ShareholdersUnite Forums
OPEC, for some quiet moments.. - Printable Version

+- ShareholdersUnite Forums (
+-- Forum: Companies (
+--- Forum: InterOil Forum (
+--- Thread: OPEC, for some quiet moments.. (/showthread.php?tid=7710)

RE: OPEC, for some quiet moments.. - admin - 11-01-2017

Saudi Arabia, OPEC’s biggest oil producer, is also a leader when it comes to slashing the crude price the country needs to balance its budget. The kingdom will need oil to trade at $70/bbl next year to break even, the Washington-based International Monetary Fund said Tuesday in its Regional Economic Outlook for the Middle East and Central Asia. That’s down from a break-even of $96.60/bbl in 2016, the biggest drop of eight crude producers in the Persian Gulf. The break-even is a measure of the crude price needed to meet spending plans and balance the budget.

Saudis lead Gulf nations in cutting break-even oil price

BP signaled growing confidence the oil-industry downturn is coming to an end by starting to buy back shares issued to help cover its dividend during the price slump. The company, which doubled third-quarter earnings from a year earlier on robust refining margins and rising production, also pared net debt for the first time in two years. The decision to initiate buybacks, which may cost as much as $400 million a quarter, underscores BP’s improving fortunes after seven tough years dominated first by the costly Macondo oil spill, then a collapse in crude prices.

BP signals confidence with share buyback as profit jumps

The IMF estimated that Saudi Arabia will need oil prices to trade at about $70 per barrel in 2018 for its budget to breakeven, a dramatic improvement from the $96.60 per barrel it needed just last year. Saudi’s improvement is the most dramatic out of all the Middle Eastern oil producers, and it also suggests the combination of austerity, cuts to wasteful subsidies, new taxes and economic reforms are starting to bear fruit.

Is Saudi Arabia’s Oil Strategy Working? |

The pressure on shale drillers to throttle back on their aggressive drilling continues to crop up in new places, and there are growing signs that the Permian is slowing down. Shale companies spent just $5 billion on land deals in West Texas in the last six months, a fraction of the $35 billion spent in the prior nine-month period, according to the Houston Chronicle, citing Wood Mackenzie data.

The Permian Boom Is Coming To An End |

RE: OPEC, for some quiet moments.. - admin - 11-02-2017

Oil supermajors are getting back to their normal way of life after surviving a price slump that shook the foundations of their business.  BP Plc gave the boldest signal yet that the worst of the downturn was over, announcing on Tuesday that it would buy back shares for the first time in three years. After posting third-quarter earnings that comfortably beat estimates, shares of the London-based company surged to the highest since 2014, joining its closest peer Royal Dutch Shell Plc at a level not seen since the infamous OPEC meeting that triggered price collapse.

Oil majors find their way back to normality as earnings surge

Oil explorers are neglecting their old hunting grounds in the North Sea, threatening to deepen an expected slump in Norway’s output in the middle of the next decade, the country’s industry regulator warned.

Crude output threatened as Norway explorers neglect North Sea

The oil and gas industry in Africa continues to face market challenges arising from the low oil price, competition for revenue growth and local talent together with new expectations from investors and regulators. “Africa’s oil & gas industry is experiencing significant change and upheaval. There are fundamental shifts in companies’ strategies, business models and ways of working,” says Chris Bredenhann, PwC Africa oil and gas advisory leader.

Africa's oil industry needs to harness innovation, technology, PwC says

In September and October 2017, the difference between domestic and foreign crude oil prices has risen to the highest level since 2015, according to the U.S. Energy Information Administration (EIA). In the past, price differences between West Texas Intermediate (WTI) and Brent crude oil led to changes in crude oil supply for petroleum refineries in the U.S. East Coast region, EIA data show. However, recent price changes are not expected to affect East Coast crude oil supply unless the gap continues and widens.

EIA: Widening Brent-WTI price spread unlikely to change East Coast crude oil supply

RE: OPEC, for some quiet moments.. - admin - 11-03-2017

Crude prices bouncing around $50 to $60 a barrel have kept U.S. shale producers stuck on the edge of profitability. That hasn’t been enough to shut down the oil boom in places such as North Dakota, Texas, and New Mexico—at least not yet. Drillers are heading into 2018 on the defensive as they face skepticism from shareholders who want to see less investment and more profit. They may also be finding that much of the easy oil has already been pumped.

Fracking Boom Hits Midlife Crisis as Investors, Geologists See Shale Limits - Bloomberg

Royal Dutch Shell has taken Exxon Mobil’s cash-flow crown, a year after completing the biggest deal in its history. Europe’s largest energy company vaulted ahead on this closely watched indicator of financial health in the first nine months of 2017, as assets acquired from BG Group from Brazil to Australia churned out cash. For the year as a whole, Shell is on course to surpass its larger U.S. rival on the measure for the first time in about two decades.

Shell takes Exxon's cash-flow crown as profit beats estimate

Iraq’s crude exports fell 7% in October after the Kurdish region held an independence referendum that sparked fighting with federal troops, interrupting pipeline sales. Shipments from OPEC’s second-largest producer dropped to 3.72 MMbopd in October, from 3.98 MMbpd in September, according to Bloomberg tanker tracking. Exports from the disputed Kirkuk region halted amid the dispute, cutting sales from northern Iraq in the second half of the month to less than half their normal pace of 600,000 bopd, according to port agent reports and tanker tracking. Shipments were the lowest since April when pipeline disruptions in the north and jetty repairs in the south slowed sales.

Iraq's oil exports decline as Kurdish fight cuts output

Oil traded near $54/bbl as traders remained cautious on how quickly a global oil glut is diminishing. Futures were little changed in New York after falling 0.2% Wednesday. Crude inventories fell by 2.44 MMbbl for a fifth decline in six weeks, according to the Energy Information Administration. U.S. oil production rose a second week. OPEC output slid in October as tensions between Iraq’s central government and the semi-autonomous Kurdistan region crimped supply.

Oil trades near $54/bbl as U.S. crude stockpiles resume decline

RE: OPEC, for some quiet moments.. - admin - 11-06-2017

The Trump administration said it will exit a global anti-corruption effort that compels oil, gas and mining companies to disclose the payments they give governments worldwide. The decision, announced in a letter Thursday to the Extractive Industries Transparency Initiative, may undercut the effort that aims to give citizens and watchdogs in poor but mineral-rich nations details on how much their government leaders get in taxes, royalties and lease payments. With that information, they can ensure the money is spent on roads and schools, not squirreled away in foreign bank accounts.

U.S. to exit global anti-corruption effort aimed at oil cash

Venezuela’s sudden demand to renegotiate its billions in debt could complicate life for its two biggest oil patrons, China and Russia. President Nicolas Maduro caught bondholders off guard on Thursday with a vow to wring debt relief from Venezuela’s creditors, sending the country’s bonds tumbling. But the move may also have been calculated to reassure the countries that are among Maduro’s biggest lenders, and the most vital customers of his nation’s crown-jewel oil industry.

Venezuelan oil too big to fail, at least for China and Russia

A shrinking discount for liquefied natural gas versus oil will stoke competition for buyers in some markets heading into the winter heating season, said Madeline Jowdy, senior director of global gas and LNG at Pira Energy Group in New York.

LNG may battle oil for buyers this winter as discount disappears

Oil Search signed an agreement to acquire a number of oil assets in the Alaska North Slope from privately-owned companies Armstrong Energy LLC and GMT Exploration Company LLC. The terms of the acquisition include the purchase for $400 million of a 25.5% interest in the Pikka Unit and adjacent exploration acreage, a 37.5% interest in the Horseshoe Block and Hue Shale, together with rights to operatorship of the Pikka Unit. Also included in the terms of the transaction is an option, exercisable at Oil Search’s discretion until June 30, to double its interest in the assets for an additional $450 million.

Oil Search acquires $400-million in Alaskan oil assets

RE: OPEC, for some quiet moments.. - admin - 11-07-2017

Petroleos Mexicanos announced its biggest onshore discovery in 15 years, just three months after Mexico reported the first major find by private companies, bolstering the nation’s efforts to revive its oil industry. The Ixachi-1 well that lies 72 km (45 mi) south of the port of Veracruz is believed to contain 1.5 Bbbl of oil in place, or about 350 MMbbl in proven, probable and possible reserves.

Mexico announces biggest onshore oil discovery in 15 years

The oil market’s more concerned about U.S. shale supplies than any repercussions from a crackdown that’s enveloped royals and billionaires in Saudi Arabia, OPEC’s biggest producer and the world’s top crude exporter. The Saturday purge that brings Saudi Crown Prince Mohammed bin Salman closer than ever to power signals his nation will persist with a strategy he’s backed -- limit output as part of a deal with other producers aimed at clearing a global glut. Oil was already pricing in expectations for that policy to continue even before the crackdown, meaning production from American shale fields remains the primary source of uncertainty for the market.

U.S. shale oil trumps risk of supply shock after Saudi purge

Upstream oil and gas activity in Texas sustained a modest expansion into the 10th straight month in September, according to the Texas Petro Index, which rose to 181.4, 21.4% higher than in September 2016 and 22.4% higher than in November, when the TPI hit bottom at 148.2. "Crude oil prices in Texas have been the essence of stability for more than a year," said Karr Ingham, the economist who created the TPI and updates it monthly, noting that average monthly oil prices in Texas have increased slowly but steadily since dipping to a low of $27.08/bbl in February 2016. "Demand is beginning to show signs of recovery and foreign oil suppliers led by OPEC appear to be committed to maintaining announced production cuts."

Oil and Gas Index shows Texas producers continuing to recover

Oil reached levels last seen more than two years ago as Saudi Arabian King Salman’s anti-corruption drive shook the world’s biggest crude exporter just weeks before major producers gather to discuss prolonging historic production caps. Futures advanced as much as 1.2% in New York. The purge eliminated potential rivals to Crown Prince Mohammed bin Salman and included a member of the royal council overseeing state oil producer Saudi Aramco and one of its directors. The arrests of princes, government ministers and billionaires may cast a shadow over the Nov. 30 OPEC meeting.

Oil at 28-month high as Saudi anti-graft sweep rattles markets

RE: OPEC, for some quiet moments.. - admin - 11-08-2017

Chevron Corp. is planning a significant drilling program in the Duvernay shale formation, marking a vote of confidence in Canada’s energy industry in a year when it joined other majors in selling assets there. The initial development in the East Kaybob section of the formation will encompass about 55,000 acres (22,000 hectares), the San Ramon, California-based company said Monday. Chevron has a net 70% operating interest in about 330,000 acres in the Duvernay.

Chevron not giving up on Canada, plans shale push

Italy is considering the sale of part of its stake in energy giant Eni SpA and its holding in air-traffic controller Enav SpA in a bid to raise about 2 billion euros ($2.3 billion) by the end of this year to reduce debt, according to people familiar with the matter.

Italy said to mull sale of Eni stake to state-owned CDP

OPEC sees no opposition to prolonging its production cuts beyond March and discussions are now focusing on the duration of the extension, said the group’s top official. “We’ve not had any party that is objecting to extending the supply arrangement,” OPEC Secretary-General Mohammad Barkindo told reporters in Vienna on Tuesday. “It is the duration, and the terms and conditions that are being discussed.”

OPEC sees no opposition to cuts extension, focuses on duration

OPEC said shale oil production will grow considerably faster than expected over the next four years after the group’s output cuts triggered a crude-price recovery that helped U.S. producers. North American shale output will soar to 7.5 MMbpd in 2021, the Organization of Petroleum Exporting Countries said in its World Oil Outlook report on Tuesday. That’s 56% higher than it forecast a year ago. The revised outlook illustrates OPEC’s dilemma: with supply curbs also helping its rivals, demand for the group’s crude will remain little changed until shale oil output peaks after 2025.

OPEC sees U.S. shale oil powering ahead after cuts boost prices

RE: OPEC, for some quiet moments.. - admin - 11-10-2017

West Virginia was the biggest recipient of the $250 billion of investments signed during President Donald Trump’s visit to China. China Energy Investment Corp. plans to invest $83.7 billion in shale gas development and chemical manufacturing projects in the state over two decades, according to a statement from the state’s Department of Commerce.

China Energy Investment plans to invest billions in U.S. shale gas development

Total has signed an agreement with Engie to acquire its portfolio of upstream liquefied natural gas (LNG) assets for an overall enterprise value of $1.49 billion. This portfolio includes participating interests in liquefaction plants, notably the interest in the Cameron LNG project in the US, long term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe. Additional payments of up to $550 million could be payable by Total in case of an improvement in the oil markets in the coming years.

Total acquires Engie’s upstream business, becomes second-largest global LNG player

ConocoPhillips has sent a clear signal to global energy markets: For all the recent talk of caution among U.S. drillers, the industry is still in growth mode. The world’s biggest independent oil explorer said on Wednesday it expects its capital spending to average about $5.5 billion a year in the next three years, according to a statement released before its annual analyst conference in New York. That would be $1 billion, or 22%, over what Houston-based Conoco has forecast for its budget this year.

Conoco's $1-billion boost signals staying power of U.S. oil

Crude resumed its march toward levels last seen in 2015 as escalating tensions in Saudi Arabia and throughout the Mideast raised concerns about stability in the oil-rich region. Futures advanced as much as 1.3% in New York. Saudi Arabia’s elite were said to be scrambling to shift assets out of the region amid an expanding anti-corruption crackdown that’s ensnared dozens of royals and investors. Separately, the kingdom advised its nationals to leave Lebanon, which is in the cross-hairs of intensifying tension between Saudi Arabia and Iran.

Crude approaches 28-month high as Saudi crackdown intensifies

RE: OPEC, for some quiet moments.. - admin - 11-13-2017

With oil prices trading near their highest level in two years, some traders are betting that the price rise could have more room to run. A total of 48,000 contracts have traded over the last few days that would profit most if Brent spikes before Christmas, including several large individual trades. They include 14,000 options giving traders the right to buy February Brent at $71/bbl, as well as 22,000 for  $85 and 12,000 for $80. They all expire on Dec. 21.

Oil above $80 before Christmas? Some options traders think so

China showed its appetite for big ticket investments in U.S. energy production and exports during President Donald Trump’s visit, but left the event with almost no binding deals. Agreements announced in Beijing on Thursday included nearly $84 billion in shale gas and chemicals in West Virginia, a $43-billion Alaskan LNG project and $11 billion in long-term supply of liquefied natural gas from the only mainland U.S. exporter. Ethane, turbines and next-generation nuclear reactors were also among the announcements.

China's appetite for U.S. energy falls shy of binding deals

Venezuela is set to pump the least oil in almost three decades, just when it needs petrodollars the most. Output is expected to slump to 1.84 MMbpd next year, the lowest compared with official government data since 1989, according to a survey with four analysts compiled by Bloomberg. Rig counts hit a 14-year low in October, as drilling companies including Schlumberger Ltd. reduce their exposure in the nation due to unpaid bills.

Venezuelan oil output heads to 29-year low as cash crunch grows

ExxonMobil Corp. is drilling shale wells that stretch farther than the length of New York’s Central Park. The world’s biggest oil explorer by market value recently finished four wells in North Dakota’s Bakken region that extend sideways for 3 mi (4.8 km), Barclays Plc analyst Paul Cheng said in a research note after meeting Exxon executives, and it’s closing in on the 4-mi mark.

Central Park's got nothing on Exxon's super-long shale oil wells

RE: OPEC, for some quiet moments.. - admin - 11-14-2017

OPEC boosted forecasts of demand for its crude in 2018, signaling that the rebalancing of the global market could gather pace. The Organization of Petroleum Exporting Countries raised estimates for the amount it will need to pump to meet demand next year by 400,000 bopd to 33.4 MMbpd, according to a monthly report from the group. As that’s about 670,000 bopd more than OPEC produced in the third quarter, global inventories would diminish further in 2018 if the group and its allies continue to keep supplies restrained.

OPEC boosts 2018 demand forecast, signaling faster rebalancing

OPEC sees no reason for investors to expect oil to hit peak demand before 2040, the organization's secretary general said Monday. Speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), General Mohammed Barkindo said that the cartel's projections did not foresee oil demand cresting over the coming decades. Instead, he argued, a dramatic increase in global population would likely result in even more people living without access to electricity, cooking gas or heating. "These parameters suggest there will not be peak oil demand before this time (2040)," Barkindo said.

Oil industry should not worry about peak demand until 2040, OPEC secretary general says

Total SA’s billion-dollar deal to buy liquefied natural gas assets from Engie SA shows how much size matters in the industry. After Royal Dutch Shell Plc’s takeover of BG Group Plc last year, industry consultant Wood Mackenzie Ltd. says the latest accord is evidence that the biggest energy companies with access to large volumes of diverse supplies will continue to dominate, even as commodity traders from Glencore Plc to Trafigura Group Pte are expanding.

Birth of another LNG giant shows majors' edge over traders

The Middle East is kicking things up a notch in the oil market. Hedge-fund bets on rising Brent crude hit a fresh record as tension in the oil-rich region escalated, sending prices to their highest in more than two years. Disruptions in exporters Libya, Nigeria and Venezuela in past months hadn’t fazed investors enough to trigger strong rallies, but Saudi Arabia and Iran? That’s another story.

Hedge funds add bullish oil bets as Mideast's tension heats up

RE: OPEC, for some quiet moments.. - admin - 11-15-2017

Crude took a step back now that 2018 isn’t looking so hot anymore. Futures tumbled as much as 2.8% in New York, the biggest decline in more than a month after touching 2015-highs last week. Hopes that a potential extension of OPEC’s supply curbs will help support the market next year were tempered on Tuesday when the International Energy Agency that recent price gains along with milder-than-normal winter weather are slowing demand growth.

Oil retreats as IEA casts dark cloud over 2018 market outlook

The supply surge from U.S. shale oil and gas will beat the biggest gains seen in the history of the industry, the International Energy Agency predicted. By 2025, the growth in American oil production will equal that achieved by Saudi Arabia at the height of its expansion, and increases in natural gas will surpass those of the former Soviet Union, the agency said in its annual World Energy Outlook. The boom will turn the U.S., still among the biggest oil importers, into a net exporter of fossil fuels.

IEA sees shale surge as biggest oil and gas discovery in history

For a generation, the huge, whitewashed storage tanks at America’s largest oil refinery in Port Arthur, Texas, have stored almost nothing but Saudi crude. The plant is owned by Saudi Arabia’s state-run oil company, Aramco, and since it first bought a stake in 1988, the Motiva refinery guaranteed the kingdom a strategic foothold in the world’s largest energy market.

Saudi retreat from U.S. oil market cuts exports to 30-year low

Narendra Modi’s first term as leader of the world’s fastest-growing oil market coincided with the biggest price crash in a generation. Crude’s rebound into a bull market is set to test the Indian Prime Minister as he gears up for re-election in 2019. While low prices helped shrink deficits as Modi cut subsidies after taking the reins of Asia’s third-largest economy in 2014, a 33% jump in global benchmark crude since June has lifted oil close to $65/bbl. If it hits and stays at that level in the year through March, inflation could rise by 30 basis points and a key measure of growth may weaken by 15 basis points, the central bank estimates.

Oil turns from Modi's blessing to burden, threatening economy