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Offshore Africa could add more rigs

Much of the growth in offshore exploration and production is expected in Africa, a report from the U.S. Energy Information Administration finds. File photo by A.J. Sisco/UPI WASHINGTON, Sept. 22 (UPI) — Much of the growth in offshore exploration and production is expected from Nigeria and Angola, a report from the U.S. federal government said. Oil field services company Baker Hughes reported 31 rigs actively exploring for or producing natural gas in U.S. waters for the week ending Sept. 18. That’s down by half from the same week last year. A daily brief from the U.S. Energy Information Administration said the Gulf of Mexico’s share in the global offshore rig mix has declined from about half the world total in 2000 to less than 20 percent in the years since 2008. "Most of the more recent growth in active offshore rigs outside the United States has occurred in Africa. […]

Posted On : Published By : Tom Whipple
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Petrobras Sees ‘Great Wave’ of $100-Oil Never Coming Back

It’s unlikely that oil prices will ever return to $100 a barrel and Petroleo Brasileiro SA needs to work with suppliers to manage the price rout, an executive at the state-run oil producer said Tuesday. “We were all surfing the great wave of $100 a barrel,” Cristina Pinto, the company’s executive manager for exploration and production said at an event in Rio de Janeiro. “It won’t get to $100 again. If it gets to $70, we’ll be happy.” Shares tumble 60% in a year as Brent sinks to less than $50 a barrel The world’s largest producer in ultra-deep waters is working to optimize technology to cut costs and save in everything from buoys to riser pipes used at its offshore platforms, Pinho said. Chief Executive Officer Aldemir Bendine said Monday that the company seeks to reduce costs to withstand a combination of lower oil prices and a weaker […]

Posted On : Published By : Tom Whipple
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China manufacturing contracts at fastest pace in more than 6 years

Sign up for quick access to a wealth of global business news, including: China manufacturing contracts at fastest pace in more than 6 years Newspaper + Premium online Newspaper + Premium online Premium Full FT.com subscription Premium Full FT.com subscription Standard Full news & archive Standard Full news & archive Trial Try Premium online Trial Try Premium online Price Monthly Annual $66.30 $11.77 per week $53.00 $9.25 per week $36.00 $6.45 per week $1.00 for 4 weeks $1.00 for 4 weeks FT Alphaville plus selected FT blogs yes yes yes yes Unlimited FT.com article access yes yes yes yes Unlimited mobile and tablet access yes yes yes yes Unlimited fast FT yes yes yes yes 5 year company financials archive yes yes yes yes The LEX column yes yes no yes ePaper access yes yes no yes Three exclusive weekly emails yes yes no yes Daily newspaper delivery yes […]

Posted On : Published By : Tom Whipple
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Texas Has Seen Peak Oil Production For Now, Gas Production Still Increasing

The Texas RRC Oil & Gas Production numbers are out. They came out on a weekend this month. All RRC data is through July. The EIA data is through June. Keep in mind that the RRC data is incomplete, that is why the chart lines droop on the end. However the EIA data is from the EIA’s Petroleum Supply Monthly , the data of which the EIA says now comes directly from the states, and reflects the complete best estimate of oil production. (Click to enlarge) According to the EIA data, Texas crude + condensate peaked, so far, in March and declined in April, May and June. However the incomplete data from the RRC shows production likely dropping sharply in April, up in May then flat for June and July. (Click to enlarge) Dr. Dean Fantazzini has an algorithm that uses past and present RRC data and predicts what […]

Posted On : Published By : ASPO-USA
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Oilsands may face severe water shortages, Athabasca River study suggests

The study also confirmed that overall flows in the Athabasca River are declining. That’s something that was already known and thought to be mainly because of the melting and shrinking of glaciers, seen in this photo of the river’s headwaters. (David Sauchyn) The river that provides water to the oilsands industry is much more prone to multi-year droughts than modern records show, suggesting that the industry’s current level of water use may not be sustainable, a new study suggests. The oilsands industry needs 3.1 barrels of fresh water to produce a barrel of crude oil from oilsands mining and 0.4 barrels of fresh water to produce a barrel of crude oil from oilsands drilling, according to the Canadian Association of Petroleum Producers . That water comes mainly from northern Alberta’s Athabasca River, and oilsands account for 72 per cent of estimated water use from the river. The government regulates […]

Posted On : Published By : Tom Whipple
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Clinton says she opposes Keystone XL pipeline

U.S. Democratic presidential candidate Hillary Clinton speaks at the Community Forum on Substance Abuse at The Boys and Girls Club of America campaign event in Laconia New Hampshire, September 17, 2015. Democratic U.S. presidential candidate Hillary Clinton said on Tuesday that she opposes the Keystone XL pipeline. "I have a responsibility to you and other voters," Clinton, a former secretary of state, said at a town hall event in Iowa. “I think it is imperative that we look at the Keystone pipeline as what I believe is the distraction from the important work we have to do to combat climate change.” “Therefore, I oppose it,” she said. (Reporting by Alana Wise; Editing by Tim Ahmann )

Posted On : Published By : Tom Whipple
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U.S. FERC alleges Total manipulated natgas market in 2009-2012

People walk past the entrance of French oil giant Total headquarters in the financial and business district of la Defense in Courbevoie near Paris October 21, 2014. U.S. federal energy regulators on Tuesday alleged traders at French energy company Total SA manipulated the natural gas market in the southwest United States between June 2009 and June 2012. The staff alleged the scheme involved making "largely uneconomic trades for physical natural gas during bidweek designed to move indexed market prices in a way that benefited the company’s related positions." This is the latest case in which FERC has alleged manipulation of the power or natural gas markets using loss leader trading – in this case physical trades – to benefit a position in a benchmark or other financial index. In recent years, FERC has alleged violations of similar types of trading manipulation by JPMorgan Chase & Co, which paid $285 […]

Posted On : Published By : Tom Whipple
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ConocoPhillips Said to Be Near Deal to Sell Canadian Assets

ConocoPhillips, the third-largest North American oil and gas producer, is nearing a deal to sell several Western Canadian assets to various buyers including Canadian Natural Resources Ltd., people with knowledge of the matter said. An agreement could be reached as early as this week, said the people, who asked not to be identified because the discussions are private. A deal hasn’t been finalized and talks could still fall apart, the people said. Production from the properties, located in Alberta, British Columbia and Saskatchewan, represents about 20 percent of the Houston-based company’s Canadian volumes outside of oil sands. The properties produce the equivalent of almost 35,000 barrels of oil and gas a day and include a net working interest in 2.4 million acres for future drilling, according to the marketing material for the assets, an area slightly larger than Yellowstone National Park. Based on that, the group of assets could […]

Posted On : Published By : Tom Whipple
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Colorado feeling oil price squeeze

Low price of crude oil taking its toll on Colorado state revenues and job prospects, fiscal report says. File photo by Gary C. Caskey/UPI DENVER, Sept. 22 (UPI) — The low price of crude oil is expected to contribute to further contractions in Colorado employment and state revenues, the government’s fiscal report said. The state revenue and economic forecast for September said revenue should increase 3.9 percent through fiscal year 2016, a 0.8 percent contraction, or $78.9 million, from a June forecast from the state. "The lower forecast is mostly due to slightly slower job and income gains in the state than projected in June, the recent declines in the stock market, and further weakening in oil prices that will lower income tax revenue from royalty payments," the report said. Data from oil field services company Baker Hughes show Colorado’s upstream energy sector, as reflected in the number of […]

Posted On : Published By : Tom Whipple
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Coming soon: $2 per gallon gas

Lower seasonal demand and slumping crude oil prices should keep retail gasoline prices down, industry forecasts say. File photo by Eduardo Sverdlin/UPI WASHINGTON, Sept. 22 (UPI) — Continued weakness in crude oil markets and lower seasonal demand should keep U.S. consumer gasoline prices lower, industry forecasts said. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.28, down about 1 cent from Monday for the lowest price for this date since 2004. The Labor Day holiday in the United States marks the end of the so-called summer driving season. Last week, refineries started switching to a winter blend of gasoline, which is cheaper to produce because of fewer environmental safeguards. Brent crude oil prices, meanwhile, at around $48 per barrel are roughly 2.7 percent lower than at the start of September. Patrick DeHaan, a petroleum analyst with retail price-watcher GasBuddy.com, said […]

Posted On : Published By : Tom Whipple