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Shell shutters Nigeria field after attack

Brazen offshore assault shuts in 200,000 barrels a day of high quality crude; one American captured.

June 19, 2008: 6:56 AM EDT

Iran opposes Saudi oil policy


Nigeria (AP) -- Royal Dutch Shell said it shut down production from an offshore oil field that produces about 200,000 barrels per day after the most powerful militant group in Nigeria launched an attack on an installation there Thursday.


The group also said it captured an American worker on a supply vessel in the area of the rig.
Oil prices remained slightly lower in early electronic trading in the U.S.
A leader of the Movement for the Emancipation of the Niger Delta told The Associated Press that militants attacked the Bonga oil field more than 65 miles from land. But the fighters weren't able to enter a computer control room, which they had hoped to destroy.
The militant leader spoke on condition of anonymity to avoid punishment by authorities.
Olav Ljosne, a spokesman for Royal Dutch Shell (RDSA), confirmed an attack, but gave no details. He said production had been stopped from the field, which normally produces about 200,000 barrels of crude per day.
That accounts for about 10% of Nigeria's current daily output of about 2 million barrels per day production -- already significantly off the amount produced before years of militant attacks on crucial oil infrastructure.[more]
http://money.cnn.com/2008/06/19/news/international/shell.ap/index.htm?postversion=2008061906
 
06/19/2008 - Updated 6:32 AM ET
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Europe pulls back from March lows, EADS lower as doubts surface over U.S. tanker contract; UBS downgraded
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By Sarah Turner, MarketWatch

LONDON (MarketWatch) -- European shares pulled back Thursday from lows last seen in March, turning modestly higher as investors attempted to compensate for higher inflation by buying up commodity-sector shares.
"We suspect that it is still too early to call the top in the commodity bull run," said Citigroup portfolio strategists, noting that commodity-sector stocks are obvious hedges for investors worried about inflation.
In particular, strong gains from oil companies helped European shares advance.
The pan-European Dow Jones Stoxx 600 index added 0.2% at 302.29, after hitting a low of 299.76 early in the session, a level not seen since March 25.
Among energy companies' shares on the rise, BP [BP] added 1.7% and BG Group moved up 2.4% in London, with Total [TOT] gaining 2.7% in Paris.
Total was upgraded to buy from neutral by Goldman Sachs, which also lifted its estimates for Brent crude-oil prices to 2012.
"We have increased our oil-price forecasts to reflect a continued tightening" of supply-demand fundamentals globally for crude, the broker said.
Light sweet crude prices trended modestly lower in electronic trading, changing hands at $136.59 a barrel, off 58 cents.
At the same time, Goldman downgraded Italy's ENI to neutral from buy, saying that there are better growth opportunities to be had in Total over the next two years. ENI's shares rose 1.1%.
Karen Olney, European equity strategist at Merrill Lynch, also remains bullish on the sector. "Fundamentals absolutely support oils over banks. The sector has the strongest earnings momentum in Europe and is also among the cheapest," she wrote in a recent note.
As they are also usually considered an inflation hedge for equity investors, utilities were doing well. Shares of E.On rose 1.2%, while EdF climbed 2.3%.
Autos, banks down [more]
http://markets.usatoday.com/custom/...L&guid={F6E41448-9C5F-469B-A234-EAC23DC3631C}
 
Will More Drilling Mean Cheaper Gas?

Wednesday, Jun. 18, 2008 By BRYAN WALSH
offshore_oil_0618.jpg

In this March 28, 2006 file photo, the Discoverer Deep Seas drillship sits on station off the coast of Louisiana as Chevron drills for oil in the Gulf of Mexico.
Alex Brandon, File / AP

On Wednesday morning President George W. Bush urged Congress to overturn a 26-year ban on offshore oil drilling in the U.S., and open a part of the Arctic National Wildlife Refuge (ANWR) for petroleum exploration. Flanked by the secretaries of Energy and the Interior, Bush also proposed streamlining the construction process for new oil refineries, and explained that these moves would "take pressure off gas prices over time by expanding the amount of American-made oil and gasoline." Coming a day after Republican presumptive presidential nominee John McCain made a similar appeal to enhance domestic oil exploration, Bush was sending an unsubtle election year message to the American public: I care about the economic toll of $4 a gallon gas, and Democrats in Congress, who have opposed such an expansion, don't.

://www.time.com/time/business/article/0,8599,1815884,00.html?cnn=yes
 
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nnuut said:
But there's a flaw in that logic: even if tomorrow we opened up every square mile of the outer Continental Shelf to offshore rigs, even if we drilled the entire state of Alaska and pulled new refineries out of thin air, the impact on gas prices would be minimal and delayed at best. ... and the world market would soak up any additional American production. "This is a drop in the bucket," says Gernot Wagner, an economist with the Environmental Defense Fund.
Click to expand...

The announcement wasn't about getting relief from gas pump prices. It was about the big business that has been doing a rape and plunder for the last 8 years getting its last licks in before a bit of sanity returns to the political process after November.

Of course my problem might actually be that I am a bit grumpy today because the meds aren't working well.:rolleyes:;)

I do think that one of life's greatest ironies is that Green Party candidate Ralph Nadar threw the 2000 election to the Supreme Court and thus from Gore to Bush.

Okay I'll go to my room and grump in private now!:p

Lady
 
I agree with Luv2read, this needs to be regulated, NO PROBLEM!!:D


AP
Oil drops as China says it will raise fuel prices
Thursday June 19, 11:19 am ET
By John Wilen, AP Business Writer Oil prices drop after China says it will raise fuel prices, which could dampen demand
NEW YORK (AP) -- Oil prices dropped Thursday after China said it will raise fuel prices, a move that could dampen the booming Asian nation's oil consumption. Retail gas prices slid overnight.
Light, sweet crude for July delivery fell $2.10 to $134.58 a barrel on the New York Mercantile Exchange, but dipped more than $3 at times.
China disclosed that it will raise the prices of gasoline, diesel, aviation kerosene and electricity. It was not immediately clear if those price hikes would be implemented by lowering fuel subsidies.
Growing Chinese demand for oil has underpinned the multiyear rally in oil prices. But higher prices could crimp that demand. Concerns about spiking Chinese demand for diesel due to cleanup operations in the aftermath of last month's earthquake contributed to oil's run-up in recent weeks. "This could change the psychology of the market completely," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com. [More]
http://biz.yahoo.com/ap/080619/oil_prices.html
 
Does China reduce consumption? No, they raise prices of oil products so that they can continue to buy it at whatever the cost. Note that other countries subsidize fuels to help consumers; the US taxes them.

China and Venezuela are in partnership together building one of the largest, most modern refinery complexes in the world. Venezuela will provide the oil and China will refine it; both will use and market it globally. China isn't worried about high prices now, they have a plan for the future.

US exports about 1/2 as much crude as it imports. So why not stop exporting, and reduce our imports by half? Because that would cut into big oil's profits, that's why. It's not all about supply and demand anymore, it's about manipulating the oil market to make the biggest buck. They've figured out how to do it. Why is everyone surprised that it's happening NOW, in the last year of this administration? Same thing with the financials, credit mess, and bailouts. Had to come out while these guys are still in power and can bail them out. Make hay while the sun shines.

Weekly U.S. crude oil exports from 1991 through 2008:

http://tonto.eia.doe.gov/dnav/pet/hist/wcrexus2w.htm

http://tonto.eia.doe.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm
http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html

BTW, I live in a small town. Shell just built two brand-spankin-new gas stations here. Something was posted here awhile back about Exxon getting out of the gas station business, and a comment made about big oil pulling out of gas stations altogether because of big bad Congress shaking a stick at them - consequently they should be left alone to rape and gouge as they please. Don't believe it...Chevron-Texaco, Shell or BP will just take those over. Big oil isn't going anywhere, they aren't worried about regulation. One of the biggest mistakes the government ever made was allowing the majors to merge and form a monopoly that is now manipulating the world oil market. It's not OPEC folks, watch how oil stocks move with the price of oil, and vice versa.
 
Asylum said:
Oil companies... if you cant beat 'em, own 'em!

This one's stock price is slightly down today and should be a good buy between now and the end of the week:

CHESAPEAKE ENERGY CORP

http://finance.aol.com/quotes/chesapeake-energy-corporation/chk/nys
Click to expand...

Bought at $58.01 on 12 Jun and sold this morn at $67.83..
Profit: +14.5%

http://finance.aol.com/quotes/chesapeake-energy-corporation/chk/nys

Waiting to buy back in at a good entry point... anyone else?? It's dropped down to low $64's/share and maybe be bottoming out..
 
Are we exporting because it's high sulphur oil (Alaska) and we don't want to deal with refining it (leave refining to the EAsians-Japan, China etc) or because we are getting a better price overseas, or both?
 
luv2read said:
Does China reduce consumption? No, they raise prices of oil products so that they can continue to buy it at whatever the cost. Note that other countries subsidize fuels to help consumers; the US taxes them.

China and Venezuela are in partnership together building one of the largest, most modern refinery complexes in the world. Venezuela will provide the oil and China will refine it; both will use and market it globally. China isn't worried about high prices now, they have a plan for the future.

US exports about 1/2 as much crude as it imports. So why not stop exporting, and reduce our imports by half? Because that would cut into big oil's profits, that's why. It's not all about supply and demand anymore, it's about manipulating the oil market to make the biggest buck. They've figured out how to do it. Why is everyone surprised that it's happening NOW, in the last year of this administration? Same thing with the financials, credit mess, and bailouts. Had to come out while these guys are still in power and can bail them out. Make hay while the sun shines.

Weekly U.S. crude oil exports from 1991 through 2008:

http://tonto.eia.doe.gov/dnav/pet/hist/wcrexus2w.htm

http://tonto.eia.doe.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm
http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html
Click to expand...

L2R, I agree with your analysis and opinions above 100% - ummm - 150%! :laugh:

Lady
 
luv2read said:
US exports about 1/2 as much crude as it imports. So why not stop exporting, and reduce our imports by half? Because that would cut into big oil's profits, that's why. It's not all about supply and demand anymore, it's about manipulating the oil market to make the biggest buck. They've figured out how to do it.
Click to expand...

Amen sister..them friggin Crooks bastards!!!!:mad::mad:
 
Asylum said:
It's called Capitalism... and it is much better than the alternative so don't hate, PROFIT!!!!

:)
Click to expand...

"It has been said that democracy is the worst form of government except all the others that have been tried." - Winston Churchill (I think ...)

Lady
 
Silverbird said:
Are we exporting because it's high sulphur oil (Alaska) and we don't want to deal with refining it (leave refining to the EAsians-Japan, China etc) or because we are getting a better price overseas, or both?
Click to expand...
Better price overseas on London market and elsewhere. Same with gasoline, diesel. Demand has dropped here because of the price, so they're simply selling it elsewhere. That's why the US inventory dropped - not because more is being used here. If you watch the weekly data, you will see stocks of gasoline drop when a rise is expected by people "in the business", and the reverse happening with diesel. That's because there is a huge demand for diesel overseas where it sells for $7 a gallon, and only $5 here. So - demand for gas down in US, they refine more diesel instead to sell overseas, thus reducing the gasoline supply until the demand catches up. The thing is that they thought it would happen with "summer driving" and got caught by surprise - people can't afford to travel at these prices. The drop in gasoline prices correlates to the drop in futures contracts a few months ago; the $135-$139 bbl oil hasn't hit the pumps yet. That will be here next month thru the end of the year. Prepare for sticker shock. This is just a momentary lull.
 
XL-entLady said:
"It has been said that democracy is the worst form of government except all the others that have been tried." - Winston Churchill (I think ...)

Lady
Click to expand...

This country started out as a Republic, the best form of government. It has dengenerated into a Democracy.

Lady, have you read The Glory and The Lightning - Taylor Caldwell?
 
luv2read said:
This country started out as a Republic, the best form of government. It has dengenerated into a Democracy.

Lady, have you read The Glory and The Lightning - Taylor Caldwell?
Click to expand...
YES! Used to be one of my very favorite pieces of fiction. Now it's one of my very favorite pieces of NON-fiction! :sick:

Lady
 
luv2read said:
Better price overseas on London market and elsewhere. Same with gasoline, diesel. Demand has dropped here because of the price, so they're simply selling it elsewhere. That's why the US inventory dropped - not because more is being used here.
Click to expand...
So, that means if we open up new reserves here and want it all to stay here, we have to restrict exports of crude from here (cue Imperial March and Darth Vader)?
 
How about this? I know, now they will pass the increase to the customers, US!!:mad:

Reuters
China shocks with 18 percent fuel price rise; oil falls
Thursday June 19, 12:03 pm ET

BEIJING (Reuters) - China raised retail gasoline and diesel prices on Thursday by up to 18 percent, a move that threatens to stoke domestic angst over decade-high inflation less than two months before Beijing hosts Olympics games. The increase in regulated fuel prices, China's first hike in eight months and its sharpest ever one-off rise, sent oil prices down by as much as $3 a barrel as dealers bet it might help curb soaring demand.[more]
http://biz.yahoo.com/rb/080619/china_oil_prices.html
 
Silverbird said:
So, that means if we open up new reserves here and want it all to stay here, we have to restrict exports of crude from here (cue Imperial March and Darth Vader)?
Click to expand...
Correct. However, there is no law on the books for that - and not likely to be either. Big oil managed to get deregulated years ago and never will be again. Also, oil companies have not yet explored/drilled/produced all the lands currently under lease for oil and gas exploration/development, yet they want to "open up" new areas. That's one of the primary arguments against lifting the moratorium. IMO big oil and financials own the government - ALL of it - and there are huge payoffs behind the scenes to maintain the status quo. Not only do the oil companies export US product, our government is leasing Gulf of Mexico seabottom to foreign governments and companies who extract the oil and gas, pay the royalty (a pittance) and ship it home. The US majors are partners in more than a few of these ventures.
 
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