DOE Chief Perry: OPEC Bill Could Spike Oil Prices
The United States needs to be cautious about pending legislation that would allow the Justice Department to sue OPEC and other oil producers over supply cuts because it could result in higher prices in the long term, U.S. Energy Secretary Rick Perry said on Thursday."We need to be really careful before we pass legislation that may have an impact that goes way past its intended consequences," Perry said at a news conference.The bill could curtail supply management by oil producers in global markets, possibly leading to a petroleum glut and lower prices.
Bill Allowing US to Sue OPEC Drawing Renewed Interest
With oil prices hitting fresh four-year highs, long-dormant proposals to allow the United States to sue OPEC nations are getting a fresh look in Congress, though they were once considered a longshot to becoming law.A U.S. Senate subcommittee on Wednesday will hear testimony on the so-called No Oil Producing and Exporting Cartels Act, or NOPEC, which would revoke the sovereign immunity that has long shielded OPEC members from U.S. legal action.The bill would change U.S. antitrust law to allow OPEC producers to be sued for collusion; it would make it illegal to restrain oil or gas production or set those prices - removing sovereign immunity that U.S.
US Shale Eases Into Detente with OPEC as Supply Cut Extended
U.S. producers applauded Thursday's decision by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia to extend output cuts until the end of 2018. Texas and North Dakota - the two largest U.S. shale-producing states - described it as a boon for their producers. Their appreciation was in contrast to a more combative style in recent years, when shale states seemed to relish openly bashing the group. "Now that it seems prices are looking to stabilise with this OPEC deal around $60 (per barrel), I think that's going to be a very nice price environment for folks around the state…
OPEC Should Heed Achnacarry Lessons: Kemp
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. Since the beginning of the modern petroleum industry, periods of high prices and concern about supplies running out have alternated with episodes of low prices and oversupply.
SandRidge No Longer a DoJ Antitrust Target
Oil and gas producer SandRidge Energy Inc said on Friday the company is no longer a target of a federal grand jury probe concerning violations of antitrust law related to the leasing of oil and gas properties. The Oklahoma-based company had said in May the transactions subject to the government's inquiry date from 2012 and prior years. The U.S. Department of Justice notified the company of the end of the probe on Thursday, the company said in a regulatory filing. Reporting by Amrutha Gayathri
Dow Chemical to Settle Price-Fixing Case
Dow Chemical Co said on Friday it has agreed to pay $835 million to settle a decade-old lawsuit brought by customers, but denied that it had conspired to artificially inflate polyurethane prices. The settlement to resolve the $1.06 billion judgment against Dow imposed in 2013, comes nearly a year after both sides abruptly backtracked from a previous agreement to resolve the case. "While Dow is settling this case, it continues to strongly believe that it was not part of any conspiracy and the judgment was fundamentally flawed as a matter of class action law," the company said in a statement on Friday.
U.S. Shale Drillers Struggle as Prices Plunge
North America's shale drillers are struggling with the renewed slump in oil prices, despite cutting costs, boosting output, and in some cases employing hedging to improve realised prices. Stock prices for most of the main shale drillers have fallen faster than the price of U.S. light crude since the middle of April. Spot WTI has fallen 20 percent since mid-April but the share price of Pioneer Natural Resources has dropped 30 percent and Continental Resources is down almost 40 percent over the same period. Both companies increased production during the second quarter.
Shell-BG Deal Tests China's Antitrust Pledge
Royal Dutch Shell's $70 billion bid for BG Group Plc will put to the test a pledge by China's antitrust regime to be more transparent, after it faced strong criticism last year from the United States and Europe. China's nascent competition law has become one of the biggest wildcards for large cross-border deals in recent years, particularly where natural resources are concerned. In 2013, China's Ministry of Commerce (MOFCOM) said miner Xstrata had to sell off a prized Peruvian copper project in order for its $35 billion merger with Glencore to proceed, despite neither company owning any assets in China at the time.
US Justices Weigh Antitrust Lawsuits Related to Energy Crisis
The U.S. Supreme Court on Monday wrestled with the question of whether a federal law governing the natural gas market would allow energy companies to evade state antitrust claims made over the western U.S. energy crisis between 2000 and 2002. The court appeared divided during oral arguments in the case, with the liberal justices voicing some support for the industrial and commercial users of natural gas who filed the lawsuits. Several energy companies, including American Electric Power Company Inc, Dynegy Inc and ONEOK Inc, were accused of manipulating published price indexes that led to a spike in gas prices.
Kemp: News of OPEC's Demise Has Been Much Exaggerated
The Organization of the Petroleum Exporting Countries (OPEC) last week made no change to its production target despite a 40 percent slide in oil prices over just five months, causing some commentators to pronounce the cartel irrelevant. If OPEC cannot act to defend the prices and revenues of its member countries, does the organization still serve any purpose? There is an assumption among some commentators that OPEC is only relevant and working if ministers can reach a production agreement in response to shifts in prices, and that strong disagreement is a sign of dysfunction.
