OilPrice

India’s relentless search for hydrocarbons to fuel its booming economy has managed the rather neat diplomatic trick of annoying Washington, delighting Tehran and intriguing Baghdad, all the while leaving the Indian Treasury fretting about how to pay for its oil imports, given tightening sanctions on fiscal dealings with Iran. On June 7th the U.S. State Department reluctantly announced that it was renewing India’s six-month waivers for implementing sanctions against Iran, along with seven other countries eligible for waivers from sanctions owing to good faith efforts to substantially reduce their Iranian oil imports. In New Delhi’s case, it is the U.S. and E.U.-led sanctions rather than any willingness on India’s part that has seen a fall in its Iranian oil imports. India is the second largest buyer of Iranian oil, a nation with whom it has traditionally had close ties. U.S. Secretary of State John Kerry said that India, China, Malaysia, South Korea, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan had all qualified for an exception to sanctions under America’s Iran Sanctions Act, based on additional significant reductions in the volume of their crude oil purchases from Iran. Kerry told reporters, “Today’s determination is another example of the international community’s strong and
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Technology, technology, and more technology—this is what has driven the American oil and gas boom starting in the Bakken and now being played out in the Gulf of Mexico revival, and new advances are coming online constantly. It’s enough to rival the Saudis, if the Kingdom allows it to happen. Along with this boom come both promise and fear and a fast-paced regulatory environment that still needs to find the proper balance. In an exclusive interview with Oilprice.com, Chris Faulkner, CEO of Breitling Energy Companies—a key player in Bakken with a penchant for leading the new technology charge—discusses: How Bakken has turned the US into an economic powerhouse What the next milestone is for Three Forks What Wall Street thinks of the key Bakken companies Where the next Bakken could be What to expect from the next Gulf of Mexico lease auction What the intriguing new 4D seismic possibilities will unleash What the linchpin new technology is for explorers How the US can compete with Saudi Arabia Why fossil fuel subsidies aren’t subsidies How natural gas is the bridge to US energy independence Why fossil fuels shouldn’t foot the bill for renewable energy Why Keystone XL is important Why the US
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If you want an objective view of energy, ask an economist, who can tell you what to expect to pay at the pump in the coming years, and why, as well as what to expect from medium- and long-term economic growth and what the real drivers will be. These are questions that are crucial to a pending decision by the US government over natural gas exports, and while we know where big oil stands versus its manufacturing rivals—it’s the economist who can set things straight. Mark Thoma is a macroeconomist and time-series econometrician at the University of Oregon. His research focuses on how monetary policy affects the economy, and he has also worked on political business cycle models. Mark is currently a fellow at The Century Foundation, a columnist at The Fiscal Times, an analyst at CBS MoneyWatch, and he blogs daily at Economist’s View. In an exclusive interview with Oilprice.com, Thoma discusses: What we can expect from gas prices this summer and beyond Why clean energy won’t see an dramatic investment rival, for now How political feasibility, not economic feasibility, drives the ethanol mandate Why the ethanol mandate might eventually be nixed How we weigh the free market against government
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The U.S. currently imports more than 80% of the lithium it uses, with the silvery metal winding up in batteries from cell phones to electric cars. According to a United States Geological Survey publication on lithium, “The only commercially active lithium mine in the United States was a brine oper ation in Nevada. The mine’s production capacity was expanded in 2012, and a new lithium hydroxide plant opened in North Carolina. Two companies produced a large array of downstream lithium compounds in the United States from domestic or South American lithium carbonate, lithium chloride, and lithium hydroxide. A U.S. recycling company produced a small quantity of lithium carbonate from solutions recovered during the recycling of lithium ion batteries.” The bad news? Last year virtually all of the major brine and mineral-based lithium producers increased their prices, which in turn has spurred prospecting. In the U.S. exploration has been largely centered in Nevada, but the growing worldwide market for lithium has also spurred exploration in Argentina, Australia, Bolivia and Canada. And now, the good news. University of Wyoming researchers found the lithium while studying the idea of storing carbon dioxide under ground in the Rock Springs Uplift, a geologic formation in southwest
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Twenty-plus years on, the collapse of the USSR in 1991 threatened massive Western defense budgets, bereft of a major enemy like the “Evil Empire.” Western militaries conveniently found a new global enemy a decade later following the terrorist attacks on 11 September 2001, and since then, they have struggled in the light of invasions of Iraq and Afghanistan to adapt their strategies to cope with the new threat, making defending the “homeland” the highest priority. While the U.S. created the “Department of Homeland Security,” Washington’s less prosperous European allies have been forced to seek solutions to indigenous defense largely by themselves beyond NATO. Except that the NATO charter Chapter 5 stipulates that an attack upon a member state will be met by the entire coalition. European democracies have scrambled to define both national and European Union security issues, particularly since the global economic downturn, which began in 2008, forcing hard choices amongst European defense ministries. Furthermore, many European nations now have significant post-colonial immigration populations, ramping up security concerns, from both indigenous citizens and ongoing concerns of foreign aggression. Defending the United Kingdom’s territorial, maritime and aerial space is the primary mission of Britain’s Ministry of Defense. A laudable objective,
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Until recently Tunisia was considered to be a minor league and relatively underexplored venue in Africa’s rapidly expanding oil & gas scene. This situation has quickly changed with new bid rounds and forced relinquishments creating an opportunity for new companies to come in. Major American E & P companies like Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) have jumped at the opportunity to acquire ground that had been dominated for decades with little to no work conducted, mostly by European State oil & gas companies in this former French protectorate. For the first time major spending has been committed to test Tunisian basins which are arguably equally prolific as those in neighbouring environments with more work performed, such as Libya. Tunisia is now in focus for investors because exploration is increasing within the producing Pelagian Basin, which leads us to ask the following questions: Should Tunisia now be on energy investors watch list? Is Shell just the start of “big oil” making inroads into the country? And which are the plays that people should be watching? To help us look at the developing situation in the region we managed to speak with oil industry veteran John Nelson. John Nelson is CEO
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The first gas has started flowing from Israel’s supergiant Tamar gasfield in the Levant Basin. Where it will go will redraw the Mediterranean energy map and the geopolitics that goes along with it. The Tamar field stakeholders announced on 30 March that the gas had started flowing, raising the value of Texas-based Noble Energy, Inc. (NYSE:NBL), which holds a 36% stake, and Israel’s two Delek Group Ltd. (TLV:DLEKG) subsidiaries, which each hold a 15.6% stake. For now, the gas is being pumped to mainland Israel, where it will feed the domestic market, but exports should begin in 2-3 years. What Israel has in mind is the European market, via a hoped-for undersea Mediterranean pipeline to Turkey, which has the infrastructure to get it to Europe. The competition for this prized market is stiff. In total, the Mediterranean’s Levant Basin has an estimated total of 122 trillion cubic feet of gas and 1.7 billion barrels of oil. Lebanon and Cyprus are eyeing the same market for their own Levant Basin gas resources. Cyprus has found gas in its section of the basin, and Lebanon has announced a tender for exploration off its shoreline. The Greek Cypriot government believes it is sitting on an
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Cyprus is preparing for total financial collapse as the European Central Bank turns its back on the island after its parliament rejected a scheme to make Cypriot citizens pay a levy on savings deposits in return for a share in potential gas futures to fund a bailout. On Wednesday, the Greek-Cypriot government voted against asking its citizens to bank on the future of gas exports by paying a 3-15% levy on bank deposits in return for a stake in potential gas sales. The scheme would have partly funded a $13 billion EU bailout. It would have been a major gamble that had Cypriots asking how much gas the island actually has and whether it will prove commercially viable any time soon. In the end, not even the parliament was willing to take the gamble, forcing Cypriots to look elsewhere for cash, hitting up Russia in desperate talks this week, but to no avail. The bank deposit levy would not have gone down well in Russia, whose citizens use Cypriot banks to store their “offshore” cash. Some of the largest accounts belong to Russians and other foreigners, and the levy scheme would have targeted accounts with over 20,000 euros. So it made sense that Cyprus
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This where we stand, and it’s a fairly bleak view: Peak oil is almost here, and nothing new (with the possible but unlikely exception of Iraq) is coming online anytime soon and while the clock is ticking – forward movement on developing renewable energy resources has been sadly inadequate. In the meantime, the idea that shale reservoirs will lead the US to energy independence will soon enough be recognized as unrealistic hype. There are no easy solutions, no viable quick fixes, and no magic fluids. Yet the future isn’t all doom and gloom – certain energy technologies do show promise. We had a chance to speak with well known energy expert Dave Summers where we cut through the media noise and take a realistic look at what our energy future holds. Dr. Dave Summers – scientist, prolific writer and author of Waterjetting Technology, is the co-founder of The Oil Drum and currently writes at the popular energy blog Bit Tooth Energy. From a family of nine generations of coal miners, Summers’ patented waterjetting technology enables the high-speed drilling of small holes through the earth among other applications. In an exclusive interview with Oilprice.com, Dr. Summers discusses: Why new drilling techniques
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Russia is back. President Vladimir Putin wants the world to acknowledge that Russia remains a global power. He is making his stand in Syria. The Soviet Union acquired the Tardus Naval Port in Syria in 1971 without any real purpose for it. With their ships welcomed in Algeria, Cuba or Vietnam, Tardus was too insignificant to be developed. After the collapse of the Soviet Union, Russia lacked the funds to spend on the base and no reason to invest in it. The Russian return to the Middle East brought them first to where the Soviet Union had its closest ties. Libya had been a major buyer of arms and many of the military officers had studied in the Soviet Union. Russia was no longer a global power, but it could be used by the Libyans as a counter force to block domination by the United States and Europeans. When Gaddafi fell, Tardus became Russia’s only presence in the region. That and the discovery of vast gas deposits just offshore have transformed the once insignificant port into a strategic necessity. Earlier at the United Nations, Russia had failed to realize that Security Council Resolution 1973 that was to implement a new
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The oil and gas game can be a tricky one for junior companies, but if played right the pay-off can be massive. At a time when juniors are risking a lot in volatile venues in the Middle East and Africa, Canada’s Aroway Energy (ARW) is planting its feet firmly in homeland soil and in conventional plays. Why? Because for the smaller juniors this is not a long-term game and blowing all your capital to drill a single unconventional well in a risky frontier won’t pay off. Canada still has plenty to offer for juniors, even though you have to kiss plenty of frogs to find the prince. The end game, after all, is merger and acquisition. In an exclusive interview with Oilprice.com, Aroway CEO Chris Cooper discusses:   How to make or break a junior oil and gas company Why rail is becoming more attractive than pipeline transit Why most juniors won’t make it big in risky frontiers Why Keystone XL Pipeline will get the green light Why oil and gas prices will increase Why the smaller juniors will stick to the conventional plays How the asset market is heating up … and what is ideal Why having control of infrastructure is
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