullish for a global market awash with oil, said Credit Suisse global energy economist Jan Stuart, suggesting the oft-cited resilience of U.S. shale producers to lower crude prices might have been overstated. Oil prices surged by as much as $3 a barrel on Monday, with some traders citing the new data. The Energy Information Administration said its new survey-based output data showed the United States pumped a hair below 9.3 million barrels per day in June, down by 100,000 bpd from a revised May figure. The June figure […]

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Walking Oil Rigs Spur Cheaper, Quicker Drilling in Supply Glut

Have you ever seen an oil rig walk ? Some of the newest rigs can travel hundreds of yards to the next well under their own power, lurching along like 150-foot-tall robots on pneumatic legs that raise the equipment five inches at a time, nudging forward at about a foot per minute. While that sounds slow, it is faster and cheaper than dismantling a rig and trucking the parts to a new site nearby. More efficient drilling rigs that cost a third less than just a year earlier are changing the face of the U.S. shale industry, helping boost per-rig output in the four largest fields by at least 40 percent since the crude price plunge began in 2014. While helping producers pump more oil, the new rigs have a downside. Companies such as Helmerich & Payne Inc., Nabors Industries Ltd. and Patterson-UTI Energy Inc. that provide the equipment […]

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Fossil Fuels Losing Cost Advantage Over Solar, Wind, IEA Says

The cost of producing electricity from renewable sources such as solar and wind has dropped significantly over the past five years, narrowing the gap with power generated from fossil fuels and nuclear reactors, according to the International Energy Agency . “The costs of renewable technologies — in particular solar photovoltaic — have declined significantly over the past five years,” the Paris-based IEA said in a report called Projected Costs of Generating Electricity. “These technologies are no longer cost outliers.” The median cost of producing so-called baseload power that is available all the time from natural gas, coal and atomic plants was about $100 a megawatt-hour for 2015 compared with about $200 for solar, which dropped from $500 in 2010. Those costs take into account investment, fuel, maintenance and dismantling of the installations over their lifetimes and vary widely between countries and plants. For instance, commercial rooftop solar installations generate […]

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Canada orders Alberta pipeline closures

Canada issues suspension order for Nexen pipeline systems amid mounting safety concerns. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Aug. 31 (UPI) — Canadian energy company Nexen said safety was its top priority after a provincial regulator ordered dozens of pipelines closed because of maintenance issues. The Alberta Energy Regulator issued a suspension order to Nexen Energy, a Canadian subsidiary of the China National Offshore Oil Corp., calling on the company to shut down more than 90 of its oil and gas networks after the company was found to be in non-compliance with federal regulations. The order came after last month’s report of a failure on the company’s Long Lake pipeline network in the province. About 31,000 barrels of a mixture of oil, water and sand spilled in Alberta from the system. "Given that this company has already had a pipeline failure at this site, the AER will not lift […]

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Canadian Oil Sands Halts Crude Production at Oil-Sands Giant Syncrude

A dump truck is loaded with oil sands at the Syncrude Canada Ltd. mine. CALGARY, Alberta— Canadian Oil Sands Ltd. COSWF 2.60 % , the largest owner of the giant Syncrude oil-sands project, said on Sunday that it has halted production after a fire damaged equipment at its synthetic crude oil processing facility in northern Alberta. The company said the fire, which occurred early Saturday and was extinguished without any injuries, affected pipes connected to a water treatment unit at Syncrude’s heavy oil upgrader on the site of its Mildred Lake oil-sands surface mine. The cause of the blaze is under investigation, it said. While the upgrader’s core machinery wasn’t damaged and the strip mine continues to operate, Canadian Oil Sands said in a statement issued late Sunday that “synthetic crude oil production has been temporarily suspended while a recovery and repair strategy are being developed.” Canadian Oil Sands […]

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Canada’s Oil-Dependent Alberta Province Projects Record Deficit

CALGARY, Alberta—The government of Alberta said Monday its deficit will hit record levels due to the swoon in crude oil prices and an economic slowdown and will consider increasing taxes to reduce that budgetary shortfall. Finance Minister Joe Ceci said Alberta expects the deficit to grow to an all-time high of 5.9 billion Canadian dollars ($4.5 billion) in the fiscal year that began April 1. He said the deficit could hit C$6.5 billion if oil prices remain low, reflecting the province’s reliance on crude production as its chief engine of growth. “There is no doubt that our big challenge is commodity prices that our government in Alberta does not control,” Mr. Ceci said at a news conference in the provincial capital of Edmonton. “No one expected global oil prices to reach levels that they’re at today,” he told reporters. The deficit in Alberta is a poor omen for Canada […]

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Obama to Call for More Icebreakers in Arctic as U.S. Seeks Foothold

ANCHORAGE — President Obama on Tuesday will propose speeding the acquisition and building of new Coast Guard icebreakers that can operate year-round in the nation’s polar regions, part of an effort to close the gap between the United States and other nations, especially Russia, in a global competition to gain a foothold in the rapidly changing Arctic. On the second day of a three-day trip to Alaska to highlight the challenge of climate change and call for a worldwide effort to address its root causes, Mr. Obama’s proposals will touch on one of its most profound effects. The retreat of Arctic sea ice has created opportunities for shipping, tourism, mineral exploration and fishing — and with it, a rush of marine traffic that is bringing new difficulties. “Arctic ecosystems are among the most pristine and understudied in the world, meaning increased commercial activity comes with significant risks to the […]

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Obama Makes Urgent Appeal in Alaska for Climate Change Action

Photo Lt. Gov. Byron Mallott of Alaska hugged Gov. Bill Walker, back to camera, after President Obama arrived Monday in Anchorage. Credit Doug Mills/The New York Times ANCHORAGE — President Obama on Monday issued a global call for urgent action to address climate change , declaring that the United States was partly to blame for what he called the defining challenge of the century and would rally the world to counter it. “Climate change is no longer some far-off problem; it is happening here, it is happening now,” Mr. Obama said here at an international conference on the Arctic. “We’re not acting fast enough. I have come here today, as the leader of the world’s largest economy and its second-largest emitter, to say that the United States recognizes our role in creating the problem, and we embrace our responsibility to help solve it.” In remarks that bordered on the […]

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Monthly Crude Oil and Natural Gas Production

Beginning with the June 2015 data, EIA is providing estimates for crude oil production (including lease condensate) based on data from the EIA-914 survey. Survey-based monthly production estimates starting with January 2015 are provided for Arkansas, California, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Pennsylvania, Texas, Utah, Wyoming, and the Federal Gulf of Mexico. For two states covered by the EIA-914—Oklahoma and West Virginia—and all remaining oil-producing states and areas not individually covered by the EIA-914, production estimates are based on the previous methodology (using lagged state data). When EIA completes its validation of Oklahoma and West Virginia data, estimates for these states will also be based on EIA-914 data. For all states and areas, production data prior to 2015 are estimates published in the Petroleum Supply Monthly. Later in 2015, EIA will report monthly crude oil production by API gravity category for the individually-surveyed EIA-914 states. […]

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EIA: New U.S. Oil Data Shows Lower 2015 Production

NEW YORK, Aug 31 (Reuters) – The U.S. oil industry pumped less crude than initially estimated this year, according to new government data that offered the clearest look yet at the impact of drillers’ retrenchment in response to collapsing prices. The downward supply revisions were "unambiguously" bullish for a global market awash with oil, said Credit Suisse global energy economist Jan Stuart, suggesting the oft-cited resilience of U.S. shale producers to lower crude prices might have been overstated. Oil prices surged by as much as $3 a barrel on Monday, with some traders citing the new data. The Energy Information Administration said its new survey-based output data showed the United States pumped a hair below 9.3 million barrels per day in June, down by 100,000 bpd from a revised May figure. The June figure was also nearly 250,000 bpd below what the EIA had estimated a few weeks ago, […]

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Russian oil company Rosneft reports second-quarter loss

Russian oil company Rosneft boast of ‘dynamics of revenue’ after posting a loss in its second quarter results. Photo courtesy of Rosneft MOSCOW, Aug. 31 (UPI) — Russian oil company Rosneft said profits for the second quarter were down because of market and currency volatility, but performance was better than expected. Rosneft reported second-quarter profits at $1.99 billion, about 22 percent lower than the same period last year. Chairman Igor Sechin in a statement said the second half of the year was characterized by a high degree of volatility in crude oil prices and the value of the ruble, for which the decline against the U.S. dollar helped offset other market factors. "The company demonstrated better dynamics of revenues, earnings before interest, taxes, depreciation, and amortization and adjusted net income in the first half 2015 compared to first half 2014 taking into consideration change in average oil prices, both […]

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Russia, Venezuela to Discuss Potential Steps to Stabilize Oil Prices

MOSCOW—Russian President Vladimir Putin will discuss “possible mutual steps” to stabilize the global price for oil at a meeting with Venezuelan President Nicolás Maduro in China on Thursday, a Kremlin aide said, as both countries grapple with lower prices for their main export. Venezuela, a Russian ally that has been hit hard by plunging oil prices, has been pushing for an emergency meeting with the Organization of the Petroleum Exporting Countries in coordination with Russia to work out a strategy to halt the recent retreat in prices, people familiar with the matter said. The Kremlin aide, Yuri Ushakov, didn’t expand on what potential steps could be taken but said they could be “within the context of Russia’s cooperation with OPEC.” Russia also has been hurt by lower crude prices, as oil and gas account for half of federal budget revenue. But officials have repeatedly said that Russia, which vies […]

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Russia’s Gazprom Posts 29% Net Profit Growth

MOSCOW—Russian state gas giant PAO Gazprom said net profit for the second quarter was up 29% from the same period last year as a higher ruble price made up for lower sale volumes in its most-lucrative European market. Gazprom said net profit stood at 294 billion rubles ($4.6 billion), while revenue was down 4% from the previous year at 1.27 trillion rubles. The lower sales volumes reflect the increased competition that Gazprom is facing from rivals in Russia and in Europe. Total gas production was down 9% in the first six months of the year at 221.3 billion cubic meters, Gazprom said. Sale volumes to Europe slid 7% in the first half of the year, but revenues grew 7% to 947 billion rubles as the weaker Russian currency meant the ruble price was 21% higher than for the same period last year, the company said. Sales volumes and revenue […]

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Europe Oil Consumption Peaked in 2005

Fig 1: Western Europe oil consumption, oil prices in $2014 Total oil consumption peaked 3 times at around 14 mb/d: (1) In 1973, the 1 st oil crisis which was triggered by the Yom Kippur war. The following OPEC embargo was successful because US oil production had peaked 3 years earlier so the US could not increase production to offset OPEC’s reduction (2) In 1979, the 2 nd oil crisis which was caused by Iranian oil production peaking in the mid seventies and the following Iranian revolution, resulting in a global recession in 1982 (3) In 2005, at the beginning of the 3 rd oil crisis when global crude oil production had a peak and declined until 2007 3 main oil consumers Germany, UK and France The oil crises in the 70s brought down consumption by 2 mb/d (oil prices increased 10-fold) through both energy conservation and a recession. […]

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