Brent: pretty much flat today; down 0.17%; closed at $70.25.
Libya: link here. Libyan government suspends operations of oil major Total as well as many as 40 other foreign companies -- wouldn't that be, like, everyone? Oh, no big deal -- it's just a paperwork snafu -- the licenses of those 40 foreign firms expired. They all expired the same day? How did almost four dozen companies forget to send in their paperwork and payments? Wouldn't Libya grant them a grace period? Or maybe simply impose a late fee of, like, $10? The article doesn't say how much exported oil we're talking about but it seems if four dozen firms have been shut down, that would be, like, most of the country's export capacity. One would think. The chairman of the Libyan state-owned oil company, says, and, this seems to be an understatement: "[this is] a direct threat to Libyan oil sector development and procurement."
Relevancy? How important is Libyan oil to the world economy? Some folks think Libya is very, very important -- especially the peak oil folks who suggest the price of oil is determined by the last barrel available. Brent was pretty much flat today; down 0.17%. After hours it traded up 0.03% (2 cents/bbl) perhaps in response to the Libyan news.
See first comment: maybe it really is no big deal, operating in/out of Libya with expired licenses.
Active rigs:
| $61.70 | 5/9/2019 | 05/09/2018 | 05/09/2017 | 05/09/2016 | 05/09/2015 |
|---|---|---|---|---|---|
| Active Rigs | 66 | 61 | 49 | 28 | 84 |
Seven new permits:
- Operator: Crescent Point Energy
- Field: Burg (Williams County)
- Comments: Crescent Point Energy has permits for a 7-well Claire Rose pad in section 19-159-99, a mix of Three Forks and middle Bakken wells
- Hess: five AN-Norby permits in McKenzie County
- QEP: four MHA permits in Dunn County, all in section 26-148-92; there's not a lot of activity in this area; this site is probably less than a mile north of the McKenzie Bay Marina (north side of the river) which may have been a factor
I think Haftar controls most of the infrastructure (wells and pipes and docks) to take the oil to overseas markets. The Tripoli government is a bit more of a legal fiction. That said, it may have some impact if Total etc. don't want to "go rogue" by ignoring the Tripoli faction.
ReplyDeleteThank you. It would help greatly if the "journalists" would provide a bit of background. Thank you. Much appreciated.
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