OEF REVIEW:As oil prices continue to decline, North American exploration and production companies have hedged just 15 percent of their total production volumes for 2016, including 14 percent of oil and 18 percent of natural gas, leaving the companies largely exposed to current depressed market prices, according to new analysis from IHS (NYSE: IHS), the leading global source of critical information and insight.
OEF REVIEW:OPEC oil production has jumped to its highest in recent history in January as Iran increased sales following the lifting of sanctions and its rivals Saudi Arabia and Iraq also boosted supply, a Reuters survey showed on Friday. Rising output in the Organization of the Petroleum Exporting Countries further aggravates the market share battle between top global producers. In the past year this has flooded the market with new barrels, creating one of the worst oil gluts in history and helping send prices to a 12-year low.
OEF REVIEW:Though Syria itself is mostly irrelevant as a trading partner for China, the region’s stability is nevertheless one of Beijing’s core concerns, not only because Iraq is among its main oil suppliers. Beijing’s $900 billion Silk Road initiative aims to connect Asia, the Middle East, Africa and Europe through a wide-ranging infrastructure network. But ongoing fighting and terror attacks are putting this mega-project at risk.
OEF REVIEW:These are the key findings of this report on Canadian oil and energy: 1. Recent developments have highlighted numerous uncertainties for Canada’s long-term energy outlook. 2. In the Reference Case, energy production grows faster than energy use and net exports of energy increase. 3. The levels of future oil and natural gas production are highly dependent on future prices, which are subject to considerable uncertainty. 4. Without development of additional oil pipeline infrastructure, crude oil production grows less quickly but continues to grow at a moderate pace over the projection period. 5. The volume of liquefied natural gas exports is an important driver of Canadian natural gas production growth. 6. Total energy use in Canada, which includes energy use in the energy production sector, grows at similar rates in all Energy Future 2016 cases, and Greenhouse Gas emissions related to that energy use will follow similar tren
OEF REVIEW:Global energy demand will increase 25 percent between 2014 and 2040, driven by population growth and economic expansion, ExxonMobil said today in the 2016 edition of The Outlook for Energy. At the same time, energy efficiency gains and increased use of renewable energy sources and lower carbon fuels, such as natural gas, are expected to help reduce by half the carbon intensity of the global economy.
OEF REVIEW:Three major U.S. shale oil companies have slashed their 2016 capital spending plans more than expected in a bid to survive $30 a barrel oil prices, with one of them saying prices would need to rise more than 20% just to turn a profit.
OEF REVIEW:Saudi Arabia outlined ambitious plans on Monday to move into industries ranging from information technology to health care and tourism, as it sought to convince international investors it can cope with an era of cheap oil. A meeting and presentation at a luxury Riyadh hotel was held against a backdrop of low oil prices pressuring the kingdom’s currency and saddling it with an annual state budget deficit of almost $100 billion.
OEF REVIEW:A change to the North Sea Brent crude oil futures contract will alter the way prices for Brent futures are compared to futures prices for West Texas Intermediate (WTI) crude oil. Beginning January 29, the Brent contract will expire, or rollover to the next month, approximately two to three weeks before expiration of the WTI contract for delivery in the same month. Prior to the change, the Brent contract rollover was only five to seven days ahead of the WTI rollover.
OEF REVIEW:The Great Green Fleet is a Department of the Navy initiative highlighting how the Navy and Marine Corps are using energy efficiency and alternative energy to increase combat capability and operational flexibility. At the close of the ceremony, the Arleigh Burke-class guided missile destroyer USS Stockdale (DDG 106) left the pier to begin its deployment, becoming the first U.S. Navy ship running on an alternative fuel blend as part of its regular operations.
OEF REVIEW:“There is excess supply out there,” the CEO of BP told reporters on Thursday at the World Economic Forum in the Swiss resort. “These are very sharp shocks for countries and the industry. The first mantra of the oil crisis was “lower for longer.” Then “lower for even longer.” Now in Davos, executives are starting to talk—or rather, whisper—about a new nightmare scenario: “A lot lower for a lot longer.”
OEF REVIEW:The Company’s net production target for 2016 is in the range of 470-485 million barrels of oil equivalent (BOE), of which approximately 66% and 34% are produced in China and overseas respectively. The net production targets set for 2017 and 2018 are around 484 and 502 million BOE respectively. The estimated net production for 2015 was approximately 495 million BOE.
OEF REVIEW:With oil prices touching their lowest level since 2003, Dmitry Zhdannikov writes that OPEC officials and deal brokers are looking back nearly two decades and asking whether a behind-the-scenes deal to curb oil output between OPEC and non-OPEC Russia could be struck. He suggests that a paper by Robert Mabro, founder of the Oxford Institute for Energy Studies who helped to broker the 1998 oil deal, could could throw light on the current problem. Mabro wrote at the time: “Changes in policy are always possible, even likely, when significant revenue losses are at stake”.
OEF REVIEW:With oil prices touching their lowest level since 2003, Dmitry Zhdannikov writes that OPEC officials and deal brokers are looking back nearly two decades and asking whether a behind-the-scenes deal to curb oil output between OPEC and non-OPEC Russia could be struck. He suggests that a paper by Robert Mabro, founder of the Oxford Institute for Energy Studies who helped to broker the 1998 oil deal, could could throw light on the current problem. Mabro wrote at the time: “Changes in policy are always possible, even likely, when significant revenue losses are at stake”.
OEF REVIEW:“The energy markets are tanking and are at levels that have not been seen since “The Recession” of 2009. Opinions are divided on the effects of the fall. Some say it is good for consumers, whereas, others say it is bad for the global economy. This article will analyze the overall effects of low crude oil prices on the industry, the major oil-producing nations, consumers and the overall global economy.
OEF REVIEW:The oil tanker that left the Port of Corpus Christi, Texas, late last week is the bearer of the first freely traded U.S. crude in about four decades – made possible by congressional legislation that President Obama signed to end a 1970s-era ban on exports. It’s a new day indeed.
OEF REVIEW:The BP Group’s Chief Economist, Spencer Dale, considers the following questions in his very enlightening paper: What should we make of the shale revolution?, How will the rebalancing of the Chinese economy affect demand?, What are the implications of the dramatic fall in oil prices over the past year or so?
OEF REVIEW:Russian president Vladimir Putin met with Saudi Defense Minister in Sochi on October 11th, while Russian Foreign Minister Sergei Lavrov was holding a meeting with his Saudi counterpart. The parties discussed Syria and agreed upon the necessity to prevent the creation of a terrorist caliphate. The levers of a hypothetical Russian-Saudi deal would be: a rise in oil prices, possibly accompanied by Saudi arms purchases, and on the Russian side, the guarantee that Assad will leave after a transition period, along with some kind of a Saudi “right of scrutiny” on Russian arms sales to Iran.
OEF REVIEW: China’s president Xi Jinping has made major pledges in foreign aid, and Africa will foreseeably benefit greatly from the new packages. Even though developing countries and the development community have welcomed the aid pledges there has been harsh criticism of them from within Chinese society.
OEF REVIEW:“Moody’s defines China’s rebalancing challenge as the need to engineer economic restructuring, policy reform, market liberalization and slower credit uptake with the aim of shifting economic growth drivers away state-led investment – all without sacrificing short-term macroeconomic stability.” “As the authorities are — we believe — prioritizing stability in the current environment, the likelihood of a slowdown in policy reform is increasing,” says Rahul Ghosh, a Moody’s Vice President and Senior Research Analyst.
OEF REVIEW:The International Energy Agency (IEA) considers that South East Asia is moving to the center of the global energy area and is a key pillar for Asia’s growth. This report covers the prospects for energy demand and fossil-fuel supply, as well as priorities for policy makers. There is a special chapter concentrating on Malaysia
