• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 10 mins americavchina.com (otherwise known as OilPrice).
  • 3 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 13 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 2 days Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 day Natural Gas
  • 6 hours POTUS Trump signs the HK Bill
  • 18 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 6 hours Iraq war and Possible Lies
  • 2 days Everything you think you know about economics is WRONG!
  • 9 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation test wells . . . Shale going bust . . . LAUGHABLE
  • 2 days 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 1 day Aramco Raises $25.6B in World's Biggest IPO
  • 23 hours My interview on PDVSA Petrocaribe and corruption
  • 1 day Winter Storms Hitting Continental US

Breaking News:

Surprise Crude Build Threatens Oil Rally

Push-Back from Investors Improves Libra Prospects

Bottom line: In its final rules for the Libra auction scheduled for 21 October, the government of Brazil loosened the mandate to permit the winning bidder to retain 50% of oil produced (after recouping costs), up from 30% as contemplated in previous rules.


Analysis: Just 11 firms registered to bid on the ultra-deep pre-salt Libra reserves on 21 October, and there was a sense that Brazil may have been asking too much for what remains a complicated and expensive venture. Someone in Brazil’s National Petroleum Agency was listening--an excellent sign that as a governing partner Brazil is flexible and cognizant of market forces.


Recommendation: The high signing bonus, roughly $6.8 billion, and limited information about the formation (there is just a single operational well there) mean the proposition is still risky. Still, there are few opportunities of that size and potential quality available today; Brazil may not be Texas, but it’s a safe and politically stable place atop a 10 billion barrel oil field.


There’s another angle here worth watching closely: tanker trading, which will benefit from an increase in oil investment in Brazil. According to Lloyd’s List Intelligence, Brazil is opening up its upstream oil sector to investment of around $237 billion over a five-year period to boost production and refining capacity.




Oilprice - The No. 1 Source for Oil & Energy News