FormulaE-2
  

Hormuz, Malacca, Panama, Suez: Vital To Global Energy Security

02/08/17 •lweb.es/f2911 •bit.ly/2vMoNQz

The inability of oil tankers to transit a major chokepoint, even temporarily, can lead to substantial supply delays and higher shipping costs, resulting in higher world energy prices. While most chokepoints can be circumvented by using other routes – adding significantly to transit time, no practical alternatives are available in some cases. Some chokepoints, furthermore, have restrictions on vessel size. By volume of oil transit, the Strait of Hormuz and the Strait of Malacca are the world’s most important strategic chokepoints, with the Cape of Good Hope route being a potential alternative for certain chokepoints.

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Canadian Heavy Oil Fits Well With Structural Change In The Market

31/07/17 •lweb.es/f2913 •bit.ly/2fqVs7l

Output has fallen in both OPEC and non-OPEC Latin American countries leading refiners even in China to look to Alberta’s oil sands to fill the gap. This interest has boosted the price for heavy Western Canada Select, Canadian heavy oil being an easy substitute for Middle Eastern and Latin American grades. The discount for Canadian oil delivered to the U.S. storage hub in Cushing is around $5 a barrel below U.S. crude. Canadian barrels could supply refineries in Sweeney, Texas, and St. Charles, Louisiana, where Venezuela accounts for the majority of imports.

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Northern Alberta’s Oil Sands Are One More Complication For OPEC

15/07/17 •lweb.es/f2885 •bit.ly/2gM8TPA

Oil sands will be second to shale as the biggest contributor to global supply growth over the next two years with half a million barrels a day of production scheduled to enter the market. The drive for efficiency, along with lower gas prices, has driven the average break-even operating cost on thermal oil sands to less than $10 a barrel from about $15 in 2014, and expanding or building a site requires a price of $50 to $60. Western Canada’s oil sands production will rise by 720,000 barrels a day to 3.12 million in 2020.

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India Interested In DevelopingIndia Interested In Developing Strategic Chabahar Port In Iran Strategic Chabahar Port In Iran

14/07/17 •lweb.es/f2882 •bit.ly/2uEJFYC

India is keen to rapidly develop Iran’s Chabahar Port, a strategic facility that New Delhi hopes will open up opportunities to Indian companies wanting access to Iran, Central Asia, Russia and other regions beyond. Chabahar sits on the Gulf of Oman near the Iranian border with Pakistan and promises India the possibility of direct sea access from its western coast. India, which imports 80% of its crude oil needs, has a long-standing relationship with Iran, especially in the energy sector. India is the second-biggest buyer of oil from Iran, after China.

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Mexico Oil Privatization: Billion-Barrel Zama Discovery

14/07/17 •lweb.es/f2879 •bit.ly/2vllGLI

Mexico’s decision to allow private companies to explore for oil and gas in an effort to reverse the decline in the country’s oil production has started to pay off. The Zama discovery announced by Premier Oil, Sierra Oil & Gas and Talos Energy “is the most important achievement so far of Mexico’s energy reform” and “is one of the 15 largest shallow-water fields discovered globally in the past 20 years.” Estimates of oil in place are 1 billion to 1.5 billion barrels. The government will receive a 68.99 percent profit share from every barrel produced.

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India: $300 Billion Wanted In Oil Investments Over Next 10 Years

13/07/17 •lweb.es/f2884 •bit.ly/2udblTN

“India is the place where there is incremental demand,” Oil Minister Dharmendra Pradhan has said. “Our per capita energy consumption is one-fourth of the world. In India, there is an emerging middle class and they are aspirational. Per capita energy consumption is going to increase. So, we need energy. There is no shortcut around that.” The country needs investments to boost the production of natural gas and crude oil, and to refine, transport and distribute the fuel to households. India’s state-run companies are scouring the world for access to reserves and technology.

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OPEC Needs Higher Break-Even Oil Prices Than Commonly Estimated

13/07/17 •lweb.es/f2878 •bit.ly/2uKAIh8

On simple accounting terms Saudi Arabia, Iraq and Iran can generate profits with oil prices at $20 to $40 per barrel. U.S. shale by contrast requires about $50 to $55 per barrel. If one looks at the fiscal break-even price, OPEC producers require an estimated $70 per barrel this year, higher than the $40 to $60 required by listed energy companies to fund capital expenditure and dividends. With respect to external break-evens, i.e. the oil prices needed to foot import bills, the spectrum is wide: Libya needs $140 a barrel and Norway needing just $20.

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“Shock And Awe” Needed From OPEC To Fend Off Below $40 Oil

11/07/17 •lweb.es/f2883 •bit

Goldman Sachs says that OPEC must increase output cuts aimed at shrinking a global glut with little public announcement in order to jolt investors. Without such action and no evidence of sustained declines in inventories as well as U.S. drilling activity, prices could slump below $40. “We continue to believe that there is another opportunity for OPEC to increase the cuts, but that this should be done in a “shock and awe” manner, with little public announcement.” Deeper cuts are currently not on the agenda, according to OPEC Secretary-General Mohammad Barkindo.

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Future US Offshore Development Plans To Bring Vast Energy Wealth

05/07/17 •lweb.es/f2877 •bit.ly/2tgGGSH

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.

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France: All New Oil And Gas Exploration To Be Banned

06/24/17 •lweb.es/f2872 •bit.ly/2upNQbl

France is to stop granting licences for oil and gas exploration as part of a transition towards environmentally-friendly energy. Nicolas Hulot, the “ecological transition” minister said a law would be passed in the autumn.​ ​French President Emmanuel Macron said he was opposed to exploration for gas and favoured a ban on fracking during his election campaign, particularly in the overseas territory of French Guiana. Around 75 per cent of France’s electricity is currently provided by nuclear power stations… a law was passed last year, however, to reduce the nuclear proportion to 50 per cent by 2025.

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OPEC Cuts Still Aren’t Having Enough Of An Impact

06/20/17 •lweb.es/f2870 •bit.ly/2tRQ5Bc

Oil traders are storing more oil at sea amid swelling output in the Atlantic region, a sign the market is far from the kind of re-balancing that OPEC would have hoped for. The amount of oil stored in tankers reached a 2017 high of 111.9 million barrels early June, and higher volumes of storage in the North Sea, Singapore and Iran account for most of the increase. Oil in floating storage has been building at a rate of about 800,000 barrels a day since early May and continues to increase, said a Morgan Stanley report.

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