OilPrice.com (143)

Big Oil Nervous As Venezuela's Maduro Seizes More Power

The pro-government constitutional assembly loyal to Venezuelan President Nicolas Maduro seized the powers of the opposition-led congress today, in a move that necessarily has Big Oil nervous that Trump will make good on his economic sanctions threat. Maduro's bold political move on Friday means ...

Norway Removes Greenpeace Ship From Statoil Arctic Drill Site

Norway's coast guard has removed Greenpeace protestors from a safety zone near Statoil drilling operations in the Korpfjell field of the Barents Sea, according to a new report in the Maritime Executive. The protestors used kayaks to infiltrate a 500-meter exclusion zone around the Songa Enabler on ...

How To Play The Imminent Rebound In Oil Prices

In my last column, I pointed out the lockstep insanity being followed by US oil companies in increasing production, no matter whether or not the end product was profitable in today's depressed oil market. Happily, I was also seeing an end to that destructive strategy, with several independent E+P's ...

Weakness In This Stock Defies Logic

One of the most common mistakes made by traders and investors is the assumption that the market that they are in is logical. They think that, with all the money at stake and all the high-powered minds devoted to trading, the price of anything must reflects a sober consideration of all factors. In ...

Are Crude Inventories Falling Fast Enough?

Friday August 18, 2016 In the latest edition of the Numbers Report, we'll take a look at some of the most interesting figures put out this week in the energy sector. Each week we'll dig into some data and provide a bit of explanation on what drives the numbers. Let's take a look. 1. Shrinking ...

Global Energy Advisory 18th August 2017

British Columbia's government, in keeping with its election promise, has moved to stop the expansion of the Trans Mountain oil pipeline that would have catered to the growing production of crude oil from the oil sands in Alberta, transporting the crude to Canada's west coast and opening up new ...

Are We Looking At A Trend Reversal For Crude?

The fundamentals have been light this week, but prices have been active. This is because of the increased volatility in other financial markets, specifically the stock market and the U.S. Dollar. Fundamentally, U.S. inventories continue to fall, but output continues to rise. As far as OPEC is ...

Oil Prices Lag In Spite Of Strong Inventory Draws

-Global crude oil inventories are drawing rapidly. US crude supplies have dropped from 536m on in late March to 466m as of last week implying average daily draw downs of 518k bpd over the last 4.5 months. By contrast, US crude stocks only fell by about 11m bbls during the same period in 2016 and the ...

Iran Seeks 500,000 Bpd Oil Swap With Caspian Countries

Iran is ready to swap 500,000 bpd of oil with its fellow Caspian Sea countries, Iranian Fars news agency reported on Friday, quoting a senior official.  According to Hamid Hosseini, head of the North department at Iranian Oil Pipeline and Telecommunication Company, a 272-km pipeline has been built ...

Huge Chinese Refinery Fire Did Not Impact Operations

Firefighters have managed to extinguish a massive fire that broke out at state-run PetroChina's 410,000-bpd refinery earlier this week, narrowly avoiding a halt in oil processing operations. The blaze at the Dalian refinery, one of China's largest, raged for hours and was caused by a broken seal on ...

Oil Prices Boosted By String Of Bullish News

Friday, August 18, 2017 Oil prices rose on Friday afternoon amid a flurry of bullish news. A sign that traders are regaining confidence in the market.  Oil prices fell significantly this week, although they regained some ground on Friday. Reports of weak Chinese demand deflated the market, but a ...

Oil Prices Climb As Oil Rig Count Drops

The number of active oil and gas rigs in the United States fell this week by 3 rigs as drillers in the United States proceed more cautiously as oil prices fail to sustain any significant increase. Combined, the total oil and gas rig count in the US now stands at 946 rigs, up 455 rigs from the year ...

Climate Change Opens Up Shorter Arctic Passage For LNG

The Cristophe de Margerie, an LNG carrier commissioned by French Total, has become the first tanker to pass the Arctic unaided and is now en route to its destination in Asia, the South Korean port of Boryeong, Total said as quoted by AFP. The route via the Bering Strait in the Arctic is 15 days—or ...

New Congo Govt Eyes 25% Oil Output Boost By Next Year

The prime minister and cabinet of Congo resigned on Thursday amid economic turmoil related to three years of low oil prices, according to reports emerging from the region, but the incoming government is poised to increase oil production by one-quarter in 2018. PM Clement Mouamba submitted his ...

Chevron Folds In Landmark Australia Tax Lawsuit

Chevron has settled with the Australian Tax Office in a lawsuit seeking penalties against the oil major for tax evasion. The size of the settlement has not been officially disclosed but media reporting on the news estimate it could be over US$790 million . As a result, the supermajor dropped an ...

These Oil Giants Just Jumped Into A Brand New Market

In a sign that Mexico's energy reform continues to attract foreign companies, Chevron and Glencore have announced separate plans for jumping into the Mexican retail fuel market, joining other big international majors in competing in Mexico's newly-liberalized energy sector. U.S. supermajor Chevron ...

Venezuelan Oil Tanker Trapped In US Waters With No Credit

A Suezmax tanker carrying about a million barrels of Venezuelan crude oil has been sitting near the Louisiana coast for a month now, awaiting a letter of credit to start unloading, according to sources who spoke to Reuters. The Karvounis, chartered by Trafigura, carries crude for PBF Energy and the ...

Even if US Sells LNG For Free, It Can't Replace Russia in Europe: Moscow

In the latest round of saber-rattling between Russian natural gas suppliers and their American counterparts, Vladimir Chizhov, Moscow's envoy to the European Union, has said the United States could not replace Russian natural gas supplies to Europe, even if suppliers gave it away for free. " policy ...

Chinese Energy Conglomerate Begins Talk to Buy Rosneft Shares

A Chinese energy conglomerate is in early talks to buy a stake in Russian energy giant Rosneft, according to exclusive sources who spoke to Reuters. Senior executives at both firms have begun negotiations regarding a deal, the sources told the news agency. Already, CEFC China Energy chairman Ye ...

Russia, Iran, Turkey Form $7B Oil Deal

Turkish energy company Unit International, Russia's Zarubezhneft, and Iran's non-governmental firm Ghadir Investment Company have pledged to invest a combined US$7 billion to drill at three oil fields and one natural gas field in Iran, the Turkish company said on Tuesday. The investment ...

World's First Floating Wind Farm Close To Launch

The world's first commercial-scale floating wind farm is about to start production after the delivery of the fifth and final turbine to the site of the farm, Buchan Deep, off the coast of Scotland. In the following weeks, final installations will be done at the site and the farm will be ready for ...

Are Investors Bailing On U.S. Shale?

U.S. oil production continues to grow, with the EIA reporting a shocking jump in output last week. Total U.S. production rose to 9.5 million barrels per day for the week ending on August 11, up 79,000 bpd from a week earlier. That puts U.S. output at the highest level in nearly two and a half years. ...

The Make Or Break Moment For Argentina's Shale Boom

Argentina's abundant shale resources have attracted a growing number of major international companies since the beginning of this year—all of them interested in developing the prized Vaca Muerta shale formation; but mid-term elections are making everyone nervous, and a change in the current ...

Alaska's Conflicted Oil Future

Alaska, the final frontier, may be the next oil industry goldmine thanks to aggressive drilling, changing environmental policies, and a bullish administration. Not all Alaskans, however, are on board with the transition, and the issue is now more divisive than ever. Take for example, the polemic ...

Angolan Oil Confident Ahead Of Critical Elections

After Angola's critical elections, the oil will still flow, unabated—despite talk of a potential opposition upset. Angola is—on any given day—Africa's first or second-largest producer. In recent months, it's been the second largest, but late last year and early this year, it had overtaken ...

Supervolcanoes Could Drive The Electric Car Boom

U.S. scientists say they have discovered a new source of lithium, a key element in the manufacturing of battery-powered electric cars and other renewable energy technologies: supervolcanoes. In a study published today in Nature Communications, the team at Stanford University say lake sediments ...

Citi: U.S. Shale Beats OPEC At $40 Oil

Citigroup has said that U.S. shale will prevail over OPEC because of its higher resilience to low prices and OPEC's losing strategy of cutting output and losing revenues and market share. Citigroup's head of commodity research, Ed Morse, told Bloomberg in an interview that OPEC and its partners ...

Buffett Won't Go Higher than $9B For Oncor Utility Giant

Berkshire Hathaway Energy is standing by its US$9-billion offer to buy 80 percent of Texas-based Oncor Electric Delivery Company and will not be raising the offer, Warren Buffett's company said on Wednesday. The statement comes amid a bidding war with Elliott Management for Oncor's parent ...

Oil Prices Rise As Saudi Exports Hit 33-Month Low

Saudi Arabia's crude oil exports in June dropped to their lowest level in 33 months, while Saudi oil inventories were down to a level last seen in early 2012, according to data by the Joint Organizations Data Initiative , suggesting that Saudi exports had likely further dropped in July and continue ...

OPEC Rebel Ecuador To Cap Oil Output 20,000 BPD Higher

One month after abandoning the OPEC production cut deal and shaking the alliance, Ecuador said this week that it was planning to cap its crude oil production at the current level of 541,000 bpd so as to not undermine the cartel's cuts too much.   In the middle of July, Ecuador's Oil Minister Carlos ...

Australia's Natural Gas Crisis Could Boost Prices

I wrote a few months back about major problems shaping up in Pacific natural gas markets. With key liquefied natural gas exporter Australia threatening to restrict outgoing shipments due to looming domestic shortages.  And this week a couple more key developments came down in this unfolding ...

Ukraine Billed For Gas To Pro-Russian Separatists

Gazprom has been supplying natural gas to pro-Russian separatist territories in eastern Ukraine and charging Kyiv's state-owned company Naftogaz for it, Ukrainian UAWire reported, citing figures from the Russian company. Indeed, in its second-quarter report, Gazprom has included 1.389 billion cu m ...

Russia Claims To Have Invented Alternative To Fracking

Russian scientists and local oil field services companies claim to have created a technology for thermochemical gas fracturing that could be an alternative to hydraulic fracturing and could increase oil production by between 1.7 and 6 times, Russia's news agency RIA Novosti reports, citing the ...

China Won't Reach Peak Energy Demand Till 2040

China will not reach peak energy demand until the year 2040, according to a new report from the China National Petroleum Corp on Wednesday. Previous estimates said the peak would be reached in 2035, but new figures suggest that five years later, demand would be its highest at 4.06 billion tons of ...

Who Is Leading The Gold Rush?

Here's something few investors know: The gold mining industry is massively depleting its reserves, not finding new deposits fast enough, and could be on the cusp of its most profitable turning point ever. Gold mine supply will peak in 2019 and continue falling through at least 2025, according ...

Manufacturers Say Trump Nat Gas Export Push Betrays 'America First'

An industrial trade group is arguing that the White House's push to increase American natural gas exports works against the America First' agenda President Donald Trump promised the electorate in his campaign last year, according to a new report. It's inconsistent with President Trump's fair trade ...

Nigeria Announces $41 Billion Rail Upgrade

The Nigerian railroads are getting a facelift as part of the national plan to diversify away from an economy in which the oil industry dominates, according to the African country's transport minister. The plan we have now will go to every nook and corner,' Transport Minister Rotimi Amaechi said in ...

Transocean Seals Biggest Offshore Oil Deal Since Crash

In what's the biggest M&A deal in oil since the 2014 price crash, Transocean has agreed to buy Norwegian sector player Songa Offshore for U$1.1 billion, to be paid in stocks and convertible debt. The target company's enterprise value including debt is US$3.4 billion, and the acquisition ...

The Single Biggest Bullish Catalyst For Oil

One of the key objectives for OPEC is to bring down inventories, a goal that has been elusive this year. But if the oil futures curve is anything to go by, the oil market is showing signs of tightening. Brent futures have recently begun to exhibit a state of backwardation, which is when near-term ...

The Strategic Petroleum Reserve Is Slowly Dying

Forty years ago, in the wake of the Arab oil embargo that made the United States acutely aware of just how dependent its economy was on imported crude, the government set up the Strategic Petroleum Reserve in a bid to make sure there were no repeats of the painful shortages the embargo caused. Now, ...

Has Gulf Of Mexico Production Peaked?

Amid strong indicators that U.S. shale production will reach new heights by the end of 2017, efforts to promote further exploration and production in the Gulf of Mexico, long a center of U.S. energy output, have run into some headwinds. Some even doubt that Gulf production, much of it from expensive ...

Will EV's Break The Grid?

While the UK government has vowed to end the sale of all new conventional gasoline and diesel cars by 2040, as part of a wider plan to fight air pollution, there is talk that electricity demand will lead to a fast and dirty response to a strained power grid. But here's what everyone's missing in ...

Turkey Expands Influence In Kurdish Energy Sector

Over the past 12 years, Turkish energy companies have moved into the Kurdish energy sector at great pace in line with the sector's rapid expansion under the semi-independent government in Erbil. Energy cooperation between the Kurdistan Regional Government and the Turkish government is the single ...

New Iraq JV With Arab States Eyes Global Oil Trade

A new joint venture between Iraq and its Arab partners will allow coordinated transport, storage and trade of crude oil and refined products around the world, according to a new report by Reuters. The move comes as Iraq becomes increasingly active in developing new channels for the sale of its oil ...

Analysts See OPEC Compliance Erode In H2 2017

OPEC's compliance with the output cuts will continue to slip in the second half this year, despite recent rhetoric reiterating the cartel members' commitment to stick to the production quotas, according to JP Morgan. More positive overtures from the Saudi Arabian and Iraqi Energy Ministers on their ...

This Key Gold Producer Sees Its Production Slump

The gold price has been showing strength this past week. Once again pushing toward $1,300 per ounce.  And news from one of the world's key producing countries may help support that drive.  That's Ghana. Where government officials said over the weekend that recent regulatory changes are about ...

Will Oil Demand Growth Be Enough To Tackle Inventories?

Two articles in the Financial Times this week give polar opposite views on the direction for oil prices next year. The first is a report on bets taken by the highly successful hedge fund manager Pierre Andurand on the direction for prices. Andurand is predicting prices will rise above $100 per ...

Trump Speeds Up Oil, Gas Pipeline Approval Process

With an executive order signed yesterday, President Donald Trump has set out to speed up the approval process for major infrastructure projects, including oil and gas pipelines. The central tenet of the order is the One Federal Decision policy, to replace previous legislation requiring a string of ...

Accounting Firm To Pay $6.2M In SEC Oil Audit Charges

Accounting firm KPMG has agreed to pay more than US$6.2 million to settle SEC charges that it had overlooked grossly overstated values of the assets of an oil and gas company, the U.S. Securities and Exchange Commission said on Tuesday. Tennessee-based Miller Energy Resources hired KPMG as an ...

Oil Prices Rise On Hefty Crude Inventory Draw

Another week, another draw – this seems to be the refrain this driving season, with the API and the EIA in sync with their weekly figures most of the time. This week has been no exception, with the EIA reporting a hefty draw in U.S. commercial oil inventories a day after the API surprised analysts ...