ConocoPhillips, Hess Profits Rise
ConocoPhillips, Amerada Hess Corp. and Kerr-McGee Corp. posted gains in third-quarter earnings as surging energy prices more than made up for output disruptions caused by Hurricanes Katrina and Rita, Bloomberg reported. Net income at ConocoPhillips, the third-largest U.S. oil producer, jumped 89 percent to a record $3.8 billion, or $2.68 a share, the company said in a statement. Amerada Hess Corp., the No. 5 U.S. oil company, said its profit rose 53 percent to $272 million, or $2.60 a share. At Kerr-McGee, net income soared 48-fold to $359 million, or $3.09 a share. Houston-based ConocoPhillips and New York-based Hess are the first of the seven largest U.S. oil companies to report earnings for a quarter that saw crude, natural-gas and gasoline prices soar to new highs.
Shell Announces Strong Results
Oil giant Royal Dutch/Shell Group announced record fourth quarter profits, after a more than twofold jump in oil prices and as the benefits of its restructuring program continued to show through. Adjusted current cost net income soared by 173 percent to $2.235 billion in fourth quarter 1999, which was at the top end of analysts' forecasts, while net income of $2.582 billion compared with a loss of 3.739 billion the year before. Current cost net income for the full year rose 38 percent to $7.09 billion, after adjusting for special credits and charges. Exploration and production provided the main profit boost, hitting $1,507 million in the fourth quarter compared with a loss of $1,906 million in 1998 as crude prices soared.
U.S. Petroleum Inventory Drops, Oil Prices Soar Higher
Oil's eight-month rally hit yet another high today as dealers cited news that U.S. petroleum inventories had dropped to near-three-year lows as proof OPEC supply curbs were biting deep ahead of winter. Benchmark Brent crude blend touched $24.30 a barrel, a 33-month high, after the American Petroleum Institute said crude stocks in the world's biggest oil consumer fell by 3.7 million barrels last week to stand at their lowest levels in almost three years.
Venezuela Crisis Deepens, Oil Prices Soar
As the politically induced strikes continue to sweep Venezuela, oil prices jumped to a two month high, reflecting the lack of output from the world's fifth largest oil exporter. International benchmark Brent soared 86 cents to $28.07 a barrel by early afternoon in London, its highest level since October 17. U.S. crude futures jumped 64 cents to $29.08. The strikes have been spurred by a serious division among the Venezuelan people, half who are trying to force controversial president Hugo Chavez to resign, and half who staunchly support the embattled leader. Crude oil has risen by 20 percent in the past month because of the Venezuelan stoppage and the threat of a U.S. attack on Iraq.
Iron Ore Exports to China from Port Hedland hit record
Port is world's biggest iron ore export terminal; iron ore prices soared 80 pct in 2016. December iron ore shipments to China from Australia's Port Hedland terminal hit a record 37.4 million tonnes in December, boosted as users such as BHP Billiton and Fortescue Metals Group ramped up production. Overall shipments from the world's biggest iron ore export terminal also climbed to a record 43.9 million tonnes last month, according to the Pilbara Ports Authority. The previous record for iron ore exports to China was 35.5 million tonnes, while the overall record was 42.9 million tonnes.
Oil Prices Soar
World oil prices soared in volatile trading las Monday on short-term supply uncertainties and a question mark over whether OPEC producers would soon open their taps. International benchmark Brent crude futures traded on London's International Petroleum Exchange (IPE) stood 85 cents a barrel up, while U.S. light crude was up $1.20. Prices are at their highest since the Organization of the Petroleum Exporting Countries (OPEC) agreed in March to raise output by seven percent. Traders said a strike affecting production in Norway, the world's second largest exporter, combined with continued uncertainty over OPEC's next production move led to Monday's buying spree.
President Clinton Energizes Oil Price Debate
It’s really quite amazing how one year and an additional $21 per barrel of crude can change people’s attitudes. It was less than 12 month ago that the price per barrel of oil hovered around the $9-10 mark, and international officials across the globe pleaded with leaders of OPEC to trim production in an effort to bolster pricing, which had lagged for two years running. Today, however, the tune is far different. A cold winter in the N.E. U.S., combined with per barrel pricing over $30 has consumers and local legislators screaming for action, with obvious good effect. The Clinton administration responded to growing worries that oil prices are out of control by announcing on Wednesday more supplies were headed to U.S. ports, but cautioned that gasoline prices may move higher.
Maritime Shares Make A Comeback
Share prices in Oslo continued to rise during June and in the first six months of 1999 the Shipping Index rocketed 30.6 percent. The All Share Index is not far behind with an increase of 23.7 percent during the same period. Trading at the Oslo Stock Exchange has never been more active than in 1999 so far with the daily average turnover for the first half of the year at NOK 1,640 million. This is 27.1 percent higher than the average for the whole of 1998. On average 4,775 transactions were carried out each day during June.This is 42 percent higher than the average for last year.The Italian company Navigazione Montanari has offered NOK 60 per share in I.M. Skaugen (SKA), sending the stock up almost 40 percent and to the top of the winner list for June.
Fuel System Locks Help Prevent Theft
With prices soaring, petroleum is more than ever "liquid gold." Like other valuables, fuel tanks should be kept under lock and key. Perko makes it easy to retrofit a sturdy locking mechanism in the majority of their 1-1/2" vented and non-vented fills. The black plastic 0525 Fuel System Locking Insert comes with a high-strength zinc alloy lock cylinder. When slid into the fill, spring action retracts the cams, which then lock onto the hose bib once the device is fully inserted. A handy dual purpose key opens the protective metal fill cap and operates the lock.
UK Returns to Semi-Submersible Rig Building
Britain is to return to the world of semi-submersible rig building for the first time in two decades as prices soar and shipyards in South Korea run out of space. SeaDragon Offshore, a newly-formed company is to take over a former vessel construction facility on Teesside to build the first in a series of three drilling units worth up to $1.5b. As many as 600 jobs could be created at the Haverton Hill Shipyard by SeaDragon which plans to float on either the London or the Oslo stock exchange within 12 months. SeaDragon is backed by Lloyds TSB and has brought in some of the most credible names in the offshore world, including KCA Deutag, a part of the London-quoted Abbott Group, plus naval architects Moss Maritime.
Offshore Drilling Sites Could Expand
As the clean-up and recovery in the wake of Hurricane Katrina proceeds, industry and lawmakers are apparently considering opening additional offshore sites for energy exploration and production to minimize disruption to the nation’s energy supply chain in the event of future natural disasters. According to a report at The State.com – South Carolina’s Home Page, some South Carolina lawmakers are pushing for a change in federal law that would allow drilling for natural gas off the state’s coast. Another report from the Boston Herald reports that some Republicans reportedly may advance a plan to let states sponsor exploration for oil and gas in federal waters off their coasts now closed to drilling.
China Fails to Overturn WTO Rare Earths Ruling
China lost an appeal at the World Trade Organization in a case brought by the United States, the European Union and Japan to challenge China's restrictions on exports of rare earths, according to a WTO Appellate Body ruling published on Thursday. "... China has not demonstrated that the export quotas that China applies to various forms of rare earths, tungsten and molybdenum by virtue of the series of measures at issue are justified ... " the document's conclusion said. China produces more than 90 percent of the world's rare earths, which are key elements in defence industry components and modern technology from iPhones and disk drives to wind turbines. It imposed strict export quotas in 2010, saying it was trying to curtail pollution and preserve resources.
OPEC Restrictions Expected To Send Oil Prices Soaring
Resurgent world oil prices will blaze towards the highest level since the Gulf War this winter as key producers stick to strict supply curbs, a Reuters survey found last week. Analysts and consultants ruled out any chance that export cartel OPEC's ministerial meeting this month might relax output limits that have already fostered a stunning price rally to 23-month highs. If the northern hemisphere winter proves harsh world benchmark Brent could balloon to post-Gulf War highs at $25 a barrel as the supply stranglehold demolishes global stocks of spare stored oil, they added. "It could go over $25 a barrel as inventories keep tightening, especially if there is a cold snap. The Y2K factor could tighten it too," said Peter Hitchens of Williams de Broe.
U.S. Petroleum Inventory Drops, Oil Prices Soar Higher
Oil's eight-month rally hit yet another high Sept. 29 as dealers cited news that U.S. petroleum inventories had dropped to near-three-year lows as proof OPEC supply curbs were biting deep ahead of winter. Benchmark Brent crude blend touched $24.30 a barrel, a 33-month high, after the American Petroleum Institute said crude stocks in the world's biggest oil consumer fell by 3.7 million barrels last week to stand at their lowest levels in almost three years. The underlying picture was even tighter because a slight rise in isolated U.S. West Coast stocks boosted the headline figure and masked a whopping 6.4 million barrel drop in key reserves east of the Rockies. Oil stocks in the U.S.
News: Steel, Ship Prices Soar as Tankers Stay Firm
Soaring steel prices are now a major concern for leading shipbuilders. Uncertainty about spiraling material costs is even causing some yards to defer new orders, market reports indicate. "The lack of steel in some shipyards of the three major shipbuilding nations is causing newbuildings for 2007 and 2008 to be delayed," says New York tanker broker Poten & Partners in a recent market report. "Some shipyards are not accepting any more ship orders beyond late 2007 or 2008 delivery because of the lack of berth availability, insecurity stemming from the dollar's weakness, as well as uncertain steel cost," the broker says. China may as well build ships, says Poten, as "they're taking all the steel".
Steel, Ship Prices Soar
Soaring steel prices are now a major concern for leading shipbuilders. Uncertainty about spiraling material costs is even causing some yards to defer new orders, market reports indicate. “The lack of steel in some shipyards of the three major shipbuilding nations is causing newbuildings for 2007 and 2008 to be delayed,” says New York tanker broker Poten & Partners in a recent market report. “Some shipyards are not accepting any more ship orders beyond late 2007 or 2008 delivery because of the lack of berth availability…
CMA CGM Reports Encouraging Outlook for 2012
CMA CGM, the world’s third largest container shipping group, reported revenue of U.S. $14.87 billion for the year ending December 31, 2011, a 4% increase on 2010. Volumes carried increased by 11%, outperforming the market’s 6.5% increase and reaching a record high of 10,016,000 teus. The market environment was challenging, shaped by overcapacity and the steep run-up in oil prices, with per-tonne bunker prices soaring 34% over the year. CMA CGM nevertheless enjoyed a satisfactory operating performance, thanks to its extremely efficient fleet, global network and sustained cost discipline. EBITDA stood at U.S. $711 million, down from 2010, a year in which the entire container shipping industry reported record profits. The Group ended the year with a consolidated net loss of U.S. $30 million.
No New Australian LNG Projects Doesn't Mean No New LNG
Conventional wisdom in the liquefied natural gas (LNG) sector is that no new projects will be built for several years, given the vast cost can't be reconciled with the current low prices. This view has led some in the industry to predict that the market will flip back to a structural shortage sometime in the early to mid-2020s, once again sending prices soaring as new supply takes so long to be built and become operational. The cancellation or deferment of investment decisions on several projects in Australia, Canada, the United States and elsewhere seems to perfectly illustrate the view that no new LNG will be coming to market once the plants currently under construction are completed.
OPEC Strives For $22-$28 Barrel
Venezuelan Energy and Mines Minister Ali Rodriguez said that OPEC had agreed to defend a price band of $22 to $28 per barrel for its basket of crudes in a bid to stabilize prices. Rodriguez reportedly said the oil cartel would automatically raise or cut production by 500,000 barrels per day (bpd) if prices move outside of the band for more than 20 days. Nine members of OPEC agreed this week in Vienna to increase output by 1.45 million bpd from April 1, to curb soaring prices.
Iraq's Southern Exports Unaffected by Conflict
Southern exports average almost 2.60 million bpd; Exports close to record rate seen in May. Lack of Kirkuk northern exports limits overall supply. Iraq's oil exports from its southern terminals on the Gulf, far from the fighting in its north, have increased so far this month as bad weather and logistical delays subsided, approaching a record high reached in May. Three months after an advance by Islamic State into northern Iraq sent oil prices soaring to $115 a barrel, the fighting has not reduced Iraq's exports from the south, the main outlet for its crude to world markets. Exports from Iraq's southern terminals have averaged 2.58 million barrels per day (bpd), according to shipping data for the first 23 days of September tracked by Reuters.
Indonesia, CNOOC Talks End in Deadlock
Early renegotiation of gas selling price with China National Offshore Oil Company (CNOOC) has ended in deadlock as the ceiling price proposed by CNOOC was seen as too low, according to Asian Pulse. Indonesia has signed a long term contract to supply China's Fujian province with 2.6 million tons of liquefied natural gas (LNG) annually from Tangguh, Papua. Under the agreement in 1992 the LNG price was tide with crude oil price or around $2.4 per MMBTU based on a ceiling price of $25 per barrel of crude oil. The ceiling price is no longer acceptable to Indonesia with the soaring crude oil price at present. Currently the LNG price is around $8 per MMBTU based on a crude oil price of $65 per barrel.
Rising Bunker Prices To Push Worldscale Rates Up
Increasing bunker prices will push Worldscale tanker rates up by around 1.5 percent next year but prices on some routes will fall due to lower port dues and exchange rate fluctuations, the Worldscale Association said. The average bunker fuel price used for rate calculations would rise to $86.50 in 2000, from $82.75 in 1999, but varying port charges and currency exchange rates would mean some Worldscale route assessments fell. Bunker prices have soared this year to around a current $130 a ton from about $55 in February, but the Worldscale assessment is based on an average of the period between October 1998 and the end of September 1999.
Government, Oil Majors Discuss Royalties
While some companies, such as Exxon Mobil, reportedly believe the lease contracts should be honored, others, including Shell, reportedly are open to a dialogue on the matter. The error in the 1998-99 lease contracts for deepwater drilling in the Gulf of Mexico could cost the government $10 billion in lost royalty payments given the current price of crude oil and natural gas, according to an analysis by the Government Accountability Office, Congress' auditing agency. The drilling-lease contracts, issued at a time when oil and gas prices were low, allowed leaseholders to avoid royalty payments as a way to spur drilling in the deep waters of the Gulf. But they also were supposed to have language that the royalty relief would end if oil prices exceeded a certain level.