Derrick Digest for Jan. 13, 2017: Watching OPEC and non-OPEC members’ crude intentions following landmark deal
The Derrick Digest is a weekly collection of curated content, based on events from across the oil and gas industry, that caught our eye at Pennine Petroleum Corporation. Enjoy and share!
Jan. 6, 2017
Will they or won’t they?
The global crude watch ramped up this week, as observers keep tabs on Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members alike—and whether they’re honoring their Dec. 10 agreement to curtail oil production.
Russia and Kazakhstan say they’ve cut production by 130,000 and 20,000 barrels a day, respectively. That’s more than a quarter of the reduction promised by non-OPEC nations in Vienna.
“If the cuts get confirmed, this is definitely positive, as compliance improves,” UBS Group AG analyst Giovanni Staunovo, based in Zurich, tells Bloomberg. “We should soon see inventory draws materializing.”
Meanwhile, Iraq claimed this week that it has trimmed its own production by 160,000 barrels a day, and expects to fully implement its pledge of 210,000 fewer bpd by the end of January, said national Oil Minister Jabbar Al-Luaibi.
Shipping data, however, shows that Iraq is set to boost its exports from ports in its southern province of Basra.
“If it’s really happening, it should soon be visible via lower exports” due to Iraq’s limited storage capacity, says Stauvano. “Let’s see if it shows up.”
Other recent announcements included:
Oman’s Jan. 3 pledge to cut 45,000 bpd this month down to 970,000;
Azerbaijan’s planned cut of 35,000 bpd;
Venezuela’s promise to slash 95,000 barrels a day starting Jan. 1; and
Compliance from Saudi Arabia, the United Arab Emirates, Qatar and Kuwait, according to comments by Kuwait’s OPEC governor Nawal Al-Fezaia on Monday.
Tackling CO2, chasing COSIA’s big XPrize
Canada’s oilsands producers are putting their money where their mouths are.
That’s big money, actually—the $20 million NRG COSIA Carbon XPrize, a global competition to create technology that converts carbon dioxide into useful products.
The big prize is funded by Canada’s Oil Sands Innovation Alliance (COSIA) and U.S. power corporation NRG, and nine Canadian companies are among the 27 semifinalists recently announced.
“In energy and climate, few ideas are as potentially transformative as the idea of turning the economics of CO2 and climate change on its head,” Marcius Extavour, director of technical operations for the NRG COSIA Carbon XPrize, tells the Canadian Press.
The 27 semifinalists include teams working on technologies for power plants powered by natural gas and coal. Ten finalists will be announced in 2018, while the winner will be unveiled in 2020.
“Through the Carbon XPrize, these global teams are moving forward to address CO2 in a truly exciting way,” says COSIA chief executive officer Dan Wicklum. “These teams perfectly represent the spirit, passion and promise that take us from problems to solutions.”
New Energy East review panel set
Canada’s National Energy Board has restarted the engine on its review of the Energy East pipeline.
The NEB has officially appointed a new three-member Energy East panel, which will determine the fate of TransCanada’s proposed 4,500-kilometer cross-country pipeline.
The panel includes:
Don Ferguson, a former New Brunswick civil servant;
Marc Paquin, a Quebec-based attorney; and
Carole Malo, a former executive at engineering firm SNC-Lavalin.
The NEB had said last fall that its stalled review of the Energy East pipeline had already cost $685,000 before previous panel members resigned.