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RE: OPEC, for some quiet moments.. - jft310 - 11-24-2015

Looking at the seismic they drilled in the wrong spot at Wahoo , when they chose the spot to drill the seismic that we see today had not been run . They were shooting blind ,


RE: OPEC, for some quiet moments.. - admin - 11-24-2015

All the bellicosity from OPEC members is coming as the group is preparing for what should be an awkward gathering in Vienna on December 4 to decide on output. Few expect Saudi Arabia to cave to the demands of others, but get ready for more verbal fireworks. The deep dissension threatens to destroy OPEC, at least as we know it. "Of course, that's a risk," said Philipp Chladek, a Bloomberg Intelligence analyst who covers the oil and gas industry in Europe, the Middle East and Africa.

Oil crash sparks OPEC revolt against Saudis - Nov. 23, 2015

The Haynesville Shale play needs $6.50 gas prices to break even. With natural gas prices just above $2/Mcf (thousand cubic feet), we question the shale gas business model that has 31 rigs drilling wells in that play that cost $8-10 million each to sell gas at a loss into an over-supplied market.

Shale Gas Rig Count Could Implode Here If Prices Don’t Rebound | OilPrice.com

Hedge funds are betting OPEC won’t do anything next month to keep crude oil above $40/bbl. OPEC ministers are likely to keep its output quota steady at a meeting on Dec. 4 in Vienna, according to analysts from JBC Energy GmbH and Societe Generale SA. Last November, Saudi Arabia led the group in maintaining production, accelerating a plunge in oil prices. Supply may swell further next year if Iran resumes sales that were halted by sanctions.

Oil bulls see little chance of help from OPEC as supply grows

Oil fell after briefly climbing on Saudi Arabia’s repeated pledge to work with OPEC and other producers to stabilize global oil markets. West Texas Intermediate rose as much as 2% following a report by the Saudi Press Agency. Barclays Plc said the statement doesn’t reflect any policy shift by Saudi Arabia, the biggest member of the Organization of Petroleum Exporting Countries, which is due to meet Dec. 4. The kingdom’s oil minister, Ali al-Naimi, made similar comments last week.

Oil resumes fall as Saudi Arabia repeats readiness to cooperate




RE: OPEC, for some quiet moments.. - ArtM72 - 11-24-2015

'jft310' pid='64886' dateline='<a href="tel:1448294 Wrote:Looking at the seismic they drilled in the wrong spot at Wahoo , when they chose the spot to drill the seismic that we see today had not been run . They were shooting blind ,

Where is the new seismic?  As I recall ioc had done numerous seismic runs as well as aerial survey work for years in that space.    Don't understand why that work proved ineffective for siting.




RE: OPEC, for some quiet moments.. - admin - 11-25-2015

“On the brink of a boom,” was the banner on PricewaterhouseCoopers LLP’s review of Africa’s oil industry 16 months ago. Now, oil below $50 has made more than two out of three investment projects on the continent non-viable. “Capital markets are effectively closed to the oil and gas industry” in Africa, Tony Hayward, former head of BP Plc and now chairman of Genel Energy Plc, said at a conference in Cape Town last month. “A decade of exploration, with billions of dollars invested and only limited commercial success.”

Africa oil boom fades as $50 crude shuts door on high-cost deals

Some $200bn of long-term projects have been cancelled around the world, notably in deep waters, the Arctic, and the Canadian tar sands, but most of this has no immediate effect on prices. Ali al-Naimi, Saudi Arabia’s oil minister, said global demand is recovering and prices will rebound next year as the market comes back into balance. The greater risk is a lack investment in future supply as the ‘decline rate’ on existing fields accelerates to 4pc a year or even higher. “We need billions of dollars to continue exploration and producing oil,” he said. The IEA said in its World Energy Outlook last week that it takes $650bn of fresh investment each year just to stand still.

Goldman eyes $20 oil as glut overwhelms storage sites - Telegraph

With Goldman raising the spectre of a $20 crude price, here’s an alternative scenario from Ecstrat strategist Emad Mostaque… After years of being too high, oil forecasts now appear too low. As supply rolls over we could see prices back at $100, with decade-high geopolitical risks shocking it higher.

How oil can get back to triple digits by 2017 | FT Alphaville

No where is the pain associated with the collapse in commodity prices and utter lack of confidence in energy firms' ability to continue as a going concern greater than the upstream MLP sector.

Comprehensive Energy Update: Shares Retrace, Saudis Seek Cooperation, December OPEC Meeting, Oil Resumes Slide | Seeking Alpha




RE: OPEC, for some quiet moments.. - admin - 11-26-2015

Production from Latin America's premier shale play, the Vaca Muerta, is expected to double by 2018, according to a new development study by Wood Mackenzie. Argentina's massive play continues to be the most prospective tight oil play outside of North America. While a marked ramp-up can be expected by 2020, the study highlights that oil and gas output in 2016 should be moderate with year-over-year production at 10%. Wood Mackenzie expects horizontal wells to become the development of choice as operators are increasingly able to target the most productive intervals of the Vaca Muerta.

Vaca Muerta shale to double production by 2018, Wood Mac says

It’ll take more than $40 crude to make OPEC change its mind, analysts said before the group’s Dec. 4 meeting in Vienna. In the year since the Organization of Petroleum Exporting Countries chose to defend its market share, and let prices sink, a 44% plunge in crude has slashed members’ revenues by almost half a trillion dollars. Undeterred, the group will press on with its strategy to batter rival producers when ministers meet next week, according to 30 analysts and traders surveyed by Bloomberg.

OPEC seen holding the line as $40 crude looms over Vienna

Mexico is reaping record financial returns from its oil hedge this year. After locking in crude sales at $76.40/bbl, Mexico will receive $6.4 billion in December as the guaranteed price exceeds the average for the country’s oil basket, Finance Minister Luis Videgaray said in Mexico City. The 2015 payment surpasses the previous high from 2009, when the Mexican government said it received $5.1 billion after prices plunged with the global financial crisis.

Mexico reaps record $6.4 billion in oil hedge win, minister says

BG Group has started commercial operations from the second train at its Queensland Curtis LNG (QCLNG) plant. QGC, BG Group's Australian subsidiary, has also assumed control of Train 2 from Bechtel Australia, which built the facility. BG Group now has full control of both LNG trains and associated facilities at QCLNG. By mid-2016 the integrated project is expected to reach plateau production, producing enough LNG to load around ten vessels per month combined, which is equivalent to exporting around eight million tonnes per year. Since starting production in December 2014, 71 cargoes have been shipped.

BG starts commercial operations from second train at Queensland Curtis LNG




RE: OPEC, for some quiet moments.. - admin - 11-27-2015

Oil fell in New York for the first time this week as the U.S. supply glut weighs on prices after crude inventories rose for a ninth week. U.S. stockpiles of oil rose 961,000 bbl last week to 488 MMbbl, within 3 MMbbl of the record set in April, according to the Energy Information Administration data released Wednesday. The number of rigs targeting oil in the U.S. fell by nine to 555 in the week through Nov. 25, the lowest level since June 2010, Baker Hughes Inc. said on its website.

Oil falls as U.S. supplies weighed against drilling decline

Surging U.S. crude stockpiles that have filled storage tanks near capacity are widening the discount on immediate oil deliveries.   Spreads between monthly oil-futures contracts are often seen as a reliable gauge of market conditions, and a discount on the earliest months—known as contango—typically signals that supplies exceed demand. Contango isn’t "going away anytime soon," Societe Generale SA analysts said in a research note on Tuesday.

Crude storage tanks nearing their brim spur ‘super contango’

Sometimes when too many market participants and analysts are negative on a security, it is more likely to surprise on the upside. Not sure what it is, but maybe it is just that players are caught "offsides" and they need to quickly adjust their positions. We are not suggesting you go long on futures or even ETFs based on energy contracts, however; we think that there might be more chance for crude oil futures to trade higher the next several weeks.

Oil Prices Are Primed to Rally - TheStreet

After defending the interests of oil-exporting nations for five decades, OPEC has made a surprising choice with its newest member: a country that consumes about twice as much crude as it pumps. Indonesia will rejoin the Organization of Petroleum Exporting Countries as its 13th nation next month, almost seven years after suspending its membership. The country says that as OPEC’s only Asian constituent it will provide a vital link to the region where demand is growing fastest. Still, saddled with an oil-import bill of about $13 billion last year, Indonesia makes an unlikely addition to the exporters’ club.

Introducing the new OPEC member that likes lower oil prices




RE: OPEC, for some quiet moments.. - admin - 11-30-2015

When Tullow Oil (Tullow) announced the basin opening finds in Uganda and Kenya in 2009 and 2012, oil prices were soaring and both countries were jubilant over joining Africa’s oil boom. Undaunted by the collapse in oil prices, Uganda, Kenya and their exploration partners press forward with development of their massive oil fields estimated at 6.5 billion barrels in Uganda and 600 million barrels in Kenya.

Why The East African Oil Bonanza Remains A Dream… For Now | OilPrice.com

Russia’s Gazprom evidently believes there’s no such thing as too much gas. Already the world’s leader in gas production, Gazprom is looking to expand its holdings to liquid natural gas (LNG), which is becoming a major factor in the worldwide gas trade. Yet Gazprom has only one LNG production plant, situated on Sakhalin Island in the Russian Far East. The Sakhalin facility, which came on stream in 2009, has an capacity of producing 9.6 million tons of LNG per year. The company has three other such facilities in the works, but none has begun production yet.

Gazprom is looking to expand its holdings in LNG as Putin plans to triple its sales on the global market | OilPrice.com

Oil pared its first weekly gain in a month on signs the global surplus will expand and as the dollar increased, reducing demand for commodities as an investment. Futures fell 3.1% in New York. The U.S. currency rose on speculation the Federal Reserve will raise interest rates in December for the first time since 2006. The Shanghai Composite Index tumbled 5.5%, its biggest retreat since the depths of a $5 trillion rout in August. Prices also slipped as Libya sought to boost output and Russia ruled out military retaliation against Turkey for downing its jet near the Syrian border. Diesel futures fell to a six-year low.

Oil pares weekly advance as global supply glut seen growing

Total, Royal Dutch Shell and Lukoil are among international companies that have selected oil and natural gas deposits to develop in Iran as the holder of the world’s fourth-largest crude reserves presents $30 billion worth of projects to investors. Total is one of the companies that have been in the forefront of discussions and Eni SpA is also looking to invest, Oil Minister Bijan Namdar Zanganeh said. Shell, Total and Lukoil all specified fields they would be interested in developing in Iran, Ali Kardor, deputy director of investment and financing at National Iranian Oil Co. said in an interview in Tehran.

Oil majors queue in Iran as $30 billion of projects in play




RE: OPEC, for some quiet moments.. - admin - 12-01-2015

Almost by accident, OPEC adversaries Saudi Arabia and Iran are about to work as a team. When the Saudi kingdom decided last year that OPEC should keep pumping to counter a surge in U.S. shale oil, Iran spearheaded resistance to the idea, saying output cuts were needed to buoy prices. Still a critic, Iran is nonetheless poised to amplify the strategy as it ramps up crude exports with the end of sanctions.

OPEC rivals become unwitting allies in push for oil-market share

For Russia, $30 is the number to watch. Crude prices at that level will push the economy to depths that would threaten the nation’s financial system, according to 63% of respondents in a Bloomberg survey. Lower prices for the fuel are next year’s biggest risk for Russia, which is unprepared to ride out another shock on the oil market, most economists said. Other dangers for 2016 include geopolitics, strains in the banking industry and the ruble, according to the poll of 27 analysts.

The $30 oil cliff that economists see threatening Russia

Canada is poised to lose energy companies as the industry faces the “new normal” of lower and more volatile oil prices along with tougher climate and regulatory policies, billionaire investor Murray Edwards warned Friday. The chairman of the nation’s largest heavy-oil producer, Canadian Natural Resources Ltd., likened the oil industry to a horse race in which western Canadian producers are struggling to compete with developers of light crude from U.S. shale. While cost cuts and innovation are allowing some oil-sands developers to stay in the game, parts of the Canadian industry will go by the wayside, Edwards said at a conference hosted by Bennett Jones LLP in the mountain community of Lake Louise, Alberta.

Canadian energy companies seen disappearing in oil’s ‘new world’

They also believe their economies are coping with the fall-out from the pursuit of market shares. Saudi Oil Vice Minister Prince Abdulaziz bin Salman at the same November 9 meeting dismissed IMF Managing Director Christine Lagarde’s warning that the fiscal and current account balances of these four countries and their fellow members in the Gulf Cooperation Council were deteriorating “sharply” and that the GCC countries’ would run a collective 12.7 percent fiscal deficit in 2015. Moreover, they apparently anticipate economy-and-industry-saving price increases will arrive in time to save their economies and industries from substantial and permanent damage. At the Qatar conference, al Mazrouei predicted that crude prices would begin to improve in 2016 as the global crude market rebalances. For his part, Salman asserted that a prolonged period of low prices ultimately will lead to a spike in prices.

Are OPEC Countries Creditworthy At $50 Crude? | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 12-02-2015

OPEC took a swing at U.S. shale and knocked down Canada. Threatened by surging production from North America, the Organization of Petroleum Exporting Countries has been pumping above its quota for 17 months as it seeks to take market share from higher-cost regions. The resulting 60 percent price crash is hitting Alberta harder than Texas.

OPEC menaced by U.S. shale hits Canada harder in price fight

Surging U.S. crude stockpiles that have filled storage tanks near capacity are widening the discount on immediate oil deliveries.   Spreads between monthly oil-futures contracts are often seen as a reliable gauge of market conditions, and a discount on the earliest months—known as contango—typically signals that supplies exceed demand. Contango isn’t "going away anytime soon," Societe Generale SA analysts said in a research note on Tuesday.

Crude storage tanks nearing their brim spur ‘super contango’

More liquefied natural gas (LNG) will be leaving the U.S. come the New Year, even though the market for the chilled gas bound for export markets is softening. As production from U.S. shale gas fields ramped up in recent years, including the monster, mile-deep Marcellus basin, which alone produces 113 billion cubic meters (bcm) a year, the same as Russia's exports to Europe through three pipelines, there seemed to be a grand opportunity to take advantage of the increased production by shipping gas overseas. Developers initiated large capital projects to build LNG export plants in the United States, including Sabine Pass, Cameron LNG, Freeport, Coos Bay, Lake Charles and North Slope, Alaska.

Undeterred By Global Glut, U.S. Pushes Ahead On LNG Exports | OilPrice.com

Production from Latin America's premier shale play, the Vaca Muerta, is expected to double by 2018, according to a new development study by Wood Mackenzie. Argentina's massive play continues to be the most prospective tight oil play outside of North America. While a marked ramp-up can be expected by 2020, the study highlights that oil and gas output in 2016 should be moderate with year-over-year production at 10%.

Vaca Muerta shale to double production by 2018, Wood Mac says




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

This difference demonstrates why oil is both "just another commodity" and a "geopolitical commodity." What kept oil prices up, even as the new U.S. shale oil production increased, was the roughly-commensurate loss of barrels owing to disruptions of one kind or another. In the failed state of Libya, oil production and exports largely stopped. At the same time, sanctions related to Iran's nuclear program took, at the peak, about 1.4 million barrels of Iranian exports off the market.

The party is over for oil: Dan Yergin - Yahoo Finance

The drilling rigs are gone from the hills surrounding this Pennsylvania town of 30,000. The hotels and bars are quieter too, no longer packed with the workers who flocked in their thousands to America's newest and biggest gas field. The drilling boom of the past seven years is over, even though thousands of existing wells in the Marcellus region still produce a fifth of U.S. natural gas supply. Now, exclusive data made available to Reuters points to a slump in drilling that could hit production next year, defying government and industry expectations of a further rise in output.

America's biggest gas field finally succumbs to downturn | Reuters

Spare a thought for anyone who bet on a recovery in liquefied natural gas prices after last year’s 45% plunge. LNG to northeast Asia, home to the world’s biggest consumers, plunged 27% this year, outpacing Brent’s 23% slump as of Wednesday. While analyst estimates compiled by Bloomberg show that crude will recover in 2016, prices for the super-chilled fuel will probably extend declines by as much as 23%, according to a survey by Bloomberg.

LNG falls faster than oil as U.S. fracing spurs glut growth

U.S. Sen. Lisa Murkowski (R – Alaska) has released a new report on the importance of the Strategic Petroleum Reserve (SPR) detailing the potential impacts of selling oil from the reserve to pay for unrelated legislative initiatives. The report, Depleting the Reserve: The Cumulative Impact of SPR Sales and Other Considerations, is the latest of Murkowski’s efforts to raise awareness about the strategic value of maintaining the energy stockpiles, and was a central part in her successful effort as chairman of the Senate Energy and Natural Resources Committee and a member of the joint Senate-House conference on the highway bill to reduce the amount of oil sold from the SPR down to $6.2 billion as a way to partially pay for the five-year highway reauthorization. Murkowski worked with leadership to reduce the amount of the SPR sales to protect the Department of Energy’s ability to pay for needed upgrades to SPR infrastructure.

Impact of selling off Strategic Petroleum Reserve detailed in new report