Daily Archives: April 18, 2011

Kiran Stacey

Brent priceThe only thing more surprising than the comment from Ali Naimi, the Saudi oil minister, that the oil market is oversupplied, is how seriously the market appears to have taken it. The oil price has dipped sharply today, according to some at least, because of Naimi’s comments.

The evidence Naimi cites is that the Saudis cut output last month by some 800,000 barrels per day. Some of this may have come from reduced Japanese output, after the earthquake put many of its refineries out of action. But this demand is likely to return relatively soon – it certainly shouldn’t be viewed as gone from the market in the long term.

At last the plucky Falklands explorer has found some of the black stuff.

Unfortunately, it did’t find very much – two oil shows over a 1-metre section – and that means the game is almost up for Desire. The company has just £22m (or 6p a share) of cash left, which should just about cover rig demobilisation costs and the rest of its 3S seismic programme.

Naturally, Desire is a putting on a brave face, saying that it will now review all financing options. But no one seriously thinks another equity fund raising is a possibility.

Nigerian president Goodluck Jonathan casts his vote on April 16Oil traders will have one less thing to worry about if  Nigerian president Goodluck Jonathan is confirmed on Monday as the clear winner of Saturday’s election.

While there will be claims of fraud, and there is often the risk of violence in a Nigerian election, the betting is that Jonathan can consolidate his victory and the country can now avoid prolonged political uncertainty.

As Bloomberg reported , the Independent National Electoral Commission said that with results for all 36 states released, Jonathan scored 22.5 million votes and won in 21 states, compared with 12.2 million for his closest rival, former military ruler Muhammadu Buhari, who won 12 states.  Jonathan also met the constitutional hurdle of winning a quarter of the votes in two-thirds of the states for an outright victory.

FT Energy Source

- Dudley told to break up BP – The Sunday Times

- BP boss tries to salvage Rosneft deal – The Telegraph

- BP: An Arctic gamble – FT

- Oligarchs play poker face in game of who blinks first – The Times

- Testing times await disaster response units – FT

- Exposed: BP’s attempts to control oil spill research – The Guardian

- The oil spill that changed the industry – FT

- Oil firms to deploy new deepwater spill containment device – WSJ

- Costs of the BP oil spill – FT

- Chevron hits at North Sea oil tax rise – FT

- Shell expects to drill in Alaska in 2012 – WSJ

- Nigerian polls pose headache for oil firms – Argus

- High oil prices start to hit demand – FT

- Al Naimi: Oil market oversupplied – WSJ

- Oil and gas companies injected toxic chemicals into ground – Bloomberg

- Japan reactor shit down to take months – FT

- ‘Low-carbon China’ headlines fail to capture reality – The Guardian

- Australia carbon scheme faces growing opposition – Reuters

- US extends seeding of biomass – NY Times

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