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voda 17 februari 2017 17:04

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US shale oil output to rise in March to highest in 10 mths - EIA

US shale oil production for March is expected to rise by the most in five months to its highest rate since May last year, government data showed on Monday, as energy companies boost drilling on the back of crude prices that are hovering over $50 a barrel.

According to the US Energy Information Administration's drilling productivity report, March oil production is forecast to rise by nearly 79,000 barrels per day to 4.87 million bpd. That would be the biggest monthly rise since October.

In the Permian shale play of West Texas and New Mexico, output is forecast to rise by more than 70,000 bpd to 2.25 million bpd, in what would be the biggest monthly rise since January 2016.

EIA data showed that Eagle Ford production in Texas is expected to rise by 14,000 bpd to 1.08 million bpd, the first monthly increase since December 2015.

In North Dakota's Bakken field, production is forecast to fall by nearly 18,000 bpd to 976,000 bpd, the fifth consecutive month-on-month decrease.

The EIA said that US natural gas production from the seven biggest shale basins was projected to increase to a record high 49.1 billion cubic feet per day in March. That would be up over 0.5 bcfd from February and would be a third monthly increase in a row.

EIA projected output would decline in only one region in March, the Eagle Ford. Output there is expected to ease by 25 million cubic feet per day to almost 5.6 bcfd, its lowest level since November 2013.

Output in the Marcellus formation in Pennsylvania and West Virginia, meanwhile, is set to rise by almost 0.2 bcfd to a record high 19.1 bcfd in March, a fifth consecutive increase.

Source : Reuters

voda 24 februari 2017 12:30

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Shell investeert in Argentijns schalieveld

Gepubliceerd op 24 feb 2017 om 10:31 | Views: 634

BUENOS AIRES (AFN/RTR) - Shell heeft met het Argentijnse oliebedrijf YPF overeenstemming bereikt over de ontwikkeling van delen van het schalieveld Vaca Muerta in het Zuid-Amerikaanse land. Beide bedrijven krijgen een belang van 50 procent in het proefproject. Shell investeert in twee fases 300 miljoen dollar in het project.

De deal tussen YPF en Shell volgt kort op een akkoord dat de Argentijnse president Mauricio Macri vorige maand sloot met oliebedrijven en vakbonden om investeringen in het Vaca Muerta-veld te stimuleren. De regering hoopt daardoor minder afhankelijk te worden van de import van olie en gas.

De Argentijnse overheid heeft voor de periode tot en met 2020 prijsgaranties afgegeven voor aardgas dat gewonnen wordt uit nieuwe bronnen. De vakbonden zijn akkoord gegaan met flexibelere contracten voor de werknemers bij nieuwe olie- en gasprojecten.

Het Vaca Muerta-veld in Patagonië is ongeveer zo groot als België. Het herbergt een van de grootste schaliereserves ter wereld. Andere grote buitenlandse bedrijven die beloofd hebben erin te investeren, zijn Chevron, Total en BP.

voda 20 maart 2017 14:40

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All set for building oil shale-fired power plant - APCO

Attarat Power Company (APCO) said that Construction on a 554-megawatt, oil shale-fired power plant will start following securing necessary finance for the project, valued at USD 2.1 billion.

APCO announced that the parties had reached financial closure for the construction of the first oil shale-fired power station and open cast mine in Jordan.

The signing ceremony was held under the patronage of Prime Minister Hani Mulki.

The project will be located at the Attarat Um Ghudran oil shale deposit, approximately 100km southeast of Amman. The construction of the 554MW gross/470MW net oil shale-fired mine mouth power station will begin shortly, while the power station's construction is scheduled to start in mid-2020.

The project will be the first to commercially utilise Jordan’s abundant oil shale reserves, significantly reducing the country's reliance on imported oil and gas. It is expected to meet 10-15 per cent of Jordan’s annual power demand.

With an investment value of $2.1 billion, the project is the largest private sector project in Jordan to date. The two-unit power station will be the first oil shale-fired power station and mine project funded by limited recourse project financing in the world.

APCO entered a fixed cost, fixed term engineering, procurement and construction contract with Guangdong Power Engineering Corporation, a subsidiary of China Energy Engineering Group Co. Ltd.

Commercial operations of the two projects are scheduled to start respectively 38 and 42 months from the date of financial closure. APCO entered into a 30-year agreement with NEPCO to sell it the entire electrical capacity and net electrical output. Affiliates of the shareholders will be responsible for the operation and maintenance of the power station as well as the fuel supply.

The power station and oil shale mine are expected to employ approximately 5,500 people during construction and 1,000 during operations.

Andres Anijalg, outgoing chairman and CEO at Enefit, said that “Achieving the financial close for this highly strategic project has required the unswerving commitment of many parties for several years. On behalf of our founders and shareholders, Near East, Enefit, YTL and Yudean, we commend the dedication and perseverance of all involved, particularly the government of Jordan, NEPCO, GPEC, Sinosure and the Chinese banks.”

Mr Jason Pok Hooi Loong, APCO CEO designate, said the financial closure entails a notice to proceed for the construction.

He said that “APCO is honoured to be entrusted with the realisation of this most strategic investment. We and GPEC will continue to work closely with the Jordanian government and NEPCO to complete this largest ever private sector project in Jordan in 2020, in order to generate reliable power using local resources.”

In 2010, Jordan Oil Shale Energy Company (JOSE), a former sister company of APCO, signed an Oil Shale Surface Retort Concession Agreement with the government of Jordan, giving it exploration and oil production rights for 40 years.

JOSE recently relinquished approximately 31km2 of land to the government. This land has formed the basis of a lease from the government to APCO for the site on which the power station and the mine will be developed. The term of the lease is coterminous with the power purchase agreement with NEPCO.

When completed in 2020, it will be one of the largest power plants in Jordan and the largest oil shale- fired power plant in the world after Enefit’s power plant in Estonia.

Source : Jordan Times

voda 13 april 2017 19:26

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Shale boom makes it even harder to predict global oil dynamics

Reuters reported that the shale oil boom has transformed the US and global energy sector to such an extent that it has upended traditional supply dynamics and made forecasts far more polarised. Investment banks, many of which finance new projects, along with oil majors such as Total and Eni, have warned that huge spending cuts caused by a plunge in oil prices since 2014 would lead to a supply crunch in the next two years.

Yet Goldman Sachs, the only bank to make more than $1 billion a year from commodities trading, believes a looming recovery in U.S. output on the back of higher oil prices combined with an avalanche of new conventional projects will create a substantial surplus by 2019.

Prior to the shale revolution, conventional oil was the only game in town. Estimating future supply essentially involved calculating the project pipeline and factoring in the “unknown knowns” such as political risk in oil-producing nations.

The ability of the shale sector to adapt quickly and nimbly to a lower-price environment means production cycles have shortened as fields can be switched on and off in a matter of weeks.

Most forecasters including OPEC and the International Energy Agency underestimated shale’s decline during the oil price collapse and its production increases as prices recovered.

Goldman predicts the coming two years will see a huge burst of development, complicating OPEC’s efforts to rebalance the market and ease a global glut with the help of output cuts.

Goldman’s equity research team said that “This long lead-time wave of projects and a short-cycle revival, led by U.S. shales, could create a material oversupply in 2018-19. As OPEC prepares for its May 25 meeting, it is likely to weigh the relative benefit of stability (extend cut) versus the risk of long-term share loss.”

Goldman estimates that new projects and rising shale output could add 1 million barrels per day (bpd) to global supply by 2018-2019.

The forecast contrasts with those of consultancy Wood Mackenzie, which foresees a supply gap of 20 million bpd by 2025, and Goldman’s rival Morgan Stanley, which believes a surge in U.S. production this year will not derail the rebalancing.

Morgan Stanley said that “OPEC has successfully constrained output, and although drilling activity in U.S. shale is picking up rapidly, this will probably not come quick enough to prevent a period of sizeable inventory draws late this year.”

The bank said that “By 2020, we estimate that (around) 1.5 million bpd of demand will need to come from projects that have not been sanctioned yet, but that have break-even oil prices of $70-75 a barrel.”

Source : Reuters

voda 17 april 2017 16:43

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US shale investment is back on the upswing - Marcellus

Global upstream oil and gas merger and acquisitions reached $136 billion in 2016, according to Evaluate Energy’s global M&A 2016 review. And one area seeing a jump in activity was the US Marcellus shale, where close to eight times more was invested in asset and corporate acquisitions in 2016 than in 2015.

The Marcellus formation, which runs through northern Appalachia, primarily in Pennsylvania, West Virginia, New York and Ohio, is considered the second-largest natural gas field in the world, after Northfield in Qatar and Iran. Marcellus spans approximately 60.8 million net acres with an estimated 500 trillion cubic feet of natural gas, about 50 trillion cubic feet of which is recoverable using current technology.

In 2015, the U.S. shale industry was one of the main casualties of the oil price downturn, suffering a 75 percent drop in year-on-year merger and acquisition spending to $13 billion. This amount was the lowest annual M&A U.S. shale spend since 2009. A reshuffling of asset portfolios in 2016 redirected investments away from the Permian basin, and toward the Marcellus Shale which, which led to resurgence in deals as well as natural gas output. The M&A spend in the shale industry bounced back to $48 billion during 2016, representing a 269 percent increase year on year.

Many of the players were eager to take advantage of other companies realizing that their respective Marcellus positions were noncore assets. Mega international players such as Anadarko Petroleum Corp., Statoil ASA and Mitsui & Co. Ltd. sold significant portions of Marcellus land for sums of more than $100 million. Southwestern Energy Company, in efforts to reduce debt, agreed a large deal to sell Marcellus acreage that had no drilling plans until 2023. The acquirers of these assets included far more Marcellus or Appalachian basin-centric companies.

Overall, the Marcellus 2016 deals totaled $7.25 billion. This kind of year-on-year increase usually reflects one or two mega deals but not in 2016, when the total included 13 large deals (over $100 million). Both figures are a significant increase on 2015 activity, when only $920 million was spent and only three large deals took place. In fact, 2016 saw more large deals in the Marcellus than in every year since 2010, the first real M&A boom, when 15 such deals were announced.

The Marcellus rig count, which had seen a precipitous drop from 2012-2015 finally swung upward. Despite the decline, new-well gas production per rig in the region had risen throughout that time, due to enhanced technology and hydraulic fracking, which also helped to revitalize much of the legacy gas production.

During the recent oil crash, oil-field and gas-drilling services providers had to reduce prices, in some cases, toward levels that would have made their businesses unprofitable. Now with drilling prices starting to stabilize and recover, according to Wells Fargo, the producer price index for well-drilling costs jumped 8.7 percent in February from the prior month, the biggest monthly increase since 2005. Prices spiked on an annual basis too, by the most since August 2014.

The cost increase, nevertheless, is unlikely to stifle future production because, apart from the oil crash, there had been a structural decline in average drilling costs over the past few years. According to the EIA, costs per well increased from 2006 through 2012, a time of rapid growth in U.S. drilling activity. But since 2012 average costs have fallen partly due to more efficient technology.

The M&A trend in Marcellus should continue through 2017, as there are remaining energy assets still ripe for targeting that took a hit during the energy market slump. For example, Stone Energy Corp. in February completed its reorganization and exited Chapter 11 bankruptcy proceedings, eliminating $1.2 billion of debt with a $527 million asset sale to EQT Corp.

Furthermore, President Donald Trump has loosened regulation on E&Ps, thus making such plays more lucrative. In fact, in anticipation of his energy policies, the bulk of 2016 transactions took place in the fourth quarter of 2016. Now as Trump held to his word, transaction flow continues

Recently, the energy investment firm Kalnin Ventures LLC agreed to acquire more nonoperated Marcellus shale interests valued at $16 million on behalf of Banpu pcl., Thailand’s largest coal producer. Kalnin paid Range Resources $112 million and Chief Oil and Gas LLC $63 million last year for nonoperated interests there.

Source : Bloomberg

Bijlage:

voda 17 april 2017 16:45

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New US pipelines to drive natural gas boom as exports surge - EIA

Reuters reported that US energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world's top natural gas exporters. The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets.

According to projections from the U.S. Energy Information Administration (EIA), those states could supply about a third of all US natural gas once the pipeline expansion is complete, up from about 25 percent now.

The network will bring cheaper fuel supplies for power generation and industry being built in the eastern half of Canada and the United States, especially along the U.S. Gulf Coast. It would also transport the huge volumes needed to feed facilities that chill the gas to liquid so it can be shipped internationally.

The construction addresses a lack of pipeline capacity that has stunted development of two of the largest shale fields in the United States, the Marcellus and Utica formations.

According to the EIA, the lines should allow output to increase from both fields by about 50 percent in the next two years. Gas from the Marcellus and Utica is among the cheapest in the country.

Among the largest projects under construction are Energy Transfer Partners LP's (ETP) Rover; TransCanada Corp's Leach XPress; and Williams Cos Inc's Atlantic Sunrise. Those lines will move gas out of these shale basins to markets in Canada, the US Midwest and Southeast, including expected connections to Gulf Coast export terminals.

The completion of the lines will be a welcome boon for the firms and their investors after a tough couple of years. A slump in international energy prices led to reduced demand for new oil and gas pipeline capacity from producers.

ETP and other firms were also hit by a growing protest movement of environmentalists, Native American rights groups and U.S. military veterans, which delayed big ticket projects such as the Dakota Access Pipeline.

Source : Reuters

[verwijderd] 23 april 2017 21:40

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voda 27 april 2017 17:03

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Shale oil ‘a form of non-Opec competition’ - Mr al-Attiyah

Mr HE Abdullah bin Hamad al-Attiyah, former Deputy Prime Minister and Minister of Energy and Industry, said that Shale oil is “a form of non-Opec competition just as any other non-Opec oil producer is.”

On a global liquids supply level of around 95mn barrels a day, shale (tight crude and unconventional NGL) represents around 7%, al-Attiyah said at the ‘Abu Dhabi Roundtable’ hosted by New York University (NYU) Abu Dhabi Institute in collaboration with the University of Oslo.

The chairman of Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development noted this share would increase and expected to reach 9% in the long run.

Mr Al-Attiyah said that “But in absolute terms it is substantial as it will evolve from the current 6.5mn barrels per day to nearly 9mn bpd by 2025 and potentially 10mn bpd in 2030, only to decline later. What matters is the breakeven price of this new supply and how the shale producers can value their product and make it available to the market. And it is at this level where strategies of different market players will be defined.”

He said that “What is even more important is not shale itself but the driving force behind it, which is technology. Thus, we have to be very careful in future (near and far) on how technology will evolve and bring down the cost of shale and its corresponding breakeven price.”

On the durability of the current Opec cooperation with some non-member countries, he said, “The current cooperation can stand as long as the compliance to the cuts will be satisfactory. This will depend on how the market will react, if the implied glut will be resorbed, and if the cooperation will not lead to the worst situation, where other non-Opec producers might profit from this setting to increase their market share and undermine the Opec/non-Opec deal.

He added that “In the past, the compliance was not always perfect from both sides, this is why it is very important to keep the current momentum with actually remarkable levels of conformity to the commitments, with 86% compliance level in January and 94% in February this year, of the agreed total cut of Opec and non-Opec countries of about 1.8mn bpd (1.2mn bpd for Opec and 0.6mn bpd for non-Opec).”

Asked how the shift in emphasis from “peak oil” to “peak demand” change the strategy of Opec countries, al-Attiyah said, “Who can tell what the demand – supply balances will be? However, it is starting to look as if there will not be neither ‘peak oil’ or ‘peak demand’.”

He added that “So far, the reference cases – either of the IEA or Opec do not show any peak demand, rising currently from around 95mn bpd to a range between 110 to 120mn bpd by 2040.

Source : Gulftimes

voda 28 april 2017 16:28

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China increase in shale gas output in March 2017

New data from Beijing have shown that China recorded a 50.4% year-on-year increase in shale gas output for March, with the country producing a total of 1.15 bcm.

Source : Strategic Research Institute

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voda 6 juni 2017 17:23

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US shale booms and depresses oil prices again - Kemp

Reuters reported that US oil production continues to rise relentlessly, frustrating efforts by OPEC and non-OPEC oil exporters to rebalance the global market and secure an increase in the price of crude. After a devastating slump in 2015 and 2016, the US oil industry has returned to strong growth, with drilling and output rising rapidly. US production is now forecast to grow by an average of 440,000 barrels per day in 2017 and another 650,000 bpd in 2018, according to the US Energy Information Administration.

US crude and condensates output rose by 62,000 bpd month-on-month to almost 9.1 million bpd in March. Production has increased by more than 530,000 bpd from its recent low of less than 8.6 million bpd in September, adding to an already well-supplied global market and delaying a drawdown in stocks.

Weekly estimates prepared by the agency indicate output continued to increase in April and May and now stands at around 9.3 million bpd.

While the weekly estimates are considered less reliable than the more comprehensive monthly numbers, they have generally provided a good guide to trends in the monthly data.

However, most of the extra output between September and March came from oilfields in the Gulf of Mexico, where production increased by 257,000 bpd, and Alaska, where output was up by 74,000 bpd. But production from fields in the Lower 48 states excluding the Gulf of Mexico, most of which comes from onshore shale plays, also rose, by 200,000 bpd.

In March alone, production in the Lower 48 states excluding the Gulf of Mexico rose by 35,000 bpd to its highest level in nearly a year.

Source : Reuters

voda 12 juni 2017 17:17

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Argentina shale output rises on fewer wells in Q1 2017

News Base reported that Argentina produced more oil and natural gas from fewer unconventional wells in the Q1 of 2017 than before. In the first quarter, companies drilled 66 wells in shale and tight plays, 24 less than in the same period last year, according to a study by Hub Energia, a consultancy in Buenos Aires, published last week by Austral University. Even so, unconventional gas production rose 26%, while oil output was up 40% over the same period.

The study showed that this came in a large part thanks to an increase in the number of horizontal wells, which have been found to be more productive than verticals.

Another boost came from an improvement in the learning curve of how to develop plays like Vaca Muerta, the biggest for shale oil and gas in Argentina, Luciano Codeseira, co-author of the quarterly report with Roberto Carnicer, both of whom are oil and gas professors at the university.

Based on their findings, unconventional gas production averaged 28.9 mcm per day in the first quarter. Of this, shale gas production increased 31% to 5.65 mcm per day and tight gas by 25% to 23.3 mcm per day. Unconventional oil production shot up 40% to 41,072 barrels per day in the first quarter from 29,436 bpd in the year earlier period.

Despite this increase, the number of wells drilled fell 24% to 66 in the first quarter from 90 in the year-earlier period, with those for oil falling 20% to 20 from 25 and those for gas dropping 44% to 45 from 65.

Codeseira said that the key for the increase in production stems from greater productivity. With the shift to horizontal wells, with their longer lateral sections and greater number of frack stages, companies have found them to be “significantly more productive than vertical ones.” This has marked “a change in the industry.”

YPF, the country’s state-run energy company and busiest shale driller, started developing Vaca Muerta in 2012-13 with a focus on vertical wells. However, it switched over the past few years to 1,500-metre horizontals, and is now doing them longer at 2,500 and 3,200 metres, allowing for more frack stages.

Source : News Base

voda 23 juni 2017 23:19

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US oil traders hunt for shale’s pain threshold - Kemp

Reuters reported that crude prices are likely to remain under pressure until there are signs the number of rigs drilling for oil in the United States is stabilising or reversing lower. According to oilfield services firm Baker Hughes, US exploration and production firms have hired 530 extra drilling rigs since the end of May 2016 – 431 to target oil and 99 to focus on gas.

According to the US Energy Information Administration, as a result, US crude and natural gas liquids production is forecast to increase by 780,000 barrels per day (bpd) in 2017 and by more than 1 million bpd in 2018. US producers will seize more than half of the projected growth in global liquids consumption of 1.54 million bpd in 2017 and 1.62 million bpd in 2018 (“Short-Term Energy Outlook”, EIA, June 2017).

Experience suggests the Organization of the Petroleum Exporting Countries and its non-OPEC allies led by Russia will eventually respond by increasing their own output to protect market share against the threat from US shale producers. The prospect of a renewed rise in OPEC output and global oil inventories during 2018 has thrown oil prices onto the defensive over the last four months.

A continued rise in US output during the rest of this year is unavoidable given the large number of extra rigs put to work in the first half. The lag between spudding a new well and first commercial production averages about six months, so extra rigs in the first half will ensure continued growth in output during the second half. But the fall in prices, if sustained, will eventually cause the rig count to stabilise, curbing growth in output next year.

The breakeven price for drilling new wells varies considerably among shale plays and even between different parts of the same play. But a recent survey of producers in the major shale plays conducted by the Federal Reserve Bank of Dallas showed most needed U.S. crude prices of USD 45-50 to break even (“Dallas Fed Energy Survey”, March 29).

West Texas Intermediate crude prices have already declined more than USD 11 per barrel, over 20 percent, since their recent peak and are now below USD 44 per barrel. Exploration and production firms have added an extra 145 oil-focused rigs in the last 16 weeks even as WTI prices have fallen.

Source : Reuters

voda 11 juli 2017 16:16

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Investeringen in Amerikaanse schaliesector stijgen fors - IEA

Stijging met ruim 50 procent in 2017.

(ABM FN-Dow Jones) De investeringen in de Amerikaanse schaliesector stijgen in 2017 met meer dan 50 procent, ook als de olieprijs moeite heeft om boven de 50 dollar per vat te komen. Dit meldde het Internationale Energie Agentschap dinsdag in zijn jaarlijkse rapport over de wereldwijde investeringen in de energiesector.

Als gevolg van de sterk oplopende investeringen in de schaliesector zullen de wereldwijde investeringen volgens het agentschap in olie- en gasvelden in zijn geheel dit jaar met 3 procent stijgen. Daarmee doorbreekt de sector de neerwaartse trend die in 2014 begon.

De stijging van 3 procent is vrijwel volledig het resultaat van de toename met 53 procent aan investeringen in Amerikaanse schalie-olieproducenten. Het IEA sprak tevens van "veerkrachtige uitgaven" in het Midden-Oosten en Rusland.

"Er vindt een belangrijke transformatie plaats in de wijze waarop de olie- en gassector opereert", meldde het IEA in het rapport. "In plaats van zich te concentreren op grootschalige projecten met miljardeninvesteringen en een looptijd van tientallen jaren, is er meer aandacht voor eenvoudigere en gestroomlijnde projecten die zich in een kortere periode terugbetalen", aldus het agentschap.

Amerikaanse schalie-olieproducenten werden gestimuleerd door een snelle stijging van de olieprijzen, volgend op het besluit van OPEC en andere grote producenten, waaronder Rusland, om de dagproductie te verlagen. De olieprijs is sindsdien echter teruggevallen naar minder dan 50 dollar per vat, rond de niveaus van voor het OPEC-akkoord.

Door de langere periode van prijzen onder de 40 dollar per vat heeft de schaliesector, één die tot voor kort werd beschouwd als een industrie met hoge kosten, de efficiëntie verhoogd en de kosten verlaagd, aldus het IEA. Hierdoor is het break-even niveau lager komen te liggen.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires

voda 18 juli 2017 21:33

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Deeper OPEC cuts would help Shale - Mr al-Attiyah

Bloomberg reported that OPEC would hurt itself and help US shale producers if it adopted deeper cuts, the former oil minister of Qatar warned. “It’s not beneficial for OPEC to deepen their cuts because prices will go up and shale oil producers and others will take OPEC’s market share,” Mr Abdullah al-Attiyah said in interview in Istanbul. “The problem is that there is someone waiting in the dark corner for OPEC - it’s shale oil producers and whenever prices rise, they raise production.”

The Organization of Petroleum Exporting Countries and Russia’s quest to rebalance the oil market through a deal to curb production have failed to sustainably boost prices. Resilient US shale output and rising production from Libya and Nigeria - OPEC members exempt from cutting - have diluted the group’s efforts and global inventories remain well above the five-year average.

Mr al-Attiyah said that “This is a new situation for the oil market. Traditionally, it was always oil competing with other sources like coal or renewable, but today it is a fierce war” between conventional and unconventional oil resources.

Source : Bloomberg

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voda 20 juli 2017 20:12

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Shale companies push oil prices down, risk losing the market

Sputnik reported that global oil prices that saw a stunning drop of nearly 50 percent since 2014 have recently been showing signs of an increase. Brent is currently trading around USD 49 per barrel. According to analysts, the situation in the global crude market will depend on US shale producers and OPEC's policy. Analysts point out that the previous decrease was driven by an increase in shale oil production, especially in the United States under President Donald Trump. However, the market trend is currently changing towards an increase in demand for conventionally produced crude.

Oil could drop below USD 40
According to an analyst of the German media outlet Die Welt, the situation in the global crude market of 2016-2017 has been very unusual. Despite falling prices, US companies are actively investing in shale oil production, causing uncertainty in the market. Since 2016, in the US the number of shale oil rigs in operation have nearly doubled to 765. The market faced the risk of a permanent glut.

One of the driving forces behind this trend was the policy of the new US presidential administration. Soon after Trump assumed power his administration initiated the removal of environmental restrictions on the production of shale oil as part of a plan to create "American energy dominance." As a result, the shale oil industry in the US experienced a real boom.

Growing Demand
In recent months, conventionally produced crude has been under increased pressure, including from the shale industry and the market activities of non-OPEC members Nigeria and Libya.

Despite such a complicated environmental situation, global crude prices started increasing in the second half of July this year. Sources in the industry told Reuters that the reason was due to shale oil companies hitting the brakes on their investments due to low returns. At the same time, there have been new sources of demand for traditionally produced crude.

India has recently emerged as a new active player in the oil market. Previously overshadowed by China, India’s demand for fossil fuels has been intensely growing.

As a result, many analysts tend to think that a downturn in the Chinese economy will not be a negative factor for the global crude market. Moreover, Germany, one of the world’s industrial leaders, is currently showing an increase in oil consumption.

According to the International Energy Agency, demand for crude is expected to reach 98 million barrels a day by the end of 2017 and will continue to grow throughout 2018, to an estimated 99.4 million barrels a day.

OPEC Meeting in Russia
An upward trend in global crude prices proves that OPEC’s efforts to freeze output have been positive for the market.

A worker checks the valve of an oil pipe at an oil field owned by Russian state-owned oil producer Bashneft near the village of Nikolo-Berezovka, northwest of Ufa, Bashkortostan, Russia January 28, 2015.

In November 2016, the OPEC member states signed an agreement in the Austrian capital limiting oil production by 1.2 million barrels per day. On December 10, 2016, 11 non-OPEC countries decided to jointly cut oil output by 558,000 barrels per day for six months from January 2017. The agreement was due to expire in June, but was prolonged for an additional nine months on May 25.

Despite the fact that Russia is not a member of the cartel, Moscow shows readiness to coordinate its efforts with the organization.

Source : Sputnik

voda 24 juli 2017 14:21

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Halliburton profiteert van schalieprojecten

Gepubliceerd op 24 jul 2017 om 13:47 | Views: 156

Halliburton Co 21 jul
44,38 -1,00 (-2,20%)

HOUSTON (AFN) - De Amerikaanse oliedienstverlener Halliburton heeft het tweede kwartaal van het jaar afgesloten met een bescheiden winst tegenover een miljardenverlies een jaar eerder. Het bedrijf bleef profiteren van de groeiende olie- en gasproductie uit Noord-Amerikaanse schalievelden. Op dat terrein is het de grootste dienstverlener in zijn soort ter wereld.

De omzet in het tweede kwartaal steeg met 29 procent tot bijna 5 miljard dollar Onder de streep bleef voor Halliburton 28 miljoen dollar over. Een jaar eerder zette het nog een verlies van 3,2 miljard dollar in de boeken.

Vooral de Amerikaanse activiteiten van Halliburton brachten geld in het laatje. Sinds de OPEC en enkele andere olieproducerende landen eind vorig jaar nieuwe productieafspraken maakten, zijn de prijzen opgelopen. Dat heeft veel producenten van schaliegas en -olie in de Verenigde Staten ertoe aangezet meer boorplatforms in te zetten.

De resultaten in de VS compenseerden de mindere resultaten die internationaal werden bereikt.

voda 16 augustus 2017 17:19

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US shale oil output poised to keep rising despite investor concerns

Reuters reported that shale production in the largest US oilfield should rise by as much as 300,000 barrels per day by December, according to updated forecasts following the industry's latest quarterly results. The higher outlooks, amid worries the recent breakneck pace of gains may not be sustained, come on the heels of one high-profile Permian Basin producer's oil output miss last quarter and decisions by several other energy companies to trim annual budgets. Oil production from the Permian Basin of West Texas and New Mexico is closely watched because its low costs and rapid growth have pressured efforts by the Organization of the Petroleum Exporting Countries to drain a global crude supply glut.

Consultancy Wood Mackenzie sees another 300,000 barrels per day (bpd) coming from Permian projects by the end of the year, raising its year-end forecast by 200,000 bpd. Rystad Energy, meanwhile, projects output from the Permian will rise by 300,000 bpd in the six months from June to December. Both expect oil production in the Permian next year will approach or surpass the 2.7 million bpd mark.

Mr Alex Beeker, an analyst at Wood Mackenzie, said that "The Permian continues to surprise us to the upside. With US benchmark crude continuing to trade below $50 a barrel, drilling rig additions will slow, but "we also see production continuing to rise."

The robust volume outlooks come as investors sold off shares in a range of Permian shale producers after Pioneer Natural Resources Co earlier this month disclosed an unexpected drop in second-quarter oil production and higher costs on some Permian wells.

A number of oil companies cut their capital spending plans for this year, citing the sub-USD 50 a barrel prices or greater production efficiencies. The number of active U.S. drilling rigs also has slid in the past three weeks, prompting concerns that overall production growth could stall.

Pioneer executives said that greater-than-expected natural gas volumes compensated for the lower-than-forecast oil production last quarter. Gas is produced alongside oil in wells. The older a well gets, the greater the percentage of gas it produces. But in Pioneer's case, the high concentration of gas came from brand-new wells, a situation that is not common.

Pioneer insisted it had fixed the problem and would hit future oil targets, but its stock is down about 16 percent since posting quarterly results. Its swoon dragged down shares of other producers, leaving the S&P Energy index off more than 3 percent for the month.

Crude oil has a higher value to energy companies than natural gas, and Wall Street has typically rewarded companies who pump higher percentages of crude.

Parsley Energy Inc, another large Permian producer, also boosted its forecast for the percentage of gas it expected to pump this year. The company said it still expects strong oil production even if it pumps more gas.

Source : Reuters

voda 22 augustus 2017 16:28

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BHP Billiton wil van schaliegastak VS af

Gepubliceerd op 22 aug 2017 om 10:10 | Views: 926

BHP Billiton Plc 16:08
1.406,00 +40,00 (+2,93%)

MELBOURNE (AFN) - De Australische mijnbouwgigant BHP Billiton gaat zijn schaliegasactiviteiten in de Verenigde Staten van de hand doen. Dat kondigde het bedrijf aan na maandenlange druk van onder meer de activistische aandeelhouder Elliott. BHP Billiton stelt een stap in het winnen van potas, een grondstof voor mest, uit.

BHP stapte in 2011 in het schaliegas toen de prijs van een vat olie nog boven de 100 dollar lag. Inmiddels is dat minder dan 50 dollar. Volgens de nieuwe topman Ken MacKenzie zijn de Amerikaanse schaliegasactiviteiten te duur aangekocht, was er sprake van een investering op een slecht moment en bracht de tak niet de inkomsten die ervan verwacht werden.

BHP had verder een operationele winst van bijna 12 miljard dollar, zo'n 10 miljard euro, over het gebroken boekjaar 2016/2017. Vorig jaar werd nog een operationeel verlies van ruim 6 miljard dollar geleden.

voda 6 oktober 2017 16:50

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Why India’s import of US shale oil is a big deal - Report

Money Control reported as the Very Large Crude Carrier (VLCC) docked at Paradip Port in Odisha to unload its 1.6 million barrels of shale oil, history was created. This was the first time since the US allowed exports of its oil after a ban of 40 years that it has supplied to India. But the move is significant in many other ways than just the symbolism attached to it.

India and other Asian countries were dependent to a large extent on oil production in west Asia by the Organisation of Petroleum Exporting Countries (OPEC). Because of the proximity to Asian economies, these OPEC countries charged a premium for the oil they supplied.

Taking into account that the cost of transportation from any other major oil producing countries would be prohibitive, OPEC countries got away with this. India has been raising the issue of the premium with OPEC countries over the last three years. Being the third-largest oil consumer, India demanded at a meeting of OPEC members and non-members that the premium be removed. The minister of petroleum and natural gas, Dharmendra Pradhan, said at the meeting that the global oil industry stood at a delicate crossroads and that any attempt to frustrate or assign lower importance to Indian demand would be detrimental to the suppliers.

While the OPEC nations were still deliberating on the action to be taken, India moved ahead by ordering its first consignment of 2 million barrels of shale oil for around USD 100 million. This move again was not just symbolic in order to put pressure on the OPEC countries, but it made economic sense, too.

As the cartel of OPEC nations was trying to keep oil prices higher by deliberately cutting production, US oil fields were firing on all cylinders. As a result of higher supply, the spread between Dubai Oil and those from Brent and WTI (West Texas Intermediate) fields fell in favour of the western oil fields. This made importing oil from the US cheaper than those from west Asia.

The government played an important role in bringing transportation costs down as it eased restrictions on importing oil compulsorily through ships owned by Indian companies. Using a VLCC to transport oil reduced the cost of transportation and made the decision economically viable.

The refiner, in this case, Indian Oil Corporation (IOC), benefited not only from the lower price of crude but also from a better quality of the oil. Shale oil, also known as tight oil, gives the best yield for the most lucrative middle distillates. In other words, the gross refining margins (GRM) of refineries will improve if the shale oil is used. Little wonder then that Reliance Industries too has booked 1 million barrels of WTI and Eagle Ford crude each.

Finally, the geopolitical benefit that India gains by purchasing US crude also needs to be taken into account. The deal to buy US oil was struck in a meeting between Prime Minister Narendra Modi and US President Donald Trump. For India, importing crude oil also helps in bringing down the USD 24-billion trade deficit which Trump has been pointing to in his attack on India’s impact on US jobs.

Source : Moneycontrol

voda 8 januari 2018 16:27

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Shell zet in op schalie-olie - media
Brits-Nederlandse energiereus wil met schalie groei versnellen.

(ABM FN-Dow Jones) Royal Dutch Shell lijkt in te willen zetten op schalieproductie in een poging de groei te versnellen. Dit meldde The Financial Times na een interview met CEO Ben van Beurden.

De CEO van het Brits-Nederlandse energiebedrijf ziet dat Shell waarschijnlijk zal blijven investeren in schalie "omdat we het bedrijf vrij snel willen laten groeien", aldus Van Beurden tegen de krant. "De groei van de olie- en gasactiviteiten van Royal Dutch Shell zal in het volgende decennium afhangen van de productie van schalie", aldus de CEO. Van Beurden richt zich daarbij met name op schaliereserves in de Verenigde Staten, Canada en Argentinië.

Daarnaast meldde de bestuurder chemicaliën, elektriciteit en biobrandstoffen als "sleutelsectoren" te beschouwen voor de toekomst van Shell op de lange termijn, waarmee het bedrijf zich probeert te herpositioneren in verband met de aanscherping van beperkingen op fossiele brandstoffen.

Het aandeel Royal Dutch Shell noteerde maandag op een groen Damrak 0,2 procent hoger op 28,64 euro.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

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