Energy / Crude Oil

• U.S. Will Export Oil – Who Wins and Who Loses?

  The surge in U.S. oil production in 2010 has left a glut of oil trapped within the United States. To be sure, the U.S. is by far the largest consumer of oil in the world, so it’s not like all that extra oil sloshing around can’t find a home. But, due to a mismatch between the light, sweet crude coming out of places like the Bakken and the Eagle Ford, and the preponderance of refineries on the Gulf Coast equipped to handle heavier, sourer types of oil, there are local surpluses in supply. As a result, prices are somewhat depressed…

• Iran Expanding Presence on International Oil Stage

  Iranian Oil Minister Bijan Zanganeh said oil production from the Islamic republic could increase even with harsh economic sanctions in place. In late December, Tehran said it would pump as much oil as it could if sanctions are lifted. Now, it seems, OPEC is taking notice. Zanganeh said he was ready to tap into all available oil resources despite Western economic sanctions targeting his country's energy sector. "We are hoping to see sanctions shrink, however we assume the harshest circumstances and draw up our roadmap assuming that sanctions will not be altered," he said. Related Article: Russia-Iran Oil Swap Deal Gains MomentumIran…

• Safety Issues May Curb Oil-by-Rail Potential

  A lack of pipeline infrastructure in Northern Plains states is unlikely to slow oil production, analysis finds. The sector could be constrained, however, amid national and international concerns about the safety of transporting oil by rail. Analysis last week from Wood Mackenzie finds more than 70 percent of the crude oil produced from the Williston Basin is leaving the region by rail. Production from the region is accelerating at a rate that's straining existing pipeline capacity, forcing energy companies to rely on rail as a transit alternative. Wood Mackenzie said rail capacity has now outpaced pipelines for regional transit, though that wouldn't…

• Russia-Iran Oil Swap Deal Gains Momentum

  Russia and Iran are moving closer to a $20 billion oil-for-goods deal launched earlier this year, according to a Reuters report citing unnamed sources close to the deal. Russia has finished preparation of all documents related to the deal on its side, and the deal’s completion now allegedly hinges on an oil price agreement, the source reportedly said. The deal could eventually be worth $15-$20 billion, but would be completed in increments, with an initial $6-$8 billion transaction, while both sides are still bargaining over the exact nature of a barter deal that would trade Iranian oil for Russian industrial…

• US Tight Oil Reaches 10% of World Production

  US overall crude oil production has reached more than 10% of the world’s total production, up from 9% in the fourth quarter of 2012, according to a new report by the Energy Information Administration (EIA). As of the fourth quarter of 2013, the US is contributing more than 10% to total global crude oil supply thanks largely to advances in hydraulic fracturing and drilling technology behind the production boom in Texas, North Dakota and other burgeoning venues in the West. Carrying the weight of the production increase is tight oil, which averaged 3.22 million barrels per day (MMbbl/d) in the…

• U.S. Taking on More Saudi Oil despite Shale Glut

  The U.S. Energy Department said imports from OPEC increased year-on-year, with Saudi Arabia accounting for the bulk of additional oil. While oil production from the United States has increased, the data show the global market is still interconnected. The U.S. Energy Information Administration reported the amount of petroleum imported from members of the Organization of Petroleum Exporting Countries was 3.57 million barrels per day in December, the last full month for which data are available from EIA.   While only 0.5 percent higher year-on-year, the increase suggests the global energy market is still interconnected despite the success of shale. Imports from Venezuela,…

• The 3 Most Important Numbers in Energy – 28th March 2014

  The Insider’s weekly run-down of critical figures and happenings from around the energy world.76.2%. Year-on-year increase in Chinese LNG imports during January. With shipments into the country totaling 2.65 million tonnes during the month.The big jump comes as overall Chinese natural gas demand is surging. China’s apparent demand in January grew 15.3% to 16.89 billion cubic meters, according to calculations from Platts. The country’s growing appetite for natgas is increasingly being met by imports—with domestic production currently running at just 10.99 billion cubic meters, or 65% of overall demand. Total imports for January were up 48%, met by a combination…

• A U.S.-Saudi Move to Lower Oil Prices?

  Could the U.S. unleash a flood of oil from the strategic petroleum reserve that would drive down prices in order to punish Russia? While the idea has been kicked around over the last few weeks – most recently by George Soros – it has also been dismissed as not a serious option. Some say the impact of an oil sale, if it actually succeeded in lower prices, would be temporary. Saudi Arabia could cut back on production to keep oil prices at their current levels. Others decried the idea as contrary to the objective of the SPR, which has been…

• Soros Promotes Oil Sales to Punish Putin

  Just weeks after the US announced its first test sale of crude oil from strategic reserves since 1990, billionaire philanthropist George Soros is lobbying for the release of more reserves on the market to punish Russian President Vladimir Putin. On 12 March, the US said it would dip into its emergency stockpile to release 5 million barrels onto the market, causing oil prices to drop to their lowest in a month, and this week, Soros has gone public with his proposal to release more as a way to hit back at Moscow for its annexation of Ukraine’s Crimean Peninsula. Speaking…

• Is it Time To Forget About Libyan Oil?

  German energy company Wintershall said last week it was optimistic about the prospects of a return to Libya. Tripoli, however, is once again asking for international help with security issues. With oil production in decline, the investment prospects may be grim. While international energy majors are still holding out hope for stability in Libya, a diverse portfolio is needed to protect against escalating security concerns. The Libyan government issued a statement following a spate of assassinations and bombings in the restive eastern city of Benghazi saying terrorist groups are waging war in the eastern region and outside help was needed again more…