Tue, Mar. 22, 6:06 PM
- For the first time in years, drillers are expected to add less oil from new fields in 2016 than they lose to natural decline in old ones, according to an analysis by Rystad Energy.
- New projects expected to generate ~3M bbl/day will come from new projects this year compared with 3.3M bbl/day lost from established fields, but the decline will outstrip new output by 1.2M bbl/day in 2017 as investment cuts made during the oil rout start to take effect on the way to a "very strong effect" by 2020, Rystad says.
- In the deepwater Gulf of Mexico this year, Shell (RDS.A, RDS.B) is scheduled to start the Stones project, with projects run by Noble Energy (NYSE:NBL) and Freeport McMoran (NYSE:FCX) also due to begin; Anadarko Petroleum (NYSE:APC) started the Heidelberg field in January.
- Eni (NYSE:E) commenced the Goliat field in the Arctic this month, Shell started producing from a new area of the BC-10 project in Brazil earlier this month, and Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) plans to begin output from the TEN field offshore Ghana this summer.
- Morgan Stanley estimates nine projects are in contention to get a green light this year, including BP’s Mad Dog Phase 2 in the Gulf of Mexico and Eni’s Zohr gas field in Egypt, yet Rystad believes these developments will not be enough to counter the natural decline in oil fields that are starting to suffer from lower investment.
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DWTI, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Tue, Mar. 22, 5:26 PM
- Petrobras (NYSE:PBR) and its partners at the giant Libra pre-salt field off Brazil said today they had struck the largest oil column found so far at the play.
- PBR said a 301-meter-thick oil column was found at a well in the Santos basin, with good quality oil unearthed “in reservoirs of excellent productivity."
- PBR operates Libra and owns a 40% stake, and is joined by Shell (RDS.A, RDS.B) and Total (NYSE:TOT) with 20% each, while China National Petroleum (NYSE:PTR) and Cnooc (NYSE:CEO) each hold 10%.
Tue, Mar. 22, 12:58 PM
- Statoil (STO +0.3%) says industry studies show low risk of any spill from the Arctic Barents Sea reaching the polar ice cap, as oil and sea ice tend to drift in the same direction.
- "There is no health, environmental or safety challenge that is so significant that it can’t be appropriately mitigated," according to the chair of the Barents Sea Exploration Collaboration, a venture set up by STO and 15 other companies including Royal Dutch Shell (RDS.A, RDS.B).
- Norway is opening more of the Barents Sea off its northern tip to oil explorers as it seeks to boost national crude production that has dropped by half since 2000; the government plans to award licenses before summer in the Barents Sea Southeast, which includes the northernmost blocks it has ever offered.
Tue, Mar. 22, 8:51 AM
- Royal Dutch Shell (RDS.A, RDS.B) and Cnooc (NYSE:CEO) announce a final investment decision to double the capacity of their 50-50 joint venture petrochemical plant in China's Guangdong province.
- The project includes the ongoing construction of a new ethylene cracker and ethylene derivatives units, which will increase ethylene capacity by more than 1M metric tons/year, and include a styrene monomer and propylene oxide plant, which will be the largest such plant ever built in China.
- The companies say the plant will produce 150K metric tons/year of ethylene oxide, 480K tons/year of ethylene glycol and 600K tons/year of high quality polyols.
Mon, Mar. 21, 2:37 PM
- Canadian regulators extend by three months Petronas' application to build the Pacific NorthWest liquefied natural gas terminal so the Malaysian company can provide more information about the project’s environmental impacts.
- The Canadian Environmental Assessment Agency announced the extension Saturday after Petronas detailed changes to the project's construction methods and schedule.
- The delay is “probably not unreasonable” because it is part of the regulatory process, says Alex Ferguson of the Canadian Association of Petroleum Producers, but each delay (I, II) becomes an issue for Canada and whether the country can get large energy infrastructure projects approved and built.
- None of the 20-plus groups - including stakeholders such as Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Exxon (NYSE:XOM) - that have proposed LNG export projects for Canada's west coast have moved ahead with their plans.
Mon, Mar. 21, 11:22 AM
- Chevron (CVX -1.2%) says it shipped the first cargo of liquefied natural gas from its new $54B Gorgon plant off Australia's west coast to a customer in Japan.
- CVX considers the first export from Gorgon, which has been hit by delays and rising costs since construction started, "a key milestone in our commitment to be a reliable LNG provider for customers across the Asia-Pacific region," as the project begins generating revenue for CVX and its partners including Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM).
- Gorgon, one of the world's biggest new LNG operations and the single largest investment in Australia by a private company or government, began LNG production two weeks ago.
Sat, Mar. 19, 8:25 AM
- Saudi Aramco wants to buy more U.S. refining and chemical plants once the break-up of its Motiva joint venture with Royal Dutch Shell (RDS.A, RDS.B) is complete, Reuters reports.
- Aramco wants to acquire refineries and get into chemicals, a source tells Reuters, saying "they want to expand and Shell doesn't"; Jefferies analyst Jason Gammel looks at the deal as giving both companies "a lot of flexibility."
- Any potential acquisition targets are not yet known, but Aramco clearly seeks to expand its footprint in major markets, helping guarantee demand for its crude oil exports amid intensifying global competition.
- The breakup also allows Aramco to accelerate the landmark public offering of its vast downstream operations, which amount to nearly 5.5M bbl/day of solely or jointly owned refining capacity around the world.
- For Shell, being the sole owner of two Louisiana refineries in Louisiana as well as some U.S. marketing operations offers an opportunity to sell assets to help fulfill its $30B sale program over the next three years to pay for its $50B BG Group takeover; Shell says Aramco also will pay a so far undisclosed sum on the completion of the deal.
- While an outright sale of the refineries is seen as less profitable, Shell will be able to offer much of the infrastructure linked to the operations, including pipelines, storage tanks and distribution facilities, to other companies including its Shell Midstream Partners (NYSE:SHLX) MLP.
Fri, Mar. 18, 8:09 AM
- The gasoline producing unit at Royal Dutch Shell's (RDS.A, RDS.B) 316K bbl/day Deer Park, Tex., refinery has been out of production since Wednesday night when a leak was discovered in a pipe on the unit, Reuters reports.
- The fluidic catalytic cracking unit reportedly has been kept at operating temperature and circulating gas oil feedstock while Shell works to repair the naphtha leak.
- Deer Park is a 50-50 joint venture between Shell and Mexico’s national oil company Pemex.
Wed, Mar. 16, 5:30 PM
- Royal Dutch Shell (RDS.A, RDS.B) and Saudi Aramco will end their 50-50 refining joint venture, agreeing to split the assets of the Motiva refineries.
- Saudi Aramco says it will retain the Motiva name, the refinery at Port Arthur, Tex., and 26 distribution terminals, as well as an exclusive license to use Shell’s brand for gasoline and diesel sales in much of the U.S.
- Shell will retain the refineries at Norco and Convent, La., nine distribution terminals and the Shell brand in Florida, Louisiana and the northeast U.S.
Wed, Mar. 16, 11:31 AM
- BP and Royal Dutch Shell (RDS.A, RDS.B) are each ~1.2% higher after the U.K. announces tax cuts for the North Sea oil and gas industry.
- Chancellor of the Exchequer Osborne cuts the supplementary charge for the oil and gas industry to 10% from 20%, bringing the overall corporate tax rate to 40% from 50%, and scraps the 35% Petroleum Revenue Tax; the changes will be backdated, starting from January of this year.
- The tax cuts come after Brent oil prices fell by more than 60% since mid-2014, making much of the production in the U.K. North Sea uneconomic as costs escalate at aging fields.
- Shares of independent oil companies operating in the U.K. North Sea - including EnQuest (OTC:ENQUF), Cairn Energy (OTCPK:CRNCY) and Premier Oil (OTC:PMOIF) - surged on the news.
Wed, Mar. 16, 10:13 AM
- Petronas' proposal to build the Pacific NorthWest LNG terminal on Canada’s Pacific coast faces further delays, as the Environment and Climate Change Minister reportedly prepares to declare the project likely would have a significant environmental impact.
- The minister is expected to refer a verdict to Prime Minister Trudeau’s cabinet rather than approving the C$36B project with conditions; the government’s review period ends March 22, but the cabinet has no deadline for its deliberations.
- None of the nearly two dozen Canadian liquefied natural gas proposals designed to ship fuel to Asia have been moved forward by backers including Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Exxon (NYSE:XOM) and AltaGas (OTCPK:ATGFF).
- Earlier: Petronas threatens to pull out of LNG over new climate change rules (Mar. 8)
Mon, Mar. 14, 12:57 PM
- Apache (APA -1.9%) plans to start producing unconventional gas from its joint venture with Royal Dutch Shell (RDS.A, RDS.B) in Egypt’s Western Desert by the end of June, APA's Egypt Region VP tells Bloomberg.
- The JV will begin drilling the country’s first unconventional gas well in a pilot project by the end of this month, and drill two additional wells before talking with the government about full development of the field by horizontal drilling and fracking, the APA exec says.
- Shell is the operator in the unconventional gas pilot project with a 52% interest, while APA owns the other 48%; the operation lies within Egypt’s Northeast Abu Gharadig licensing area, in which the two companies together own a 50% stake and state-run Egyptian General Petroleum holds the rest.
Mon, Mar. 14, 8:37 AM
- Royal Dutch Shell (RDS.A, RDS.B) says it has started oil production at the third and final phase of the deepwater Parque das Conchas development off Brazil.
- Production for the final phase of project is expected to add up to 20K boe/day at peak production from fields that already have produced more than 100M barrels since 2009.
- Parque das Conchas Phase 3 comprises five producing wells in two Campos Basin fields (Massa and O-South) and two water injection wells.
Fri, Mar. 11, 5:45 PM
- Williams Partners' (NYSE:WPZ) says it is delaying the in-service date for its $925M Constitution natural gas pipeline to H2 2017 from Q4 2016 as it awaits environmental permits in New York.
- The 124-mile, 650K dkm/day pipeline will bring gas from the Marcellus shale in Pennsylvania to New England and New York, but the project has triggered opposition from landowners, public officials and environmental groups.
- WPZ, the largest stakeholder at 41%, is developing the pipeline with Cabot Oil & Gas (NYSE:COG), Piedmont Natural Gas (NYSE:PNY) and WGL Holdings (NYSE:WGL).
- Separately, WPZ reaches an agreement to provide deepwater gas gathering services for Royal Dutch Shell (RDS.A, RDS.B) and Nexen's (NYSE:CEO) Appomattox development offshore Louisiana.
Thu, Mar. 10, 4:27 AM
- Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden's total direct remuneration fell 8% last year to €5.1M ($5.6M), the company said in its annual report.
- His total package, including pension and tax equalization, was €5.6M, down from €24.2M in the previous year, mainly due to a significant fall in pension income that was positively affected by his promotion to chief executive in 2014.
- In comparison, rival BP CEO Bob Dudley's total remuneration rose 20% to $19.6M, despite the firm delivering one of the lowest profits in its history.
Wed, Mar. 9, 2:58 PM
- Colonial Pipeline’s unwillingness to expand its pipelines that run between Texas and New Jersey is raising the cost of fuel, companies told the FERC at a meeting held to discuss Colonial's proposal to change the rules on its pipeline.
- Colonial’s 5,500-mile pipeline system, an essential energy transportation artery to the U.S. northeast, has been full since 2012, so some longtime shippers do not get as much space to ship fuel as they need.
- Marathon Petroleum (NYSE:MPC) and American Airlines (NASDAQ:AAL) said at the meeting they have to buy fuel on the east coast because they cannot ship enough fuel on the pipeline.
- Gas station operators Sunoco (NYSE:SUN) and Murphy USA (NYSE:MUSA) told the commission they pay other companies for additional pipeline space.
- The pipeline is owned by Koch Industries, South Korea’s National Pension Service, KKR, Royal Dutch Shell (RDS.A, RDS.B) and others.
Royal Dutch Shell Plc engages in the oil and natural gas production. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which have similar characteristics and are engaged in... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United Kingdom
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