Oil Production Levels News

OPEC and its allies, including Russia, can maintain their current cuts and not reduce outputs any more because there will be a crude oil demand surge later this year from changing shipping fuel standards worldwide.The OPEC+ countries will not be able to increase their collective oil production levels in the second half of 2019 without having a detrimental effect on oil prices. However, the production cuts required by OPEC+ in order to support prices need not be as much as 1.5 million barrels per day (bpd), according to Rystad Energy.That is contrary to what traditional supply-demand balances suggest, owing to a tight market for medium and heavy barrels and the fast-approaching shipping fuel changes known as IMO 2020…

Italian oil producer Eni began drilling the new well off the north coast of Alaska, becoming the first company to do so since 2015, reports Reuters. "New oil exploration in Arctic federal waters is underway this week with the spudding of a new oil well from an existing man-made island in the Beaufort Sea. Two Bureau of Safety and Environmental Enforcement (BSEE) personnel were on-hand Monday ensuring compliance with approved permits, federal regulations and safety standards as Eni U.S. Operating Co Inc began new well operations from Spy Island Drillsite in State waters," said a press statement from regulator U.S. Bureau of Safety and Environmental Enforcement (BSEE).

Vessel operating costs are expected to rise in both 2016 and 2017, according to the latest survey by international accountant and shipping consultant Moore Stephens. Repairs and maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 1.9 percent in 2016 and by 2.5 percent in 2017.

OPEC officials said all OPEC ministers are in favor of leaving oil production levels unchanged at an extraordinary meeting of the cartel scheduled for next month. Venezuelan Energy and Mines Minister Ali Rodriguez, currently OPEC president, said oil prices were behaving as he expected since the cartel imposed a target price band in March. Rodriguez said he did not expect any change in the band's $22 to $28 per barrel range for the OPEC export price basket this year.

The incoming Bush administration warned on Friday that an oil production cut by OPEC next week would lead to higher energy prices for U.S. consumers. OPEC members will gather Jan. 17 in Vienna, where they are expected to agree to a roughly 1.5 million barrel-per-day reduction in the cartel's oil production levels. "Anything that lessens (oil) supply at a time of high demand means higher prices for American consumers," a Bush transition spokesman said. President-elect George Bush has made increasing domestic oil production a top priority. U.S. oil output is at its lowest level in half a century and foreign oil imports account for about 55 percent of domestic petroleum supplies. Low petroleum supplies have led to high prices for crude oil, gasoline and heating oil.

It took patience, ingenuity and untold millions of dollars to heal the wounds Hurricane Katrina inflicted on Royal Dutch Shell's Mars platform, the most prolific oil-producing platform in the Gulf of Mexico. But nearly a year and a half after the storm pummeled the 36,500-ton structure with 175-mph winds and 80-foot waves that left dead fish and crumpled steel on its decks, the platform has surpassed its pre-Katrina oil production levels. The biggest step left to restore Mars to its pre-Katrina strength is the return of its drilling rig. Due in April, it will have a new 250-foot derrick atop a repaired 1,000-ton substructure that the storm ripped from its clamps and then slammed back onto the platform. And how.

The third meeting of INTERTANKO’s Latin American Panel convened in Miami on July 24 to discuss a wide-ranging agenda. Capt. Howard Snaith updated the Panel on recent changes and increased activity on issues concerning chemical tankers within the Association and further reported on recent discussions at MEPC 49, which culminated in a compromise proposal for revisions of MARPOL Annex II. Of particular interest to the region, it was reported that Brazil had signed an agreement for the use of CDI reports for Port State Control purposes. It was agreed that INTERTANKO would encourage other countries in the region to use both CDI and SIRE reports, either through the Viña del Mar - the Latin American Agreement on Port State Control - or by direct contact with maritime authorities in each country.

American Panel covered a wide-ranging and ambitious agenda. topics. Capt. in a compromise proposal for revisions of MARPOL Annex II. agreement for the use of CDI reports for Port State Control purposes. with maritime authorities in each country. world wide, the Panel was eager to hear the latest news from Venezuela. due to last minute changes in their schedule but Mr. able to summarise the current situation in the country. slowly recovering normal functionality. less operating at full capacity. for a longer period than necessary. double-check and re-confirm existing information and contacts. re-structured both on a functional and geographical level. Managing Director, Dr. previous week. and engaged in discussions to seek clarification on several issues.