Written by rjs, MarketWatch 666
Here are some more selected news articles for the week ending 19 December 2020. Go here for Part 1.
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Activists build political power, vow to keep fighting Boxtown pipeline at Saturday rally – MLK50: Justice Through Journalism – A capacity crowd of about 60 attended a rally against a proposed oil pipeline through Boxtown in Southwest Memphis on Saturday, where a series of speakers vowed to fight the development.”For too many years Boxtown has been the dumping place for the rest of Memphis,” said Batsell Booker, president of the Boxtown Neighborhood Association, at the event held in the gazebo at T.O. Fuller State Park. Booker and several other speakers condemned the pipeline and its planned route through the mostly Black community that already is surrounded by industry.The event, which was live-streamed on Facebook, was held by Memphis Community Against the Pipeline. The group was recently organized by young activists, including Kathy Robinson and Justin J. Pearson, who both grew upin Southwest Memphis. Some people were turned away from entering the area by park rangers when capacity was reached. There were social distancing rules in place, with seating numbered, and volunteers did temperature checks and took down identification information from attendees. at the rally. The group live-streamed the event for those not able to attend due to COVID-19 social distancing recommendations. Photo by Andrea Morales for MLK50 The goal of the rally was to take the lead away from developers, who made presentations at previous community meetings; to label the Byhalia Connection Pipeline plan asenvironmental racism, and gather support from more residents and local officials to stop the project, Pearson and Robinson said. Black people are 75% more likely to live near a polluting facility, according to a 2017 report by the NAACP and the Clean Air Task Force.
Rep. Garret Graves has dim view of oil and gas industry under Biden administration – In a meeting Monday with local business people, U.S. Rep. Garret Graves addressed the future of oil and gas, the likelihood of a new federal stimulus package and acceptance of Joe Biden’s win in the presidential race. Graves spoke during an online meeting of the Bayou Industrial Group, which includes about 15 businesses in Terrebonne, Lafourche and surrounding areas. Graves, R-Baton Rouge, said Biden’s win disappoints him, adding that Donald Trump was doing a good job. But until evidence arises to show otherwise, “Biden is the president-elect at this point and we’re going to have to move forward under those conditions.” “At this point, the Trump campaign, investigators, FBI, no one has been able to produce evidence showing that the election outcome was different than projected,” said Graves, whose district includes northern Terrebonne and Lafourche. As for Biden’s emphasis on renewable energy, Graves said the oil and gas industry still supplies most of the national and world’s energy needs and will do so for many years to come. “We can sit here and have these dreams about unicorns powering our fires and other things but, the fact, the science, is very different,” he said. “The technology is not there right now, and the reality is that the biggest secret to reducing emissions over the last 15 years … is natural gas.” Paul Danos, owner of the Danos oilfeld services company, based in Gray, spoke before Graves delivered his speech. He said 2020 has been tough on the company but it was able to start two new businesses. “Obviously the oil and gas industry is the main driver for our region, and as we go into a new administration, our industry is not necessarily the darling of the administration,” Danos said. “So we have a couple of options: We can stick our head in the sand and hope that it all passes or we can wake up and … do something about it.” Don’t panic, Danos said, because the world needs oil and gas, will will make up a significant portion of the globe’s energy production for the foreseeable future. This should be a source of confidence, he explained. “But then again, we also need to embrace the fact that the world is transitioning to renewable forms of energy,” he said. The people of Louisiana are well poised to take part in this transition, through innovation and experience, ultimately becoming leaders in the transition, Danos added.
Texas LNG Bunkering Project Starts Waterway Assessment Process with Coast Guard – A plan to build the first liquefied natural gas (LNG) bunkering terminal along the U.S. Gulf Coast is progressing through the permitting process by initiating a water suitability assessment with the U.S. Coast Guard (USCG). Pilot LNG LLC’s proposed Galveston LNG Bunker Port (GLBP) project would comprise an LNG production vessel that would be permanently moored off Pelican Island, TX. The island is in Galveston Bay, one of the busiest marine corridors in the United States, providing access to the ports in Houston, Galveston and Texas City.The project, which would have production capacity of 500,000 tons per year, equivalent to about 64 MMcf/d of gas, plans to make a positive final investment decision in late 2021 or early 2022 after getting regulatory approvals. Operations are slated to begin in 2024.Pilot LNG earlier this month submitted a letter of intent and a preliminary water suitability report to the USCG to initiate the evaluation, management said. The review would assess the potential safety, security, marine and economic impacts of expected marine traffic from the project. Bunker barges would load at the terminal and distribute LNG fuel to ships, but the project has not yet determined if it would operate its own fleet.The bunker port project in October reached a preliminary long-term supply deal with GAC Bunker Fuels, an affiliate of the GAC Group that procures fuel for customers in the shipping industry. The heads of agreement outlined the terms for Pilot to provide LNG bunker fuel to GAC customers on a delivered ex-ship basis.The project in July applied for key permits from the U.S. Army Corps of Engineers. The U.S. LNG bunkering market is most advanced along Florida’s Atlantic Coast, primarily to serve ships transporting U.S. goods to Puerto Rico. Demand for LNG bunker fuel is poised to grow. International regulators have tightened emissions standards, and the maritime industry has increasingly turned to LNG as a fuel source because of its lower emissions profile and cost competitiveness. The International Maritime Organization has established the goal of reducing greenhouse gas emissions from shipping by at least 50% by 2050 compared to 2008, and many LNG-fueled ships are expected to be produced going forward.
Natural gas leak repaired on rig near Bob Hall Pier – Magellan E&P Holdings, Inc., the operator of a platform located in the Mustang Island offshore planning area has repaired a natural gas leak. City officials say the leak occurred early in September. The leak happened because off a failed valve. Officials say no further leaks or emissions are expected. However, there are still repairs to be made and vessels involved in the repair process will remain visible from shore. City officials said the company continues to fully cooperate with all appropriate state and federal regulatory entities.
Oil and gas job losses in Texas were even worse than reported – The oil and gas industry in Texas lost more jobs than reported after the federal government revised its employment estimates. Nearly 60,000 oil drilling, production and services workers have lost their jobs between February and August, 20 percent higher than the 50,000 layoffs previously reported, according to a new report from the Texas Alliance of Energy Producers. The new job analysis from the statewide trade group comes after the Federal Reserve Bank of Dallas revised its employment data, which showed that more jobs were cut in the oil-field services sector than previously thought.
US oil, gas rig count rises by 10 to 414 as producers try to hold output: Enverus – US oil and gas rigs rose by 10 to 414 in the week ending Dec. 16, rig data provider Enverus said, as operators continue to replace production setbacks earlier in the year from coronavirus-related curtailments. Stay up to date with the latest commodity content. Sign up for our free daily Commodities Bulletin. Sign Up The week’s gains were split 50-50, five apiece between oil plays, where the number of rigs rose to 300, and gas fields, where the number increased to 114. Among individual basins this week, changes were a hodgepodge, with most basins adding or shedding a rig apiece. The Eagle Ford Shale of South Texas added two rigs for a total 32. Adding one rig each were the Permian Basin (181 rigs) of West Texas/New Mexico, the Haynesville Shale (46) in East Texas/Northwest Louisiana and the Marcellus Shale (30), mostly in Pennsylvania. Reducing fleets by a rig apiece on the week were the Bakken Shale (13) of mostly North Dakota, the SCOOP-STACK (13) of Oklahoma, and the Utica Shale (six), mostly in Ohio. The DJ Basin of Colorado was unchanged on week at nine rigs. “Overall, North American drilling and completions activity is tracking higher than expected,” Wells Fargo analyst Christopher Voie said in a Dec. 17 investor note. “The Lower 48 rig count is above expectations, and based on discussions with [four large US drillers], the horizontal rig count is tracking above our models and should plateau through year-end.” For the week ended Dec. 16, the horizontal rig count was 329, down two, according to Enverus data. While first-half 2021 visibility is limited, “we model 350-360 horizontal rigs by mid-2021, assuming private E&Ps’ activity mirrors publics’ budget discipline” which is conservative, Voie said. S&P Global Platts Analytics expects rigs to continue to recover through early 2023. More good news on a coronavirus vaccine could cause a further uptick from what Evercore analyst James West called “jaw-dropping” declines in North American rig counts this year. The current total rig count is now just shy of half its early March figure of 838, Enverus data shows, and the North American rig count is poised for to rise, albeit off a low base, West said.
U.S. Crude Oil Inventory Declines; Weekly Demand Increases But Remains Modest, EIA Says – After jumping a week earlier, domestic oil inventories dropped during the week ended Dec. 11, the U.S. Energy Information Administration (EIA) said Wednesday. EIA said in its Weekly Petroleum Status Report that U.S. commercial crude oil inventories – excluding those in the Strategic Petroleum Reserve – decreased by 3.1 million bbl from the prior week. A week earlier, stockpiles increased by nearly 15.2 million bbl amid robust imports and after light post-Thanksgiving holiday demand, lifting crude storage to its highest level since August.The latest result “was a nice walk down from last week’s supersized” build, said Robert Yawger, director of energy futures at Mizuho Securities USA LLC. The prior week increase “threatened to overwhelm storage in a relatively short time span. This week’s report has reduced those concerns.”Despite a draw in the latest covered week, U.S. inventory of 500.1 million bbl is still about 10% above the five-year average for this time of year, EIA said.Demand, meanwhile, increased 4% week/week for the latest covered period, EIA said, but it remained weak relative to pre-pandemic levels in 2019. Demand has been choppy on a week-to-week basis but, aside from an occasional exception, it has been consistently below year-earlier levels in recent months.Demand for the Dec. 11 week was 11% below the comparable week of 2019, with jet fuel consumption down 44% year/year and gasoline off 15%.
Ban on federal drilling leases would cost eight U.S. states billions, study finds (Reuters) – A ban on new oil and gas drilling leases on federal lands would cost eight Western states $8.1 billion in tax revenue and $34.1 billion in investment in the next five years, according to a study released on Tuesday by the state of Wyoming. The report, commissioned by one of the nation’s top oil and gas-producing states, aims to push back against President-elect Joe Biden’s campaign promise to halt leasing on public lands as part of a sweeping plan to tackle climate change. “The economic predictions are devastating, to be blunt, to Wyoming,” Governor Mark Gordon said during a virtual press conference to unveil the study, which was conducted by University of Wyoming Professor Tim Considine. The policy would be most detrimental to Wyoming and New Mexico, the report said, where most drilling activity occurs on federal lands. Without new leasing, states would lose the opportunity to generate revenues from new wells on those lands. As a result, those states are projected to lose $304 million and $946 million a year in tax revenue, respectively, through 2025. Annual losses in revenue and investment are projected to increase through 2040 as the oil and gas industry becomes more productive and prices increase, the report said. Between 2036 and 2040, the investment losses are expected to reach $164.5 billion. Biden will assume office on Jan. 20 and has promised aggressive policies to reduce climate-warming greenhouse gas emissions. His administration will mark an abrupt shift from that of President Donald Trump, which has sought to boost domestic oil and gas production over the last four years. During the press conference, Wyoming officials said it was likely that a leasing moratorium would simply shift production and related emissions to other regions, such as Mexico or Canada, rather than having the desired effect of helping to curb global emissions from drilling activity.
Oil’s collapse could spark growth in Colorado natural gas – For the first time in years, market conditions for natural gas may be poised to spark growth in Colorado’s oil and gas industry. The price for natural gas reflected in contracts for winter deliveries rose steadily in recent weeks. An upswing is normal as cold weather sets in, but contract prices are up 20% from the same point in 2019, and forecasts increasingly predict natural gas’ price rise to hold beyond winter. Domestic oil and natural gas production has been dropping due to the collapse in the price of crude oil, and reduced supply is bolstering the price of natural gas. Prices are settling into a $2.50 to $3 per million British thermal unit range at the regional pipeline hub in Western Colorado – high enough for Colorado’s natural gas producers to consider expansion. “That puts a dry gas producer in the money,” said John Harpole, founder and president of Littleton-based Mercator Energy, a natural gas services and brokerage company. “The dry gas producers finally have a price.” Sustained conditions for even modest expansion would be a welcome change for a part of the state’s oil and gas industry that’s been quiet. Western Colorado is home to the Piceance Basin, the second-largest reserve of natural gas in North America. There’s also abundant natural gas in the San Juan Basin in southwestern Colorado. Denver also is home to the headquarters of Antero Resources (NYSE: AR), the third-largest U.S. natural gas producer, which operates in the Utica and Marcellus shale formations in eastern Ohio, western Pennsylvania and northern West Virginia. It primarily supplies the Northeast with natural gas, and exports liquified natural gas east to Europe. Crude oil’s collapse this spring has set the table for natural gas’ renaissance. Shale oil wells also produce natural gas, though the gas is treated by most companies as a byproduct of the more lucrative oil. The crash in crude prices this spring led to a 73% decline in the number of rigs drilling wells in U.S. oil and gas fields, a drop of 461 rigs since early March. The decline in drilling for oil is has cut associated natural gas production from domestic shale basins by 9% since March 6, Antero Resources’ analysis shows. The output will remain down through 2021, the company predicts, while U.S. demand for natural gas is unchanged, and exports to Mexico and Europe are expected to rise.
Colorado’s Boulder County Revamping Oil, Gas Rules, but Energy Industry Questioning Authority – Colorado’s energy industry has come out swinging against Boulder County’s attempt to impose more stringent oversight of oil and gas well operations. Operators working in unincorporated areas of Boulder County would be required to ensure well pad setbacks are at least 2,000 feet and generally 2,500 feet near homes, schools and licensed child care centers. The setbacks also would be required in light industrial, commercial, business and transitional zones. The three-member Board of County Commissioners unanimously approved the fourth draft last week to revise Article 12 of the Land Use Code. The revisions are “are the strongest rules in the state and will be a model for others,” said Commissioner Matt Jones. Listen to the most-recent episode of our podcast NGI’s Hub and Flow via: A review of the three-year-old land use regulations had begun in March, but Covid-19 stalled hearings. Also, the revisions are tied to state oversight, and the county commissioners wanted to wait for the Colorado Oil and Gas Conservation Commission (COGCC) to complete extensive rulemakings required by Senate Bill 19-181. Among other things, the COGCC last month granted additional authority to local governments to regulate the impacts of oil and gas development. The updated regulations would “provide for close scrutiny of all proposed oil and gas development and multiple opportunities for public input prior to any decision being made,” the county commission noted. “For any new oil and gas development applications, these regulations will allow staff, the Parks & Open Space Advisory Committee, the Planning Commission, and the Board of County Commissioners to consider site-specific circumstances and possible measures to avoid, minimize and mitigate adverse impacts in determining whether to approve or deny a proposal.” The proposed rules also “will help to ensure careful monitoring and enforcement over oil and gas operations,” including existing facilities. While the regulations are under review, the county is continuing a moratorium on new oil and gas development and seismic testing to the end of the year “so that any new applications to drill can be reviewed under the most protective, updated regulations that are ultimately adopted.” Colorado energy industry groups blasted the county revisions as unnecessary. Colorado Oil & Gas Association CEO Dan Haley told NGI’s Shale Daily that the state’s “communities can’t ban oil and natural gas development – either through outright bans or through regulations that make it impossible to access a mineral owner’s private property and investment. “
Line 3 construction barrels ahead, despite efforts to block it | MPR News – In northern Minnesota’s Aitkin County, just north of the tiny town of Palisade, construction workers are clear-cutting a wide path through the forest near the Mississippi River, heavy equipment rumbling, to make way for the new Line 3 oil pipeline replacement project. And Tania Aubid, a member of the Mille Lacs Band of Ojibwe, is there to try to stop them.”They want to ship the tar sands, toxic oil. … And when that pipeline breaches, it’s going to go into the waterways here,” she said.Aubid has come to this place every day for more than a week, part of a group of people who call themselves water protectors – there to speak out against the pipeline and, in some cases, put their bodies in the way of construction.Tania Aubid of the Mille Lacs Band of Ojibwe is among the “water protectors” who have demonstrated at a construction site in Aitkin County where the Line 3 oil pipeline is slated to cross the Mississippi River.Also out there every day: Law enforcement, including Aitkin County Sheriff Dan Guida.”You’re angry at me because you’re mad at them,” Guida told Aubid last week, as he gestured toward the pipeline workers.”These guys are raping, murdering and killing Mother Earth,” Aubid shouted. “You’re standing here and not doing anything about it!”Guida told Aubid he understood she’s fighting the pipeline for her grandkids. “We talked about that,” he said. “You’re trying to keep their land safe. You’re trying to keep their water clean. I understand that. But there is a law that has to be followed.”Construction has ramped up quickly on Line 3 since Enbridge Energy received its final state and federal permits late last month – and so have the protests of activists determined to stop work on the contentious project, at least until challenges can be heard in court. Guida says he respects the “energy” that both sides bring to this divisive project. Demonstrators have set up a gathering space alongside the Great River Road, just a few feet from the pipeline corridor.”We want the people here to be safe. We want the people to be heard, we want to support their First Amendment [rights], we want to support their freedom of speech, we want to support all that,” he emphasized.Two people even camped high up in trees along the pipeline corridor for more than a week to try to block work on the project.The scene remained fairly low-key until early Monday afternoon, when several people were arrested, including Liam Delmain, the last person remaining in the trees, who was removed with the aid of a bucket truck. Dawn Goodwin, a member of the White Earth Nation and a leader in the fight against Line 3, witnessed the arrests, but said they left her undeterred. “It just gives me more energy and drive to continue on and do all that I can do to stop this horrible idea,” she said.
Indigenous Groups Push Insurers to Abandon Fossil Fuel Projects –AS OIL AND gas projects expand across the United States and Canada, often imperiling Indigenous land without ever obtaining consent, land defenders are increasingly pressuring the financiers of fossil fuel infrastructure – banks, insurance companies, and asset managers – to respect their sovereign land right. Amplifying the calls of this grassroots movement, the largest organization representing American Indians and Alaskan Natives passed a historic resolution last month calling on “private insurance companies to end their underwriting of the expansion of tar sands oil, Arctic oil and gas, and LNG export terminals.”The resolution, put forward by the National Congress of American Indians, or NCAI, also asks insurance companies to adopt policies on “free, prior, and informed consent.” This principle, enshrined in the United Nations Declaration on the Rights of Indigenous Peoples, is “really just a fancy way of saying that any corporation, any bank, any agency that wants to engage in a project that impacts Indigenous lands and treaty lands must get consent from that particular tribal nation or Indigenous community,” said Matt Remle, who is Lakota and the primary author of the resolution. “And if the community says no, that project doesn’t happen.”Remle is also the co-founder of Mazaska Talks, an Indigenous-led organization focused on campaigns to divest from projects that violate human rights and treaty rights abuses, which came out of an effort that began about five years ago to defund the Dakota Access pipeline. This movement pushed the city of Seattle to divest $3 billion from Wells Fargo in 2017, one of the main backers of the pipeline, and sparked similar campaigns throughout the country. More recently, every major bank has agreed to not fund drilling in the Arctic after facing pressure from Stop the Money Pipeline, a coalition of over 130 organizations which includes Mazaska Talks. Most Wall Street banks at least publicly acknowledge free, prior, and informed consent while still financing projects, like the tar sands pipelines, that face Indigenous-led opposition. Yet no major U.S. insurance companies, the biggest insurers of oil and gas projects across the globe, have released publicly facing statements about Indigenous rights, let alone the principle of free, prior, and informed consent, according to Elana Sulakshana, energy finance campaigner at Rainforest Action Network. This is, in part, why there has recently been more intense scrutiny of insurance companies’ enablement of fossil fuel projects on Indigenous land.
Bakken Oil Output Flat in October, but Natural Gas Up 2% from September – Oil production in the Bakken Shale during October remained flat month/month at 1.22 million b/d while natural gas output increased by 2% to 89 Bcf, the North Dakota Department of Mineral Resources (DMR) reported Monday. Oil production levels are not likely to grow until 2022, DMR director Lynn Helms said during a monthly webinar. “The resurgence we saw in July through September is pretty much done, and essentially all of the shut-in production has been put back online,” he said. Oil output was slightly above the state’s revised projection level of 1.2 million b/d. “Gas grew at the same time, which is sort of the history of the Bakken/Three Forks reservoirs, and we’re starting the phase where we see enough reservoir depletion and new wells are coming on with higher gas-oil ratios.” Total October oil production was 37.9 million bbl (1.22 million b/d), compared to 36.6 million bbl (1.22 million b/d) in September. Gas output reached 89 Bcf (2.87 Bcf/d) from 84.4 Bcf (2.81 Bcf/d). Gas capture was 93% in September and October, with the remaining 7% of output flared. “Industry now has the infrastructure in place, so capture stayed the same with a slight decrease in volumes/day” at 13 MMcf/d,” Helms said, “so we didn’t lose any ground on gas capture.” Well permitting, however, is “up and down and all over the place,” depending on the price of oil, which he said needs to be at least $55/bbl for significant increases in rigs and well counts.
Bakken Natural Gas Capture in North Dakota Said Improved from 2019, Stable Until 2025 – North Dakota is this year better equipped to capture vented and flared natural gas from the Bakken Shale than in 2019, and processing capacity is said to now be adequate for the next five years. north dakpta gas North Dakota Pipeline Authority director Justin Kringstad discussed the outlook during an interview with NGI’s Shale Daily. “The gas capture landscape has improved dramatically from 2019,” he said. “North Dakota’s gas production exceeded gas processing capacity for much of 2019, but during the second half of that year, the gas processing industry added 700 MMcf/d of new processing capacity to the region.” Overall processing capacity in the Bakken should remain stable through 2025, Kringstad said. “When factoring in additional planned processing capacity expected to come online in 2021-2022, I forecast plant capacity to be adequate until the 2024-2025 timeframe.” The U.S. Energy Information Administration recently reported that North Dakota and Texas led the nation last year in gas venting and flaring. Bakken gas production last year rose to 290 MMcf/d from 200 MMcf/d in 2010, according to federal statistics. “We have prior history to tell us that gas plant capacity needs in North Dakota cannot be viewed in a 1:1 ratio between field production and plant capacity,” Kringstad said. “Today’s current gas processing capacity in North Dakota is expected to be adequate for one to three years before additional capacity would be required.” Long-term projections of takeaway capacity are also enough to keep up with Bakken oil production, which is forecast to reach 1.7-1.8 million b/d by the late 2020s.
North Dakota Examining Potential for Bakken Natural Gas, Liquids Storage – North Dakota’s Industrial Commission (IC) has asked the state legislature to authorize pursuing options to add oil and natural gas storage for the Bakken Shale. The governor-led commission “pre-filed a bill for next year’s legislature to take on permitting of oil, gas and natural gas liquids storage,” said Department of Mineral Resources director Lynn Helms. “Those are critical infrastructure pieces.”To convert part of an oilfield for storage would require approval by the same percentage of surface landowners (55%) as required in field unitization, Helms said. All of the landowners would have to be “equitably compensated” by the storage operators. When at least 55% of the landowners approve pore leasing space for gas storage or a salt cavern for natural gas liquids (NGL), the IC could create a unit to pull all of the space together. There is a legislative vehicle “to move forward and a report is due from the Energy and Environmental Research Center at the University of North Dakota when lawmakers convene next year,” Helms said. A second report on salt cavern storage is to be released to the legislature about the same time.Early last year, the EERC concluded that if certain issues were resolved, injecting the gas produced with the Bakken oil into underground formations and later withdrawing it could allow for more oil production and help meetstate-mandated gas capture goals.Helms said the best potential locations for salt cavern storage locations are between Williston, in the far northwest corner of the state, and Minot in the north-central area. It would need to be along railroad, highway and pipeline routes within proximity of a large workforce.”All of that exists north of Lake Sakakawea and between the two cities,” he said. Caverns are typically used for storing NGLs for petrochemicals before they are processed and shipped to market. “Salt caverns worldwide are the way to store ethane; it looks like from some very preliminary work that it is feasible and we have the geology to support it.”Currently, North Dakota has no underground storage for oil, NGLs or produced associated gas. However, in the Montana portion of the Williston Basin is the largest underground gas storage facility in North America at 164 Bcf capacity, the Baker Storage Field.”At his time, there are no plans for residue gas storage in North Dakota,” said North Dakota’s Justin Kringstad, director of the Pipeline Authority. “The Baker storage is used by both Canadian and Williston Basin shippers.” Kringstad said he was not aware of any plans to expand Baker, which has ample capacity.
Oil companies turn to rapid virus testing to keep crews in field – Oil companies are increasingly relying on rapid tests to determine if any of their workers in the Bakken have contracted the coronavirus. “All 14 of our drilling rigs are using rapid testing for everybody who visits the rig site as well as for the crews coming on and off,” State Mineral Resources Director Lynn Helms said Monday at his monthly briefing on oil production. “The industry’s been buying rapid tests like crazy.” Oil companies have been purchasing the tests, but the industry is hopeful it can use some of the state government’s stash, said Ron Ness, president of the North Dakota Petroleum Council. State officials began a more concentrated effort last month to use up 150,000 tests North Dakota received from the federal government. Some of the tests were slated to go to first responders, health care workers, long-term care facilities, schools and Native American tribes. The Abbott BinaxNOW tests do not require lab processing and return results within 15 minutes. The North Dakota Department of Emergency Services and the Greater North Dakota Chamber are surveying large employers to see if they would be good fits for the state’s tests, Ness said. He added that he’s hopeful smaller companies in the Bakken can make use of those tests too. The seven crews completing hydraulic fracturing work in the Bakken are using rapid tests, as well as workers at a gas plant construction site in Williams County, Helms said.
North Dakota oil production not likely to improve for months – North Dakota’s oil production was essentially flat in October, and it’s not likely to appreciably improve until well into next year or even 2022, the state’s mineral resources director said. North Dakota, the nation’s second-largest oil-producing state after Texas, pumped 1.22 million barrels of crude per day in October, down 236 barrels from the previous month, the state said Monday. Natural gas production, however, rose 2% from September to October. After the coronavirus pandemic decimated global oil demand, North Dakota’s crude production fell to a seven-year low in May of only of 858,400 barrels per day. Output then rallied over the summer as oil prices recovered a bit and shut-in wells were reopened. However, “that surge in July, August and September is over,” Lynn Helms, head of the North Dakota Mineral Resources Department, told reporters. The benchmark U.S. crude oil price – West Texas Intermediate (WTI) – has climbed over the past month from $41 to $47 per barrel, about where it was in early March. But Helms said WTI needs to get to at least $55 a barrel before oil operators in North Dakota start looking to drill new wells. Such new business is needed to boost total state oil output as production from existing wells naturally declines. “As we go into next year, I don’t think it looks promising in terms of growth,” he said. The pandemic’s effects on demand and depression of crude prices might not correct itself until late 2021 or 2022. Helms also noted that the oil industry is increasingly challenged by “ESG” – environmental, social, and corporate governance – investors. ESG investors’ influence is growing, Helms said. And they aren’t partial to the carbon-intensive oil industry. As for 2020, “all and all, it was a terrible year for the industry,” Helms said. Still, during his 40 years in the state’s oil patch, he said two other oil busts – one in 1985 and 1986, the other in 1999 and 2000 – were worse.
U.S. shale should be worried about ‘very aggressive’ policies from Washington: Energy secretary – American shale producers are likely being kept up at night over what could be in store for their industry over the next four years, if pledges made by some lawmakers in Congress and President-elect Joe Biden are anything to go by. U.S. Energy Secretary Dan Brouillette seems to think so. Asked by CNBC’s Hadley Gamble whether shale producers, whose drilling boom catapulted America to the position of the world’s largest oil producer in 2018, should be worried about the incoming administration, Brouillette replied, “Of course.” “I think they should be, frankly, because there are some in Congress who are going to drive a climate policy that’s going to be very aggressive. So there may be some concern on the part of those folks, I know the ESG (Environmental, Social, and Corporate Governance) movement is very strong.” “The investment money may become a bit more difficult to get,” he added. “Those are all policies where we’ll have to wait and see what happens with this new Congress.” A derrick man secures a length of drill pipe during drilling on a natural gas drill rig near Montrose, Pennsylvania, U.S., on Monday, April 5, 2010. Daniel Acker | Bloomberg | Getty Images The ESG movement has picked up pace in recent years, with some major investors – notably BlackRock, the largest asset manager in the world – “making sustainability integral to portfolio construction,” according to its CEO Larry Fink. Fink wrote this year that “climate risk is investment risk,” and that it’s brought the world to “the edge of a fundamental reshaping of finance.” But climate action on a federal government level may be what scares shale producers the most. Biden has pledged to pursue “aggressive emissions reductions,” focusing on a greener agenda that aims to reduce fossil fuel dependence in the fight against climate change, which climate scientists almost universally agree is a grave threat to the planet. A 2018 report by scientists in President Donald Trump’s own administration warned that climate change will cost the U.S. hundreds of billions of dollars yearly and harm human health. Trump, who has consistently supported the fossil fuel industry in favor of American energy independence, replied by saying, “I don’t believe it.” The Democratic former vice president doesn’t plan to outright ban fracking, the fossil fuel extraction process by which shale gas is produced, or oil and natural gas production generally, which employed nearly 1 million American workers in 2019, according to official U.S. figures. But he aims to significantly stifle it with regulation, many analysts say. Biden has pledged to protect national parklands and wildlife refuges, where Trump allowed or tried to allow drilling to take place, and says he will be “banning new oil and gas leasing on public lands and waters,” according to his campaign website. He also promised to enact punishments for major corporate polluters, proposing fines and even jail time, and warned that he’d force “polluters to bear the full cost of the carbon pollution they are emitting.” And when asked about his approach to the industry in a pre-election presidential debate with Trump, Biden said, “I would transition away from the oil industry, yes. The oil industry pollutes significantly. It has to be replaced by renewable energy over time.” He later backtracked somewhat, telling reporters, “We’re not getting rid of fossil fuels. We’re getting rid of the subsidies for fossil fuels, but we’re not getting rid of fossil fuels for a long time.” .
SEC approves anti-corruption disclosure after lengthy campaign by oil firms – – The Securities and Exchange Commission voted Wednesday to implement a new regulation requiring American oil and mining companies to report on payments to foreign governments, after a decade-long lobbying campaign by oil companies to weaken transparency efforts.Under the new regulation, U.S.-based companies would be required to report overall payments to governments but not force them to do so on a project-by-project basis, as required in the European Union and Canada. That has drawn protest from anti-corruption groups, who say the rule will offer a general sense of the money flowing into government coffers, but not the details of whether revenues are being skimmed by corrupt officials or the country is getting its fair share for extracted oil and gas.The rule stems from the bipartisan Cardin-Lugar Anti-Corruption Provision passed in 2010 as part of Dodd-Frank, Congress’s effort to regulate Wall Street and limit the amount of risk banks could assume after the 2008 financial crisis.But in the years after Republican opposition grew amid persistent lobbying and a lawsuit by the oil and gas industry, claiming it would be put at a disadvantage in bidding for overseas projects where transparency might be considered a detriment.In 2017 Republicans and President Donald Trump passed new legislation ordering the SEC not to require as much detail in creating anti-corruption rule-making.Last year under SEC Chairman Jay Clayton, the SEC released a revised rule that drew protest from Democrats and cheers from the oil sector. “We appreciate the Commission’s work on this rule and the effort to balance transparency with the its overall mission to protect investors, competition and the efficiency of capital markets,” Stephen Comstock, a vice president at the American Petroleum Institute, said in a statement Wednesday. “It will set the world back years in the effort to fight corruption in the oil and mining industries,” said Kathleen Brophy, U.S. director of the nonprofit Publish What You Pay. “It’s part of a slew of other midnight rules the Trump administration is trying to push through.”
John Day Dam oil leak spills into Columbia River – Maintenance technicians at John Day Dam estimated 63 gallons of oil spilled into the Columbia River from a pinhole leak in a turbine guide bearing chiller discovered on Monday, Dec. 7. The U.S. Army Corps of Engineers, Portland District (Corps) discovered the leak near the downstream side of the dam. Corps staff isolated the system, began identifying the exact number of gallons lost and started fixing the issue. The Corps is dedicated to rapid spill responses. “Daily, weekly and monthly inspections are a critical way for us to swiftly identify and respond to oil spills,” said Dwane Watsek, Operations Division chief. “The team’s attention to detail during one of these inspections led to the discovery of the pinhole leak. The unit will remain out of service and isolated from the river until technicians assess and repair it.” Corps officials notified partner agencies, including National Response Center, Oregon and Washington emergency management offices and the Columbia River Intertribal Fish Commission. This is the second spill at Corps dams on the Columbia River this month. The Dalles Dam spilled 45 gallons of oil into the river, Dec. 3. Corps technicians originally estimated the impacted turbine could have lost up to 200 gallons; however, they confirmed the lesser amount Dec. 11.
Oil continues to spill from sunken freighter off Vancouver Island; wildlife affected — Federal officials say emergency response crews will work through the holidays to try to contain an oil spill from a historic shipwreck off the west coast of Vancouver Island. The coast guard says it is still working to confirm just how much fuel oil was on board the Holland America freighter when it ran aground in Nootka Sound and sank in January 1968. The 150-metre MV Schiedyk was carrying thousands of tonnes of wood pulp and barley bound for Portland, Ore. when it went down near Bligh Island. All 34 sailors aboard the ship survived the wreck. Related Stories ‘A very serious situation’: Coast guard scrambles to clean spill from sunken freighter Mariners and aviators in the remote area say small slicks of bubbling oil have long been apparent on the water’s surface, but last month those trickles turned into a plume of oil stretching upwards of two kilometres. The coast guard says it first received reports of an oil sheen near the island in September but investigators couldn’t locate its source until early this month. On Tuesday, officials said there are approximately 30 to 50 litres of oil on the water’s surface at any given time. Six pollution response vessels and 40 personnel are currently on scene, with two more expected to arrive over the coming weeks. Crews have deployed two oil skimmers and nearly 5,000 metres of containment booms around the site to contain what DFO officials say is a “continuous but slow discharge of oil pollution.” More than 40 additional pollution response workers from federal, provincial and local governments are managing the spill response on shore. Federal officials said Tuesday they don’t know how much oil has been collected to date. Samples of the oil have been sent to a lab for identification and officials say both bunker fuel and diesel were on board when the vessel sank. “Photo and video documentation from the ROV (remotely operated underwater vehicle) shows that the ship sustained significant damage when it sank in 1968,” said wreck co-ordination spokesperson Kiri Westnedge. “The upwell of oil is coming from several locations in the vessel.” Westnedge says a dead sea otter was found near the spill site and a necropsy will determine whether it died due to exposure to the oil. Another sea otter was found alive but covered in oil. Crews were attempting to capture the otter Tuesday to transport it to the Vancouver Aquarium’s Marine Mammal Rescue Centre. A blue heron was also found coated in oil.
Snare Falls Hydro unit removed from service after potential oil spill spotted – The Snare Falls Hydro Unit was removed from service on Dec. 10, according to a news release issued by the Northwest Territories Power Corporation (NTPC) Friday. The release states that a “potential spill” was spotted in the water near Snare Falls as staff spotted an oil sheen during testing of the unit. A report was called into the NWT Oil Spill Line on the same day. “A diesel unit at the Jackfish Generating Plant will provide backup power while Snare Falls is offline, if required,” states the release. Noel Voykin, president and CEO at NTPC, provided a statement saying that the corporation is prioritizing environmental safety and contending with maturing equipment as it attempts to bring the unit back online. “NTPC took a proactive approach to protecting the environment when it began work at Snare Falls,” Voykin stated. “We expect to face ongoing challenges with maintenance of aging hydro infrastructure until our hydro fleet can be refurbished. Friday’s release states that NTPC became aware that the Snare Falls unit was consuming a higher volume of oil than normal last week. At the time, there was no evidence that the oil was being released to the environment. As a precautionary measure, booms were put in place several weeks ago when maintenance work began to ensure that any leaks are contained. The cause of the spill is still under investigation.Last May, the Snare Falls unit was shut down for about three weeks in May 2020 as the result of a similar situation. “The timetable for completion of the investigation and maintenance work at Snare Falls are unknown,” states the release. The costs are also unknown.
Alaska environmental regulator reports 190-barrel oil spill at Hilcorp site on Cook Inlet – An oil spill at a Hilcorp Alaska facility on the west side of Cook Inlet was discovered Tuesday afternoon, a state environmental regulator said Wednesday. The state reported that 190 barrels leaked from containment layers. As of Wednesday afternoon, the spill was contained to the facility and had not reached Cook Inlet, according to an Alaska Department of Environmental Conservation report. The spill was discovered by an operator at 12:30 p.m. Tuesday at the Trading Bay Production Facility, about 20 miles northwest of Kenai, and was reported two hours later, according to DEC. “It’s a large quantity of oil, however, the weather is working for us right now,” said Jade Gamble, a unit manager for DEC’s Prevention, Preparedness and Response Program. “The ground is frozen so it’s not able to seep through the ground as easily as it would in the summertime.” The spill is a mixture of 80% crude oil and 20% water, called “slop oil,” which can’t be sold, according to the report. On Tuesday, 15 barrels of oil were recovered from the spill. The spill happened during a transfer of oil from one tank to another, the state report said. An operator noticed that one tank wasn’t filling proportionately to how much oil was leaving the original tank. “After visual inspection, the operator observed oil under and around the edges of the secondary containment liner,” the state said. Gamble said the oil is on the ground and not being held by any other containment barrier, but is in the facility and is at this point staying put. She said the groundwater is more than 100 feet underground and currently believed to be safe from the spill. Hilcorp in a statement confirmed details of the state’s account of the spill. Spokesman Luke Miller in an email said the spill was “immediately isolated” and cleanup is underway. Gamble said the priority now is making sure the spill doesn’t reach Cook Inlet. She said the cause is still under investigation. In a report published online, the state cited “a leak in an underground line in the slop oil processing system.” The facility is near Trading Bay State Game Refuge and Redoubt Bay Critical Habitat Area, which contain important bird habitat, particularly in the summer, according to the state report. During winter, many species have migrated from the area, but it is home to rock sandpiper, which are known to overwinter there and might be in the area, the report states. Other potential overwintering wildlife include some species of waterfowl, seabirds, shorebirds, raptors and moose.
Groups to court: Stop ‘headlong rush’ to drill in ANWR — Wednesday, December 16, 2020 — A coalition of environmental and Indigenous groups last night asked a federal court to put an immediate halt to the Trump administration’s plans to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas development.
ECA LNG Export License Extended As Panama Canal Bottleneck Tightens – The U.S. Department of Energy (DOE) has extended through 2050 the long-term liquefied natural gas (LNG) export license of the Energia Costa Azul (ECA) facility that was sanctioned for the west coast of Mexico last month. ECA was one of seven LNG export projects for which DOE granted an extension following a policy change implemented by the Trump administration earlier this year. In addition to ECA, DOE extended export terms for the Golden Pass facility under construction in Sabine Pass, TX, as well as the Texas LNG project proposed for Brownsville, TX, the proposed Magnolia and Driftwood LNG terminals in Louisiana, and the Delfin floating LNG project offshore Louisiana. ECA has DOE authorization to import and liquefy U.S.-sourced natural gas for export from Mexico. Equity stakes of 41.7% each are held in the project by Sempra LNG and Infraestructura Energetica Nova (IEnova), while offtaker Total SE recently acquired the remaining 16.6%.The ECA project, one of multiple liquefaction terminals envisaged for Mexico’s west coast, would allow U.S. gas exports to bypass the Panama Canal and reach Pacific demand markets faster and more cheaply. The project’s geographic advantages explain why it was sanctioned this year in spite of the havoc wreaked by Covid-19 on the global LNG market, RBN Energy LLC analyst Jason Ferguson said in a blog post last week. He noted, however, that getting gas into the area “can sometimes be tricky,” citing that gas prices in the U.S. Desert Southwest and SoCalGas border regions have traded at premiums of about $0.20/MMBtu to the Louisiana and Texas Gulf Coast markets this year. Mexico Pacific Limited LLC’s (MPL) CEO Doug Shanda told NGI recently that commercial momentum for MPL’s LNG export project in Mexico’s Sonora state is building, citing that, “Asian countries don’t have indigenous resources and they’re really concerned about energy security.” LNG vessels have been waiting longer to pass through the Panama Canal in recent weeks, tightening an already stretched shipping market and creating logistical issues for U.S. LNG exports at a time when global gas prices are moving higher.
New Five-Year Plan for Mexico E&P Potential Sign of Future Bid Round Reactivation – The release of a new five-year plan by Mexican Energy Ministry Sener could be a sign that future exploration and production (E&P) bid rounds for private sector operators are in the offing. That’s according to analysis done by Mexican consultancy Talanza. E&P bid rounds have been frozen since President Andres Manuel Lopez Obrador came to power in late 2018, and this would be a sharp departure from current government policy. On October 28, Sener published the second five-year plan for E&P bidding processes as required by the Hydrocarbons Law. The first was published in 2015 with four subsequent annual updates from 2016 to 2019, but this is the first new plan published during the administration of Lopez Obrador. “At the beginning of his administration, president Lopez Obrador announced the suspension of future bidding rounds and the publication of this document raises suspicions about a possible policy change,” analysts Marco Cota and Ricardo Alcudia said. “However,” he warned, “this publication could be the outcome of a legal requirement.” The main differences between the new plan and the previous edition are the absence of unconventional areas and the increase in block size in the offshore. Learn More – LNG Insight “This five-year plan brings new hopes about reactivating bidding rounds in the future, based on the fact that Sener actually worked on a new proposal increasing block size and resources per block for offshore areas,” the analysts said. The previous plan included 187 blocks for unconventional areas covering 53,969 square km (20,838 square miles). Lopez Obrador and Energy Minister Rocio Nahle have been adamant that hydraulic fracturing (fracking) would not be permitted during this 2018-2024 presidential term, even as regulation for the technique remains in place. The new five-year plan formally recognizes that all rounds are suspended, and “relaunching them is conditioned to private operators’ cooperation for achieving national energy objectives,” the Talanza analysts said. In other words, private sector operators need to show results from the contracts awarded during the previous administration. Mexico’s private sector organization Asociacion Mexicana de Empresas de Hidrocarburos (Amexhi) is upbeat about the upstream performance of bid round winners. They said recently that E&P contracts awarded through Mexico’s 2013-2014 energy reform remain on track to reach targets. The group is aiming for natural gas production of 355 MMcf/d and oil output of 280,000 b/d by 2024 from the contracts, which were awarded through bid rounds, farmout tenders and the migration of oilfield service service contracts to E&P contracts between 2015 and 2018. “Practically all the oil companies in the world are cutting their investments,” the group said in an update published November 30. “Nonetheless, the commitment to Mexico is maintained.” The group said it expects private oil production to close 2020 at 57,000 b/d, up 20% from full-year output in 2020.
Venezuela’s PDVSA starts oil transfer from offshore facility to barge, sources say – (Reuters) – Venezuelan state oil company Petroleos de Venezuela PDVSA.UL has begun transferring crude off of an offshore oil facility where governments in two neighboring countries have voiced concerns about a potential spill, two people familiar with the matter said on Tuesday. The company this week began the first of several transfers from the Nabarima floating storage and offloading facility (FSO), anchored in the Corocoro oilfield off Venezuela’s eastern coast, onto the Inmaculada barge, said the people, who spoke on the condition of anonymity because they were not authorized to speak publicly. The Inmaculada will ferry the crude onto PDVSA’s Icaro tanker, a process expected to take weeks, the people said. Refinitiv Eikon tracking data show the Icaro navigated toward the Nabarima on Tuesday morning and anchored nearby in the Gulf of Paria. PDVSA did not immediately respond to a request for comment. The company has previously dismissed concerns by environmental groups and the governments of neighboring Trinidad and Tobago and Brazil that the facility could be prone to a spill. The Nabarima is holding some 1.3 million barrels of crude, and images of the facility listing in September and October raised alarms about a potential spill. PDVSA corrected its tilt and said the vessel, part of the Petrosucre joint venture with Italy’s ENI SpA ENI.MI was in satisfactory condition. PDVSA has suffered for years through cash flow shortages during an economic crisis that has led OPEC-member Venezuela to neglect maintenance of infrastructure. More recently, U.S. sanctions on the company aimed to oust Venezuelan President Nicolas Maduro have hindered operations.
Oil refinery fined over spill, penguins get off scot-free – An oil refinery business has been fined for leaking thousands of litres of transformer oil into Wellington’s Seaview Marina. No penguins were harmed by the toxic oil, but only by the sheer chance that their breeding season was over. eNZoil (NZ) Ltd was convicted and fined $90,000 for discharging between 5000 and 6000 litres of refined transformer oil from their operation into the stormwater network and then Seaview Marina, on March 17 – 18 last year. Greater Wellington Regional Council laid charges against the company, which takes waste transformer oil and refines it into a usable product. In passing sentence, Judge Dwyer said the discharge was a result of gross negligence and significant failures. The spill was the result of a series of failures, including not closing a valve on a bund which should have contained any spill. The oil, despite being refined, is still toxic to sea life..”Given the proximity to the marina and the direct connection to the stormwater system, they should have been aware of the risks; processes should have be undertaken with the highest degree of care.” However, he acknowledged that eNZOil was an environmental and sustainability focused organisation, taking a waste product and making it reusable. eNZoil assisted with clean-up, which involved regional council harbours and environmental protection staff, Hutt City council officers, and marina staff. A spokesperson said the company immediately accepted responsibility. “We were implementing equipment and process changes which we believe would have prevented the event, but regrettably these were not in place at the time.” Ongoing improvements to their system would ensure no more spills. “eNZoil is a small business committed to removing a pollutant from the environment not adding one to it.”
Reliance, BP Ramp Up First of Three Massive Natural Gas Fields Offshore India – BP plc and Reliance Industries Ltd. have ramped up production from the first of a trio of ultra-deepwater natural gas fields offshore India that could meet the country’s rapidly expanding energy needs and reduce the need for imports. The R Cluster project in Block KG D6 is about 60 kilometers (37 miles) off the east coast of India. Satellites Cluster is set to come onstream in 2021, followed by the MJ project in 2022. Peak gas production from the three fields is forecast to be around 1 Bcf/d, or 30 million standard cubic meters/d (MMcm/d) by 2023. The three fields together could meet 15% of India’s gas demand by 2023 and account for 25% of total domestic production, sharply reducing the need for liquefied natural gas (LNG) imports. “This start-up is another example of the possibility of our partnership with Reliance, bringing the best of both companies to help meet India’s rapidly expanding energy needs,” BP Group CEO Bernard Looney said. “Growing India’s own production of cleaner-burning gas to meet a significant portion of its energy demand, these three new KG D6 projects will support the country’s drive to shape and improve its future energy mix.” The field is expected to reach plateau gas production of nearly 13 MMcm/d) in the coming year. It would produce from a subsea production system tied back to the existing KG D6 Control & Riser Platform (CRP) via a subsea pipeline. Reliance operates the field with a 66% stake; BP holds the minority interest. The partnership with BP “combines our expertise in commissioning gas projects expeditiously, under some of the most challenging geographical and weather conditions,” India’s growing energy needs “require rapid scaling across a wide spectrum of energy sources and technological solutions,” BP noted. India is the world’s third largest primary energy consumer today, according to BP’s Energy Outlook. The country’s primary consumption is set to more than double by 2050. “However, primary energy consumption per capita is significantly lower than most countries, indicating significant inequities in energy consumption,” BP noted. “Gas consumption is 60 billion cubic meters/d (165 MMcm/d), and more than 50% is imported.”
Japan considers Yen30 billion loan to Mauritius after oil spill – Japan is considering offering Yen30 billion ($289 million) in loans to Mauritius following a major oil spill in July off its coast caused by a Japanese freighter, Foreign Minister Toshimitsu Motegi said Sunday during a visit to the Indian Ocean country. Speaking after talks with Mauritius Prime Minister Pravind Jugnauth and Foreign Minister Nandcoomar Bodha, Motegi said Japan will also start delivering technical support to restore the Mauritian environment and local fisheries industry from next month. Motegi said Japan will “positively consider” meeting Mauritius’ request for yen loans to help it recover from the spill and develop its economy, which has also been hit by the novel coronavirus pandemic. “Japan hopes to implement concrete cooperative measures thoroughly at an unprecedented speed and size,” Motegi told reporters online from Mauritius, after he inspected a coastal area damaged by the oil spill. Tokyo is working to compile an aid package for Port Louis after Motegi promised Jugnauth over the phone in September to provide long-term assistance, including support for the local fisheries industry and for restoring damaged mangroves. Japan has since sent a team of experts to Mauritius to work out the package.
Japan operator says human error caused Mauritius oil spill – The Japanese operator of a bulk carrier that struck a coral reef and caused an extensive oil spill off the coast of Mauritius said Friday that the accident occurred after the ship shifted its course two miles (3.2 kilometres) closer to shore than planned so its crewmembers could get cellphone signals. Mitsui O.S.K. Lines said its investigation showed the accident was caused by human error, including inadequate nautical charts, navigation systems and risk awareness, and a lack of supervision and safety monitoring. The company said the tanker’s nautical chart provided little information about depth and other necessary information. Crewmembers on duty also failed to conduct safety checks visually or by radar, it said. The captain and crewmembers were also using their cellphones while on duty, the company said. It said it will invest about 500 million yen ($4.8 million) to provide electronic nautical charts, training to strengthen safety culture and other systems to enhance safety. The environmental disaster began July 25 when the ship MV Wakashio strayed off course and struck a coral reef a mile (1.6 kilometres) offshore. After being pounded by heavy surf for nearly two weeks, the ship’s hull cracked and on Aug. 6 began leaking fuel into a lagoon, polluting a protected wetlands area and a bird and wildlife sanctuary. The company apologized for the damage and in September offered 1 billion yen ($9 million) to fund environmental projects and support the local fishing community in Mauritius. More than 1,000 tons of oil spilled into the coastal waters. About 3,000 tons that remained on the ship was pumped into barges before the Wakashio broke in two several days later. Thousands of civilian volunteers worked for days to try to minimize damage from the oil spill, while environmental workers ferried baby tortoises and rare plants to shore and plucked trapped seabirds out of the goo.
Report indicts Shell employees for causing oil spills in Niger Delta -Employees of Shell Petroleum Development Company (SPDC) in Nigeria cause oil spills to enable them to make money from cleanups, a new report by Milieudefensie and Friends of the Earth Nigeria, verified by an independent journalist, has said. A statement issued by Head of Yenagoa Office of the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) in Bayelsa State, Alagoa Morris, revealed that Shell organises the oil spill cleanups in such a way that they generate income for the local population and that the oil giant was aware of the development, but was doing nothing about it. Milieudefensie said: “Shell employees are involved in the oil spills in Nigeria. This directly contradicts the picture that Shell paints, in which it places the responsibility for the spills on rebels and saboteurs. “Residents of Ikarama in the Niger Delta not only confirm that Shell employees hire residents to perpetrate spills, but also claim that they have approached everyone in the community. Most people are sensitive to the issue because their fields and fishponds are often too polluted by oil to earn a living.” A representative of the Ikarama community pointed out that “someone who is hungry is someone who easily consents.” “Shell employees, residents, and cleanup companies are working together. The employee points out where and when a spill occurs. Young people usually perpetrate spills. Then a Shell employee hires a cleanup company from among the perpetrator’s acquaintances and afterward, they divide the profit among themselves. At least 30 oil spills have been recorded in the Ikarama area in the past 10 years,” the statement added. The report described several key moments that prove that Shell was aware of the practices and, should, therefore, be Shell’s responsibility to protect the pipelines from the spills and also arrange for their cleanup.
IEA, OPEC Each Lower Estimates for Global Oil Demand, Citing Weak Transportation Fuel Consumption – Demand for transportation fuel remains weak amid a still-raging global pandemic, forcing downward revisions to oil consumption for 2020 and next year. The International Energy Agency (IEA) said Tuesday in its Oil Markets Report for December that it lowered its demand estimate for this year by 50,000 b/d and its projection for next year by 170,000 b/d. Citing pandemic-induced travel restrictions that continue to curb demand for jet fuel and gasoline in Europe and the United States, the Paris-based watchdog said 2020 oil demand would fall 8.8 million b/d when compared to 2019, to 91.2 million b/d, while 2021 consumption would increase by an estimated 5.7 million b/d. IEA researchers said coronavirus vaccines that hit the market this month – and more are expected early next year – provide upside to both economic growth and fuel demand in 2021, though the recovery is expected to prove gradual over the first half of the year. A full rebound is dependent on widespread inoculation bringing an end to the pandemic. It “will be several months before we reach a critical mass of vaccinated, economically active people and thus see an impact on oil demand,” IEA researchers said. “In the meantime, the end-of-year holiday season will soon be upon us with the risk of another surge in Covid-19 cases and the possibility of yet more confinement measures.” The Organization of the Petroleum Exporting Countries this week also lowered its 2021 global oil demand forecast. In its Monthly Oil Market Reportreleased Monday, the cartel said it now expects consumption will rise by 5.9 million b/d to 95.89 million b/d in 2021. In November, it predicted demand would grow by 6.25 million b/d. Last month’s outlook reflected a 300,000 b/d drop from a previous forecast. OPEC expects oil demand to decline by 9.77 million b/d to 89.99 million b/d this year. It cited the festering impacts of the coronavirus pandemic on transportation fuel demand for the lowered 2021 outlook and the 2020 decline. The pandemic “and accompanying lockdown measures have had an unprecedented impact on world oil demand,” OPEC researchers said, “with the latest data pointing to a historic contraction” in 2020.”Uncertainties remain high,” they added, noting the likelihood of more virus outbreaks this winter and the unknown pace of vaccine rollouts, as well as the potential for long-term changes to consumer behaviors, “predominantly in the transportation sector.”
Oil prices steady after six weeks of gains, pressured by glut (Reuters) – Oil prices were little changed in choppy trade on Monday as persistent oversupply in the market largely offset hopes that a rollout of coronavirus vaccines will lift global fuel demand. Brent crude futures for February ended the session 32 cents, or 0.6%, higher at $50.29 a barrel, while U.S. West Texas Intermediate crude futures for January settled up 42 cents, or 0.9%, at $46.99 a barrel. Prices slid more than 1% earlier in the session after OPEC said global oil demand would rebound more slowly in 2021 than previously thought because of the lingering impact of the coronavirus pandemic, hampering efforts by the group and its allies to support the market. Brent and WTI have rallied for six consecutive weeks, their longest stretch of weekly gains since June. “Price momentum has slowed appreciably during the past couple of weeks and while some fresh or unexpected bullish headlines may be required to advance the complex into new high territory, we will also note a market that appears to have developed immunity to bearish headlines that would normally be slapping the complex down,” Jim Ritterbusch, president of Ritterbusch and Associates, said. Signs of rising supply have weighed on the market. Libyan oil production stood at 1.28 million barrels per day on Monday, a National Oil Corporation (NOC) source said, up from 1.25 million bpd in late November. In the United States, energy firms last week added the most oil and natural gas rigs in a week since January as producers continued to return to the well pad. Global onshore crude inventories in December are still well above 2019 and 2018 levels, market intelligence firm Kpler said, with the biggest onshore builds this year seen in China .
Oil prices rise to 9-month high on vaccine rollout, stimulus hopes – Oil prices gained on Monday amid hopes that a rollout of coronavirus vaccines will lift global fuel demand. Brent crude futures for February rose 32 cents, or 0.6%, to $50.29 a barrel, while U.S. West Texas Intermediate crude futures for January were up 42 cents, or 0.9%, at $46.99 a barrel, its highest level in nine months. Brent and WTI have rallied for six consecutive weeks, their longest stretch of weekly gains since June. “Price momentum has slowed appreciably during the past couple of weeks and while some fresh or unexpected bullish headlines may be required to advance the complex into new high territory, we will also note a market that appears to have developed immunity to bearish headlines that would normally be slapping the complex down,” Signs of rising supply have weighed on the market. Libyan oil production stood at 1.28 million barrels per day on Monday, a National Oil Corporation (NOC) source said, up from 1.25 million bpd in late November. In the United States, energy firms last week added the most oil and natural gas rigs in a week since January as producers continued to return to the wellpad. Global onshore crude inventories in December are still well above 2019 and 2018 levels, market intelligence firm Kpler said, with the biggest onshore builds this year seen in China . “Whilst the sharp jump of global stocks from the beginning of the Covid pandemic in spring to summer mirrored anemic fuels demand early this year, a still historic high volume of crude oil stocks indicates worldwide demand hasn’t yet bounced back to pre-Covid levels,” Major European countries continued in lockdown mode to curb the spread of COVID-19 which has reduced fuel demand. For example, Germany, the fourth largest economy in the world, plans to impose a stricter lockdown from Wednesday to battle the virus. In early trading, prices rose after a shipping firm said an oil tanker was hit in the Saudi port of Jeddah, which the energy ministry called a terrorist act. “Traders have for years now been used to tensions flaring in the region and when that happens, oil markets tick up,” “(The blast) has caused concerns for stability in the major oil hub of Jeddah and for overall traffic security in the region.”
Oil rises more than 1% to 9-month high as vaccine optimism offsets new lockdowns – Oil rose on Tuesday as optimism from the roll-out of coronavirus vaccines balanced out tighter lockdowns in Europe and forecasts of a slower demand recovery. The United States began vaccinating people on Monday as the country’s COVID-19 death toll crossed the 300,000 mark. Britain and Canada have also begun to administer shots. U.S. West Texas Intermediate (WTI) crude settled up 63 cents, or 1.34%, at $47.62. Brent crude was up 41 cents, or 0.8% at $50.70 a barrel. Oil prices have recovered in the past few weeks, with Brent reaching $51.06 on Dec. 10, its highest since March, supported by hopes of a recovery in demand. Prices had dropped to historic lows in March as the pandemic took hold. “Brent is continuing to defy all the negative news,” said Carsten Fritsch, an analyst at Commerzbank. “More and more countries in Europe and states in the U.S. are tightening the corona restrictions over Christmas and the new year, which is likely to weigh on demand.” London stepped up pandemic restrictions requiring bars and restaurants to close, Italy is considering more stringent steps over Christmas and Germany is likely to be under lockdown until early 2021. Forecasters are also trimming demand numbers. The International Energy Agency on Tuesday said that any impact of the vaccines on demand is several months away. OPEC on Monday had said oil demand will rise more slowly than expected. “There is a growing agreement between forecasting agencies that the improvement in global oil demand might not start at the beginning of next year but in the second half,” said Tamas Varga of oil broker PVM. The latest snapshots of U.S. oil supplies are expected to show a mixed picture, with gasoline and distillate stocks rising and crude inventories falling.
Oil prices slip on surprise gain in U.S. inventory, demand worries (Reuters) – Oil prices dropped on Wednesday on a surprise gain in crude oil inventories in the United States and as investors continued to worry about demand for fuel being squeezed amid tighter lockdowns in Europe to counter the coronavirus pandemic. Brent crude futures fell 8 cents, or 0.2%, to $50.68 a barrel at 0126 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 6 cents, or 0.1%, to $47.56 a barrel. “Crude prices are slightly softer after the API (American Petroleum Institute) inventory report posted a second consecutive build,” said Edward Moya, senior market analyst at OANDA. Crude inventories swelled by 2 million barrels in the week to Dec. 11 to about 495 million barrels, according to industry group API. Analysts had expected a draw of 1.9 million barrels, according to a Reuters poll. Official government data was scheduled for Wednesday. The rollout of vaccines this month to combat the coronavirus pandemic will not quickly reverse the destruction wrought on global oil demand, International Energy Agency (IEA) warned on Tuesday. The IEA revised down its estimates for oil demand this year by 50,000 barrels per day (bpd) and for next year by 170,000 bpd, citing scarce jet fuel use as fewer people travel by air. “On the demand side, the biggest near-term downside risk to oil demand expectations is the United States, predominately due to persistent weaknesses in U.S. gasoline demand, given the current trajectory of COVID-19 in the country,” analysts at FGE wrote in a note. Still, progress on vaccine rollouts continued on Tuesday after Moderna Inc’s COVID-19 vaccine appeared set for U.S. regulatory authorisation this week. The U.S. also expanded on Tuesday its rollout of the newly approved COVID-19 vaccine developed by Pfizer Inc and German partner BioNTech SE to hundreds of additional distribution centres on Tuesday, inoculating thousands more healthcare workers in a mass immunisation expected to reach the general public in the coming months.
Oil advances after larger-than-expected U.S. crude stockpile draw – Oil prices edged higher on Wednesday, buoyed by U.S. government data that showed crude stockpiles fell last week and by optimism about a coronavirus relief package in the United States. Brent crude futures rose 28 cents to $51.04 a barrel. West Texas Intermediate (WTI) crude futures settled 20 cents, or 0.4%, higher at $47.82 per barrel. U.S. crude inventories fell by 3.1 million barrels in the week to Dec. 11, the Energy Information Administration said. Analysts had expected a 1.9-million-barrel drop, after stockpiles surged in last week’s data. “We couldn’t afford to have a build after last week,” said Bob Yawger, director of energy futures at Mizuho. “A U.S. stimulus package seems on the way, which will also be supportive.” U.S. congressional leaders said substantial progress has been made in the months-long standoff on coronavirus relief and a funding bill to avert a government shutdown. U.S. oil demand is down roughly 13% year-to-date due to the coronavirus pandemic, and Wednesday’s figures on retail sales showed a second consecutive month of declining spending due to a resurgence in COVID-19 cases. Worldwide demand has been poor, with the most notable rebound coming in China. The International Energy Agency (IEA) warned on Tuesday that it will take some time to reverse the collapse in global oil demand during the pandemic. The IEA revised down its estimates for oil demand this year by 50,000 barrels per day (bpd) and for next year by 170,000 bpd, citing reduced jet fuel use as fewer people travel by air. In Europe, Germany entered a strict lockdown on Wednesday as the number of registered deaths from COVID-19 jumped by the highest daily increase yet.
Oil Prices Advance As US Inventories Decline — Oil closed higher on a surprise decline in U.S. crude inventories, but gains were limited with increased gasoline and diesel supplies underscoring weaker fuel demand. Futures in New York rose for a third straight day on Wednesday after flipping between gains and losses during the session. A U.S. government report showed domestic crude supplies fell more than 3 million barrels last week. But the data showed fuel supplies rose and gasoline inventories are at the highest since August, highlighting the mixed picture within the petroleum complex. “The bounce-back in exports and significant decline in imports is driving the draw,” said Rob Thummel, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. Still, “lack of mobility will impact gasoline demand.” Despite the day-to-day fluctuations in headline crude futures, the rally in physical oil prices signals the fundamental strength underlying the market as Asia leads the recovery from the pandemic-induced demand slump. A slew of purchases from Indian and Chinese refiners have lifted crude values from Russia, the Middle East, Latin America and the U.S. At the same time, other areas of the petroleum markets are signaling strength. Higher diesel prices have lifted the profitability of processing a barrel of light crude into fuels, as diesel consumption has returned to pre-virus levels due to an e-commerce-driven boost in trucking. “Prices since the beginning November have trended higher, and have made up a lot of ground,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “The faster we get the vaccinations globally, the more that helps the oil narrative.” West Texas Intermediate for January delivery gained 20 cents to settle at $47.82 a barrel, its highest since late February. Brent for February settlement gained 32 cents to end the session at $51.08 a barrel. The contract is at the highest since March. The rise in gasoline inventories comes as indicators of demand for the fuel trend lower. The four-week rolling average for gasoline consumption was down for a fifth straight week and it may weaken further amid expectations for fewer road trips in the U.S. during the Christmas holiday period. Meanwhile, the mixed outlook for oil has weakened the front end of Brent’s forward curve, which is now on the verge of a bearish contango structure in which nearer-dated contracts trade at a discount to later-dated ones. For comparison, Brent’s nearest contract last week traded at a premium of as high as 18 cents to the following month. Crude’s rally over the past month and a half also raises concerns over how well the Organization of Petroleum Exporting Countries can keep output in check, while the producer group and its allies move to taper some of their output cuts come January.
Oil prices rise, hit 9-month high on U.S. stimulus progress (Reuters) -Oil climbed on Thursday and touched a nine-month high, with traders optimistic about progress toward a U.S. fiscal stimulus deal and record-breaking refining demand in China and India. U.S. lawmakers edged closer to agreement on a $900 billion virus-relief spending package on Wednesday. The U.S. dollar set a 2-1/2 year low against major rivals on Thursday. Since crude is priced in greenbacks, this made oil cheaper for buyers holding other currencies. Brent crude futures settled up 42 cents at $51.50 a barrel, and touched a session high of $51.90. U.S. West Texas Intermediate (WTI) crude futures rose by 54 cents to $48.36 a barrel, with a session high of $48.59. Both benchmarks hit their highest since early March. “Asia was ahead of the curve in recovery mode from the Coronavirus,” said Phil Flynn, senior analyst at Price Futures in Chicago. “Looking at what we’re seeing in Asia is raising expectations that in the New Year we will see a rapid increase in crude oil demand, as the vaccine rolls out in the U.S.,” he said. The United States on Thursday expanded its campaign to deliver COVID-19 vaccine shots. U.S. crude inventories fell by 3.1 million barrels in the week to Dec. 11, the Energy Information Administration said, far more than analysts’ expectations of a 1.9-million-barrel drop.
Oil up a 4th straight session to settle at highest price in over 9 months – Oil futures on Thursday stretched their gains to a fourth straight session, as signs of progress toward another round of economic relief by U.S. lawmakers helped to keep prices at their highest levels in more than nine months. “Crude prices have been unstoppable the last several weeks as vaccine rollouts begin, oil inventories are starting to come down, Asian demand remains robust, and the dollar slide propels commodities higher across the board,” Edward Moya, senior market analyst at Oanda, said in a market update. “If Congress can get a virus relief bill done this week, that might be the last catalyst needed to help WTI crude make a run towards the $50 level,” he said. West Texas Intermediate crude for January delivery rose 54 cents, or 1.1%, to settle at $48.36 a barrel on the New York Mercantile Exchange, for the highest front-month contract settlement since Feb. 26, according to Dow Jones Market Data. February Brent crude , the global benchmark, added 42 cents, or 0.8%, to $51.50 a barrel on ICE Futures Europe to log the highest finish since March 3. “Sentiment has shrugged off slightly bearish monthly updates from OPEC, the EIA, and the IEA this week,” Crude was lifted Wednesday after the Energy Information Administration reported that U.S. crude inventories (link) fell by a larger-than-expected 3.1 million barrels in the week ended Dec. 11. Meanwhile,Washington lawmakers were seen making progress toward a $900 billion package (link) of economic relief. The U.S. reported a record 247,000 new COVID-19 cases on Wednesday, The Wall Street Journal reported (link), citing data compiled by Johns Hopkins University. There were 113,090 COVID-19 patients in U.S. hospitals on Wednesday, according to the COVID Tracking Project (link), up from 112,816 on Tuesday, as hospitalizations reached a record for an 11th-straight day. An advisory panel was widely expected on Thursday to recommend the Food and Drug Administration authorize a COVID-19 vaccine developed by Moderna Inc. If the FDA does so, it would be the second vaccine authorized by the FDA, joining the drug developed by Pfizer Inc. (PFE) and BioNTech SE (BNTX), which saw rollout begin this week. “The only thing that could get in the way of oil’s rally is if any problems emerge with the coronavirus vaccine rollouts,” Moya said. “Transportation issues and some slowness in getting people vaccinated may start to raise doubts that a return to pre-pandemic life will happen by mid-fall.” Back on Nymex, natural-gas futures finished lower after the Energy Information Administration reported on Thursday that domestic supplies of natural gas declined (link) by 122 billion cubic feet for the week ended Dec. 11. On average, the data were expected to show a drop of 127 billion cubic feet for the week, according to analysts polled by S&P Global Platts.
Oil settles up, marking seventh straight weekly gain (Reuters) -Oil settled up at a nine-month high on Friday, rounding out seven straight weeks of gains as investors focused on the rollout of COVID-19 vaccines and a decline this week in the U.S. dollar. Pfizer has applied for approval in Japan for its vaccine, which is being used in the United Kingdom and the United States. U.S. Vice President Mike Pence said U.S. approval for Moderna’s shot could come later on Friday. Brent crude settled up 76 cents, or 1.5%, to $52.26 a barrel after touching $52.48, its highest since March. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1.5%, to $49.10 after reaching $49.28, its highest since February. The U.S. dollar rebounded slightly on Friday but stayed near 2-1/2-year lows reached a day earlier. A weak dollar makes oil and other commodities cheaper for buyers using other currencies. U.S. lawmakers worked late to meet a deadline to agree on $900 billion in fresh relief for the pandemic-hit economy, but may instead may pass a third stopgap spending bill to keep the government from shutting down at midnight. The dollar’s weekly decline “is a significant move down and is pushing the oil complex higher,” said John Kilduff, partner at Again Capital LLC in New York. Oil gained support this week from weekly U.S. supply data showing crude inventories fell more than expected. [EIA/S] The oil and gas rig count, an early indicator of future output, rose by eight to 346 in the week to Dec. 18, the highest since May, energy services firm Baker Hughes Co said in its closely followed report on Friday. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are supporting the market by slowing the pace of a planned increase in supplies next year. OPEC+ plans to add 500,000 barrels per day of supply in January and will meet in early January to decide on next steps.
Oil Prices Post Another Weekly Gain — Oil rose for a seventh straight week as efforts to pass another U.S. virus relief package added to optimism that the vaccine’s rollout will provide a long-awaited boost to demand. Futures rose 1.5% in New York on Friday, extending this week’s rally to over 5%. Talks on a relief package have made some headway, with Senate Majority Leader Mitch McConnell saying he’s “even more optimistic now” that an agreement is near. Recent progress in rolling out a Covid-19 vaccine has also buoyed the outlook for consumption. “It’s all about the return to pre-pandemic life, and we’re getting there,” said Edward Moya, senior market analyst at Oanda Corp. “You have major breakthroughs on the vaccine front, which has been very positive for the demand recovery outlook. People are also playing close attention to the overall trajectory of the U.S. dollar.” The Bloomberg Dollar Spot Index is set for a weekly decline and has been trading near its lowest since 2018. A weaker dollar raises the appeal for commodities priced in the currency. Underlying the climb in headline crude prices, premiums on nearer-dated contracts relative to later ones are indicating improving demand. The bullish pattern known as backwardation has strengthened at the back end of oil’s forward curve. West Texas Intermediate’s nearest December contract trades more than a $1 a barrel higher than that for December 2022, compared to trading at a discount less than a month before. Yet, there are signs the market’s rally is due for a pause. Brent’s nearest timespread ended the week at parity, compared with a premium of as much as 18 cents the week prior. At the same time, premiums for real-world barrels are easing. “There’s great news about the arrival of vaccines, the promise they hold, and that global demand is likely to return in a big way as a result,” said Matt Marshall, director of market analytics at AEGIS. “But in the near term, that has zero effect on petroleum demand.” West Texas Intermediate for January delivery rose 74 cents to settle at $49.10 a barrel. Brent for February settlement gained 76 cents to $52.26 a barrel. Both benchmarks closed at their highest since late February. The spreading virus and lockdowns are weighing on demand, but the hit is much smaller than earlier in the year and is likely only a speed bump to rebalancing the market, according to a Goldman Sachs note. This will leave the oil market range-bound and choppy in coming weeks as vaccine enthusiasm is followed by headlines on tighten pandemic restrictions, the bank said. Meanwhile, as oil prices move higher, there are concerns this might lure producers to tap capacity that’s been sidelined during the pandemic. While the U.S. shale industry requires heavy reinvestment to boost output, the large amount of spare capacity could present a risk to further price gains.
Scientists warn of ‘imminent and devastating’ Red Sea oil spill from Houthi-held tanker – A decaying tanker moored off Yemen’s Houthi-controlled coast is on the verge of creating one of the world’s biggest oil spills, scientists have warned. The Safer tanker holds one million barrels of oil – four times the amount that leaked from the Exxon Valdez in the catastrophic 1989 spill in Alaska. The Houthi militia has repeatedly blocked experts from accessing the ship, which was abandoned in 2015. A paper published on Tuesday by a group of international experts warned that unless action was taken immediately, there would be a “regional environmental and humanitarian disaster.” The scientists developed a computer model of how the oil would disperse if a major leak unfolds during winter. Currents at this time of year would spread the oil much further along the Red Sea coast than in summer. The tanker, which was used as a storage and offloading vessel, is moored off the coast of Hodeidah, a key battleground in Yemen’s conflict between the Iran-backed Houthis and the internationally recognized government. “The time is now to prevent a potential devastation to the region’s waters and the livelihoods and health of millions of people living in half a dozen countries along the Red Sea’s coast,” said Karine Kleinhaus, an associate professor of the School of Marine and Atmospheric Sciences at Stony Brook University, who led the team of scientists. “If a spill from the Safer is allowed to occur, the oil would spread via ocean currents to devastate a global ocean resource, as the coral reefs of the northern Red Sea and Gulf of Aqaba are projected to be among the last reef ecosystems in the world to survive the coming decades.” She said that the region’s reefs can survive in much warmer waters compared to other coral around the world, which is being wiped out by rising temperatures due to climate change.
Researchers Warn of Looming Oil Spill Four Times Larger Than Exxon Valdez if Urgent Action Not Taken — A team of scientists issued a stark warning Tuesday that the possibility of averting an oil spill bigger than the 1989 Exxon Valdez catastrophe and “disastrous environmental and humanitarian consequences” posed by an abandoned oil tanker in the Red Sea are “quickly disappearing.” At issue is the corroding Safer, moored off the coast of Yemen and under control of Houthi rebels since 2015. After blocking such efforts for years, Houthi authorities last month approved a United Nations plan to visit the tanker early in 2021. U.N. Environment Program executive director Inger Andersen warned in July that the vessel’s deteriorating condition and the over 1 million barrels of oil it holds threaten long-term damage to local ecosystems. In a policy brief published in Frontiers in Marine Science, researchers said the need to pump off the oil is urgent. “A massive leak of over 1 million barrels of oil (4 times the Exxon Valdez tanker spill) is anticipated shortly off the coast of Yemen, in the Red Sea, where the Safer floating storage and offloading unit (FSO) is in the final stages of decay.” That quantity, they continued, “guarantees a regional environmental and humanitarian disaster,” with impacts certain to affect dozens of coastal countries and the sea’s rich biodiversity, including its coral reefs. Given the stakes, the paper called for the U.N. International Maritime Organization and U.N Secretary-General Antonio Guterres to “take coordinated action and achieve access to the Safer by all means necessary in order to pump off the oil.” That action must happen before winter, they added, pointing to models showing that “winter oil dispersion will extend further north and into the center of the Red Sea as compared to a spill dispersing during summer.” “The time is now to prevent a potential devastation to the region’s waters and the livelihoods and health of millions of people living in half a dozen countries along the Red Sea’s coast,”
Saudi Arabia Reins In Spending to Contain Deficit – WSJ -Saudi Arabia plans to spend less next year to rein in a pandemic-induced budget deficit, pursuing austerity even as a rally in oil prices signals a higher demand for crude and a global economic recovery. The Saudi government expects to trim its budget deficit from 12% of economic output this year to 4.9% in 2021, as it lowers spending by about 7% to 990 billion Saudi riyals, equivalent to $264 billion, the country’s Finance Ministry said Tuesday. State revenues are forecast to grow nearly 10% to 849 billion riyals on higher taxes and oil revenues. Saudi Arabia’s budget announcement is a closely watched measure of spending in the wider Gulf region and an indicator of Riyadh’s expectations on the direction of oil prices. Crown Prince Mohammed bin Salman is expected to face a tricky economic balancing act next year as the kingdom’s de facto ruler will have to cut spending on some projects related to his plan to diversify the economy yet still try to create jobs for his young population. The crown prince also faces a new administration in Washington that has indicated it would reassess the U.S. relationship with Riyadh, which could hamper already weak investment into the kingdom. Saudi Arabia’s oil infrastructure also has come under increasing attack, threatening its ability to earn revenues. This week, a boat loaded with explosives targeted an oil tanker at the Saudi port city of Jeddah, in the latest strike on the country’s hydrocarbon assets. While crude prices have rallied 30% since the start of last month, the International Monetary Fund predicts Saudi Arabia’s economy will shrink by 5.4% this year, compared with a global contraction of 4.4%. The Saudi government forecasts a return to growth of 3.2% next year. Unemployment among Saudis stands at roughly 15%, according to the latest government statistics.
U.S. energy secretary sees Middle East oil and gas security in pipelines, not tankers– Outgoing U.S. Energy Secretary Dan Brouillette is looking for alternative methods to transport Middle East oil and gas to ensure regional energy security. “Part of the conversation we’re having with the Abraham Accords is to look for alternatives to shipping, so that’s why these pipelines are so important,” Brouillette told CNBC’s Hadley Gamble on Wednesday. The energy secretary visited Abu Dhabi this week to meet with ministers from the United Arab Emirates, Bahrain and Israel. Their discussions follow September’s signing of the Abraham Accords, which normalized diplomatic relations between Israel and several Arab states. With just over four weeks remaining in the role, Brouillette is making a final lap through the region as the Trump era of strong-arm oil diplomacy comes to an end in the U.S. Brouillette will be replaced by Jennifer Granholm, the former governor of Michigan who, unlike her predecessor, is widely seen as a climate hawk. As Brouillette leaves his post, Gulf leaders are questioning how Joe Biden will engage with the region on issues like Iran. Middle East allies still don’t know how the United States, a primary external foreign policy actor in the region, will guarantee security and stability of supply to key markets in Asia and beyond. The Middle East holds over half the world’s proven oil reserves, but exporting it through the narrow Strait of Hormuz can often prove difficult. The UAE and Saudi Arabia have long sought to find alternative routes to bypass the Strait, including through pipelines. The Abu Dhabi Crude Oil Pipeline has a capacity of 1.5 million barrels per day and carries the bulk of its production to the UAE port of Fujairah on the Indian Ocean. Saudi Arabia already exports some of its oil using a 745 mile-long pipeline that runs from its key production facilities in the east to the Red Sea port city of Yanbu in the west. A major expansion of its capacity is already underway. Robin Mills, CEO of Qamar Energy told CNBC there is “no perfect solution” for exports. “Tankers can be vulnerable at certain times, so can pipelines. The point is about having options and having a diversity of routes, about having backup. And that’s really what Saudi Arabia and the UAE and tried to do with those pipelines,” he said. “Pipelines can be vulnerable, but you can also protect them,” Brouillette told CNBC on Wednesday. “If we can move natural gas more easily throughout the region, shipping becomes less of a concern. If we can move crude more easily, shipping becomes less of a concern.”
Iran fights fire in southwest after oil pipeline spill -Firefighters were working to put out a blaze after a pipeline carrying crude oil to Iran’s second-largest refinery ruptured and burst into flames on Sunday, Iranian news agencies reported. “The fire has not been contained but is under control. Its smoke is irritating, but it is not enough to injure anyone, and flames have not reached people’s homes,” Khosro Kiani, an emergency owicial in southwestern Iran, where the blaze occurred,told the semiowicial news agency Tasnim. 12/14/2020 Iran fights fire in southwest after oil pipeline spill | Deccan Herald https://www.deccanherald.com/international/world-news-politics/iran-fights-fire-in-southwest-after-oil-pipeline-spill-927039.html 4/32 The oil ministry’s news agency SHANA said repair teams had shut ow the Maroun pipeline, which feeds the Isfahan refinery, Iran’s second-largest with a capacity of about 375,000 barrels per day. Iran’s ageing oil infrastructure has been long in need of rehabilitation, as refurbishment plans have been delayed by Western sanctions and local bureaucracy, analysts say. There have been several earlier instances of spillage from the pipeline that have adversely awected the region’s agriculture and fishing,the state news agency IRNA reported.
“Zombie Angelina Jolie” Sentenced To 10 Years In Prison For “Promoting Public Corruption” – A young woman from Iran was sentenced to 10 years in prison for posting photos on social media where she looked like a “Zombie Angelina Jolie.” The 19-year-old Instagram star calls herself Sahar Tabar, but her real name is Fatemeh Khishvand. While her pictures online make her appear very strange and unhealthy, her online persona is merely an illusion. She uses a combination of make-up and photoshop techniques to make herself appear the way that she does in her photos. Still, under Iran’s strict social laws, her activities are considered “promoting public corruption.” She says that her page was intended to be a social commentary, but the government thought that she was a danger to society. Last year, she was arrested along with three other female Instagram influencers accused of similar offenses. In court this week, Tabar was sentenced to ten years in prison, which is much longer than the terms that were initially expected.
Investigative Reporting Details Massacres, Reign of Terror by US-Backed Death Squads in Afghanistan – An extraordinary investigation by Australian journalist Andrew Quilty published Friday by The Intercept reveals U.S.-backed Afghan government paramilitary death squads have been waging a campaign of terror targeting civilians-including children-in Wardak province as part of the American military occupation of the nation that began nearly two decades ago.In one December 2018 attack in Omar Khail, Wardak province, men in camouflage-some of them speaking English-took part in a nighttime madrassa raid. Afghan soldiers roused the sleeping boys, ages 9 to 18, before choosing the oldest-looking ones and taking them away. Twelve-year-old student “Bilal”-The Intercept changed his name for his protection-heard gunshots, explosions, and screams. The following morning, when he looked in the school’s other rooms and in the basement, he found the bullet-ridden bodies of 12 of his classmates. The perpetrators of the killings are believed to belong to an elite, CIA-trained paramilitary force known as Unit 01 which-in concert with U.S. Special Forces and U.S.-led airstrikes-“unleashed a campaign of terror against civilians,” according to Quilty. Unit 01 is nominally under the control of Afghanistan’s intelligence service, the National Directorate of Security (NDS). The Omar Khail massacre was but one of at least 10 previously undocumented night raids in Wardak province that, starting December 2018 and continuing for at least a year, killed at least 51 civilians, mostly men and boys-some as young as eight years old. According to The Intercept, few of the victims were members of, or connected to, the Taliban.Residents of four Wardak districts-Nerkh, Chak, Sayedabad, and Daymirdad-described similar massacres, as well as summary executions, mutilations, kidnappings and forced disappearances, attacks on religious and medical facilities, and airstrikes on civilians. Children were often the unfortunate-but sometimes deliberate-victims of these attacks. “The prevalence of boys among those killed in Wardak indicates that Unit 01 was trying to eliminate not only existing enemies, but potential future foes as well,” writes Quilty.Such barbarism has incensed local leaders. The Americans, said Wardak provincial council head Akhtar Mohammad Tahiri, “step on all the rules of war, human rights, all the things they said they’d bring to Afghanistan” and are “conducting themselves as terrorists.””They show terror and violence and think they’ll bring control this way,” he added. Quilty reports that not only do CIA advisers train Afhgan death squad members, they also choose their targets, which they refer to as “jackpots.” American aircraft transport the Afghans to and from attacks, and U.S. warplanes are on standby to launch airstrikes, sometimes targeting homes, health clinics, and religious buildings.
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