Norway is considering tapping reserve funds to shield western Europe’s biggest oil producer from the worst slump in crude prices in more than half a decade.
Prime Minister Erna Solberg said the government is now “on alert” to respond to the rout. “If the economic situation requires it, we can react quickly,” she said yesterday at a conference in Oslo organized by Norway’s confederation of industry.
A 56% plunge in the price of Brent crude since a June high has undermined Norway’s currency and beaten back its stock market.
If there ever was doubt about the strategy of the Organization of Petroleum Exporting Countries, its wealthiest members are putting that issue to rest.
Representatives of Saudi Arabia, the United Arab Emirates and Kuwait stressed a dozen times in the past six weeks that the group won’t curb output to halt the biggest drop in crude since 2008.
Qatar’s estimate for the global oversupply is among the biggest of any producing country. These countries actually want -- and are achieving -- further price declines as part of an attempt to hasten cutbacks by US shale drillers, according to Barclays Plc and Commerzbank AG.
Eni has signed a new concession agreement to operate in the South West Melehia block in the Western Desert of Egypt.
It follows the Egyptian General Petroleum Corporation’s (EGPC) 2013 international competitive bid round.
The company said the new acquisition adds to the list of exploration successes achieved in the area over the past two years.
Oil giant Total said it has completed the flare out of the Ofon field in Nigeria.
The company said the associated gas is now being compressed, evacuated to shore and monetized via Nigeria LNG.
The Ofon field is 65km from land and in water depths of 40 metres.
The pitter-patter of tiny feet could have an unexpected impact on offshore operations, according to oil and gas employment expert Katie Williams.
New laws which allow the sharing of parental leave following the birth of a baby could disrupt shift patterns and lead to staff shortages in specialist roles.
Traditionally men would take a few weeks off work following a birth but the new rules, introduced in December, mean couples can now share up to 50 weeks leave for any child born on or after 5 April 2015.
The most read article on Energy Voice this week was the announcement that Talisman Sinopec Energy had terminated a contract with drilling company Archer.
The Archer Emerald had been contracted out by the company in a two-year contract deal worth $96million and was scheduled to begin in the first quarter of 2016.
JKX Oil and Gas has reported successful test results from its Elizavetovskoye field in Ukraine.
Well E-303 was drilled to a total depth of 4,406metres and initially completed in the G7-12 sandstone reservoirs only.
Following additional perforations in the shallower A2 carbonate reservoir and acid treatment, co-mingled production with the G7-12 sandstone reservoirs was 5.21 MMcfd of gas and 18 bpd of condensate through a 48/64-inch choke with a flowing wellhead pressure of 505 psi.
Circle Oil has been given receipt of $15million as part of recent special payment distribution by the Egyptian Government.
The company said the move had resulted in a significant reduction in the outstanding debt owed to the company.
Oil companies including Shell have booked supertankers to store crude at sea.
Other firms, including Vitol and Trafigura, have acquired crude tankers for up to 12 months.
According to reports, freight brokers said the increase in long-term bookings was “unusual” and could be used to store excess crude at sea until prices rebound.
Statoil has revealed its ambition to extend the life of the Norne field to 2030.
The field, which came on stream in 1997, was due to shut down last year having produced some 700 million barrels of oil equivalent.
The recovery factor for the main Norne field today is 56.5% – a top result worldwide for production from subsea fields.
More than 60,000 offshore workers are to have the span of their shoulders measured ahead of new regulations on body size coming into force in April.
Industry group Step Change in Safety has revealed its measurement strategy for helicopter passengers travelling to and from offshore installations that will ensure all can escape from windows in the case of accidents.
Workers whose shoulders measure greater than 22in will be classified as “extra broad” (XBR) and will be required to sit in a helicopter seat that’s closest window is compatible with their shoulder size.
Three businesses serving the oil and gas industry have notched up a string of contract wins and investments worth around £5million in total.
EFC Group will today [FRIDAY] reveal that it has scooped four contracts worth a combined £3.65million, while Sir David Murray’s Alphastrut has signed a “six-figure” deal with Det Norske and Arnlea Systems is investing £1million in its software.
Aberdeen-based EFC – which designs and makes controls, instruments, monitors and handling systems – has landed two blowout preventer (BOP) control system deals with drilling contractor Ensco worth more than £1.65million in all.
The US stock market is bouncing back from a tough start to 2015.
Investors sent shares sharply higher for a second straight day, erasing the market’s heavy losses from the first few days of the year.
The gains were driven by a combination of positive economic news from the US and hopes for stimulus from Europe’s central bank.
The price of oil is also showing signs of stabilising after six months of heavy losses, and there is renewed confidence that the Federal Reserve will keep supporting the economy as growth outside the US appears to be flagging.
A well-known petroleum economist has warned that a spat over the creation of a new port in the Cromarty Firth risks giving the region a “bad image”.
Tony Mackay, head of Mackay Consultants in Inverness, also criticised the Cromarty Firth Port Authority’s (CFPA) expansion plans, claiming that its estimates in terms of job creation and economic impact were “silly”.
Oil extended its rally amid speculation that the US shale boom is slowing and will reduce a global glut that’s driven prices to the lowest in 5 1/2 years.
Futures rose as much as 1.7% in New York, trimming a seventh weekly decline. US producers are bailing out of long-term contracts for drilling rigs as prices slide below $50 a barrel.
The United Arab Emirates has no plans to reduce output no matter how low prices drop, according to Yousef Al Otaiba, the nation’s ambassador to the US.
The Scottish Government has demanded urgent reform of the tax regime for the North Sea oil sector, claiming such changes could support tens of thousands of jobs and boost investment by more than £40 billion.
Energy Minister Fergus Ewing said it is “vital” that the UK Government makes the changes in the Budget in March.
He insisted it is “crystal clear that it is the fiscal regime that needs to change”, as he called for action from Westminster.
Oil major BP has received consent from the Petroleum Safety Authority (PSA) to use the Valhall DP and PCP facilities beyond their lifetime.
BP wishes to use the DP facility as a wellhead platform until the wells are decommissioned, plugged and closed down.
Worldview Capital Management has called for an Extraordinary General Meeting (EGM) of Petroceltic International in a bid to remove its chief executive from the company’s board.
The company wants to replace Brian O’Cathain from his position and appoint Maurice Dijols and Angelo Moskov.
Worldview said it was proposing these changes following a series of “strategic and corporate governance failures” last year after the companies entered in an agreement in June last year.
The deal had included provision for the board, following the appointment of new non-executive directors on July 7, to undertake and complete a strategic operational review of the company.
Oil was steady as analysts said a supply glut that’s driven prices to the lowest level in more than five years will linger through the first half of 2015.
Crude has dropped by more than half since June as US output surged and the Organization of Petroleum Exporting Countries decided to maintain its production ceiling.
Saudi Arabia won’t cut its output, though producers outside the group are welcome to do so, Ali Al-Naimi, that country’s oil minister, said at a conference in Abu Dhabi last month.
Low oil prices could have a direct impact on the Scottish public purse when income tax is devolved, a think-tank has warned.
Oil revenues remained reserved to Westminster in both the Scotland Act 2012 and the Smith Commission, but Scotland will receive 10p in the pound from next year with full income tax receipts promised in the next round of devolution.
Fiscal Affairs Scotland said it is unclear whether oil prices will return to the average £70 a barrel seen in the last three years.
A North Sea oil summit called by Aberdeen City Council will be held within the "next few weeks".
Council leader Jenny Laing, who announced the move in December last year, said politicians would meet with representatives from the industry to discuss North Sea investment.
Europa Oil & Gas has decided to keep its WF9 well on its West Firsby field in the East Midlands Petroleum Province shut in for the foreseeable future due to low oil prices.
The company said production is continuing on five of the six wells it operates across the Crosby Warren, Whisby and West Firby fields.
It said it would reconsider whether to carry out recompletion of WF9 should the oil price recover to “a level at which the well would become economic”.
While debate rages as to whether Opec’s decision not to defend the oil price is aimed at the fast growing US shale-derived gas and oil industries, two North American companies, both headquartered in Calgary, have put the brakes on further land-rig construction.
Ensign Energy Services is “pausing” plans to build 17 new high-tech drilling rigs, despite the fact that winter is traditionally the busiest season for exploration and development in Canada.
Precision Drilling now plans to “idle” rig-building activity once it has completed delivery of 16 previously announced rigs.
Encouraging economic news and a rare rise in oil prices helped give the US stock market its first gain in the new year.
Major indexes started climbing from the opening bell, following a report from ADP, the payroll processor, which showed that businesses hired more workers last month.
Companies added 241,000 workers in December, an increase from the previous month.
Industry group Step Change in Safety has revealed its measurement strategy for helicopter passengers travelling to and from offshore installations.
The move comes after Step Change announced last year that passengers will be measured by the width of their shoulders for flights.
Those whose shoulders measure greater than 22inches (55.9cm) will be classified as extra broad.
