Oil Slick Stuff

[nnuut]

Oil little changed as crude supply grows

Weekly data show a surprising increase in oil stocks.

By Julianne Pepitone, CNNMoney.com contributing writer
Last Updated: January 28, 2009: 10:45 AM ET

NEW YORK (CNNMoney.com) -- Oil prices were little changed Wednesday after a government report showed an increase in crude supplies that exceeded analysts' expectations.
The March light crude contract was down prices fell 15 cents to $41.43 a barrel on the New York Mercantile Exchange. Oil was down 18 cents just prior to the report's release.
In its weekly inventory report, the Energy Information Administration said crude stocks increased by 6.2 million barrels in the week ended Jan. 26. Analysts were looking for an increase of 3.4 million barrels of crude oil, according to a consensus estimate of industry analysts surveyed by Platts, a global energy information provider.
Stockpiles of gasoline decreased by 100,000 barrels, while analysts were looking for an increase of 1.8 million barrels.
Distillates, used to make heating oil and diesel fuel, fell by 1 million barrels. Analysts were looking for a decrease of 1.8 million barrels.
Oil's supply-demand picture remains weak, with a large stock build in the United States and extremely weak demand in China, the world's second-largest energy consumer. [more] http://money.cnn.com/2009/01/28/markets/oil_eia/index.htm?postversion=2009012810

 

[nnuut]

Shell hit by collapsing oil prices

Oil giant posts 28% decline in profit, but proposes to hike first-quarter dividend.

Last Updated: January 29, 2009: 5:28 AM ET

Geothermal goes full steam ahead



LONDON (Reuters) -- Royal Dutch Shell reported a big drop in fourth-quarter net profits and missed analysts' forecasts, but the oil major eased investor fears about cashflows by raising its dividend while lifting planned investments.
The world's second-largest non-government controlled oil company by market capitalization said fourth-quarter Current Cost of Supply (CCS) net profit fell 28% to $4.79 billion.
However, the ramp up to record crude oil prices above $147 a barrel in July lifted full-year profits to $31.4 billion, a record for a European company and up from $27.6 billion in 2007.
CCS profits strip out unrealized gains or losses related to changes in the value of fuel inventories and is comparable to U.S. firms' net profit figure.
Many investors buy or hold Shell for its fat dividends and some feared lower oil prices would put pressure on payouts. The company eased these fears by proposing a 5% rise in its first quarter dividend for 2009 to $0.42 per share.
Shell's London-listed "A" shares traded down 0.39% to 1,769 pence compared to a 0.59% fall in the DJ Stoxx European oil and gas sector index.
"I think the most important thing was that they increased (the expected first quarter 2009 dividend) by 5%, which is a sign that management has confidence in the business going forward at the current oil price," Peter Heijen, oil analyst at Theodoor Gilissen said. [more]
http://money.cnn.com/2009/01/29/new...arnings.reut/index.htm?postversion=2009012905

 

[nnuut]

Oil dips below $41 as inventories swell

Oil dips below $41 as investors weigh rising inventories against US stimulus package

• Jake Neubacher, Associated Press Writer
• Thursday January 29, 2009, 9:38 am EST

VIENNA, Austria (AP) -- Record U.S. unemployment figures, rising crude inventories and a dismal global economic outlook dragged benchmark oil prices below $41 a barrel Thursday.

A market slump accelerated as the Labor Department reported that the number of Americans continuing to claim unemployment insurance for the week ending Jan. 17 was a seasonally adjusted 4.78 million, the highest on records dating back to 1967.
A department analyst said that as a proportion of the work force, the tally of unemployment recipients is the highest since August 1983.
Companies have announced more than 125,000 layoffs in January, according to an Associated Press tally. [more]
http://finance.yahoo.com/news/Oil-dips-below-41-as-apf-14194156.html

 

[nnuut]

DRILL DRILL DRILL!!:nuts:

It's cheaper to drill - but no rush for rigs

Falling commodity prices from oil to metals are allowing firms to realize savings rather than persue new development.

January 30, 2009: 6:08 AM ET

LONDON (Reuters) -- The bubble has burst on the price of raw materials such as steel, making it cheaper to drill for oil, but there will be no rush for rigs now that recession is eroding demand for fuel worldwide.
The record rally in commodities from oil to metals had doubled the cost of building a refinery in Saudi Arabia, tripled the budget for a super-clean fuel plant in Qatar and drove up the price of pumping oil and gas.
Soaring costs made companies think twice about investments despite oil's run to nearly $150 a barrel in July.
Now, partly compensating multinationals and producer countries hurt by the collapse in prices to $40, cost inflation has eased on the projects they need to safeguard future output.
"Cheaper material costs will at least partly offset the drop in oil prices, supporting project economics despite the downturn," said Antoine Halff of Newedge brokerage.
National and international oil companies alike hope to make big savings on steel, which can account for more than a quarter of the budget in a project to tap oil in deep waters.
Labor and hardware costs have also dropped, and governments that felt able to demand higher taxes from oil companies during the boom years are now having to sweeten terms as they again compete for capital.
Even so, oil development costs are not going to fall overnight.
Jeroen van der Veer, chief executive of Royal Dutch Shell Plc, said falling steel prices and lower rates for hiring rigs would take 12-18 months to feed through.
"Steel prices have come off considerably and should be reflected in project costs going forward as the inventory gets used," said Candida Scott of Cambridge Energy Research Associates (CERA), a unit of IHS.
The price of European hot rolled coil, steel used for oilfield pipes, is trading in a range of $500 to $630 a ton - down 42% to 54% from a high of around $1,095 in July, according to the Metal Bulletin price assessment.
No drilling spree
Despite reduced costs, some producers are unwilling to stump up more cash to tap new supply at a time when falling demand has prompted the Organization of the Petroleum Exporting Countries to shut in more than 3 million barrels per day of output.
This applies to conventional oil in areas such as the Middle East, let alone to highly costly projects such as the extraction of oil from tar sands in Canada that are only possible when oil prices are much higher than at present.
"Lower raw material costs and cheaper labour are having a minimal effect on supply," said Sadad al-Husseini, a former top official at state oil giant Saudi Aramco.
"Companies are unwilling to commit to major projects until the demand outlook becomes clearer. There is no major project execution campaign."
The lower cost of raw materials has encouraged companies and producing countries to drive a harder bargain with contractors.
"Right now, pushing for cost reduction is something that is sensible to do and would allow for the projects to actually go ahead," said Scott, the director of cost analysis at CERA.
The UAE, a core Gulf OPEC producer, has saved about 20% on the cost of projects to develop oilfields worth $3.5 billion. Saudi Aramco is also seeking a discount on mega-projects to expand capacity.
"The opportunity for additional savings varies from about 10% or less in existing committed projects, especially in areas where contractor competition is limited," said a senior Western oil executive who requested anonymity.
"Savings can be up to 30% or more in highly commoditised services or distressed industries such as steel."
There is scope for other expenses to come down, too.
Wages will come under pressure as unemployment rises. Governments may also be forced to ease the tax burden on the industry as it feels the pinch from the end of oil's bull run, when taxes increased.
"One major cost component that will come under severe downward pressure is the fiscal burden," said Halff of Newedge.
"Taxes and royalties will likely come down hard just as they had risen on the way up, and this will make a whole world of difference."
http://money.cnn.com/2009/01/30/news/international/oil_costs.reut/index.htm?postversion=2009013006

 

[nnuut]

MONEYMONEYMONEYMONEY!!!!!!!:worried:

Exxon posts annual profit record

Oil company beats estimates despite income decline in latest period due to falling prices.

By Steve Hargreaves, CNNMoney.com staff writer

Last Updated: January 30, 2009: 10:20 AM ET

NEW YORK (CNNMoney.com) -- Exxon Mobil reported the largest annual profit in U.S. history Friday, making $45.22 billion on the back of record oil prices.
But Exxon's quarterly profit fell over 33%, as crude prices dropped precipitously in the last quarter as recession spread through the globe.
Exxon (XOM, Fortune 500), the world's largest publicly traded oil company, made $7.82 billion in the fourth quarter on revenue of $84.7 billion. On a per share basis, the company made $1.55, beating analysts' estimates of $1.45 a share. [more]
http://money.cnn.com/2009/01/30/news/companies/exxon_earnings/index.htm?cnn=yes

 

[nnuut]

This is stupid!!

01/30/2009 - Updated 10:17 AM ET

Oil rises after better-than-expected U.S. GDP data

By Moming Zhou, MarketWatch & Polya Lesova, MarketWatch

NEW YORK (MarketWatch) -- Oil futures rose Friday after data showed that the U.S. economy, the world's largest oil consumer, contracted less than the market had expected in the fourth quarter.
The U.S. economy contracted at a 3.8% annualized rate, the worst in 28 years, the Commerce Department reported. But the drop was still above economists' expectations of a 5.5% decline.
"Given how bleak sentiment is, we think an in-line [GDP] number could actually be somewhat constructive for most markets," wrote Edward Meir, an analyst at MF Global, in a note. [more]
http://markets.usatoday.com/custom/...S&guid={786BB757-8FF8-47A9-8BA3-5C341D9CEF9E}

 

[nnuut]

Calls for oil at $60-$80 a barrel


By Tim Weber
Business editor, BBC News website, in Davos

Abdalla El Badri said $50 a barrel would be too cheap

The price of oil has to rise to between $60 and $80 a barrel to safeguard investments, according to the bosses of oil cartel Opec and top energy firms.
The downturn had resulted in "dangerous demand destruction", said Opec Secretary-General Abdalla El Badri.
He said Opec would cut production further, if prices did not recover.
BP boss Tony Hayward said a $60 to $80 price range would meet both Opec's needs and cover the cost of investing in difficult oil exploration projects.
The energy industry would have to invest $25 trillion over the next 20 years, he said during a session at the World Economic Forum in Davos. "The price of oil has to be high enough to motivate investment going forward."

El Badri says even an oil price of $50 a barrel is too low.

"When the economy picks up, demand will pick up very fast and we will quickly run into supply problems," said the BP group chief executive. "We do need a price that allows us to continue to invest in the downturn." Speculators? [more]
http://newsvote.bbc.co.uk/2/hi/business/davos/7857791.stm

 

[nnuut]

French company, Ya might have known it! They better be careful, cause Hugo will let them develope then take it over!!

Total in Fresh Talks with Venezuela on Expanding Ops

by Spencer Swartz Dow Jones Newswires Friday, January 30, 2009

DAVOS, Switzerland (THE WALL STREET JOURNAL via Dow Jones Newswires), Jan. 30, 2009
Total SA Chairman Thierry Desmarest said Friday the French oil giant is in fresh talks with the Venezuela government about expanding its operations in the South American nation.
"We are just at the beginning" of discussions, the chairman of the French oil giant said in an interview on the sidelines of the World Economic Forum here. "If Venezuela wants to offer opportunities on reasonable terms, of course we will look to those possibilities," he said, declining to provide further details.
Related Pictures
Venezuelan President Hugo Chavez
(Click to Enlarge)
Like several other Western oil companies, Total was burned two years ago in Venezuela after President Hugo Chavez nationalized much of the country's petroleum sector. In February last year, Venezuela said it would give Total $834 million in compensation for agreeing to take a minority stake in a new state-controlled company, PetroCedeño.
That company took control of the operations of Sincor, in which Total had held a 47% interest.
Sincor was one of four foreign-operated heavy oil ventures the Venezuelan government nationalized in 2007. The government's move largely backfired as foreign investment has since dried up and the country struggled to halt declining production.
Mr. Desmarest, who has been Total chairman since 1995, said he believes the current low oil price environment could help expand cooperation between international oil companies and state-run firms, which have been at loggerheads in recent years over contract terms.
"I think that the new context (of lower oil prices), efficiency in managing huge projects is a critical issue and a good combination between national oil companies and international oil companies can lead to real efficiencies," he said.
Mr. Desmarest also said Total, which reports earnings next week, should maintain capital expenditure this year at levels on par with 2008, when the company pumped roughly $20 billion into its drilling and refining operations. "Our intention is to continue to have very substantial capital expenditure," he said.
"Ten years ago we had the same problem of oil prices going down and many companies cut investment. We (Total) didn't. We felt (the sharp drop in oil prices) was just transitory and it was a good decision Total made. We developed capacity in the low price environment and (oil) prices eventually recovered," he said.
Total is experiencing delays with some of its operations in Canada, where it's in the process of boosting participation in heavy oil projects.
The company is also behind schedule with a 400,000 barrels-per-day joint-refining project with Saudi Aramco, the state-run national oil company. He said Total and its partners are trying to capitalize on falling raw material costs for steel and other basic inputs.
"These delays may be a matter of months for some projects and maybe a bit more for others we hope to obtain lower costs in the next few months or from construction companies," he said.
Mr. Desmarest said he doesn't believe a mega-major between big U.S. and European oil companies is in the cards for a number of reasons, including the regulatory obstacles. He said Total would be focused on small to medium-sized companies as part of its acquisition strategy.


http://www.rigzone.com/news/article.asp?hpf=1&a_id=72347

 

[Buster]

French company, Ya might have known it! They better be careful, cause Hugo will let them develope then take it over!!

No sweat..As soon as the French choke on the rebel fighting in the Venezuelan jungles, we'll be along to bail them out so they can go home and leave it up to US to clean up the mess..AGAIN!

Sound familiar?..

 

[Buster]

Oh..And the gas around here has jumped almost .15 this past week..

NO GD EXCUSE FOR IT!!!!!

 

[nnuut]

NYMEX NYH RBOB Gasoline: [ CLICK] NYH RBOB Gasoline
SHORT TERM TREND,

..........................Gallon....Weekly Status
Settle.12/12/08..$1.0777 ....+.1765
Settle.12/19/08..$0.9693......-.1084
Settle.12/26/08..$0.8440......-.1253
Settle.01/02/09..$1.1105 ....+.1665
Settle.01/09/09..$1.1112 ....+.0007
Settle.01/16/09..$1.1672 ....+.0560
Settle.01/26/09..$1.1544......-.0128
Settle.01/30/09..$1.2689 ....+.1145

Oil down!!

 

[nnuut]

02/02/2009 - Updated 8:25 AM ET

Oil futures fall as demand concerns weigh

By Polya Lesova,
MarketWatch

NEW YORK (MarketWatch) -- Oil futures fell below $41 a barrel early Monday, pressured by ongoing worries over slowing energy demand.
Crude oil for March delivery dropped 87 cents, or 2%, to $40.78 a barrel in electronic trading on Globex.
Earlier, the contract hit an intraday low of $40.01.
Edward Meir, an analyst at MF Global, doesn't expect sharp oil-price moves outside the recent trading ranges "anytime soon."
"On the one hand, the bearish macro backdrop should cap any sharp rallies above $50, while the OPEC cutbacks seem to have stopped -- at least for now -- the worst of the recent downward spiral," Meir said in a research note. "Of the two variables, the macro element is by far the more important."
There has been increasing evidence in recent days that the Organization of the Petroleum Exporting Countries is delivering on its pledge to cut oil output by 4.2 million barrels a day from its September levels.
Oil prices ended last week down 10% and finished January down 14%.
In other energy news, the United Steelworkers union agreed to extend talks on a new contract for thousands of workers at U.S. refineries, avoiding a strike for the moment, AFP reported Sunday.
The labor contract for about 26,000 oil workers expired Sunday morning, and the union had threatened a major strike action, according to the report. However, a union spokeswoman said that negotiations are continuing and "there is a rolling 24-hour contract extension" and therefore no strike for now, the report said.
If there is a strike, it will affect more than half of the U.S. refining capacity.
Also on Globex Monday, March reformulated gasoline fell 3 cents, or 2.5%, to $1.24 a gallon, and March heating oil dropped 3 cents to $1.40 a gallon.
March natural gas futures declined 11 cents to $4.31 per million British thermal units. http://markets.usatoday.com/custom/...S&guid={84743A63-303F-4AC7-BD53-446ED53278DD}

 

[nnuut]

Oil retreats below $41

The price of crude oil is falling on Monday as weak economic news revives investor fears about weakening demand for energy.

By Catherine Clifford, CNNMoney.com staff writer
February 2, 2009: 10:14 AM ET

NEW YORK (CNNMoney.com) -- Oil prices fell Monday as investors remained concerned about a deepening recession and its impact on global demand for energy.
Light sweet crude for March delivery was down $1.10 at $40.58 at 9:45 am E.T., having reached as low as $39.83 a barrel. [more]
http://money.cnn.com/2009/02/02/markets/oil/index.htm?postversion=2009020210

 

[Silverbird]

The more they raise the price, the better alternatives look. :toung:

 

[nnuut]

I wish we had a viable alternative right now!

 

[nnuut]

Oil falls with no refinery strike

Oil prices fall with strike postponed and more bad economic news

• Dirk Lammers, AP Energy Writer
• Monday February 2, 2009, 12:04 pm EST

SIOUX FALLS, S.D. (AP) -- Oil prices fell Monday with a strike by U.S. refinery workers averted for now and more bad economic news emerging.

Light, sweet crude for March delivery fell 89 cents to $40.79 a barrel on the New York Mercantile Exchange. On Friday, the contract rose 24 cents to settle at $41.68.
Labor negotiations continued Monday after some 24,000 refinery workers agreed to postpone a strike after their contract expired Saturday. The United Steelworkers agreed to a rolling 24-hour extension of talks.
A strike would affect 60 refineries. The biggest U.S. refiner, Valero Energy Corp., said it would shut down some facilities if workers walk out, as did European oil company BP PLC.
Phil Flynn, an analyst at Alaron Trading Corp., said the extension is leading the market to believe that there'll be a deal.
Gasoline futures tumbled more than 6 percent in midday trading, though retail gasoline continued its upward march.
"Obviously these talks can turn the other way.[more]
http://finance.yahoo.com/news/Oil-falls-with-no-refinery-apf-14224331.html

 

[nnuut]

BP profit falls short of estimates

Sharp drop in crude prices hits oil giant's fourth-quarter results.

February 3, 2009: 4:41 AM ET

LONDON (Reuters) -- BP Plc said replacement cost net profit fell 24% in the fourth quarter to $2.587 billion, undershooting forecasts amid a collapse in oil prices and as its Russian unit reported a big loss.
BP's full year replacement cost profit, which strips out unrealized gains or losses related to changes in the value of inventories, was $25.6 billion, up 39% compared to 2007.
Oil prices plunged in the fourth quarter but the ramp-up to a peak above $147 a barrel in July ensured record annual results for Europe's second-largest listed oil company by market value.
The results include a loss of $700 million from the company's Russian venture TNK-BP, related to the effect of lagged tax charges, lower oil prices and asset impairment charges.
Oil and gas production rose 1% in the quarter compared to the same period in 2007, to 3.945 million barrels of oil equivalent per day (boepd). Full year output was 3.84 million boepd, compared to 3.82 million in 2007.
BP chief executive Tony Hayward said in a statement that he expected output to grow in 2009 and for BP to have replaced all the oil it pumped in 2008 with new finds, though exact reserve replacement figures were not published.
BP expects to hold investments in drilling and project development steady in 2009, Hayward said, following the trend among the very largest oil companies, which contrasts with big spending cuts across the rest of the sector.
Excluding non-operating items that amounted to a net charge of $18 million, net profit was $2.605 billion compared to an average forecast of $2.98 billion in a Reuters poll of 6 analysts. http://money.cnn.com/2009/02/03/news/international/bp_earnings.reut/index.htm?postversion=2009020304

 

[nnuut]

Oil drops below $40 after more grim economic news

Oil drops below $40 after falling overnight on news pointing to a deepening US recession

• Jake Neubacher, Associated Press Writer
• Tuesday February 3, 2009, 9:42 am EST

VIENNA (AP) -- Oil prices slipped Tuesday, with benchmark crude trading just below $40 a barrel after grim U.S. economic news weighed on the market overnight.

The downward trend matched expectations of new downward pressure as traders look to indicators, such as the stock market's performance, for signs of the depth of the global recession.

Light, sweet crude for March delivery fell 13 cents to $39.95 a barrel by midafternoon in Europe in electronic trading on the New York Mercantile Exchange. It had settled at $40.08 overnight on a reported drop in personal consumption and total construction spending in the U.S.
Uncertainty about the details of America's $819 billion stimulus proposal, still up for debate in the U.S. Senate, also sidelined investors.
Oil prices have fallen about 72 percent since peaking at $147.27 a barrel in mid July as a financial crisis in the U.S. sub-prime mortgage sector mushroomed into the worst world economic slowdown in decades.
"I think the world is underestimating the power of this recession," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital in Singapore. "It's still unfolding. It could be really, really ugly."
Moltke-Leth said he expects oil to fall to as low as $28 a barrel by the end of March.
In the latest such news, the Commerce Department reported Monday that personal consumption spending fell 1 percent in December, a sixth consecutive drop. Total construction spending dropped 1.4 percent in December, worse than the 1.2 percent decline economists expected.
Retailer Macy's Inc. was the latest company to announce mass layoffs, saying Monday it would slash 7,000 jobs, or 4 percent of its work force, less than a month after announcing it would close 11 stores.
Recent comments from OPEC leaders that the group may cut production soon may have helped stem a steeper price slide. The Organization of Petroleum Exporting Countries has pledged to reduce output by 4.2 million barrels since September, and Moltke-Leth spoke of "a lot of chatter from OPEC about having to cut further."
"I don't see it happening," he said. "They need the cash, so it's hard for OPEC to credibly talk the market higher."
Crude inventories in the U.S. have soared as drivers cut back on spending. A report Tuesday by the American Petroleum Institute, the industry's trade association, is expected to show that oil stocks rose 2.9 million barrels last week, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. [more]
http://finance.yahoo.com/news/Oil-drops-below-40-after-more-apf-14234884.html

 

[nnuut]

A floor under oil prices?

Crude oil rises above $40 a barrell on Tuesday as investors see a possible floor to crude oil prices.

February 3, 2009: 7:50 AM ET

LONDON (Reuters) -- Oil climbed back above $40 a barrel on Tuesday as some investors grew convinced that aggressive supply cuts by OPEC may finally be building a floor under crude prices.
Despite softening world energy demand, oil has held above the $40 mark in recent weeks, buoyed in part by OPEC's agreement to remove more than 4 million barrels per day of output since September to rebalance world markets.
A Reuters survey showed the group, which pumps one-third of the world's oil, had carried out about 67% of its pledged, record curbs in January. [more]
http://money.cnn.com/2009/02/03/markets/oil.reut/index.htm?postversion=2009020307

 

[Frixxxx]

....buoyed in part by OPEC's agreement to remove more than 4 million barrels per day of output since September to rebalance world markets.

Exaclty how many barrels of reduction can the oil market take. I mean come on....They're almost not even pumping it now:suspicious:

And now that oil is being oppressed & suppressed, why is the dollar not getting SUPER strong?

Inquiring minds want to know!