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Re: Oil & Natural Gas: News & Discussion

Posted: 17 Jun 2018 20:53
by Mort Walker
Austin wrote: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 ... at-1862619

You’re funny saying that over 2 MMBPD won’t afftect prices. Too bad I don’t drink liquor or that Russian vodka would give me a nice stupor to believe anything. That shipment was from Gazprom resources in Nigeria. It wasn’t from Russia. OPEC can raise prices, but shale oil has the ability to moderate it.

Re: Oil & Natural Gas: News & Discussion

Posted: 18 Jun 2018 18:02
by Austin
It is funny because all that 2MMBPD could not prevent crude rising to above $70 isnt it and that happend when OPEC/Russia decided to cut production till market demand supply stabalises !

If Shale had such sway in the market we would have seen Oil at $40 today and if OPEC cut it Shale would have increased and compensated but that is not happening.

So you can have all your Jack Daniels but all the Shale affecting the price is just Marketing Gimmick nothing more nothing less and if something this can happen in future with rising US interest rate lets wait and watch !

May be the magical extaction technology can do that :)

Re: Oil & Natural Gas: News & Discussion

Posted: 19 Jun 2018 08:58
by Mort Walker
^^^That is already over 2 MMBPD today and is ramping up to 5 MMPBD. The only marketing gimmick are all the goods out of Russia - which is the equivalent of Italy with nuclear weapons. There is enough oil output from US shale which is equal to Iran. If shale wasn't there oil would be near $100/barrel today. Keep up the good work for your Russian masters!

Re: Oil & Natural Gas: News & Discussion

Posted: 20 Jun 2018 11:01
by KrishnaK
Arguing both that shale production is pricier and that if shale output were significant enough to sway prices, oil would be at a low $40 is self-contradictory and absurd.

OPEC calls on US shale oil producers to accept 'shared responsibility' of slashing global supply

North American shale drillers have helped production soar by nearly 10 percent in the U.S. this year, according to Reuters, despite OPEC and some other producers — including Russia — cutting supplies in a bid to prop up prices.

Clearly shale output is significant enough for OPEC to react to it. Question is how significant. This article argues that Saudi Arabia is still the dominant producer of oil, given its significant reserve capacity

This loss of market share may be even more harmful to OPEC in today’s world of energy abundance. Predicting the timing of peak oil demand is becoming a parlor game among oil economists. While nearly all agree that the world will see one to two decades of continuing oil demand growth, maintaining market share in this changing world is more important than in the past. OPEC may have won the battle to raise the oil price, but it appears to be losing the market share war.

The United States has become an important oil producer and changed the landscape of the global oil market, particularly with its ability to more quickly rebalance the market in response to price changes. But important differences between the U.S. and Saudi oil industries mean that the United States will not take over the Saudi role in global oil markets, even though it is poised to surpass Saudi Arabia in terms of production volume.

Saudi oil is all produced by a single entity—Saudi Aramco—which is owned and operated by the Saudi government. Saudi Aramco does not operate on a simple profit motive like a for-profit company. Concerns about politics and management of the global oil market influence production decisions in a way that would not occur at a company solely focused on profit. Saudi Aramco plans to sell shares equaling five percent of its value in an initial public offering (IPO) in the second half of this year, but the fundamental structure and decisionmaking at the company will remain controlled by the government.

In the United States, the oil industry is made up of dozens of companies that make individual investment and production decisions, based on their own costs, financial positions, and appetites for risk. The U.S. oil industry will never act as one to manage the market or raise prices. In fact, such behavior is illegal under anti-trust law. But this is exactly how Saudi Aramco and the other OPEC members operate—it is the very purpose of OPEC.

A related point is that all of the individual U.S. producers are price takers in the marketplace, meaning that they have no ability to influence global oil prices through their own actions. But Saudi Aramco is large enough for its production decisions to influence prices. In addition to reducing production to push prices upward, as is happening today, Saudi Arabia can rapidly increase production to deal with oil supply disruptions. Saudi Arabia is the only oil producing country with significant spare production capacity. The U.S. Energy Information Administration estimates that the Saudis keep 1.5 to 2 million bbl/d of production capacity in reserve, a strategy that would not make economic sense for a for-profit company.

The last point is important - Saudi Arabia's importance in the international system is at least partly due to it's swing producer status. I don't think Russia's in the same league.

Re: Oil & Natural Gas: News & Discussion

Posted: 24 Jun 2018 10:51
by Austin
IF Russia was not in the same league then Saudi would not have made an effort to cut Oil Production.

This is turning out to be a formal alliance now after success of Production Cut

Russia-Saudi Plans for Super-OPEC Could Reshape Global Order

Russian Oil Minister Alexander Novak said in a speech yesterday that “we need to build upon our successful cooperation model and institutionalize its success through a broader and more permanent strategically focused framework.” His Saudi counterpart Khalid Al-Falih echoed those comments and OPEC President Suhail Al Mazrouei today said a charter for the enlarged group had been circulated with a view to an agreement by the end of the year.

Oil Prices are rising even after 1 million barrel rise agreed by OPEC +

Looks like the Demand is more than Supply

Re: Oil & Natural Gas: News & Discussion

Posted: 24 Jun 2018 17:53
by JohnTitor
^^ Supply is to increase later in the year. So it isn't going to affect spot prices, but futures should fall slightly - the increase is only marginal

Re: Oil & Natural Gas: News & Discussion

Posted: 25 Jun 2018 02:00
by hanumadu
A GE puff piece but has some interesting facts on Indian oil reserves.

Coal: From a mere 2% of overall coal consumption in 1990, imports made up 16% of coal consumed in 2012, with the imported resources costing twice as much as those produced domestically.
Natural Gas: Between 2000 and 2012 the consumption of natural gas doubled, and a dependency on imported gas was established, growing from zero to 22% of consumed natural gas.
Oil: In 1990 India imported 37% of oil it consumed while in 2012 it imported a staggering 82% of consumed oil, pushing the import bill to $120 billion and making it the energy source with the highest import dependency.

India does not have to remain dependent on foreign energy commodities. An estimated 75% of India’s sedimentary basins have yet to be adequately explored. Of the 26 known sedimentary basins in the country, only seven are currently producing oil and gas.


Since 1950, roughly 69 trillion cubic feet of proven and probable recoverable gas reserves have been discovered in India. However, only 42 trillion cubic feet have been developed and are currently under production. That leaves 18 trillion cubic feet of reserves yet to be produced and 27 trillion cubic feet of reserves yet to be developed. According to an analysis of 12 basins across India, approximately 64 trillion cubic feet of risked recoverable resources are yet to be found. Thus, India holds at least 91 trillion cubic feet of recoverable gas reserves. On top of conventional gas reserves, India also holds an estimated 63 trillion cubic feet of recoverable shale gas. While these reserves are considered to be a secondary energy option, Indian agencies are encouraging exploration, and leading companies, such as ONGC and OIL, have implemented pilot projects to assess the shale opportunity.

Re: Oil & Natural Gas: News & Discussion

Posted: 25 Jun 2018 02:07
by hanumadu

Spurred by that charge, Indian companies are expanding into new areas and experimenting with technology to feed growing demand. For one, Super Wave Technology is developing an alternative extraction technology, using shock waves to initiate fractures in shale reservoirs located in the depth of 1000-1500 meters. The traditional hydraulic fracturing process produces large volumes of contaminated water that can flow back from the well. Replacing water with shock waves would help drillers avoid the water contamination and broader environmental problems.

Oil and Natural Gas Corporation (ONGC) has signed a Memorandum of Understanding with Super Wave Technology Pvt Ltd (SWTPL) - a company incorporated by Society for Innovation and Development at the Indian Institute of Science (IISc), Bangalore - for development of an alternative to hydraulic fracturing or fracking technology that is used to produce shale oil and gas.

"With this partnership, ONGC will provide assistance to SWTPL for developing shock wave assisted fracking technology, an alternate to the conventional hydraulic fracturing. If proven effective as a substitute to hydraulic fracturing, in particular for shale gas exploitation, it will be a game changer for the oil and gas industry," ONGC said in a press release.

Re: Oil & Natural Gas: News & Discussion

Posted: 25 Jun 2018 06:02
by Mort Walker
From what I’ve seen, ONGC has really world class engineers and scientists who can do excellent analysis, bit ONGC lacks the capital to exploit resources. Some years ago Reliance industries came in and scooped up entire departments within ONGC offering them more than double pay.

Re: Oil & Natural Gas: News & Discussion

Posted: 25 Jun 2018 08:58
by hanumadu
ONGC has annual profits of 3 billion dollars for the last several years. It has 20 billion in reserves. There were news of it planning to spend billions in exploration a few years ago. Don't know if it did or if anything came off it. The govt. can provide more if needed. Better than spending 100 billion dollars every years in foreign exchange.

Re: Oil & Natural Gas: News & Discussion

Posted: 26 Jun 2018 13:49
by nandakumar
Any thoughts among members here as to how the impending US sanctions on Iran will affect oil prices for supplies to India? Last time around oil companies routed payments through UCO Bank which was not exposed to US operations and the bank got interest free funds which helped it show profits. There was an interview in BL of the then Chairman of UCO Bank to this effect.

Re: Oil & Natural Gas: News & Discussion

Posted: 26 Jun 2018 15:09
by Sachin

Re: Oil & Natural Gas: News & Discussion

Posted: 27 Jun 2018 10:23
by Austin

Re: Oil & Natural Gas: News & Discussion

Posted: 27 Jun 2018 16:07
by nits
what next now - stop sending tourist to Banana Republic ?

Re: Oil & Natural Gas: News & Discussion

Posted: 27 Jun 2018 18:05
by Vips
India to build two more strategic petroleum reserves: Piyush Goyal.

The cabinet on Wednesday approved establishment of two strategic petroleum reserves (SPRs) with a total capacity of 6.5 mln tonnes, interim Finance Minister Piyush Goyal said.

India will set up a 4.4-million-tonnes SPR at Chandikhol in Odisha, and a 2.5-million-tonnes facility at Padur in Karnataka.

India has built three SPR of 5.33 million tonnes in southern India equivalent to meet 10 days of crude requirement.

The two planned SPRs will be provide additional supply of about 12 days.

India to approach potential investors for operating the SPRs on public private partnership.

ADNOC has leased a part of the existing storage at Padur.

Re: Oil & Natural Gas: News & Discussion

Posted: 28 Jun 2018 13:07
by Austin ... 2050756608

The Spectator Index

Oil price needed to balance budget.

Venezuela: $223
Nigeria: $124
Algeria: $105
Angola: $78
Saudi: $87
Iran: $68
Kazakhstan: $60
Iraq: $54
Kuwait: $48
Russia: $40

Current oil price: $77.4

Re: Oil & Natural Gas: News & Discussion

Posted: 29 Jun 2018 11:20
by Austin
India braces for life without Iran oil, mulls Plan B ... 783643.cms

Amid pressure from US, India may have to stop Iranian oil flowing onto its refineries
Iraq, Saudi Arabia and Kuwait may fill the gap but there will be increase in costs
Unsure of how things will pan out, oil ministry told refiners to ready alternative sources

Re: Oil & Natural Gas: News & Discussion

Posted: 12 Jul 2018 11:00
by Austin
If US gets its way with Iran, oil could spike to $120, says Bank of America ... tegis.html

Oil could spike to $120 per barrel or more if the U.S. were able to eliminate all Iranian oil exports, as it has said it would like to do by Nov. 4, according to Bank of America Merrill Lynch.
Iran has been exporting more than 2 million barrels a day, and BofAML expects just about a quarter of that to be removed from the market due to a global oil deficit.
President Donald Trump has asked Saudi Arabia to tap its spare capacity of 2 million barrels and add more oil to the market, but BofAML said it is untested and the market is skeptical that it can maintain a much higher level of exports without drawing on its inventories.

Re: Oil & Natural Gas: News & Discussion

Posted: 12 Jul 2018 16:29
by Vips
US soon to leapfrog Saudis, Russia as top oil producer.

The US is on pace to leapfrog both Saudi Arabia and Russia and reclaim the title of the world’s biggest oil producer for the first time since the 1970s.

The latest forecast from the US Energy Information Administration predicts that US output will grow next year to 11.8 million barrels a day.

“If the forecast holds, that would make the US the world’s leading producer of crude,” says Linda Capuano, who heads the agency, a part of the Energy Department.

Saudi Arabia and Russia could upend that forecast by boosting their own production. In the face of rising global oil prices, members of the OPEC cartel and a few non-members including Russia agreed last month to ease production caps that had contributed to the run-up in prices.

President Donald Trump has urged the Saudis to pump more oil to contain rising prices. He tweeted on June 30 that King Salman agreed to boost production “maybe up to 2,000,000 barrels.” The White House later clarified that the king said his country has a reserve of 2 million barrels a day that could be tapped “if and when necessary.”

The idea that the US could ever again become the world’s top oil producer once seemed preposterous.

“A decade ago the only question was how fast would US production go down,” said Daniel Yergin, author of several books about the oil industry including a history, “The Prize.” The rebound of US output “has made a huge difference. If this had not happened, we would have had a severe shortage of world oil,” he said.

The United States led the world in oil production for much of the 20th century, but the Soviet Union surpassed America in 1974, and Saudi Arabia did the same in 1976, according to Energy Department figures.

By the end of the 1970s the USSR was producing one-third more oil than the US; by the end of the 1980s, Soviet output was nearly double that of the US.

The last decade or so has seen a revolution in American energy production, however, led by techniques including hydraulic fracturing, or fracking, and horizontal drilling.

Those innovations — and the breakup of the Soviet Union — helped the US narrow the gap. Last year, Russia produced more than 10.3 million barrels a day, Saudi Arabia pumped just under 10 million, and the US came in under 9.4 million barrels a day, according to US government figures.

The US has been pumping more than 10 million barrels a day on average since February, and probably pumped about 10.9 million barrels a day in June, up from 10.8 million in May, the energy agency said Tuesday in its latest short-term outlook.

Capuano’s agency forecast that US crude output will average 10.8 million barrels a day for all of 2018 and 11.8 million barrels a day in 2019. The current US record for a full year is 9.6 million barrels a day in 1970.

The trend of rising US output prompted Fatih Birol, executive director of the International Energy Agency, to predict this spring that the US would leapfrog Russia and become the world’s largest producer by next year — if not sooner.

One potential obstacle for US drillers is a bottleneck of pipeline capacity to ship oil from the Permian Basin of Texas and New Mexico to ports and refineries.

“They are growing the production but they can’t get it out of the area fast enough because of pipeline constraints,” said Jim Rittersbusch, a consultant to oil traders.

Some analysts believe that Permian production could decline, or at least grow more slowly, in 2019 or 2020 as energy companies move from their best acreage to more marginal areas.

Re: Oil & Natural Gas: News & Discussion

Posted: 14 Jul 2018 05:39
by Mort Walker
^^^Export will be at least 3 MMBPD, and most likely that’s already happening. The bigger story is shale gas. The US has ability to keep the price of oil going too high.

Re: Oil & Natural Gas: News & Discussion

Posted: 20 Jul 2018 08:49
by Austin
This deal with Russia will save India whopping Rs 9,500 crore; here’s what Dharmendra Pradhan says

At $7 per million British thermal unit, India made the cheapest deal with Russia for purchasing this product, which will save India Rs 9,500 crore.
At $7 per million British thermal unit, India made the cheapest deal with Russia for purchasing LNG, which will save India Rs 9,500 crore. On June 4, the first-ever cargo of LNG from Russian supplier Gazprom arrived at Dahej in Gujarat. Oil Minister Dharmendra Pradhan in a written reply to Rajya Sabha said that India’s Gail and Russia’s Gazprom successfully re-negotiated 20-year-long LNG Sale and Purchase Agreement, which will save between Rs 8,500 crore and Rs 9,500 crore.

The contract period of the deal will end in 2040. India pushed for a cheaper gas import in a bid to make the country a gas-based country amid the concerns over fuel-triggered pollution and volatility in international oil prices. GAIL re-negotiated with Gazprom the terms of the deal to import 2.5 million tonnes a year of LNG, which also led to an extension of the deal by three years.

“The renegotiated price, compared to earlier contract price, will result in saving of approximately Rs 8,500 crore (crude oil at USD 50 per barrel) or Rs 9,000 crore (crude oil at USD 60 per barrel) or Rs 9,500 crore (crude oil at USD 70 per barrel) for the years 2018 to 2040,” Dharmendra Pradhan said in a written reply.

GAIL will purchase an additional six million tonnes of LNG volumes from Gazprom under the re-worked deal. Dharmendra Pradhan had earlier said that the Narendra Modi government is looking to diversify the import market, which is currently dominated by coal and oil.

Re: Oil & Natural Gas: News & Discussion

Posted: 20 Jul 2018 13:37
by chetak
Mort Walker wrote:^^^Export will be at least 3 MMBPD, and most likely that’s already happening. The bigger story is shale gas. The US has ability to keep the price of oil going too high.

After a long time of playing in the oil market shadows, the US is emerging as a swing producer and that mere threat is enough to quieten a lot of OPEC kingpins who now fear getting kicked really hard in the b@lls by trump.

The vague fear of the earlier sheathed sword has now been replaced by the very real fear of the naked unsheathed sword.

The russkis are also not particularly caring of OPEC sensibilities.

Re: Oil & Natural Gas: News & Discussion

Posted: 23 Jul 2018 21:20
by Austin
Iran Becomes Second Largest Oil Supplier to India, Replaces Saudi Arabia ... ier-india/

Re: Oil & Natural Gas: News & Discussion

Posted: 23 Jul 2018 21:54
by Varoon Shekhar
Good news! If the US does eventually impose some sanctions on India for merely importing Iranian oil, India at least should strongly request the US or one of its allies to supply oil at the price the Iranians are charging. Otherwise, India should say get lost. India is not selling Iran nuclear or missile know-how, it's just importing oil, for goodness sake.

Re: Oil & Natural Gas: News & Discussion

Posted: 23 Jul 2018 22:22
by nachiket
Varoon Shekhar wrote:^
Good news! If the US does eventually impose some sanctions on India for merely importing Iranian oil, India at least should strongly request the US or one of its allies to supply oil at the price the Iranians are charging. Otherwise, India should say get lost. India is not selling Iran nuclear or missile know-how, it's just importing oil, for goodness sake.

Not that easy. Refineries processing Iranian crude cannot easily switch to processing US or Saudi crude.

Re: Oil & Natural Gas: News & Discussion

Posted: 24 Jul 2018 20:55
by Austin

Re: Oil & Natural Gas: News & Discussion

Posted: 25 Jul 2018 21:00
by Varoon Shekhar ... 511353.ece

Nice team work by the ONGC and India navy. Evidently, the ONGC people had to learn on the fly( literally) coming out of a helicopter to fix the leak in mid ocean! Impressive.

Re: Oil & Natural Gas: News & Discussion

Posted: 26 Jul 2018 06:25
by Prem
Saudis Ship U.S. Oil to Taiwan as China Shuns American Crude
Top OPEC member Saudi Arabia is shipping U.S. crude produced in the Gulf of Mexico to Asia at a time when No. 1 buyer China is snubbing American cargoes.The trading unit of state-run Saudi Aramco sold about 1 million barrels of U.S. Mars crude to Taiwanese refiner Formosa Petrochemical Corp. for delivery in September-October, according to traders with knowledge of the matter. That follows shipments of oil pumped at shale fields to markets such as South Korea, as the kingdom seeks to capitalize on an American boom that’s threatened the share of its own supply in Asia.The latest cargo stands out from previously reported deals because Mars is a crude grade that’s of the so-called “medium-sour” variety, which typically has a higher sulfur content than “sweet” supply from shale fields.The Middle East kingdom, the world’s biggest exporter, is attempting to take advantage of the opportunities presented by the U.S. oil boom that has transformed the flow of cargoes in the global market. However, the shipments tend to fluctuate depending on the price spread between America’s benchmark West Texas Intermediate and global marker Brent.When WTI fell to more than $10 a barrel below Brent back in May, China bought more than 13 million barrels of American oil, up from just over 4 million barrels a year earlier. As that spread has narrowed over the past month, Sinopec -- the Asian nation’s biggest refiner -- has shunned U.S. shipments. The gap between the markers was at about $5 on Wednesday.Saudi Aramco has started delivering a type of oil known as condensate from the U.S. Eagle Ford basin to markets in the east such as South Korea, and has also shipped the supply to Abu Dhabi National Oil Co., a company official had said last month. ... ican-crude?

Re: Oil & Natural Gas: News & Discussion

Posted: 26 Jul 2018 06:27
by Prem

Re: Oil & Natural Gas: News & Discussion

Posted: 27 Jul 2018 11:52
by Austin

Oil & Natural Gas: News & Discussion

Posted: 03 Aug 2018 14:54
by Peregrine
X Posted on the Ātaṅkavadīsthan Thread

Incoming govt to start laying TAPI pipeline

ISLAMABAD: In a bid to cope with the daunting challenge of energy shortages, the incoming government of Pakistan Tehreek-e-Insaf (PTI) will have to immediately kick off construction work on the $10-billion Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project.

Former prime minister Shahid Khaqan Abbasi had participated in the groundbreaking ceremonies held to begin construction of the pipeline in Turkmenistan and Afghanistan.

In Pakistan, the work was scheduled to commence in May this year, but the plan could not be pushed ahead as tenure of the Pakistan Muslim League-Nawaz (PML-N) government was going to end on May 31, 2018.

“Now, the new elected administration of PTI will start laying the Tapi gas pipeline in Pakistan,” a senior government official said.

State-run Inter State Gas Systems (ISGS) has the mandate to execute all oil and gas pipeline projects.

ISGS Managing Director Mobin Saulat told The Express Tribune that the pipeline construction had begun in Afghanistan and Turkmenistan. However, work had not yet been undertaken in Pakistan, he said, voicing hope that the incoming government would inaugurate the building of the gas pipeline. As Russia is planning to lay an offshore pipeline from Iran to India via Pakistan, the countries building the Tapi pipeline have approved an alternative plan to cut the time required for project implementation.

The project was targeted to be completed in 2021, but under the alternative plan, the participating countries would be able to complete it in 2020.

The Tapi steering committee comprising ministers of the four countries has approved the alternative plan.

The ISGS MD revealed that the government had proposed a new plan for laying the pipeline in the shortest possible time. Under the plan, pipeline will be laid in the first phase without installing compressors.

There will be free flow of gas from Turkmenistan through the pipeline without compressors. The pipeline will be of 56-inch diameter and one-third of gas flow will be possible in this process. Gas flow will start in about one and a half year.

He revealed that the pipeline had been divided into nine lots and successful bidders would be asked to work on different lots in an attempt to complete the project as quickly as possible.

At present, Pakistan is importing liquefied natural gas (LNG) from Qatar and Italy to tackle energy shortages. It is also in talks with different countries to ink more government-to-government LNG supply deals.

The US has given its full backing to the Tapi project that will not only meet energy needs of Afghanistan, Pakistan and India, but will also help ease tensions between the neighbours due to reliance on each other, the ISGS MD said.

Turkmenistan has huge gas reserves and a major chunk of them has gone to Russia that supplies the energy onwards to Europe. Turkmenistan has also been supplying gas to Iran whereas Afghanistan, Pakistan and India will be its new markets.

Turkmenistan will bear 85% of the $10-billion pipeline cost while Afghanistan, Pakistan and India will have 5% equity share each. The pipeline cost is in addition to the $15-billion capital injection required for developing a relevant gas field.

A gas sale and purchase agreement has already been signed in 2012 to establish the pricing mechanism under which gas price at Turkmenistan’s border will be around 20% cheaper than the Brent crude oil rate.

Comments : Ātaṅkavadīsthan will create hurdles by stopping the Flow of Natural Gas to India by resorting to attacks by its Terrorist. India must - if possible - get out of this project.

Cheers Image

Re: Oil & Natural Gas: News & Discussion

Posted: 17 Aug 2018 18:47
by Vips
Big Oil is racing to pump all the oil out of Texas.

The oil industry is shelling out billions of dollars in a series of acquisitions in the Permian Basin, the hottest oilfield in the world.

The latest deal came on Tuesday when Diamondback Energy (FANG) agreed to purchase shale producer Energen (EGN) for $9.2 billion, forming one of the largest players in the Permian.

Late last month, BP (BP) inked a $10.5 billion deal to buy oil assets in Texas. It was BP's biggest acquisition in two decades and first major investment in the United States since the Deepwater Horizon disaster in 2010.

And Concho Resources (CXO) recently completed a $9.5 billion purchase of RSP Permian that created the largest shale producer in the Permian.
The rush of deals underscores how eager companies are to get a foothold in the region.

Rapid technological advances have dramatically slashed the cost to frack in the Permian. Production is spiking so much that Texas is on track to surpass Iran and Iraq, both OPEC members. That would make Texas No. 3 in the world if it were a country.

"It's the most desired region in the United States, if not globally," said Michael Tran, director of global energy strategy at RBC Capital Markets.

RBC estimates that Permian production will more than double over the next seven to 10 years, to about 6.5 million barrels per day. That's more than the entire United States produced in early 2012.

"From a price perspective, the Permian Basin is extremely attractive," Tran said. "Nobody doubts the rock."

The Permian boasts unique geology that allows oil companies to drill more than one layer of the earth at the same time. Wells can be profitable below $40 a barrel. That's well below today's price of about $65 a barrel. And some executives believe the amount of Permian oil rivals Saudi Arabia's legendary Ghawar Field, the world's largest conventional oilfield.

By spending $9.2 billion in stock, Alabama-based Diamondback is nearly doubling its acreage in core parts of the Permian Basin.

"They're as good as some of the assets we've seen anywhere," Michael Hollis, president of Diamondback Energy, told analysts on Wednesday. "We were really impressed once we got under the hood."

Wall Street was less impressed. Diamondback shares plunged nearly 11% on Wednesday.

Just days earlier, Diamondback swept in with a $1.25 billion deal to buy private Permian oil producer Ajax Resources.

Even some of the biggest oil companies are getting into the game. Long before BP's big bet on shale, ExxonMobil (XOM) announced a $5.6 billion deal in January 2017 to double its assets in the Permian Basin. It was Exxon's biggest purchase since the 2010 takeover of natural gas producer XTO Energy. That $41 billion acquisition proved to be badly timed as natural gas prices later crashed.

But major obstacles loom in the booming Permian Basin, at least in the short run. Because of hyper growth, the Permian is quickly running out of pipelines to move oil out of the region.

"The pipeline constraints are real, but they are transitory," said Vincent Piazza, senior energy analyst at Bloomberg Intelligence. "The infrastructure has had a difficult time keeping up with the explosive growth.

More pipelines are coming, but they will take time. Clay Seigle, managing director of oil at research firm Genscape, warned of "significant challenges" for transporting oil out of the Permian until the second half of next year.

At the same time, Permian producers are feeling sticker shock as prices spike for talent, supplies and services.

Oil executives are betting they can maximize their chances of success by working together.

The recent deals "signal a clear shift in the US shale industry towards consolidation as players seek operational and capital efficiencies," analysts at research firm Rystad Energy wrote in a report on Wednesday.

The boom in the Permian has sparked some concerns that the shale industry could be overextending itself once again. It was just a few years ago that excessive shale production caused oil prices to crash around the world. Dozens of US oil companies filed for bankruptcy.

Big Oil is betting this time will be different because the oil glut has largely disappeared, demand is strong and OPEC has less firepower to respond to price shocks. US crude prices plunged 3.5% on Wednesday, but they have nearly tripled since early 2016.

"The market is going to need more barrels," RBC's Tran said. "OPEC and the Saudis can only do so much."

Oil & Natural Gas: News & Discussion

Posted: 04 Sep 2018 02:51
by Peregrine
Exclusive: India allows state refiners to use Iran tankers, insurance for oil imports - Nidhi Verma

NEW DELHI (Reuters) - India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country’s top shipper Shipping Corp of India (SCI) (SCI.NS) halted voyages to Iran due to U.S. sanctions, sources said.

New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).

The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when U.S. sanctions against Tehran’s petroleum sector are due to start.

President Donald Trump ordered the re-imposition of economic curbs after withdrawing the United States from a 2015 nuclear deal between Iran and six world powers. No one trading with Iran will do business with America, he said.

“We have the same situation (as most Western shippers) because there is no cover, so we cannot go (to Iran),” an SCI official told Reuters.

New Delhi turned to the NITC fleet after most insurers and re-insurers had begun winding down services for Iran, wanting to avoid falling foul of the sanctions given their large exposure to the United States.

SCI had a contract until August to import Iranian oil for Mangalore Refinery and Petrochemicals Ltd (MRPL) (MRPL.NS), two sources familiar with the matter said.

Eurotankers, which had a deal with MRPL to import two Iranian oil cargoes every month, has also said it cannot undertake Iranian voyages from September, the sources said.

The sources spoke on condition of anonymity as they were not allowed to talk to the media about commercial deals.

“The shipping ministry has given refiners permission to buy Iranian oil on a CIF (cost, insurance and freight) basis,” a government source said.

Under a CIF arrangement, Iran would provide shipping and insurance, enabling Indian refiners to continue purchases of the country’s oil despite the non-availability of cover from Western insurers due to the restrictions imposed by Washington.

The move would benefit Indian Oil Corp (IOC) (IOC.NS), Bharat Petroleum Corp Ltd (BPCL) (BPCL.NS) and MRPL, which plan to lift Iranian cargoes during the rest of the fiscal year ending on March 31.

India wants to continue buying oil from OPEC member Iran as Tehran is offering almost free shipping and an extended credit period.

State refiners, which drove India’s July imports of Iranian oil to a record 768,000 barrels per day, had planned to nearly double oil imports from Iran in 2018/19.


Unlike their private peers, India’s state-run refiners need government permission to import oil on a delivered, or CIF, basis. Federal policy requires them to favour Indian insurers and shippers by buying only on a free on board (FOB) basis.

The permission for CIF purchases applies only to existing annual contracts with Iran, the government source said.

India, Iran’s top oil client after China, will finalize its strategy on crude purchases from Tehran after a meeting with top U.S. officials this week, a senior government official told Reuters last week.

SCI, Eurotankers, the shipping ministry, MRPL, IOC and BPCL did not respond to Reuters emails seeking comment.

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Re: Oil & Natural Gas: News & Discussion

Posted: 04 Sep 2018 10:24
by nandakumar
The Reuters story above fails to mention whether the contract is CIF Indian port or an Iranian port. The distinction is crucial as in the case of CIF contract a loading port in Iran the title to the goods pass on to India with all the risks of ownership falling on Indian oil company. In the event of a cargo loss after the ship had left an Iranian port Indian oil company can only lodge a claim with Iranian insurance company which is bankrupt anyway.

Re: Oil & Natural Gas: News & Discussion

Posted: 05 Sep 2018 04:02
by Vips

Re: Oil & Natural Gas: News & Discussion

Posted: 05 Sep 2018 15:46
by vipins
HPCL plans to invest ₹ 1,000 crore for LPG cavern in Mangaluru
The Mangaluru facility may have a capacity of over 60,000 tonne.

Re: Oil & Natural Gas: News & Discussion

Posted: 14 Sep 2018 12:34
by uddu
America is now the world's largest oil producer ... index.html
Move over Russia and Saudi Arabia. America has reclaimed its throne atop the oil world.

For the first time since 1973, the United States is the world's largest producer of crude oil, according to preliminary estimates published on Wednesday by the Energy Department.

The United States isn't expected to cede its crown any time soon. The EIA expects US oil production to stay ahead of Russia and Saudi Arabia through 2019.


Another important change: America now has oil customers around the world. In late 2015, Congress lifted the 40-year ban on exporting crude oil. The United States now ships oil to South America, Europe and China.

Oil & Natural Gas: News & Discussion

Posted: 15 Sep 2018 02:06
by Peregrine
India's Iran oil purchases to fade ahead of US sanctions Reuters

NEW DELHI: Indian refiners will cut their monthly crude loadings from for September and October by nearly half from earlier this year as New Delhi works to win waivers on the oil export sanctions Washington plans to reimpose on Tehran in November.

India's loadings from Iran for this month and next will drop to less than 12 million barrels each, after purchases over April-August had been boosted in anticipation of the reductions.

The United States is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Tehran and world powers. Washington reimposed some of the financial sanctions from August 6, while those affecting Iran's petroleum sector will come into force from November. 4.

India, Iran's No 2 oil client behind top buyer China, does not recognise the reimposed US sanctions, but winning a waiver from the restrictions is a must for New Delhi to protect its wider exposure to the US financial system.

India's oil ministry in June told refiners to prepare for a "drastic reduction or zero" imports from Iran from November.

"Some refiners have either already exhausted or front-loaded their term contract to a large extent, which allows them the flexibility to go to zero if required, or until clarity on the waivers emerge," Amrita Sen, chief oil analyst at Energy Aspect, told Reuters.

Washington will consider waivers for Iranian oil buyers such as India but they must eventually halt crude imports from Tehran, US Secretary of State Mike Pompeo said last week in New Delhi after a meeting of high level officials.

The Indian government, already facing a backlash over a falling rupee and record high fuel prices, does not want to halt the oil imports from Iran as the Islamic republic offers a discount on oil sales to India.

Government sources said India made this point clear in last week's meetings with US officials and remains engaged with Washington to work out waivers on its oil purchases from Iran.

"We have a special relationship with both the US and with Iran, and we are seeing how to balance this all, and also to balance out the interest of the refiners and end-consumers," said one of the government officials.

But if Washington adopts a tough line, India would have no other choice than to end imports from Iran, they said.

Cutting imports nearly in half

India lifted about 658,000 barrel of oil per day (bpd) from Iran in April-August, according to data obtained from trade sources by Reuters, and the cuts projected for September and October would drop the daily average over those two months by about 45 per cent to 360,000-370,000 bpd.

Indian oil refiners have already given the October loading plans to the National Iranian Oil Co (NIOC), sources familiar with the loading schedule said.

Top refiner Indian Oil Corp wants to lift 6 million barrels each in September and October, while Mangalore Refinery and Petrochemicals would load 3 million barrels each for those two months, the sources said.

IOC would also lift 1 million barrel for its subsidiary Chennai Petroleum Corp in October, they said. Bharat Petroleum Corp would lift 1 million barrels in September and skip purchases in October, a company source said on Tuesday.

Bharat Petroleum has already drawn more than its fixed volumes - the amount it is obligated to purchase - that were contracted for 2018/19, its chairman said on Tuesday.

Nayara Energy, part owned by Russian oil giant Rosneft, plans to lift 1 million barrels each in September and October, the sources said. But the refiner began reducing its oil imports from Iran in June and aims to completely halt purchases from November.

Hindustan Petroleum, Reliance Industries and HPCL Mittal Energy (HMEL) have no plans to buy from Iran in September and October, they said.

India refiners - excluding Reliance and HMEL, which do not have term contracts with Iran - will together lift about 73 per cent of their fixed contract volumes from Iran by end-October, the loading data showed.

IOC, Nayara and MRPL did not respond to Reuters' emails seeking comments.

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Re: Oil & Natural Gas: News & Discussion

Posted: 15 Sep 2018 13:58
by Philip
On the contrary we should increase supplies from Iran if the price is right.Oil from the cheapest supplier.India is not a puppet state of ghe US.If it kmposes sanctionx so can we.Ban Coke and Pepsi for startets.I use Coke as my toolet cleaner, try it out, it's great for sh*t! It should be banned for human consumption and labelled as a detergent or dpesticide!

Re: Oil & Natural Gas: News & Discussion

Posted: 15 Sep 2018 22:37
by Prem
Philip wrote:On the contrary we should increase supplies from Iran if the price is right.Oil from the cheapest supplier.India is not a puppet state of ghe US.If it kmposes sanctionx so can we.Ban Coke and Pepsi for startets.I use Coke as my toolet cleaner, try it out, it's great for sh*t! It should be banned for human consumption and labelled as a detergent or dpesticide!

Great! Iran is superpower and guaranteed to buy trillion $ worth of our export in next 6-7 years.