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APEC ends in disarray after US-China spat over final statement

19th November 2018

(Nov 19): An Asia-Pacific summit ended in tumult after the US and China failed to agree on language in a final statement, the latest sign that a trade war between the world’s biggest economies won’t end anytime soon. For the first time since leaders began attending the annual Asia-Pacific Economic Cooperation meeting in 1993, no statement was issued after two days of talks in Papua New Guinea. The Pacific island nation’s prime minister, Peter O’Neill, blamed “two big giants in the room” for the discord. The failure to agree on a largely symbolic statement lowers expectations for US President Donald...

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Finding Oil Floor Is Going to Take More Time

19th November 2018

Finding a floor for oil is going to take more time. That’s according to CIBC Private Wealth Management Senior Energy Trader Rebecca Babin, who expressed her view in a television interview with Bloomberg on Thursday. “It’s hard to say when you’ve had huge volatility spikes where the floor is. This was an avalanche of selling pressure that just hit the commodity and if you get in front of an avalanche, you might get buried,” Babin told Bloomberg in the interview. “I think we … certainly saw a deceleration of the supply and the technicals pushing it lower but finding a...

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Unclear Brexit Deal Could Damage UK Oil Industry

19th November 2018

The UK’s draft withdrawal agreement for leaving the European Union lacks clarity, which could be damaging to the UK oil and gas industry with increased costs for retaining skilled workers, analysts warn. Earlier this week, the draft Brexit divorce deal from the EU was published, and according to analysts, it contains a lot of uncertainties in many areas. “It’s bringing even less certainty than we had before. We don’t know if we will be leaving the customs union and it’s asking more questions than are being answered which I think will be disturbing for the oil and gas industry,” David Gibbons Wood,...

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Natural Gas Markets Remain Ultra Tight

19th November 2018

Natural gas prices skyrocketed this week, shooting above $4.80 per MMBtu on Wednesday, a price last seen during the polar vortex of 2014. Low gas inventories are leaving the market on edge, and volatility has roared back to the market. In this column only a week ago, I marveled at prices soaring to $3.50/MMBtu, which marked a 15 percent increase over the prior two months. However, in the last seven days, prices are up a further 30 percent. The factors behind the price increase are the same as they have been for quite a while now. U.S. natural gas inventories are at a 15-year...

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ADNOC to Invest $1.4 billion to Upgrade Bu Hasa Field

19th November 2018

The Abu Dhabi National Oil Company (ADNOC) has announced a $1.4 billion investment to upgrade and expand its Bu Hasa field, which will increase crude oil production capacity to 650,000 bpd. This is an important step towards delivery of ADNOC’s 2030 smart growth strategy that seeks to increase its crude oil production capacity and reduce cost to create a more profitable upstream business. An engineering, procurement and construction (EPC) contract has been awarded to Tecnicas Reunidas SA by ADNOC’s subsidiary, ADNOC Onshore, which operates the field. The works are expected to take 39 months to complete and the upgrade will...

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Deals Worth $80.9B Concluded in Upstream Oil and Gas in 3Q18

19th November 2018

A total of 362 deals with a combined value of US$80.9bn were registered in the upstream oil and gas industry in Q3 2018, according to GlobalData, a leading data and analytics company. Of the total value, US$44.5bn was registered in mergers and acquisitions (M&A) in Q3 2018, representing a significant increase of 77% from the US$25.1bn in M&A deals announced in Q2 2018. On the capital raising front, a total value of US$36.5bn in capital raising was announced in the upstream sector in Q3 2018, an increase of 19% from the US$30.7bn in capital raising announced in the previous quarter....

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Upstream Digitalization Could Save $75 Billion Annually

19th November 2018

Digitalization in upstream: show me the money, a new report from global natural resources consultancy Wood Mackenzie indicates the upstream sector could see annual cost savings of $75 billion annually from digitalization by 2023. The biggest benefit from digitalization would be the ability to uncover new resources, says Greig Aitken, principal analyst in Wood Mackenzie’s corporate analysis team. This may be from better processing of seismic data or gaining new understanding of well logs and chemical analysis. While the ultimate goal is for machine learning and artificial intelligence to process data and spot hydrocarbon-bearing reservoirs with an almost perfect success...

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Big Oil Reuses Platforms in Latest Cost-Cutting Trick

19th November 2018

(Bloomberg) — Oil companies have pushed through draconian cost cuts during the recent industry slump, but they’re not quite done yet. Spain’s Repsol SA unveiled plans to re-use its Gyda platform in Norway’s North Sea on another field, an unprecedented step for a fixed installation, according to the head of Repsol’s Norwegian subsidiary Vidar Nedrebo. Repsol has spent almost a year with partners Kvaerner ASA, Allseas Group SA and Subsea 7 SA studying ways to move the platform from its current location, make necessary modifications at shore, and transport it to a new field, Nedrebo told the Operators Conference in...

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Singapore bank loan growth to slow to 3% in 2019

12th November 2018

Trade tensions and higher interest rates will dampen borrowing. Loans extended by Singapore banks is poised to fall to 4% by end-2018 and 3% by 2019 as deepening US-China trade tensions and an upswing in interest rates continue to weigh in on sentiment, according to Fitch Solutions, “We believe that the loan growth outlook for Singapore commercial banks is poor due to a combination of worsening global conditions arising from trade tensions and higher borrowing costs, as well as strict property restrictions,” the research firm said in report. Loan growth at commercial banks has already tapered off to 4.5% in...

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Oil producing countries defer 2019 cuts until next month

12th November 2018

Abu Dhabi: Oil markets are well supplied and any decision regarding output cuts for 2019 will be taken at a crucial meeting in Vienna next month, ministers from Opec and non-Opec members said in Abu Dhabi on Sunday. Saudi Arabia’s Energy minister Khalid Al Falih said oil markets are adequately supplied and they will work hard to balance the markets. He also added that they will never guarantee a certain price. “There will be fluctuations in oil prices and inventories,” Al Falih told reporters at the Joint Ministerial Monitoring Committee meeting in Abu Dhabi. Ideally we don’t like to cut,...

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