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GCC budget breakeven oil price creeps up

Posted on 17 April 2014 by VRS  |  Email |Print

Budget breakeven oil prices in most Gulf Arab producers are creeping upwards, as governments continue to push through investment stimulus programs despite flatter production. The budget breakeven price is a useful tool to understand what price of oil is needed to ensure that a budget is in balance for a given level of government spending.
Breakeven prices for Gulf states shot up from an average of USD 43.2 per barrel in 2007 to USD 78.8 by 2011 in the wake of the Arab Spring, as governments unleashed billions of dollars of investment to appease their populations………………………………………..Full Article: Source

Angola is moving into oil’s big leagues as it leaves decades of war behind

Posted on 17 April 2014 by VRS  |  Email |Print

After decades of sporadic growth and political turmoil, Angola is on the verge of catapulting to the top ranks of the world’s energy economy following major deep-water production investments by several top global oil companies.
France’s Total announced that it planned to proceed with a $16 billion ultra-deep-water project 160 miles off Angola’s northern coast to begin production in 2017. About 185 pipelines located 6,200 feet beneath the ocean will connect 59 wells in six oil fields. Advances in drilling technology have enabled primarily large oil companies to produce oil and gas from reserves 4,000 to 5,000 feet underwater, an impossible task a mere generation ago………………………………………..Full Article: Source

U.S. oil Independence by 2020?

Posted on 16 April 2014 by VRS  |  Email |Print

Forecasts that the USA will achieve zero net oil imports by 2020 appear to be on-track. While the U.S. Energy Information Administration (EIA) and a number of media pundits (notably on the left side of the political spectrum) take a more cautious — or even downright negative — view, the US-EIA’s own data gives good reason for hope.
Between 2006 and 2013, the United States cut its net imports in half. If this trend continues, zero net imports will occur in late 2019 or early 2020………………………………………..Full Article: Source

Global oil supplies jump

Posted on 16 April 2014 by VRS  |  Email |Print

Global supplies jumped by 600 kb/d in February to 92.89 mb/d, led by a significant rise in OPEC crude output of 500 kb/d. Compared with a year ago, February production stood 2.03 mb/d higher, with non-OPEC supply up by 2 mb/d and OPEC crude output nearly unchanged (-5 kb/d).
Non-OPEC oil production rose by 100 kb/d to 55.9 mb/d in February, led by marginally higher output in Canada and the US. Output barely rose outside of North America, with a meaningful rise occurring only in Latin American countries, most notably Colombia………………………………………..Full Article: Source

Iran’s oil exports continue to surge despite sanctions cap: IEA report

Posted on 16 April 2014 by VRS  |  Email |Print

Irans global crude oil exports have far-exceeded the one-million barrel-per-day cap set by the West. The Israeli paper referred to a recent IEA report as saying that Irans global oil exports in February made the highest record since June 2012.
The IEA’s monthly report revised February’s global crude imports from Iran upwards by 240,000 barrels per day to 1.65 million barrels per day, the highest since June 2012………………………………………..Full Article: Source

Why Angola may be the next OPEC Darling

Posted on 16 April 2014 by VRS  |  Email |Print

French energy company Total said it was sinking $16 billion into oil projects off the coast of Angola. The French major is following the bread crumbs offshore Angola and now the country aims to re-establish itself as a major oil player by courting investors to onshore fields.
Total said it made a final investment decision to develop the deepwater Kaombo project off the coast of Angola. High costs had delayed the decision, though Total now says it could produce as much as 230,000 barrels of oil per day once operations begin in 2017………………………………………..Full Article: Source

OPEC says Azerbaijan’s oil production to rise by end-2014

Posted on 16 April 2014 by VRS  |  Email |Print

OPEC predicts Azerbaijan’s oil production to amount to 0.87 million barrels per day (bpd) on average in 2014, Azernews reported on April 14. OPEC’s April oil market report said the production in the country will reach 0.89 million bpd in the fourth quarter as the highest production level of the year.
OPEC estimates the country’s oil production in the first quarter of 2014 was steady at 0.83 million bpd. In the second quarter, Azerbaijan’s oil production is predicted at 0.86 million bpd, in the third quarter at 0.88 million bpd, in the fourth quarter at 0.89 million bpd………………………………………..Full Article: Source

Is natural gas no better than coal?

Posted on 16 April 2014 by VRS  |  Email |Print

A new study by scientists from Purdue and Cornell suggests that the methane emissions from shale gas could be much higher than previously thought. The study, published in the Proceedings of the National Academy of Sciences, looked at fugitive methane emissions in Pennsylvania by flying an airplane over drilling sites and collecting samples. What they found was a bit unnerving.
“It is particularly noteworthy that large emissions were measured for wells in the drilling phase — in some cases 100 to 1,000 times greater than the inventory estimates,” said Purdue chemistry professor Paul Shepson………………………………………..Full Article: Source

IEA official predicts global oil demand to hit 92.7 mln bpd

Posted on 15 April 2014 by VRS  |  Email |Print

International demand for oil in 2014 is expected to reach 92.7 million barrels per day (bpd), including 8.1 million from the Middle East, said a senior official of the International Energy Agency (IEA) here on Monday.
In a working paper presented during the first session of the 3rd Kuwait Oil and Gas Summit and Exhibition, Director for Energy Markets and Security at the International Energy Agency (IEA) Keisuke Sadamori said China would become the world’s leading oil importer by 2030………………………………………..Full Article: Source

UAE support for oil price as demand picks up

Posted on 15 April 2014 by VRS  |  Email |Print

Oil prices approaching US$110 a barrel are “acceptable” for producers and consumers, and Opec does not need to change its output target, said the UAE’s deputy energy chief. The group is scheduled to next meet in June in Vienna to debate its 30 million barrel per day (bpd) production ceiling, which has remained unchanged since December 2011.
“I don’t think there will be any change in the quota,” said Matar Al Neyadi, the undersecretary of the UAE Ministry of Energy. “The market is stable, the supply is stable. The price is acceptable and comfortable for the producing countries and the consuming countries.”……………………………………….Full Article: Source

Rising prices for natural gas put pressure on oil sands producers

Posted on 15 April 2014 by VRS  |  Email |Print

Oil sands companies, which have benefited from years of low natural gas prices, are once again facing rising costs as the commodity they need to fuel much of their operations becomes more expensive.
Increasing prices for natural gas hit hardest at projects that use steam to soften oil-rich bitumen deposits to the point where the bitumen can drain into wells from which it can be pumped to the surface. Natural gas is an unavoidable expense in these projects, because it is needed to heat water to create steam………………………………………..Full Article: Source

Oil prices steady as Libya woes ease

Posted on 15 April 2014 by VRS  |  Email |Print

Crude oil prices rose in early Monday trading amid tensions in Ukraine, but fell again after Libyan protesters ended their occupation of an oil port. The price of Brent crude futures briefly rose above $108 a barrel, but later fell back to $107.30.
Libya’s state oil firm said the port of Zawiya and its refinery had reopened and were operating normally. But pro-Russian militants are still occupying buildings in eastern Ukraine, ignoring a deadline to leave by Kiev………………………………………..Full Article: Source

Iran challenges US sanctions with plans to double oil output by 2018

Posted on 14 April 2014 by VRS  |  Email |Print

Country’s new oil minister has set a new output target of 5.7m barrels per day of crude within four years. Iran has unveiled plans to double its oil production by the end of the decade and, ignoring sanctions, pump billions of dollars of its currency reserves into developing its share of the world’s largest natural gas reservoir in the Persian Gulf.
The country’s new oil minister, Bijan Zanganeh, has set a new output target of 5.7m barrels per day (bpd) of crude by 2018, according to the official state-run news agency Shana. The latest figures produced by the Organisation of Petroleum Exporting Countries (Opec), show that Iran is currently pumping about 3m bpd of crude………………………………………..Full Article: Source

Speculators boost bullish oil wagers on OPEC output drop: Energy

Posted on 14 April 2014 by VRS  |  Email |Print

The group, which pumps about 40 percent of the world’s oil, reduced output to the lowest for March since 2011 as a standoff between the Libyan government and rebels kept exports near the lowest level since Muammar Qaddafi was driven from office.
Output from the Organization of Petroleum Exporting Countries fell for the fifth time in seven months, according to a Bloomberg News survey. The International Energy Agency, which advises oil-consuming countries, said April 11 that OPEC will have to pump more crude after a “steep drop” last month………………………………………..Full Article: Source

IEA: Global oil supplies plunge in March on lower OPEC output

Posted on 14 April 2014 by VRS  |  Email |Print

Global crude oil supplies fell month-on-month in March by a steep 1.2 million b/d to 91.75 million b/d, with a decline in output from members of the Organization of the Petroleum Exporting Countries accounting for near 75% of the loss, according to the International Energy Agency’s most recent Oil Market Report.
Due to sharply lower supplies from Iraq, Saudi Arabia, and Libya, OPEC crude oil supplies in March fell 890,000 b/d to just 29.62 million b/d—the lowest level in 5 months………………………………………..Full Article: Source

U.S. crude reserves hit highest levels in nearly 40 years

Posted on 14 April 2014 by VRS  |  Email |Print

New data from the Energy Information Administration shows that crude reserves in the U.S. hit their highest levels since 1976. The EIA released a report on April 10, entitled “U.S. Crude Oil and Natural Gas Proved Reserves (2012),” which indicated that 2012 marked the fourth year in a row that proven oil reserves increased.
Not only that, but 2012 marked the largest increase in oil reserves for a single year – 4.5 billion barrels – since 1970. That is a remarkable feat since 1970 was the year that vast reserves, around 10 billion barrels, were booked in Alaska………………………………………..Full Article: Source

Venezuela needs 2014 brent oil price of $121: Deutsche

Posted on 14 April 2014 by VRS  |  Email |Print

Venezuela, holder of the world’s largest oil reserves, requires the price of Brent crude to average $121 a barrel this year, about $14 more than current prices, for the country’s government to balance its budget, according to Deutsche Bank AG.
The break-even oil price for the South American nation has fallen from about $150 a barrel last year, the bank said, after the government allowed its currency to weaken last month to alleviate shortages of imports including medicine, food and toilet paper. Oil producers Russia, Nigeria and Bahrain also need prices higher than $100 a barrel to balance their budgets this year, Deutsche Bank said………………………………………..Full Article: Source

OPEC oil production fell by 500,000 b/d in March

Posted on 14 April 2014 by VRS  |  Email |Print

The commodities complex was relatively well supported on Thursday despite the wave of risk aversion that swept across other asset classes. Thus, for example, three-month copper futures actually finished the day higher by 0.6% to $6,636/metric tonne mark on the LME despite remarks from China’s Premier that the country will not embark on any significant stimulus to ward off a short-term economic slowdown.
Crude futures also took news of falling oil output from the Organisation of Petroleum Exporting Countries (OPEC) in their stride………………………………………..Full Article: Source

OPEC says its oil output tumbled in March

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC’s oil output tumbled to its lowest level this year in March, the cartel of some of the world’s biggest oil producers said Thursday. Production by the Organization of the Petroleum Exporting Countries—which supplies more than a third of the oil consumed globally each day—fell by over half a million barrels a day last month to 29.6 million barrels a day, the group said in its monthly oil market report.
A steep drop in Iraq’s oil output of nearly 300,000 barrels a day led the decline, though there was also a substantial downturn in Angola, Libya and Saudi Arabia last month………………………………………..Full Article: Source

OPEC cautious on economy, sees lower demand for its oil

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC lowered the expected demand for its crude oil in 2014 and ended a run of upward revisions to global consumption growth, highlighting concerns over the economy and pressure on its market share from rival producers.
In a monthly report on Thursday, the Organization of the Petroleum Exporting Countries forecast demand for its crude oil in 2014 would average 29.65 million barrels per day (bpd), down 50,000 bpd from the previous estimate………………………………………..Full Article: Source

OPEC sees lower demand as U.S. crude output rises

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC trimmed estimates for the amount of crude it will need to pump this year amid rising U.S. supplies, and predicted that a “supply buffer” will accumulate before demand peaks in the summer.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of the world’s oil supply, will need to provide an average of 29.6 million barrels a day of crude this year, according to its monthly market report………………………………………..Full Article: Source

Looking back: Oil market’s future is different from its past

Posted on 11 April 2014 by VRS  |  Email |Print

By 1994, the oil industry had changed irrevocably due to the increased use of derivatives. Oil was once an internationally regulated utility run by the major oil companies and their home governments. The global industry consisted of a core group of vertically integrated oil majors, a large number of ‘national champion’ state-owned oil companies and some independents.
There were practically no trading companies, and their role was marginal. As for oil careers, they were much more like civil service jobs than they are today – any senior executive at a major oil company could count on getting highly paid in a much more secure environment than today’s………………………………………..Full Article: Source

North American oil glut to keep prices low, IMF says

Posted on 11 April 2014 by VRS  |  Email |Print

The International Monetary Fund said global crude oil prices have been relatively lower because of the growth in oil supply from North America. With U.S. oil production on pace to eclipse 9 million barrels per day near term, the trend should continue through next year.
Nearly all of the growth in global oil production is coming from the United States and Canada. Combined, North American production growth is around 1.2 million barrels per day from U.S. shale oil and Canadian oil sands. IMF said this growth was spilling over to the global marketplace. “Crude oil prices have edged lower, mainly as a result of the continued supply surge in North America,” it said………………………………………..Full Article: Source

US LNG will not cause European gas price drop: IEA economist

Posted on 11 April 2014 by VRS  |  Email |Print

Despite the expected growth of US LNG exports, Europe has “no hope” of seeing gas prices near US levels due to transportation costs, Fatih Birol, the International Energy Agency’s chief economist said Thursday.
LNG transportation costs, which include liquefaction, shipping and gasification costs, will add roughly $6/MMBtu and barely close the roughly $7/MMBtu differential between US and European gas prices, Birol said during a Center for Strategic and International Studies event………………………………………..Full Article: Source

Natural gas loses decades-old tie to oil in landmark deal

Posted on 11 April 2014 by VRS  |  Email |Print

A contract for France’s largest natural gas company to buy the commodity from Azerbaijan shows the decades-old structure of Europe’s energy market is starting to crumble.
For the first time, GDF Suez SA (GSZ) signed a 25-year contract to buy gas from BP Plc and partners in the former Soviet republic at prices tied to those in Western Europe’s domestic gas markets, a person with knowledge of the matter said, asking not to be named because the terms are confidential………………………………………..Full Article: Source

IEE can determine regional oil price

Posted on 11 April 2014 by VRS  |  Email |Print

Iran Energy Exchange (IEE) has the potential of playing a key role in determining oil price in the region, Managing Director of Iran Energy Exchange Ali Hosseini said on Wednesday.Talking to IRNA, Hosseini noted that since Iran is an oil-rich country, IEE has the potential of increasing supplies from the current 3,000 barrels per day to 10,000 bpd.
“Iran aims to prepare the ground for the presence of foreign buyers of crude oil in the energy exchange and diversify products supplied to buyers, including gas condensate,” he said.The first crude oil transaction at Iran Energy Exchange took place on April 6………………………………………..Full Article: Source

GCC economies immune to oil price shock

Posted on 10 April 2014 by VRS  |  Email |Print

The International Monetary Fund (IMF) has said that most GCC economies continue to have “substantial buffers” to cope with short-lived oil price shocks despite an expected drop in their current account surpluses.
In its World Economic Outlook, published ahead of its spring conference in Washington, the IMF said economic growth in most of the GCC economies is to hover near the rates registered in 2013, with Saudi Arabia, the largest Arab economy, expanding by 4.1 per cent in 2014, compared to 3.8 per cent in 2013………………………………………..Full Article: Source

US output, potential low demand pose risks to Gulf oil

Posted on 10 April 2014 by VRS  |  Email |Print

A rapid growth in US oil production combined with potentially weaker global demand present a downside risk to Gulf oil output and prices, the International Monetary Fund warned Tuesday.
But despite an expected drop in their current account surpluses, most Gulf Cooperation Council economies continue to have “substantial buffers” to cope with short-lived price shocks, the IMF said in its World Economic Outlook………………………………………..Full Article: Source

Citi vs. Chevron: Two opposing views of the oil price future

Posted on 10 April 2014 by VRS  |  Email |Print

The direction of oil prices is once again a hot topic. In a recent Barron’s article, Ed Morse, Citigroup’s head of global commodity research, forecasts a collapse in global oil prices to $75 /b over the next three to five years.
By contrast, Chevron has announced that it is budgeting with $110/b oil for 2017, with the company’s CEO John Watson stating, “There is a new reality in our business… $100/bbl is becoming the new $20/bbl in our business… costs have caught up to revenues for many classes of projects.” And for good measure, he adds, “If $100 is the new $20, consumers will pay more for oil.”……………………………………….Full Article: Source

OPEC plans to make room for extra oil from Iran, Iraq, Libya

Posted on 10 April 2014 by VRS  |  Email |Print

OPEC, which supplies 40 percent of the world’s oil, will accommodate additional output from members Iraq, Iran and Libya, Secretary-General Abdalla El-Badri said, without explaining how it will do so under the group’s ceiling.
The Organization of Petroleum Exporting Countries will wait until 2015 to discuss output targets with Iraq, which currently operates outside the production-quota system for each of the group’s other 11 member countries, El-Badri told reporters today in Doha, Qatar………………………………………..Full Article: Source

More oil coming from non-OPEC members

Posted on 10 April 2014 by VRS  |  Email |Print

Most of the growth in petroleum and other liquid fuel supplies comes from countries outside of OPEC, the U.S. Energy Information Administration said. EIA said it projects petroleum and other liquids supply to increase by 1.4 million barrels per day in 2014 and 1.3 million bpd in 2015, with most of the growth coming from North America.
In its short-term market report for April, EIA said it expects production from members of the Organization of Petroleum Exporting Countries to fall by 200,000 bpd in 2014 and in 2015, in part because of rising production elsewhere………………………………………..Full Article: Source

Does a US oil boom mean lower gas prices?

Posted on 09 April 2014 by VRS  |  Email |Print

Crude oil sourced in the United States is cheaper and therefore means less pain at the pump for American drivers. When adjusted for inflation, however, the price for a gallon of regular unleaded gasoline is still high because of international dynamics, AAA said Monday.
“Cheaper domestic crude has a significant effect on the price most of us pay at the pump,” AAA spokesman Michael Green told Oilprice. “U.S. refineries have access to cheaper crude oil than their overseas competitors, which provides a lucrative business advantage.”……………………………………….Full Article: Source

OPEC’s El-Badri says crude prices stable

Posted on 09 April 2014 by VRS  |  Email |Print

Crude prices are stable and the market has enough supply to meet demand, even amid geopolitical unrest in Europe and the Middle East, OPEC Secretary-General Abdalla El-Badri said.
The OPEC basket, a weighted average of the main export grade from each of the group’s 12 members, has stayed above $100 for a record 200 days, according to data from the Organization of Petroleum Exporting Countries’ Vienna-based secretariat compiled by Bloomberg………………………………………..Full Article: Source

Oil price to fall in 5-10 years globally

Posted on 09 April 2014 by VRS  |  Email |Print

Azeri analyst Elmur Soltanov thinks that the world price on oil might decrease for the next five years to the margin of $70-80. Many oil-producing countries are increasing oil extraction, which will eventually bring down the world oil price so that the current $100 USD paid for oil might degrease to around $75-80.
Economies of the oil-producing countries may face problems particularly in the countries where export of oil ensures the highest income. This will particularly hurt Russia’s economy if the West refuses to buy Russian gas and oil as a sanction targeted against Moscow for its occupation of Crimea………………………………………..Full Article: Source

EIA raises 2014 forecast on WTI crude-oil prices to nearly $96

Posted on 09 April 2014 by VRS  |  Email |Print

Spot prices for West Texas Intermediate crude oil are expected to average at $95.60 a barrel this year — up from a previous forecast of $95.33 a barrel, according to the monthly Short-Term Energy Outlook report issued Tuesday by the Energy Information Administration.
The EIA also lowered its 2014 price forecast for Brent crude, the European oil benchmark, to $104.88 a barrel from $104.92 in the previous report, and said it expects an average 2015 price of $4.11 per million British thermal units for natural gas, down from the $4.14 previously expected………………………………………..Full Article: Source

Oil price ‘fair’ despite geopolitical factors: Kuwait

Posted on 08 April 2014 by VRS  |  Email |Print

Kuwaiti Oil Minister Ali al-Omair said Monday that current oil prices are “fair” despite strong geopolitical factors impacting the region. OPEC member Kuwait is the world’s fourth-largest oil exporter, pumping around 3.0 million barrels per day, of which at least 2.6 million bpd are exported in the form of crude oil and petroleum products.
“There are geopolitical factors impacting oil prices… which are not only controlled by output levels and production capacity but also by political changes,” Omair said………………………………………..Full Article: Source

The correct price for crude oil

Posted on 08 April 2014 by VRS  |  Email |Print

With the flattish nature of its action over the past several months, oil seems to have reached a tipping point on price. It’s almost as if the charts are saying that oil either must break up or break down, if long-term trendlines are going to be respected.
Barrons took the opportunity to plump for a downside break last weekend, a prediction I have vigorously argued against in both print media and on-air. But one follower of mine made a very astute observation, pointing out to me that futures markets for crude oil ten years out are ‘predicting’ oil prices almost $20 lower………………………………………..Full Article: Source

Asia-Pacific crude-Libyan exports likely to weigh

Posted on 08 April 2014 by VRS  |  Email |Print

Differentials in the Asia-Pacific crude market could come under pressure from an expected increase in Libyan exports, traders said on Monday. Libyan rebels agreed with the government on Sunday to gradually end their eight-month petroleum blockade, which would free four eastern oil ports to export.
The Zueitina and Hariga ports, which account for around 200,000 barrels per day (bpd) of export capacity, will open immediately, while the larger ports, Ras Lanuf and Es Sider with capacity of around 500,000 bpd, will be freed in two to four weeks after more talks, the government said………………………………………..Full Article: Source

Iran ‘won’t wait for America’s permission’ to hike oil exports: minister

Posted on 08 April 2014 by VRS  |  Email |Print

Iran will continue its efforts to boost crude production and exports regardless of Washington’s opposition to increased international sales of Iranian oil, oil minister Bijan Zanganeh said Monday.
“Iran will use every possibility to increase the amount of oil exports and will not wait for America’s permission,” Zanganeh was quoted as saying by oil ministry news service Shana. “The sanctions do not ban Iran from increasing oil production and we have a big plan for increasing Iran’s oil production.”……………………………………….Full Article: Source

Speculators cut bullish oil bets by most in nine months

Posted on 07 April 2014 by VRS  |  Email |Print

Fewer than three weeks into spring, oil speculators are already thinking about the summer. Hedge funds and other money managers boosted bullish wagers the most since February, betting that refineries will need to buy more crude to accelerate gasoline output before the peak U.S summer driving season.
Fuel supply is already tight, with consumers paying the most at the pump in seven months. U.S. refineries are processing the most oil since January as plants come out of seasonal maintenance, squeezing crude stockpiles for the first time in 11 weeks………………………………………..Full Article: Source

China’s days of “stealing” the world’s oil and gas are numbered

Posted on 07 April 2014 by VRS  |  Email |Print

For years, China’s oil companies PetroChina , Sinopec , and CNOOC have had a major advantage over their integrated major peers, which flummoxed competing oil companies. This advantage has allowed them to gobble up oil and gas assets around the world at premiums well above market price.
Unfortunately for these Chinese companies, it looks like this advantage is ending, and they will need to compete with the rest of the world’s oil and gas producers for assets. Let’s look at what this advantage was, why it may no longer be there, and what this could mean for the energy markets………………………………………..Full Article: Source

Libyan rebels, government agree to gradually reopen occupied oil ports

Posted on 07 April 2014 by VRS  |  Email |Print

Libyan rebels occupying four eastern oil ports agreed with the government on Sunday to gradually end their eight-month petroleum blockade, which has cost the North African state billions in lost revenues.
Zueitina and Hariga ports, held by federalist rebels demanding more autonomy from Tripoli, will open immediately while the larger ports, Ras Lanuf and Es Sider, will be freed in two to four weeks after more talks, the government said………………………………………..Full Article: Source

EIA: Iran’s oil output at 3.2 mbpd in 2013

Posted on 07 April 2014 by VRS  |  Email |Print

US Energy Information Administration (EIA) announced that Iran produced 3.2 million barrels per day (mbpd) of oil in 2013 maintaining its 2nd rank in the Organization of Petroleum Exporting Countries (OPEC).
According to EIA’s latest Monthly Energy Review, Iran’s oil output shrank by 167,000 bpd in 2013, compared with that of last year, Tasnim News Agency reported. Iran’s crude oil production dropped by 687,000 bpd in 2012, which was the first year in which Western sanctions against Iran were enforced………………………………………..Full Article: Source

Oil industry can be ‘solution’ to climate change says Figueres

Posted on 04 April 2014 by VRS  |  Email |Print

The UN’s climate chief has appealed to the oil and gas industry to become the solution rather than the problem to addressing the causes of global warming. In a speech today at the London headquarters of IPIECA, the industry’s association for environmental and social issues, Christiana Figueres said she wanted fossil fuel companies to drive investments in renewables and technologies to capture and store carbon dioxide.
“We need, and are undoubtedly moving towards a new, sustainable energy mix. What is exciting is that the oil and gas industry can actually be part of the solution,” she said………………………………Full Article: Source

Russia-Iran oil swap deal gains momentum

Posted on 04 April 2014 by VRS  |  Email |Print

Russia and Iran are moving closer to a $20 billion oil-for-goods deal launched earlier this year, according to a Reuters report citing unnamed sources close to the deal. Russia has finished preparation of all documents related to the deal on its side, and the deal’s completion now allegedly hinges on an oil price agreement, the source reportedly said.
The deal could eventually be worth $15-$20 billion, but would be completed in increments, with an initial $6-$8 billion transaction, while both sides are still bargaining over the exact nature of a barter deal that would trade Iranian oil for Russian industrial goods and food………………………………Full Article: Source

Key senator says U.S. office can lift part of oil export ban

Posted on 03 April 2014 by VRS  |  Email |Print

A U.S. government office has the power to approve exports of an abundant type of petroleum and help energy companies begin to partially bypass a 40-year ban on crude exports, according to a report released on Tuesday by Lisa Murkowski, the top Republican on the Senate Energy and Natural Resources Committee.
The ban on crude exports the government put in place after the Arab oil embargo of the 1970s includes a prohibition on exports of unprocessed condensate, a light petroleum that appears in oil reservoirs as a gas, but condenses to a liquid when it leaves the well…………………………………Full Article: Source

Oil futures dip on continued demand concerns

Posted on 03 April 2014 by VRS  |  Email |Print

Oil prices declined Wednesday as a drop in U.S. supply failed to erase traders’ fears about sluggish demand. U.S. crude-oil supplies fell last week for the first time in 11 weeks, the U.S. Energy Information Administration said, upending analyst expectations. But traders wrote off the drop as a one-week aberration–a closure of the Houston Ship Channel between March 22 and March 25 limited imports of crude oil and required refiners to draw more supplies from storage.
Inventories likely will rise again next week, said Andy Lipow, president of Lipow Oil Associates in Houston. Demand for crude oil typically falls in March as refineries shut down units for seasonal maintenance…………………………………Full Article: Source

The most profitable gas in the world

Posted on 03 April 2014 by VRS  |  Email |Print

There is only one certainty in Ukraine: The energy sector must and will be transformed, and how long this takes will depend on who ends up in the driver’s seat and how serious they are about becoming a part of Europe and reducing dependence on Russia. But by then, investors will have missed the boat.
The driving factor for any energy investor in Ukraine is the pricing environment. There is nowhere else in Europe—or some would even argue in the world—where you are going to get significant access to resources and potential resources for the price. Gas is selling at $13.66/Mcf, while it costs $4-$5 to produce and operate. That means producers are netting anywhere between $8 and $9/Mcf…………………………………Full Article: Source

Here comes $75 oil

Posted on 02 April 2014 by VRS  |  Email |Print

The long-term outlook for global oil prices is lower, perhaps much lower, giving a strong boost to the U.S. economy while potentially crippling the economy of Vladimir Putin’s Russia. Vast new discoveries of oil and natural gas in the U.S. and around the globe could drive the oil price to as low as $75 a barrel over the next five years from a current $100.
The demand side, too, will put pressure on the supremacy of petroleum. For the first time in its 150-year history, the internal combustion engine can be run efficiently on alternative fuels from a number of sources, including natural gas. As these alternatives are increasingly introduced, global consumption of oil will slow its growth and flatten out………………………….Full Article: Source

Vitol CEO Taylor says oil price underpinned by Libya supply halt

Posted on 02 April 2014 by VRS  |  Email |Print

Oil supply disruptions in countries such as Libya will support crude prices this year, said the chief executive officer of Vitol Group. Booming U.S. output means the world’s largest independent oil trader is looking to invest more there, he said.
Libya has “severe problems” and is producing “extremely little” crude, Ian Taylor said in an interview at the FT Commodities Global Summit in Lausanne, Switzerland. This is important for Europe, where oil demand has been higher than expected this year, he said………………………….Full Article: Source

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