Each week, PennEnergy delivers a unique perspective on the global energy scene. Compiled by award-winning veteran energy journalist Bob Williams, PennEnergy Perspectives e-newsletter offers a weekly overview of the key energy market trends, top industry operations news, and personnel moves, along with provocative, insightful commentary with an edge. For a look at more energy news and PennEnergy’s complete portfolio of energy intelligence and information offerings, please visit our website at pennenergy.com
Market Recap
Is it time for Beelzebub to bust out the ice skates? Oil prices have continued to plummet over the past week and look to remain soft in the near term despite:
Well, those factors aren’t quite the market movers they once were. As bad as Hurricane Ike was, the damage to GOM facilities has been limited. For an up close and personal view of Hurricane Ike’s track, check out Impact Weather’s Tropics Watch, PennEnergy’s blog with veteran gulf storm watcher and meteorologist Chris Hebert.
OPEC’s production cut remains to be seen—it’s really Saudi Arabia’s to make, and technically it’s not an official cut but a pledge to strictly adhere to quotas. And OPEC production quota pledges have a history of being as reliable as a Bill Clinton chastity pledge.
As for Chavez’s latest potty-mouthed threat, consider when was the last time he didn’t threaten to cut off supplies—a move that would hurt Venezuela more than it would the US. (Although this latest supply cutoff threat is underscored with delicious irony, as Citgo—owned by Venezuela—was among the first refiners lining up with hands out to DOE as the agency started doling out emergency SPR supplies in the wake of Hurricane Ike.)
Oil markets have shrugged off these traditional market movers. Instead, it would appear that the continuing meltdown in the financial sector has the oil market bulls scurrying for cover, along with other commodities. 500-point drops in the Dow and the evaporation of venerable Wall Street giants such as Lehman and Merrill Lynch tend to overshadow even the biggest blowhards—Ike and Hugo included. Check out this video clip.
Also see these other oil and gas market-related stories:
While hurricanes and OPEC meetings have dominated oil and gas news in the past week, we can’t overlook the remake of the comedy classic "Animal House," as portrayed by the staff of the Minerals Management Service’s royalty-in-kind office in Denver. (Evidently they misread the GOP memo about "energizing the base.")
Murphy Oil Corp. announced that Claiborne P. Deming, president and chief executive officer of the company since 1994, will retire effective Dec. 31. Deming will be succeeded by David M. Wood, who currently serves as Murphy’s executive vice-president, worldwide exploration and production operations. On Sept. 17, Deming was named chairman of the National Petroleum Council.
Patrick Romeo, was appointed president of Royal Dutch Shell PLC operations in France. He succeeds Christian Balmes.
Pacific Asia Petroleum Inc., Hartsdale, NY, has appointed Richard Grigg as senior vice-president and managing director.
Norwood Resources Ltd., Nicaragua operator based in Vancouver, BC, has named David Grellman, as vice-president, operations.
Santos Ltd. has appointed David Knox, chief executive officer.
BG Australia has appointed Les Guthrie, president, LNG, to manage the company’s interests in the Queensland Curtis LNG project.
Oneok Inc. has named James Wilson regional vice-president and Eric A. Grundman as vice-president, administration, at its Texas Gas Service division.
Abu Dhabi National Energy Co. PJSC has appointed Frederic Lesage to serve as managing director, TAQA North. Lesage succeeds Tim Granger effective Sept. 30.
Joseph Israel, has been promoted to chief operating officer of Alon USA. Joe Concienne will assume the role of senior vice-president, refining and supply at Alon. Michael Oster will become senior vice-president, M&A, for Alon.
PennEnergy Blog
An excerpt from the PennEnergy blog by Bob Williams:
In case there were any doubts about the Urgency for Our Nation’s Security of switching from gasoline to CNG, here’s a quote from T. Boone Pickens that appeared in the Dallas Morning News: "When we finally get this story told, you’re going to be unpatriotic if you’re using foreign oil when you don’t have to. If you have a domestic alternative, and you’re not using it, you’re unpatriotic."
Hmmm. Guess I’ll have to go all CSI forensic on the family flivver’s gas tank to trace those cracked crude molecules back to their country of origin. I wouldn’t want to face rendition for my treasonous gasoline-swilling ways, although I hear Gitmo is lovely this time of year—assuming it hasn’t been swept away by Ike by now…
Also see these other PennEnergy blogs by veteran energy journalist Bob Williams:
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