West Africa Could Lead The World's Next Production Boom

During the early 1970s, Saudi Arabia cut production as a reminder that it held the cards to the world’s petroleum resources. What the swing country did not count on was the slew of development and production that would subsequently take place in the North Sea. As a result, a new oil supply was born far away from the Middle East.

Fast forward to today: With oil saturating the market again, Saudi Arabia has kept its spigots on this time to try and prove once again its place on top of the hydrocarbon pyramid. Despite its effort to slow production – primarily from shale in the United States – there is still room for surprise in the oil marketplace.

The small offshore oilfields of West Africa, if exploited properly, could become the next big economical play even as oil prices hover around $60 a barrel, said Keith Millheim, a director at Atlantis Offshore, an offshore technology company focused on well testing, production and drilling. And, all it takes is one adventurous company to get the ball rolling.

Cheap Oil Is 'Bad' for the Economy

It's been about a year since oil prices started their historic drop, falling from above $100 a barrel to a bottom of about $45 in March. After creeping back to around $60, prices are shaky again amid news of a nuclear deal with Iran and record Saudi production.

And low oil prices are good for growth, right?

OPEC Shows It Still Matters, and Right Now It’s Bearish for Oil

The last time OPEC met, its decision to leave output unchanged cast doubt on the group’s relevance.

That was a little premature.

From the ministers’ market-moving comments to the array of oil executives gathered in Vienna to court new ventures, the Organization of Petroleum Exporting Countries showed no loss of stature in the run-up to Friday’s meeting, at which it again decided to maintain its current output target. While OPEC has ceded the role of adjusting supply to balance the market, its strategy of keeping up production is still driving prices lower now -- and possibly higher later on.

'What If' Technology Rapidly Simulates Offshore Oil Spills

New software developed by scientists in the US could prevent future hydrocarbon spills and accelerate the response to those that do occur. The team behind the technology explains more.

New software developed by scientists at the US Department of Energy's (DOE's) National Energy Technology Laboratory (NETL) in the US could help prevent future hydrocarbon leaks and is already providing a much better understanding of how leaks behave in different offshore scenarios, potentially speeding response times to spills if and when they do occur.

The Blowout and Spill Occurrence Model, or BLOSOM, is able to rapidly simulate offshore spills in hypothetical 'what if' scenarios, taking into account everything from ocean currents to the volume of the leak, and may also, when used in tandem with other DOE tools, be able to prevent incidents in the future by identifying trends and technology gaps that contribute to a higher risk of spills.

Elly Earls caught up with Kelly Rose, Lawrence Sim, Lucy Romeo, Joe Umhoefer and Jason Vielma, the NETL's Offshore Integrated Assessment Modelling (IAM) team and the brains behind the technology, to find out more about how BLOSOM works and the impact it could have on future spill prevention efforts.

Crude Production Growth to Slow, Could Open Up To A Future Of Stable Price

Non-OPEC liquids growth potential of 5.5 MMb/p over the next five years has been reduced by over 2 MMb/d to 3.3 MMb/d, according to forecasts by energy analysts Rystad Energy.

The Norwegian firm’s research shows investments in oil and gas production are estimated to drop 20% in 2015, compared to 2014. Outside OPEC, US$200 billion in yearly capex is considered to be axed over a two-year period.

Top 10 Oil Producing Countries In Africa 2015 (Current)

The year thus far has seen a lot of fluctuations per country production and a large effect coming in from the drop in oil prices by over 60% in November 2014. The withdrawal of investments from oil and gas projects across the continent have not been so surprising owing to issues ranging from the current oil price, civil unrest, unfavourable policies and diverse politically uncertain scenarios.

TOTAL Hits 2 Billion Barrels Cumulative Oil Production Milestone Offshore Angola

French oil company Total has said today it has achieved the significant milestone of producing a cumulative two billion barrels from its operated deep offshore Block 17 located 150 km off the coast of Angola.

With the recent start up of CLOV, Block 17 has become Total’s most prolific site with production of over 700,000 barrels per day, the company has revealed.

OPEC Not Likely To Back Down On Maintaining Current Production

When Saudi Arabia argues next week that OPEC should keep up production to fight the rise in U.S. shale oil, prices will be on its side.

Crude plunged for eight of nine weeks prior to the group’s November gathering, when the kingdom faced down opposition from the majority of fellow members, who advocated output reductions to tackle a global glut. With oil companies around the world cutting investment, U.S. output peaking and prices up, Saudi Arabia’s strategy will be extended at OPEC’s semiannual meeting on June 5, say Societe Generale SA and Bank of America Corp.

Oil prices have recovered more than 40 percent from a six-year low in January as U.S. production eases from the highest in more than four decades. The rebound will help vindicate the approach taken by Saudi Arabia as it steers the Organization of Petroleum Exporting Countries to favor market share over prices in a bid to drive out high-cost producers.

14 Drill-Ready Exploration Sites Discovered In Niger

Energy firm Savannah Petroleum has announced that 14 drill-ready exploration sites with prospective oil resources of 215 million barrels were found in Niger. The prospects were found following detailed 3D seismic mapping over a 260-square mile area in the R1/R2 permit region, which is situated in the Agadem Rift Basin of southeast Niger. 

Erin Energy's Oyo-8 Well Offshore Nigeria Exceeds Expectations

Independent oil company Erin Energy Corporation announced Monday that its Oyo-8 well offshore Nigeria has exceeded expectations by producing a stable rate of 7,080 barrels of oil per day. 

Erin Energy is the operator of Oyo-8 and holds a 100 percent interest in the well. The company is currently undertaking drilling and completion operations on its Oyo-7 development well and expects to achieve first oil production from the site in the next few weeks. 

Erin Energy Senior Vice-President of Exploration and Production Segun Omidele commented in a company statement: “We are pleased with the Oyo-8 well’s performance and delighted that well parameters are stable. We plan to continue this very cautious well management approach and expect to bring Oyo-7 on production in a similar manner. We are advancing both our development and exploration work offshore Nigeria and look forward to an exciting second half of 2015.”

Millions of Barrels of Oil Are About to Vanish

Millions of barrels of untapped oil that U.S. shale drillers discovered during the boom years are about to disappear from their inventories.

Six years ago, the industry pushed the Securities and Exchange Commission to make it easier for companies to claim proved reserves for wells that wouldn’t be drilled for years. Some prospects considered sure-things when crude was $95 a barrel are money losers at today’s $60. When crude crashed in 2008, 44 U.S. companies wiped 630 million barrels from their books.

Norway Outstrips Russia as Western Europe’s largest Gas Supplier

Norway has overtaken Russia in terms of European gas supply, having delivered more gas to Western Europe in the first quarter of 2015, according to data from gas operators.

Norway surpassed Russian gas exports to Europe for the first time since a brief period in 2012, Reuters reported Friday comparing the figures released by Gassco and Gazprom.

Lucius: From design to first oil (Video)

Anadarko, one of the largest independent leaseholders and producers in the deepwater Gulf of Mexico, has launched a video, or better yet, a movie, showing a long, but interesting process of bringing its Lucius development into production.

The film presents the project from its early beginnings and design selection, through construction of the Lucius production platform, to its first oil in the U.S. Gulf of Mexico.

Final Investment Decision (FID) for the project was made in December 2011.

Construction of the platform was carried out in two parts: Lower, truss spar, was made by Technip in Finland, and the topside was built in Texas.

The Lucius truss spar, Anadarko’s largest, is today located in 7100 feet of water, in Keathley Canyon 875, 236 miles offshore in the Gulf of Mexico. First oil from the platform started flowing three years after the FID, in January 2015.

In its first quarter results for 2015, Anadarko said it continued to ramp up production at the Lucius spar toward its design rate of 80,000 barrels of oil per day.

Bourbon’s Crew Set Free After Kidnapping in Nigeria

Three sailors kidnapped in April offshore Nigeria have been released.

Bourbon, a France-based provider of offshore support vessel has confirmed that the 3 Nigerian crew members abducted on board the Surfer 1440 off the coast of Nigeria on April 8, 2015, have been set free.

“They are in good health and arrived at Port Harcourt on May 8, 2015. This news comes as a great relief to all BOURBON employees as a whole, who share the joy of the families. For obvious reasons of confidentiality, BOURBON shall not make any further comment.”

Eland Gets Go-Ahead for OML 40 Operatorship

Junior energy firm Eland Oil & Gas reported Monday that its Nigerian joint venture company has received consent from the Department of Petroleum Resources (DPR) to operate the OML 40 license, onshore Nigeria. 

TECHNOLOGY REVIEW: Norway’s SINTEF "Smart" Pipeline

Researchers at Norway’s SINTEF together with a consortium of industrial partners have developed technologies to enable real-time condition monitoring reports from within pipelines to be transmitted to shore.

The Research Council of Norway-supported SmartPipe technology carries out condition monitoring in real time. This is achieved by installing belts around the pipelines packed with a multitude of sensors which measure pipewall thickness, tension, temperature and vibration.

Exxon Angola Kizomba Project Starts Production

BP confirmed today the start of oil production from the Exxon Mobil-operated Kizomba Satellites phase 2 development in Block 15, offshore Angola.

The deepwater project is expected to produce around 70,000 barrels of oil per day at peak, and is expected to increase total daily Block 15 production to 350,000 barrels.

Oil Prices to Stay Weak for at Least a Year - Reuters Poll

Oil is likely to stay relatively weak for at least the next year, a Reuters poll forecast on Thursday, suggesting a slowdown in oil production in the United States will not be enough to offset a global supply glut.

Reuters monthly survey of 32 analysts predicted North Sea Brent crude would average $60 a barrel in 2015, up 80 cents from the projection in last month's survey.

Not All Doom and Gloom for South Africa as Shell Pulls Out

EDISON Research believes Royal Dutch Shell’s “pull-back” from South Africa is not the harbinger of doom for the country’s nascent shale gas industry analysts have predicted, as there’s more to the super-major’s decision than meets the eye.

Shell announced in March it was putting its South Africa shale gas exploration program on hold and pulling its shale gas head, Jan-Willem Eggink, out of the country – with more “highly skilled staff” to follow him – as it continues to seek an exploration licence.

Shell cited falling oil and gas prices and the need for greater clarity on legislation and technical regulations before deciding on its next steps.

Eni Commences Production at Cinguvu Oil Field in Block 15/06 Off Angola

Italy's Eni S.p.A. announced Wednesday that it started production two weeks ahead of schedule at the Cinguvu oil field, from the West Hub Development Project in Block 15/06 in the Angolan Deep Offshore, approximately 217 miles (350 kilometers) northwest of Luanda and 81 miles (130 kilometers) west of Soyo. The start-up follows the achievement of West Hub’s first oil through Sangos field start-up, during last November 2014. 

Seplat Records Drop In 1Q Profits, Pins It On Lower Oil Price

Seplat Petroleum on Tuesday posted a 47 percent drop in first quarter pretax profit, blaming lower crude prices and pipeline shutdowns in Africa's biggest oil producer. The oil and gas exploration firm said its oil price during the first three months to end-March averaged $52.8 per barrel, booking a premium of $1.52 per a litre, compared with $112.9 bbl a year earlier.

Saudi’s Solution to Global Oil Glut: Pump Even More Crude

Saudi Arabia has a response to the global surplus of oil: Raise output to near-record levels and then pump even more.

The world’s biggest oil exporter, having abandoned last year its role of keeping global markets in balance, now has incentive to maximize output and undermine rival producers by using its reserve capacity, according to Citigroup Inc. and UBS AG. Just meeting its own domestic demand this summer will require a lot more fuel, others estimate.

Billions at Risk for Ghana Oil Firms on Ocean Boundary Ruling With Ivory Coast

Ghana's decision to seek arbitration in a dispute with Ivory Coast over an oil-rich basin in the Atlantic could prove costly for the country and a consortium led by Tullow if a court halts development there.

The International Tribunal for the Law of the Sea will rule on Saturday on Ivory Coast's February request for a moratorium on activity in the basin. The decision is part of legal proceedings on a maritime border dispute sought by Ghana's President John Dramani Mahama in September.

Although many expect the dispute to be ultimately settled in Ghana's favor, analysts say a ruling that prevented the $4.9 billion offshore TEN oil and gas field opening in mid-2016 would be a further blow to the battered Ghanaian economy.

Top Oil Traders Get Boost To Ramp Up Volumes

Some of the world's biggest oil trading houses say they expect increased volumes this year as a fall in oil prices ties up much less capital for trading than a year ago.

Trading oil is expensive and requires big players to have billions of dollars of credit lines with dozens of banks, but a steep drop in oil prices means the value of a mid-sized cargo of crude oil has fallen from $115 million to $60 million and has therefore become cheaper to finance.

The development has a slight downside, as traders are under-utilising banking lines and banks generally don't like maintaining unused credit lines.

Half of U.S. Fracking Companies Will Be Dead or Sold This Year

Half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies, an executive with Weatherford International Plc said.

There could be about 20 companies left that provide hydraulic fracturing services, Rob Fulks, pressure pumping marketing director at Weatherford, said in an interview Wednesday at the IHS CERAWeek conference in Houston. Demand for fracking, a production method that along with horizontal drilling spurred a boom in U.S. oil and natural gas output, has declined as customers leave wells uncompleted because of low prices.

Oil Prices to Stay Low - Nigeria

Oil prices are likely to stay low for a long time after falling more than 40 percent in the past year, said officials from two OPEC nations.

Nigeria warned that oil prices, currently at around $60 a barrel, probably won’t recover to the 2011-2013 level of more than $100 a barrel.

“You forecast at your own risk, but it seems to me that we should be regarding this as a permanent shock,” Ngozi Okonjo-Iweala, the Nigerian finance minister, said on a panel discussion Sunday in Washington near the end of the International Monetary Fund’s spring meetings. “We should prepare our economies for that eventuality.”

CAMAC awaits Oyo well production. Changes name to Erin Energy

CAMAC Energy Inc. has informed that the Floating Production, Storage, and Offloading vessel (FPSO) Armada Perdana will be ready for production from the Oyo-8 well, offshore Nigeria, in one week’s time.

The owner of the vessel, Malaysia’s Bumi Armada Berhad, informed the company that the renewal of the FPSO’s class certification is now expected to be completed by April 24, 2015.

According to CAMAC, the Oyo-8 well, located in the Oyo field offshore Nigeria, is ready to start production into the FPSO upon the vessel’s class certificate renewal.

Looking Beyond Iran's Sanctions - Iran's Tantalizing Oil Dynamics

Iran contains some of the largest and most attractive petroleum resources in the world, so any easing of sanctions could have a major impact on oil and gas markets in the second half of the decade.

Iran's possible re-emergence as a major exporter would force a re-ordering of the world oil market both because of the country’s location on the cost-curve and the quality of its oil.

Iran’s proved oil reserves of 160 billion barrels, almost 10 percent of the world total, rank it fourth after Venezuela (300 billion barrels), Saudi Arabia (265 billion barrels) and Canada (175 billion barrels), according to BP.

Could OPEC See Individual Nation Quotas Re-installed

The then dominant quota system of per-country set margin output for OPEC member nations has since been put to sleep tracing back to 2008. But suprisingly it's one aspect member nations might have to re-consider following the happenings in the oil industry at the moment. This is fueled mostly for the recent developments arising from the Iran nuclear deal and a possible revoking of the supply embargo levied on it's oil export.

Definitely a proposal to reintroduce quotas would spark a fierce debate in the Organization of the Petroleum Exporting Countries as national prestige and market share are at stake. After refusing to cut output last year, OPEC is pumping much more than its overall output target of 30 million barrels per day (bpd) because of record Saudi Arabian output, higher Iraqi exports and a partial return of Libyan crude.

Today's Oil Industry: Sack the Bottom to Feed The Top

We all know that this year has been one of steadfastness as a worker in the oil and gas industry (exception being in the case of the executives of course). Job cuts to minimise cost has been the anthem on the lips of many following the slash in the oil prices coming into this year, with another eye keen on the creation of more efficient methods. As technology transition and innovation is never an immediate solution the industry has been pulled into what can be described as a massive scale downsizing of employees in other to stay afloat. Contracts are being scrutinized and re-scrutinized to ensure effective cost savings implementation strategies and only the best of hands are being "greased". 

Brent Crude Hits 2015 High as US Output Slows

Oil rose more than 3 percent on Thursday, pushing Brent crude to a 2015 high above $63 per barrel on increasing evidence that U.S. production is peaking, balancing a market that has been in heavy oversupply for more than a year.

Oil prices collapsed in the six months to January, pushing Brent down more than 60 percent to almost $45 a barrel.

But the market has gradually recovered this year as much lower prices have discouraged oil exploration and production, especially in the United States.

Shale Output Is Falling Faster Than Expected

Shale drillers will see production drop sooner than expected under a U.S. government forecast, a momentum change that hints at an eventual price rally.

Just five months after Saudi Arabia put the market into a tailspin by refusing to cut supply despite a global glut, the shale oil industry will record its first monthly dip since U.S. officials began weighing output in 2013.

The projected production drop is small, just 1 percent. Yet investors took note, pushing oilfield stocks to the top five spots in the Standard & Poor’s 500 Index on Tuesday, led by rig operators Ensco Plc and Diamond Offshore Drilling Inc. The decline lags the idling of rigs because of a backlog of already-drilled wells that have gradually been coming online.

OPEC Might Just be the Largest Growing Output Hub in the Next 4 Years

OPEC production climbed by the most in almost four years as Saudi Arabia, Iraq and Libya boosted output amid a stronger outlook for global oil demand, according to the International Energy Agency.

The Organization of Petroleum Exporting Countries raised output by 890,000 barrels a day to 31.02 million a day in March, the biggest monthly gain since June 2011, the IEA estimated. Preliminary data suggest output may rise further this month, it said. The agency cut its prediction for U.S. and Canadian oil supply growth in the second half of the year.

More Balanced Oil Market Expected in 2nd Half

Professional commodity traders watch spreads (differences between the prices for adjacent futures contracts) rather than spot prices as the best indicator of the balance between supply and demand.

In crude, the narrowing spreads for both Brent and West Texas Intermediate (WTI) indicate a closer balance between supply and demand in the second half of the year than in the first.

MILESTONE ALERT: World’s Longest Well Completed at Chayvo Field

Rosneft, as part of Sakhalin-1 Consortium, has completed drilling of the “world’s longest well” at the Chayvo field, off the coast of Sakhalin Island.

O-14 production well was drilled with Orlan drilling platform in direction of the field’s south-eastern point. According to Rosneft, the well has the world-record measured depth of 13,500 meters and a horizontal reach of 12,033 meters.

Can the Shale Oil Boom meet it's End in May?

The shale oil boom that pushed U.S. crude production to the highest level in four decades is grinding to a halt.

Output from the prolific tight-rock formations such as North Dakota’s Bakken shale will decline 57,000 barrels a day in May, the Energy Information Administration said Monday. It’s the first time the agency has forecast a drop in output since it began issuing a monthly drilling productivity report in 2013.

Deutsche Bank AG, Goldman Sachs Group Inc. and IHS Inc. have projected that U.S. oil production growth will end, at least temporarily, with futures near a six-year low. The plunge in prices has already forced half the country’s drilling rigs offline and wiped out thousands of jobs. The retreat in America’s oil boom is necessary to correct a supply glut and rebalance global oil markets, according to Goldman.

Nigerian States Look to Sell Bonds as Oil Income Dwindles - FBN

FBN Holdings Plc, owner of First Bank Nigeria, said it expects to benefit from a surge in sales of bonds by state governments to replace dwindling oil revenue and after peaceful elections bolstered investor confidence.

“We expect a lot of the state governments to go to the market to issue bonds to be able to fund their projects,” Chief Executive Officer Bello Maccido said in an interview. “It presents an opportunity for the investment-banking business.”

"We are likely to see more energy deals after Shell-BG" - Fitch

Royal Dutch Shell’s acquisition of BG Group agreed Wednesday could spark a wave of energy deals beyond the opportunistic ones already seen, Fitch Ratings says.

The deal signals that Shell has confidence in the sector and is positioning itself for the sector’s recovery. Shell’s competitors are likely to also look for partners, so they are not at a disadvantage when the cycle turns, Fitch Rating explains.

WorleyParsons Lands Deal for Ophir's Fortuna Project in Equatorial Guinea

WorleyParsons disclosed Friday the award by Ophir Equatorial Guinea (Block R) Limited of an agreement for provision of engineering and project management services for their Equatorial Guinea 

Oil Rises a Third Day as Iran Export Recovery Remains in Doubt

Oil advanced a third day as skepticism among U.S. lawmakers over a nuclear deal with Iran undermined prospects that the OPEC producer will bolster crude exports.

Futures climbed 1.3 percent in New York. President Barack Obama is dispatching three cabinet members to brief lawmakers as a Senate committee prepares to take up a bill that will give Congress 60 days to review any final agreement with Iran. Drillers in the U.S. reduced the number of active rigs seeking oil to the fewest since December 2010, according to Baker Hughes Inc.

Fracklog Gains More Acceptance In U.S Oil Production Deferment Strategies

Companies delaying the completion of wells that have been drilled are keeping 373,000 barrels a day of oil out of the market, energy intelligence firm Genscape Inc. said.

Six companies announced plans to defer completing a total of 845 drilled wells this year, Genscape said in a report Wednesday.

Some oil producers have responded to the 50 percent drop in crude prices since June by delaying the hydraulic fracturing of wells. This backlog of unfracked wells, known as a fracklog, can then be completed and brought online when prices have rebounded.

The Shell-BG Deal: Traces to Oil Market Low Positions

Oil companies have a knack for picking the bottom in crude prices, and history may be about to repeat itself.

Traders and analysts are speculating that Royal Dutch Shell Plc’s takeover of BG Group Plc for $70 billion announced Wednesday may be the first in a wave of acquisitions as Big Oil seeks to drive out costs following the rout in oil.

Ghana Oil Refinery Breakdown a Symbol of Economic Woes

When it opened in 1963, Ghana's oil refinery symbolized pride and hope for the first African country to escape colonial rule. Now the plant stands idle in a sign of the economic shadow that has crept over one of the continent's brightest stars.

The discovery of oil in Ghana in 2007, added to its gold and cocoa wealth and its other major asset, stable democracy, gave it a chance to start catching up with oil giant Nigeria and regional West African economic powerhouse Ivory Coast.

The year after oil began flowing in 2010 economic growth spiked to 14.8 percent, one of the highest rates in the world.

Hercules Inks 5-Year Contract with Eni in W. Africa

Hercules Offshore announced that it has signed a five-year contract with a subsidiary of Eni S.p.A. for use of the Hercules 260 (250' ILC) in West Africa. The dayrate under the contract will range from a minimum of $75,000 per day when the price of Brent crude oil is $86 or less per barrel, to a maximum of $125,000 per day when the price of Brent crude oil is $125 or more per barrel. Contract commencement is expected in early April 2015. Costs for contract specific upgrades will be reimbursed by the operator.

Saipem and Dangote Form JV to Tap Central/West African Market

Italy's Saipem S.p.A. disclosed Wednesday that it has entered into a Joint Venture with Dangote Group, one of Africa’s leading companies, to create a new company named Saipem Dangote E&C. Saipem Dangote E&C is a significant new player in the Nigerian and Central/West African market, with high technical and financial capabilities. It aims to secure complex Engineering & Construction projects and ensure a realization capacity focused on efficiency, in terms of costs and timing, and flexibility, in order to respond to different needs related to specific projects, to local content and to the Country’s context. 

Breakthrough in hydrogen-powered cars may spell end for petrol stations

Scientists have dramatically increased the efficiency of producing clean hydrogen fuel from plant waste in a breakthrough that could one day lead to petrol stations being replaced by a network of roadside “bioreactors” for refuelling cars.

A study funded by Shell Oil has shown that it is possible to convert all 100 per cent of the sugar stored in corn stover – the stalks, cobs and husks leftover in a harvested maize field – into hydrogen gas with no overall increase in carbon dioxide emissions to the atmosphere.

The researchers perfected the process by mixing the raw biomass with a watery solution containing a cocktail of ten enzymes that turned the plant sugars xylose and glucose into hydrogen and carbon dioxide, said Professor Percival Zhang of Virginia Tech in Blacksburg, Virginia.

Previously it has only been possible to convert between 30 per cent and 60 per cent of the plant’s sugars into hydrogen using either fermenting microbes or industrial catalysts. However, the latest technique converts 100 per cent of the plant sugars into hydrogen, Professor Zhang said.

Producing pure hydrogen gas from crop waste and biomass is seen as one of the most important goals of the green economy because of the need to produce clean alternatives to petrol. However, existing methods are inefficient, costly and are dogged by the problem of how to distribute the hydrogen once it is made.

“All the products produced by the process are gases so they can be separated and collected easily from the biomass substrate. Over its lifecycle, the process is carbon neutral and we have achieved a 17-fold increase in the rate of the reaction which makes it economically viable,” Professor Zhang said.

“This means we have demonstrated the most important step toward a hydrogen economy – producing distributed and affordable green hydrogen from local biomass resources,” he said.

One of the critical developments in the process is being able to directly use “dirty” biomass as the fuel rather than relying on highly processed sugars as the source of hydrogen. In addition to being more efficient, this means it should also be possible to build large bioreactors the size of petrol stations near to sources of biomass, so leading to a network of green re-fuelling stations distributed around the country, Professor Zhang explained.

Total's Divestments in 3 Onshore Blocks in Nigeria Reaches $1B

Total's recent divestment of its interests in three onshore Oil Mining Leases (OML) in Nigeria, inlcuding OML 18 and OML 24, crossed $1 billion Monday after the French major completed the sale of its stake in OML 29 to local firm Aiteo Eastern E&P for $569 million. 

“The sale of these non-operated onshore blocks in Nigeria is yet another example of our strategy of dynamic portfolio management, achieved at attractive valuations,” Total's chief financial officer Patrick de La Chevardiere said in a press release. “These transactions also reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments, such as the Egina project.” Total has divested its interests in 11 onshore blocks to Nigerian companies since 2010 in accordance with the Nigerian government’s objective of developing Nigerian companies in the sector.    

Total has a 10 percent stake in several onshore blocks in Nigeria via the Shell Petroleum Development Company (SPDC) Joint Venture alongside the Nigerian National Petroleum Corporation (55 percent), SPDC (30 percent, operator) and Nigerian Agip Oil Company Limited (5 percent).

Shell Completes $1.7B Sale of Nigerian Assets

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), has completed the assignment of its interest in oil mining lease (OML) 29 and the Nembe Creek Trunk Line (OML29 and NCTL) and related facilities in the Eastern Niger Delta. Its interests in OML29 and the Nembe Creek Trunk Line were assigned to Aiteo Eastern E&P Company Limited. Total cash proceeds for Shell amount to some $1.7 billion. This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business. 

Here's How $20 Oil Could Become a Reality If Storage Runs Out

Though I find this piece kind of shabby I decided to post it because its a well written angle.

(source: bloomberg.com)

There's the makings of a crisis swirling in America's oil-storage tanks, and the next few months will determine whether it's a minor annoyance, or a major blow, to U.S. oil.

The basic problem is that too much oil is being pumped, and not enough is being used up. America is running out of places to store all of the excess crude. That’s a problem, and it could send prices plummeting -- some say to $20 a barrel or even lower. (For context: Last summer it was more than $100, and today it's less than $50.)

Nigeria could plunge into a fuel crisis soon

Yes we all look forward to the weekend presidential elections in Nigeria and our hopes stand in it's achievable credibility (yes, it's possible). Most times the common man on the street is the least involved and most affected as per effects by governmental policies but hopefully that will change soon. 

One major populace dependent commodity is petrol. We need it in our cars, bikes, generators, etc. It moves a large part of the small-medium scale enterprises and in a country such as Nigeria it can bring productivity to a stand still if not readily available.

What I'm about to share is a perspective to a possible (serious) fuel crisis in Nigeria come the second quarter of this year.

Talisman Sinopec Energy UK Appointment Bill Dunnett as it's new Managing Director

News out today is that effective from April 7, the Board of Directors of Talisman Sinopec Energy UK will formally recognize by appointment Bill Dunnett as Managing Director. Mr. Dunnett will succeed Paul Warwick who will return to his role as Executive Vice President Talisman Energy Inc. following completion of Bill's transition by mid-May.

Bill is a chartered engineer with more than 30 years’ experience in the international oil and gas industry. He graduated in 1984 with a First in Engineering before joining Mobil North Sea as a petroleum engineer. The majority of his career has been focused on the North Sea, particularly major projects and the operation of mature-asset portfolios. While working offshore in the Beryl Field, he implemented the findings of the Cullen Report which has driven his career-long passion for safe and high-integrity operations.

U.S. Refiners Turn to Tanker Trucks to Avoid 'Dumbbell' Crudes

In a pressing quest to secure the best possible crude, U.S. refiners are increasingly going straight to the source.

Firms such as Marathon Petroleum Corp and Delek U.S. Holdings are buying up tanker trucks and extending local pipeline networks in order to get more oil directly from the wellhead, seeking to cut back on blended crude cocktails they say can leave a foul aftertaste.

While the business of hauling crude from individual oil wells to bulk storage depots or pipeline hubs has become a lucrative niche in recent years thanks to the shale oil revolution, refiners are getting into the "first mile" game for a different reason: taking control of their supply chains to secure a more predictable, consistent stream of crude.

Angola's Saturno oil output restarted over the weekend

Angola's Saturno oil output restarted over the weekend, one week after a power loss at an offshore facility forced it to shut down, traders said on Monday. 

Field operator BP had no immediate comment, but traders said the force majeure on exports of Saturno grade crude oil is still in place. The FPSO PSVM operated by BP consists of the Plutao, Saturno, Venus and Marte fields. 

BP itself said last week that it expected the force majeure to last roughly eight days from when it was declared on March 16. No loading programme for Saturno crude in May had been issued yet because of the force majeure.

Saudi’s Naimi Optimistic on Oil With Output Close to Record High

Saudi Arabia’s Oil Minister Ali al-Naimi is “optimistic” about the oil market and the world’s biggest exporter is pumping about 10 million barrels of crude a day, close to the record amount produced in 2013.

Saudi Arabia is able to meet demand from any customer, al-Naimi said at a conference in Riyadh, Saudi Arabia, on Sunday. While global demand for oil is improving, there isn’t enough need to raise the nation’s production capacity beyond its current level of 12.5 million barrels a day, he said.

Smallest Oil Rig Drop in Three Weeks Shows Retreat Easing

The biggest retreat from U.S. oil fields on record is showing signs of subsiding.

Oil explorers sidelined 41 drilling rigs this week, the smallest drop in three weeks and down from the average 59-rig decline in February. The count has fallen for 15 straight weeks to 825, reaching the lowest level in more than five years, Baker Hughes Inc. said on its website Friday.

The country has lost an unprecedented 750 oil rigs in the past 15 weeks as collapsing prices force drillers to let go of thousands of workers and retreat from shale formations. The slide in the rig count threatens to bring to a halt the oil production boom that turned the U.S. into the world’s largest fuel exporter.

“While we’re still going to see declines on a weekly basis, the retreat is definitely losing steam,” James Williams, president of energy consulting company WTRG Economics, said by phone on Friday from London, Arkansas. “We’re unlikely to see a 100-rig drop again. Eventually these declines will get smaller every week, if for no other reason than we have fewer rigs out there to stop drilling.”

Saudi Looking Beyond Oil Price Slump as Rig Count Spikes

As the global energy industry stares transfixed at a spectacular drop in U.S. rigs, Saudi Arabia is ramping up the number of machines drilling for oil and gas despite a sharp fall in the price of crude.

Industry sources and analysts say the OPEC kingpin is looking beyond the halving of global oil prices since June 2014 to a time when crude could again be in short supply.

Riyadh is therefore keen to preserve what is known as its spare capacity - the kingdom's unique ability to raise oil output quickly at any given moment.

But to achieve that, Saudi Arabia has to drill much more than in the past, after boosting output to record levels to compensate for global supply outages in the past four years.

"The Saudis are probably worried about everyone else reducing capex as a result of low oil prices and about non-OPEC output falling off a cliff at some point. We all know that supply disruptions are unpredictable but they are certain," said Gary Ross, executive chairman of New York oil consultancy PIRA.

"The increase in Saudi rig numbers is like a signal to the industry – let's be rational. We will need supply growth in the future."

Shell, Total, ENI Complete $1.1 billion Nigerian Oil Field Sale

Royal Dutch Shell said on Friday it had completed the sale of its 30 percent stake in a Nigerian oil field for $737 million as the Anglo-Dutch oil major nears the completion of a strategic asset review in the West African country.

Oil and Mining Lease (OML) 18 and "related facilities in the Eastern Niger Delta" were sold to Eroton Exploration & Production Company Limited.

Eroton is a a special purpose company owned directly or indirectly by a consortium. Eroton also acquired French oil major Total's 10 percent stake and Italy's Eni's 5 percent stake in OML 18, giving it a total 45 percent holding, Shell said in a statement. The remaining 55% is owned by the Nigerian National Petroleum Corporation, NNPC. The total purchase price for the interest was US$1.1 billion, not including acquisition costs. All approvals required for the completion of the acquisition of OML 18 have been received from the relevant authorities of the Federal Government of Nigeria.