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The Closing Bell: Stocks Fall As Federal Reserve Decision Sparks Growth Concerns
Oil News Oil Price FREE WEEKLY REPORT oilprice.com Evan Kelly News Editor, Oilprice.com 18/09/2015(excerpts) The Fed cited strong consumer demand, solid job gains, declining unemployment – all reasons that a rate increase is likely sometime soon. When that increase does occur, it will be the first increase in almost a decade. Crude oil prices barely budged on the news, trading slightly down. Goldman made headlines recently when it outlined a scenario in which oil prices would drop to $20 per barrel. Now the bank is outdoing itself with a prediction that oil will remain around $50 per barrel though 2030. For evidence, it points to the bust of the 1980s when oil prices did not rebound until the turn of the century.....there is a recipe for a rather strong rebound in oil prices in the coming years. Obviously, the big question is when that will happen. The glut could persist through this year and next, but calling for oil to remain near $50 per barrel for 15 years seems like a stretch. The $70 billion takeover of BG Group (LON: BG) by Royal Dutch Shell (NYSE: RDS.A) ran into a road block in Australia this week. Australian regulators decided to push off a decision on the merger by two months due to a wave of opposition from Australian businesses worried about higher costs of natural gas. Statoil (NYSE: STO) brought the first subsea compression plant in the world online this week. The subsea facility, located at Asgard in the Norwegian Sea, will increase production by around 306 million barrels of oil equivalent, boosting output from the aging field. ...the closer you can get to the well, the more oil and gas can be recovered. Usually, compression is done at the sea surface on a platform. This is the first gas compression facility at the sea floor. It is illustrative of an important emerging trend in the offshore oil industry. The U.S. House of Representatives is moving on legislation to repeal the decades-old ban on crude oil exports. After previously passing a subcommittee vote, the full House Energy and Commerce Committee passed the bill this week by a 31-19 vote. Next up is the full House vote, which could take place in late September. The White House came out against the legislation this week, arguing that the decision to allow crude oil exports should be left to the Department of Commerce. The hotly contested issue has caused a clash between the upstream energy sector and downstream refiners. WTI and Brent benchmarks. The spread between the two is narrowing, shrinking to its lowest level in eight months. For several years WTI had traded at a discount, owing both to the crude oil export ban in the United States as well as the resulting localized glut of oil trapped within its borders. Also, pipeline shortages led to oil being diverted into storage, pushing down WTI. But with new pipelines now in place, along with declining U.S. oil production, WTI is now converging towards Brent. And as the discount vanishes, so does the opportunity for U.S. oil exports. At the current spread, exports are largely uneconomical. The state-owned Colombian oil company Ecopetrol and Occidental Petroleum (NYSE: OXY) have announced plans to invest $2 billion over the next 10 years to boost production at the onshore oil field La Cira-Infantas. Finally, in a bit of natural gas news, this fall could see an uptick in natural gas consumption as several nuclear power plants go offline for refueling. The EIA projects that 9 percent of the U.S.’ nuclear power capacity is currently offline, a number that could grow this fall. Between September and December, around 30 reactors could undergo refueling maintenance http://oilprice.com/newsletters/free/opintel18092015
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Oil Price
FREE
WEEKLY REPORT oilprice.com Evan Kelly
News Editor, Oilprice.com
18/09/2015(excerpts)
The Fed cited strong consumer demand, solid job gains, declining unemployment – all reasons that a rate increase is likely sometime soon. When that increase does occur, it will be the first increase in almost a decade. Crude oil prices barely budged on the news, trading slightly down.
Goldman made headlines recently when it outlined a scenario in which oil prices would drop to $20 per barrel. Now the bank is outdoing itself with a prediction that oil will remain around $50 per barrel though 2030. For evidence, it points to the bust of the 1980s when oil prices did not rebound until the turn of the century.....there is a recipe for a rather strong rebound in oil prices in the coming years. Obviously, the big question is when that will happen. The glut could persist through this year and next, but calling for oil to remain near $50 per barrel for 15 years seems like a stretch.
The $70 billion takeover of BG Group (LON: BG) by Royal Dutch Shell (NYSE: RDS.A) ran into a road block in Australia this week. Australian regulators decided to push off a decision on the merger by two months due to a wave of opposition from Australian businesses worried about higher costs of natural gas.
Statoil (NYSE: STO) brought the first subsea compression plant in the world online this week. The subsea facility, located at Asgard in the Norwegian Sea, will increase production by around 306 million barrels of oil equivalent, boosting output from the aging field. ...the closer you can get to the well, the more oil and gas can be recovered. Usually, compression is done at the sea surface on a platform. This is the first gas compression facility at the sea floor. It is illustrative of an important emerging trend in the offshore oil industry.
The U.S. House of Representatives is moving on legislation to repeal the decades-old ban on crude oil exports. After previously passing a subcommittee vote, the full House Energy and Commerce Committee passed the bill this week by a 31-19 vote. Next up is the full House vote, which could take place in late September. The White House came out against the legislation this week, arguing that the decision to allow crude oil exports should be left to the Department of Commerce. The hotly contested issue has caused a clash between the upstream energy sector and downstream refiners.
WTI and Brent benchmarks. The spread between the two is narrowing, shrinking to its lowest level in eight months. For several years WTI had traded at a discount, owing both to the crude oil export ban in the United States as well as the resulting localized glut of oil trapped within its borders. Also, pipeline shortages led to oil being diverted into storage, pushing down WTI. But with new pipelines now in place, along with declining U.S. oil production, WTI is now converging towards Brent. And as the discount vanishes, so does the opportunity for U.S. oil exports. At the current spread, exports are largely uneconomical.
The state-owned Colombian oil company Ecopetrol and Occidental Petroleum (NYSE: OXY) have announced plans to invest $2 billion over the next 10 years to boost production at the onshore oil field La Cira-Infantas.
Finally, in a bit of natural gas news, this fall could see an uptick in natural gas consumption as several nuclear power plants go offline for refueling. The EIA projects that 9 percent of the U.S.’ nuclear power capacity is currently offline, a number that could grow this fall. Between September and December, around 30 reactors could undergo refueling maintenance
http://oilprice.com/newsletters/free/opintel18092015