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RE: OPEC, for some quiet moments.. - admin - 07-15-2016

Electric cars are often touted as the nail in the coffin for gasoline-powered vehicles. However, there’s another fuel revolution in the developing world, which is changing the economics of electric cars. Whether it’s CNG, LNG, autogas, or propane, gaseous-hydrocarbon fuels turn conventional cars into dual-fuel vehicles, and limit the uptake of electric cars in these economies.

The Fuel That May Halt The Electric Car Revolution | OilPrice.com

As oil’s upward climb runs out of momentum, more and more analysts expect the market’s next move will be back down toward $40/bbl. Brent crude prices almost doubled between January and June, signaling that markets were finally healing as falling U.S. output, rising demand and disruptions from Nigeria to Canada all helped eliminate a global production surplus. Now, as consumption falters and halted supplies return, analysts from BNP Paribas SA to JBC Energy GmbH warn prices may sink once more.

Faltering oil recovery prompts warnings of a relapse to $40

Whereas the UAE is chock-full of banks, Nigeria has remarkably few. Only 21 (one for every 8.5m people) soldier on, down from 89 in 2004. For this score of survivors, the naira’s depreciation posed some difficulties. According to Fitch Ratings, 45% of Nigerian banks’ loans are denominated in dollars (or other foreign currencies), whereas their capital is in naira. When the currency fell, it dragged down the value of their capital relative to their loans, bringing them closer to regulatory minimums. If the naira weakens much further, it may harm their creditworthiness. In other oil-exporting countries, a drop in the currency has caught banks in the opposite trap, raising the value of their liabilities relative to their assets. In both Azerbaijan and Kazakhstan, for example, deposits are more dollarised than loans, exposing banks to a troublesome currency mismatch. Every oil exporter is unhappy, each in its own way.

Lending at $47 a barrel | The Economist

Iran plans to double crude exports so long as the increase in shipments is absorbed by global markets, which it sees as stable for the rest of the year, according to a senior official at state-run National Iranian Oil Co. The country is exporting about 2 million barrels of its daily output of 3.8 million, said Mohsen Ghamsari, NIOC’s director of international affairs. It has regained about 80 percent of the market share it held before the U.S. and European Union tightened sanctions on its oil industry in 2012, he said. Iran plans to double crude exports.

Iran Plans to Double Crude Exports to Regain Market Share - Bloomberg




RE: OPEC, for some quiet moments.. - admin - 07-17-2016

The world’s biggest consumer of energy is producing less of it. China’s crude output dropped 4.6 percent to 101.59 million metric tons in the first six months of the year, the lowest for that period since 2012, according to data from the National Bureau of Statistics on Friday. Coal production fell 9.7 percent to 1.63 billion tons in the first half of the year. For June, crude tumbled 8.9 percent, coal fell 16.6 percent and natural gas slipped 0.5 percent. Ethylene output also decreased to the lowest in a year to 1.39 million tons.

China Oil, Coal Output Decline Signals More Imports to Come - Bloomberg

Three years after spending $15 billion on an ambitious bid to revitalize a troubled oil-sands project in a northern Canadian swampland, one of China’s largest state-controlled oil companies has run out of gas.

Chinese Energy Giant’s Big Bet on Oil Sands Backfires - WSJ

Gulf oil exporters must cut spending and narrow their budget shortfalls to keep their currencies pegged to the dollar, the International Monetary Fund said. While substantial foreign assets have allowed the six members of the Gulf Cooperation Council to fix the value of their currencies to the greenback, keeping the status quo comes at a price as lower crude prices strain public finances, the lender said in a report titled “Learning to Live with Cheaper Oil.” “When a country faces prolonged fiscal and external deficits, policy adjustment must come from fiscal consolidation measures,” the IMF said in the report authored by Martin Sommer, deputy chief of its regional studies division. Maintaining the currency pegs “will require sustained fiscal consolidation through direct expenditure cutbacks and non-oil revenue increases,” it said.

IMF Says Gulf States Must Cut Deficits to Keep Currency Pegs - Bloomberg

In Australia, where more than $180 billion has been invested in new energy production infrastructure, LNG producers reported a banner month, as LNG exports rose by 500,000 tons to a total of 3.6 million tons during June 2016, an increase of 18.5 percent from May. After a trying few months, and despite political pressure on the country’s energy sector, producers were able to increase shipments to Japan (Australia’s major energy customer), as well as South Korea and China.

Major LNG Projects On the Rocks As Competition Escalates | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 07-18-2016

If you're looking for clues as to what the next key catalyst for oil could be, you might want to pay attention to one country in particular. "We think India is roaring right now and will be a key driver of demand," Helima Croft, managing director and Global Head of Commodity Strategy at RBC Capital Markets told CNBC's "Futures Now" last week.

India will be a 'key driver' of oil demand: RBC

U.S. oil explorers are yet to fully reap all the rewards of horizontal drilling techniques that helped trigger the shale boom, research firm IHS Markit Energy said. From Texas to North Dakota, the method still stands to boost production from old, conventional wells where low permeability has restricted extraction to a fraction of their potential, an IHS Markit study showed. Of the 46,000 horizontal wells surveyed, only 10% were in tight conventional plays being drilled anew for more crude, signaling there’s considerable untapped potential across the country, IHS Markit said.

Shale revolution extended to old wells seen unleashing more oil

Oil rose as Exxon Mobil Corp. declared force majeure on shipments of Nigeria’s biggest crude export grade. Futures rose as much as 0.5% in New York, reversing an earlier decline of 1.4%. Force majeure was declared on Qua Iboe crude after “a system anomaly observed during a routine check of its loading facility,” Exxon said in an emailed statement Friday. This follows a similar disruption in May and June. The Niger Delta Avengers, a militant group that has targeted oil installations in Nigeria this year, claimed earlier this week that they attacked the Qua Iboe crude pipeline.

Oil rises as Exxon declares force majeure on Nigeria exports

While South Korean and Japanese LNG demand has begun to trail off, Chinese demand is growing. Of the 44 cargoes sent from Australian terminals in June, 15 were bound for China, while over half were destined for Japan. Chinese demand is expected to grow by 15 percent between 2016 and 2021, though the country is investing heavily in domestic production. In 2015 China supplied 69 percent of its own domestic natural gas and the bulk of its reserves are located in the remote west and north of the country, while the major centers of LNG demand remain in the urbanized east. Eastern China currently has LNG terminals sufficient for receiving 17.5 million tons per year.

Major LNG Projects On the Rocks As Competition Escalates | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 07-19-2016

Oil producers aren’t betting on the rally. After surviving two years of low prices, they’re gearing up for a third by buying protection against a renewed downturn. Laredo Petroleum Inc. said July 14 that it hedged more than 2 MMbbl of 2017 output earlier this month. Drillers have increased bets on falling prices by 29% this year.  Crude has declined more than 10% since hitting a 2016 peak in early June, stoking fears of another second-half slump. It was July that broke the back of last year’s bull-run, with oil plummeting 21%. The prospect of a repeat has drillers doing everything they can to raise cash, from selling stocks and bonds to adding fresh hedges.

Oil producers prepare for second-half slump as rally sputters

Being outbid by Exxon Mobil Corp. for prized Papua New Guinea natural gas assets might actually be a good thing for Oil Search Ltd. Shares for the Sydney-based company settled at the highest level since March 10 after it announced that Exxon topped its bid to buy InterOil Corp., the Papua New Guinea-focused gas explorer. Exxon is a partner with Oil Search in the country’s only LNG terminal, PNG LNG. Oil Search is also a partner, along with InterOil and Total SA, in another proposed gas export project, Papua LNG.

Even the losers may win as Exxon outbids partner for PNG gas

Sempra Energy said Monday that Cameron LNG has received authorization from the U.S. Department of Energy (DOE) to export an additional 1.41 Bcfd from its proposed Louisiana liquefaction expansion project to countries that do not have a free-trade agreement with the U.S. With this order, Cameron LNG's export capacity will be 24.92 mtpa or 3.53 Bcfd.

Cameron LNG liquefaction expansion project receives non-FTA export authorization

Turmoil in the oil market gave Fred Jones his start in the energy business four decades ago. Now he’ll be hoping turmoil in the gas market doesn’t sour his new venture. Jones, who in 1974 helped found the trading firm that became Glencore Plc, is now CEO of Delfin LNG LLC, which has applied to build the first modern floating natural gas liquefaction plant in the U.S. He’s doing so at a time when new export projects are primed to flood the market, slashing spot prices and making buyers less interested in signing long-term contracts that underpin ventures like his. "History suggests that when the tide turns in a commodity market, it turns much harder and faster than everyone expects," Jones said in an interview in Singapore. "We are already seeing the seeds of this rebalance sown with potential supply projects abandoning their development plans and new demand centers being created amidst today’s low-price environment."

Energy veteran betting on LNG bounce sees future floating at sea




RE: OPEC, for some quiet moments.. - admin - 07-20-2016

Although the crude oil price decline since 2014 has led to significant reductions in operating cash flow for U.S. oil companies, their immediate financial situations are improving. As oil companies' spending falls and crude oil prices increase, the need for oil companies to find external sources of funding may decline, which could reduce financial strain in the coming quarters.

U.S. oil companies closer to balancing capital investment with operating cash flow - Today in Energy - U.S. Energy Information Administration (EIA)

This has not been the summer many oil traders had expected after last year's bumper profits. Banking on more of the same, the world's refineries have churned out more diesel, gasoline and jet fuel than eager drivers and holiday makers have been able to consume even over the summer travel season. Fuel inventories in the United States, Europe and Asia are brimming despite the height of peak summer driving. European traders are now moving to store diesel on tankers at sea as on shore storage tests its limits yet again.

Dark cloud of offshore fuel storage rising over oil price | Reuters

Oil producers aren’t betting on the rally. After surviving two years of low prices, they’re gearing up for a third by buying protection against a renewed downturn. Laredo Petroleum Inc. said July 14 that it hedged more than 2 million barrels of 2017 output earlier this month. Drillers have increased bets on falling prices by 29 percent this year.

Oil Producers Prepare for Second-Half Slump as Rally Sputters - Bloomberg

If Australia hopes to tap growing Chinese demand, it appears well-positioned to do so. Setbacks continue to plague key Australian LNG projects, however. In early July Chevron’s massive Gorgon LNG project, one of the world’s most expensive energy operations, announced another shutdown due a gas leak. As of mid-July Gorgon remained closed, having delivered only a two shipments since it’s officially opened early in 2016, a single shipment in February and one on 3 July. More bad news comes from Standard & Poor’s which predicts immense pressure on Pacific oil and gas due to low profitability and the likelihood of low prices for the rest of 2016. Other LNG ventures have been scrapped, including Shell’s planned facility in British Columbia, a joint venture with Asian partners. The facility, run by LNG Canada, would have been able to process 6 million tons per year, but fears over low prices and anemic demand, as well as Shell’s general decision to retrench and pull back from excessive investments, convinced the company to indefinitely postpone the project.

Major LNG Projects On the Rocks As Competition Escalates | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 07-21-2016

The United States, where companies like Cheniere have worked hard to develop LNG export capacities, face the challenges of high competition in the Pacific. Citibank analysts reported on 13 July that U.S. LNG is too expensive to compete in the Pacific, even with the newly-upgraded Panama Canal allowing for larger shipments. The canal expansion, completed on 26 June, was expected to be a game-changer, as before only 6 percent of the world’s LNG fleet could pass through the locks, whereas now only the largest class of ship is incapable of passing through. But the conditions of the Pacific market are such that, without an increase in price, U.S. LNG simply can’t compete.

Major LNG Projects On the Rocks As Competition Escalates | OilPrice.com

Oil rose after a government report showed that U.S. crude stockpiles fell a ninth week, marking the longest stretch of declines on record. Crude inventories fell 2.34 MMbbl last week, according to the Energy Information Administration. Supplies remain at the highest seasonal level in at least a decade. Refineries bolstered operating rates to the highest level this year. Prior to the report, prices fell to the lowest level in more than two months as the Bloomberg Dollar Spot Index climbed to a seven-week high.

Oil rises after EIA shows U.S. crude supplies falling for record ninth week

Saudi Aramco President and CEO Amin H. Nasser presided over a signing ceremony of the Fadhili gas project, marking a new milestone in the company’s drive to expand gas production and supply to meet growing domestic demand for energy. The new Saudi Aramco mega project will help boost production and supply with clean-burning natural gas, lessening dependence on oil for power generation.

Saudi Aramco CEO signs off on $13-billion gas project

Russian oil output will exceed the former Soviet record set almost 30 years ago by the end of 2018 as low-cost fields allow producers to defy the slump in prices, according to Goldman Sachs Group. Production will climb by 590,000 bpd over the next three years to 11.65 MMbpd, Goldman Sachs analysts wrote in research note dated Tuesday after visiting some of Russia’s major oil companies last week. That would exceed the Soviet record of 11.42 MMbpd in 1987, according to BP Plc data.

Goldman sees Russian oil output topping Soviet record by 2018




RE: OPEC, for some quiet moments.. - admin - 07-23-2016

Oil prices settled lower on Friday, losing 4 percent on the week, after the fourth weekly rise in the U.S. oil rig count added to worries about a global crude glut. Crude futures were already down, with Brent at two-month lows, on fears of more Iraqi supply before a report by energy services firm Baker Hughes showed U.S. oil drillers added 14 rigs this week to bring the total rig count to 371.

Oil dives 4 percent on the week on U.S. rigs rise, glut threat | Reuters

Of the more than $370 billion in global capital expenditure cut by upstream developers across 2016 and 2017, $150 billion was slashed in the U.S. Lower 48 alone—more than three times any other single country, according Wood Mackenzie. The swiftness and scale of the cuts by U.S. operators in the Lower 48 is largely due to shorter lead times and the less capital-intensive nature of the U.S. unconventional space.

$150 billion slashed in U.S. Lower 48 alone: Wood Mac

For oil companies, the second quarter might be as good as it gets. Shares gained more than in any other industry, thanks to crude rising from a 12-year low. Profits were the best in at least three quarters for majors including Royal Dutch Shell Plc, Chevron Corp. and BP Plc, helped by cost cuts, analysts say. The rest of the year might not be as rosy as supply holds near record levels. The combined market value of the world’s oil companies shrank by $2 trillion in the past two years following crude’s collapse. While analysts agree the worst of the oversupply is over, BNP Paribas SA and JBC Energy GmbH are among those forecasting a slide back to $40 a barrel as output rebounds in Canada, Iran, Nigeria and the U.S., hurting producers whose investment cuts have put future growth in doubt.

Next Week Is as Good as It Gets for Big Oil - Bloomberg

Primary energy consumption fell slightly in 2015 as a decline in coal use exceeded increases in natural gas, petroleum, and renewables use. In most cases, changes between 2014 and 2015 reflect longer-term trends in energy use. In 2015, natural gas consumption increased more than any other energy source, accounting for 29% of total primary energy consumption. As domestic natural gas production continues to reach record levels, natural gas prices have remained low. Low natural gas prices have led to increased use of natural gas-fired generators in the electric power sector.

Changing U.S. energy mix reflects growing use of natural gas, petroleum, and renewables - Today in Energy - U.S. Energy Information Administration (EIA)




RE: OPEC, for some quiet moments.. - admin - 07-25-2016

Kosmos Energy’s Ahmeyim-2 appraisal well has successfully delineated the Ahmeyim and Guembeul gas discoveries offshore Mauritania and Senegal. Located in Mauritanian waters, approximately 5 km northwest, and 200 m downdip of the basin-opening Tortue-1 discovery well in approximately 2,800 m of water, Ahmeyim-2 was drilled to a total depth of 5,200 m.

Kosmos to pursue LNG project as it ups resource estimate offshore Mauritania

U.S. oil producers continue to revive drilling in the shale patch, adding rigs for the fourth consecutive week in the longest streak of increases since August. Rigs targeting crude in the U.S. rose by 14 to 371, after 27 were added since the start of the month, Baker Hughes Inc. said on its website Friday.

Operators add 14 oil rigs in longest streak since August

For almost two years, the spotlight in the global oil market has been on a surplus of crude. The latest stumble in prices has shown that the glut extends further. As the U.S. shale boom sputters and the nation’s crude inventories post the longest pullback on record, there are signs that, although stockpiles remain abundant, the excess is clearing. Oil’s retreat to a two-month low this week demonstrates that surpluses in other parts of the market, most notably refined fuels like gasoline, are holding back any lasting recovery.

Oil glut deeper than just crude exposed as recovery stumbles

Total has signed a binding Heads of Agreement with Chugoku Electric for the direct supply of LNG for a period of 17 years starting from 2019. Under the agreement, Total will supply Chugoku Electric with up to 0.4 million tons of LNG per year from the company’s global portfolio. “This supply agreement with one of Japan’s major regional electric utilities is an important milestone for Total in the country where the Group has been a reliable partner in supplying LNG for almost 40 years,” Laurent Vivier, president of gas at Total, said. “Strengthening our presence in Japan, the world’s largest LNG importer, through long-term cooperation with leading LNG buyers, such as Chugoku Electric, is a key component of Total’s strategy.”

Total signs long-term LNG agreement with Japan’s Chugoku Electric




RE: OPEC, for some quiet moments.. - ArtM72 - 07-26-2016

'admin' pid='74760' datel Wrote:

Kosmos Energy’s Ahmeyim-2 appraisal well has successfully delineated the Ahmeyim and Guembeul gas discoveries offshore Mauritania and Senegal. Located in Mauritanian waters, approximately 5 km northwest, and 200 m downdip of the basin-opening Tortue-1 discovery well in approximately 2,800 m of water, Ahmeyim-2 was drilled to a total depth of 5,200 m.

Kosmos to pursue LNG project as it ups resource estimate offshore Mauritania

So why can these guys delineat a 100 million year old 15-20 TCF field with three wells and IOC  still needs a ninth? OK.  Depositional characteristics were different, but both contain volcanics and carbonates. But really? I'd love to have a much more extensive background to know just how many wells it typically takes to nail down a field like E/A.




RE: OPEC, for some quiet moments.. - admin - 07-26-2016

Golar LNG Limited and Schlumberger have announced the creation of OneLNG, a joint venture to rapidly develop low-cost gas reserves to LNG. The combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, with Golar’s low-cost FLNG solution, will offer gas resource owners a faster and lower cost development thereby increasing the net present value of the resources.

Golar, Schlumberger target stranded gas with new joint venture

Gear up for a fall in oil prices. The global oil market is "severely oversupplied" with gasoline—with stocks at a five-year high—serving as a blow to crude prices from next month, reckon Morgan Stanley analysts led by Adam Longson.

Refinery-driven oil price correction is upon us, Morgan Stanley says

State-owned oil marketing companies have since May distributed 1.8 million liquefied petroleum gas connections under a new program targeting the extremely poor, according to official estimates. The government’s aim overall is to increase penetration to 80 percent, adding 100 million connections, over three years, according to Y.K. Gupta, an executive director at Indian Oil Corp., India’s largest fuel retailer. The renewed focus on safer cooking options will drive LPG use up from records as the government tries to reduce the more than 900,000 premature deaths the Institute for Health Metrics and Evaluation attributed to household air pollution in 2013. It will also make India more import dependent and strain infrastructure... Indian Oil’s Gupta estimates the nation will build up to 7.5 million tons of new LPG import terminals over five years, including a 2-million-ton terminal at Paradip and two at Haldia on the east coast. The Kandala terminal on the west coast has been recommissioned while a number of smaller ones are being revived, he said. The three state oil marketing companies are also adding 10,000 new distributorships and 15 new bottling plants.

Saving 900,000 Lives Drives India’s Spending on Cleaner Fuel - Bloomberg

Another challenge to future LNG growth comes from Japan, where regulators are considering altering existing rules and allowing LNG shipments to be re-sold, potentially under-cutting producers and putting downward pressure on prices. Such a move would disrupt existing contractual relations and potentially sever the link between LNG and crude prices. Existing restrictions on re-sale essentially force importers to consume whatever LNG they import; dropping these restrictions would allow importers to essentially become LNG merchants themselves, re-selling unwanted or unused LNG to other customers.

Major LNG Projects On the Rocks As Competition Escalates | OilPrice.com