Oil & Natural Gas: News & Discussion

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panduranghari
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Re: Oil & Natural Gas: News & Discussion

Postby panduranghari » 28 Oct 2014 19:37

Austin wrote:Oil Prices have been on a high since 2011 , So this low price was expected , Brent was suppose to trade in $90 bracket for next 3 years. Should do good for our Budget and Economy


You are getting it backward. This drop in oil price is a canary in the coal mine. With rise in oil price, once reliable (from western perspective) oil producers like russia and venezuela decided to circumvent OPEC thus becoming unreliable. As the oil price falls due to rising USDX, these unreliable suppliers will do everything to keep money coming in thus maintaining clients. They will soon become reliable. Saudi is unconstrained by these shenanigans. They know the might of US Army stands behind the house if saud. Productivity can be reduced to make oil expensive. Thats what OPEC will do. How does the world dependent on oil respond?

Also WTI is falling. Brent is still close to its all time high. WTI Brent spread is thinning out.

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Re: Oil & Natural Gas: News & Discussion

Postby pankajs » 05 Nov 2014 22:45

Forbes ‏@Forbes 2m2 minutes ago

If prices don’t recover soon this could be the beginning of the end of the Great American oil fracking boom: http://onforb.es/1okuP1H
If prices don’t recover soon this could be the beginning of the end of the Great American oil fracking boom. Already ConocoPhillips and Shell have announced a pull back in onshore investment. But the real pain will be felt by the army of smaller independent producers.

There’s been a lot of talk about the breakeven prices per barrel needed to sustain drilling in various oil plays. Some say $80, others say $70. If you have acreage in a sweet spot you might be safe down to $50.

But let’s get real — breakeven just isn’t good enough. Investors need returns on capital, not just returns of capital. And for myriad small drillers this fall in prices has virtually eliminated any possibility of turning real cash profits. Over the long run, a company that can’t generate a profit is worthless.

Though oil prices are down “just” 30%, shares in some drillers with shaky balance sheets have plunged 60%. It is always the case that shares in leveraged commodity producers are more volatile than the underlying commodity. Equities are ultimately priced on a company’s ability to generate profit. Small moves in commodity prices have a huge impact on earnings.

At $100 a barrel, the average oil company can generate net income on the order of $15 a barrel. But if prices fall 10% to $90, leaving a margin of $5, that means profits plunge 66%. At current prices, the average oil company isn’t profitable at all, and the weaker ones, loaded up with debt, are the walking dead. A perfect example is Goodrich Petroleum , which announced some big new discoveries in the Tuscaloosa Marine Shale. While the oil may be there, “the play is not economic at current oil prices,” wrote Cowen & Co. analyst Christopher Walling yesterday, adding that “liquidity is a growing concern.” Goodrich shares are down 70% in six months.

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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 14 Nov 2014 04:15

Frozen fuel: The giant methane bonanza
Check The Map, Indian Coast Line Is Rich with Gas Hydrates
( Require subscription)

CROWDED around a hole in the ice, the dozen or so people clad in thick jackets could be local fishermen. But the rope winch, carefully lowering a long, fat pipe into the frigid Siberian water, hints that it is not dinner they are here to catch.For over a decade, scientists have trekked to this remote corner of the Russian wilderness from around the world, funded by governments eager to understand how to exploit these peculiar accumulations. "We've hosted scientists from everywhere – Japanese, Belgian, Indian and others," says Oleg Khlystov, a geologist at the Limnological Institute. They make the journey to Baikal because the lake's combination of storm-free waters, and – in the winter – a 1-metre-thick ice platform, provide ideal conditions for studying the icy crystals below. This year, the effort finally paid off, and a race is now on to harness them. Whoever succeeds could usher in the world's next energy bonanza, and redraw the world energy map in the process.
Finding methane hydrates is only the first of many problems, though. Extracting them is also challenging. For example, the gas expands to 160 times its initial volume by the time it reaches the surface, which can blow standard drilling equipment to bits.Research at Baikal had already helped Japan determine the seismic signatures of different kinds of methane hydrate deposits. Even tucked into sediments hundreds of metres beneath the bottom of the ocean, hydrates can be located by their characteristic high acoustic velocities – making hidden reservoirs easier to hunt down.To extract the gas, the Japanese team used conventional methods. That involved first lowering a drill about 1000 metres to the bottom of the eastern Nankai Trough. Then they had to drill another 300 metres into the rock and drain the water out of the hydrate layer to lower the pressure in the deposit and free the methane gas. They could then pump it to the surface.The JOGMEC researchers acknowledge that they "need to know much more" before starting commercial-scale production, but their initial success – 20,000 cubic metres a day for six days – leads them to speculate that production could start as soon as 2018.Not all deposits are locked into permafrost or sediments deep at the bottom of the ocean. In some places, they are abundant at or near the sea floor, strewn about like snowdrifts. Unlike sedimentary hydrates – which are microscopic in size, but plentiful – these do not require drilling into the sediment. They can simply be scooped up, which makes them easier, in theory, to turn into usable fuel.
It was these hydrates that caught the attention of Shinya Nishio, a scientist at Japan's Shimizu Corporation who was working on JOGMEC's deep-drilling programme. Previous research at Lake Baikal had determined that the deposits occur in "cold seeps" where gas-saturated water seeps up from faults. What was less clear was whether they contained usable amounts of methane.So in 2008 Nishio led an expedition to find answers at the bottom of Baikal.Using a research ship borrowed from the Limnological Institute, the Russian-Japanese team began their scan of the lake's depths. At a depth of about 420 metres, they found their mother lode: big snowy chunks of snow-white hydrates. To test their methane content, the team lowered what was essentially a giant straw with a scoop attached. "We collected about 1.5 cubic metres of methane in 40 minutes," says Khlystov. "It's not much, but what surprised the Japanese was that they were seemingly not doing anything, they just turned the pumps on and the gas began to flow." No drilling required.No matter which resource they tap, it is not unrealistic to expect that Japan will have major commercial operations within the decade, says Collet. The speedy timeline is not without precedent. "Five, six years ago shale gas was also barely appreciated as a potential resource," he says. "Now it's dominating and controlling the price of gas." Domestic shale gas now accounts for more than 20 per cent of US gas production, which has changed the nation's relationship with energy-exporting countries. "That can also happen with hydrates," he says.Other countries are interested in methane hydrate. India, which is also keen to gain energy independence, has offshore gas hydrate deposits of about 1.9 trillion cubic metres, and has logged several visits to Baikal. Bandaru Ramalingeswara Rao of the National Institute of Oceanography in Goa visited the lake in 2004. "The geophysical mapping we did there helped us identify gas hydrates deposits back home in India," he says. Shortly after, he was recruited by India's state gas hydrate research project. Based in part on his findings, India decided to begin drilling subsurface sedimentary hydrates in the Bay of Bengal. South Korea and China are also pursuing methane hydrate research.
Not everyone will be inspired by Japan to develop their methane hydrate resource. Thanks to the shale gas boom, Canada, Russia and the US have scaled back their programmes. However, if even a single country successfully commercialises operations, the reverberations will change the map of world energy, says Kimball Chen, who runs the international Energy Transportation Group, which advises governments on natural gas geopolitics. "If Japan started mining gas hydrates, Russia would lose export markets for liquefied natural gas in the Far East, and then all they'll have left is China." And if China follows Japan's lead, the situation will quickly snowball. The new energy source would probably dash Australia's nascent attempts at becoming a geopolitically secure energy supplier to nations like India and China.What's more, Japan may not even need to commercialise its resources – the mere threat of energy independence could be enough to cause these global ripple effects. "Just the physical capability to mine hydrates will give Japan negotiating power," says Chen. "If the Middle Eastern nations know that Japan can mine hydrates at a certain cost, that becomes the new price."The global energy markets, ever susceptible to influences, are balanced on a knife edge. Everything could be changed by two Russian research ships floating idly on the glittering summer water of Lake Baikal, awaiting their next assignment.There are concerns that focusing on methane hydrates might divert Japan's attention away from green technologies. Likewise, India, where wind is now competitive with coal, might be lured from a greener path.. "If Japan gets its gas from a very local offshore hydrate deposit, rather than burning LNG or coal, then that's probably a plus," he says. "In India the gas will compete with coal." Because methane burns cleaner than coal, this could offset coal emissions there.Another problem that receives a lot of attention is the leaks of unburned methane in shale-gas production. But again, methane hydrate stacks up well. Such leaks will do far less harm underwater. In deep-water offshore regions, any leaked methane would be oxidised by microbes before it can reach the surface. "They love methane, and they oxidise it to gain energy," says marine geologist Klaus Wallmann of Kiel University in Germany. For example, in the BP Deepwater Horizon spill in the Gulf of Mexico, huge amounts of methane were released, but didn't make it to surface.
Perhaps methane hydrate production could even help the environment. Last year, in a trial on Alaska's North Slope, the US Department of Energy and JOGMEC, a Japanese energy company, demonstrated that it is possible to store carbon dioxide in the icy cages that normally hold methane. To make the switch, the team forced the water out of the porous methane hydrate layer. Next, they injected waste CO2, leaving it in place for several days to ensure the CO2 successfully took the place of the methane. Once that was done, the methane was pumped to the surface.The swap was accomplished in permafrost, but Wallmann believes that the same process can be applied to store CO2 in tapped offshore hydrate deposits after drilling.

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Re: Oil & Natural Gas: News & Discussion

Postby nawabs » 14 Nov 2014 09:10

India, Turkmenistan, Afghanistan, Pakistan form TAPI company

http://www.business-standard.com/articl ... 609_1.html
The company has been floated with equal stakes held by the state-owned gas companies — Turkmengas, Afghan Gas Enterprise, Inter-State Gas Systems and GAIL (India) Ltd — of the four nations.

The 1,800-kilometre TAPI pipeline will export up to 33 billion cubic metres (bcm) of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India, over 30 years.

Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the land-locked country to diversify its gas export markets to the southeast.

Turkmengas, in turn, will provide a key new source of fuel for southern Afghanistan, Pakistan, and northern India.

The transaction advisor for the project, Manila-based Asian Development Bank (ADB), termed the establishment of the company as a key milestone in its development.

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Re: Oil & Natural Gas: News & Discussion

Postby vishvak » 15 Nov 2014 00:45

Some OT info about hydrates:
20,000 Microbes Under the Sea
All 4 pages worth a read.

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Re: Oil & Natural Gas: News & Discussion

Postby Neshant » 17 Nov 2014 05:38

George wrote:Russians average deficit for the last decade has been less than 1% (US is at around 4%)

Russian Government Debt to GDP is less than 15% (US is at 110% currently)


GDP measurements are meaningless. A lot of useless unproductive stuff like banking and leveraged gambling bets in the market are factored in as part of GDP. Lately countries in the west have even started including workplace training knowledge gain into GDP.

Greece started playing with its GDP metric in 2013 and now they claim their GDP is growing not shrinking.

There is a lot of bogus-ness built into GDP numbers.

I would say the best measure of national wealth is how well off the average citizen in a country is living over a long period of time.


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Re: Oil & Natural Gas: News & Discussion

Postby csaurabh » 24 Nov 2014 15:14

nawabs wrote:India, Turkmenistan, Afghanistan, Pakistan form TAPI company

http://www.business-standard.com/articl ... 609_1.html
The company has been floated with equal stakes held by the state-owned gas companies — Turkmengas, Afghan Gas Enterprise, Inter-State Gas Systems and GAIL (India) Ltd — of the four nations.

The 1,800-kilometre TAPI pipeline will export up to 33 billion cubic metres (bcm) of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India, over 30 years.

Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the land-locked country to diversify its gas export markets to the southeast.

Turkmengas, in turn, will provide a key new source of fuel for southern Afghanistan, Pakistan, and northern India.

The transaction advisor for the project, Manila-based Asian Development Bank (ADB), termed the establishment of the company as a key milestone in its development.


I don't know about this. How far can we trust Afghanistan and Pakistan? Bad idea.

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 24 Nov 2014 21:08

[quote="csaurabh"][quote="nawabs"][b]India, Turkmenistan, Afghanistan, Pakistan form TAPI company[/b]

http://www.business-standard.com/articl ... 609_1.html
[quote]The company has been floated with equal stakes held by the state-owned gas companies — Turkmengas, Afghan Gas Enterprise, Inter-State Gas Systems and GAIL (India) Ltd — of the four nations.

The 1,800-kilometre TAPI pipeline will export up to 33 billion cubic metres (bcm) of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India, over 30 years.

Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the land-locked country to diversify its gas export markets to the southeast.

Turkmengas, in turn, will provide a key new source of fuel for southern Afghanistan, Pakistan, and northern India.

The transaction advisor for the project, Manila-based Asian Development Bank (ADB), termed the establishment of the company as a key milestone in its development.[/quote][/quote]

I don't know about this. How far can we trust Afghanistan and Pakistan? Bad idea.[/quote]
Pakistan doesnt have money. Neither does Aghanistan or Turkmenistan. No investor would put their money unless India gives a sovereign guarantee of purchase of gas. So it would go the way of Iran Pakistan India gas pipeline.

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Re: Oil & Natural Gas: News & Discussion

Postby member_25399 » 27 Nov 2014 13:09

Question for the gurus here :
What is the reserve capacity of India ? Given the nosediving prices and it seems it will continue for a while, isn't it a good idea to increase our stock reserves ?

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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 27 Nov 2014 23:05

Khoooooshkhabri
Crude drops to 68$ a Barrell. Indian crude basket wil drop by 37$ per B, saving 35-40 Bill a year in hard currency.

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Re: Oil & Natural Gas: News & Discussion

Postby Rahul M » 27 Nov 2014 23:57

we need to buy like crazy and stock up. how are those strategic reserves coming along ?

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Re: Oil & Natural Gas: News & Discussion

Postby vishvak » 28 Nov 2014 00:39

Govt needs to think a few out of box ideas. For example, create strategic reserves (already mentioned above) buying oil from Russia (in step increments) in goal oriented fashion. A steep rise (or fall too may be) in a short time is not good for business. The Chinese built up their reserves regardless of prices. Probably the Great Depression occurred at a particularly bad time even as a lot of monies were made in oil and other commodities like coal. Oil demand from Japan, China is down right now.

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Re: Oil & Natural Gas: News & Discussion

Postby Rishirishi » 28 Nov 2014 02:28

Use the 35 billion to build solar and wind farms. Also invest in a huge car battery plant.

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Re: Oil & Natural Gas: News & Discussion

Postby NRao » 28 Nov 2014 04:21

Oil prices plunge after Opec meeting

Following the announcement Brent crude hit its lowest since August 2010, falling below $72 a barrel, before settling at $72.58.


Image

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Re: Oil & Natural Gas: News & Discussion

Postby Aditya_V » 28 Nov 2014 09:55

These Govts can easily take debt like GOI or use thier Soverign wealth funds, it is not like they are making loss on OIl, it is just that people like us Indians are not funding thier lifestyles. In fact, that is the beauty of Islam, Pakis and Bd's and to certain us cannot do to food items what they do to Oil. Developing countries should infact levy a food tax on exports to these rich gulf countires import for food. These countries should also be banned from owning farmland outside.

They should realistically price petrol diesel, Keep income taxes, and indirect taxes like customs at say 50%+ 25% road tax on all automobile imports. Gulf residents will learn how not to mock Indians with cheaper cars since they don't pay any taxes.

I would say given UPA gave a bancrupt Govt. Modi govt is doing the right thing building the FInancial reserves of Govt and OIL companies for the time OIl prices rise.

Reduce Govt debt of the next 1 year. this will allow for more productive investments, lower inflation lower interest rates allowinbg for a pick up in the economy. Remember it is not the ecomic situation today that counts but what is it in 2017-19 which will have an impact in 2019.

It is very difficult to get out of the mess the UPA brought us in. I hope Indians keep the CPI, TMC< Mulayam Lallo INC pack out atleast until 2029 to give India a chance

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Re: Oil & Natural Gas: News & Discussion

Postby uddu » 29 Nov 2014 12:25

Aditya_V wrote:It is very difficult to get out of the mess the UPA brought us in. I hope Indians keep the CPI, TMC< Mulayam Lallo INC pack out atleast until 2029 to give India a chance


The days of such parties are over. short time comeback may be possible at local level but the trend shows even they have to perform and their chance of winning is getting diminished with each passing day. No more India will be under goons and criminals. That's for sure.

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Re: Oil & Natural Gas: News & Discussion

Postby krishnan » 29 Nov 2014 14:40

except TN, unless they show some spine and start voting for development

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Re: Oil & Natural Gas: News & Discussion

Postby member_28756 » 29 Nov 2014 23:26

nawabs wrote:India, Turkmenistan, Afghanistan, Pakistan form TAPI company

http://www.business-standard.com/articl ... 609_1.html
The company has been floated with equal stakes held by the state-owned gas companies — Turkmengas, Afghan Gas Enterprise, Inter-State Gas Systems and GAIL (India) Ltd — of the four nations.

The 1,800-kilometre TAPI pipeline will export up to 33 billion cubic metres (bcm) of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India, over 30 years.

Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the land-locked country to diversify its gas export markets to the southeast.

Turkmengas, in turn, will provide a key new source of fuel for southern Afghanistan, Pakistan, and northern India.

The transaction advisor for the project, Manila-based Asian Development Bank (ADB), termed the establishment of the company as a key milestone in its development.



http://www.pennenergy.com/wirenews/oilg ... rtium.html

India wants Chinese co to lead TAPI gas pipeline consortium
2014-11-19
NEW DELHI: With global energy firms refusing to participate in the ambitious TAPI gas pipeline, India may propose getting a Chinese company to lead a consortium that will build the USD 10 billion Turkmenistan- Afghanistan- Pakistan-India (TAPI) gas pipeline. French giant Total SA had initially envisaged interest in leading a consortium of national oil companies of the four nations in the TAPI project, but backed off after Turkmenistan refused to accept its condition of a stake in the gas field that will feed the pipeline. The issue of quickly getting a consortium in place will be discussed at the 19th Steering Committee meeting of TAPI pipeline project in Turkmenistan today where India will be represented by Oil Minister Dharmendra Pradhan.


So sad we need Chinese investment to get this pipeline going otherwise it will probably never get done. No words if the Chinese will take it. Why would they ?

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Re: Oil & Natural Gas: News & Discussion

Postby Rahul M » 29 Nov 2014 23:50

how sad, it's great. if the talinunnies attack it it will be SinoPak issue. our contractual terms should be limited to getting the gas.

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Re: Oil & Natural Gas: News & Discussion

Postby Haresh » 30 Nov 2014 00:48

San Antonio Plans to Convert Human Waste to Energy
Texas City Expects to Recycle More Than 90 Percent of Liquid and Solid Wastes


http://environment.about.com/od/fossilf ... _waste.htm

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Re: Oil & Natural Gas: News & Discussion

Postby member_28756 » 30 Nov 2014 13:39

Rahul M wrote:how sad, it's great. if the talinunnies attack it it will be SinoPak issue. our contractual terms should be limited to getting the gas.

Its sad because TAPI is not going to get built. Who in the right mind will invest in such a project ? If India wants the gas it will probably have to pay the cost of building the pipeline itself.

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Re: Oil & Natural Gas: News & Discussion

Postby Raj » 08 Dec 2014 04:35

Cheap oil and strategic reserves

Image

To provide a bit of background, India had conceived of a strategic petroleum reserve as far back as in the late 1990s and after several committees and studies, the project to build a strategic storage for crude oil was given the go ahead early in 2004 by the NDA government. The plan was to build storage capacities in three places — Mangaluru and Padur (near Mangaluru) on the west coast and Visakhapatnam on the east. With a total capacity of 5 million tonnes, this storage was estimated to cover two weeks’ requirements. A special purpose vehicle — Indian Strategic Petroleum Reserves Ltd. (ISPR) — was floated under the Oil Industry Development Board to implement the project. So far, so good.

The problem started when the UPA government, which assumed office soon after, decided to review the strategic storage plan and precious time was wasted in further studies by the Planning Commission. To cut a long story short, a decade after the project was initiated, not one of the three planned storages has been completed till now. Costs have, meanwhile, escalated and the opportunity to secure the country’s energy supplies has been squandered.

Petroleum Minister Dharmendra Pradhan announced in Parliament in August that the first of the three, at Vizag, will be ready for filling by the end of this year with the other two expected to be ready by mid-2015. Taking the strategy forward — and rightly so — Mr. Pradhan has said that four more strategic storages would be built in Bikaner, Rajkot, Padur and Chandikhole in Odisha. These will have a combined capacity of 12.5 million tonnes and take the storage to 90 days’ equivalent of consumption by 2020. This is in addition to commercial storage of crude and petroleum products of about 30 million tonnes (about 70 days’ needs) available with the oil companies at any given point in time.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 11 Dec 2014 15:11

Rosneft Signs Ten-Year Oil Contract of 10 Mln Tons per Year With India

Beginning in 2015, Russia's Rosneft will deliver 10 million tons of oil annually for a period of 10 years to India. Oil will be transported by sea from Russia's Far East, as well as the Black and Baltic seas.

NEW DELHI, December 11 (Sputnik) – Russian oil giant Rosneft has signed a 10-year contract to deliver 10 million tons of oil annually to India, Rosneft CEO Igor Sechin said Thursday.

“The contract foresees deliveries to begin already in 2015 of 10 million tons of oil per year for a period of 10 years with the possibility of prolongation,” Sechin told journalists in India’s capital of New Delhi.

The contract was signed between Russia’s Rosneft and India’s largest oil manufacturing company Essar.

Sechin said oil would be delivered by sea from different Russian regions, including from the Far East, as well as the Black and Baltic seas.

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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 12 Dec 2014 04:23

WTI crude now 59.15. It will touch 50$ mark soon. Shale shall cap it +/- 60 $for long term. Indian economy will get break for next few years to get energy security.

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Re: Oil & Natural Gas: News & Discussion

Postby member_28756 » 12 Dec 2014 17:18

Jhujar wrote:WTI crude now 59.15. It will touch 50$ mark soon. Shale shall cap it +/- 60 $for long term. Indian economy will get break for next few years to get energy security.

I think you are a bit too optimistic about those oil prices. Long term prices are going to much higher than $60 although as a consumer I hope you are right.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 14 Dec 2014 11:15

Iran Oil Minister was quoted as saying Oil will fall to $40


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Re: Oil & Natural Gas: News & Discussion

Postby kish » 14 Dec 2014 15:48

Meanwhile SRDE yindoo company ONGC make some discoveries in K-G basin, Cauvery basin & Mumbai offshore. :D

The public sector Oil and Natural Gas Corp (ONGC) on Saturday announced that there have been three new oil and gas discoveries in one each of the Krishan-Godavari Basin, Cauvery basin and Mumbai offshore, which allows an interim dividend of 100 per cent to its shareholders.

The ONGC board in its meeting on Friday approved an interim dividend of 100 per cent, paying Rs 5 per equity share of Rs 5 each, the company said in a statement on Saturday. "The total payout on this account will be Rs 4,277.75 crore out of which the Government of India will receive Rs 2948.08 crore on its shareholding. In addition, dividend distribution tax of Rs 855.55 crore would also be paid," it said.

ONGC said it has made three discoveries — one in deepwater KG Basin off the east coast, second in Mumbai offshore basin off the west coast and the third in Cauvery basin in the southern onland part of the country.

In KG Basin offshore, ONGC has made a significant gas discovery in its nomination deep water block, KG-OS-DW-III.The new discovery well GD-11-1, located about 43 km to the South of the nearest coastal town of Odalarevu in Andhra Pradesh, was drilled down to a depth of 2,810 metres in water depth of 812 metre to explore the hydrocarbon potential of Pliocene sands.The Pliocene sequence has indicated the presence of about 36 metres of gas pay which, on conventional testing, has flowed gas at the rate of around 6.5 lakh cubic metres a day.

ONGC has already made five hydrocarbon bearing discoveries from the northward contiguous NELP-VI shallow water block of KG-OSN-2004/1 from a similar play and this discovery has opened up a large opportunity for further assessment of the prospectivity. "The new discovery would enhance production of gas and crude in the KG basin considerably and also add to revenues," says an ONGC spokesman .

In Mumbai offshore ONGC madey, a new pool discovery in the well WO-5-11 (WO-5-G), situated around 160 kms west from the nearest coastline in Maharashtra. On testing, the well flowed oil at the rate of around 1,500 barrels per day and gas at the rate of around 10,000 cubic metres per day through half inch bean.

In Cauvery Basin, ONGC has made a significant gas discovery in the well MD-5 in the NELP-IV block CY-ONN-2002/2. This is the second hydrocarbon discovery in the block. The first discovery in this block was in October 2012, when oil was discovered in the well Madanam-3. The well MD-5 is located about 9 km towards east of Sirkhazi town in Nagapatinam district.

"The discovery is named as 'Thirunagari Gas Discovery' after the name of the nearby village," the statement said, adding the well flowed gas at the rate of 61,800 cubic metres per day along with condensate at the rate of 9.6 cubic metres per day during testing."This discovery is envisaged to enhance the commercial viability of this block," it added.

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Re: Oil & Natural Gas: News & Discussion

Postby Kakkaji » 19 Dec 2014 06:31

City gas to be first in queue

New Delhi, Dec. 18: The government is expected to give top priority to companies selling CNG and piped gas, while restructuring the domestic natural gas allocation policy.

At present, urea manufacturing plants have the first right over domestic gas, followed by LPG plants and power stations.

City gas distribution projects selling CNG to automobiles and piped cooking gas to households are ranked fourth now.

The oil ministry is moving the cabinet to alter this by giving city gas distribution (CGD) companiestop priority, followed by plants providing inputs to strategic sectors such as atomic energy and space research, officials said.

After this, a small quantity of up to 1.5 million metric standard cubic meters per day (mmscmd) of gas will be allocated for the extraction of hydrocarbons.

Fourth on the list will be gas-based urea plants, followed by power plants complying with the condition that the entire electricity produced from the allocated gas shall be sold at a regulated tariff, sources said.

Micro and small enterprises that use gas for heating or captive power generation will be placed next to boost domestic manufacturing.


I think it will be a good policy if implemented.

panduranghari
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Re: Oil & Natural Gas: News & Discussion

Postby panduranghari » 20 Dec 2014 04:48

Jhujar wrote:WTI crude now 59.15. It will touch 50$ mark soon. Shale shall cap it +/- 60 $for long term. Indian economy will get break for next few years to get energy security.


Image

At sub 60$ price of O&G, Shale is good as dead. Reliance could go bankrupt. They bought 2nd Shale acreage in marcellus field which has lower proven reserves than the one they bought last year. Reliance paid $1.35 billion for a 45% stake in Pioneer Natural Resources Co., another US-based energy firm that holds shale gas assets in the Eagle Ford Shale acreage. Now eagle ford is the biggest one with highest proven reserves. After them comes the Bakken fields. Marcellus is no where in picture. Now if companies holding eagle ford shale plays are selling stake in other sites, it suggests one of two things.
1. Expense is not recoverable at falling prices for those sites with lower reserves hence the sale
2. Reliance is in it for experience, so they replicate this in India when or IF government allows fracking. Considering how the current dispensation looks for merit rather than name, reliance is on a sticky wicket.

Theo_Fidel

Re: Oil & Natural Gas: News & Discussion

Postby Theo_Fidel » 20 Dec 2014 05:11

Austin wrote:Iran Oil Minister was quoted as saying Oil will fall to $40


Last time around in 1998 oil fell to $10/barrel. The thing is that refined products will be multiples more expensive to the consumer. So oil companies continue to make huge profits..... ..people getting screwed will be national governments and the royalty checks to the public exchequer.....

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Re: Oil & Natural Gas: News & Discussion

Postby Rishirishi » 21 Dec 2014 05:15

Somehow I get the feel, OPEC is trying to project a gloomy future to discorage investment and to shut down high cost fields. If high operational cost project are shut down, no one will restart them. They will be closed forever, as the cost of restarting them will require high investments. When you have fields producing at 75$ and above dollars, then it must be very tempting to shut them down.

Prem
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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 21 Dec 2014 06:18

http://economictimes.indiatimes.com/mar ... 587736.cms
Why the fall in oil prices may not be so important for Indian economy at the
current juncture


The fall in global prices effectively represents a kind of 'income transfer' from oil exporters to oil importers. To the extent that this fall will boost consumption and investment in oil-importing countries such as India, which will offset economic turmoil in the oil exporting countries, that will boost global
growth. But will it?Says Madan Sabnavis, chief economist of CARE Ratings: "This is a fairly unique situation. There has been a longer-term structural shift in the market." The structural shift he is referring to is the dramatic shale gas boom in the United States which has effectively turned what was one of the world's biggest importers of oil into a large potential exporter.Global growth is weak as well. The Chinese economy has slowed down by as much as two percentage points from its peak, while the European economies are staring at the prospect of deflation, with inflation in the region of 0.3%. The only major economy seeing good growth at the moment is the United StatesProfessor NR hanumurthy, professor at the National Institute of Public Finance and Policy (NIPFP), says: "The fall in the forward price of oil tends to be a leading indicator as far as the health of the global economy is concerned," he says. "It can reflect expectations of the health of the global economy goingforward." In an nvironment of such uncertainty, expectations among investors or firms will be crucial for the health of the global — and by extension — the Indian economy.

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Re: Oil & Natural Gas: News & Discussion

Postby nithish » 23 Dec 2014 03:08

Why Saudis Decided Not to Prop Up Oil

WSJ needs a subscription but paste the URL into google search, click the first link - read in full

In early October, Saudi Arabia’s representative to OPEC surprised attendees at a New York seminar by revealing his government was content to let global energy prices slide.

Nasser al-Dossary ’s message broke from decades of Saudi orthodoxy that sought to keep prices high by limiting global oil production, said people familiar with the session. That set the stage for Saudi Arabia’s oil mandarins to send crude prices tumbling late last month after persuading other members of the Organization of the Petroleum Exporting Countries to keep production steady.

Hard-hit countries like Iran, Russia and Venezuela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ economies and geopolitical standing.

But the story of Saudi Arabia’s new oil strategy, pieced together through interviews with senior Middle Eastern, American and European officials, isn’t one of an old alliance. It is a story of a budding rivalry, driven by what Saudi Arabia views as a threat posed by American energy firms, these officials said.


pankajs
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Re: Oil & Natural Gas: News & Discussion

Postby pankajs » 23 Dec 2014 15:26

This is WAR! but who is the target? Russia, Iran and Shale gas?

vishvak
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Re: Oil & Natural Gas: News & Discussion

Postby vishvak » 23 Dec 2014 17:25


From link about Iraq invasions:
In 2000, Iraq had "effectively become a swing producer, turning its taps on and off when it has felt such action was in its strategic interest to do so." There is a "possibility that Saddam Hussein may remove Iraqi oil from the market for an extended period of time" in order to damage prices..
..
The most important strategic interest lay in expanding global energy supplies, through foreign investment, in some of the world's largest oil reserves – in particular Iraq. This meshed neatly with the secondary aim of securing contracts for their companies.
..
A series of news reports, for instance, confirmed how the State Department had set up 17 separate working groups to work out this post-war plan.
..
The Iraq War has helped to head off what Ellery described as "the tide of Easternisation" – a shift in global political and economic power toward China and India, to whom goes "two thirds of the Middle East's oil."
..
Whether Iraq began "favouring East or West" could therefore be "de-stabilising" not only "within the region but to nations far beyond which have an interest."
..
Despite escalating instability and internal terrorism, Iraq is now swiftly reclaiming its rank as one of the world's fastest-growing exporters .. Allied ambitions to "raise Iraqi's oil production from 2.5 million bpd today to 3 million by next year and maybe ultimately 6 million barrels per day.
..
Thus, the primary motive of the war - mobilising Iraqi oil production to sustain global oil flows and moderate global oil prices - has, so far, been fairly successful according to the International Energy Agency.

The "tide of easternisation" part shows hallucinations from crowd preaching egalitarianism and shows hollowness in the one world dreams.

krishnan
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Re: Oil & Natural Gas: News & Discussion

Postby krishnan » 23 Dec 2014 20:52

pankajs wrote:This is WAR! but who is the target? Russia, Iran and Shale gas?


OPEC vs GOTUS ???

Supratik
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Re: Oil & Natural Gas: News & Discussion

Postby Supratik » 23 Dec 2014 21:37

Russia and Iran are the targets.


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