OPEC agrees oil cut extension to end of 2018 (30 November 2017): VIENNA (Reuters) — OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signaling it could exit the deal earlier if the market overheats. Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn't flip into a deficit too soon, prices don't rally too fast and rival US shale firms don't boost output further. The producers' current deal, under which they are cutting supply by about 1.8 MMbpd in an effort to boost oil prices, expires in March. (Source: Hydrocarbon Processing)
MARKET WATCH: NYMEX, Brent crude trade flat ahead of OPEC meeting (29 November 2017): By Paula Dittrick, OGJ Upstream Technology Editor - The light, sweet crude oil contract for January delivery declined slightly to settle just under $58/bbl Nov. 28 on the New York market while Brent crude oil for January also fell but still settled above $63/bbl. The Organization of Petroleum Exporting Countries meets in Vienna on Nov. 30. Some non-OPEC producers, including Russia, also will be there to discuss extending an existing 1.8 million b/d in production-cut targets. That total includes both OPEC and non-OPEC producers.
Saudi Aramco, SABIC to develop crude oil to chemicals complex (28 November 2017): Saudi Aramco and SABIC have signed a memorandum of understanding (MoU) to develop a fully integrated crude oil to chemicals (COTC) complex in the Kingdom of Saudi Arabia, which governs the execution of the front-end engineering design (FEED) before a final investment decision is made. The COTC complex is expected to process 400,000 bpd of crude oil, which will produce approximately 9 MMt of chemicals and base oils annually and is expected to start operations in 2025. (Source: Hydrocarbon Processing)
Shell Teams Up With Carmakers To Build Huge EV Charging Network (27 November 2017): By Irina Slav - Shell has partnered with a consortium involving some of Europe’s largest carmakers to build a network of EV fast-charging stations across the continent. Initially, the charging stations will be installed at 80 highway Shell sites, beginning in 2019. Drivers of latest-generation electric cars will be able to charge in as low as five to ten minutes. The move is part of Shell’s switch to new revenue sources and follows its acquisition of Europe’s largest EV charging network NewMotion. The company has more than 30,000 private home charging points and 50,000 public charging sites. (Source: Oil Price)
Iraq plans new oil pipeline to Turkey (26 November 2017): Reuters - Iraq plans to build a new pipeline that will ship oil from Kirkuk's oilfields to the Ceyhan port in Turkey, the oil ministry said on Sunday. The new pipeline will replace an old and severely damaged section of the Kirkuk-Ceyhan pipeline. It will start from the nearby city of Baiji city and span until the Fish-Khabur border area with Turkey, the ministry said in a statement. The territory in which the Kirkuk-Ceyhan pipeline ran was taken by ISIL militants in 2014 and subsequently recaptured by US-backed Iraqi forces over the past two years. (Source: The National (UAE))
Renewable energy: India's next employment boom (25 November 2017): Rebecca Bundhun - India's renewable energy sector is expected to generate hundreds of thousands of jobs over the coming years, as the country strives to reduce its dependence on fossil fuels. India's expansion of wind and solar power over the next five years could generate 330,000 jobs in areas including manufacturing, project design, construction, business development, and operations and maintenance, according to a report by the World Resources Institute. (Source: The National (UAE))
Oil rises as Russia and OPEC said to reach outline deal on cuts (24 November 2017): By ROBERT TUTTLE - CALGARY (Bloomberg) -- Oil advanced to a fresh two-year high as OPEC and Russia were said to have crafted the outline of a deal to extend their oil production cuts to the end of next year. Futures gained as much as 1.6% in New York. After days of talks, Moscow and Riyadh now agree on the need to announce an additional period of cuts at the Nov. 30 meeting, although both sides are still hammering out crucial details, according to people involved in the conversations. Moscow had been hesitating over the need for an extension because the current deal doesn’t expire until the end of March.
$40 WTI Is Now More Realistic Than $60 (23 Nov 2017): By Tsvetana Paraskova - The current rise in oil prices is more of a fear trade right now, driven by fear of what is going on in the Middle East, rather than a result of growing OPEC chatter or inventory reports, Todd Horwitz, chief strategist at Bubbatrading.com, told Bloomberg on Wednesday. “The oil premiums are very narrow going out to the future, which means that this is more of a fear trade in the front month,” Horwitz said on ‘Bloomberg Markets’. (Source: Oil Price)
Eight energy majors commit to reducing methane emissions within natural gas industry (22 November 2017): LONDON -- BP, Eni, ExxonMobil, Repsol, Shell, Statoil, Total and Wintershall today committed to further reduce methane emissions from the natural gas assets they operate around the world. The energy companies also agreed to encourage others across the natural gas value chain – from production to the final consumer – to do the same. The commitment was made as part of wider efforts by the global energy industry to ensure that natural gas continues to play a critical role in helping meet future energy demand while addressing climate change. Since natural gas consists mainly of methane, a potent greenhouse gas, its role in the transition to a low-carbon future will be influenced by the extent to which methane emissions are reduced. (Source: World Oil)
Reactor arrives at LyondellBasell’s first commercial hyperzone polyethylene plant (21 November 2017): LyondellBasell, one of the world's largest plastics, chemicals and refining companies, announced the arrival of its Hyperzone polyethylene (PE) plant’s multi-zone circulating reactor, a significant milestone in the project’s construction phase. The company broke ground on the plant in May, and start up is planned for 2019. Hyperzone technology will address modern solutions in plastics, and the plant is part of the company’s multi-billion dollar series of investments along the US Gulf Coast to continue expanding and enhancing service globally. (Source: Hydrocarbon Processing)
Who's Next? Venezuela's Collapse Puts These Nations At Risk (20 November 2017): By ZeroHedge - Nov 20"It's a wake-up call for a lot of people who will say ‘Look, the stuff I own is actually very risky'..." warns Ray Jian, who oversees about $6 billion at Pioneer Investment Management Ltd. in London. "People have been ignoring risks in places like Lebanon for a long time," and the official default of Venezuela this week has emerging-market money managers are looking to identify countries that might run into trouble down the road. (Source: Oil Price)
Oman looks to develop industrial and logistics parks in concession areas (19 November 2017): Fahad Shadeed / Reuters - The upstream operator Petroleum Development Oman (PDO) is looking to develop large industrial and logistics parks in two maturing fields as it looks to maximise value, according to a senior official. “As part of our one-stop-shop to accelerate things for PDO, we’re planning to build two industrial and logistics parks, one in Qarn Alam and one in [the] Marmul field,” the PDO external affairs and value creation director abdul Amir Al Ajmi told The National in Abu Dhabi.
Chinese Crude Inventories Fall For First Time In 12 Months (17 november 2017): By Irina Slav - 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 7.34 million bpd. As a result, inventories at the end of October stood at 11.06 million bpd. This, S&P Platts noted, was a 4.5-percent increase on the year, however. (Source: Oil Price)
Oil to supply 27 per cent of world’s energy needs in 2040: OPEC (16 November 2017): Oil will remain the world’s largest source of energy in the next two decades, despite the increasing importance of renewables, according to OPEC’s 11th edition of the World Oil Outlook, released during ADIPEC 2017. According to OPEC, oil will remain the world’s largest source of energy in the next two decades. The latest edition of the World Oil Outlook forecasts that oil will supply more than 27 per cent of worldwide energy needs in 2040, with natural gas contributing around 25 per cent. (Source: Oil Review Africa)
Adnoc strikes new framework agreement with China National Petroleum Corporation (15 November 2017): The Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC) will look at offshore ventures and sour gas projects, following the signing of a new framework agreement on Wednesday at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec). The Chinese state-owned energy firm is set to consider possible opportunities in developing Abu Dhabi’s Lower Zakum, Umm Shaif and Nasr offshore concessions, the Bab Bu Hasa, Ghasha and Hail sour gas development projects as well as others. (Source: The National)
Bechtel to deliver 27.6 MMtpy Driftwood LNG project for Tellurian (14 November 2017): HOUSTON — Bechtel announced it has signed four lump-sum turnkey agreements with Driftwood LNG LLC, a Tellurian company, to deliver one of the world's lowest-cost liquefaction construction projects near Lake Charles, Louisiana. Construction of the Driftwood LNG project is expected to begin in 2018 with the first LNG produced in 2022, subject to Tellurian making a Final Investment Decision and a permit from the US Federal Energy Regulatory Commission. (Source: Oil Processing)
Nigeria to approve three modular refineries in Edo (13 November 2017): Nigeria is processing applications for establishing seven modular refineries in the state, said Dr Ibe Kachikwu, minister of state petroleum resources, noting that three of the applications have reached the approval stage. The new refineries are part of the government’s initiative to boost Nigeria’s petrochemical sector. Kachikwu disclosed this during Alaghodaro Investment Summit, held in Benin city and organised by the Federal Ministry of Petroleum Resources in collaboration with the Edo State government. (Source: Oil Review Africa)
The world's energy sector leaders gather in Abu Dhabi (12 November 2017): Mustafa Alrawi - The chief executives of BP, Saudi Aramco, France’s Total, China’s CNPC, Exxon Mobil and Lukoil were among a gathering of the world’s most senior energy company executives in Abu Dhabi on Sunday to discuss critical issues facing the industry. The high-profile gathering is being held ahead of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2017, one of the world’s largest energy gatherings, which begins on Monday in the capital. “This was an important and unique opportunity for oil and gas industry leaders to share insights and perspectives on the evolving energy landscape and how it’s influencing supply and demand for our products. The roundtable enabled us to engage in open discussion and reflect on the technological and economic factors shaping the oil, gas and petrochemical industries," said host Dr Sultan Al Jaber, the chief executive of Adnoc. (Source: The National)
As oil prices rise, global majors eye Mexico's deep waters (10 November 2017): By ADAM WILLIAMS - MEXICO CITY (Bloomberg) -- As the price of oil rises, an international rush is on for Mexico’s untapped deepwater riches. The who’s who of the oil world -- led by ExxonMobil Corp. and Royal Dutch Shell Plc, the world’s two biggest drillers by market value -- are lining up to bid in the country’s Jan. 31 deepwater auction. And the interest is international in scope, drawing Chevron Corp. from the U.S., the UK’s BP Plc, Norway’s Statoil ASA, France’s Total SA, Australia’s BHP Billiton Ltd, Russia’s Lukoil PJSC and China’s Cnooc Ltd, among others. (Source: World Oil)
Saudi Aramco awards $4.5bn worth of contracts to boost gas output (9 November 2017): Dania Saadi - Saudi Aramco, the world’s biggest oil producer, has awarded US$4.5 billion worth of contracts to oil and gas services companies that will help boost the kingdom’s gas production and lower its consumption of oil. The companies that won the eight contracts include Spain’s Técnicas Reunidas, Italy’s Snamprogetti, China Petroleum Pipelines Company, Abu Dhabi-based National Petroleum Construction Company, McDermott Middle East and US-based Jacobs Engineering. (Source: The National)
Does The U.S. Lead The World In Carbon Emissions Reduction? (8 November 2017): By Robert Rapier - In a recent interview with Fox News, Environmental Protection Agency Administrator Scott Pruitt claimed: “We are leading the nation — excuse me — the world with respect to our CO2 footprint in reductions.” The Washington Post fact-checked this claim and rated it “Three Pinocchios,” which means they rate the claim mostly false. They further wrote that Pruitt’s usage of data appeared to be a “deliberate effort to mislead the public.” (Source: Oil Price)
MARKET WATCH: Oil prices climb on Saudi politics (7 November 2017): By Paula Dittrick OGJ Upstream Technology Editor - Light, sweet crude oil prices soared by more than $1.70 on Nov. 6 on the New York market while Brent crude oil prices jumped by more than $2 in London. The oil benchmarks reached 2-year highs although they were edging down in Nov. 7 trading. The gains came on news that Saudi Arabia’s Crown Prince Mohammed bin Salman launched a broad crackdown on what he called corruption, resulting in 11 princes, several ministers, and some businessmen being arrested. Analysts said Prince Mohammed’s move against royals and other Saudi elite, which started during the weekend, provided another geopolitical risk for the oil market to consider. (Source: Oil & Gas Journal)
Big Oil Plans Blockchain-Based Trading Platform (6 November 2017): By Irina Slav - A consortium involving Shell, BP, and Statoil is working on the development of a blockchain-based energy commodity trading platform, along with three large commodity traders—Gunvor, Koch Supply & Trading, and Mercuria, Reuters reports, citing the consortium. The platform, which has financial backing from Dutch ABN Amro, ING, and French Societe Generale, should launch by the end of next year. (Source: Oil Price)
Why oil and gas companies must act on analytics By Anders Brun, Monica Trench, and Thijs Vermaat - To a large extent, the financial results of companies in many sectors of the oil and gas (O&G) industry depend on the performance of complex, capital-intensive process facilities. But until very recently, O&G companies have not had the tools or the capabilities needed to operate these assets at their maximum capacity. What’s changed? Put simply, analytics tools and techniques have advanced far and fast—to the point where they can unlock the production potential of complex process facilities and enhance asset investment returns in O&G. Applied properly, advanced analytics can yield returns as high as 30-50 times investment within a few months of implementation. Moreover, they can positively transform the organizations and fundamental operating models of O&G production systems. (Source: www.mckinsey.com/)
The Global Economy Looks Good for 2018 (Unless Somebody Does Something Dumb): The big story for 2018 is likely to be how to manage the continued expansion. A turning point may come at the end of September, when the European Central Bank might stop or curtail monthly bond purchases. The central banks bought bonds to drive down long-term interest rates; while the Japanese will keep buying, the Americans and soon the Europeans are betting that the patient, the economy, is finally well enough to get along without life support. (Source: www.bloomberg.com/)
Big Oil CEO Slams Saudi Energy Reform (3 November 2017): By Irina Slav - Total’s chief executive Patrick Pouyanne has warned that Saudi Arabia’s social and economic reforms might be a bit too ambitious, and might not go as smoothly, not to mention as quickly, as their proponents seem to believe. Speaking at an event in London, Pouyanne said “You don’t change into a secular regime just like that,” reminiscing about the situation in Russia after the toppling of its last Soviet leader, Mikhail Gorbatchev. Chaos, Pouyanne said, was the first stage of the transition. (Source: Oil Price)
KBR awarded engineering support services contract for Al Hosn Gas JV (2 November 2017): HOUSTON — KBR, Inc. announced it has been awarded a contract to provide Engineering Support Services for Operations for Abu Dhabi Gas Development Company (Al Hosn Gas), a 60/40 JV of Abu Dhabi National Oil Company (ADNOC) and Occidental of Abu Dhabi Ltd. (Oxy). Under the terms of the contract, KBR will provide personnel, equipment and resources to carry out engineering tasks and technical support on Al Hosn's Shah facilities in Abu Dhabi, United Arab Emirates. (Source: Gas Processing)
Oil price surges to highest in more than two years (1 November 2017): Reuters - Oil rose to its highest since mid-2015 on Wednesday as data showed Opec has significantly improved compliance with its pledged supply cuts and Russia is also widely expected to keep to the deal. Brent crude futures were up 59 cents at US$61.53 per barrel at 09.05 GMT, having hit a session peak of $61.70 earlier, the highest since July 2015. (Source: The National)
One worker dies in fire at Russia's Yaroslavl oil refinery (1 November 2017): MOSCOW (Reuters) — One worker has died and another was injured when a crude oil distillation unit at an oil refinery in the Russian city of Yaroslavl caught fire on Wednesday, the refinery said. The refinery, YANOS, is owned by Slavneft, which is controlled equally by Rosneft and Gazprom Neft. The CDU-3 unit has been halted and the fire was put out, while production at the plant has continued, the plant's press service said. Russian oil pipeline monopoly Transneft said the plant has not asked for changes to oil products supplies or crude oil intake. (Source: Hydrocarbon Processing)
Shell sells UK North Sea asset and Gabon onshore interests (1 November 2017): THE HAGUE -- Shell has completed the sale of a package of UK North Sea assets to Chrysaor for a total of up to $3.8 billion, including an initial consideration of $3.0 billion and a payment of up to $600 million between 2018-2021 subject to commodity price, with potential further payments of up to $180 million for future discoveries. This sale was announced on January 31, 2017 and has an effective date of July 1 2016. Completion follows receipt of all necessary regulatory and partner approvals. (Source: World Oil)