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RE: OPEC, for some quiet moments.. - admin - 04-17-2015

This slowdown in production, coupled with a significant increase in refining capacity will alleviate one of the largest gluts of crude oil in U.S. history. The good news for U.S. consumers is that they have enjoyed sharply lower fuel costs. However and more importantly, the specter of $100/bbl fuel in the future is nearly non-existent, as a result of the enormous proven energy assets in several key formations, Eagle Ford, Bakken, Permian and others. The rigs that have been turned off line can be put back into production if prices merit it. In addition there are nearly 3,000 uncompleted wells that could supply energy well into the future if need be. In short, the United States is not only on the verge of energy independence it is also assured of an uninterrupted supply of domestic crude oil for generations.

U.S. on verge of energy independence: Peter Kenny - Yahoo Finance

Yemen halted output and exports from the country’s sole LNG plant as fighting in the area worsens. Yemen LNG Co. declared force majeure, a legal clause meaning circumstances make it impossible to meet contractual obligations, according to an emailed statement Tuesday.

Yemen LNG halts production as fighting worsens security at plant

In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club. Now that oil prices have dropped by half to $50/bbl, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.

Oil-rich nations selling assets at record pace

Is This the Beginning of a Recovery in Crude Oil Prices?

Is This the Beginning of a Recovery in Crude Oil Prices? - Bloomberg Business




RE: OPEC, for some quiet moments.. - admin - 04-17-2015

OPEC production climbed by the most in almost four years as Saudi Arabia, Iraq and Libya boosted output amid a stronger outlook for global oil demand, according to the International Energy Agency. The Organization of Petroleum Exporting Countries raised output by 890,000 bopd to 31.02 MMbopd in March, the biggest monthly gain since June 2011, the IEA estimated. Preliminary data suggest output may rise further this month, it said. The agency cut its prediction for U.S. and Canadian oil supply growth in the second half of the year.

IEA sees OPEC supply jumping most in four years on Saudi surge

Oil surged to the highest level of the year, as a break in the U.S. shale boom signaled a potential easing of the biggest supply glut since 1930. Crude supplies increased last week at the slowest pace since January, the Energy Information Administration said. Output from shale formations such as North Dakota’s Bakken will fall in May, the EIA said Monday.

Oil rises to 2015 high as data signals end of U.S. supply surge

Oil’s plunge has forced the world’s biggest energy producers to lay off workers and stall projects. Their CEOs have so far proved immune. Royal Dutch Shell Plc, Europe’s biggest oil company, paid CEO Ben Van Beurden a total of $32.2 million last year, almost three times the amount his predecessor Peter Voser earned in 2013, according to data compiled by Bloomberg Intelligence. At BP Plc, where shareholders will vote on compensation at the annual general meeting on Thursday, CEO Bob Dudley’s total pay rose 4.9% to $15.4 million.

Oil CEO wages immune to price slump as shareholders vote on pay

Despite major cost reduction measures, first-quarter earnings for supermajors are expected to be the weakest in recent memory, according to Douglas-Westwood's DW Monday. Operational and financial indicators for full-year 2014, however, reveal that recent performance amongst the big five has been far from homogeneous.

Supermajors' Q1 earnings to be the weakest in recent memory: Douglas-Westwood




RE: OPEC, for some quiet moments.. - admin - 04-18-2015

While the U.S. pats itself on the back for the riches flowing from fracking wells, an upheaval in clean energy is quietly loosening the oil industry's grip on the automotive industry.

Big Oil Is About to Lose Control of the Auto Industry - Bloomberg Business

Saudi Arabia boosted crude production to the highest in three decades in March, with a surge equal to half the daily output of the Bakken formation in North Dakota. The kingdom boosted daily crude output by 658,800 barrels in March to an average of 10.294 million, according to data the country communicated to the Organization of Petroleum Exporting Countries’ secretariat in Vienna. The Bakken formation, among the fastest-growing shale oil regions in the U.S., pumped 1.1 million barrels a day in February, according to data from the North Dakota Industrial Commission.

Saudi Arabia Adds Half a Bakken to Oil Market in a Month - Bloomberg Business

Oil rose to the highest level in almost four months on speculation that slowing production will ease a supply glut. Prices gained for a sixth day in New York, reversing an earlier drop of as much as 2.3%. Crude supplies increased last week at the smallest pace since January, the Energy Information Administration said. Prices also gained as the dollar weakened and the crisis in Yemen spread.

Oil rises to four-month high on speculation production slowing

The U.S. keeps pumping oil at a near-record pace, in spite of the collapse in prices over the past year and cutbacks in drilling. Crude production rose 1.3% in March, to the highest level since 1973, a Federal Reserve index showed Wednesday. Output was up 13.7% from a year ago, according to the central bank's report on industrial production. For all of 2014, the gauge of oil extraction climbed 15.4%.

U.S. oil output keeps climbing even as producers drill fewer wells




RE: OPEC, for some quiet moments.. - admin - 04-20-2015

The enormous increase in production comes into a market that is still dealing with extraordinarily low prices. The move could be interpreted as a stepped up effort on behalf of Saudi Arabia to maintain market share at all costs. More output will prolong the slump in oil prices, which will force even more U.S. shale production out of the market. The signs of success are already showing – the U.S. is set to lose 57,000 barrels per day in production in May, and rig counts are still falling.

Saudi Arabia is setting the world up for a major oil shock - Business Insider

Saudi Arabia is succeeding in pushing out U.S. shale production, but in the meantime, the world is getting hooked on low prices. Oil demand is growing quickly – the IEA predicts global demand will jump from 92.66 million barrels per day in the second quarter up to 94.67 million barrels per day in the fourth quarter.

Saudi Arabia is setting the world up for a major oil shock - Business Insider

A new EPA report shows continued decline in methane emissions from natural gas production, as operators capture and deliver more natural gas to consumers, the American Petroleum Institute (API) said. “The latest inventory shows that U.S. producers continue to make dramatic improvements, with net methane emissions from natural gas production falling 38% since 2005,” said Howard J. Feldman, API senior director of regulatory and scientific affairs. “These voluntary efforts will continue, as operators work to capture more gas and deliver it to consumers. Another layer of burdensome regulations will only interfere with that progress.”

EPA highlights decline in methane emissions from natural gas production

America became the world's largest oil producer in 2014. In a recent note to clients, Joseph Quinlan, chief market strategist, U.S. Trust, Bank of America Private Wealth Management highlighted three ways this became possible: "It was (1) pro-market policies at the state and local level, combined with (2) revolutionary technologies like horizontal drilling and hydraulic fracturing, and (3) good old American entrepreneurship/risk-taking that upended the energy patch."

America energy boom charts - Business Insider




RE: OPEC, for some quiet moments.. - Thylacine-2 - 04-20-2015

The view that current low prices may be setting us up for a major oil shock is what I was trying to express in March. The author of the article agrees with my concerns that shale production won't respond agilely enough to prevent such a shock. Let's hope he and I are wrong. The world economy isn't on solid enough grounds to withstand an oil shock.


RE: OPEC, for some quiet moments.. - admin - 04-20-2015

'Thylacine-2' pid='57065' datel Wrote:The view that current low prices may be setting us up for a major oil shock is what I was trying to express in March. The author of the article agrees with my concerns that shale production won't respond agilely enough to prevent such a shock. Let's hope he and I are wrong. The world economy isn't on solid enough grounds to withstand an oil shock.

From what I understood shale production can be 'switched' back on fairly quickly, but perhaps not so much after a prolonged slump, and the surprise is the rather significant increase in demand.




RE: OPEC, for some quiet moments.. - jft310 - 04-20-2015

Two million barrels a day in demand increase is very significant and the oversupply some say was 600,000 barrels a day . Argues for Thylacine's point .


RE: OPEC, for some quiet moments.. - admin - 04-20-2015

Through all the fits and starts over the past few months, the gains this time around appear to be more justified. That is because the markets are finally adjusting.

The oil price rally is in full swing - Business Insider

refiners are stepping up the rate of processing. Refining throughputs are much higher than they typically are for this time of year. The spread between crude oil prices (WTI trades at a discount to Brent) and the product markets for gasoline, diesel and other refined products (which trade much closer to the higher Brent prices), has provided a windfall for refiners. Instead of taking a lot of refineries offline for maintenance, they are running at higher capacity in order to take advantage of the unique opportunity right now. And that extra activity is providing more pull on the demand side. As production curtails and demand picks up, oil prices are finding their footing.

The oil price rally is in full swing - Business Insider

OPEC says the demand for oil – its oil – will rise during 2015 because the cartel is winning its price war against US shale producers by driving them out of business. “Higher global refinery runs, driven by increased [summer] seasonal demand, along with the improvement in refinery margins, are likely to increase demand for crude oil over the coming months,” the cartel said in its Monthly Market Report, issued, April 16. OPEC forecasts demand at an average of 29.27 million barrels per day in the first quarter 2015, a rise of 80,000 bpd from its previous prediction made in its March report. At the same time, it said, the cartel’s own total output will increase by only 680,000 barrels per day, less than the previous expectation of 850,000 barrels per day, due to lower US and other non-OPEC production.

OPEC Says US Oil Boom Will End This Year

Saudi Basic Industries Corp faces heavy pressure on its profits due to cheap oil but will keep investing globally to boost capacity in key areas, its acting chief executive said on Sunday after the company reported a 39 plunge in first-quarter profit.

Oil slide slashes first-quarter profit, not investment plans at Saudi's SABIC - Yahoo Finance




RE: OPEC, for some quiet moments.. - Putncalls - 04-21-2015

Throttling oil production in the US takes a human toll and that will be a problem.


RE: OPEC, for some quiet moments.. - admin - 04-21-2015

That will put oil markets in an interesting situation. U.S. production will continue to shrink as the year goes on and Saudi Arabia will have very little spare capacity. If a supply disruption occurs somewhere – more loss of Libyan oil, violence in the Middle East, or a faster-than-expected drop off in U.S. production – the Saudis will be left with little firepower to control a price spike

Saudi Arabia is setting the world up for a major oil shock - Business Insider

Oil explorers idled rigs in U.S. fields for the 19th straight week, prolonging an unprecedented retrenchment in drilling. Rigs targeting oil in the U.S. declined by 26 to 734, Baker Hughes Inc. said on its website Friday, a four-year low. Those seeking gas slipped by eight to 217, the Houston-based field services company said. The total U.S. count, which includes three miscellaneous rigs, fell by 34 to 954, the fewest since 2009.

U.S. oil rigs slide for 19th week as record retreat drags on

Santos Ltd. expects its $18.5-billion LNG project in Australia to start production in about five months, pushing the country closer to becoming the world’s largest supplier of the fuel. The Gladstone LNG project should begin around the end of the third quarter, the Adelaide-based company said Friday as it posted a 10% drop in first-quarter sales. That narrows the forecast start date of the plant from the company’s previous expectation of the second half.

Santos nears start of $18.5-billion Gladstone LNG project

With OPEC ceding control for the first time since the 1980s, U.S. shale oil has been anointed the world’s new 'swing producer' by everyone from ConocoPhillips and Goldman Sachs Group to former Fed Chairman Alan Greenspan. But can America’s oil really swing it? Producers cut billions in spending, idled half the country’s rigs and kept more than 3,000 wells off the market, and it still took five months for U.S. production to start dropping. Analysts and banks say a recovery in production will also prove slower and more difficult than it would be for a single producer like Saudi Arabia.

Shale as world’s swing producer signals ‘jagged’ oil future