Global Markets

Live World Indices are powered by Investing.com

Tuesday, 19 April 2016

Today's ENERGY News - 19 April 2016

Top Stories 

Botched Doha deal undermines OPEC credibility, oil prices tumble

Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel. Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts. “OPEC’s credibility to coordinate output is now very low,” said Peter Lee of BMI Research, a unit of rating agency Fitch. “This isn’t just about oil for the Saudis. It’s as much about regional politics.” Morgan Stanley said that the failed deal “underscores the poor state of OPEC relations,” adding that “we now see a growing risk of higher OPEC supply,” especially as Saudi Arabia threatened it […]

Exclusive: Chevron puts Myanmar gas block stakes worth $1.3 billion up for sale – sources

U.S. oil and gas major Chevron Corp has put all of its Myanmar gas block stakes up for sale, which at a combined likely valuation of $1.3 billion, would be the biggest deal involving Myanmar assets to date, financial sources familiar with the matter said. The sale, part of Chevron’s efforts to preserve cash and retreat from non-core assets in the wake of sliding oil prices, is seen as setting the tone for future deals in a country that is opening up for business after historic elections last year. San Ramon, California-based Chevron is working with an U.S investment bank on the deal, the sources said, declining to be identified as the sale process has not been made public. Chevron, which has been operating in Myanmar for about two […]

Big Oil’s `Rock Star’ in Congress Runs Rig Tours to Win Votes

Congressman Steve Scalise leaned over the railing of the Chevron Corp. oil rig floating in inky blue waters 250 miles off the Louisiana coast, and marveled to a cluster of lawmakers that it produces 75,000 barrels of crude every day. Scalise is one of the oil industry’s busiest tour guides in Congress. Eight times, he’s lured colleagues onto helicopters bound for remote platforms and production facilities in the Gulf of Mexico. His motive: to persuade even Democrats to overturn Obama administration rules that will add costs to offshore drilling. “Some bureaucrat in Washington that’s never drilled before comes up with this standard and says ‘This is how you drill every well in the Gulf,’” Scalise told his colleagues. “It makes absolutely no sense.” For oil and gas companies plumbing Gulf waters, Scalise is an evangelist of growing importance. First appointed in 2008 to finish the term of Bobby Jindal, […]

Canada’s Oil Industry To See 62% Decline In Investment

Canada’s oil production may see a small increase this year as new projects come online, but the good news stops there for the industry that has seen a 62 percent decline in investment since 2014 Canada’s oil production could see a small increase this year as several major projects that were planned before the collapse in oil prices reach their completion. But the project pipeline, so to speak, looks pretty empty beyond the current crop of projects under construction. Canada produced 4.5 million barrels of oil per day (mb/d) in 2015, which could rise slightly to 4.6 mb/d this year and 4.8 mb/d in 2017 as a few major projects finish up. However, according to the comments from several executives at the top oil sands companies – Suncor Energy, Cenovus Energy and Meg Energy – the megaprojects of yesteryear are likely a thing of the past. Speaking at […]

Low oil prices having a chilling effect on Alaska’s economy

Alaska has long been a bastion of the US’ oil production, even giving dividend checks to residents from oil revenues. But oil price woes are having a major effect on a state that has no state income tax or state sales tax, and crude production on Alaska’s North Slope in 2015 fell to its lowest point in decades. Platts senior oil editor Brian Scheidspeaks with Diane Kaplan, president of Alaska’s Rasmuson Foundation, about the impact of low prices, declining supplies, and how Alaska lawmakers are having to take a hard look at changes to the state’s tax structure.

Ruble Drops Most Globally as Gains Unravel on Failed Oil Talks

The ruble fell the most worldwide and Russian government bonds headed for the biggest drop in two months as oil plunged after weekend talks between crude producers brought no deal to support prices for the nation’s main export. The Russian currency weakened 2.7 percent to 68.2950 per dollar as of 10:38 a.m. in Moscow, the most on an intraday basis since Feb. 24, as Brent crude tumbled after discussions in Doha ended without a pact freezing output. Russia’s five-year debt dropped for a fourth day, lifting the yield 12 basis points to 9.48 percent, the biggest increase since Feb. 2. The failure of the negotiations has halted a rebound in crude prices that boosted the ruble to the strongest since November last week and eased pressure on President Vladimir Putin’s government as it wrestles with a second year of recession. Societe Generale SA and Rabobank both predicted the ruble […]

Sunday, 17 April 2016

Today's ENERGY News - 18 April 2016

Top Stories 

Oil Slips While All Eyes Are On Doha

When looking at some of the key figures for the oil and gas industry this week, in which we see that oil prices have lost some of their gains and in which we continue to notice a decline in U.S. crude oil production which has now slipped below 9 million barrels per day. 
    Friday April 15th 2016 Oil prices held their ground above $40 per barrel this week, bouncing around at their highest levels since December 2015. Prices lost some ground at the end of the week but held their ground, awaiting the result from Doha when several OPEC members sit down with Russia to hash out their production freeze deal. There has been a lot of confusion surrounding the meeting – whether Saudi Arabia would sign up without Iran’s participation, whether or not […]

North Dakota Oil Production Falls for Third Month in a Row

North Dakota crude oil production fell for the third month in a row, ticking down 0.4% in February and hitting its lowest level in 18 months. Slumping oil prices are starting to affect output in U.S. shale fields, including the prolific Bakken formation in North Dakota. Oil production in the state dropped to 1.11 million barrels a day in February from 1.12 million barrels a day in January , according to the latest data from the North Dakota Department of Mineral Resources. 

 Supporting Exhibit

North Dakota data from the NDIC is out. Bakken Three/Forks data shown in chart above (NDIC Data) with a Red Queen Model (based on Rune Likvern’s original work) using data gathered from the NDIC by Enno Peters to develop well profiles.
Peak Oil Barrel
The state’s output hasn’t been that low since July 2014. The slightly lower production in February follows a 2.6% drop in January and a 2.5% slide in December , data from the department show. February’s slower pace of decline reflected an uptick in completions of previously drilled wells, as cash-strapped producers sought to boost revenue despite low oil prices, said Lynn Helms, director of the state’s Department […]

Goodrich Petroleum Files For Chapter 11 Bankruptcy Protection

The company has filed for chapter 11 bankruptcy protection. Troubled U.S. oil and gas firm Goodrich Petroleum Corp. said on Friday it has filed for chapter 11 bankruptcy protection, joining the ranks of a number of energy companies that have fallen victim to volatile oil and gas prices. The Houston-based energy firm, which was first formed in 1995 and has interests in shale properties in Mississippi, Louisiana, and Texas, filed for protection to eliminate $400 million in debt, leaving behind only $40 million in debt related to a first lien reserve based loan facility. 

Goodrich says it expects to maintain sufficient liquidity during the financial restructuring to continue running its operations, including paying salaries and suppliers. The company filed for chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division after failing to secure shareholder and debtholder […]

Clinton, Sanders spar over fracking

Democratic presidential candidates Hillary Clinton and Bernie Sanders debated for the ninth time Thursday in New York. Photo by Ray Stubblebine/UPI NEW YORK, April 15 (UPI) — Hillary Clinton said gas from shale is the bridge to a cleaner future, though rival Bernie Sanders said embracing fossil fuels was the wrong policy move. CNN hosted the debate between the former Secretary of State Clinton and Vermont Sen. Sanders in Brooklyn ahead of the state primary. Sanders has called for a ban on hydraulic fracturing, known also as fracking, as part of a push to advance a low-carbon economy. 

Pressured on the potential loss of jobs, the senator said the consequences of oil and gas weren’t the fault of industry workers. “It is not their fault that fossil fuels are destroying our climate,” he said. “But we have got to stand up and say right now, as we would if […]

Wall Street’s Oil Crash, a Story Told in Charts

Here’s Why Wells Fargo Profit Fell This is what it looks like on the down side of the biggest oil boom in U.S. history. JPMorgan Chase & Co., Wells Fargo & Co. , Bank of America Corp. and Citigroup Inc., with a combined $190 billion in energy loan exposure, all announced this week that they’re setting aside more money to cover losses. Though energy is a relatively small share of their assets, it’s been a big issue on analyst calls this week. The record-breaking surge in U.S. oil production wouldn’t have been […]

Should Canadians Be Rooting for Lower Oil Prices?

CIBC World Markets Corp. Deputy Chief Economist Benjamin Tal suggests there’s another unfamiliar force Canadians ought to embrace: lower oil prices. For Alberta, the nation’s energy producing heartland, oil’s move from $30 to $40 per barrel “is not a gamechanger,” according to Tal, as it’s unlikely to spur producers to boost capital spending. But on the flip side, the pickup in oil prices is making it harder for the rest of the economy to perform well, he said. Because oil plays an immense role in determining Canada’s terms of trade, there is a strong correlation between the value of the Canadian dollar and crude prices. The recent strength of the loonie could jeopardize the competitive advantage exporters have […]

Oil Slides as Hope Fades for Doha Agreement

Oil falls as investors expect

 little from Doha meeting

Oil prices fell on Friday in subdued trade as traders and analysts anticipate a weekend meeting of major oil exporters to do little to help to clear global oversupply quickly, even though it would provide a floor for the market.
All eyes are on Doha as producers, led by top exporters Saudi Arabia and Russia, meet on Sunday to discuss freezing output around current levels in an effort to contain a glut exacerbated by production that exceeds demand by about 1.5 million barrels a day.
It would be the first joint action by major OPEC and non-OPEC producers in 15 years, although Iran has refused to participate, saying that it wants to rebuild its output to levels achieved before imposition of the recently lifted economic sanctions.
"Unless there's a total surprise, the likelihood is that the Doha meeting on Sunday between OPEC/non-OPEC will produce something very wishy washy and will be nothing more than smoke and mirrors," one trader said. "I therefore want to sell crude today."
Traders said profit-taking by funds ahead of the meeting also added to the pressure on prices in the session.
Brent crude futures LCOc1 settled down 74 cents at $43.10 while U.S. crude CLc1 ended down $1.14 cents at $40.36. Both contracts lost more than 3.5 percent earlier in the day. However, on a weekly basis, prices were higher for the second week in a row in the run up to the meeting.
Oil also trimmed some losses after data from Baker Hughes showed U.S. energy firms cut oil rigs for a fourth week in a row to the lowest level since November 2009.
With discussions among producers focusing on freezing output rather than cutting it, most analysts said they had little hope for a deal that reduces the global oversupply.
The crude surplus has pulled down crude prices by as much as 70 percent since mid-2014.
"A cut in production is very unlikely at this meeting and I would say it will probably not even be a discussion item on the meeting agenda," said Energy Management Institute analystDominick Chirichella.

Saturday, 16 April 2016

At Last OPEC No Longer Drives the Bus

How OPEC lost control of the oil market

This weekend, 13 countries with little in common will attempt to act as one – by coming to an agreement to curb oil production and prop up prices.
But the quarrelling members of the Organization of the Petroleum Exporting Countries, who meet Sunday in Doha, Qatar, have been acting less like a cartel and more like observers to a free market in crude oil. And the odds of the group reaching anything more than a fragile agreement to “freeze” output at current levels are slim.
Image result for infighting opec cartoonGiven the nature of the 46-year-old cartel, it’s no wonder. Two of the group’s members – longtime foes Iran and Saudi Arabia – are backing warring proxies in Syria and Yemen. Countries like the United Arab Emirates have fiscal buffers against low oil prices, while cash-strapped inflation-riddled Venezuela is scraping to avoid default. Nigeria counts on 1.7 million barrels a day to help meet the needs of 173 million people while Kuwait produces 2.8 million barrels a day with a population of 3.4 million.
Decades ago, there were effective cartels that managed notoriously unstable oil prices. Standard Oil, before it was broken up under antitrust laws, leveled off prices in the late 1800s and early 1900s. And from the early 1930s through 1970, the Texas Railroad Commission dictated output well by well in Texas, effectively taking available crude oil off the market to bolster prices at a consistent, albeit high, level.
These two price setters had a key advantage OPEC lacks. Standard Oil executives could make decisions around the breakfast table of founder John D. Rockefeller. And the Texas Railroad Commission did not have to negotiate with rival states or countries with differing interests.
OPEC, by comparison, is a fractious lot whose members want the others to cut production without cutting themselves. Usually that means cuts by Saudi Arabia, which has usually taken on the role of swing producer. But the kingdom is tired of losing market share while other oil exporters cash in and for the past year and a half it has been pumping at high rates, willing to persist even as prices crashed from more than $100 a barrel two years ago to $40.34 a barrel Friday.
Read More

Friday, 15 April 2016

EYE on the World - 15 April 2016

"Going Beyond The Mainstream"  

Impactful Week With Some Buzziness! 


Inline images 6


 Russian Jets
Buzzing US Warships  

Close encounters of another kind.

Inline images 1 

"These actions have the potential to unnecessarily escalate tensions between countries, and could result in a miscalculation or accident that could cause serious injury or death.”                                                The Guardian

Russian attack jets buzz US warship in riskiest encounter for years


 Harvard Study: Now Methane Causes Worse Impact on Climate


Inline images 2

That’s why last month’s Harvard study came as such a shock. It used satellite data from across the country over a span of more than a decade to demonstrate that US methane emissions had spiked 30 percent since 2002. The EPA had been insisting throughout that period that methane emissions were actually falling, but it was clearly wrong—on a massive scale. In fact, emissions “are substantially higher than we’ve understood,” EPA Administrator Gina McCarthy admitted in early March.



GOLDMAN SACHS - Not Too Big to Jail

Inline images 3

​ It's about TIME

Goldman Sachs Group Inc (GS.N) has agreed to pay $5.06 billion to settle claims that it misled mortgage bond investors during the financial crisis, the U.S. Department of Justice said on Monday.

The settlement, which Goldman disclosed in January, stems from the firm's conduct in packaging, securitization, marketing and sale of residential mortgage-backed securities between 2005 and 2007, the Justice Department said.


FED's Four Horsemen Bring Economic Dark Ages

Inline images 4


f the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies…The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
- Thomas Jefferson, 1802

Chevron CEO Says Markets Normalizing???

Inline images 5

 Crude oil markets are coming back into "better balance" as supplies are cut back in response to lower prices, Chevron Chief Executive Officer and Chairman John Watson said Tuesday.

The oil industry in early 2015 responded to lower revenue by reducing spending on long-cycle projects, Watson told journalists on the sidelines of the LNG 18 conference in Perth, Western Australia.

Buddy, you really call this looking good??? 

Inline images 6



To subscribe or unsubscribe
​please ​

Free Logo From Thefreelogomakers.com

Reaching over "650,000 readers "globally, with partners and private communities in Zurich, New York, London, Moscow, Tokyo, Hong Kong,  Toronto and Beverly Hills, California  

Going Beyond The Mainstream


Earth In Trouble