"oil can serve to bring peace in Syria"
.... what he really means as Saudi policy: Assad gone, replaced by ... ?
npr program, transcript not available, yet
Hard To Clean Up Wastewater Spills From Oil Wells Into N.D. Stream
http://www.npr.org/2015/02/04/383724...nto-n-d-stream
Nearly 3 Million Gallons of Drilling Wastewater Spewed From ND Pipeline
http://www.commondreams.org/news/201...ed-nd-pipeline
that is 10+ times as salty as sea water.
thanks, BigOil!
pride of place? you bet your boots.
but I see your point, it's not like Baker-Hughes is a bit player in the biz or something like that. maybe it makes more sense to say "oil and gas" or "energy sector" or the like, instead of BIG OIL, like boutons.
I once tried "mineral extraction" as a catchall and was tut-tutted for it.
LNG:
Even if prices do begin to recover, the tide may have already come out on liquefied natural gas projects in North America, East Africa, Russia and elsewhere across the globe.
BG Group, one of the world’s major LNG firms, wrote down billions in assets last week as low prices undermined the economic viability of capital-intensive export projects.
For years there’s been growing interest in LNG exports as a way for producers to connect with high-priced Asian markets.
But as prices collapse, the so-called Asian premium isn’t so premium anymore.
http://www.csmonitor.com/Environment...atile-Recharge
Last edited by boutons_deux; 02-09-2015 at 03:56 PM.
I'm not sold that LNG plants are dead. Yeah, those of us that follow the market ( i have a substantial amount of money invested in a blue sky NG terminal stock) we have always known the Asian premium was going to normalize but as everyone converts from coal to natural gas the gas has to come from somewhere. The LNG plants are processors, not commodity brokers. They are paid a fee to convert gas to a liquid and back from a liquid to a gas. Their fee is the same whether NG is $2 per MCF or $10 per MCF.
But even long term, the rig count drop is misleading. Drillers cut out the oldest most inefficient rigs, and they stopped drilling in the most inefficient and expensive plays (wells that produce a lot of water, for example). They’re cutting the least productive wells and the worst equipment, but they are maximizing their most productive wells and the best equipment. I don’t know what the net difference might be, but it’s not equal to the total number of rigs that they idled…
Wall Street is already pumping up prices for next year. In 2016, a lot of junk-rated drillers are going to run out of liquidity. At the current oil prices or below, they’re unlikely to obtain more funding at reasonable terms. Vultures will be moving in with senior secured debt at extortionary rates and tight terms to where they get most of the company when it defaults and restructures. This will hurt banks, investment banks, PE firms, etc. So they WANT oil prices to go up, after a big tradable crash to end no later than in Q3.
That’s my interpretation.
The entire industry, the IEA, EIA, the Russians, everyone in the game wants prices to go up. So they’re talking them up. But if prices go up and drilling restarts in full, now with a focus on efficiency, it’s going to be a much bigger mess shortly thereafter than what we have now.
I don’t know where prices might go, but I doubt all those industry voices that claim that prices will soon go back to a “sustainable” level. That’s not how real oil busts get worked out. Last time, 700 banks failed, real estate in the oil patch crashed, restaurants closed, young people left because there were no jobs, terrible things happened…. And I haven’t seen any of it so far.
Because the fundamentals are still terrible. Oil production in the US is still rising, despite drillers shutting down drilling activities at a record pace. Drilling fewer new wells is hurting oil field services companies, and the pain is fanning out across the oil patch and beyond. It hit private equity firms, it sank energy junk bonds, it triggered layoffs, but it isn’t curtailing oil production. Not yet.
So the US remains by far the largest contributor to “global oil supply growth,” the US Energy Information Administration just pointed out, with production in 2014 jumping by 1.59 million barrels a day. By comparison: in Iraq, the second largest contributor to global oil supply growth, production edged up by 0.33 million barrels a day.
And…
“Brazil and Russia are pumping oil at record levels, and Saudi Arabia, Iraq and Iran have been fighting to maintain their market share by cutting prices to Asia,” explained the Citi report, cited by Bloomberg. “The market is oversupplied, and storage tanks are topping out.”
Production will continue to rise, despite plunging drilling activity, and won’t slow down until the third quarter this year. As the oil glut is growing, it wreaks havoc on the price of oil, potentially pushing it, according to the report, into the neighborhood of $20 a barrel – “for a while.”
http://www.nakedcapitalism.com/2015/...+capitalism%29
K.K.R. Profit Falls 89% on Turmoil in Energy Sector
Kohlberg Kravis Roberts said on Tuesday that its fourth-quarter profit fell 89 percent, hurt by turmoil in the energy sector.
K.K.R., the private equity giant, said its economic net income — a profit measure that includes unrealized gains or losses — was $86.6 million in the fourth quarter, compared with $789.6 million in the period a year earlier. The earnings amounted to 5 cents a share after taxes, significantly short of the 45 cents a share expected by analysts surveyed by Thomson Reuters.
The disappointing results reflected heavy losses from K.K.R.’s investments in the oil and gas business. One energy company in its portfolio, Samson Resources, which it acquired with other investors for $7.2 billion in 2011, was wounded by factors including falling natural gas prices and a large amount of debt.
K.K.R. said the losses in its portfolio of privately held energy investments were largely unrealized because it had not yet sold the investments. But such losses are an important factor in calculating a private equity firm’s profit.
In its overall portfolio of private investments, K.K.R. said economic net income fell 88 percent, to $76.8 million, compared with results in the period a year earlier.
The firm’s portfolio of public investments also proved troublesome, showing a loss. That segment reported an economic net loss of $11.4 million for the quarter, compared with economic net income $111.2 million in the quarter a year earlier. K.K.R. said the cause was unrealized losses in certain credit investments.
Some of K.K.R.’s rivals have also suffered losses in energy, especially as oil prices collapsed in the second half of last year. Apollo Global Management said last weekthat its fourth-quarter profit fell 79 percent, harmed by investments like the oil and gas company EP Energy.
http://mobile.nytimes.com/blogs/deal...energy-sector/
Apache Takes $5.2 Billion in Charges, Slashes Rig Counts
http://247wallst.com/energy-business/2015/02/12/apache-takes-5-2-billion-in-charges-slashes-rig-counts/
the boom is really busting
The Chilling Thing Devon Energy Just Said About the US Oil Glut
With total operating revenues of nearly $6 billion in the fourth quarter 2014, Devon isn’t the largest oil company out there, but it’s one of the larger players in the US shale revolution.
It reported Q4 results on Tuesday evening. According to its own measure of “core earnings,” it made $343 million. According to GAAP, it lost $408 million, after writing off “asset impairments” of $1.95 billion “related to the recent drop in oil prices.”
Stuff happens when the price of oil plunges.
But production soared – and will continue to soar.
In other words, it would spend less, it would use fewer rigs, but it would spend more efficiently – and produce more oil.
Oil – not natural gas. The price of natural gas has been a fiasco for years, and Devon has been moving away from it by selling assets and focusing its resources on oil-rich plays. Hence, natural gas production has actually edged down over the last three quarters even on a retained assets basis.
Other drillers are doing the same. Innovation, design improvements, efficiencies, and a relentless focus on the most productive plays will see to it that production continues to rise, despite the plunging rig count, despite the evaporating capital expenditures, despite the layoffs.
They will lose money. They have a lot of debt because the fracking boom was funded by debt. To stay alive, they must meet their interest costs.
But if they slow down drilling, and production tapers off in line with the steep decline rates of fracked wells, their interest costs might eat up 50% or more of their shrinking operating profits, and the risk of default would soar – turning off the money-spigot entirely. Default might be next.
This is the brutal irony:
drillers are hoping that rising production achieved with greater efficiencies allows them to meet their interest costs; but rising production pressures the price of oil to a level that may not be survivable long-term for many of them.
They can lose money, burn through cash, and keep themselves above water through asset sales for only so long. And this is the terrible fracking treadmill they’ve all gotten on and now can’t get off.
http://www.nakedcapitalism.com/2015/...+capitalism%29
Last edited by boutons_deux; 02-19-2015 at 09:27 AM.
US Crude Oil Inventory Grows Larger Than Ever
http://247wallst.com/energy-economy/...#ixzz3SDIKRn2Z
So SA gas goes from $1.70 to nearly $2? My guess is the speculators are having a ball betting gas prices up and down.
Oklahoma scientists pressured to downplay link between earthquakes and fracking
Oklahoma has been experiencing an earthquake boom in recent years. In 2014, the state had 585 quakes of at least magnitude 3. Up through 2008, it averaged only three quakes of that strength each year. Something odd is happening.
But scientists at the Oklahoma Geological Survey have downplayed a possible connection between increasing fracking in the state and the increasing number of tremors. Even as other states (Ohio, for example) quickly put two and two together and shut down some drilling operations that were to blame, OGS scientists said that more research was needed before their state took similar steps.
Now, though, emails obtained by EnergyWire reporter Mike Soraghan reveal that the University of Oklahoma and its oil industry funders were putting pressure on OGS scientists to downplay the connection between earthquakes and the injection of fracking wastewater underground. In 2013, a preliminary OGS report noted possible correlation between the two, and OGS signed on to a statement by the U.S. Geological Survey that also noted such linkages.
Soon after, OGS’s seismologist, Austin Holland, was summoned to meetings with the president of the university, where OGS is housed, and with executives of oil company Continental Resources.
Continental CEO Harold Hamm was a major university funder, while the university president David Boren serves on Continental’s board, for which he earned $272,700 in cash and stock in 2013.
http://grist.org/news/oklahoma-scientists-pressured-to-downplay-link-between-earthquakes-and-fracking/?utm_campaign=daily_feed&utm_medium=email&utm_sour ce=newsletter
did m>s dieded?
The rush to hoard oil is getting so intense that there's a market forming for oil storage futures contracts
More and more investors and traders are betting on a rebound in oil prices, and many effectively are hoarding oil.
But when you hoard oil, you have to store it somewhere. In fact, spare storage capacity is getting so tight that the cost of storage is surging, sending the oil futures market into super contango, which is where the futures contract price is higher than the expected price.
http://www.businessinsider.com/oil-s...mmodity-2015-3
Oil is piling up (pooling up?), but gas price in SA has jumped from $1.70 to $2.30 in a couple weeks. Supply and demand?
You really should just shut up when it comes to anything to do with economics. This happens every February, it has to do with them changing to a summer blend.Oil is piling up (pooling up?), but gas price in SA has jumped from $1.70 to $2.30 in a couple weeks. Supply and demand?
The summer blend is more environmentally friendly.
Boy you are on a ing roll boutons; you endorsed corporate power in one thread, on women in another, and now you hate the environment.
ter McGee
Summer blend is nothing more then a scam to raise prices.
STFU ter.
Yeah dip , that isn't how prices work.
ter McGee
Go rim an oil exec you putz.
US Running Out Of Room To Store Oil; Price Collapse Next?
By JONATHAN FAHEY
AP Energy Writer
more...NEW YORK (AP) -- The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.
For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country's main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week.
If this keeps up, storage tanks could approach their operational limits, known in the industry as "tank tops," by mid-April and send the price of crude - and probably gasoline, too - plummeting.
"The fact of the matter is we are running out of storage capacity in the U.S.," Ed Morse, head of commodities research at Citibank, said at a recent symposium at the Council on Foreign Relations in New York.
Morse has suggested oil could fall all the way to $20 a barrel from the current $50. At that rock-bottom price, oil companies, faced with mounting losses, would stop pumping oil until the glut eased. Gasoline prices would fall along with crude, though lower refinery production, because of seasonal factors and unexpected outages, could prevent a sharp decline.
http://hosted.ap.org/dynamic/stories...03-03-12-10-09
Its called Boom/Bust cycle. This is not new or news even.
hey, , was gas at $1.75 with Feb in the last 5 - 10 years? every Feb?
I call it market, business, capitalism's fundamental instability. A very heavy dose of regulation, esp in the financial sector, should lessen both the crests and troughs, providing a more predictable, plannable society.
The way the game is rigged now, the crests enrich the 1% most, while the troughs punish the 99% most, same rigging as the financial sector's we take private gain from winning high risk bet, you taxpayers' take losses from us losing the bets.
Gasoline went from $1.70 to $2.20, +30%.
Did the price of oil jump 30%?
Did supply/demand change 30%?
And says a 30% price swing in a few weeks happens every Feb?
Refining. Occasionally decouples cost of crude and gasoline. Read up on it.
And yes. A price e happens every spring. Nothing new.
Take a break from rimming your oil exec and read up on this.
Internal Memos Show Oil Companies Intentionally Limited Refining Capacity To Drive Up Gasoline Prices
http://www.consumerwatchdog.org/news...drive-gasoline
Boosting Big Oil Profits
http://www.cbsnews.com/news/boosting-big-oil-profits/
lol 8 and 14 year old links.
Take a break from being a re and get current.
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