News 

US shale to help power Shell’s multi-billion dollar chemicals drive

“Royal Dutch Shell will begin construction of a new $10bn petrochemicals site in the gas-rich Marcellus shale basin in the US within the next ten weeks as part of a radical growth plan for its petrochemicals business” writes Matthew Lynn for telegraph.co.uk. The oil major told investors that global demand for petrochemicals – which are used to manufacture the raw materials used to make plastics, paints and textiles – is set to grow by around 50pc by the end of the decade, making it a key area for the company’s…

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News Oil 

BNP Paribas to stop financing shale projects

“A BNP Paribas spokeswoman declined to comment on the bank’s exposure to shale and oil sands projects, but analysts estimate that it is limited” writes Noemie Bisserbe for marketwatch.com. Earlier this year, BNP Paribas said it won’t finance coal energy sector companies that aren’t seeking to diversify their energy sources.BNP Paribas won’t finance oil or gas projects in the Arctic region either, the bank said.The shale oil sector has boomed over the last three years, despite a steep drop in oil prices.BNP Paribas is one of the first banks to…

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News Oil 

Most US oil executives see prices below $60 per barrel through 2018

“Nearly two-thirds of U.S. oil executives see crude oil prices remaining below $60 per barrel through 2018 and not hitting $70 until at least the next decade, according to a survey published on Wednesday by consultancy Deloitte Services” writes Andrey Rudakov for cnbc.com. U.S. oil prices fell slightly on Wednesday to $50.79 per barrel.The mood among executives was less pessimistic for natural gas prices, with those polled saying they expect prices to rise above $3 per million British thermal units into next year.Half of executives polled said they expect capital…

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News Oil 

One of Europe’s biggest investment banks plans to stop working with shale oil players

“BNP Paribas, France’s biggest listed bank, said on Wednesday it would no longer work with oil and natural gas companies that primarily do business in shale or oil sands as it plans to boost support for renewable energy projects” writes unknown author for cnbc.com. The bank also said that it would no longer finance new projects that are primarily involved in the transportation or export of oil and gas from shale or oil sands. BNP Paribas’s smaller rival Societe Generale said in October last year that it would quit financing…

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News Oil 

OPEC urges US to cut shale production

“OPEC General Secretary, Mohammed Barkindo, called on U.S. shale oil producers to help support plans to curb global oil supply on Tuesday, warning that unprecedented measures may be necessary next year in order to rebalance the oil market” writes Sam Meredith for cnbc.com. “We urge our friends, in the shale basins of North America to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle,” Barkindo said.North American shale drillers have helped production soar by nearly 10 percent…

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News Oil 

OPEC Secretary General urges U.S. shale oil producers to help cap global supply

“NEW DELHI (Reuters) – OPEC’s Secretary General Mohammed Barkindo on Tuesday called on U.S. shale oil producers to help curtail global oil supply, warning extraordinary measures might be needed next year to sustain the rebalanced market in the medium to long term” reports businessinsider.com. “We urge our friends, in the shale basins of North America to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle,” said Barkindo. Source: businessinsider.com Share This:

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News Oil 

Oil drillers are trying to fix their finances. They better hope crude stays above $50, says Moody’s

“Oil prices below $50 are simply not going to cut it in the U.S. shale oil patch, Moody’s analysts say in a new research note” writes Brittany Sowacke for cnbc.com. The U.S. Energy Department projects oil prices will average $48.83 next year and $49.58 in 2018.Exploration and production companies have managed to drive down their costs since oil prices crashed in late 2014.U.S. shale drillers rely on expensive advanced drilling methods like hydraulic fracturing.WTI has averaged $49.34 a barrel, while natural gas prices were at $3.02 in the first eight…

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News Oil 

Oil resumes climb on talk of extended production cut

“The biggest headwind to those production cuts has been attributed to U.S. shale output” writes Christopher Alessi for marketwatch.com. Iraq’s oil minister maintains that his country is “fully compliant” with the deal.Crude-oil futures climbed Tuesday morning, with the U.S benchmark rising back above $50 a barrel, buoyed by signals from Iraq’s oil minister that major producers within and outside OPEC could extend existing production curbs through 2018. Read: Here’s why oil prices bounced back so fast from Hurricane Harvey Elsewhere on Nymex, October gasoline RBV7, -0.09%  was trading flat at…

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Jim Chanos is skeptical on shale, betting against Continental Resources

“Short seller Jim Chanos is skeptical North American energy shale company Continental Resources will be able to pay off its debts in the coming years” writes Source Netjets for cnbc.com. Short selling is a practice in which traders can bet against a company by selling shares they don’t own and buying them back at a lower price.This is a problem with the North American shale business… Source: cnbc.com Share This:

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