Daily Archives: March 17, 2017

Oil And Gas States Forced To Cut Education Spending

The oil price slump has put pressure on the budgets of the U.S. oil and coal states that have been struggling with lower energy tax revenues and difficult decisions about which public-sector financing they should reduce. Higher budget deficits have led to cuts across the board, and education has been one of the sectors on the chopping block. This week, Wyoming became the latest in a series of oil and coal producing states that have cut funds from education. Oklahoma, North Dakota and Alaska had already lowered some of the funding for various education…

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State Owned Enterprises Take More Energy Business

Foreign state owned enterprises appear poised to take an even larger, more active role in the interna-tional energy business in all aspects–nuclear as well as renewables. Press reports indicate that Korea Electric Power (Kepco), controlled by the government of South Ko-rea, might well be the only bidder for Toshiba’s Westinghouse unit that will pass muster with western governments. The South Korean government, say the reports, wants to make Korea a major player in the world nuclear industry. Kepco would be the “entry vehicle”. Like the French…

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Stop Counting On Oil Contangos

In early 2009, I did a segment on CNBC with Erin Burnett and the late Mark Haines, pointing out a way for us to band together and make some serious money. I proposed we find the funds (or the financing) to buy currently priced oil on the physical markets, trading somewhere in the mid 30’s, and then selling the futures about six months out, which were trading for nearly $15 dollars a barrel more. A simple idea – we would store the oil, pay the fees, and deliver at the futures price later, banking about, I estimated, 11 dollars a

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OPEC Deal Shaky While U.S. Shale Prospers

Friday March 17, 2016 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. 1. Top shale companies finally cash flow positive (Click to enlarge)- The U.S. shale industry is arguably healthier than it has ever been – a surprising argument given that they are just emerging from a nearly three-year bust.- But shale drillers…

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Global Energy Advisory – 17th March 2017

Politics, Geopolitics & Conflict • Mustafa Ali, a prominent environmental justice adviser with the Environmental Protection Agency (EPA) has handed in his resignation in response to a White House plan to slash the EPA’s budget by 25% and close the Office of Environmental Justice, where Ali was assistant associate administrator. The budget cut is part of the sweeping changes the Trump administration is making in the EPA and will result in a 20% reduction in the agency’s workforce and the loss of funding for several dozen programs,…

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Impending Volatility In The Oil Markets

This week’s price action in the crude oil market suggests that last week’s huge sell-off may have been a liquidation break or the break designed to drive out the weakest longs. If you recall, prior to the sell-off, hedge fund and money managers were sitting in record long positions in crude oil. After trading lower earlier in the week, crude oil started to make a comeback and is now in a position to post a major reversal to the weekly chart. This price action suggests impending volatility and investor indecision. Despite last week’s…

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Expert Analysis: The OPEC Cuts May Be Working

– WTI traded to a 3.5 month low on Tuesday at $47.09 after OPEC members shook production cut deal confidence for a second straight week. Saudi Arabia contributed to bearish concerns by reporting February production of 10.01m bpd for a 263k bpd m/m increase (secondary source estimate for Feb was less than 9.8m bpd) while Iraq released a goal of producing 5m bpd by the end of 2017. – We continue to have a short term positive view of sub $50 WTI choosing to focus on IEA estimates that OPEC is 90 percent compliant with their 1.2m bpd production cut…

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Sinopec Nearing Deal To Buy Chevron’s $1B South African Assets

China’s Sinopec is the last bidder left in the race to buy a majority interest in Chevron’s South African assets worth $1 billion, Reuters reported on Friday, citing two people familiar with the deal. Sinopec is close to sealing an agreement with Chevron over the South African assets that the U.S. major first said would be put up for sale in January last year. Following an auction that had lasted more than a year, Sinopec is now the last bidder remaining, Reuters’ sources said. In October last year, France’s oil major Total…

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New IEA Data Shows That — Thanks to Shale Gas — U.S. Continues to Lead World in GHG Reductions

New International Agency Agency (IEA) data released today further confirms that U.S. shale gas development is spearheading global efforts to reduce carbon emissions. The IEA reports that global CO2 remained flat for the third year in a row in 2016 at the same time the global economy grew 3.1 percent, “signaling a continuing decoupling of emissions and economic activity,” according to an IEA press release.
Most notably, the IEA reports that,
“The biggest drop came from the United States, where carbon dioxide emissions fell 3%, or 160 million tonnes, while the economy grew by 1.6%. The decline was driven by a surge

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French Oil Giant Seeks 50% Stake In Iran’s $4B South Pars

Total signed a preliminary deal for the project last year, and today stated its intentions in a regulatory filing with the U.S. Securities and Exchange Commission (SEC). The move makes Total the first Western supermajor to sign a deal with Iran on energy following the easing of sanctions. According to Total’s SEC filing, the company would finance 50.1 percent of the South Pars 11 project, which requires a total investment of US$4 billion. If this deal goes through, Total would be the operator of the project, while China’s CNPC would…

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Famine-Hit South Sudan Buys Arms With Oil Money, UN Report Says

The government of war-torn famine-stricken South Sudan is using at least half of its revenues from oil sales to acquire weapons, despite the dramatic political, economic and humanitarian crises in the country, Reuters says, quoting a confidential report by the panel of UN monitors it has seen. According to the UN sanctions monitors, 97 percent of the total known revenues of South Sudan come from oil sales – many of which are now forward sales – and at least half of that revenue, and “likely substantially more”, is going…

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Iraq Could Complicate OPEC Extension

Oil prices are refusing to budge this Friday, despite a large increase in the U.S. rig count and some bearish noises from OPEC. (Click to enlarge) (Click to enlarge)Friday, March 17, 2017Oil prices are set to close out the week unchanged from a week earlier, having moved up and down over the past few days. The latest report from the EIA was a merciful one for crude, showing a small but all-important drawdown in crude inventories. Had crude stocks jumped again last week, oil prices surely would have dropped significantly. Still, there is…

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Tesla Raises $1.2B, More Than Planned Ahead Of Model 3 Launch

Tesla Inc has raised a total of $1.2 billion in fresh capital by selling common shares and convertible notes, with the sum exceeding its target from earlier this week to raise $1 billion. Tesla is offering to sell 1,335,878 common shares at $262 per share, for a total of $350 million, the electric vehicle maker said in a SEC filing on Friday. Tesla chief executive Elon Musk has indicated his preliminary interest in buying up to 95,420 shares of Tesla common stock for a purchase price of around $25 million in this offering at the public offering…

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Oil Prices Wait And Watch For OPEC’s Next Move

It is quadruple witching day in the markets today, and accordingly, oil prices are scared stiff, hardly budging. Despite it being St. Patrick’s Day, prices are struggling to stay in the green, as market participants try to weigh up whether OPEC is going to continue its production cuts (or even implement them in the first place). Hark, here are five things to consider in oil markets today: 1) We’ve been highlighting for a while that Saudi Arabia could be looking at supplementing lost revenues from the OPEC production cut by exporting more products.…

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Power Plant President: “We Are Here In Ohio Because of Shale Development”

There is a tremendous change afoot in Ohio when it comes to fuel sources for electricity. As EID recently reported, investors are racing to Ohio to build combined cycle gas-turbine power plants as a result of the loss of 10,000 MW of coal-fired power, cheap and abundant natural gas from fracking, and a competitive free market system. A total of 11 Ohio natural gas power plants are either in development or under construction, adding over 6,000 jobs, $9.5 billion in direct investment, and more than enough power to surpass the coal-fired power loss the Buckeye State has experienced. Ohio

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