Monday, September 21, 2020

Light Oil News

Saudi Oil Price Hike Throws Asian Lifeline to U.S. Shale

U.S. Shale ops -Credit:FerrizFrames/AdobeStock

Saudi Arabia's decision to jack up the price of its July exports to Asia may have opened the door for U.S. crude oil producers to boost sales to the region that consumes more oil than anywhere else in the world.State-controlled producer Saudi Aramco hoisted its official selling prices (OSPs) to all regions for July-loading cargoes, but the biggest hikes were for the key Asian region, which takes the bulk of the kingdom's exports.Benchmark Arab Light crude was boosted to a premium of 20 U.S. cents barrel over the Oman/Dubai average for July, from a discount of $5.90 in June…

Apache Makes Major Discovery Offshore Suriname

Photo courtesy of Total

Apache Corp and Total SA said on Tuesday they had made a major oil discovery in a closely watched area off the coast of South America's Suriname, sending Apache's shares surging nearly 27%.The discovery, dubbed "among the most anticipated in the world" by one brokerage, is seen as central to Apache's efforts to reduce its reliance on the Alpine High venture in Texas' Permian basin, which has suffered from a dive in natural gas prices.Analysts said it was impossible to ascertain as yet how much oil the well would generate but it is just over the…

Permian Fracking Sets New Records

Graph: Rystad Energy

Hydraulic fracturing operations in the Permian shattered old records in June. The prolific shale basin in Texas and parts of New Mexico in the US has reached new heights in terms of the number of fracked wells – both on a daily basis and in terms of absolute monthly wells. Rystad Energy estimates there were as many as 18 wells fracked per day across the entire Permian Basin, or almost 550 wells during the month of June. Previously, fracking in the Permian peaked at approximately 520 wells fracked in August 2018, while the peak daily rate was reached…

Woodside Plans Maintenance at Karratha Gas Plant

(Photo: Woodside)

Australia's Woodside Petroleum has planned maintenance at its Karratha gas plant, part of the North West Shelf liquefied natural gas (LNG) export project, in the third quarter of the year, according to a notice on the company website.The first scheduled maintenance will affect one unidentified LNG train at the Woodside-operated plant in Western Australia from July 26 to Aug. 13, according to the notice.The second maintenance will be carried out on multiple LNG trains from Sept. 5 to Oct.

Shell Sees Significant Oil Discovery in Albania

Shell Upstream Albania B.V. said on Friday initial tests showed "a flow potential of several thousand barrels of oil per day" from its Shpirag 4 well in central Albania, and it needed more work to determine its commercial volume."We are pleased that these initial tests have confirmed the potential of this discovery and look forward to growing our business in Albania," Marc Gerrits, Shell's Executive Vice-President of Exploration, said.The Shpirag 4 well west of Berat had confirmed the flow potential of a significant light oil discovery, it added.More appraisal work was needed to assess commercial volumes in Shpirag…

Eni Makes Major Oil Find Offshore Angola

(Photo: Eni)

Italian oil major Eni said on Wednesday it has made a major discovery in Block 15/06, in the Agogo exploration prospect, in the deep waters offshore Angola.The find is Angola's largest offshore discovery in years. Eni said the discovery is estimated to contain between 450 and 650 million barrels of light oil with further upside.The discovery was made in the Agogo-1 NFW well, located approximately 180 kilometers off the coast and about 20 kilometers west from the N’Goma floating production storage and offloading unit (FPSO). The exploration well was drilled by the Poseidon drillship in a water depth of 1…

US to Overtake Saudi in Oil Exports

Graph: Rystad Energy

United States will soon export more oil and liquids than Saudi Arabia, thanks to the continued rise in oil production from US shale plays and the increased oil export capacity from the Gulf Coast.According to Rystad Energy, energy research and business intelligence company, it is a a pivotal geopolitical shift. The US has for decades relied on large-scale imports to satisfy its thirst for oil, but this is about to change.The Energy Information Administration (EIA) reported last week that the United States exported more crude and petroleum products than it imported.

Part of Keystone Pipeline Still Shut After Missouri Leak -TransCanada

TransCanada Corp said on Monday a part of its Keystone crude pipeline from Steele City, Nebraska, to Patoka, Illinois, remained shut after a leak was discovered in the St. Louis, Missouri, area last week.The cause and source of the spill have not been determined and there is no estimated timeline for a restart, TransCanada spokesman Terry Cunha said in an email.The 590,000 barrels-per-day Keystone pipeline system is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.TransCanada told Keystone shippers last week that it was declaring force majeure on shipments affected by the shutdown, according to a notice seen by Reuters.

Block Energy Recovers Oil at West Rustavi

Image: Block Energy

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce that more than 200 barrels of oil were recovered from the legacy vertical well 16a at its West Rustavi permit during a 10 hour flow period.An additional 300 barrels of light oil flowed to a temporary wellsite production facility over the following days. The results of the test confirm the well lies in an active hydrocarbon system and that the previously producing Middle Eocene reservoir still contains reserves and remains pressurised.

Eni Makes New Oil Find Offshore Angola

(Photo: Eni)

Italy's Eni said it ha struck a new oil discovery in the Afoxé exploration prospect located in Block 15/06, offshore Angola.The discovery, estimated to contain between 170 and 200 million barrels of light oil in place, was made in the Afoxé-1 NFW well located in the southeast area of Block 15/06, approximately 120 kilometers off the coast, 50 kilometers southwest from the Olombendo floating production, storage and offloading unit (FPSO) and 20 kilometers west of the recent Kalimba-1 discovery.Afoxé-1 NFW was drilled in a water depth of 780 meters and reached a total depth of 1…

Pucks and Pellets: Canada Eyes New Ways to Move Crude

(Photo: Canadian National Railway Company)

Canada's biggest railroad says it is attracting interest from oil producers in its effort to move crude in solid, puck-like form, as clogged pipelines divert more oil to riskier rail transport.Congested pipelines have stranded much of Canada's crude in Alberta, driving discounts to record-high levels. Canadian heavy crude traded on Friday for less than one-third of the U.S. benchmark light oil price.The latest blow to the sector landed on Thursday, when a U.S. court ruled construction must stop on TransCanada Corp's Keystone XL pipeline.Pipeline pressure has pushed more crude onto trains owned by Canadian National Railway Co and smaller rival Canadian Pacific Railway Limited.

BREAKING: Tanker, Frigate Collision Shuts Down Norwegian Oil, Gas to Europe

Sinking frigate (screenshot of NRK streaming coverage at https://www.nrk.no/. NRK is the Norwegian government-owned radio and television public broadcasting company)

Norway has been forced to close the Sture Oil Terminal near Bergen and has started closing down the nearby Kollsness gas-and-condensate terminal — a lifeline of heating gas to Europe — after an early morning collision between a $440-million frigate and an oil tanker.The frigate Helge Ingstad, now listing heavily to its port side, is loaded with torpedoes and weapons systems said to be unstable as a result of the collision. Eight navy personnel are said to be injured, including two flown to regional hospital, Haukland, but the tanker Sola’s 23 crew were all evacuated safely.Spilling from the frigate is a slick of what is reportedly light oil and helicopter fuel…

Rising Use of Plastics to Drive Oil Demand to 2050 - IEA

© emirkoo / Adobe Stock

Plastics and other petrochemical products will drive global oil demand to 2050, offsetting slower consumption of motor fuel, the International Energy Agency (IEA) said on Friday.Despite government efforts to cut pollution and carbon emissions from oil and gas, the Paris-based agency said it expected the rapid growth of emerging economies, such as India and China, to propel demand for petrochemical products.Petrochemicals that are derived from oil and gas feedstocks form the building blocks for products that range from plastic bottles and beauty…

Iran Floats Surplus Oil as Demand Falls Ahead of US Sanctions

© Kees Smits / MarineTraffic.com

Two tankers carrying Iranian condensate, a type of ultra-light oil, have been floating off the United Arab Emirates for about a month as demand for the oil fell ahead of U.S. sanctions.The tankers, carrying about 2.4 million barrels of South Pars condensate combined, have been floating off the UAE since August after South Korea halted imports from Iran while China's demand dropped during summer, according to several industry sources and shipping data.The build-up in Iranian oil supplies underscores the pressure that Iran is facing as Washington…

Canada Crude Differential Seen Staying High as Refiners Take Downtime

© Alex Lyubar / Adobe Stock

The discount on Canada's heavy crude, which reached a nearly five-year high this week, looks to remain elevated with pipelines strained and the refiners who buy it going offline for maintenance, industry officials say.Western Canada Select (WCS) oil traded on Tuesday for $34.15 per barrel less than West Texas Intermediate light oil, the biggest differential since November 2013, according to Shorcan Energy Brokers. The differential reduces the benefits of otherwise recovering global prices.WCS crude for September delivery was trading on Friday…

Energean asks Cyprus to Import Israeli Gas via New Pipeline

© suradech/ Adobe Stock

Energean is seeking approval from Cyprus for the Greek oil and gas firm to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic metres of gas a year to the island, Energean's chief executive said on Thursday.Energean, which listed on London's main stock exchange this year, has committed $1.6 billion to the Karish and Tanin fields which have potential reserves of 2.4 trillion cubic feet of natural gas and 32.8 million barrels of light oil and condensate.It estimates the five blocs it owns around Karish and Tanin contain an additional 5 trillion cubic feet of gas.

Value of OPEC Petroleum Exports Jumps in 2017

File Image (CREDIT: AdobeStock / © Leelutung)

The value of OPEC members' petroleum exports rose 28 percent in 2017, according to its annual statistical report, illustrating that its return to managing the oil market by cutting supplies boosted producers' income. Exports from the Organization of the Petroleum Exporting Countries rose in value to $578.30 billion last year from $451.80 billion in 2016, according to OPEC's Annual Statistical Bulletin 2018 issued on Thursday. The increase came in response to higher oil prices following OPEC's decision to manage supply after maximising output in favour of defending market share between 2014 and 2016 during which the value of oil exports fell.

Pemex Weighs to Start Crude Swap

Mexico's state-run oil company Pemex could start swapping domestic heavy crudes for foreign light oil in the second half of the year to raise the quality of its fuels production, said the firm's CEO Carlos Trevino.The company, whose crude output declined to 1.89 million barrels per day (bpd) in the first quarter from 1.95 million bpd last year, is looking for lighter crude grades for its refining network, which is currently operating at 48 percent of its installed capacity of 1.54 million bpd.Reporting by Marianna Parraga

Chevron sells May-loading Cossack Cargo

Chevron sold its May 4-8 loading Cossack crude oil cargo to oil trader Trafigura at a premium of $1.70 to $1.95 a barrel above dated Brent, trade sources said on Monday. Woodside Petroleum last sold a March-loading Cossack cargo at below $1 a barrel premium to dated Brent, traders have said. There were no spot Cossack cargoes available for export in April. The premium for May-loading cargo is up likely due to non- availability of Kutubu Light cargoes, traders said. Oil Search is yet to release its May-loading program for Kutubu Light oil cargoes following a powerful earthquake in Papua New Guinea in late February which knocked out ExxonMobil's LNG export facility.

Russia Ramps up Fuel Exports in Fight for European Market

© Mikhail Perfilov / Adobe Stock

Russia plans to sharply increase fuel exports and carve out a larger share of the European market following an extensive $55 billion modernisation of its refineries, companies' plans and analysts' reports show. Russia embarked on a modernisation of its biggest refineries in 2011 following a fuel shortage crisis. It also changed its tax system to favour production of cleaner and higher-quality fuel. The modernisation, which has not been completed yet, led to a surge in output of light products and exports, which has hurt European refineries' margins.