News
ConocoPhillips Says It's Cutting 10% of Workforce
NEW YORK (AP) — Energy company ConocoPhillips says it is cutting around 1,810 jobs, or 10% of its jobs, following a plunge that took oil prices to their lowest levels in years. The biggest proportion of the job cuts will be in North America, the company said Tuesday. ConocoPhillips plans to eliminate more than 500 jobs in Houston, where it is based. In a news release, ConocoPhillips said it's making the cuts because the energy industry is in a "dramatic downturn." ConocoPhillips has already cut 1,000 jobs this year and had 18,100 employees June 30.
Cost, Length of Exxon's Cleanup Still Unclear after Deal
TRENTON, N.J. (AP) — The $225 million settlement between ExxonMobil and New Jersey reached this week confirms the oil giant must clean up more than 1,500 contaminated properties from gas stations to refineries — but exactly how much they'll spend or how long it'll take remains murky.
Why So Much Oil Price Volatility? Blame the Speculators
Oil prices crashed lonly to rebound at lightning speed. On Aug. 28, oil prices surged 10%, the largest one-day gain in seven years. So, what happens next for oil prices? On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads.
Ecuador's President Says Country Now Producing Oil at a Loss
QUITO, Ecuador (AP) — Ecuadoreans are already contending with a rumbling, ash-spewing volcano and rising living costs because they use the appreciating U.S. dollar as their currency. Now they've been told that Ecuador's oil — its principal export and a vital source of government funding — costs more to produce than it earns. President Rafael Correa explained on Tuesday, during a visit to areas threatened by the Cotopaxi volcano, that it costs the OPEC nation $39 to produce a barrel of oil for which it only receives $30.
Economic Uncertainties in US Keeping CFOs Up at Night, Survey Says
(Business Wire) – The nation’s finance chiefs are relatively optimistic about the future, but remain cautious in the face of domestic uncertainties like Congressional inaction on tax reform. This according to the latest edition of Grant Thornton LLP’s CFO Survey, which reflects the insights of more than 900 chief financial officers and other senior financial executives across the United States. “Lawmakers need to agree on at least a two-year retroactive extension of nearly all the provisions, with a one-year extension as an absolute fallback.”
A Winter of Discontent Anticipated for Russia
Winters are the stuff of legend in Russia and – despite a fair bit of warming – winter 2015-2016 is shaping up to be one of the harshest, and most formative, in recent memory.
NJ Judge Approves Christie's $225 Million Settlement with Exxon
TRENTON, N.J. (AP) — A New Jersey judge approved a $225 million deal Tuesday between Gov. Chris Christie's administration and ExxonMobil over dozens of polluted sites and nearly 2,000 retail gas stations. Superior Court Judge Michael Hogan ruled that while the deal is much less than the $8.9 billion the state originally sought, it is a "reasonable compromise" considering "substantial litigation risks" faced by the state in the 11-year-old case that spanned Democratic and Republican governors.
Study: Middle Market Companies Lead Pack in Global E&P Growth
Over the past decade, the international oil and gas industry has enjoyed unprecedented growth and prosperity. The renaissance of North American energy production has introduced abundant new supply to the global market, promising to meet rapidly-growing demand and loosening OPEC’s tight grip on the industry. In the midst of these boom times, middle market companies have seen some of the greatest success in exploiting new energy resources and capitalising on global appetite for inexpensive supply.
US Crude Flirts with Close of Under $40 a barrel
NEW YORK (AP) — Oil prices are continuing to slide on fears of a slowdown in the world economy, with U.S. crude on pace to close at under $40 a barrel for the first time since the days of the global economic crisis. Already trading around six-year lows on a prolonged slump, U.S. crude fell $1.48, or 3.7%, to $38.97 per barrel Monday afternoon. Earlier it dropped to $37.75. Oil hadn't closed below $40 a barrel since February 2009, although it briefly traded below that level on Friday.
Oil Markets Coming to Grips with Prices Remaining 'Lower for Longer'
“Lower for longer” is on everyone’s lips in the oil industry. A survey by the <em>Wall Street Journal</em> of investment banks found a growing consensus that oil prices not only won’t rebound soon, but could remain at today’s low levels through much of next year. The average of the 10 oil price forecasts surveyed by <em>WSJ</em> predicted that oil prices would not rise above $70 per barrel until late next year, with WTI averaging just $63.40 for 2016.
Are Big Oils Dividends Sustainable?
Most investors have been attracted to the oil and energy industry due to its history of paying out large dividends. Blue Chip oil stocks have been known to possess management teams that are financially prudent, and shareholder friendly. This is why companies such as Chevron, ConocoPhillips, and ExxonMobil, have garnered much attention in the investment community. But, due to the large decline in the oil price, most investors are now wondering whether or not these dividends are sustainable.
Low Oil Prices Could Break The 'Fragile 5' Producing Nations
Persistently low oil prices have already inflicted economic pain on oil-producing countries. But with crude sticking near six-year lows, the risk of political turmoil is starting to rise. There are several countries in which the risks are the greatest – Algeria, Iraq, Libya, Nigeria, and Venezuela – and RBC Capital Markets has labeled them the “Fragile Five.”
Slump in Oil-by-Rail Shipments Boosts Car Storage Business
TAHAWUS, N.Y. (AP) — New tank car safety standards coupled with a slump in oil-by-rail shipments are causing headaches for many in the railroad business, but for a struggling scenic railroad in the Adirondacks and other short-line operators, they may bring salvation. Ed Ellis, president of Saratoga and North Creek Railway, said he plans to store up to 500 empty tank cars for a year or more on seldom-used tracks near the High Peaks Wilderness region of the Adirondacks. He estimated storage fees could add up to "seven figures," ensuring the future of the cash-strapped tourist train.
Oil Lease Sale Western Gulf's Lowest Ever in Bids, Money
NEW ORLEANS (AP) — The smallest oil lease sale ever in the western Gulf of Mexico and one of the smallest in the entire Gulf brought only five bidders Wednesday, with low oil prices limiting interest in the prospects. Most seats in a Superdome meeting room were empty as a federal energy official read the 33 bids for tracts off the Texas coast. Each tract drew a single bid, for a total of $22.7 million. Not all bids wind up as leases: over the years, nearly 3% of all bids have been rejected or withdrawn.
EIA Lowers Crude Oil Price Forecast Through 2016
Amid high uncertainty in the global oil market, EIA has lowered crude oil price forecasts in the Short-Term Energy Outlook (STEO), expecting West Texas Intermediate (WTI) crude oil prices to average $49 per barrel (/b)in 2015 and $54/b in 2016, $6/b and $8/b lower than forecast in last month's STEO, respectively. Concerns over the pace of economic growth in emerging markets, slowing supply growth, increases in global liquids inventories and the possibility of increasing volumes of Iranian crude oil entering the market contributed to the changed forecast.
Local Fracking Bans Could Go Before Colorado High Court Soon
DENVER (AP) — Colorado's battle over who should regulate fracking could be on the fast track to the state Supreme Court. The Colorado Court of Appeals on Monday asked to bow out of lawsuits over Longmont's ban on fracking and a 5-year-moratorium in Fort Collins. The move would allow the Supreme Court to take the cases immediately, without waiting for the appeals court to hear arguments and make rulings. The higher court hasn't said if it will take the cases.
Willbros Group Expects to Restore Compliance with NYSE Continued Listing Requirement
Willbros Group received notification from the New York Stock Exchange (NYSE) that the price of its common stock has fallen below the NYSE's continued listing standard, which requires the average closing price to be at least $1 per share over a consecutive 30-day trading period.
Pipeline Expert Peter Lidiak Ready for New Challenge
At the American Petroleum Institute’s spring pipeline conference in Savannah, GA one bit of news in particular grabbed attendees’ attention when it was announced that Pipeline Director Peter T. Lidiak was leaving his post after serving as API’s go-to pipeline executive since 2005. Lidiak, who joined API in 2000, is one of the nation’s leading experts on crude oil pipelines, testifying before countless congressional and agency hearings in Washington, D.C. and having a hand in practically any issue involving pipelines.
Pipeline Expert Peter Lidiak Ready for New Challenge (1)
At the American Petroleum Institute’s spring pipeline conference in Savannah, GA one bit of news in particular grabbed attendees’ attention when it was announced that Pipeline Director Peter T. Lidiak was leaving his post after serving as API’s go-to pipeline executive since 2005. Lidiak, who joined API in 2000, is one of the nation’s leading experts on crude oil pipelines, testifying before countless congressional and agency hearings in Washington, D.C. and having a hand in practically any issue involving pipelines.
Frack Now, Pay Later Ushering in New Era in U.S. Oil?
With oil prices now dipping close to six-year lows, the energy sector is getting thumped across the board. The double-dip will likely cause fresh cuts to spending, drilling, and staff. Last week, Baker Hughes reported a surprise uptick in the number of rigs drilling in North America, which jumped by 10 to 884 for the week ending on August 7.
Business News
<strong>Company & Association News </strong> David C. Carroll, GTI president and CEO, was named president of the International Gas Union (IGU) for a three-year term at the closing ceremony of the June World Gas Conference (WGC) in Paris. With members from 91 countries representing 97% of the world's natural gas industry, IGU’s mission is to advocate for gas as an integral part of a sustainable global energy system, and to promote the political, technical and economic progress of the gas industry. The organization's home office, or Secretariat, is in Oslo, Norway.
World News: China and Russia Begin Work On Power of Serbia Pipeline
Russia’s Gazprom and China National Petroleum Corporation (CNPC) have confirmed that construction is underway on the 4,000-km Power of Serbia Pipeline that will deliver up to 38 Bcma of gas to China. The first joint of pipe for the Chinese sector of the project was recently welded near the city of Heibe in the northern Heilongjiang Province bordering Russia, according to CNPC. Russia started building its section of the 2,500-mile eastern route last year. The pipeline is due to become fully operational in late 2017.
Nuclear Accord Could Boost Crude Oil Production from Iran
The P5+1 nations agreement with Iran on nuclear-related sanctions could result in relief for United States and European Union in the form of more oil production. If the agreement, which include some oil-related sanctions, it will put additional Iranian oil supplies on a global market that has already seen oil inventories rise significantly over the past year.
Cushing Connected Pipelines Shut After Enbridge Spearhead Pipeline Spill
The Enterprise Product Partners-operated 450,000 bpd Cushing, OK,-to-Jones Creek, TX, Seaway Twin crude pipeline remained down Wednesday after being shut on Aug. 11, following the shutdown of Enbridge Energy Partners’ 193,000 bpd Spearhead and 600,000 bpd Flanagan South pipelines.
Analyst: China's Devalued Yuan Tied to Foreign Oil Consumption
Earlier this week, China surprisingly opted to devalue its currency, the yuan, forcing many in the oil and gas industry to ponder how the decision will affect their market. “In recent days, we’ve seen China look to devalue the yuan in hopes of gaining some ground as the U.S. dollar continues its upward move,” said Carl Larry, director of business development with consulting firm Frost & Sullivan. “The move has caused a bit of uneasiness in the marketplace and stock markets around the world are a bit shaky.”
Oil Price Slumps to Lowest Level Since March 2009
The price of U.S. crude oil has tumbled to its lowest level in more than six years. Benchmark U.S. crude fell $1.88, or 4%, to settle at $43.08 a barrel in New York on Tuesday, its lowest close since March of 2009. The latest slide came as OPEC said its production rose to a three-year high. China also devalued its currency, suggesting economic growth there was softer and could cause lower crude demand. U.S. crude has been declining since reaching a high this year of $61.43 on June 10.
Forecasting Irans Natural Gas Production, Consumption
Iran is a major energy-producing and exporting country with natural gas accounting for about 68% of its domestic energy consumption. Iran ranks second worldwide in terms of natural gas reserves. This is indicative of the importance of Iran’s gas in present as well as future national and international marketing.
BNSF Manager Named Inspector for ND Rail Safety Program
BISMARCK, N.D. (AP) — A longtime manager of a railroad responsible for some fiery oil train crashes in North Dakota has been hired as an inspector for the state's new rail safety program. Karl Carson, a 23-year employee of BNSF Railway and a manager for the railroad since 2004, starts the $90,000-a-year state job next week conducting track and worker safety inspections.
Key Issues Taken on at Pipeline Conference
Pipeline & Gas Journal’s 11th annual Pipeline Opportunities Conference brought in 400 attendees from throughout North America, all focused on getting the most up-to-date information regarding the oil and natural gas industry. In addition to a full day’s worth of conference presentations and roundtables, guests had ample time to network during the even held March 24 at the Royal Sonesta Hotel in Houston’s Galleria district.
Icahn takes 8.2% Stake in Cheniere Energy
NEW YORK (AP) — Billionaire investor Carl Icahn is taking an 8.2% stake in liquid natural gas company Cheniere Energy Inc., sending its shares higher Thursday in aftermarket trading. Icahn disclosed ownership of 19.4 million shares of Cheniere, which owns a liquid natural gas terminal and pipeline in Louisiana. Icahn's funds say they want to start talks with the company about its business, financing of capital spending and executive compensation, and Icahn may seek representation on the board of directors. Cheniere Energy did not immediately respond to a request for comment.
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Energy Transfer Subsidiary Selects KTJV for Lake Charles LNG Export Project
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- Saudi Arabia Looking to Expand Pipeline to Reduce Oil Exports via Gulf
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Alaska Greenlights Enstar’s $57 Million Pipeline to Boost LNG Imports
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
