Tuesday, June 27, 2017

Naftogaz asks for China Energy Loan Extension

Ukrainian state energy company Naftogaz has asked a Chinese state bank to extend the deadline by which Naftogaz must submit project proposals to qualify for a loan worth $3.5 billion, the chief executive of a Naftogaz subsidiary said on Monday. It is the latest twist in a long-running saga over a loan agreement that Ukraine, under a previous president, had signed with the China Development Bank (CDB) in 2012. According to previous interviews with officials…

Heriot-Watt Sets Global Data Landscape for BP Statistical Review

Heriot-Watt University chief scientist Professor John Underhill (Photo: Heriot-Watt)

The economics professor who leads the in-depth data collation process for BP’s annual Statistical Review of World Energy has welcomed the energy major’s latest findings as “clear evidence of a major transformation in the global energy landscape”. Professor Mark Schaffer, Director of the Center for Energy Economics and Policy (CEERP), at Heriot-Watt University, said, “The 2017 Review is clear evidence of the interesting interaction between short and long-term energy forces.

Aker Solutions to Supply Umbilicals for Coral South FLNG

Photo: Aker Solutions

Aker Solutions was awarded a contract to deliver three umbilicals and associated equipment at ENI's Coral South project, Mozambique's first offshore field development. The work scope includes three steel tube umbilicals that will total more than 19 kilometers in length and connect the Coral South floating liquefied natural gas (FLNG) facility to the field's subsea production system. The umbilicals will be manufactured at Aker Solutions' plant in Moss, Norway, and are scheduled for delivery at the end of 2019.

Hedge Funds Abandon Hope in OPEC

File Image (CREDIT: AdobeStock / (c) scanrail)

“All hope abandon, ye who enter here,” is the warning inscribed above the gate of Hell, according to the Italian poet Dante Aligheri (“The Divine Comedy”, Inferno, Canto III, 1308-1320). Hedge funds and other money managers appear to have entered their own special version of hell and abandoned all hope that OPEC will rebalance the oil market, slashing formerly bullish bets on crude futures and options. Hedge fund managers…

EnQuest's Kraken Oilfield Latest North Sea Boost

File Image: a typical offshore North Sea installation (Credit: Craig International)

Field to produce 50,000 bpd at peak; Kraken welcome news for heavily-endebted EnQuest. EnQuest has started oil production from the Kraken field in the North Sea, the latest addition to the ageing oil and gas basin that has enjoyed a revival despite a drop in crude prices. The field, some 125 km (80 miles) east of the Shetland Islands, delivered its first oil on June 23 and is expected to produce 50,000 barrels per day at its peak, the company said in a statement on Monday.

Oil Edges up Again, but U.S. Supplies Worry

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U.S. drilling activity continues to rise; OPEC's supply cuts undermined by higher U.S. output. Oil edged up for a third straight session on Monday, climbing off last week's seven-month lows but with gains capped by the relentless rise in U.S. supply and bloated global inventories. Investors in U.S. crude futures and options increased their bets against a further rise in prices, as the number of U.S. oil rigs in operation hit its highest in over three years. U.S.

YPF Says Technology Lowering Its Shale Costs

Longer horizontal wells and technology improvements will help Argentine state-run oil company YPF SA lower costs at its most productive shale field, but better infrastructure is still needed in the remote Vaca Muerta play, an executive said. The breakeven price at the Loma Campana field is $43 per barrel and falling while development costs are $12.90 per barrel and expected to fall to $10 next year, said Pablo Bizzotto, executive manager at YPF's unconventional resources unit.

US Oil Rig Count Climbs for 23rd Week

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U.S. energy firms added oil rigs for a record 23rd week in a row, extending a year-long drilling recovery as producers boost spending on expectations crude prices will rise in future months despite this week's decline to a 10-month low. Drillers added 11 oil rigs in the week to June 23, bringing the total count up to 758, the most since April 2015, energy services firm Baker Hughes Inc said in its closely followed report on Friday.

Novatek Aims to Topple Qatar from LNG Top Spot

File photo: Novatek

Russian gas producer Novatek aims to topple Qatar as the world's biggest exporter of liquefied natural gas as it gets closer to completing its first LNG project, a top executive said, batting away concerns about U.S. sanctions on the sector. The country's largest non-state gas producer is expected to start exporting LNG from the first phase of the Yamal project, situated far above the Arctic circle, towards the end of this year and may bring forward its final stage by six months, CFO Mark Gyetvay said.

Trelleborg Acquires Automated Dynamics

Trelleborg said it has, through its business area Trelleborg Sealing Solutions, signed an agreement to acquire the U.S.-based privately-owned Automated Dynamics, a specialist manufacture of advanced composite components. The transaction, which is subject to the approval of the relevant authorities, is expected to be finalized in the third quarter of 2017. Trelleborg said it sees composites as a strategic, adjacent technology with high potential in multiple industries…

Big Oil turns to Big Data for Drilling Economies

In today's U.S. shale fields, tiny sensors attached to production gear harvest data on everything from pumping pressure to the heat and rotational speed of drill bits boring into the rocky earth. The sensors are leading Big Oil's mining of so-called big data, with some firms envisioning billions of dollars in savings over time by avoiding outages, managing supplies and identifying safety hazards. The industry has long used sophisticated technologies to find oil and gas.

Oil Edges Up Despite Huge H1 Drop

File Image (CREDIT: AdobeStock / (c) STD)

Prices in H1 have fallen about 20 pct; analysts say demand growth, lower U.S. stocks can support prices. Oil edged up on Friday, recovering from a 10-month low U.S. prices hit earlier this week, but crude remained on course for its biggest first-half decline in almost two decades as production cuts have failed to sufficiently reduce oversupply. Brent crude futures were up 14 cents at $45.36 a barrel at 1138 GMT. U.S.

Oil Market Flashes Warning About Stock Levels in 2018

Oil traders have become increasingly doubtful that OPEC will manage to cut crude stocks down to the five-year average in 2018 and keep them there. Calendar spreads for Brent futures throughout the rest of 2017 and 2018 have weakened significantly since OPEC agreed to roll over its production allocations at the end of May. Calendar spreads (price differences between futures contracts for delivery in different months) are closely linked to the expected level of oil inventories.

SBM Offshore Awarded Liza FPSO Contract

SBM Offshore said it has secured contracts from ExxonMobil to construct, install, lease and operate a floating production, storage and offloading vessel (FPSO) for the next phase of the Liza project in Guyana. The contracts follow completion of front-end engineering studies and the final investment decision on the project by ExxonMobil. The Liza field is located in the Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana.

Brent Crude Oil Back Above $45

U.S. crude, gasoline stockpiles fall but supply glut weighs on market. Oil edged up from multi-month lows on Thursday, but prices remained under pressure from a supply glut that has persisted despite OPEC-led efforts to balance the market. Brent crude futures were up 40 cents at $45.22 a barrel at 1017 GMT, after falling as low as $44.53 earlier in the day. They fell 2.6 percent in the previous session to $44.35, their lowest since November. U.S.

DNV GL Bags Maersk Oil's Tyra Verification Service Contract

Photo: Maersk

DNV GL has won a major contract to provide independent verification services for the Maersk Oil redevelopment of the Tyra field, offshore Denmark. The Tyra field in the Danish North Sea has been at the centre of Denmark’s national energy infrastructure since 1984, providing 90% of the country’s gas production. The contract will be coordinated by DNV GL in Denmark, with teams of experts from multiple DNV GL offices supporting the construction in fabrication yards across the world over the next five years.

Oil at 10-month Low after Biggest First Half Slide in 20 Years

© Jelle van der Wolf / Adobe Stock

Oil prices ended down more than 2 percent on Wednesday after hitting a 10-month low in volatile trade, as growing U.S. production and reduced Chinese refinery activity fed mounting concern over the stubborn global crude glut. U.S. crude futures settled at $42.53, down 98 cents or 2.3 percent, after touching a low of $42.13, the lowest intraday level since August 2016. Since peaking in late February, crude has dropped more than 20 percent, with only brief rallies.

GoM Rigs Evacuated ahead of Storm Cindy

Image: NOAA National Hurricane Center

Facing incoming Tropical Storm Cindy, offshore oil and gas operators in the Gulf of Mexico have begun evacuating platforms and rigs as the storm moves north-westward toward the U.S. Gulf Coast. Data from offshore operator reports submitted to the Bureau of Safety and Environmental Enforcement (BSEE) as of 11:30 CDT today indicate that personnel have been evacuated from a total of 40 production platforms, or 5.43 percent of the 737 manned platforms in the Gulf of Mexico.

Faroe Islands Looks to Restart Hunt for Oil and Gas

Oil companies are interested in restarting the hunt for oil and gas in the scarcely explored seas off the Faroe Islands neighbouring the more mature UK North Sea, the head of the Faroese Geological Survey said. No economically viable discoveries have been made on the Faroese shelf but the tiny nation hopes to entice energy firms to restart exploration as it shows them new geological data in London on Wednesday. "Oil firms have in many ways shown interest.

Tropical Storm Cindy Rolls in on US Gulf Coast

Image: NOAA National Hurricane Center

Tropical Storm Cindy is likely to hit the Gulf Coast near the Texas-Louisiana border on Wednesday night, threatening to bring flash floods from Texas to Florida, according to the National Hurricane Center. Cindy was located about 165 miles (265 km) south of Morgan City, Louisiana, early on Wednesday with maximum sustained winds of 60 miles (95 km) per hour, the NHC said. The storm was moving northwest at nearly 8 miles (13 km) per hour, and forecasters said they expected this motion to continue until it hits the coast.

Traders Hunt for Shale's Pain Threshold: Kemp

File Image (CREDIT: AdobeStock / (c) Shamtor)

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. U.S. 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 oilfield services firm Baker Hughes. As a result, U.S. crude and natural gas liquids production is forecast to increase by 780…

Oil Faces Worst H1 Since 1997

Oil steadied on Wednesday, paring earlier losses, but was set for its largest price slide in the first half of any year for the past two decades, as investors discounted evidence of strong compliance by major producers with a deal to cut global output. August Brent crude futures were flat at $46.02 a barrel by 1107 GMT, having fallen earlier to seven-month lows. U.S. crude futures for August delivery were up 4 cents at $43.55, having hit their lowest since September on Tuesday.

Oil Traders Brace for US Gulf Coast Storm

Oil traders from Texas to Louisiana braced on Tuesday for supply disruptions as Tropical Storm Cindy, formed in the U.S. Gulf of Mexico, threatened to hit refining and production centers with wind and rain later this week. Cindy was located about 265 miles (430 km) south of Morgan City, Louisiana with maximum sustained winds of 45 miles (75 km) per hour. It is expected to approach the coast of southwest Louisiana late Wednesday or Wednesday night…

Private Producer Aims to Ship Baltic's First Russian LNG Before Gazprom

LNG Gorskaya, a privately-owned Russian liquefied natural gas (LNG) producer, has launched a 340 million euro ($379 million) project to become the first LNG exporter from Russia's European coast, its CEO told Reuters. Russia expects to send LNG to Europe by the end of 2017 from its distant Arctic peninsula of Yamal but a plant on its Baltic coast could establish the country as a more immediate supplier of LNG in a region already dependent on piped Russian gas.

Offshore Gas Safety atop the Agenda for Martek Marine

Gas Sampling System (Photo: Martek Marine)

Maritime industry technology specialists Martek Marine say it is setting the bar high when it comes to offshore gas safety. The company has developed a first-of-its-kind gas sampling system for a new moored floating production unit, which forms part of the Jangkrik Complex gas fields development in Indonesia. The system has been developed to dramatically improve offshore crew safety through the use of advanced gas sampling technology.

Oil Prices at Seven-month Lows as Supplies Weigh

File Image (CREDIT: AdobeStock / (c) Gear STD)

OPEC supply jumps in May as Libya, Nigeria output recover; U.S. production also feeds glut. Oil prices fell to seven-month lows on Tuesday after news of increases in supply by several key producers, a trend which has undermined attempts by OPEC and other producers to support the market through reduced output. Benchmark Brent dropped $1.29 to a low of $45.62 a barrel, its weakest since Nov. 15, two weeks before OPEC and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January.

Neste Strike Looms as Government Mulls Stake Sale

Employee groups at Finnish refiner Neste plan to halt fuel distribution from its domestic refineries for more than six days in protest against government plans to reduce state ownership in the company. Production at the company's two Finnish refineries will continue as normal, but distribution to filling stations in the country will be interrupted between June 26 and July 2, Neste employee groups said in a statement on Tuesday.

OPEC Should Heed Achnacarry Lessons: Kemp

File Image (CREDIT: AdobeStock / (c) Shamtor)

OPEC members are struggling to protect their revenues in the face of renewed competition from U.S. shale producers and other suppliers outside the organisation. OPEC's revenues from petroleum exports have fallen to just $446 billion in 2016 from $1.2 trillion in 2012 ("Annual Statistical Bulletin", OPEC, 2017). But past experience strongly suggests OPEC's effort to stabilise oil inventories and prices while protecting its market share will fail.

US LNG Going Global

© Anatoly Kolodey / Adobe Stock photo

The U.S. liquified natural gas (LNG) market is ripe with opportunity, according to American Action Forum (AAF). "When coupled with the tension surrounding Qatar (the largest exporter of natural gas in the world), this makes U.S. LNG production a very attractive option," said Kimberly VanWyhe is the Director of Energy Policy at the AAF. In 2016, LNG exports from the U.S. totaled 184,141 million cubic feet with a value of roughly $564 million. Currently the U.S.

Mexico Auctions Two-thirds of Blocks in Shallow Water Oil Tender

Mexico on Monday auctioned two-thirds of the shallow water oil and gas blocks up for grabs in the latest round of its energy market opening, surpassing the cautious estimates of officials last week. Italy's Eni, Colombia's Ecopetrol and Capricorn Energy, a unit of Edinburgh-based Cairn Energy , were among the companies at the forefront of the bidding for 15 blocks in the southern Gulf of Mexico. Ten of the 15 blocks were taken up in the auction.

Petrobras Oil Output Jumps 4% in May

 Brazil's Petrobras produced 2.18 million barrels per day of crude oil on average in May, a 3.9 percent increase over the prior month, the state-owned company said on Monday.   Natural gas production rose 0.5 percent to 78.9 million cubic meters per day, Petrobras added.   Total oil and natural gas production in Brazil reached 2.8 million barrels of oil equivalent per day, the company said. (Reporting by Alexandra Alper; Editing by Lisa Von Ahn)

World's Largest Modularized Cracking Furnace to be Built

Wison Offshore & Marine has announced that the company has been awarded a contract to fabricate modules for 9 sets of 200,000t/y ethylene cracking furnaces for an integrated refining and petrochemical complex of Zhejiang Petrochemical Co. Ltd. in Zhejiang Province, China. The cracking furnaces will become the world's largest single cracking furnace that will be modularized and transported in its entirety. It is also the largest cracking furnace equipment in terms of production capacity in China to date.

QOS Energy Management System Delivered to SunHydrO

Photo courtesy of QOS Energy

QOS Energy completed the delivery of an innovative Energy Management System to SunHydrO, a combined renewable energy and storage R&D project led by French aggregator Sun’R Smart Energy. The SunHydrO project aims to foster the grid integration of variable renewable energy sources with the added flexibility offered by pumped hydro storage units. The increased penetration of renewable energy in the electricity network impacts grid balancing capabilities…

Oil Prices Pause after Sharp Falls

© Christian Keller / Adobe Stock

Oil prices edged higher on Monday, pausing for breath after coming under pressure over the past month from rising production in the United States, Libya and Nigeria, which has taken the edge off an OPEC-led initiative to support the market by cutting production. Brent crude futures were trading 17 cents higher at $47.54 per barrel by 1015 GMT. U.S. West Texas Intermediate (WTI) crude futures were 15 cents higher at $44.89 per barrel.

Mexico Awaits Next Oil Round with Cautious Optimism

Mexico is looking forward to its next round of offshore oil auctions on Monday with guarded optimism thanks to robust interest from oil majors for the shallow-water tenders. On Monday, Mexico auctions 15 oil and gas blocks along the southern coastal waters of the Gulf of Mexico in the next stage of the country's historic opening of the industry following a 2013-14 energy reform. In December 2013 Congress changed the constitution…

Exxon, Partners Set $4.4 Bln for Oil Project Offshore Guyana

Exxon Mobil Corp said on Friday it and partners would spend $4.4 billion to develop part of the Liza oilfield off the coast of Guyana, approving a megaproject at a time when the oil industry has grown obsessed with lower-cost shale. Exxon's decision shows that oil companies remain interested in large projects, especially offshore, even in an era of belt-tightening after two years of low crude prices. The Guyana announcement…

US Oil Rig Count Continues to Rise

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U.S. energy firms added oil rigs for a record 22nd week in a row in a year-long drilling recovery but the pace of those additions has slowed in recent months as crude prices dropped to 2017 lows  despite OPEC-led efforts to end a global supply glut. Drillers added six oil rigs in the week to June 16, bringing the total count up to 747, the most since April 2015, energy services firm Baker Hughes Inc said on Friday. That compares with 337 rigs in the same week a year ago.

Oil Bounces Back but Remains Near 2017 Lows

File Image (CREDIT: AdobeStock / (c) scanrail)

Despite pledge, OPEC and Russian oil supplies remain high. Oil prices edged up from 2017 lows on Friday but remained on track for a fourth consecutive week of losses because of excess supplies, despite OPEC-led production cuts. Brent crude futures were up 57 cents at $47.49 per barrel by 1224 GMT. U.S. West Texas Intermediate (WTI) crude futures were at $44.85 per barrel, up 39 cents. "The market took a breather yesterday and is trying to recover somewhat this morning.

Exxon to Develop Liza Field Offshore Guyana

Exxon Mobil Corp, the world's largest publicly traded oil company, said on Friday it would proceed with the development of the Liza oil field, located offshore Guyana.   Production from the field, one of the largest oil discoveries of the past decade, is expected to begin by 2020, Exxon said. (Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar)

Funds Pull Back from Permian as U.S. Shale Heats Up

File Image (CREDIT: AdobeStock / (c) Shamtor)

Cash, people and equipment are pouring into the prolific Permian shale basin in Texas as business booms in the largest U.S. oilfield. But one group of investors is heading the other way - concerned that shale may become a victim of its own success. The speed of the recovery in the U.S. shale industry in the past year has surprised oil investors after a global supply glut led to a two-year crude price slump and bankrupted many shale firms.

Norway Wants Oil Companies to Use Technology to Boost Output

Norway wants oil companies to look into using specialised technology to pump more crude and natural gas, the country's petroleum regulator said on Thursday, potentially producing billions of extra barrels as well as tax revenues. Enhanced oil recovery (EOR), such as injection of polymers or carbon dioxide into reservoirs, could help to produce an additional 320-860 million cubic metres (2-5.4 billion barrels) of oil equivalents from the 27 largest fields offshore Norway, industry regulator NPD said.

IEA Welcomes Hungary's Efforts in Energy Sector

Hungary took a major step in the right direction with its National Energy Strategy to 2030, which was published in 2011. The country must now make greater use of market-based mechanisms in the energy sector to meet its goals, according to the International Energy Agency's latest assessment of Hungary's energy policies. The main objective of Hungary's energy strategy is to ensure a sustainable and secure energy sector while supporting the competitiveness of the economy.

Oil Plus Announces Senior Management Appointments

Photo: Peter Sanders and Clarke Shepherd have taken on the respective roles of technical manager and global business development director at Oil Plus.

Oil Plus Ltd, a specialist oil and gas consultancy, has boosted its senior management team as the company looks to strengthen and grow its position in the Middle East and globally. Peter Sanders and Clarke Shepherd have taken on the respective roles of technical manager and global business development director at the firm that advises on global oilfield water management, production chemistry, microbiology, reservoir souring and process engineering.

LR Verifies BP FPSO Glen Lyon

BP’s newest North Sea asset, the Glen Lyon FPSO. (Image courtesy LR/BP)

The Glen Lyon floating production storage and offloading (FPSO) vessel, BP’s newest North Sea asset, was awarded full-term classification certificates for service in the Schiehallion and Loyal fields, 175 km west of Shetland. Conditions west of Shetland are among the most severe in the UK and Glen Lyon must be capable of operating in extreme weather. Classification means the Glen Lyon FPSO has been verified for operation to the highest levels of safety and performance by LR.

Egina FPSO to Arrive in Nigeria

 The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside. (Image: NIMASA)

On a recent visit to South Korea to inspect the Egina FPSO project, and FPSO scheduled to arrive in Nigeria in August 2017, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside said the ongoing construction of the multi-billion dollar Egina Floating Production Storage and Offloading (FPSO) project will increase the knowledge base of NIMASA as a safety administration and enhance its regulatory capacity.

Oil Supply Growth to Outpace Rise in Consumption in 2018

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Growth in oil supply next year is expected to outpace an anticipated pick-up in demand that will push global consumption above 100 million barrels per day (bpd) for the first time, the International Energy Agency said on Wednesday. The Paris-based IEA said production outside the Organization of the Petroleum Exporting Countries would grow twice as quickly in 2018 as it will do this year, when OPEC and 11 partner nations have restrained output.

Petronas Set to Auction Kimanis Crude on Dubai Exchange

Malaysia's Petronas is set to auction one of its crude grades on the Dubai Mercantile Exchange, according to sources familiar with the matter, making the state-owned company the first to sell a non-Middle East oil on the trading platform. Petronas has plans to offer September loadings of its Kimanis crude grade next month, the industry sources said. DME documents - updated in June and posted on the exchange's website - indicate Petronas trading arm Petco is looking to sell the Kimanis grade over the Dubai platform…

Uganda to Finalize Oil Exploration Deal with Nigerian Firm

Uganda is set to sign on Thursday two oil production sharing agreements with a Nigerian firm, enabling the company to begin exploration work, the government said on Wednesday. The firm, Oranto Petroleum International, was among a number of companies that bid in the country's first competitive oil exploration licensing round last year, with two other Nigerian firms and Australia's Armour Energy also getting through to final negotiations for the award of the PSAs.

OPEC and US Shale Drillers Are on a Collision Course

© Polina Petrenko / Adobe Stock

The oil market is on an unsustainable course with output from U.S. shale and other non-OPEC sources increasing rapidly, while OPEC and its allies trim production to reduce inventories and prop up prices. The International Energy Agency (IEA) projects non-OPEC output will increase by 1.5 million barrels per day (bpd) in 2018 (“Oil Market Report”, IEA, June 2017). If that proves correct, non-OPEC suppliers will capture all the increase in demand next year…

Crew Energy Suspends Production at Montney Facility

Canadian exploration and production company Crew Energy said it would temporarily suspend production at its Montney facility after Alliance Pipeline Ltd Partnership detected slope movement near a pipeline close to the Wapiti River. The suspension will result in all of Crew's Montney production being shut-in, representing about 90 million cubic feet per day (mmcf/d) of natural gas and other liquids. Based on an expected outage of three to five days…

BV Approvals Help Propel Floating Offshore Wind Sector

Floating Offshore Wind Turbines © DCNS Energies - GE

Bureau Veritas has issued a Preliminary Design Approval for a Floating Offshore Wind Turbine (FOWT) foundation designed by DCNS Energies. The floating foundation is based on a semi-submersible floater, designed to be competitive, adapted to mass production, easily towable, connectable and dis-connectable, and adaptable to site conditions and local industrial environments. This approval was provided as part of the General Electric (ex-Alstom) and DCNS Energies Sea Reed project…

WPX forms JV to Develop Permian Assets

File Image: a typical natural gas pipeline header. (CREDIT: AdobeStock / (c) Pisotsckii)

U.S. oil and gas producer WPX Energy Inc said it had agreed to form a joint venture with privately held Howard Energy Partners to develop oil gathering and natural gas processing infrastructure in the Permian basin. The joint venture will complete the construction of a pipeline, already started by WPX, and develop a new natural gas processing plant, the company said. The pipeline is designed to move about 125,000 barrels of oil per day (bpd)…

OPEC: Oil Market to 'Rebalance' More Slowly

File Image (CREDIT: AdobeStock / (c) xmentoys)

OPEC output jumps 336,000 bpd in May led by exempt producers. OPEC on Tuesday said a long-awaited rebalancing of the oil market was under way at a "slower pace" and reported that its own output in May jumped due to gains in nations exempt from a pact to reduce supply. In a monthly report, the Organization of the Petroleum Exporting Countries said its output rose by 336,000 barrels per day (bpd) in May to 32.14 million bpd led by a rebound in Nigeria and Libya…

U.S. Shale Exposed to Falling Prices as Hedges Expire

File Image (CREDIT: AdobeStock / (c) Shamtor)

Cash-strapped U.S. shale firms scaled back their hedging programs in the first quarter, leaving them more vulnerable to tumbling spot market prices just after OPEC reached a landmark deal to curb global supply. The pullback in hedging was driven by rising service costs and expectations that prices would continue to rally after the Organization of the Petroleum Exporting Countries extended those cuts in May, analysts said. However, rising U.S. production has stymied OPEC's efforts to rebalance markets.

Petrobras Says Platform Fire Briefly Halted Production

A fire on a platform belonging to Brazilian state oil giant Petroleo Brasileiro SA briefly halted oil and gas production late on Sunday, the company said, adding that there had been no injuries or damage. The fire occurred in the Marlim field around 10:30 p.m. local time on Sunday and was put out four minutes later. Petrobras said on Monday that the accident may have been caused by a leak and would be investigated. An explosion on Friday on the NS-32 drillship…

Canada Plans New Rules as Firms Find Bad Pipeline Parts

Canada's National Energy Board (NEB) will push for a shift in standards for pipeline parts after TransCanada Corp and Enbridge Inc discovered some that they were using had been substandard, a senior regulatory official told Reuters. The NEB's changes must pass external standards committees that include the pipeline industry and would change the way manufacturers have been designing parts, making production more complicated, NEB chief engineer Iain Colquhoun said.

Oil Rises as Investors Buy into US Crude

Oil rose on Monday to break a three-day losing streak, after futures traders increased their bets on a renewed price upswing even though rising U.S. drilling helped keep physical markets bloated. Brent crude futures were up by 63 cents at $48.78 a barrel by 1405 GMT, having hit a session high of $49.15. U.S. West Texas Intermediate (WTI) crude futures rose 61 cents to $46.44, having peaked at $46.69. Traders and analysts said the bounce looked technical in nature…

Statoil Aims to More than Triple Brazil Output

Norwegian oil and gas firm Statoil aims to more than triple its production in Brazil and will seek to become operator for the entire Carcara discovery, among the world's biggest in recent years, the firm's country manager said. Statoil has invested more than $10 billion in Brazil, making it the country's largest foreign offshore operator, and the Peregrino heavy oil field 85 kilometres off the coast of Rio de Janeiro is the biggest it operates outside Norway.

Hedge Funds Remain Cautious On Oil

Hedge funds remain cautious on the outlook for oil prices despite confident statements from Saudi Arabia that global oil inventories will decline substantially in the next few months. Asset managers cut their combined net long position in the three main futures and options contracts linked to Brent and WTI by 39 million barrels in the week ending June 6. The net position had been increased by a total of 114 million barrels over the previous three weeks, analysis of data published by regulators and exchanges showed.

Saudis Reduce Asia Exports, Slash U.S. Volumes

File Image (CREDIT: AdobeStock / (c) Carabay)

Saudi Arabia, the world's top oil exporter, will limit volumes of crude to some Asian buyers in July and deepen cuts in allocations to the United States, industry sources with knowledge of the matter said on Monday. State-run oil firm Saudi Aramco would supply full contracted crude volumes to at least five Asian buyers mainly in North Asia and lower volumes for some customers in India, China and South Korea, the sources told Reuters on condition of anonymity.