S.Korea's GS E&C wins $865-MM order to rebuild ADNOC's fire-hit refinery (30 June 2017): SEOUL/SINGAPORE (Reuters) — Abu Dhabi demand for gasoline is expected to stay firm after its plans to restart a gasoline-making secondary unit at its Ruwais refinery were delayed by about a year into early 2019.
Oil Prices Are Set To Post Worst H1 Since 1998 (30 June 2017): By Tsvetana Paraskova - A weaker dollar and lower U.S. crude oil production for last week are pushing oil prices up this week to their seventh consecutive trading session in the black, but crude prices have dropped by double digits since the beginning of the year and are set to record their worst first-half performance since the first half of 1998.
S.Korea's SK Group signs MOU with GE to jointly develop US shale gas (29 June 2017): SEOUL (Reuters) — South Korean energy conglomerate SK Group signed a memorandum of understanding (MOU) with General Electric on Thursday to jointly develop US shale gas fields in a bid to expand in the US shale gas sector.
Goldman Slashes 3-Month Oil Price Forecast By $8.50 (29 June 2017): By Tsvetana Paraskova - Goldman Sachs is slashing its three-month price forecast for WTI to US$47.50 a barrel from US$55, seeing output gains in Libya and Nigeria as jeopardizing OPEC’s efforts to reduce global inventories, so the cartel may have to cut deeper in order to prop oil prices.
CB&I announces multi-technology award in Uzbekistan (28 June 2017): THE WOODLANDS, Texas — CB&I announced it has been awarded a technology contract by Shurtan Gas Chemical Complex LLC (SGCC) for a grassroots ethylene complex to be built in southern Uzbekistan. The scope of work includes the license and basic engineering of an ethylene unit, which will use four proprietary SRT heaters, a Hexene-1 unit and a polypropylene unit.
This Region Is China’s Next Target For Resource Deals (28 June 2017): By Dave Forest - South Africa’s chamber of mines officially filed suit this week to block the country’s challenging new mining charter. But elsewhere in the world, some of the biggest investors in natural resources are ramping up their financial commitments — to a new target region for mining and energy deals.
OPEC Not In A Hurry To Cut Deeper (27 June 2017): By Tsvetana Paraskova - OPEC may be mulling over deeper oil production cuts, but they won’t be rushing to make that decision, even though a panel monitoring the cuts will be meeting next month, Reuters reported on Tuesday, citing OPEC delegates and sources familiar with the cartel’s thinking).
World’s richest brands bet on the business case for renewable energy (26 June 2017): LeAnne Graves - Some of the world’s biggest technology names are betting on renewables, pointing to the growing business case to power internet searches and share photos on social media. One out of every five units of energy delivered to consumers now comes from renewable energy sources such as solar and wind, according to the Abu Dhabi-based International Renewable Energy Agency (Irena).
Oil joke Mexico set for last laugh after exploration bids (25 June 2017): Robin Mills - An Italian, a Colombian and a Russian walked into Mexico last week – part of the transformation of a country that had long been something of an oil industry joke. Mexico’s latest bid round for shallow-water oil exploration was highly successful – promising more production, and demonstrating the virtues of openness to international investment.
Investment in new technology projects welcomed by Oil & Gas UK (23 June 2017): In response to the Oil and Gas Technology Centre’s £1.6 million investment in new projects. Mike Tholen, Oil & Gas UK’s upstream policy director, said: “We are delighted that the OGTC is now making material investments in new technology. Asset integrity and well construction are two of the industry’s priority technology themes. Technological advances in these areas by the industry’s world class supply chain will contribute to efforts to improve efficiency to restore competitiveness to the UK Continental Shelf.”
World's no. 3 oil reserves tested by rout as Shell decamps (23 June 2017): By KEVIN ORLAND - CALGARY (Bloomberg) -- When Royal Dutch Shell decided to pull out of the Canadian oil sands, the local producers doubled down with more investment. Crude’s bear market is testing their resolve.
Macquarie: OPEC Deal To Collapse In 2018 (22 June 2017): By Tsvetana Paraskova - OPEC’s production cut deal is unlikely to survive beyond its current deadline in March 2018, with the agreement seen falling apart towards the middle of next year, in which case a huge amount of extra oil would hit the market, Ian Reid, head of European oil and gas research at Macquarie, told CNBC on Thursday.
Fuel oil margins rise to five-year high, potential boon for simple refiners (21 June 2017): SINGAPORE (Reuters) — Fuel oil profit margins have surged to their highest in more than 5 yr on lower supplies and rising demand from electric power generators, which may push some refiners to increase their runs.
Oil majors risk wasting $2.3 trillion if peak demand looms (21 June 2017): By RAKTEEM KATAKEY - LONDON (Bloomberg) -- Oil companies risk wasting $2.3 trillion of investments should demand peak in the next decade as the world works toward its goal of limiting global warming, according to a report from Carbon Tracker.
Iran, Total expect to sign biggest gas deal in weeks (20 June 2017): By HASHEM KALANTARI AND ANTHONY DIPAOLA - DUBAI (Bloomberg) -- Iran and France’s Total SA expect to sign a contract to develop part of the world’s biggest natural gas field in the next few weeks in what would be the Persian Gulf country’s first investment by an international energy company since sanctions were eased last year.
Photo courtesy of CB&I.
Propane dehydrogenation plant in Korea reaches record production rate (19 June 2017): CB&I and SK Advanced Co. Ltd. are celebrating the record production rates and outstanding operation of a propane dehydrogenation (PDH) plant in Seoul, South Korea. The plant uses CB&I’s CATOFIN technology and Clariant’s dehydrogenation catalyst for the nameplate production of 600,000 mtpy of propylene. CB&I announced the license and basic engineering contract for this plant in March 2013.
Are Hedge Funds Growing Weary Of The Permian? (16 June 2017): By Irina Slav - Eight hedge funds have pulled out more than US$400 million in positions in ten big shale oil and gas companies active in the Permian, Reuters reported, as the financial industry starts to get nervous about the growth prospects of the shale drillers amid declining oil prices.
Why The United States Rules Oil Prices... Not OPEC (15 June 2017): By ZeroHedge - There’s no end in sight to slumping oil prices - good news for consumers but a dire development for major oil producers like Saudi Arabia and Russia. And now, rising U.S. oil production and exports are contributing to the slump.
Analysts Warn: Much Deeper OPEC Cuts Are Needed (14 June 2017): By Irina Slav - The International Energy Agency had a nasty surprise for OPEC and its partners in the oil output cut agreement today. According to the authority, non-OPEC production in 2018 will increase by 1.5 million barrels daily – a rate that will surpass the growth of global demand.
Middle East and Africa oil and gas pipeline market is projected to reach US$10.8bn by 2022 (13 June 2017): An example of dockside oil pipelines. (Image source: Loozrboy/Flickr)Research and Markets has announced the addition of the "Middle East & Africa Oil & Gas Pipeline Market By Application (Midstream, Downstream, Upstream), By Type (SAW, Seamless, ERW, Polyethylene & Composites), Competition Forecast and Opportunities, 2012-2022" report to their repertoire.
Russia, Saudi Arabia: The OPEC Deal Works Fine (12 June 2017): By Irina Slav - Russia and Saudi Arabia, the biggest participants in the international oil production cut deal, seem to be still confident that it will achieve the results everyone in OPEC and its partners is hoping for and bring the market back to balance by the end of the first quarter of 2018.
Countering ISIS: Iraq Aims To Triple Its Refining Capacity (9 June 2017): By Oil & Gas 360 - Iraq is planning to triple its refining capacity as the third-largest oil exporter increases crude oil production, Bloomberg reported, based on an interview with an official in the country.
Is The Electric Car Boom Overhyped? (8 June 2017): By City A.M - The number of electric vehicles on the road surged to two million last year, according to the International Energy Agency (IEA). Registered plug-in and battery-powered vehicles on roads worldwide rose 60 per cent from the year before, according to the IEA's global EV 2017 report. However, despite the soaring numbers, electric vehicles still represent just 0.2 per cent of total light-duty vehicles.
Middle East crisis builds as UAE downplays chance of quick fix (7 June 2017): By ALAA SHAHINE AND ZAINAB FATTAH - DUBAI (Bloomberg) -- The worst crisis in decades among the Gulf’s Arab monarchies intensified on Wednesday, with a Saudi-led alliance imposing more punitive sanctions against Qatar and a senior UAE official playing down the chances of a quick diplomatic resolution.
U.S. Oil To Break Production Record In 2018 (7 June 2017): By Oil & Gas 360 - The U.S. will break a 47-year record next year, according to the EIA, as shale production continues to recover from the global industry downturn. The highest monthly production the U.S. ever achieved was 10,044 MBOPD, in November 1970. Production in March 2017, the most recent month the EIA has data for, was 9,098 MBOPD. Production has been rising since September.
IRPC Europe '17: OMV exec examines challenges facing EU refining industry (6 June 2017): VIENNA—Director General of the UK Petroleum Industry Association Ltd. (UKPIA), Chris Hunt, delivered opening remarks on Day 1 of Gulf Publishing Company's International Refining and Petrochemical Conference (IRPC) Europe. Mr. Hunt invited attendees to network with one another during the conference against the beautiful backdrop of the Danube River.
Is $75 Oil Still Possible? (6 June 2017): By Oil & Gas 360 - The oil market rebalancing is in progress, even if it is slower than expected, according to releases by Societe Generale and RBC Capital Markets. When OPEC first agreed to cut production in November, analysts were hoping that six months of reduced production would be enough to rebalance the oil market and draw down inventories.
Saudi-led alliance moves to isolate Qatar over Iran tensions (5 June 2017): By GLEN CAREY AND ZAID SABAH - RIYADH (Bloomberg) -- Saudi Arabia and three other Arab countries cut off most diplomatic and economic ties to Qatar, in an unprecedented move designed to punish one of the region’s financial superpowers for its ties with Iran and Islamist groups in the region.
Gulf petchem operators to look overseas for projects and acquisitions (4 June 2017): Dania Saadi - Arabian Gulf petrochemical producers will target more overseas projects and acquisitions because of a regional gas shortage and the need to be closer to their customers, experts said. "The main reason [for choosing overseas projects] is that there are limited volumes of low-cost feedstocks available in the region," said Arvind Aggarwal, a principal for the Middle East at Nexant Energy & Chemicals Advisory.n Gulf.
GCC solar will benefit from US-China spat (3 June 2017): LeAnne Graves - The revival of a trade feud between the United States and China could lead to cheaper prices for solar panels as Asian suppliers shift exports to the Arabian Gulf.
Eni finalizes $7-billion Mozambique gas project investment (2 June 2017): By BORGES NHAMIRE AND PAUL BURKHARDT - JOHANNESBURG (Bloomberg) -- Eni SpA led a group that signed off on a $7-billion investment in a project to export natural gas from Mozambique.
Clash Between Qatar And The Saudis Could Threaten OPEC Deal (1 June 2017): By Cyril Widdershoven - The cohesion of the Gulf Cooperation Council (GCC), which includes all Arab Gulf countries, seems to be cracking. UAE Minister of State for Foreign Affairs, Anwar Gargash, openly stated that the GCC was facing a major crisis, as Qatar seems to be opening up to Iran. Gargash made his comments on Twitter less than a week after Saudi Arabia and the UAE signaled frustration at Qatar. The simmering conflict between the UAE and Saudi Arabia on one side and Qatar on the other has again been heating up after the Qatar’s News Agency (QNA) was purportedly hacked, spreading remarks by Qatari Emir Tamim bin Hamad al-Thani which criticized Gulf rhetoric against Iran and suggested strains between the Emir and U.S. President Donald Trump. Qatar has vehemently denied these quotes, but the Saudi, Emirati and Egyptian governments have reacted by blocking Qatari news sites and TV stations, including Al Jazeera.
Russia’s Economy Minister: Russia Can Live Forever At $40 Oil (1 June 2017): By Tsvetana Paraskova - The OPEC/non-OPEC deal is working, and the current underlying key assumption of Russia’s economic policies—oil prices at US$40—can allow it to live forever at that price or below, Russia’s Economy Minister Maxim Oreshkin told Bloomberg in an interview on the sidelines of the St. Petersburg International Economic Forum on Thursday.