British Petroleum CEO says flood of crude means “sharp shocks” lweb.es/f757
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:“Hydraulic fracturing remains a highly contentious public policy issue because of concerns about the environmental and health effects of its use. This Critical Issue Paper is written as a primer for the general public, journalists, and even resource professionals who may have difficulty finding objective, credible information about hydraulic fracturing of shales and other unconventional sources and related environmental concerns.
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:“If there is a war confronting Iran and Saudi Arabia, oil could overnight go to above $250, but decline [back] down to the $100 level,” (…) “If they attack each other’s loading facilities, then we could see oil spike to over $500 and stay around there for some time depending on the extent of the damage.”
OEF REVIEW:Oil prices crashed 6 percent on Friday to close below $30 a barrel for the first time in 12 years, resuming this year’s breathtaking rout as Chinese stock markets fell further and traders braced for an imminent rise in Iran’s exports.
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 International Energy Agency’s Monthly Oil Report provides an overall view of the state of the international petroleum market and projections for oil supply and demand 12-18 months ahead. These are the IEA’s highlights of the current report.
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: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
OEF REVIEW:The world’s largest independent refiner, Valero Energy, which has 15 petroleum refineries with a combined throughput capacity of approximately 2.9 million barrels a day, plus 11 ethanol plants and a wind farm, presented its second quarter 2015 business update: – Earnings per share from continuing operations of $2.66 versus $1.22 in the second quarter of 2014. – Refineries operated at 96% throughput capacity utilization. – Advances made in capital investments designed to increase the company’s ability to access and process more North American crude oil. 
OEF REVIEW:Prime facilities for the “Power of Siberia” gas pipeline, the world’s most expensive contract, are to be completed on schedule in 2018 and will make it possible for Russia to supply natural gas from the Irkutsk and Yakutia gas production centres to the Russian Far East and China. It will also develop gas infrastructure and boost economic growth in the eastern part of Russia.
OEF REVIEW:This Energy Information Administration (EIA) presentation for the October 2015 Oil and Money Conference covers the following questions: 1) What are the key cyclical and structural factors driving oil demand? 2) How is demand changing in developing countries? 3) To what extent will a prolonged period of low prices result in a return to higher demand growth? and 4) How is the landscape of oil trading changing with the decreasing presence of key financial institutions? Note for the article: CAFE = Corporate Average Fuel Economy.
OEF REVIEW: Oil and gas hedging protections for North American exploration and production companies will fall in 2016 to 11% of total production volumes leaving many companies at a high risk of financial stress. For the remainder of 2015 such companies have 28% of production hedged.