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Edition One - April 201
MAGAZINEOilVoice
Fending off a sea of troubles
2012 Budget pushes drilling to next level
Kenya hits oil
The Bakken success story
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Adam MarmarasManager, Technical Director
Welcome to the first edition of the OilVoiceMagazine. We've taken the very best featuredcontent from our online site, and assembled it inan easy to read electronic format. We hope youlike it!At OilVoice we've always experimented with
different ways to deliver oil and gas news. Backin 2002 when the term 'RSS' was relativelyunknown, we rolled out dozens of feeds for ourusers to subscribe to. That service is now usedon a daily basis by thousands of people. WhenTwitter was still a baby we signed up and started
, notdelivering all our headlines out to the worldknowing if the service would take off or not.Today, 2000 people receive our 40+ tweets aday. And finally, with the PC losing ground totablets, we recently announced - anOilEarth.comiPad friendly site that presents headlines in awhole new way. We never stop innovating, andkeeping abreast of all the latest technologies issomething we enjoy doing.Our latest contribution to the industry is the
magazine you are reading now. Available inelectronic format only, we hope you find it agreat read. By analysing the pageview statisticson OilVoice we can see what articles are drawinginterest from the oil and gas community. Thoseare then harvested for the magazine. All killer,no filler - as they say.Special thanks must be made to the authors
who have contributed the fantastic content insideOilVoice Magazine. We're lucky enough to havecontributions from the top writers in thebusiness, and it goes without saying that if youlike what you read, then please visit theirwebsite and see what else they have to say.We'd love to hear from you too, so if you'd liketo have an article appear in the next edition,then please . get in touch Thanks for reading!
Adam Marmaras
OilVoice
Issue 1 APRIL 2012
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Contents
Aprils Featured Authors Biographies of this months featured authors. 3Who will survive oil refinery competition from the Middle East?By Hanife Mehmet 5Review: The Middle East: Still on top...By Richard Etherington 5Recently Added Companies An overview of the recent companies added to the OilVoice database. 7North Sea caught in Scottish independence rowBy Hanife Mehmet 8Insight: The US locomotive gets under way!By David Bamford 8Exploration: The Bakken success storyBy David Bamford 9The price of safety in the spotlight againBy Hanife Mehmet 10Watching World Energy: Showdown in SudanBy Eric Watkins 11Operational Energy: Fending off a sea of troublesBy Eric Watkins 13Exploration: What's happening in the Arctic?By David Bamford 162012 Budget pushes drilling to next levelBy Hanife Mehmet 16Watching World Energy: Turmoil in the South China SeaBy Eric Watkins 17Watching World Energy: Rattling the supply chainBy Eric Watkins 19Exploration: Arctic Gas Hydrates - a stupendous gas resource!By Halfdan Carstens 20Review: Is the oil industry of Brazil progressing?By Richard Etherington 21Featured University of the MonthThis month we are featuring Heriot-Watt University 23Review: Can Petrobras deliver?By Richard Etherington 24Watching World Energy: Crossing swords in the Gulf By Eric Watkins 26Kenya hits oilBy Hanife Mehmet 28Doing Business with Petrobras: How to score a goalBy Camilo Muoz 29Watching World Energy: A double whammy on IranBy Eric Watkins 30
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Aprils Featured Authors
OilVoice is always on the lookout for quality, original content. We receive submissionsfrom people in the industry on a regular basis, who in turn benefit from our large user
base. You get a chance to broadcast to the industry and spread the word, and we getfantastic original content. Get in touch for more details!
Hanife Mehmet
Contract Jobs
Hanife Mehmet is a copywriter working for contractjobs.com, the contractonly job board and news resource for freelance professionals. The siteprovides information for professional temporary workers from all leadingindustry sectors including the oil and gas sector.
Richard Etherington
OilEdge
Richard Etherington works as a freelance journalist. Richard, a BA HonsPolitical Science graduate, is also a fully trained sub-editor and reporter.
David Bamford
OilEdge
David Bamford is non-executive director of Tullow Oil, and a past head of exploration, West Africa and geophysics with BP.
Eric Watkins
Oil Diplomacy
Oil Diplomacy produces news, analyses, commentary and tailoredresearch concerning the global oil and gas industry. Watching WorldEnergy, which appears daily, comments on current events in the energyindustry
Halfdan Carstens
GEO ExPRO
Halfdan obtained a M.Sc. in Geology from the University of Oslo and then
worked for Saga Petroleim for five years including a year in the US. Healso worked for Nopec and PGS, before becoming Founding Editor of GEOExPro Magazine. He is Editor of the Norwegian geological magazine GEO.
Camilo Muoz
Translation Source
Translation Source helps companies communicate worldwide by offeringcomprehensive multilingual solutions based upon client needs. Oursolutions are developed in more than 140 languages and include a fullrange of language translation and localization services, internationaltraining and e-learning development, interpretation, instruction, bilingualstaffing and other supporting linguistic services.
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Hanife MehmetContract Jobs Submitted March 01, 2012
Who will survive oilrefinery competition fromthe Middle East?
Indian Oil refinery Essar has put forth
the notion that the UK may well see
refinery closures in the near future, due
to stiff competition. While bigger
establishments in Cheshire may be able
to handle the tough economic market,
rivals may find the profitability balance
too difficult to achieve.
Following a collapse of a refinery in
Coryton, which supplied 20% of the
south-east's fuel, competition presented
by the middle-east and India has gained
more momentum. The Petroplus owned
site went into administration in January,
putting over 900 jobs on the line.Chief executive at Essar stated: 'There is
some sort of structural change in the
refining industry globally. Refineries that
were small-sized or low-complexity are
being replaced by large, complex
refineries mostly built in the Asia-Pacific
region Those refineries that are not
economically sustainable or of low
complexity will find it much harder to
survive in this marketWe believe that
there has to be some shake-up in the
European refining industry and that
uneconomic capacity will move out."
So if this 'shake-up' never materialises,
what will this mean for oil and gas
contract jobs ? Many of those working in
smaller refineries may be questioning
their current vacancies.
Richard EtheringtonOilEdge Submitted March 05, 2012
Review: The Middle East:Still on top... It is hard to talk about the Middle East
region without mentioning its number
one cash crop, oil, in the same breath.
More recently, however, the words
'political' and 'tension' have acquired
similar status.
While the Middle East may be continue
to be the 'bread basket' of the global oil
industry, the energy risks that come
with it will never been far behind.
Indeed, the risk of a damaging shock is
always just around the corner, and the
same could be said for a potential spike
in prices.
Although the popular political unrest
that spread rapidly across the MENA(Middle East & North Africa) region last
year hit the North African nations and
subsequently the local oil industry the
hardest, Middle Eastern operations did
not escape unscathed. Indeed, the
ongoing violence and uprisings in both
Syria and Yemen continue to grab
headlines and the attention of world
leaders even today. The political tension
in these two nations also poses serious
questions of Middle East oil production
outside of the OPEC (Organisation of the
Petroleum Exporting Countries)
grouping.
Despite the recent volatility, the Middle
East's dominance of global oil supply is
unlikely to be challenged anytime soon.After all, the Persian Gulf states are sat
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upon huge reserves and as such they
remain the key region for oil export.
Among them, however, is a clear wild
card: Iraq. Despite being a stellar
producer with strong potential for future
output growth, political agendas may
serve to cloud the country's medium to
long-term oil industry growth ambitions.
The escalation of the war of words
between Iran and some of the world's
leading powers has stepped up a notch
this year, over the former's development
programme for nuclear energy. On the
back of this earlier this month, Iran
announced that it would be stopping the
sale of crude oil to British and French
firms, pledging to sell to new customers
instead. The pre-emptive move came in
the wake of the US urging its allies to
scale down on their purchases of Iranian
crude as part of the foundations for a
broader scheme of sanctions. In turnthis prompted the European Union (EU)
to ban all oil purchases from Iran.
However, in knowledge of the fact that
the ban would not take full effect before
the end of 2012, Tehran acted first to
send out a clear political message to the
allies. And this message was only ever
going to lead to one thing: a spike in
prices. Indeed a halt of Iran's oil exports
to Organization for Economic
Cooperation and Development (OECD)
nations could well trigger as much as a
20% to 30% spike in the price of a
barrel of oil, according to the
International Monetary Fund (IMF).
In fact, helped in part by Iran's dispute
with a number of Western nations,
prices have already begun climbing. At
the time of writing on February 23,
Brent crude futures have risen by 11%
in the 2012 year-to-date to above $120
a barrel (up by around $12 from the
start of the year). Moreover, around 9%
of that jump higher has come in the
month of February alone, as the rhetoric
surrounding the Iran embargo hardened.
Although prices are widely expected to
continue trending higher in the near
term, the likely scenario is that the likes
of Saudi Arabia, Libya and Iraq will step
in and increase their respective supplies,
helping to normalising prices somewhat
and subsequently help cool nerves
surrounding Iran's role as an oil
exporter.
In sum it appears that while the Middle
East may be continue to be the 'bread
basket' of the global oil industry, the
energy risks that come with it will neverbeen far behind. Indeed, the risk of a
damaging shock is always just around
the corner, and the same could be said
for a potential spike in prices.
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Recently Added Companies
The OilVoice database has a diverseselection of company profiles, covering
new start-up companies through tomulti-national groups. Each of theseprofiles feature key data that allowsusers to focus on specific information ora full company report that can beaccessed online or printed and reviewedlater. Start your search today!
Cardinal MidstreamNatural Gas
Cardinal Midstream, LLC is a natural gasmidstream company focused on providingexceptional customer service in the areasof natural gas gathering, transportation,processing and treating.
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Hawk ExplorationCrude Oil and Natural Gas
Hawk is a company engaged in the
exploration, development and productionof conventional crude oil and natural gas inwestern Canada and is based in Calgary,Alberta.
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North Atlantic DrillingOffshore Drilling
North Atlantic Drilling is a leading offshoreharsh environment drilling company,aiming to be their customers' mostimportant partner in making oil and gasavailable in a safe and cost-effectivemanner.
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Oil Refineries Ltd.Oil Refinery
Oil Refineries Ltd. (ORL), located in thebay area of Haifa, is Israel's largest Oilrefinery.
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Surmont EnergyOil Sands
Surmont Energy Ltd is a privately held oilsands company founded in 2011 andheadquartered in Canada. Their philosophy
was built on a foundation of integrity,honesty, scientific principle, creativeapplications and hard work.
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Grand Gulf EnergyConventional Oil and Gas
Grand Gulf Energy is focused on low-risk,conventional oil and gas plays in Louisiana,Texas and Arkansas, close to existinginfrastructure and close to or withinexisting oil and gas production.
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Texas Energy Group Crude oil and natural gas
Texas Energy Group, LLC (TEG) is anAustin, Texas based oil and gas explorationand development company specializing inbringing industry prospects to the privateinvestor.
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NAL Energy Corp.Oil and Gas
NAL Energy Corporations strategy is todeliver total return to its investors whichcombines income with modest growth inthe Canadian upstream oil and gasindustry.
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List your business free of charge onOilVoice in a few simple steps.
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Hanife MehmetContract Jobs Submitted March 01, 2012
North Sea caught inScottish independencerow
While Independence is very much still on
the political agenda concerning Scotland,
new fuel to the fire has been added in
the form of North Sea Oil. According to
claims, Scotland would have been in a
much better position compared to the
rest of the UK if it's entire North Sea Oil
revenue was included in the Scottish
government's annual analysis report.
Although the opposition have expressed
that this in fact shows that Scotland is
too heavily dependent on North Sea oil
revenue, many also believe that this
could hold the key to exposing Scotland
as far more financially sound than therest of the UK.
If Scotland were to gain full control of
its share of North Sea oil, it would be
worth around 81% of the rest of the
UK's North Sea income. Scottish finance
secretary, John Swinney stated on the
matter: "With responsibility for our own
finances and our own vast natural
resources, we will be able to make
choices in our own best interestsWith
independence, we would control the
fiscal levers we need to suit our own
economic circumstances and maximise
Scotland's potential to secure new
investment and jobs."
If 'full control' was eventually granted to
the Scottish Government, it is possible
that oil and gas contract jobs could
increase among local workers. But
before this is even considered,
oppositional opinion shows that greater
emphasis needs to be given to the
Scotland's apparent dependency on
separate UK spending. Whatever the
outcome, possible consequences from
both propositions are too risky for a
decision to be decided upon straight
away.
David BamfordOilEdge Submitted March 12, 2012
Insight: The USlocomotive gets underway!
A recently released report states that, in
total, an estimated 26 billion to 61 billion
barrels of economically recoverable oil
could be produced in the United States
using currently available CO2-EOR
technologies and practices, or potentially
more than twice the country's proved
reserves.
Expanded use of CO2-EOR also can
advance the development of
infrastructure needed for long-term
capture, transportation and storage of
carbon emissions.
The US National Enhanced Oil Recovery
Initiative (NEORI) was formed to help
realize CO2-EOR's full potential as a
national energy security, economic and
environmental strategy. Organized and
staffed by the Center for Climate and
Energy Solutions (C2ES) and the GreatPlains Institute (GPI), the Initiative
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brought together a broad and unusual
coalition of executives from the electric
power, coal, ethanol, chemical, and oil
and gas industries; state officials,
legislators and regulators; and
environmental and labor
representatives.
A great report is available - I offer just
one extract:
'Amidst economic uncertainty, fiscal
crisis and political division over energy
policy, carbon dioxide enhanced oil
recovery (CO2-EOR) offers a safe andcommercially proven method of
domestic oil production that can help the
United States simultaneously address
three urgent national priorities:
Increasing our nation's energy
security by reducing dependence
on foreign oil, often imported
from unstable and hostileregimes;
Supporting job creation,
increasing tax revenue, and
reducing our trade deficit by
keeping dollars now spent on oil
imports here at home and at
work in the U.S. economy; and Protecting the environment by
capturing and storing CO2 from
industrial facilities and power
plants, while getting more
American crude from areas
already developed for oil and gas
production.
A largely unheralded example of
American ingenuity, CO2-EOR was
pioneered in West Texas in 1972 as a
way to sustain oil production in
otherwise declining oil fields. It works by
injecting CO2 obtained from natural or
man-made sources into existing oil fields
to free up additional crude oil trapped in
rock formations. In this way, CO2-EOR
can significantly extend the lifespan and
revitalize production of mature oil fields
in the United States." Exactly!!
David Bamford
OilEdge Submitted March 13, 2012
Exploration: The Bakkensuccess story
Discovered in the 1950s, North Dakota's
Bakken Formation oil production was
just 1,500 bpd in 2004.
Today, it exceeds 440,000 bpd and is
expected to be 700,000 bpd within the
next few years.
Just what is going on there? The longer
version of this article is by Tom Smith
and can be found in Geoexpro. (Page 52
or page 50 in the pdf!).
The Bakken is one of a growing number
of shale formation success stories,
thanks to new, innovative technologies
that make unconventional plays
possible, as well as to the constant quest
of the oil and gas companies to find new
reserves.
The increase of Bakken oil production in
North Dakota has come within the past
five years. In the beginning of 2007,
North Dakota had 303 wells producing
12,000 bopd. By early 2009, thatnumber had risen to 904 wells producing
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106,000 bopd.
Jump to November of 2011 (the most
recent date published for North Dakota)
where 3,118 wells were producing
443,425 bopd.
The North Dakota Department of
Mineral Resources predicts that oil
production from the Bakken and Three
Forks Formations will exceed 700,000
bpd in the next four to seven years.
North Dakota is not the only area
currently with Bakken production.
Neighbouring Montana, where the
present oil boom originated (see GEO
ExPro Vol. 7, No. 2), has been producing
a steady 64,000 boepd. Further north in
Canada, production is 75,000 boepd. In
total, there are around 5,700 producing
wells, with about 2,000 new wells to be
drilled this year.
The Bakken Formation is divided into
three informal members and lies
between the Three Forks and Lodgepole
formations. The upper and lower shalemembers are world class source rocks.
While the middle member is the primary
reservoir target, all the units shown are
potential reservoir targets, with oil
production from the Three Forks
Formation growing rapidly.
Hanife MehmetContract Jobs Submitted March 15, 2012
The price of safety in thespotlight again
Since the oil spill in the Gulf of Mexico,
health and safety has been on every oil
and gas professional's lips when
engaging with new projects. But perhaps
it's a case of lesson not learnt for some
UK oil and gas companies according to
Green MP, Caroline Lucas.
While UK companies are putting all their
efforts into projects concerning Artic
Water resources, Lucas has suggested
that financial and environmental factors
have been put in the side lines. She
stated: "There is no reason to believe
that that any lessons have been learned
from the Deepwater Horizon blowout.
They seem to be shutting their eyes and
crossing their fingers that they will not
have a spill and it beggars belief that
they are not able to tell shareholdershow much it would cost to deal with a
worst case scenario. Either it has not
been done or we were not being told,"
Shell and Cairn energy have been put in
the firing line for not putting forth
pollution information and safety
procedures to investors, leaving many in
the dark. It may be a case of too little
too late, as Cairn have already started
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drilling off the coast of Greenland and
Shell have proposed to start their drilling
expedition this coming summer.
Shell have defended their lack of safety
information by stating that they had not
attached fixed prices to spill clear ups
due to the fact that the risk was 'very
small'. While the area in question could
open up hundreds of oil and gas contract
jobs, the battle between safety and
diving straight in continues between
green MP's and oil and gas companies
continues.
Eric WatkinsOil Diplomacy Submitted March 19, 2012
Watching World Energy:Showdown in Sudan
Actor George Clooney, fresh off a visit to
the White House last week, found
himself a guest of another branch of
government a few days later: the US
Secret Service. Along with Clooney, at
least eight others were given similar
accommodations, including his father
Nick Clooney.
They were all arrested after staging a
protest at the Sudanese embassy in
Washington D.C. Their demand? That
Sudanese President Omar al-Bashir
immediately end his government's
blockade of food and humanitarian aid
intended for people in the Nuba
Mountains and Blue Nile regions.
After speaking on the steps of the
embassy to hundreds of activists,Clooney along with other activist leaders
were asked by police to leave. When
they refused, officers swooped in for the
arrests.
The protestors included Martin Luther
King III, NAACP President Ben Jealous,
Enough Project Co-Founder John
Prendergast, President of United to End
Genocide Tom Andrews and four US
Congressmen: Jim McGovern, D-Mass.,
Al Green, D-Texas, Jim Moran, D-Va.,
and John Olver, D-Mass.
CLOONEY'S EXPERTISE CITED
If anyone doubts Clooney's sincerity in
protesting on behalf of the beleaguered
Sudanese people, they need to think
again.
The Hollywood actor, nominated for an
Oscar this year, has long been on this
issue as underscored by his role as
producer and narrator of Sand and
Sorrow, a documentary depicting thehorrors perpetrated in the region by al-
Bashir's regime.
Clooney certainly has the respect of US
leaders, too. Just days before his protest
at the Sudanese embassy, he testified
before the Senate Committee on Foreign
Relations which held a hearing on
independence and insecurity in Sudan
and South Sudan.
Committee Chairman Sen. John Kerry
introduced Clooney as an actor, but
underlined his credentials by referring to
him as co-founder - along with John
Prendergast - of an important means to
understand events in the region.
'They represent the Satellite Sentinel
Project, which has given us a window into events in Southern Kordofan and Blue
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Nile and elsewhere,' Kerry said, adding
that the two had just returned from
Sudan. 'So I think today we will have a
good opportunity to really get some
insights, and we welcome it,' he said.
SUDAN'S SHUTDOWN RAISES US GAS
PRICES
Quite apart from the humanitarian crisis
now brewing in Sudan, Ranking
Committee Member Sen. Richard Lugar
noted that the impact of the 'bloody
fighting' has been brought home to theUS in the form of higher gas prices.
'When the comprehensive peace
agreement, signed in 2005, finally
achieved the separation of South Sudan
from the north last July, it was hoped
that the petroleum wealth that they
share, oil from the south exported
through pipelines in the north, would be
deemed too precious for either side toforego,' Lugar said.
'Instead, however, oil exports have
stopped, putting upward pressures on oil
prices globally. Even though the United
States imported no oil from Sudan, oil is
traded on a world market. So in today's
tight oil market, any major loss of
supply affects all prices,' he said.
Clooney and Prendergast are highly
aware of the role played by oil in the
current crisis. Indeed, two years ago, in
an Op-Ed for The Washington Post, they
were explicit in linking Khartoum's policy
of terror to its drive to secure the
country's oil.
IT'S ABOUT OIL
'Over the past 20 years, the regime in
Khartoum has armed and politicized the
northern communities that border Abyei,using them as a battering ram to drive
out residents and ensure control of the
area's valuable oilfields,' Clooney and
Prendergast wrote.
They went on to quote Dinka
inhabitants of Abyei on their need for the
oil that lies underneath their lands: 'We
have suffered so much for so long. The
oil is a gift for our suffering. We cannotgive it away. We just want to feel the
winds of freedom.'
The repercussions of the situation in
Sudan go far beyond the Dinka, now
stretching all the way into the highest
levels of international politics as Sudan's
oil is mostly exported to China, thirsty
for every drop it can find.
Apart from higher gas prices, though,
the shutdown of oil production in South
Sudan also makes a problem for
Washington D.C., given its efforts to get
Beijing on board with sanctions against
Iran. In the Kerry hearing, Prendergast
recognized that point and drew it to
everyone's attention.
HIGH ON THE INTERNATIONAL RADAR
SCREEN
'To put a fine point on what this moment
does present with the cut off of the oil,
is that President Obama and President
Hu are going to meet very soon,' he
said. 'This is a chance to put the issue
high on the radar screen of the two
leaders.'
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The D.C. protest that saw the arrest of
one of Hollywood's most famous actors,
along with a host of other activists was
not a stunt. Clooney, Prendergast, and
all of the others know exactly what is at
stake.
Yes, it's about oil, but oil that will
enable the Dinka and other South
Sudanese to feel the winds of freedom.
It's also about oil that could spell the
difference between war and peace in the
Middle East.
Eric WatkinsOil Diplomacy Submitted March 20, 2012
Operational Energy:Fending off a sea of troubles
Winston Churchill knew what he was
doing when he took the decision to
transform Britain's Royal Navy from a
coal-burning fleet to an oil-burning force
in the early 1900s. But he also knew the
risks.
'The advantages conferred by liquid fuel
were inestimable,' he said, knowing that
oil had double the thermal content of
coal so that boilers could be smaller and
ships could travel twice as far.
Then, too, oil enabled greater speed
and burned with less smoke than coal so
that the fleet would not reveal its
presence as quickly. Oil also could be
stored in tanks anywhere, allowing more
efficient design of ships.
Oil could also be transferred throughpipes without reliance on stokers, which
reduced manning problems, and oil also
enabled refueling at sea - something
hard to imagine with coal.
Still, Churchill also knew that there was
something about oil that would make it a
hard sell with his defense chiefs. 'To
change the foundation of the navy from
British coal to foreign oil was a
formidable decision in itself,' he said.
VAST OIL TRUSTS
'The oil supplies of the world were in the
hands of vast oil trusts under foreigncontrol,' he said. 'To commit the navy
irrevocably to oil was indeed to take
arms against a sea of troubles'
Nearly a hundred years later, the U.S.
Department of Defense has come to
recognize the same risk in the use of oil
that is under foreign control, and it has
come to fight it with a new concept
called Operational Energy.'The newest area of focus for the DoD is
energy - more specifically, renewable
energy, and even more specifically,
advanced biofuels,' said Raymond James
analyst Pavel Molchanov in a note to
investors this week.
'The DoD, however, is actually putting
its money where its mouth is in terms of
providing tangible support - not just
rhetoric - for companies that could
eventually be significant fuel suppliers
for the armed forces,' Molchanov said.
STRAIT OF HORMUZ
'This comes at a time when geopolitical
threats to oil supply abound - including,
but by no means limited to, Iran's threatto shut down the Strait of Hormuz,' he
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said, echoing an idea Churchill would
have understood.
If anyone would know about Churchill's
sea of troubles, it would be the U.S.
Navy, which reaches around the globe to
every hotspot imaginable. It certainly
has accepted the idea that energy is a
strategic resource and that energy
security is fundamental to its mission.
'From a strategic perspective, the
objective is to reduce reliance on fossil
fuels,' the Navy says. 'Tactically, the
objective is to use energy sources
available on location and increase
energy efficiency to reduce the volatility
that is often associated with long fuel
supply transport lines.'
As far as renewables go, the US Navy
has a clear plan in mind: By 2020, 50%
of its total energy consumption will come
from alternative sources.
According to Molchanov, several firmsare involved in the effort to step up
production of biofuels for the Navy,
including Solazyme, which produces
algae-based oils, and Syntroleum, which
produces biodiesel.
ORDERING BIOFUELS
In 2009, the Navy ordered 20,000
gallons of Solazyme's HRF-76 Naval
Distillate, the renewable equivalent of
the Navy's main shipboard fuel, and
another 150,000 gallons a year later.
The June 2011 test flight of the MH-60S
Seahawk helicopter, using a 50% biofuel
blend, involved the first-ever military
aircraft to fly with algae-based jet fuel.
Earlier this month, the Navy announcedthat the USS Ford successfully transited
from the ship's homeport in Everett,
Wash., to San Diego, Calif., using
'25,000 gallons of a 50/50 algae-
derived, hydro-processed algal oil and
petroleum F-76 blend in the ships LM
2500 gas turbines.'
THUMBS UP TO F-76
According to Richard Leung, Naval Sea
Systems Command Navy Fuels
engineering manager, the biofuel was
virtually indistinguishable from ordinary
marine diesel.'The crew reported no change in their
typical procedures when receiving,
handling, or processing the biofuel, and
said operational performance of the fuel
system and gas turbine engines on the
blend was almost identical to operations
on traditional F-76,' Leung said.
For the U.S. Navy, the tide is turning.
Its transition away from petroleummarks the end of an era, but one that
makes sense - especially with demand
rising and supplies concentrated in the
hands of ever fewer producers. Where's
the security in that?
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Health, Sa ety, Environmentand Risk Management
RPS Energy is a global multi-disciplinary consultancy, providing integrated technical,commercial and project managementsupport services in the felds o geoscience,engineering and HS&E.
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David BamfordOilEdge Submitted March 20, 2012
Exploration: What'shappening in the Arctic?
Spring and summer approaches and
the shoots of oil & gas activity in the
Arctic are showing through! How
'green' are they?
As mentioned in an earlier article, the
Norwegian sector of the Barents Sea is
attracting a lot of interest and justrecently it was reported that
development drilling is scheduled to
begin this month from the first
permanent offshore platform in the
Russian Arctic. Over 500 workers are
currently preparing the platform, towed
from Murmansk in August of last year,
for drilling, deferred from last
September. The platform is located inthe eastern Pechora Sea, and is 90%
surrounded by ice.
Shell is putting into place plans for
exploration drilling in the Alaskan Arctic
including taking what many regard as
'pre-emptive' legal action to prevent
their operations being disrupted by
protests.
And Cairn Energy is attempting to farm-
down its circa 80,000 sq km net West
Greenland acreage position after a
disappointing 2011 drilling campaign
which has resulted in them writing off
just shy of US$950m.
So the Arctic is beginning to acquire the
characteristics of routine exploration
activity - and yet the area is far fromroutine, indeed is probably the most
challenging frontier the oil & gas
industry has faced whether we consider
how to explore and develop in the ice,
the costs involved, the environmental
risks, the rights and needs of indigenous
peoples.
I recommend a couple of Geoexpro
articles to you: one by myself and
another by Jane Whaley
Hanife Mehmet
Contract Jobs Submitted March 22, 2012
2012 Budget pushesdrilling to next levelMany things were expected to come
from the 2012 budget announcement
yesterday thanks to circulating rumours
and hints from Government officials.
However, one factor that came of the
Budget run-down has come as a shock
to some people, mainly green
campaigners.
This is due to an announcement that
will see a 3bn tax break from George
Osborne to assist BP and other major
companies commence new drilling off
the north shore of Scotland. Although
this has the potential to spark freshinvestment into the area, creating
hundreds of oil and gas jobs ,
campaigners argue that new expeditions
are too risky, especially following the
Gulf of Mexico spill two years ago.
The Chancellor stated on the issue: "We
will end the uncertainty over
decommissioning tax relief that has
hung over the industry for years by
http://www.geoexpro.com/magazines/5_11_dj389jdj39jdjsio.pdfhttp://www.geoexpro.com/magazines/5_11_dj389jdj39jdjsio.pdfhttp://www.geoexpro.com/magazines/5_11_dj389jdj39jdjsio.pdfhttp://www.geoexpro.com/magazines/1_12_rockymnts6387.pdfhttp://www.geoexpro.com/magazines/1_12_rockymnts6387.pdfhttp://www.geoexpro.com/magazines/1_12_rockymnts6387.pdfhttp://www.contractjobs.com/jobs/oil-and-gas/http://www.contractjobs.com/jobs/oil-and-gas/http://www.contractjobs.com/jobs/oil-and-gas/http://www.contractjobs.com/jobs/oil-and-gas/http://www.geoexpro.com/magazines/1_12_rockymnts6387.pdfhttp://www.geoexpro.com/magazines/5_11_dj389jdj39jdjsio.pdf7/31/2019 OilVoice Magazine | April 2012
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entering into a contractual approach ...
We are also introducing new allowances
including a 3bn new field allowance for
large and deep fields to open up west of
Shetland, the last area of the basin left
to be developed."
The voice of campaigners is likely to be
drowned out by the Government and the
UK oil and gas industry alike, who both
view the tax break as the beginning of a
more sustainable oil and gas industry in
Britain. Derek Leith from Ernst & Young
in Aberdeen commented following the
2012 Budget announcement: "We see
today's action by the Treasury as a
turning point for the UK's oil and gas
industry - towards a more stable future
fostered by constructive collaboration
between the government and industry to
ensure that the recovery of the country's
oil and gas resource is maximised."
Eric WatkinsOil Diplomacy Submitted March 22, 2012
Watching World Energy:Turmoil in the SouthChina Sea
Even as world attention is mesmerized
with the Strait of Hormuz, worrisome
problems are now arising in the South
China Sea, a region along the all-
important energy sea lane of
communication out to Asia Pacific.
'You have this conundrum of a region
that needs energy and yet has a lot of
territorial disputes or gray areas that
inhibit the ability to produce some of it,'
said Robert Hormats, U.S.
undersecretary of state for economic
growth, energy and the environment.
Hormats' remarks came after the
Philippines said that it has the right to
invite foreign companies to explore for
oil and gas in waters located between its
western coast and the South China Sea -
remarks dismissive of China's own
claims.
'It is illegal for any country, government
or company, without the Chinese
government's permission, to develop oil
and natural gas in waters under Chinese
jurisdiction,' said Chinese foreign
ministry spokesman Hong Lei.
EXPLORATION ANNOUNCED
The dispute arose after the Philippines'
Energy Secretary Jose Almendras
announced that his country had invitedinternational oil companies to explore for
oil and gas offshore Palawan province in
two areas that fall within the country's
200-mile exclusive economic zone.
Palawan province faces the South China
Sea, which is claimed entirely by China.
But other nations in the region, including
the Philippines, Brunei, Malaysia, Taiwan
and Vietnam, have competing claims of
their own.
Claims over portions of the sea can
have immense bearing on ownership of
any oil or gas that lies under the region's
waters, according to the U.S. Energy
Information Administration. But no one
knows for sure just how much oil and
gas is actually there.According to EIA, one Chinese estimate
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suggests potential oil resources as high
as 213 billion barrels of oil (bbl), but EIA
also mentions a 1993/1994 estimate by
the U.S. Geological Survey which put
reserves at just 28 billion bbl.
EVIDENCE QUESTIONED
EIA notes speculation that the Spratly
Islands could be an untapped oil-bearing
province, but it said that, 'There is little
evidence outside of Chinese claims to
support the view that the region
contains substantial oil resources.'Of course, there is only one way to find
out and that is to explore, explore,
explore. The problem, though, is that
overlapping claims to the region are
hindering exploration.
That was certainly true a year ago when
two Chinese vessels threatened to ram
the Veritas Voyager, a survey ship hired
by U.K.-based Forum Energy PLC.The Philippines government dispatched
a surveillance plane, patrol ships and
light attack aircraft to the disputed area,
known as Reed Bank. By then, though,
the Chinese vessels had vanished and
Forum decided to suspend its exploration
activities.
Now, a year on, Forum Energy
apparently is planning to return to Reed
Bank, aiming to drill its first well for oil
and natural gas, an event that some
analysts say could spark a military crisis
if China responds more aggressively
than it did last year.
TOP PRIORITY
Still, that year has seen a significantchange in the posture of the U.S. in the
region, with President Barack Obama
announcing in January that Asia Pacific is
now his country's top priority in terms of
global defence.
That view was underlined in early March
by Admiral Robert Willard, head of the
U.S. Pacific Command, who said that the
America's military must be present in
the South China Sea.
China was less confrontational in 2011
in asserting its claims in the South China
Sea than it was in 2010, Willard told the
Senate Armed Services Committee.
But Willard also noted that China
continues to challenge vessels
conducting oil and gas exploration within
space that it claims as its own. In a
word, he said, 'They remain aggressive.'
LITMUS TEST
Just how aggressive they will remain is
yet to be determined, perhaps by U.S.plans for war games in April with the
Philippine navy near Reed Bank - war
games that one analyst suggests will be
viewed by China as provocative.
'This will be a litmus test of where China
stands on the South China Sea issue,'
said Ian Storey, a fellow at the
Singapore Institute of Southeast Asian
Studies.
According to Storey, the Chinese 'could
adopt the same tactics as they did last
year and harass the drilling vessels, or
they might even take a stronger line
against them and send in warships.'
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Eric WatkinsOil Diplomacy Submitted March 23, 2012
Watching World Energy:Rattling the supply chain
Does North Korea's threat to launch a
ballistic missile next month have
anything to do the global oil industry? If
you believe not, I'll sell you the Empire
State Building or the Egyptian pyramids.
Does that phrase ring a bell? It should.
It was uttered just a few days ago bySaudi Arabia's indefatigable Oil Minister
Ali I. Al-Naimi who was dismissing Iran's
threats to close the Strait of Hormuz as
bluster.
Along the way, though, the minister
also mentioned an interesting point
about Saudi oil storage tanks: 'Our
inventories both in Saudi Arabia and
worldwide are full. Our Rotterdaminventory is full, Sidi Kerir is full,
Okinawa is full. 100% full. 10 million
barrels in total, I think.'
'The reason we have them there, is that
they are near the market. And I will give
you an example,' Al-Naimi said. 'Two
weeks ago the Chinese needed about 1.5
million barrels on a rush basis. It is the
first cargo we sold from Okinawa,
because it is near the market.'
NEAR THE MARKET
Okinawa is indeed near the oil market,
and it is also a terminus for the very
large crude carriers that ply the supply
chain that stretches from the Persian
Gulf, across the Indian Ocean, throughthe Strait of Malacca and northward to
East Asia's markets - including Japan.
No less important, Okinawa lies near
the trajectory of North Korea's planned
missile launch next month. Indeed, on
announcing the launch, the North
Koreans pointedly said their rocket
would be heading in a southerly
direction so as to avoid the Japanese
mainland.
'A safe flight orbit has been chosen so
that carrier rocket debris to be
generated during the flight would not
have any impact on neighboring
countries,' the North's news agency said.
The Kwangmyongsong-3, designed as a
'polar-orbiting earth observation
satellite,' will be launched from a station
in the northwestern corner of the
country, bordering China, and blasted in
a southern direction, North Korea said.
However, the Japanese are so
concerned about the trajectory crossingOkinawa that they have plans to shoot
down the North Korean missile, if
necessary.
JAPAN DEPLOYS INTERCEPTORS
'I have ordered officials to prepare to
deploy the PAC-3 and Aegis warships,'
said Japan's Defense Minister Naoki
Tanaka, referring to surface-to-air
missiles and destroyers carrying
missiles.
'We are talking to relevant local
governments about the deployment,' he
added, as the surface-to-air interceptors
are likely to be deployed on Okinawa
and its island chain.
The North Korean missile launch also isPyongyang's way of thumbing its nose at
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the March 26-27 Nuclear Security
Summit to be held across the 38th
Parallel in South Korea.
Leaders and representatives from 57
countries and international organizations
are scheduled to attend the summit,
where protection of nuclear facilities and
steps to tackle nuclear terrorist threats
are high on the agenda.
What else can North Korea's planned
launch be called except a nuclear
terrorist threat? And it is a threat aimed
at the world's main oil supply line, with
its terminus in Japan.
POINT-COUNTER-POINT
Does this have anything to do with the
Iranian situation?
Call it point-counter-point: as the U.S.
and its allies apply pressure to Iran at
one end of the supply chain, North Korea
is rattling its nuclear capability at theother end. And nothing could make the
need to encourage Iran to abandon its
nuclear ambitions more clear.
Who wishes to see both ends of the
world's main oil supply line in the hands
of enemies holding nuclear weapons
along with the ability to deliver them
thousands of miles? If you think oil
prices are high now, just imagine how
much higher they'd go then.
That would really make the markets go
ballistic.
Halfdan CarstensGeoExpro Submitted March 23, 2012
Exploration: Arctic GasHydrates - a stupendousgas resource!
The Arctic contains huge volumes of
conventional oil and gas, but if we also
include non-conventional hydrocarbons -
such as gas hydrate - the Arctic may be
a source of energy for centuries to
come.Arctic Alaska and Arctic Russia are two
established petroleum provinces that
have already produced vast volumes of
oil and gas.
In addition, the USGS has concluded
that some 400 Bboe, including 90 Bb of
oil, have yet to be discovered in the
Arctic. That amounts to 25% of the
undiscovered resources worldwide as judged by the same experts. The
Russians, on the other hand, claim that
as much as 58% of the world's
undiscovered oil and gas belong to the
Arctic. As a comparison, the annual
world oil production is about 30Bbo.
For oil, five basins stand out in the
USGS assessment: Arctic Alaska, the
Amerasia Basin, East Greenland Rift
Basins, the East Barents Basins and
West Greenland-East Canada, while
three basins account for most of the
undiscovered gas: the West Siberian
Basin, the East Barents Basins and Arctic
Alaska. If we combine oil and gas and
convert to oil equivalents, it turns out
that the West Siberian Basin alone maycontain 30% of the Arctic oil and gas to
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be found. It is worthwhile to keep in
mind that almost all of the Arctic
resources (84%) are expected to found
offshore and in water depths less than
500m.
These numbers, however, are dwarfed
when we include gas hydrates. While the
figures for unconventional resources
definitely are more speculative than for
conventional oil and gas, there is reason
to believe that there may be enough gas
around the Arctic to keep the
hydrocarbon economy going for several
centuries.
'Peak oil' takes a different meaning
when we look at resources from that
perspective.
'The energy content of methane
occurring in hydrate form is immense,
possibly exceeding the combined energy
content of all other known fossil fuels,'
said Espen Andersen of Statoil at theArctic Frontiers conference in Troms,
Norway, in January. Gas hydrate is a
solid, crystalline material formed from
natural gas (mainly methane) and
water. 1 m3 of hydrate contains about
164 m3 gas (at STP). Gas hydrate
occurs on land in permafrost regions and
in oceanic sediments in Gas Hydrate
Stability Zones (GHSZ), ocean
continental slopes and deep continental
shelves. Gas hydrate will be stable in the
very cold Arctic Ocean sediments from
depths as shallow about 350m.
'Gas hydrate is an environmentally
secure resource in an environmentally
fragile area like the Arctic region. It is a
thermodynamically stable solid in itsnatural environment and is unlikely to be
spatially associated with petroleum,'
according to Michael Max of Hydrate
Energy International speaking at the
Arctic Frontiers conference. 'What
matters is the volume of gas hydrates
accumulated in sand sediments. Even if
a small fraction of the energy contained
in natural gas hydrates can be
commercially produced, it could
substantially increase the volume of
clean-burning natural gas and improve
global energy security by reducing
imports,' said Andersen.
While the US consumes about 125 Tcfg
a year, the Arctic may on its own contain
some 6,000 Tcf, according Michael Max.
But, beware, that is not to be looked
upon as 'reserves'! We are talking about
highly speculative, undiscovered
resources.
Richard EtheringtonOilEdge Submitted March 28, 2012
Review: Is the oilindustry of Brazilprogressing?
When you think of the Latin American oil
industry, you immediately think of
Brazil. And rightfully so.
The nation already leads the pack in the
region and it will only continue to
cement its position at the top over the
coming years. Indeed thanks to the
industry's strong fundamentals in Brazil,
it is very easy to be bullish on the
outlook for the industry. So much so infact that upon his visit to Brazil last
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year, US premier Barack Obama paid
homage to the country's strong offshore
potential and made moves to put the US
at the front of the queue for exports
stating that 'when you are ready to start
selling, we want to be one of your best
customers.'
On a macroeconomic level, the BRIC
nation has enjoyed rapid economic
growth over recent years and this is
appears unlikely to change anytime
soon. This year-on-year growth will
likely serve to continue to push demand
for oil from domestic consumers higher
still. The likely result? Rising demand for
fuel will force Brazil's hand to expand its
refining base further still.
Simultaneously, the continued growth in
production output is widely forecast to
continue over the near, medium and
long-term, as a combination of new
projects come on stream and productionlevels at existing projects are sent rising
higher.
Although the outlook is largely positive,
this is not to say that there will not be
bumps along the way. A poor 2011 for
state-run giant Petrobras has already
brought some concerns to the forefront
of the industry's consciousness. Last
month, the industry behemoth
announced its results for the fourth
quarter of 2011 and they were not
pretty: profits were down by 52% year-
on-year and production levels were
depleted also. The firm's problems were
then compounded by leading Brazilian
lender Banco Bradesco downgraded its
rating for the firm. All that said,
Petrobras remains the undisputed leader
of Brazil's lucrative oil sector.
So if the country's strong fundamentals
were not enough to convince you, then
this will be: Brazil is rich in subsalt, and
the rush for it has only just begun. The
discovery of billions of barrels of oil in
the subsalt oil province in Brazil's
offshore territory has the potential to
take Brazil's domestic oil industry to a
whole new level - and the local
government has already realised this.
Former president Lula de Silva made
several regulatory reforms that placed
the responsibility for developing these
untold reserves at the door of the state-
backed operator. Foreign operators will,
however, have the opportunity to play
their part. In fact Statoil - Norway's
national oil firm - has already shown
interest on muscling its way into the
equation, via the potential takeover of the assets of a firm with a strong subsalt
portfolio, independent player Anadarko
Petroleum. The US-based firm is
presently in the process of withdrawing
from the upstream segment of South
America's leading economy.
The potential of the subsalt sector is
vast, but nobody yet knows to quite
what degree. Importantly for the local oil
industry, however, the government and
Petrobras appear to have a good handle
of things from the outset - which bodes
well for the nation's rising role as a
global energy and oil industry leader in
the coming years.
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Richard EtheringtonOilEdge Submitted March 28, 2012
Review: Can Petrobrasdeliver?
Acting Local But Thinking Global?
State-run Petrleo Brasileiro - or
Petrobras as it is more commonly known
- is widely regarded as a world leader in
deepwater exploration. The industry
giant controls virtually all upstream oil
and gas production in Brazil, as well asdominating exploration activity.
Furthermore, the Rio de Janeiro-based
firm owns most of Brazil's refining
capacity. Quite simply, the South
American company is a giant.
Already a leading player in Latin
America, Petrobras has big aspirations:
by the end of the decade, the firm hopes
to have become one of the world's fivelargest energy players - and with the
right management and strategy, this is
not an unrealistic possibility. This will,
however, require plenty of hard work:
the company has forecast that it will
more than double production to 6.4
million barrels of oil per day (bpd) by the
year 2020.
Although the firm is 54% government
owned (including voting rights) and is
decreed to adhere to state energy policy,
Petrobras remains autonomous in many
ways. Most notably the firm is keen to
remind investors that it maintains
control over a large share of its
operations and its finances - which is
significant given that Petrobras boaststhe world's largest corporate capital
expenditure programme, valued at
around US$225 billion over five years.
The recent change at the helm, which
saw Maria das Graca Foster become the
company's new Chief Executive Officer,
should serve to bring in an era of
consistency to Petrobras. Indeed in her
first press conference, the new CEO
stressed a policy of continuity, with the
firm's investment plans and production
targets for 2012 likely to remain
unchanged.
Without doubt, the Petrobras story is
one of continued growth. This is not to
say, however, that the energy giant has
not encountered problems along the
way. More recently, the firm has begun
struggling on a financial level. 2011 saw
the firm's shares slump by 17% during
the twelve-month period,
underperforming the 1.2% drop in the
Bovespa benchmark index - according toBloomberg. At the same time, the
company posted worse-than-expected
fourth quarter results in 2011, with net
profit more than halved from a year
earlier as a result of the firm's
downstream operations weighing on its
performance.
Perhaps even more concerning
however, is the fact that Petrobras has
failed to meet its own production targets
for the best part of three years now. At
the end of last year, the firm's global
production level stood at 2.72 million
bpd - lower than it was twelve months
prior. This certainly does not bode well
for the company's ability to lift its global
production levels in the near-term.But there is some hope: back in
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and assuming they stay at 10 million
barrels a day. Does anything sound
more like money in the ground than
that? Wouldn't anyone like to keep it
that way?
Keeping it that way is exactly what the
Saudis want and that is why they always
aim for moderation in pricing. They
know, and know only too well, that high
prices are an invitation for consumers to
seek cheaper sources of supply or, for
that matter, cheaper forms of energy.
That's why Al-Naimi says that, 'The
bottom line is that Saudi Arabia would
like to see a lower price.' And his
explanation makes perfect sense, too.
'It would like to see a fair and
reasonable price that will not hurt the
global economic recovery, especially in
emerging and developing countries, that
will generate a good return for producing
nations, and that will attract greaterinvestment in the oil industry.'
FINANCIAL INCENTIVE
In a word, a moderate price keeps
everyone happy, and productive. Most of
all, it is in the interest of oil producers
such as Saudi Arabia to keep exploring
and producing oil: they have a financialincentive to keep their industry going.
Doesn't that make sense, too?
So, what's with high prices these days?
Al-Naimi concedes that, 'geopolitical
tensions in the region, and concerns
over supply, are helping to keep prices
high.' That's short-hand for what we all
know: the current troubles with Iran.
'Yet fundamentally the market remains
balanced,' he says. 'It is the perceived
potential shortage of oil keeping prices
high - not the reality on the ground.
There is no lack of supply. There is no
demand which cannot be met. Total
commercial stocks for OECD nations are
within target, and there is at least 57
days forward cover, enough to handle
almost any eventuality.'
Can the Iranians close Hormuz? No. Can
the Saudis make up for Iran's sanctioned
oil? Yes.
Here is a man who knows the score,
and it is summed up in that wonderful
distinction he makes between a
perceived shortage and a real one. That
is the distinction on which so much of
today's trading turns: not on whether
there is an actual disruption of supply
but on whether there could be one.
SLIGHT UNCERTAINTY
Al-Naimi acknowledges that there is
enough oil on hand and in storage to
handle 'almost any eventuality.' And it is
that slight uncertainty which is driving
the market: what if what if what if?
People are betting, and they do not want
to bet the wrong way. Too much is at
stake.
But the bet is still on a perception, a
possibility.
Against that, Al-Naimi offers a lifetime
of experience in his country's oil
industry. He started out as an Aramco
office boy, don't forget, and he has risen
in its ranks over the course of a lifetime.
If there's something about the oil
business he doesn't know, then itprobably is not worth knowing.
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In a word, Al-Naimi is letting us know
that those who bet on the possibility of
something going wrong - of some
hypothetical demand not being met - are
betting against the proven realities of
the oil trade over decades.
As he says: 'We want to correct the
myth that there is, or could be, a
shortage. It is an irrational fear, a fear
without basis.' And so it is.
But there is something else that Al-
Naimi is not disclosing: that it is in the
interest of Iran to create and play on the
possibility of supply shortages precisely
in order to drive prices higher and
higher. This is a new use of the oil
weapon, and the Iranians are adept at it.
CROSSING SWORDS WITH IRAN
In their efforts to keep world oil prices
reasonable, the Saudis are crossing
swords with Iran or, if you will, oilweapons. And why should they not? A
nuclear Iran standing just across the
Gulf is the last thing the Saudis want to
see - and they are not alone in that.
Saudi Arabia is doing its level best to
keep oil prices low as part of the
international effort to thwart Iran's
nuclear ambitions. Lower oil prices
means less income for Iran and its effort
to acquire nuclear weapons.
Saudi Arabia is also pumping more oil
than it has in decades. The reason for
that is clear, too. More Saudi oil means a
diversity of supply, and that means more
choice for countries that want to stop
buying Iran's oil in support of the
sanctions regime.Al-Naimi is an oil diplomatist par
excellence, too diplomatic perhaps to be
so pointedly clear in the purpose of
pumping more oil to achieve lower
prices. In the long run, it is certainly to
preserve his country's market share. But
for the immediate future, it is to support
the international effort to thwart Iran's
nuclear ambitions.
The Saudis know how to use the oil
weapon, too.
Hanife MehmetContract Jobs Submitted March 29, 2012
Kenya hits oil
This week, Kenyan officials reported that
oil had been found in the country for the
first time. Tullow Oil Plc came across the
find in the North Kenya and is now in the
process of discovering the commercial
value and validity of the discovery.
President Mwai Kibaki stated: "This is
the first time Kenya has made such a
discovery and it is very good newsIt is,
however, the beginning of a long
journey to make our country an oil
producer, which typically takes in excess
of three years."Although establishing Kenya as a
progressive oil provider to the world may
be a tedious journey, the opportunities
and oil and gas contract jobs it could
open are undeniably bountiful.
Kenyan energy officials and Tullow Oil
Plc have both adamantly expressed that
the find is to benefit the Kenyan public.
This may be in order to deter fears
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realised in other countries where oil has
been found but not used to help the
home economy.
Kenya's energy minister Kiraitu Murungi
stated:'We will make sure that the oil in
Kenya is a blessing for the people of
Kenya and not a curse"
Camilo MuozTranslation Source Submitted March 29, 2012
Doing Business withPetrobras: How to score agoal
Doing business with Petrobras , Brazil's
largest oil company, may seem
intimidating but opportunities abound in
this ever-expanding company. Before
you throw yourself in the game, take a
look at our 7 unknown tips to optimize
your relationship with Petrobras.
1. Know the prospects:
Petrobras' made history in 2006 with
their huge discovery of pre-salt and a
conservative estimate projects that
reserves will double thanks to broad
access to new reserves. Exploration inBrazilian sedimentary basins show
incredible hydrocarbon potential and
deep-water discoveries in Brazil make up
1/3 of global discoveries from 2005-
2010. This planned expansion means
many new refineries as well as critical
resources and equipment will be
required and US$4.6 billion has been set
aside for investment in cutting-edge
technology. In the meantime, the
company remains committed to
investment in research and development
in order to maintain their competitive
advantage. No matter what your game
is, the prospects for doing business with
Petrobras have never been better.
2. Know who you're dealing with:
Petrobras is Brazil's pride and joy as
proved by former Brazilian President
Lula who once said 'If Petrobras were a
woman, it would be the one that allmothers would like their sons to be
married to.' Boasting $70billion in the
last five years, business is booming and
the company has a lot to be optimistic
about as the newly appointed CEO Maria
das Graas Foster brings a new
perspective to the company. Nicknamed
'the Iron Lady of Oil' this self-made
woman rose from one Rio's favelas tobecome the first woman to head
Petrobras, the largest company in South
America.
3. Learn what they're looking for:
Petrobras employees are loyal to their
company and applaud the many
professional development and learningopportunities offered at Brazil's oil giant.
Petrobras prides itself in its constant
search for improvement, excellence, and
profitability allied with social and
environmental responsibility. If you want
to do business with Petrobras, you will
need to show that you are playing the
same game, which brings us to our next
tip.
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4. Avoid Foul Play:
Many of our oil and gas translation
clients have found that Petrobras is truly
committed to social and environmentalresponsibility; this is reflected in their
long-term business strategy. Terms such
as 'corporate citizenship' and
'sustainable development' have been
prevalent in Brazilian consumer society
for years and Brazil is on the cutting
edge of innovating and implementing
new procedures that keep up with global
environmental protection standards.Petrobras states explicitly that it works
towards 'managing the potential impacts
of its activities and projects geared to
the protection of endangered areas and
species'. They've set the bar high so if
you have hopes of doing business with
Petrobras, you'll need to show them that
are able to keep up in areas of
environmental protection.
5. Develop an entry strategy:
It is said that business in Brazil is based
on personal relationships but when it
comes to doing business with Petrobras,
it's going to take more than a contact to
get your foot in the door. An organized,
clear cut business plan is a must sincethe company has strict requirements on
procurement and procedures.
6. Play by Their Rules:
If you want to be successful in doing
business with Petrobras, you can't ignore
their ground rules. Your product or
service must be fully qualified and you
will need to develop a complete proposal
or bid package to even be considered.
Petrobras establishes a straightforward
but complex bidding process and
invitations aren't always broadcast so it
can be difficult to spot the upcoming
opportunities. Experts such as oil and
gas translators may make the process
run smoother for you and a partnership
with a local company will also help you
score the bid.
7. Move Forward:
After you've landed the contract withthis multi-billion dollar oil company,
you'll have much to celebrate but before
you sit back and enjoy the caipirinhas,
you'll first want to ensure that your
partnership is successful and will lead to
future collaborations. The best advice
out there is 'don't go it alone.' Pair up
with local experts that can help you with
international staffing, local tax andlabour laws, as well as Portuguese
language services to assure that your
business with Petrobras is communicated
effectively.
Eric WatkinsOil Diplomacy Submitted March 30, 2012
Watching World Energy: Adouble whammy on Iran
If Tehran thought it was going to evade
U.S. and E.U. sanctions by using its own
Islamic Republic of Iran Shipping Lines
(IRISL) or Yas Air cargo lines, it has
been sadly disappointed.
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Washington imposed more sanctions on
IRISL this week due to its connections
with the Islamic Revolutionary Guard
Corps. It said IRISL has 'played a key
role' in Iran's efforts to advance its
missile programs and transport other
military cargoes.
'The IRGC has continued to expand its
control over the Iranian economy - in
particular in the defense production,
construction, and oil and gas industries,'
it said - a reminder that Iran's Oil
Minister Rostam Qasemi is a Brigadier
General in the IRGC.
The US Department of the Treasury also
designated two IRISL front companies
based in Malta: Modality Limited and
Malship Shipping Agency Ltd. It said that
the companies are owned by Mansour
Eslami, an IRISL executive.
PRIOR DESIGNATION
It said that Eslami had already been
designated in October 2010 for his role
as director of an IRISL subsidiary, IRISL
(Malta) Ltd., and for his co-management
of several IRISL-affiliated holding
companies.
Two IRISL employees were also
designated this week including a senior
IRISL legal advisor, Seyed Alaeddin
Sadat Rasool, and Ali Ezati, IRISL's
Strategic Planning and Public Affairs
Manager.
The announcement of new sanctions
follows a media report last month thatclaimed IRISL has continued to operate
around the globe under a variety of
guises all aimed at bypassing sanctions.
'Despite the sanctions 130 of the 144
banned ships in IRISL's fleet continue to
call at many of the world's major ports
hidden behind a web of shell companies
and diverse ownership,' the report said,
naming Malta as a place where the
Iranians can play those shell games.
'Despite being a member of the
European Union, Malta not only supplies
flagging services to IRISL ships, but is
also home to 24 shell companies that
help conceal Iran's ownership of
vessels,' the report said.
PAPER TRAIL
In the Grand Harbor of Malta, Transport
Malta earns around 300,000 eurosannually from registering IRISL ships,
according to an estimate by Reuters
based on a table of tariffs on the
agency's website.
Transport Malta also is home to the
country's public shipping register, the
location of the paper trail of Iran's shell
games, as well as evidence of those who
have worked for the country.
As sanctions have tightened, the
Maltese register shows that Iran's ships
have regularly switched not just flags,
but names, registered owners,
registered agents, and the addresses of
owners and agents.
The IRISL announcement came just a
day after another one designating theIranian cargo airline, Yas Air; Behineh
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Trading; three Iranian Islamic
Revolutionary Guard Corps-Qods Force
(IRGC-QF) officials; and one Nigerian
shipping agent for acting for or on behalf
of, or providing support to, the IRGC-QF.
'The airline, the trading company and
the IRGC-QF officials were involved,
respectively, in shipments of weapons to
the Levant and Africa, further
demonstrating Iran's determination to
evade international sanctions and export
violence and instability throughout the
Middle East and beyond,' the Treasury
said.
COVERT ARMS TRADE
It said the Tehran-based Yas Air is an
Iranian cargo airline that acts for or on
behalf of the IRGC-QF to transport illicit
cargo - including weapons - to Iran's
clients in the Levant. In particular, itsaid, Yas Air has moved IRGC-QF
personnel and weapons 'under the cover
of humanitarian aid.'
According to the announcement, IRGC-
QF officials oversaw and authorized
actions taken by Yas Air that involved a
series of flights carrying weapons
destined for Syria and worked with
Hizballah and Syrian officials to ensure
passage of the illicit cargo.
It said that a Turkish inspection of one
of the Yas Air flights bound for Syria -
which listed 'auto spare parts' on its
cargo manifest - found weapons
including Kalashnikov AK-47 assault
rifles, machine guns, nearly 8,000
rounds of ammunition, and anassortment of mortar shells.
Behineh Trading, the shipping company,
and the Nigerian agent designated today
were involved in a weapons shipment
seized in Nigeria in late October 2010.
'This weapons shipment - orchestrated
by the IRGC-QF and intended for The
Gambia - is part of a larger pattern of
Iranian lethal aid shipments to clients in
Africa and around the world,' the
announcement said.
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