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RE: OPEC, for some quiet moments.. - admin - 04-24-2017

Crude oil has not yet recovered from its worst crash in a generation.  But the price range that it has traded in for several months is proving to be a boon for US oil producers, who took several steps including job cuts to adjust to the lower-price environment. "Energy is very much in a sweet spot for the economy and for markets," said Randy Frederick, vice president of trading & derivatives at the Schwab Center for Financial Research.

Oil is in a 'sweet spot' in America - Business Insider

Libya’s El-Feel oil field, operated by a venture between Eni SpA and the state producer, reopened after a two-year halt in operations that crimped the OPEC nation’s output, according to a person familiar with the situation. The field, also known as Elephant, re-opened on Wednesday, said the person, who asked not to be identified because of a lack of authorization to speak to media. It hasn’t resumed pumping oil yet because of an electricity outage, Petroleum Facilities Guard Brigadier Idris Bukhamada said by phone. Authorities are working to resolve the power stoppage soon, he said.

Eni-operated Libyan oil field said to reopen after two-year halt

Since the early days of U.S. shale development, we have observed impressive efficiency and well productivity gains realized by E&P companies. These gains were triggered by a gradual learning process, optimization of completion techniques and well configuration, and high grading of drilling locations and equipment. In particular, the shale industry has been able to survive throughout the worst downturn in history, entering 2017 in a much leaner and fitter shape. With continuous focus on unconventional development, latest trends in the U.S. offshore are often overlooked by the market. Meanwhile, a pipeline of new deepwater projects, sanctioned prior to the downturn, lifted crude and condensate output in the Gulf of Mexico (GoM) by 400,000 bpd over the 2014-2016 period. Based on preliminary production data, GoM produced 1.73 MMbpd of oil in December 2016, that is just 20,000 bpd below the all-time high output achieved in September 2009.

Gulf of Mexico is equally important as Permian for U.S. oil production, Rystad says

A number of major crude-producing countries reached an initial agreement to extend output cuts, Saudi Arabia’s oil minister said Thursday, as persistently high stockpiles weigh on prices. OPEC and other major suppliers have failed, after three months of limiting production, to achieve their target of reducing oil inventories below the five-year historical average, Saudi Arabia’s Khalid Al-Falih said at a conference in Abu Dhabi. The producers pledged to reduce output for six months starting in January. Al-Falih didn’t identify or specify the number of countries in the initial deal for an extension.

Major oil producers reach initial deal to extend output cuts




RE: OPEC, for some quiet moments.. - admin - 04-24-2017

Russia is likely to support extending a multinational deal to cut oil output as higher prices boost revenue in the run-up to next year’s presidential election, a Bloomberg survey shows. “I expect Russia to be on board,” said Helima Croft, chief commodities strategist at RBC Capital Markets in New York. The Kremlin won’t want crude prices to fall, “especially with elections in 2018,” she said. Of 12 analysts surveyed, a further nine agreed.

Russia seen extending production cuts to support price rally

When OPEC and Russia meet next month to assess the impact of their oil cuts they face a surprising outcome: stockpiles are even higher than when they started. Inventories have started to decline, but by the time ministers gather in Vienna on May 25, developed nations still won’t have burned through the big stockpile increase caused by a surge in OPEC output just before the cuts came into force, data from the International Energy Agency indicate.

Oil stockpiles grow despite OPEC's cuts

Now that multi-national energy producers have sold their stakes in Canada’s oil sands, local companies are hatching plans to make some real changes. Cenovus Energy Inc. and Canadian Natural Resources are betting they can exploit new technologies and their deeper understanding of Canadian-specific issues, such as environmental rules and relations with native communities, to profit from one of the world’s biggest hydrocarbon reserves without their former partners.

Oil sands operators bet on local advantage as U.S. partners flee

Oil fell below $50/bbl as investors lost faith that an extension of OPEC-led supply cuts will overcome growing U.S. production and ease a global glut. Front-month futures in New York are down more than 6% this week. While a number of exporters have reached an initial deal to extend the curbs past June, according to Saudi Arabian Oil Minister Khalid Al-Falih, data showing rising U.S. output is raising concern that those cuts will be undermined. OPEC and its allies have failed after three months of cuts to achieve their target of trimming global supplies below the five-year historical average, Al-Falih said.

Oil falls below $50 as surging U.S. output undermines OPEC cuts




RE: OPEC, for some quiet moments.. - admin - 04-26-2017

Oil rose for the first time in six days as an OPEC-led committee was said to back prolonging supply cuts and as other markets rallied after the first round of French presidential elections. Futures climbed as much as 1.2% in New York after slumping 6.7% last week, the first drop in four weeks. A six-month extension to the output-cut deal is necessary, the committee concluded, according to delegates with knowledge of the matter. Equities gained and the dollar weakened against the euro as a snap poll by Ipsos showed centrist Emmanuel Macron would win the second round of voting in France.

Oil rises after five-day slide as markets rally and OPEC cuts

The shale boom is making it hard to be an oil optimist.  While hedge funds raised their bets on rising prices, the market tanked. Money managers boosted wagers on higher  WTI crude for a third week as of April 18, U.S. Commodity Futures Trading Commission data show. The next day, futures tumbled after a report showed U.S. output rose for a ninth straight week. Prices continued to fall even after Saudi Arabia said exporters have reached an initial deal to extend production curbs past June.

Oil investors raise bets on higher price and lose in selloff

We’ve seen rigs increase for the last 14 weeks and if we continue to see that it could put pressure on crude oil prices," said Tariq Zahir, managing member at Tyche Capital Advisors. Prices dipped after the market settled. The American Petroleum Institute said its data showed U.S. crude oil stocks rose 897,000 barrels in the latest week. Analysts had expected a draw of 1.6 million barrels.

Oil settles slightly higher, then API reports surprise build | Reuters

For Russian oil companies, the historic agreement to boost prices by cutting output in conjunction with the Organization of Petroleum Exporting Countries was an easy win. Extending the deal will be less straightforward.  Cuts so far this year came alongside the traditional seasonal stagnation in Russian production, meaning the country made relatively few sacrifices in exchange for an increase in crude prices of more than 10 percent.

Russia's Oil Cuts Won't Be So Easy If OPEC Deal Is Extended - Bloomberg




RE: OPEC, for some quiet moments.. - admin - 04-27-2017

According to Energy Security Analysis’ North America Watch, production of crude oil from the Permian basin will continue to outpace pipeline capacity in the region, keeping pressure on WTI Midland prices relative to WTI Houston. This constraint should be alleviated by the fourth quarter as new pipeline projects come online.

Permian growth overwhelms pipeline capacity

OPEC needs a year more to accomplish what’s at the moment proving to be mission impossible, according to a veteran oil analyst. Saudi Arabian oil minister Khalid Al-Falih acknowledged last week that the group and its allies, after three months of limiting output, have failed to hit their target of eroding oil inventories below the five-year historical average. The reductions need to be prolonged to not only until the end of 2017, but also extended through the first half of next year for the goal to be met, said  Fereidun Fesharaki, the head of industry consultant FGE.

Oil veteran says OPEC needs year to pull off elusive mission

Argentina’s Vaca Muerta, one of the largest shale formations outside of North America, offers tons of promise for the country’s energy future. Just don’t hold your breath waiting for it. Energy Minister Juan Jose Aranguren, billionaire investor Paolo Rocca and bullish Morgan Stanley economists all predict lightning fast growth in the region, comparing it to the Eagle Ford and Permian basins in the U.S., oil and natural gas-saturated plays that have spurred billions in revenue. The reason: Vaca Muerta offers Argentina, which has struggled for years with rampant inflation, an economic lifeline for the future. Still, before the field reaches its potential, gas and oil pipelines need to be built, roads, train lines and power networks need upgrading, and drilling costs that run 30% or more higher than in the U.S. need to drop, industry insiders say.

Argentina's push to mimic Permian success faces long road ahead

Officials at Saudi Arabian Oil Co. have told their superiors there is a hitch in the plans to take the state-owned oil company public: It is likely worth at least $500 billion less than the government previously suggested. The country’s deputy crown prince, who is leading a push to overhaul the economy, has pegged the value of the company known as Saudi Aramco at $2 trillion. But officials working on the deal have struggled to come up with a scenario under which Saudi Aramco is worth more than $1.5 trillion

For Aramco Insiders, Prince’s $2 Trillion IPO Valuation Doesn’t Add Up - WSJ




RE: OPEC, for some quiet moments.. - admin - 04-28-2017

Saudi Arabia’s security forces foiled an attempt to blow up an oil product distribution center in Jazan, a province bordering Yemen in the kingdom’s southwest, according to the state-run news agency. A remote-controlled boat laden with explosives was spotted leaving a small island in Yemeni waters and later intercepted, the Saudi Press Agency said, citing an unidentified spokesman for the Ministry of Interior. Saudi security forces said they would stop any attacks by Houthi rebels, who are threatening shipping routes in the Red Sea with explosive-laden boats and mines.

Saudi forces foil attempted attack on Aramco oil in Jazan

Oil majors' struggle against crude’s collapse is starting to ease, giving some companies enough cash to pay shareholders without piling on more debt. The world’s five biggest non-state oil producers, known as the supermajors, probably increased cash from operations by a combined 67% last quarter from a year earlier, according to HSBC Bank Plc analysts Gordon Gray and Kim Fustier. That may allow some to cover dividends and capital spending without borrowing for the first time since 2012, they said.

Oil supermajors dig out of doldrums as cash poised to surge

Crude will probably drop to $40/bbl or below unless OPEC and allied producers extend their collective cuts in output beyond June, according to analysts including the Abu Dhabi Investment Authority’s head of research. The six-month cuts that took effect in January have set a floor for prices, but an increasing supply of U.S. shale oil together with record-high inventories are keeping the per-barrel price of crude from rising beyond the upper $50s,  Christof Ruehl said Wednesday at a conference in Dubai.

Oil seen dropping below $40 if OPEC fails to extend output cuts

The U.S. Department of Energy has announced that it has signed an order authorizing Golden Pass Products LLC to export domestically produced liquefied natural gas (LNG) to countries that do not have a free trade agreement (FTA) with the United States. Golden Pass is authorized to export LNG up to the equivalent of 2.21 Bcfgd to any non-FTA country not prohibited by U.S. law or policy from the Golden Pass Terminal near Sabine Pass, in Jefferson County, Texas.

U.S. Department of Energy authorizes LNG exports from Golden Pass terminal




RE: OPEC, for some quiet moments.. - admin - 05-01-2017

Total SA will spend $500 million over three to four years to develop a shale gas field in Argentina as the country’s government lures investors by pledging a minimum price. “We have giant resources of non-conventional gas under our feet in Argentina,” Chief Executive Officer Patrick Pouyanne told reporters at a conference in Paris on Thursday. “It’s the beginning of a nice story.”

Total to invest $500 million to produce shale gas in Argentina

Anadarko Petroleum Corp. shares dropped the most since August after the oil and natural gas explorer said it will shut more than 3,000 Colorado wells as part of an investigation into a deadly house explosion. Shares slipped as much as 5.6% to $56.59 in New York trading, their biggest intraday slide since Aug. 1, and were down 4.8% to $57.07 as of 10:15 a.m. in New York. Anadarko will close and inspect the wells as a precaution after the April 17 blast, The Woodlands, Texas-based driller said in a statement Wednesday. Colorado authorities said they have yet to determine a cause for the tragedy.

Anadarko to shut down more than 3,000 Colorado wells after nearby home explosion

Global oil discoveries fell to a record low in 2016 as companies continued to cut spending and conventional oil projects sanctioned were at the lowest level in more than 70 years, according to the International Energy Agency, which warned that both trends could continue this year. Oil discoveries declined to 2.4 billion bbl in 2016, compared with an average of 9 billion bbl per year over the past 15 years. Meanwhile, the volume of conventional resources sanctioned for development last year fell to 4.7 billion bbl, 30% lower than the previous year as the number of projects that received a final investment decision dropped to the lowest level since the 1940s.

IEA: Global oil supply to lag demand after 2020 unless new investments approved soon

Oil declined to a one-month low as Libya reopened its biggest field and as the market weighs increases in U.S. product inventories and crude output. Futures fell as much as 2.9% in New York. Crude from the Sharara field in Libya has started flowing to the Zawiya refinery, according to a person with direct knowledge of the matter. Both U.S. gasoline and distillate stockpiles rose by the most since January last week, according to an Energy Information Administration report Wednesday. Nationwide crude output is at the highest level since August 2015.

Oil slides to one-month low as Libya restarts Sharara field




RE: OPEC, for some quiet moments.. - admin - 05-02-2017

BP announced a major breakthrough in seismic imaging that has identified more than 200 MMbbl of additional resources at BP’s Atlantis field in the deepwater Gulf of Mexico. As a result of this early success, BP now is deploying this technique to fields elsewhere in the Gulf of Mexico as well as in Azerbaijan, Angola, and Trinidad and Tobago. The innovation has enabled BP to enhance the clarity of images that it collects during seismic surveys, particularly areas below the earth’s surface that complex salt structures previously obscured or distorted. The sharper seismic images mean that BP can drill new development wells in deepwater reservoirs with higher confidence and accuracy.

BP finds more than 200 MMbbl in new resources with seismic imaging at U.S. Gulf of Mexico

Exxon Mobil Corp. and Chevron Corp. easily swept aside analyst estimates as the battered giants of the U.S. oil industry shook off two-and-a-half years of low oil prices and reported surging profits in the first quarter. Exxon, the world’s biggest oil producer by market value, earned 95 cents a share, outperforming all but one of the 19 analysts’ estimates in a Bloomberg survey. Chevron, the second-largest U.S. driller, swung to a profit in a big way, scoring its largest quarterly gain since 2014 and a per-share result that was 64% higher than the average estimate.

Oil supermajors are back: Exxon, Chevron triumph in crude resurgence

U.S. natural gas producers are running hard to stand still. The number of rigs drilling for gas has almost doubled since August, but output continues to fall. Even accounting for a lag between the start of drilling and first production, the drop in output is striking -- a well in the Marcellus Shale, America’s most prolific reservoir of the fuel, is producing about half of what it yielded a year ago, according to Bloomberg Intelligence. Companies are struggling to overcome steep decline rates -- the natural decrease in production -- from shale formations that were the source of huge added supplies in years past.

U.S. nearly doubled rigs drilling for gas since August, but production still lags

Many carmakers, and not just Tesla, have been developing electric vehicles, betting on the expected continuous rise of battery-powered cars in the future. Now it’s not only carmakers that predict that EVs will make up a substantial part of new vehicle sales in a decade or two—oil majors are admitting it too. France’s Total SA expects EVs to account for up to 30 percent of new car sales by 2030, which could lead to oil-based fuel demand peak in the 2030s, Total’s Chief Energy Economist Joel Couse said at Bloomberg New Energy Finance conference earlier this week.

Oil Majors Can No Longer Ignore The Electric Car Threat | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 05-02-2017

Saudi Arabia, the world’s largest crude exporter, cut pricing for June oil exports to Asia as it fights to defend sales in its biggest regional market. The kingdom raised pricing to all other regions. State-owned Saudi Arabian Oil Co., known as Saudi Aramco, lowered its official pricing for Arab Light crude to Asia by 40 cents to an 85 cent discount to the regional benchmark, it said in an emailed statement, in line with the median estimate in a Bloomberg survey of five refiners and traders in the region.

Aramco cuts Asia oil pricing as Saudis seen losing market share

The relentless drilling ramp-up in America’s top shale plays is making investors more skeptical that an oil price rebound is on the horizon. After increasing their bets on rising West Texas Intermediate crude for three straight weeks, money managers slashed the wagers by 21%, according to U.S. Commodity Futures Trading Commission data. Producers in Texas are leading the longest shale revival since 2011, making OPEC-led efforts to rebalance the market increasingly difficult.

Oil price optimism wears off as Texas wildcatters drill on

Saudi Arabia, OPEC’s biggest producer and de facto leader, is losing market share, while Iran and Iraq have so far emerged as winners of the cuts with in the cartel in a battle for market share, according to Christof Ruehl, former chief economist at BP who is currently Global Head of Research at the Abu Dhabi Investment Authority (ADIA).

OPEC Deal Backfires: Saudis Lose Market Share To Iran, Iraq | OilPrice.com

Saudi Arabia’s state-held oil giant Saudi Aramco will be launching in 2018 the revamped Muajjiz oil terminal on the Red Sea that would raise the Kingdom’s oil loading and export capacity to 15 million bpd from 11.5 million bpd now, Mohammed Y. Al Qahtani, Aramco’s Senior vice president of Upstream, told Reuters in an interview published on Monday.

Saudis To Boost Oil Export Capacity To 15 Million Bpd In 2018 | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 05-03-2017

The U.S. is in the position to be energy-dominant, not just independent, thanks to fracing and plans to loosen drilling regulations, Interior Secretary Ryan Zinke said Monday. Oil production across the U.S. may increase by 17% to a record 10.24 MMbpd by the end of next year as companies cut costs and become more efficient in drilling, especially in areas such as West Texas and North Dakota. Domestic output hasn’t surpassed 10 MMbopd since 1970. At a time when OPEC and other producers are cutting output, U.S. exports surged above 1 MMbpod for the first time.

Trump's U.S. looks past energy independence, to global dominance

Oil fell, approaching the lowest in more than a month as fuel-stockpile gains are seen offsetting an expected increase in U.S. crude supply. Futures fell as much as 0.7% in New York. U.S. crude supplies are forecast to have decreased for a fourth week, while inventories of gasoline and distillate fuel are seen rising, according to a Bloomberg survey before a report from the Energy Information Administration on Wednesday. Prices rose earlier after data showed Russia’s oil production continued to decline in April as the country implements curbs agreed to with OPEC. Those cuts have yet to translate into lower stockpiles.

Oil falls as expected U.S. fuel-supply gain counters crude drop

Total and the Republic of Senegal have signed two agreements enabling Total to contribute to the exploration activities in Senegal’s deep and ultra-deep offshore. “An established player in refining and marketing in Senegal, Total is delighted to expand its presence in the country in the exploration & production segment. These agreements are part of the Group’s strategy to carry out exploration activities in new deepwater basins in Africa and leverage our world renowned expertise. Total is pleased to be bringing our know-how to the promising exploration zones in Senegal,” said Patrick Pouyanné, chairman and CEO of Total, following his meeting with the President of the Republic of Senegal.

Total signs agreements to explore Senegal's deepwater potential

Has OPEC failed? That’s the question analysts have begun to ask, approaching the group’s next meeting later this month. When the members gather at their headquarters in Vienna, it will likely be to agree on an extension of production cuts in place since January. Those cuts, originally intended to re-balance markets and boost prices, had an initial positive effect but their ultimate impact has been difficult to measure, as inventories have declined only gradually while global oil shipments have increased. New production from outside of OPEC, particularly in the United States, has kept global inventories high.

All Eyes On Saudi Arabia As OPEC Begins To Unravel | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 05-04-2017

Oil slipped more than 1 percent on Monday, as rising crude output with Libya hitting its highest production since 2014 and increased U.S. drilling countered OPEC-led production cuts aimed at clearing a supply glut. Signs of slower-than-expected growth in manufacturing in China and a weaker figure for U.S. manufacturing sentiment also weighed on expectations for oil demand and the market.

Oil prices extend losses on US drilling, China manufacturing data

OPEC oil output fell for a fourth straight month in April, a Reuters survey found on Tuesday, as top exporter Saudi Arabia kept production below its target while maintenance and unrest cut production in exempt nations Nigeria and Libya. But more oil from Angola and higher UAE output than originally thought helped OPEC compliance with its production-cutting deal slip to 90 percent from a revised 92 percent in March, according to Reuters surveys.

OPEC oil output falls in April but compliance weakens - Reuters survey | Reuters

Chevron CEO: US has become oil market's 'swing producer' in the short run   Monday, 1 May 2017 | 2:28 PM ET | 04:22 Chevron CEO John Watson on Monday warned that U.S. shale oil alone cannot meet the world's growing appetite for crude. Global oil demand is growing by more than a million barrels per day each year. American producers are meeting much of that consumption growth after a revolution in drilling technology that has allowed them to unlock oil and gas from shale rock formations. "Shale can help. Certainly between now and the end of the decade it will be a big contributor to meeting that million-barrels-of-oil-demand growth that's out there," Watson told CNBC's "Power Lunch" on the sidelines of the Milken Global Conference in Los Angeles.

US shale cannot meet the world's growing oil demand, Chevron CEO warns

OPEC may announce a short extension of the oil output deal, as there is no chance there will be a six-month extension, Sam Barden, the director of SBI Markets, an international commodity trading and advisory company, told Trend May 1. Regarding the possibility of Iraq’s exemption from the OPEC deal, the expert noted that alongside with Iran, Iraq also wants to increase its share of the global oil export market and will likely increase it.

OPEC may announce short extension of output deal – expert