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RE: OPEC, for some quiet moments.. - admin - 06-28-2017

Lithuania's state-owned gas trader Lietuvos Duju Tiekimas (LDT) said on Monday it had signed a deal to buy liquefied natural gas (LNG) directly from the United States for the first time and expects to receive a delivery in the second half of August. The deal is with a unit of Cheniere Energy and is part Lithuania's efforts to diversify its gas suppliers and reduce its reliance on Russia's Gazprom. LDT, part of state-owned energy group Lietuvos Energija, signed a deal last year with Koch Supply & Trading for LNG supplies throughout 2017.

Lithuania signs first deal for U.S. LNG | Reuters

GRONINGEN, The Netherlands—For decades, the giant Groningen gas field beneath the flat, green farmland in the north of this country counted among the greatest prizes for Exxon Mobil Corp. and Royal Dutch Shell PLC. Then the earthquakes started.

How Earthquakes Are Rattling a Dutch Province Atop One of the World’s Richest Gas Troves - WSJ

At the current level of oil prices, U.S. E&P companies are on track to outspend operating cash generation by nearly $20B this year, according to Bernstein Research. No problem, right? Companies can just raise equity capital or go deeper into debt? Not so fast, says the team ... With the current level of anxiety in energy markets, raising money may not be so easy. Instead, look for asset sales and capex cuts to ease the crunch.

Shale debt to rise - Bernstein - BlackRock Energy&Resources Trust (NYSE:BGR) | Seeking Alpha

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s. Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export.

RPT-China pumps cash into African floating LNG projects in strategic push | Reuters

RE: OPEC, for some quiet moments.. - admin - 06-29-2017

Three out of four oil and natural gas companies fell victim to at least one cyber attack last year as hacking efforts against the industry become more frequent and sophisticated. That’s the finding from a report released Monday by industry consultant Deloitte LLP. Technology advances, such as  Royal Dutch Shell Plc’s recent control of operations in Argentina from an operating center in Canada, offer new openings for hackers, the authors wrote.

Hackers hit 75% of drillers as sketchy monitoring is blamed

The U.S. has a unique opportunity to develop a "North American energy strategy" with Canada and Mexico, Energy Secretary Rick Perry said, striking a conciliatory tone with the other members of the North American Free Trade Agreement. While President Donald Trump has blasted Nafta and moved to renegotiate it, Perry referred to the upcoming talks as a “massage” of the 1994 Nafta deal, saying it presents an opportunity to bolster energy ties, not enact new trade barriers.

Perry seeks energy pact with Mexico, Canada as Nafta talks near

About 300 BP workers commute 150 mi by helicopter, from the Louisiana coast to a deep-sea drilling platform that can produce more oil in a day than a West Texas rig can pump in a year. On the deck of Thunder Horse, they work two-week shifts, drink seawater from a desalination plant, and eat ribs and chicken ferried in by boat. On the ocean floor, robots provide remote eyes and arms as drills extract up to 265,000 bopd. "There's a whole city below us," said Jim Pearl, marine team leader on the platform.

BP doubles down on deep water, despite surging shale

Wood Group has secured a new front end engineering design (FEED) contract with Gastrade S.A. for the Alexandroupolis Independent Natural Gas System (INGS) offshore Greece. The project, to develop a floating liquefied natural gas (LNG) receiving, storage and regasification unit (FSRU), will create a new natural gas gateway to the markets of south eastern and central Europe.

Wood Group secures FEED for Alexandroupolis LNG project in northern Greece

RE: OPEC, for some quiet moments.. - admin - 06-30-2017

On the surface, the oil market is getting worse and worse: there are now more bearish bets on benchmark Brent crude than at any time in at least six years. But to many traders, that’s a signal prices are vulnerable to a sudden, sharp rebound. Oil’s ripe for a so-called “short-covering” rally -- where traders who sold contracts hoping to benefit from falling prices buy them back to take profits or avoid losses. Short positions held by speculators in Brent rose to 169 million barrels last week, the highest since records started in 2011, according to exchange data.

Oil's record bearish bets prompt warning of violent rally

A joint venture between Royal Dutch Shell and Exxon Mobil said on Wednesday it would appeal against a Dutch government plan to lower a production cap at the Groningen natural gas field by a further 10%. The Dutch government has lowered production at Groningen several times over the past three years due to small earthquakes triggered by work there. The latest cap, announced in May, would lower production to 21.6 Bcm/year from October. It was 53.9 Bcm in 2013.

Shell, Exxon to appeal latest Groningen gas production cap

Libyan oil shipments are poised to hit their highest level in at least three years in the latest sign the North African country is managing to sustain a production revival. Exports are on course to reach about 715,000 bpd this month, the most since July 2014, when Bloomberg began monitoring Libyan shipments, tanker-tracking data show. With relatively limited capacity to process that crude in its domestic refineries, the shipments have been moving in lock-step with production.

Libyan crude gushes into tankers as nation's output accelerates

McKinsey Energy Insights (MEI), the data and analytics specialist that provides insight and support to the global energy industry, has released its North American Shale Oil Outlook. Under its Price Recovery scenario, which assumes WTI prices will hit $60–$70/bbl from 2019 onward, MEI expects shale drilling and completions to grow at 20% p.a. and production to increase at 12% p.a. through to 2021. U.S. shale oil production is estimated to reach 9 MMbpd by 2025, but this could vary by 5.4 MMbpd depending on oil price scenarios.

McKinsey Energy Insights expects U.S. shale production to reach 9 MMbpd by 2025

RE: OPEC, for some quiet moments.. - admin - 07-01-2017

BHP Billiton's Chairman Jac Nasser said on Thursday that BHP's $20-billion investment in U.S. shale oil and gas six years ago was, in hindsight, a mistake. BHP entered the shale business at the height of the fracing boom in 2011 and invested billions more developing the operations. The fall in oil prices since then has led to pre-tax writedowns of about $13 billion on the business. Activist shareholder and hedge fund Elliott Management, holding 4.1% of BHP's London-listed shares, has been trying to gain support from other shareholders to persuade BHP to sell the shale oil and gas business.

BHP chairman says $20-billion investment in shale was a mistake

The chorus in the oil market calling for deeper production cuts gets louder almost every day. By resisting the clamor, OPEC is breaking with its own history. As crude sank below $50/bbl -- less than half the price of two years ago -- market-watchers from Goldman Sachs Group to former OPEC officials said supply curbs imposed this year need to be intensified. That would be consistent with past behavior, when production cuts or increases often arrived in stages a few months apart.

OPEC resists flow of history with reluctance to cut deeper

South Korean energy conglomerate SK Group signed a memorandum of understanding (MOU) with General Electric on Thursday to jointly develop U.S. shale gas fields in a bid to expand in the U.S. shale gas sector. The partnership with GE will help SK Group bring in U.S. liquefied natural gas (LNG) to South Korea, as well as onsell it to other countries amid growing U.S. LNG exports, SK Group said in a statement.

South Korea's SK Group signs MOU with GE to jointly develop U.S. shale gas

Russia's largest oil producer Rosneft said on Thursday it was targeting China's gas market after completing a $1.1-billion deal to sell 20% of its subsidiary Verkhnechyonskneftegaz (VChNG) to Beijing Gas. The deal is part of a Russian drive backed by President Vladimir Putin to forge closer economic and political ties with China amid a standoff with the West. Kremlin-controlled Rosneft, which aims to ramp up natural gas sales as it squares up to Russian gas firm Gazprom , said it hoped to access China's domestic gas market and end-users via swap deals.

Rosneft eyes Chinese gas market after Beijing Gas deal

RE: OPEC, for some quiet moments.. - admin - 07-02-2017

Oil may be enjoying a rally in recent days, but don't bet on it lasting, noted commodities trader Dennis Gartman told CNBC on Wednesday. Crude prices were higher on Wednesday, with U.S. crude futures closing up 50 cents, or 1.1 percent, at $44.74 a barrel. The move came after government data showed a bigger-than-expected drop in gasoline inventories and falling weekly U.S. crude output. "There's a real problem out there in the crude oil market. You're going to get a rally and the market is rallying today. It's been rallying for the past 4 or 5 days. It is nothing but a dead cat bounce," the editor and publisher of The Gartman Letter said in an interview with "Power Lunch."

Dennis Gartman: ‘There's a real problem’ in oil market, bounce won’t last

Goldman explains how it really blew it on its bullish oil call this year  Goldman Sachs on Thursday issued a mea culpa of sorts, releasing a research note explaining how it misread the crude oil market, after the bank significantly lowered its price forecast. In light of the recent downturn in oil prices, the investment bank was forced to revise its forecast for U.S. crude to average $55 per barrel over the next three months, bringing it down to $47.50 a barrel. At the root of the problem, Goldman said it failed to appreciate two things: how quickly U.S. shale oil production would ramp up as crude prices rose and how swiftly investors would pile into the trade.

Goldman explains how it really blew it on its bullish oil call this year

Asian demand for crude oil from the Atlantic Basin and the Americas is set to rise as low prices drive Japanese and South Korean buyers to snap up cargoes to arrive ahead of peak winter consumption. Robust appetite from the region could help soak up excess supplies in Europe and the United States, offering some support to benchmark global prices that plumbed 10-month lows last week. The loading of oil shipments from Europe and the Americas to Asia tapered off in June after surging between March and May, but the recent price slump is pushing Asian buyers and traders to once again turn to the North Sea Forties grade of oil and to U.S. crude.

Asia demand for US, Atlantic Basin oil set to jump as buyers prep for winter | Reuters

Keystone XL is facing a new challenge: The oil producers and refiners the pipeline was originally meant to serve aren’t interested in it anymore. Delayed for nearly a decade by protests and regulatory roadblocks, Keystone XL got the green light from President Donald Trump in March. But the pipeline’s operator, TransCanada Corp., is struggling to line up customers to ship crude from Canada to the U.S. Gulf Coast

A New Problem for Keystone XL: Oil Companies Don’t Want It - WSJ

RE: OPEC, for some quiet moments.. - admin - 07-03-2017

U.S. shale oil producers plan to keep drilling new wells despite this month's crude CLc1 price drop but expect to revisit spending should pricing remain below $45 a barrel for several months. "We will not drill into oblivion," Tim Dove, chief executive of Pioneer Natural Resources Co (PXD.N), told investors on Tuesday at a J.P. Morgan energy conference in New York. Pioneer, one of the biggest operators in the Permian Basin, the largest U.S. oilfield, is confident that OPEC leader Saudi Arabia will not let oil prices remain near current levels for too long, Dove said.

Shale producers say spending 'flexibility' key as oil prices drop | Reuters

U.S. oil drillers cut rigs this week for the first time since January and the pace of additions slowed this quarter due to declines in crude prices despite an OPEC-led effort to cut production and end a multi-year supply glut. Analysts, however, noted the weekly decline in the rig count was likely just a brief pause in a drilling recovery expected to continue through at least 2019.

U.S. oil drillers cut rigs for first week since January

Oil companies have spent three years slashing spending and firing workers to protect profits, only to find their hard work blown away as prices entered another bear market. The MSCI World Energy Sector Index is heading for a second consecutive quarter of declines, mirroring the drop in crude. The 90 companies that make up the index, including giants like Exxon Mobil and Royal Dutch Shell, have together lost $115 billion in market value since the start of April, according to data compiled by Bloomberg.

Major oil producers' cost-cutting swept away by new price decline

The U.S. Department of Energy announced today the approval of two long-term applications to export additional liquefied natural gas (LNG) from the Lake Charles LNG Liquefaction Project in Lake Charles, La. Additional exports in the amount of 0.33 Bcfd of natural gas are approved from Lake Charles’ proposed liquefaction facility.

U.S. Department of Energy authorizes additional LNG exports from Lake Charles

RE: OPEC, for some quiet moments.. - admin - 07-05-2017

President Donald Trump will use fast-growing supplies of U.S. natural gas as a political tool when he meets in Warsaw on Thursday with leaders of a dozen countries that are captive to Russia for their energy needs. In recent years, Moscow has cut off gas shipments during pricing disputes with neighboring countries in winter months. Exports from the United States would help reduce their dependence on Russia.

Trump to promote U.S. gas exports in Russia's backyard

Total and the National Iranian Oil Company (NIOC) have signed a contract for the development and production of phase 11 of South Pars (SP11), the world's largest gas field. The project will have a production capacity of 2 Bcfd or 400,000 boed, including condensate. The produced gas will supply the Iranian domestic market starting in 2021.

Total, NIOC sign contract for development of phase 11 of the giant South Pars gas field

Oil short-sellers have been on a roll, but their bets on declining prices may have begun to hit a wall. Hedge-fund wagers on lower West Texas Intermediate crude reached the highest level since August in the week ended June 27, after more than doubling in two months, according to Commodity Futures Trading Commission data. The bearish bets increased at a much slower pace than in the previous two weeks, though. The U.S. benchmark price had its longest rally of the year, climbing 7% last week, amid signs U.S. shale output is stuttering.

Bets on oil rout seen peaking as shale boom starts to falter

In the heart of Canada’s biggest oil province, life is slowly returning to normal in Fort McMurray, Alberta. After a fire last year destroyed entire neighborhoods in the town and halted about 1 MMbbl of daily production, green leaves are beginning to bud on charred trees and new construction is replacing homes that were burned to the ground.

Rebirth of Canadian oil sands from fire stymied by slump

RE: OPEC, for some quiet moments.. - admin - 07-06-2017

Qatar Petroleum is taking “legal actions” after Abu Dhabi National Oil Co. declared force majeure to halt shipments of condensate, a light oil liquid, from Qatar, according to QP CEO Saad Sherida Al Kaabi. Qatar will continue to supply natural gas via pipeline to the United Arab Emirates and Oman, Al Kaabi told reporters at a press conference in Doha Tuesday. Al Kaabi said the force majeure declaration was imposed “illegally” on the condensate shipments. Adnoc wasn’t available to comment.

Qatar says fellow OPEC state UAE halts oil imports in row

OPEC’s crude production rose to the highest this year in June as member nations exempt from output curbs pumped more. Members of the Organization of Petroleum Exporting Countries boosted their output by 260,000 bpd compared with May, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. Half of the increase came from Libya and Nigeria, which are exempt from making cuts under the deal agreed between OPEC and its allies.

OPEC output at highest this year as exempt nations pump more

Qatar Petroleum, the largest producer of liquefied natural gas, plans to increase output by 30% within seven years, a step that would entrench the Gulf nation’s role as a major energy supplier amid a boycott by a Saudi-led coalition of countries. The state-run producer is doubling, to 4 Bcfd, its target for output capacity at a new project in North field, Qatar’s section of the world’s biggest natural gas deposit, CEO Saad Sherida Al Kaabi told reporters in Doha. This will raise Qatar’s total LNG production to 100 million tons a year from its current level of 77 million tons, he said. Demand for liquefied gas is growing faster than that for oil, Al Kaabi said.

Qatar to boost LNG output by 30%, flouting Saudi-led boycott

Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. Hughes initiated the monthly international rig count in 1975. The North American rig count is released weekly at noon central time on the last day of the work week. The international rig count is released on the fifth working day of each month

Baker Hughes Rig Count Data |

RE: OPEC, for some quiet moments.. - admin - 07-07-2017

Crude oil fell, snapping the longest winning streak this year, as Russia was said to oppose any proposal to deepen OPEC-led production cuts. Futures dropped 1.7% in New York, snapping eight straight sessions of gains. Russia wants to continue with the current deal and any further supply curbs would send the wrong message to the market, according to government officials. The U.S. dollar gained, reducing the appeal of commodities denominated in that currency.

Crude tumbles after Russia said to oppose deeper production cuts

Polish leaders are betting Donald Trump’s visit to Warsaw starting on Wednesday, two days before the U.S. president meets his Russian counterpart, will bolster their efforts to reduce the nation’s dependence on natural gas from its eastern neighbor.

Poland sees Trump visit catalyst to cut Russian gas reliance

One of oil’s most prominent bulls is starting to sound like a skeptic. The global crude market has “materially worsened" and prices may be stuck around $50/bbl or below, storied hedge fund manager Andy Hall said in an investor letter this week, reversing the optimistic tone he’d taken for months. Crude prices are down 16% for the year, amid signs that rising U.S. output will undercut production cuts ordered by the Organization of Petroleum Exporting Countries and its allies. After a rally last week, futures for West Texas Intermediate oil slipped 4% on Wednesday after Russian officials said they were opposed to deeper reductions.

One of oil's most prominent bulls is sounding like a pessimist

Four Arab states refrained on Wednesday from slapping further sanctions on Qatar but voiced disappointment at its "negative" response to their demands and said their boycott of the tiny Gulf nation would continue. Qatar earlier in the day accused Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt of "clear aggression" and said the accusations cited when they severed ties a month ago "were clearly designed to create anti-Qatar sentiment in the West".

Arab states announce no new sanctions following "negative" Qatari reply to demands

RE: OPEC, for some quiet moments.. - admin - 07-08-2017

Qatar’s neighbors are trying to isolate it from the outside world by cutting off transport and diplomatic links. There’s one major area where their ostracism campaign is falling short: energy. Qatar is the world’s fourth-biggest energy supplier and wealthiest country by per capita income. It pumps more oil and gas than Rosneft PJSC or Exxon Mobil Corp. and is the biggest producer and seller of liquefied natural gas. Saudi Arabia and its allies accuse the sheikhdom of funding terrorism and maintaining overly cordial ties with regional rival Iran. The allegations, which Qatar denies, pit Saudi Arabia, the world’s largest crude exporter and biggest supplier in the Organization of Petroleum Exporting Countries, against the group’s smallest Arab producer.

Qatar charts second gas boom as Saudis try to tighten the noose

President Donald Trump encouraged eastern European leaders worried about their dependence on Russian energy to buy U.S. gas instead. “If one of you need energy, just give us a call,” Trump told a gathering in Warsaw on Thursday. “The United States will never use energy to coerce your nations, and we cannot allow others to do so,” he said in an apparent slight to Russia, which has sometimes cut off gas shipments to its neighbors over pricing disputes.

Trump urges eastern Europe to loosen Russia's grip with U.S. gas

It took a surge of gas flowing out of Britain for the country to finally take part in the U.S. shale boom. A cargo of liquefied natural gas from Sabine Pass, La., is scheduled to dock in southern England’s Isle of Grain terminal on Saturday, making the UK the seventh European Union country to receive gas from America’s shale rock.

Thanks to Belgium, U.S. shale has arrived in the UK

There’s yet another concern growing as oil prices continue to erode: A record U.S. fraclog. There were 5,946 DUC wells in the nation’s oilfields at the end of May, the most in at least three years, according to estimates by the U.S. Energy Information Administration. In the last month alone, explorers drilled 125 more wells in the Permian basin than they would open. That represents about 96,000 bpd of output hovering over the market.

Shale's record fraclog could force oil prices lower