U.S. Rig Count Drops As Oil Price Slide Accelerates | OilPrice.com:
After another week of faltering oil prices as the coronavirus outbreak continues to spook the market, Baker Hughes reported that the number of oil and gas rigs in the US decreased this week, to 790—a decrease of 4 rigs. The total oil and gas rig count is now 265 down from this time last year.
The number of oil rigs decreased for the week, by 1 rigs, according to Baker Hughes data, bringing the total to 675—a 172-rig loss year over year.
The total number of active gas rigs in the United States fell by 3 according to the report, to 112. This compares to 198 a year ago.
Meanwhile, oil production has hovered at 13 million bpd for three weeks now, according to data provided by the Energy Information Administration—a high for the United States.
By basin, oil rigs have slumped the most over the last 52 weeks in the Mississippian and Granite Wash basins (-80%), followed by Cana Woodford (-69%). By sheer numbers, the Permian basin saw the most declines at 75 over that same period, but that figure represents only a 16% decline—making the Permian one of the least affected basins over the last year.
Friday 31 January 2020
Oil Heads for Biggest Monthly Loss Since May With Focus on Virus - Bloomberg
Oil Heads for Biggest Monthly Loss Since May With Focus on Virus - Bloomberg:
Oil headed for its biggest monthly drop since May as Asia’s coronavirus spread, stoking concerns that demand for transportation fuels will shrink.
Futures were little changed in New York on Friday, after sliding to a five-month low on Thursday, as the World Health Organization declared the outbreak a global health emergency. Prices have slumped 14% in January as the disease locks down entire cities in China, the largest importer, and shows no sign of abating.
The rout has alarmed Saudi Arabia, prompting the biggest member of the OPEC cartel to push for an emergency meeting that could deepen production cuts already being made by the group. However, the overture hasn’t yet secured support from Russia, the most important player in a broader coalition known as OPEC+.
Oil headed for its biggest monthly drop since May as Asia’s coronavirus spread, stoking concerns that demand for transportation fuels will shrink.
Futures were little changed in New York on Friday, after sliding to a five-month low on Thursday, as the World Health Organization declared the outbreak a global health emergency. Prices have slumped 14% in January as the disease locks down entire cities in China, the largest importer, and shows no sign of abating.
The rout has alarmed Saudi Arabia, prompting the biggest member of the OPEC cartel to push for an emergency meeting that could deepen production cuts already being made by the group. However, the overture hasn’t yet secured support from Russia, the most important player in a broader coalition known as OPEC+.
Oil rises as WHO declares emergency but opposes travel ban - Reuters
Oil rises as WHO declares emergency but opposes travel ban - Reuters:
Oil prices rose on Friday but were still set for a fourth consecutive weekly loss, as markets attempted to assess the economic damage of the new coronavirus that has spread from China to around 20 countries, killing more than 200 people.
Brent crude LCOc1 was up 20 cents at $58.49 a barrel by 1208 GMT but still down 3.6% on the week.
U.S. West Texas Intermediate (WTI) CLc1 rose by 24 cents to $52.38 a barrel, but remained down 3.3% on the week.
Both benchmarks rose by more than $1 earlier in the session.
Oil prices rose on Friday but were still set for a fourth consecutive weekly loss, as markets attempted to assess the economic damage of the new coronavirus that has spread from China to around 20 countries, killing more than 200 people.
Brent crude LCOc1 was up 20 cents at $58.49 a barrel by 1208 GMT but still down 3.6% on the week.
U.S. West Texas Intermediate (WTI) CLc1 rose by 24 cents to $52.38 a barrel, but remained down 3.3% on the week.
Both benchmarks rose by more than $1 earlier in the session.
Portable LNG Plants Arrive at Natural Gas Wells to Curb Flaring - Bloomberg
Portable LNG Plants Arrive at Natural Gas Wells to Curb Flaring - Bloomberg:
Perched on the back of a semi-trailer is the latest weapon in tackling the problem of wasted natural gas that oil producers often vent into the air or even burn off at the wellhead.
Cryobox takes fuel directly from wells and turns it into liquefied natural gas, which is easy to store and transport.
For small gas fields uneconomical or too distant to connect to a traditional pipeline network, this small-scale LNG plant is a solution to absorb fuel that would otherwise be wasted. That also makes it a way to prevent greenhouse gas emissions that contribute to global warming and solve a growing problem for the industry.
Wherever oil is produced, gas often follows. If there aren’t enough customers to take it away, the gas is often treated as a waste product and either burned off at the wellhead or allowed to escape into the air—flared or vented in the jargon of the industry.
Perched on the back of a semi-trailer is the latest weapon in tackling the problem of wasted natural gas that oil producers often vent into the air or even burn off at the wellhead.
Cryobox takes fuel directly from wells and turns it into liquefied natural gas, which is easy to store and transport.
For small gas fields uneconomical or too distant to connect to a traditional pipeline network, this small-scale LNG plant is a solution to absorb fuel that would otherwise be wasted. That also makes it a way to prevent greenhouse gas emissions that contribute to global warming and solve a growing problem for the industry.
 |
Edge LNG’s Cryobox ready for shipment to a work site.
Source: Edge LNG
|
Wherever oil is produced, gas often follows. If there aren’t enough customers to take it away, the gas is often treated as a waste product and either burned off at the wellhead or allowed to escape into the air—flared or vented in the jargon of the industry.
Economist Who Said SARS Cost $40 Billion Sees Bigger Hit Now - Bloomberg
Economist Who Said SARS Cost $40 Billion Sees Bigger Hit Now - Bloomberg:
The global cost of the coronavirus could be three or four times that of the 2003 SARS outbreak that sapped the world’s economy by $40 billion, according to the economist who calculated that figure.
The sheer growth in the Chinese economy over the last 17 years means the global health emergency triggered by the coronavirus outbreak has far greater potential to gouge global growth, according to Warwick McKibbin, professor of economics at the Australian National University in Canberra.
“It’s just a mathematical thing,” McKibbin said in a phone interview. “Most of the GDP loss that we saw in the SARS model, and in reality, was China slowing down. And so, with China much bigger, you’d expect the billions would be much bigger.”
While difficult to pinpoint a precise cost as the crisis is still unfolding, the impact will be experienced mostly through changes in “human psychology,” he said. “Panic is what seems to be the biggest drain on the economy, rather than deaths.”
The global cost of the coronavirus could be three or four times that of the 2003 SARS outbreak that sapped the world’s economy by $40 billion, according to the economist who calculated that figure.
The sheer growth in the Chinese economy over the last 17 years means the global health emergency triggered by the coronavirus outbreak has far greater potential to gouge global growth, according to Warwick McKibbin, professor of economics at the Australian National University in Canberra.
“It’s just a mathematical thing,” McKibbin said in a phone interview. “Most of the GDP loss that we saw in the SARS model, and in reality, was China slowing down. And so, with China much bigger, you’d expect the billions would be much bigger.”
While difficult to pinpoint a precise cost as the crisis is still unfolding, the impact will be experienced mostly through changes in “human psychology,” he said. “Panic is what seems to be the biggest drain on the economy, rather than deaths.”
State Bank of India Profit Rises on Bad-Loan Provision Clawback - Bloomberg
State Bank of India Profit Rises on Bad-Loan Provision Clawback - Bloomberg:
State Bank of India posted a rise in quarterly profit as the country’s largest lender wrote back provisions on its bad loans.
Net income rose to 55.8 billion rupees ($782 million) in the three months ended December from 39.6 billion rupees a year earlier, broadly in line with the 58.7 billion rupee average of analysts’ estimates compiled by Bloomberg.
SBI has been helped by the resolution of some large bad loan accounts, such as Essar Steel India Ltd., allowing the bank to write back provisions. The lender contributes about a quarter of total Indian bank loans, and its success in reining soured credit could be offset by the nation’s slowing economy.
India’s insolvency regime was bolstered last year by a Supreme Court ruling that paved the way for ArcelorMittal’s $5.9 billion takeover of Essar Steel and empowered banks to set the terms of the distribution of sale proceeds among Essar’s creditors.
State Bank of India posted a rise in quarterly profit as the country’s largest lender wrote back provisions on its bad loans.
Net income rose to 55.8 billion rupees ($782 million) in the three months ended December from 39.6 billion rupees a year earlier, broadly in line with the 58.7 billion rupee average of analysts’ estimates compiled by Bloomberg.
SBI has been helped by the resolution of some large bad loan accounts, such as Essar Steel India Ltd., allowing the bank to write back provisions. The lender contributes about a quarter of total Indian bank loans, and its success in reining soured credit could be offset by the nation’s slowing economy.
India’s insolvency regime was bolstered last year by a Supreme Court ruling that paved the way for ArcelorMittal’s $5.9 billion takeover of Essar Steel and empowered banks to set the terms of the distribution of sale proceeds among Essar’s creditors.
#Saudi SAMA launches licenses for non-bank financial institutions -statement | ZAWYA MENA Edition
Saudi SAMA launches licenses for non-bank financial institutions -statement | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) issued licenses for non-bank financial institutions in the Kingdom for the first time on Thursday, licensing an electronic wallet company and a payment services company.
The move to license financial technology companies was aimed at opening financial services to non-banking actors and supporting development of the national economy, SAMA said in a statement.
The companies licensed were Saudi Digital Payments Company (STCPay) as an Electronic Wallet Company, and GEIDEA Technology Company as a payment services company, SAMA said.
The Saudi Arabian Monetary Authority (SAMA) issued licenses for non-bank financial institutions in the Kingdom for the first time on Thursday, licensing an electronic wallet company and a payment services company.
The move to license financial technology companies was aimed at opening financial services to non-banking actors and supporting development of the national economy, SAMA said in a statement.
The companies licensed were Saudi Digital Payments Company (STCPay) as an Electronic Wallet Company, and GEIDEA Technology Company as a payment services company, SAMA said.
Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness
Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness:
The current electricity pricing policy in the Gulf Cooperation Council (GCC) countries is unsustainable as decades of subsidies have led to high consumption rates and wasted power, costing billions of dollars, according to a new study.
The report by Strategy& Middle East, part of the PwC network, said the region needs reform to achieve its ambitious industrialisation agenda and have an economically viable electricity sector.
It highlighted an "erroneous perception" among large industrial companies that pricing reforms will put them at a competitive disadvantage thus creating a large resistance to them.
The research estimates that the electricity subsidies have cost GCC countries more than $120 billion over the past 20 years, and leaving these policies in place until 2030 would cost an additional $150 billion as demand increases.
The current electricity pricing policy in the Gulf Cooperation Council (GCC) countries is unsustainable as decades of subsidies have led to high consumption rates and wasted power, costing billions of dollars, according to a new study.
The report by Strategy& Middle East, part of the PwC network, said the region needs reform to achieve its ambitious industrialisation agenda and have an economically viable electricity sector.
It highlighted an "erroneous perception" among large industrial companies that pricing reforms will put them at a competitive disadvantage thus creating a large resistance to them.
The research estimates that the electricity subsidies have cost GCC countries more than $120 billion over the past 20 years, and leaving these policies in place until 2030 would cost an additional $150 billion as demand increases.
Oil climbs as WHO declares emergency, says it 'opposes' travel, trade restrictions - Reuters
Oil climbs as WHO declares emergency, says it 'opposes' travel, trade restrictions - Reuters:
Oil prices rose on Friday following sharp losses this week, as the World Health Organization (WHO) came out against travel and trade restrictions in declaring a global emergency over the spread of a coronavirus that originated in China last year.
Oil prices fell nearly 4% through Thursday this week - hitting three-months lows - before rebounding on Friday, with investors and traders worried over how spread of the virus would impact demand for oil and its products.
“WHO’s decision ... to oppose restricting travel and trades against China boosted market confidence, even though the organization declared a global health emergency,” said Margaret Yang, market analyst at CMC Markets.
Brent crude futures LCOc1 were 68 cents higher at $58.97 a barrel by 0738 GMT, after falling 2.5% in the previous session. Brent is still down 2.8% for the week.
U.S. West Texas Intermediate (WTI) futures CLc1 were up by 70 cents to $52.84 a barrel. The contract fell 2.2% on Thursday and is now 2.5% lower for the week.
Oil prices rose on Friday following sharp losses this week, as the World Health Organization (WHO) came out against travel and trade restrictions in declaring a global emergency over the spread of a coronavirus that originated in China last year.
Oil prices fell nearly 4% through Thursday this week - hitting three-months lows - before rebounding on Friday, with investors and traders worried over how spread of the virus would impact demand for oil and its products.
“WHO’s decision ... to oppose restricting travel and trades against China boosted market confidence, even though the organization declared a global health emergency,” said Margaret Yang, market analyst at CMC Markets.
Brent crude futures LCOc1 were 68 cents higher at $58.97 a barrel by 0738 GMT, after falling 2.5% in the previous session. Brent is still down 2.8% for the week.
U.S. West Texas Intermediate (WTI) futures CLc1 were up by 70 cents to $52.84 a barrel. The contract fell 2.2% on Thursday and is now 2.5% lower for the week.
Subscribe to:
Posts (Atom)