<a href="http://youngpetro.org/2013/03/06/how-is-it-possible-to-produce-oil-from-sand/"><b>How is it possible to produce oil from sand?</b></a> <a href="http://youngpetro.org/2011/10/09/people-engineers-and-spe-members/"><b>People, Engineers and SPE Members</b></a> <a href="http://youngpetro.org/2012/12/19/if-i-were-a-prime-minister/"><b>If I Were a Prime Minister…</b></a> <a href="http://youngpetro.org/2012/12/26/polish-shales-delayed/"><b>Polish shales delayed?</b></a> <a href="http://youngpetro.org/2013/01/11/russia-continues-the-policy-of-states-companies-monopoly/"><b>Russia continues the policy of state companies’ monopoly</b></a>

Norway wants to become a major natural gas deliverer in Europe

Norway wants to become a major natural gas deliverer in Europe

Norway has got a chance to become a major natural gas deliverer in Central Europe. Now the most important thing is positive reaction of European Commission. Tord Lien, norwegian Minister of Petroleum and Energy is cofident that his country is ready to become essential natural gas supplier to Europe for many decades.
In European Union many people see this move as a plan to reduce dependence on russian natural gas. Many countries in Europe are tired of games with Russia. They are looking for a strong, safe and certain ally to leave their main gas supplier. In that case Norway is a very attractive and trustworthy associate. Nevertheless nothing is official and Norway waits to see specific decisions from Europe.
These days European countries are looking for a way out from russian authority in gas sector. New polish government is interested in diversification of gas suppliers to Poland and analyzes project about collaboration with Norway, which was rejected years ago. Many things changed in last few years and now norge gas is much more eye-catching than earlier. What’s interesting is that for the first time in lithuanian history Russia will not be primary gas supplier for this country. Rokas Masiulis, Energy minister in Lithania during an interview with Reuters says that in 2016 Gazprom lost their gas monopoly to Statoil.
Without clear decisions from european and norwegian side we can only debate about these ideas. We see that Norway has got a lot of friends in European Union and this move might be attractive for both groups. Now we have to wait for more informations in that important case.




Drones in Oil&Gas industry

Drones in Oil&Gas industry

Recently drone business has gotten to Oil&Gas industry in order to conduct inspections of oil rigs. One knows that those inspections are dangerous and expensive work involving workers hanging from the bottom of an oil platform to visually log damages. Drones usage naturally has its positive aspects and could easily reduce costs of expensive traditional inspections.

Nowadays, when crude price stays below 30$/bbl it is obvious that not economics but common sense forces big companies to cut costs and it is a good impetus to implement effective solutions without compromising safety. There is a significant demand for such services and this trend is likely to thrieve in the near future.

London-based Sky Futures, which opened an office in Houston in 2015, said that last week the company flew its drones on inspections of an oil platform, a helicopter deck and four cranes on a drillship. Sky Futures did not name which oil company contracted them to perform the inspection.

Sky Futures grew its business in the North Sea for years before getting approval by the Federal Aviation Administration in March 2015 to operate in the United States. According to the date of the FAA’s exemption, Sky Futures was among the first companies to get approval to start flying drones for commercial activities in the U.S.

There are now more than 3,000 businesses or individuals in the U.S. with approval to fly drones for commercial reasons, according to the FAA’s database on exemptions. At least 994 of those exemptions went to applicants performing various types of inspections: electric transmission lines, solar power installations, chemical plants, commercial and residential real estate and farms, as well as oil and gas equipment and a host of other facilities.

A few major energy companies also received exemptions, among them Chevron, Marathon Petroleum, NextEra Energy and Duke Energy. Most have listed safety inspections of oil and gas facilities and power infrastructure as reasons for new drone launches.

Watch video below taken by a Sky Futures drone of the underside of an oil platform in the North Sea.



Lifted sanctions against Iran

17 January, 2016 News No comments
Lifted sanctions against Iran

Iran has fulfilled all obligations under the nuclear agreement, which in July last year concluded with world powers – said today the head of the International Atomic Energy Agency (IAEA) Yukiya Amano. As a result, the US and the EU decided to lift the economic sanctions imposed on Iran.

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Could the price of oil rise in 2016?

Could the price of oil rise in 2016?

This week, Morgan Stanley (Global Financial Services Firm) has published a report which shows that the price of a barrel of oil could fall to $ 20. Analysts estimate that the price will fall by around 10-25 percent. Conversely the political tension between Saudi Arabia and Iran, which are important exporters of oil, is still present.

According to the data for 2014 Saudi Arabia is one of the biggest, just behind the United States, oil producer in the world. Daily extraction of raw materials reaches 11.6 million barrels there. In comparison to Iran on account of production is the seventh in the world. Every day 3.4 milion barrels are extracted.

In January 2016, Saudi Arabia and Iran suspended diplomatic realations. The conflict between this two countries can provide to reduce extraction of oil. Increasing political conflict can destabilize the world’s prices of oil.

It’s worth mentioning that, in addition to high supply of raw materials, even in case of any politacal conflict between Saudi Arabia and Iran the supply of raw materials will be provided safely. The situation stabilizes cheap oil from the United States. Additionaly experts evaluate that the particular problem we are likely to reach in 2016 is the lack of place to such big amounts of oil. Some of analysist consider that, prices can be expected to drop to a very low prices only $10 per oil barrel.

Marked increase of prices is not likely to occure but present situation in the Middle East is very unstable and it can completely change today’s oil market.

Sources: www.ourfiniteworld.com, www.forbes.pl, www.tvn24bis.pl

IMG: www.biznes.interia.pl

Half of US shale drillers may go bankrupt

Half of US shale drillers may go bankrupt

Before the crude market reaches equilibrium Half of U.S. shale oil producers could go bankrupt. The senior oil and gas analyst at Oppenheimer & Co., Fadel Gheit, said this Monday that it could be more than two years before crude prices ultimately will stabilize, and its price will oscillate near $60.

Many secondary U.S. drillers must drill into and break up shale rock to get the oil and gas released through a process called hydraulic fracturing. It is a well-stimulation technique in which rock is fractured by a pressurized liquid. The process involves the high-pressure injection of ‘fracking fluid’  into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely. It causes that fracking is significantly more expensive than extracting oil from conventional wells. This drillers cannot wait for prices to stabilize so long, also they need at least $70 oil to survive. At current oil prices, companies both large and small – including ExxonMobil and Chevron — will have to think twice about their dividend.

On Tuesday, U.S. crude fell to $29.93, which was last seen in December 2003. Such a drop would be brief because supply and demand are beginning to come into balance. But a number of producers would enter bankruptcy even with crude near $30 per barrel. U.S. drillers are now spending more than they are making from operations, a situation that Gheit said is unsustainable and will eventually force prices higher.

Summing up, the oil industry needs a minimum amount of investment to keep oil supply in line with demand. The current investment right now would not be sufficient enough to bring additional production to meet global demand. It’s not a good information that crude price fell, but we have to remember that this industry is very unstable, so let’s hope it get better within upcoming days.

sources: www.cnbc.comen.wikipedia.org

Saudi economy against ongoing “oil war”

Saudi economy against ongoing “oil war”

Current geopolitics has drastically changed the situation in Saudi economy. This middle-east country is more and more burning their foreign reserves to ensure economic stability and monetary flexibility.

Last two years indicated that hydrocarbon’s price is not depending on actual supply and demand but essentially on political relations. Tense situation in the Eastern Europe (international sanctions during the Ukrainian crisis) and Syrian Civil War have enforced cuttings in oil branches especially in OPEC countries.

Saudi Arabia, as an oil-addicted state, was forcefully touched by declining prices. After many years of high spendings, their budget deficit has reached $98 billion (15 % of Gross Domestic Product) and if oil value determines near $30 a barrel, deficit will probably rise to $180 billion.

Saudi internal market and monetary policy were modified due to a new, tougher situation. “If anything happens to the riyal exchange peg, the consequences will be dramatic. There will be a serious loss of confidence,” said Khalid Alsweilem, the former head of asset management at the Saudi central bank.

In spite of ministerial claims, fuel’s prices have raised by up to 80% (December 30, 2015) including a 50% revision of the most generally sold petrol to 0.90 riyals per litre.

Near future is going to be nasty for the Kingdom of Saudi Arabia and entire OPEC unless they agree to cut crude production and eliminate the global oil surplus. The U.S plans to sell millions of barrels of crude oil from Strategic Reserve can make crisis deeper and establish a new playmaker in the international fuel’s arena.




U.S. has lost 70,000 oil jobs in the past year

U.S. has lost 70,000 oil jobs in the past year

Sadly, it has been a poor year for oil industry. Oil prices not only stayed at very low level but also were systematically dropping down to 35$ a barrel. Cheap crude affects global economy and makes current oil market environment unsunstainable. Global crude supplies are highly outweighed and crude storages may not start to deciline until 2017.

The Dallas Fed estimates in a new report that U.S. has lost about 70,000 oil and gas jobs since October 2014 what equals 14.5 percent drop in the 14 months after the domestic shale drilling boom that drew thousands to Houston’s oil hub began a steep decline.

Iran wants to pump an additional 500,000 barrels a day when western sanctions on its oil exports happen to be eased next year. Goldman Sachs believes that OPEC, which includes Iran, will boost its daily production in 2016 by 640,000 barrels. Additional barrels on market certainly will not enhance chances for crude to be more expensive.

These factors make high extraction unprofitable for oil companies and consequently less people are needed to control this process. Workers from huge companies such as; Schlumberger, Halliburton, Baker Hughes and British Petroleum were made redundant.

Apart from consumers with high transportation and manufacturing costs cheap crude worries entire world. Current market situation makes future uncertain especially for students and recent graduates who are seeking for opportunities in oil companies. However, we do know that such low prices are not beneficial for many and will eventually start to increase.


oil jobs lost 3

U. S. lifted a four-decade oil export ban

U. S. lifted a four-decade oil export ban

The United States decided to make a historic move and lifted a forty-year long ban on oil export. Mentioned restriction was a response to the Arab oil embargo in 70s which caused heavy shock to US economy. This was a solution to keep oil price on a relatively constant level in the future and also to secure the energetic sector of the country. Latest increase in oil production was the main reason why congress decided to lift the oil export restriction.
The United States currently generate about 9.2 million barrels of oil a day, about half of which is shale production, but the US also imported about 7 million barrels a day this year. With the world flooded in crude, nobody expects much demand for US exports. While new oil exports are not likely to amount to much immediately, they would provide another challenge to already sick OPEC. The Organization of the Petroleum Exporting Countries has been allowing the market forces to set prices for the past year, abandoning its previous policy of manipulating prices through the use of output quotas. That policy has cut into some US production,but the world is still overproducing by more than 1 million barrels a day.
This move is definitely an improvement, but is unlikely to have an influential impact on the global oil market. Andy Lipow of Lipow Oil Associates argued that the benchmark of the US crude is too close in price to the Brent’s. “The narrow price gap doesn’t encourage exports from the US to other parts of the world when transportation costs are factored in”, Lipow said.







Lower oil prices bode well for their growth

17 December, 2015 News No comments
Lower oil prices bode well for their growth

Constantly falling oil prices cause deeper cuts to spending and drilling. With WTI dipping to mid-$30s per barrel may even more significantly contribute to deterioration of the situation in the industry and consequently accelerate pace of adjustment.
This might be a sign of faster rebound than we have expected.

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First ship with liquefied natural gas from Qatar came into the Swinoujscie terminal

12 December, 2015 News No comments
First ship with liquefied natural gas from Qatar came into the Swinoujscie terminal

   Yesterday, on 11th of December 2015, an Quatar’s LNG carrier (tank ship designed for transporting LNG) “Al Nauman” came into the Swinoujscie LNG terminal (also referred as Terminal LNG in Swinoujscie, Polish LNG or Baltic LNG). This terminal is operated by Polskie LNG S.A., a subsidiary of Gaz-System. The terminal was inaugurated by prime minister Ewa Kopacz on 12 October 2015, so it’s a relatively fresh investment. It is equipped with an unloading jetty for large LNG tankers, two storage tanks and regasification train. The terminal’s initial regasification capacity is 5 billion cubic meters per annum (180 billion cubic feet per annum), and with the construction of the third tank its capacity is due to expand to reach 7.5 billion cubic meters per annum (260 billion cubic feet per annum) satisfying approximately 50% of Poland’s annual gas demand. The total cost of the terminal is €950 million (PLN 3.5billion).

That was the first LNG delivery, and it landed exactly the day it was expected. Delivered fuel is going to help with technical startup of system. After regasification it will reach Polish recipients. Regasification is a process of converting liquefied natural gas (LNG) at −162 °C (−260 °F) temperature back to natural gas at atmospheric temperature. LNG gasification plants can be located on land as well as on floating barges. In a conventional regasification plant, LNG is heated by sea water to convert it to natural gas / methane gas. In Swinoujscie air-heating system is applied because Baltic sea is too cold. It works by diving the LNG pipelines in heated water.


View of the terminal

Marek Gróbarczyk, minister of Polish Maritime Economy, said that it is significant moment for Polish Energy independence: it will allow to research when the flotation of the gas port will be possible. First implementation of the fuel and cooldown the tanks will show if there are any defects and will determine the date of the end of the investment. He emphasized that there are plans for another investment such as building one more tank in Swinoujscie or the new LNG terminal in Poland, even floating one like in Lithuanian Klajpeda.

   Poland is now available to import LNG from all over the world. Difficult time of testing and startup works is against us. Qatar’s partnership will be supplying LNG into Poland for next 20 years, so it elevates Polish-Quatar’s relations to a strategic level. Commercial exploitation LNG terminal in Swinoujscie is going to reach its destination in half of 2016. What’s more, it is a great tourist attraction and very perspective  undertaking for Polish economy.