Premier Rachel Notley stands by pipelines despite TransCanada oil spill

Alberta Premier Rachel Notley is standing by the safety of pipelines to transport oil despite a 795,000-litre spill on the Keystone pipeline in South Dakota earlier this week. The spill on Thursday could not have come at a worst time as Nebraska is set to vote Monday on whether TransCanada Corp. can cross the state with […]

Chinese Crude Inventories Fall For First Time In 12 Months

The crude oils stockpiles of China fell for the first time in 12 months on the back of a drop in imports to the lowest in a year and robust processing rates at local refineries, S&P Platts reports, citing its latest calculations that are based on what official data is available from Beijing. The stockpiles fell by 27.41 million barrels in October from September, S&P Platts said, with refineries processing 11.94 million barrels of crude daily, up 7.4 percent on the year. Imports during the reported month, on the other hand, averaged just…

Keystone Pipeline Leaks 5,000 Barrels Into Farmland

Just days before Nebraska regulators gather to announce their decision on Keystone XL, its older namesake, Keystone, leaked a reported 5,000 barrels of crude oil into agricultural lands in South Dakota. Voice of America cited state officials as saying they did not believe the leak had caused any damage to water bodies or drinking water systems. TransCanada, the operator of the 600,000-bpd Keystone, and initiator of the other more controversial Keystone XL project, said the pipeline has been shut down and will remain so until it is fixed. TransCanada…

Days before key ruling, TransCanada’s Keystone pipeline leaks 795,000 litres of crude oil in South Dakota

TransCanada Corp. said its original Keystone pipeline has leaked an estimated 795,000 litres of oil in Marshall County, S.D. just days before Nebraska is set to decide the fate of plans to expand the pipeline network. The company (TSX:TRP) said its crews shut down the Keystone pipeline system Thursday morning between Hardisty to Cushing, Okla, […]

Saudi Oil Minister: Markets Will Not Rebalance By March

Saudi Oil Minister Khalid al-Falih said that international oil supply and demand will not be rebalanced by March, according to a new report by Reuters. The current version of the deal by the Organization of Petroleum Exporting Countries (OPEC) to rebalance the oil market only lasts till March, so the cartel would have to agree on an extension during the November 30th summit to further the rebalancing act. “We will decide in two weeks (on a possible extension). We’re in extensive consultations with all our colleagues around the world…

Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount

An obscure Dutch firm will manage the Junin 10 oil block in the Orinoco Belt region, according to a new announcement from a struggling Venezuela. A new Reuters report says the deal was made on Thursday, giving Stichting Administratiekantoor Inversiones Petroleras Iberoamericanas a 40-percent stake in the block via a joint venture called Petrosur. PDVSA, a state-run giant, says the block could produce up to 200,000 barrels per day once fully developed. Both Statoil and Total have offered to work on the block before, but PDVSA has refused their offers.…

Top 5 Miners To Ride The Christmas Commodity Boom

Precious and industrial metals have had a banner year on a weak dollar and the beginnings of what appears to be another upcycle for commodities. Strong demand and questions about the availability of long-term supply are pushing up prices across the board. • Gold prices are up sharply since touching a low point at the end of 2016. • Copper prices have soared, particularly since June. Spot prices are up nearly 20 percent in the past four months. • Lithium prices have doubled in the past year and a half, and are up 50 percent since…

Oil Prices Could Double If Middle East Conflict Escalates

Barrel traders recently pushed the price of West Texas Intermediate (WTI) oil above $US 55; the first time in over two years. Scarcity doesn’t really justify the upward price movement. There isn’t a shortage of oil in the world. But there could be, in the worst case, if missiles start flying between two of the world’s largest oil players: Saudi Arabia and Iran. Maybe it won’t happen. But maybe it will. And that’s what the “geopolitical risk premium” is all about. It’s an anxiety surcharge that’s…

The IEA Is Grossly Overestimating Shale Growth

This week, the IEA said that U.S. shale would dominate the oil and gas markets over the next decade, rising to “a level 50 percent higher than any other country has ever managed.” With a “remarkable ability to unlock new resources cost-effectively,” U.S. shale will add millions of barrels of new oil supply by 2025. But some view such heady predictions as fanciful. There are a variety of reasons why U.S. shale could struggle to add several million additional barrels per day over the next few years. But here are just a few.…

Norway’s $1 Trillion Wealth Fund Looks To Dump Oil & Gas Stocks

The global campaign to divest from fossil fuels may have just picked up its most significant ally to date – the largest sovereign wealth fund in the world. Norway’s trillion-dollar sovereign wealth fund has proposed dropping investment for oil and gas companies. The plan, backed by the central bank, still needs approval by the finance ministry, but it would see the fund gradually divesting itself of oil and gas stocks over time. Currently, fossil fuel investments account for about 6 percent of the fund’s assets, or $37 billion.…

Saudi Arabia’s Risky Market Share Sacrifice

The 600,000 barrels per day Port Arthur refinery has exclusively processed Saudi Arabian crude since 1988, when Saudi Aramco first bought a stake in the facility—the largest of its kind in the United States. But Riyadh’s new strategy of constricting exports to the United States, along with several Asian countries, has reduced supplies to Motiva and several other refineries across the country. “The drop is huge,” said Amrita Sen of Energy Aspects in London. “It’s not just that Saudi exports are low, but they have been low for several…

Rosneft Announces Completion Of World’s Longest Well

Rosneft announced the successful completion of the world’s longest well in the Sea of Okhotsk today, according to a new report from World Oil. The Orlan platform finished the 15,000 -horizontal completion, creating a world record for the measurement. Since the Sakhalin-1 project began, the project has drilled nine of the world’s ten longest wells. Sakhalin-1 is operated by ExxonMobil. While output at oil sites operated by foreign oil majors under production-sharing agreements dropped by 39 percent in September over August,…

Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts

Ecuador has temporarily shelved its idea to ask from OPEC later this month to be exempt from its share of the production cuts, because the cartel’s supply restrictions are successfully propping up oil prices, Ecuador’s Oil Minister Carlos Perez said on Thursday. “For now we are not going to submit the request. We’ll analyze along with OPEC’s members which alternatives they can offer. For sustaining prices, we have to support OPEC’s measures, which are so far succeeding,” Perez said in a press conference,…

New Battery Design Could Crush Tesla

We all know the story behind Fisker, it was one of the world’s first plug-in hybrid electric vehicles in 2008, and even had a legal spat between Tesla, but shortly after in 2012 the company crashed and burned in bankruptcy. Last year, Henrik Fisker decided to relaunch his brand. He thought that one failure wasn’t enough—-just like Elon Musk’s SpaceX rockets. During Fisker’s relaunch, he made a shocking comment that caught the attention of Musk and it was on the claims of a new breakthrough in battery technology using…

Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

As a powerful oil market mover, the EIA needs to have “more sophisticated” forecasts about U.S. shale production, because overly optimistic expectations depress oil prices and disadvantages the U.S. market, shale billionaire and Continental Resources chief executive Harold Hamm said in an interview with Bloomberg published on Thursday. The EIA is “a very powerful market mover, and so it’s necessary they understand all of these things,” said Hamm who is scheduled to take part in an EIA webinar on crude oil production…

Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks

The world’s largest sovereign wealth fund, Norway’s US$1-trillion Government Pension Fund Global, recommended on Thursday the removal of oil and gas stocks—US$35 billion worth of shares—from the fund’s equity benchmark index to make Norway’s wealth and economy less vulnerable to a permanent drop in oil and gas prices. “This advice is based exclusively on financial arguments and analyses of the government’s total oil and gas exposure and does not reflect any particular view of future movements in oil…

Santos Admits It Rejected $7.2B Takeover Bid

Australia’s second-largest energy company Santos said it had in August rejected a takeover bid from a private equity-backed company, Harbour Energy. The statement was issued in response to media reports that Santos was currently in negotiations with Harbour Energy. The Australian energy company said Harbour Energy had offered it US$3.46 (A$4.55) per share in an indicative bid, but Santos rejected it as inadequate. Also, the company said, the source of funding was uncertain. Harbour wanted to acquire all the shares of Santos, valuing the company…

China Will No Longer Take Our Recycled Junk

Beijing notified the WTO that it’s banning imports of various plastics and unsorted paper commonly sent from the U.S. Large amounts of dirty or hazardous constituents are mixed with these materials, leading to serious environmental pollution. But not r…

One person injured after heavy oil leak at Shell Scotford northeast of Fort Saskatchewan

One person was injured and the Shell Scotford site was evacuated for several hours after a heavy oil mixture leak on Wednesday afternoon. The “hydrocarbon release” happened around 12:30 p.m. inside a processing unit at the Scotford Facility near Fort Saskatchewan, according to a statement sent by Tara Lemay on behalf of Shell. The all-clear was […]

5 Of The Hottest Mining Stocks For 2018

2017 will go down in the history books as the year when a long bull run for metals really took off. Prices for a long list of metals have soared this year, making some investors rich, but leaving many more envious because they missed the boat. But with the electric vehicle revolution only at its beginning stages, the price for some of these metals will remain sky-high, and will not come back to earth anytime soon. Copper, nickel, cobalt and lithium are just a few of the materials that are essential to an electric vehicle, and they are enjoying…

Why Saudi Arabia Should Fear U.S. Oil Dominance

One of the more important recent developments in global energy is the resurgence of U.S. energy production, thanks in large part to the shale revolution. Now, after half a century as a net importer, the U.S. is poised in the coming decade to become a net exporter, as imports from historic sources decline and demand for U.S. energy products abroad grows. According to the IEA’s World Energy Outlook, the U.S. is set to be a dominant force in energy production for the foreseeable future, as the surge from shale triggers the biggest boom in production…

What Happens If The OPEC Deal Extension Fails?

The oil market has already factored in an extension of the OPEC deal, with the working assumption that the cuts will be extended through the end of 2018. But what if OPEC disappoints and extends by a much shorter period of time, or worse, fails to agree to anything at all? Given all of the bullish rhetoric around the extension from the most powerful members of the deal (Saudi Arabia and Russia), an extension still seems the most likely outcome of the upcoming meeting in Vienna on November 30. But it is not a foregone conclusion. Russian President…

U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling

The U.S. Senate energy and natural resources panel voted to open a portion of an Alaskan wildlife refuge to allow oil drilling on Wednesday, angering conservationists who had fought to save the area from fossil fuel interests. The committee voted 13-10 to allow drilling in the coveted natural reserves. Reuters reports that Republicans have tried to open the Arctic National Wildlife Refuge for drilling for some time now. The area in question is known by the numerical name 1002 and is located in the north. Alaska senator Lisa Murkowski, who heads…

Can Russia Break Its Oil Dependence?

Despite improving oil prices, Russia’s economic growth is slowing, with GDP rise for the third quarter at 1.8 percent on an annual basis, versus 2.5 percent for the second quarter, Russia’s state statistical bureau, Rosstat, said earlier this week. Analysts say it’s the latest indication that Russia’s economy needs major reforms. Let’s state the obvious: Russia needs an economy overhaul that will reduce the contribution of oil to its budget revenues. This overhaul is something that the central bank governor Elvira…

Africa’s Richest Woman Fired From Sonangol

The new Angolan president fired his predecessor’s daughter as head of the national oil company Sonangol, according to news emerging from one of Africa’s largest oil producers. Isabel Des Santos, also known as Africa’s richest woman, is the billionaire daughter of former President Jose Eduardo dos Santos. He held the position for 37 years before he stepped down in September. His replacement, President Lourenco, commonly known as JLo, has promised to take a stance against corruption by weakening the enduring influence of the Dos…

Even with electric cars, world oil demand expected to grow for years

Even the spread of alternative-fuel vehicles and increased energy efficiency won’t quickly stop the growing international demand for oil, a speaker at an Edmonton energy symposium said Wednesday. About five million electric and hybrid vehicles are expected to be sold this year, rising to 30 million cars, trucks and other vehicles in 2030, or approximately […]

Obsidian Energy settles with U.S. Securities Commission over fraud charges

Obsidian Energy Ltd. says it has reached a US$8.5-million settlement with the U.S. Securities and Exchange Commission over fraud-related charges filed earlier this year. The SEC had alleged the company and three executives participated in a “multi-year accounting fraud” where hundreds of millions of dollars were moved from operating expense accounts to capital expenditure accounts […]

Oil And Gas M&A Deal Appetite Highest Since 2013

The oil and gas sector has become increasingly positive about corporate earnings and credit availability to the point that 69 percent of industry executives expect to actively pursue an acquisition over the next 12 months—with the deal appetite in oil and gas at its highest level since 2013, the EY Oil & Gas Capital Confidence Barometer (CCB) survey showed on Wednesday. Deal appetite among oil and gas executives was much higher than the global average of 56 percent, EY said, noting that 96 percent of the oil and gas senior managers expect…

Trump Offers To Mediate South China Sea Dispute

Reining in North Korea and discussing bilateral trade with China were at the top of U.S. President Donald Trump’s Asian tour agenda. But after he left Beijing and visited Vietnam, Trump addressed an issue that he hadn’t mentioned while in China: the dispute in the South China Sea, regarding territorial claims by Beijing as well as Vietnam, the Philippines, Taiwan, Brunei, and Malaysia. And Trump offered to mediate in the dispute. “South China Sea—as you know, we’re looking at—we’re looking at it together.…

Falling Iraqi Oil Output Drags OPEC Production Down

All data below is based on the latest OPEC Monthly Oil Market Report. All data is through October 2017 and is in thousand barrels per day. (Click to enlarge)I have now included Equatorial Guinea although I only have data from January 2015 from OPEC’s secondary sources. The January 2015 E. Guinea data was extended back to January 2005. I know this is inaccurate but production from E. Guinea is so small it will make little difference. (Click to enlarge)OPEC crude oil production dropped by 151,000 barrels per day in October. (Click…

Russian Hackers Target British Energy Industry

Russian hackers have attacked targets from the British energy industry over the last 12 months, the head of the country’s National Cyber Security Center, Ciaran Martin said. The warning, according to the New York Times, suggests that the number of attacks coming from Russia has been much greater than previously estimated by British and U.S. officials. Martin did not specify the names of any potential targets, which, he said, also included businesses from the media and telecoms industries. He also didn’t specify the number of attacks…

Venezuela Signs $3.15B Debt Restructuring Deal With Russia

Russia is throwing a life-line to defaulting Venezuela after the two countries signed on Wednesday a deal to restructure US$3.15 billion worth of Venezuelan debt owed to Moscow. Under the terms of the deal that Russia’s Finance Ministry announced today, Venezuela will be repaying the debt over the next ten years, of which the first six years include “minimal payments”.       “The debt relief provided to the republic from the restructuring of its liabilities will allow funds to be allocated for the…

China’s Mysterious Arctic Silk Road

The Silk Road, renamed the Belt and Road Initiative (BRI), is developing infrastructure along land and sea trade routes. However, little is known about China’s initiative in the Arctic Circle, which represents a new route that Beijing is now able to develop thanks to technology together with the strategic partnership with Russia. Involving about 65 countries and affecting 4.4 billion people, constituting thirty percent of the world’s GDP, together with a total investment from Beijing that could surpass a trillion dollars, this is an immense…

DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted

The U.S. Justice Department will begin prosecuting climate activists and protestors that perpetrate violence and destruction towards pipelines or other oil infrastructure to make their political points, Reuters said in a new report. “While we are strong advocates for the First Amendment, violence towards individuals and destruction of property are both illegal and potentially fatal,” a letter from the DOJ states. The document is a response to an official letter cosigned by 84 congressmen asking Attorney General Jeff Sessions about his…

Lower Oil Prices Benefit European Refiners

European refiners have seen their energy costs drop alongside the fall in oil prices, which has boosted their competitive position compared to North and South America, but Europe is still lagging in lowering energy costs compared to refineries on the other side of the Atlantic. Before the oil price crash of 2014, refineries in Europe had much higher costs than those in the Americas, as high oil prices usually widen refinery costs differences between regions, Stephen Wright, vice president at Solomon Associates, said at the World Refining Association…

Iraq Oil Revenue Not Enough For Sustainable Development

Oil revenues still are not high enough to allow the Iraqi government to fund the reconstruction of the country, according to Iraqi Prime Minister Haider Al-Abadi. “Oil prices are not at the required level to be used for sustainable development,” state TV quoted al-Abadi as saying during a press conference. Iraq proclaimed itself victorious earlier this year after a three-year, hard-fought war against the terrorist Islamic State. The victory freed up some money—but not enough—for reconstructing the nation after almost 15…

EVs Won’t Stifle Oil Demand Anytime Soon

There will be 280 million EVs on the roads in 2040, up from 2 million today—but even this increase won’t be able to stifle crude oil demand, the International Energy Agency says. This increase will come from government policies aimed at tackling climate change and from the industry’s apparent determination to go electric. Even so, the IEA said, global oil demand will continue growing in tune with supply, to hit 105 million bpd in 2040, driven by petrochemicals and fuel for trucks, ships, and aircraft. The IEA notes that although…

The Dangers Of A Bullish Oil Market

The U.S. rig count rose on Friday and Tuesday’s IEA report hit the oil market hard, causing bulls to pocket some profit after the recent oil price rally, but geopolitical conflict in the Middle East has kept Brent prices above $60 per barrel. (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge)- U.S. distillate exports have surged in 2017, even as production has remained relatively flat. – Refinery shut downs in Central and South America, combined with high refinery runs in the U.S., plus the sharp difference…

Sudan In Talks With Foreign Oil Firms To Boost Crude Production

Sudan has discussed the development of its oil industry following the removal of many U.S. sanctions on the country—including on oil and petrochemical industries—with Russia’s Lukoil and with other firms from Europe and Canada, Sudan’s Oil Minister Abdul Rahman Osman said on Tuesday.   “There are many companies that are not committed yet, but they have sent emissaries or they are already negotiating in order to see their potential in coming into Sudan,” Osman said on the sidelines of the Abu Dhabi Petroleum…

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