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RE: OPEC, for some quiet moments.. - admin - 09-22-2016

The two-year downturn in the oil and gas industry may be coming to a close. An annual survey released by Deloitte, shows approximately 59% of O&G professionals believe the recovery already has begun or will begin in 2017. While the current state of the market still leaves cost-containment initiatives a priority, executives nonetheless showed renewed confidence in an industry recovery. Those who responded pointed to expectations of rising prices, a return to increasing capital expenditures and headcount as drivers of their optimistic outlook.

Oil execs see 2017 as a year of recovery, Deloitte survey finds

Since November, when 195 countries signed the Paris climate change agreement, several energy writers, including myself, have concluded that the deal’s biggest winner would be natural gas.

What Is Stopping Global LNG Growth? | OilPrice.com

Petroleos de Venezuela is getting ready to start what it’s dubbed “one of the world’s largest drilling projects” in the Orinoco heavy crude belt with investment totaling $3.2 billion even as its president, Eulogio Del Pino, says the global oil market is oversupplied.

PDVSA set to start $3.2-billion drilling program

BP Plc would rather invest in Argentina’s shale oil fields than in Texas’ Permian basin, the U.S. drilling hot spot, CEO Bob Dudley said. BP is seeking to buy more assets in Argentina’s Vaca Muerta shale fields, which have "enormous potential," Dudley said in a Bloomberg Television interview Tuesday on the sidelines of the Argentina Business and Investment Forum in Buenos Aires. He said the government there has improved the investment appeal of the country by helping foreign companies cut through red tape.

BP seeking more investment opportunities in Argentina shale




RE: OPEC, for some quiet moments.. - admin - 09-23-2016

The biggest player in the Permian basin, America's most coveted oil field, thinks rig counts in the region are poised for explosive growth. In an interview with Bloomberg, Pioneer Natural Resources Co. CEO Scott Sheffield predicted that 100 oil rigs will be added in the area considered to be U.S. shale drillers' version of prime real estate over the next year. Bloomberg Intelligence Analysts Vincent Piazza and Daniel Krauser note that Pioneer has the highest gross production of any driller in the Spraberry and Wolfcamp formations in the Texan oil field. The shale revolution sparked a frenzied rise in U.S. crude production that eventually drove oil prices to their lowest level in more than a decade earlier this year. While prices have since recovered, they've failed to sustainably hold above $50/bbl—and any advances may continue to be capped if drillers boost activity in the productive Permian basin.

Top Permian oil producer says rig counts in the region are going to soar

Recent analysis and statistical research have shown that break-even prices for oil production in the major U.S. shale plays have fallen, on average, at least $30/bbl for WTI. Speaking to a recent monthly meeting of the National Oil-equipment Manufacturers and Delegates Society (NOMADS) in Houston, IHS Markit’s associate director for Plays and Basins, Reed Olmstead, said that the drop can be attributed to a combination of four factors.

Analyst touts industry’s cost reductions in U.S. shale plays

Now is the right time for OPEC to reach an agreement on oil output, and crude prices may fall if its members fail to take a decision when they meet next week in Algiers, Iraq’s governor to the producer group said. Conditions in the oil market are better than in April when members of the Organization of Petroleum Exporting Countries tried without success to strike a deal with other producers, including Russia, to stabilize markets, Falah Al-Amri said at an energy event in Fujairah in the United Arab Emirates. Countries including Iran have boosted output and reached their targets, and current oil prices are not good for producers, he said.

Now is the ‘right time’ for OPEC to reach oil-output deal, Iraq says

Argentina’s biggest oil company sees the government removing production subsidies by the end of 2017, a step that may help lure investment as President Mauricio Macri tries to sell his vision of a more competitive economy. The reforms, including talks with unions and contractors to help reduce costs, may attract some $5 billion to $10 billion in additional investments into the country’s oil and gas industry through the end of next year, YPF SA Chairman Miguel Angel Gutierrez said in an interview Wednesday at Bloomberg headquarters in New York. YPF has also had conversations with “middle-market" energy producers and equity firms as it seeks to pull in even more money, the chairman said.

YPF sees Argentina reforms drawing billions in shale investments




RE: OPEC, for some quiet moments.. - admin - 09-26-2016

Crude prices are selling off, aided by Saudi comments that a decision will not be forthcoming from next week's OPEC meeting in Algiers. Add to this news that the Federal Reserve is looking to restrict bank involvement in physical commodities...and dollar strength as the cherry on top...and oil is heading lower into the weekend.

Crude Crashes As Saudis Kill OPEC Meeting Before It Even Started | OilPrice.com

Crude oil production in the United States has decreased by more than 10 percent since the record high of 2015, from 9.6 million barrels per day (mmbpd) to less than 8.6 mmbpd. However, the drop in shale oil production has reached almost 20 percent. Moreover, if the increasing Permian Basin production were left out of the equation, the decrease in U.S. shale oil output would be about 33 percent! And this fall will deepen as the number of new wells is still not sufficient.

Is U.S. Shale Nearing Collapse? | OilPrice.com

In response, Rosneft has embarked on a surge in drilling and investment. The 2.8km-deep well that Mr Stefanishin is overseeing will be one of 1,500 drilled in 2016; in the first half of this year, Yuganskneftegaz’s drilling rate was 148 per cent higher than the same period two years ago. Rosneft’s new focus on its Soviet-era brownfield assets comes after the tumble in global oil prices and western sanctions forced it to temper its ambitions to develop new resources, most notably in the Arctic. But after years of under-investment in western Siberia, the effect of Rosneft’s shift on the oil markets could be significant.

Russia: Siberian spring - FT.com

French oil major Total SA on Thursday said it would further cut investment and costs on its operations to retain profitability as it continues to counter the oil-price collapse. Patrick Pouyanné, Total’s chief executive, Thursday told investors and analysts he will pursue the strategy that has kept the company in the black for most of the time since oil price collapsed in the second half of 2014: cut investment, lift operating efficiency and boost oil and gas output.

Total Cuts Investments, Costs Further to Lift Profitability - WSJ




RE: OPEC, for some quiet moments.. - Putncalls - 09-26-2016

OAS and QEP have a lot to gain if the 2nd article is correctSmile


RE: OPEC, for some quiet moments.. - admin - 09-27-2016

Austria (Bloomberg) -- OPEC members aren’t likely to reach a supply deal in Algiers next week, but an agreement to boost prices could be drawing closer after Saudi Arabia signaled for the first time in two years that it’s willing to cut production. Saudi Arabia and Iran, whose rivalry thwarted a deal with other major producers in April, didn’t reach agreement after two days of preparatory talks in Vienna, including the Saudi offer to pump less if Iran caps output at current levels, according to two people familiar with the negotiations.

OPEC deal elusive even after Saudis offer oil cuts to Iran

The oil industry may be ready to open its wallet after two years of slashing investments. Companies will spend 2.5% more on capital expenditure next year than they did this year, the first yearly growth in such spending since 2014, BMI Research said in a Sept. 22 report. Spending will increase by another 7% to 14% in 2018. It will remain well below the $724 billion spent in 2014, before the worst oil crash in a generation caused firms to cut back on drilling and exploration to conserve cash, the researcher said.

Oil firm spending seen up in 2017 for first time since 2014

Chakib Khelil, the former Algerian energy minister who steered OPEC the last time it decided to cut supply, said he’s confident the group will reach an accord next week as low oil prices force members to act. With most of the Organization of Petroleum Exporting Countries now producing near full capacity, it should be straightforward to promise no further increases, said Khelil, who was the group’s president in 2008 when it agreed a record output cut that reversed a collapse in crude prices.

Former OPEC president optimistic there will be deal in Algiers

Iraqi oil minister Jabbar Al-Luiebi said his country is willing to freeze production -- or even cut it -- if a consensus emerges at a meeting of major oil producers that starts Wednesday in Algiers. "If the freeze is going to have a positive impact on prices, then we agree with the freeze," Al-Luiebi told CNNMoney on Tuesday. "I am optimistic."

Iraq says it supports an oil production freeze - Sep. 27, 2016




RE: OPEC, for some quiet moments.. - admin - 09-28-2016

Global oil output will exceed demand until late 2017, the head of the International Energy Agency said before major producing nations gather for talks. "We don’t see the oil market re-balancing until late 2017" provided there’s no “major intervention,” IEA Executive Director Fatih Birol said Tuesday in an interview with Bloomberg Television in Algiers.

Oil supply will exceed demand until late 2017, IEA’s Birol warns

A deal by major oil exporters to freeze output may have to wait another couple of months. As producing countries gather in Algiers for talks on Wednesday, Saudi Arabia signaled for the first time it may accept the idea that Iran keep output at maximum levels but doesn’t expect an accord to be reached this week. A deal in November is possible, Saudi Oil Minister Khalid Al-Falih said in a briefing in the Algerian capital.

Saudis see oil-freeze deal possible in November, not this week

Slower growth in oil supply is helping the crude market to re-balance, and prices are set to increase over time, according to the head of the world’s biggest producer. As investments in new oil and natural gas capacity have been being canceled or deferred worldwide, supply is rising more slowly, especially production of U.S. shale oil, Saudi Arabian Oil Co. CEO Amin Nasser said Monday. Global demand is “on a steady, if moderate course,” he said in a speech at a conference in Dubai.

Saudi Aramco sees oil demand ‘steady’ as supply growth slows

After two years of pumping without limits, OPEC may finally be ready to do something to shrink the global glut. Just not quite yet. Saudi Arabia has offered to reduce production to January levels, according to Algeria’s Energy Minister. That would remove about half of the kingdom’s 1 MMbpd increase in output since it led the Organization of Petroleum Exporting Countries’ push to defend market share in 2014. While Iran was said to reject the Saudi offer, the chance of the group eventually taking action is growing, said consultant JBC Energy GmbH.

OPEC may finally be willing to curb oil glut, but not quite yet




RE: OPEC, for some quiet moments.. - admin - 09-29-2016

The concessions offered by Saudi Arabia in its bid to lock down a deal to limit the globe's oil supply show the world's largest crude exporter is getting pinched by its own policy, Again Capital founding partner John Kilduff said Wednesday. Sources told Reuters that OPEC hammered out a deal on Wednesday to reduce the cartel's production to 32.5 million barrels per day from around 33.24 million, with output levels for each member to be determined in November.

OPEC deal shows Saudi oil strategy has backfired, says John Kilduff

OPEC agreed to a preliminary deal that will cut production for the first time in eight years. Oil prices gained more than 6% as Saudi Arabia and Iran surprised traders who expected a continuation of the pump-at-will policy the group adopted in 2014. The group agreed to drop production to a range of 32.5 to 33 MMbpd, said Iran’s Oil Minister Bijan Namdar Zanganeh, following a meeting in Algiers. While some members of OPEC will have to cut output, Iran won’t have to freeze production, he said. Many of the details remain to be worked out and the group won’t decide on targets for each country until its next meeting at the end of November.

OPEC agrees outlines of first oil production cut in eight years

The world is watching Algiers for signs that oil producers will agree to freeze production, but many analysts see a devastating crude glut persisting no matter the outcome of the meeting. Oil prices climbed more than 3 percent on Monday ahead of a hotly anticipated statement from OPEC members and other producers led by Russia as to whether they will act to stabilize oil prices. The rally came despite skepticism that the producers would reach a deal as they meet at the International Energy Forum in the Algerian capital. Goldman Sachs said last week it is looking past the meeting and instead looking toward easing conflicts in Iraq, Libya and Nigeria that could return sidelined crude supply to markets and potentially push it back into glut territory.

Crude prices: Forget the OPEC oil freeze — worry about the thaw in output

Libya, struggling to revive its energy industry after five years of armed conflict, restarted production at an eastern oil field and was poised to export crude from the port of Zueitina for the first time since November. Germany’s Wintershall AG began pumping at Concession 96 in As Sarah field on Sept. 16, and is producing 35,000 bpd, a company official said Wednesday in an emailed response to questions. Wintershall restarted production at the request of Libya’s National Oil Corp. (NOC) and will send oil from the field to Zueitina for export, the official said.

Libya’s oil output nudges higher as Wintershall resumes production




RE: OPEC, for some quiet moments.. - admin - 10-02-2016

For years, debates in the OPEC conference room were dominated by clashes between top producer Saudi Arabia and arch-rival Iran. But as the two managed to find a rare compromise on Wednesday - with Riyadh softening its stance towards Tehran - a third OPEC superpower emerged. Iraq overtook Iran as the group's second-largest producer several years ago but kept its OPEC agenda fairly low-profile. On Wednesday, Baghdad finally made its presence felt. What it did, however, pleased neither Saudi Arabia nor Iran. Iraq's new oil minister Jabar Ali al-Luaibi told his Saudi and Iranian counterparts, Khalid al-Falih and Bijan Zanganeh, in a closed-door gathering in Algiers that "it was an OPEC meeting for all ministers", a source briefed on the talks said. Luaibi also said he didn't like the idea of re-establishing OPEC's output ceiling at 32.5 million barrels per day (bpd), according to sources in the Organization of the Petroleum Exporting Countries.

Iraq's OPEC revolt shows Saudi-Iran oil deal fragility | Reuters

Oil analysts, many of whom were surprised by OPEC’s decision on Wednesday to set out the framework of a deal to limit oil production, remain split about the impact of the producer group’s plan.

Oil Analysts Remain OPEC Skeptics as Pump-at-Will Policy Ditched - Bloomberg

The Pennsylvania Supreme Court has decided that Act 13, the state Legislature’s 2012 attempt to accommodate the shale gas industry is an unconstitutional “special law” that benefits specific groups or industries. The court, in a decision Wednesday, said Act 13’s provisions limiting notification of spills and leaks to public water suppliers but not to private well owners, and its so-called “physician gag order” restricting health care professionals from getting information about drilling chemicals that could harm their patients, violate the state Constitution’s prohibition against such special laws.

High court strikes down Pa. law on shale gas

That's because oil majors' urgent mission to slash costs includes standardizing the components used in drilling for oil–a development that has helped turn unprofitable wells into moneymakers, protected bottom lines, and allowed companies to keep pumping even in the face of crude prices that have more than halved over the past three years. “One might wonder how it is possible that with expenditures being cut dramatically in the upstream industry, output is still growing in many parts of the non-OPEC world while the costs of future projects are declining,” analysts at JBC Energy GmbH wrote earlier this year. “One of the key topics in this respect is industry standardization.”

How Actual Nuts and Bolts Are Bringing Down Oil Prices - Bloomberg




RE: OPEC, for some quiet moments.. - admin - 10-03-2016

OPEC finally blinked in its two-year price war with U.S. oil producers. Whether that translates into a financial victory for the American shale industry remains to be seen. Oil prices and the shares of U.S. drillers kept climbing on Thursday, a day after the Organization of Petroleum Exporting Countries promised its first production cut in eight years. The U.S. companies will need oil to hold above $50/bbl for months before they commit to more spending, according to analysts at firms including S&P Global Platts and Oppenheimer & Co.

OPEC ‘capitulation’ leaves challenges for U.S. shale drillers

Operators in the U.S. added seven oil-directed rigs this week, according to the latest data from Baker Hughes. The Houston-based service company reported 425 rigs seeking oil on Friday. The Permian basin, home to about half of the country’s active oil rigs, saw the addition of three more units.

Operators add seven oil rigs for fifth week of expansion

Russia is sticking with an assumption that oil will average $40/bbl in the next three years and won’t take a bait by revising its budget outlook after a preliminary agreement by OPEC on its first production cut in eight years, according to Finance Minister Anton Siluanov. While crude is trading near $50 after Wednesday’s announcement, heading for the first September increase since 2010, “we know prices are adjusted after such statements,” Siluanov told reporters in Russia’s Black Sea resort of Sochi. The price of Russia’s main export blend Urals used to calculate the country’s budget “was and remains” at $40/bbl, he said.

Russia questions OPEC breakthrough, keeps budget bet on $40 oil

Canadian oil-sands producers are running out of tricks to buoy their share prices as crude prices keep bumping up against a $50 ceiling. After two years of slashing costs to cope with plunging oil prices, shares began rebounding as the market appeared to hit a bottom earlier this year. Now, with the commodity recovery taking longer than expected—even with this week’s agreement by OPEC to limit supply—and the pace of reductions slowing, a correction could be in store for oil-sands shares.

Oil sands cost cutting ‘close to bone’ as crude recovery stalls




RE: OPEC, for some quiet moments.. - admin - 10-05-2016

BP and the Area 4 concession partners—Eni East Africa (EEA), Galp Energia, Kogas and Empresa Nactional de Hidrocarbonetos—have entered into a sales and purchase agreement for BP to purchase 100% of the LNG produced by the EEA-operated Coral South Floating LNG facility, which is expected to be installed offshore Mozambique. The agreement covers the purchase of LNG for over 20 years.

BP to buy all LNG from Eni’s proposed Coral South FLNG facility

Government says several multinational oil companies failed to properly declare $12.7 billion in crude exports to U.S.

Nigeria Claims Oil Majors Illegally Exported Crude - WSJ

The deal would limit the 14-member bloc’s output to between 32.5 million barrels-per-day and 33 million barrels per day, but for it to be implemented, members need to agree on who will be cutting, who will be maintaining, and who will be allowed to ramp up production – a paradigm that remains unmet as of today. Oil Price’s Nick Cunningham wrote last week about the weak and ambiguous nature of the deal currently on the OPEC table: the difficulty in actually agreeing on the details of the reduction, rising oil production within OPEC that could offset the already small cut, and the small size of the planned cut itself (200,000 to 700,000 barrels per day). Add to that the fact that the details will likely not be hashed out until November. And when we say November, we’re talking 30 November. And in the meantime, and very likely until that 30 November date, OPEC will continue to produce at record levels.

What Happens If The OPEC Deal Fails? | OilPrice.com

It’s not surprising that in recent years China has been taking advantage of the low crude prices to stockpile strategic and commercial oil reserves. It’s not surprising that official data - if and when authorities decide to make it available – understates said reserves. This lack of information has left oil traders, investors and the market guessing how much crude China has been storing, and how it could use the quantity to possibly swing oil demand growth estimates and oil prices.

Winners Of The Oil Bust: How Much Oil Did China Store? | OilPrice.com