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Qatargas signs LNG SPA with Kuwait

LNG Industry Qatargas has announced the signing of a new, long term LNG sale and purchase agreement (SPA) with Shell to deliver 1 million tpy of LNG to the State of Kuwait, commencing this year. Commenting on the signing of the SPA, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers. I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to[Read More…]

February 11, 2020 - 6:31 am — Closing Bell Story, International, LNG

Shell’s new solar farm to help power a natural gas plant in Australia

CNBC Shell Australia is set to construct and operate a solar farm made up of around 400,000 photovoltaic panels in the state of Queensland. In an announcement Friday, Shell Australia described the facility as its “first large-scale solar farm” and said it would have a capacity of 120 megawatts. Work on the project is set to finish in 2021, with Shell Australia saying up to 200 new jobs will be created during the construction phase. Queensland was chosen as the project’s location because it had “some of the most reliable sunshine in the world”, the company added. The solar farm will help to power operations at the QGC onshore natural gas project and cut carbon dioxide emissions by an estimated 300,000 tonnes a year. “We believe solar will play an increasing role in the global energy system, especially when partnered with a reliable energy source such as gas,” Tony Nunan,[Read More…]

February 7, 2020 - 3:00 pm — Closing Bell Story, Energy News, Renewable Energy, Sustainability

Oil is our gold and we aim to use all of it, ADNOC official says

Reuters: Abu Dhabi National Oil Co aims to exhaust its vast oil and gas reserves even as many consumers switch to cleaner sources of energy, a senior executive in the Gulf oil company said. The world’s transition away from fossil fuel in an effort to slash greenhouse gas emissions is expected to accelerate in coming decades, leaving many oil companies and producing nations pondering their long-term future. But for state-run ADNOC, the main oil-producing company in the United Arab Emirates, which supplies nearly 3% of global oil demand, crude is set to remain the revenue backbone, ADNOC’s upstream executive director Abdulmunim al-Kindy told Reuters. “Our oil is our gold,” al-Kindy said in an interview during the ADIPEC oil and gas conference in Abu Dhabi, capital of the UAE. “With the reserves we have, the challenge we have is monetizing it at the right time.” To achieve that, ADNOC has undergone[Read More…]

November 13, 2019 - 10:33 am — Closing Bell Story, Crude Oil News, Energy News, International, Natural Gas News, Oil and Gas 360 Articles

Canada’s Largest Oil Producer Joins Opposition to Enbridge Pipeline Plan

From Reuters Canadian Natural Resources Ltd, the country’s biggest oil producer, has joined a number of other firms asking Canada’s energy regulator to intervene in Enbridge Inc’s plan to overhaul shipping contracts on its Mainline pipeline network. Canadian Natural’s letter to the National Energy Board (NEB), filed late on Monday, calls on the regulator to delay Enbridge’s proposal to switch to long-term, fixed-volume contracts on 90% of the Mainline. ConocoPhillips Canada, a unit of the U.S. oil major, also wrote to the NEB on Monday asking for the process to be delayed because of the “avoidable uncertainty” it created for Canadian producers. Suncor Energy Inc, MEG Energy Corp, Royal Dutch Shell Plc, Japan Canada Oil Sands Ltd (JACOS) and the Explorers and Producers Association of Canada previously wrote to the regulator expressing concerns about the planned changes. Enbridge launched a two-month open season on Aug. 2 to solicit bids for[Read More…]

August 27, 2019 - 6:02 am — Canada, Closing Bell Story, Crude Oil News, Energy News, Midstream, Regulatory

An Oryx Midstream facility (source: Oryx Midstream Services)

Qatar May be Losing the Top Spot as World’s Biggest LNG Exporter

From CNBC Qatar will lose its title as the world’s largest exporter of liquefied natural gas (LNG) within the next year, as Australia ramps up production on a slew of multi-billion dollar export projects. “Australia and Qatar continued to jostle for the title of the world’s largest LNG exporter over the first five months of 2019,” the Australian government said in a recent report. Australia exported more LNG than Qatar in November 2018 and April 2019. But now, the U.S Energy Information Administration (EIA) says Australia is on track to consistently export more LNG than Qatar, as recently commissioned projects such as Wheatstone, Ichthys, and Prelude ramp up production. Prelude, Royal Dutch Shell’s floating LNG facility in a remote field northeast of Broome in Western Australia, shipped its first LNG cargo to customers in Asia in June. The landmark facility, capable of holding 175 Olympic-sized swimming pools of LNG in[Read More…]

August 23, 2019 - 6:01 am — Analytics, Closing Bell Story, Energy News, International, LNG, Natural Gas News, Trade

UPDATE: Venture Global Announces Final Investment Decision for Calcasieu Pass LNG

UPDATE: Venture Global Announces Final Investment Decision and Financial Close for Calcasieu Pass LNG… Login or click here to subscribe Username or E-mail Password Remember Me Forgot Password

August 20, 2019 - 5:00 am — Closing Bell Story, Finance, LNG, Natural Gas News, Press Releases

Venture Global Closes on Project Financing for Calcasieu Pass LNG

By Tyler Losier, Energy Reporter, Oil & Gas 360 Proceeds from Venture Global’s debt and equity financing will fully fund the construction and commissioning of its Calcasieu Pass LNG facility Venture Global LNG Inc., headquartered in Arlington, Virginia, has closed on the project financing for its Calcasieu Pass LNG facility and associated TransCameron pipeline in Cameron Parish, Louisiana. The proceeds of the debt and equity financing will fully fund the company’s construction and commissioning of the Calcasieu Pass facility, which is expected to reach commercial operations by 2022. Construction on the facility first began in February of 2019. Location of the Calcasieu Pass LNG facility (source: Venture Global) Accordin… Login or click here to subscribe

August 19, 2019 - 5:56 pm — Closing Bell Story, Finance, LNG, Natural Gas News, Oil and Gas 360 Articles

Chevron Starts Burying CO2 off Australia at Huge Gorgon Storage Project

From Reuters Chevron Corp (CVX.N) said on Thursday it has launched one of the world’s largest carbon capture and storage projects, injecting CO2 into a deep reservoir under an island off Western Australia at its Gorgon LNG project. The carbon storage project was delayed by more than two years after Chevron discovered problems with valves and pipeline equipment during commissioning of the A$2.5 billion ($1.7 billion) injection system. Gorgon is the biggest emitter of carbon emissions out of Australia’s 10 LNG plants, with gas from the Gorgon field containing 14% CO2. Growth in LNG exports has been a big contributor to Australia’s rising CO2 emissions, according to the Environment and Energy Department. “We are pleased to reach the first milestone of safely starting the operation of the Gorgon carbon dioxide injection system, one of the world’s largest greenhouse gas mitigation projects ever undertaken by industry,” Chevron Australia Managing Director Al[Read More…]

August 8, 2019 - 6:01 am — Closing Bell Story, Energy News, Exploration and Production (E&P), International, LNG, Natural Gas News

Saudi Aramco Valuation Gap Persists as IPO Talks Resume – Sources

From Reuters Saudi Crown Prince Mohammed Bin Salman is insisting on a $2 trillion valuation of oil firm Aramco, even though some bankers and company insiders say the kingdom should trim its target to around $1.5 trillion, industry and banking sources said. With Aramco talking again to banks about an initial public offering (IPO), its board is meeting later this week and will probably hold a discussion about the company’s value, a source close to the company said. Saudi Aramco declined to comment. CIC, the Saudi government media office, did not respond to a Reuters request for comment. Prince Mohammed put a $2 trillion valuation on the state company in early 2016 when he first proposed a share sale to diversify Saudi Arabia’s economy beyond oil. He has stuck with that valuation, according to the source close to Aramco and another source familiar with the IPO plans, even though some[Read More…]

August 7, 2019 - 6:00 am — Closing Bell Story, Crude Oil News, Energy News, Finance, International

Exxon Mobil Profit Sinks, Chevron Rises as Both Boost Output

From Reuters Weaker second-quarter refining and chemicals profits offset surging U.S. shale production at U.S. oil majors Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), the two reported on Friday. Exxon’s topped analysts’ reduced estimates for the quarter but net fell 21% from a year earlier, its third quarter in a row of weaker year-over-year profit, despite a near doubling in Permian shale oil output. Chevron earnings rose 26%, in line with forecasts, as it benefited from a one-time, $1-billion breakup fee from Anadarko Petroleum (APC.N), which accepted a higher bid from Occidental Petroleum (OXY.N) after agreeing to sell itself to Chevron. Shares of both companies fell on Friday with Exxon off 1% at $71.75 a share and Chevron down a penny at $120.73 as the market fell on U.S.-China trade concerns. Exxon’s weaker earnings mirrored those at rivals Royal Dutch Shell (RDSa.L) and Total SA (TOTF.PA), and both U.S.[Read More…]

August 2, 2019 - 6:01 am — Analytics, Closing Bell Story, Crude Oil News, Earnings, Economy, Energy News, Exploration and Production (E&P), Finance, Natural Gas News

Shell Invests in New Deep-Water Gulf of Mexico Project, Sells Assets to Equinor and Noreco

By Tyler Losier, Energy Reporter, Oil & Gas 360 Shell Offshore Inc. makes final investment decision for PowerNap deep-water project in U.S. Gulf Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc (stock ticker: RDS-A, RDS-B), has reached a final investment decision (FID) for the PowerNap deep-water project in the US Gulf of Mexico, electing to move forward with an investment. PowerNap is a subsea tie-back to the Shell-operated Olympus production hub. The project, which is expected to begin production in late 2021, has the ability to produce up to 35,000 BOEPD at peak rates. Based on current estimates, the forward-looking breakeven price for PowerNap is $35 per barrel long-term, and it is currently estimated to cont… Login or click here to subscribe

August 1, 2019 - 3:15 pm — Acquisitions and Divestitures (A&D), Closing Bell Story, Crude Oil News, Exploration and Production (E&P), Natural Gas News, Offshore, Oil and Gas 360 Articles

Texas Shale Pioneers Struggle to Appease Investors

From Reuters Seven years ago, Diamondback Energy Inc went public with a modest parcel of drillable land in the Permian Basin of West Texas. Like dozens of other Permian startups, the firm then pursued a classic wildcatter’s strategy – borrowing to buy up acreage, acquire competitors and quickly boost output in the booming shale field. Today, Diamondback (FANG.O) is the 7th largest producer in the top U.S. oil region, according to researcher Wood Mackenzie. But Diamondback differs from most of its peers in a crucial way – it’s poised to make more cash than it spends. The firm promised to reward investors by buying back up to $2 billion in shares and delivering $750 million in free cash flow next year if U.S. oil prices remain at about $55 per barrel. It started paying shareholders a dividend last year and raised it by 50% this spring. “That’s a big pivot[Read More…]

July 30, 2019 - 6:00 am — Analytics, Closing Bell Story, Crude Oil News, Economy, Energy News, Natural Gas News

How Big is Saudi Aramco?

By Tyler Losier, Energy Reporter, Oil & Gas 360 The staggering size of Aramco: Saudi Arabia’s state-owned oil company In 1933, the government of Saudi Arabia signed a concession agreement with the Standard Oil Company of California, creating an entity known as the California Arabian Standard Oil Company. Two years later, drilling began, and in 1938, famed geologist Max Steineke discovered commercial volumes of oil from Dammam No. 7 – appropriately nicknamed “the prosperity well.” By 1980, the Saudi government owned a 100% interest in the California Arabian Standard Oil Company, which had since been renamed as the Arabia American Oil Company, or Aramco for short. In the years that followed, Aramco grew to become one of the single largest producers of oil in the world, helping to establish Saudi Arabia as a major player in the global geopolitical landscape as a result. Recently, Aramco released its 2017-2018 summary financial[Read More…]

July 23, 2019 - 6:09 pm — Analytics, Closing Bell Story, Crude Oil News, Exploration and Production (E&P), International, Natural Gas News, Oil and Gas 360 Articles, OPEC, Popular 1

EcoStim Energy Solutions provides completion and stimulation services in Argentina's Vaca Muerta shale play.

The Dead Cow Finally Produces Oil, a Century After Its Discovery

From Bloomberg Argentine shale formation sees first crude and LNG shipments, drillers still face many infrastructure, political challenges Along the western edge of Argentina’s Patagonia, on an arid steppe nestled against the Andes mountains, lies a shale formation known as the Vaca Muerta. And ever since engineers confirmed what an American geologist suspected a century ago — that the Vaca Muerta, or dead cow, contains massive amounts of oil and gas — the rush to replicate the U.S. fracking boom was on. First came YPF SA, the local oil giant, and Chevron Corp. Then the likes of Total SA and Royal Dutch Shell Plc. Between them, they poured some $13 billion into exploration over the past eight years. None of them ever had much to show for it, though. Obstacles kept popping up, and production was marginal. Until now. In the last few weeks, two companies have exported two small[Read More…]

June 25, 2019 - 6:45 am — Closing Bell Story, Crude Oil News, Energy News, International, LNG, Natural Gas News

New NatGas Gathering, Processing System Heading to the Delaware

By Tyler Losier, Energy Reporter, Oil & Gas 360 Brazos Midstream and Shell E&P sign exclusive deal Brazos Midstream, a major Delaware Basin midstream player, has signed a 15-year gathering and processing agreement with Shell Exploration and Production. The deal will allow Brazos to construct a new natural gas gathering system in the region spanning across Loving, Ward, and Winkler counties. The new midstream infrastructure will be anchored by fee-based acreage dedications totaling 55,000 acres. Brazos will construct 16 miles of high-pressure pipeline extending from the company’s existing gathering and production system to support future multi-well pad development. Brazos’s assets (Source: Brazos Midstream) Brazos ha… Login or click here to subscribe

June 13, 2019 - 6:46 pm — Closing Bell Story, Exploration and Production (E&P), Midstream, Natural Gas News, Oil and Gas 360 Articles

PBF Energy Snags Martinez Refinery from Shell

~$1 billion transaction to boost PBF’s production volume by 157,000 BOPD PBF Energy Inc. (stock ticker: PBF) has signed an agreement with Equilon Enterprises LLC d/b/a Shell Oil Products US to purchase the Martinez refinery, located in Martinez, California, for approximately $1 billion. Depending when the deals closes, that figure could vary, perhaps dipping slightly to $900 million. As of right now, both companies have set the target date for some time later this year, pending regulatory approval and satisfaction of closing conditions. Source: PBF Energy Acquisition of the new facility would make the Martinez PBF’s second California-based refinery, and would boost the company’s total throughput capacity to over one million BOPD. … Login or click here to subscribe

June 12, 2019 - 5:43 pm — Acquisitions and Divestitures (A&D), Closing Bell Story, Crude Oil News, Downstream, Oil and Gas 360 Articles

Petrobras Gets New Offshore Partner

FPSO Mero 2 expected to produce 180,000 BOPD SBM Offshore N.V., a holding company headquartered in Amsterdam, signed a letter of intent this week with Petróleo Brasileiro S.A. (Petrobras) for a 22.5-year lease to operate its floating production storage and offloading (FPSO) vessel Mero 2. FPSO Mero 2 will be deployed at the Mero field in the Santos Basin, located 180 kilometers off the shore of Rio de Janeiro, Brazil within the Libra block. SMB Offshore will design and construct the FPSO Mero 2 utilizing a program it calls “Fast4Ward,” which takes a new, multi-purpose hull and combines it with several standardized topside modules. Source: SBM Offshore According to the company, the application of this new model can result in a six … Login or click here to subscribe

June 11, 2019 - 3:53 pm — Closing Bell Story, Crude Oil News, Exploration and Production (E&P), International, Natural Gas News, Oil and Gas 360 Articles

Obscure Investor Readies $10 Billion Bet on East Med Gas

From Bloomberg A little-known investor group is planning a major shakeup of the Eastern Mediterranean natural gas industry with a bid to unlock hundreds of billions of dollars of sales stymied by the political and industrial complexities of the region. Cynergy Group, an investment firm based in Cyprus, is looking to spend between $5 billion and $10 billion in the coming years buying under-utilized natural gas assets in the region, according to Chief Executive Officer Mike Germanos. The company is in talks with “some of the most respected global family offices, private equity firms and sovereign funds” about raising the cash, he said. Germanos declined to give the names of his associates or the assets he’s targeting, citing the sensitive nature of the period before Cynergy provides a formal offer. He said the firm is in the final stages of putting its bid together, which it will reveal by mid-June.[Read More…]

May 23, 2019 - 4:12 pm — Closing Bell Story, Energy News, Exploration and Production (E&P)

Energy Transfer, Shell Issue Invitation to Tender for Lake Charles LNG Project

May 3, 2019 - 8:00 am — Closing Bell Story, LNG, Press Releases

Shell Makes Significant Discovery in Perdido Corridor U.S. Gulf

Shell Announces Deep-Water Discovery in Gulf Of Mexico

April 24, 2019 - 9:00 am — Closing Bell Story, Discoveries & Formations, Exploration and Production (E&P), Press Releases

Shell to Sell Interest in Gulf of Mexico Caesar-Tonga Asset to Delek for $965 Million

Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, signed an agreement yesterday to sell its 22.45% non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment LLC, a subsidiary of Delek Group Ltd (Delek). The total consideration for this deal is $965 million in cash. The field is operated by Anadarko Petroleum Corporation, holder of the 33.75% interest. The remaining interest is distributed between Equinor (23.55%), Shell (22.45%) and Chevron (20.25%). The asset is tied back to Anadarko’s Constitution SPAR through subsea equipment. Map: Chevron-Anadarko acquisition deck. The Sales and Purchase Agreement is subject to certain conditions, including regulatory approvals. The transa… Login or click here to subscribe

April 12, 2019 - 5:20 pm — Closing Bell Story, Exploration and Production (E&P), Offshore, Oil and Gas 360 Articles

Shell Exits Gazprom-Led LNG Project In Russia

From Reuters Royal Dutch Shell has decided to exit a Baltic liquefied natural gas (LNG) project led by Russian state gas major Gazprom on the Russian Baltic coast. The development comes as Western firms struggle to expand in Russia because of pressure from sanctions imposed by the United States, while for Gazprom it could mean limited access to Shell’s technology as well as the need to fund the project without the help of the Anglo-Dutch major. Shell, which has a long history of energy cooperation with Russia, said earlier it was studying the possible implications of a recent decision by Gazprom to move toward the full integration of its Baltic LNG and gas processing plants. “Following Gazprom’s announcement on March 29 regarding the final development concept of Baltic LNG, we have decided to stop our involvement in this project,” Cederic Cremers, Shell Russia’s chairman, said in a statement. “We have[Read More…]

April 10, 2019 - 3:52 pm — Closing Bell Story, Energy News, Natural Gas News

Shell Enters China’s Shale Oil Scene With Joint Study With Sinopec

From Reuters Royal Dutch Shell has entered China’s shale oil sector, signing an agreement with state-owned Sinopec to study an East China block, part of the nation’s early efforts to unlock the potentially massive unconventional resource. China is already in the initial stages of developing its vast shale gas resources, with production last year making up just 6 percent of total gas output after more than a decade of work. China’s shale oil is at an even more basic phase due to challenging geology and hefty development costs, experts said. Shale oil makes up less than 1 percent of China’s crude output after several years of development, according to Angus Rodger, research director of Asia-Pacific upstream at Wood Mackenzie. “China’s shale oil has very low permeability, which means very low per well output that makes the economics hard to work,” said an oil and gas official with China’s Ministry of[Read More…]

April 9, 2019 - 12:10 pm — China, Closing Bell Story, Crude Oil News, Energy News

Shell Breaks Market Mold With Deal Linking Gas Prices to Coal

From Bloomberg Royal Dutch Shell Plc agreed to sell liquefied natural gas to a Japanese utility at prices that include a link to coal, the latest innovation in the booming LNG market where buyers are seeking to diversify risks. In what Shell and its customer, Tokyo Gas Co., said Friday is the world’s first such contract, the 10-year deal includes a pricing formula that is based on coal indexation. By diversifying its price exposure for LNG, which has historically been linked to oil, costs of the fuel will be stabilized, Toshio Kawamura, a general manager with Tokyo Gas, said in a briefing Friday. This type of deal would allow a utility to align the pricing of its LNG with changes in the coal market, and therefore better compete in its own power market, said Christopher Goncalves, chair of the energy practice at Berkeley Research Group. This is “a risk management strategy for[Read More…]

April 5, 2019 - 3:58 pm — Closing Bell Story, Energy News, LNG, Natural Gas News

BP and Shell Both Claim to Be Number One in Investor Returns

From Bloomberg In the cutthroat game of global capitalism, there can be only one winner. Unless you’re an oil company. Both BP Plc and Royal Dutch Shell Plc are claiming the top spot for investor returns within their peer group from 2016 to 2018. That’s an important metric — taking first place was a significant element in the doubling of Shell Chief Executive Officer Ben van Beurden’s pay last year. Confusingly, both companies are telling the truth. The two oil majors rated their performance against France’s Total SA and U.S. rivals Exxon Mobil Corp. and Chevron Corp. from 2016 to 2018. Yet their annual reports used different methodologies to determine total shareholder return. While both look at how much shares increased in value, assuming dividends are re-invested, they use different time scales to measure that change. BP takes the average share price for the last three months of each year and compares it. Shell does effectively the same thing, but the three-month[Read More…]

March 29, 2019 - 5:01 pm — Closing Bell Story, Energy News

Shell Sells 40 Percent of Colombian Offshore Blocs to Noble Energy

From Reuters Shell has sold 40 percent of its participation in two offshore oil exploration contracts in Colombia to Noble Energy, which will also operate the blocs, the government said on Tuesday. Colombia recently modified contractual terms for offshore exploration and launched a permanent bidding process in an effort to boost its long-stagnant oil sector. Neither the companies nor the national hydrocarbons agency (ANH) shared financial details of the deal for Noble’s involvement in the Caribbean COL-3 and GUA OFF-3 blocs, which cover more than 880,000 hectares. The ANH has previously said investment in the first development phase for the two blocs will hover around $100 million. Shell signed the contract for them earlier this month. “This is a serious bet by two great companies on the potential of Colombian offshore,” ANH President Luis Miguel Morelli said in a statement. Colombia has some 1.78 billion barrels of reserves, equivalent to[Read More…]

March 27, 2019 - 12:14 pm — Closing Bell Story, Energy News, International

Shell Starts Exploratory Drilling for Oil and Gas Off Bulgarian Coast

From Reuters Royal Dutch Shell said on Tuesday it will start drilling an exploration well in a block off Bulgaria’s Black Sea coast next month for oil and gas. Shell has teamed up with Spain’s Repsol and Australia’s Woodside Energy after sealing a contract with Bulgaria in 2016 for deepwater exploratory drilling as part of Sofia efforts to end its almost complete reliance on Russia’s natural gas supplies. It is Shell’s only upstream project in Bulgaria. “With partners and with good data… we started preparation for drilling 18 months ago. This month the rig will move on to the location and we expect to start drilling on April 1,” Alexander Kayes, Shell’s Bulgaria venture manager, told reporters. Drilling of the exploration well in the 1-14 Khan Kubrat block in the Black Sea will be at a depth of 1,300 meters and is expected to take about three months, he said.[Read More…]

March 26, 2019 - 4:06 pm — Closing Bell Story, Energy News

Oil & Gas 360 - France’s Total and Sempra Energy Sign North America LNG Deal

Shell Boosts Bet on North American LNG Exports

From The Wall Street Journal Royal Dutch Shell PLC and Energy Transfer LP said they are pursuing plans to convert a liquefied-natural-gas import facility in Louisiana into an export terminal, a bet that the future of U.S. shale gas lies in selling it for higher prices in overseas markets. Shell and Energy Transfer said they are putting contracts out for bid to engineers and construction companies to reconfigure Energy Transfer’s existing import facility in Lake Charles, La. The proposed facility would have the capacity to ship 16.5 million tons of U.S. natural gas a year, the companies said Monday. The Anglo-Dutch energy giant and U.S. pipeline operator own equal economic stakes in the project and will decide together whether they should proceed with construction pending the outcome of bidding and their analysis of the global LNG market. A number of U.S. LNG export facilities are expected to begin operations in[Read More…]

March 25, 2019 - 3:30 pm — Closing Bell Story, Energy News, LNG, Natural Gas News

U.S. Buyers of Venezuelan Oil Sub in Shell, Bp Offshore Crude

From Reuters Sanctions on Venezuela’s oil industry have made winners out of Gulf of Mexico offshore heavyweights Royal Dutch Shell Plc and BP Plc as U.S. refiners in need of substitutes are scooping up oil produced in the region. The two major oil companies produce notable amounts of crude oil that refiners have settled on as the immediate replacement for the heavy Venezuelan crude that U.S. refiners relied on for years. Trading volumes in these grades of oil have surged to the highest in months, and prices touched five-year peaks since U.S. sanctions were imposed late in January. U.S. production has surged to a record 12 million barrels per day, but less than 5 percent of that is heavy oil. The sanctions have hamstrung refineries in the United States, as many giant Gulf Coast facilities need heavier oil to produce high-margin refined products like diesel and jet fuel. Heavy crude[Read More…]

March 25, 2019 - 2:33 pm — Closing Bell Story, Crude Oil News, Energy News

Russian LNG Can Compete with North American Projects Despite Challenges: Shell

From S&P Global Platts Moscow — Russian LNG is well positioned to compete with North American projects to reach new markets in Asia and the Atlantic Basin despite the challenges, a Shell executive said Wednesday at the LNG Congress in Moscow. Russian LNG can offer at least three location options, Shell’s Senior Deal Lead Stuart Bradford said. He pointed to the Far East, with the planned capacity expansion at the Sakhalin plant, the Arctic with Yamal LNG and Arctic LNG 2 projects led by Russian Novatek, and the Baltic coast, with the Baltic LNG project. But Russia is facing a challenge from North America as capital expenditure is generally lower over there. “Projects are built in a mature market,” he said. North American projects also benefit from special partnerships, supported by a low-tax regime. Finally, the commercial arrangements in North America are implemented on “basis risks,” with gas prices based on[Read More…]

March 22, 2019 - 5:22 am — Closing Bell Story, Energy News, LNG, Trade