U.S. Oil Production Soars Despite Shale Bottlenecks

Friday September 21, 2018 In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers. Let’s take a look. (Click to enlarge) Key Takeaways - Crude inventories fell again, the fifth consecutive week of declines. Stocks are now at 394.1 million barrels, the lowest level since early 2015. - This week, gasoline inventories fell. In previous weeks, increases…

Source: Oilprice.com

Determining The Sweet Spot For Crude Oil

U.S. November West Texas Intermediate and international-benchmark December Brent crude oil are poised to close higher for the week. Furthermore, both futures contracts are in a position to close on the bullish side of a major technical retracement zone. This will send a signal to traders that the buying is getting stronger. If you look at the longer-term charts, you’ll see that the battleground since May has been the retracement zones. This is because trading inside a 50% to 61.8% retracement zone typically indicates a balanced market. The…

Source: Oilprice.com

The OPEC Meeting And How To Position For It (Hint: Don’t)

OPEC meetings, or more recently the meetings of “OPEC and friends”, are always big news in the energy sector. The price of oil is the most important factor in the profitability of energy companies, even those not in the oil business directly. It sets the standard for energy pricing generally, so cannot be ignored, and as OPEC’s express purpose is to influence price we all have to pay attention when they meet and speak. This weekend’s gathering in Algeria may be even more important than usual though, and traders will be watching…

Source: Oilprice.com

What Will Trigger The Next Oil Price Crash?

Are we nearing another financial crisis? The supply-side story for oil prices is heavily skewed to the upside, with production losses from Iran and Venezuela causing a rapid tightening of the market. But the demand side of the equation is much more complex and harder to pin down. Economists and investment banks are increasingly sounding the alarm on the global economy, raising red flags about the potential dangers ahead. Goldman Sachs and JPMorgan Chase recently suggested that a full-scale trade war would lead the steep corporate losses and a bear…

Source: Oilprice.com

Global Energy Advisory – 21st September 2018

This week saw the latest exchange of tariffs between Washington and Beijing, and this time there is a likely to be a tangible negative impact on the U.S. LNG industry. Following President Trump’s approval of tariffs on $200 billion worth of Chinese goods, China retaliated with its own list containing goods worth US$60 billion. The list included LNG, which will be subject to a 10% import tariff. Now, while some in the industry breathed a sigh of relief that the tariff rate is much lower than the initially threatened 25%, the news is not exactly…

Source: Oilprice.com

Tesla Signs Lithium Supply Deal With China’s Biggest Producer

China’s largest lithium producer, Ganfeng Lithium, said on Friday that it had signed a three-year deal to supply Tesla with lithium hydroxide for batteries—another lithium supply agreement for Tesla as it tries to stay ahead in raw materials sourcing before the coming massive EV competition from legacy carmakers. The top Chinese lithium producer will supply around one-fifth of its production to Tesla under the deal between 2018 and 2020, according to a filing by Ganfeng Lithium with the Shenzhen stock exchange as carried by Bloomberg.…

Source: Oilprice.com

Trader Trafigura Beefs Up Crude Oil And Product Tanker Fleet

One of the world’s major independent commodity traders, Trafigura, has ordered 35 newbuild crude oil and product tankers that will be leased to the trading house with options to buy later, the company said in a statement. The 35 tankers are being built in China and South Korea and include medium range (MR) tankers, long range tankers (LR2s), and Suezmax tankers. The order “has been placed by a close Asian financial partner and the vessels are being leased on delivery to Trafigura with options to purchase at a later stage. Vessels are…

Source: Oilprice.com

Trader Trafigura Beefs Up Crude Oil And Product Tanker Fleet

One of the world’s major independent commodity traders, Trafigura, has ordered 35 newbuild crude oil and product tankers that will be leased to the trading house with options to buy later, the company said in a statement. The 35 tankers are being built in China and South Korea and include medium range (MR) tankers, long range tankers (LR2s), and Suezmax tankers. The order “has been placed by a close Asian financial partner and the vessels are being leased on delivery to Trafigura with options to purchase at a later stage. Vessels are…

Source: Oilprice.com

Trader Trafigura Beefs Up Crude Oil And Product Tanker Fleet

One of the world’s major independent commodity traders, Trafigura, has ordered 35 newbuild crude oil and product tankers that will be leased to the trading house with options to buy later, the company said in a statement. The 35 tankers are being built in China and South Korea and include medium range (MR) tankers, long range tankers (LR2s), and Suezmax tankers. The order “has been placed by a close Asian financial partner and the vessels are being leased on delivery to Trafigura with options to purchase at a later stage. Vessels are…

Source: Oilprice.com

Riverstone Plans $900-million Sale of Oilfield Services Equipment Company (Friday, 21 September 2018)

Riverstone Holdings LLC is preparing to sell oilfield services equipment company Abaco Energy Technologies, which could fetch about $900 million, according to people with knowledge of the matter.

The private equity firm is working with an adviser to run an auction for the Houston-based company, said the people, who asked to not be identified because they weren’t authorized to speak publicly. Abaco is drawing interest from other private equity firms, they said.

A representative for Riverstone declined to comment while representatives for Abaco didn’t respond to requests for comment.

@[email protected]

Abaco makes, designs and services parts used for powering so-called mud motors, the section of an oil and gas well drilling system that rotates the drill bit far underground.

Riverstone committed to invest $200 million in the company when it was founded in 2013 with the goal of acquiring energy manufacturing and services businesses, according to a press release at the time. Abaco agreed to acquire drilling-equipment maker Basin Tools Inc. a year later, according to a statement.

Abaco CEO Ken Babcock previously worked for Titan Specialties Ltd. and International Logging Inc., two other companies that Riverstone previously owned.

Abaco should benefit from increased demand over the next 18 months from oil and gas explorers, according to a research note this week from Moody’s Investors Service Inc., which upgraded its credit rating.

While the company has a small revenue base, it is "competitively positioned within its niche market," Moody’s said.

Riverstone, which has offices in New York, London, Houston and Mexico City, has raised $38 billion for energy investments since it was founded in 2000 by David M. Leuschen and Pierre F. Lapeyre Jr., according to its website.

The firm raised $4.2 billion for its most recent buyout fund, which closed in 2015, according to data compiled by Bloomberg.

Source: www.worldoil.com

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Heavy crude differential nears historic spread

The Canadian heavy oil differential widened sharply in thin trade against the West Texas Intermediate (WTI) benchmark on Friday, settling just short of the historic spread set in 2013. * Western Canada Select (WCS) heavy blend crude for October delivery in Hardisty, Alberta, settled at $41.00 a barrel below the WTI benchmark crude futures , [Read More…]

Source: BOE Report

An LNG cargo’s journey is just beginning when it reaches port

BARCELONA — Considering the expected growth in US LNG exports over the next several years, it is natural to focus on the developers, construction contractors, regulators and contract pricing mechanisms that enable the resources to flow.

But, what happens at the next step in the LNG value chain when cargoes get where they are going?

At Enagas’ regasification terminal at the Port of Barcelona, which received a shipment from Cheniere Energy’s Sabine Pass export terminal in Louisiana in August aboard the GasLog Salem tanker, the LNG is distributed to customers in Spain and throughout Europe via a variety of means.

The most common is for the LNG to be converted back into pipeline-ready gas and then delivered to the local grid that serves Barcelona and grids that serve the rest of Spain.

During a tour Thursday following the conclusion of the weeklong Gastech conference, the terminal operation manager, Ramses Ninou, explained how the LNG, at a temperature of -160 degrees Celsius, is fed through compressors and filtered into big vats of seawater that are warmed to 40-50 C. Thirteen kilos of seawater is needed for each kilo of LNG.

The process returns the liquid gas to its dry gas state, and the water is returned to the sea only about 5-6 degrees warmer than when it was extracted, officials say.

At this time of year, the facility’s sendout rate to the grids is about 600,000 cubic meters of gas per hour. The gas is used to fuel power plants, heat homes, produce electricity and serve industrial facilities. The Barcelona terminal’s maximum sendout rate is 2 million cu m of gas per hour, but the highest rate it has reached was 1,650,000 cu m per hour during one recent high-demand winter.

The terminal also distributes small loads of LNG by truck to customers in Spain and several other countries. An average of 25 trucks are loaded each day, bound for countries including Italy, France and the UK.

The trucks that go to Italy can be lifted onto vessels for the journey across the Mediterranean Sea. The trucks can even reach Macedonia a few thousand kilometers away, as the insulated hull is able to secure the LNG for up to 50 days without any material boil-off.

If LNG is delivered by truck, it would be regasified at its ultimate destination.

For customers that don’t need the LNG or converted dry gas right away, the terminal can park the LNG in its six storage tanks for later use.

Enagas receives six-seven LNG tankers a month with an average capacity of 150,000 cubic meters. It also can handle the supersized Q-Flex tankers. The biggest exporters to the facility include Australia, Qatar, Nigeria, the US and Norway, officials say.

Because some of the exporters liquefy heavier types of LNG than others, the facility’s storage tanks are loaded from the top and bottom, and the density inside the tanks is constantly monitored.

So, how about those medium-size loads of gas that an industrial customer outside of Spain might need — ones that are perhaps not as feasible for a pipeline, too big for a truck and too small for a vessel?

Germany’s VTG AG, a wagon hire and rail car company, has designed what it describes as a “movable pipeline,” a large rail car capable of delivering mid-size loads of LNG from Enagas’ import terminal in Barcelona to the rest of Europe.

The rub? Big money is needed to extend the rail tracks from where a prototype now sits adjacent to the Enagas facility. Other infrastructure also is needed to make the LNG-by-rail proposal a reality, says Heinz-Jurgen Hiller, an international manager for the company.

Hiller says his company is talking to some interested parties who may be willing to finance some of the needed infrastructure. His pitch: VTG would lease the LNG rail cars, with a cost to the shipper that is meaningfully cheaper than taking the same-size load on several trucks.

LNG-by-rail isn’t the only thing Enagas is experimenting with along with its vendors at the Barcelona terminal.

It is trying to sell some of the freezing cold air that comes off the LNG as it is filtered through its facility. A rectangular walk-in freezer sits at the site — the effect inside was created with LNG that was received at the terminal.

Officials say industrial clients who operate refrigerated warehouses might be interested in such a product.

The growing number of regasification facilities popping up all over Europe and planned for the years ahead are part of the reason US exporters are so bullish about future demand for their liquefaction.

The post An LNG cargo’s journey is just beginning when it reaches port appeared first on The Barrel Blog.


Source: Platts - The Barrel Blog News Feed

Foreign Organizations Bankrolling US Anti-Oil and Gas Activist Campaigns

Investigative journalist Kevin Mooney is out with yet another damning report for #ExxonKnew activists, this time uncovering foreign organizations who are using their funding and resources to influence U.S. climate policy and promote the anti-fossil fuel agenda.

Read more at EID Climate.

The post Foreign Organizations Bankrolling US Anti-Oil and Gas Activist Campaigns appeared first on .

Source: Energy In Depth

Northern Oil and Gas Announces Pricing of Previously Announced Private Offering of Senior Secured Second Lien Notes

MINNEAPOLIS–(BUSINESS WIRE)–Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern” or the “Company”) today announced that it has priced its previously announced private placement under Rule 144A and Regulation S of the Securities Exchange Act of 1933, as amended (the “Securities Act”), to eligible purchasers of $350 million in aggregate principal amount of additional 8.50% Senior [Read More…]

Source: BOE Report

Texas Oil Pipeline To Start In November, Easing Bottleneck

Plains All American L.P. will begin operations on an expanded West Texas oil pipeline on Nov. 1, helping to ease a bottleneck that has weighed on Midland crude prices for months, the company said in a regulatory filing. Booming production in west Texas’ Permian Basin, the biggest U.S. oil field, has overwhelmed existing pipelines to Gulf Coast export markets, driving oil prices to as much as $18 below those at the coast this year. Production in the Permian has nearly doubled in the last three years, to 3.4 million barrels per day (MMbbl/d). The Houston-based pipeline operator this month began filling its extended Sunrise pipeline, which when completed will add 500,000 bbl/d from Midland to Wichita Falls, Texas, with connections to the main U.S. crude storage hub in Cushing, Oklahoma.

Source: Oilandgasinvestor.com Feeds

Emirati Oil Co. Begins Hoarding Jet Fuel

Emirates National Oil Company has begun storing jet fuel on tankers ahead of U.S. sanctions against Iran, to make sure planes arriving and leaving Dubai have enough fuel, Reuters reports, citing industry sources. So far ENOC has chartered two Suezmax tankers for a period of between 30 and 60 days, the sources said, with an option for storing oil products. The move could be taken as business as usual were it not for the fact that the spread between current and front-month jet fuel swap prices is at the moment in a contango. This means that the front-month…

Source: Oilprice.com

Emirati Oil Co. Begins Hoarding Jet Fuel

Emirates National Oil Company has begun storing jet fuel on tankers ahead of U.S. sanctions against Iran, to make sure planes arriving and leaving Dubai have enough fuel, Reuters reports, citing industry sources. So far ENOC has chartered two Suezmax tankers for a period of between 30 and 60 days, the sources said, with an option for storing oil products. The move could be taken as business as usual were it not for the fact that the spread between current and front-month jet fuel swap prices is at the moment in a contango. This means that the front-month…

Source: Oilprice.com

Is Oil On Its Way To $80?

Bullish news on both the supply and demand side sent oil prices up again on Friday morning, with Brent falling back after flirting with $80. (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) Oil prices gained this week on outages in Iran and data showing demand from the United States in August was the highest since 2007. “Exports are already down quite a bit and will probably continue to fall,” from both Iran and Venezuela, UBS Group AG analyst Giovanni…

Source: Oilprice.com