Fri Apr 17, 2015
Patriot Coal Corp., which emerged from Chapter 11 bankruptcy protection less than two years ago, is working with restructuring advisers to address its capital structure.
April 18, 2015 5:10 AM
WASHINGTON (AFP) - US Treasury Secretary Jacob Lew warned Friday that the European and global economies could face uncertainty if EU negotiations on more financing for Greece fail.
MUMBAI: Reliance Industries Ltd warned investors to expect slower growth from its US shale assets in the near term as a slump in oil prices prompts spending cuts. However, the company posted better than expected fourth quarter profits on Friday, led by strong growth in margins at its core refining business. Reliance, also dogged by falling production at its domestic oil and gas business, said it would focus on cutting costs in its shale operations in light of a "challenged" market outlook. The prospect of another plunge in crude prices after two months of relative stability has prompted expectations that shale oil producers could go for another round of spending cuts. Reliance has invested $8.1 billion in three shale joint-ventures in the United States. Shale represents just a fraction of Reliance's overall profit, but is an important part of the firm's upstream business which has struggled at home. Investments to expand capacity at Reliance's core refining and petrochemicals businesses, however, helped the company post an 8.5 per cent rise in consolidated net profit for the quarter ended March 31. Its financial year runs to the end of March. The company's gross refining margin, or the profit it makes from each barrel of crude oil refined, hit an eight quarter high of $10.1 in the three months, compared with $9.3 in the same period a year earlier. The refining business at Reliance, which operates the world's largest refinery, accounted for over 70 per cent of the company's gross turnover in the year ended March 2015, dwarfing its activities in telecoms, retail and upstream oil and gas. Excluding its non-energy businesses, Reliance reported an 11 per cent rise in standalone quarterly net profit to 62.43 billion rupees, beating average analyst expectations of 58.74 billion rupees, according to Thomson Reuters data. Revenue from the company's retail business, which posted its first annual profit in the previous fiscal year after six years of losses, rose almost a third. The company, which has spent close to $12 billion in its yet-to-be-launched fourth generation telecoms ventures -- Reliance Jio, said it had made significant progress in building the physical network infrastructure towards the unit's rollout. It is widely expected to launch commercial services later this year. Shares of Reliance, the second-largest Indian company by market value, closed fractionally lower ahead of the results on Friday, while the benchmark index ended down 0.78 per cent.
World oil prices ran out of steam on Friday (Apr 17) after six days of gains, amid concerns about abundant global supplies, heightened by quota-breaking OPEC production.
Argentina has started legal proceedings against three British and two US companies for drilling oil near the Falkland Islands.
The U.S. oil-rig count fell by 26 to 734 in the latest week, according to Baker Hughes, slowing from the previous week’s decline.
CNBC's Morgan Brennan reports U.S. oil rigs are down by more than half versus last year; and Jackie DeAngelis rounds up the price action in oil for the week.
"We think we're close to a bottom in the oil field services cycle," Kurt Hallead of RBC Capital Markets said.
NEW DELHI: The coal production from captive mines more or less measured up to the government's estimate, which stood at 52.9 million tonnes (MT) last fiscal. The output registered an increase of 34 per cent amid a widening gap between demand and supply of coal. Coal production from the 42 producing captive mines was at 39.48 million tonnes in 2013-14, an official said. "Based on the review of the status of producing coal blocks which have not yet attained PRC (peak rated capacity) and the coal blocks which were likely to commence production in 2014-15 as well as the information/assurance given by the coal block allocatees, production during 2014-15 is 52.9 MT," said the minutes of a meeting held earlier. The meeting was held under the chairmanship of Additional Secretary, Coal, to review the progress of production for the the current fiscal. "The purpose of the meeting was to ascertain the likely coal production for the captive coal blocks during the year 2014-15...," it said. India's coal imports in 2014-15 ticked up 33 per cent to about 240 million tonnes.
Delhi-based Rathi Steel and Power said it has not extracted any coal from the Kesla north block and there was no wrongful gain or corresponding loss to anybody
Argentina begins legal proceedings against three British and two US companies for drilling oil near the Falkland Islands.
Rising gas prices in March led to a slight increase in inflation, a sign that some of the broader economic impact from cheaper oil is fading. The con...
NEW DELHI: Government has approved the transfer of existing coal linkage of Panipat Thermal Power Station (TPS) to a new super critical plant at the same location in Haryana. The move is in line with the policy formulated after the NDA government took over in May last year for automatic transfer of coal linkage in case of scrapping of old thermal plants and replacing them with new super critical plants. "Under this dispensation, inefficient and uneconomical units 1 to 4 (each of capacity 110 MW) at Panipat TPS shall be replaced by setting up more efficient super critical unit of 660/800 MW capacity at the available land within the same premises by way of simultaneous phasing out units 1 to 4 during the next 4 to 5 years," the Coal Ministry said in a statement. As per the new policy, linkage granted to the old plant shall be automatically transferred to the new plant of nearest super critical capacity. "If the capacity of the new super critical plant is higher than the old plant, additional coal may be accorded priority subject to the availability of coal on the best effort basis from Coal India Ltd (CIL)," the statement said. The only technical requirement is that a capacity equivalent to at least 50 per cent of the proposed capacity of new super critical plant has to be retired, it added. Coal Ministry said that this policy shall be applicable to pre-NCDP (New Coal Distribution Policy) plants in public sector only, which have already been granted long term linkages/ letter of assurance (LoAs). Automatic transfer of LoA is permissible only when the new plant is set up within the State in which the old plant was located and the old plant is actually scrapped, it said adding, the old plant can continue to operate only till the commercial operation date (CoD) of new plant. The decision to transfer the existing linkage has been taken on the basis of recommendations of the Standing Linkage Committee (Long Term) which considered the request of the Government of Haryana, it said.
Morgan Stanley says now is the time to buy energy stocks. Offshore drilling giant Transocean soared 13% this week.
Michael Scialla, research analyst at Stifel, says that despite oil's volatility, he expects prices to rise in the next 18 months.
Oil eased below US$64 a barrel on Friday as evidence this week of rising crude supplies from OPEC members outweighed signs of a slowdown in U.S. output and Middle East tensions.
Oil India, the nation's second largest state-owned oil explorer, today said it has commissioned a 54 MW wind energy project in Gujarat and Madhya Pradesh.
NEW DELHI: Oil India, the nation's second largest state-owned oil explorer, today said it has commissioned a 54 MW wind energy project in Gujarat and Madhya Pradesh. Saddled between the two states, the project is split between a 16 MW capacity plant at Patan in Gujarat and a 38 MW at Chandgarh in Madhya Pradesh, the company said in a statement. The project cost Rs 439 crore -- Rs 126.5 crore for the Gujarat side and Rs 312.45 crore for the Madhya Pradesh location. "With this, OIL's installed renewable energy capacity (commercial wind energy and solar energy projects) stands at an impressive 126.60 MW," it said. OIL said the Patan wing of the project was commissioned on March 26 while the Chandgarh site was commissioned on March 31. "The Project, fully funded by OIL, is being run by Gamesa Wind Turbines, Chennai, who are the project developers. The Project Management consultants are Power and Energy Consultants, New Delhi," it added.
NEW DELHI: A delegation will visit Iran this week to scout for investment opportunities ahead of an anticipated nuclear deal between the OPEC-member and world powers that would soften sanctions against the country, sources privy to the plan said. Officials from finance and oil ministries and executives from ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd are part of the delegation that will hold meeting with their Iranian counterparts on Saturday, the sources said. India is Iran's biggest oil client after China although its imports from Tehran have declined under pressure from western sanctions. Oil imports from Tehran have eased from 370,000 bpd in 2010/11 to about 220,000 bpd in 2014/15 under pressure from international sanctions. Iran and six world powers reached a framework nuclear agreement on April 2, spurring hopes for a final deal by end-June that would lift economic sanctions imposed by the West against Tehran's disputed nuclear programme. Apart from seeking more oil at better terms and other investment opportunities in the energy sector, the delegation will push for development rights at the Farzad-B gas field in Farsi block, the sources said. Iran will need significant amount of capital and advance technology for a sharp growth in its oil production as many of Tehran's huge and geologically complex fields have not been not maintained "in the best way" due to the sanctions, Fatih Birol, chief economist at International Energy Agency told Reuters in an interview on April 12. A consortium headed by ONGC Videsh, the overseas investment arm of the top explorer ONGC, signed a deal in December 2002 to explore the Farsi offshore block in Iran. The Farzad-B gas field is estimated to hold initial in-place reserves of 12.5 trillion cubic feed (tcf) and to have a lifetime of 30 years. Iran's oil and gas sector needs $220 billion for new projects and rehabilitation of existing assets, an Iranian diplomat told Reuters, adding Farzad-B development could cost $7 billion. Former Iranian oil minister Rostam Qasemi in 2013 offered India a deal to sign a production sharing contract for the block, a deviation from the Iranian norms that offer fixed rate of return on investment, a source privy to the talks said. India did not sign the deal under pressure from the western sanctions, this source said.
An Indian delegation will visit Iran this week to scout for investment opportunities ahead of an anticipated nuclear deal between the OPEC-member and world powers that would soften sanctions against the country, sources privy to the plan said.
Crude oil futures fell by Rs 52 to Rs 3,615 per barrel today as speculators reduced positions on profit-taking amid a weakening trend in Asian trade.
Brent crude oil prices fell over a dollar, ending a run of rallies earlier in the week, after OPEC said that its output surged.
Michael Yoshikami, founder & CEO of Destination Wealth Management, expects oil that was previously kept in storage to hit the market over the next 45-90 days thereby keeping prices low.
Hong Kong stocks rose marginally in morning trading on Friday, with a jump in oil prices giving a boost to the energy majors.
Crude production remains strong, but the U.S. may be at, or near, an oil-output peak.
Thu Apr 16, 2015
It's the second big layoff at Schlumberger this year. The oil services company cut 9,000 workers in January.
KUWAIT CITY, April 16: Chairperson of Petroleum and Petrochemical Industry’s Workers Union Yusuf Al-Kandari revealed the Executive Council of the union has presented a request to Kuwaiti Petroleum Corporation (KPC) to increase the percentage of cash...
Oil equipment provider Schlumberger on Thursday said it would cut an additional 11,000 jobs, which brings the total number of cuts to 20,000.
Wall Street equities finished modestly lower on Thursday as investors worried about coming corporate results, while European stocks fell nearly 1 percent under the weight of Greece's worsening financial predicament.
Oil prices marked gains for their sixth day running on Thursday (Apr 16) amid signs that US production, a key driver of the global supply glut, may be on the cusp of easing.
Bank lenders are curbing the amount of money they supply to energy companies amid an ongoing swoon in crude oil.
Strong winds across much of China have resulted in Solar Impulse 2, the Swiss solar-powered plane on an around-the-world trip, being grounded in Chongqing for at least three weeks.
It appears that the first hard challenge to Obama’s Climate agenda via EPA mandates will not advance. The court, it seems, does not want to be dragged into a “morass”. The judges do have a point; how can they rule on rules which have yet to be finalized. It appears to be a case of premature tort and that could be very messy.
HYDERABAD: Mytrah Energy, a renewable energy-focused independent power producer, has raised a capital worth USD 60 million through non-convertible debenture from Merrill Lynch International and Aion Direct Singapore. Together with the cash flow from existing 543 MW operating portfolio and the recently concluded USD 70 million financing, this new capital provides all of the equity required to take Mytrah Energy's generating capacity beyond 1000 MW, the company said in a statement. The new capital provided by Merrill Lynch International and Aion Direct Singapore Pte Ltd is in addition to the existing India-listed non-convertible debenture (NCD) issued by Mytrah Energy (India) Ltd and a USD 4 million loan to Mytrah Energy Ltd, it said. As announced in November last year, the NCD is a long-term five-year instrument with a cash coupon of 12 per cent per annum. The new capital represents the exercise of the USD 28 million "greenshoe" option, plus a USD 32 million extension. The proceeds from this issue will be used primarily to re-finance part of existing mezzanine facilities of Rs 110 crore and the balance for development of new wind power projects from the company's extensive pipeline, the statement said. "As part of the USD 32 million extension to the NCD, the company has issued additional warrants giving the NCD investors the option to purchase a total of 28,27,350 shares in Mytrah Energy at a strike price of USD 1.2 per ordinary share. "These warrants represent 1.5 per cent of the company's issued share capital post exercise and can be exercised at any time during the five-year lifetime of the NCD. This brings the total warrants in issue under this structure to 6.5 per cent of the company's issued share capital post exercise," it said. Ravi Kailas, Chairman & CEO, Mytrah Energy Ltd said, "I am delighted to extend a warm welcome to Aion, which joins Bank of America Merrill Lynch and Apollo funds in this total USD 130 million capital raise. "In four years, thanks to the support from our enthusiastic partners and an entrepreneurial team, our business has grown from an idea to 543 MW of operating capacity, with a future project pipeline of 3500 MW. This new capital provides the equity we need to take our capacity beyond 1000 MW."
India has 900 GW of commercially exploitable sources of renewable energy if 3 per cent of the country’s wasteland is made available, according to the Ministry for New and Renewable Energy. The ren...
Oil prices collapsed in the six months to January, pushing Brent down more than 60% to almost $45 a barrel
The mainland will ban water-polluting paper mills, oil refineries, pesticide producers and other industrial plants by the end of next year, as it moves to tackle severe contamination of the water supply.
MOSCOW, April 16 - Urals crude differentials were seen steady in the Baltic and stronger in the Med on Thursday, while Urals cracks fell after the oil price rose sharply. Oil rose more than 3 percent on Thursday, pushing Brent crude to a 2015 high above $63...
US Secretary of Commerce Penny Pritzker is encouraging American companies and Shanghai enterprises to collaborate in clean energy. “We would like to see more cooperation in Shanghai’s clean energy future,”
APPLE is helping build a 40-megawatt solar power project in China’s southwestern plateau in order to work toward its environmental and climate commitments, a company senior executive said yesterday. The
The growth of China’s total power use slowed in the first quarter, the latest sign of feeble economic momentum amid downward pressure.
China continued to be increasingly successful at discovering crude oil and natural gas reserves last year, new data from the Ministry of Land and Resources indicated yesterday.
The new capital provides all of the equity required to take Mytrah's generating capacity beyond 1,000 Mw
Quiet diplomacy among the world's biggest oil producers has heated up this week, yet observers see few signs that renewed discussion among Russia, Saudi Arabia, Venezuela and others will lead to action on output.
The initiatives come as Apple meets a self-imposed goal of powering all its U.S. operations with renewable energy.
PALO ALTO (CALIFORNIA): Apple is expanding its environmental efforts by investing in a new Chinese solar power project and preserving 36,000 acres of "sustainable" timberland in Maine and North Carolina. The initiatives come as the tech giant this year met a self-imposed goal of powering all its US operations with renewable energy to reduce carbon emissions - initiatives that have won high marks from environmental groups like Greenpeace. On Thursday, Apple announced a new focus on using paper from trees harvested under environmentally sound conditions. It's also promising to use more renewable power overseas, where Apple relies heavily on contract manufacturers - and where a top executive acknowledged the company can do more. "It's important to us to tackle climate change everywhere we are," Lisa Jackson, Apple's vice president for environmental initiatives, told The Associated Press. "When you talk about China, you're talking about manufacturing partners. We're looking to bring the same innovation there. This is the start." The new solar project in China has a capacity of 40 megawatts, which is smaller than some projects Apple has announced in the United States. By comparison, Apple is spending $850 million for rights to nearly half the output of a 280-megawatt solar facility planned for construction south of Apple's Cupertino, California, headquarters. That project will produce enough energy to power all of Apple's California offices, a computer center and 52 retail stores. Still, the Chinese project will produce more than the amount of energy consumed by Apple's 19 corporate offices and 21 retail stores in China and Hong Kong, Jackson said. She added that Apple uses renewable energy for 87 percent of the power at its facilities worldwide. That figure, however, doesn't include substantial power consumption by contract manufacturers. With the new project in China, Apple is looking to improve its own operations first. "Before we go somewhere else and start asking and eventually requiring clean energy, you want to make sure you show folks how to do it," said Jackson, who was US Environmental Protection Agency administrator during President Barack Obama's first term. Jackson declined to say how much Apple is investing in the plant, which is being built in partnership with US energy company SunPower and four Chinese firms. Although China is known for heavy reliance on coal, its government has set aggressive goals for solar, wind and hydroelectric power. Meanwhile, Apple pledged an unspecified amount of money for a Virginia-based nonprofit, the Conservation Fund, to purchase two large tracts of timberland on the East Coast. The Conservation Fund will resell the land to commercial interests under legally binding terms that require future owners to preserve the forest and follow environmentally sound principles for cutting and replanting trees. Larry Selzer, the group's chief executive, said that will protect the forest while keeping it in the hands of private owners who pay taxes and create jobs. Selzer said he'll use proceeds from reselling the land to buy and protect additional tracts. Apple won't necessarily buy paper made from trees on that land, but Jackson said the investment will increase the supply of sustainable wood fiber. She said the two tracts would produce about half the non-recycled wood fiber used in Apple's product packaging last year. That would put Apple halfway toward its goal of obtaining all its non-recycled paper products from sustainable timber. Apple wouldn't say how much paper it uses, but it says two-thirds of its paper packaging comes from recycled material. In the last three months of 2014, Apple sold more than 100 million iPhones and other gadgets, most in cardboard boxes.
Stocks of companies in renewable energy space are on an upswing driven by investor interest, restructuring and government's push for green energy
Apple is expanding its environmental efforts by investing in a new Chinese solar power project and preserving 36,000 acres of “sustainable'' timberlan...
Merrill Lynch International and Aion Direct Singapore Pte Ltd have invested $60 million (Rs 350 crore) in Mytrah Energy Limited, the India-based renewable energy focused independent power producer, through non-convertible debenture.
Prices soared Wednesday as oil producers quietly meet, but analysts see few signs of production cuts
Crude oil futures rose by Rs 23 to Rs 3,618 per barrel today as speculators created fresh positions, tracking overnight gains in the global market.
KOLKATA: Eastern Coalfields has topped among the eight subsidiaries of Coal India in terms of production and offtake targets for the year 2014-15. According to provisional data released by Coal India, Eastern Coalfields (ECL) has achieved a production of 40 million tonnes (MT) or 105 per cent of the target of 38 MT set for the fiscal 2015, registering a growth of 11 per cent over the previous year. Two more subsidiaries, Bharat Coking Coal (BCCL) and Central Coalfields (CCl), had surpassed their respective production targets for the year. Production at BCCL was at 34.51 MT or 102 per cent of the target, while CCL touched 101 per cent of its targeted production to 55.64 MT. Rest of the subsidiaries failed to meet the target and remained short by 2 to 6 per cent except North Eastern Coalfields, which had less than 1 MT production. The cumulative Coal India production for FY15 was 494.23 MT, a growth of 6.9 per cent over the last year, but 97 per cent of its target of 507 MT. While, on the offtake front, ECL remained at the top with 38.45 MT or 101 per cent of the target or 6.1 per cent growth in FY15, the rest of the subsidiaries fell short by 4 to 8 per cent in their respective offtake targets, the CIL data said. The total offtake target for Coal India was 520 MT, but it could meet 489.34 MT or 94 per cent. The offtake growth in FY15 was 3.8 per cent over 2013-14.
CAIRO, April 15, (RTRS): Egypt has signed preliminary deals with Kuwait’s Alghanim International for two energy-related projects worth a total of $1.6 billion, its prime minister said in a statement on Wednesday. One initiative would see four gas...
The US oil market has firmed up into its best shape this year, as ebbing fears of an inventory overflow and renewed hedging in far-distance futures flattens the forward curve - another possible sign that a months-long rout is really over.
MUMBAI: Shares of ONGC and Oil India extended overnight gains as sentiment turned bullish following media reports that the government has exempted the duo from sharing any subsidy in the fourth quarter of FY15. ONGC shares as much as 3.08 per cent while Oil India was 1.21 per cent in intraday trade on Thursday. Government sources indicate that Finance Minister Arun Jaitley has decided to exempt upstream explorers from any kind of subsidy payout for the fourth quarter of the last fiscal. Deregulation of diesel prices in October last year and crash in global crude prices resulted in fuel subsidy bill for Financial Year 15 nearly being cut by half to around Rs 74,000 crore from Rs 1,40,000 crore last year. With over Rs 67,000 crore already accounted for in the first half, the government is expected to foot the remainder Rs 5300 crore for the fourth quarter, without any burden to ONGC or OIL India. Upstream companies are reeling under the pressure due to 60 per cent reduction in global crude prices which has squeezed their net realisations in just six months. With financials in jeopardy, any relief on the subsidy compensation is something the sector will be pleased to accept. ONGC surged 5.02 per cent in two sessions to touch an intraday high of Rs 327.30. Oil India rallied 6.19 per cent in two sessions to touch intraday high of Rs 508.80.
Oil prices fell in Asia after a five-day rally but losses were tempered by a surprisingly upbeat US supply report, analysts said. US benchmark Wes...
April 16, 2015 11:28 AM
BEIJING - China will ban water-polluting industrial plants such as small paper mills, oil refineries and pesticide producers by the end of 2016, according to the government's water pollution action plan unveiled on Thursday.
A rally in petroleum-linked equities helped lift US stocks Wednesday following mixed earnings and economic data. The Dow Jones Industrial Average ad...
Fewer power cuts are likely in India this summer after a surge in output at Coal India helped generators amass record stocks, a turnaround for Narendra Modi who had to battle a power crisis within months of becoming prime minister last May.
April 16, 2015 9:53 AM
SINGAPORE- Mainboard-listed Ramba Energy said on Thursday that a former joint venture partner, Super Power Enterprises Group (SPE), has begun arbitration proceedings in Singapore against Ramba subsidiary, PT Hexindo Gemilang Jaya, over a project in Lemang, Indonesia.
Wed Apr 15, 2015
KOLKATA: SBI's commitment to fund the Adani Group's coal project in Australia up to $1 billion in loan may be fraying with environmental activists led by Greenpeace International successfully forced many European and the US banks to pull out of the project citing damage to ecologically sensitive area, three people familiar with the development said. But it may not be the end of the road for Adanis as many domestic Australian banks such as ANZ Banking, Westpac Banking and National Australian Bank along with some other Asian banks such as ones from Japan may still be willing to fund the transaction, they said preferring anonymity. The nation's biggest bank, which signed the memorandum with the Adanis ahead of Prime Minister Narendra Modi's visit to Brisbane for the G-20 meet last year, is increasingly wary of getting drawn into it without other lenders also backing it, said a banker who did not want to be identified. State Bank of India did not respond to queries on the issue. "State Bank of India is very exposed at the moment with their existing financial ties to Adani's controversial plans to develop a destructive coal port in the heart of the Great Barrier Reef," said Hozefa Merchant, an activist at Greenpeace India which is being targeted by the government for stalling growth and acting against the interest of the nation. French lenders BNP Paribas, Credit Agricole and Societe Generale recently joined the 11 banks such as Barclays, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley and Royal Bank of Scotland which turned their backs on the project succumbing to pressure from environmental activists. Adanis have not followed up with a concrete plan for the project, due to the opposition from environmentalists fearing damages to the Great Barrier Reef, and also the collapse in coal prices. Some believe that due to the falling coal prices, it may not be viable for Adanis to develop the project and ship the coal to run its power plants in India. Australia's Newcastle prices are down to $56 a tonne — almost 70% lower than the ruling prices some seven years ago. Prices of certain categories of coal in Europe are at a 10-year low. In Australia, prices are down 17% from a year ago. Spot prices, too, have declined following an oversupply situation in thermal coal globally. With demand from China unlikely to be robust many do not see any revival in coal prices.
The government has decided to introduce 1.76 million (17.60 lakh) prepaid gas meters in Dhaka and Chittagong aiming to improve energy
The administrator overseeing a BP Plc fund to compensate people and businesses claiming they were harmed by the 2010 Gulf of Mexico oil spill said on Wednesday more than US$5 billion has been paid out.
U.S. stocks rallied following several strong earnings reports on Wednesday, while European shares hit a 14-year high after the European Central Bank affirmed its loose policy stance.
The idea that oil may crater soon is being challenged as crude futures bounce off 2015 highs and are now up 17 percent this month.
A rally in petroleum-linked equities helped lift US stocks on Wednesday (Apr 15) following mixed earnings and economic data.
US oil prices shot up to a 2015 peak on Wednesday (Apr 15) after a slight dip in US oil production sparked talk that the glutted petroleum market could be turning.
A barrel of oil hit $56 Wednesday, the first time in 2015 that oil has peaked that high. Oil's rally is sending energy stocks soaring.
The chamber has also made a case for dropping the proposal to levy additional one per cent tax on inter-State supply of goods
U.S. stocks rose on Wednesday, fueled by gains in the energy sector and speculation that upcoming first-quarter earnings reports might not be quite as bad as previously thought.
US stocks rose on Wednesday led by gains in the energy sector as crude prices jumped and as earnings from major companies beat lowered expectations. All 10 major S&P 500 sectors posted gains with the energy index up 1.7 per cent. US crude jumped more than 4 per cent after a lower-than-expected build of crude stockpiles in the United States. Intel, which reported results after the bell on Tuesday, was up 4.3 per cent at $32.84 as it forecast flat revenue for the entire year despite some weakness in the first quarter. Delta Air Lines' first-quarter profit topped analysts' expectations as cheap fuel continued to help its bottom line. Its stock rose 3.7 per cent to $44.69. "The positive results from Intel and other companies have allowed the markets to breathe a sigh of relief since the reports haven't been a complete disaster," said Jeff Clark, a trading analyst at Stansberry Research in Baltimore. Concerns had been growing that this earnings season will be weak as lower oil prices hit the energy sector, a strong US dollar weighs on multinationals, and because of extreme weather in the eastern United States. First-quarter profits for S&P 500 companies are seen falling 2.6 per cent, according to Thomson Reuters data. At 11:52 a.m. EDT (1552 GMT) the Dow Jones industrial average rose 56.72 points, or 0.31 per cent, to 18,093.42, the S&P 500 gained 9.31 points, or 0.44 per cent, to 2,105.15 and the Nasdaq Composite added 21.14 points, or 0.42 per cent, to 4,998.42. HCA Holdings' shares were up 2.5 per cent at $79.30 after the hospital operator said it expects first-quarter results above analysts' expectations.
PLATTS, a global energy and commodities information provider, and Shanxi Fenwei Energy Consulting Co, China’s largest coal market information provider, have produced a new metallurgical coal price series
The Investment Tax Credit may well drop from 30% to 10% by the end of 2016, and now is the time for solar companies to prepare for it. The strongest, leanest and best organized will have a change to survive and gain market share.
Prime minister announces preliminary agreements with Alghanim International for two energy-related projects
NEW DELHI: Prime Minister Narendra Modi has asked the Petroleum Ministry to find out ways to reduce petroleum imports and boost domestic output, Union Transport Minister Nitin Gadkari today said. India's petroleum imports bills are to the tune of a staggering Rs 6 lakh crore per annum. One alternative for this is promoting bio-fuels, which has the potential to bolster economic growth and solve complex agricultural problems faced by the country, he said addressing a CII event on 'Biofuels'. It will also help prevent farmer suicides, he added. "The Prime Minister was telling to Petroleum Ministry you find out a way and increase your production for petroleum products and that is how we can stop this imports.... We need to be self-reliant as far as petroleum sector is concerned," Gadkari said. India's petroleum imports bills are to the tune of a massive Rs 6 lakh crore per annum, he said, adding green fuels like ethanol, bio-diesel and bio-gas could change the face of rural India by addressing the agricultural crisis. "In my area there are more than 10,000 suicides by farmers. Making diesel and gas in rural areas can be a good option. This is the need of the country and in true sense this is 'Make in India'," he said. Bio-fuel like ethanol from sugar can "really be a great ray of hope for poor people" he said, cautioning the industry at the same time that there was no use of convincing the Petroleum Ministry in this connection. "My previous experience about this Petroleum Ministry, majority of them are against this bio-fuel, I dont know why? My suggestion is don't waste your time in convincing these people," he said. Referring to Cabinet decision to allow direct sale of bio-diesel by manufactures, Gadkari said when the note was floated by the Petroleum Ministry there was a suggestion to allow this sale to bulk consumers only. On his intervention, he said "the Prime Minister had to say if (Gadkari) is asking you (Petroleum Minister) what is your problem. If anybody is using the biodiesel what is your problem." Later the Cabinet took a decision to give this biodiesel to anybody who wants to use it as far as standards and norms are there, he said, adding "for last two months still we are getting the order."
The move was aimed at bringing greater transparency in the process of giving coal to the units on linkage model
KOLKATA: India may be targeting 100 gigawatt of solar power generation capacity by 2022, but funding in the sector remains abysmally low compared to that in the other countries. The quarter to March saw just about 1% of the total global funding for the sector coming to India, said Raj Prabhu, CEO of Mercom Capital Group, a solar sector analyst firm. Prabhu said that while 29 deals worth $2.6 billion were sealed across the world, India saw just one venture capital funding of $2 million and two project funding deals totalling $150 million. Tobias Engelmeier, founder and director of Bridge To India, a strategic environmental consulting company, said, "Although growth in the sector is picking up significantly, this growth is not driven by sustainable policies but by one-off measures, and that it is not enough to get near to the very ambitious target." Engelmeier said that policies are not sustainable because they do not yet provide a credible, overall framework. "Solar parks to deal with land and power evacuation bottlenecks are delayed. There is no 'big bang' financing solution to bring down the cost of debt and thus of solar. Power tariffs are rising, but there is still no underlying reform to stabilise the sector," he said. He added, "Our suggestion, today, is to refocus. Let's forget the target, which will require an annual industry growth rate of more than 90%, and focus on the real driver behind solar in India: the country's enormous power demand and the dearth of supply options. Let's focus on India's fundamental needs."
Walter Energy has opted to skip today's interest payment due to holders of both 9.5% first-lien notes due 2019 and 8.5% unsecured notes due 2020 as widely anticipated amid ongoing reorganization discussions. Management said it's not a liquidity issue, what with $435 million of cash on hand, according to a company statement, as compared to the $46.1 million and $19.1 million due to bondholders, respectively.
Hyderabad-based telecom and solar energy company Surana Telecom and Power Limited today acquired majority stake of 51 per cent in Arhyama Energy Private Limited, which is implementing a 10 mw solar power project in the neighbouring Nalgonda district ...
The total corporate funding in the solar sector is estimated at $6.4 billion during the first quarter this fiscal and a record $1.9 billion was raised by residential and commercial solar funds, ac...
State-owned Coal India (CIL) --- which was forced to keep a provision for imports in fuel supply agreements (FSAs) with power producers following a directive from Prime Minister's Office (PMO) in 2012 --- imported even less than half a million tonne ...
OPEC has chalked up its biggest monthly increase in production in nearly four years as the cartel fights to maintain market share despite the price slump.
The International Energy Agency cut its supply forecast for non-OPEC countries, citing downturns in North America and the “worsening conflict'' in Ye...
World oil markets may take longer to tighten than expected due to a surge in OPEC supply and a potential rise in Iranian exports, even as demand shows signs of strength, the International Energy Agency said on Wednesday.
The company which announced a "significant" oil find near Gatwick airport last week now says its tests were not "sufficient to comment" on the potential size of the whole field.
Demand for oil will be higher this year than previously thought, according to new forecasts from the International Energy Agency (IEA), released Wednesday.
Crude oil futures rose by 0.49 per cent to Rs 3,358 per barrel today as speculators created fresh positions amid a firming trend in Asian markets.
MUMBAI: Shares of Gujarat Gas Company (GGCL) surged over 15 per cent in early trade as it got an authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate, or expand city or local natural gas distribution network (CGD) for the geographical area of Thane, Maharashtra. "GGCL has been granted 300 months of infrastructure exclusivity i.e. valid up to April 01, 2040 and 60 months of marketing exclusivity valid up to April 01, 2020 for the CGD network," the company said in a filing to stock exchanges. "Further, the Authorised area for laying, building, operating or expanding the proposed CGD Network shall cover a geographical area of 8,683 sq. km." According to an analyst tracking the sector, the company will supply gas to nearly 10 lakh households with an approximate investment of Rs 1,207 crore. The gas will be used for small and medium industrial units as well. At10:00 a.m.; the stock was at Rs 758.45, up 13.70 per cent, on the BSE. It rallied 14.96 per cent to touch intraday high of Rs 766.90 in early trade.
The stock rallied 14% to Rs 761 on the National Stock Exchange in early morning trade.
Oil prices climbed in Asia for a fifth-straight trading day today following forecasts that US shale production could decline and help ease a global supply glut, analysts said.
April 15, 2015 8:25 AM
NEW YORK (Bloomberg) - The US government said for the first time that the nation will become a net energy exporter within 15 years as the shale boom bolsters crude oil production.
Tue Apr 14, 2015
Energy companies have announced plans to lay off more than 100,000 workers around the world since crude-oil prices began to tumble last year.
April 15, 2015 4:51 AM
NEW YORK (REUTERS) - The Dow and S&P 500 ended higher on Tuesday, helped by energy stocks and March-quarter earnings reports that topped modest expectations following worries about a strong dollar.
Global oil prices rose for the fourth straight day on Tuesday, with US prices jumping after a government report predicted a drop in US shale-oil production.
The U.S. could soon export more energy than it imports, significantly changing the country’s appetite for foreign fuels starting as early as 2020, according to a new report from the Energy Information Administration.
Deutsche Bank AG, Goldman Sachs Group Inc and IHS Inc have projected that US oil production growth will end, at least temporarily, with futures near a six-year low
With crude oil prices falling from $106 a barrel in March 2014 to below $60, 2014-15 could have been a dream year for oil companies in India, which, buried under a subsidy dole, are unable to perform well. But while upstream companies have reached a ...
India expected to consume 167 mt of refined fuels in 2015-16, against an estimated 162 mt in 2014-15
From February to mid-March, oil prices receded rapidly. WTI dropped by 22 per cent in six weeks. Brent crude was down about 15 per cent. Then, in the past four weeks, the oil inched back up to the price levels at the start of February.Late January, ...
E-commerce platform MSTC to be used for auctions to ensure greater transparency
The Dow and S&P 500 moved higher on Tuesday, helped by energy stocks and March-quarter earnings reports that topped modest expectations but did little to reduce concerns about the strong dollar.
Several companies - hit by weak oil prices and slowing demand - are streamlining their core operations, while others may just subsist on long-term contracts.
Iran's oil minister said OPEC should cut daily production as lower oil prices have caused pain for OPEC's less wealthy producers.
The Organization of Petroleum Exporting Countries should cut its target daily production of oil by at least 5 percent, or approximately 1.5 million barrels, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Tuesday.
The state government has made a plea to the Union ministry of power to allocate sufficient funds from the NCEF to help execute renewable energy projects in the state
Texas energy giant Energy Future Holdings has filed the restructuring plan that outlines how it hopes to reshape a $42 billion debt load and exit bankruptcy.
Investors in oil and gas producers and explorers are seeing a reversal of fortune this year after severely lagging the stock market in 2014. Considering North American shale producers need oil to trade at an average of $62 a barrel to break even, producers scale back production when prices fall too low thereby reducing supply, which pushes prices back up. U.S. shale output is projected to fall between April and May, marking the first monthly decline in four years.
OSLO: Crude oil prices could rise quickly in the second half of the year and may reach $70 per barrel by the end of 2015 as US shale production tapers and seasonal variations increase demand, a top analyst at ratings agency Fitch said on Tuesday. However, Alex Griffiths, the head of oil and gas research at Fitch, said it might take several years for oil to reach $80 -- the price level where supply and demand is seen as balanced based on current production costs. "We see US shale oil as reacting most quickly to balancing the supply with demand," Griffiths told Reuters on the sidelines of a conference in Oslo. "You essentially need shale to slow down, not drop, because demand for oil, like all commodities, is growing. Production got slightly ahead of where it needs to be, so it's not a huge correction you need." Brent crude was trading at some $58 a barrel on Tuesday, off lows registered earlier in the year, but still down by around a half from last June, making many new oil developments unprofitable and forcing producers, particularly in the US shale market, to slash capital spending. "Whichever way the price goes, there will certainly be multiple bounces and overshoots in both directions," Griffiths said. "We think fundamentals justify $80, because that's the marginal cost, but markets can move away from the marginal costs for a period. "We're talking about relatively rapid recovery later this year as shale production flattens out. There's also a traditional seasonal demand pick up of about 1.5 million barrels per day from Q2 to Q3," Griffiths said. The US Energy Information Administration said on Monday that it expected US shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in May -- the first such monthly decline in more than four years. Oil prices have fallen sharply as both OPEC and US production has exceeded forecasts while consumption has failed to meet projections, particularly due to slower Chinese growth.
Crude oil prices could rise quickly in the second half of the year and may reach US$70 per barrel by the end of 2015 as U.S. shale production tapers and seasonal variations increase demand, a top analyst at ratings agency Fitch said on Tuesday.
Coal imports into India, the world's third largest buyer, jumped 33.5 per cent in the last fiscal year to 242.4 million tonnes as lower purchases by China depressed prices and helped consumers els...
The current low prices of crude oil and natural gas are unlikely to have a widespread impact on the credit quality of global project finance debt over the next year to 18 months, a report has said...
Industry body Assocham has urged the Finance Minister Arun Jaitley to bring commercial real estate and petroleum within the purview of Goods and services tax (GST) levy. The chamber has...
NEW DELHI: State-owned Coal India will import about 2 million tonnes of coal, to be supplied to power producers, in the current fiscal. "Coal India (CIL) will import 1.6 million tonnes of coal for power producers in financial year 2015-16," a source said. CIL had earlier engaged MMTC through a competitive bidding for arranging such imported coal. In the just-ended fiscal, CIL imported 0.48 million tonnes of coal for power plants, the source said. Earlier this month, state-run MMTC had said that it has received orders for import of steam coal from CIL and Andhra Pradesh Power Development Company Ltd. MMTC got the order to supply about 2.35 million tonnes of imported steam coal during 2015-16. CIL had earlier asked power firms to contact its supplying companies in case they need to import coal through them for FY16. "In order to make necessary arrangements for supply of imported coal, interested and eligible power utilities are requested to approach the supplying coal companies immediately with whom they have signed for further course of action," Coal India (CIL) had said in a notice. The PSU further said that it offers to supply imported coal for the year 2015-16, under the provisions of fuel supply agreement (FSA) entered with the power utilities "in the post 2009 FSA model". In terms of the Presidential Directives issued in 2012 and 2013, CIL board had earlier decided that under fuel supply pacts for new power plants commissioned after 2009, out of the minimum assured quantity (80 per cent of Annual Contracted quantity), 15 per cent shall be supplied from imported coal. It was decided that such imported coal supply was to be made through a PSU importing agency under a back-to-back supply agreement with power plants opting to take imported supply from CIL.
Grid connected rooftop solar power offers a major business opportunity, said Tarun Kapoor, Joint Secretary, Ministry of New and Renewable Energy, on Tuesday. “Grid connected ro...
Government plans to auction 69 small and marginal oil fields of state-owned ONGC and Oil India Ltd to private firms on a new revenue sharing model.
A former senior executive at China’s largest oil producer has denied most of the corruption charges at his trial, state-run media reported, a rare example of defiance in a country where almost all criminal defendants are convicted.
CAIRO, April 14 - Egypt will import around $3.55 billion worth of liquefied natural gas (LNG) in the 2015-2016 financial year, an official at state-owned Egyptian General Petroleum Corporation (EGPC) said on Tuesday. Egypt moved closer to easing its chronic...
The merger of Gujarat Gas with GSPC Gas will be effective in a few months and will create India's largest city gas distribution company
Eugen Weinberg, head of commodity research at Commerzbank, says that for the U.S. and Europe, the effects of a falling oil price should be positive on the economic side.
Centrica says Mark Hodges will be the new managing director of British Gas, ending an 11-month search for a new leader.
Not undermining Dale Steyn's ability with the ball, SunRisers Hyderabad captain David Warner said that he wishes to continue with New Zealand speedster Trent Boult in the playing XI before he turns to the South African pacer's services in IPL-8
NEW DELHI: The Modi government seems to have hardened its stance on the issue of arbitration with Reliance Industries (RIL) on the gas-pricing issue, arguing that allocation and pricing of a natural resource which a government holds as a trustee of the people cannot be the subject matter of an internal arbitration. In an affidavit submitted to the Supreme Court, the Ministry of Petroleum & Natural Gas has instead asked the court to throw out RIL's petition to appoint a third arbitrator of independent nationality to decide on the pricing of natural gas. The affidavit, the first by the Modi government, seems to reflect a hardening of stance as this is first occasion that the government has said the dispute cannot be resolved by arbitration. Earlier, RIL appointed Sir David Steel as its nominee on the arbitration panel, while the government appointed GS Singhvi, former Supreme Court judge, as its representative. The company subsequently asked the apex court to appoint the third arbitrator. The government affidavit accused RIL of deliberately suppressing facts and correspondence on the matter and urged the court to dismiss the demand for a third arbitrator of neutral nationality. In its affidavit, the government has also said that if the matter was to be decided by arbitration then it has to be under Indian laws and the third arbitrator has to be an Indian citizen, a demand that RIL has staunchly resisted, through its reply filed through Parekh & Co. Senior advocate Harish N Salve is representing RIL in court. RIL had demanded that the prices be increased from $ 4.2 mmbtu to $8.4 mmbtu during the UPA regime as per a formula fixed by a committee headed by C Rangarajan, economic advisor to the prime minister. The price $8.4 per MMBTU was notified on January 14, 2014 and was to be applicable from April 1, 2014. This was later deferred in view of the elections in May. However, after the new government came in, fresh guidelines came into effect from November 1, 2014. Under these guidelines the price was increased to $ 5.61 mmbtu. The government said the October 2014 guidelines would apply prospectively and uniformly to all sectors of the economy and allocation would also be as per the revised gas utilisation policy.
Oil investors who amassed a US$6 billion long position in exchange traded funds, occupying as much as a third of the U.S. futures market, are now racing for the exit at a near record pace.
Oil investors who amassed a US$6 billion long position in exchange traded funds, occupying as much as a third of the U.S. futures market, are now racing for the exit at a near record pace.
Crude prices rose further in Asia today on forecasts US shale oil production will decline and hopes the Chinese government will roll out a stimulus package for the slowing economy.
The federal government devised a scenario involving a train explosion to prepare local officials in New Jersey for the worst.
Crude prices rose on Tuesday after the US Energy Information Administration said it expected US shale oil output to record its first monthly decline in over four years.
NEW DELHI: India will double its investment in the Mozambique's Rovuma gas field by spending another $6 billion by 2019, said oil minister Dharmendra Pradhan who has just returned from a visit to the African nation. State-run firms ONGC Videsh, Oil India and Bharat Petroleum have already invested that much in the field and hold a combined 30% interest in the Rovuma Area-1, which is estimated to have recoverable gas reserves of up to 75 trillion cubic feet. "Mozambique is an important destination for India's energy security," Pradhan said, adding that the two countries are working on enhancing cooperation. The Rovuma field will have its first output on the market by 2019. India may or may not import liquefied natural gas (LNG) from Rovuma fields and the decision to import will depend on the market situation, including the price available to gas produced in Mozambique, Pradhan said. Indian firms are discussing the prospects of imports from Rovuma at present, he said. The early monetisation of Rovuma offshore is a priority but "we must also respect the sovereign laws of Mozambique", Pradhan said. India desperately needs gas to power its electricity generation, which has been far below the country's requirement. The government recently announced a policy to offer subsidised imported gas to about 24,000 MW of gasfired plants lying idle or underutilised. India's gas production has fallen far short of expectation in the past few years, making unviable many gas-based power plants that were built on the hopes of securing cheap local gas.
MUMBAI: Essar Energy will start exploratory drilling at its blocks in Mumbai High field and Vietnam in September-October, hoping to discover reserves to increase its crude oil production. Even as energy companies across the world are reducing capital expenditure as crude oil prices have crashed 50 per cent since June, Essar plans to go ahead with its exploratory drilling. Simultaneously, the company is executing a plan to ramp up its coal bed methane output from 0.5 million standard cubic metres per day (mmscmd) now to 3 mmscmd by 2016-17, said Manish Maheshwari, chief executive officer - exploration and production at Essar Energy's oil and gas arm Essar Oil. "We would be drilling a couple of exploration rigs in Mumbai offshore and Vietnam in the fair weather window later this year. Depending on the results of the initial drilling, we will decide how many wells we want to drill," Maheshwari told ET. Currently, the company produces a very small quantity of crude from its Mehsana oil and gas block. An increase in crude production could help the company improve its margin at its Vadinar refinery which has a capacity of 20 million tonne per annum. Essar Energy holds 30 per cent stake in one shallow water offshore exploration block MBOSN-2005/3 near the Mumbai High field in the Mumbai offshore basin, while the rest is owned by ONGC. In Vietnam, the company acquired 100 per cent stake in Block-114 in 2007 with a production sharing contract with the Vietnam government. Essar now holds 50 per cent in the Vietnam block after it sold an equal stake to ENI International BV. The company has concluded mapping the prospect based on 3D seismic data for the two blocks and hopes to start drilling. Maheshwari said that the company hopes to drill the wells at a significantly lower cost as service providers are cutting costs by up to 30 per cent to get jobs. Project costs in the E&P space has been on the decline as service providers and engineering companies are preparing to cut prices to grab a share of shrinking orders. "The E&P sector has not seen any activity in India since 2010. We have assets at different stages and have prioritised certain assets. Now the focus is to ramp up production and convert these assets into mature producing properties," Maheshwari explained. Billionaire brothers Shashi and Ravi Ruia-promoted Essar Energy sees its next big growth in the E&P business to come from coal bed methane gas production, where it has already become the country's largest producer after its Raniganj asset in West Bengal crossed 0.5 mmscmd output. "We have a portfolio of onshore and offshore oil and gas blocks with 1.7 billion barrels of reserves. Our focus is to convert these reserves to production," Maheshwari said. The company is also keen to explore shale gas opportunity in India and awaits the government's policy on it.
Mon Apr 13, 2015
The seventh Private Sector Development Policy Coordination Committee (PSDPCC) meeting discussed the need for reforms in tea sector, seed, cold storages
The government has now made a concrete move to install a 91-kilometre pipeline to carry re-gasified imported liquefied natural gas (LNG)
NEW DELHI: Big wind energy companies in India such as Gamesa, Mytrah and Suzlon are all diversifying into solar space this year with plans to invest several hundred million dollars in the next five years in installing thousands of solar megawatts, given the government's impetus to the sector. While London's Alternative Investment Market (AIM)-listed Mytrah Energy (India) Ltd, which is an independent power producer, plans to invest a total of $400 million, of which $100 million would be in equity over the next one year solely in setting up its solar business, Gamesa India will invest euros 200 million over the next two years for its overall operations, as it diversifies into solar space this year. "We don't want to depend on only one kind of fuel. Last year, the prices in solar were high and we didn't want to do subsidy-driven business as it is not sustainable. We're waiting for tenders related to National Solar Mission now and hope to be in the 1,500-2,000 MW range over the next 5-7 years," Vikram Kailas, MD at Mytrah Energy, told ET. The company intends to install nearly 100 MW of solar energy projects over the next one year, he added. Similarly, the Indian subsidiary of Spanish wind turbine maker Gamesa, which has the largest wind energy market-share in the country, is also diversifying into solar power this year with plans to install 100 MW going up to 500 MW in the next two years. "I have a target of 100 MW of solar EPC, rooftop installation and village electrification this year but we might exceed this as we're talking to both domestic and foreign developers who are talking to us for large solar power plants and we're giving them turnkey solutions. We'll also venture into off grid with net metering," said Gamesa India CMD Ramesh Kymal. Solar energy, said Kymal, is the way forward for India in the long term as the country has more sunshine than wind. Wind turbine maker Suzlon, meanwhile, plans a hybrid model of wind and solar energy, whereby solar plants will be set up on the same land as wind turbines. This is intended to save the company from land issues and overcome power evacuation hurdles as grid is available near wind farms. Its target is to install 500 mw over the next years.
Energy stocks are up huge in April. Are more gains ahead? Erin Gibbs of S&P Capital IQ and Todd Gordon of TradingAnalysis.com discuss with Brian Sullivan.
CNBC's Jackie DeAngelis discusses the day's activity in the commodities markets. Oil bounced around a bit today before settling slightly higher.
The weakness in oil presents an opportunity for those looking to invest in MLPs, according to portfolio manager Quinn Kiley.
Citigroup analysts say inflows into crude-linked ETFs have created "significant froth" in the oil market.
(EnergyAsia, Monday April 14 2015, Tuesday) — Gazprom Neft, the oil subsidiary of Russia’s leading gas producer Gazprom, said it plans to invest in Vietnam’s upstream sector as well as acquire a 49% stake in the country’s only oil refinery at Dung Quat. Gazprom Neft said its venture into the Southeast Asian country will be […]
The post VIETNAM: Russia’s Gazprom unit to invest in upstream activities, buy 49% stake in troubled refinery appeared first on EnergyAsia.
April 14, 2015 1:08 PM
BEIJING (AFP) - A former senior executive of China's largest oil producer denied most corruption charges at his trial, state-run media reported on Tuesday, a rare example of defiance in a country where almost all criminal defendants are convicted.
Oil advanced a third day as skepticism among US lawmakers over a nuclear deal with Iran undermined prospects that the Organization of Petroleum Exporting Countries (Opec) producer will bolster crude exports.Futures rose as much as 2.8 per cent in ...
CHINA’S coal output fell 3.5 percent year on year to 850 million tons in the first quarter of this year, the China National Coal Association said yesterday. The sales volume of coal shrank 4.7 percent
The current wave of corporate takeovers and mergers is set to grow, with the appetite for deals among executives hitting a five-year high thanks to a strong US dollar and low oil prices, a global survey
This refers to the report "Coal auction: Power firms staring at losses, demand crisis" (April 12). The fundamental problem with the energy sector is the buying power of the ultimate customer. This shows up finally in the mountain of losses and debts ...
From the beginning of March, weather was been unfavorable for agriculture because of untimely rain across the state
OPEC has criticized unidentified non-member countries for their refusal to cooperate with the oil exporter group in propping up prices and repeated its call for them to do so.
NEW DELHI: Coal India today said the critical Jharsuguda-Barpali railway link project in Odisha to facilitate faster transportation of coal is likely to be completed by 2017. However, coal connectivity line in Tori-Shivpur-Kathautia Area in North Karanpura, Jharkhand will take time, Coal India Director Technical N Kumar told reporters here. "The soonest which we can expect is Odisha one (Jharsuguda-Barpali railway line in IB Valley, Odisha). In 2017 we expect the line to be completed," he said, adding that "I think Tori-Shivpur (rail line) will definitely take time due to problems like land acquisition in Jharkhand." He further said that the country's coal import till January in 2014-15 was 172 million tonnes. Coal Secretary Anil Swarup had earlier said that the 53-km-long Jharsuguda-Barpali railway link was significant as it would connect most of the coal mines in Odisha. The Jharsuguda-Barpali Rail link project is a part of the three inter-state rail corridor projects proposed by CIL, which are dedicated to coal evacuation in areas of Odisha, Chhattisgarh and Jharkhand. The Rs 4.7 billion Jharsuguda-Barpali railway link project was announced in January 2006 by the CIL to link its Ib Valley coal fields in Odisha. The government had earlier said it will expedite the construction of three critical rail, including Bhupdeopur-Raigarh-Mand Area in Chhattisgarh-- to facilitate faster transportation of coal to power plants, thereby helping in bringing nearly 100 million tonnes of incremental traffic to Railways.
After the Central Bureau of Investigation (CBI), Supreme Court the illegal allocation of coal blocks has caught the attention of another investigative agency and that is the Enforcement Directorate.Top level sources in the agency and finance ...
Two earthquakes rattled Los Angeles within four hours, including one near the Baldwin Hills oil fields.
The cabinet of top oil exporter Saudi Arabia reiterated on Monday that the kingdom would not act alone in restoring the stability of the oil market and improving prices, state news agency SPA said after a weekly cabinet meeting.
The drop in big oil companies' profits in the past eight months isn't just a function of lower crude prices – it also reflects strategic choices.
Want to increase the use of green energy and reduce the level of harmful emissions? Invest heavily in the grid to both modernize and expand it, which will accomplish such aims while also building the US economy.
Helima Croft, RBC Capital Markets, shares perspective on the oil markets if a deal between the U.S. and Iran is reached and sanctions are removed.
Senior Omani official says Total has dropped out of project after failing to make commercially attractive discoveries
A top official who led China's biggest petroleum company and later was assigned to oversee state-owned companies admitted in court that he was guilty ...
Indian public sector oil exploration and marketing companies such as ONGC, Oil India Limited and BPCL etc would invest additional $6 billion in Mozambique to strengthen federal ties in the natural gas sector, said minister of petroleum and natural ...
A team of scientists in Australia say they have developed a technique that could revolutionise solar power production. It is thought that the sun could provide enough electricity for a quarter of Australia's needs.
NEW DELHI: State-run ONGC, OIL and BPCL will in the next four years invest $6 billion in developing a giant gas field off the Mozambique coast and converting the fuel into LNG for export to nations like India, Oil Minister Dharmendra Pradhan said today. ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC), Oil India Ltd and a unit of Bharat Petroleum Corp Ltd (BPCL) together hold 30 per cent interest in Rovuma Area-1, which is estimated to hold recoverable gas reserves of up to 75 trillion cubic feet. "We have invested more than $6 billion so far (in the Mozambique field) and another $6 billion will be invested by 2019 to develop Rovuma Area-1 field," he said here. An estimated $18.4 billion will be required to bring first set of discoveries in Rovuma Area-1 on to production and convert that gas into liquid (liquefied natural gas or LNG) for ease of shipping to consuming nations like India. OVL's share would be $2.944 billion. Pradhan, who returned from a two-day visit to the African nation last night, said the first LNG from the block is targeted for 2018-end or early 2019. The project with capacity to produce 20 million tonnes of LNG annually would be the world's largest LNG export site after ExxonMobil-run Ras Laffan in Qatar. OVL had in 2013 bought Videocon's 10 per cent stake in the Rovuma Area-1 for $2.475 billion. It followed this up by acquiring another 10 per cent stake in the same field from Anadarko Petroleum Corp of the US for $2.64 billion. The 10 per cent stake of Videocon was split in 60:40 ratio with OIL. "I had a very successful tour to Mozambique... we are getting full cooperation from the Mozambique government for early development and monetisation of Rouvma Area 1," he said. Pradhan said the block consortium is talking to Indian buyers like state gas utility GAIL for selling LNG. "If it fetches more money (to us) by selling the LNG then and there itself, we will opt for that. But if it is beneficial to bring the gas to India, we will certainly look at that option," he said. Rovuma Area-1 Offshore Mozambique Block (Block Area 1) is located along the coasts of northern Mozambique and southern Tanzania in the Indian Ocean. It has a total area of more than 10,000 square kilometres in water depths ranging 900 metres to 1,600 metres and about 30-60 kms from shore. Woodlands, Texas-based energy-exploration company Anadarko is the operator of the block with 26.5 per cent stake while a unit of BPCL has 10 per cent interest. Other partners in Area 1 include Mitsui with 20 per cent stake, ENH (15 per cent) and PTTEP (8.5 per cent). So far, seven gas fields have been discovered in the block. Of these, three fields - Lagosta, Windjammer and Barquentine (collectively called the Prosperidade field) - extend into the adjacent Block Area-4 where Italy's ENI with a 70 per stake is the operator. The others - Atum, Golfinho and a small field Tubarao, are independent fields lying fully in Block Area-1. Sources said the consortium is looking at developing the independent fields first. Pradhan said, during his visit to Mozambique on April 9 and 10, he met Prime Minister Agostino Rosario and Foreign Minister Baloi. He also had a meeting with his counterpart, Minister of Mineral Resources & Energy Pedro Couto. "Rovuma Area-1 is the largest investment of India in any single hydrocarbon asset abroad," he said. During the meetings, the two sides discussed all issues related to the existing investment as well as ways to expand the relationship in other areas of oil and gas. "It was agreed that there is scope for expanding cooperation in several areas of mutual interest," he said.
Government's think tank NITI Aayog today said it will soon come out with an integrated policy to help meet massive demand for energy including solar, wind, gas and coal. "(We) will have a national energy policy. We are in discussions with our ...
Indian companies are expected to invest a further $6 billion in Mozambique’s oil and gas exploration sector, the Minister of State (Independent Charge) for Petroleum and Natural Gas, Dharmendra Pr...
DUBAI, April 12, (RTRS): Iran is looking to export natural gas to Kuwait, National Iranian Gas Company chief Hamidreza Araghi said on Sunday, as he confirmed plans to begin exports to neighbouring Iraq next month. “There is capacity to export gas...
NEW DELHI: A new power equation appears to be emerging between the Centre and states. The power ministry is willing to allow states, which approach central generation utilities for projects in their territory, to retain 85 per cent of electricity from such units. The new approach is expected to galvanize state governments into walking the extra mile for the projects. Higher share of power is expected to make state governments cooperate and expedite land acquisition, environmental and forest clearances, water allocation, relief and rehabilitation of displaced persons as well as support in maintaining law and order situation at the project site. All these issues have emerged as roadblocks for big projects. The fresh approach has the potential to immediately benefit West Bengal, Bihar, Andhra Pradesh and Telangana. All of them have separately approached NTPC, NHPC and SJVN (Satluj Jal Vidyut Nigam Ltd, a joint venture between the Centre and the Himachal government) for setting up large power plants and demanded 85 per cent to 100 per cent power from these projects for themselves. "The ministry has no problem to allow states to consume 85 per cent of power from projects set up by the central utilities at their behest. But 15 per cent of the power would have to remain under the Centre's control as unallocated quota for meeting sudden demand or shortfall in any region or state," a top power ministry functionary told TOI. Sources said the ministry was not in favour of making any changes in the Gadgil formula, an arrangement for allocation of central resources among states. States that are planning projects with central utilities can approach the ministry on a case-by-case basis. Under the present power-sharing formula, host states where central generation projects are located are entitled to 10 per cent of generation. The Centre keeps 15 per cent for itself, while 75 per cent is distributed among states in the region as per their consumption and central plan assistance in the preceding five years. This formula was drawn up years ago when central generation projects used to be set up with budgetary support. This has changed over the years. The central utilities now operate as commercial entities and most of the projects are set up with a debt-equity ratio of 70:30 and do not enjoy any budgetary support. Bihar would benefit from three projects of 1,320MW each — at Lakhisarai, Pirpainti and Buxar — under the new formula. Bengal would benefit from the 1,320MW project at Katwa in Burdwan district. Andhra would benefit from the 4,000MW Pudimadaka project and Telangana from Ramagundam Stage IV of 1,600MW and another phase of 2,400 mw. Telangana would have the additional benefit under the AP Reorganization Act of 2014, entitling it to 100 per cent power from these projects.
Another tranche of share sale in state-run miner Coal India Ltd, the largest coal producer in the world, is "not ruled out", a finance ministry official told CNBC-TV18 television channel on Monday.
Oil prices rose in Asia today, extending last week's gains but the persistent global supply glut will likely cap advances, analysts said. US benchmark West Texas Intermediate added 31 cents to USD 51.95 while Brent was up 24 cents at USD 58.11 in ...
The same holding company should not be allowed to own natural gas and electric power utilities that serve the same geographic territories.
By Sanjeev Choudhary NEW DELHI: ONGC Videsh Ltd, the overseas arm of state-run explorer Oil & Natural Gas Corporation, is aiming to shed its tag of 'junior partner' and be counted as an oil 'major' by acquiring larger stakes in new assets, operating tougher deepwater projects and consolidating its presence in fewer regions. "Now we are in a position to leapfrog," Narendra Kumar Verma, managing director, told ET in an interview. In the seven months since taking the key position at OVL, Verma has contemplated a strategic shift for the company. In the two decades of its active life, OVL has acquired interests in about 35 oil and gas assets across 16 countries — from the Far-East to the Middle-East and the Americas — aided by profitable parent ONGC's large balance sheet and the government's diplomatic efforts. "We can aspire to grow as an exploration and production major in 10 years. The tag of junior partner has to be shed," he said. What irks Verma is the company's minority stake in most producing fields, which, while securing some energy supplies, leaves it on the sidelines. He plans to secure large stakes in new acquisitions as well as buy out partners and swap stakes with them to fortify OVL's presence. The company is in talks to exchange stakes in Vietnamese assets. The strategy is to 'optimise' the portfolio and even out holdings of exploratory and producing assets. "Churning the portfolio would be an important balancing act. It should create value," Verma said. OVL is also working on enhancing its capabilities and aims to operate at least one deepwater field and one shallow-water project by itself in the near future, which Verma believes will set it on course to be recognised as an 'oil major.' Another strategic shift that Verma wants to steer is consolidation in Africa, North and South America, which offer a lot of opportunities, unlike Russia, North Sea or South-East Asia, where the firm has already invested enough or the market is quite mature. "We won't spread ourselves too thin," Verma said. In Africa, some of its fields have suffered production shutdowns due to unrest.
Sun Apr 12, 2015
Retail investors banking on a reversal in oil's rout are providing support that helped oil prices stabilize, says Ivan Szpakowski, commodities strategist at Citi.
KOLKATA: The Central Mine Planning & Design Institute, a subsidiary of Coal India, said it achieved record exploration during 2014-15 and added 3.6 billion tonnes of resources to proven reserves. CMPDI also established 3.1 billion tonnes of additional coal resources to the indicated and inferred categories. The company plans to prepare 26 new project reports that will assess the economic viability of new mines and drill a total of 15 lakh metres in this financial year. "The subsidiary has achieved an alltime high drilling of 8.28 lakh metres during 2014-15 against 6.97 lakh metres achieved in the previous year through departmental resources and outsourcing, thus registering a 19% growth," CMPDI chairman AK Debnath told ET. The exploration unit based in Ranchi drilled over 3.56 lakh metres with its own resources, the highest in a year so far and a 10% increase from the previous year. It achieved this by using new technology, highercapacity drills, improved productivity methods and two additional drills. The company prepared 30 project reports envisaging capacity addition of about 116 million tonnes of coal a year. A draft project report for the Gevra opencast mine expansion with additional capacity of 70 million tonnes per year has also been prepared. "Gevra, when executed, will be the largest producing mine in India," Debnath said. CMPDI completed a highresolution seismic survey of coal blocks in Pundi East block, West Bokaro coalfield, Dabor, Central Salanpur A, Central Salanpur phase-II, Sangramgarh East, Sadhna East, Sadhna South East, Mohanpur East and Mohanpur South East blocks of Raniganj Coalfield to help interpret their geological structures.
California regulators have tried to deter safety violations at its largest utility with fines and monetary penalties. but it seems not to have responded to conventional forms of market discipline. Now they are going to consider more fundamental institutional and regulatory changes.
World oil markets will not see a significant rise in Iranian supplies for up to five years even if the OPEC member and world powers clinch a final nuclear deal by end-June, Fatih Birol chief economist and future head of International Energy Agency (IEA) said.
World oil markets will not see a significant rise in Iranian supplies for up to five years even if the OPEC member and world powers clinch a final nuclear deal by end-June, Fatih Birol chief economist and future head of International Energy Agency (IEA) said.
While looking at these stocks, you should bear in mind cyclical nature of fuel supply-demand matrix
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There is not even a single positive sign indicating the possible improvement of the oil prices in the near future. The rate of $55-60 is to remain for a long time. Oil production is still at its peak and even a little higher after Saudi Arabia made ...
Unfazed by the loss against Royal Challengers Bangalore, Kolkata Knight Riders all-rounder Yusuf Pathan said his team did everything right till a Chris Gayle storm took the IPL match away from it here. The defending champions got regular ...
Sat Apr 11, 2015
April 12, 2015 6:59 PM
BEIJING (REUTERS) - Hundreds of people in China's southern Guangdong province protested against the expansion of a coal-fired power plant on Sunday, state media reported, the latest sign of public discontent over pollution.
The Obama administration is expected to propose in the coming days an offshore oil and natural gas drilling regulation to prevent the kind of blast that five years ago caused the biggest offshore oil spill in U.S. history.
In a chat with ET Now, Vikram Mansharamani, Lecturer, Yale University, shares his macroeconomic outlook and talks about the market. Excerpts: ET Now: What your call on Indian equities in general is? How convinced are you of the India story in 2015? Vikram Mansharamani: I have been paying attention to the most markets around the world for many years and the quick comment I would make regarding the Indian equities specifically is that they are not exactly cheap. They are sort of fully priced. Having said that, they offer one of the most promising outlooks for an economy elsewhere in the world. There are not many countries that will have the growth rates that India will likely produce this year. In fact, many are now suggesting that India may be the fastest-growing large economy in the world. So, paying a full price for good growth in today's environment is a worthwhile bet to make. ET Now: Over the last two days rating agencies also seem to be improving their stance on India. We just had Moody's upgrade the outlook for India while Fitch hiked their estimate for GDP. What is your view on this? Vikram Mansharamani: We need to think about the macroeconomic conditions facing India, before we can reflect on what the ratings agencies are saying. Here in India, the data is very promising, driven by a fall in inflation. Now, we have to pay attention to what is happening in India with the current agricultural season and the potential for food inflation. That said, for now, inflation seems to be contained and seems to be falling. India has been one of the real beneficiaries of lower oil prices and that has taken away some of the fuel price pressures that would have pushed inflation higher. This has provided an environment, in which the Reserve bank of India (RBI) has been able to reduce rates twice this year. Hence, given the dynamics, it is not surprising that rating agencies would say that the outlook for India is improving. ET Now: What did you make of the RBI governor's commentary and how do you assess his stance now? Do you see rate cuts in India from here on relatively more fewer than what most are expecting around here? Vikram Mansharamani: Sure. I have to say that the governor, Raghuram Rajan, is doing a spectacular job. He is, of course, trained as a US economist. At this point he is doing everything that can be expected. The two interest rate cuts earlier this year were well orchestrated. They were well thought through. It made a sense given what had been happening with oil prices, given what had been happening with inflationary pressures. But now that those cuts have been made, taking a pause at this point in time is logical. It makes sense the transmission mechanism of taking these rates down has not resulted in increased lending. So, an improvement to that transmission mechanism — and I know many commentators have been talking about this — is really objective. I believe in the central bank now to stimulate the economy and to support growth. That is what they are working on; it is a logical focus for today's time. Nonetheless, any rebound in oil prices or food prices in India will put the central bank in a difficult position. If we get a bout of higher inflation readings, then the central bank will be in a very difficult position. As of now, the apex bank is well-positioned to endure almost any scenario. But, a problematic scenario would be the one in which inflation rears its ugly head and proves to be persistent. It is an unlikely scenario, but is one worth watching. ET Now: Let us talk about then the global cues. For now, it is favouring us. What did you make of the recent batch of data out of the US? Many believe that there are low chances of interest rate hike in June. How will it impact emerging market currencies and equities over the next few months? Vikram Mansharamani: The US Federal Reserve does affect the US dollar and, therefore, many currencies around the world. What the US Fed will do will depend upon the US economic indicators. I believe the US economic indicators are weaker than what people had thought. This decision will be driven by jobs and job creation, and we have conflicting data in the United States. On the one hand, we have Wal-Mart, McDonald's and others raising wages for the average employees. That is not a sign of a loose labour market, but a sign that labour markets are tightening and wage price pressure should be increasing. At the same time, we have also had a relatively weak jobs report that came out of the US government last week. Now, we do not know whether it is a seasonal problem, or a temporary issue or a slowdown that is underway in the United States. On the margin, this makes the US Federal Reserve less likely to act in the short run and to push off the rate rises for some period of time. Now that is of course very positive for the emerging market. If US interest rates do not rise, then the capital would unlikely fly back to the United States, leaving a more liquid environment in the emerging markets. That could be supportive of asset prices. There is definitely a bout of weakness that people are sensing here and that has resulted in a belief increasing among the investor community here in the United States that there will be a pause; the rates will not start rising as rapidly. ET Now: Just wondering, you meet folks from the world over, what is their view on the reform pace and policy steps that are being taken by the Indian government? Vikram Mansharamani: I was among Modi's biggest fans when he was elected, I am still among one of his biggest fans. He has all the right ideas. He is executing in the right way. I believe the individuals he has surrounded himself with — whether it is the Central bank governor or the finance minister or senior advisors to the government on finance and economic matters — they are all wonderful accomplish. They are market-oriented individuals and because of that the hope of their outlook for India and the Modi regime is very positive. I have to believe that the outlook is good. Now, the fundamental debate that I have when thinking for India is: Is Modi versus the bureaucracy a big problem? It is not clear who is going to win that battle. ET Now: When you interact with foreign investors in your own backyard, how are they looking at Indian markets as an investment class? How are they assessing the prospects of Indian equities over the longer term? Vikram Mansharamani: India as an investment class is a part of the greater emerging market story. I believe that people are starting to say India has the potential to be the world's fastest growing large economy and that offers opportunities. Sadly, for those that are more value-oriented, the Indian economy or the Indian stock markets are not cheap, they are fully priced. So, I think that means that we have a very good story, that is priced as a very good story. That means that it ends up being a relatively neutral positioning in the eyes of most investors. ET Now: Leave us with your views on China. How serious is the China slowdown issue? It is talking about another stimuli for the economy. Do you think these measures which the Chinese government is contemplating and also taking actually bearing fruit? Vikram Mansharamani: Sure. I have been speaking for some period of time that there has been an investment boom in China that is in the process of busting. There are several points that I would like to highlight. Number one, the slowdown of investment spending and building of infrastructure in China, which incidentally has been very over built, has resulted in downside pressure on commodities and in this case I would encourage you to look at iron ore prices to see how they were hitting all new lows even last week. Number two, domestically there is a financial system that is exhibiting signs of stress and vulnerability. We have real estate developers that are necessitating bailouts and we have a financial stress in trust products and other shadow banking which the government is having trouble controlling and that has the potential to create financial chaos. Then the last point I would highlight is — as the strong dollar has been spreading through the global economic system, it has been taking currencies that are defect or link to it up and on a trade weighted basis, the Chinese currency has improved or appreciated quite dramatically in the past several years. That is putting pressure on the export sector, which is becoming less competitive and is a major engine of the Chinese economy. So, if we have these three things occurring simultaneously — which is financial system risk, downside risks to economic growth because of the investment boom ending and a consumption story that has not yet fully taken hold and then lastly the currency price pressure on the exporters -- the China really is going to be slowing for some period of time. It would not surprise me if the Chinese growth rate hit a five handle that we had a 5% growth number out of China at some point in the next 5 to 10 years. That would not be a surprising development to me given the dynamics there.
In accordance with the Centre's public private partnership (PPP) model announced in 2013-14 budget, Coal India (CIL) is finally preparing to float an expression of interset (EOI) in a couple of months to award long-term mining contracts to private ...
The United States is planning to impose a major new regulation on offshore oil and gas drilling to try to prevent the kind of explosions that caused the catastrophic BP Plc oil spill in the Gulf of Mexico, the New York Times reported on Friday, citing Obama administration officials.
SINGAPORE/BAGHDAD, April 10, (RTRS): Iraq’s plan to split a heavier crude being produced in its southern oilfields from its flagship grade should reduce quality issues dogging its exports, though there will be challenges getting the price it wan...
CBRE's Mat Green on why European markets are likely to continue to be an attractive proposition for Middle East investors
The United States is planning to impose a major new regulation on offshore oil and gas drilling to try to prevent the kind of explosions that caused the catastrophic BP Plc oil spill in the Gulf of Mexico, the New York Times reported on Friday, citing Obama administration officials.