Awl Bidness

[trysail]

Saudis to Control Crude Reserves, Output After Aramco IPO

by Wael Mahdi
May‎ ‎3‎, ‎2017

➞ Government will still own oil wells, deputy crown prince says

➞ Kingdom to offer minority stake in Aramco’s concession in 2018

(Bloomberg) Saudi Arabia’s giant oil and gas reserves and any decisions about producing from them will remain solely in government hands after Saudi Aramco’s initial public offering, Deputy Crown Prince Mohammed bin Salman said on state television.

The world’s largest oil exporter known formally as Saudi Arabian Oil Co. holds a concession to pump the kingdom’s oil and gas, and a stake in that business is what the government will sell in an offering of “not far from 5 percent” of company shares in 2018, the prince said Tuesday in a TV interview...

“The wells will still be owned by the government,” said Prince Mohammed, the son of King Salman bin Abdulaziz. “The company only has the right to benefit from the wells. This is the same as before, and there are no changes to that.”

The government’s aim of keeping full control over reserves matters because potential investors in the IPO are looking at Aramco’s deposits to help weigh up the company’s value. The kingdom is the only oil producer with enough spare capacity to quickly boost output at little cost to offset supply halts elsewhere. Questions remain about the degree of influence investors may have on output -- the government may impose decisions on Aramco to pump less, as it has done since earlier this year.

Production decisions will remain subject to OPEC policies and the global balance of supply and demand, the prince said. Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries, pumping about 10 million barrels a day. Aramco’s crude reserves are estimated at about 260 billion barrels...​

more...
https://www.bloomberg.com/news/arti...l-control-of-reserves-output-after-aramco-ipo




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[SyKoKo]

the US Interior Secretary says the US will become

OIL DOMINANT!

not merely self sufficient


BUT DOMINANT


and who can forget the COLOREDFOOL in 08 saying we cant drill our way out of high prices

 

[SyKoKo]

Oh, no.

Not MORE oil?

oil

is

a

renewable

sustainable

resource

 

[SyKoKo]

HAVE YOU HUGGED A FRACKER TODAY? Oil Forecast to Fall Sharply if OPEC Doesn’t Extend Production Cuts.

Oil markets have largely priced in an extension to the deal struck between OPEC, Russia and other producers late last year.

If that deal isn’t extended, prices could drop below $40, a level not seen for over a year, some analysts say.

If the output cuts are extended when the Organization of the Petroleum Exporting Countries and other suppliers meet on May 25, oil prices would rise to $60 a barrel by the end of the year.

“The market appears to have largely priced in an extension to the output-cut deal,” said Warren Patterson, commodity strategist at ING Bank. “This is a significant risk for the market, with no deal likely to lead to an aggressive selloff.”

Brent crude will average at $57 a barrel this year, reaching $60 in the fourth quarter, according to a poll of 14 investment banks surveyed by The Wall Street Journal in late April. That is broadly unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year.

In early Wednesday trade, Brent was trading at $50.80 a barrel, while WTI was changing hands at $47.90 a barrel.

Supply could be increasing just in time for the annual summertime demand spike, and frackers are in better financial condition today than they were in 2014 when the last glut began.

 

[trysail]

Oil— Where Did It Come From

by David Middleton

I am a petroleum geologist/geophysicist with about 36 years of experience in oil & gas exploration mostly in the Gulf of Mexico. In light of Andy May’s recent post, Oil – Will we run out?, I thought I might post an essay on oil formation.

Over the past six years, I have been fortunate to have the opportunity to write guest posts for Watts Up With That thanks to Anthony Watts. Many of my posts have been about issues related to oil production and each of these posts usually triggers comments from Abiogenic Oil advocates. So, this post’s main thrust will be to explain why the Abiogenic Oil hypothesis is not widely accepted and why we think that the original source of crude oil is organic matter.

It’s possible that oil forms in the mantle all the time. The chemical equations can be balanced. So, as an olive branch to Abiogenic Oil aficionados, I will unequivocally state that their favored hypothesis is not impossible.

Biogenic vs abiogenic is really a poor way to characterize the issue. It implies that the formation of crude oil is either a biological or non-biological process. The process is thermogenic. The original source material is considered to be of organic origin because all of the evidence supports this.


The Generally Accepted Theory for Hydrocarbon Formation

I’m not going to go into a lot of detail on this. OffshoreEngineering.com has a very good basic primer here.

The basic steps are:
1.Algae, plankton and other marine and lacustrine photosynthesizers die and sink to the bottom of the ocean.
2.They are buried in mud under anoxic conditions.
3.As more sediment is deposited, they are buried deeper.
4.The geothermal gradient gradually raises the temperature of the buried critters.
5.Diagenesis and catagenesis lead to the formation of kerogen, then oil, then wet gas.
6.Metagenesis leads to the formation of dry gas and then high temperature methane.

What is a Hydrocarbon?

“hydrocarbon

1. n. [Geology]

A naturally occurring organic compound comprising hydrogen and carbon. Hydrocarbons can be as simple as methane [CH4], but many are highly complex molecules, and can occur as gases, liquids or solids. The molecules can have the shape of chains, branching chains, rings or other structures. Petroleum is a complex mixture of hydrocarbons. The most common hydrocarbons are natural gas, oil and coal.


See: asphalt, bitumen, crude oil, dry gas, field, gas-prone, generation, geochemistry, hydrocarbon kitchen, kerogen, maturity, natural gas, oil field, oil-prone, overmature, pay, play, post-mature, preservation, prospect, reservoir, retrograde condensation, secondary migration, sedimentary basin, source rock, stratigraphic trap, tar sand, wet gas"

Schlumberger Oilfield Glossary
 
"It’s important to note that “organic” doesn’t necessarily mean “related to life,” although it usually is.“

"Organic chemistry is the chemistry discipline that is concerned with the study of compounds containing carbon that is chemically bonded to hydrogen. Organic chemistry encompasses the synthesis, identification, modeling, and chemical reactions of such compounds."

Chemistry.About.com

Methane, ethane and other alkanes, alkenes, alkynes, cycloalkanes and alkadienes are simple hydrocarbons. Inorganically sourced methane is massively abundant on Earth and elsewhere in our Solar System and probably throughout our Galaxy. Other simple hydrocarbons are also often associated with inorganically sourced methane, usually in trace quantities.

The Saturnian moon, Titan, has seas of liquid methane and there is evidence of polycyclic aromatic hydrocarbons (PAHs) in Titan’s atmosphere. PAH’s are pollutants that occur naturally in crude oil and coal deposits and as the result of burning of carbon-based fuels.

The fact that Titan’s methane-rich atmosphere can generate PAH’s and trace amounts of heavier hydrocarbons has no relevancy to how petroleum and natural gas liquids form on Earth. Even if it was relevant to the formation of petroleum, it would be totally irrelevant to how oil and gas accumulate in the Earth’s crust.

Methane and simple hydrocarbons are not even remotely close to crude oil.

Oil is a mixture of complex hydrocarbons:


Petrowiki

Erroneously Cited as Evidence for Abiogenic Oil

There’s a fairly standard litany of Abiogenic Oil “evidence.” I am sure that the following does not cover all of the erroneous “evidence.”

Dniepr–Donets Basin, Ukraine

This is usually cited as proof of Abiogneic Oil because some Russians said there were no source rocks.

“Palaeozoic source rocks in the Dniepr–Donets Basin, Ukraine

Reinhard F. Sachsenhofer, Viacheslav A. Shymanovskyy, Achim Bechtel, Reinhard Gratzer, Brian Horsfield, Doris Reischenbacher
DOI: 10.1144/1354-079309-032 Published on November 2010, First Published on October 20, 2010
ArticleFiguresInfo & Metrics PDF
Abstract

ABSTRACT The Dniepr–Donets Basin (DDB) is a major petroleum province in Eastern Europe. In order to understand the regional and stratigraphic distribution of source rocks for the dominantly gas-prone petroleum system, 676 fine-grained rocks from 30 wells were analysed for bulk parameters (total organic carbon (TOC), carbonate, sulphur, RockEval). A subset of samples was selected for maceral and biomarker analysis, pyrolysis-gas chromatography and kinetic investigations. Organic-rich sediments occur in different intervals within the basin fill. Maximum TOC contents (5.0 ± 1.9%) occur in the Rudov Beds, several tens of metres thick. The oil-prone rocks (Type III–II kerogen) were deposited in basinal settings above an unconformity separating Lower and Upper Visean sections. While maximum TOC contents occur in the Rudov Beds, high TOC contents are observed in the entire Tournaisian and Visean section. However, these rocks are mainly gas condensate-prone. Highly oil-prone black shales with up to 16% TOC and hydrogen index values up to 550 mgHC g–1TOC occur in Serpukhovian intervals in the northwestern part of the DDB. Oil-prone Lower Serpukhovian and gas condensate-prone Middle Carboniferous coal is widespread in the southern and southeastern part of the basin. Although no source rocks with a Devonian age were detected, their presence cannot be excluded.

http://pg.geoscienceworld.org/content/16/4/377.abstract
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more...
https://wattsupwiththat.com/2017/02/18/oil-where-did-it-come-from/


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[trysail]

oil

is

a

renewable

sustainable

resource

You are a well-known nutjob.
All anyone has to do is look at your dumbass posts to understand that you're an idiot.



You just earned an "iggy."
Good-bye.


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[trysail]

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i_SATy_7XB8I/v0/800x-1.png


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i0vqMLdQ9uLI/v0/800x-1.png


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iKHuGtsiQ.7k/v1/800x-1.png


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i7YTTYk6Ong0/v2/800x-1.png



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[thør]

Swedes find is poor.

 

[trysail]

Solid color indicates production reduced to meet pledge.
Cross-hatched color indicates product still above pledge.


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iaUFvypJIyUM/v0/800x-1.png


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[trysail]

Shell Says Russia's Oil Must Be Considered for Global Benchmark
by Laura Hurst, Javier Blas, and Rupert Rowling



‎May‎ ‎10‎, ‎2017‎
➞ Market should talk about including Russian oil in benchmark
➞ Says difficult to add more North Sea oil to current yardstick

(Bloomberg) Royal Dutch Shell Plc, the world’s largest oil trader, said the time has come to debate using Russian crude to help determine the global Brent benchmark, in what would be the most radical shift in how European prices are calculated since the 1970s.

Mike Muller, the head of crude trading at Shell, told a Platts forum in London that he wants a discussion about calculating the price in Europe using not just crude oil pumped in the North Sea, as has been the case since the 1970s, but potentially including Russian crude and even grades pumped in West Africa, the Caspian Sea basin.

Shell is not just the largest oil trader but also the custodian of the master contract that governs the physical Brent market and as such its views are closely watched in the market. Although Muller said some of the suggestions he floated were “concepts and ideas,” he made clear that the company wanted to see reform. “These are the sort of things Shell wishes to see in benchmarks going forward.”

The changes outlined would take years rather than months to implement, assuming the rest of the market agreed they were appropriate. Oil industry executives largely agree that the Brent benchmark will need significant reforms early next decade. In 2014, Ian Taylor, the chief executive officer of the world’s biggest independent trader Vitol Group said he was “extremely concerned” about the possibility of Brent becoming a less-efficient or effective benchmark. Crude from Africa, the Caspian Sea and possibly Russia should be added to the basket of oil used to determine the price, he said at the time.

Muller said that the large amount of Russia’s Urals crude that Europe’s refineries use meant it was worth talking about using the grade as part of the region’s benchmark. It’s difficult to see how more North Sea oil grades can be added to the current benchmark, which currently comprises Brent, Forties, Oseberg and Ekofisk, and will add Troll from 2018, Muller said.​

https://www.bloomberg.com/news/arti...s-oil-must-be-considered-for-global-benchmark


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[trysail]

Exxon, Petrobras Said to Have Discussed Strategic Partnership

by Sabrina Valle
‎May‎ ‎9‎, ‎2017‎


➞ Brazil company says in statement no talks are ongoing
➞ Potential outcome could go beyond bidding for offshore blocks

(Bloomberg) Exxon Mobil Corp. and Petrobras have held talks on a strategic partnership that could involve multiple assets in Brazil and overseas in different segments of the industry, similar to the $2.2 billion deal signed with Total SA in December, said people familiar with the conversations. Such a deal could give Exxon access to oil fields and infrastructure in Brazil while state-controlled Petroleo Brasileiro SA could gain from Exxon’s expertise in production, refining and distribution, the people said. The company clarified in a statement Tuesday that there is no ongoing negotiation aiming at a strategic alliance with Exxon. “Petrobras stresses, however, that it’s constantly in touch with companies in the oil and gas sector to evaluate opportunities and share experience,” the company said in the statement.

International oil companies are taking a closer look after Brazil eased nationalist regulations and opened the market to more competition. Carla Lacerda, Exxon’s country chief, said earlier this month that the U.S.-based oil giant sees great opportunities in Brazil. Last week, Petrobras Chief Executive Officer Pedro Parente met in Houston with both Lacerda and BP Plc’s head of Latin America, Felipe Arbelaez, the people said, asking not to be named because the discussions were private. Arbelaez confirmed that he and Parente had talked in “a number of meetings.” He said that with the policy changes being undertaken by Brazil’s government, “all companies are reviewing their Brazil strategy.” In December, France-based Total agreed to buy stakes in Brazilian oil fields and energy infrastructure in a $2.2 billion deal that is expanding its presence in Latin America’s largest economy.

Total’s Deal

That agreement included stakes in the Iara and Lapa offshore prospects, and gives Petrobras the option to buy into a field in the Gulf of Mexico, the Rio de Janeiro-based company said at the time. Total also acquired 50 percent of two thermoelectric plants in the Bahia area and the right to use a regasification unit in the city. It may study more purchases from Petrobras, Total Chief Executive Officer Patrick Pouyanne said when the deal was announced. Other European oil producers have also moved to grab a share of the deep-water discoveries that are driving Brazil’s production growth. Statoil ASA bought Petrobras’s stake in the Carcara find last year in a $2.5 billion deal, and Royal Dutch Shell Plc expanded in the pre-salt region through its acquisition of BG Group Ltd. In recent months Michel Temer’s government has removed Petrobras’ exclusivity to operate in the pre-salt, and eased buy-in-Brazil requirements for platforms and equipment. Only one pre-salt field, the giant Libra discovery, has been auctioned in this decade, and under terms that guaranteed Petroleo Brasileiro SA, as it is formally known, control of operations. While single wells in the pre-salt region can produce more than 40,000 barrels a day, among the most productive in the world, Exxon previously had a rare case of exploration failure in at a concession it abandoned in 2012...​

more...
https://www.bloomberg.com/news/arti...aid-to-hold-talks-on-wide-ranging-partnership

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[trysail]

Interesting. Time will tell.


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iYFOyxPNlJWs/v1/800x-1.png




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[trysail]

https://c1.staticflickr.com/5/4251/34346233803_44024fc671_o.png

Estimated petroleum and natural gas hydrocarbons production in U.S., Russia and Saudi Arabia (2008-2016)
by U.S. Energy Information Administration



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[trysail]

You can now own 17% of the entire world's (PROVED) natural gas reserves for a mere $48 billion.

Truly amazing.


Market capitalization of Gazprom:

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http://www.gazprom.com/f/posts/62/158052/gazprom-stock-2016-08-16-en.png


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[trysail]

https://fred.stlouisfed.org/graph/fredgraph.png?g=evQG


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[trysail]

https://www.eia.gov/naturalgas/weekly/img/20170803_rigs.png

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[Nipples_Mcgee1]

Here's a graph for you, tryfail.

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iNW.mSAKFu9k/v0/630x420.png

 

[thør]

CH2 is bought by Jacobs.

Oh, boy! (That's a sarcastic "Oh, boy!")

 

[Nipples_Mcgee1]

https://upload.wikimedia.org/wikipedia/commons/thumb/7/77/PV_cume_semi_log_chart_2014_estimate.svg/1280px-PV_cume_semi_log_chart_2014_estimate.svg.png

 

[trysail]

https://farm5.staticflickr.com/4300/36311099535_2d8e40abee_o.png


https://farm5.staticflickr.com/4324/36176590831_60a381cce7_o.png


Petroleum transit volumes through select maritime routes ( 2011-2016)
Source: EIA


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[Nipples_Mcgee1]

http://img.mp.itc.cn/upload/20170506/93e224519bbe4241b19f6d61e34da126_th.jpeg

 

[trysail]

http://ir.eia.gov/ngs/ngs.gif


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[trysail]

Britain's Energy Policy Keeps Picking Losers


...[Britain has] a nationalised energy policy of picking losers. The diesel fiasco is another. The wind industry, with its hefty subsidies paid from the poor to the rich to produce unreliable power, is a third. The biomass mess (high carbon, high cost and environmental damage) is a fourth.

...Britain’s industrial and commercial users now have some of the highest electricity prices in the developed world, which find their way to households in cost of living and a downward pressure on wages. American industry pays about half as much for its electricity as we do, and everyone benefits. Energy prices are not just any consumer price: they determine the prosperity of the entire economy...

-Matt Ridley, Ph.D.



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https://www.thegwpf.com/matt-ridley-britains-energy-policy-keeps-picking-losers/

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[trysail]

Lots more shale gas?


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i1PIWiyIYnZc/v2/-1x-1.png



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[trysail]

To keep you from freezing to death in the cold and the dark.



https://farm5.staticflickr.com/4336/36607445515_c3d6eb3cbc_o.png

Selected natural gas pipeline projects in the Northeast United States
Source: EIA


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