Oil & Natural Gas: News & Discussion

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hgupta
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Re: Oil & Natural Gas: News & Discussion

Postby hgupta » 25 Jun 2019 04:24

vimal wrote:^^ If US is finally drilling more oil then what use are all these ME abduls to them?


The US needs to keep the price of oil low. The US does not depend on exporting oil to other countries to prop up its economy. Their number one enemy in terms of economic impact is rapidly rising inflation and oil price is the biggest driver (but not the only one, just the biggest) in any rising inflation. It just needs to keep the oil prices stable because rising oil prices have a ripple effect throughout its economic sectors from agriculture & dairy to automotive to airlines which can cost US dearly as a whole as compared to lost profits by not selling at same price as international BRENT prices. US does not really care about the profit of oil although the producers of oil do but as policy priorities go, their number one priority is to keep the oil price stable so its economy doesn't suffer any shock and introduce inflation and the best way to do that is underbid international producers such as OPEC so they don't get uppity and start throwing its weight around. On a tangent, now the Saudis realize that they cannot corner the market anymore. They have effectively lost their ability to move the markets to terms more favorable to Saudis. That is why they are in a desperate mode to diversify their economy before they lose any more control. They are facing a multiple whammy of increasing US production, iranian production, and foreseeable declining/flattening demand for oil due to more EVs and renewable power stations coming online with each passing year in response to climate change and volatility in oil prices.

So the best way to keep the prices low is to keep producing a lot and keep the Mideast region stable. As long as those two requirements are met, US can enjoy low oil prices and keep its inflation rate low.

chetak
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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 25 Jun 2019 06:21

hgupta wrote:
vimal wrote:^^ If US is finally drilling more oil then what use are all these ME abduls to them?


The US needs to keep the price of oil low. The US does not depend on exporting oil to other countries to prop up its economy. Their number one enemy in terms of economic impact is rapidly rising inflation and oil price is the biggest driver (but not the only one, just the biggest) in any rising inflation. It just needs to keep the oil prices stable because rising oil prices have a ripple effect throughout its economic sectors from agriculture & dairy to automotive to airlines which can cost US dearly as a whole as compared to lost profits by not selling at same price as international BRENT prices. US does not really care about the profit of oil although the producers of oil do but as policy priorities go, their number one priority is to keep the oil price stable so its economy doesn't suffer any shock and introduce inflation and the best way to do that is underbid international producers such as OPEC so they don't get uppity and start throwing its weight around. On a tangent, now the Saudis realize that they cannot corner the market anymore. They have effectively lost their ability to move the markets to terms more favorable to Saudis. That is why they are in a desperate mode to diversify their economy before they lose any more control. They are facing a multiple whammy of increasing US production, iranian production, and foreseeable declining/flattening demand for oil due to more EVs and renewable power stations coming online with each passing year in response to climate change and volatility in oil prices.

So the best way to keep the prices low is to keep producing a lot and keep the Mideast region stable. As long as those two requirements are met, US can enjoy low oil prices and keep its inflation rate low.


x posted from the american thread


Donald J. Trump Verified account @realDonaldTrump

China gets 91% of its Oil from the Straight, Japan 62%, & many other countries likewise. So why are we protecting the shipping lanes for other countries (many years) for zero compensation. All of these countries should be protecting their own ships on what has always been....
5:08 AM - 24 Jun 2019

17,680 Retweets
77,219 Likes





Donald J. Trump Verified account @realDonaldTrump

6h6 hours ago

....a dangerous journey. We don’t even need to be there in that the U.S. has just become (by far) the largest producer of Energy anywhere in the world! The U.S. request for Iran is very simple - No Nuclear Weapons and No Further Sponsoring of Terror!

vimal
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Re: Oil & Natural Gas: News & Discussion

Postby vimal » 25 Jun 2019 06:53

hgupta wrote:
vimal wrote:^^ If US is finally drilling more oil then what use are all these ME abduls to them?


The US needs to keep the price of oil low. The US does not depend on exporting oil to other countries to prop up its economy.
...
So the best way to keep the prices low is to keep producing a lot and keep the Mideast region stable. As long as those two requirements are met, US can enjoy low oil prices and keep its inflation rate low.


Unkils actions on the ground are exact opposite of what you've stated. If stable ME is what Unkil wanted then attacking eyeraq, lebnon, syria, eyeran and propping up Daesh would be the last thing to do. With the new found shale oil Unkil can actually completely destroy ME and rule the oil cartels.

chetak
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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 25 Jun 2019 07:42

vimal wrote:
hgupta wrote:
The US needs to keep the price of oil low. The US does not depend on exporting oil to other countries to prop up its economy.
...
So the best way to keep the prices low is to keep producing a lot and keep the Mideast region stable. As long as those two requirements are met, US can enjoy low oil prices and keep its inflation rate low.


Unkils actions on the ground are exact opposite of what you've stated. If stable ME is what Unkil wanted then attacking eyeraq, lebnon, syria, eyeran and propping up Daesh would be the last thing to do. With the new found shale oil Unkil can actually completely destroy ME and rule the oil cartels.



shale oil has severe environmental consequences and cannot be productionalised so easily without major political and social repercussions.

but the mere threat is enough to panic the mid east producers.

trumps transactional politics is now feared and dreaded by the ameriki's traditional allies, what with trump holding up the ugly mirror of realpolitik truth about the way it was and the way it's going to be.

earlier, these very same guys would always mock the "gauche" amerikis at each and every opportunity that they got.

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 30 Jun 2019 10:54

The US has turned into the largest producer of shale oil and gas. It’s promotion started with the Obama administration and is continuing. The production is sufficient to keep oil prices stable between $50-$70/barrel. This is good for India. US oil is less than $50/barrel.

Peregrine
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Oil & Natural Gas: News & Discussion

Postby Peregrine » 27 Jul 2019 00:26

Reliance's refinery complexity index rises to 21.1%

The company in its latest annual report said the Jamnagar supersite ranks first in the world in complexity barrels, aided by best-in-class refinery and petrochemicals integration.

The complexity of Reliance Industries giant refinery complex at Jamnagar has risen by over 66 per cent to 21.1, giving it the ability to process a wide basket of crude oil and boosting its margins.

The company in its latest annual report said the Jamnagar supersite ranks first in the world in complexity barrels, aided by best-in-class refinery and petrochemicals integration.

Complexity index (CI) designates the capabilities of a refinery to upgrade the lowest quality crude to the highest quality refinery products, including fuels and petrochemicals.

"Complexity index of Jamnagar supersite, as per KBC, a global refinery consultant, has increased from earlier 12.7 to 21.1 or a 66.1 per cent boost with the start-up ofJamnagar expansion projects, including ROGC and downstream units, Paraxylene complex and Petcoke Gasification complex," it said. This gives the firm an "ability to run a wide basket of crudes".

The company has two refineries at Jamnagar -- a 33 million tonnes a year older unit that caters to the domestic market and a 35.2 million tonnes only-for-exports unit. Its total refining capacity of 68.2 million tonnes is just a shade lower than 69.2 million tonnes capacity with the country's biggest oilfirm, Indian Oil Corp (IOC).

Commenting on the annual report, Morgan Stanley said the company has a vision of being one of the top five petrochemical companies in the world. "RIL refinery processed about 170 different crudes, up from 150 during the past two years," it said. "RIL's refinery sales volume declined (to 54 per cent from 60 per cent), as domestic and captive sales increased."

In 2018-19, RIL's refining margin at USD 9.2 per barrel remained relatively strong even in a dynamic volatile market. "RIL maintained a significant premium of USD 4.3 a barrel over the benchmark Singapore complex margins. RIL's superior refining margins are a result of superior product slate, robust risk management, and higher secondary unit throughputs," the company said in its annual report.

Among the refineries started in recent years, state-owned Bharat Petroleum Corp Ltd's Bina refinery in Madhya Pradesh has CI of close to 10 while Hindustan Petroleum NSE 3.22 % Corp Ltd's (HPCL) Bhatinda unit has a complexity of 12. IOC's latest refinery at Paradip in Odisha has a complexity factor of 12.2, making it capable of processing cheaper, higher sulphur and heavy crude.

In January 2018, RIL announced the successful commissioning of the world's first-ever Refinery Off-Gas Cracker (ROGC) complex of 1.5 million tonnes per annum capacity. The ROGC complex uses off-gases from Jamnagar refineries as feedstock, helping RIL emerge as one of the most efficient producers of polymers in the world.

Petcoke gasification project, one of the largest clean initiatives in the world, uniquely turned Jamnagar refineries 'bottom-less' by converting low-value petroleum coke into syngas (synthesis gas).

"One of the most complex projects, it has integrated 83 process units with refineries and other downstream units operating in extreme conditions, with temperatures ranging from (-)190°C to (+)1,480°C, and pressure fluctuating from vacuum to 120 standard atmosphere," the annual report said.

Reliance's refining complex, which is the largest in the world, is designed to operate solely on desalinated seawater, thus making freshwater resources from lakes and rivers available for communities to use.

CheersImage

Mukesh.Kumar
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Re: Oil & Natural Gas: News & Discussion

Postby Mukesh.Kumar » 12 Aug 2019 14:24

ARAMCO buys 20% stake in Reliance oil refining business for $15 billion.

Bloomberg

Reliance to sell of 20% of oil-to-chemicals division to Aramco
Deal includes 1.24 million barrels-a-day Jamnagar complex


The world’s biggest crude producer will soon own a part of the world’s biggest oil refinery.

Saudi Aramco will buy a 20% stake in the oil-to-chemicals business of India’s Reliance Industries Ltd., including the 1.24 million barrels-a-day Jamnagar refining complex on the country’s west coast, Reliance Chairman Mukesh Ambani said at the company’s annual general meeting in Mumbai. Reliance values its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the stake.


The move is the latest in a spree of Aramco refinery investments as the company plans to double its processing network to handle as much as 10 million barrels a day by 2030, locking in friendly buyers for the kingdom’s crude. As part of the deal, Reliance will agree to a long-term purchase of 500,000 barrels of crude a day from Aramco, Ambani said.


In a way ARAMCO is actually muscling its way into downstream refining. For $15 bn they have secured for themselves refining capacity at once of the most efficient planes in the world for 0.5 million bbls daily

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Re: Oil & Natural Gas: News & Discussion

Postby Mukesh.Kumar » 12 Aug 2019 14:33

Taking ballpark industry estimates today, cost for a 500, 000 refining capacity is USD 5 bn. So need to see what premium Relisnce is actually charging. What else is bundled in the deal.

But whatever said and done this is one id the biggest FDI deals and should go a long way in reducing the $32 bn debt if Reliance.

Karthik S
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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 12 Aug 2019 14:34

So Jamnagar refinery is off target list of pakis I assume?

hanumadu
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Re: Oil & Natural Gas: News & Discussion

Postby hanumadu » 12 Aug 2019 15:48

I hope they use most of the money to clear some of the debt. And also pay the taxes resulting out of the deal.

kit
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Re: Oil & Natural Gas: News & Discussion

Postby kit » 12 Aug 2019 23:27

chetak wrote:
hgupta wrote:







So i suppose Donald is going to mothball all the American fleets ?!! Why do they need to be the "self-appointed" policeman of the seas?

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Re: Oil & Natural Gas: News & Discussion

Postby Rishirishi » 14 Aug 2019 04:45

Mukesh.Kumar wrote:Taking ballpark industry estimates today, cost for a 500, 000 refining capacity is USD 5 bn. So need to see what premium Relisnce is actually charging. What else is bundled in the deal.

But whatever said and done this is one id the biggest FDI deals and should go a long way in reducing the $32 bn debt if Reliance.


Ambni is ahed of the game as usual. Battery operated cars will soon replace petroleum cars and transport. The Saudis are securing them selves a marketshare and the Ambanis get to reduce debt.

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 14 Aug 2019 06:08

Indeed Ambani is ahead of the game and has made plans for life after EV's.

Reliance Industries chairman Mukesh Ambani’s decision to sell 20 percent stake of his firm’s oil-to-chemicals business to Saudi national oil company Aramco will allow RIL to have a strong presence in the global petrochemicals market dominated by western oil giants. Petrochemicals market that is pegged at over $540 billion in 2018 is expected to grow at the compound rate of more than 8% over the next decade. There are synergies between the operations of two companies as Reliance is shifting its focus from oils-to-chemicals while Aramco has the world’s largest petrochemical cracker plant, said a top former official.

Global petrochemicals market includes products like methanol, ethylene, propylene, butadiene, benzene among others is expected to grow to nearly $1 trillion by 2025. However, it is dominated by western companies like ExxonMobil, British Petroleum, Royal Dutch Shell, Chevron, LyondellBasell and others like Mitshui Chemicals.

Reliance has the world’s largest integrated refinery in Jamnagar, Gujarat with state of the art technology that can process even heavy and sour crude oil.

RIL has already announced that its Jamnagar refinery will only be producing aviation turbine fuel (ATF) and high-value petrochemicals.

“This signifies perfect synergy between the world’s largest oil producer and the world’s largest integrated refinery and petrochemicals complex,” said Mukesh Ambani while addressing the 42nd AGM of RIL.

“Reliance has developed a future-ready Oil-to-Chemical strategic vision to, progressively, transform the Jamnagar refinery from a leading producer of fuels to chemicals,” the company said in its annual report a day before its annual general body meeting. The deal with Aramco will allow the company to take advantage of this decision.

“There will be synergy between Aramco and Reliance and Reliance may take part in Aramco’s large petrochemical crackers. Because RIL also has petrochemicals and Aramco has the world’s largest petrochemical cracker,” said SC Tripathi, former petroleum secretary.

The combined might of Reliance Industries and Saudi Aramco will allow them to exert more influence in the global petrochemicals market dominated by western players.

“Synergies will be there. Because both of them are large producers of petrochemicals then they can possibly control the international market to a large extent,” SC Tripathi told Financial Express Online.

Ambani had bid for LyondellBasell and missed out on it in 2009. He must be ruing the lost opportunity.

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Re: Oil & Natural Gas: News & Discussion

Postby Kashi » 19 Aug 2019 07:22

ARAMCO buying a stake in Reliance, would this in any form affect the likelihood of Reliance buying Iranian crude in the future?

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 19 Aug 2019 11:57

The Reliance refinery is capable of processing very heavy (sour) crude. Recall that they were a major buyer of Venezeualean crude which is almost exclusively heavy crude. They stopped purchases after US sanctions. The advantage is lower prices for crude which helps generate higher refining margins. So Saudi investment in Reliance may not alter the business case for sour crude. Ambani needs the cash for repayment of loans taken for telecom investments which is generating only marginal positive cash flows. Nowhere near what is needed. His telecom investments as of March 2019 stand at Rs 3,60,000 cr while his entire investment in the oil business is only Rs 3,50,000 cr! The other thing is Ambani's stake in Reliance is now only around 40%. So any fresh infusion of money from Saudis would mean further loss of control. Of course there is a possibility that a chunk of FII money is actually his masquerading as PNote investment. Thus effectively he may still own 51%. That said, as he raises money from Aramco he cannot but cede control to it. But he may be okay with it. In the long run media, entertainment, sport and carriage of such content together a fair share of organised retail may be the way forward. He may ringfence telecom, retail business from oil where he might not be averse to ceding control. Aramco will be quite happy to bide their time. Their game plan would be to use Jamnagar complex as an oil to chemical business bypassing transport fuel barring aviation. The world will still need plastics and synthetic fabrics even if electric vehicles replace IC engines.

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Re: Oil & Natural Gas: News & Discussion

Postby pankajs » 19 Aug 2019 12:05

Kashi wrote:ARAMCO buying a stake in Reliance, would this in any form affect the likelihood of Reliance buying Iranian crude in the future?

To the extent that Reliance was/is a customer of Iranian crude.

This deal provides an assured market for the Saudi crude help them maintain their share of the Indian crude market.

Peregrine
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Oil & Natural Gas: News & Discussion

Postby Peregrine » 19 Aug 2019 17:48

chetak Ji and schinas Ji :

Your Posts chetak » 19 Aug 2019 16:18 & schinnas » 19 Aug 2019 16:35 on the J&K Union Territory-2019 Thread

1. How Reliance Industries manages to keep its refining margins high

2. World Oil Review 2018 ENI

Cheers Image

chetak
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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 19 Aug 2019 18:30

Karthik S wrote:So Jamnagar refinery is off target list of pakis I assume?


it was always off the list.

motabhai is anything but stupid.


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