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Why Shippers Are Turning to LNG-Powered Vessels

When TOTE Inc., a shipper that operates between the U.S. and the Caribbean, launched its latest container ship last month, the 760-foot craft carried a certain distinction: It’s only the second of the massive vessels worldwide fueled by liquefied natural gas. The first was launched four months earlier by the same company. TOTE is among a growing number of shipowners turning to natural gas at a time of record output, stringent emission rules and churning oil prices. About 70 vessels of all sizes worldwide of are now powered by LNG, up from 42 in just two years, according to DNV GL, which certifies ships for safety. By 2020, the number may pass 1,000. “More companies see natural gas as a viable alternative fuel source, given the abundance of supply and the relatively stable prices,” Peter Keller, executive vice president of Princeton, New Jersey-based TOTE, said in a telephone interview. […]

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Oil Drillers Face Shrinking Credit Lines as Banks Revalue Assets

Oil producers in the U.S. are about to see their credit lines shrink, just when they need the money most. The latest round of twice-yearly reevaluations is under way, and almost 80 percent of oil and natural gas producers will see a reduction in the maximum amount they can borrow, according to a survey by Haynes and Boone LLP, a law firm with offices in Houston, New York and other cities. Companies’ credit lines will be cut by an average of 39 percent, the survey showed. "There’s going to be a reduction to the majority of these credit lines," said Neal Dingmann, an analyst at SunTrust Robinson Humphrey Inc. "It’ll make a lot of these companies reduce a bit more on spending." In many cases, banks have first claim on assets in a bankruptcy, and the size of a loan is tied to how much an oil producer’s acreage […]

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Fracking Firms That Drove Oil Boom Struggle to Survive

As energy companies drill fewer wells, some small firms that frack wells face bankruptcy. A wave of bankruptcies and closures is sweeping across the oil patch, with dozens of hydraulic-fracturing companies at risk, industry experts say. Most of the companies that help oil-and-gas explorers drill and frack wells are small, privately owned and just a few years old. They are part of a flood of new entrants in the energy business—one that is drying up as oil prices languish below $50 a barrel. One of the latest casualties is Pro-Stim Services. Launched in 2011 with backing from Turnbridge Capital LLC, a private-equity firm, the company did work for oil-and-gas producers eager to coax more fuel out of the ground in places like Texas and Louisiana. “The Haynesville Shale was blowing and going at that time,” said Bubba Brooks, who founded the company in Longview, Texas, after working in the […]

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After Volkswagen Revelation, Auto Emissions Tests Come Under Global Scrutiny

Photo The Volkswagen plant in Wolfsburg, Germany. The emissions cheating scandal at Volkswagen has initiated a reconsideration of how pollution tests are carried out worldwide. Credit Alexander Koerner/Getty Images In the United States, automakers conduct their own emissions tests and submit the results to the government. In Europe, automakers pick who conducts the tests and where they are done. And these two regulatory systems are considered the world’s gold standards. Questions about the wisdom of allowing automakers so much sway in how air pollution standards are enforced grew on Wednesday after the resignation of Volkswagen’s chief executive , following the company’s diesel emissions cheating scandal . Regulators in several European countries have opened investigations, attorneys general in the United States have joined federal inquiries, and there has been broader criticism of Volkswagen , and diesels, in markets from South Korea to Brazil. Volkswagen has admitted installing software in 11 […]

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Oil Companies in Europe Seek Creative Funding as Lenders Retreat

Oil services companies in Europe are finding alternative ways to raise cash and repay debt after falling crude prices made it difficult for them to get funding from traditional sources. Dolphin Group AS has sought to persuade private-equity and hedge funds to finance projects exploring and mapping seabeds in return for interest tied to sales, according to people familiar with the matter. At least two Norwegian drillers are planning to sell and lease back ships to raise cash and fund operations as they struggle to access loan and bond markets, said the people, who asked not to be identified because the matters are private. Energy companies are being shut out of bond markets and lenders are reducing credit lines after prices dropped about 60 percent from last year’s peak. Services companies in Europe are starting to run out of cash as producers from Royal Dutch Shell Plc to Petroleo […]

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As UN says world to warm by 3 degrees, scientists explain what that means

As nations around the world prepare to sign a global climate treaty in Paris this December at the United Nations Conference of the Parties (COP21), the U.N.’s climate chief has said thatthe world is still on track for dangerous warming. Most leaders and scientists have agreed that limiting the global average temperature rise to 2 degrees Celsius over the next century could yet ward off the worst effects of climate change . But the world remains on a trajectory to experience an increase of 3 C — even if the national emission reduction pledges to be codified in the Paris treaty are implemented — said Christiana Figueres, executive secretary of the U.N. Framework Convention on Climate Change. Her comments came ahead of visiting Pope Francis’ U.N. General Assembly speech on Friday, when he is widely expected to weigh in on the dangers of climate change. Al Jazeera asked scientists […]

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Putin works to counter impact of low oil prices

Russian President Vladimir Putin says budget planners need to work to counter the impact of low crude oil prices and other external pressures. File photo by Luo Xiaoguang/Pool MOSCOW, Sept. 23 (UPI) — A Russian economy struggling under the dual pressures from sanctions and low crude oil prices needs to work to overcome recession, the Russian president said. "In the present environment, it is particularly important to provide a set of measures to overcome the economic recession and maintain the role of the federal budget as one of the leading development tools," President Vladimir Putin said in a statement. The Russian economy teetered on the brink of recession when entering fiscal year 2015. In early September, the Bank of Russia said it was keeping the key rate at 11 percent annually because of higher inflationary risks and "persistent risks of considerable economy cooling." The International Monetary Fund in January […]

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Russian Economy Ministry Opposes Higher Oil Tax to Defend Output

Russia’s Economy Ministry criticized a proposed tax increase on the nation’s main revenue source, crude producers, saying it may hurt output and the budget in the long term. The oil-extraction tax formula proposed by the Finance Ministry last week would hurt “the economics of working deposits and in fact would ’kill’ production at the most efficient fields in terms of tax performance,” Deputy Economy Minister Nikolay Podguzov said in an e-mailed statement. “Clearly, if production decreases, taxes also fall.” Struggling with its first recession in six years, Russia’s budget may gain more than 600 billion rubles ($9.1 billion) of additional revenue next year if the government raises the crude output levy, according to the Finance Ministry. That’s a “significant” overestimation, Podguzov said. While President Vladimir Putin told the government to weigh the tax proposal on Tuesday, there’s no final decision yet, Finance Minister Anton Siluanov said. Shares in the […]

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How long will fossil fuels last?

The end, said a reincarnated Cassandra, is nigh. Abundant supplies of fossil fuels will end, bringing down the economic order with it. After all, she argued, at current rates of production, oil will run out in 53 years, natural gas in 54, and coal in 110. We have managed to deplete these fossil fuels – which have their origins somewhere between 541 and 66 million years ago – in less than 200 years since we started using them. Cassandra – the Princess of Troy – had been blessed with the gift of prophesy by the Greek God, Apollo. In her modern avatar, she projected how many years these fuels would last by measuring the R/P ratios (that is the ratio of reserves to current rates of production) of fossil fuels. She juxtaposed it with the World Energy Outlook study by the International Energy Agency, which estimated that even with […]

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We Should Have Seen This Refugee Crisis Coming

There are some things we can never know: The grief of a Syrian father as he finds his three-year-old son lifeless on the beach; how it feels to leave your home and community behind in the dark of night, knowing you may never return, with nothing but the need to keep your family safe from harm. But we should be able to know when and where the next migration will occur. We should be able to predict how many people it will affect and the impact on surrounding areas. We have the technology—right here, right now—to create a new, agile, insightful model that will predict mass migrations and help us better serve displaced families even before they are displaced. We can do all this now. And we must. Over the past few weeks I have watched along with the rest of the world as the refugee crisis reached a […]

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Oil edges up on falling U.S. inventories, but Asia concerns to drag

An oil pump jack can be seen in Cisco, Texas, August 23, 2015. Oil prices edged up early on Wednesday after U.S. crude stocks were estimated to have dropped last week, stripping some supplies out of an oversupplied market that has seen prices more than halve since June 2014. Industry group the American Petroleum Institute reported that U.S. crude stockpiles fell 3.7 million barrels last week, with stocks at the Cushing, Oklahoma delivery point for U.S. crude futures alone down almost 500,000 barrels. [API/S] U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $46.56 per barrel at 0051 GMT, up 20 cents from their last settlement. Globally traded Brent futures LCOc1 were at $49.19 per barrel, up 11 cents. But traders said some downward pressure was likely to build during Asian trading. "Oil, like other commodities, is in the middle of a glut. Most say there are […]

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Oil Price Forecast to Stay Below $60 Through Next Year

Analysts are growing even more bearish about the oil price, predicting that crude is set to stay below $60 a barrel through next year as the market struggles to recover from a supply glut. Even as the oil price lingers at levels not seen since the depths of the financial crisis, many analysts and investors are repeating a new crude mantra: lower for longer. A survey of 13 investment banks by The Wall Street Journal cut their average forecast for Brent crude, the international price gauge, by $9 to $58.70 a barrel, compared with last month’s survey. For West Texas Intermediate, the U.S. oil marker, the average forecast is for $54.40 a barrel, also down $9 from August. “There is still a lot of excess oil around and that will limit any material price improvements until the second half of 2016,” said Gareth Lewis-Davies, an oil strategist at BNP […]

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Oil Prices Fall Ahead of Inventory Data

NEW YORK—U.S. oil prices slid Tuesday on expectations that data would show U.S. stockpiles of crude oil and refined products at a record high. Prices erased some losses late in the session, with gasoline and diesel prices turning positive on a report that a major pipeline had closed some of its lines. Light, sweet crude for October delivery settled down 85 cents, or 1.8%, at $45.83 a barrel on the New York Mercantile Exchange. The October contract expired at settlement Tuesday. The more-actively traded November contract fell 60 cents, or 1.3%, to $46.36 a barrel. Oil prices have traded in a tight range for several weeks, as falling U.S. production supports the market but concerns about global demand weigh on prices. On Tuesday, worries about Chinese growth sent global markets reeling. Investors looked ahead to the Caixin manufacturing activity reading for September, due early Wednesday in China. China is […]

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Oil prices dip as traders take profit following sharp jump

A customer holds a nozzle to fill up his tank in a gasoline station in Nice December 5, 2014. Crude oil prices fell in early Asian trading as traders took profit following a 4 percent rise in the previous session. U.S. West Texas Intermediate (WTI) crude futures were trading at $46.23 per barrel at 0024 GMT (0824 EDT), down 45 cents from their last settlement. Globally traded Brent futures were at $48.51 per barrel, down 41 cents. The dip in prices came after oil rallied on Monday, with U.S crude surging more than 4 percent on signs of declining stockpiles and a fall in drilling activity, which implies lower future oil production. A Reuters poll on Monday forecast that U.S. crude inventories as a whole fell by 2.1 million barrels last week. [EIA/S] Traders also focused on the soon-to-expire front-month contract in the West Texas Intermediate (WTI), which serves […]

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Big oil importers struggle to capitalize on cheaper fuel bills

Oil tanker Saturn sailing under the Marshall Islands flag is seen by the Parana River, in front of the Rosario port, Argentina September 11, 2015. Big energy importers in emerging markets were expected to benefit from plunging oil prices, but with China’s growth slowing and their exports dwindling, only a handful have been able to capitalize on cheaper fuel. Investor disappointment is evident in a broad emerging market rout – Turkish and Indonesian stocks are down around 30 percent in dollar terms this year. "It’s a source of disappointment that we haven’t seen the full impact of lower commodity prices," said Yacov Arnopolin, portfolio manager at Goldman Sachs Asset Management. Initial signs were more encouraging. Last December, the International Monetary Fund predicted that cheaper oil would boost global growth as much as 0.7 percentage points in 2015. Investors also welcomed moves by importers India and Indonesia to cut fuel […]

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Iran Forum Offers Europe’s Companies Post-Sanctions Opening

An employee displays a dress at a luxury fashion store inside the Isfahan City Center shopping mall in Isfahan, Iran. Executives from some of Europe’s biggest companies are aiming to consolidate their links with Iran as the Islamic Republic prepares to rejoin the global economy. Some 500 representative from companies including Alstom SA, RWE AG, the Tehran Stock Exchange and the National Iranian Oil Co. will meet in Geneva on Thursday and Friday to discuss everything from trade finance to business diplomacy at the second Europe-Iran Forum. The event is the first major investment conference to take place since Iran reached a deal with international powers in July to ease economic sanctions in exchange for curbs on its nuclear program. While Switzerland became the first country to lift trading restrictions on Iran last month, companies are still bound by U.S. and European Union bans for now. Europe is “in […]

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What Does Volkswagen Mean for Diesel Prices?

The recent uproar over Volkswagen ’s diesel vehicles could spur drivers to switch to gasoline vehicles, analysts say. Would that affect diesel prices? A world-wide shift away from diesel vehicles would reduce demand for the fuel, further lowering prices. But if the shift were limited to cars in the U.S. and Europe, it might not have much of an effect. In developed nations, increased fuel efficiency and more use of vehicles that run on electricity or other fuels is already expected to limit demand for both gasoline and diesel. The global diesel market is facing a glut that could last for years . Refiners have invested in new diesel capacity in the past decade, but demand growth has lagged behind expectations. Countries including the U.S., Saudi Arabia and China are competing to sell their diesel around the world, weighing on prices. Diesel futures have plunged in the past year […]

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Drilling Contractor Weatherford Cancels Fund-Raising Effort

One of the biggest drilling contractors in the world abandoned its efforts to raise about $1 billion in cash after investors hammered its stock, in sign that Wall Street’s love affair with energy finance is cooling along with hopes that oil prices will rise anytime soon. Weatherford International Ltd. WFT 10.70 % said Monday morning that it planned to sell a combination of shares and convertible bonds for unspecified potential acquisitions. The company’s shares quickly fell about 17%, to $8.41, prompting the company to cancel the offerings just 14 hours after unveiling the plan. “While investor interest was strong for this offering, we are unwilling to sell securities at prices that do not reflect the value we have created at Weatherford,” the company said. A Weatherford spokeswoman declined to comment beyond the company’s press release. The about-face helped Weatherford’s stock regain some of Monday’s losses; in 4 p.m. trading […]

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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. […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 )

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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 […]

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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 […]

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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 […]

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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 […]

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Energy Regulator Alleges Total Manipulated U.S. Natural Gas Market

American regulators have accused French oil company Total SA of manipulating the price of natural gas in the U.S. southwest, the latest move in a widening crackdown on energy-market machinations. From 2009 to 2012, the French company’s Houston-based subsidiary made money-losing gas purchases intended to move prices in a way that helped it make money on other trading positions on at least 38 occasions, the Federal Energy Regulatory Commission said. According to the regulators, the alleged scheme was conducted by traders on the Total Gas & Power North America West Desk, led by supervisors Therese Nguyen and Aaron Hall. FERC didn’t reveal how much money it believed Total made from the trades, or whether consumer bills were affected. The French oil company issued a written denial, saying it was convinced that no Total employee “committed any of the FERC’s allegations.” Total said it is “fully cooperating with the U.S. […]

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U.S. Gulf of Mexico share of global active offshore rigs declines since 2000

graph of weekly propane and propylene inventories, as explained in the article text Source: U.S. Energy Information Administration, based on Baker Hughes Inc. Note: GOM is Gulf of Mexico. In response to the decline in crude oil prices since mid-2014, the number of active offshore rigs has declined worldwide, dropping close to 20%—304 offshore rigs were operating in August 2015, down from 377 in August 2014. During this period, the number of active offshore rigs in the U.S. Gulf of Mexico (GOM) dropped more rapidly, falling by 46%. Over the past 15 years, the U.S. GOM’s share of active offshore rigs worldwide has declined significantly—from almost half of all active offshore rigs worldwide in 2000 to less than 20% since 2008. In the U.S. GOM, technology advancements accelerated the development of the deepwater (areas where the water depth is greater than 1,000 feet). The move to deeper waters prompted […]

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California drought and impending El Niño raise fears of levee breaks

LOS ANGELES — California’s historic drought is in its fourth year and gloom-and-doom scenarios of its impact on everything from killing the state’s vegetation and triggering bug infestation to destroying farming jobs have been trickling in daily. Now, there is another fear: The prolonged drought may have weakened California’s more than 13,000 miles of levees, which could result in floods and affect the quality of water for millions of Californians. That’s a scary prospect for parts of the state that could get doused with torrential rain this winter, thanks to an El Niño weather front triggered by unusually warm Pacific Ocean temperatures. And the mere mention of levee breaks evokes terrifying images of the devastation Hurricane Katrina wreaked on New Orleans 10 years ago. A Mississippi State University civil engineer sounded the alarm in a recent article in Science magazine . “If the drought ends with heavy rainfall-induced flooding, […]

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Study calls for US natural gas pipeline replacement to reduce GHG emissions

As energy industry and government officials alike wrestle with the best way to limit the release of methane into the atmosphere, a new study reveals that US cities with programs calling for the replacement of aging natural gas pipeline have 90% fewer leaks per mile than cities without such programs. The study, led by researchers from Stanford University and published in the journal "Environmental Science & Technology Letters," demonstrates "how well pipeline replacement programs have worked," Rob Jackson, the study’s author, said in an interview Monday. Researchers studied programs to replace pipelines made of cast iron and other outdated materials in three US regions, the cities of Durham, North Carolina and Cincinnati, Ohio, and Manhattan Island in New York City. "We identified 132, 351 and 1,050 leaks in Durham, Cincinnati and Manhattan, respectively, across 595, 750 and 247 road miles driven," the study reported. Article continues below… Gas Daily […]

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Texas’ Earthquake Study Gets Off The Ground

The $4.5 million study is intended to provide big picture information on whether there is a link between hydraulic fracturing’s disposal wells and seismic activity. Work is underway on the multi-million dollar TexNet Seismic Monitoring Program, designed by Texas lawmakers to gather and disseminate research on any relationship between disposal wells and an unexpected spate of earthquakes in North Texas. State Rep. Rafael Anchia, a Democrat from Dallas, wrote the legislation this year, which passed as part of the state budget and became effective in September. “Our community is rightfully concerned about the unusually high seismic activity in Dallas, Irving and Farmers Branch,” Anchia said in a statement. The “study should help us get to the bottom of it.” Bringing industry, academia and the government together will ensure that different perspectives will be represented, said Scott Tinker, director of the Bureau of Economic Geology at the University of Texas. […]

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Total Cuts Oil Output Target as Low Prices Expected to Persist

Total SA, Europe’s second-biggest oil company, scaled back its production target for 2017 as it announced a further round of investment cuts and project delays to protect its dividend. Total expects to produce 2.6 million barrels of oil equivalent a day, compared with a previous forecast of 2.8 million barrels a day, the company said Wednesday before holding an investor day in London. The measures are a sign that oil majors are extending their belt-tightening into next year and 2017 after companies from Chevron Corp. to Royal Dutch Shell Plc announced large spending cuts for 2015. "We are preparing the group to face low oil prices for a long time," Total Chief Financial Officer Patrick de La Chevardiere told reporters in London. Total said the new measures will allow it to fund dividends by 2017 from the cash it generates pumping, refining and selling oil, without the need to […]

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Wyoming Seeks More Funds to Clean Up Abandoned Wells

Wyoming is moving forward with sweeping new rules to double the money oil and gas companies must put aside before drilling new wells, a measure prompted by the large number of abandoned wells that litter the state. The new regulations, which would increase the amount of bonding fees companies must pay from $75,000 to $150,000, were given initial approval this month by the state’s oil and gas conservation commission. They are still subject to a 45-day public comment period and a final vote by the commission, which is chaired by Gov. Matt Mead. The office of Mr. Mead, a Republican, didn’t immediately respond to requests for comment Tuesday, but state regulators say he supports the proposed changes. For years, Wyoming and other states have struggled to plug tens of thousands of wells abandoned after the energy booms. Without financially solvent parties to take ownership of the wells, they become […]

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US Catholic groups debate divesting from fossil fuels

When Pope Francis speaks to Congress on Thursday, environmentalists expect him to renew his call for rich countries to do more to combat climate change, and some believe that effort should begin with Catholic institutions in the U.S., which are facing a small but vocal effort to pressure them to divest from the fossil fuel industry. “The [divestment] conversations are happening now at a level they weren’t a year ago,” said Kevin Ahern, a religious studies professor at Manhattan College. “Pope Francis is trying to ask the church institutions, ‘How do we really embody what we’re teaching?’” Pope Francis puts GOP in a corner on climate change Pope’s comments on climate sparks debate on coal In an encyclical issued in June, the pope delivered a dramatic and unambiguous rebuke of humanity’s environmental stewardship . “We know that technology based on the use of highly polluting fossil fuels … needs […]

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Fitch Ratings: Russian gas pipeline faces obstacles

Ratings agency questions durability of Russian plans to twin existing Nord Stream gas pipeline through the Baltic Sea. File photo by Kodda/Shutterstock MOSCOW, Sept. 22 (UPI) — Funding and market challenges could get in the way of further progress in Russian plans to add on to an existing European gas pipeline, Fitch Ratings says. The existing twin Nord Stream pipeline through the Baltic Sea to Germany carries about 1.9 trillion cubic feet of gas per year to the European market. An expansion, Nord Stream II, would relieve geopolitical constraints on conventional gas network through Ukraine, which hosts about a quarter of the Russian gas headed to Europe. "We believe raising multi-billion dollar project financing for Nord Stream II in the capital markets would probably be much harder now," Fitch Ratings said in a statement. "This is because Western sanctions have significantly hindered international funding to Russian corporations, even those […]

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Oil Prices Fall on Crude Oversupply Concerns

By Georgi Kantchev LONDON–Oil prices slid on Tuesday pressured by continuing concerns about the global oversupply of crude. Oil has been trading in a narrow band in recent weeks after falling to more than six-year-lows in the summer on worries about an economic slowdown in China, the world’s second largest consumer of crude. Dropping U.S. output has provided some support for crude, but inventory levels in the U.S. remain elevated, especially in petroleum products like gasoline. That suggests the glut is unlikely to abate soon. Meanwhile, producer heavyweights like Saudi Arabia have continued to pump oil at a rapid pace in a bid to secure more market share. "The oversupplied fundamentals have taken center stage during the last 3-4 months, with bears regaining control," said David Hufton of brokerage PVM. Brent crude, the global oil benchmark, fell 1.7% to $48.86 a barrel on London’s ICE Futures exchange. On the […]

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Oil prices dip as traders take profit following sharp jump

A customer holds a nozzle to fill up his tank in a gasoline station in Nice December 5, 2014. Crude oil prices fell in early Asian trading as traders took profit following a 4 percent rise in the previous session. U.S. West Texas Intermediate (WTI) crude futures were trading at $46.23 per barrel at 0024 GMT (0824 EDT), down 45 cents from their last settlement. Globally traded Brent futures were at $48.51 per barrel, down 41 cents. The dip in prices came after oil rallied on Monday, with U.S crude surging more than 4 percent on signs of declining stockpiles and a fall in drilling activity, which implies lower future oil production. A Reuters poll on Monday forecast that U.S. crude inventories as a whole fell by 2.1 million barrels last week. [EIA/S] Traders also focused on the soon-to-expire front-month contract in the West Texas Intermediate (WTI), which serves […]

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Oil Rally Fizzles as Iran Advances in Deal to Revive Exports

Oil fell in New York as Iran made progress on an accord to lift sanctions on its exports, threatening to add to the surplus in global markets. West Texas Intermediate futures declined as much as 2.3 percent, after climbing 4.5 percent on Monday. Iran’s cooperation with inspectors is aiding the investigation of the country’s past nuclear activities, the International Atomic Energy Agency told world powers in Vienna on Monday. Successful implementation of the July 14 deal would allow the OPEC member to resume crude sales halted by sanctions. Iran’s vow to increase output “at any cost” to reclaim market share will potentially add to a global surplus that Goldman Sachs Group Inc. predicts may keep prices low for the next 15 years. Oil’s slump is taking its toll on shale drilling in U.S., where production has fallen from the highest level in more than three decades. “Oversupply is being […]

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Oil prices edge up as U.S. drilling declines

Oil pumps are seen at a MAX oil station in Yangon April 21, 2014. Oil prices edged up in early trading in Asia on Monday as U.S. drilling slowed and analysts estimated that $1.5 trillion worth of planned American production was uneconomical at prices of $50 per barrel or lower. Crude oil prices have plunged almost 60 percent since June 2014, when soaring global production started to clash with slowing demand. This includes losses of more than a quarter since June this year as a sharp slowdown in China has sparked concerns over the health of the world economy. Analysts said the low prices were beginning to impact production as drillers slow down new projects, especially in cost-sensitive North America where drillers react fast to changing prices. U.S. energy firms cut oil rigs for a third week in a row last week, a sign that the latest crude market […]

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Hedge funds no longer sure oil prices will fall further

An oil pump jack can be seen in Cisco, Texas, August 23, 2015. Hedge funds continued to pare short positions in U.S. crude oil last week even as the previous short-covering rally ran out of steam. The unusual concentration of hedge fund short positions built up between June and August has been partially unwound, reducing some of the persistent selling pressure evident in the market during the third quarter. Speculators are not yet ready to bet heavily on a rebound in prices but the bearishness that dominated the market over the summer is dissipating. Hedge funds and other money managers reduced their gross short position in the main NYMEX U.S. crude futures and options contract by 14.5 million barrels in the week ended Sept. 15 ( link.reuters.com/her65w ). Hedge funds have reduced their gross short position for five consecutive weeks by a total of more than 52 million barrels, […]

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$50 Oil Will Cut Budgets, New Projects to a Sliver of Previous Estimates

Azerbaijan 2016 Oil, Gas Production To Be Steady Around 2015 Levels Operators need to chop between 20 percent 30 percent on new projects, trimming budgets throughout the supply chain and services sector – double what analysts say must be squeezed out on average. Instead of focusing on cuts, operators must delve into project optimization, efficiencies and smarter ways of doing more with less. Wood Mackenzie’s analysis estimates that $1.5 trillion of uncommitted spending on new conventional projects and North American unconventional oil is uneconomic at $50 per barrel. Investment in the upstream is actually down by $220 billion in 2015 and 2016, compared to pre-oil price crash projections. A reduction of 46 onshore North American projects have been deferred. “We estimate that as much as $1.5 trillion of investment spend destined for new (pre-sanctioned) and U.S. tight oil projects is now out of the money, or in the starter […]

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Cheap Food Eases Pain of Slumping Oil in Mideast Wary of Unrest

Countries in the Middle East and North Africa that subsidize food for their citizens are catching a break, even as the global oil slump hammers the region’s economy. From Iran to Morocco, the cost of importing basic grains such as wheat and barley will plunge by as much as a third to the lowest in at least five years, according to the Rome-based United Nations’ Food & Agriculture Organization. The FAO will release global data in October. After two years of bumper global harvests, cheaper grain will help ease the blow of a plunge in oil revenue in a region that supplies more than a third of the world’s crude but can’t produce enough of its own crops. Many people in the area rely on their governments to ensure affordable basic food supplies. In 2010 and 2011, surging food costs contributed to street protests from Oman to Egypt, Tunisia […]

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U.N.-Brokered Libya Peace Talks Teeter on Collapse

CAIRO—United Nations-brokered peace talks aimed at reconciling Libya’s two rival governments teetered on the edge of collapse Monday, as the deadline for an accord passed. The talks aim to create a unified governing body and end a four-year power vacuum that has devastated the country’s economy and led to the growth of an illegal people-smuggling network that has become a focal point of the largest refugee crisis in decades. A framework deal for a national unity government including officials from the two competing administrations was to have been presented Sunday. It was unclear on Monday whether talks were still proceeding or the deadline had been extended. The U.N.’s mission in Libya didn’t comment on the lapsed deadline, and officials from rival camps couldn’t be immediately reached. Both parties have jockeyed for influence and control of Libya’s oil resources and central bank. Armed fighting between forces loyal to each side […]

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Unrest in Turkey disrupts vital KRG border

A man waves a Kurdistan flag as a Turkish military truck escorts a convoy of Peshmerga vehicles at the Ibrahim Khalil border crossing, also called the Habur border gate, on Oct. 29, 2014. (KADIR BARIS/Reuters) The main economic artery between the Kurdistan region and international markets has been severely disrupted this month, as Turkey’s customs authorities have repeatedly closed the Ibrahim Khalil border over security concerns. As the fight between Turkish security forces and the Kurdistan Workers’ Party (PKK) has escalated – including airstrikes in northern Iraq’s mountains and targeted killing of police by the PKK – Turkey has besieged areas suspected of supporting the PKK near the border… 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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Kurds Lose Fight to Sell Crude Oil in U.S. After Iraq Sues

Iraq’s self-ruled Kurds can’t sell Iraqi crude oil in the U.S. under a court decision that puts a fresh hurdle in the path of Kurdish efforts to achieve financial independence from the central government in Baghdad. The U.S. Court of Appeals for the Fifth Circuit in New Orleans dismissed an attempt by the Kurdistan Regional Government to overturn a judge’s earlier decision against its planned sale of oil to an unidentified buyer in the U.S. The KRG’s eventual sale of the disputed cargo in Israel made the appeal moot, the court said in a ruling. The case began last year when Iraq’s central government sued to seize a tanker loaded with crude from the country’s Kurdish region that had sailed to the Gulf of Mexico and anchored 60 miles (97 kilometers) off the coast of Texas. The appeals court upheld an order by a judge in Houston requiring the […]

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Report: Post-sanctions Iran still tricky

Military influence over economic affairs in Iran means complex issues will remain in a post-sanctions climate, report finds. File photo by Mohammad Kheirkhah/UPI BATH, England, Sept. 21 (UPI) — Western investors looking to capitalize on easing sanctions pressure on Iran’s energy sector should exercise a degree of caution, analysis finds. Iran’s economy emerged from recession in December. Finance Minister Ali Tayebnia said the momentum should continue into 2015 as sanctions pressures ease in response to a July nuclear agreement reached with the five permanent members of the U.N. Security Council, plus Germany. Sanctions imposed on Iran’s energy sector curb the country’s ability to generate revenue from oil and gas sales. The Central Bank of Iran, however, said a nine-month growth rate of 3.6 percent represents an increase of $54 billion for the nation’s economy. With more of its oil expected back in the global market, Iranian President Hassan Rouhani […]

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