Oil & Natural Gas: News & Discussion

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panduranghari
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Re: Oil & Natural Gas: News & Discussion

Postby panduranghari » 22 Apr 2018 12:31

Petroyuans crash at birth explained

Petroyuan's Lacklustre Birth ExplainedEvery time I read that the yuan is going to dethrone the dollar and that China is going to monopolize the oil market in its local currency, I remember those films and reports of the late 1980s predicting the imminent Japanese supremacy and how it would absorb the West.

Today, more than two decades later, Japan continues in secular stagnation.

As we have explained here, China has no “nuclear option” against the US. However, there has been a lot of hype about dethroning the dollar with a yuan oil contract.

Let s start with the facts. The US dollar is the most widely used currency globally and growing in use. According to the BIS (Bank of International Settlements), transactions in US dollars account for almost three times more than those in euro and twenty times more than in yuan.

The biggest mistake made by China in its launch of the yuan oil contract has been to think that a currency with capital controls and an expensive market that trades for barely a few hours a day would be a fantastic incentive for global oil transactions.

The “yuan oil contract” has crashed at birth, and it is normal.

It is monstrously expensive: more than twice the cost per lot compared than US dollar ones. The transaction fee for Shanghai futures is about $3.20 per lot, compared with about $1.50 for U.S. oil contracts, according to Bloomberg.
It is not “backed by gold“. China’s total gold reserves are a fraction of its money supply (less than 0.007%) and if the yuan collapses, the nascent “Petroyuan” falls with it. The mirage of thinking that the yuan is guaranteed by gold reserves is only comparable to Flat Earth theories.
It trades for only a few hours. One hour and a half in the morning, one hour and a half in the afternoon and a few hours at the close of the Chinese market. While the rest of the international oil contracts have twenty-four-hours trading, the Chinese local currency energy market (INE) trades eight hours a day. The implantation and internationalization of a currency does not happen because it is decided by a government
It has excessive margin requirements, more than double those of the equivalent markets in US dollars. The margin required to participate in China’s futures is 7% of the contract value, rising to 10 percent the month before delivery and 20 percent in the last three days before delivery. In the U.S., the margin is 3.4% of the contract value, according to Goldman Sachs and Bloomberg.
To the above, we must add two other barriers. A translation exchange to other currencies of 3% and, above all, an economy that has capital controls in which the Chinese government can decide by decree if you can or cannot get your money back when it pleases you.
Indeed, the volumes in the oil contract show those problems, and the official data not only indicates a very low percentage of the market but also virtually inexistent open interest.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 04 May 2018 11:12

Venezuela Lures India With 30% Discount on Crude Oil Purchased With Petro

https://sputniknews.com/latam/201805011 ... oil-petro/

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 04 May 2018 11:19

I know Bitcoin is banned by the govt. But in this case, as it's G2G deal, govt. can trade in it. It's a win win. Venezuela desperately needs money, and we need to keep oil prices down.

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Re: Oil & Natural Gas: News & Discussion

Postby pravula » 04 May 2018 11:23

Karthik S wrote:I know Bitcoin is banned by the govt. But in this case, as it's G2G deal, govt. can trade in it. It's a win win. Venezuela desperately needs money, and we need to keep oil prices down.

Its not bitcoin.

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 04 May 2018 11:51

You are right, petro coin through blockchain tech.

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Re: Oil & Natural Gas: News & Discussion

Postby pravula » 05 May 2018 09:13

Karthik S wrote:You are right, petro coin through blockchain tech.

Yes, cryptocurrency. Every one and their grandmom has their own cryptocurrency now a days.

https://coinmarketcap.com/all/views/all/

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 05 May 2018 23:54


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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 06 May 2018 00:01

Karthik S wrote:I know Bitcoin is banned by the govt. But in this case, as it's G2G deal, govt. can trade in it. It's a win win. Venezuela desperately needs money, and we need to keep oil prices down.


Venezuela is a political and economic mess. Conditions are deteriorating and the place seems to be governed even worse than TSP or Zimbabwe. Offer to buy oil in Rupees, so they turn around and buy food and medicine from India. It will also strengthen the Rupee. That is a win-win for everyone.

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 06 May 2018 00:04

Mort Walker wrote:
Karthik S wrote:I know Bitcoin is banned by the govt. But in this case, as it's G2G deal, govt. can trade in it. It's a win win. Venezuela desperately needs money, and we need to keep oil prices down.


Venezuela is a political and economic mess. Conditions are deteriorating and the place seems to be governed even worse than TSP or Zimbabwe. Offer to buy oil in Rupees, so they turn around and buy food and medicine from India. It will also strengthen the Rupee. That is a win-win for everyone.


If they are willing to Rupee and discount, indeed.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 09 May 2018 10:45

Energy prices are rising due to US withdrawing from Iran Deal , India will have to suffer more deficit now

https://www.bloomberg.com/energy

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 09 May 2018 21:31

Austin wrote:Energy prices are rising due to US withdrawing from Iran Deal , India will have to suffer more deficit now

https://www.bloomberg.com/energy


Wait a minute. I thought you said it was good for everybody if oil prices were higher?

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 09 May 2018 21:41

Mort Walker wrote:
Austin wrote:Energy prices are rising due to US withdrawing from Iran Deal , India will have to suffer more deficit now

https://www.bloomberg.com/energy


Wait a minute. I thought you said it was good for everybody if oil prices were higher?


That aside, we really need to look into Venezuela's offer of 30% discount if paid through their cryptocurrency. It will be test of the NM govt. if it stops trade with Iran because of this.

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 10 May 2018 09:02

Crypto currencies are illegal in India and wildly vary in price. It is utter crap to even consider it. Venezuela is in a mess of its own doing and makes places like Pakistan as well governed. Either Venezuela accepts the INR or no deal.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 10 May 2018 09:14

India would need refineries to blend Venezuela crude blend , each blend have their own unique content sulpher content etc and need refineries , changes can be done but can take long time.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 10 May 2018 09:39

Austin wrote:India would need refineries to blend Venezuela crude blend , each blend have their own unique content sulpher content etc and need refineries , changes can be done but can take long time.


The reliance refineries at jamnagar may already be versatile enough to handle venezuelan crude. It already handles the heavy iranian crude which usually sells at a discount.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 10 May 2018 09:55

Mort Walker wrote:Crypto currencies are illegal in India and wildly vary in price. It is utter crap to even consider it. Venezuela is in a mess of its own doing and makes places like Pakistan as well governed. Either Venezuela accepts the INR or no deal.


Crypto currencies dealing will give the enemies of the current GoI a huge stick to beat them with. Even the fact that venezuela proposed such a deal is highly suspicious, potentially risky and very dangerous. Especially for India, seen in the light of the run up to 2019, it could have fatal consequences for this govt.

Any deal with distressed countries like venezuela has to be clean, above board, traceable and above all, transparent in its entirety.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 11 May 2018 00:24

chetak wrote:
Austin wrote:India would need refineries to blend Venezuela crude blend , each blend have their own unique content sulpher content etc and need refineries , changes can be done but can take long time.


The reliance refineries at jamnagar may already be versatile enough to handle venezuelan crude. It already handles the heavy iranian crude which usually sells at a discount.


Is there any evidence that it can handle Venezuelan crude ? Any offial info to support this ?

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 11 May 2018 00:28

Mort Walker wrote:
Austin wrote:Energy prices are rising due to US withdrawing from Iran Deal , India will have to suffer more deficit now

https://www.bloomberg.com/energy


Wait a minute. I thought you said it was good for everybody if oil prices were higher?


Not for India who is banking on low prices to cut its deficit.

Yah but should be good for shell chevron rosneft Exxon opec and reliance if Brent reaches 100 usd and even shale oil producers they won’t complain

But like all good things in life low oil price or high oil price won’t sustain if it does not find a balance we are look at 2008 like crises with rising interest rates

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 12 May 2018 09:50

Back to $100? Crude oil prices to soar as Iran crisis adds to global supply headache
Prices for crude may skyrocket to $100 per barrel as soon as next year as major supply risks in Iran and Venezuela are likely to strain global energy markets, say analysts at Bank of America Merrill Lynch. According to the bank, Brent futures, currently hovering around $77, will reach $90 in the second quarter of 2019 due to the larger cut in world inventories. However, it’s reported that prices for black gold may soar even higher, as an agreement between the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, to slash output is still helping to reduce supply. At the same time, deteriorating conditions in Iran may push prices to $100, a level not seen since 2014, according to analysts.

“Looking into the next 18 months, we expect global oil supply and demand balances to tighten, driven by the ongoing collapse in Venezuelan output,” the report said. “In addition, there are downside risks to Iranian crude oil exports. Plus we see a high likelihood of OPEC working with Russia in 2019 to set a floor on oil prices.”


Brent crude hit the highest level over the past three years shortly after US President Donald Trump announced the US was pulling out the nuclear agreement reached three years ago, and would re-impose its sanctions on the Islamic republic. Iran reportedly produces four percent of global oil supplies with daily output of about 3.8 million barrels.

The analysts expect OPEC and Russia to gradually scale down the amount of oil they are holding off the market by 450,000 barrels a day next year. However, if the allies do not step back from their current agreement to withhold 1.8 million barrels day, global markets will get tighter and prices will spike.

The bank says Venezuela's production will drop by 500,000 barrels a day over the following 20 months, but a major drop in Iranian exports is excluded from the forecast. If a new nuclear pact is not sealed within next six months, global oil markets will tighten further. According to the experts’ projections, daily oil consumption across the globe will increase by 1.5 million barrels in 2018 and 1.4 million barrels next year.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 23 May 2018 12:26

This has been a storm in a teacup.

If venezuela already has agreements with other countries to accept payments in their local currencies, then why try and pressurize India into payments in cryptocurrency??

Are we lame duck pushovers?? that even a two bit failed country like venezuela can think of strongarming us??

VENEZUELA WILLING TO ACCEPT OIL PAYMENTS IN RUPEES: ENVOY



VENEZUELA WILLING TO ACCEPT OIL PAYMENTS IN RUPEES: ENVOY

Tuesday, 22 May 2018

Venezuela willing to accept oil payments in rupees: Envoy
Venezuela is willing to accept oil payments from India in rupees, its envoy to New Delhi said today, suggesting that doing so will help both the countries to bypass the sanctions imposed by the United States.

Augusto Montiel said the US sanctions have hit oil production in Venezuela and criticised Washington for "interfering" in its domestic affairs.

Venezuela wants India to buy its oil and pay in rupees, which the South American country can in turn use for trading India food products and medicines.

It has a similar arrangement with Turkey, China and Russia. A proposal to start payments in rupees was discussed with India's finance and petroleum ministries in March

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 23 May 2018 13:38

If they agree to trade in Rupee, well and good. I'd highly hope govt. goes ahead and buys oil. High fuel prices with 1 year to go for elections is bad for any govt. Also, middle class and below are feeling the heat of Rs 80+ cost of petrol

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Re: Oil & Natural Gas: News & Discussion

Postby arun » 23 May 2018 19:58

arun wrote:“The Abu Dhabi National Oil Company (ADNOC) and the Indian Strategic Petroleum Reserves Ltd (ISPRL), agreed on Wednesday to establish a strategic crude oil storage in the southern Indian city of Mangalore. The agreement mandated to store crude oil for emergency needs, covers the storage of 5.86 million barrels of ADNOC crude oil in underground facilities, at the Karnataka facility.” :

UAE, India sign historic partnership agreement



After the above post of 26 Jan 2017 on Page 33 of this thread, progress on the ADNOC and ISPRL deal with the first oil shipment reaching Mangalore:

ADNOC and ISPRL celebrate arrival of first crude oil shipment for Mangalore strategic reserve

5/21/2018

Abu Dhabi, UAE – A delegation from the Abu Dhabi National Oil Company (ADNOC) attended, a special event at the Karnataka oil storage facility, in the Indian city of Mangalore, to celebrate the unloading of the first cargo of ADNOC crude oil sent to the Indian Strategic Petroleum Reserves Ltd (ISPRL).

The cargo, which was loaded in Abu Dhabi at an event witnessed by H.E. Dr. Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO, and H.E. Dharmendra Pradhan, Indian minister for petroleum and natural gas, arrived in Mangalore following a short, 6-day voyage.

Abdulla Salem Al Dhaheri, ADNOC’s director of marketing, sales and trading, said, “Our teams, from ADNOC and ISPRL, have worked tirelessly to ensure the successful implementation of this important strategic project. ADNOC is already a trusted and reliable supplier of crude oil and refined products to many customers and partners in India, and we are proud to deepen this longstanding relationship through another important and strategic collaboration.”

The agreement between ADNOC and ISPRL, which was initiated in January 2017 during a visit to India by a high-ranking UAE delegation, led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the UAE armed forces, covers the storage of 5.86 MMbl of ADNOC crude oil in underground facilities, at the Karnataka facility. The first shipment, of approximately 2 MMbl of crude oil, will be followed by further shipments after India’s annual monsoon season.

HPS Ahuja, CEO and managing director of ISPRL, said, “Todays unloading of ADNOC crude oil marks another important milestone for ISPRL, as we deliver on our mandate of establishing strategic crude oil storage facilities that enhance India’s energy security and serve as a cushion during any external supply disruptions. Our agreement with ADNOC builds on the rich history between our nations and opens new opportunities for further partnership and engagement between the UAE and India, one of the world’s fastest-growing economies.”

ISPRL has built and will operate three crude oil storage facilities, constructed in underground rock caverns located on the East and West coasts of India. Crude oil from these caverns can be supplied to Indian refineries, either through pipelines, or through a combination of pipelines and ships. While part of the stored oil can be used for commercial purposes by ADNOC, the major part will be reserved for strategic purposes.

Indian energy demand is forecast, by the International Energy Agency (IEA), to grow by more than any other country in the period to 2040, propelled by an economy that will grow to more than five-times its current size and by population growth that will make it the world’s most populous country. Indian energy consumption is expected to more than double by 2040, accounting for 25% of the rise in global energy, and the largest absolute growth in oil consumption.

India is 82% dependent on imports to meet its crude oil needs, 8% of which is supplied by the UAE. In addition to helping to ensure energy security, the oil storage facilities enable ADNOC to efficiently and competitively meet market demand across Asia.



Article from here:

World Oil

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 25 May 2018 17:56

Venezuela wants to trade with India using Indian currency

https://www.financialexpress.com/econom ... s/1179380/

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 25 May 2018 17:59

expect oil prices to fall in near future

Saudi Arabia: OPEC and Russia to pump more oil 'in the near future'

http://money.cnn.com/2018/05/25/news/ec ... index.html

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Re: Oil & Natural Gas: News & Discussion

Postby Suraj » 25 May 2018 21:15

Windfall oil tax on ONGC in offing to soften fuel prices
The government may levy a windfall tax on oil producers like Oil and Natural Gas Corp (ONGC) as part of a permanent solution it is working on for moderating the spiralling retail prices of petrol and diesel. The tax, which may come in the form of a cess, will kick in the moment oil prices cross $70 per barrel, sources privy to the development said.

Under the scheme, oil producers, who get paid international rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing the $70-per-barrel mark. The revenues so collected would be used to pay fuel retailers so that they absorb spikes beyond the threshold levels, they said.

The UK in 2011 raised the tax rate to be applied to North Sea oil and gas profits when the price is above $75 per barrel.

China on April 1, 2006, began levying the special upstream profit tax on domestic oil producers to redistribute and allocate the windfall income enjoyed by the oil companies and subsidise disadvantaged industry and social groups that are most affected by soaring crude oil prices. It in 2012 raised the windfall tax threshold to $55 per barrel.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 28 May 2018 21:13

India to ignore US sanctions on Iran, Venezuela: minister

NEW DELHI: India will keep trading with Iran and Venezuela despite the threat of fallout from US sanctions against the two countries, Foreign Minister Sushma Swaraj said Monday.

Swaraj, asked at a news conference whether US action against Iran and Venezuela would damage India, said the country would not make foreign policy “under pressure.”

But Swaraj said New Delhi did not believe in “reactionary” policies and would not be dictated to by other countries. “We don’t make our foreign policy under pressure from other countries,” she told a news conference. “We believe in UN sanctions but not in country-specific sanctions.”

Media reports have speculated India could revive a rupee-rial payment arrangement with Iran to shield exporters from the heat of US sanctions.
Swaraj also said India would continue trading with Venezuela, but there was no plan to use its local cryptocurrency in oil trade.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 04 Jun 2018 17:53

India received the first batch of LNG from Gazprom under a long-term contract
Economics and business June 4, 13:55 UTC + 3

The contract provides for the supply of 2.5 million tonnes of LNG per year for 20 years

MOSCOW, June 4. / TASS /. The Indian state-owned oil and gas company Gail received the first batch of LNG from Gazprom on a long-term contract on Monday, the Indian Energy Minister Dharremdra Pradhan said in his Twitter .

According to him, Gail under the contract with Gazprom Marketing & Trading will purchase 2.85 million tons of LNG per year.

"It is also gratifying that Gazprom and Gail earlier amended the contract for LNG supplies, increasing the volume of purchases and adjusting prices, and at a later stage it will allow India to import gas from the Yamal LNG project," the minister wrote.

Earlier it was reported that Gazprom would purchase 2-2.5 million tons of liquefied gas per year from Yamal LNG.

This is the third LNG supply, which Gail receives this year under long-term contracts, the minister specified.

The contract between the Indian company and Gazprom was signed in 2012. It provided for the supply of 2.5 million tonnes of LNG per year for 20 years. Then the term of the contract was extended to 25 years.



Подробнее на ТАСС:
http://tass.ru/ekonomika/5260737

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Re: Oil & Natural Gas: News & Discussion

Postby panduranghari » 04 Jun 2018 17:59

https://www.peakprosperity.com/podcast/ ... othing-yet

This is a very good interview from a guy who backs everything he says with data which is freely available. Do give it a listen.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 04 Jun 2018 18:20

India gets cheapest LNG as Russia's Gazprom begins supplies

https://timesofindia.indiatimes.com/bus ... 450442.cms
DAHEJ/GUJARAT: India on Monday received its cheapest LNG under a long-term deal as Russia began shipping natural gas at a delivered price of close to $7 per million British thermal unit.

At current oil prices, the Russian rate is $1.5 per mmBtu less than the price at which Qatar, India's oldest supplier, delivered liquefied natural gas (LNG). Russian supplies are also cheaper by $1-1.5 per mmBtu than the LNG sourced from Australia and the US.


Oil Minister Dharmendra Pradhan, who flew in here to witnessed arrival of first LNG ship under a 20-year import deal with Gazprom, termed the event as "Golden Day" in the India's energy pursuit.

State-owned gas utility GAIL India Ltd had in January taken advantage of Russian company's inability to deliver LNG from the previously agreed Schtokman project in the Barents Sea, to renegotiate price agreed in 2012.

GAIL also deferred taking deliveries of full 2.5 million tonnes a year LNG. The contract period was extended by three years to accommodate the supplies not taken in initial years as well as get an additional 2 million tonnes over-and-above the 50 million tonnes it had agreed to take in 2012 over the 20 year contract period.

LNG carrier 'LNG Kano ', bringing cargo from Russian supplier Gazprom, docked at Petronet LNG Ltd's import facility here this morning.
Gazprom supplied the 3.4 trillion British thermal unit (TBtu) of cargo from Nigeria. "First we renegotiated price of LNG from Qatar, then reworked Australian supplies and now gas from Russia under renegotiated terms has started to flow," Pradhan said after receiving the LNG cargo.
India will import LNG worth an estimated $25 billion over the contract period from Russia, he said. "Gazprom price (after being reworked) is very competitive."


While he did not give details, sources with direct knowledge of the development said the reworked price at current oil rate comes to close to $7 per mmBtu, which is cheaper than the delivered price of LNG under the 25-year deal with RasGas of Qatar.Also it is cheaper than Gorgon LNG from Australia and Henry-hub linked US LNG, supplies of which started only a few weeks back.

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Re: Oil & Natural Gas: News & Discussion

Postby hanumadu » 04 Jun 2018 20:18

What are we going to use this LNG for? Will all the LNG we are importing now be enough to operate our gas power plants at full capacity? There is 20 billion dollars of NPAs there. What will be the cost of power come to with $7/mBTU gas?

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 04 Jun 2018 23:59

Perhaps LNG power plants will replace exisitng coal thermal. LNG has good efficiency and high plant load factors. It beats all other energy sources, including RES, except nuclear.

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Re: Oil & Natural Gas: News & Discussion

Postby disha » 05 Jun 2018 01:15

^Mort'ji., I do not think LNG can replace the coal thermal, that is a massive capacity replacement.

I think it will be a good supplement. Base load on thermal and peak load on LNG.

Hanumadu'ji., yes - that too. The existing utilization of power plants is measly 43%. https://www.hindustantimes.com/india-news/more-than-half-of-india-s-gas-based-power-plants-idle-piyush-goyal/story-LUiRJv7cEesH0USiH2pinN.html

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 05 Jun 2018 09:58

At $7 plus per MBTU the generation cost will be quite high but less than diesel. Only those gas based power stations which have power purchase agreement with a utility company where fuel cost is allowed to be passed through can afford it. I think the LNG will be used as domestic fuel under pipeline based city gas distribution system. But then again is it a cheaper mode of delivery of cooking fuel in comparison to LPG delivered in cylinders carted by delivery boys riding tri cycle? I guess not.

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Re: Oil & Natural Gas: News & Discussion

Postby arvin » 05 Jun 2018 21:18

More likely to be for PNG( piped natural gas). Gov may want to divert LPG cylinders for rural use, while urban will get piped gas. More LNG terminals are in pipeline, from present 4.


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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 16 Jun 2018 00:01

https://marketrealist.com/2018/06/lower ... s-for-2019
Lower US Crude Oil Production Forecasts for 2019

The EIA (U.S. Energy Information Administration) released its weekly US crude oil production data on June 13. The EIA reported that US crude oil production increased by 100,000 bpd (barrels per day) to a record high of 10.9 MMbpd (million barrels per day) on June 1–8. The production increased by 1.6 MMbpd or ~16.8% from a year ago.The EIA released its STEO (Short-Term Energy Outlook) report on June 12. The EIA estimates that US crude oil production could average 10.79 MMbpd in 2018, which is 0.6% higher than the May estimates. The EIA also estimates that US crude oil production could average 11.76 MMbpd in 2019, which 0.8% lower than the May estimates. US crude oil production would hit the highest annual averages in 2018 and 2019 if the projections are achieved.US crude oil production is estimated to rise 21.8% by 1.93 MMbpd from January 2017 to December 2018. If the output increases at that rate, it could offset more than 100% of the ongoing supply cuts by major oil producers.
The US crude oil output has risen for the 16th consecutive week. Record US crude oil production and expectations of higher crude oil production from Saudi Arabia and Russia have been weighing on oil prices. US crude oil prices have declined ~8% since May 21. All of these factors could pressure crude oil prices. Lower oil prices could slow down crude oil drilling and production activity in the US.However, the possibility of new sanctions on Iran and Venezuela and supply outages exceeding supply growth from the US could support oil prices.The EIA (U.S. Energy Information Administration) estimates that US crude oil exports increased by 316,000 bpd (barrels per day) to 2 MMbpd (million barrels per day) on June 1–8. The exports increased by 1.3 MMbpd or 181% from a year ago.US crude oil exports reached a record high of 2.6 MMbpd during the week ending May 11. The exports have been rising since the oil export ban was lifted. The exports were also supported by the increase in domestic oil production and a wider spread between Brent and WTI oil prices.

Mort Walker
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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 16 Jun 2018 14:40

Austin wrote:There is a difference between oil reserves and what is ex tractable , US Shales has been loss making since its inception only survived because of low interest rates credit available , that is all set to change with Fed rising interest rates.

Shale is a serious environment issue for US that has caused ground water contamination ,earthquakes etc The talk of Oil extraction is not a fixed technology has been going on for long time but Shale still remains a business in red period.

I will wait for the magical time where US would extract all those magicial shale oil from ground and export it and make it competitive enough to compete with OPEC and Russia , It can barely export LNG to Europe which cost 3x times than piped gas.

Till then US remains a net importer of Energy , Let it first meet its own need then think about exporting ! Good Luck to them


You keep beating the dead horse about shale oil losses and cheap credit. This is applicable only to the small players. The big multi-nationals have invested in R&D to extract oil and they do make a profit. They get talent from all around the world including India where many top scientists and engineers are from.

Shale oil & gas extraction environmental problems has been created by the small players who don't have the resources to properly dispose of waste water. They inject it in geological faults or in the water table in some places. It is good these smaller players are being squeezed out. Proper disposal has not led to problems elsewhere.

Outside of the US, only SA plus gulf countries have improved oil & gas extraction infrastructure. The Chinese are also coming up from behind. Russia is still using technologies from the 1950s. Even Venezuala is ahead of them. Besides oil & gas extraction, systemic industrial pollution has caused Russia to pollute its fresh water resources beyond repair. They've created a effing mess of the world's largest fresh water resources. Russia is truly a 3rd or 4th world country and will remain so as a kleptocracy.

The US government does not control what private companies do, they are free to sell oil for export. US shale oil export is ramping up to 5 MMbpd in the next few years and helps regulate international prices. It does not matter if the US imports oil on the other hand too by other companies who are refiners. Shale oil is a pressure relief valve on international oil prices and will remain so for at least a couple decades.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 16 Jun 2018 18:35

You just keep making claims out of thin air , Here is US energy secretary words on US shale

U.S. tells Russia, Saudi shale oil won't be oil market 'spoiler'


U.S. Energy Secretary Rick Perry told oil super-powers Russia and Saudi Arabia he believed U.S. shale oil boom would not become a spoiler for oil markets because new production would be absorbed by fast rising global demand.

“I don’t think American shale production will be a spoiler. There is a lot of reforms going on around the world - in the kingdom (of Saudi Arabia), in Mexico, in India - those reforms have the potential to really drive the consumption,” he said.

Mort Walker
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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 16 Jun 2018 21:22

^^^The reality is that US shale oil is producing over 2 MMBPD and does impact prices, and is on its way to being over 5 MMBPD. If you can't see that, then I can't help you. Rick Perry is simply saying what he needs to keep oil prices in check. Cheap oil is going to be needed by all for the next 50 years. Right now India is buying US shale gas as LNG and it is being used to disrupt traditional markets. As far as Russian LNG sale to India at the given price, I'll believe it when I see the shipment. Until then it's just niceties of worthless joint Indo-Russian statements.

If you had bothered to read actual financial press instead of Russi propaganda or opinion pieces, you might understand, even stuff that has been posted earlier in this thread.

India produces a lot of highly skilled petroleum engineers. The Houston, TX area is filled with them and many are in the gulf states too. Russia and SA have nothing in comparison to the skilled Indian diaspora.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 16 Jun 2018 22:39

Cant help if you are dellusional and you can believe all that you may about US Shale but there is nothing yet on stastics to prove it , If OPEC and Russia wants it can dominate the Energy market at the price they want shale or not that is the reason the agreement brought the price to above $70 from $40 , they are controlling the market and its good for both to have high oil price.

Shipment has already started let the competition begin good for India :D
https://www.ndtv.com/india-news/russias ... at-1862619


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