BOE Report

OPEC to stick to supply curbs despite oil rally

LONDON/DUBAI, March 28 (Reuters) - OPEC and its allies look set to keep their deal on cutting oil supplies for the rest of 2018, five sources familiar with the issue said, although some producers are starting to worry that high prices may be giving too much stimulus to rival output. OPEC, Russia and several other non-OPEC producers have curbed output since January 2017 to erase a global glut of crude that had built up since 2014. They have extended the pact until the end of 2018, and meet on [Read more]

Canadian railways in a catch-22 over crude shipment

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Canadian railway operators see a lucrative opportunity to transport more crude oil to the United States as a rise in output force producers to find new routes to its southern neighbour. However, their need for long-term contracts and the pressure to move a surplus of grains in the country is making it hard to cash-in on the prospect. Canada moves about 95 percent of its oil by pipelines, which are currently full. A 20 percent rise in crude production in the past five years has increased [Read more]

U.S. drillers add oil rigs for second consecutive week

(Reuters) - U.S. energy companies added oil rigs for a second week in a row as crude prices hover near three year highs, prompting drillers to boost spending plans for this year. Drillers added four oil rigs in the week to March 23, bringing the total count to 804, the highest level since March 2015, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday. The U.S. rig count, an early indicator of future output, is much higher than a year ago when [Read more]

U.S. natural gas Henry Hub premium over Marcellus on track for 5 year low

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The premium of U.S. natural gas prices at the Gulf Coast over the Marcellus and Utica shale in Appalachia was on track to fall to its lowest since 2013 as more pipelines enter service, boosting takeaway capacity from the Northeast region. The new pipes have enabled producers to sell more of their low cost fuel from the pipeline-constrained Pennsylvania, West Virginia and Ohio region to other parts of the country where prices are higher. The premium of the Henry Hub benchmark in Louisiana [Read more]

Petronas says involved in TransCanada’s proposal to build gas pipeline extension

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Malaysia's Petronas said on Friday it is one of the producers involved in TransCanada's proposal to expand a pipeline system that would open up more markets for the energy company's gas produced in Western Canada. Pipeline operator TransCanada in February said it would go ahead with the C$2.4 billion ($1.9 billion) expansion of its Nova Gas Transmission Line (NGTL), which moves gas from Alberta and British Columbia to markets all over North America. In an emailed statement to Reuters, [Read more]

Alberta sees $8.8 billion budget deficit in 2018-19

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Alberta said on Thursday it will run a smaller-than-expected budget deficit in the coming fiscal year and vowed to balance the books in five years as it tightens spending. Alberta, home to Canada's vast oil sands, said it would run a deficit of $8.8 billion in the fiscal year 2018-19, less than its forecast of $9.7 billion in 2017's budget. [Read more]

LNG Canada on track for final approval this year

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The LNG Canada liquefied natural gas project is on track for a final investment decision (FID) later this year, an official for the province of British Columbia said on Thursday. The British Columbia-based project led by Anglo-Dutch Royal Dutch Shell in partnership with PetroChina ,South Korea's KOGAS and Japan's Mitsubishi Corp has an estimated development cost of C$40 billion. A FID was expected in late 2016, but was delayed due to falling oil and gas prices between 2014 and 2016, which [Read more]

Setback for Trump administration after tepid offshore oil lease sale

(Reuters) - Oil and gas drillers bid modestly on Gulf of Mexico acreage in the largest lease sale in American history on Wednesday, dealing a setback to the Trump administration’s efforts to rapidly pump up investment in the region. The Interior Department had offered up a record 77 million acres (31.2 million hectares) for development in the Gulf with discounted royalty rates on the shallower tracts as part of a broader effort by President Donald Trump’s administration to ramp up U.S. fossil [Read more]

U.S. actively looking into Venezuelan oil sanctions: official

WASHINGTON (Reuters) - The Trump administration is actively exploring options to impose sanctions on Venezuela’s oil sector, a senior U.S. official said on Monday, after the White House issued an executive order barring the use of Venezuelan cryptocurrencies. “We are considering all options, including oil sector sanctions options,” a senior administration official told reporters on a conference call. “We are actively considering what steps we want to take and what the best timing is to [Read more]