Petrofac swings to profit on the back of revenue growth (28 August 2019): Petrofac, the London-listed oilfield services firm with offices in Sharjah, swung to profit in the first half of 2019 on the back of strong revenues and lower finance expenses. Net profit attributable to shareholders for the six-month period ending June 30 reached $139 million (Dh510 m) compared to a loss of $17m for the same period last year, the company said in a statement to the London Stock Exchange, where its shares trade. Revenue increased 1 per cent in the first half to $2.82 billion from the same period a year earlier, while finance expenses were lower at $30m. (Source: The National (UAE))
TechnipFMC to split, spinning off onshore, offshore segments (26 August 2019): UPDATE: During a conference call on the TechnipFMC split Monday afternoon, chairman of the board and CEO Douglas J. Pferdehirt said “There are very few synergies between upstream and downstream. We are seeing the beginning of a shaping of our industry. We believe that what we are creating, others will follow. When you over-integrate, the customer can see you as greedy. We integrate where it clearly adds value to the customer.” (Source: World Oil)
Oil jumps after Trump says China wants to restart trade talks (26 August 2019): LONDON (Bloomberg) - Oil jumped after U.S. President Donald Trump said that China wanted to restart trade talks, potentially easing escalating tensions between the two countries. Futures in New York rose as much as 0.8%, snapping the longest run of declines in more than five weeks. Trump’s comments reversed a drop of as much as 2.2% that had looked set to continue the streak of losses for a fifth day. Trump’s words cooled concern that China’s plan to halt purchases of American crude and threats of tougher U.S. levies would worsen an already shaky global demand outlook. (Source: World Oil)
Iraq deal to provide power for new natural gas liquid plant (25 August 2019): Basrah Gas Company (BGC) and Shamara Holding signed a contract to secure electricity supply to power Basra Natural Gas Liquid plant, to enable the plant to process by-product gas that would other wise be flared from Iraq's Rumaila, Zubair and West Qurna-1 oilfields for use by Iraq power stations. Shamara Holding will provide the electricity required to power the Basra-NGL plant. Once operational and connected to the country's gas grid, the plant will produce domestic gas to feed power stations and potentially generate in excess of 1,500 megawatts of electricity – enough to power more than 1 million houses in Iraq, according to Frits Klap, BGC managing director. (Source: The National (UAE))
UK’s Oil Tanker May Soon Be Released (23 August 2019): By Julianne Geiger - Another chapter in the drama on the seas may soon be over. Swedish public service broadcaster SVT says that sources within the Swedish foreign ministry has given it strong indications that Britain’s oil tanker will soon be released after Iran’s Revolutionary Guards confiscated the tanker, ostensibly for violating unspecified maritime regulations. The British tanker Stena Impero, operated by a Swedish company, has been held since July 19. Iran’s foreign minister has been in talks with Swedish foreign minister Margo Wallstrom about the incident. (Source: Oil Price)
Gas processing innovations spur increased deployments (22 August 2019): LNG technologies, such as floating LNG (FLNG) innovations, driven by its shorter construction lead times and lower capital investment costs, are increasingly becoming a viable option for increased gas deployments. FLNG helps mitigate siting constraints that shore-based infrastructure may face. At the same time, the continued need for a balanced power generation portfolio as well as the need to address energy security and environmental concerns are driving rapid growth in the gas industry. To support this, Black & Veatch is enhancing its ability to provide clients with FLNG expertise that offers cost and operational efficiencies. (Source: Gas Processing)
Future in doubt for Europe’s biggest gas export hub (22 August 2019): By VANESSA DEZEM - FRANKFURT (Bloomberg) - Even the seller of natural gas from Europe’s largest field was taken aback by the Dutch government’s decision last year to close it forever. “That was the first moment when we heard about zero,” Annie Krist, the chief executive officer of GasTerra, said in an interview. “Zero really means no more gas. And that for a country that is dependent on gas.” GasTerra, a venture between Royal Dutch Shell Plc, Exxon Mobil Corp. and the Dutch state that five years ago still handled more than a fifth of all the gas produced in Europe, had already been forced to adapt to output constraints at the Groningen field after tremors damaged nearby buildings. But shutting down is a step further -- raising questions about import dependency and the Dutch Title Transfer Facility’s role as the fuel’s biggest trading hub outside the U.S. (Source: World Oil)
China to redirect solar deployment inland as it looks to boost renewables capacity (21 August 2019): China will increase deployment of solar power schemes inland over the coming decade as it looks to phase out subsidies from the energy sector by 2021. Gansu and Xinjiang provinces will see the highest concentration of solar projects in the future as the government looks to redirect efforts, earlier focused on coastal areas, to its interior. (Source: The National (UAE))
The 5 Hottest Gold Stocks Of 2019 (19 August 2019): By Meredith Taylor - We’ve all seen the headlines. Another trade war could be around the corner. The perfect time for investors to hedge. And, like magic, gold prices are up: the gold index hit a six-year high on August 1. Gold miners are having a stellar year. And even if things don’t turn south for the market, adding gold to your portfolio is a great way to diversify assets and hedge against potential downturns. (Source: Oil Price)
Asian oil refiners finally see gains from rules against dirty ship fuel (19 August 2019): The imminent overhaul of global ship fuel regulations is finally delivering a long-awaited benefit to Asian oil refiners. Profits from turning crude into diesel in the second half of 2019 are forecast to be about 31 per cent higher than the first six months, according to Goldman Sachs. Margins have already expanded around 40 per cent since late April as International Maritime Organisation rules that prohibit ships from using dirty fuel from January 1 are set to bolster diesel demand, while cutting fuel oil use. (Source: The National (UAE))
What a global recession would mean for Opec (18 August 2019): Roman soothsayers would look for omens in the flight of eagles or the entrails of sacrificed animals, before advising whether to fight a battle. The inversion of the bond yield curve on Wednesday, often a harbinger of recession, is clearly not a good omen for the oil market. But should the oil exporters step up their campaign to protect prices, or retreat? The yield-curve inversion, where short-term bond yields exceed long-term ones, has predicted US recessions since 1956, but the recessions themselves have followed between three and eleven months later. Some analysts downplay this warning because of special circumstances – worldwide central bank rate cuts, a secular fall in inflation and population growth – but there are always special circumstances. (Source: The national (UAE))
Buy-outs lead to hike in Ades International's first half-revenue (17 August 2019): Ades International Holding, a Dubai-based oil and gas drilling and production services provider, reported a 176 per cent rise in first-half revenue, driven by contributions from rigs acquired across the Mena region and a steady ramp-up of utilisation rates. Revenue in the six months to June 30 increased to $219.9 million (Dh807.6m), the company said in a statement to the London Stock Exchange, where its shares trade. (Source: The National (UAE))
Oil Markets Face Nightmare Scenario (14 August 2019): By Nick Cunningham - Oil prices rose sharply on Tuesday after President Trump decided to delay tariffs, recognizing the negative impact tariffs would have on the U.S. economy. But by Wednesday, oil prices crashed again, as financial markets see the risk of economic recession rising in spite of the tariff delay. (Source: Oil Price)
China Prepares Its “Nuclear Option” In Trade War (13 August 2019): By Simon Watkins - As the trade war with the U.S. continues to escalate, China has re-engaged with Iran on three key projects and is weighing the use of what both Washington and Beijing term the ‘nuclear option’, a senior oil and gas industry source who works closely with Iran’s Petroleum Ministry told OilPrice.com last week. For the first of these projects - Phase 11 of the supergiant South Pars ... (Source: Oil Price)
Trade war and oil prices: what's the link? (12 August 2019): US President Donald Trump had, as part of his 2016 election campaign promises, vowed to label China a currency manipulator. He accused Beijing of artificially keeping its currency low in order to facilitate cheap exports into the US. He promised his voter base that the American manufacturing industry hurt from an influx of cheap Chinese imports would be revived on the basis of increased protectionism and said he would target Beijing with tariffs. Two years into his presidency Mr Trump has made good on his campaign promise by slapping billions of dollars of tariffs on Chinese imports. (Source: The National (UAE))
Negotiations with Exxon for Basra mega-project still on, says Iraqi oil ministry (11 August 2019): Iraq is not ruling out US oil major Exxon Mobil from participating in a $53 billion (Dh194bn) 30-year mega project to develop the country’s southern energy infrastructure, the oil ministry said on Saturday. Not reaching an agreement or signing a deal with the US company did not mean the end of negotiations or the “exclusion” of Exxon Mobil, it said in a statement. “The ministry affirms that its negotiations with US company Exxon Mobil are ongoing,” the country said. (Source: The National (UAE))
Oil Needs To Be Below $20 To Compete With Electric Cars (5 August 2019): By Tsvetana Paraskova - The long-term breakeven oil price needs to be as low as $9 or $10 a barrel so that gasoline cars can remain competitive as a means of transportation in the future, BNP Paribas Asset Management said in new research this month. The research report—authored by Mark Lewis, Global Head of Sustainability Research at BNP Paribas Asset Management—introduces the concept of Energy Return on Capital Invested (EROCI) to measure how much a given capital outlay on oil and renewables translates into useful or propulsive energy at the wheels: “in other words, for a given capital outlay, how much mobility can you buy?” (Source: Oil Price)
Oil prices slip as prospect of renewed trade war looms large (5 August 2019): Oil prices resumed its decline as markets began trading following the latest US tariffs on China, which darkened outlook for the commodity near-term. Brent was trading at $61.12 per barrel at 1.38pm UAE time as markets weighed the prospect of another protracted trade war between the two largest economies. Tensions in the Middle East, which were on the rise on Sunday following the seizure of another vessel by Iran, seemed to have little bearing on the movement of prices. (Source: The National (UAE))
The No.1 Reason Why Oil Isn’t Trading Over $100 (3 August 2019): By Robert Rapier - One of the most important questions in the global oil markets revolves around U.S. oil production. There is probably nothing OPEC would like to know more than when U.S. oil production will begin to decline. The resurgence of U.S. oil production over the past decade diminished OPEC’s control of the global oil markets. In less than eight years, U.S. oil production climbed from under 6 million barrels per day (BPD) to more than 12 million BPD. This surge is arguably the only reason oil prices today aren’t above $100/barrel (bbl). (Source: Oil Price)
WTI’s Worst Day In 4 And A Half Years (2 August 2019): By Tsvetana Paraskova - The U.S. oil benchmark tumbled nearly 8 percent on Thursday in its biggest one-day drop in four and a half years after U.S. President Donald Trump rekindled fears of significant slowdown in economies and oil demand growth by announcing he would impose tariffs on US$300 billion worth of Chinese imports. On Wednesday, WTI Crude traded at $58.58 a barrel at close, while on Thursday, the U.S. benchmark crashed by as much as 7.9 percent, or by $4.63 a barrel to close at $53.95. Oil prices took a heavy hit after President Trump said that the U.S.-China trade talks—after no-breakthrough negotiations this week —would continue in September, while the “U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country.” (Source: Oil Price)
Shelter in Place Order Issued As Exxon Refinery Goes Up In Flames (1 August 2019): By Julianne Geiger - Exxon Mobil’s oil refinery in Baytown, Texas has erupted in fire, sparking a shelter in place order for the area, according to the City of Baytown’s Twitter account on Wednesday afternoon. Emergency response teams have been dispatched to the refinery, according to local media. Exxon is reportedly monitoring the air quality as a precaution and is trying to account for all its personnel in the wake of the fire. Exxon spokeswoman Sarah Nordin told Reuters have been treated for non-life threatening injuries. (Source: Oil Price)