Exxon Mobil hires lobbyist so it can get in on Iran oil
by Nicholas Sakelaris - Dallas Business Journal
Exxon Mobil Corp. has hired a lobbyist to push for reduced sanctions against Iran, Bloomberg reports.
Irving-based Exxon (NYSE: XOM) hired a lobbying firm founded by Oklahoma Republican Don Nickles, a former U.S. senator, to work on the sanctions, Bloomberg reports.
Analysts say companies such as Exxon are eager to explore Iranian oil fields because the drilling economics are cheaper, Bloomberg reported.
Iran and the United States have until June 30 to iron out a nuclear agreement. The deal could mean a lifting of sanctions.
There’s also growing concern that if Iran’s oil gets dumped into the world market it would put pressure on crude oil prices again.
West Texas Intermediate traded above $60 a barrel Thursday while Brent, the world benchmark, traded above $66 a barrel.
Exxon already has a massive position in Russia, actually holding more acreage in that country than it does in the U.S. The United States imposed sanctions on Russia for the annexation of Crimea in March, 2014.
GE bringing industrial Internet to wind farms, with potential for $50 billion
General Electric rolling out technology it says will boost wind farm output
By Larry Rulison
General Electric Co. is set to announce Tuesday a new wind farm technology that will improve output by 20 percent — providing the wind power industry with $50 billion in added revenue.
Steve Bolze, the CEO of GE Power & Water, said the new product — called the Digital Wind Farm — has been in development for the past 18 months and combines the company's two-megawatt wind turbines with GE modeling software, sensors and the industrial Internet, which allows machines to exchange data, or "talk" to one another.
"It's a huge breakthrough for renewable energy and specifically wind power," Bolze told the Times Union during a telephone interview. "The world wants more wind power. Same wind, 20 percent more electrical output. That's huge."
The wind turbines that GE builds going forward will be capable of 20 different configurations to generate power at peak efficiency. Furthermore, their sensors will collect data on everything from temperature, misalignments and vibrations that can affect performance and maintenance. GE's wind farms typically have up to 20 turbines, allowing for up to 400 different combinations to optimize output at any time.
Using that data and GE's Predix software, the wind farms will over time gain capacity to better operate and avoid downtime and unneeded maintenance.
GE says that if the wind farms being installed in 2015 were all GE Digital Wind Farm projects, they would generate an additional $50 billion in added revenue or costs savings over the life of the projects. About 50 gigawatts of wind power are expected to be installed this year.
from Energy Monitor Worldwide
North Dakota-based MDU Resources Groups pipeline unit, WBI Energy Transmission Inc., on Wednesday asked FERC to start the environmental pre-filing review process for its proposed 22-mile, 24-inch diameter natural gas transmission pipeline for taking Bakken natural gas to the Northern Border Pipeline Co.s interstate system feeding the Midcontinent.
The pipeline would carry gas from Oneok Partners Demicks Lake gas processing plant to an interconnection with Northern Borders interstate line about eight miles southeast of Watford City, ND. It would further enhance Oneoks projections earlier this month for a boost of Williston Basin gas production this year and next (see Shale Daily, May 8).
WBIs proposed Demicks Lake Pipeline is slated for a Sept. 1, 2017 start of commercial operations with a 221 MMcf/d capacity. It is part of the companys efforts to create arteries for getting Bakken gas to Midcontinent markets.
WBI is requesting use of the pre-filing process [at the Federal Energy Regulatory Commission] to allow agencies, affected landowners and other stakeholders to work cooperatively with WBI and FERC staff to identify and address environmental issues prior to filing of a certification application, the company said in its request.
The proposed route runs southwesterly from the Oneok plant in McKenzie County to the Northern Border interconnection.
A much larger, $650 million, 375-mile proposed Dakota Pipeline running into Minnesota was put on hold at the end of last year (see Shale Daily, Dec. 19, 2014). An MDU spokesperson on Thursday said the project is on the companys list of future projects when there is sufficient market interest. 2015 Global Data Point.
From Gulf Oil & Gas
Incremental to Buy Silver Tip Field
Incremental Oil and Gas is pleased to advise that it has entered into a Purchase and Sale Agreement (PSA) with Fidelity Exploration & Production Company to acquire a 100% working interest in the Silver Tip Oil and Gas Field located in the Bighorn Basin, Wyoming.
The effective date for this transaction will be 1 June 2015 with a closing date of 1 July 2015;
The purchase price is US$6.3M;
A deposit of 10% of the purchase price was paid upon signing of the PSA.
Located 20 miles NW of Powell in Park County, Wyoming;
The field contains 107 wells and has an area of 5,530 net acres, 80% of which is held by production;
The average net revenue interest is 82%;
The field has been partially shut in since February 2015 due to installation of a new plant compressor which is expected to be in operation prior to closing; and
The most recent production in December 2014, prior to the field being shut in, was 360' boe/d (25% oil, 33% NGL5).
Funding for the transaction is expected to be from the 10G's current banker and the company has executed a terms sheet in relation to a facility that will be sufficient to finance this transaction.
the may 5th nightly business report (by cnbc on pbs) had some excellent pieces on oil finishing up with an interview with mr. Kilduff.
the stories start at the 38 second mark and continue to 7:15. i think its worth a look if you have time...
That combination would significantly raise the percentage of its sales that come with cash margins in excess of $35 per barrel of oil equivalent.
By 2017 it plans for those highest-margin sales to make up the biggest chunk of production, assuming crude oil prices rise to the $70-per-barrel neighborhood.
While Ms. Yarrington reiterated Chevron’s commitment to maintaining and eventually increasing the dividend, she noted that the steep drop in oil prices since the summer tilts the playing field.
A Chevron spokesman declined to provide additional comment on its dividend.
“With what’s happened in oil markets in the last six to nine months, there is a complete reshaping of what’s going on,” she said. “Taking some time to understand where things shake out for the long term is a very important and prudent step.”
Chevron CFO Needs to Boost Cash Flow to Cover Dividend
By MAXWELL MURPHY
Patricia Yarrington has a dilemma.
The Chevron Corp finance chief needs to boost the company’s cash flow so it can invest in its business while avoiding having to cut its $8-billion-a-year dividend.
She detailed the company’s plans to generate cash flow that would meet its capital-expenditure and payout needs by 2017.
Chevron on Friday reported first-quarter operating cash flow of $2.3 billion, less than a quarter of its combined capex and dividend.
“Our No. 1 priority” is maintaining a dividend that’s “competitive and growing,” she told analysts on a conference call. Chevron typically raises its dividend in the second quarter, but earlier this week, it kept it unchanged– similar to what Chevron did in 2008 and 2009 when oil prices last fell precipitously.
The multinational energy corporation, based in San Ramon, Calif., issued $6 billion in debt and sold nearly $1 billion in assets during the first quarter to help fund the capex and dividends. Its debt, at $33.9 billion, now tops that of rival Exxon Mobil Corp.
though Chevron has roughly half the annual revenue.
“We don’t want to get into a position where we’re having to cut the dividend,” she said. “We’re not running very strong on earnings or cash flow at the moment.”
Chevron will take a multi-pronged approach to generating enough cash. It will boost cash flow through production growth, while trimming its cost structure and capex budget, and selling assets. Ms. Yarrington said that it had disposed of $10 billion in assets over the past 16 months, putting it well on track to achieve its $15-billion, four-year plan. When prompted by an analyst, she declined to raise the target.
Better production and rising oil prices, it hopes, will lead to better margins in two years.
the stories in the local papers were about the local burbs M -Grove, Pk Ridge & Niles coming together to decide on a plan to get away from Chicago.... I wonder if the glenview decision will allow WTR to expand into some of these burbs?
From a PSX earnings article
“(Phillips 66) is a very interesting story,” said Rob Desai, analyst at Edward Jones. “We view them historically as a refiner with some other assets but going forward, as they transition and transform, they will become a midstream and chemicals company with refining assets.”
Against that backdrop, company officials reiterated their commitment to DCP Midstream, a Denver-based pipeline and natural gas processing company that has been hit hard by the crude collapse.
With natural gas liquids fetching lower prices on the market, the company, a joint partnership between Phillips 66 and Spectra Energy, has been undergoing a corporate restructuring. The firm announced plans earlier this year to layoff or relocate 200 jobs as it slashed its corporate budget by 20 percent. DCP Midstream reduced its 2015 capital budget by 56 percent to $800 million.
In response to a question from an analyst, Phillips 66 Chairman and CEO Greg Garland declined to say whether Phillips 66 would inject capital into DCP Midstream to keep it afloat, but said he continues to consider the company a strong asset.
“It’s a must-run business,” he said.
looks like Glenview will get water via Wilmette....below was copied from an online article I googled...
"We believe NMU customers can benefit from a new owner that has more flexibility, especially to provide rate stability," Patterson said. "It was important that the sale to Aqua include an agreement that NMU be provided with less expensive water from Wilmette via Glenview in the future."
rory, check this out....suburbs here want to get away from Rahm and his chicago water monopoly charging alll the burbs to re-place the entire cities water pipes.. interesting WTR is the company...
4:12 pm Aqua America's Illinois subsidiary announces the acquisition of North Maine Utility Water and Wastewater System $22 mln (WTR) : Co completed the successful purchase of the municipally owned North Maine Utilities (:NMU) water and wastewater system from the Village of Glenview, Illinois for $22 million.
Aqua Illinois has also committed to invest $10 million to construct a needed interconnection with Glenview to purchase Lake Michigan water from Glenview at a significantly lower price than the projected rate of the current provider
“We think it’s a great opportunity for the United States if we can expand the export opportunities for the U.S. producers,” Woodbury said. “Bottom line: It’s going to improve the economy.”
Exxon distributed $3.9 billion to shareholders through buybacks and dividends.
Exxon has seven major projects that will go into production this year.
The Feb. 18 refinery explosion in Torrance, California was caused by an emission control device that removes particles from the exhaust. Woodbury couldn’t say when the site will return to full operations but some units are working now. “We are diligently working to ensure continued supply to our customers,” Woodbury said.
Exxon plans to continue complying with U.S. sanctions against Russia. “I don’t want to speculate when those sanctions will conclude,” Woodbury said. “We have a very diversified portfolio with Russia just being part of that.” It’s been reported in the past that Exxon has more assets in Russian than the United States.
The massive oil by rail loading facility in Edmonton, Canada is expected to come online in the next few months. It will have the capability to load 210,000 barrels of crude oil per day from the oil sands to refineries in South Texas and elsewhere. It’s a joint venture with Kinder Morgan.
Exxon’s production increased by 97,000 barrels of oil equivalent per day in the first quarter.
Exxon expects crude oil supply and demand to balance out in the second half of the year but the amount of crude oil in storage remains significant. There’s also a question of whether U.S. shale producers will continue to produce at record levels with the rig count declining. “That storage overhang will need to be worked off over time,” Woodbury said. “There’s still a lot of unknowns.”
Exxon has 40 rigs running right now. But that’s trending downward. Oil field service costs have declined about 20 percent this year.
Ready to buy? Exxon Mobil boasts why its the perfect M&A partner
by Nicholas Sakelaris Staff Writer - Dallas Business Journal
Exxon Mobil Corp. continues to drop hints that it could be hunting for major assets and companies during the downturn in crude oil prices.
Exxon’s size, scale and ability to ramp up quickly equals a “winning proposition” for resource owners, said Jeff Woodbury, vice president of investor relations.
“We keep alert to where we’ll be able to get opportunities to build a portfolio with assets,” Woodbury said. “If those opportunities come along, then we’ll consider them.”
Woodbury spoke on the phone to analysts during Thursday’s earnings call. Exxon (NYSE: XOM) earnings fell 46 percent in the first quarter. Still, the world’s largest oil company’s stock price rallied about 20 cents upon the earnings being released.
It’s a good day for other oil giants, too.
Royal Dutch Shell saw its stock jump about 14 cents despite earnings being down 56 percent. Conoco Phillips (NYSE: COP) saw its earnings rise about 40 cents even as its profits plummeted.
For Exxon, Woodbury emphasized that the company has the flexibility to invest during a down cycle and can capture lower cost structures.
When capital is constrained, as it is now, Irving-based Exxon provides additional opportunities and value propositions and “one of the best project execution” teams, Woodbury said.
Exxon also has inegrated downstream and chemical companies that provide additional value, he said.
Does all this add up to the rumored mega-merger where Exxon swallows the financially troubled BP (NYSE: BP) whole?
Only time will tell.
Other takeaways from Thursday’s earnings call:
Exxon strongly supports increased exports of liquid natural gas. The company has a pending project to convert the Golden Pass LNG import terminal into an export terminal.
I am hiding by raising cash until mid to end of this year to see what Fed will do and how market reacts...
while I am not a fan of mutual funds, VWINX is very low cost 60% fixed income and 40% dividend paying stock... good way to straddle the uncertainty of the market if you don't want to accumulate cash.....
Harold also should of pointed out that after fed's statement yesterday my interest sensitive stocks utils & reits are diving.... so how many times will fed raise rates before Y/E?
yesterday I was in the local TCF branch (ticker symbol TCF) here in the people's republic of IL to renew CD. CD rate was upped from .85% to 1% and the duration was shortened (from like 14 months to 12 months for the previous CD, I don't recall the exact time frame) .... appears the bank is expecting Fed to really raise rates..... perhaps it is anecdotal....but this is what happened...
And what if Fidelity causes a spill? As O'Bryan's track record with the Gulf shows, a once-treasured tourist destination could quickly transform into an industrial wasteland.
from a leftist outlet DeSmog -- Clearing the PR Pollution that Clouds Climate Science
By Anne Landman
Fidelity Exploration and Production Company, the largest hydraulic fracturing (“fracking”) operator in southeastern Utah, has chosen Patrick O'Bryan to replace its outgoing CEO, Kent Wells.
Both executives have ties to the 2010 BP Deepwater Horizon explosion and subsequent oil disaster in the Gulf of Mexico, and both have links to BP's questionable accountability structure, poor safety record and overall bungled responses to the oil disasters.
O'Bryan was on the Deepwater Horizon rig on the day it exploded. His visit displaced key safety personnel that day, and delayed a key cement test that would have revealed faulty seals in the well.
In 2012, BP pled guilty to 14 criminal charges and agreed to pay $4.5 billion in fines and other penalties as a result of the disaster. In late 2014, the federal judge overseeing litigation involving BP, Carl Barbier, ruled that BP acted with “gross negligence” and was 67-percent at-fault for the Deepwater Horizon disaster that killed 11 workers and spilled as much as 4.9 million barrels of oil into the Gulf.
Fidelity Exploration is currently drilling near Moab, Utah, also known as “Red Rock Country.” Moab is home to Arches and Canyonlands National Parks and Dead Horse Point State Park. The area depends heavily on tourism, accounting for about 70 percent of jobs in the Moab area.
But the spectacular backcountry areas around Moab are currently under assault by drilling rigs. Moab residents and people coming to enjoy the area's unique outdoor vistas complain about proliferating overland natural gas transmission pipe systems, noise, lights and flares from drilling rigs, the odor of fracking chemicals and greatly increased truck traffic on the area's back roads due to drilling activities.
so rigs are down, existing wells keep pumping, maybe even some will be re-fracked... here is part of a news story about storage outside of cushing...
Traders alarmed oil glut is a strain on West Texas storage tanks
by Catherine Ngai | Reuters
NEW YORK, April 26 (Reuters) – Four-hundred miles from the near overflowing tanks at the U.S. oil hub in Cushing, Oklahoma, a second glut in the Permian Basin of West Texas is pressuring oil prices once again as pipeline disruptions strand millions of barrels in the region.
The Permian, the fastest-growing shale play, accounts for about a fifth of the country’s total oil production, and is expected to produce about 2 million barrels of crude a day in May. The region houses over 20 million barrels of crude storage.
Stockpiles in the Permian have hit several records in the last four weeks, according to data from industry information provider Genscape.
Investors have zeroed in on storage, waiting for declines in weekly inventory data to signal demand is rising or production is beginning to taper off. Stockpiles in Cushing, the delivery point for the U.S. futures contract, hit a record in the week to March 13, and Gulf Coast supply has been robust.
Now a Permian backlog shows signs of an even bigger supply glut. Pipeline interruptions next month will compound already high inventories in the region that have grown because production has outpaced takeaway capacity.
Crude from the Permian that gets stored in Midland, Texas, awaiting transport to the Gulf Coast, will be diverted to Cushing, where it will add to burgeoning supplies, possibly putting even more downward pressure on crude prices, traders said.