background preloader

Oil and Gas

Facebook Twitter

The Peak Oil President? Post Carbon Institute. The frequency of Internet searches for the term “peak oil” has waned dramatically in recent years; now even the number of articles announcing the “death” of peak oil has dwindled, so universal is the assumption that the concept is completely debunked.

The Peak Oil President? Post Carbon Institute

Why bother beating a dead horse? With supreme irony, it could be within the next few years when the maximum-ever rate of world oil production is actually achieved, to be followed by terminal decline. It’s too early to make a definitive claim, but the evidence is starting to stack up. And the implications are mind-boggling. Last year’s average daily oil production rate will probably end up (when authoritative statistics are published) being about the same as 2015’s—roughly 80 million barrels per day, if we count crude oil only and exclude biofuels and natural gas liquids.

Rockefeller family charity to withdraw all investments in fossil fuel companies. A charitable fund of the Rockefeller family – who are sitting on a multibillion-dollar oil fortune – has said it will withdraw all its investments from fossil fuel companies.

Rockefeller family charity to withdraw all investments in fossil fuel companies

The Rockefeller Family Fund, a charity set up in 1967 by descendants of John D Rockefeller, said on Wednesday that it would divest from all fossil fuel holdings “as quickly as possible”. The fund, which was founded by Martha, John, Laurance, Nelson and David Rockefeller, singled out ExxonMobil for particular attention describing the world’s largest oil company as “morally reprehensible”. John D Rockefeller, who was the richest person in US history when he died in 1937, made his fortune from Standard Oil a precursor of ExxonMobil. “There is no sane rationale for companies to continue to explore for new sources of hydrocarbons,” the RFF, which has relatively small total holdings of $130m (£92m), said in a statement.

Financial Times - Paid Post by BP. Fossil fuels investment takes nosedive - Climate News NetworkClimate News Network. Energy experts say global investment patterns show a spectacular shift, with renewables on the rise and support for fossil fuels in sharp decline.

Fossil fuels investment takes nosedive - Climate News NetworkClimate News Network

LONDON, 17 September, 2016 – A revolution is taking place in the global energy sector, with investments in oil and gas declining by 25% in 2015 while energy produced from renewables rose by more than 30%. Oil majors told to adapt or die - Climate News NetworkClimate News Network. As profits and prices plummet, the oil conglomerates – some of the world’s biggest companies – have been warned they must change their ways or face extinction.

Oil majors told to adapt or die - Climate News NetworkClimate News Network

LONDON, 9 May, 2016 – At best, big oil companies such as ExxonMobil, Shell, Chevron and BP face a period of gentle decline, but will ultimately survive. At worst, if they do not adapt and change direction, “what remains of their existence will be nasty, brutish and short”. That’s the core message of a research paper on the oil corporates by one of the UK’s leading energy experts, Paul Stevens, a senior research fellow at the London-based Chatham House thinktank, the Royal Institute of International Affairs. Present management strategies within the oil majors have failed to deliver value to shareholders, and profits are declining sharply, Stevens says.

Impact on climate “The IOCs cannot assume that, as in the past, all they need to survive is to wait for crude prices to resume an upward direction,” Stevens warns. Limiting emissions. Cookiewall. New Energy Consumer: Thriving in the Energy Ecosystem-Accenture. Oil Majors Lost One Engine; Now the Second One Is Sputtering. If Big Oil was a two-engine airplane, you could say it’s been flying on a single engine since energy prices crashed in 2014.

Oil Majors Lost One Engine; Now the Second One Is Sputtering

Now, the second motor is sputtering. The major integrated oil companies, including Exxon Mobil Corp., Total SA and BP Plc, have relied on their so-called downstream businesses, which include refining crude into gasoline, oil trading and gas stations, to cushion the losses on their upstream units, which pump crude and natural gas. “The crash in oil prices in late 2014 brought refineries worldwide a pleasant surprise: booming margins,” said Amrita Sen, chief oil analyst at consulting firm Energy Aspects Ltd. in London.

“But now, the market is changing.” BP, the first major to report second-quarter results, showed the impact on Tuesday. BP makes record loss and axes 7,000 jobs. BP is to axe another 7,000 jobs after reporting an annual loss of $6.5bn (£4.5bn), the worst in its history.

BP makes record loss and axes 7,000 jobs

Shares in the oil company dived 8.6% to 335p by the end of trading on Tuesday, wiping almost £6bn off the stock market value of the business, and helped drag down the wider FTSE 100 index of leading shares in London. The poor financial performance of BP, followed by a 68% fall in quarterly profits from rival Exxon Mobil in the US and further weakness in the price of crude, depressed stock markets on both sides of the Atlantic on Tuesday. The FTSE 100 finished the day down 2.2% at 5922.01 points, while in New York, the Dow Jones fell more than 230 points, or 1.4%, in early trading. Connor Campbell, a financial analyst at Spreadex, a betting company that follows the stock market, said: “The resumption of Brent crude’s decline has been the main catalyst for the day’s dismal trading.

And, as ever, when the commodities begin to fall, the FTSE loses its way in pretty dramatic fashion.” 2015 Oil and Gas Trends. Industry perspectives Roiled by global economic turmoil, untamed competition, and mind-numbing price swings, energy companies must be bold about transforming their business models.

2015 Oil and Gas Trends

Leave the worrying about the highs and lows of oil prices to obsessed analysts and headline writers. That volatile aspect of the energy business is largely out of the control of industry leaders. IEA sees slower global gas demand growth to 2021. BRUSSELS Growth in natural gas demand will slow to an average 1.5 percent a year globally through 2021, as stagnation in Europe and uncertainty about Chinese consumption offsets robust growth in India, the International Energy Agency (IEA) said on Wednesday.

IEA sees slower global gas demand growth to 2021

After growth of 2.5 percent over the last six years, gas is facing competition from renewable energy and cheap coal, meaning the global gas market will remain over supplied. In Europe, Russian gas export monopoly Gazprom (GAZP.MM) will be challenged by the prospect of a glut of liquefied natural gas (LNG) as export capacity rises 45 percent by 2021, even as demand drops in key markets in Japan and Korea. World oil demand and supply could hit 100 million barrels per day by 2018 or 2019.

Canadian government thinktank warns that renewables will gut market for Canada's dirty oil / Boing Boing. ExxonMobil, Rockefellers face off in climate battle. US energy giant ExxonMobil is facing an onslaught from environmentalists and some shareholders alleging it hid what it knew about the effects of fossil fuels on climate change.

ExxonMobil, Rockefellers face off in climate battle

In an ironic twist: among the opponents is the Rockefeller Family Fund, built on the fortune amassed by John D. Rockefeller, founder of Standard Oil, which became Esso, then Exxon and then, in 1999, ExxonMobil. The RFF met last January, in secret, in Manhattan with environmental nongovernmental groups "to establish in the public's mind that Exxon is a corrupt institution that has pushed humanity (and all creation) towards climate chaos and grave harm," according to an internal document on the meeting seen by AFP.

"We hosted a meeting with leading advocates to understand their thoughts on how to best respond to the outrageous conduct," Lee Wasserman, the director of RFF, told AFP. Investors warned: Forget fossil fuels - Climate News NetworkClimate News Network. Corporate winners and losers amid the oil price crash. Investors Could Drag Exxon Kicking And Screaming Into A Low Carbon Economy. ExxonMobil is not having a good week.

Investors Could Drag Exxon Kicking And Screaming Into A Low Carbon Economy

First, the Securities and Exchange Commission ruled that the company has to allow shareholders to vote on a climate change resolution. Then, the Rockefeller Family Fund announced it would divest from fossil fuels — and took the opportunity to hit Exxon specifically for misleading investors about the risks of climate change. The Economist. OIL traders are paying unusual attention to Kharg, a small island 25km (16 miles) off the coast of Iran. On its lee side, identifiable to orbiting satellites by the transponders on their decks, are half a dozen or so huge oil tankers that have been anchored there for months. Farther down Iran’s Persian Gulf coast is another flotilla of similarly vast vessels.

They contain up to 50m barrels of Iranian crude—just what a world awash with oil could do without. The lifting of nuclear-related sanctions against Iran on January 16th puts those barrels at the forefront of the country’s quest to recapture a share of international oil markets that it has been shut out of for much of the past decade. Why the price of oil will recover faster than you think. It no doubt feels like a new paradigm for oil investors with the price of oil falling 72 per cent since 2014, the second-largest peak-to-trough decline in more than 30 years. Many are pointing fingers at the Organization of the Petroleum Exporting Countries for the monster wave of oil now hitting the markets, but it really all started with U.S. shale producers. Many forget that deep oil-price declines are soon followed by some sizable recoveries Following the 2008 financial crisis, ultra-low interest rates, three rounds of quantitative easing in the U.S. and a risk-on atmosphere provided vast amounts of capital (both debt and equity) to U.S. producers, who quickly put it to work drilling and fracking.

As a result, more than four million barrels per day of production was added at a time when there just wasn’t enough demand globally. Multi-decade reductions in Oil usage from shift to solar, batteries and nuclear will have geopolitical impacts on OPEC nations. People have mainly been looking at the shift to electric cars over the next few decades in terms of an overall environmental impact. This would slow climate change by reducing emissions and air pollution. However, there is an interesting geopolitical impact. * current near term forecasts of oil prices see oil possibly going to $20 per barrel * OPEC has a relatively business as usual forecast where oil does not reach $95 per barrel until 2040 * $50-60 per barrel oil might not return until 2017-2019 * there is an overall global decrease in oil demand and reduced growth in oil demand with the reduced economic performance in China and the World * there are many predictions of a massive shift to electric cars, solar and batteries between 2020 and 2050.

European and US oil consumption shrank even before a massive shift to electric cars, batteries, solar and nuclear Strong growth had increase oil demand in China and other developing countries. Industry optimism building for oil and gas production in Quebec. Oil and gas players like Questerre Energy Corp. are turning their sights to Quebec for growth as prospects sour in Alberta under the weight of regulatory and market uncertainty.

“Who would have thought that I’d go to Quebec to avoid my problems?” Said Questerre chief executive Michael Binnion, the Calgary-based executive who’s also head of Quebec’s oil and gas trade association. Japan Today. Nov. 14, 2015 - 06:01AM JST. TROUBLING: Oil and gas companies are edging towards default. Miraflores Palace/Handout/Reuters Banks have an energy problem. In a note on Friday, JPMorgan's Vivek Juneja broke down the results from the 2015 Shared National Credits exam, which is a Federal Reserve initiative to review and classify large syndicated loans. The review captures any loan bigger than $20 million that is shared by three or more supervised institutions.

Bp technology outlook. Canada’s days as an energy super-power are over and the oil crash is only one culprit.

Archive

Oversupply of oil through at least 2016. Total Collapse In Interest For Oil Assets: Brazil Oil Auction Is Near Complete Failure. Natural gas prices in Asia mainly linked to crude oil, but use of spot indexes increases. Changing the climate for fuel subsidies. Financial Sector To Cut Credit Supply Lines For Oil And Gas Industry. Forbes Welcome. North Sea oil and gas industry investment hailed by Chancellor. The Chancellor has welcomed news that £3 billion is to be invested in the North Sea and its supply chain, supporting up to 6,000 UK jobs and creating more than 400. The announcement comes as the UK Oil & Gas Authority has approved the development of the Culzean gas field – the largest new field discovered in the UK North Sea for a decade. The Maersk Oil operated High Pressure, High Temperature (HPHT) Culzean field was discovered in 2008 and is expected to produce enough gas to meet 5% of total UK demand at peak production in 2020 to 2021.

Oil and gas pipeline partnerships still look like bargains. UK's oil and gas industry braces for further job cuts. Shell Didn't Quit Alaska Out of the Goodness of Its Heart. Volkswagen scandal widens: $7.3 billion cost, 11 million cars - Sep. 22, 2015. Oil industry risks trillions of 'stranded assets' on US-China climate deal. Are stranded assets wearing down the oil and coal industries? Diesel drivers could face higher taxes as pollution targets are missed. Motorists face hefty car tax hikes as green cars leave black hole for Treasury. Government rejects diesel tax increases but will consider emission zones.

Dirty diesel cars could be banished as Britain ordered to cut air pollution. The argument for divesting from fossil fuels is becoming an overwhelming one. Have diesel cars been unfairly demonised for air pollution? Are diesel cars about to be phased out due to pollution ruling? Price of diesel drops to five-year low at 112.95p per litre - making it cheaper than petrol for first time in 14 years  UK diesel prices drop below petrol for first time in 14 years. Diesel cheaper than petrol after supermarkets cut prices - BBC News. Diesel 'drought' in Britain's forecourts as local refineries close and higher dependence on foreign fuel. The Emerging Megatrend Coming To Oil & Gas. The New Oil Order: in charts — FT. US shale has been stymied by Saudi Arabia, says Shell CEO — FT. Cheap oil endangers poorer nations’ switch to renewable energy — FT.