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Sigmetnow

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Re: Oil and Gas Issues
« Reply #950 on: April 13, 2016, 02:49:35 AM »
Regulators Pin Uncontrolled Oil Sands Leaks on Company's Mining Methods, Geohazards
Quote
Canadian regulators quietly released a major report blaming four uncontrollable leaks in the heart of Alberta's tar sands patch on an energy company's injection of too much steam underground, while seeking to tap ever-deeper reserves.
http://insideclimatenews.org/news/11042016/oil-sands-uncontrolled-leaks-cnrl-canada-mining-methods-geohazards
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #951 on: April 14, 2016, 01:39:47 AM »
Satire from The Onion.  :o  Ouch.

ExxonMobil CEO Relieved It Finally Too Late To Do Anything About Climate Change
‘We Really Dodged A Bullet There,’ Says Executive
Quote
IRVING, TX—Saying the multinational oil and gas conglomerate had “really dodged a bullet,” ExxonMobil CEO Rex Tillerson told reporters Wednesday how relieved he was now that it was finally too late to do anything about climate change.

The 64-year-old petroleum executive, who acknowledged that throughout his career he had feared the public might take action to curb rising temperatures by imposing emissions restrictions or mandating a switch to alternative energy, said he was just happy that the window for avoiding the planet’s environmental destruction had closed, and that the entire industry was now free to carry on as usual.
http://www.theonion.com/article/exxonmobil-ceo-relieved-it-finally-too-late-do-any-52732
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #952 on: April 14, 2016, 04:48:03 PM »
Stock of Major Oil Companies Downgraded by Moody's Due to Oil Price Plunge
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Some of the world’s biggest oil and gas producers had their credit ratings downgraded by Moody’s Investors Service last week. The U.S. rating agency’s action on Chevron Corp. (CVX - Analyst Report), Royal Dutch Shell plc (RDS.A - Analyst Report) and TOTAL S.A. (TOT - Analyst Report) is based on the ‘lower for longer’ crude price expectation and the resultant debt concerns.

Why the Downgrade?
The Moody’s action comes in the wake of oil’s horror show that has seen prices come down from $110 per barrel in mid-2014 to around $40 now, in between falling to a 12-year low of $26.21 in Feb. The commodity’s collapse has threatened the industry’s creditworthiness by hurting cash flows, drying up liquidity and narrowing profit margins.

Moreover, weak realizations limit the companies' internally-generated cash flow amid high capital spending and dividend payments (if any). What’s more, the outlook remains grim too, with fundamentals suggesting that the odds are firmly stacked against a sustained crude rally. As per Moody’s, things are expected to turn around only in 2018.
http://www.zacks.com/stock/news/213241/oil-majors-downgraded-by-moodys-on-price-plunge
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AbruptSLR

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Re: Oil and Gas Issues
« Reply #953 on: April 16, 2016, 12:59:41 AM »
The linked article indicates that while the EPA is working to improve their methane emission accounting methodology; they are still underestimating such emissions:

https://www.sciencenews.org/article/epa-underestimates-methane-emissions

Extract: "The U.S. Environmental Protection Agency has a methane problem — and that could misinform the country’s carbon-cutting plans. Recent studies suggest that the agency’s reports fail to capture the full scope of U.S. methane emissions, including “super emitters” that contribute a disproportionate share of methane release. Those EPA reports influence the country’s actions to combat climate change and the regulation of methane-producing industries such as agriculture and natural gas production.
With EPA’s next annual methane report due to be published by April 15, early signs suggest that the agency is taking steps to fix the methane mismatch. A preliminary draft of the report revises the agency’s methane calculations for 2013 — the most recent year reported — upward by about 27 percent for the natural gas and petroleum sectors, a difference of about 2 million metric tons. 

EPA’s reports don’t just misjudge the scale of emissions, they also miss the long-term trend, recent work suggests. EPA reported that U.S. methane emissions remained largely unchanged from 2002 to 2014. But researchers report online March 2 in Geophysical Research Letters that emissions of the greenhouse gas rose more than 30 percent over that period. The United States could be responsible for as much as 30 to 60 percent of the global increase in methane emissions over the last decade, the study’s authors conclude. “We’re definitely not a small piece of that pie,” says Harvard University atmospheric scientist Alex Turner, who coauthored the study."
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #954 on: April 16, 2016, 01:39:53 AM »
Goodrich Petroleum Files Bankruptcy With Proposed Debt Plan
Quote
Goodrich Petroleum Corp., the latest casualty of the energy slump, sought bankruptcy protection with a plan to eliminate about $400 million of debt.
...
The company is the latest to succumb to the epidemic of defaults sweeping its industry during the biggest price slump in a generation. Energy XXI Ltd., a U.S. oil and gas explorer, filed for bankruptcy Thursday after spending $5 billion on acquisitions.
http://www.bloomberg.com/news/articles/2016-04-15/goodrich-petroleum-files-for-chapter-11-for-restructuring
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #955 on: April 16, 2016, 02:43:18 AM »
Jim Cramer on oil stocks: Forget it, OPEC is broken
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While individual stocks can transcend oil, Cramer anticipates that crude will be in the driver's seat again next week because of the OPEC meeting in Doha. Oil ministers from both OPEC and Russia are expected to gather to discuss freezing oil production.

"This meeting isn't about freezing anything. There are way too many countries involved and OPEC itself is basically broken. It is every country for itself in the oil market," Cramer said.

Cramer recognized that OPEC is still relevant, but in his perspective, everything comes down to supply and demand. Right now supply is being cut back in the U.S. and demand worldwide is picking up.

Cramer expects that no conclusions will be reached at the [OPEC] meeting, and oil will sell off. That is when he wants investors to buy favorite stocks — but not oil stocks — that are taken down by a market-wide sell-off.
http://www.cnbc.com/2016/04/15/cramer-remix-forget-it-opec-is-broken.html
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AbruptSLR

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Re: Oil and Gas Issues
« Reply #956 on: April 16, 2016, 11:24:44 PM »
The linked article indicates the US fracking operations alone contributed about 5.3 Billion pounds of methane emissions in 2014 alone.  Also, I note that the rest of the world is still trying to catch-up to the US in fracking operations:

http://grist.org/article/fracking-wells-released-over-5-billion-pounds-of-methane-in-one-year/?utm_content=bufferd020f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Extract: "The report also put a number on the quantity of methane (a greenhouse gas that’s by some estimates 86 times more potent than carbon over a 20-year timeframe) that new fracking wells released into the atmosphere in 2014:  5.3 billion pounds. That, the researchers note, is equivalent to the emissions from 22 new coal-fired plants."
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #957 on: April 17, 2016, 01:04:29 AM »
Saudi Arabia to Launch Plan for the Future April 25, Prince Says
Quote
The plan to transform Saudi Aramco from an oil company into an energy and industrial conglomerate, as well as the future of the Public Investment Fund, will also be part of the comprehensive vision, he said.
http://www.bloomberg.com/news/articles/2016-04-16/saudi-arabia-to-launch-plan-for-the-future-april-25-prince-says
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #958 on: April 17, 2016, 01:15:44 AM »
Oregon LNG cancels plan for Warrenton terminal
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The company behind a proposed liquefied natural gas export terminal at the mouth of the Columbia River has abandoned the project, marking the death of Oregon's second such project in a matter of weeks.
...

Friday's news comes a month after the Federal Energy Regulatory Commission rejected plans for a massive LNG terminal in Coos Bay, effectively killing the project. Federal regulators said backers of the Jordan Cove Energy Project had failed to demonstrate any need for the facility.

Under Oregon LNG's plan, an 87-mile pipeline would have shuttled Canadian natural gas from Woodland, Wash., to the Warrenton terminal, where it would await export to Asia.
http://www.oregonlive.com/environment/index.ssf/2016/04/company_cancels_plan_for_warre.html
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #959 on: April 17, 2016, 03:55:15 PM »
Doha Oil Talks Start After Delay to Address Saudi Stance on Iran
Quote
Crude oil has rallied since the freeze was first proposed in February. Failure by the group to reach an agreement would lead to a “severe” drop in prices, Citigroup Inc. predicted before the meeting. Brent crude settled at $43.10 a barrel Friday in London, having risen by more than 50 percent from a 12-year low in January.
http://www.bloomberg.com/news/articles/2016-04-17/doha-oil-talks-start-after-delay-to-address-saudi-stance-on-iran
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #960 on: April 17, 2016, 06:52:34 PM »
Keystone Oil Spill Raises More Questions About Pipeline Safety
Last week a South Dakota pipeline was shut down—after it had already leaked thousands of gallons of oil.
Quote
An investigation of 10 years of federal leak data by InsideClimate News in 2012 found leak detection systems used by pipeline companies detected only 5 percent of pipeline spills in the U.S.
https://www.audubon.org/news/keystone-oil-spill-raises-more-questions-about-pipeline-safety
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #961 on: April 18, 2016, 02:06:07 AM »
Big banks add $2 billion for energy loan losses in 1Q
Oil woes at JPMorgan, Citigroup, Bank of America, Wells Fargo
Quote
This is what it looks like on the down side of the biggest oil boom in U.S. history.

JPMorgan Chase & Co., Wells Fargo & Co., Bank of America Corp. and Citigroup Inc., with a combined $190 billion in energy loan exposure, all announced this week that they’re setting aside more money to cover losses. Though energy is a relatively small share of their assets, it’s been a big issue on analyst calls this week.
http://www.bloomberg.com/news/articles/2016-04-15/wall-street-s-oil-crash-a-story-told-in-charts
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #962 on: April 18, 2016, 02:14:26 AM »
Oil Price Tumbles After Output Freeze Talks Fail Over Saudi Demands
Quote
Oil tumbled after output talks Sunday between the world’s biggest producers ended without an agreement, outweighing the supply impact of strikes that cut 60 percent of Kuwait’s output.
...
West Texas Intermediate for May delivery lost as much as $2.75 to $37.61 a barrel on the New York Mercantile Exchange....
http://www.bloomberg.com/news/articles/2016-04-17/oil-tumbles-after-output-freeze-talks-fail-over-saudi-demands
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #963 on: April 18, 2016, 03:35:14 PM »
New Documents Show Oil Industry Even More Evil Than We Thought
Oil companies’ coordinated cover-up of climate risks stretches back decades and rivals that of big tobacco companies.
Quote
In 1968, a pair of scientists from Stanford Research Institute wrote a report for the American Petroleum Institute, a trade association for America’s oil and natural gas industry. They warned that “man is now engaged in a vast geophysical experiment with his environment, the earth” — one that “may be the cause of serious world-wide environmental changes.”

The scientists went on: “If the Earth’s temperature increases significantly, a number of events might be expected to occur including the melting of the Antarctic ice cap, a rise in sea levels, warming of the oceans and an increase in photosynthesis.”

That 48-year-old report, which accurately foreshadowed what’s now happening, is among a trove of public documents uncovered and released Wednesday by the Washington-based Center for International Environmental Law. Taken together, documents that the organization has assembled show that oil executives were well aware of the serious climate risks associated with carbon dioxide emissions decades earlier than previously documented — and they covered it up.
http://www.huffingtonpost.com/entry/oil-cover-up-climate_us_570e98bbe4b0ffa5937df6ce
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crandles

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Re: Oil and Gas Issues
« Reply #964 on: April 18, 2016, 06:23:24 PM »
New Documents Show Oil Industry Even More Evil Than We Thought
Oil companies’ coordinated cover-up of climate risks stretches back decades and rivals that of big tobacco companies.
Quote
In 1968, a pair of scientists from Stanford Research Institute wrote a report for the American Petroleum Institute, a trade association for America’s oil and natural gas industry. They warned that “man is now engaged in a vast geophysical experiment with his environment, the earth” — one that “may be the cause of serious world-wide environmental changes.”

The scientists went on: “If the Earth’s temperature increases significantly, a number of events might be expected to occur including the melting of the Antarctic ice cap, a rise in sea levels, warming of the oceans and an increase in photosynthesis.”

That 48-year-old report, which accurately foreshadowed what’s now happening, is among a trove of public documents uncovered and released Wednesday by the Washington-based Center for International Environmental Law. Taken together, documents that the organization has assembled show that oil executives were well aware of the serious climate risks associated with carbon dioxide emissions decades earlier than previously documented — and they covered it up.
http://www.huffingtonpost.com/entry/oil-cover-up-climate_us_570e98bbe4b0ffa5937df6ce

A different view:

http://scienceblogs.com/stoat/2016/04/14/yet-more-exxon-drivel/

Quote
So, first and foremost note what I’ve been saying about this from the start: the Exxon had no privileged knowledge at all; all the SRI are feeding them here is “the available science”. With that alone the entire claim falls apart.

Doesn't seem to be stopping more of the same being put forward.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #965 on: April 21, 2016, 05:09:40 PM »
Nearly 6 Years After The BP Oil Spill, Government Issues New Rules To Prevent Major Spills
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It’s been nearly six years to the day since the Deepwater Horizon drilling rig in the Gulf of Mexico exploded, killing 11 men and triggering the biggest offshore oil spill in U.S. history. Now, the federal government has released new rules aimed at preventing the kinds of blowouts that can cause disasters like the one in the Gulf.

The rules target blowout preventers, the piece of safety equipment that is supposed to seal the oil well during an emergency. That equipment failed in the Deepwater Horizon disaster, leaving the Macondo well to gush oil into the Gulf. Among other things, the new rules establish requirements for the “design, manufacture, repair, and maintenance of blowout preventers” that is based on up-to-date industry standards. They also require a “more rigorous third party certification” for these blowout preventers, and institute real-time monitoring for high-temperature and high-pressure drilling.
http://thinkprogress.org/climate/2016/04/14/3769383/offshore-drilling-rule-released/
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #966 on: April 22, 2016, 11:03:02 PM »
Kinder Morgan shelves $3 billion pipeline project in New England
Quote
The energy giant Kinder Morgan Inc. has pulled the plug on its controversial natural gas pipeline proposed through parts of Massachusetts and Southern New Hampshire, after failing to sign up enough utility customers and facing stiff consumer and political opposition.
...
... Executives at the Texas company were also counting on an unprecedented shift pursued by state regulators in New England that would allow electric customers to be charged for pipeline construction costs.
https://www.bostonglobe.com/business/2016/04/20/kinder-morgan-shelves-billion-new-england-pipeline-project/iEafnAP2P41o0B9tmM0lEI/story.html
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #967 on: April 25, 2016, 02:27:40 AM »
Amid oil price plunge, Alaska's economy braces for losers and survivors
http://www.cnbc.com/2016/04/21/amid-oil-price-plunge-alaskas-economy-braces-for-losers-and-survivors.html
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Buddy

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Re: Oil and Gas Issues
« Reply #968 on: April 25, 2016, 03:36:37 AM »
I guess Saudi Arabia is about 20 years ahead of Joe Bastardi..... ;D

https://beta.finance.yahoo.com/news/gulf-arab-stocks-advance-brent-071622863.html

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Sigmetnow

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Re: Oil and Gas Issues
« Reply #969 on: April 25, 2016, 09:28:31 PM »
Within One Week, Plans For Two Major Proposed Natural Gas Pipelines in Northeast U.S. Are Scrapped
Quote
On Wednesday, energy company Kinder Morgan halted operations on its Northeast Energy Direct pipeline, which would have carried natural gas from northeastern Pennsylvania into Massachusetts.  [See comment #966 above.]
...
Then, on Friday, New York Gov. Andrew Cuomo’s administration rejected water quality permits needed to construct the Constitution Pipeline, effectively killing the project, which would have brought natural gas 124 miles from Pennsylvania to New York. New York’s Department of Environmental Conservation said in its decision to reject the permits that the pipeline would have impacted about 250 streams, “including trout spawning streams, old-growth forest, and undisturbed springs.”
...
The fight over these pipelines may not be over completely -- Williams, the Constitution pipeline's developer, told Politico that it is still analyzing the decision but will consider appealing it. But environmental groups see the demise of the two pipelines -- especially in the same week as Earth Day and the signing of the Paris agreement -- as a major step in the right direction for the climate. Natural gas emits less carbon dioxide than coal does when it's burned, but the venting, flaring, and leaking of methane during the natural gas extraction and development process erase its climate benefits.

"Governor Cuomo's rejection of the Constitution Pipeline represents a turning of the tide, where states across the nation that have been pressured into accepting harmful gas infrastructure projects by the Federal Energy Regulatory Commission (FERC) may now feel emboldened to push back," said Roger Downs, conservation director for the Sierra Club Atlantic Chapter, in a statement. "Cuomo’s leadership could inspire a domino effect of related pipeline rejections as other states begin to put the protection of water and our climate before flawed energy projects that do not serve the public interest."
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ghoti

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Re: Oil and Gas Issues
« Reply #970 on: April 26, 2016, 01:46:24 AM »
Any chance the Minnesota will block the new Line 3 that Enbridge wants to build to carry tarsand bitumen? I can always hope.

http://www.cbc.ca/news/business/enbridge-neb-line3-replacement-oilpatch-1.3551964

Sigmetnow

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Re: Oil and Gas Issues
« Reply #971 on: April 26, 2016, 03:28:45 PM »
Any chance the Minnesota will block the new Line 3 that Enbridge wants to build to carry tarsand bitumen? I can always hope.

http://www.cbc.ca/news/business/enbridge-neb-line3-replacement-oilpatch-1.3551964

Looks like it still has several hurdles to overcome.  As time passes, it can only get tougher for it to be approved.
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #972 on: April 26, 2016, 03:32:12 PM »
"But it was left to the king's powerful son, Deputy Crown Prince Mohammed bin Salman, to spell out details...."

Saudi Arabia Announces Reform Plan to Cure Economy's 'Addiction to Oil'
Quote
Saudi Arabia unveiled a bold reform plan on Monday aimed at weaning the country off its "addiction" to oil in a bid to prepare the next generation of Saudi leaders for the domestic pressures of youth unemployment and revenues eroded by lower oil prices.

The project, which includes plans to float a stake in the world's largest oil company, Aramco, and set up one of the world's biggest government investment funds, is meant to provide a blueprint for sweeping reforms to steer the OPEC kingdom away from its decades-long reliance on cheap-to-produce oil.
http://www.nbcnews.com/news/world/saudi-arabia-announces-reform-plan-cure-economy-s-addiction-oil-n561966
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #973 on: April 26, 2016, 09:24:33 PM »
Exxon Mobil Loses Top Credit Rating It Held Since Depression
Quote
The worst oil crash in a generation has cost Exxon Mobil Corp. the gold-plated credit rating it had held since the Great Depression.

Standard & Poor’s on Tuesday stripped Exxon of its highest AAA measure of credit-worthiness, cutting it to AA+, the same as the U.S. government. It’s a defeat for Exxon, which sought to retain the rating after S&P placed it on notice in February. Before the downgrade, Exxon shared the distinction with just two other companies: Johnson & Johnson and Microsoft Corp.
...
The downgrade is another blow to Chairman and Chief Executive Officer Rex Tillerson’s legacy as he approaches the company’s mandatory retirement age next year. In the decade he’s led the world’s most valuable publicly traded oil explorer, he spearheaded a $35 billion bet on natural gas right before the market collapsed. That was followed by a stillborn partnership with Russia’s state-controlled crude driller that stranded $1 billion behind a wall of international sanctions.
...
Exxon also is facing challenges in finding enough new discoveries to replace the crude it’s pumping from the ground, S&P said on Tuesday. The company only found enough new oil last year to replace 67 percent of its production.

"In our view, the company’s greatest business challenge is replacing its ongoing production," S&P said.
http://www.bloomberg.com/news/articles/2016-04-26/exxon-mobil-loses-top-credit-rating-it-held-since-depression
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #974 on: April 27, 2016, 04:11:19 AM »
BP prepares deeper spending cuts as profits fall 80%
Quote
Despite reporting record losses, cutting thousands of jobs, and freezing employees’ pay, the company’s chief executive, Bob Dudley, was awarded a £14m pay package for last year.

Shareholders were left incensed by the decision, and staged a major revolt at BP’s annual meeting two weeks ago, with almost 60% voting against Dudley’s pay.
http://www.theguardian.com/business/2016/apr/26/bp-spending-cuts-profits-fall-80-percent-oil-prices
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #975 on: April 29, 2016, 01:42:47 AM »
Shareholder pressure mounts on downgraded ExxonMobil
Quote
A growing list of major investors is backing calls on ExxonMobil to acknowledge climate risk, after its credit rating was downgraded on Tuesday.

British insurer Aviva and Seattle’s public pension fund are among the latest to declare their support for a shareholder resolution to be considered at next month’s AGM. California’s CalPERS, New York City Pension Fund and the Church of England are also in favour.

They are asking Exxon to analyse the impact of a 2C global warming limit on the value of its oil assets and publish the findings by 2017.
...
An investigation by Inside Climate News uncovered internal documents showing industry researchers were flagging the risks as early as the late 1960s.

The latest to surface, a 1980 report by Exxon subsidiary Imperial Oil published by blog DeSmog on Tuesday, said: “It is assumed that the major contributors of CO2 are the burning of fossil fuels…

“There is no doubt that increases in fossil fuel usage and decreases of forest cover are aggravating the potential problem of increased CO2 in the atmosphere.”


Yet over the next few decades, Exxon mounted a PR campaign to undermine that scientific consensus.
http://www.climatechangenews.com/2016/04/27/shareholder-pressure-mounts-on-downgraded-exxonmobil/
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #976 on: May 01, 2016, 05:33:51 PM »
Flooding flushes oil and fracking chemicals into Texas rivers
Quote
Recent Texas floods have inundated oil wells and fracking sites, flushing oil and fracking chemicals into rivers.

State emergency officials have taken dozens of photos that show sheens and plumes spreading from tipped tanks and flooded production sites during Sabine River flooding in March. Photos showed similar scenes in last year’s floods of the Trinity, Red and Colorado rivers.

“That’s a potential disaster,” Dr. Walter Tsou, past president of the American Public Health Association, told the El Paso Times. “Cattle that drank the fracking fluid actually died an hour after drinking it. There are potential carcinogens that can lead to leukemia, brain cancer and other endocrine disruptors that can affect premature births.”

The Texas Railroad Commission, which regulates oil and gas drilling, said it has responded effectively to such incidents. “I’m confident that once the agency is notified, we’re taking appropriate measures,” spokesman Rich Parsons said.

State management emergency officials mobilize the Civil Air Patrol to photograph potential spills and leaks, and the commission responds quickly to reports of spills or other releases, spokeswoman Ramona Nye said. “If a release or spill is identified, the agency dispatches an inspector to investigate. Alleged violations are documented and appropriate action is taken based on the nature of the alleged violation,” she said.

Critics worry that the commission is soft on holding the oil and gas industry responsible for such incidents, since — according to one watchdog group’s accounting — commissioners receive more than half of their campaign contributions from that sector. However, Nye insists that spill prevention is the commission’s top priority, a statement echoed by Todd Staples, president of the Texas Oil and Gas Association.

“Oil and natural gas companies utilize the latest technologies to establish and maintain safe operations in any weather condition,” Staples, a former Texas agriculture commissioner, wrote in an email to the Times. “The Railroad Commission provides direction and oversight in the unlikely event that an environmental cleanup project is necessary. Operators who do not comply with regulations or remediation directives should face enforcement and can lose their permit to operate in Texas.”

However, with some climatologists expecting storms to become more intense in the future, it’s critical to strengthen measures to prevent such flood-related runoff, said Ken Kramer, water resources chairman of the Lone Star Chapter of the Sierra Club.

“We just know they’re going to recur all the time,” he said.
http://m.statesman.com/news/news/state-regional/flooding-flushes-oil-fracking-chemicals-into-texas/nrFSS/
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #977 on: May 02, 2016, 11:40:52 PM »
There will be pandemonium: The end of the old oil order has already begun
Quote
Sunday, April 17th was the designated moment.  The world’s leading oil producers were expected to bring fresh discipline to the chaotic petroleum market and spark a return to high prices. Meeting in Doha, the glittering capital of petroleum-rich Qatar, the oil ministers of the Organization of the Petroleum Exporting Countries (OPEC), along with such key non-OPEC producers as Russia and Mexico, were scheduled to ratify a draft agreement obliging them to freeze their oil output at current levels. In anticipation of such a deal, oil prices had begun to creep inexorably upward, from $30 per barrel in mid-January to $43 on the eve of the gathering. But far from restoring the old oil order, the meeting ended in discord, driving prices down again and revealing deep cracks in the ranks of global energy producers.
...
With the proposed agreement in tatters, Saudi Arabia is now expected to boost its own output, ensuring that prices will remain bargain-basement low and so deprive Iran of any windfall from its expected increase in exports. The kingdom, Prince Mohammed told Bloomberg, was prepared to immediately raise production from its current 10.2 million barrels per day to 11.5 million barrels and could add another million barrels “if we wanted to” in the next six to nine months. With Iranian and Iraqi oil heading for market in larger quantities, that’s the definition of oversupply.  It would certainly ensure Saudi Arabia’s continued dominance of the market, but it might also wound the kingdom in a major way, if not fatally.

A New Global Reality

No doubt geopolitics played a significant role in the Saudi decision, but that’s hardly the whole story. Overshadowing discussions about a possible production freeze was a new fact of life for the oil industry: the past would be no predictor of the future when it came to global oil demand.  Whatever the Saudis think of the Iranians or vice versa, their industry is being fundamentally transformed, altering relationships among the major producers and eroding their inclination to cooperate.

Until very recently, it was assumed that the demand for oil would continue to expand indefinitely, creating space for multiple producers to enter the market, and for ones already in it to increase their output. Even when supply outran demand and drove prices down, as has periodically occurred, producers could always take solace in the knowledge that, as in the past, demand would eventually rebound, jacking prices up again. Under such circumstances and at such a moment, it was just good sense for individual producers to cooperate in lowering output, knowing that everyone would benefit sooner or later from the inevitable price increase.

But what happens if confidence in the eventual resurgence of demand begins to wither? Then the incentives to cooperate begin to evaporate, too, and it’s every producer for itself in a mad scramble to protect market share. This new reality — a world in which “peak oil demand,” rather than “peak oil,” will shape the consciousness of major players — is what the Doha catastrophe foreshadowed.
http://www.salon.com/2016/04/29/there_will_be_pandemonium_partner/
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #978 on: May 03, 2016, 06:55:59 PM »
Reminder:  we can tackle more than one thing at a time....

New paper examining various GHG declares we should assure we have CO2 emissions (with its long term effects) under control before we focus on (the shorter tem effects of) methane emissions.

Why we’re still so incredibly confused about methane’s role in global warming
Quote
...Governments are struggling to keep the global temperature from rising more than 2 degrees Celsius above pre-industrial averages, and would prefer holding it to 1.5 degrees — which means eventually bringing carbon dioxide emissions to zero. If the temperature peaks soon, say by the year 2050, then controlling the warming caused by methane, and other short-lived climate pollutants like black carbon, would mean a lower total peak temperature, the new study finds. In that case, these emissions definitely matter.

But if we don’t get carbon dioxide under control and peak emissions by 2050, the new study suggests, then today’s methane emissions become irrelevant. They simply won’t be causing warming any longer. But a significant amount of the carbon dioxide we emit today will still be in the atmosphere.
https://www.washingtonpost.com/news/energy-environment/wp/2016/05/02/why-were-still-so-incredibly-confused-about-methanes-role-in-global-warming/
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jai mitchell

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Re: Oil and Gas Issues
« Reply #979 on: May 03, 2016, 11:54:49 PM »
Reminder:  we can tackle more than one thing at a time....

New paper examining various GHG declares we should assure we have CO2 emissions (with its long term effects) under control before we focus on (the shorter tem effects of) methane emissions.

Why we’re still so incredibly confused about methane’s role in global warming
Quote
...Governments are struggling to keep the global temperature from rising more than 2 degrees Celsius above pre-industrial averages, and would prefer holding it to 1.5 degrees — which means eventually bringing carbon dioxide emissions to zero. If the temperature peaks soon, say by the year 2050, then controlling the warming caused by methane, and other short-lived climate pollutants like black carbon, would mean a lower total peak temperature, the new study finds. In that case, these emissions definitely matter.

But if we don’t get carbon dioxide under control and peak emissions by 2050, the new study suggests, then today’s methane emissions become irrelevant. They simply won’t be causing warming any longer. But a significant amount of the carbon dioxide we emit today will still be in the atmosphere.
https://www.washingtonpost.com/news/energy-environment/wp/2016/05/02/why-were-still-so-incredibly-confused-about-methanes-role-in-global-warming/

Isn't it interesting how the definition of the problem drives the proposed (even potential!) solution.  I wonder what their perspective would be if we were able to tell them that someone just got back from 2025 and said we had crossed the 2.5C above 1880 in globally averaged temperatures just before she left?

How would they look at controlling methane vs. co2 if the timeline was pushed into their current lifetime and not those of a second or third generation hence?

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Sigmetnow

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Re: Oil and Gas Issues
« Reply #980 on: May 06, 2016, 08:11:18 AM »
Oil Giants Would Be Worth More by Drilling Less in a Low-Carbon World, Analysts Say
Quote
At current oil prices, the group estimated that the portfolio of the combined majors' oil and gas projects would be worth about $140 billion more if they left enough fuels in the ground to keep the world within the carbon budget for 2 degrees. Even if oil prices rebounded to $100 per barrel, sticking to the 2-degree target would produce $55 billion higher valuations than a business-as-usual approach.
...

The study looked at oil and gas asset investments by the world's seven largest privately owned oil and gas companies, including oil giants ExxonMobil, Shell and BP. An approach that pursues significant investment in finding and drilling new, costly fields only makes financial sense when oil prices exceed $120 per barrel for a sustained period, the report found. Long-term forecasts from the Organization of Petroleum Exporting Countries and the International Energy Agency predict oil will remain below $100 per barrel until 2040.

"By investing less you actually end up with more," said Andrew Logan, director of the oil, gas and insurance programs at Ceres, a Boston-based non-profit that works with the business community on sustainability and climate change issues. "It's counterintuitive, but the business-as-usual approach effectively destroys capital. You can end up with less than you started."
http://insideclimatenews.org/news/05052016/oil-gas-companies-exxon-shell-bp-climate-change-low-carbon-world-stranded-assets-tar-sands
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Buddy

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Re: Oil and Gas Issues
« Reply #981 on: May 06, 2016, 01:28:27 PM »
Since we know that global warming isn't enough to stop drilling for oil and gas (who needs a planet anyway?).....it's a good thing that the landscape in economics IS CHANGING IT:

http://www.bloomberg.com/news/articles/2016-05-04/harvard-scientist-a-former-solar-skeptic-now-sees-the-light



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Sigmetnow

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Re: Oil and Gas Issues
« Reply #982 on: May 06, 2016, 09:19:59 PM »
Wave of Fossil Fuel Project Cancellations Follow Keystone XL Rejection
Grassroots climate activists have been effective in stirring public opposition; industry mostly sees market forces at play.
Quote
Six months after the Obama administration rejected the Keystone XL pipeline, at least 20 other proposed energy projects—mines, pipelines, plants, related rail projects and export terminals—have been canceled, rejected or delayed, according to research compiled and mapped by InsideClimate News.

Sustained grassroots resistance and public opposition have played a role in at least some of these decisions; other influential factors include unfavorable economic conditions such as low oil prices, as well as governments' environmental concerns and project siting issues.
...

Since then, the Federal Energy Regulatory Commission rejected two project applications—for the Oregon-based Jordan Cove LNG project and Pacific Connector Pipeline—and delayed the decisions on two other facilities. For five of the projects, the bids or key permits were rejected by either a federal panel or state or local officials. Companies chose to cancel five other projects, including Arch Coal's abandoning its planned Otter Creek coal mine in Montana and Kinder Morgan's pulling the plug on its Northeast Energy Direct pipeline. The remaining facilities are delayed.

According to Tom Sanzillo, director of finance for the Institute for Energy Economics and Financial Analysis (IEEFA), what's driving the coal decisions is straightforward: No one is willing to financially support these projects anymore.

So far this year, the nation's two top coal companies, Peabody Coal and Arch Coal, announced bankruptcy. "The bankruptcies have just rocked the industry," said Sanzillo, who cited a roster of investors who are "walking away" from coal: bankers, equity markets, venture capitalists and hedge funds.
http://insideclimatenews.org/news/06052016/fossil-fuel-projects-cancellations-keystone-xl-pipeline-oil-coal-natural-gas-climate-change-activists
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #983 on: May 07, 2016, 02:26:39 AM »
Oil firms have 10 years to change strategy or face 'short, brutish end'
Business models employed by multinationals such as Shell and BP are no longer fit for purpose, warns energy expert
Quote
International oil companies such as Shell and BP must completely change their business model or face a “nasty, brutish and short” end within 10 years, one of Britain’s most influential energy experts has warned.

Paul Stephens, a fellow at Chatham House thinktank, said in a research paper the oil “majors” were no longer fit for purpose – hit by low crude prices, tightening climate change regulations and their own wrongheaded strategies.

In the report, Stephens argues the only way forward for the companies lies in diversifying into green energy, drastically reducing their operations or consolidating through mega-mergers.
https://www.theguardian.com/business/2016/may/05/oil-firms-environment-energy-climate-change
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #984 on: May 07, 2016, 02:40:13 AM »
BP warns about Canadian oil deliveries as wildfire burns on
Quote
BP PLC said on Friday it would not be able to deliver on some contracts for Canadian crude due to a wildfire that has cut Canada's oil sands output in half and snarled supply lines.

The oil major's Canadian unit alerted customers of a "force majeure event" at one of its suppliers, a BP spokesperson said, which means several grades of Canadian crude oil will not be as readily available for its customers through the rest of May.
http://ca.reuters.com/article/businessNews/idCAKCN0XX238
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #985 on: May 07, 2016, 09:15:14 PM »
Might some operations never reopen?

Fort McMurray wildfire forces a quarter of Canada’s oil output off-line
Quote
The Alberta wildfire that has destroyed entire neighbourhoods in Fort McMurray is taking a growing toll on the energy industry, forcing as much as a quarter of the country’s oil output off-line.

Oil sands projects, pipelines and electrical facilities around Fort McMurray have shut down and workers have been sent to safer locales.

With the inferno having expanded more than tenfold in a day, there is no estimate yet of when many of the operations can resume.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/fort-mcmurray-wildfire-forces-a-quarter-of-canadas-oil-output-off-line/article29918371/
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #986 on: May 08, 2016, 12:50:10 AM »
Alberta Wildfires Approach Suncor Oil Site as Blaze Spread
Quote
Wildfires ravaging the center of Canada’s oil patch in northern Alberta may double in size as warm temperatures and swirling winds push the inferno close to several major oil-sands operations, forcing a shutdown at one of the province’s biggest producers.

The blaze, which expanded by half to 1,500 square kilometers (580 square miles) overnight, made an “unexpected” move to the north of Fort McMurray, rapidly approaching bitumen mining operations run by Suncor Energy Inc. and others, Travis Fairweather, a forestry spokesman, said in phone interview.
...
The blaze has prompted the shutdown of as much as 40 percent of the region’s oil-sands production, according to Royal Bank of Canada estimates. Syncrude said on its website Saturday that it’s shutting Mildred Lake after smoke reached the site. Its Aurora site 35 kilometers to the north is also closed. All units would be brought down by this weekend.
...
The fire reached Cnooc Ltd.’s Nexen operation to the south of the city yesterday, forcing a shutdown of that facility. Officials haven’t been able to assess if there was damage, due to the clouds of smoke. The facility is “probably OK,” Morrison told reporters Saturday in Edmonton.
http://www.bloomberg.com/news/articles/2016-05-07/alberta-wildfires-may-double-as-flames-head-toward-oil-sands
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #987 on: May 10, 2016, 09:14:02 PM »
Wildfire at Fort McMurray quickly overtakes Canada's environmental debate
Quote
Some Canadians see the fire as nature lashing back at those who mistreat it in the name of profit.

Others see the hard science: a wildfire formed in conditions consistent with climate change striking with academic irony, not vengeance, in a place that helps supply the world with a fossil fuel. The evacuees were really climate refugees, they say.

Still others view it as just very bad luck, a setback the oil industry will find a way to overcome.

The debate reflects a country wrestling within itself at a difficult moment — and it is testing that famous Canadian civility.
http://www.latimes.com/world/mexico-americas/la-fg-sej-canada-forest-fire-20160508-story.html
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #988 on: May 12, 2016, 03:48:13 PM »
Big Oil Unexpectedly Backing Newest Non-Fossil Fuels
Quote
“This stuff has gone so mainstream that it seems inevitable some of the largest energy companies in the world will find their way into it,” said Ethan Zindler, a Bloomberg New Energy Finance analyst.
http://www.bloomberg.com/news/articles/2016-05-10/big-oil-unexpectedly-backs-newest-non-fossil-fuels
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #989 on: May 12, 2016, 09:39:19 PM »
Bill and Melinda Gates Foundation divests entire holding in BP
World’s largest health charity sells its $187m stake in the oil giant in a move welcomed by fossil fuel divestment campaigners
http://www.theguardian.com/environment/2016/may/12/bill-and-melinda-gates-foundation-divests-entire-holding-in-bp
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #990 on: May 13, 2016, 12:17:07 AM »
Pretty much wraps up the "Arctic Drilling" thread!

Big Oil Abandons $2.5 Billion in U.S. Arctic Drilling Rights
Quote
After plunking down more than $2.5 billion for drilling rights in U.S. Arctic waters, Royal Dutch Shell Plc, ConocoPhillips and other companies have quietly relinquished claims they once hoped would net the next big oil discovery.
...
All told, companies have relinquished 2.2 million acres of drilling rights in the Chukchi Sea -- nearly 80 percent of the leases they bought from the U.S. government in a 2008 auction. Oil companies spent more than $2.6 billion snapping up 2.8 million acres in the Chukchi Sea during that sale, on top of previous purchases in the Beaufort Sea.
http://www.bloomberg.com/news/articles/2016-05-10/big-oil-abandons-2-5-billion-in-u-s-arctic-drilling-rights
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #991 on: May 13, 2016, 12:55:09 AM »
Mobil's Chief Executive Warned of CO2 From Oil Sands Fuels in 1982
Quote
The CEO of Mobil Corporation warned in 1982 that burning Canadian oil sands fuels could lead to a buildup of carbon dioxide in the atmosphere with calamitous effects. His concerns provide further evidence that oil industry executives were aware of the climate impact of their products decades ago, and of the dangers of exploiting unconventional reserves with a higher carbon footprint.

Mobil's chief executive, Rawleigh Warner, Jr., took notice of the increasing production of tar sands, oil shales and liquefied coal in an article published by the United Nations Environment Program. He was writing 15 years after Suncor Energy began producing oil sands from the first large-scale mine in Alberta, and less than a decade after the Arab oil embargo propelled industry to search for alternative fuels.

"The switch to heavier fossil fuels has already caused much popular concern, primarily seen in some nations' fear of the effects of acid rain," he wrote, "and the general fear that excessive use of these fuels may so build up carbon dioxide in the atmosphere that the earth's temperature may increase, with some disastrous consequences.

"Both of these fears should be seriously addressed."

His advice was not heeded. Development of the oil sands continued in subsequent decades and boomed after the turn of the century.
http://insideclimatenews.org/news/09052016/mobil-oil-chief-executive-warned-climate-change-co2-oil-sands-fuels-tar-sands-1982-exxon
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #992 on: May 13, 2016, 02:27:52 AM »
California Regulators Are Approving Fracking Permits Near Fault Lines
Quote
New research indicates that nearly 40 percent of new wastewater injection wells approved over the past year in California are perilously close to fault lines, increasing the risk of man-made earthquakes in the already seismically active Golden State.

The Center for Biological Diversity (CBD) found that 13 out of 33, or 39 percent, of new drill permits for wastewater disposal wells issued by regulators with California’s Division of Oil, Gas, and Geothermal Resources (DOGGR) between April 2015 and March 2016 were for drill sites within 5 miles of a fault.
http://www.desmogblog.com/2016/05/11/california-regulators-are-approving-fracking-permits-near-fault-lines
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #993 on: May 14, 2016, 11:42:21 PM »
Oil at $45 a Barrel Proving No Savior as Bankruptcies Pile Up - Bloomberg
Quote
Three bankruptcies this week shows that $45 a barrel oil isn’t enough to rescue energy companies on the verge of collapse.

Since the start of 2015, 130 North American oil and gas producers and service companies have filed for bankruptcy owing almost $44 billion
, according to law firm Haynes & Boone. The tally doesn’t include Chaparral Energy Inc., Penn Virginia Corp. and Linn Energy LLC, which filed for bankruptcy this week owing more than $11 billion combined.

At least four more oil and gas companies owing more than $8 billion are nearing default, including Breitburn Energy Partners LP and SandRidge Energy Inc. Bankruptcies have accelerated as cash-starved companies find it almost impossible to raise capital. Energy companies have been virtually shut out of the high-yield bond markets, banks are cutting credit lines and asset sales have slowed.

"I don’t think the E&P model in North America is economic and I don’t think it was real economic even at $80 and $100 oil," Jim Chanos, Kynikos Associates founder and president, said in an Bloomberg TV interview Thursday. "It’s certainly not economic at $45 oil."
http://www.bloomberg.com/news/articles/2016-05-12/oil-at-45-a-barrel-proving-no-savior-as-bankruptcies-add-up
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #994 on: May 18, 2016, 07:46:00 PM »
Smart move.  :)

Oil giant Total to acquire battery-maker Saft
Quote
Saft will be Total’s “spearhead in electricity storage,” said Total CEO Patrick Pouyanné. “The acquisition of Saft is part of Total’s ambition to accelerate its development in the fields of renewable energy and electricity, initiated in 2011 with the acquisition of SunPower. It will complement our portfolio with electricity storage solutions, a key component of the future growth of renewable energy.”
https://chargedevs.com/newswire/oil-giant-total-to-acquire-battery-maker-saft/
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RoxTheGeologist

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Re: Oil and Gas Issues
« Reply #995 on: May 18, 2016, 08:51:45 PM »

CARB is addressing methane emissions. They are a serious handicap to claims that CNG or LNG transportation is carbon efficient. You can sign up onto the CARB list server to get e-mails on what we are trying to achieve here.


The California Air Resources Board, California Energy Commission, and California Public Utilities Commission invite you to a Joint Agency Symposium:.

Methane Emissions from California’s Natural Gas System:
Challenges and Solutions

California is establishing a framework to reduce in-state emissions from oil and gas infrastructure by 40-45% in 2025.  The Symposium will include an examination of the science regarding methane emissions from natural gas systems.  It will also include a discussion of the options supported by current science and technology to reduce emissions related to the natural gas used by California consumers in consideration of new State and Federal methane regulations introduced in 2015 and California-based initiatives to reduce methane emissions. 

June 6-7, 2016
CalEPA Headquarters Building, Sacramento

The Symposium will be webcast (no registration required if
webcasting):
http://www.calepa.ca.gov/broadcast/?BDO=1
For more information and registration, please go to the Symposium
website:
http://www.arb.ca.gov/cc/oil-gas/symp.htm
For additional information, contact Kathleen Kozawa (916)
327-5599 or Carolyn Lozo (916) 445-1104.

Sigmetnow

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Re: Oil and Gas Issues
« Reply #996 on: May 21, 2016, 03:07:51 PM »
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #997 on: May 24, 2016, 12:51:30 AM »
Exxon Unlikely to Change Course on Climate Change at Annual Shareholder Meeting
Quote
ExxonMobil Corp. wants to extend its quarter-century streak of largely resisting the demands of some of its most vocal shareholders to alter course on climate change.

At the annual stockholders meeting on Wednesday, management will again urge rejection of six resolutions on global warming. These include taking moral responsibility for climate change, electing a board member with environmental expertise, paying special dividends rather than investing more in fossil fuel reserves, and assessing how global action to slow climate change would affect Exxon's business. 

What's different this year is that Exxon is doing so in the face of mounting pressure from dozens of activist stockholder groups, including some with significant holdings. State attorneys general are investigating whether Exxon violated racketeering, consumer protection or investor protection statutes through what it said about climate change. Other oil companies are already shifting gears. Shell, BP and Statoil last year backed resolutions to assess the implications of restrictions on fossil fuel use, and ConocoPhillips is conducting such an analysis.

"The go-slow approach is no longer a responsible position as seen by many investors," said Andrew Logan, director of the oil and gas program at Ceres, a Boston nonprofit that coordinates action by many of the nation's largest institutional investors.
http://insideclimatenews.org/news/22052016/exxon-shareholder-pressure-climate-change-risks-unlikely-change-course
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #998 on: May 24, 2016, 08:02:38 PM »
Private refineries in China are taking in less crude than expected.

Oil’s Recovery Under Threat as Tankers Run in Circles Off China
http://www.bloomberg.com/news/articles/2016-05-24/oil-s-recovery-under-threat-as-tankers-run-in-circles-off-china
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Sigmetnow

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Re: Oil and Gas Issues
« Reply #999 on: May 25, 2016, 06:20:46 PM »
My father warned Exxon about climate change in the 1970s. They didn't listen.
Quote
My father, James F Black, PhD, started working for Standard Oil (part of which later became Esso and then Exxon) during the second world war. He had a distinguished career over 40 years, garnering dozens of patents through his wide-ranging research.

In 1977, he briefed some of Exxon’s top executives about the risks of burning fossil fuels. A year later, in recapping his presentation in an internal company memo, he wrote: “Present thinking holds that man has a time window of five to ten years before the need for hard decisions regarding changes in energy strategies might become critical.”

By the end of that 10-year window, however, company executives had started ignoring science, cancelling research projects and investing in “spin”. They poured millions of dollars into advocacy groups and public relations campaigns designed to cast doubt on the scientific realities of climate change. As Exxon entered this period, my father would lament: “A company is in trouble when it falls into the hands of the accountants.”
http://www.theguardian.com/commentisfree/2016/may/25/exxon-climate-change-greenhouse-gasses
People who say it cannot be done should not interrupt those who are doing it.