Oil climbs to 3-week high as trade talks fuel demand optimism

Oil climbs to 3-week high as trade talks fuel demand optimism

Oil futures rose on Monday, buoyed by optimism tied to trade talks between the U.S. and China as well as output reductions by major oil producers. Brent crude futures were up $1.02, or 1.78 percent, to $58.35 per barrel at 1450 GMT. Talks with China are “going very well,” U.S. President Donald Trump said in a tweet as the delegations in Beijing extended their meeting into Wednesday. Saudi Arabia plans to cut its crude exports by 800,000 barrels a day from around 7.9 million barrels a day in November. Some analysts warned, however, that the relationship between the superpowers remained shaky and...

Canadian heavy crude surges as rail shipments keep climbing

Canadian heavy crude surges as rail shipments keep climbing

Canada’s heavy oil has quietly become the hottest commodity in North American energy. Optimism is back in the industry as prices are surging toward $70 US per barrel, and thoughts of $100 return. The discount of Western Canadian Select at Hardisty, Alberta, to West Texas. Quarterlies from such players as Suncor Energy Inc. and Cenovus Energy Inc. were dragged down by the collapse in oil prices between January and March. The rosy outlook is a far cry from early 2016, when prices dropped below $30 US per barrel. The current discount is too narrow to cover the cost of transporting oil by...

Spirit Energy gets approval for North Sea Oda start-up

Spirit Energy gets approval for North Sea Oda start-up

Spirit Energy has sharply hiked the lower resource estimate for its Fogelberg gas discovery in the Norwegian Sea after recent appraisal drilling. Other partners in the project are Aker BP, Faroe Petroleum, and Suncor Energy. Oda is a subsea development where the wellstream is sent on to the Ula platform for processing and transport. Norwegian authorities have approved the application for the start up of the Oda field in the Norwegian sector of the North Sea. Operator Spirit Energy expects start-up in February/March 2019. Updated calculations now show a resource estimate of between 40 million and 90 million barrels of recoverable oil...

FERC’s McIntyre dies, leaving second vacancy on Energy Regulator

FERC’s McIntyre dies, leaving second vacancy on Energy Regulator

Kevin McIntyre, the chairman of the Federal Energy Regulatory Commission and had been suffering from brain cancer, died on Wednesday, the agency said on Thursday. He was 58. McIntyre had been diagnosed with brain cancer in 2017 and previously had surgery to remove the tumor. He was member of the five-person Federal Energy Regulatory Commission. President Donald Trump tapped McIntyre to lead the Federal Energy Regulatory Commission in 2017. McIntyre was a lawyer representing clients from energy industries, including natural gas, oil and wind and hydropower. A setback in his condition led him to step away from the chairman’s role on Oct....

OPEC strategy still a winner for members despite oil slump

OPEC strategy still a winner for members despite oil slump

A meeting of the world’s biggest oil producers is shaping up to be a contentious event. OPEC’s commitment to market stability was clear from our two-day Ministerial Conference, which ended in Vienna. OPEC’s strategy to stabilize the market might look a bust. OPEC and other exporters including Russia appear poised to ease voluntary production limits. As record U.S. oil output and shaky fuel demand counteract the group’s efforts. 2003 began with strong oil demand growth, which then accelerated to exceptional levels in 2004. The agreement calls on OPEC and other producers to keep 1.8 million barrels a day off the market. As...

Venezuela taps obscure driller to replace big-name oil firms

Venezuela taps obscure driller to replace big-name oil firms

An agreement with US-based Erepla Services, created in 2018, to boost production at the Tia Juana and Rosa Mediano fields. Schlumberger and Halliburton announced over $2 billion in combined write-offs for unpaid bills in Venezuela since the second quarter of 2017. Erepla will supply rigs and crews in the onshore fields for 25 years. Short-term debt accounted for 62 percent of the total as of September, according to official data, meaning that $1.2 trillion will have to be rolled over this year. PDVSA will get 50.1 per cent from any subsequent resale while Erepla will get 49.9 per cent. Harry...

Equinor, Var Energi AS complete successful appraisal well in the Barents Sea Goliat license

Equinor, Var Energi AS complete successful appraisal well in the Barents Sea Goliat license

Var Energi, established in December 2018, through a merger between Point Resources and Eni Norge, drilled the well about 2 kilometers south of the Goliat floating production, storage and offloading installation (FPSO), 90 kilometers northwest of Hammerfest. Var Energi AS has together with license partner Equinor completed an appraisal in PL 229 in the Barents Sea through the successful drilling of the 7122/7-7 S Goliat West appraisal well. The primary exploration target for the well was to delineate the Goliat field by proving additional resources in Lower Jurassic and Upper Triassic reservoir rocks (the Tubåen and Fruholmen formation in the Realgrunn sub-group). The...

Eni acquires 70%, operatorship of the Oooguruk oil field in Alaska

Eni acquires 70%, operatorship of the Oooguruk oil field in Alaska

Eni has signed an accord to purchase from Caelus Energy the 70 percent stake in the Oooguruk oil field that it doesn’t already own, allowing the Italian energy giant to ramp up its production in Alaska by around 7,000 barrels of oil per day, the company said on Thursday in a statement. Eni has entered into an agreement to acquire 70% and operatorship of the Oooguruk oil field in Alaska from Caelus Natural Resources Alaska LLC. Eni already is the operator, with 100% working interest, of the Nikaitchuq oil field, located approximately 8 mi (13 km) North-East of Oooguruk. Eni already...

Oil edges up as traders weigh economic risks against OPEC cuts

Oil edges up as traders weigh economic risks against OPEC cuts

Oil prices edged up on Friday, shaking off previous losses after China said it would hold talks with the US government on January 7-8 to look for solutions to the trade disputes between the world’s two biggest economies. Oil ended another topsy-turvy day by closing near a two-week high, as traders weighed signs that OPEC is following through on production cuts against hints of an economic slowdown. International Brent crude futures were at $56.12 per barrel at 0542 GMT, up 17 cents, or 0.3 percent, from their last close. Global benchmark Brent crude rose, fell and then rebounded on Thursday,...

Faroe counters low-ball DNO offer with third-party valuation

Faroe counters low-ball DNO offer with third-party valuation

Faroe have produced their response to the DNO bid, unsurprisingly ‘substantially undervaluing their high quality full cycle North Sea business’. Shareholders have an initial deadline of 1:00 p.m. London time to accept the offer from Oslo-based DNO Faroe Petroleum Plc said its value far surpasses a bid by DNO ASA, citing an independent assessment in a last-ditch effort to persuade shareholders to reject the hostile offer just hours before the deadline. They point out that the bid is only at a 1% premium to the undisturbed 3 month VWAP and at half the average premium paid on all UK takeovers in...