VNG Norway discovers 226-m hydrocarbon column near Njord field

VNG Norge AS, operator of production licence 586, has concluded the drilling of exploration well 6406/12-3 S. The test results indicate a discovery far larger than expected.

The well was drilled on the Halten Terrace, about 33 km southwest of the Njord field.

The main objective of the well was to test the hydrocarbon potential in the Pil prospect, up-dip from the offset well 6406/12-1 S. The primary reservoir target was Upper Jurassic sandstones of the Rogn and Melke formations.

The well encountered a 91 m gas column and a 135 m oil column in Upper Jurassic sandstones. Preliminary analyses based on extensive coring, wireline logs and pressure data show that the well has encountered sandstones with very good reservoir properties.

An extensive data acquisition program was carried out in the well, including a successful production test. The production rate was 1,067 Sm3 oil per flow day through a 56/64-in. nozzle. The test showed good flow properties and the gas/oil ratio was 152 Sm3/Sm3. Preliminary estimates place the size of the discovery at between 8 and 27 million Sm³ recoverable oil equivalents with a considerable additional upside volume within the Pil closure not proven by the well.

Production licence 586 was awarded on 4 February 2011 (APA 2010) and this was the first well to be drilled in the licence. 6406/12-3 S was drilled to a vertical depth of 3,738 ms below sea level, and was terminated in the Upper Jurassic Melke formation. The water depth is 324 meters. The well will now be permanently plugged and abandoned.

Well 6406/12-3 S was drilled by the Transocean Arctic drilling facility, which will now first drill a a down dip sidetrack to prove up the lateral extent of the Pil reservoir and the upside case.

This will be followed by a further sidetrack to assess the potential of the neighbouring Bue target.

VNG Norge is the operator in PL586 with a 30% share. Partners are Spike Exploration (30 %), Faroe Petroleum Norge (25 %) and Rocksource Exploration Norway (15 %).

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Two dead, nine injured after oilfield explosion near Orla, Texas

ORLA, Texas (Carlsbad Current-Argus) -- An Artesia man is among the victims of Wednesday morning' s fatal oilfield accident near Orla, Texas. The man, who law enforcement officials haven' t yet publicly identified, is around 46 years old. The other victim is an El Paso man who was born in 1973, according to the Loving County Sheriff' s Department.

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Oil proposal to give Pemex 20% ownership of cross-border fields

MEXICO CITY (Bloomberg) -- Mexican President Enrique Pena Nieto is proposing legislation that will ensure Petroleos Mexicanos owns at least 20% of oil and gas fields that span the country’s borders.

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Pemex reports sixth straight quarterly loss as production drops

MEXICO CITY (Bloomberg) -- Pemex posted a sixth consecutive quarterly loss as production at the country’s state oil monopoly fell to an almost 19-year low. The first-quarter net loss of 35.9 bn pesos ($2.74 bn) was eight times larger than its 4.39 bn-peso loss a year earlier, the Mexico City-based company said in a statement.

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Shell profit beats analyst estimates on higher gas earnings

THE HAGUE, Netherlands (Bloomberg) -- Royal Dutch Shell Plc reported results that beat analyst forecasts on higher natural gas earnings. The shares rose the most in two-and-a-half years in London trading. First-quarter profit excluding one-time items and inventory changes fell 3% to $7.3 bn from a year earlier, The Hague-based Shell said in a statement. That beat the $5 bn average estimate of 12 analysts surveyed by Bloomberg.

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Qatar’s Al Mirqab makes $1.55 bn cash offer for Heritage Oil

CALGARY, Canada (Bloomberg) -- Al Mirqab Capital SPC, a company controlled by Qatar’s royal family, made a cash offer valuing Heritage Oil Plc at 924 million pounds ($1.55 bn).

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Natural gas futures drop as milder U.S. weather cuts fuel demand

Natural gas fell for a second day in New York on speculation that stockpiling may accelerate as milder weather reduces fuel use.

Gas dropped 1.3% as MDA Weather Services predicted seasonal or higher temperatures for most of the lower 48 states from April 19 through April 28. Prices jumped to a one-month high previous week after a government report showed that U.S. inventories rose by less than half the normal rate. Frigid weather this year sent supplies to an 11-year low in March.

“Most thermostats have been turned off or down and natural gas usage is starting to fall off in terms of heating,” said Ellen Stamm, global natural gas analyst at Schneider Electric in Louisville, Kentucky. “This week people are anticipating a larger injection. That is lending downside potential.”

Natural gas for May delivery fell 6 cents to $4.56 per MMBtu on the New York Mercantile Exchange, the lowest settlement since April 8. Volume for all futures traded was 49% below the 100-day average. Gas has gained 7.8% this year.

Unusually cold air from the Great Plains through the East Coast over the next five days will subsequently ease for the rest of the month, said MDA in Gaithersburg, Maryland.

The high in Manhattan on April 16 will drop to 51 degrees Fahrenheit, 11 below normal, before climbing a week later to 68 degrees, 4 above average, according to AccuWeather in State College, Pennsylvania.

About 49% of U.S. households use gas for heating, while power plants account for 31% of gas demand, according to the U.S. Energy Information Administration, the Energy Department’s statistical arm. Gas consumption slumps after the heating season ends and before hotter weather drives air-conditioning needs.

Inventories rose by 4 Bcf in the week ended April 4 to 826 bn, below the five-year average gain of 9 bn for the period, EIA data show. Stockpiles were at an 11-year low in the previous seven days.

Tapering heating demand means stockpile gains probably accelerated to 20 Bcf last week, Stamm said. Tim Evans, an energy analyst at Citi Futures in New York, estimated an increase gain of 36 bn, according to an April 11 note to clients. The five-year average increase for period is 37 bn.

The EIA’s next weekly stockpile report is scheduled for release on April 17.

Record gas production will help boost stockpiles to 3.422 Tcf by the end of October, which would be the lowest level before the start of the peak heating demand season since 2008, according to the EIA’s April 8 Short-Term Energy Outlook. The increase means a record 2.6 Tcf of gas will flow into storage, toppling the 2001 injection rate of 2.402 tn.

Under normal summer weather, increased shipments from the Marcellus shale deposit in the Northeast “should be sufficient” to rebuild supplies for next winter without significant new gas drilling, Jeffrey Currie, an analyst with Goldman Sachs Group, said in a note to clients dated 13 April, 2014. The bank’s three-month forecast for gas prices is $4.50 per MMBtu.

The current “uninspiring price environment” at a time when the gas industry is focused on being financially conservative has kept even more pure gas plays on the sidelines, Currie said. “As a result, a hot summer would likely trigger a strong increase in U.S. natural gas prices.” It would take a move up to $5.75 to $6.50 in gas prices to draw rigs away from oil drilling in the current crude environment of $100 a bbl, he said.

Output from the Marcellus shale will average 14.773 Bcf a day in May, up from 14.52 bn in April, the EIA said in its monthly Drilling Productivity Report.

The government estimates that total U.S. marketed gas production will expand for the ninth straight year, rising to a record 72.29 Bcf a day.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Suncor uses rail, new pipelines to reach record profit

CALGARY, Canada (Bloomberg) -- It’s a long way to send oil from Canada’s landlocked province of Alberta to refineries on the coasts. For Suncor Energy Inc., that can have its advantages: record profit. Canada’s largest oil producer by market value moved more crude by rail and on new pipelines like TransCanada Corp.’s Gulf Coast system to earn higher prices and reduce its refining feedstock costs in the first quarter.

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Life Cycle Engineering to offer execs real-time asset management visibility

CHARLESTON, South Carolina – Life Cycle Engineering (LCE) is to offer oil and gas industry executives the ability to monitor their assets in real time.

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Sinopec to buy 15% stake in Petronas’ Canadian LNG facility

KUALA LUMPUR, Malaysia -- Petronas and its subsidiaries Progress Energy Canada Ltd and Pacific NorthWest LNG Ltd have signed transaction agreements with China Petrochemical Corporation (Sinopec) where Sinopec, through its affiliates, will acquire a 15% interest in Progress Energy’s LNG-destined gas reserves in northeast British Columbia and in Pacific NorthWest’s proposed LNG export facility on Canada’s West Coast.

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Statoil jumps after profit beats estimates on U.S. gas price

OSLO, Norway (Bloomberg) -- Statoil ASA climbed in Oslo after first-quarter profit beat estimates, helped by higher natural gas prices in the U.S., where record-low temperatures raised demand in markets such as New York, and lower taxes.

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Cheniere CEO compensation for 2013 doubles to $142 million

Cheniere CEO compensation for 2013 doubles to $142 million ZAIN SHAUK HOUSTON, Texas (Bloomberg) Cheniere Energy, that’s never posted an annual profit, more than doubled the compensation of its CEO to $141.9 mn previous year. CEO Charif Souki’s 2013 compensation

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Bakken field produces first billion barrels of oil

Bakken field produces first billion barrels of oil OKLAHOMA CITY Continental Resources has announced that its Bakken field of North Dakota and Montana recently reached the production milestone of 1 Bbbl of llight, sweet crude oil produced. According to data

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South Sudan's Unity State oil production to restart by July

South Sudan plans to resume crude output in Unity state by July after conflict in the world’s newest nation caused the northern region to freeze production.

Oil fields in Unity will gradually raise output toward the 50,000 bpd they produced before the December shutdown, Petroleum Ministry spokesman Nicodemus Ajak Bior said in an interview in the capital, Juba. A new refinery built by Russian and South Sudanese companies near the state capital, Bentiu, will begin producing 3,000 bpd of diesel in July, he said.

“In the beginning there will be a challenge to bring back production to the pre-shutdown levels,” Bior said. “People are working day and night to see to it that production has restarted.”

South Sudan’s oil output has fallen by about a third since fighting erupted on Dec. 15 between factions loyal to President Salva Kiir and his former deputy Riek Machar. Violence has left thousands of people dead and forced more than a million to flee their homes, according to the United Nations.

The country is currently producing about 160,000 bpd from Upper Nile, the only state still pumping crude, Bior said. Machar has vowed to seize key oil installations in a bid to starve the military of revenue.

Government forces retook Bentiu from rebels on Jan. 26 and the Juba-based Sudd Petroleum Operating Co. has assessed damage to the facilities, Bior said. China National Petroleum Corp., India’s Oil & Natural Gas Corp. and Petroliam Nasional Bhd., the main producers of South Sudan’s oil, evacuated employees from the country due to the fighting.

Construction is finished on Bentiu’s refinery, a JV by Russia’s Safinat and the state-owned Nile Petroleum Corp., Bior said. A later expansion will raise output to 5,000 bpd, he said, without specifying a timescale.

“The refinery is ready, however commissioning will commence once the oil field in Unity state resumes production,” Bior said.

Construction of a 10,000 bpd refinery in Melut county, Upper Nile state, has halted due to the conflict, Bior said. Texas-based Ventech Engineers International LLC was building the facility which is set to produce diesel, kerosene and fuel oil, he said.

South Sudan, which gained independence from Sudan in July 2011, has sub-Saharan Africa’s third-biggest oil reserves, according to BP Plc data.

The country’s low-sulfur crude is prized by Japanese buyers as a cleaner-burning fuel for power generation. The country has the capacity to produce as much as 350,000 to 400,000 bpd, Foreign Minister Barnaba Marial Benjamin said on Feb. 11.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

NOV slumps on lower offshore rig sales forecast

HOUSTON (Bloomberg) -- National Oilwell Varco Inc. fell the most in more than two years after forecasting a slowdown in orders for offshore rig equipment. The largest U.S. maker of oilfield equipment declined 6.7% to $77.88 at 12:14 p.m. in New York after earlier losing as much as 7.3%, the biggest intraday drop since November 2011.

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Exxon affiliate names new U.S.-flagged oil tanker

PHILADELPHIA, Pennsylvania -- Exxon Mobil Corporation’s marine affiliate, SeaRiver Maritime, Inc., has named the Liberty Bay, the first of its two new U.S.-flag crude oil tankers, at a ceremony at Aker Philadelphia Shipyard.

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Rosneft retreats to 10-month low as U.S. sanctions CEO

MOSCOW (Bloomberg) -- OAO Rosneft fell to a 10-month low in Moscow and the London-traded stock retreated after the U.S. included CEO Igor Sechin in a sanctions list.

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WTI rises from 3-week low on Ukraine risk; Brent steady

NEW YORK (Bloomberg) -- West Texas Intermediate crude rebounded from the lowest close in almost three weeks as the U.S. said it will toughen sanctions on Russia, the biggest energy exporter, over the Ukraine crisis. Brent was steady as Libya lifted force majeure at one of its ports.

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Aker Solutions to supply subsea manifolds for Petrobras pre-salt fields

Aker Solutions won a contract worth more than $300 mn from Petrobras to supply eight manifolds that alternately inject water and gas to increase oil recovery from Brazil' s deepwater offshore fields.

The subsea manifolds, designed for water depths of 2,500 m, will be installed by Petrobras and its partners in deepwater pre-salt field developments.The units have a design life of 30 years and the first is scheduled to be delivered in 2016.
 
"We are pleased to work with Petrobras on its important and technically challenging pre-salt developments," said Oyvind Eriksen, executive chairman of Aker Solutions. "Brazil is a key market for our subsea technology and one of the fastest growing areas in the oil and gas industry."

The order will be executed by Aker Solutions' Brazilian subsea division. The unit last year began work to double its subsea equipment manufacturing capacity at a plant in Curitiba by 2015. About 70% of the contract with Petrobras will be procured and manufactured in Brazil.
 
"Aker Solutions is committed to delivering high local content in Brazil, where demand for complex subsea production equipment is growing," said Luis Araujo, president for Aker Solutions in Brazil.
 
The manifolds will play a key part in the crucial injection process that helps improve recovery from the fields.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Mexico parties in final phase of oil reform negotiations

MEXICO CITY (Bloomberg) -- Mexico’s two biggest parties reached agreement on key points of legislation needed to implement an energy overhaul that will end a more than seven- decade state oil monopoly, top party negotiators said.

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Gas rigs rise for second week to rebound from 21-year low

Gas rigs rise for second week to rebound from 21 year low BY LYNN DOAN HOUSTON (Bloomberg) Rigs targeting natural gas in the U.S. rose for the second straight week, rebounding from their lowest level in 21 years, as an

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Sterling Seismic Services appoints V.P., Houston Center Manager

HOUSTON -- Sterling Seismic Services Ltd. has announced the appointment of Chuck Diggins as V.P. and Houston Center Manager.

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Weatherford rises most in 3 years as $1 bn asset sales eyed

ZUG, Switzerland (Bloomberg) -- Weatherford International Ltd. climbed the most in three years after reporting better-than- expected earnings and forecasting as much as $1 bn in divestiture proceeds by year-end amid a planned corporate turnaround.

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Vallourec Star unveils $11.8 m upgrade of Oklahoma plant

MUSKOGEE, Oklahoma -- Vallourec Star has dedicated its new Bronx Straightener used in the finishing process to hot-straighten pipes for oil and gas drilling and exploration applications.

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WTI set for first weekly loss in three as Brent gap widens

WASHINGTON, D.C. (Bloomberg) -- West Texas Intermediate crude headed for the first weekly loss in three, widening the discount to Brent, as U.S. stockpiles expanded and demand fell. Futures dropped as much as 1.4% today. Stockpiles increased in 13 of the past 14 weeks to reach the highest level since government weekly data started in 1982, an Energy Information Administration report shows. Fuel demand dropped to a 10-month low. Brent traded near $110 on concern the Ukraine crisis may disrupt global supplies.

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Maryland voters support Cove Point LNG exports, poll finds

ANNAPOLIS, Maryland -- Strong bipartisan majorities of registered Maryland voters support increased investment in energy infrastructure, including the proposed LNG export terminal at Cove Point, according to a new poll the Maryland Petroleum Council (MPC) is releasing as part of the American Petroleum Institute’s (API) campaign highlighting the voices of Americans.

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Canadian Oil Sands reports syncrude coker outage, revises production range

CALGARY, Alberta -- Canadian Oil Sands Limited has announced that Syncrude has begun unplanned maintenance work on Coker 8-1. It is expected that this maintenance work will overlap the turnaround of Coker 8-2 scheduled for the second quarter.

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Baker Hughes plans to disclose all fracturing chemicals

Baker Hughes plans to disclose all fracking chemicals DAVID WETHE HOUSTON, Texas Baker Hughes plans to disclose all of the chemicals used in the rock cracking technique used to unlock oil and natural gas from underground. Baker Hughes hasn’t disclosed

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Diamond Offshore jumps as profit beats estimates

HOUSTON (Bloomberg) -- Diamond Offshore Drilling Inc., the worst-performing oil services stock in the past six months, jumped the most in more than five years after reporting earnings that beat analysts’ estimates and buying back shares.

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Irving Oil completes conversion of crude oil railcar fleet

SAINT JOHN, Canada --Irving Oil has completed the conversion of its proprietary fleet of crude oil railcars to the Association of American Railroads' (AAR) recommended specifications for DOT-111 railcars constructed after October 1, 2011.

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Texas family wins $3-million verdict against fracturing operator

WISE COUNTY, Texas -- A Dallas jury awarded a family $3 million for the illnesses they suffered from exposure to contaminated ground water, solid toxic waste and airborne chemicals generated by natural gas hydraulic fracturing operations surrounding their 40-acre ranch.

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CNOOC E.V.P. assumes role of Nexen CEO

CNOOC EVP assumes role of Nexen CEO CALGARY, Alberta Following a 20 year career with Nexen, highlighted by overseeing the acquisition of the company by CNOOC, Kevin Reinhart is departing from his role as CEO of Nexen Energy, a wholly

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Shale boom sends U.S. crude supplies to highest since 1930s

Shale boom sends U.S. crude supplies to highest since 1930s MARK SHENK (Bloomberg) The U.S. is stockpiling the most crude since the Great Depression, thanks to the shale boom that has boosted production to the most in 26 years. Inventories

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University of Michigan team wins BP Ultimate Field Trip 2014 U.S. competition

HOUSTON -- BP has announced that Team RECon of the University of Michigan has won the firm’s Ultimate Field Trip (UFT) 2014 U.S. competition, designed to identify top students in the fields of science, technology, engineering and mathematics (STEM).

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Canada to require stronger tank cars to move crude by rail

OTTAWA, Canada (Bloomberg) -- Canada will require railways shipping crude oil to use stronger tank cars and reduce the speed of trains carrying dangerous goods. The Canadian government will ban the “least crash-resistant” of tanker cars known as DOT-111s from carrying dangerous goods, Transport Minister Lisa Raitt said.

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Gulfport Energy names new CEO, COO

OKLAHOMA CITY, Oklahoma -- Gulfport Energy Corporation has announced that its Board of Directors has concluded its search for a CEO. Michael G. Moore has been promoted to CEO and has joined the company' s Board of Directors and J. Ross Kirtley has been promoted to COO. In addition, Michael S. Reddin has been appointed to the company' s Board of Directors.

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Jee awarded major subsea contract

TONBRIDGE, United Kingdom -- Jee Ltd has been awarded a contract in support of a $14,000 million seven-year development. The contract, with a major offshore pipelay and subsea construction company, is as a result of recent oil field operations in Canada.

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Kemira appoints Schlumberger exec as it seeks U.S. shale work

HELSINKI, Finland (Bloomberg) -- Kemira Oyj, Europe’s largest supplier of water-treatment additives, appointed Tarjei Johansen from Schlumberger Ltd. to lead its oil and mining unit as the Finnish company seeks to boost work on U.S. shale projects.

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BP to sell four Alaska North Slope interests to Hilcorp

LONDON -- BP has agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp. The sale agreement includes all of BP’s interests in the Endicott and Northstar oilfields and a 50% interest in each of the Liberty and the Milne Point fields. The sale also includes BP’s interests in the oil and gas pipelines associated with these fields.

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Halliburton to build drilling, testing and training facility in Texas

Halliburton to build drilling, testing and training facility in Texas CAMERON, Texas Halliburton reported plans for a drilling, testing and training facility near Cameron that will include testing and training wells, a workshop for tool preparation and inspection, offices, classrooms,

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NEOS GeoSolutions appoints Global Sales VP

NEOS GeoSolutions appoints Global Sales VP HOUSTON, Texas NEOS GeoSolutions reported that it has appointed Larry Scott as VP of Global Sales. Larry will report to Chris Friedemann, EVP, Sales & Marketing and Chief Commercial Officer. Mr. Friedemann commented, “We

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WTI falls most in three months on supplies; Brent premium grows

NEW YORK (Bloomberg) -- West Texas Intermediate oil dropped the most in more than three months, widening the discount to Brent, on projections that a government report will show U.S. crude stockpiles climbed last week. WTI fell as much as 2.4%.

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Mexico parties in final phase of oil reform negotiations

MEXICO CITY (Bloomberg) -- Mexico’s two biggest parties reached agreement on key points of legislation needed to implement an energy overhaul that will end a more than seven- decade state oil monopoly, top party negotiators said.

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First tanker starts loading crude from East Libya

An oil tanker started loading crude at Libya’s eastern port of Hariga as the region exports oil for the first time since July after civil unrest decimated the North African country’s production and shipments.

The Aegean Dignity started to load Hariga terminal at 11 a.m. local time, Mohamed Elharari, spokesman for state-run National Oil Corp., said by phone today. The operation will take about 24 hours. The shipment is for Italy, according to a statement from NOC subsidiary Arabian Gulf Oil.

“This is the first loading in around nine months from any of the rebel-controlled ports in the east and the first concrete positive from the deals announced just over a week ago,” Richard Mallinson, Energy Aspects analyst in London, said by phone yesterday. “But it is worth remembering that the market is only taking this as a very limited positive development” because other terminals remain shut.

Libya, the holder of Africa’s largest crude reserves, has dropped to the smallest producer among the Organization of Petroleum Exporting Countries as unrest deepened since the ouster of Muammar Qaddafi three years ago. The nation, which pumped close to 1.6 MMbpd until the start of 2011, is now producing 200,000 bpd, Elharari said April 14.

Rebels seeking a share in oil revenue for their region took control of four of Libya’s nine oil ports in July. The central government reached an agreement with some rebels earlier this month to open Hariga and Zueitina oil terminals, which have combined capacity of 180,000 bpd.

Es Sider, Libya’s largest terminal, and Ras Lanuf are still shut. State-run National Oil is in the process of lifting force majeure on Zueitina, Oil Ministry Measurement Director Ibrahim Al Awami said April 10, referring to the legal step that protects companies from liability when operations are disrupted for reasons beyond their control.

Vienna-based oil company OMV AG booked the Aegean Dignity tanker to load a cargo of Sarir crude from Hariga between April 15 and 16, two traders said on April 11, asking not to be identified because the matter isn’t public.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Sterling Seismic Services appoints V.P., Houston Center Manager

HOUSTON -- Sterling Seismic Services Ltd. has announced the appointment of Chuck Diggins as V.P. and Houston Center Manager.

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Canadian Oil Sands reports syncrude coker outage, revises production range

CALGARY, Alberta -- Canadian Oil Sands Limited has announced that Syncrude has begun unplanned maintenance work on Coker 8-1. It is expected that this maintenance work will overlap the turnaround of Coker 8-2 scheduled for the second quarter.

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Aker Solutions wins subsea contract for Total's Kaombo project

Aker Solutions won a contract worth $234 bn from Total to provide a subsea production system for the Kaombo Block 32 development in Angola.

Aker Solutions will deliver 20 subsea manifolds and 65 vertical subsea wellsets. The order also includes associated controls as well as work-over and tie-in systems. The first deliveries are scheduled for the second quarter of 2015.

"This is a landmark contract and further strengthens an important relationship with a key partner," said Oyvind Eriksen, Executive Chairman of Aker Solutions."It' s a significant commercial achievement for our subsea business as well as an important strategic development in our expansion in Angola and the broader region."

Kaombo, one of the world' s largest subsea developments, is located in block 32 about 150 km off the coast of Angola.

Aker Solutions is committed to developing local content and project execution capabilities in Angola, where it employs about 130 people. The company has set up a JV with Prodiaman Oil Services, an Angolan company that will execute local content activities related to this and other future Aker Solutions subsea projects in Angola.

"I am delighted to be part of this significant project with Aker Solutions for Total," said Prodiaman' s president Pedro Godinho."I look forward to seeing that this project makes significant contributions to the education system through knowledge transfer and job creation in a high-tech industry, all for the benefit of Angola."

Aker Solutions has been in Angola since 1999.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Gas rigs rise for second week to rebound from 21-year low

Gas rigs rise for second week to rebound from 21 year low BY LYNN DOAN HOUSTON (Bloomberg) Rigs targeting natural gas in the U.S. rose for the second straight week, rebounding from their lowest level in 21 years, as an

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Weatherford rises most in 3 years as $1 bn asset sales eyed

ZUG, Switzerland (Bloomberg) -- Weatherford International Ltd. climbed the most in three years after reporting better-than- expected earnings and forecasting as much as $1 bn in divestiture proceeds by year-end amid a planned corporate turnaround.

...»

Vallourec Star unveils $11.8 m upgrade of Oklahoma plant

MUSKOGEE, Oklahoma -- Vallourec Star has dedicated its new Bronx Straightener used in the finishing process to hot-straighten pipes for oil and gas drilling and exploration applications.

...»

WTI set for first weekly loss in three as Brent gap widens

WASHINGTON, D.C. (Bloomberg) -- West Texas Intermediate crude headed for the first weekly loss in three, widening the discount to Brent, as U.S. stockpiles expanded and demand fell. Futures dropped as much as 1.4% today. Stockpiles increased in 13 of the past 14 weeks to reach the highest level since government weekly data started in 1982, an Energy Information Administration report shows. Fuel demand dropped to a 10-month low. Brent traded near $110 on concern the Ukraine crisis may disrupt global supplies.

...»

Maryland voters support Cove Point LNG exports, poll finds

ANNAPOLIS, Maryland -- Strong bipartisan majorities of registered Maryland voters support increased investment in energy infrastructure, including the proposed LNG export terminal at Cove Point, according to a new poll the Maryland Petroleum Council (MPC) is releasing as part of the American Petroleum Institute’s (API) campaign highlighting the voices of Americans.

...»

Baker Hughes plans to disclose all fracking chemicals

Baker Hughes plans to disclose all fracking chemicals DAVID WETHE HOUSTON, Texas Baker Hughes plans to disclose all of the chemicals used in the rock cracking technique used to unlock oil and natural gas from underground. Baker Hughes hasn’t disclosed

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OMV to invest $550 million in Lower Austria

OMV is consolidating its commitment to oil and gas production in Lower Austria. The Weinviertel region is the third most important production site in the company’s global portfolio after the exploration and production areas in Romania and Norway.

In line with the corporate strategy, OMV has invested heavily in exploration and production in Lower Austria. Investment in Lower Austria is set to rise to around $550 million (EUR 400 million) in the next two years.
Until 2016 around 80% of OMV’s total investment of around EUR 3.9 bn worldwide will go on exploration and production.

OMV CEO Gerhard Roiss: "Anyone striving for international growth needs to have a strong foundation. For us this foundation is Lower Austria. This investment in exploration and production underlines the importance of this region in the OMV portfolio."

"We took the decision on these investments in Lower Austria last year. Resources are needed in order to counter the natural depletion and stabilize production in what are mostly mature fields. Without these investments it wouldn’t be possible for us to maintain production levels", said OMV CEO Gerhard Roiss.

Last year the region produced 35,000 boed. Despite the natural depletion of resources, this level should remain stable in 2014 as the investment is set to balance out the natural depletion of 10% per year.

Drilling additional wells in Lower Austria is the key to securing and increasing production. Up to 24 drillings will be realized in Weinviertel in 2014, with 20 more planned for 2015 and 2016, respectively. 14 projects involve exploration wells with additional production potential.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Diamond Offshore jumps as profit beats estimates

HOUSTON (Bloomberg) -- Diamond Offshore Drilling Inc., the worst-performing oil services stock in the past six months, jumped the most in more than five years after reporting earnings that beat analysts’ estimates and buying back shares.

...»

Irving Oil completes conversion of crude oil railcar fleet

SAINT JOHN, Canada --Irving Oil has completed the conversion of its proprietary fleet of crude oil railcars to the Association of American Railroads' (AAR) recommended specifications for DOT-111 railcars constructed after October 1, 2011.

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Texas family wins $3-million verdict against fracturing operator

WISE COUNTY, Texas -- A Dallas jury awarded a family $3 million for the illnesses they suffered from exposure to contaminated ground water, solid toxic waste and airborne chemicals generated by natural gas hydraulic fracturing operations surrounding their 40-acre ranch.

...»

CNOOC EVP assumes role of Nexen CEO

CNOOC EVP assumes role of Nexen CEO CALGARY, Alberta Following a 20 year career with Nexen, highlighted by overseeing the acquisition of the company by CNOOC, Kevin Reinhart is departing from his role as CEO of Nexen Energy, a wholly

...»

Shale boom sends U.S. crude supplies to highest since 1930s

Shale boom sends U.S. crude supplies to highest since 1930s MARK SHENK (Bloomberg) The U.S. is stockpiling the most crude since the Great Depression, thanks to the shale boom that has boosted production to the most in 26 years. Inventories

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Antero Resources tumbles after slashing Utica gas estimate

Antero Resources Corp. fell the most ever after cutting its production estimate for a section of its Utica shale holdings.

Antero dropped 3.8% to $60.81 at 11:25 a.m. in New York. The shares earlier tumbled as much as 11%, the most intraday since Oct. 10. Prior to today, shares gained 44% since the Denver based-company’s public offering on Oct. 9.

Antero reduced its estimate for how much gas one section of its Utica holdings will yield by 34%, according to a statement today. Another section’s production forecast was cut by 31%. The company’s oil and gas holdings are located in West Virginia, Ohio and Pennsylvania.

Antero has 12 buy recommendations and five holds from analysts, according to data compiled by Bloomberg. The company spent $2.1 bn to find and develop new fields in 2013 and has untapped reserves large enough to sustain output for four decades.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

University of Michigan team wins BP Ultimate Field Trip 2014 U.S. competition

HOUSTON -- BP has announced that Team RECon of the University of Michigan has won the firm’s Ultimate Field Trip (UFT) 2014 U.S. competition, designed to identify top students in the fields of science, technology, engineering and mathematics (STEM).

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Canada to require stronger tank cars to move crude by rail

OTTAWA, Canada (Bloomberg) -- Canada will require railways shipping crude oil to use stronger tank cars and reduce the speed of trains carrying dangerous goods. The Canadian government will ban the “least crash-resistant” of tanker cars known as DOT-111s from carrying dangerous goods, Transport Minister Lisa Raitt said.

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Gulfport Energy names new CEO, COO

OKLAHOMA CITY, Oklahoma -- Gulfport Energy Corporation has announced that its Board of Directors has concluded its search for a CEO. Michael G. Moore has been promoted to CEO and has joined the company' s Board of Directors and J. Ross Kirtley has been promoted to COO. In addition, Michael S. Reddin has been appointed to the company' s Board of Directors.

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Jee awarded major subsea contract

TONBRIDGE, United Kingdom -- Jee Ltd has been awarded a contract in support of a $14,000 million seven-year development. The contract, with a major offshore pipelay and subsea construction company, is as a result of recent oil field operations in Canada.

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Kemira appoints Schlumberger exec as it seeks U.S. shale work

HELSINKI, Finland (Bloomberg) -- Kemira Oyj, Europe’s largest supplier of water-treatment additives, appointed Tarjei Johansen from Schlumberger Ltd. to lead its oil and mining unit as the Finnish company seeks to boost work on U.S. shale projects.

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BP to sell four Alaska North Slope interests to Hilcorp

LONDON -- BP has agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp. The sale agreement includes all of BP’s interests in the Endicott and Northstar oilfields and a 50% interest in each of the Liberty and the Milne Point fields. The sale also includes BP’s interests in the oil and gas pipelines associated with these fields.

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Halliburton to build drilling, testing and training facility in Texas

Halliburton to build drilling, testing and training facility in Texas CAMERON, Texas Halliburton reported plans for a drilling, testing and training facility near Cameron that will include testing and training wells, a workshop for tool preparation and inspection, offices, classrooms,

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NEOS GeoSolutions appoints Global Sales VP

NEOS GeoSolutions appoints Global Sales VP HOUSTON, Texas NEOS GeoSolutions reported that it has appointed Larry Scott as VP of Global Sales. Larry will report to Chris Friedemann, EVP, Sales & Marketing and Chief Commercial Officer. Mr. Friedemann commented, “We

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OPEC to make room for extra oil from Iran, Iraq, Libya

OPEC, which supplies 40% of the world’s oil, will accommodate additional output from members Iraq, Iran and Libya, Secretary-General Abdalla El-Badri said, without explaining how it will do so under the group’s ceiling.

The Organization of Petroleum Exporting Countries will wait until 2015 to discuss output targets with Iraq, which currently operates outside the production-quota system for each of the group’s other 11 member countries, El-Badri told reporters today in Doha, Qatar. OPEC foresees gradual increases from Iraq and Iran, while Libya is capable of boosting output by as much as 1 MMbbl within a month, he said.

“There is no problem for OPEC to absorb any production increment from Iraq and Iran in 2014,” El-Badri said. “When Libya output comes back, we will accommodate it because its production is in our numbers.”

OPEC is set to boost output as its second-biggest producer Iraq pumps at a 35-year high and Libya’s government makes progress in talks with rebels who control fields and export terminals in the country’s oil-rich east. Sanctions on Iran over its nuclear program have constrained the country’s production and sales of crude. OPEC plans to meet on June 11 in Vienna to review its output target, now at 30 MMbpd.

Global demand will increase by 1.1 MMbpd in 2014, and the group will produce up to 30 MMbpd for the rest of the year, El-Badri said. “Of course, ministers can change that when they meet,” he said.

OPEC pumped 30.3 MMbpd in March, data compiled by Bloomberg show.

The group has yet to determine how to make room for potential output increases from Iraq, Iran and Libya, El-Badri said. “We will discuss that when they come to the point to discuss their increase,” he said.

Iraq, with the world’s fifth-largest oil reserves, is rebuilding its energy industry after decades of war and economic sanctions. Helped by investors including Royal Dutch Shell Plc and Exxon Mobil Corp., it leap-frogged Iran in 2012 to rank second in OPEC, after Saudi Arabia. Iraq pumped 3.4 MMbpd in March, according to data compiled by Bloomberg, and targets 9 MMbpd.

Iran raised production to 2.9 MMbpd last month, an increase of 65,000 bbl from February, the data show. Libya, which produced 250,000 bpd in March, holds Africa’s biggest crude reserves. Libya’s government reached an agreement with eastern rebels on April 6 to reopen two oil ports.

OPEC’s spare production capacity is at an adequate level this year, and producers and consumers are happy with current oil prices, El-Badri said. The price for OPEC’s basket of crudes rose $1, or 1%, yesterday to $103.16 a barrel, the group’s secretariat reported today.

The group’s 12 members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

WTI falls most in three months on supplies; Brent premium grows

NEW YORK (Bloomberg) -- West Texas Intermediate oil dropped the most in more than three months, widening the discount to Brent, on projections that a government report will show U.S. crude stockpiles climbed last week. WTI fell as much as 2.4%.

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Aker Solutions, Baker Hughes form subsea production alliance

OSLO and HOUSTON -- Aker Solutions ASA and Baker Hughes Incorporated have agreed to form an alliance to develop technology for production solutions that will boost output, increase recovery rates and reduce costs for subsea fields.

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Nebraska says Keystone route ruling should be overturned

Nebraska says Keystone route ruling should be overturned ANDREW HARRIS LINCOLN, Nebraska (Bloomberg) A court challenge holding up TransCanada’s Keystone XL pipeline should be dismissed, Nebraska’s governor said, urging his state’s high court to allow the project to move forward.

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Aker Solutions, Baker Hughes form subsea production alliance

OSLO and HOUSTON -- Aker Solutions ASA and Baker Hughes Incorporated have agreed to form an alliance to develop technology for production solutions that will boost output, increase recovery rates and reduce costs for subsea fields.

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Nebraska says Keystone route ruling should be overturned

Nebraska says Keystone route ruling should be overturned ANDREW HARRIS LINCOLN, Nebraska (Bloomberg) A court challenge holding up TransCanada’s Keystone XL pipeline should be dismissed, Nebraska’s governor said, urging his state’s high court to allow the project to move forward.

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Age of gas seen as sideshow as producers look to oil

The “golden age of gas” that the International Energy Agency foresees as a result of the U.S. energy boom is hardly the future being embraced by industry executives.

At least based on comments from company officials presenting at the Independent Petroleum Association of America’s conference in New York yesterday. For them, oil is still the prize. Gas is almost an afterthought.

Abraxas Petroleum Corp. CEO Bob Watson boasted about how much of his company’s proved reserves are oil and liquids rather than gas (74%). PDC Energy Inc. said it’s sitting on huge leases in gas fields that aren’t worth drilling. Whiting Petroleum Corp. Chairman and CEO James Volker explained why: oil sells for three times as much as the equivalent amount of natural gas.

That’s no knock against the producers for chasing oil - the commodity that makes the best return for their shareholders. Still, at a time when President Barack Obama is saying natural gas will be a bridge for the U.S. economy from fossil fuels to clean energy, the industry’s views put some realism into the discussion about what energy resources get unlocked by fracing shale rocks.

U.S. natural gas futures have plunged 72% from their 2005 peak to $4.476 as supply expanded to a record. Even after the coldest winter in decades drained stockpiles, the fuel costs about half as much as in Europe. Crude oil, by contrast, is stuck at around $100 a barrel. Even as the growth of U.S. oil supplies has brought the domestic price below the international benchmark, it’s still 7.6% higher than a year ago.

The U.S. is still very much addicted to oil. Consumption will inch up to 19 MMbbl a day this year, more than Europe and China combined, the IEA estimates. Even as expanding domestic supplies reduce imports, they haven’t curbed reliance on oil outright.

If natural gas is to be a bridge fuel, the transition can’t depend on supply alone.

Now that natural gas is so abundant, it needs more uses. While power plants are switching to gas, the U.S. still gets more electricity from coal.

Billionaire T. Boone Pickens wants trucks and buses to run on natural gas. The chemical industry is investing more than $100 bn in expansion projects spurred by cheap shale gas, according to the American Chemistry Council in Washington. And the Energy Department has approved seven projects to export about 9.3 Bcf a day of natural gas in liquid form.

In the time it takes for those new demand sources to develop, making natural gas more valuable in its own right, its role as a byproduct of oil drilling is contributing to more pollution. In North Dakota, drillers pumping oil in the Bakken shale formation are burning off about $1.4 million worth of natural gas every day.

While politicians and industry may pay lip service to natural gas as the clean fuel of the future, the companies out exploiting America’s oil fields leave no doubt that they’re interested in the same fuel as 100 years ago.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Students aim to beat 3,587 miles per gallon

HOUSTON -- As Shell Eco-marathon Americas 2014 fast approaches, more than 1,000 innovative high school and university students from across the Americas are entrenched in efficiency tests, safety checks and practice runs to ensure their super-mileage vehicles are ready for the competition taking place in Houston April 25-27.

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Halliburton CEO sees recovery in hydraulic fracturing market

HOUSTON (Bloomberg) -- Dave Lesar sees better days ahead for Halliburton Co. in North America’s oversupplied fracing market. The more than two-year glut in pressure-pumping equipment used to shoot water, sand and chemicals underground to release trapped oil and natural gas is easing “much faster” than expected, the CEO said.

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Veolia awarded water treatment contract for Shell’s Carmon Creek heavy oil project

PARIS -- Veolia has been awarded the contract by Shell Canada to design and supply a water treatment facility to recycle the water used for steam generation at Shell’s Carmon Creek heavy oil project in Alberta, Canada.

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Exxon rejected by Supreme Court on $105 million New York award

NEW YORK (Bloomberg) -- The U.S. Supreme Court rejected Exxon Mobil Corp.’s appeal of a $105 million jury verdict it was ordered to pay for contaminating underground water in New York City with a gasoline additive.

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Halliburton expects second-quarter earnings to grow by 25%

HOUSTON (Bloomberg) -- Halliburton Co. expects to boost earnings per share in the second quarter by 25% as the world’s largest hydraulic fracturing service provider overcomes bad weather and lower pricing in North America.

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Fate of Keystone pipeline shifts to Nebraska

LINCOLN, Nebraska (Bloomberg) -- The focus of the Keystone XL debate has shifted from a fierce lobbying war in Washington to Lincoln, Nebraska, where the state Supreme Court has been asked to weigh a legal challenge to the pipeline.

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Employee fatality at Suncor’s oil sands site

FORT MCMURRAY, Alberta -- Suncor Energy has reported an employee fatality at its oil sands site on Sunday, April 20, 2014.

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Vanguard Energy reports sale of Batson Dome Field

Vanguard Energy reports sale of Batson Dome Field HOUSTON, Texas Vanguard Energy reported that it has entered into an agreement with an unrelated third party to sell all of Vanguard' s working interests and related equipment at its only operating field,

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Keystone review delay draws ire of pipeline's advocates

WASHINGTON, D.C. (Bloomberg) -- The Obama administration’s announcement that it was delaying a ruling on the Keystone XL oil pipeline drew an angry reaction from supporters of the $5.4 bn project, including some who said it was designed to push the issue beyond the November election.

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Encana said to seek at least $636 million in Royalty IPO

Encana said to seek at least $636 million in Royalty IPO REBECCA PENTY AND DOUG ALEXANDER CALGARY, Alberta (Bloomberg) Encana’s sale of shares in a royalty unit as early as next month is poised to be the largest initial public

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Gas rigs rebound from 21-year low as prices boost profits

Gas Rigs rebound from 21 year low as prices boost profits LYNN DOAN AND RICHARD STUBBE (Bloomberg) Rigs targeting natural gas in the U.S. rebounded from the lowest level since 1993 as an increase in prices this year lures producers

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NEB approves LNG export license for Triton LNG

NEB approves LNG export license for Triton LNG CALGARY, Alberta The National Energy Board (NEB) approved an application for a 25 year natural gas export licence from Triton LNG Partnership to export LNG. The license is for a maximum term

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Shale pioneer Aubrey McClendon hires Chesapeake for New Frontier

Shale pioneer Aubrey McClendon hires Chesapeake for New Frontier JOE CARROLL OKLAHOMA CITY, Oklahoma (Bloomberg) Aubrey McClendon, the pioneering shale wildcatter who helped usher in the U.S. energy renaissance, has hired the company that fired him to drill wells for

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Chesapeake’s biggest investor grows more bullish on stock

OKLAHOMA CITY, Oklahoma (Bloomberg) -- Southeastern Asset Management Inc., the owner of one of every 10 shares in Chesapeake Energy Corp., is more bullish on the natural gas producer as CEO Doug Lawler trims costs.

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Ex-BP worker sold stock on insider Macondo spill data, U.S. says

WASHINGTON, D.C. (Bloomberg) -- A former official of BP Plc will pay $224,000 to settle U.S. claims that he traded securities based on inside information about the magnitude of the Deepwater Horizon oil spill, the Securities and Exchange Commission said.

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Large majorities support U.S. investments in oil, natural gas

WASHINGTON, D.C. -- Strong bipartisan majorities of registered voters support increased investment in energy infrastructure, according to a new poll unveiled by the American Petroleum Institute (API).

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Gauthiers’ relocates, expands Houma facility

HOUMA, Louisiana — Gauthiers’, a Lafayette-based supplier of oil and gas industry containers and support equipment, has officially opened the doors to its newly relocated and expanded Houma facility.

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Artificial Lift Co. provides Advantage Rigless ESP system for ConocoPhillips

ODESSA, Texas -- Artificial Lift Company’s Advantage Rigless ESP system was successfully pulled and reinstalled at a ConocoPhillips West Texas well and has been in continuous service for more than 180 days.

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Fracing sand spurs silos for rail transport

SOUTHLAKE, Texas (Bloomberg) -- The U.S. shale oil boom is putting millions of tons of sand onto North American railroads, enabling carriers to pack trains full instead of hauling just a handful of cars at a time. With help from Union Pacific Corp. and Warren Buffett’s BNSF Railway Co., the sleepy silica sand industry that once mostly supplied glassmakers now ships more than 20 million tons of the material a year. Buyers including Halliburton Co. and Schlumberger Ltd. use the sand in hydraulic fracturing at oil fields in Texas and North Dakota.

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Keystone opponents winning Hollywood endorsements

WASHINGTON, D.C. (Bloomberg) -- Foes of the Keystone XL oil pipeline appear to be winning the battle for endorsements from Hollywood celebrities and prominent personalities. Actors Mark Ruffalo, Robert Redford, Kyra Sedgwick, Jared Leto, and Julia Louis-Dreyfus have come out against the $5.4 bn project. “Splash” star Daryl Hannah has been arrested at least three times at Keystone protests -- once after chaining herself to the White House fence. This week, former President Jimmy Carter joined nine other Nobel Peace Prize laureates in urging President Barack Obama to reject the project.

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Ex-Cobalt executive may list Aussie shale explorer in U.S.

SYDNEY (Bloomberg) -- Tamboran Resources Ltd., an Australian shale explorer led by a former Cobalt International Energy Inc. executive, is considering going public in the U.S. as early as the second half of this year. Tamboran is studying a reverse merger in the U.S., a deal that involves a private firm purchasing a public company to gain a listing, or an initial public offering in Singapore or Australia, Joel Riddle, CEO of the Sydney-based company, said in a phone interview.

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Schlumberger boosts profit as explorers seek technology edge

HOUSTON (Bloomberg) -- Rising demand for more advanced oilfield technology to tap hard-to-reach crude around the world spurred a record first-quarter profit for Schlumberger Ltd.

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Osage spuds first operated horizontal Woodford well

Osage Exploration & Development spuds first operated horizontal Woodford Well SAN DIEGO, California Osage reported the spudding of the Osage Whitten 1 2WH, the Company' s first operated horizontal Woodford well in Logan County, Oklahoma.The Osage Whitten 1 2WH, located in

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NOIA honors Danos with safety awards

NOIA honors Danos with Safety Awards WASHINGTON The National Ocean Industries Association (NOIA) presented Danos with the 2014 NOIA Safety in Seas (SIS) Culture of Safety Award.Danos won the Culture of Safety Award for the company’s commitment to safety throughout

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USCG overseeing response after massive wave hits Ensco semisubmersible in deepwater Gulf of Mexico

USCG overseeing response after massive wave hits Ensco semisubmersible in deepwater Gulf of Mexico HOUSTON — The U.S. Coast Guard is overseeing response efforts for the Ensco 8506 semisubmersible that began taking on water into a ballast tank after a

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Natural gas continues to shrink America’s carbon footprint, API says

WASHINGTON, D.C. -- The U.S. Environmental Protection Agency’s (EPA) latest report shows that natural gas continues to help shrink America’s carbon footprint, said API spokesman Zachary Cikanek.

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Noble Energy CEO to step down in 2015

HOUSTON -- Noble Energy, Inc. has announced that Charles D. Davidson, chairman and CEO, plans to retire May 1, 2015, and that he will leave the Board of Directors at that time.

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Jimmy Carter announces opposition to Keystone

Jimmy Carter announces opposition to Keystone JIM SNYDER WASHINGTON, D.C. (Bloomberg) Former President Jimmy Carter has announced his opposition to the Keystone XL pipeline, calling it a “linchpin for tar sands expansion and the increased pollution that will follow.” Carter

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End of active cleanup operations from Macondo spill

HOUSTON –The U.S. Coast Guard has ended patrols and operations on the final three shoreline miles in Louisiana, bringing to a close the extensive four-year active cleanup of the Gulf Coast following the Deepwater Horizon accident. These operations ended in Florida, Alabama and Mississippi in June 2013.

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Tricon Geophysics expands Paradigm licenses

HOUSTON – Paradigm has announced that Tricon Geophysics, Inc. has extended its portfolio of Paradigm software solutions. In addition to expanded access to core Paradigm software offerings, Tricon will leverage the Paradigm EarthStudy 360 full-azimuth angle domain imaging and analysis system to offer its clients asset-targeted seismic imaging and reservoir characterization services for sub-salt and shale resource plays.

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Students aim to beat 3,587 miles per gallon

HOUSTON -- As Shell Eco-marathon Americas 2014 fast approaches, more than 1,000 innovative high school and university students from across the Americas are entrenched in efficiency tests, safety checks and practice runs to ensure their super-mileage vehicles are ready for the competition taking place in Houston April 25-27.

...»

Halliburton CEO sees recovery in hydraulic fracturing market

HOUSTON (Bloomberg) -- Dave Lesar sees better days ahead for Halliburton Co. in North America’s oversupplied fracing market. The more than two-year glut in pressure-pumping equipment used to shoot water, sand and chemicals underground to release trapped oil and natural gas is easing “much faster” than expected, the CEO said.

...»

Veolia awarded water treatment contract for Shell’s Carmon Creek heavy oil project

PARIS -- Veolia has been awarded the contract by Shell Canada to design and supply a water treatment facility to recycle the water used for steam generation at Shell’s Carmon Creek heavy oil project in Alberta, Canada.

...»

Exxon rejected by Supreme Court on $105 million New York award

NEW YORK (Bloomberg) -- The U.S. Supreme Court rejected Exxon Mobil Corp.’s appeal of a $105 million jury verdict it was ordered to pay for contaminating underground water in New York City with a gasoline additive.

...»

Halliburton expects second-quarter earnings to grow by 25%

HOUSTON (Bloomberg) -- Halliburton Co. expects to boost earnings per share in the second quarter by 25% as the world’s largest hydraulic fracturing service provider overcomes bad weather and lower pricing in North America.

...»

Fate of Keystone pipeline shifts to Nebraska

LINCOLN, Nebraska (Bloomberg) -- The focus of the Keystone XL debate has shifted from a fierce lobbying war in Washington to Lincoln, Nebraska, where the state Supreme Court has been asked to weigh a legal challenge to the pipeline.

...»

Fatality at Suncor’s oil sands site

FORT MCMURRAY, Alberta -- Suncor Energy has reported an employee fatality at its oil sands site on Sunday, April 20, 2014.

...»

Vanguard Energy reports sale of Batson Dome Field

Vanguard Energy reports sale of Batson Dome Field HOUSTON, Texas Vanguard Energy reported that it has entered into an agreement with an unrelated third party to sell all of Vanguard' s working interests and related equipment at its only operating field,

...»

OPEC will need to pump more oil after March plunge, IEA says

OPEC will need to pump more crude in the second half of the year to meet global demand after its production plunged to a five-month low in March, according to the International Energy Agency.

Supplies from the Organization of Petroleum Exporting Countries “plummeted” by 890,000 bpd to 29.62 MMbpd in March, the Paris-based IEA said in its monthly oil market report. That’s below OPEC’s collective 30 MMbbl production target and means the group will have to increase output in the second half of the year, it said. The agency’s global oil demand growth forecast was little changed.

“OPEC supply actually registered a steep drop in March from February highs, but this setback looks likely to be short-lived,” the IEA, an adviser to oil-consuming nations, said. “Prospects for OPEC output are also on the rise -- though not without considerable political risk.”

Brent crude prices have dropped 3.3% this year to trade at about $107.12 a barrel today amid rising U.S. production and signs of slowing emerging economies. The International Monetary Fund cut growth predictions for countries including Brazil, Russia, South Africa and Turkey earlier this month.

“Demand growth is lagging supply,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an emailed response to questions. “Despite a higher call on OPEC in the second half, supplies are plentiful. It’s little surprise OPEC supplies slipped in March since demand slows.”

Production from OPEC’s 12 members dropped in March amid declines in Iraq, Saudi Arabia and Libya, the IEA said. The group, which is responsible for about 40% of world oil supplies, pumped 30.51 MMbpd in February.

OPEC will need to provide 30.6 MMbpd of crude in the second half, the agency estimated. That’s an increase of 350,000 bpd from the previous forecast, as the IEA reduced its expectations for oil production from countries including Russia and Kazakhstan.

Oil supplies from nations outside OPEC are forecast to reach 56.2 MMbpd this year, a downward revision of 200,000 bpd from the previous month, the IEA said.

Global demand is seen increasing to 92.7 MMbpd this year, little changed from last month’s report, according to the IEA. The agency trimmed its forecast for Russian oil consumption by 55,000 bpd to 3.5 MMbpd this year as its economy slows after the nation annexed Crimea.

“One month after the events in Crimea, market watchers are taking stock of their impact on oil markets,” the IEA said. “Given the still volatile nature of the situation on the ground, there are more questions than answers.”

In separate report yesterday, OPEC trimmed estimates for the amount of crude it will need to pump this year amid rising U.S. supplies, and predicted that a “supply buffer” will accumulate before demand peaks in the summer.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Shell shelves plans to boost Ormen Lange gas output

Royal Dutch Shell Plc postponed a project designed to boost natural gas recovery from its Ormen Lange deposit offshore Norway, citing higher costs and doubts on reserves.

“The oil and gas industry has a cost challenge,” said Odin Estensen, chairman of the Ormen Lange Management Committee, in a statement. “This, in combination with the maturity and complexity of the concepts and the production volume uncertainty, makes the project no longer economically feasible.”

Shell and other oil companies including Statoil ASA are cutting spending amid rising costs and stagnating oil and gas prices. The delay at Ormen Lange, which delivers as much as 20% of the UK’s gas consumption, comes as the standoff between Russia and the European Union over the annexation of Crimea has raised concerns over fuel supplies to Europe.

The delay on the compression project was supported by partners Statoil, Dong Energy A/S and Exxon Mobil Corp. It was opposed by Norway’s state-owned Petoro AS, also a partner. Prime Minister Erna Solberg this month warned companies against “unacceptable” delays to recovery projects, saying they risk damaging the goodwill they enjoy from the government.

Shell shares dropped 0.6% to 2,200 pence as of 10:18 a.m. in London. Statoil fell 0.8% to 165.4 in Oslo.

The partners remain committed to maximizing recovery at Ormen Lange “in a sustainable manner,” said Shell, the operator of Norway’s second-largest gas field.

Norway, western Europe’s largest oil and gas producer, has seen output drop 20% over the past decade. The government is pushing for companies to maximize recovery from existing fields instead of moving on to more profitable projects. Statoil, Norway’s largest producer, has also announced it’s reviewing plans to build a new platform at the North Sea Snorre deposit to extract an additional 300 MMbbl of oil.

Shell said the timing of the Ormen Lange compression project wasn’t critical to the ultimate recovery rate at the field. “We’re fully aligned to the government’s steer to increase the recovery factor,” Kitty Eide, a company spokeswoman, said in an emailed reply to questions.

In a letter to the government in February, Shell said that a tax increase last year on oil and gas companies will make the Ormen Lange project less profitable, echoing other companies that have warned the change would hurt marginal projects.

“It’s not a deciding factor, but did not help the economics of the project,” Eide said. The company declined to provide details on investment or production-volume estimates for the compression project, or when the license partners expected to make a decision on a future project, she said.

Benchmark gas prices in the UK, where Ormen Lange’s production is shipped through the 1,200-km (745 mi) Langeled pipe, the world’s second-longest pipeline, have fallen 24% so far this year.

The field was discovered in the Moere basin of the Norwegian Sea in 1997 and started producing 10 years later. Output reached 21.5 Bcm of gas last year, a fifth of Norway’s total production. Remaining reserves were estimated at 194.5 Bcm of gas at the end of 2013, down from an initial 314.6 Bcm, according to the Norwegian Petroleum Directorate.

The project delay has no implications for current production, Shell’s Eide said.

Troll, Norway’s largest gas field, has remaining reserves of 955 Bcm. Troll produced 29.6 Bcm of the fuel last year.

Shell and its partners had been studying two offshore compression solutions -- either a subsea concept or a platform -- to compensate for declining pressure over time.

Petoro, which manages Norway’s direct stakes in offshore fields, shares Shell’s view that the current concepts for compression were unprofitable, making a postponement reasonable, Sveinung Sletten, a spokesman, said by phone. The company didn’t support the operator’s decision because it lacked clear plans for future compression projects, he said.

“We haven’t been presented with good enough plans for how the operator will continue its work on compression,” he said. “We want a stronger commitment, and we want sufficient resources allocated to the upcoming work to secure the extraction of remaining profitable resources at Ormen Lange.”

Oslo-based Aker Solutions ASA, which designed a pilot project for Ormen Lange seabed compression, said it wouldn’t comment on the internal decision-making process. The company also worked on the world’s first subsea gas compression facility at Statoil’s Aasgard field in the Norwegian Sea.

“Although delayed, subsea compression at Ormen Lange remains an opportunity for us in the future,” Bunny Nooryani, an Aker Solutions spokeswoman, said in an email.

Norwegian weekly Teknisk Ukeblad reported last month that FMC Corp. had beaten Aker Solutions to an initial contract on the Ormen Lange compression system.

Aker Solutions slid 2.3% to 90.3 kroner in Oslo trading.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Parex to focus on Colombia in bid to double production

Parex Resources Inc., the Canadian oil producer operating in Latin America, is focusing its growth efforts on Colombia as it aims to double production in the next five years.

CEO Wayne Foo is planning more land and asset acquisitions to boost the company’s output to as much as 50,000 bpd, he said in an interview at Parex’s headquarters in Calgary yesterday. Colombia’s stable government and well-understood oil resources make it a better investment than other countries in the region such as Argentina, Foo said.

“To be relevant in the market, you really have to be in the range of 25,000 to 50,000 barrels a day,” he said. Production will grow as much as 20% annually from 17,500 to 18,500 bpd this year, he said.

Parex began as an oil producer in Argentina in 2003. The Colombian business was spun off in 2009 and based in Calgary. One of about 10 Canadian energy producers operating in Colombia, Parex produces both light and medium crude in the Llanos basin.

Parex’s shares have more than doubled in the past 12 months, valuing the company at about C$1 billion ($911 million). The stock declined 2.1% yesterday, closing at C$9.50 in Toronto.

“They still have upside,” said John Stephenson, who helps oversee about C$3.1 billion at First Asset Investment Management Inc. in Toronto. “Historically they have been drilling targets that were small and they’re now going after bigger plays to add resource.”

The Canadian company has focused on purchasing land near its current holdings in the Llanos basin, boosting its position to about 2 million acres (809,371 hectares) from 250,000 acres in 2009.

Parex’s largest non-state-owned competitor is Pacific Rubiales Energy Co., a Bogota and Toronto-listed company with a market value of about C$6.7 billion. Colombia in February produced about 1 MMbpd of crude, according to the country’s Mines and Energy Ministry.

Oil transportation infrastructure has caught up with production, helping to relieve a bottleneck that existed for producers a couple of years ago, said Parex V.P. Mike Kruchten. Last year the Bicentenario line began operating, while the Ocensa pipeline has been expanded. Calgary-based Enbridge Inc. is also considering building a line to Colombia’s Pacific coast.

“At present there’s lots of excess capacity” in pipelines, said Foo.

Parex earns about 3% to 4% less on its Colombian oil than Brent crude, the global benchmark, said Kruchten. Brent crude for May settlement traded at about $106 a barrel on April 7.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Magnolia LNG, SKEC Group sign technical services agreement

Liquefied Natural Gas Limited has reported that Magnolia LNG, LCC (MLNG), its wholly-owned subsidiary, has executed a technical services agreement (TS Agreement) with SK E&C USA, Inc., a wholly-owned subsidiary of SK Engineering and Construction Co. Ltd., of Korea (SKEC Group).

The TS Agreement relates to the ongoing engineering, procurement and construction (EPC) activities for MLNG’s planned 8 mtpa Magnolia LNG Project, in Lake Charles, Louisiana.

SKEC Group has already completed a satisfactory detailed review of Liquefied Natural Gas Limited’s OSMR process technology, which will be employed in the Magnolia LNG Project, and provided the company with an initial estimated EPC cost of $1.57 bn, which was consistent with the company’s budget estimate, including appropriate contingencies.

Liquefied Natural Gas Limited’s Managing Director, Maurice Brand, said that the EPC activities remained on schedule with the SKEC Group and will be managed going forward by the recently appointed COO, John Baguley, who will commence on May 1, 2014.

“We also remain on schedule to lodge our application for Filing with the Federal Energy Regulatory Commissions on the 30 April 2014,” Brand said.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Oil India said to study purchase of Shell's Nigerian oil blocks

Oil India Ltd. is studying an acquisition of Nigerian oil and gas assets owned by Royal Dutch Shell Plc, according to people familiar with the matter.

Oil India is weighing a bid for stakes Shell holds in some onshore blocks, valued at as much as $2 billion, the people said. It will partner with India’s Sandesara Group on the potential purchase, according to the people, who asked not to be identified as the deliberations are private.

The explorer joins Dangote Group, controlled by Africa’s richest man, and Seplat Petroleum Development Co. in seeking to acquire Nigerian assets being sold by Western rivals. Shell and Chevron Corp. are divesting fields in the country amid persistent violence and crude theft in the oil-rich Niger River delta.

India’s government-run oil companies are building on their record $5.5 billion of acquisitions last year to secure supplies for Asia’s second-biggest energy consumer. Oil India, which had 124.9 billion rupees of cash at the end of September, has purchased stakes in gas fields in Mozambique and shale assets in the U.S. over the past two years.

Oil India Chairman S.K. Srivastava and finance director Rupshikha Saikia Borah didn’t answer two calls each to their mobile phones seeking comment. Sandesara Group Chairman Nitin Sandesara didn’t immediately respond to an email and phone call to his office.

Sterling Energy & Exploration Production Ltd., a unit of Sandesara Group, has more than 250 MMbbl of certified oil reserves and 1 Tcf of natural gas reserves in the Niger Delta, according to its website. Nigeria pumped about 2.1 MMbpd last month, data compiled by Bloomberg show.

Shell said in October divestments in India have been deferred to 2014. The Anglo-Dutch company’s earnings in the country were curbed by almost $1 billion last year because of oil theft and a LNG export blockade by the government, CFO Simon Henry said March 13.

Earlier this year, Oil & Natural Gas Corp. and Oil India paid $2.5 billion for a 10% stake in a Mozambique natural gas field. Securing fuel supplies is crucial for Prime Minister Manmohan Singh as India relies on imports to meet about three-quarters of its oil requirements.

Seplat Petroleum, based in Lagos, and its partners are bidding for two Nigerian oil and gas permits Shell is selling, Chairman A.B.C. Orjiako said March 11. Dangote Group is in talks to purchase onshore oil blocks in the country as international companies sell assets, Group Executive Director said in January.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Oil Partnerships: How to Protect Your Investment

As burgeoning economies push the demand for oil to historic highs, some analysts say the world's oil production is in the process of peaking. Believing that an oil crisis -and, thus, higher prices - is inevitable, some investors are seeing dollar signs in their future.

According to the International Energy Agency, 2004 world oil demand increased by a higher rate than any year since 1988. And if current trends continue, worldwide oil demand will exceed 120 million barrels per day, according to the Energy Information Administration.

As oil fields yield less oil to satisfy this demand, prices are predicted to keep climbing. Forward-looking investors who see an opportunity to profit from these high prices are entering drilling partnerships with oil and gas exploration companies in geographical areas known to have established oil fields. Such drills may result in commercially marketable oil being found, bringing an investor anything from modest monthly checks to great wealth.

Although it's a risky investment, a good drilling partnership program may only have to hit one successful well to create a substantial profit. In addition, drilling partnerships can offer outstanding tax advantages.

However, investors should be cautious and research the company thoroughly before investing, said Dr. Roger L. Cory, President of Mammoth Resource Partners, a company that explores for oil and gas in oil-rich areas of Kentucky.

Cory says the company sets itself apart from others in the industry in the way it does business - more communication with and accountability to its investors. Through its "Partner Communication System," for example, investors are kept up-to-date on drilling activities via an online drill log. They also are able to see the status, GPS coordinates and permit numbers for each drilling project as it progresses.

Investors also should consider the net revenue interest - the percentage of the profits that investors receive from the sale of the oil produced, Cory said. Mammoth offers competitive net revenue interest.

Another thing for a potential investor to address is whether the company takes steps to increase the likelihood of striking oil. Mammoth packages multiple wells into one project and uses computer technology to minimize the risk of "dry holes."

And unlike others, Cory says, Mammoth includes already-producing wells in its packages to provide income and offset risk while exploring for new strikes.

Tolfem Investments Limited, Crude Oil & Petroleum Products Seller.