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RE: OPEC, for some quiet moments.. - admin - 04-09-2015

Libya’s biggest oil port may reopen in two weeks, as fighting in the area recedes amid increasing competition between the divided North African nation’s rival governments for the control of crude exports.

Libya’s biggest oil port may reopen, as groups vie for buyers

It's a pernicious bit of American mythology that is used to justify the law against domestic oil producers selling their crude overseas: The U.S. needs "energy independence." Never mind that the law actually undermines this goal, or that the goal itself is practically impossible to achieve. It's the wrong goal. What the U.S. should be striving for is not independence, but energy security.

U.S. oil export ban undermines quest for energy security: Opinion

Crude prices dropped on Wednesday after Saudi Arabia reported record production of 10.3 million barrels per day in March, a figure the country's oil minister said was unlikely to fall by much.

Oil prices fall as Saudi Arabia reports record output - Business Insider

OPEC earned around $730 billion in net oil export revenues in 2014 (Source: EIA), a big decline of 11% from its previous year. The EIA even predicts that OPEC’s net oil exports (excluding Iran) could fall to as low as $380 billion in 2015.

How Much Longer Can OPEC Hold Out? - Yahoo Finance




RE: OPEC, for some quiet moments.. - admin - 04-10-2015

Bankers and analysts say that Shell's move is telling potential acquirers that one of the biggest players is now confident enough to make a big play - that the fears of a further big slide in oil and gas prices may be fading. Following the more than 50 percent collapse in oil prices since the middle of last year, the market has been too volatile to give buyers and sellers clarity on valuations, bankers say, even as potential acquirers knock on doors to examine a range of assets.

Shell's BG purchase could be catalyst needed for U.S. shale deals | Reuters

ConocoPhillips, one of the world’s largest shale producers, sees crude prices rising by the end of the year, bolstering the company’s growing wager on U.S. oil. Chief Executive Officer Ryan Lance is staking a big part of the company’s future on shale, pledging to spend 50 percent more over the next three years primarily in the U.S. and Canada even as crude prices fell by more than half.

ConocoPhillips CEO Bets Farm on Shale, Sees Oil Rebound - Bloomberg Business

For U.S. shale drillers, the crash in oil prices came with a $26 billion safety net. That’s how much they stand to get paid on insurance they bought to protect themselves against a bear market -- as long as prices stay low.

The Oil Industry's $26 Billion Life Raft - Bloomberg Business

Saudi Arabia increased oil production in March to the highest in at least 12 years and expects crude prices to rise in the “near future,” according to oil minister Ali al-Naimi. The kingdom, which led the Organization of Petroleum Exporting Countries last year in refusing to cut output, produced 10.3 MMbopd last month and will keep pumping for now at around 10 million, al-Naimi said on Tuesday at a conference in Riyadh. The March figure is the highest since at least 2002, when the Joint Organisations Data Initiative began compiling output statistics.

Saudi Arabia sees crude price rising as it boosts oil production




RE: OPEC, for some quiet moments.. - admin - 04-11-2015

Jeff Currie, Goldman Sachs head of commodities, weighs in on consolidation in the energy industry, after Royal Dutch Shell announced it is buying BG Group.

Oil's new order: Jeff Currie | Watch the video - Yahoo Finance

The hemorrhaging of oil prices isn’t just going to cost jobs on rigs and fracking sites. Every job lost in the oil and gas sector may result in another three to four jobs lost outside the industry, according to a research note from Goldman Sachs’s Alec Phillips.

For every oil job lost, up to four more may go, analyst says - MarketWatch

Woodside Petroleum's Pyxis-1 exploration well, in production license WA-34-L, has intersected approximately 18.5 m of net gas within its Jurassic sandstone target, the company announced Wednesday. The well reached a total depth of 3,347 m. Wireline logging has confirmed the discovery through the recovery of gas samples to surface and the establishment of a gas pressure gradient.

Woodside hits gas offshore Western Australia

Oil companies have a knack for picking the bottom in crude prices, and history may be about to repeat itself. Traders and analysts are speculating that Royal Dutch Shell Plc’s takeover of BG Group Plc for $70 billion may be the first in a wave of acquisitions, as oil companies seek to drive out costs following the rout in oil prices.

If history is any guide, big deals signal oil market bottoming




RE: OPEC, for some quiet moments.. - admin - 04-12-2015

One faction that is being led by Saudi Arabia wants to maintain and even increase its production levels while the other faction consisting of Venezuela, Nigeria, Iran, Iraq and Algeria requires just the opposite for safeguarding their national interests. In fact, the latter requires crude prices to be as high as $100 per barrel in order to balance their falling budgets (Source: IMF).

How Much Longer Can OPEC Hold Out? - Yahoo Finance

The U.S. remained the world's top producer of petroleum and natural gas hydrocarbons in 2014, according to U.S. Energy Information Administration (EIA) estimates. U.S. hydrocarbon production continues to exceed that of both Russia and Saudi Arabia, the second- and third-largest producers, respectively. For the U.S. and Russia, total petroleum and natural gas hydrocarbon production, in energy content terms, is almost evenly split between petroleum and natural gas. Saudi Arabia's production, on the other hand, heavily favors petroleum.

EIA: U.S. top producer of petroleum, natural gas hydrocarbons in 2014

The decline in oil prices is “temporary,” and crude is steadying at $55–60/bbl amid stronger global demand, an adviser to Saudi Arabia’s oil minister said. Economic expansion in the U.S. and many developing countries together with growth in populations and middle-class affluence will propel demand for oil for the next 10 years, Ibrahim al-Muhanna said Thursday, according to the text of a speech he gave in Riyadh.

Saudi Arabia’s Muhanna sees oil recovering from ‘temporary’ drop

A final nuclear deal with Iran and the lifting of oil export sanctions from the OPEC member could lead the U.S. Energy Information Administration to lower its oil price forecast for next year by as much as $15/bbl.

Iran deal may cut EIA oil price forecast by as much as $15/bbl




RE: OPEC, for some quiet moments.. - admin - 04-12-2015

An LNG behemoth emerges: The deal combines the two largest IOC LNG players to create an industry giant. By 2018, the combined entity will control sales of 44 MMtpa of LNG, making it the largest LNG seller in the world. Shell will have unrivalled flexibility and exposure to virtually every major LNG supply source and market globally, which means significant scope for portfolio optimization. The move re-energizes Shell's LNG development pipeline, adding a leading U.S. position, entry to East Africa, and new options to expand an already giant presence in Australia and Canada.

BG scoop secures Shell’s deepwater, LNG status: Wood Mackenzie

There are a lot of meetings with engineers, chemists and geologists. There's a constantly evolving learning curve. And then there's all the regulations and compliance. But all-in-all it's pretty straight forward, that is, until the media gets a hold of it. That's when it becomes complicated. It's as though we are getting reports from the mysteries of the deep ocean or life in the great galaxies beyond. There is so much hyperbole and unsupported guesswork that investors don't have a chance. So, in a small effort to set the record straight, let's see if we can't dispel some of the misinformation.

Top 12 media myths on oil prices - Apr. 10, 2015

Thanks to this reckless over-production; Canadian tar sands oil production has created three ultra-expensive/ultra-inefficient bottlenecks for itself: a) Insufficient refining capacity b) Insufficient shipping/pipeline infrastructure c) Insufficient skilled labour     Because of (a) and (b); Canada’s tar sands oil has been sold at “discounts” of up to $40/barrel. Because of © and other factors; production costs for tar sands oil (which was already the world’s most-expensive) continue to soar.

Harper’s Folly: Canada Losing $30+ Billion/Year on Tar-Sands Oil | Zero Hedge




RE: OPEC, for some quiet moments.. - admin - 04-13-2015

Supply was only half the calculus, though. While the new Saudi stance was being trumpeted as a war on shale, Naimi’s not-so-invisible hand pushing prices lower also addressed an even deeper Saudi fear: flagging long-term demand.

Saudi Arabia's Plan to Extend the Age of Oil - Bloomberg Business

World oil markets will not see a significant rise in Iranian supplies for up to five years even if the OPEC member and world powers clinch a final nuclear deal by end-June, Fatih Birol chief economist and future head of International Energy Agency (IEA) said.

IEA: Iran's oil output could rise significantly 3-5 years post-nuclear deal - Business Insider

The drop in big oil companies' profits in the past eight months isn't just a function of lower crude prices – it also reflects strategic choices. A Reuters examination of corporate filings by some of the biggest players in the industry, including BP (BP.L), Shell (RDSa.L) and France's Total (TOTF.PA), shows the sensitivity of these companies' earnings to changes in oil prices has risen in recent years.

Oil companies’ profits hit by quest for crude price exposure | Reuters

The U.S. rig count has dropped below 1,000 for the first time since September 2009, according to the latest data from Baker Hughes. The rig count, which dropped 40 to 988, has fallen for 18 consecutive weeks, dropping nearly 50% from the 1,920 rigs reported by the company on Dec. 5.

U.S. rigs fall below 1,000 for first time since ’09: Baker Hughes




RE: OPEC, for some quiet moments.. - admin - 04-14-2015

Woodside entered into a binding transaction with Apache Corp. in December to acquire Apache’s Australian Wheatstone LNG and Balnaves oil interests and Kitimat LNG project interests in Canada, for an aggregate purchase price of $2.75 billion and an expected closing adjustment of approximately $1.0 billion.

Woodside completes deal on Apache Corp.’s Kitimat LNG stake

Faced with continued market uncertainty due to falling oil prices in late 2014, U.S. oil producers operating in shale plays, such as the Eagle Ford in south Texas, have built a large inventory of nearly 1,400 drilled but uncompleted wells (DUC) that are now driving the investment focus for many operators. The most promising of these wells belong to just a handful of operators in the play, giving them a likely advantage, according to new analysis from IHS.

Inventory of uncompleted wells offers opportunities for some operators: IHS

Oil headed for the longest stretch of weekly gains since February 2014 as Iran disputed the framework for a nuclear deal with world powers that would allow the OPEC member to boost crude exports.

Oil heads for 4th weekly gain as Iran disputes nuclear framework

BP Plc coined the slogan “Beyond Petroleum.” The new industry mantra might be “Beyond Oil and Into Gas.” Oh, and while we’re at it, “Down With Coal.” Consider Royal Dutch Shell Plc’s recent $70 billion acquisition of BG Group Plc -- clearly a huge bet that natural gas will prove to be its cash cow of the future.

Shell’s Bet on Gas Underscores Big Oil’s Push to Replace Coal - Bloomberg Business




RE: OPEC, for some quiet moments.. - Tusker - 04-14-2015

Shell's Bet on Gas ....

Dosen't Shell have left over shares in Woodside? Mention made Shell wants to sell assets. Woody cancelled a major project and management's nearfuture horizons are a bit foggy? As mention elsewhere, it is cheaper to buy Nat Gas reserves and infrastructure than to build it. Unless, of course, you are near or at the top of the lowest cost future LNG production.


RE: OPEC, for some quiet moments.. - admin - 04-15-2015

Several days ago, oil spiked when headlines hit that Saudi Arabia's oil minister Ali al-Naimi said he was "optimistic" about the future of the price of oil. The spike was confusing because what Saudi Arabia also said, but got no air time, is that the current excess oil production would persist indefinitely, and assure that the scariest chart for oil bulls, namely crude oil inventories in the US

"Saudi Arabia Is Going For it" - Why The Saudis Just Boosted Oil Production To A Record High | Zero Hedge

OPEC has criticized unidentified non-member countries for their refusal to cooperate with the oil exporter group in propping up prices and repeated its call for them to do so.

OPEC publication urges non-members to help stabilize oil market - Yahoo Finance

Crude prices rose on Tuesday after the U.S. Energy Information Administration said it expected U.S. shale oil output to record its first monthly decline in over four years. Front-month Brent crude futures were trading up 34 cents a $58.27 a barrel by 0106 GMT, while U.S. crude had risen 31 cents to $52.22.

Oil prices rise on expected U.S. shale production dip | Reuters

Has oil bottomed out yet and what would the picture in the Middle East look like if it has? Oppenheimer suggests that there will be an increased wave of mergers and acquisitions (M&A) among other things. Companies looking to benefit the most from this would seemingly be Exxon Mobil Corporation (NYSE: XOM). 24/7 Wall St. has noted that Exxon Mobil has been one of the greatest stock buyback outfits in history, and the company has been cited by many sources in recent weeks and months as the most likely acquirer ahead.

Why Oil Stocks Will Get More Expensive - ExxonMobil Corp (NYSE:XOM) - 24/7 Wall St.




RE: OPEC, for some quiet moments.. - admin - 04-16-2015

The shale oil boom that pushed U.S. crude production to the highest level in four decades is grinding to a halt. Output from the prolific tight-rock formations, such as North Dakota’s Bakken shale, will decline 57,000 bopd in May, the Energy Information Administration said Monday. It’s the first time the agency has forecast a drop in output since it began issuing a monthly drilling productivity report in 2013.

Shale oil boom seen ending in May following price collapse: EIA

The rapid and aggressive response by oil and gas companies to low oil prices has stabilized the sector. According to Wood Mackenzie, the price required for companies to be cash flow neutral in 2015 has dropped by over $20/bbl to $72/bbl. The Edinburgh-based consultancy believes further cuts would be required to achieve cash flow neutrality if oil prices remain around current levels. For some companies, this will mean selling assets, others may suspend or limit dividend and buyback programs.

Cash flow breakevens down by $20, but low prices will need deeper cuts: Wood Mackenzie

A court in Japan has dealt a blow to plans by the prime minister, Shinzo Abe, to relaunch nuclear power generation four years after the Fukushima meltdown by halting the restart of two reactors over safety concerns.

Japan's post-Fukushima nuclear restart plans dealt a blow by court ruling | World news | The Guardian

“We’re going off an inevitable cliff” because of the shrinking rig counts, Carl Larry, head of oil and gas for Frost & Sullivan LP, said by phone from Houston on Monday. “The question is how fast is the decline going to go. If it’s fast, if it’s steep, there could be a big jump in the market.”

Shale Oil Boom Could End in May After Price Collapse - Bloomberg Business