More Of The National Petroleum Reserve-Alaska To Be Opened Up

25/10/17 • •

The U.S. Interior Department will hold a lease sale for land in a federal reserve in northern Alaska to oil and gas drillers. The sale, to be held in December, will involve 900 tracts in part of the National Petroleum Reserve-Alaska. The U.S. Geological Survey said in 2010 that the NPR-A holds about 896 million barrels of undiscovered oil. A further 200 million barrels has been discovered in areas that have been explored. The reserve also contains large amounts of natural gas. Environmentalists, however, have been critical of drilling in the Alaskan wilderness.

Pipeline To Mexico’s West Coast To Export U.S. Gas?

20/10/17 • •

America’s drillers are looking for a cheaper and quicker route to Asian markets than the Panama Canal. And this is where Mexico comes in… Aldo Flores, Mexico’s deputy energy secretary has said that the government is in talks with shale drillers in West Texas about a potential pipeline that would send their gas straight to Mexico’s west coast, where it could then be liquefied and shipped overseas. While Mexico doesn’t have a concrete plan yet, there’s “a lot of interest,” indicated Flores, “It makes total sense for West Texas gas producers.”

Iranian Oil Minister: Let American oil firms into Iran

17/10/17 • •

Iran’s oil minister, Bijan Zanganeh, has said that President Trump should allow American oil firms to do business in the Islamic Republic: “If they want to, we are ready to negotiate American companies about development of oil and gas resources,” adding “We have not closed doors” to American companies, reported Iran’s state-run IRNA news agency. President Trump has refused to re-certify Iran’s compliance with the nuclear deal with world powers, and criticized Europeans for their participation in Iran’s energy projects. French oil giant Total SA has entered the Iranian market following the deal.

Vitol: Shallow Market With Moments At $60 And In $40s

10/10/17 • •

According to Ian Taylor, the head of oil trader Vitol, U.S. oil output could have a spike in 2018 before growth flattens for a number of years. Vitol expects U.S. output to climb by 0.5-0.6 million barrels per day next year but the increase would cause cost inflation and make some production loss-making. The anticipated slowdown in U.S. output combined with robust growth in global demand for oil should push prices above the current range of $50-60 per barrel, Taylor said. Vitol has sold most of its oil in storage as it believes the market is tightening.

Sinopec: “Our Refining System Really Likes U.S. Crude”

27/09/17 • •

“U.S. crude is becoming more and more popular,” said the world’s biggest refiner Sinopec. There are three reasons for Asian oil buyers’ interest in U.S. crude: first, it fits the configuration of Asian refineries, which like to process high quality so-called light sweet crude that yields more petroleum products such as gasoline and diesel. Second, it’s cheap, with WTI trading at times at a steep discount to other oil benchmarks. Third, the cargoes are bought on a spot basis, giving refiners flexibility to complement their more traditional Middle Eastern supplies that are sourced via long-term contracts.

Future US Offshore Development Plans To Bring Vast Energy Wealth

05/07/17 • •

The Trump administration is beginning work on a new five-year offshore oil and gas leasing plan – the federal blueprint for future offshore development – in the Atlantic and Pacific Oceans, the Eastern Gulf of Mexico and the Arctic. This is a redo of the Obama administration’s programme for 2017-2022 and seeks public input before officials begin drafting proposals. Currently, 94 percent of federal offshore acreage is off limits to development, with natural gas and oil production being hindered by a lack of access to areas controlled by Washington.

U.S Oil Exports Surge And Complicate Market Rebalancing

06/18/17 • •

US crude exports averaged more than 1 million barrels a day in April, driven by the significant discount of US crude prices relative to global benchmarks. New infrastructure, like the 520,000 barrels a day Dakota Access Pipeline, has reduced costs to move crude to the Gulf Coast, while major projects are underway at US Gulf Coast ports that will increase the region’s export capacity. These outward flows have served as an outlet for rising US crude production and have displaced other barrels that have struggled to then find a home.

Three Key Factors That Are Changing The Oil Trade

05/17/17 • •

This article considers three principal drivers for the oil trade: technology, weather and OPEC policy: • Fracking technology is highly influential: The graphs “Crude oil historical patterns”, showing changes over the last 5 years compared to the last 15 and 30 years, and the graph “US Crude oil production” from1983 to 2017, show the relevant impact.• Extreme weather: A growing number of weather events costing $1 billion have been experienced, as well as significant losses in production. • OPEC strategy is less effective now… The graphic “Does OPEC policy influence prices anymore?” asks a very pertinent question.

China’s LNG Growth: The U.S. Is Keen For A Slice Of The Pie

05/14/17 • •

A new agreement between the U.S. and China has the potential to alter global LNG trade, opening the door of the world’s largest LNG growth market to the world’s fastest-growing LNG supplier. Falling under the framework of the U.S.-China Comprehensive Economic Dialogue, Chinese companies can now negotiate long-term contracts to source liquefied natural gas from U.S. suppliers. According to Wood Mackenzie: “The wider agreement represents a win for both sides. It allows President Trump to deliver on his pledge of redressing global trade imbalances and China to show its commitment to becoming an equal trade partner.”

Lavrov-Tillerson Meeting With Putin: Frank And Extensive Talks

04/14/17 • •

Key points from the Lavrov-Tillerson meeting with Putin in Moscow: When Moscow and Washington cooperate, the world benefits, Both nations are focused on an uncompromising war on terror, Both nations share a common interest in achieving a political settlement in the Syrian conflict, Moscow can see Washington’s readiness to continue contacts to implement the Minsk agreements, Washington and Moscow agree that North Korea has to be denuclearized, Russia expects the United States to take part in the Moscow conference on Afghanistan in April, Both nations are interested in close cooperation in the fight against crimes in cyberspace.

New U.S. Clean Coal Power Plants: Carbon Capture For Oil Fields

04/13/17 • •

“While the Petra Nova project will certainly benefit Texas, it also demonstrates that clean coal technologies can have a meaningful and positive impact on the nation’s energy security and economic growth,” said Energy Secretary Rick Perry. The opening of the plant will be followed by the opening of the Mississippi Power carbon capture coal plant, an entirely new advanced integrated gasification power plant that uses a different technology to Petra Nova. Both coal plants sell their captured carbon for use in nearby oil fields.

Citgo: PDVSA Made Lien In Exchange For $1.5 Billion Loan From Rosneft

04/11/17 • •

A deal to give Russia’s Rosneft 49.9% ownership of US refiner Citgo if Venezuela’s cash-strapped national oil company PDVSA defaults on its loans threatens US national security and should be investigated by the Committee on Foreign Investment in the United States, two US congressmen have said. “This would give Russia clear control over the sixth-largest refinery in our country, the ability to impact gas prices for the American people, and a strategic advantage over US freedom of action globally,” Representative Jeff Duncan, Republican-South Carolina, said in a statement.

More Export Destinations For U.S. Crude In 2016

03/29/17 • •

Due to a surge in oil hedges, the oil-price weakness will not prompt US producers to pull back on drilling. The producers rushed to lock in oil prices above $50 a barrel after the OPEC production cuts announcement in November, and will use hedging gains to help plug any budget deficits caused by sub-$50 spot prices. However, most of the hedges expire by 2018, and oil futures prices must recover before producers can lock in prices over $55 a barrel for next year – a level needed for significant tight-oil production growth.

Trump’s “Energy Independence” Order: Both Uncertainty And Opportunity

03/28/17 • •

President Trump has issued an executive order to dismantle the Obama administration’s Clean Power Plan. The “Energy Independence” order lifts a moratorium on federal coal leasing, triggers a review of methane and hydraulic fracturing restrictions, and eliminates use of the Environmental Protection Agency’s “social cost of carbon” in policymaking. From a climate action perspective, there is widespread agreement that the order is bad news for U.S. emissions. Interestingly, 62 percent of Trump voters support taxing and/or regulating pollution causing global warming, and nearly three-quarters think the U.S. should use more renewable energy in future.

“Shale 2.0”: Shale Drilling Turned From Art Into Science

03/21/17 • •

Exxon Mobil, Royal Dutch Shell and Chevron plan to spend a combined $10 billion this year in American shale. If successful, they’ll scramble the U.S. energy business, boost American oil production, keep prices low, and steal influence from big producers. Furthermore, they are transforming shale drilling into a more economical operation. At Bongo 76-43, Shell is drilling five wells in a single pad for the first time, each about 20 feet apart, and is now able to drill 16 wells with a single rig every year, up from six in 2013.

Oil At $40 No Problem: Hedging As A Shield

03/20/17 • •

American oil explorers are shrugging off the 14% slide in prices this year. The price would have to drop to the $30s or lower to dent the bottom line of many drillers now working U.S. shale fields. That’s because many producers have already locked in future returns with financial contracts that guarantee the price of their oil for most of the rest of the decade. “We’re in a boom again in Texas…” said Michael Webber of the University of Texas’ Energy Institute in Austin. “The cowboy spirit is back. Hedging is playing a big role.”

A Shale Boom For Alaska’s North Slope?

03/09/17 • •

A pioneer of the U.S. shale revolution, Paul Basinski, wants to take fracking to America’s final frontier – Alaska. His venture, Project Icewine, has gained rights to 700,000 acres inside the Arctic Circle and they could hold 3.6 Billion barrels of oil, rivaling the legendary Eagle Ford. “The oil is there,” he said, “Now it’s a question of how quickly we can get it to flow and whether we can get the economics to work.” One exploratory well has been drilled, he added, and a second is planned by mid-year.

U.S. Natural Gas Pipeline Projects Certificated In 2017

03/07/17 • •

Last year the Federal Energy Regulatory Commission (FERC) certificated 17.6 billion cubic feet per day of new natural gas pipeline capacity, and so far this year the Commission has certificated more than 7 Billion cubic feet per day. The seven projects certificated during the first few weeks of 2017 include more than 1,500 miles of natural gas pipeline construction and expansions. The pipeline projects are concentrated in the eastern half of the United States to improve access to markets for growing eastern natural gas production, and they have projected 2017 and 2018 in-service dates.

Gulf Of Mexico Lease Sale To Reduce Dependence On Foreign Oil

03/06/17 • •

73 million acres offshore Texas, Louisiana, Mississippi, Alabama, and Florida will be offered for oil and gas exploration and development. The proposed lease sale scheduled for August this year would include all available unleased areas in federal waters of the Gulf of Mexico, and is part of President Trump’s plan to make the United States energy independent. The estimated amount of resources projected to be developed as a result of the proposed lease sale ranges from 0.211 to 1.118 Billion barrels of oil and from 0.547 to 4.424 Trillion cubic feet of gas.