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Tuesday, June 25, 2019

Oil And Gas Prices News

© Alexandre / Adobe Stock

US O&G Industry Reaps the Benefits of International Trade

Rising exports have thrown a lifeline to U.S. shale producers and refiners, giving them an additional outlet at a time when the domestic market has been at risk of becoming saturated. The United States exported record quantities of natural gas, propane, gasoline, distillate fuel oil and light crude last year while continuing to import the heavy oils needed by its refineries. Gas exports increased by almost 30 percent in 2016 and have more than tripled in the last decade, limiting the build up of unused gas and supporting prices in recent months despite the warmest winter on record.

Peter Hinchliffe (Photo: ICS)

ICS Applauds IMO Roadmap for Enissions Reduction

The International Chamber of Shipping (ICS) has applauded the agreement, last Friday, by the IMO Marine Environment Protection Committee (MEPC) to develop a comprehensive Roadmap for addressing CO2 emissions from international shipping – with initial CO2 reduction commitments to be agreed by IMO by 2018. However, ICS says the IMO Road Map will go much further than the Paris Agreement. “The final stage of the Road Map to be enacted by 2023 should establish a global mechanism for ensuring that these IMO CO2 reduction commitments will actually be delivered.” said Peter Hinchliffe.

Photo: Nigeria LNG Limited

Nigeria's LNG Export Falls

Babs Omotowa, Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), has raised alarm over Nigeria’s dwindling investments in Liquefied Natural Gas (LNG), according to a report in Thisday. He noted that with no new investments, Nigeria would possibly drop from her current position of the 4th world’s largest exporter of LNG to 10th position by 2020. NLNG had earned $90 billion revenue since 1999 and that it has elevated Nigeria to number four exporter of LNG in the world, after Qatar, Malaysia and Australia.

Image: Korea Gas Corp

Total, KOGAS Extend Cooperation on LNG

Korea Gas Corp, the world’s biggest importer of LNG, has struck deals with French giant Total to extend its reach into the liquefaction sector, reports Reuters. Total has pledged to press forward with investment in LNG despite the downturn in oil and gas prices and has signed a new agreement with South Korean utility company Kogas to explore mutual opportunities across the LNG value chain. The agreement is designed to jointly identify and pursue opportunities to develop the LNG market in Asia and in new importing countries, Total said in a statement.

What Future Services Would You Like to See Made Available? (Credit: "The Crew Connectivity Survey 2015," Futurenautics)

For Maritime Recruitment, Connectivity is Key

When you are thousands of miles, and weeks or months out at sea, the next best thing to physically being there, is an electronic connection home, and today, few mariners will board vessels without access to some form of it. Indeed, internet access and cheap global roaming SIM cards top the list of desired amenities in recent surveys of seafarers. And while keeping in touch and up to date with family is most important, shipboard personnel use an array of connectivity applications - social media…

Photo Chesapeake Energy Corp

Struggling U.S. O&G Companies Eye Rare Financing Deals

Some cash-strapped U.S. oil and gas companies are considering creating an unusual layer of debt as a way of surviving the rout in oil and gas prices, according to restructuring advisors. Chesapeake Energy Corp for example is considering the strategy to swap some of its roughly $9 billion debt. Severely distressed companies may issue so-called 1.5 lien debt, sandwiched between the first and second liens, to raise new capital. Investors with a stomach for risk would get a better yield than for the top debt, and have a stronger claim than junior creditors if the company filed for bankruptcy.

Photo: Marin Teknikk AS

Marin Teknikk Design for Ultra Deep Offshore’s DSCV Newbuilds

Marin Teknikk has entered into a contract with Wuchang Shipbuilding Industry Group for delivery of Design & Engineering of two Diving & Construction vessels for Ultra Deep Offshore Ltd. in Singapore. The vessels are a newly developed MT6023 DSCV design, and will be equipped with an 18 men diving system for operations down to 300 m water depth. MT6023 DSCV is an advanced Diving- and Construction vessel developed for demanding operations worldwide. The vessel will have a length of 103 meters and a breadth of 23 meters…

Europe's largest LNG plant build by Linde Engineering. Photo: Linde Group

Iran Contracts German Firm to Make LNG Facility

Germany’s Linde Group will build the first FLNG (Floating Liquefied Natural Gas) facility in Iran, Iran’s oil minister Bijan Namdar Zanganeh said. Zanganeh said that building LNG-producing facility in line with exports of LNG to European countries is a priority for the ministry. Currently, it has a 60-per cent physical growth and when completed, it will add to the 10.5 million metric tons of LNG annually, reports MNA. On the issue of seizing [by German authorities] of LNG facility equipment in Germany…

Eldar Sætre at the Autumn Conference 2015 (Photo: Ole Jørgen Bratland / Statoil)

Energy Industry Faces a Tough Reality -Statoil CEO

Global challenges and new opportunities in the energy market will create a turning point for the industry, says Statoil CEO Eldar Sætre at the Statoil Autumn Conference. In his speech to the Norwegian Prime Minister and other guests at the annual Autumn Conference, Sætre emphasized that the energy world is changing and the oil and gas industry is currently facing a tough reality, as global upstream investments are estimated to fall by 20 percent in 2015. But oil and gas will continue to play an important role in the future energy mix. “We know that energy demand is growing.

CEO of Statoil ASA, Eldar Sætre

A Tough Reality for Industry - Statoil

Global challenges and new opportunities in the energy market will create a turning point for the industry, says Statoil CEO Eldar Sætre at the Statoil Autumn Conference. In his speech to the Norwegian Prime Minister and other guests at the annual Autumn Conference, Sætre emphasized the fact that the energy world is changing and the oil and gas industry is currently facing a tough reality, as global upstream investments are estimated to fall by 20% in 2015. But oil and gas will continue to play an important role in the future energy mix. "We know that energy demand is growing.

(Image: iStock)

Deepwater Downturn: Bump in the Road or Long-term Slowdown?

IMA/World Energy Reports has just completed a comprehensive assessment of the five year outlook for the deepwater sector. The new report – the 19th annual floater market forecast prepared by IMA since 1996 – provides our forecast of orders for floating production systems between 2016 and 2020. Here’s an overview of the findings and conclusions in the report. We see the downturn in market conditions and implosion of Petrobras as a bump in the road. While the outlook is clearly dimmer than last year…

(Image: iStock)

Deepwater Downturn: Bump in the Road or Long-term Slowdown?

IMA/World Energy Reports has just completed a comprehensive assessment of the five year outlook for the deepwater sector. The new report – the 19th annual floater market forecast prepared by IMA since 1996 – provides our forecast of orders for floating production systems between 2016 and 2020. Here’s an overview of the findings and conclusions in the report. We see the downturn in market conditions and implosion of Petrobras as a bump in the road. While the outlook is clearly dimmer than last year…

Shipping Under Pressure

AFTER enjoying a continuing boom for four years up to late 2008, the international shipping markets hit a wall, and thereafter started to slide down it. Although there has been a recovery from that freight market nadir, the six years from 2009 to 2014 have been very challenging in terms of trying to achieve a reasonable return from the tanker, dry bulk and container ship sectors. Over the same period of time, some of the volatility has gone out of ship operating costs, with a small decrease (the first for six years) recorded in respect of 2009, prior to two years of small increases.

Maritime Fuel of the Future: Training to an Uncertain Standard

Despite its unquestionable allure, LNG as a fuel carries with it as many risks as it does answers to the problems it promises to solve. As industry and OEM’s work to remove any doubt, the collaborative effort outpaces the slow-moving regulatory machine. Even as Lloyds Register predicts that LNG will reach a maximum 11% share of marine propulsion solutions in 2030, it also says that segments with higher proportion of small ships will see the highest LNG uptake. And, at the same time…

Statoil Reports Dramatic Increase in Net Income

Statoil's second quarter 2011 net operating income was NOK 61 billion, a 129% increase compared to NOK 26.6 billion (nearly $11.3 billion) in the second quarter of 2010. The quarterly result was mainly affected by a 32% increase in the average prices for liquids measured in NOK, a 28% increase in average gas prices, a NOK 8.8 billion (over $1.6 billion) gain related to the 40% Peregrino divestment and an 18% decrease in lifted volumes, when compared to the same period last year.

Safe stroll: crew aboard the Maersk Peregrino FPSO off Brazil (and above) Photo: Oeyvind Hagen Statoil

Offshore Oil & Gas: Floating Production Market a Bright Spot

Despite industry gloom about the offshore market, orders for production floaters continue to flow. Over the past few weeks a speculatively-ordered FLNG found use off Africa, negotiations began to convert a third LNG carrier to an FLNG, an FSRU was ordered and a modified LNG tanker has been leased for storage use. Looking forward, we are tracking 30 projects considered likely to generate contracts for floating production units over the next 18 months. Among the likely awards are 18 FPSOs, 2 production semis, 5 LNG liquefaction or regasification units and 5 FSOs.

Helge Lund, Statoil's chief executive officer

Statoil: Third quarter 2011 Results

Statoil's third quarter 2011 net operating income was NOK 39.3 billion, a 39% increase compared to NOK 28.2 billion in the third quarter of 2010. "Statoil delivered strong financial results in the third quarter of 2011, reflecting operational performance in line with expectations and strong oil and gas prices throughout the period," says Helge Lund, Statoil's chief executive officer. Statoil presented the long term strategy and long term growth outlook on its capital markets day in June 2011…

Shell Stops Work on GOM Gas Project

Royal Dutch Shell plc announced that the company will not move forward with the proposed 140,000 bpd Gulf Coast gas-to-liquids (GTL) project in Louisiana. Shell is a leader in GTL technology, and the company said it has evaluated a number of development options for GTL on the US Gulf Coast, using natural gas feedstocks. Despite the ample supplies of natural gas in the area, the company has taken the decision that GTL is not a viable option for Shell in North America, at this time…

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to increase by 2.9 per cent in both 2014 and 2015, with crew wages and repairs & maintenance the cost categories likely to increase most significantly.

Marine Contracting Goes ‘Down Under'

Marine Contracting has announced that it has opened its Australian office in Perth as it seeks to bring its industry leading engineering and offshore marine solutions to the Australian offshore market. Key services that Marine Contracting will provide to Australian operators (among others) include permanent mooring and riser installations, pre-lay mooring for drilling rigs, and rig moving services for jack-ups. Marine Contracting will also be opening a new yard to house its offshore equipment in Karratha.

Any Future for North Sea Oil & Gas?

Mark Goodall of Aker Solutions believes there is a future for N.Sea oil & gas despite the present focus on wind and nuclear energy power. Goodall explained that the low hanging fruit may have gone but there are still several significant new field developments coming on stream with others still in the planning and pre-development phases. We are also seeing the redevelopment of some existing fields with new investment in facilities upgrades to extend the viable operating field life.

Photo: Petrobras

The Deepwater Sector's Perfect Storm

The drop in oil/gas prices and ongoing implosion in Petrobras have combined to create a perfect storm in the deepwater sector. More than 170 projects involving oil production floaters and 35 floating liquefaction projects are in the planning stage. But oil company capital budgets are being trimmed to offset the downturn in revenue and investment decisions are being deferred until oil pricing rebounds – and the investigation involving Petrobras is impacting its ability to order new production floaters.