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New base 1015 special 29 march 2017 energy news

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NewBase 27 March 2017 - Issue No. 1015 Senior Editor Eng. Khaled Al Awadi

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New base 1015 special 29 march 2017 energy news

  1. 1. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase 29 March 2017 - Issue No. 1015 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE fuel prices set to fall 4% in April for first time in 2017 Latest data from the Ministry of Energy reveal price declines on all fuel types from April 1 Fuel prices for April have reduced in the UAE for the first time this year, according to latest data from the Ministry of Energy. Starting April 1, prices per litre will be set at AED1.95 for Super 98, which is down from AED2.03 the previous month, while Special 95 will be set at AED1.84, down from AED1.92 and E Plus-91 will be set at AED1.77, down from AED1.85. The price of diesel has also been reduced to AED1.95 per litre from AED2.02, the ministry added. The UAE removed subsidy on petrol and diesel prices from August 2015. This comes after prices rose in February and March. In March, motorists paid Dh2.03 a litre for Super 98, Dh1.92 for Special 95 and Dh1.85 for E Plus. Diesel cost Dh2.02. In February, motorists paid Dh2 for Super 98, Dh1.89 for Special 95 and Dh1.82 for E Plus. Diesel cost Dh2 a litre. And in January, Super 98 was at Dh1.91 per litre, Special 95 at Dh1.80 and E Plus at Dh1.73. Diesel was Dh1.94. While the fuel price increases contributed to consumer price inflation in the first part of this year, they are largely driven by increases in crude oil prices – which in other ways strengthen the country’s economy. A barrel of Brent crude was trading at US$50.91 today. The price began the year at $56.82 but had been down at $46.38 before the multilateral deal late last year to cut output. Fuel prices are set by a Ministry of Energy-led committee using "benchmark prices" that have not been publicly specified.
  2. 2. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 Qatar sees Brexit as chance to supply UK more gas ( LNG ) By Reuters Qatar sees Britain's exit from the European Union as an opportunity to boost supplies of liquefied natural gas to the world's fifth-largest economy and is open to investing in British energy assets, Qatar's energy minister said. The Gulf state has 40 billion pounds ($50 billion) of investments in Britain and delivers 90 percent of Britain's imports of liquefied natural gas. Qatar, the world's biggest exporter of LNG, pledged 5 billion pounds of investment in Britain on Monday in a show of support as Prime Minister Theresa May begins the formal process of negotiating a divorce settlement with the EU. "The UK will have a new era post-Brexit ... The negotiations will start among Europeans and nobody is extremely clear about where the negotiations will lead to," energy minister Mohammed bin Saleh al-Sada said in an interview late on Monday. "However, we can sense the possibility of the UK's manufacturing power going higher, and with that the need for energy. For that, Qatar will always be there to supply the energy required. Certainly we can contribute to the UK's need."
  3. 3. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Britain started receiving LNG from Qatar in 2008 via ships that dock at South Hook in Kent, one of Europe's largest LNG terminals, which is owned by Qatar. Qatar faces rising competition in Asia from other LNG producers as new projects in the United States and Australia come online in the next few years, and Doha has said it will focus on expanding contracts in Europe. "Europe is an important market. The UK is a very important market," Sada said. When global oversupply of gas peaks in the next two to three years, a possible rise in demand for energy in Europe and Britain could present an opportunity for Qatar, he added. Doha has made billions of dollars securing long-term contracts with Asian consumers such as Japan and has the world's largest fleet of LNG carriers. Like other Gulf economies, Qatar is trying to restructure its economy to rely less on hydrocarbons, and Sada said Britain could contribute. "They can also help us in our endeavour of diversifying the economy - we can complement each other." Sada said Qatar supported a free-trade agreement with Britain that the six-nation Gulf Cooperation Council, which also includes Saudi Arabia and the United Arab Emirates, hopes to draw up ahead of Brexit to ensure preferential arrangements. "Qatar is supporting that. That would be excellent. Qatar will do its best to further this agreement." The head of Qatar Petroleum has said Qatar plans to increase its investments in upstream energy assets overseas. It has been exploring for gas in Cyprus and looking at assets in Mozambique, sources told Reuters last year. Asked whether Qatar would consider investing in British energy assets, Sada said: "Although I cannot mention projects by name, Qatar is fully open-minded about considering projects as long as they are economically viable."
  4. 4. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 Kuwait:Petrofac awarded US$1.3 billion EPC project in Kuwait PetrolFac Petrofac has been awarded a contract for Kuwait Oil Company’s (KOC) gathering centre project, GC 32, located in the Burgan oil field, south east of Kuwait. The lump-sum engineering, procurement and construction (EPC) project, valued at approximately US$1.3 billion, is the first sour gathering centre to be developed in the field and will process crude oil and associated gas recovered from the Arifjan, Marat, Minagish Oolite and Burgan Wara high Hydrogen Sulphide fields. Work will begin shortly and is scheduled to be completed in mid 2020. The scope of work for GC 32 includes greenfield activities with tie-in works to existing brownfield infrastructure, and will have the capacity to produce around 120,000 barrels of oil per day together with associated water, gas and condensate. Marwan Chedid, Group Chief Operating Officer, said: 'Kuwait is one of our core markets in the Middle East and we have been executing projects in the country since the early 1980’s. We are proud to continue our association with KOC and look forward to working closely with them to deliver the project.'
  5. 5. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 UAE: Dolphin Energy invites bids for new UAE gas pipeline https://www.meed.com/sectors/oil-and-gas/gas/dolphin-energy-invites-bids-for-new-uae-gas-pipeline/5013784.article?blocktitle=News-2&contentID=24320 Local Dolphin Energy has invited companies to bid on a project to connect its natural gas pipeline network to the UAE emirates of Sharjah and Ras al-Khaimah. Dolphin Energy’s main pipeline was commissioned in 2007 and imports gas to Abu Dhabi from Qatar and distributes the fuel to other areas including Dubai, Al-Ain and Fujairah. The new pipeline project will connect to an existing pipeline in Al-Ain and run for 70 kilometres through the emirate of Sharjah to a Sharjah National Oil Company (SNOC) connection point. Dolphin Energy has asked companies to bid for the engineering, procurement and construction (EPC) tender for the project by 13 April. Companies prequalified to bid for the contract are thought to include: Consolidated Contractors Company (CCC; Athens-based) · Dodsal (UAE) · Larsen & Toubro (India) · Punj Lloyd (India) · Saipem (Italy) In 2014, Dolphin Energy awarded the front-end engineering & design (feed) study for the project to Austria’s ILF Consulting Engineers and invited companies to prequalify for the EPC contract. However, the EPC tender was delayed by two years. The original Dolphin export pipeline, connecting Qatar’s North Field with Taweelah in Abu Dhabi, was completed in 2007. Proposed Pipeline Sajaa
  6. 6. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 The company is transferring about 2.3 billion cubic feet a day (cf/d), which is distributed via three Dolphin-owned pipelines to Fujairah, Al-Ain and across the border into Oman. According to DEL (PR 05/10/2016) , Qatar Petroleum (QP) and Dolphin Energy Limited (Dolphin) entered into a new long term gas sale and purchase agreement (SPA), under which QP will deliver additional quantities of gas to Dolphin for export to the UAE through the existing 48-inch subsea pipeline. The ceremony was also attended by HE Dr. Sultan Ahmed Al Jaber UAE Minister of State and CEO of ADNOC group. The agreement was reached and signed in the framework of the brotherly relations and cooperation between the State of Qatar and the United Arab Emirates, and in line with the goals set by the wise leaderships of both countries to expand areas of cooperation and pursue of mutually beneficial opportunities between them in all fields, especially in the field of energy. The SPA was signed today in Doha by Mr. Saad Sherida Al-Kaabi, President and CEO of QP and Mr. Ahmed Ali Al Sayegh, Managing Director of Dolphin. Mr. Saad Al-Kaabi, QP President and CEO described the agreement as another important achievement for the first cross-border gas pipeline project in the Middle East demonstrating Qatar’s continued commitment to regional energy cooperation. Mr. Al-Kaabi said: “This agreement reinforces confidence in Qatar as a reliable regional and international supplier of gas as a clean energy source.” Mr. Al-Kaabi also stressed QP’s commitment to meeting the UAE’s rising demand for gas. He added “QP’s support of the flagship Dolphin Gas Project has been instrumental in meeting the gas requirements of our brothers in the United Arab Emirates, and this new agreement is another strong testament to our commitment in this regard.” Mr. Al-Kaabi concluded. Commenting on the occasion, Mr. Ahmed Al Sayegh, Dolphin Managing Director, said: “These developments help support the UAE’s development and transition to a low carbon economy and demonstrate our continued commitment to enhance energy security for the UAE by offering a source of reliable, clean energy for power generation. The success of the Dolphin Gas Project is, in part, driven by our ability to meet the needs of our customers. As their requirements have changed, so we have responded accordingly and worked closely with our strategic partner, QP, to make this possible. This agreement also illustrates the strong bond we share with our brothers in Qatar and I would like to take this opportunity to thank QP whose continuous support has helped create a new chapter in our successful history. This is a proud day for us all.” The Supply of the additional gas quantities under this new agreement will be allocated to SEWA and RAKGAS LLC using the existing UAE Eastern Gas Distribution Network. Dolphin started gas supply to the UAE in July 2007 and in February 2008, achieved full throughput of 2 billion standard cubic feet per day. Last year, the company upgraded its compression facilities and installed three new export gas compressors at its gas processing plant in Ras Laffan to match its export gas pipeline’s supply capacity of 3.2 billion standard cubic feet per day. Dolphin Energy is a joint venture of Abu Dhabi’s state-owned Mubadala Development Company, US-based Occidental Petroleum and France’s Total.
  7. 7. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Oman: Canada’s APEX sets sights on Block 36 prospects Oman Observer - Conrad Prabhu in Business Canada-based upstream energy firm Allied Petroleum Exploration Inc (APEX), whose 100 per cent interest in Block 36 in southwest Oman was endorsed by Royal Decree 15/2017 issued last week, says it has its sights on two promising prospects with a combined reserves potential of over 300 million barrels. f The Royal Decree issued on March 19, 2017, ratifies the decision of the local subsidiary of Norwegian oil and gas firm DNO Oman AS to withdraw from Block 36 in which it had a 75 per cent interest. DNO had acquired the 75 per cent interest in a farm-out concluded by APEX in September 2013. As a result of DNO’s withdrawal from the Block, APEX now regains 100 per cent interest and operatorship of the Block. According to Alberta-based APEX, the work carried out in conjunction with its farm-out partner over the past four years has “dramatically de-risked the block, and identified the areas where chance of exploration success is highest”. “APEX currently plans to acquire high- resolution seismic over two of the larger prospects (with combined reserves of over 300 million barrels) and prepare for the drilling of the next exploration wells,” the Canadian firm stated on its website. APEX was awarded the sprawling 18,500 sq km concession, situated along the Sultanate’s borders with Saudi Arabia and Yemen, in September 2011. A pair of deep wells drilled previously on the relatively underexplored concession had hydrocarbon shows with over 40 metres of Silurian – one of the main source rocks that generated oil for giant fields elsewhere in the Gulf region. During the period of the farm-out, reprocessed and newly acquired seismic yielded a number of prospects and numerous exploration leads, said APEX, noting that the reserve size of the prospects and leads ranges from 50 to 250 million barrels. Also as part of its obligations, DNO drilled the first exploration well under the farm-out. Hayah-1, drilled in May 2016, targeted an undrilled portion of the Block, reaching a depth of 3,010 metres. At the time of its withdrawal from the Block, both DNO and APEX had invested a total of around $31 million in exploration activities, the latter noted. “Based on the important geological insights provided by the Hayah well, APEX has developed a new and promising structural model of the prospectivity of the Block, firming up the potential of certain of the leads and identifying several promising new plays,” it added. A private Canadian company engaged in the exploration, acquisition and development of oil and natural gas reserves, APEX is also actively pursuing further exploration and development opportunities elsewhere in Oman and the wider region.
  8. 8. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 Singapore: Self-driving trucks are coming to Singapore's ports This article is published in collaboration with Quartz. Singapore’s shipping ports are already among the busiest and most efficient in the world. Now the city-state is exploring a new way to make them run even better: convoys of driverless trucks operating between terminals. The idea is that a lead truck will be driven by a human, with the follower vehicles being automated. This week, authorities signed agreements with two truck makers with strong track records in self-driving technology— Sweden’s Scania and Japan’s Toyota Tsusho—to work on the project. In the first phase, lasting about a year and starting this month, each company will design, develop, and test a truck platooning system in their respective countries. In the second, one company will be chosen for local trials on a 10 km (6.2 miles) stretch of Singapore’s West Coast Highway, hauling cargo between the Brani and Pasir Panjang terminals. Image: Morgan Stanley With the transport ministry and port authority teaming up on the project, Singapore authorities made the request for proposals back in October 2015. They noted at the time: Autonomous truck platooning technology, which comprises one human-driven truck with one or more driverless trucks following behind, will help alleviate the shortage of manpower in the trucking industry and raise productivity with more cargo transported per driver. By shifting more haulage activities to off-peak hours, this can also help improve traffic flow during peak periods.
  9. 9. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 The companies will also work to “fully automate the processes for precise docking and undocking of cargo,” according to the agencies. For the human drivers selected for the project, it will mean gaining valuable experience in a promising new area. Not many drivers are well versed in leading a series of automated trucks down a highway. Others, of course, will view the project with trepidation, fearing what it might mean for the future of truck-driving as a profession. There’s little surprise in Singapore showing a strong interest in the idea. The tightly controlled city- state has long been a leader in creating highly managed driving environments. In 1998 it became the first country to manage traffic via electronic road pricing, and last August it was the first to offer self-driving taxis, beating Uber to the punch.
  10. 10. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 NewBase 29 March 2017 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil rises on Libyan supply disruptions, likely OPEC output cut extension..Reuters + NewBase Oil prices on Wednesday extended gains from the previous session, lifted by supply disruptions in Libya and expectations that an OPEC-led output reduction will be extended into the second half of the year. Prices for front-month Brent crude futures, the international benchmark for oil, had risen 14 cents from their last close to $51.47 per barrel by 0127 GMT. In the United States, West Texas Intermediate (WTI) crude futures were up 20 cents at $48.57 a barrel. Both crude benchmarks rose by more than 1 percent the previous day. Oil production from the western Libyan fields of Sharara and Wafa has been blocked by armed protesters, reducing output by 252,000 barrels per day (bpd), a source at the National Oil Corporation (NOC) told Reuters late on Tuesday. "That (Libya), along with the Iranian oil minister saying there is likely to be an extension to the production cut deal helped crude oil rally overnight," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. The Organization of the Petroleum Exporting Countries (OPEC), along with some other producers including Russia, have agreed to cut production by almost 1.8 million bpd during the first half of the year in order to rein in a global fuel supply overhang and prop up prices. But as markets remain bloated halfway into the cuts, there is a broad expectation that the supply cuts will be extended into the second half of the year. Oil price special coverage
  11. 11. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 Despite the rising consensus of extended cuts, the OPEC-led strategy to re-balance oil markets is not without controversy. As OPEC and especially Saudi Arabia cut their production, other producers not participating in the cuts have been quick to fill the supply gap and gain market share. In the United States in particular, shale oil drillers have seized the opportunity to ramp up output and exports. As a result, China became the third biggest overseas destination for U.S. crude oil in 2016, according to data from the Energy Information Administration (EIA), up from ninth position the previous year. "In 2016, U.S. crude oil exports averaged 520,000 bpd, 12 percent above the 2015 level, despite a year-over-year decline in domestic crude oil production," the EIA said. With U.S. oil production rising sharply again this year, traders expect American exports to surge further in 2017. The production drop in Libya, which was pumping 700,000 barrels a day before the pipeline halt, is at least temporarily easing concern that rising U.S. supply is countering the effect of curbs by the Organization of Petroleum Exporting Countries and its allies. U.S. industry data on Tuesday was said to show crude inventories climbed, while a government report Wednesday is forecast to show stockpiles expanded. Six OPEC nations have joined with non-member Oman to voice support for prolonging their cutspast June. “The market has become quite accustomed to volatility when it comes to Libya and their production coming and going,” said David Lennox, a resource analyst at Fat Prophets in Sydney. “There are a number of headwinds to oil prices, including rising U.S. output and stockpiles.”
  12. 12. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase Special Coverage News Agencies News Release 29 March 2017 $50 Oil Price Is The Market's Magic Number By Liam Denning Round numbers enjoy an enduring and somewhat mystifying popularity in markets. A few years ago, the oil market had a very round and pleasing one in the form of $100. These days, it makes do with $50. Even this diminished level has a talismanic potency. On Monday, Wood Mackenzie, an energy consultancy, announced that oil companies rushed to add hedges on their production in the last three months of 2016 at a faster pace than the previous four quarters, based on its analysis of 33 large producers. The trigger: oil's jump above $50 a barrel after OPEC and several other countries announced supply cuts at the end of November. You can see what they mean in this chart showing how producers' short positions in Nymex crude oil futures -- a proxy for how much future production E&P companies are selling -- have been changing over time: Hedgehogs The OPEC supply cut pushed oil above $50 a barrel for three months, leading E&P companies to lock in hedges on their future output Still, 50 isn't some magic number. Leaving aside that we all know the real magic number is actually three, the true significance of $50 oil only becomes apparent when you consider numbers on either side of it; namely $40 and $60.
  13. 13. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Despite the big strides in productivity made by shale drillers, $50 isn't a comfortable price level for them. Take five large domestic producers: Concho Resources Inc., Continental Resources Inc., Energen Corp., EOG Resources Inc. and Pioneer Natural Resources Co. Collectively, they produced 1.24 million barrels of oil equivalent per day in 2016, with 55 percent being crude oil. Their realized price for that crude -- which differs from the headline Nymex number -- was a little less than $40 a barrel before any hedging impact, data from their 10-K filings show. Once you factor in the natural gas and liquids making up the other 45 percent of their output, their overall realized price per barrel of oil equivalent was just $27 and change -- lower even than in 2009 just after the financial crisis. Bump the realized price for crude oil up to $50, and, all else equal, their realized price overall rises to a little less than $33 -- better, but still only about half of what they got in 2014 before the crash took hold. Indeed, you would have to put the crude price up to about $65 before their overall realized price for 2016 nudges back above $40 (again, all else equal). However, we can all agree that $50 is waaaaay better than $40. And hedging is about managing risk rather than taking a firm view on some price level being the 'right' one. So when E&P companies took their chance to add hedges after the OPEC meeting, what they were doing was making sure they lived to fight another day. This is especially important in an industry whose spending habits make it reliant on selling new shares and tapping the bond market to make its cash flow math add up. Investors and bankers are more persuadable when the oil price begins with a "5" or more, rather than less. It's worth pointing out that while the average yield on energy junk bonds had stayed flat around the 7.5 percent mark in the two months leading up to OPEC's meeting in late November, it dropped by more than a percentage point in the two weeks following. In the past week, oil futures for 2018 have dripped back below $50 a barrel, making it less appealing to hedge next year's production. This, in turn, could cause the ramp-up in shale drilling activity seen in recent months peter out, meaning the recovery in U.S. oil production softens later in 2017. The Day After The average oil futures price for 2018 has dipped back below $50 a barrel This is a critical number to watch. Andy McConn, an analyst at Wood Mackenzie, reckons the real
  14. 14. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 magic number for 2018 is more like $55 or $65 a barrel. At that level, he says, many larger E&P companies could fund growth of 5 or 10 percent from their own cash flow. All of which helps explain why the big event of the weekend, the meeting of the committee monitoring the supply cuts announced by OPEC and its partner countries, was a bit of a non- event. Oil sold off on Monday due to the lack of a clear signal that the cuts would be extended past June. But OPEC's de facto leader, Saudi Arabia, couldn't really let that meeting have any clearer outcome. OPEC's production surged in the run-up to November's agreement, after Saudi Arabia in September signaled its willingness to support prices. Promising a continuation of cuts now, rather than waiting until May's formal meeting, would simply be a signal for Saudi Arabia's partners to slack off on compliance -- as well as, of course, give shale producers more of a chance to hedge. Better to keep everyone at least a little uncertain about what happens next. As I wrote here, I doubt Saudi Arabia's ability to manage expectations this finely. Partly, that's because of the need to prime the market for the upcoming IPO of Saudi Arabian Oil Co., or Saudi Aramco, which appeared to move a step closer with news that the country is slashing the company's tax rate. But it is also because the magic range between despair and euphoria for oil producers of roughly $40 to $60 has become so tight.
  15. 15. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscription emails please contact Hawk Energy Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 Mobile: +97150-4822502 khdmohd@hawkenergy.net khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels. NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase March 2017 K. Al Awadi

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