December 16, 2017

Oil Patch Braces for Financial Reckoning – WSJ

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U.S. energy companies have defied financial gravity for more than a year, borrowing and spending billions of dollars to pump oil, even as crude prices plummeted. Until now. The oil patch is expected to finally face a financial reckoning, experts say, with carnage occurring as early as this month. One trigger: Smaller drillers are bracing for cuts to their credit lines in October as banks re-evaluate how much energy companies’ oil and gas properties are worth. But with oil trading below $45 a barrel, bigger oil outfits are struggling to stay profitable, too. Jim Flores, vice chairman of Freeport-McMoRan Inc., which pumps oil in…

Iraq Warns Oil Companies of Spending Cuts – WSJ

Iraq’s oil ministry has issued a stark warning to the international oil companies running its energy sector that it will slash spending in 2016 as the country feels the full effect oflow crude prices and the fight against Islamic State. A Sept. 6 letter from an oil ministry official is fresh evidence that Iraq is struggling to maintain a swift expansion of its energy sector that has made it the Organization of the Petroleum Exporting Countries’s second-largest producer with 4 million a barrels a day or more this summer. The letter—addressed to “all contractors” and reviewed by The Wall Street Journal—warned big oil companies…

Oil is cheaper than it’s been in years. Why aren’t gas prices? – The Washington Post

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  Oil prices have fallen this month to their lowest point in years, but fuel costs haven’t fallen nearly as quickly. While West Texas Intermediate crude, a U.S. benchmark, has dropped 15 percent in the last month, the cheapest it has been since 2009, prices at the pump have slipped just 3 percent. A barrel of crude cost $42.61 Tuesday afternoon. The national average for a gallon of regular-grade gasoline is now $2.66, according to AAA, still much cheaper than last year but well above what a gallon cost last winter. The gulf owes to a handful of factors — more people…

Obama Proposes Cuts in Methane Leaks From Oil, Gas Operators – Bloomberg Business

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  The Obama administration proposed rules to cut methane emissions from oil and gas production, the second major climate initiative by President Barack Obama this month. The proposed rules from the Environmental Protection Agency target for the first time oil wells, compressors and other equipment as part of a broad effort to reduce leaks of methane, a more intense greenhouse gas than carbon dioxide, by 40 percent to 45 percent by 2025 from 2012 levels. The industry says it has cut the pollution, and rules could choke a U.S. energy renaissance already dented by oil prices near a six-year low….

Nigeria to cut fuel imports with refinery makeover |Oxford Business Group

Low oil prices have hurt Nigeria’s upstream revenues but a long-overdue administrative restructuring of the national oil company and improved production at Nigeria’s refineries should give the country’s downstream hydrocarbons sector a welcome boost. Nigeria, the largest oil producer in Africa, has seen export earnings fall this year as oil prices have tumbled worldwide, with oil responsible for about 90% of Nigeria’s export earnings. Given that the country is reliant on imports for fuels and refined products – which account for 35% of foreign currency outflows, according to central bank data – the low prices have also slowed the increase…

NEWS  |  Nigeria’s NNPC to Review Production-Sharing Contracts, Joint Ventures  |  Rigzone

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ABUJA, Aug 16 (Reuters) – The new head of the Nigerian National Petroleum Corp (NNPC) said on Sunday he will review all production-sharing contracts and joint venture agreements with its partners “to reflect current day realities in the global oil and gas industry”. Emmanuel Kachikwu, who was appointed two weeks ago to head the state oil company, which has been accused of corruption and mismanagement, said he would remit all crude oil proceeds due to the Nigerian government and plug all revenue leaks throughout the oil sector. “The mandate … is to turn around the entire commercial processes and procedures…

Plunging oil price pushes producers to the brink | The Week UK

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Plunging oil prices have stretched the finances of producer nations and pushed several to the brink of collapse, with little sign of a change in fortunes on the horizon. CNN Money reports that Russia’s rouble hit a six-month intraday low against the dollar on Monday before recovering slightly. The currency has dropped 44.8 per cent against the dollar in the last year and 12 per cent in the last month, contributing to rapant inflation which topped 16 per cent in July, and the oil price is at least partly responsible The economy is struggling with the effects of cheap oil, which…

Shell gets final permit for Arctic oil drilling – BBC News

Oil and gas giant Shell has been granted the final permit it needs to begin drilling below the ocean floor for oil in the Arctic. Shell began work last month, but was allowed to drill just the top sections of two wells, off the coast of Alaska. Environmental campaigners are against the drilling which they say could harm the region. But the US government said it was monitoring Shell’s work “around the clock” to ensure the “utmost safety”. “Activities conducted offshore Alaska are being held to the highest safety, environmental protection, and emergency response standards,” added Brian Salerno, director of…

Africa Oil 2015 Second Quarter Financial and Operating Results

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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 13, 2015) – Africa Oil Corp. (“Africa Oil” or the “Company”) (TSX:AOI)(OMX:AOI) is pleased to announce its financial and operating results for the three and six months ended June 30, 2015. During the second quarter of 2015, the Company focused its efforts on appraisal in the South Lokichar Basin, Extended Well Tests (EWTs) in the Amosing and Ngamia fields, and reservoir and engineering studies. This focus for 2015 has the following objectives; confirming reservoir quality and deliverability, resource size and definition, and advancement of the development plans, including the export pipeline. One drilling rig is currently active in the…

Oil woes? Not in North Dakota

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An earlier version of this story incorrectly stated North Dakota’s recently-set monthly record for natural gas production. The state produced 1.6 billion cubic feet a day in June. North Dakota is holding its own when it comes to producing oil, despite the stubborn slump in oil prices and predictions that the U.S. shale boom is about to fade. A new report from North Dakota’s Department of Mineral Resources puts the state’s oil output at 1.21 million barrels a day in June, its second-highest monthly rate ever. North Dakota also set a monthly record for natural gas production, with 1.6 billion cubic feet…