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RE: OPEC, for some quiet moments.. - admin - 05-10-2015

The biggest obstacle to Royal Dutch Shell’s $70-billion offer for BG Group probably lies in China. Shell CEO Ben Van Beurden visits the country this week to convince officials that the combination of two large oil and gas producers poses little risk for the world’s biggest energy importer.

Shell CEO visits China to win backing for $70-billion BG deal

In a wide-ranging discussion Tuesday, energy officials and executives from the U.S., Canada and Mexico acknowledged that their E&P sectors face a number of short-term challenges, but they also are upbeat about the longer-term potential. “We obviously have to get by the lower, current oil prices,” said Dr. Gustavo Hernández Garcia, who is general director for E&P at Mexican state firm Pemex. “For us, the key factors of low oil prices have been increased U.S. production, uncertainty over OPEC quotas, and China’s economy and resulting oil demand.”

OTC '15: North American energy leaders paint mixed picture for 2015, beyond

Speaking to an OTC topical breakfast on Wednesday morning, ADMA-OPCO (Abu Dhabi Marine Operating Company) CEO Ali Rashid Al-Jarwan said that upstream activity is thriving in Abu Dhabi, despite the global downturn in oil prices. “In our case, we have learned from the past downturns—we’re being more efficient. But we’re also already committed to so many mega-projects, that it’s like a train—you can’t stop it. At ADNOC (Abu Dhabi National Oil Company, ADMA-OPCO’s parent), we have a long-term vision.”

OTC '15: Relatively unaffected by low prices, Abu Dhabi pursues major expansion

Plentiful supplies of crude, fueled in part by the U.S. boom, undermine the case for shipping liquefied natural gas overseas.

Why Cheap Oil Is Bad News for U.S. Gas-Export Hopes | Foreign Policy

RE: OPEC, for some quiet moments.. - admin - 05-11-2015

Around 80 percent of the banks surveyed by the Fed indicated that their exposure to shaky oil companies accounted for less than 10 percent of their commercial lending. In that sense, a wave of defaults across the oil and gas country would appear unlikely to ripple through the financial industry. Still, over half of the banks who made loans to drillers expect their loan quality to deteriorate.

The oil crash may not cause the financial apocalypse after all - Business Insider

Instead, Mahesh said, minor price gains are encouraging a fresh flood in supply. "The higher the price goes now and the swifter it is going, we will see producers sort of curtail their ambitions to cut production."

Is the oil market recovery unsustainable?

As the oil industry tightens its belt after the worst price slump in a generation, the state-owned giants of the Middle East are taking the opposite tack. Saudi Arabian Oil Co., Abu Dhabi National Oil Co. and Kuwait Petroleum Corp. are using a record number of drilling rigs and boosting production, a contrast to international companies from Exxon Mobil Corp. to Royal Dutch Shell Plc, which are shelving projects and slashing costs.

There’s one part of the world where the oil industry is booming

Iran, OPEC’s fifth-biggest producer, sees $70-$75/bbl as a suitable price for crude, Oil Minister Bijan Namdar Zanganeh said, as markets show signs of a partial recovery from last year’s collapse. “Nobody is satisfied with current prices and instabilities and fluctuations,” Zanganeh said Wednesday at a news conference in Tehran. “I think everyone is very satisfied with $70 to $75,” he told reporters later. Brent crude, an international benchmark, was trading at $67.69/bbl Thursday at 7:46 a.m. in London.

Iran sees $75 oil amid plans for post-sanctions output boost

RE: OPEC, for some quiet moments.. - admin - 05-13-2015

The chances of another sharp fall in the price of oil is rapidly receding, according to a notable European commodity analyst, who expects a period of stability in the second half of the year. "The simple fact of the matter is that the window for a correction will be closing in the coming few weeks," Michael Wittner, global head of oil research at Societe Generale, said in a note released Monday morning. He highlighted a number of reasons why prices could stabilize over the next six months, including the fact that it comes after the March-to-May quarter, which is traditionally when global crude oil supplies are built up.

Window for an oil correction is closing: Analyst

Currently, 10 million barrels of crude flow through the Strait of Malacca alone. Most of this oil is headed into the South China Sea, bound for ports in China, Japan, Korea, the U.S., and Canada. This means that any potential threats to the South China Sea are potential threats to anyone dependent on the oil running through it.

How China could hold the oil market ransom - Business Insider

The rally in crude oil is reviving the U.S. shale boom, threatening speculators who are the most bullish on prices since July. Money managers increased their net-long position in West Texas Intermediate crude by 3.9% in the seven days ended May 5, U.S. Commodity Futures Trading Commission data show. That’s a level last seen toward the start of last year’s price crash. Short positions declined to the lowest this year.

Crude-oil bulls threatened as shale patch revives drilling plans

Energy companies have astonished investors with their first quarter earnings. Overall, companies have passed expectations so much that last week, earnings growth for the first quarter turned positive for the first time since January.

Energy companies earnings surprise Q1 - Business Insider

RE: OPEC, for some quiet moments.. - admin - 05-13-2015

Oil needs to recover to $65/bbl for U.S. drillers to tap a pent-up supply locked in shale wells and unleash more crude on markets than is produced by Libya. Dipping into this “fracklog” would add an extra 500,000 bopd of oil into the market by the end of next year, Bloomberg Intelligence said in an analysis. Producers in oil and gas fields from Texas to Pennsylvania have 4,731 idled wells at their disposal.

Oil at $65 could free 500,000 bopd from shale ’fracklog’

The oil boom isn't dead after all. For the first time in five months, a rig in the Williston basin, where North Dakota’s Bakken shale formation lies, sputtered back to life and started drilling for crude once again. And then one returned to the Permian basin, the nation’s biggest oil play, field services contractor Baker Hughes Inc. said Friday.

America’s oil boom sputtering back to life one rig at a time

The U.S. Energy Department has issued a final authorization for Dominion Cove Point LNG, LP to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the U.S. The Cove Point LNG Terminal in Calvert County, Maryland, is authorized to export LNG up to the equivalent of 0.77 Bcfd of natural gas for a period of 20 years.

U.S. Energy Department authorizes Dominion Cove Point LNG exports

Mooring installation works have commenced at Ichthys field in the Browse basin, about 220 km offshore Western Australia, as part of the Inpex-operated Ichthys LNG project’s ongoing offshore installation campaign.

Ichthys LNG project commences mooring installation

RE: OPEC, for some quiet moments.. - admin - 05-14-2015

Saudi Arabian Oil Co., the world’s largest oil exporter, is planning to spend between $70 billion and $80 billion on overseas acquisitions and investments during the next five years, three people with knowledge of the matter said.

Saudi Aramco said to plan up to $80 billion spending abroad

Lawmakers pushing to repeal the 1970s-era ban on U.S. oil exports face a steep obstacle: The Obama administration sees no need to fully remove the restriction while the country is still importing part of its oil supply. And many politicians are wary of a voter backlash if gasoline prices go up just as they open the door to exports.

What would it take to free US oil exports? - Business Insider

The U.S. lost about 1% of the oil production flowing from its shale formations this month, and the decline is just starting. Output from the prolific tight-rock formations such as North Dakota’s Bakken and Texas’s Eagle Ford shale will slide 54,227 bpd this month, based on Energy Information Administration estimates. It’ll fall another 86,000 bbl in June to a five-month low of 5.56 million, the agency said Monday.

Shale oil production cuts to get bigger next month, EIA says

When Cuadrilla Resources opened an office in Poland in 2009, it had a reason to be optimistic: the shale boom was transforming the U.S. into the world’s largest producer of natural gas. To the companies rushing to imitate that success in Europe, Poland looked like the next Texas. Six years later, the U.K. explorer has yet to drill its first Polish well -- and that’s in the country that’s most eager to allow hydraulic fracturing in Europe. The so-called super-majors like Exxon Mobil, Chevron and Royal Dutch Shell have packed up and moved on.

Shale drillers capitulating in Europe as Poland proves to be no Texas

RE: OPEC, for some quiet moments.. - ArtM72 - 05-15-2015

With the Saudi Arabian Oil Co. plan to be spending $70-$80 billion for overseas acquisitions and investements noted above, and its interest in expanding in the Asian market one has to ask if any of that money might be destined for one of the newest and potentially prolific properties in Australasia.

RE: OPEC, for some quiet moments.. - admin - 05-15-2015

By 2025, mega-projects offshore Brazil and Norway will add some 3.8 MMbopd of new crude supply from the Atlantic basin according to Wood Mackenzie's latest outlook. Since most of this crude will be of a similar quality; relatively heavy and sweet, it represents a major opportunity for refineries in Europe and beyond as they try to maximize margins from these streams.

Upstream mega projects to alter global crude routes and refining

Oil extended its advance to trade above $61/bbl on signs the U.S. supply glut is easing. Futures rose as much as 1.8% in New York after gaining 2.5% Tuesday. Crude inventories fell by 2 MMbbl through May 8 for a second weekly drop, the industry-funded American Petroleum Institute was said to have reported. A decline of 250,000 bbl is projected in a Bloomberg survey before government data Wednesday. Global demand this year will increase more than previously forecast, according to OPEC.

Oil extends gain above $61 as U.S. crude supply glut seen easing

OPEC is more united now about keeping its oil-production target unchanged than it was at its last meeting in November because crude prices have risen this year, according to Kuwaiti Oil Minister Ali Al-Omair.

OPEC seen by Kuwait more united on oil output as prices rise

Petrobras has announced that on April 11, 2015, oil production in the fields it operates in the pre-salt province of the Santos and Campos basins reached the milestone of 800,000 bopd, constituting a new daily production record. Of this volume, around 74% (590,000 bopd) corresponds to Petrobras’ share and the remainder belongs to its partner companies in different pre-salt layer production areas.

Petrobras’ operated pre-salt production exceeds 800,000 bopd

RE: OPEC, for some quiet moments.. - admin - 05-16-2015

Saudi Arabia says its strategy of squeezing high-cost rivals such as US shale producers is succeeding, as the world's largest crude exporter seeks to reassert itself as the dominant force in the global oil market.

Saudi claims oil price strategy success

Oil bulls who’ve cheered a rebound of 40 percent from a six-year low should take heed: Unless demand accelerates, the rally is in danger. The omens aren’t good. The U.S. government expects global consumption to grow next year at less than half the rate of 2010, when the world was emerging from a previous recession. The growth is insufficient to close the gap with rising supply, according to Royal Dutch Shell Plc, Europe’s biggest energy producer.

Oil's Not Coming Back. Here's Why - Bloomberg Business

Once again, we wake up with markets reacting more to macro data versus fundamentals, Goldman Sachs reiterating its bearish call on oil, and the EIA back tracking on its data (again).

Why predictions for lower oil prices are wrong - Business Insider

In recent years, every time the specter of higher taxes reared its head, the refrain from the industry elite was that oil sands already operate on the edge of profitability. Any increase in costs, they argued, whether because of stiffer environmental rules or higher taxes, threatens future investment—and Alberta’s economy. For the most part, the conservatives listened. The election of the NDP has been enough to spook investors in Alberta oil companies. The day after the vote, the S&P/TSX Composite, an index of Canadian energy companies, had its worst plunge in three months. “Oil sands to me is public enemy No. 1 in the new premier-elect’s mind,” says Eric Nuttall, a Toronto-based fund manager at Sprott Asset Management. “The investment thesis in all of those stocks evaporated overnight.”

Alberta: Liberals’ Election Win Spooks Canada’s Oil Industry - Bloomberg Business

RE: OPEC, for some quiet moments.. - admin - 05-17-2015

As much as 141 Bbbl of potential incremental hydrocarbon resources could be unlocked if drilling and completion techniques refined in U.S. shale plays are applied to conventional, low-productivity oil plays outside of North America, according to new analysis from IHS. Curious as to what the potential might be if newer techniques were applied to old plays, IHS Energy researchers conducted a high-level assessment that identified more than 170 mature oil plays worldwide with untapped oil potential that might benefit from horizontal drilling and hydraulic fracturing.

Unconventional techniques could free 141 Bbbl from mature fields, IHS says

U.S. Sens Lisa Murkowski, R-Alaska, and Heidi Heitkamp, D-N.D., along with 11 of their Senate colleagues introduced the Energy Supply and Distribution Act of 2015 on Wednesday. This bipartisan legislation would modernize federal energy policy by ending the ban on crude oil exports. Murkowski and Heitkamp were joined by Sens. Hoeven, R-N.D., Barrasso, R-Wyo., McCain, R-Ariz., Corker, R-Tenn., Alexander, R-Tenn., Risch, R-Idaho, Flake, R-Ariz., Capito, R-W.Va., Inhofe, R-Okla., Rubio, R-Fla., and Lankford, R-Okla. as cosponsors representing six committee Chairmen.

Bipartisan coalition introduces bill to end U.S. oil export ban

An aboriginal group along Canada’s Pacific Coast turned down Petroliam Nasional Bhd.’s offer of C$319,000 ($267,000) for each member as compensation for building a natural gas export terminal on ancestral lands. The Lax Kw’alaams Band in northern British Columbia spurned the C$1.15 billion package after the community unanimously voted against the $30 billion project in three polls. The group is concerned that the project will harm the environment. The rejection is a new obstacle to plans to export liquefied natural gas from North America to Asian markets.

Canada aboriginals reject $960 Million Petronas gas deal

Now the latest technological advance may be on the horizon. “Refracking” is the process of going back to old wells using new technology to extract more resources. Devon Energy and Chesapeake Energy are among the companies looking at refracking as a low cost way of extracting more resources from existing assets. Refracking is technically feasible at any of the approximately 50,000 existing wells that were drilled across the U.S. when fracking technology was still in its infancy.

This new business model might save fracking - Business Insider

RE: OPEC, for some quiet moments.. - admin - 05-18-2015

The Drilling Productivity Report uses recent data on the total number of drilling rigs in operation along with estimates of drilling productivity and estimated changes in production from existing oil and natural gas wells to provide estimated changes in oil and natural gas production for seven key regions. EIA's approach does not distinguish between oil-directed rigs and gas-directed rigs because once a well is completed it may produce both oil and gas; more than half of the wells produce both.

U.S. Energy Information Administration (EIA)

Speculators are losing faith in the oil rally, judging that OPEC will keep increasing supply from the highest level since 2012. Their net-long position in West Texas Intermediate crude dropped 2.1%, as long wagers fell the most in two months and short bets declined to the lowest since August, U.S. Commodity Futures Trading Commission data show.

Hedge funds lose faith in oil rally as OPEC seen boosting supply

Petroleos Mexicanos abandoned a third rig contract with Paragon Offshore Plc this week as the state-owned oil producer reduces spending after prices collapsed.

Pemex scraps third Paragon Offshore rig contract as woes mount

They are separated by just 38 miles on the remote plains of south Texas, really no more than a quick spin down old Highway 80. And yet Karnes City and Smiley provide polar-opposite glimpses into what life in a U.S. oil boom town looks like in the wake of last year’s price collapse.

Two Texas oil towns, 38 miles apart: One still booms, one’s dead