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RE: OPEC, for some quiet moments.. - admin - 08-09-2017

Oil market is expected to see a downward correction this quarter but Brent prices will move up to $54 a barrel in the final quarter of this year, according to Barclays. Both Brent and WTI are down more than 9 percent since the start of the year and close to 20 percent over a 12-month period. In the light of the political situation in Venezuela, the market appears better prepared to cope Iith any loss in supply.

Oil could see downward correction in next quarter, Barclays says

Venezuela’s deteriorating crisis is “going to be the biggest geopolitical story to watch in the oil markets," according to Helima Croft of RBC Capital Markets. The economic, political and security situation in Venezuela has been frightening for quite a while, but things continue to grow worse. The new “constituent assembly,” put together to rewrite the constitution, is seen by most as an attempt to erode the nation’s democracy and consolidate power in the hands of the president.

Venezuela Rebellion Could Send Oil To $80 | OilPrice.com

Both contracts stood well below levels hit last week, which marked their highest since late May. Oil prices fell as much as 2 percent on Monday on selling triggered by a rebound in production from Libya's largest oil field along. Output at Libya's Sharara field was returning to normal after a brief disruption by armed protesters in the coastal city of Zawiya, the National Oil Corporation (NOC) said. The field has boosted Libya's oil production, which climbed to more than 1 million bpd in late June.

Oil prices fall after rebound in output from Libya's largest oil field

Libya and Nigeria pushed OPEC’s crude oil output in July to the highest this year, at 32.82 million barrels daily, a survey by S&P Platts has revealed. The cartel is reporting its production figures this Thursday. According to Platts, the combined production of Libya and Nigeria, both exempt from the cuts agreed to last November, went up by 210,000 bpd last month, with Libya pumping about 990,000 bpd and Nigeria producing 1.81 million bpd. Saudi Arabia, according to Platts, pumped 10.05 million bpd in July.

Oil Prices Fall As OPEC Output Hits ‘’Year-To-Date High’’ | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 08-10-2017

Baker Hughes, a GE company announced one of the first agreements of its kind with Twinza Oil Ltd to provide fullstream support on the Pasca A gas condensate field, offshore Papua New Guinea in the Gulf of Papua. The Twinza-BHGE fullstream agreement covers services and equipment during Phase I of the Pasca A field Development, including drilling services, wellheads and pressure control equipment for the fourth and final appraisal well.

Baker Hughes to provide support for Gulf of Papua project

U.S. producers are seen pumping away, even with the price of West Texas Intermediate crude lingering below $50/bbl, according to the latest government estimates. Domestic output will average 9.91 MMbpd next year, the U.S. Energy Information Administration said in its monthly Short-Term Energy Outlook released Tuesday. That’s up from 9.9 MMbpd estimated in July, when the EIA lowered its forecast for 2018 production for the first time since the agency started posting the estimates in January.

EIA raises both 2017, 2018 U.S. crude production forecasts

The Permian basin is starting to see decline rates from shale wells accelerate, a trend that could be the result of too much drilling. Shale wells suffer from steep decline rates. A rush of output occurs at first, but almost immediately after the well comes online, the flow rate drops off precipitously. And within just a few months the well is a shadow of its former self. That is typical. But putting a bunch of wells close to each other can induce even steeper decline rates than normal because they can rob pressure from each other. If that occurs, the wells can suffer irreparable damage, and ultimately, the volume of oil and gas that can eventually be recovered could potentially be permanently diminished.

‘Nothing To See Here’ - Frackers Ignore Rising Well Decline Rates | OilPrice.com

Natural gas output from U.S. fields will rise more than expected in 2018, the Energy Information Administration reported on Tuesday. EIA sees gas output at 77.34 billion cubic feet a day in 2018, up 1.2 percent from its prior estimate. The increase is driven by higher exports and more electricity generation from gas-fired power plants.

US natural gas output will grow more than expected next year, says Dept of Energy




RE: OPEC, for some quiet moments.. - admin - 08-11-2017

Appearing on stage at Miraflores Palace with Maduro was his Exhibit A, Todd Swanson, CEO at a company called Horizontal Well Drillers LLC. To applause from the audience, Swanson shook the president’s hand and talked about his love of the Latin American country. For an oil man, this isn’t entirely unreasonable. Venezuela may be rocked by political chaos, short on food and medicine and internationally condemned as an authoritarian state, but its proven crude reserves are larger than even Saudi Arabia’s.

Niche U.S. oil driller gets a shot at world's biggest reserves

EIA’s latest Short-Term Energy Outlook projects that the United States will export more natural gas than it imports in 2017. The United States has been a net exporter for three of the past four months and is expected to continue to export more natural gas than it imports for the rest of 2017 and throughout 2018. The United States’ status as a net exporter is expected to continue past 2018 because of growing U.S. natural gas exports to Mexico, declining pipeline imports from Canada, and increasing exports of liquefied natural gas (LNG).

EIA: U.S. expected to become a net exporter of natural gas this year

A worldwide glut of natural gas has buyers of the fuel driving hard bargains and pushing for shorter supply contracts. The only problem with that, according to their sellers: The market’s about to turn against them. Gas buyers have become too focused on the short-term, turning away from long-term contracts, said Greg Vesey, chief executive officer of Liquefied Natural Gas Ltd., an Australian developer of terminals that liquefy and export gas. If they keep it up and don’t lock in enough contracts next year to encourage the construction of more export terminals, the market could end up short supplies as soon as 2021, he said.

Gas sellers warn hard-bargaining buyers: market is turning

Oil edged higher as traders weighed a decline in U.S. crude stockpiles with an unexpected increase in gasoline supplies. Futures closed 0.8% up, after swinging between gains and losses during the session in New York. While crude inventories slid for a sixth week, by 6.45 MMbbl, gasoline supplies jumped by 3.42 MMbbl last week, the most since January, data from the Energy Information Administration Wednesday showed. This came as a surprise to investors, as reductions in gasoline stockpiles are typically seen during the summer driving season.

Oil gains as market weighs crude supply drop, gasoline build




RE: OPEC, for some quiet moments.. - admin - 08-12-2017

The key sign of OPEC’s success may finally be here. Since the Organization of Petroleum Exporting Countries embarked on its strategy to clear a global glut, analysts from Goldman Sachs Group Inc. to Bank of America Corp. have said that one critical indicator would show the plan is working: the discount on immediate crude would turn into a premium. That condition known as backwardation signals demand is outpacing supply.

OPEC finally catches a break as oil curves show cuts biting

Despite bullish conditions led by a huge drawdown in U.S. crude, oil prices were down at the end of the week following less than positive OPEC reports.

Have Oil Markets Reached A Tipping Point? | OilPrice.com

For decades, the world’s largest oil shippers lived in fear of OPEC turning off the taps and causing demand for their vessels to plunge as cargoes dwindled. That’s not how it’s played out this time, according to one of Europe’s biggest supertanker operators. The rise of U.S. shale exports, particularly on long-distance routes to China, has propped up demand for tankers that would otherwise have been severely dented by this year’s output cuts led by OPEC, Paddy Rodgers, the CEO of Euronav NV, said in an interview on Bloomberg TV on Thursday. His company’s fleet can haul more oil than is normally stored at Cushing, Okla., the U.S. trading hub.

Euronav says shale boom ends OPEC's power to crush tanker demand

OPEC’s two biggest producers agreed to strengthen their commitment to production cuts and maintain balance in world crude markets, Saudi Energy Minister Khalid Al-Falih said after talks with his Iraqi counterpart Jabbar al-Luaibi, according to the kingdom’s state news agency SPA. The two ministers also agreed to ensure coordination of their nations’ oil policies, Saudi Press Agency reported, citing comments by Al-Falih after their meeting in the Red Sea city of Jeddah.

Saudi, Iraq oil ministers agree to stronger oil-cuts commitment




RE: OPEC, for some quiet moments.. - admin - 08-14-2017

The prospect of a U.S. blockade of crude oil imports from Venezuela has ignited fierce lobbying in Washington pitting domestic energy producers such as oil tycoon Harold Hamm, who favor a get-tough approach, against refiners that depend on those supplies. Hamm said hitting Venezuelan President Nicolas Maduro where it counts would deter the socialist leader’s moves to undermine democracy and consolidate power. In an interview, the  Continental Resources, Inc. chief executive officer urged President Donald Trump to block the oil, a vital source of revenue for Venezuela.

Threat of Venezuelan oil ban pits oil boss Hamm against refiners

The Greater Lafourche Port Commission (GLPC) and tenant Energy World USA (EWUSA) have announced that wholly-owned Fourchon LNG LLC has filed its formal letter to request initiation of the pre-filing review process with the U.S. Federal Energy Regulatory Commission (FERC). Upon completion of the pre-filing process, Fourchon LNG LLC intends to file an application with FERC for authorization to construct the proposed 5 million tons per annum mid-scale liquefied natural gas (LNG) production and export facility at Port Fourchon.

Fourchon LNG kicks off federal regulatory process for $888-million LNG facility

The chief executive of LNG terminal maker Liquefied Natural Gas Ltd. told Bloomberg in an interview that the shift towards short-term contracts may come back to bite LNG traders. Greg Vesey said that the only way to secure funding for new export/import capacity is through long-term contracts, and failure to ink some may tip the scales towards a shortage as soon as 2021. The Pacific NorthWest LNG is a case in point. The Malaysian state oil and gas company terminated the project because of low gas prices. In this price environment, the company simply could not afford the investment.

Is LNG Moving From A Buyers’ To A Sellers’ Market? | OilPrice.com

The International Energy Agency cut estimates for the amount of crude needed from OPEC this year and in 2018 after lowering its historical assessments of consumption in some emerging nations. World oil markets are re-balancing as the Organization of Petroleum Exporting Countries and its allies implement production cuts, the IEA said in its monthly report. Still, inventories remain high and the volume of crude needed from OPEC is less than previously thought as consumption in some developing nations had been overestimated, it said.

IEA cuts estimates for crude needed from OPEC in 2017, 2018




RE: OPEC, for some quiet moments.. - admin - 08-16-2017

Norway’s oil industry says it has some major investments in store if the government can just come through with some tax incentives. It’s still hoping for tax breaks to encourage recovery of oil from older fields. Those failed to materialize over the past four years even as the industry went through its worst investment collapse in a generation. As Norway heads into an election next month, the oil industry still has “some expectation” that whoever wins will consider those incentives, said Karl Eirik Schjott-Pedersen, a veteran politician who leads the Norwegian Oil and Gas Association.

Oil giants dangle $19 billion in investments for Norway tax breaks

The outlook for the oil market next year has "deteriorated in recent weeks," renowned oil trader Andy Hall told investors in a letter dated Aug 1. that announced the closure of his flagship hedge fund Astenbeck. After losing money earlier this year on bets that oil prices would rise, Hall warned crude supply in 2018 could be more plentiful than he expected just a few weeks ago, according to the letter that was reviewed by Bloomberg News. In the medium term the market "still looks challenging," he wrote.

Renowned oil trader sees worsening oil market outlook

Exploration scientists scouring Earth’s geology for carbon-bearing minerals are endeavoring to remove the guesswork from the process, and they are doing so by deploying strategies from the playbooks of tech giants like Netflix and Amazon, according to a recent report by Reuters.

Explorationists take cues from tech companies like Netflix, Amazon

Oil lost ground in the last few days on slipping OPEC compliance rates and fears of persistent oversupply. But the tightening of the oil market is still proceeding, and there are some signs that the more pessimistic projections about oil prices could be overblown. On Monday, as oil prices dipped, analysts attributed the drop off to the appreciating U.S. dollar. But while the immediate catalyst shifts from day-to-day, the forecast for the next few quarters remains the same: the inventory overhang might not go anywhere because the OPEC cuts are offset by rising production elsewhere.

Supply Risks Could Push Oil Prices Higher This Week | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 08-16-2017

This month’s Drilling Productivity Report (DPR) has two significant changes to improve the coverage and quality of the analysis. First, the DPR is expanding to include the Anadarko region, consistent with DPR’s aim to cover the most prolific and active on-shore regions where oil and natural gas are produced from shales and other tight resources. In the recent years the Anadarko region, which includes 24 Oklahoma and 5 Texas counties, has become the target of many producers using improved drilling and completion technology to this already well-established oil and gas producing basin. As of July 2017, there are 129 operating rigs in the Anadarko region, second to only Permian region with 373 operating rigs.

dpr-full.pdf

The number of North American oil companies shuffling into bankruptcy court has fallen dramatically this year, a new report shows. Fourteen oil producers filed for Chapter 11 bankruptcy protection in the first half of the year, down from 50 in the first six months of 2016, according to Dallas law firm Haynes & Boone.

Oil bankruptcies slow dramatically this year - Houston Chronicle

Andy Hall, the oil trader known to many as "God", said he decided to close his flagship hedge fund amid a deteriorating outlook for prices next year and the “frustrating” dominance of algorithmic traders. A renowned oil bull who shot to fame after Citigroup Inc. revealed that he pocketed $100 million from a single year’s trading, Hall struck a bearish tone in a letter to investors dated Aug. 1, which was reviewed by Bloomberg News.

Oil ‘God’ Blames Weaker Outlook and Algos in His Goodbye Letter - Bloomberg

Two analyst firms have revised upwards their production growth forecasts for the Permian, expecting oil output there to be 300,000 bpd higher by the end of this year. The firms are none other than Wood Mackenzie, whose analysts expect 300,000 bpd more in Permian output by end-2017—a 200,000-bpd increase to its year-end forecast—and Rystad, which sees the cumulative increase for June-December at 300,000 bpd.

Can The Permian Push Prices Down To $40? | OilPrice.com




RE: OPEC, for some quiet moments.. - admin - 08-17-2017

Oil investors are already worrying over the potential fallout when OPEC’s deal to cut output expires, marring emerging signs that the accord to shrink a glut is finally succeeding. Uncertainty about how supplies curbed by OPEC and its allies will be returned to the market in 2018 is clouding the outlook for crude, according to BMI Research. Prices remain vulnerable even though demand is strong, production gains are largely exhausted in Libya and Nigeria, and U.S. shale output is slowing, the unit of Fitch Group said in a report.

OPEC's long-sought success spoiled by 2018 oil supply worry

Oil traded at a three-week low after a forecast on U.S. shale growth added to mounting worries that the rebalancing process is stalling. Futures fell 0.8% in New York after Monday’s 2.5% decline, the biggest drop in more than five weeks. Production at shale fields is forecast to expand to 6.15 MMbpd in September, according to an Energy Information Administration report. This week’s U.S. stockpile report may show that crude inventories declined for a seventh week, according to a Bloomberg survey.

Oil trades at three-week low amid rising shale output

President Donald Trump’s effort to boost U.S. energy is facing push back from manufacturers who say exporting more natural gas may undercut his “America First” jobs focus. The Industrial Energy Consumers of America asked the administration Wednesday for a moratorium on U.S. approvals for liquefied natural gas projects. The trade association, which represents U.S. manufacturers that depend on cheap energy to fuel their factories, sent a letter to Energy Secretary Rick Perry Wednesday.

Trump's push for natural gas exports opposed by manufacturers

U.S. shale oil will prevail over OPEC as the two rivals compete in an oversupplied world market, Citigroup Inc.’s head of research said. The Organization of Petroleum Exporting Countries and its allies may have boosted oil prices by cutting production, but they’re losing revenue in the process and their position “is not sustainable over a long period,” Citigroup’s Ed Morse said in a Bloomberg television interview on Tuesday. On the other hand, U.S. shale drillers have adapted to survive prices as low as $40, he said.

Shale will beat OPEC as U.S. oil thrives at $40, Citigroup says




RE: OPEC, for some quiet moments.. - admin - 08-18-2017

GeoPark Limited and Wintershall Energía S.A., a subsidiary of the BASF group, the fourth-largest gas producer in Argentina with over 15 blocks, have announced the discovery of a new oil field in the CN-V block (GeoPark 50% WI, Wintershall 50% WI) in the Neuquen basin, Mendoza Province of Argentina. The Rio Grande Oeste 1 exploration well – operated by GeoPark - was drilled and completed to a TD of 5,500 ft, targeting the Grupo Neuquen formation, where 15 different potential reservoir sands were identified - at depths that range from 1,800 ft to 5,500 ft - with a potential net pay of 400 ft.

GeoPark, Wintershall strike oil in Neuquen basin, Argentina

Look under the hood of the oil market and one thing becomes apparent -- shale producers seem to be hedging again. Demand for the contracts that producers use to guarantee price levels soared after 2018 West Texas Intermediate crude returned to $50/bbl. At the same time a raft of trades were reported to U.S. regulators last week that showed some producers hedging at levels as low as $45/bbl, according to data compiled by Bloomberg.

Oil market's hidden signals show shale producers hedging again

Continental Resources Inc. surged the most in eight months after record-setting drilling results in Oklahoma prompted the shale explorer to lift its full-year production estimate. Continental shares rose 5.8% to $34.31 at the close in New York, after earlier climbing 9.6% for the biggest intraday gain since November. The advance curbed Continental’s year-to-date decline at 32%.

Continental jumps nearly 10% as gushers boost output

Oil companies offer superior dividend yields at great valuations, according to Porta Advisors' Beat Wittmann. The oil and gas sector of the pan-European Stoxx 600 index is down 10.95 percent year to date. Oil prices could rise by $5 per barrel if larger inventory draws occur next year.

Crude oil sector looks attractive to investors, say experts




RE: OPEC, for some quiet moments.. - admin - 08-19-2017

Saudi Arabia, the world’s biggest crude exporter, shipped the least oil in almost three years in June, just as domestic stockpiles are dwindling. Exports fell to 6.9 MMbpd, the lowest since September 2014, from 6.92 MMbbl in May, according to data Thursday on the Joint Organisations Data Initiative website. Domestic stockpiles stood at 256.6 MMbbl, the lowest since January 2012, the data show.

Saudi crude exports fall just as domestic stockpiles dwindle

Oil held losses near the lowest close in more than three weeks as investors weighed expanding U.S. crude output against an extended decline in stockpiles during a period of strong seasonal demand. Futures were 0.4% lower in New York after falling 4.2% the previous three sessions. U.S. production had its biggest weekly gain since the end of June, climbing to the highest level since July 2015, according to EIA data Wednesday. The increase offset the price impact of an 8.95 MMbbl decline in crude stockpiles, the biggest drop since September.

U.S. oil output climbs to two-year high

When the tanker Provalys left Louisiana for Chile last month with a full load of U.S. liquefied natural gas, it sailed around South America instead of taking a shortcut through the expanded Panama Canal. Not only may the route be cheaper without canal transit fees, but advances in technology mean less of the fuel would end up lost at sea during the journey.

Gas tankers earning more taking scenic routes amid glut

Since oil is priced in dollars, it moves lower when the dollar moves higher and vice versa. The dollar's strength tends to have the same impact on stocks, and when the dollar is lower, stocks often rise alongside oil

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