Daily Energy News From OilSlick.com

Barron's Concerned About Walter Energy's Valuation
Shares of metallurgical coal producer Walter Energy enjoyed quite a run in 2009, gaining close to 340%. That was good for one of the top performances in the coal sector and has Walter shares heading into 2010 above $75, but a recent report in Barron's says the current valuation may be tough to sustain for Walter. Continue reading
U.S. Rig Count Up 11 This Week
Oil services firm Baker Hughes (BHI) said the number of rigs exploring for oil and natural gas in the U.S. rose by 11 to 1,189 this week as producers boosted activity due to rising oil prices. The rig count report is normally delivered on Friday, but was issued today due to the New Year holiday. Continue reading
Eni Enters Production Deal With Venezuela
Italian oil giant Eni SpA and Venezuela's state-run oil company Petroleos de Venezuela SA have announced an agreement for producing and refining crude oil found in Venezuela's Orincoco basin. Petroleos de Venezuela will hold a 60% stake in the project and Eni will hold 40%. Financial terms were not disclosed. Continue reading
Indonesia Expects Lower Oil Exploration Spending In 2010
Indonesia, southeast Asia's biggest economy, said it expects oil contractors to spend $2.3 billion on exploration projects in the country in 2010, down from an estimated $2.7 billion in 2009. Indonesia produced 949,100 barrels of crude per day in 2009, missing its goal of 960,000 barrels per day. The country produced 1.5 million barrels a day in the 1990s, but has since become a net importer of oil, according to press reports. Continue reading
Noble Energy May Lose Ecuador Contract
Ecuador's state-run oil company, Petroecuador, may cancel a contract with a unit of oil and gas producer Noble Energy due to Noble's alleged failure to have its investment plan properly approved by authorities in Ecuador. Energy Development Corp., the Noble unit in question, reduced its development plan to $230 from $603 million rather than increasing it, according to press reports. Continue reading
Turkmenistan Awards $9.7 Billion In Gas Contracts
Turkmenistan awarded natural gas service contracts worth up to $9.7 billion to companies from China, South Korea and the United Arab Emirates to develop the South Yolotan region of Turkmenistan. The central Asian country holds the fourth-largest natural gas reserves in the world and the South Yolotan area is one of the world's largest deposits of the fuel, according to Bloomberg News. Continue reading
Occidental Petroleum Gets Favorable Write-Up In Barron's
Oil producer Occidental Petroleum was the subject of a bullish piece in Barron's, which said that despite the fact that natural gas is getting most of the attention right now, investors in the energy patch sector may be better served sticking with oil in 2010, including companies like California-based Occidental. Continue reading
Lukoil, Statoil To Develop Iraqi Oil Field
Russian oil giant Lukoil and Norway's state-run oil firm Statoil signed an agreement with Iraq to develop the West Qurna 2 oil field, one of Iraq's most active oil fields. According to press reports, West Qurna 2 has 12.88 billion barrels of recoverable crude and Lukoil and Statoil will aim to increase daily production there to 1.8 million barrels over the next 13 years. Continue reading
Potash Shares Slide After Price Cut Announcement
Potash Corp. of Saskatchewan, the largest North American maker of its namesake fertilizer, lost nearly 2% on Tuesday after the company announced it would cut the price of Midwest potash fertilizer to $390 per metric ton for January 4-February 28 period from the current price of $515 per metric ton. Continue reading
Kazakhstan Attempting To Secure Stake In Major Oil Field
Kazakhstan is in talks with a foreign oil firm in an effort secure a government stake in the Karachaganak field, one of the country's premier oil fields. The central Asian country is trying to get a better handle on its own crude oil and natural gas resources. Continue reading
PetroChina Gains Approval For Biggest North American Acquisition
PetroChina, China's biggest oil company, gained approval from the Canadian government to proceed with the acquisition of stakes in two western Canada oil sands projects. PetroChina will pay $1.8 billion for a 60% share in Athabasca Oil Sands Corp.?s MacKay River and Dover oil- sands projects, according to Bloomberg News. The acquisition is PetroChina's largest in North America to date. Continue reading
Baker Hughes Loses Legal Bid Over Drill Bit Design
Baker Hughes, the oil services giant, lost a legal bid to block rival Varel International from selling a drill bit Baker Hughes says was copied from its designs. In a December 23 ruling that was posted to the Texas State court's Web site on December 28, a judge blocked Baker Hughes' request until the case goes to trial in April. Continue reading
Headline Briefs from Peak Oil Review
This is the summary headlines from last week as presented in the weekly Peak Oil Review. Continue reading
Korea National Purchases Kazakh Oil Company
Korea National Oil Corp., the state-run oil company of South Korea, acquired Kazakhstan-based Sumbe for $335 million in an effort to bolster South Korea's energy reserves. Korea National already has four oil projects in Kazakhstan and views the country as an integral part of its Central Asia operations. Continue reading
OGX Petroleo Finds More Oil In Campos Basin
OGX Petroleo & Gas Participacoes SA, the Brazilian oil producer, followed up last week's announcement of a significant discovery of crude oil in Brazil's Campos Basin, with news of another find in the region. The company said that it found hydrocarbons in the Aptian and Barremian sections of its 1-OGX-3-RJS well off Brazil?s southeastern coast, according to Bloomberg News. Continue reading
Indonesia Reserves Decline, Production Targets Missed
Indonesia may fall short of this year's oil-production target of 960,000 barrels per day due to technical problems, and weak production from the Cepu field. Continue reading
Saudi King Abdullah Happy With Oil Prices
Saudi king Abdullah described oil prices as satisfactory in an interview published on Saturday, at a time when the largest OPEC producer is seeking price stability. Continue reading
Iran and Iraq Remain On Alert Over Well
A little over a week ago Iran soldiers in a 25-vehicle convoy drove into Iran and seized an oil well and told the Iraqi worker to leave. After occupying the well for about 24 hours they packed up and left leaving an Iranian flag flying above the well. Continue reading
Estimates On Integrated Oil Stocks Cut By Soleil
Soleil Securities lowered ratings and reduced earnings estimates for the major U.S. integrated oil companies, citing ''reduced crude and refining margin forecasts.'' Soleil noted that BP's Global Indicator Margin has averaged $1.30 per barrel in the fourth quarter, the lowest level in 19 years. Continue reading
Agrium Sells Some Assets To Get FTC Approval For CF Industries Bid
Agrium, the Canadian fertilizer maker, agreed to sell some assets in order to gain Federal Trade Commission (FTC) approval for its $5.2 billion hostile takeover offer for rival CF Industries. Agrium said it has been granted all the necessary regulatory approvals by the FTC under the Hart-Scott-Rodino Antitrust Improvements Act. Continue reading
Five-Minute Headline Summary For December 23
Venezuela will sell China an additional 130,000 barrels of oil per day starting in 2010, bringing the daily total to 630,000. Venezuela's state-run news agency quoted President Hugo Chavez as saying the country will eventually send as much as 1 million barrels per day to China. Venezuela is an OPEC member. Continue reading
Weekly Rig Count Drops By 15
The holiday-shortened week brought a decline for the total number of rigs exploring for oil and natural gas in the U.S with 15 fewer rigs in operation this week compared to last week, according to oil services firm Baker Hughes. Baker Hughes (BHI) normally releases the rig-count data on Friday, but the release date was moved up due to the Christmas holiday. Continue reading
Iraq Production Plans Could Rankle OPEC
Iraq's plans to tap into its vast oil reserves and boost production may draw the ire of OPEC and pose a problem the cartel's efforts to firm up oil prices. Iraq has no production limits and that could be an issue for OPEC, which said it expects to discuss output with Iraq at some point. Iraq has the third-largest known oil reserves in the world behind Saudi Arabia and Iran. Continue reading
Shell Needs Government Approval Before Selling Nigerian Assets
Royal Dutch Shell, Europe's largest oil company, will need approval from the Nigerian government prior to selling up to $5 billion of its assets in the west African nation. Shell announced on Sunday it is looking to sell certain onshore assets in Nigeria. Potential buyers could be China's Sinopec and Nigeria's Oando Plc, according to the Sunday Times. Continue reading
Lease Sales Soar In Bakken Region
Sales of federal oil and gas leases in Montana and North and South Dakota set a record in fiscal 2009, according to statistics issued by the Bureau of Land Management. Western North Dakota saw the majority of the sales activity, with $74.2 million of $75.2 million in lease sales, BLM said. Continue reading
Mosaic, Potash: Bullish In The Eyes Of Goldman
Potash, the largest North American maker of its namesake fertilizer, and Mosaic, the second-largest potash producer, were the focus of a bullish research note from Goldman Sachs today. Goldman said it was using last week's sell-off in fertilizer stocks as an opportunity to get more bullish on the group. Continue reading
Bucy Buffs Up
Bucyrus International announced on Sunday that it was buying the mining business division of Terex for $1.3 billion in cash. Terex is the world's third largest maker of heavy earth-moving equipment. Continue reading
Rig Count Rises +32 For This Week
The number of rigs searching for crude oil and natural gas in the U.S. rose by 32 this week following a rise of 20 rigs last week, according to oil services firm Baker Hughes (BHI). Baker Hughes said that 773 rigs were exploring for natural gas and 409 for oil. Continue reading
Merrill Lynch Weighs In On Oil Stocks
Bank of America/Merrill Lynch has joined the recent chorus of analyst chatter on oil stocks, issuing a 124-page report today where Chevron, the second-largest U.S. oil company, was named the group's top pick. Noting that stock selection in the sector is key going forward, BofA/Merrill gave Chevron (CVX) a ''buy'' rating with a $95 price target. That's more than $18 above where the stock closed on Friday. Continue reading
Anadarko, Devon Make Brazilian Pre-Salt Discovery
Anadarko Petroleum, the independent oil and gas firm, Devon Energy, the natural gas giant, announced they made a pre-salt oil discovery off the coast of Brazil in the Campos Basin. An exploratory well was drilled to 16,300 feet including 4,440 feet of water, the companies said. Continue reading
Vale Forecasts Rise In Potash Prices
Vale, the Brazilian mining giant that is trying to expand its potash fertilizer business, is forecasting a 25% pop in international potash prices next year as farmers boost production due to higher food prices. Vale said potash prices may rise to $500 per metric ton in 2010 from the current price of roughly $400 per metric ton. Continue reading
Upgrades And Downgrades From The Energy Sector
Here's a recap of some recent analyst action on energy stocks. Continue reading
Exxon-XTO Deal Could Be A Boon For Oil Services Firms
Exxon Mobil's $41 billion purchase of XTO Energy could be just what the doctor ordered for oil services firms that have endured reduced drilling operations in the North American market. Many oil services companies have the ability to help Exxon develop shale resources, perhaps the crown jewel of the XTO acquisition, but at least one analyst thinks Exxon will stick with the biggest drilling services providers. Continue reading
Oil Prices Explode Higher, Fed Stands Pat
After nine days of losses the shorts riding crude into expiration were bucked off as crude prices rebounded to $73.13. That is a long way from the $68.59 we saw just a couple days ago and the majority of the gains were short covering. Continue reading
Cobalt IPO Proves Disappointing For Goldman, Carlyle
Goldman Sachs and private equity firm Carlyle Group were forced to lower the price for the initial public offering of Cobalt International Energy, an oil explorer with no profits or revenue after failing to convince investors to pay up for Cobalt's tangible net assets. Last week, the firms said they hoped to raise $1.1 billion from the IPO. Continue reading
Five-Minute Headline Summary For December 16
Eni, Italy's largest energy company, said it has started production at the Oyo oil field off the coast of Nigeria. Eni (E), said the project could produce about 25,000 barrels of crude per day. Eni has a 40% interest in the project, located in the Niger Delta. Two partners control the remaining 60%. Eni's equity production in Nigeria has averaged 130,000 barrels a day this year, according to press reports. Continue reading
Conocco, Peabody Land Coal-To-Gas Permit
ConocoPhillips, the third-largest U.S. oil producer, and Peabody Energy, the largest U.S. coal producer, won a draft permit from Kentucky regulators which may enable the two companies to build a coal-to-natural gas facility near a coal mine in Muhlenberg County. Continue reading
More Fertilizer Drama As Terra Rebuffs CF
The soap opera that is CF Industries' attempted takeover of Terra Industries added a new chapter today as Terra rejected CF's latest acquisition offer. CF has been trying to acquire Terra Industries for most of 2009 and has raised its offer six times, most recently to $36.75 a share, or $4.6 billion. Continue reading
PetroChina Makes Significant Qinghai Discovery
PetroChina, China's largest oil and gas producer, discovered more than 100 million metric tons of geological reserves in China's Qinghai province, Bloomberg News reported, citing the Xinhua News Agency. The discovery is the largest in the Qinghai oilfield in three decades. Continue reading
Oil Demand To See Slight Uptick
The International Energy Agency says crude oil demand will rise slightly more than expected in 2010, due in large part to China's robust economic output. The IEA said it expects crude consumers to burn an average of 86.3 million barrels a day next year, 130,000 barrels more than previously forecast, according to a report in the Wall Street Journal. Continue reading
Eni May Need To Shed More Assets
Italian oil giant Eni has been selling non-core assets in an effort to raise cash, but that might not be enough to fuel growth and maintain the company's dividend policy. That grim news could result in the sale of strategic assets, according to press reports. Continue reading
U.S. Energy Firms Bet On Polish Shale
U.S. oil giants such as ConocoPhillips and Marathon Oil are betting that Poland, which currently imports most of its natural gas, can eventually become an exporter of the fuel due its vast shale formations. Shale are rock formations that can yield oil and natural gas. Shale accounts for 15% of U.S. natural gas output. Continue reading
Shell, Lukoil Win In Iraqi Bidding
Royal Dutch Shell and Russia's Lukoil are slated to join BP and Exxon Mobil as the biggest oil producers in Iraq following their winning bids in this weekend's oil field auctions. Iraq was auctioning rights to 28% of its crude oil assets. Iraq, which has the third-largest oil reserves in the world, is aiming to boost production to 12 million barrels a day or more. Continue reading
China, Kazakhstan Enter Major Natural Gas Agreement
China and Kazakhstan announced that a 1,300-kilometer natural gas pipeline in Kazakhstan will come online in a few days, marking the first export route in Central Asia that doesn't involve Russia's heavy hand in the transport of natural gas. KazMunaiGaz, the Kazakh state-controlled energy firm, said the pipeline will eventually be able to 30 billion cubic meters of natural gas from Kazakhstan to Turkmenistan. Continue reading
Rig Counts Spike +20 For Week Ended Dec-4th.
Baker Hughes reported today that rig counts in the U.S. rose to 1,161 for a gain of 20 rigs over the prior week. This is still down -629 from the same period in 2008 but activity is increasing. Continue reading
Carlyle, Goldman Seek $1.1 Billion IPO For Cobalt Energy
Private equity giant Carlyle Group and Goldman Sachs (GS) are hoping investors will pony up $1.1 billion for an IPO by Cobalt International Energy Inc., an offshore driller that has no revenue or profits. Carlyle, Goldman and three other firms plan to offer 63 million shares of Cobalt at $15-$17 in an IPO scheduled for December 15, according to Bloomberg News. Continue reading
Chevron Wins Gas Exploration License In Poland
Chevron (CVX), the second-largest U.S. oil exploration firm, won a five-year license to explore for natural gas across 800 square kilometers in southeastern Poland. Poland's Environment Ministry approved the license on Friday, which will allow Chevron to carry out seismic studies and drilling activities up to 3,500 meters underground. Continue reading
Ferrellgas Partners Downgraded By UBS Analyst
Ferrellgas Partners LP (FGP), the propane distribution partnership, saw its shares downgraded by UBS analyst Michael Barone to ''neutral'' from ''buy.'' Barone also lowered his price target to $20 from $21. Continue reading
Chevron Pares 2010 Cap Ex By 5%, El Paso To Boost Spending 30%
Chevron (CVX), the second-largest U.S. oil company and a member of the Dow Jones Industrial Average, will reduce its 2010 capital and exploratory spending by 5% to $21.6 billion. The 2010 budget will focus mainly on oil and gas exploration projects. Continue reading
Anadarko Finds Oil At Lucius Prospect In Gulf Of Mexico
Independent oil and gas explorer Anadarko Petroleum (APC) said it has discovered crude oil at the Lucius prospect in the Gulf of Mexico. Anadarko found 200 feet of net pay in subsalt Pliocene and Miocene sands, according to a press statement issued by the company. Continue reading
Bidding For Iraq Oil Fields Opens
Following a less than impressive round of bidding in June, international oil giants are preparing to bid for massive stakes in Iraq's oilfields on Friday. A second round of bidding is slated for Saturday. Continue reading
Chinese Talks Losing Importance, Potash CFO Says
Wayne Brownlee, the chief financial officer of Potash Corp. (POT), the world's largest maker of potash fertilizer, said China's talks with Belarusian Potash Co. will have a dwindling impact on fertilizer prices the longer the discussions drag on. Continue reading
Johnson Rice Shifts Ratings On Oil Services Stocks
Research Firm Johnson Rice & Co. has changed its ratings on several oil services stocks, noting that offshore drillers have outperformed the PHLX Oil Service Sector Index (OSX) by 3,000 basis points year-to-date. Johnson Rice sees further downside to pricing and utilization estimates on the heels of the greatest rig fleet capacity expansion in three decades. Continue reading
California to Light Up Thanks to Oregon's Wind
General Electric Co. won a $1.4 billion contract to supply turbines and services for an Oregon wind farm that would be the largest completed in the U.S. so far and supply a tenth of Southern California Edison?s renewable energy. Continue reading
Iraq Rolls Out Red Carpet for Big Oil
Some of the biggest oil companies on the planet are heading to Baghdad to bid on developing some of the largest oil fields still capable of providing large production gains. Security will be exceptionally tight and you can bet the bid site will be targeted by the bombers. Still, there are billions in profits to be made and the oil majors are not going to let a little shrapnel deter them. Continue reading
Petrobras in a Rush to Produce Tupi Oil
Brazilian state-run energy company Petroleo Brasileiro, or Petrobras, wants to move up the installation of a pilot production project at the Tupi offshore oil field. Petrobras is aiming to install the pilot project at least two months early. Continue reading
Mexico, King of the Hedge
The Financial Times reported late Tuesday that Mexico has hedged all their expected 2010 crude exports in a $1 billion bet to protect against a catastrophic decline in prices. Continue reading
Oil Inventory Levels Plunge, Gasoline Soars
Crude oil inventory levels fell -3.8 million barrels to 336.1 million for the week ending on Dec 4th. This was far below the expected +250,000 barrel build. Gasoline rose by +2.3 million barrels on top of a 4 million gain in the prior week. Distillates added to the build in refined products with a gain of +1.6 million. Continue reading
Asian Oil Demand Rebounding
With the emerging Asian economies rebounding from the global economic downturn faster than the G-7 economies, the Asia-Pacific region is the leading driver of global economic recovery and higher oil demand. Although the emerging Asian economies were generally less exposed to financial risks and credit default arrangements than the U.S. and European economies, many of them have taken strong stimulus measures throughout 2009 that are expected to boost domestic demand, financial credit, and greater investment in transportation and infrastructure. Continue reading
Oil Prices Fall Under $73
Oil prices fell on Tuesday as the flight to quality pushed the dollar higher and weak economics pushed the markets lower. Weak demand was a factor but the new sour crude contract was also to blame. Continue reading
Drillers Still Finding Oil in Gulf
So far this year there have been 12 discoveries in the Gulf of Mexico in over 1,000 feet of water. These discoveries represent more than 1.35 billion barrels but don't expect that oil to come ashore any time soon. That was the most Gulf oil found in a single year since 2002. Continue reading
Five-Minute Headlines for Dec-7th
Saudi Aramco plans to drill 45-50 exploration wells in 2010. Chevron's $82 billion Wheatstone LNG deal is Australia's biggest. China car sales pass 12 million. Offshore oil drilling gets go-ahead in Alaska's Arctic. Bernanke gives markets a reality check. Continue reading
Oil Investment Shrinks 20% During Financial Crisis
Oil ministers of the Organization of Arab Petroleum Exporting Countries (OAPEC) said Saturday that international investment in petroleum has shrank 20 percent due to the global financial crisis. Continue reading
Notes from the Peak Oil Review for Last Week
The following is a list of headlines summarized in the weekly Peak Oil Review on Dec-7th covering the past week. Continue reading
Environmentalists Are Filing Suit to Prevent Mining of Oil Shale
13 environmental groups, including the Wilderness Society, Sierra Club and Natural Resources Defense Council, teamed up in January 2009 to file suit against the federal government for opening up all that western U.S. land to oil shale development. They contend the oil produced from oil shale produces 50% more carbon dioxide than conventional oil. Continue reading
Saudi Arabia Hails Perfectly Priced Oil Market
Saudi Arabia said on Saturday that oil prices were "perfect" and the global market stable as Arab heavyweights in the OPEC cartel appeared united in their support for maintaining production quotas. Continue reading
Libya Delays Plans To Boost Capacity Until 2017
Libya has delayed plans to raise its oil output capacity until 2017 because of budget constraints and the market situation, Oil Minister Shukri Ghanem said on Saturday. "Our plan was to reach three million barrels per day by 2012, but because of the market conditions, as well as budget constraints, we delayed it to 2017" Continue reading
U.S. Active Rig Count Increased For Seventh Straight Week
The active rig count in the U.S. increased by +4 to 1141 for the week ended on Dec-4th. Canada increased by +47 to 364 and the international rig count dropped by -3 to 983 Continue reading
Weak Oil Demand Could Pose Market Risk
Although hopes of an economic recovery and an upturn in demand drove crude oil prices to over $75 per barrel, a further rise appears doubtful. Serious concerns are emerging over the sustenance of the global economic growth and its impact on oil demand while supply continues to rise steadily and inventories are at a historic high. Continue reading
Five-Minute Headline Summary for December 3rd
Saudi Aramco Delays Manifa Oil Field Until 2015. OGX Says It May Have Found New Oil Field in Brazil. Goldman Sachs Says $110 Oil is Coming. Total SA Says Oil Rally Reflects Looming Supply Crunch. Continue reading
Five Minute Headline Summary for December 2nd
OPEC production higher as cheating increases. Gold explodes to a new historic high. Iranian President Mahmoud Ahmadinejad said it would be impossible for world powers to isolate his country. Iran's Oil Minister says Iran could halt exports. Barclay's warns on Mexican oil output. Total to Invest $18 Billion in 2010. Russian Nuclear Weapons needed to fill uranium shortage. Continue reading
Oil Inventories Surge Again
For the week ended Nov-27th the amount of oil in inventory in the U.S. rose by +2.1 million barrels to 339.9 million. This was the largest weekly gain since the week of Sept-25th. Crude oil prices fell on the news to close at $76.61. Continue reading
U.S. Refining Industry In Flux
No new refineries have been built in the U.S. since the 1970s. That does not mean refinery capacity is dropping. Refiners can increase capacity at existing sites by upgrading equipment and adding new processes. This is much simpler and cheaper than building a new refinery from scratch. Continue reading
Five Minute Headline Summary for December 1st
Highlights from the news for Monday December 1st. New record production in Nigeria. Warnings on oil demand in 2010 from the IEA. Mexico slashes Pemex budget again. India's GDP up +7.9% in Q3. US oil demand revised lower for September. Coal demand rebounding sharply. Continue reading
Iraq Is the Pot of Gold Under the Oil Rainbow
Oil companies are finally getting serious about the potential for oil development in Iraq. Exxon has agreed to spend billions in exchange for $1.90 per barrel above current production in the West Quma field. When Exxon will go to work for $1.90 a barrel you know there is a global shortage of non-OPEC fields. Continue reading
OPEC Raises Output Slightly in November
The OPEC cartel increased crude production to the highest level in 11 months as member countries took advantage of the rise in prices to raise some extra cash. OPEC output jumped to 28.9 mbpd for a gain of 110,000 bpd over October. Continue reading
Iran Starting to Heat Up
President Obama is about to have a hot potato land in his lap. On Friday the board of the International Atomic Energy Agency (IAEA) approved a strong censure on Iran's nuclear cooperation and suggested there were more secret nuclear enrichment facilities still undiscovered. Continue reading
IRAQ To Quadruple Export Capability
Iraq is planning to install four new floating oil terminals and three new undersea oil pipelines that will boost export capacity to 8 million barrels per day from the current 1.9 mbpd. Work on the terminals and pipelines should be completed by late 2011. Continue reading
Solar Power Costs Significantly Lower in 2009
Energy research firm New Energy Finance completed a recent study that found solar power costs to have declined -50% over the last year. New technology and mass production methods are finally bringing solar power costs down to the level where more people can afford to install solar grids. Continue reading
Our Ethanol Cup Is Overflowing
Two years ago Congress ordered U.S. refiners to increase the amount of ethanol and other biofuels they blend into finished gasoline. They were supposed to increase the amount they use to 15 billion gallons by 2012. That is up from less than seven billion gallons in 2007. Unfortunately this may be mathematically impossible today. Continue reading
Shell Oil Says Demand to Rise in Second Half of 2010
Bloomberg reported that Royal Dutch Shell, Europe's biggest oil company, expects global crude demand to rise in the second half of 2010. This comes after demand fell to its lowest level in 2009 since 1980. Continue reading
Frontline Goes to Last In Line as Shipping Demand Drops
Frontline Ltd, the world's largest operator of supertankers, posted its first quarterly loss in seven years. A global slump in oil demand was the cause and Frontline said it was going to speed up eliminating it's older single-hull carriers from its fleet by Dec-2010. Continue reading
US Rig Count Spikes 24 Last Week
The number of rigs drilling for oil and natural gas in the U.S. climbed this week as producers ramped up drilling in response to higher prices. The number of oil and gas rigs climbed to 1,137, up 24 rigs from the previous week, according to data from oil-field services company Baker Hughes Inc. (BHI). The number of gas rigs was 748, an increase of 22 rigs from last week, while the oil rig count was 379, an increase of four rigs. The number of miscellaneous rigs fell by two to 10. Continue reading
China Car Sales Booming, Gas Consumption Lagging
Sounds like an episode from the Twilight Zone. Car sales are booming in China but the government reported that gasoline consumption has not kept pace. Conspiracy theorists suggest that China is buying cars with stimulus money and then storing them until demand catches up. Continue reading
Halliburton Warns on Contract Cuts by Pemex
Halliburton Co., the world's second- largest oilfield-services provider, said a reduction in business from Petroleos Mexicanos will cut earnings by about 2 cents per share in the fourth quarter. Halliburton's work in the Burgos, Veracruz, and southern areas is being affected by a decision from Pemex, as the Mexico City-based company is known, to decrease activity in part because of low natural-gas prices, Houston-based Halliburton said today in a statement Continue reading