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China economic activity shows downward pressures persist

A labourer cuts steel bars at a railway bridge construction site in Lianyungang, Jiangsu province, China, September 12, 2015. Growth in China’s factory output eased in October while that for retail sales edged up and investment inched lower, indicating persistent downward pressures on the economy that may require further policy support. Factory output grew slower than expected at an annual 5.6 percent in October, National Bureau of Statistics data showed on Wednesday, missing a Reuters forecast of 5.8 percent and down from 5.7 percent in September. Fixed asset investment rose 10.2 percent in the first 10 months, slightly slowing from a 10.3 percent gain in the January-September period. Analysts polled by Reuters had forecast a 10.2 percent rise. Retail sales growth continued to pick up, expanding at 11.0 percent in October, compared with 10.9 percent in September. Analysts had forecast growth of 10.9 percent in October. "In general, the […]

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China’s electric car production surging

BEIJING, Nov. 10 (Xinhua) — Government support helped China’s electric car production in October jump eightfold year on year to 50,700 vehicles, the Ministry of Industry and Information Technology said on Tuesday. Output of pure electric and plug-in hybrid passenger vehicles in October 2015 was 850 percent and 200 percent higher, respectively, than in October 2014, said the ministry. In the first 10 months, Chinese carmakers produced 206,900 new energy vehicles, three times as many as they did in the same period last year. Intense promotion by the government has brought more and more new energy vehicles onto China’s roads, saving energy and combating pollution. Measures including tax exemptions, subsidies and requirements for government bodies to buy green cars are in place. In March, the Ministry of Transport set a target of 300,000 new energy commercial vehicles on China’s roads by 2020: 200,000 new energy buses and 100,000 new […]

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Keystone’s death bolsters ‘keep carbon in the ground’ camp

A depot used to store pipes for Transcanada Corp’s planned Keystone XL oil pipeline is seen in Gascoyne, North Dakota November 14, 2014. For environmentalists dedicated to killing it, President Barack Obama’s rejection of the proposed Keystone XL pipeline unleashed a moment of euphoria. Activists celebrated with tequila shots at Sierra Club headquarters in San Francisco and in Lafayette Square across from the White House, site of the first anti-Keystone protests in 2011, when to most people it was just another pipeline. But last Friday’s presidential “no” to the 1,200-mile (1931 km) pipeline out of Alberta’s oil sands may signal more than just a single, if remarkable, win for environmentalists. It stands to sharpen the fissure in the green movement between those who believe direct action can jar the world off its fossil fuel habit, and others who say only a collaborative approach that engages governments and corporations can […]

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U.S. Lowers 2016 Crude Output Forecast as Drillers Idle Rigs

The Energy Information Administration cut its U.S. crude production outlook for next year as declining prices are prompting shale drillers to put rigs aside. Cheaper gasoline is expected to stoke demand for the motor fuel. The agency decreased its 2016 forecast by 1 percent to 8.77 million barrels a day, according to its monthly Short-Term Energy Outlook . It boosted its estimate for this year to 9.29 million barrels a day from the 9.25 million predicted last month. America’s oil drillers have sidelined more than half the country’s rigs since October as prices have tumbled. The number of active oil rigs in the U.S. has fallen by 103 in the past 11 weeks to 572, the least in five years, according to data compiled by Baker Hughes Inc. "Total oil production from non-OPEC countries is expected to decline next year for the first time since 2008, because of lower […]

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Everything You Need to Know About the Exxon Climate Change Probe

For years, energy companies have couched the possible effects of climate change-related regulations in public reports to investors as "uncertain," "difficult," or "not possible" to reasonably predict. Now a probe by New York Attorney General Eric Schneiderman is raising questions as to whether the companies knew more than they were letting on. Exxon Mobil received a subpoena last week by the state official seeking documents from as far back as the 1970s in a probe that aims to determine whether oil giant lied to investors and consumers, or withheld information about the effects of climate change. On Sunday, meanwhile, Schneiderman reached a settlement with the largest U.S. coal miner, Peabody Energy, in which the company agreed to include more detailed disclosures in reports to investors about the potential costs of climate-related regulations. Exxon has denied implications that it lied to investors or the public. Peabody neither admitted nor denied […]

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New Jersey is next for offshore wind energy

U.S. government auctions off the rights to develop offshore wind energy installations in the federal waters off the coast of New Jersey. File photo by Teun van den Dries/UPI WASHINGTON, Nov. 10 (UPI) — Two energy companies won the rights to advance wind energy off New Jersey’s coast, where the potential exists to power 1.2 million homes, the government said. RES America Development and U.S. Wind Inc. bid more than $1.8 million collectively for the rights to consider the potential to develop wind energy in the federal waters off the coast of New Jersey. "We are optimistic about the promise of a strong renewable energy future offshore New Jersey, as well as for the entire nation," Abigail Ross Hopper, director of the federal Bureau of Ocean Energy Management, said in a statement. The estimated 344,000 acres off the New Jersey coast has, by the federal government’s estimate, the potential […]

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U.S. shale oil basins to decline

Federal review expects most of the lucrative shale basins in the United States are expected to post declines in crude oil production. File photo by Gary C. Caskey/UPI WASHINGTON, Nov. 10 (UPI) — Only the Permian shale basin in the southern United States is expected to record a year-on-year increase in oil production, federal data show. The U.S. Energy Information Administration in a monthly report on drilling productivity found most of the seven inland shale basins that account for nearly all of the domestic oil production growth between 2011-14 are now in decline. Energy companies are spending less on exploration and production because lower crude oil prices translate to less capital available for investments. The trend in spending is reflected in the decline in the number of rigs deployed across North America. Oil field services company Weatherford said in its report for the third quarter it trimmed capital spending […]

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Crude oil tugs on price at the pump

Consumer gasoline prices are expected to end period of volatility brought on by wild swings in crude oil prices and an end to a season of heavy refinery maintenance. File photo by Eduardo Sverdlin/UPI WASHINGTON, Nov. 10 (UPI) — Midweek fluctuations in crude oil prices and lower processing at refineries are keeping retail gasoline prices from falling dramatically, analysts said. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.21 per gallon, a minor decline from the previous day, but about 0.8 percent higher than last week. Gasoline prices are tied largely to crude oil prices, as well as refinery and transit infrastructure issues. For crude oil prices, last week saw steep spikes and heavy declines amid global macroeconomic data and information showing an increase in Russian crude oil production. Tuesday marks the fourth straight day of declines in the national […]

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Railroads Lose Challenge of Oil-Train Rules

Railroads lost an agency appeal with the U.S. Department of Transportation in a battle over new crude-by-rail rules that require the installation of expensive new brakes on trains hauling hazardous flammable materials. In a ruling issued by its Pipeline and Hazardous Materials Safety Administration last week, the agency denied appeals challenging the new rules, including one from the Association of American Railroads. “While we understand that shippers, carriers, and tank-car manufacturers for Class 3 flammable liquids will face new challenges in the wake of these regulations, we maintain that they are capable of complying with the final rule,” the agency wrote. The rail-industry group could still appeal the decision in court. A spokesman said the organization is reviewing the decision and considering its options. The new rules, issued by the Transportation Department in May , include the phasing in of tougher tank-car standards over several years and requirements for […]

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US EIA lowers Q4 Henry Hub spot gas price forecast by 49 cents to $2.34/MMBtu

The US Energy Information Administration on Tuesday lowered its forecast for fourth-quarter Henry Hub natural gas spot prices to $2.34/MMBtu, 49 cents below its estimate in October. The agency, in its November Short-Term Energy Outlook, also lowered its first-quarter 2016 estimate by 17 cents to $2.83/MMBtu. The agency expects monthly average spot prices to be below $3/MMBtu through June 2016, and below $3.50/MMBtu through the end of 2016. Henry Hub natural gas prices are projected to average $2.69/MMBtu for full-year 2015 and $3.00/MMBtu in 2016, it said. –Jasmin Melvin, [email protected] –Edited by Lisa Miller, [email protected]

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EU looks beyond borders for energy

European energy official says some of its focus on energy security is on areas beyond its immediate borders. Photo by Heather Snow/Shutterstock BRUSSELS, Nov. 10 (UPI) — Some of the key pillars to strengthening energy security in the European Union lie beyond the bloc’s borders, a European energy official said from Brussels. The European economies depend heavily on imports of oil and natural gas from Russia, Norway and elsewhere. Strains on production brought on by lower crude oil prices, and geopolitical conflicts along the border with Russia, have presented risks to European energy sources. Maros Sefcovic, a European leader on energy issues, told delegates gathered at an energy infrastructure forum in Brussels many of the regional energy concerns may have solutions outside of Europe . "Of course being the largest energy importer in the world, our stake in infrastructure does not end at our own borders," he said. The […]

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Bank of England gauges impact of lower oil prices

Bank of England offers measured take on impact of lower crude oil prices, but notes inflation is below a level considered to be healthy. File Photo by Hugo Philpott/UPI LONDON, Nov. 10 (UPI) — With about 60 percent of the drop in crude oil prices linked to demand issues, the Bank of England suggested pressure may be negative for the British economy. Lower crude oil prices have translated to a de facto form of stimulus to consumers and consuming nations, but left exporters struggling to cope with weakened economies. The Canadian economy most recently said it was flirting with recession. In September, the Russian Central Bank warned of a prolonged slump in crude oil prices and said there were "persistent risks of considerable economic cooling" in Russia. The Bank of England said in a November report on inflation there were key market factors to gauge when determining the risks […]

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Oil Prices Kick Off Week Higher, Helped by Chinese Demand Data

LONDON—Oil prices kicked off the week higher, helped by data indicating China’s appetite for crude oil remains strong and a further fall in U.S. drilling activity. Oil prices remain about half of what they were just over a year ago, however, as the global supply of crude continues to exceed demand. A string of weaker economic data out of China, the world’s second biggest oil consumer, has spooked investors in recent months and further depressed prices. Brent crude, the global oil benchmark, rose 0.7% to $47.77 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.6% at $44.50 a barrel. On Sunday, China reported that its October crude imports dropped 5.7% from a month earlier but were up 9.4% from a year earlier. The strong annual import growth largely reflects crude inventory buildup and high refinery activity taking […]

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Oil edges up as OPEC sees strong demand next year

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. Oil futures rose above $47.50 a barrel on Monday as OPEC said it expected global demand to remain strong next year, while weak Chinese trade data and concerns over rising supplies weighed. A weaker dollar further supported oil, with Brent crude for December delivery up 22 cents at $47.64 a barrel by 0905 GMT, after falling more than 4 percent last week. December U.S. crude gained 12 cents to $44.41 a barrel after falling nearly five percent last week. Abdullah al-Badri, Secretary-General of the Organization of the Petroleum Exporting Countries, said he expects that the oil market will become more balanced in 2016 as demand continues to grow. "We see global oil demand maintaining its recent healthy growth. We see less non-OPEC supply. And we see an increase in […]

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IEA Sees OPEC Market Share Growing From 2020 a Rivals Stagnate

OPEC’s share of the global oil market will expand from 2020 as prices recover to $80 and supply outside the group stagnates due to spending cuts, according to the International Energy Agency. The Organization of Petroleum Exporting Countries’ share of global supply will remain steady at 41 percent until 2020 then rise to 44 percent by 2025, two percentage points higher than the IEA forecast a year ago. Production growth from countries not part of OPEC will slow over the next five years and halt by 2020, as crude prices recover to $80 a barrel. OPEC’s decision last year to defend its market share rather than cut production to support prices has curbed growth of rival supplies like U.S. shale oil. While the resulting 40 percent slump in crude prices has “sharply” reduced the group’s revenues, it will eventually prove beneficial for members that are able to increase output, […]

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$80/Bbl Oil By 2020, Says IEA

0836 GMT — The oil markets should be rebalanced and prices should be in the $80 a barrel range by 2020, according to a new report issued by the International Energy Agency. The Paris-based watchdog’s World Energy Outlook 2015 states that the “process of adjustment in the oil market is rarely a smooth one” but that there should be an equilibrium by the end of the decade. The forecast will not be met with much enthusiasm by many of the world’s oil producers, because most rely on oil revenues as the main source of government income. The Dec Brent contract trades flat at $47.19 a barrel.

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Oil Price Drop Threatens Industries That Help Cut Global Warming

The plunge in oil prices risks undermining efforts to reduce the pollution blamed for global warming, especially projects designed to wring more from each barrel of oil, the International Energy Agency concluded in its annual assessment of markets. If the cost of crude remains near $50 a barrel until the end of the decade, cheaper conventional fuels would hold back the development of electric cars and biofuels that are helping curb carbon emissions, IEA said. It also estimated about $800 billion of efficiency improvements in cars, trucks and airplanes would be lost. The findings illustrate the complexity of the United Nations mission to secure a historic deal on reining in fossil-fuel emissions by the end of the year. While lower oil prices are helping the world recover from an economic slump, they’re also raising competitive pressures on technologies such as wind and solar power and making some projects take […]

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OECD cuts world growth forecast

Sign up for quick access to a wealth of global business news, including: OECD cuts world growth forecast 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 no no For 4 weeks receive […]

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OPEC Chief Sees Oil Market Balanced by 2016 on Growing Demand

Global demand for crude will bring more balance to the oil market as soon as next year, according to OPEC Secretary General Abdalla El-Badri and Pulitzer Prize-winning author and energy consultant Daniel Yergin. Demand will rise by about 17 million barrels a day to almost 110 million barrels a day by 2040, with 70 percent of the growth to come from Asia, the head of the Organization of Petroleum Exporting Countries said at an event in Doha. The oil market will rebalance in 2016 or 2017, as demand grows between 1.2 million barrels a day and 1.5 million barrels a day through 2020, Yergin, vice chairman of consultants IHS, said in a speech in Abu Dhabi. “The expectation is that the market will return to more balance in 2016,” El-Badri said Monday. “We see global oil demand maintaining its recent healthy growth. We see less non-OPEC supply. And we […]

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Saudi Arabia sees robust oil fundamentals as rival output falls

An oil tank is seen at the Saudi Aramco headquarters during a media tour at Damam city November 11, 2007. Long-term oil market fundamentals remain robust but prolonged low prices could threaten security of supply and pave the way for a price spike, Saudi Arabia’s vice oil minister said on Monday. The world’s largest crude exporter will continue investing in its oil and gas sector, Prince Abdulaziz bin Salman said in a speech at an Asian energy conference in the Qatari capital Doha. "Supply and demand patterns indicate that the long-term fundamentals of the oil complex remain robust," he said. The comments suggest OPEC heavyweight Saudi Arabia is satisfied with its strategy of not cutting production and allowing low prices to reduce supplies, without losing market share to competitors. Oil prices, at around $47 a barrel, have more than halved since July 2014 on ample supplies. The Organization of […]

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Russia Moving Ahead With Deal to Supply Iran With Surface-to-Air Missiles

MOSCOW—Russia is moving ahead with a deal to deliver advanced surface-to-air missiles to Iran, the head of the country’s state-run industrial holding company said Monday, according to Russian news agencies. “The contract for the delivery of the S-300 to Iran was not only signed, but has already entered into force,” said Sergei Chemezov, the head of Rostec Corp., the conglomerate that includes arms exporter Rosobornexport, according to state news agency RIA Novosti. Less clear, however, is when the missile system might actually be delivered. The Kremlin lifted a self-imposed ban on the delivery of the weapons system this spring, prompting sharp criticism from the U.S. and Israel. The U.S. and its allies worry the air-defense system would blunt their military edge in the Middle East by giving Tehran a more effective weapon to counter aircraft and cruise missiles. Russia concluded a contract with Iran in 2007 worth roughly $800 […]

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Chevron Plans Close to 1,000 Layoffs of Saudi Staff in Kuwait Oil Spat

DUBAI— Chevron Corp. CVX -1.82 % is planning to lay off up to 1,000 employees working in the neutral zone between Saudi Arabia and Kuwait, as a dispute between those countries has halted all work on oil fields for several months, according to people familiar with the matter. Chevron has already significantly reduced the number of petroleum-development rigs in the neutral zone, a 2,230-square-mile oil-rich area that the countries jointly oversee. One of the people said the layoffs of Saudi Arabian staff had begun. “There is no point of keeping staff if the fields have been shut down for months,” the person said. A Chevron spokeswoman said she couldn’t “discuss specific details of our employees and contractors.” “Current difficulties in securing work permits and materials have impacted the company’s operations,” she said, forcing its local unit Saudi Arabian Chevron and Kuwait Gulf Oil Co. to stop onshore production in […]

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Saudi Arabia to tap global bond markets as oil fall hits finances

Sign up for quick access to a wealth of global business news, including: Saudi Arabia to tap global bond markets as oil fall hits finances 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 […]

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Basra leaders threaten independent oil deals

A worker of Iraq’s state-run South Oil Company walks past a crude processing facility at the Bin Umar field, Oct. 3, 2011. (ATEF HASSAN/Reuters) Provincial leaders are threatening to seize authority over several oil fields in Basra as a way to pay bills and fund investment in Iraq’s impoverished oil capital.Last week in Istanbul, the chairman of the council’s energy committee, Ali Shaddad al-Faris, held meetings with international lawyers to map out a legal strategy for claiming and contracting fields, according to an official familiar with the discussions.Sabah al-Bezzouni, the chairman of the Basra Provincial Council, said in a… 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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OPEC’s Oil Output Strategy Seen Potentially Backfiring

OPEC’s unwillingness to limit its oil output could help usher in a sustained period of low prices and more pain for its members’ budgets, the International Energy Agency said Tuesday. The comments by the Paris-based monitor of energy trends echoed criticism from within and outside the group over a Saudi-led strategy of keeping the taps open to put pressure on higher-cost rivals such as the U.S. Members of the Organization of the Petroleum Exporting Countries including Venezuela, Iran and Algeria are being badly pinched by fallen oil prices and have agitated for production cutbacks to push them back up. Oil producers that aren’t members of the group are complaining as well: On Monday, Omani oil minister Mohammed Bin Hamad Al Rumhy called current oil production levels “irresponsible” and said the group had contributed to low oil prices. “This is a commodity that if you have 1 million barrels a […]

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OPEC Rift Exposed as Oman Oil Minister Calls Group ‘Irresponsible’

ABU DHABI—Discontent with the Organization of the Petroleum Exporting Countries spilled into the open Monday, when Oman’s oil minister called current oil production levels “irresponsible” and blamed the group for contributing to low oil prices. “This is a commodity that if you have one million barrels a day extra in the market, you just destroy the market,” said Mohammed Bin Hamad Al Rumhy, whose country produces oil but isn’t a member of OPEC. “We are hurting, we are feeling the pain and we’re taking it like a God-driven crisis. Sorry I don’t buy this, I think we’ve created it ourselves.” Mr. Rumhy’s comments came at a conference in Abu Dhabi as he shared a stage with Suhail al Mazrouei, the United Arab Emirate’s top oil official, who is a top advocate of the producer group’s strategy. The remarks also reflect the pressure on OPEC from less wealthy members like […]

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Want to Burn Coal and Save the Planet? Japan Touts a Solution

An employee stands in front of stockpiles of coal inside a storage yard in Fukushima. Japan is the biggest backer of public coal financing globally, according to a June report co-authored by the Natural Resources Defense Council, a U.S. environmental group, and partners. For all the talk of a solar boom in Japan, coal still has a future there, and potentially a big one at that. Japan’s government and industry are backing emerging coal technologies they say are less damaging to the environment. While they’re pushing the most polluting fossil fuel at home and abroad, Japan’s government will be trying to burnish its environmental credentials at climate talks that begin at the end of the month in Paris. Japan is the biggest backer of public coal financing globally, according to a June report co-authored by the Natural Resources Defense Council, a U.S. environmental group, and partners. The country also […]

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China’s Deflation Pressures Signal More Monetary, Fiscal Easing

China’s consumer inflation waned in October while factory-gate deflation extended a record streak of negative readings, signaling policy makers may need to hit the gas again to ease deflationary pressures. The consumer-price index rose 1.3 percent in October from a year earlier, according to the National Bureau of Statistics, missing the 1.5 percent median estimate in a Bloomberg survey and down from 1.6 percent in September. The producer-price index fell 5.9 percent, its 44th straight monthly decline. The lingering deflation risks, along with weakening trade, open the door for additional stimulus as inflation remains about half the government’s target pace. The People’s Bank of China — which has cut interest rates six times in the past year — is seeking to stabilize the economy without fueling a renewed surge in debt. "The risk of deflation has accentuated," said Liu Li-Gang, the chief Greater China economist at Australia & New […]

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LNG tanker steams toward U.S. Sabine Pass for inaugural loading

Cheniere Energy’s landmark Sabine Pass liquefied natural gas export plant in Louisiana will receive its first tanker for loading on Jan. 12, according to ship tracking data and a source with knowledge of the plant’s operations. The Energy Atlantic LNG tanker, which was last seen on Thomson Reuters ship tracking data on Monday steaming west across the Indian Ocean, is the first in a string of test cargoes that will be loaded before commercial operations begin later in the year. The expected arrival of the tanker to Sabine Pass was confirmed by a source and by IHS Waterborne consultants that track LNG shipments globally. It marks a milestone for the long-awaited project, the first of its kind to be built in the United States in nearly 50 years, and for the U.S. gas market that has been swamped with new supply in recent years due to a domestic drilling […]

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EIA: US shale oil output to plunge 118,000 b/d in December

Crude oil production in December from seven major US shale plays is expected to drop 118,000 b/d to 4.95 million b/d, according to the US Energy Information Administration’s latest Drilling Productivity Report (DPR). The agency projected a 93,000-b/d decline for November ( OGJ Online, Oct. 13, 2015 ). The DPR focuses on the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica, which altogether accounted for 95% of US oil production increases and all US natural gas production increases during 2011-13. The Eagle Ford has represented a bulk of the projected oil output losses since EIA began anticipating monthly declines from US shale during the spring. For December, EIA expects Eagle Ford production to fall 78,000 b/d to 1.28 million b/d. The Bakken is projected to drop 27,000 b/d to 1.11 million b/d, and the Niobrara is projected to fall 22,000 b/d to 356,000 b/d. Continued growth is seen […]

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Why an Apache Deal Wouldn’t Open the Oil Floodgates

Apache Corp. workers at a drilling rig in Texas There will be deals. Or will there? Shares of oil-and-gas explorer Apache Corp. APA 13.15 % jumped by more than 10% Monday afternoon following a report by Bloomberg News of a takeover approach by an unidentified suitor. This added that the company had hired advisers to mount a defense strategy. If so, the possible suitor isn’t all hat and no cattle. Based on available firepower, a large, integrated energy company would make most sense. Still, the fact that none of Apache’s peers saw anything more than a brief price boost Monday morning suggests two things: that the bargains on offer among North American oil and gas producers aren’t quite compelling enough to kick off a round of consolidation and that the list of buyers is short. For what it is worth, shares of Exxon Mobil XOM -2.14 % were the […]

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Steep drop in North Dakota rig count

State data from North Dakota show a steep drop in the number of rigs actively exploring for or producing oil or natural gas. Energy companies are spending less on exploration in the market downturn. File photo by Calin Tatu/Shutterstock BISMARCK, N.D., Nov. 9 (UPI) — Catching up with a national trend showing declines in the exploration and production sector, North Dakota reported an 8.5 percent drop in rig activity. The state reported 64 rigs actively exploring for or producing oil or natural gas in the state as of Monday. That’s down from the 70 reported last week and a sharp reversal in recent trends showing moderate stability in the No. 2 oil-producing state in the nation. Crude oil prices have moved consistently lower as weak economic growth balances against an increase in production, largely from U.S. shale oil basins. That’s left energy companies with less capital to invest in […]

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IEA praises Canadian carbon capture initiative

Shell starts a first-of-its-kind carbon storage operations at an oil sands facility in Canada to the praise of the International Energy Agency. Photo courtesy of Royal Dutch Shell PARIS, Nov. 9 (UPI) — The launch in Canada of the world’s first carbon capture project for oil sands is a welcome statement from an industry under the microscope, the IEA said. With momentum building for the U.N. climate negotiations in Paris, the International Energy Agency said the Canadian oil sands industry was taking remarkable steps with the launch of a novel carbon capture and storage project, which is meant to reduce emissions from oil-sands processing facilities in Alberta. Royal Dutch Shell last week started operations at its Quest CCS project, which the company said would reduce carbon dioxide emissions by 1 million tons per year by storing it deep underground. "The launch of the Quest CCS project in Alberta, Canada, […]

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Marathon Oil divests from Gulf of Mexico

Marathon Oil announces the sale of most of its holdings in the U.S. waters of the Gulf of Mexico. Company last week reported weak results for the third quarter as lower crude oil prices take their toll. File photo by James Jones Jr./UPI HOUSTON, Nov. 9 (UPI) — To an undisclosed buyer, Marathon Oil Corp. said it signed a deal to unload the majority of its assets in the Gulf of Mexico already in production. Marathon said it was selling off its acreage in the Gulf of Mexico for $205 million. "These assets represent a majority of the company’s operated and non-operated producing properties in the Gulf of Mexico," Marathon said in a statement. Onshore, the company reported mix production results from its U.S. operations. In North Dakota, the No. 2 oil producer in the country, the company reported a 22 percent increase in production from second quarter 2014 […]

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Keystone XL decision may indicate changing energy landscape

President Barack Obama’s stance on the Keystone XL oil pipeline planned from Canada may be a reflection of a changing energy landscape in North America. Despite the rejection, some analysis says Canadian oil will still find its way south. Pool Photo by Michael Reynolds/UPI WASHINGTON, Nov. 9 (UPI) — U.S. and Canadian statements regarding the decision on the Keystone XL oil pipeline may reflect a changing energy landscape in North America. Industry supporters, and leaders whose economies depend in part on oil revenue, expressed frustration with the U.S. decision to deny TransCanada’s permit to build the cross-border pipeline. But from the economic standpoint, many statements reflect evolving priorities in the new era for oil. In its record of decision and national interest determination of the pipeline, the U.S. State Department, charged with vetting the project, said there were questions about the necessity for additional North American pipeline capacity given […]

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Keystone’s Dead. Here’s What’s Next on the Enviros’ Hit List

Oil tankers at a rail yard in Richmond, Calif., in 2014. Barack Obama belittled the Keystone XL pipeline debate even as he brought it to a close . The project, which would have delivered heavy, oil-sands crude from Western Canada to the Gulf Coast, "has occupied what I, frankly, consider an overinflated role in our political discourse," he said Friday. "It became a symbol too often used as a campaign cudgel by both parties rather than a serious policy matter." Mr. President, the cudgelers are just getting started. The environmental movement is on the march again, perhaps more so than at any time since concerns about acid rain led Congress to pass the Clean Air Act Amendments of 1990. As political symbols go, Keystone XL was a potent one. It hung over the White House for several years and sparked all-around congressional fury. And, as a bonus for the […]

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U.S. shale oil output to fall for 8th month in December: EIA

U.S. shale production is expected to fall for an eighth consecutive month in December, according to a forecast on Monday from the U.S. Energy Information Administration (EIA). Total output is set to decline 118,000 barrels per day (bpd) in December, the biggest monthly decline on record, to 4.95 million bpd, the least since Sept. 2014, according to EIA data going back to 2007. Oil production from the Eagle Ford play in South Texas was expected to fall 78,000 bpd to 1.28 million bpd. Bakken oil output in North Dakota was expected to slide 27,000 bpd to 1.11 million bpd. Oil production from the Permian Basin of West Texas, which continues to buck the trend, was projected to rise 11,000 bpd to 2.02 million bpd. U.S. natural gas production, meanwhile, was expected to fall for a sixth month in a row. Total output was set to decline almost 0.4 billion […]

Posted On : Published By : Tom Whipple
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Why does firewood cost so much? Fracking’s part of it

Firewood on the front porch of Terri and Bob Tomchak’s home in Bridgton, Maine on Friday, Oct. 23, 2015. FACEBOOK TWITTER GOOGLE+ LINKEDIN PRINT E-MAIL Text Size: A | A CONCORD, N.H. — Northeasterners who are digging deeper into their pockets to pay for firewood this season can add a new scapegoat to the roster of usual market forces: fracking. Yep, a timber industry representative in New Hampshire said those hydraulic fracturing well sites in Pennsylvania’s Marcellus Shale formation to suck natural gas out of the ground are using construction "mats" made of hardwood logs — think of the corduroy roads seen in sepia-toned photographs from the 1800s — to get heavy equipment over mucky ground, wetlands or soft soils. That increased demand has crept down the chimney into fireplaces. Prices in parts of New England are averaging $325 a cord and can even push past $400 for a […]

Posted On : Published By : Tom Whipple
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EU fails to take action to stop cheap Chinese steel imports

A labourer cuts steel bars at a railway bridge construction site in Lianyungang, Jiangsu province, China, September 12, 2015. European Union ministers failed to agree on Monday on urgent measures that steelmakers are demanding to stem a flood of cheap imports from China after the loss of some 5,000 jobs in the sector in Europe in the past three months. Economy and industry ministers had gathered in Brussels at the request of Sajid Javid, business minister for Britain, where the majority of jobs have been lost. Luxembourg economy minister Etienne Schneider, whose country holds the six-month rotating presidency of the bloc, told a news conference that they agreed on the gravity of the situation and the need to take concrete actions. Luxembourg has called for a conference later this year to consider a response. EU steel executives want the European Commission to cut the time it takes to impose […]

Posted On : Published By : Tom Whipple
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Oil output from Russian arctic waning

Russian official says a lack of infrastructure in the far north is leading to a decline in oil production. Photo by NASA/UPI SALEKHARD, Russia, Nov. 9 (UPI) — A lack of infrastructure in the arctic north of Russia is putting a moderate throttle on the region’s oil production, an area governor said. Dmitry Kobylkin, governor of the Yamal-Nenets autonomous district, told Russian news agency Itar-TASS regional production could grow along with regional development, but the lack of infrastructure was curbing year-on-year output. Last year, he said an estimated 158 million barrels of oil were produced from the Yamal Peninsula . Full-year 2015 is expected at around 152 million barrels. "The drop in oil production, despite the fact that there are sufficient reserves in the area, is caused only by infrastructure constraints that hamper commercial development of new deposits," the governor said. Oil work in the pristine arctic environment has […]

Posted On : Published By : Tom Whipple
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UK wholesale natural gas prices fall on solid supply, mild weather forecasts

UK wholesale natural gas prices fell at the open Monday because the UK gas system was well supplied due to high LNG sendout combined with robust Norwegian gas imports and demand dampened by mild weather. National Grid 10:00 am local time demand forecasts for Monday were 241 million cu m with physical flows seen at 244 million cu m/d. Both the within-day and day-ahead NBP contracts dropped below 35 pence/therm in early Monday trading and were seen at 34.90 p/th and 34.85 p/th respectively, down 0.325 p/th and 0.25 p/th from the Friday assessments. LNG sendout from the South Hook LNG terminal ramped up at the beginning of Monday’s gas day after having fallen over the weekend and been low on Friday due to an unplanned outage — flow rates were seen at 33 million cu m/d Monday morning. Article continues below… European Gas Daily is a flagship Platts […]

Posted On : Published By : Tom Whipple
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How the Unshackled Ruble Has Changed Russia’s Economy Forever

Today marks the one-year anniversary of when the ruble was set free for the first time in its post-Soviet history. In five charts, we show how the central bank’s decision to stop depleting international reserves to prop up the currency has upended every facet of the Russian economy, from decimating wages to enriching oil exporters. 1. Runaway Inflation The ruble has shed about 30 percent against the U.S. dollar, stoking inflation to a 13-year high that the central bank sought to counter with repeated interest-rate hikes up to 17 percent last December. The Bank of Russia has since unwound much of that emergency rate increase. 2. Rising Poverty Runaway inflation eroded consumers’ purchasing power. The resulting drop in wages and disposable income has been so dramatic as to make more Russians destitute. The World Bank predicts Russia will experience for the first time since the 1998-1999 financial crisis a […]

Posted On : Published By : Tom Whipple
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Oil Prices Kick Off Week Higher, Helped by Chinese Demand Data

LONDON—Oil prices kicked off the week higher, helped by data indicating China’s appetite for crude oil remains strong and a further fall in U.S. drilling activity. Oil prices remain about half of what they were just over a year ago, however, as the global supply of crude continues to exceed demand. A string of weaker economic data out of China, the world’s second biggest oil consumer, has spooked investors in recent months and further depressed prices. Brent crude, the global oil benchmark, rose 0.7% to $47.77 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.6% at $44.50 a barrel. On Sunday, China reported that its October crude imports dropped 5.7% from a month earlier but were up 9.4% from a year earlier. The strong annual import growth largely reflects crude inventory buildup and high refinery activity taking […]

Posted On : Published By : Tom Whipple
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Oil Halts Three-Day Decline Near $45 as Saudis See Demand Growth

Oil halted a three-day decline to trade near $45 a barrel in New York as Saudi Arabia predicted that low prices will spur fuel demand growth. West Texas Intermediate futures rose as much as 1.2 percent after falling 7.5 percent through the three days ended Friday. Demand will soon reflect the “attractiveness” of current price levels, according to Ali al-Naimi, Saudi Arabia’s oil minister. The global market will return to balance next year as demand climbs and supplies outside OPEC falter, the group’s secretary general Abdalla El-Badri, said in Doha. Oil has slumped 42 percent the past year amid speculation the global oversupply will persist as the Organization of Petroleum Exporting Countries continues to pump more than its collective quota. While China’s crude imports fell to about 6.23 million barrels a day in October, the lowest level in five months, purchases were more than 9 percent higher than the […]

Posted On : Published By : Tom Whipple
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Oil edges up as OPEC sees strong demand next year

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. Oil futures rose above $47.50 a barrel on Monday as OPEC said it expected global demand to remain strong next year, while weak Chinese trade data and concerns over rising supplies weighed. A weaker dollar further supported oil, with Brent crude for December delivery up 22 cents at $47.64 a barrel by 0905 GMT, after falling more than 4 percent last week. December U.S. crude gained 12 cents to $44.41 a barrel after falling nearly five percent last week. Abdullah al-Badri, Secretary-General of the Organization of the Petroleum Exporting Countries, said he expects that the oil market will become more balanced in 2016 as demand continues to grow. "We see global oil demand maintaining its recent healthy growth. We see less non-OPEC supply. And we see an increase in […]

Posted On : Published By : Tom Whipple
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Speculators Share Andy Hall’s Optimism That Oil Prices at Bottom

Andy Hall and Daniel Yergin think oil prices are bottoming out. Hedge funds agree. Money managers’ net-long position in West Texas Intermediate crude rose 20 percent in the week ended Nov. 3, the most in seven months, according to data from the U.S. Commodity Futures Trading Commission. Bets on rising prices increased to the highest level since June. U.S. onshore oil production fell for the fifth month in a row in August and supplies grew at the slowest pace since September in the week ended Oct. 30. Inventory data don’t indicate a surplus in the crude market and prices are set to rise, said Hall, one of the world’s best-known oil traders. Global supply and demand will begin to move into balance by late 2016 or 2017, according to Yergin, a Pulitzer Prize-winning oil historian. “The fundamentals are starting to play out,” said David Pursell, a managing director at […]

Posted On : Published By : Tom Whipple