LONDON, March 12 (Reuters) – Britain’s North Sea oil and gas
operators are mounting an impressive lobbying campaign to win
tax concessions and other government help ahead of the final
budget of this parliament on March 18.
In an editorial in Thursday’s Financial Times newspaper
endorsed the idea of “a new deal to keep North Sea oil flowing”.
The newspaper wants the complex system of tax allowances to be
simplified, rates cut, and more risk-sharing between exploration
companies and taxpayers.
LONDON, March 11 (Reuters) – Oil watchers have spent much of
the last two months speculating about whether overproduction and
the rapid accumulation of crude oil inventories in the United
States would cause storage space to run out and trigger another
fall in spot prices.
Commercial crude stocks held at refineries, tank farms and
in pipelines across the United States have surged by more than
63 million barrels, an average of more than 6 million barrels
per week, this year and are at their highest since the 1930s,
according to the U.S. Energy Information Administration (EIA).
LONDON, March 10 (Reuters) – U.S. shale producers are
falling behind in the Red Queen’s Race as the downturn in
drilling means that new oil production is failing offset falling
output from existing wells.
The famous race is named after the scene from Lewis
Carroll’s novel “Through the Looking-Glass”, in which the Red
Queen warns Alice: “It takes all the running you can do, to keep
in the same place. If you want to get somewhere else, you must
run twice as fast.”
LONDON, March 9 (Reuters) – Two more serious derailments and
fires involving trains carrying crude oil in the past week
confirm there is a serious problem with the safety culture on
North American railroads.
The latest fiery derailments occurred in northern Illinois
involving a train operated by BNSF and northern Ontario
involving a train operated by Canadian National Railway.
NEW YORK, March 4 (Reuters) – The United States produced a
record 25.7 trillion cubic feet of natural gas in 2014 according
to preliminary estimates published by the Energy Information
Administration (EIA) on Feb 27.
Gas production has risen 27 percent since 2008 even though
the number of rigs employed drilling for gas has declined by
more than 80 percent over the same period (link.reuters.com/sub34w).
LONDON (Reuters) – More than ever before, U.S. shale producers are becoming the victims of outdated restrictions on the export of crude oil from the United States.
Export controls have ensured the most oversupplied part of the global oil market is at home in the United States.
LONDON, Feb 27 (Reuters) – U.S. refineries are processing
record quantities of heavy crude from Canada as the perfect
complement to light oils from North Dakota and Texas as they
struggle to keep their average blend steady.
Crudes vary enormously – from low-density oils with few
impurities to much denser oils containing a relatively high
percentage of sulphur and heavy metals such as nickel and
LONDON, Feb 25 (Reuters) – North Dakota’s oil producers have
pulled back to the core areas of the Bakken formation to cut
costs and maximise output amid the slump in prices.
The number of active rigs in the state has fallen to just
121, from 190 a year ago, according to an active rig list
published by the state’s Department of Mineral Resources (DMR)
on Wednesday. (here)
LONDON, Feb 25 (Reuters) – “Because this act of Congress
conflicts with established executive branch procedures and cuts
short thorough consideration of issues that could bear on our
national interest – including our security, safety and
environment – it has earned my veto.”
With those words, the president returned the Keystone
pipeline authorization act (S.1) to the Senate unsigned, and
challenged lawmakers to find the two-thirds majorities in both
houses needed to enact the law without his approval, something
that remains unlikely.
LONDON, Feb 23 (Reuters) – Train derailments involving crude
oil and ethanol in the United States will cost more than $18
billion over the next 20 years, according to an assessment by
the U.S. Department of Transportation.
USDOT forecasts there will be just over 200 derailments
involving trains carrying 20 or more tank cars of crude or
ethanol between 2015 and 2034, an average of more than 10 per
year, based on analysis of previous accidents and predicted
growth in traffic volumes.