FormulaE-2
  

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.

Details

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.

Details

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.

Details

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.

Details

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.

Details

“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.

Details

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.

Details

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.

Details

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.

Details

Oil Could Drop To $30 In 2018 If OPEC Fails To Deepen Cuts

06/20/17 •lweb.es/f2868 •bit.ly/2tO2asx

The price of oil could fall to $30 next year and stay at that level for about two years, according to Fereidun Fesharaki, chairman of consultants FGE. He said that the current level of cuts implemented by OPEC should keep the oil price around $50 a barrel for the remainder of 2017, but a failure to deepen these cuts would lower prices. Fesharaki stated that the key question was whether there was a limit to US Light Tight Oil production, or whether a boom in shale oil production in Argentina would occur.

Details

BP’s Bob Dudley: Long-Term Energy Market Shifts Underway

06/20/17 •lweb.es/f2862 •bit.ly/2su8Itg

According to the 2017 BP Statistical Review, rapid growth and improving prosperity mean growth in energy demand is increasingly coming from developing economies, particularly within Asia, rather than from traditional markets in the OECD. However, the drive to improve energy efficiency is causing global energy consumption overall to decelerate. Global carbon emissions are improving, and this can be traced back to the changes in the pace and pattern of economic growth and energy consumption within China. Globally, wind and solar power grew strongly, accounting for almost a third of the increase in primary energy last year.

Details

U.S Oil Exports Surge And Complicate Market Rebalancing

06/18/17 •lweb.es/f2869 •bit.ly/2ueR2Gg

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.

Details