PDVSA Changes Oil Deals to Include Shipping as Sanctions Bite
Venezuelan state-run oil firm PDVSA has begun offering to ship its own oil, figuring in the costs in crude supply deals to help customers who have struggled to hire vessels to carry the country’s oil due to U.S. sanctions, according to company documents seen by Reuters.The United States has blacklisted vessel owners, shipping operators and threatened to sanction…
New Design for Liquid Hydrogen Bunkering Vessel Unveiled
Design and engineering services company Moss Maritime has, in cooperation with Equinor, the global maritime industry group Wilhelmsen and DNV GL, developed a design for a liquefied hydrogen (LH2) bunker vessel.The vessel design comes at a time when hydrogen is developing into a viable solution. Liquefied hydrogen at a temperature of -253°C is expected to…
Moody's Says Global Oil and Gas Heads into 2019 on Steady Footing
The global Oil and natural gas prices will be volatile, but also range-bound in 2019, Moody's Investors Service says in its annual report outlining key credit themes in oil and gas for the year ahead.While the recent announcement that OPEC and Russia will cut production helps alleviate concerns about oversupply, the pivotal questions in the coming year are…
Venezuela, Mexico Divert Crude to U.S. as Canadian Barrels Get Stuck
Cash-strapped state-run oil companies in Mexico and Venezuela have begun diverting crude historically processed for domestic use and sending it to U.S. refiners now facing transportation constraints to secure similar grades from Canada, data shows.The situation reflects an unusual set of events, including urgent needs by Venezuela and Mexico for cash for debt payments and investment…
Transporting Costs Go Up: TMM
The thirty-sixth edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals high transport prices due to declining transport capacities and rising fuel costs.In Q2 2018, the capacity index decreased by 36.3% to 70.1 compared to the previous quarter (index 110.1). In Q2 2017 the capacity index was 65.8, which means the index…
Canada Crude Differential Seen Staying High as Refiners Take Downtime
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.
Novatek, Sovcomflot Pact for LNG Shipping from Yamal LNG
Leonid Mikhelson, Chairman of the Management Board of PAO Novatek and Sergey Frank, General Director of PAO Sovcomflot have signed a Strategic Cooperation Agreement on developing a strategic partnership to transport hydrocarbons (LNG and gas condensate) produced at Yamal LNG, Arctic LNG 2 and other Arctic projects of the Company. “Our unique partnership with…
LNG Destination Flexibility Seen Spreading
Japan's biggest city gas seller Tokyo Gas Co expects that contracts for liquefied natural gas (LNG) cargoes with destination flexibility will spread from the West and Japan to be a common thing worldwide, the company's new president said. Japan's Fair Trade Commission last June ruled that destination restrictions that prevent the reselling of contracted LNG cargoes breach competition rules.
Price Rally Spells Fleeting Relief for Canadian Producers
Canadian heavy crude rallied to a two-month high relative to U.S. crude this week, offering some relief to oil producers in Alberta struggling with thin margins amid plentiful supply. The rally was likely to be short-lived, traders and analysts said, because output continues to grow without a corresponding increase in transportation capacity. Canada's crude typically trades at a discount to U.S.
U.S. Shale Breakeven Price Pegged at $50
U.S. shale producers need a WTI oil price around $50 per barrel to break even, according to an analysis of financial statements for the second quarter. Fifteen of the largest shale oil and gas producers reported total net losses of $470 million for the three months between April and June when benchmark WTI prices averaged $48. Total losses were down from…
US Shale Breakeven Price Revealed
U.S. shale producers need a WTI oil price around $50 per barrel to break even, according to an analysis of financial statements for the second quarter. Fifteen of the largest shale oil and gas producers reported total net losses of $470 million for the three months between April and June when benchmark WTI prices averaged $48. Total losses were down from…
U.S. Coal Exports Soar, Revived in Part by New Energy Policy
U.S. coal exports have jumped more than 60 percent this year due to soaring demand from Europe and Asia, according to a Reuters review of government data, allowing President Donald Trump's administration to claim that efforts to revive the battered industry are working. The increased shipments came as the European Union and other U.S. allies heaped criticism on the Trump administration for its rejection of the Paris Climate Accord…
US Refiners Process Record Volume of Crude as Demand Climbs
U.S. oil refineries are processing record volumes of crude but stocks of refined fuels remain well contained thanks to strong exports and demand at home. U.S. refineries processed 17.5 million barrels per day (bpd) of crude in the week ending on May 26, according to the U.S. Energy Information Administration ("Weekly Petroleum Status Report", EIA, June 1).
Ampelmann Debuts S-type Walk-to-Work System
Dutch company Ampelmann says it has designed its latest motion compensation access system, the S-type, as a cost effective and safe option in the transportation of workers and luggage to and from offshore platforms. The company, a provider of offshore access systems to the energy industry, is launching the new Walk-to-Work system as an alternative to using helicopters or baskets.
India Aims to Boost Low-grade Coal Sales While Global Prices High
India is trying to boost sales of its low-quality coal by offering more of the fuel at home and initiating steps to lower freight costs, while global prices are high, with the government hoping the moves will help cut imports. State-controlled Coal India, the world's largest miner of the fuel, has sharply boosted output in the past two years but has struggled…
Encana Slashes 2016 Costs by $50 Mln
Encana Corp said on Wednesday it has made $50 million in cost savings in 2016, continuing a trend of Canadian oil and gas producers squeezing spending in response to the prolonged downturn in global crude prices. Calgary-based Encana updated its 2016 guidance to reflect savings in production and mineral taxes, and operating, processing and transportation costs.
Sinopec to Sell Gasline Unit Stake
China's Sinopec Corp said on Tuesday it would sell half of its premium natural gas pipeline business to investors, a move spurred by Beijing's reform push to boost efficiency and increase infrastructure investment in cleaner fuel. Sinopec, the country's second-largest oil and gas group, said it would hold 50 percent in the Sichuan-East China pipeline project after the completion of the divestment plan that has won board approval.
Plan to Develop Wind Energy Offshore Hawaii Announced
As part of President Obama’s Climate Action Plan to create American jobs, develop clean energy sources and cut carbon pollution, U.S. Secretary of the Interior Sally Jewell today announced the first step to support wind energy development in federal waters offshore Hawaii, by issuing a call for information and nominations to gauge the wind industry’s interest in commercial wind leases in two areas offshore Oahu.
Fitch: US LNG Shipments Signal Global Price Convergence
The emergence of US liquefied natural gas as a competitive alternative for European and Asian customers, combined with an oversupplied market, should drive more convergence between natural gas prices at major hubs and weaken the link between gas and oil prices, Fitch Ratings says. The first shipment of US liquefied natural gas (LNG) from Cheniere Energy's Sabine Pass facility to Europe arrived in Portugal at the end of April.
Recent Drilling has Lowered Costs, Increased Performance
The profitability of oil and natural gas development activity depends both on the prices realized by producers and the cost and productivity of newly developed wells. Overall trends in well development costs are generally less transparent than those in price and productivity, which are readily observable in the markets or through analyses of well productivity trends such as EIA's monthly Drilling Productivity Report.
