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RE: OPEC, for some quiet moments.. - admin - 10-18-2016

U.S. crude oil storage is filling up with unaccounted-for oil. There is a lot more oil in storage than the amount that can be accounted for by domestic production and imports. That’s a big problem since oil prices move up or down based on the U.S. crude oil storage report. Oil stocks in inventory represent surplus supply. Increasing or decreasing inventory levels generally push prices lower or higher because they indicate trends toward longer term over-supply or under-supply.

The Billion Barrel Oil Swindle: 80% Of U.S. Oil Reserves Are Unaccounted-For | OilPrice.com

When the bosses of the world’s biggest oil companies gather in London on Tuesday, they might have the urge to track down the Saudi energy minister and shake him by the hand. After two years pursuing a Saudi-led strategy to pump without limits, pummeling industry earnings, OPEC has unexpectedly come to the aid of the oil majors. Last month, it surprised the market by deciding to cut production and put a floor under volatile crude prices.

OPEC’s reversal is gift to oil majors after two years of ‘hell’

Oil declined as OPEC members added supply and U.S. producers increased drilling, threatening to compound a global surplus. Futures fell by as much as 1.8 percent. Libyan output expanded to 560,000 bopd, according to the National Oil Corp., up from 540,000 last week. Iran repeated plans to boost production to 4 MMbopd. Nigeria aims to raise output by 400,000 bopd to 2.2 MMbopd, Oil Minister Emmanuel Ibe Kachikwu said in New Delhi. Rigs targeting crude in the U.S. rose for a seventh week to the highest since February, Baker Hughes Inc. said.

Oil declines as OPEC members boost output, U.S. rig count gains

Iran, OPEC’s third-biggest member, plans to boost its oil output to a level of 4 MMbpd this year, potentially complicating the producer group’s plan to cut supply in an effort to prop up prices. The Persian Gulf nation will raise production from 3.89 MMbpd currently, Ali Kardor, managing director of National Iranian Oil Co., said Monday at a conference in Tehran. Amir Hossein Zamaninia, deputy oil minister for international affairs, told reporters the country pumped 4.085 MMbpd before sanctions were imposed on its economy. “We need to reach pre-sanctions production levels,” he said.

Iran to boost oil output as OPEC plans cut




RE: OPEC, for some quiet moments.. - admin - 10-19-2016

Oil production in the Permian basin keeps growing as other U.S. shale plays falter. The region spanning West Texas and New Mexico will produce more than 2 MMbopd next month for the first time in data going back to 2007, the Energy Information Administration said Monday. It’s the only area where output is forecast to grow, as production across the nation’s major oil fields is expected to drop 0.7% in November to 4.43 MMbpd.

Permian to pump oil at record rate as other plays dwindle

The global oil industry needs an astronomic investment injection over the next two decades or risk jeopardizing it’s ability to meet future oil demand, the Organization of the Petroleum Exporting Countries warned on Tuesday. Speaking at the “Oil & Money” conference in London, the cartel’s Secretary-General Mohammed Barkindo said the recent oil crash has already taken a serious toll on investments, particularly the exploration-and-production sector, and poses a “serious threat” to both producers and consumers.

Oil industry needs $10 trillion to meet coming demand, says OPEC’s Barkindo - MarketWatch

Officials from Saudi Arabia and Kuwait, key protagonists in shaping OPEC policy, said oil at $50 to $60 a barrel would ensure adequate global supply, setting out a potential price band for the producer club before its meeting in Vienna next month. “A $50, $60 oil price -- absent a supply accident -- is sufficient to develop the low-cost resources to provide increases that will be necessary over the next three to four years,” Andrew Gould, board director at state-owned giant  Saudi Arabian Oil Co., said Tuesday in London. His comments, at the annual Oil & Money conference in London, suggest Riyadh sees relatively little upside to prices in the short term. While benchmark Brent crude is up about 13% since OPEC reached a deal Sept. 28 to manage supply, it’s still trading at half its level of mid-2014, at around $52 a barrel.

Saudi Arabia says oil at $50-$60 ensures adequate global supply

The term “oil curse” — coined to describe petro-rich developing countries where the “black gold” came with the heavy price of economic and political instability — is now being adapted for use in the U.S., where “petrostates” and cities are seeing shrinking tax revenues, budget deficits, negative credit ratings, rising unemployment and even outright recession as oil prices have fallen. Alaska, North Dakota, Wyoming, New Mexico, Louisiana, Oklahoma, and Texas, which enjoyed the feast of the shale revolution, are now threatened with famine. How they weather the storm, analysts now say, could largely determine their fiscal and economic fortunes for the next decade.

The U.S. has its own ‘oil curse’ - MarketWatch




RE: OPEC, for some quiet moments.. - admin - 10-20-2016

The world should get used to oil prices between $50 and $60/bbl as falling costs in America’s shale fields counteract OPEC’s renewed commitment to supply management. That’s the consensus among executives, traders and officials gathered at the annual Oil and Money Conference in London. A prolonged period of crude trading in that range would signal that while the worst has passed for the global industry, there will be more financial pain ahead for oil-exporting countries and subdued profits at the largest energy companies.

Oil seen stuck in $50 to $60 range as shale offsets OPEC action

The United States is set to double the volume of shale natural gas it’s sending abroad. Cheniere Energy, which became the nation’s first and only exporter of shale gas in February, was cleared by U.S. regulators on Wednesday to double shipments from its landmark terminal in Louisiana. Its second plant at the Sabine Pass site can now fill tankers with LNG, the Federal Energy Regulatory Commission said in a notice.

U.S. set to double the shale gas it sends overseas

The world’s largest publicly listed oil company says ample production from U.S. shale regions will keep prices subdued for years to come, disagreeing with others in the industry who have warned about a looming shortage. Rex Tillerson, chief executive officer at Exxon Mobil, presented an upbeat view of how technology will allow companies to pump more, preventing a price “blow out” in the future.

Exxon Mobil CEO doesn’t see supply shortage pushing up oil prices

Crude at $60/bbl would probably trigger a strong increase in North American oil output, the head of the International Energy Agency said, amid signs that OPEC members and Russia may be edging toward an agreement to limit production.

U.S. shale output seen surging if crude reaches $60




RE: OPEC, for some quiet moments.. - admin - 10-21-2016

When the Organization of Petroleum Exporting Countries started its price war, the U.S. shale boom looked doomed. Two years and one OPEC policy u-turn later, executives at the annual Oil & Money conference in London painted an upbeat outlook for shale, with giants like Exxon Mobil Corp. and ConocoPhillips saying the industry hasn’t just survived the bust, but will continue to have a global influence.

OPEC price war offers meager rewards as U.S. shale survives

Russia’s largest oil company said the nation is capable of a substantial increase in production, less than two weeks after President Vladimir Putin pledged his support for international efforts to limit output. “In the future, Russia can significantly increase oil production,” Rosneft PJSC CEO Igor Sechin said Thursday. The country has capacity to add as much as 200 million metric tons a year, or 4 MMbpd, if there’s demand and technological and economic conditions allow, he said.

Russian oil capable of ‘significant’ output growth, Rosneft CEO says

Nigeria cut the price of every type of crude it sells in an effort to regain its share of the global oil market share at a time when there’s a “huge” glut of cargoes. Nigeria National Petroleum Corp. (NNPC) lowered by at least $1/bbl its official selling prices, or OSPs, for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists. Qua Iboe, Nigeria’s largest export crude under normal circumstances, was reduced by the most since 2014.

Nigeria cuts oil prices, sees ‘huge cargo overhang’ in market

U.S. natural gas production levels in the lower 48 states declined by nearly 1.2% in September as compared to August levels, according to analysis from IHS Markit. September’s decline drops year-to-date production levels 1% compared to the same period in 2015. Overall, lower 48 U.S. dry gas production averaged 71.8 Bcfd, IHS Markit said, which represents a 0.9 Bcfd (1.2%) decrease from production levels in August.

U.S. gas production gives back August gains, IHS Markit says




RE: OPEC, for some quiet moments.. - admin - 10-24-2016

The era of the monster frac has arrived in North America, and Chesapeake Energy Corp. is singing its praises. Chesapeake said Thursday at an analyst conference that it set a new record for fracing by pumping more than 25,000 tons of sand down one Louisiana natural gas well, a process the shale driller christened "propageddon.” The super-sized dose of sand is able to prop open bigger and more numerous cracks in the rock for oil and gas to flow. Output from the well increased 70% over traditional fracing techniques, Jason Pigott, V.P. of operations, said during a presentation.

Chesapeake declares ‘propageddon’ with record frac job

Listen to Saudi Arabia and hear the oil market is rebalancing. Look at the screen, and Brent is indeed holding above $50/bbl. But dig deeper into the world of physical oil, and bearish signals abound, at least in the European market that helps dictate global prices. The price difference between Brent crude for delivery in two months and three months—a yardstick telling traders how well supplied the market is—widened to minus 69 cents on Thursday, the biggest discount since February. Back then, the headline price for the grade was barely above $35/bbl.

Oil glut grows as Saudi Arabia says worst is over

OPEC’s power to help lift oil prices by curbing output will be tested by the ability of shale-oil producers and other unconventional suppliers to ramp up production, the World Bank said. Crude prices have surged more than 7% since Sept. 28, when the Organization of Petroleum Exporting Countries agreed to limit production for the first time in eight years. The group includes 14 major oil producers, from Saudi Arabia to Iran and Nigeria. A global supply glut has caused oil prices to slump over the past two years.

OPEC deal unlikely to lift oil prices for long, World Bank says

Santos, the Australian oil and gas company, reported an 11% rise in third-quarter sales due to a boost in production. Revenue rose to $650 million from $585 million a year ago, Adelaide-based Santos said in a statement Friday. The company switched to reporting in U.S. dollars at its interim results in August. Production increased to 15.5 MMboe from 14.5 MMboe in the corresponding period of 2015.

Santos quarterly sales rise 11% on production boost, LNG volumes




RE: OPEC, for some quiet moments.. - admin - 10-26-2016

Since pushing above $50 per barrel, crude has taken a bit of a breather. Nevertheless, at least one chartist thinks oil is heading toward fresh highs. Master technical analyst Louise Yamada says two charts show that crude, still largely trapped in a long-term bear market for more than a year, is targeting new levels around $70.

Oil is testing $70, according to the charts

Iraq threw an obstacle in OPEC’s path toward a final deal to stabilize oil markets when it balked at joining efforts to trim output to prop up crude prices. The group’s second-largest producer should be exempted from cutting production because it’s embroiled in a war with Islamic militants, Oil Minister Jabber Al-Luaibi said Sunday at a news conference in Baghdad. Iraq currently produces more than the 4.7 MMbopd it pumped in September, and output could rise still higher as the government urges international companies to boost production at its fields, he said. The minister disputed Organization of Petroleum Exporting Countries figures that peg Iraqi output at less than 4.2 MMbopd.

Iraq balks at joining OPEC cuts, making output deal harder

Venezuelan President Nicolas Maduro wants to invite the U.S. to OPEC’s next meeting, saying the world’s biggest crude producer should be in on talks to stabilize global crude prices. Maduro, whose country holds the globe’s biggest oil reserves, said on Venezuelan state television Friday that he’s pushing for an “alliance" of OPEC and non-OPEC members, including the U.S. and “the most important oil companies in the world."

Give U.S. a seat at OPEC output meeting, Venezuela says

As Russia gets ready for talks on cooperation with OPEC on Monday, it’s using the playbooks of Iran, Iraq and Venezuela to gain leverage. Just days before Energy Minister Alexander Novak heads to Vienna for discussions that could include output curbs, Russian officials emphasized the nation’s ability to keep increasing record output to even loftier heights. They were echoing several other OPEC member that claim the group is underestimating their own production—a strategy that could secure them advantageous terms in any supply deal.

Russia’s rising oil-output forecasts give leverage in OPEC talks




RE: OPEC, for some quiet moments.. - admin - 10-26-2016

OPEC Secretary-General Mohammed Barkindo said the 14-nation group is facing its toughest challenge as members debate oil-production cuts needed to balance the market. “OPEC has gone through good times and conditions for more than half a century and hard ones too, and the current stage is the hardest one,” Barkindo said during a visit to Baghdad in remarks distributed by Iraq’s Oil Ministry. OPEC is working hard on a solution to stabilize the market, he said after meeting Oil Minister Jabbar Al-Luaibi for talks.

OPEC is at ‘hardest’ stage in its history, secretary-general says

Distant wastewater disposal wells likely induced the third largest earthquake in recent Oklahoma record, the Feb. 13, 2016, magnitude 5.1 event roughly 32 km northwest of Fairview, Okla. These findings from the U.S. Geological Survey are available in the online edition of Geophysical Research Letters.

Wastewater disposal likely induced magnitude 5.1 Oklahoma quake: USGS

The first phase of BP Oman’s Khazzan natural gas project is 80% complete and on track to deliver first gas near the end of 2017, the company said in a statement. Situated on a previously undeveloped desert site 350 km south of Muscat, work on the Khazzan tight gas project'>project began in 2014, and the completed development will eventually contribute roughly a third of Oman’s natural gas supply.

First phase of BP’s massive gas project in Oman nears completion

Oil companies continue buying acreage in West Texas’s prolific Permian Basin. This time, it was Denver’s SM Energy, announcing Tuesday it was picking up 35,700 acres in Howard and Martin counties, north and east of Midland, from private-equity backed and Houston-based QStar for $1.6 billion in cash and stock. The deal included 2,400 barrels per day of existing oil and gas production and works out to at least $42,000 per undeveloped acre, analysts said, stacking the purchase up among top prices this year.

Oil companies keep paying for Permian land; ‘High-water numbers,’ analyst says | Fuel Fix




RE: OPEC, for some quiet moments.. - admin - 10-27-2016

The world’s biggest oil companies, supported during crude’s collapse by a buoyant refining business, have lost that buffer as brimming fuel stockpiles swamp demand. Profits from turning oil into gasoline and diesel contracted 42% last quarter from a year earlier to an average $11.60/bbl, the weakest for the time of year since 2010, industry data from BP show. The impact of that will be apparent as earnings for the period roll in over the coming weeks.

Big Oil braces for profit pain as refining safety net slips

Oil prices have surged 16% in a month, leading to speculation there might be a sustained rally for the most widely traded commodity. That, of course, would help shares of U.S. oil-related companies, which have made efforts to become more efficient when energy prices starting tumbling in the summer of 2014. So we have put together a list of the most highly rated oil-related stocks for investors.

Wall Street’s 15 favorite energy stocks as oil prices rebound - MarketWatch

Saudi Arabia faces the prospect of much deeper—and financially painful—oil production cuts after Iraq joined the queue of group members seeking immunity from the deal hatched in Algiers. In addition to Iraq, the second-biggest exporter in the group, Iran has already sought to exclude itself. Output is also recovering from fields in Nigeria and Libya, two more countries that were exempted from the Algiers deal because violence has wrought havoc in their oil industries. Taken together, more than a third of OPEC’s production now stands outside the plan.

Saudi Arabia faces deeper cuts as Iraq opts out of OPEC deal

The trading arms of Royal Dutch Shell and BP enjoyed their best year ever in 2015, helping push the combined gross margins of oil merchants to a six-year high, according to a closely watched report. Oil traders last year “stormed ahead, thanks to low, volatile spot prices that created cash-and-carry opportunities,” consultancy Oliver Wyman said in its annual review of the commodities-trading industry published Wednesday.

BP, Shell help lift oil-trading profitability to 6-year high




RE: OPEC, for some quiet moments.. - admin - 10-28-2016

Exxon Mobil has reported a significant discovery with a potential recoverable resource of between 500 MMbbl and 1 Bbbl of oil on Owowo field, offshore Nigeria. The Owowo-3 well, which was spud on Sept. 23, encountered about 460 ft of oil-bearing sandstone reservoir. Owowo-3 extends the resource discovered by the Owowo-2 well, which encountered about 515 ft of oil-bearing sandstone reservoir.

Exxon Mobil in billion barrel discovery offshore Nigeria

Oil rose from a three-week low following a report that Gulf nations may be willing to cut output as OPEC members weigh a deal to ease a supply glut. Prices climbed as much as 1.5% in New York. Reuters reported Saudi Arabia and its Gulf OPEC allies are willing to cut 4% from their peak oil output, citing sources familiar with the matter. OPEC Secretary-General Mohammed Barkindo urged members to show “maximum flexibility” to agree on output cuts, after saying Tuesday the group is facing its “hardest” challenge.

Oil rises from three-week low on report Gulf nations may cut output

Obama Administration officials and former leaders of U.S. Armed Forces expressed support for Arctic oil and gas development at an Atlantic Council event on Geopolitics, Security, and Energy in the Arctic, sponsored by the Arctic Energy Center, yesterday afternoon.

Obama Admin officials express support for Arctic oil and gas development

Climate change could spark the world’s next financial crisis, according to Paul Fisher, who retired this year as deputy head of the Bank of England body which supervises the country’s banks. “It is potentially a systemic risk,” Fisher said Monday in an interview in Sydney. A sudden repricing of assets as a result of climate change “could be the trigger for the next financial crisis,” he added.

Climate Change May Trigger Next Financial Crisis, Fisher Says - Bloomberg




RE: OPEC, for some quiet moments.. - admin - 10-31-2016

OPEC’s internal disagreements over how to implement oil-supply cuts agreed to last month prevented a deal to secure the cooperation of other major suppliers. More than 18 hours of talks over two days in Vienna yielded little more than a promise that the world’s largest oil producers would keep on talking. Discussions will continue in late November, just days before the Organization of Petroleum Exporting Countries is supposed to finalize the accord that lifted oil prices to one-year highs.

OPEC splits prevent deal with other producers to curb supply

Exxon Mobil profit sank as the world’s largest publicly traded oil company posted its lowest production in seven years and warned the prolonged slump in energy markets may force a write off of 19% of its reserves. The Irving, Texas-based driller extended its longest streak of profit declines in almost three decades. Third-quarter net income was $2.65 billion, or 63 cents a share, compared with $4.24 billion, or $1.01, a year earlier, Exxon said in a statement on Friday. The per-share results exceeded the 59-cent average of 20 estimates in a Bloomberg survey, though the company pumped less crude and natural gas than analysts expected.

Exxon Mobil profit slides as oil-market slump threatens reserves

Canada’s liquefied natural gas developers will band together and merge projects like producers in Papua New Guinea are trying to do as a price crash limits cash for individual export terminals, according to IHS Markit. Producers must also green-light projects now so they can start by 2022, when the market will be in deficit, according to Bob Fryklund, the consultancy’s chief upstream strategist. Companies involved in those projects should share facilities to produce LNG, like Exxon Mobil has proposed for its venture in Papua New Guinea with Total and Oil Search, he said. At least 20 export proposals in Canada haven’t reached final investment decisions, according to Bloomberg New Energy Finance.

Exxon’s Pacific LNG model seen as future for Canadian gas

Business is still looking pretty bleak for major oil companies halfway through their third-quarter earnings season. Of the four companies to report so far—Statoil, Eni, Total and ConocoPhillips—three posted a net loss and two of those did much worse than analysts were expecting. Two years into an oil-price slump that has forced companies to delay projects, cancel billions of dollars of investments and eliminate thousands of jobs, there are few signs of respite.

Big Oil’s half-time report: Recovery is still some way off