TXO Plc Share Discussion Threads

[lofuw] 18/10/2015 18:29

Industrial Production For Oil And Gas Well Drilling Drops To Lowest This Century





By ZeroHedge
Posted on Fri, 16 October 2015 17:04 | 0









Industrial Production growth in The U.S. has now slowed for 10 straight months, rising just 0.4 percent YoY in September - the weakest growth since Dec 2009 - signaling the path to recession is clear. Manufacturing production YoY slowed to just 1.4 percent - the slowest since Feb 2014. For the 8th month of the last 9 IP fell MoM with a 0.2 percent drop in September as a modest revision higher in autos was offset by a plunge in Oil and Gas Drilling to the lowest this century (down 4 percent after rising 1.7 percent last month).

Recession Looms...

IndustrialProductionYoy

(Click Image To Enlrage)

Related: Can China’s SPR Rescue Oil Markets?

As it appears Auto Assemblies are starting to roll over (which makes sense in light of the record high inventories)...

AutoMotorVehicles


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Related: Is The Oil And Gas Fire Sale About To Start?

But the biggest driver was a collapse in Oil & Gas Drilling...

IndustrialProductionOilAndGasDrilling

Charts: Bloomberg

By Zerohedge

[fishermansfriend] 14/10/2015 14:29

An interesting fact that even so called professional auditors and accountants do not know about:

"First accounts need to be filed within 21 months of the date of incorporation even if you extend the accounting reference date. This rule does not apply when you shorten this date. In these cases companies have 9 months to submit accounts."

Taking the hypothetical example of a company that incorporated on 27 Aug 2013, its first set of accounts would be due on 27 May 15. If on 20 May 15 it decided to extend its accounting period end date to say 30 Sep 14 the accounts would still be due on 27 May 15. There is a rule after first accounts when a period end date can be changed and that gives an extra 3 months to file. There are quite a few companies that do this sort of thing for very sound reasons, there are others that do it to buy extra time. Unfortunately that does not work with newly incorporated companies as the quote from Companies House shows. If that same hypothetical company thought that it would be a good idea to shorten the period end date say to 30 Jun 14, then the accounts would be due at Companies House on 30 Mar 15. Thus shortening the date on 20 May 15 would actually make them overdue instantly. If that company actually filed on 8 Jul it would not be 1 month and 11 days overdue, it would be 3 months and 8 days overdue.

Just one of those strange time paradoxes. Unfortunately if the sole director of that company signed off the annual report on 30 May 15 (3 days overdue) then did not bother to submit it until 8 Jul 15, thinking he had ages to do it so why bother, he would be wrong. But he would be far more wrong to write in that report that shares had been issued and money raised post reporting period end ie between 30 Jun 14 and 30 May 15, when in fact shares had not been issued and money had not been raised as that would be a deliberate lie regarding a financial matter in a public document. ooh all sorts of trouble can come from doing that. It would only make matters worse for said sole director, if he were then to try to bully the person who exposed his wrong doing by threatening legal action. He would make matters even worse for himself if that person stood up to the bullying and the sole director then wrote a witness statement that claimed the shares had been issued and the money raised pointing to a later (let's say for the sake of illustration on 21 Jul 15) issue of shares, but the number of shares issued, the price they were issued for and the amount of money raised all did not match the claim in the annual report.

How shocking would that hypothetical scenario be? What sort of punishment should be dished out to the hypothetical sole director? Struck off from ever being a director of a company again would be a start. What if the sole director was also a member of a "trusted" profession, eg a solicitor? Should he also be struck off from his professional register? What about the people who have aided and abetted him? There are the solicitors he has used to do his bullying cover up, what should happen to them? Then of course there are the accountants / auditors who do not know the rules about filing and have suggested to him the excuse to use, even though it is obviously feeble and false - what should happen to them?

All very interesting hypothetical questions, to which we may or may not get some very interesting answers in the not too distant future.

[lofuw] 13/10/2015 23:41

Oil futures settled sharply lower Monday as data showed members of the Organization of the Petroleum Exporting Countries continued to pump at a breakneck pace last month, leaving crude to give back some of last week’s sizable gains.

On the New York Mercantile Exchange, light, sweet crude futures for November delivery CLX5, +0.13%  dropped $2.53, or 5.1%, to end at $47.10 a barrel. November Brent crude LCOX5, -1.38%  ;on London’s ICE Futures exchange fell $2.79, or 5.3%, to finish at $49.86 a barrel. Both contracts saw their largest one-day price and percentage declines since Sept. 1.

Time (EDT)Crude Oil - Electronic (NYMEX) Nov 20158:0014 Oct4:008:0012:004:00

US:CLX5

$46.70$46.65$46.67$46.73$46.75$46.77

While crude seemed to find early support from OPEC’s monthly bulletin, which forecast U.S. oil output will drop in 2016 for the first time in eight years, the focus soon shifted back to OPEC output, which rose 109,000 barrels a day in September to 31.57 million.

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Given a lackluster tone in the U.S. stock market and thin trading due to the Columbus Day holiday, futures were ripe for a modest setback, said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

Flynn contends the market is likely putting in a bottom, as U.S. production falls and producers slash capital spending. But he warned that bottoms “can be messy,” with more volatility likely ahead.

Read: Dow seeks 7th session of gains

Monday’s setback follows a strong week for crude-oil. Nymex futures last week saw the largest one-week percentage gain since the end of August, climbing 8.9%, while Brent registered a 9.4% increase

Baker Hughes Inc. BHI, -1.19% last week reported a decline in the active U.S. oil rig count for the fifth straight week, dropping by nine, bringing the total count to 605, the lowest since June 2010. Rig count is an important gauge of future production.

“Market confidence is up because we are hearing the same message from everywhere that mark

[lofuw] 13/10/2015 23:25

This Breakthrough Could Spark An Oil Sands Revival

     

By James Burgess
Posted on Mon, 21 September 2015 16:24 | 0

                                                  Sponsored Article

Riding high on its first clean oil sands project at Utah’s Asphalt Ridge, MCW Energy Group (traded in the US under MCWEF and in Canada under MCW.V) has now closed another key acquisition that will give it ownership of oil sands deposits and a place to build a much larger extraction plant as the company moves quickly to consolidate its unique position in this market.

MCW Energy is changing the way people view oil sands with a breakthrough, commercially viable technology that is cleaning up Utah’s tens of billions of barrels of oil sands without creating the toxic wastelands that have resulted from oil sands projects in Western Canada. And they’re doing it at a cost that can still turn a profit in today’s oil price slump.

The breakthrough technology uses a solvent that pulls the oil out of oil sands in much the same way that soap washes grease from plates, according to MCW CEO Dr. R. Gerald Bailey, former Exxon (NYSE:XOM) president of Arabian Gulf operations. Once the oil sands are washed with the solvent, they come out 99 percent clean before being returned to the earth. The process is not reliant on water, high temperatures or pressures, nor does it emit any greenhouse gases.

At Asphalt Ridge, in the heart of the western Green River Formation, MCW has been cleaning Utah’s oil sands and selling it off since the beginning of this year.Asphalt Ridge alone is believed to hold some 1 billion barrels of recoverable oil, and MCW’s plant here is producing 250 barrels a day right now at a reasonable $30 per barrel.

Now MCW is taking operations further, with the 8 September 2015announcement that it closed the acquisition of TMC Capital, LLC. This deal gives MCW an oil sands deposit lease called the Temple Mountain Project, which will supply more oil sands for Asphalt Ridge and also serve as the location for the company’s next extraction plant—a much larger version that will further drive down production costs.

10 Reasons to Watch MCW Energy

1. Profit, profit, profit

MCW’s ground zero plant at Asphalt Ridge is already producing 250 barrels a day at $30 per barrel, but this is only the beginning. From ground zero we go to their second location, which they’ve just secured, and this will be a much larger plant that could bring costs down to $20 per barrel. These are solid prices even in this depressed oil market, and when oil prices start to climb again—this will be a black gold mine. While shale producers are taking a nose-dive in the market, experts estimate that production using this new technology in Utah is more profitable than shale oil currently being produced, and more profitable than any other oil sands project in North America. It costs about $55 per barrel to produce oil sands in Alberta, compared to Asphalt Ridge’s approximately $30 for clean oil sands. We could even be looking at a shift in focus to clean oil sands and away from Utah’s more expensive-to-produce shale, which had earlier attracted major players such as Marathon Oil (NYSE:MRO), EP Energy Corporation (NYSE:EPE) and Newfield Exploration Co. (NYSE:NFX).

2. Utah, this is the place to be

This is a great location for MCW to have launched its breakthrough oil sands extraction technology. Utah is sitting on an estimated 32 billion barrels of oil sands, while Asphalt Ridge alone is believed to hold around 1 billion barrels of recoverable oil.

3. Better than Alberta

This prospect is far better than Alberta from an environmental and production standpoint. The MCW process does not use any water and produces no waste or pollutants. This means everyone’s onboard. This is important in Utah, where protests against the industry are mounting. MCW stays clean. The oil sands are different in Utah, which is part of the key attraction here. The Utah sands are oil and not water-wet and they can simply be scooped up with a front loader and then processed with the MCW solvent. The oil separates out and the clean sand is returned to the ground. This means no toxic trailing ponds and no environmental mud-slinging.

4. Ahead of the New Technology Curve

The savvy investor these days is looking at innovative companies that can actually bring a new technology to market and are de-risked in terms of environmental impact while already commercially viable—and profitable. This simple new technology checks all the boxes, so it has quite a future. And the future, as most have accepted by now, must take the environment into account or it will nose-dive.

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Click here for more info on successful oil investing

5. This goes beyond the oil, to include other money-making applications

This isn’t just a money-making, clean oil sands extraction technology—it also has huge potential in remediation. If this had been around and in commercial use during the Deepwater Horizon disaster, it could have helped clean up the beaches. And its remediation/clean-up applications could have global reach, so the sky is the limit in terms of potential. There also another spin-off business here in the form of selling the cleaned sand as frack sand.

6. Steady, forward progress that impresses shareholders

So far, MCW has accomplished everything it promised its shareholders in a steady progression of on-target goals. The Asphalt Ridge plant has been a significant success, and the promise to build another plant—a much larger plant to drive down production costs even further—is now being realized with the acquisition of the Temple Mountain Project.

7. New acquisition of prime oil sands land

MCW’s acquisition this month of TMC Capital LLC for $10 million is the next major step forward. This gives MCW ownership of the lease at the Temple Mountain Project and the oil sands deposits there, which it can process at Asphalt Ridge. We’re looking at 2,230 acres here in Uintah, Utah—an area with extensive oil and gas operations by some major drillers. Initial bitumen in place here is 139,541,000 STB.

8. Sky’s the limit once MCW starts licensing their tech

In addition to their own plants, MCW plans to offer the technology for licensing and for joint venture opportunities, so this could easily go global. It could provide a profitable oil extraction process in such places as Russia, China, Afghanistan, the Dominican Republic, Namibia, Jordan and Trinidad—all big oil sands venues with whom MCW is discussing potential.

9. A hot deal while it’s still under the radar

The race to capitalize on Utah’s vast oil sands resources is on, but there’s only one player here who is financially and environmentally clean. That means only one player that can survive in today’s market. Right now, this innovative new tech is still flying under the radar, which means it could still be a good deal for investors—but once they start licensing, it’ll be tough to get in on this game.

10. Listen to the Big Boys

If the former Exxon president of Arabian Gulf operations—Dr. Bailey--thinks this is the hottest thing since fracking technology, we are inclined to listen. More than a few eyebrows should have been raised when he became the CEO of MCW. Bailey recognized a technology that nobody else had; he also was sure it’d make a huge splash on the global oil scene, and once the floodgates are opened, he’ll probably be right. It is, after all, a national and historical first.

By James Burgess of Oilprice.com

Legal Disclaimer/Disclosure: MCW Energy is an Oilprice.com client. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

[lofuw] 13/10/2015 23:21

Latest OPEC Report Yields Few Surprises

     

By Ron Patterson
Posted on Tue, 13 October 2015 21:33 | 0

The OPEC Monthly Oil Market Report is just out with the crude only production numbers for the 12 OPEC countries. The data below is in thousand barrels per day and the last data point is September 2015.

(Click Image To Enlarge)

OPEC 12 crude only production was up 109,000 barrels per day in September but that was after the August production numbers were revised down by 82,000 bpd. OPEC crude only production now stands at 31,571,000 pbd. That is just 12,000 bpd above June production but still 100,000 bpd below their peak in July of 2008.

(Click Image To Enlarge)

Saudi Arabia was down 48,000 bpd in September to 10,225,000 bpd. That is 174,000 bpd below their latest peak in June.

Related: Case Builds For Argentina As The World’s Next Shale Hotspot

(Click Image To Enlarge)

The big gainer in September was Iraq, up 80,100 bpd in September. That is still 5,000 bpd below their latest peak in July.

(Click Image To Enlarge)

The UAE hit a new high in September, up 24,300 bpd in September to 2,902,000 bpd.

(Click Image To Enlarge)

Kuwait, one of the big four that is responsible for all the increase in OPEC production since 2011, seems to have peaked in 2013.

Related: China To Continue Expanding Its Influence In The Oil And Gas Sector

$80 Oil By Christmas – Do NOT Be Fooled By The Mainstream Media

The current market turmoil has created a once in a generation opportunity for savvy energy investors.
Whilst the mainstream media prints scare stories of oil prices falling through the floor smart investors are setting up their next winning oil plays.

Click here for more info on successful oil investing

(Click Image To Enlarge)

All the OPEC increase in 2015 has come from Saudi, Iraq and the UAE.

[lofuw] 13/10/2015 16:32

Rising water in closed and abandoned mines may put tens of thousands of stream miles at risk for contamination by heavy metals and sulfates. Is plugging and containment enough to reduce the risk of another environmental catastrophe? New remediation technologies may provide a better long-term solution—and could even turn contaminated mine water into a usable resource.
The rising danger in closed and abandoned mines



The dramatic release at Gold King Mine has put the risk of acid mine drainage (AMD) back in the public eye. But the Gold King incident is only the tip of the iceberg; thousands of other closed and abandoned mines are already discharging toxic water into the local environment or are at risk of catastrophic failure in the future. In Colorado alone, 230 mines tracked by the EPA are releasing the equivalent of one Gold-King-size discharge every two days.



According to some estimates, there may be as many as 500,000 abandoned mines in the U.S., mostly in the western, mid-Atlantic and Appalachian states. Many of these mines were closed prior to the passage of the 1977 Clean Water Act, which requires mine owners to take mitigating action to prevent toxic mine waters from contaminating ground, surface and drinking water. A large percentage of these abandoned mines have simply been left to drain contaminated water, known as AMD, into local streams.



Where mitigating action has been taken, it often consists of simply plugging the mine openings and building containment pools for mine water and contaminated tailings. However, over time these containment efforts deteriorate, leading to eventual leaks and occasional catastrophic failures. Closed and abandoned mines gradually fill with water that can cause holding ponds to overflow and add stress to containment walls, increasing the chances of a rupture.
Rising waters, dire consequences



The release of contaminated mine waters can have devastating effects on the local environment and economy. When AMD contaminates local waterways, the heavy metals and sulfates kill off aquatic life in streams and make the water undrinkable for both humans and wildlife. A serious spill or ongoing large leak can make streams uninhabitable for all but the hardiest of microbes.



The total impact of AMD on local economies is difficult to estimate, but may be in the billions of dollars annually. Many closed and abandoned mines are near recreation areas. If these areas are unsafe or undesirable for tourists, it can have a crippling effect on the local economy in tourism-dependent areas. Losses for local farmers and commercial fisheries may also be devastating if AMD impacts ponds and waterways used for fishing and irrigation. And if drinking water sources are contaminated, local communities may need to bring in water from distant sources at considerable expense.



Even if the original contamination source is contained, these impacted streams and the surrounding local environments will take decades or even longer to return to their natural state without further mitigating action. If the source of pollution is not contained or treated, damage can continue effectively in perpetuity, resulting in an essentially permanent loss of valuable land and resources for farming, fishing and recreation.
A better approach to remediation



Treating contaminated waters properly can dramatically reduce the environmental and economic consequences of AMD. However, in order to make mine water safe to discharge into the environment or use for other purposes, the treatment must remove both heavy metals and sulfates. While many AMD treatment options remove only metals, high levels of sulfates bring their own problems. In addition to having an unpleasant odor and taste, waters with high levels of sulfates are corrosive to plumbing and are associated with serious health effects.



Removing sulfates from mine water has proved to be problematic for companies and agencies engaged in remediation work. Conventional precipitation methods generally are not able to reduce sulfate concentrations much below 1,200 mg/L. Membrane-based processes are more effective, but are very costly and generate a large waste stream.



However, new technologies are now available that can economically and effectively remove both metals and sulfates from contaminated mine water in one process.
Turning contaminated mine water into a usable resource



One example of these “next generation” remediation technologies is HydroFlex™, a water treatment platform developed by Winner Water Services, a subsidiary of Battelle. In demonstration projects, HydroFlex has been shown to reduce sulfate concentrations by up to 90 percent.



The treated water is vastly safer to release into the environment and can even be used for water-intensive industrial applications such as hydraulic fracturing. This means that contaminated mine water can now be turned into a valuable and usable resource—a triple win for the mining industry, the oil & gas industry and the environment.



The industry cannot afford to wait for another Gold King-sized accident to take action. Investing in these new treatment technologies today could save billions of dollars in future remediation costs and potential economic losses.



Carolyn Kotsol is president and CEO of Winner Water Services, a Battelle company. Winner Water Services treats acid mine drainage for industrial uses at its Sykesville and Sarver, Pa., locations.

[fishermansfriend] 13/10/2015 16:17

Does anyone who has read the TXO annual report think the auditor, who works on behalf of shareholders, did a good job?

I don't and have told ICAEW exactly why I am less than impressed. It really is quite amazing just how many TB companies the same auditor has audited over the years. I think it is high time he was reminded who he is supposed to be working for.

[lofuw] 13/10/2015 16:05

Rising water in closed and abandoned mines may put tens of thousands of stream miles at risk for contamination by heavy metals and sulfates. Is plugging and containment enough to reduce the risk of another environmental catastrophe? New remediation technologies may provide a better long-term solution—and could even turn contaminated mine water into a usable resource.
The rising danger in closed and abandoned mines



The dramatic release at Gold King Mine has put the risk of acid mine drainage (AMD) back in the public eye. But the Gold King incident is only the tip of the iceberg; thousands of other closed and abandoned mines are already discharging toxic water into the local environment or are at risk of catastrophic failure in the future. In Colorado alone, 230 mines tracked by the EPA are releasing the equivalent of one Gold-King-size discharge every two days.



According to some estimates, there may be as many as 500,000 abandoned mines in the U.S., mostly in the western, mid-Atlantic and Appalachian states. Many of these mines were closed prior to the passage of the 1977 Clean Water Act, which requires mine owners to take mitigating action to prevent toxic mine waters from contaminating ground, surface and drinking water. A large percentage of these abandoned mines have simply been left to drain contaminated water, known as AMD, into local streams.



Where mitigating action has been taken, it often consists of simply plugging the mine openings and building containment pools for mine water and contaminated tailings. However, over time these containment efforts deteriorate, leading to eventual leaks and occasional catastrophic failures. Closed and abandoned mines gradually fill with water that can cause holding ponds to overflow and add stress to containment walls, increasing the chances of a rupture.
Rising waters, dire consequences



The release of contaminated mine waters can have devastating effects on the local environment and economy. When AMD contaminates local waterways, the heavy metals and sulfates kill off aquatic life in streams and make the water undrinkable for both humans and wildlife. A serious spill or ongoing large leak can make streams uninhabitable for all but the hardiest of microbes.



The total impact of AMD on local economies is difficult to estimate, but may be in the billions of dollars annually. Many closed and abandoned mines are near recreation areas. If these areas are unsafe or undesirable for tourists, it can have a crippling effect on the local economy in tourism-dependent areas. Losses for local farmers and commercial fisheries may also be devastating if AMD impacts ponds and waterways used for fishing and irrigation. And if drinking water sources are contaminated, local communities may need to bring in water from distant sources at considerable expense.



Even if the original contamination source is contained, these impacted streams and the surrounding local environments will take decades or even longer to return to their natural state without further mitigating action. If the source of pollution is not contained or treated, damage can continue effectively in perpetuity, resulting in an essentially permanent loss of valuable land and resources for farming, fishing and recreation.
A better approach to remediation



Treating contaminated waters properly can dramatically reduce the environmental and economic consequences of AMD. However, in order to make mine water safe to discharge into the environment or use for other purposes, the treatment must remove both heavy metals and sulfates. While many AMD treatment options remove only metals, high levels of sulfates bring their own problems. In addition to having an unpleasant odor and taste, waters with high levels of sulfates are corrosive to plumbing and are associated with serious health effects.



Removing sulfates from mine water has proved to be problematic for companies and agencies engaged in remediation work. Conventional precipitation methods generally are not able to reduce sulfate concentrations much below 1,200 mg/L. Membrane-based processes are more effective, but are very costly and generate a large waste stream.



However, new technologies are now available that can economically and effectively remove both metals and sulfates from contaminated mine water in one process.
Turning contaminated mine water into a usable resource



One example of these “next generation” remediation technologies is HydroFlex™, a water treatment platform developed by Winner Water Services, a subsidiary of Battelle. In demonstration projects, HydroFlex has been shown to reduce sulfate concentrations by up to 90 percent.



The treated water is vastly safer to release into the environment and can even be used for water-intensive industrial applications such as hydraulic fracturing. This means that contaminated mine water can now be turned into a valuable and usable resource—a triple win for the mining industry, the oil & gas industry and the environment.



The industry cannot afford to wait for another Gold King-sized accident to take action. Investing in these new treatment technologies today could save billions of dollars in future remediation costs and potential economic losses.



Carolyn Kotsol is president and CEO of Winner Water Services, a Battelle company. Winner Water Services treats acid mine drainage for industrial uses at its Sykesville and Sarver, Pa., locations.

[lofuw] 13/10/2015 16:04

Saudi Arabia Halts Government Spending Due To Oil Price Fall



By Andy Tully
Posted on Sun, 11 October 2015 00:00 | 0

Saudi Arabia has reportedly resorted to spending cuts to cope with a budget deficit caused by the steep decline of oil prices over the past year.

Bloomberg reported Oct. 8 that the Saudi Finance Ministry has directed government agencies not to embark on any new spending initiatives for the rest of the year. It also froze government hiring and promotions, suspended the purchase of furniture and vehicles and urged revenue collectors to accelerate their operations.

The report cited two sources who requested anonymity because the information had not yet become public. The Finance Ministry told the news service that it had no comment on the report.

Related: Energy Storage Just Got A Massive Vote Of Confidence

The primary reason for the spending cuts is the drop in oil prices since June 2014, from over $110 per barrel to around $50 today; oil accounts for around 90 percent of Saudi revenue. But the kingdom’s finances also have been strained by its involvement in wars in Syria and Yemen.

As a result, Saudi Arabia’s ratio of debt to GDP is in danger of rising to 33 percent in five years, according to a new report by the International Monetary Fund (IMF). The report says the Saudi budget has gone from a surplus to a deficit of more than 20 percent of GDP, more than twice as deep as those that beset the United States and Britain in 2008 and 2009, the darkest period of the recent recession.

Related: How Russia Is Deploying Its Military In Syria

The IMF says the drop in oil prices also has affected other leading crude exporters, including Kuwait, Russia and Venezuela.

$80 Oil By Christmas – Do NOT Be Fooled By The Mainstream Media

The current market turmoil has created a once in a generation opportunity for savvy energy investors.
Whilst the mainstream media prints scare stories of oil prices falling through the floor smart investors are setting up their next winning oil plays.

Click here for more info on successful oil investing

Nations rich in natural resources enjoyed “an exceptional commodity price boom during the 2000s,” the report says, enriching these countries, including Saudi Arabia. But it stresses, “[C]ommodity prices are volatile, unpredictable, and subject to long-lasting shocks. … [C]ommodity exporters will need to adjust to a – possibly protracted – period of lower export and fiscal revenues.”

Related: LNG Bust Could Last For Years

To manage the deficit, Riyadh had no choice but to rein in spending in the fourth quarter of this year, according to John Sfakianakis, the Middle East director at Ashmore Group, a British investment managing concern. In an interview with Bloomberg from Riyadh, he added, “Saudi Arabia will have to implement spending cuts and efficiencies in order to avoid a runaway fiscal deficit in 2016.”

[monkey puzzle] 13/10/2015 15:56

Iof

Having your posts filtered is great and I still get to read the truth posted by FF so your multiple posts make no difference to me.


Keep up the great work exposing the real conmen operating here.

[lofuw] 13/10/2015 07:39

NYMEX crude up in Asia as China exports show signs of life

Investing.com | Oct 13, 2015 02:31AM GMT

NYMEX crude up in Asia after China trade

Investing.com - Crude oil prices gained in Asia on Tuesday after mixed China data showed a narrower than expected drop in exports.

On the New York Mercantile Exchange, WTI crude for November delivery rose 0.73% to $47.45 a barrel.

In China the trade balance for September came in at a surplus of RMB376.2 billion, compared to RMB368 billion in August. Dollar figures were not immediately available. Imports plunged 17.7%, well below the expected drop of 15%, but exports eased 1.1%,better than the 6.3% decline seen. An official with the China customs office said the recent weaker yuan aided exports.

Overnight, crude futures tumbled more than 5% on Monday, as energy traders locked into profits from last week's three-month high, amid indications of a tightening in the global supply-demand imbalance.

Investors also reacted to a monthly report from OPEC, which showed that the world's largest oil cartel pumped more than 31.5 million barrels per day in September, an increase of 110,000 bpd from the previous month.

On the Intercontinental Exchange (ICE), brent crude for December delivery wavered between $50.19 and $53.62, before closing at $50.21, down 2.70 or 5.11% on the day. Brent ;futures also spiked last week, soaring above $54 a barrel, its highest level since late-August.

The surge in OPEC production last month coincides with forecasts of stronger demand over the next year. In 2016, the organization projects that global oil demand will increase to 94.11 million barrels per day, up from previous estimates of 92.86 bpd. Citing stronger than expected demand in the U.S. and Europe, as well as South Korea, OPEC Secretary General Abdalla Salem El-Badri expects to see robust demand in global energy markets over the next 12 months.

Separately, Kuwait oil minister Ali al-Omair offered no signals on Monday that OPEC will alter its production strategy, days after reports surfaced that Saudi Arabia and Russia could meet again in the coming weeks to craft a strategy to stabilize crashing prices. While Russia has reportedly urged OPEC to lower supply levels over the next year, it still appears reluctant to surrender market share.

The cartel also projected in its monthly report that non-OPEC supply growth next year will wane dramatically, as U.S. shale producers are forced to continue to slash output amid lower prices. In 2016, OPEC forecasts that non-OPEC supply will increase by 720,000 bpd, down from previous estimates of 1.3 million. Last Friday, oil services firm Baker Hughes (N:N:BHI) said the number of U.S. oil rigs fell for a sixth consecutive week, offering another signal that producers have been forced to reduce the number of wells kept online in the face of near-record low prices.

[lofuw] 13/10/2015 07:30

Tanker Companies Profiting From Low Oil Prices

     

By Michael McDonald
Posted on Mon, 12 October 2015 21:30 | 0

Among investors, various industries seem to go through the equivalent of “fads” as the market overall warms to growth potential in a certain industry niche and then later cools on stock prospects. This has happened with many industries large and small over time, but one of the more interesting cycles is playing out again right now in oil tanker stocks.

Even though there are many investors who maintain a special interest in and focus on energy stocks, there are actually relatively few investors in oil tanker stocks. Oil tanker companies traditionally get a lot less attention from investors and financial analysts than the traditional production and pipeline aspects of the energy market.

Related: This State Just Became The World's Greatest Renewables Market

That’s unfortunate because the tanker markets provide valuable diversification for energy investors and can actually move up when much of the rest of the energy market is moving down. The current market environment proves this point. Even as numerous oil companies have been hammered all year and investors are grateful the short respite of the last couple of weeks, tanker stocks like Teekay have been hitting new highs for much of the year.

There is a reason for this. Like pipeline companies, tanker stocks do not profit on the price of oil so much as the need for transportation of that oil. Whether oil costs $10 a barrel or $100 a barrel makes no difference to the cost of shipping crude and thus to the profits of tanker companies. In fact, on top of making money on volume, tanker companies see lower costs for fuel when oil prices are low.

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Moreover, much like offshore drilling servicers (another fallen industry angel), the tanker market is driven by the supply of available ships and the demand for transport and storage of oil. That second factor – storage – is what is driving oil tanker stocks higher right now, and it’s one of the reasons why tanker stocks from NAT to FRO make interesting options for energy investors looking for a diversified portfolio.

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As oil prices fall, what often happens is that oil futures curves start to change shape such that prices for oil delivered now fall below the price for oil delivered, say, 12 months in the future. This creates an incentive and a profit opportunity for traders. By buying cheap oil today and agreeing to deliver it 12 months from now, traders can lock in a profit, but they need a place to store that oil for the next year. Tankers provide such storage. It’s not the typical use for a tanker of course, but in special situations like depressed oil markets, it creates extra valuefor tankers and can make day rates on very Large Crude Carriers (VLCCs) and other tankers rise dramatically.

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Under normal conditions, tanker companies make a small profit as long as the market is not oversupplied with tanker capacity. A few years ago, just like the deep water drilling market today, tanker companies were making so much money that too many new vessels were built and an oversupply resulted.

Today much of that imbalance has finally worked itself out and tanker rates look more reasonable. Add to that the need for oil storage as a result of the collapse in prices and the movement of the oil futures curve, and it creates a recipe for stable and even accelerating profitability in the tanker markets. It’s unclear how long the current downturn will last of course, but the longer oil prices stay low, the more money tanker companies will make from storing crude. Given that dynamic, investors may wish to consider adding a tanker stock or two to their portfolios in order to benefit if crude prices remain subdued longer than many expect.

By Michael McDonald of Oilprice.com

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Join the discussion

[fishermansfriend] 13/10/2015 04:17

Would all the money spent over the year on "consultancy" with related parties (ie topping up directors remuneration through the back door) not have been better spent getting some real consultancy from real consultants? Given the mess that the whole board has made of the company the answer should clearly be yes. However real consultants would have pointed out the glaring flaws in the business model and how the business was being run and that would have severely impacted on the Companies ability to mislead the market and raise money in order to pay more bogus consultancy fees to the directors.