Wednesday, June 5, 2013

Add The Chinese To The List Of "Everyone" Looking To Drill The Arctic For Oil

Back on May 11, 2013, it was noted that "everyone" except the US was looking to drill for oil in the Arctic:
President Obama won't have to worry about any "conflict" in the Arctic. As long as the US stays out, the Canadians, Danes, Norwegians, and Russians will be more than happy to split the spoils. If the president can't even come to a decision on a pipeline, he will never come around to a decision on the Arctic.
It turns out that "everyone" will include two more countries: Iceland and China. Rigzone is reporting: 
China National Offshore Oil Corp., or CNOOC, is partnering with Iceland's Eykon Energy in an application for a license to explore and produce oil and gas in Arctic waters offshore Iceland, the country's hydrocarbon licensing manager told Dow Jones Newswires Wednesday.
If the application is successful and a license is awarded, it would mark the Chinese company's first foray into offshore Arctic oil drilling, a new area the industry's biggest players are scrambling to enter in efforts to replenish reserves, but which has become increasingly controversial.
And so it goes. It looks like the table will be set for six: Russians, Canadians, Danes, Norwegians, Chinese, and the Icelanders. The US will most likely be a spectator.
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PetroChina Will Out-Spend XOM This Year

Wall Street Cheat Sheet is reporting:
For the first time since the 1980s, Chinese oil company PetroChina is expected to outspend Exxon Mobil Corp., according to data collected by analysts at Barclay’s. 
Spending for oil companies worldwide is expected to skyrocket this year. Barclay’s estimated oil companies will spend $678 billion globally in 2013. That figure is up 10 percent from last year. Most of the money will be used for expanding international markets.
PetroChina is expected to spend $36.6 billion in the next year, coming out ahead of Exxon Mobil’s expected $33.9 billion. 
The companies’ actual spending will likely exceed the estimates, as Barclay’s only underestimated oil spending once. That mistake occurred in 2010 after the Deep Water Horizon accident that put a freeze on drilling in the Gulf of Mexico.
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A Note to the Granddaughters

The two of you attended an elementary school in a suburb of Boston for the past several years.  I am told that one of Mitt Romney's children attended kindergarten at the same school, although I did not confirm that; it could simply be a rumor. The school has a lot of children of foreign parents who are visiting professors or students at Boston-area universities. There are a lot of Chinese, for example.

Your two closest friends, Kiki and Angie, are half-Chinese. Their Chinese maternal grandparents were both engineers and worked for PetroChina their entire lives. Upon graduation from her university in China, their mom was accepted to a prestigious university in Massachusetts, and ended up marrying a New Jersey native who is not a software programmer for a technology company. Their Chinese mother is in the same field of work, but working at a different company now. [She is now an American citizen; she says she paid into social security even when she was not yet an American citizen. Just a side note.]

Last night I had the opportunity to talk at length with the Chinese mother about growing up with parents who both worked for PetroChina. She, of course, did not understand the oil operations, or the engineering, but she shared a lot of insight regarding the culture and the experience of growing up in an "oil family" in China. Very, very fascinating.

I also got some basic questions about the Chinese language answered about which I have always been curious.
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Only One (1) New Permit -- The Williston Basin, North Dakota, USA; Eight (8) Producing Wells Completed; Oasis Has A Number Of Good Wells Coming Off Confidential List Thursday

Active rigs: 191 (interesting, moving up, higher end of range). The post-boom high was 194, hit on May 15, 2013. The post-boom low was 179. Active rig milestones are tracked here.

One (1) new permit --
  • Operator: Whiting
  • Field: Sanish (Mountrail)
  • Comment: Hmmmm.....
Wells coming off confidential list were posted earlier; see sidebar at the right.

 Eight (8) producing wells completed:
  • 22585, 1,429, Statoil, Lonnie 15-22 4TFH, Ragged Butte, t4/13; cum --
  • 22915, 1,136, Statoil, Roger Sorenson 8-5 2TFH, Alger, t4/13; cum --
  • 22916, 1,972, Statoil, Roger Sorenson 8-5 3H, Alger, t4/13; cum --
  • 23131, 486, Hess, SC-Norman 154-98-3130H-5, Truax, t5/13; cum --
  • 23425, 1,299, Statoil, Roger Sorenson 8-5 6TFH, Alger, t4/13; cum --
  • 23573, 1,065, Hess, An-Bohmbach 153-94-2734H-5, Antelope, t5/13; cum --
  • 23825, 1,008, Hess, EN-State D 154-93-2635H-4, Robinson Lake, t5/13; cum --
  • 24211, 219, SM Energy, Jeglum 3-29HNA, Colgan, t4/13; cum --
Three (3) permits canceled:
  • 19330, PNC, Whiting, Gorrell 11-34TFH, Bicentennial, Bakken, McKenzie
  • 21074, PNC, Whiting, BSMU 2005, Big Stick, Billings
  • 23186, PNC, Whiting, Tomchuk 21-17PH, North Creek, Bakken, Stark
Wells coming off confidential list Thursday:
  • 22643, 1,371, Oasis, Emie Federal 5792 24-9H, Cottonwood, t1/13; cum 31K 4/13;
  • 22710, 615, Fidelity, Niemitalo 24-13H, Sanish, t1/13; cum 44K 4/13;
  • 23119, drl, Statoil, Cora 20-17 5H, Poe, no data,
  • 23343, 590, Oasis, Desmond Federal 5792 13-12H, Cottonwood, t12/12; cum 30K 4/13;
  • 23480, 1,174, Oasis, Leanne 5201 41-24B, Camp, t1/13; cum 56K 4/13;
  • 23497, 1,043, Oasis, Mercedes 5502 41-7T, Squires, t1/13; cum 17K 4/13;
  • 23498, 1,058, Oasis, Marlee 5502 41-7B, Squires, t12/12; cum 31K 4/13; 
  • 23527, 1,365, Oasis, Nguyen Federal 5693 44-27T, Alger, t12/12; cum 38K 4/13;
  • 23528, 1,874, Oasis, Bui Federal 5693 44-27T, Alger, t12/12; cum 48K 4/13;
  • 23530, 978, Oasis, Ginny H 5693 41-35T, Alger, t12/12; cum 34K 4/13;
  • 23765, 615, Oasis, Nevis 6092 12-18H, Lucy, t12/12; cum 26K 4/13; 36 stages; 4.4 mill lbs sand;
  • 23860, drl, Statoil, Hovde 33-4 2H, Sandrocks, no data,
  • 23914, 1,554, Oasis, Klevenberg 6093 11-2H, Gros Ventre, t1/13; cum 36K 4/13;
  • 23956, drl, Hess, EN-D Cvancara S-154-93-0904H-4, no data,
  • 24330, drl, Crescent Point, CPEUSC Sylven 11-2-158N-100W, no data,
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22643, see above, Oasis, Emie Federal 5792 24-9H,

DateOil RunsMCF Sold
4-201356564132
3-201374976457
2-201383356419
1-201391201216
12-20122480


  22710,  see above, Fidelity, Niemitalo 24-13H, Sanish:

DateOil RunsMCF Sold
4-201381091959
3-20138342438
2-2013129360
1-2013142840

 

23343, see above, Oasis, Desmond Federal 5792 13-12H:

DateOil RunsMCF Sold
4-201333181501
3-201377341035
2-201356580
1-201369750
12-201260660

 
 23480, see above, Oasis, Leanne 5201 41-24B, Camp:

DateOil RunsMCF Sold
4-201337380
3-2013121784772
2-2013102287365
1-20131583610857
12-2012132242033
 
 

23497, see above, Oasis, Mercedes 5502 41-7T, Squires:

DateOil RunsMCF Sold
4-201322661037
3-201336371669
2-201358164478
1-201346141783

23498, see above, Oasis, Marlee 5502 41-7B, Squires:

DateOil RunsMCF Sold
4-201370595119
3-201360683532
2-201341962517
1-201369644947
12-201251251946

23527, see above, Oasis, Nguyen Federal 5693 44-27T, Alger:

DateOil RunsMCF Sold
4-201348384052
3-201358065422
2-201357464861
1-2013116320
12-2012968512

23528, see above, Oasis, Bui Federal 5693 44-27T, Alger:

DateOil RunsMCF Sold
4-201380685985
3-201383926403
2-2013103937287
1-2013117460
12-201294326

23530, see above, Oasis, Ginny H 5693 41-35T, Alger:

DateOil RunsMCF Sold
4-201375773476
3-2013103554654
2-201338372589
1-201394403035
12-20121832219

23765, see above, Oasis, Nevis 6092 12-18H, Lucy:

DateOil RunsMCF Sold
4-201341260
3-201359110
2-201348700
1-201344320
12-201259630


 23914, see above, Oasis, Klevenberg 6093 11-2H, Gros Ventre:

DateOil RunsMCF Sold
4-201380750
3-201399140
2-2013100530
1-201368290
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CVX Investors: Remember This Date -- June 5, 2013

On Wednesday, June 5, 2013, the Argentine Supreme Court lifted an embargo on $19 billion-worth of assets held by Chevron’s subsidiary in the Latin American country. -- Forbes, article linked below.

Argentina Supreme Court lifts freeze on CVX assets. MarketWatch is reporting:
Argentina’s Supreme Court has lifted a freeze on Chevron Corp. assets in the country, opening the way for Chevron to invest $1.5 billion to develop a vast oil and gas shale formation in west-central Argentina.
The freeze was a side effect of Chevron’s decades-long legal wrangling with indigenous groups in Ecuador.
The champagne must be flowing in Chevron’s legal department, as it scored a second victory over a legal thorn-in-the-side. Earlier this year, Chevron resolved litigation in Brazil involving a small oil spill.  Production at the field, Frade, has resumed.
A consultant hired by YPF said last year Vaca Muerta holds nearly 23 million barrels of oil equivalent in reserves. The area covers 7.4 million acres, with YPF holding rights for more than 3 million acres.
Initial results have shown the area to be 70% oil — more lucrative.
Forbes calling it Chevron's dream:
Argentina’s relationship with the global economy has become immensely complex since the 2001-2 default. In its attempts to develop what could potentially be one of the most important global hydrocarbon discoveries of the past several years, the Argentine government has sought to close a deal with Chevron, through recently nationalized oil company YPF. And, in order to close that deal, they had to tie a few loose knots.
The Supreme Court reversed a ruling on Wednesday that came through an appeals court which froze Chevron’s assets in Argentina in connection to alleged environmental damage in the Ecuadorian rain forest.  The original suit goes back to 1993, when U.S. lawyers asked for a class action in favor of 30,000 residents of the Ecuadorian Amazon near the Lago Agrio oil field, accusing Texaco of environmental damage, according to Argentine daily Ambito Financiero; Chevron bought Texaco in 2001.
As Chevron has no assets in Ecuador, the plaintiffs pursued suits in Canada, Brazil, and Argentina to secure assets to pay for damages.  Basing his decision on an international treaty between Argentina and Ecuador, Judge Adrian Elcuj Miranda gave way to an Ecuadorian court’s ruling, ordering an embargo of Chevron’s Argentine subsidiary’s assets, dividends, and 40% of future bank deposits worth approximately $19 million (mirroring a ruling in Ecuador).
In a five page ruling, the Argentine Supreme Court unanimously agreed to lift the embargo, noting Chevron Argentina and the other involved entities were separate from Chevron Corporation, and therefore not parties to previous litigation.  The Argentine Supreme Court’s decision followed a Canadian court which on May 1 said it had no jurisdiction, therefore securing Chevron’s assets in Canada.
Just a month ago, Canada told the plaintiffs to go elsewhere, as noted above.

Let's see Brazil, strike one. Canada, strike two. Argentina, strike three. 

Disclaimer: this is not an investment site. Do not make investment decisions based on anything you read here or think you might have read here.
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For Investors Only: Helmerich & Payne Triples Their Dividend

Helmerich & Payne increases quarterly dividend to $0.50 per share from $0.15 per share.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or think you might have read here.

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Take My Breath Away, Berlin, Top Gun
 
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