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World Cup Power Cut Fears Spur Record Brazil LNG Buying

Miguel Abitbol spent almost $4,000 on television equipment to show World Cup soccer matches at his bar and restaurant in Rio de Janeiro . He’s praying there will be enough electricity to power it. Abitbol’s 48-inch (122-centimeter) set is one of 16 million expected to be sold in Brazil this year as it hosts the world’s most-watched sporting event. The kick off in June is looming as the nation contends with a drought that reduced water supply needed for hydroelectric power to near-critical levels. A blackout in February cut electricity to 6 million people. Petroleo Brasileiro SA (PETR3) , the state-owned energy company, is buying record amounts of liquefied natural gas in the spot market to run gas-fired power plants at full capacity and preserve water reserves. Increased competition for the fuel is narrowing the discount of Latin American prices to those in Asia , the costliest, to the […]

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Japan Protests Planned Limits on Panama Canal Ships

Japan has protested to Panama about planned limits on the size of ships in the Panama Canal, saying they could prevent some U.S. natural gas from reaching customers in Asia. The issue has cast a pall over hopes for expanded trade in natural gas after the widening of the canal, scheduled for completion in early 2016. The U.S., enjoying a newfound abundance of natural gas thanks to technological advances, has opened the door to exports, and Japanese companies have eagerly signed up for U.S. supplies to make up for idled nuclear power after the March 2011 accident at Tokyo Electric Power Co. ‘s Fukushima Daiichi complex. The widening of the canal will open the way for the first time to liquefied-natural-gas carriers. Currently the LNG carriers must take a more circuitous route from eastern North America to Asia. But Panama has set a width limit of 49 meters for […]

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Petrobras hits production record in Santos, Campos basins

Petroleo Brasileiro SA (Petrobras) recently reached an oil production record of 428,000 b/d in company-operated fields in the Santos and Campos basins. The company said the new mark was a result of the increased output that came with the Mar. 17 launch of operations from the P-58 platform in the Parque das Baleias area of northern Campos. The platform has been producing 50,000 b/d through three presalt wells. Petrobras holds 100% of the rights in the area. Twenty-four production wells have been drilled overall, of which 15 are in the Campos and nine in the Santos. Production from Campos and Santos has reached 222,000 b/d and 206,000 b/d, respectively. Fifteen more production wells are expected to start up by yearend, of which 11 will be in the Santos and 4 in the Campos. Of the 15 wells, two are connected to the Cidade de Sao Paulo floating production, storage, […]

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Farmers Seeking Heat Relief Signal Brazil Climate Peril

Brazil may see a mass migration of crops and farm workers from huge swaths of currently tillable lands to more temperate zones as global warming takes hold, according to leading climate experts in the country. Longtime Brazilian climate researcher Hilton Silveira Pinto points to the drought that’s cutting grain and coffee output this year as an indicator that rising global temperatures may already be impacting the country’s crops. “This is a taste of what is to come in the future,” said Pinto, a professor at the Center for Meteorological and Climate Research Applied to Agriculture at the University of Campinas. A study co-authored by Pinto that looks at projected warming trends shows Brazil’s soybean production may drop by as much as 24 percent and wheat output as much as 41 percent by 2020 as climate change reduces areas where the crops can grow. Because Brazil is increasingly helping to […]

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Cuba fed a president’s fears and took over Venezuela

The enormous influence that Cuba has gained in Venezuela is one of the most underreported geopolitical developments of recent times. It is also one of the most improbable . Venezuela is nine times bigger than Cuba, three times more populous, and its economy four times larger. The country boasts the world’s largest oil reserves. Yet critical functions of the Venezuelan state are either overseen or directly controlled by Cuban officials. The FT’s A-List The A-List provides timely, insightful comment on the topics that matter, from globally renowned leaders, policy makers and commentators Venezuela receives Cuban health workers, sports trainers, bureaucrats, security personnel, militias and paramilitary groups. “We have over 30,000 members of Cuba’s Committees for the Defence of the Revolution in Venezuela,” boasted Juan José Rabilero, then head of the CDR, in 2007. The number is likely to have increased further since then. A growing proportion of Venezuela’s imports […]

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Venezuelan Leader and Opposition Meet in Bid to Ease Tensions

President Nicolás Maduro of Venezuela and leaders of a coalition of opposition political parties held a dramatic televised meeting on Thursday in a first step aimed at defusing tensions that have escalated during more than two months of antigovernment protests. The meeting was brokered by a group of South American foreign ministers who exerted pressure on both sides to come to the table in the hopes of averting further violence in the protests, which have cost 40 lives, according to a government count. Underscoring the urgency of the situation, local news media reported that a police officer in Barquisimeto, a city in western Venezuela, died after being shot on Wednesday night in a confrontation that appeared to be linked to a protest. The ministers were trying to get Venezuelans to do what they had not been able to do on their own: bridge the country’s bitter political rift. Although […]

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Brazil Vice President Sees No Fuel Price Boost as Election Looms

Brazilian Vice President Michel Temer said he sees no room for a fuel price increase before elections in October and that inflation surpassing 6.5 percent would be a “disaster.” “I don’t think so. I can’t say with complete certainty,” Temer, 73, said in an interview yesterday at Bloomberg’s headquarters in New York , in response to whether Petroleo Brasileiro SA would raise fuel prices before the election. “I don’t have information about it, but I’m not seeing the possibility.” Petrobras rose 6.6 percent to 16.46 reais yesterday, the biggest jump in more than a week, after a poll showed reduced support for President Dilma Rousseff’s re-election bid. The government controls Petrobras’s board with a majority of voting shares, and investors were encouraged by the possibility of a change in administration, said Paulo Brito, an investment manager at the brokerage firm HPN Invest in Recife, Brazil . The company’s refining […]

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Brazil Court Says Chevron Unit and 10 Employees Face Spill Charges

A judicial panel in Brazil ruled a Corp. subsidiary and 10 of its employees will face criminal charges related to offshore oil spills in 2011 and 2012, the company said on Friday. The original criminal charges had been dismissed in February 2013, but an appellate court last October reinstated two counts for environmental damage and failing to immediately notify authorities. Chevron appealed, but a three-judge panel upheld the charges in a 2-1 ruling last week, sending the case back to the federal court that had dismissed the criminal complaint. Chevron has appealed last week’s decision, saying its Brazilian unit "responded appropriately and responsibly to the incident and that there is no damage to the environment or risk to human health." The charges stem from two oil spills, totaling a little more than 2,400 barrels, in the Frade field, about 75 miles off the coast of Brazil. The country’s oil […]

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Venezuela High Court Backs Move to Oust Opposition Leader

Venezuela’s Supreme Court late Monday backed the government’s move to strip a top opposition congresswoman of her title, a move that sparked accusations the court lacks independence in a country roiled by two months of protests. Government allies of President Nicolás Maduro said last week that María Corina Machado would be kicked out of the National Assembly for speaking on Venezuela’s political crisis in front of the Organization of American States in Washington last month as an invited guest of the government of Panama. They say Ms. Machado, among Mr. Maduro’s most vocal critics, violated the constitution, which prohibits parliamentarians from accepting public posts from other countries without the approval of Venezuela’s congress. Ms. Machado didn’t seek such approval before her appearance in Washington. The country’s highest court on Monday backed that view in a statement posted on its website. It said Ms. Machado’s move was "not only detrimental […]

Posted On : Published By : Tom Whipple
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Heating oil demand follows cold weather into South America

The end of March has the heating oil market turning south as demand in the US follows winter buying into decline, market sources said Monday. Total US stocks of the product have reached 14.39 million barrels, the lowest level since the US Energy Information Administration began tracking the data in 1993. The low comes on the back of a sustained decline, stocks shed 2.74 million barrels in six weeks, according to EIA data. "Stocks are not going to increase going into summer," one broker said, "and with RINs attached, I think refiners will be exporting more." Article continues below… Request a free trial of: Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly […]

Posted On : Published By : Tom Whipple