What’s Happening With These Oil & Gas Stocks? — Precision Drilling, ProPetro, RPC Inc., and Willbros

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FROM: CISION PR Newswire / Wall St. Equities / 16 de Enero de 2018

 

NEW YORK, Jan. 16, 2018 /PRNewswire/ — WallStEquities.com strives to bring the best free research to the investment community.  Ahead of today’s trading session, WallStEquities.com navigates the Oil and Gas Equipment and Services space, which includes companies that provide all the tools and services necessary to explore and drill for new oil and gas supplies. Four equities in this industry have been selected for evaluation, and they are: Precision Drilling Corp. (NYSE: PDS), ProPetro Holding Corp. (NYSE: PUMP), RPC Inc. (NYSE: RES), and Willbros Group Inc. (NYSE: WG).

 

Precision Drilling

Calgary, Canada headquartered Precision Drilling Corp.’s stock rose 3.06%, finishing last Friday’s trading session at $3.71. A total volume of 5.30 million shares was traded, which was above their three months average volume of 2.62 million shares. The Company’s shares have surged 36.90% in the last month and 46.06% over the previous three months. The stock is trading above its 50-day and 200-day moving averages by 28.49% and 15.95%, respectively.

 

ProPetro Holding

Shares in Midland, Texas headquartered ProPetro Holding Corp. ended at $21.09, down 2.13% from the last trading session. The stock recorded a trading volume of 2.07 million shares, which was above its three months average volume of 1.79 million shares. The Company’s shares have advanced 6.73% in the past month and 44.85% over the previous three months. The stock is trading 14.04% and 45.17% above its 50-day and 200-day moving averages, respectively. Moreover, shares of ProPetro, which provides oilfield services, have an RSI of 65.22.

 

RPC Inc.

On Friday, shares in Atlanta, Georgia headquartered RPC Inc. recorded a trading volume of 2.75 million shares, which was above their three months average volume of 1.17 million shares. The stock declined 2.85%, closing the day at $24.54. The Company’s shares have gained 8.07% over the previous three months and 15.20% over the past year. The stock is trading 14.74% above its 200-day moving average. Additionally, shares of RPC Inc., which provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the US, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, and Middle-East, have an RSI of 44.59.

 

Willbros Group

At the close of trading on Friday, shares in Houston, Texas headquartered Willbros Group Inc. recorded a trading volume of 285,697 shares. The stock finished the session 3.17% higher at $1.30. The Company’s shares have gained 0.78% in the past month. The stock is trading below its 50-day moving average by 14.92%. Furthermore, shares of Willbros, which through its subsidiaries, operates as a specialty energy infrastructure contractor serving oil and gas, and power industries in the US and Canada, have an RSI of 48.18. See the free research coverage on WG at:

 

FROM: CISION PR Newswire / Wall St. Equities / 16 de Enero de 2018

Lo que debes saber antes de fletar una embarcación…

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Las embarcaciones son de distintos tipos, desde las más sencillas hasta las más especializadas. Los empresarios no siempre disponen de ellas y cuando las requieren para transportar su mercancía o para cualquier otro fin, generalmente las fletan.

El fletador, entonces, es la empresa o particular que ante la necesidad de utilizar una embarcación, contrata el servicio de un tercero (fletante), a través de un contrato de fletamento, entendido éste como un acuerdo de voluntad entre las partes, mediante el cual una de ellas se compromete a poner a disposición de otra un buque para el transporte de mercancías o para efectuar la transportación de las mismas a cambio de una contraprestación.

Ahora bien, es importante conocer distintos aspectos antes de fletar una embarcación:

  • El contrato de fletamento se denomina póliza. En la póliza se establecen los derechos y obligaciones de los contratantes.
  • Con o sin tripulación. Las embarcaciones generalmente pueden fletarse con o sin tripulación. Cuando se fleta sin tripulación, se les llama fletamento a casco desnudo.
  • Qué tipo de embarcación fletar. Eso dependerá del tipo de mercancía que se desee transportar; actualmente hay embarcaciones consideradas de extraordinaria especialización, cuya utilización responde a fines muy específicos, por ejemplo, para el transporte de petróleo o gas.
  • La responsabilidad que se adquiere al fletar una embarcación. El fletador es responsable por los daños que se puedan causar a la embarcación (al casco o maquinaria); los que se ocasionen a terceros, así como al medio ambiente (riesgos de protección e indemnización).

Para cubrir su responsabilidad, los fletadores deben contar con un seguro de responsabilidad civil del fletador, que les permita tener los recursos económicos necesarios para cubrir el pago de las reparaciones y/o indemnizaciones correspondientes.

Un seguro de responsabilidad civil del fletador ampara la responsabilidad del fletador derivada de la operación de embarcaciones en contratos de fletamento a tiempo (Time-Charter). Los riesgos amparados son, entre otros, 1) De protección e indemnización; 2) responsabilidades derivadas de las operaciones de la embarcación; 3) responsabilidad civil extracontractual y contractual; 4) responsabilidades derivadas de operaciones no relacionadas con la embarcación y 5) daños al casco y/o a la maquinaria de la embarcación fletada.

En NRGI Broker, somos expertos en seguro marítimo. Acércate a nosotros, con gusto te atenderemos.

Latin America´s Energy Reforms will be tested in upcoming elections

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FROM: Interamerican Dialogue / Lisa Viscidi / 9 de Enero de 2018

 

2018 will be a pivotal year for energy in Latin America, as the region’s top oil producers are set to hold presidential elections that could lead to sweeping policy changes. Recent market-oriented energy reforms in countries like Brazil and Mexico have increased investment pledges, but the region is still seeing an overall oil production decline.

The upcoming presidential elections could be decisive in advancing policies to maintain oil revenues. However, in the current climate of growing polarization and deeply unpopular incumbents in Latin America, the elections are generating tremendous political uncertainty. Several left-leaning candidates are against current oil policy but not for the same reasons. Some oppose investor-friendly policies based on oil nationalism; others contest the exploitation of energy resources on environmental grounds.

2018 will be a pivotal year for energy in Latin America, as the region’s top oil producers are set to hold presidential elections that could lead to sweeping policy changes.”
In Mexico, independent candidates are allowed to run for the first time in the July presidential election, opening the way for a broad field of contenders. The front-runner, leftist nationalist Andrés Manuel López Obrador (AMLO), has made opposition to Mexico’s 2013 energy reform a cornerstone of his campaign. President Enrique Peña Nieto of the PRI party, who led the reform, is hugely unpopular. The business-friendly PAN party, which provided the critical votes to pass the reform in congress, is divided. Polls show AMLO with over 30 percentof votes, a sizable lead over the PRI and PAN candidates who are polling at about 17% each. Mexico has no second round of elections, so a candidate can win with a relatively small percentage of votes.

The energy reform eliminated Pemex’s decades-long monopoly on oil production, and dozens of private companies have since won contracts in bid rounds that will bring an estimated $59 billion in investment.”
The energy reform eliminated Pemex’s decades-long monopoly on oil production, and dozens of private companies have since won contracts in bid rounds that will bring an estimated $59 billion in investment. But this is only a fraction of the capital needed to return to Mexico’s 2004 peak oil production of 3.4 million barrels per day (mbd) compared to 2 mbd today. The government’s best-case projections see production rising only in 2019, meaning Mexicans will cast their vote before the reform starts to bear fruit.

AMLO has seized on weak oil production as proof that the sector’s opening is not delivering as promised and pledged to hold a public referendum to overturn the reform. Only a two-thirds congressional majority – which AMLO is unlikely to secure – can undo the constitutional reform, and it would be legally difficult to change existing contracts. And, despite his provocative stance, AMLO could choose to support private investment once in office in a bid to generate more oil revenue for his government. However, the president has broad powers to halt the opening of the sector. The energy ministry designs oil auctions and their timelines, selects the contract type for each oil block and can hand any field to Pemex. Many investors fear that an AMLO administration would make terms less attractive or cease holding the auctions that have allowed private firms to enter the country altogether.

In Brazil, the October presidential elections will also be a bellwether for the energy sector. President Michel Temer introduced energy policies making terms more attractive for international investors. He removed onerous local content requirements from bidding criteria, set a regular pre-salt bid round schedule and signed a law allowing companies other than state oil giant Petrobras to operate Brazil’s high-cost offshore pre-salt fields. The results have already been visible; in an October pre-salt auction, six of eight blocks on offer received bids, and signing bonuses totaled $1.9 billion.

While it is too early for formal candidacy announcements, former President Luis Inácio Lula da Silva is currently the clear front-runner despite having been convicted in July on charges of corruption, which he is appealing. If elected, Lula would likely reinstate his previous nationalist oil sector policies. In recent rallies with supporters, he has criticized Temer’s government for selling off Brazil’s wealth to foreign corporations and said Petrobras should be used as an instrument of development and job creation. If Lula is behind bars, he will likely throw his support behind another Worker’s Party candidate with a similar platform. Following Lula in the polls is right-wing nationalist Congressman João Bolsonaro. He has so far focused on security and social issues, and his positions on energy are unclear. Probable centrist candidates Geraldo Alckmin and João Doria – governor and mayor of São Paulo, respectively – favor investment-friendly policy. But both trail Lula and Bolsonaro in polls.

In Colombia, a crowded field of candidates with a broad spectrum of economic and energy policy platforms are competing for the presidency.”
In Colombia, a crowded field of candidates with a broad spectrum of economic and energy policy platforms are competing for the presidency. Colombia has seen a steep decline in oil investment and revenue since the 2014 oil price collapse. Crude production has fallen since 2015. Less drilling has led to fewer discoveries, and at its current production rate, Colombia will run out of oil reserves in about five years. This is due to lower oil prices coupled with widespread local opposition to the oil and mining sectors, as some communities are demanding additional economic benefits and others oppose drilling based on environmental concerns.

Whether or not the sector will return to its former role as a primary driver of Colombia’s economy depends largely on whether the government can generate local community support for oil projects or chooses to prioritize other economic sectors. The field of potential candidates includes conservatives who want to promote oil investment through market-friendly reforms and leftist candidates who say Colombia should wean its economy off of oil, which causes environmental damage and is not a viable long-term driver of growth in a low-carbon economy. With the crowded field and deep divisions over the controversial peace deal with the FARC, no candidate will likely secure a majority in May, and a second round in June is almost inevitable.

In contrast to the other countries, Venezuela is unlikely to elect a new president or substantially change energy policy.”
In contrast to the other countries, Venezuela is unlikely to elect a new president or substantially change energy policy. Its constitution calls for elections next year – and President Nicolás Maduro has promised to hold them – but with the National Electoral Council stacked with Maduro allies and the president’s penchant for circumventing the democratic process, analysts predict he will rig the election to remain in power.

Venezuela’s oil industry – responsible for 96 percent of exports – is on the decline. The global oil price collapse exposed long-standing issues at state oil company PDVSA like underinvestment, lack of maintenance and unsustainable payments to support government programs. Production has plummeted, and with massive payments due to international creditors and much of the country’s oil output being used to pay off oil-backed loans, PDVSA cannot make the necessary investments to turn production around. But rather than introduce the reforms necessary to put Venezuela’s economy and oil sector back on track, Maduro has doubled down on failed policies like exchange rate controls and energy subsidies in a desperate effort to retain power.

Many Latin American presidents are hugely unpopular and voters are looking for change.”
Many Latin American presidents are hugely unpopular and voters are looking for change. This landscape creates tremendous uncertainty for investors and companies in oil and other economic sectors. Energy has long been a politically charged issue in Latin America, leading to erratic approaches between one government and another and politically driven policies that have ultimately resulted in oil production declines. Rather than taking divisive positions on energy policy, the candidates should seek to build consensus and take a sober look at how to maximize productivity and deliver the greatest revenues for the state or prepare for diminished economic returns from the sector.

 

 

FROM: Interamerican Dialogue / Lisa Viscidi / 9 de Enero de 2018

 

Mexico Spent About $1.26 billion on 2018 Oil Hedges

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From Oil&Gas People / 1 de Diciembre de 2017

 

Mexico spent some 24.1 billion pesos ($1.26 billion) on contracts to hedge its 2018 oil exports, Finance Ministry Chief Economist Luis Madrazo said on Tuesday, part of government’s efforts to stabilize its budget.

Madrazo did not specify the number of barrels of export production that Mexico had hedged with derivatives contracts nor did he detail the average price per barrel of put options that the government has purchased.

In September, the Finance Ministry proposed a 2018 budget that based expected oil export revenue on an estimate of $46 per barrel. Members of Congress increased that estimate to $48.5 per barrel earlier this month as global oil prices rose.

For more than a decade, Mexico’s government has paid for a hedge every year in a bid to guarantee its revenues from oil exports by state company Pemex. The program is seen as the world’s top sovereign derivatives trade.

Last year, the government bought put options at an average price of $38 per barrel to cover 250 million barrels of crude at a cost of $1.03 billion and underpin the 2017 budget, which was based on an average price of $42 per barrel.

The government set aside $4 a barrel from a special fund to make up the difference between its put options and the budgeted price.

This year, Mexico is on track to not see any income from its oil hedge as prices for Mexican crude are currently near $54 per barrel, well above the put options. In 2016, Mexico saw a $2.65 billion payout from its oil hedge.

Mexico hedges its crude every year and deals are closely watched by the market since the trades are big enough to affect prices. The program is a longstanding part of the country’s strategy for safeguarding oil revenues from market volatility.

Mexico used to receive about one-third of federal revenues from oil sales, but it now funds less than one-fifth of the budget with oil sales after the collapse crude prices in late 2014 and a decline in production.

 

oilhedge

 

From Oil&Gas People / 1 de Diciembre de 2017

 

Oil prices are poised for a pullback after OPEC announces its output cut decision

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From CNBC / Tom DiChristopher / 28 de noviembre de 2017

 

Market watchers see few opportunities for oil prices to rally — but plenty of room for them to fall — after a critical meeting of energy ministers later this week.

About two dozen oil exporters, including top producers Saudi Arabiaand Russia, meet on Thursday in Vienna to discuss extending a deal to keep 1.8 million barrels a day off the market. The historic agreement has helped to reverse a three-year oil price downturn that wiped out hundreds of thousands of energy jobs and piled financial pressure on both free market American drillers and countries dependent on oil revenue.

The market largely expects the 14-member OPEC cartel and a group of other producers led by Russia to extend the deal, which began in January and expires in March, through the end of 2018.

But just days before meeting, Russia has not committed to the nine-month extension, raising concerns that OPEC could settle for a shorter extension or push off a decision altogether. Either of those scenarios would spark a sell-off, analysts say, but oil prices will probably struggle to grind higher from recent 2½-year highs even if OPEC lives up to expectations.

Here’s how analysts expect markets to move under three scenarios.
OPEC extends by nine months
Andy Lipow, president of Lipow Oil Associates, expects OPEC to lock down the nine-month extension. But he also expects a pullback on the news.

The reason: Hedge funds have recently increased their long positions in oil futures, or bets that prices will keep rising. That makes prices vulnerable to a slide because traders often book profits by selling high. At the same time, the number of oil rigs operating in U.S. oil fields crept up in November, a trend that tends to weigh on prices.

“The market has gotten very, very long and as a result you can have some profit-taking triggered by the increase in the rig count on Friday,” Lipow said.

Tom Kloza, global head of energy analysis at Oil Price Information Service, also thinks a nine-month extension has been baked into prices, making it hard for U.S. West Texas Intermediate crude to rally beyond Friday’s 2017 intraday high of $59.05.

“We may look back at Black Friday as the as-good-as-it-gets number for U.S. producers,” he said.

U.S. crude could take another run at the $59 per barrel level, but OPEC would have to get the messaging just right, said John Kilduff, founding partner at energy hedge fund Again Capital. That includes a show of unity among regional geopolitical rivals Saudi Arabia and Iran and a clear signal that OPEC will force member countries Libya and Nigeria to cap their output after giving them a pass this year.
OPEC settles for six months
However, Kilduff thinks OPEC will only be able to commit Russia to a six-month extension.

He said the country’s energy companies have pushed back on Russian Energy Minister Alexander Novak and President Vladimir Putin as U.S. producers pick up market share in Asia, an important oil growth market. Russian energy giants are concerned that extending the cuts prematurely could leave the market undersupplied, causing a spike in prices that leads to another crash.

“If they do go six months I would expect them to spin it and say they’re going to review it next year,” Kilduff said. “That’s going to be seen as a disappointment.”

In that scenario, Kilduff sees oil prices falling back to the mid-$50 range.
Barclays expects either a six- or nine-month extension but says the market is asking the wrong question. Michael Cohen, the investment bank’s head of energy markets research, says traders should be asking whether exporters will be held to the same production caps they agreed to last year.

“It would be a misguided assumption in our view to expect the group’s production quotas to remain set in stone in 2018,” Cohen said in a research note Monday. “The sustainability of the deal depends on how much longer Saudi Arabia, Russia, Iran and Kuwait are willing to sacrifice market share in the pursuit of revenue and market stability.”

 

From CNBC / Tom DiChristopher / 28 de noviembre de 2017

Renaissance Oil initiates multi-well drilling program at Amatitlán

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From Renaissance Oil Corp. / Craig Steinke / 27 de Noviembre de 2017

 

VANCOUVER, Nov. 27, 2017 /CNW/ – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V: ROE) is pleased to announce the Comisión Nacional de Hidrocarburos (the “CNH”) has approved drilling permits for the Chicontepec multi well drilling program on the Amatitlán block in Veracruz, Mexico.  In conjunction with its partner Lukoil, Renaissance will conduct the following operations:

During the week of December 4th, 2017, mobilize Simmons Edeco Rig 836 to a multi-well drilling location and spud the first well, Amatitlán 1649, of the 10 well drilling campaign which will occur over the course of several months;

Each well will be directionally drilled, targeting multiple Chicontepec intervals, to a total depth of 1,975 meters; and

The second well in the program, Amatitlán 1708, will be drilled subsequently from the same multi-well location.

“As the first Canadian operated oil well drilled in Mexico, in almost a century, the Amatitlán 1649 is a historical milestone”, stated Craig Steinke, Chief Executive Officer of Renaissance.  He added, “Rig 836, owned by Canadian based Simmons Edeco, will also be used to drill the planned 4,200 meter measured depth horizontal Upper Jurassic shale well.”

Renaissance continues to make progress on its journey to become a major Mexican energy producer.

From Renaissance Oil Corp. / Craig Steinke / 27 de Noviembre de 2017

Los peores accidentes con hidrocarburos en México: Primera Parte

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En México, la actividad petrolera es una de las más importantes por su contribución al desarrollo económico, sin embargo también está considerada una industria altamente riesgosa, por su potencial para causar daños a personas, bienes y al medio ambiente. En ocasiones, a pesar de contar con diversas medidas de seguridad, los accidentes ocurren y pueden llegar a tener consecuencias catastróficas.

A continuación, se presentan dos de los peores accidentes con hidrocarburos y/o petrolíferos sucedidos en México:

19 de noviembre de 1984. Se registraron diversas explosiones en las plantas de almacenamiento y distribución de Gas de Pemex en San Juan Ixhuatepec, Tlalnepantla, Estado de México. La planta de almacenamiento contaba con 4 tanques con un volumen de 1600 m3 y 2 con un volumen de 2400 m3, equivalente a 11,000,000 de litros aproximadamente[1].

El accidente provocó la muerte de entre 500 y 600 personas y un aproximado de 4,500 heridos, 200 mil damnificados.

El 22 de abril de 1992.  Una fuga de gasolina de un ducto de Pemex en Guadalajara vertió al subsuelo y al sistema de drenaje de la ciudad, lo que causó una gran explosión que dejó unos 210 muertos además de cuantiosos daños.

Estos dos siniestros significaron un importante precedente para la regulación de actividades altamente riesgosas, consideradas todas aquellas que manejan alguna de las sustancias contenidas en el Primer Listado (Manejo de Sustancias Tóxicas), de fecha 28 de marzo de 1990 y el Segundo Listado (Sustancias Inflamables y Explosivas) de fecha 04 de mayo de 1992.

Los listados fueron publicados posteriormente a cada uno de los siniestros antes mencionados, como una forma de incrementar las medidas de seguridad y evitar que volvieran a suceder.

En esos listados, se encuentran los hidrocarburos y petrolíferos, por lo que todos aquellos manejan estas sustancias están obligados a cumplir con la regulación aplicable a las actividades altamente riesgosas.

Una de esas obligaciones es contar con seguros de responsabilidad civil y responsabilidad ambiental para responder por los daños que puedan causar a terceros.

En NRGI Broker somos expertos en seguros para el Sector Hidrocarburos. Acércate a nosotros, con gusto te atenderemos.

 

 

[1] Ver “The tragedy of San Juanico- the most severe LPG disaster in history”, disponible en:http://www.ncbi.nlm.nih.gov/pubmed/358094

China’s promised energy revolution

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From: Financial Times / Nick Butler / 19 de noviembre

 

Can China transform its energy economy? For the last 30 years rapid economic growth – based on heavy industry, manufacturing and construction – has been sustained by hydrocarbons. Coal remains dominant; what has changed is the volumes involved. In 1990, China used some 446m tonnes of coal. This year the figure will be around 2.8bn tonnes. In parallel, oil demand has grown with the dramatic expansion of car numbers. Oil consumption was 2m barrels a day in 1980. Now it is almost 12m b/d, making China the largest oil importer. But growth has come at a cost. China, as last week’s announcement from the Global Carbon Project reminded us, is the largest single source of emissions and suffering badly from the low level pollution that covers many cities in smog. President Xi Jinping has promised dramatic change – an energy revolution “to make the skies blue again”.

The rhetoric is great but are the promises deliverable? A comprehensive study of the Chinese energy market published last week as part of the International Energy Agency’s new World Energy Outlook is a great place to start for anyone wanting to understand what is happening and what might happen next. The facts are remarkable: China consumes 25 per cent of energy used globally each day. Coal continues to dominate Chinese energy use – in industry, power generation and heating – providing almost two-thirds of total demand. The country produces and uses over 50 per cent of all the coal burnt globally. Power generation has grown dramatically to meet electricity demand that has quadrupled since 2000. Gas use is relatively small but growing – mostly relying, for now, on imported LNG. China is the leading producer of wind and solar power. Advances in technology and production efficiency have cut costs and made the country the dominant supplier of solar panels to the rest of the world. China is building dozens of new nuclear plants – more than a third of the global total. Its nuclear industry is developing its own reactor technology, aiming to create a world-class export industry. The country leads the global electric vehicle industry. Of the estimated 2m electric vehicles on the world’s roads by the end of this year, at least 40 per cent will be in China. Remarkable advances in energy efficiency have been made, and the amount of energy used for each unit of China’s gross domestic product has fallen 30 per cent since 2000 but emissions remain a challenge. After three years when reported emissions were flat, renewed industrial growth has pushed them up again.

Each of these facts reflects a dramatic change in the last 10 to 15 years. But they do not represent an end point. The party Congress in Beijing endorsed the latest plan – a sweeping statement of intent entitled “Energy Production and Consumption Revolution Strategy”. The plan describes a transformation of the whole energy sector over the next decade and a half. The share of non-fossil fuels will rise to 15 per cent by 2020, and to 20 per cent by 2030, meeting most if not all incremental demand. By 2030, 80 per cent of all remaining coal-fired power stations will have ultra low emissions as old capacity is retired. GDP energy intensity will fall by 15 per cent and the amount of carbon required will fall by 15 per cent. Further improvements will come over the following decade to 2030 The target is to ensure that emissions peak by 2030. The long-term goal for 2050 is to reduce the share of fossil fuels to less than half the total, to rebase the whole system on leading-edge energy technologies and equipment and make China an important player in global energy governance. History suggests it is unwise to underestimate China’s ability to deliver on its plans but in this case there are good reasons for doubt. Infrastructure and market structures are needed to support the changing energy mix.

As the IEA analysis makes clear, the absence of infrastructure and a supportive regulatory regime already limit the potential of natural gas. The same problems could constrain wind and solar. Electric vehicle numbers are growing but the odds are still that the bulk of the electricity they use will be produced from coal for a long time to come. An excellent post by Simon Goess for the Energy Collective website spells out the reality. In addition, industrial changes have to be managed. In coal and the major manufacturing sectors many workers and whole communities remain dependent on activity that is likely to be transformed or eliminated by technology. The Chinese coal industry, for instance, employs 4m. Trade dependence also poses risks. The target of 80 per cent net self-sufficiency is probably achievable with the combination of coal, new nuclear and renewables, including hydro. But the remaining 20 per cent involves the critical supply of oil where import dependence has doubled in the last five years. On the IEA’s estimate, China will need to invest $6.1tn – $250bn a year on energy supply between now and 2040, two-thirds of which will go into the power sector. Another $2.1tn ($90bn a year) will be needed to deliver the required gains in energy efficiency. China is a dominant force in the global energy market. Next week I will look at the international implications of what is happening. But energy also matters for the survival of the regime in Beijing. The political process has not been ended by Mr Xi’s triumphant re-election. A sustained improvement in living standards over the last three decades has helped to keep the Communist party in power. That would not have been possible if the energy system had not been adapted to meet growing demand in what is now a consumer society. The “iron rice bowl” now extends beyond employment and food to mobility and increasingly to the demand for a cleaner environment. As ever, energy and power are inseparable.

 

 

From: Financial Times / Nick Butler / 19 de noviembre

Record Year for Europa Oil & Gas

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 From: Rigzone Staff / Monday, October 30, 2017

 

2016/17 was a record year for Europa Oil & Gas (Holdings) plc in terms of corporate activity, according to the company’s CEO Hugh Mackay.

During this time, Europa achieved a successful farm-out to Cairn of a 70 percent interest in one of the company’s South Porcupine licenses, two separate sales of Europa’s interest in the Wressle oil field in the East Midlands, the acquisition of Shale Petroleum, and the farm-out of a 12.5 percent stake in the upcoming Holmwood well in the Weald basin.

“In our view, this activity is testament to the quality of the technical work we have carried out on our licenses, the excellent location of our assets both offshore Ireland and onshore UK, and the major uptick in industry interest and activity in new plays across our areas of focus,” Mackay said in a company statement.

“The year ahead should see more of the same. We remain focused on securing farm-outs for the remainder of our Irish licenses with partners with whom we can advance our assets towards drilling. At the same time, we are looking forward to commencing drilling activity at the conventional Holmwood prospect in the Weald, an area that is generating considerable excitement following the opening up of the Kimmeridge limestone play,” he added.

Europa registered revenues of $2.1 million (GBP 1.6 million) for the 12 month period ended July 31, 2017. This marked a slight increase over last year’s figure of $1.7 million (GBP 1.3 million). Net cash balance as at July 31, 2017 stood at $4.7 million (GBP 3.6 million), compared to $2.2 million (GBP 1.7 million) last year.

 

 

 From: Rigzone Staff / Monday, October 30, 2017