Welcome to the PennEnergy Perspectives e-newsletter.
Each week, PennEnergy delivers a unique perspective on the global energy scene. Compiled by award-winning veteran energy journalist Bob Williams, PennEnergy Perspectives 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.
The NYMEX apparently has caught the Dow’s manic-depressive bug. After skidding to a 7-month low approaching $90/bbl at midweek last week, the front-month contract for US crude futures rebounded past $100 at the end of the week. But in a wild ride on Monday, the expiring October contract rocketed up more than $16 in the biggest 1-day jump in NYMEX history, hitting a 2-month intraday high of $130 and spurring a CFTC investigation. However, a stronger US dollar and weaker gasoline futures caused a retreat on Tuesday as NYMEX crude slipped $2.76 to $106.61/bbl.
Also see these other recent oil and gas market-related stories:
MARKET WATCH: International economic fears boost energy prices—Sept. 18, 2008. Energy prices rebounded Sept. 17, with the front-month crude contract regaining most of the $10/bbl it had lost over the two previous trading sessions on the New York market.
Top Stories
Although Congress and the White House ostensibly are focused on the most significant government economic intervention since the Great Depression, politicians have managed to take time out for the usual pointless posturing that passes for energy policymaking these days. Affirming once again that the phrase “energy policymaking” is a DC oxymoron, Congress’s efforts in recent days have included trying to hit the oil and gas industry with higher taxes, cutting off access to resources, and generally just stalling. Renewables incentives are likely to sail through Congress, however.
Chesapeake reduces drilling budget—Sept. 24, 2008. Chesapeake Energy plans to reduce its drilling capex budget in the second half through yearend 2010 by $3.2 billion, or 17%, in response to a halving of natural gas prices since June 30 and concerns about a possible emerging US natural gas surplus.
SPE: Industry continues tapping unconventional resource potential—Sept. 23, 2008. The estimated vast unconventional resources hold much promise for substantially adding to the world's energy needs, but developing these resources entails overcoming many restraints, SPE members were told at the group’s annual meeting Tuesday.
Iraq, Shell sign multibillion dollar gas deal—Sept. 22, 2008. Iraq has signed a multibillion-dollar natural gas deal with Royal Dutch Shell PLC, the second major energy deal agreed with a foreign firm since the US-led invasion in 2003.
Eni, PDVSA sign Venezuela MoU—Sept. 23, 2008. ENI has signed a Memorandum of Understanding with PDVSA for the exploration and development of two offshore areas in Venezuela.
Chinese negotiate for ESPO Daqing oil spur—Sept. 22, 2008. Russia's Energy Minister Sergei Shmatko said a decision to lay a China-bound spur from the East Siberia-Pacific Ocean pipeline is to be made shortly.
FERC approves Oregon Columbia River LNG project—Sept. 22, 2008. The US Federal Energy Regulatory Commission has approved the first new LNG terminal and related send-out pipeline in the Pacific Northwest after 42 months of review.
Devon gets nod for second Jackfish oil sands project—Sept. 19, 2008. Devon Energy Corp. received regulatory approval to immediately start production of Jackfish 2, the company's second oil sands project in Canada.
Australian LNG industry calls for special treatment—Sept. 21, 2008. Australia's $20 billion (Aus.) LNG industry has lobbied the federal government to create a category labeled 'Clean Global Contributors' in its proposed emissions trading scheme.
Japanese firms weigh plans for PDVSA-led LNG project—Sept. 21, 2008. Mitsubishi Corp., Mitsui & Co., and Itochu Corp. are said to be weighing plans to participate in a 1 trillion yen LNG project led by Venezuelan state oil firm PDVSA.
Chavez: China, Venezuela to plan two refineries—Sept. 23, 2008. Venezuelan President Hugo Chavez said his country and China plan to construct two refineries, one in each country, with a formal agreement to be signed soon.
People on the Move
Lane
Knight Oil Tools, Lafayette, La., has promoted Jerome Lane to operations manager.
Talisman Energy Inc. has appointed James Fraser senior vice-president, eastern division, North American operations.
Foreman
Wellbore Energy Solutions has appointed Jason Foreman QHSE manager.
BG Group PLC has appointed Scott Reeves as global head of coalbed methane.
Zeidman
Sulphco Inc. has appointed former Seitel Chairman Fred S. Zeidman to its board.
Keyera Facilities Income Fund has made some senior management changes. David Smith, currently executive vice-president and chief financial officer, will become executive vice-president, liquids business unit, effective Nov. 15. Dean Setoguchi has been appointed vice-president, finance, effective Oct. 1.
Lucas Energy Inc. has appointed W.A. (Bill) Sikora president, chief executive officer, and a member of the board of directors.
PennEnergy Perspective Blog
An excerpt from the PennEnergy Perspective blog by Bob Williams:
Economic catastrophe looms, and energy prices have trended back down, sharply and suddenly. In such an economic climate, why expect anyone to be eager to invest significant capital in something they don’t really need now when the return is so negligible? That view just underscores another kind of inconvenient truth: Energy environmentalism is a luxury of the affluent.
Also see these other PennEnergy Perspective blogs by veteran energy journalist Bob Williams:
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