Playing Cat & Mouse with Global Oil
Oil markets took another dose of global geopolitics last week when the International Energy Agency (IEA) unexpectedly announced that it would be releasing 60 million barrels of oil from strategic petroleum reserves (SPR) around the globe. Thursday’s surprise announcement gave oil prices a 4.5% hair cut and oil prices closed Friday at $91.25, down 20% from their April 29 peak. The IEA, a Paris-based agency comprised of developed countries around the world, said the release would take place in increments of 2 million barrels per day over 30 days beginning July 1, and is intended to make up for lost crude oil production due to the Libya crisis. The IEA estimates that the fall of Ghaddafi’s regime and civil strife that’s followed has cost global crude supplies 123 million barrels of oil. While the short-term effect of the SPR release manifested quickly, it’s difficult to gauge where the market goes from here. For starters, emergency SPR releases are rare and have only been initiated twice in history (Iraq’s invasion of Kuwait in 1990 and following Hurricanes Katrina & Rita in 2005). Then, the releases covered for a little less than 7% of global demand, according to Barclays. The current program would only cover a little greater than 2% of global oil demand. One cannot ignore the politics in play. Prior to OPEC’s June 8 meeting earlier this month, the IEA called for an OPEC production increase and tipped their hand that they were prepared to tap the SPR. The IEA said “we are prepared to consider using all tools that are at the disposal of IEA member countries,” as reported by Barclays. When the highly contentious OPEC meeting broke without an increase, the IEA was all but forced to act on its threat. As long-term investors, we’re less concerned with the game of “cat and mouse” the IEA, OPEC and global politicians are playing with short-term supply and we’re focused on the positive long-term structural supply/demand dynamics. BCA Research forecasts that “further downside is limited” and says that “one-time stock release should have little impact on cyclical or medium-term horizons, as the flow demand for oil from emerging countries keeps steadily growing year after year.” Barclays argues that the IEA decision to implement the SPR “sends the wrong signal” to the market and will likely result in lower Saudi oil production over the long term, perhaps even by the end of 2011.Oil Well Production Per Day - News
The IEA, a Paris-based agency comprised of developed countries around the world, said the release would take place in increments of 2 million barrels per day over 30 days beginning July 1, and is intended to make up for lost crude oil production due to
Last year, oil production at Yates fell 9 percent to 24000 barrels per day and is down to 22000 barrels per day through May of this year, Kinder Morgan said. At its 1981 peak, the field produced 175000 barrels per day. It's a long fall for a giant
(Source: Datamonitor)Brigham Exploration Company, an oil and gas exploration and production company, has announced the completion of the Gobbs 17-8-1H Montana Bakken well at a 24-hour peak rate of approximately 1818boe, 1544 barrels of oil and 1.64mmcf
However, we remain apprehensive about the company's reduced 2011 production guidance of 385–395 thousand barrels of oil equivalent per day (MBoe/d) versus its prior expectation of 415–425 MBoe/d. The lowered forecast mainly reflects loss of Libyan
The total depth of the 16-3-4 well was 2020 metres, proving an oil column of 13.5 metres, with an average production rate of over 5500 barrels of oil equivalent per day. The well will now be side-tracked to confirm the lateral continuity of the
Oil production at Oml 56 under threat
WARRI— THE expected 12,000bpd oil production from the Oil Mining Lease, OML 56, in Kwale, Delta State, is now under threat from Obodougwa-Ogume community, following alleged moves by Energia Limited to engage another drilling contractor to drill Well 4 in the location.
The community has also raised objection to the unilateral re-naming of the oil field to “Emu-Ebendo Oil Well”, noting that no documentation, either in the past or present, supported this new nomenclature.
Energia Limited bought the French oil giant’s (Total E & P Nigeria) abandoned oil production field in 1978 and had been able to produce 1,800 barrels of oil per day.
Managing Director of the company, Mr. A. V. Felix, however, revealed that Energia Limited, a marginal field operator, was planning to raise oil production output to 12,000bpd by 2012, adding that KCA Deutag, operators of the drilling rig, was expected to move to site next month.
The company, which has so far spent over $70 million in oil and gas facilities, is heading for trouble with its main host communities over its alleged negotiation with KCA Deutag in flagrant breach of extant negotiations and agreement with the consortium of Sam Pirah International Limited and Crosco-Delemas Amira Drilling Nigeria Limited.
The community leaders, comprising Prince F.C. Ifuwe, CDC Chairman, Chief Fred N. Odibi, General Secretary and others, however, maintained that Sam Pirah International Limited remained their indigenous drilling contractor for the Obodougwa Well 4 project intended to raise oil production output from a mere 1,800bpd to 12,000bpd by 2012.
Stating that the new name being given to the marginal field and the negotiation with KCA Deutag for the drilling of the said Well 4 and any other arrangement were unacceptable to them, as their concern remained with Sam Pirah International, the community leaders warned that this continuous use of wrong description and contractor would certainly lead to unnecessary and avoidable crises.
Oil Well Production Per Day - Bookshelf
Engineering and mining journal
B. Various tests have given the average fuel value of Los Angeles oil as 3'/* bbl. of oil equal to I ton of soft coal. The average yield per well per day is ...Congressional Record
credit for marginal domestic oil and natural gas well production and an election to ... of oil and less than 90 thousand cubic feet of natural gas per day ...Petroleum production methods
$1.1030 $1.0699 $1.0345 $1.0826 $0.9915 $0.8895 Cost per bbl of oil $0.0254 $0.0274 $0.0172 $0.0103 $0.0151 $0.0152 Actual cost per well day $1.0099 $0.9733 ...The Oil and gas journal
The production is a little less than 50 bbls. per day, while several million ... JB Forker, of Oil City, Pa., Eastern representative of the Oil Well Supply ...Engineering and mining journal
A small oil well was completed at Trickman, in Coleman County, also a second gasser ... La., which flowed for several days at the rate of 1000 bbl. per day. ...Detect Guide Directory
Table 5.2 Crude Oil Production and Crude Oil Well ...
Producing Wells 3. Average Productivity 4. Thousand Barrels per Day ... "Domestic Crude Oil First Purchase Report," and crude oil production data reported by ...
Wikipedia - Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid found in rock ... production/consumption (as of 2005) is approximately 84 million barrels per day ...
Oil depletion - Wikipedia, the free encyclopedia
Oil depletion per major producing country. This model assumes world ... Oil depletion occurs in the second half of the production curve of an oil well, oil field, ...
Stripper Wells: Bringing New Life to Marginal Gas and Oil Wells
There are over 400,000 of these wells in the United States, and together they produce nearly 900 thousand barrels of oil per day, 15 percent of U.S. production. ...
Oil and Gas- Decreasing foreign oil dependency by Milking ...
Data-Linc manufactures the world's broadest line of industrial modems as well as data communications peripherals and multiplexers for superior performance in the ...