Iran New Fuel Production Lines

With the presidential inauguration of 14 new fuel production lines in the Lavan facility, the capacity of Iran’s production of Euro-4 grade gasoline at the oil refinery will reach 2,800,000 barrels per day.

Additionally, the daily oil refinery capacity at the Lavan field will increase from 30,000 barrels to 60,000 with the launch of the new development projects.

Referring to major expansion of domestic gasoline production, President Ahmadinejad stated that “this commodity is so significant that ill-wishers of the Iranian nation once imposed a massive eight-year war and in other instances imposed sanctions on their gasoline sales [to Iran] to halt the [progress of] nation,”

The president further emphasized that the Iranian oil industry used to be dependent on foreign assistance and equipment imports, but the “oil industry has experienced major developments since the victory of the Islamic Revolution and particularly in recent years.”

According to executives at Lavan Refinery, with the launch of the new treatment facility, the production of liquefied gas will surpass 200 tons, jet fuel production will climb to one million liters, and the production of sulfur granule would soar to 30 tons per day.

Iran attained self-sufficiency in fuel production after its international suppliers stopped selling gasoline to Tehran under US pressure.

With over 137 billion barrels of proven reserves, Iran has the world’s fourth largest oil reserves. Its gas reserves are also estimated at more than 29 trillion cubic meters.

Sourse:Gulf-Oil-and-Gas

Oil and gas prices First Half, 2013

A general price rally for crude and petroleum products gained strength June 27 with crude up 1.6% in the New York futures market, but the front-month natural gas contract fell 3.4% after the Energy Information Administration reported a bearish injection last week.
Oil prices were up in early trading June 28 during the last market session for the first half of this year. Trading often is volatile when a month, a quarter, and a half-year all end in the same session. But markets appeared relatively calm compared with volatile activity in recent weeks.

“Now that the unfounded demand optimism that began the year has been priced out . . . the outlook for global crude oil demand appears modestly supportive of prices,” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group. “The resilience of the US consumer in the face of the country’s various fiscal hurdles bodes well, although we would warn against extrapolating the recent and abrupt pick-up in some economic indicators.” He expects West Texas Intermediate to average $96/bbl in the third quarter, with North Sea Brent averaging $105/bbl.
Analysts with Barclays Capital Commodities Research said, “The demand side of the equation for crude oil markets does face some speed bumps in terms of tightening balances in our view, which could slow the process of price retracement in the second half of the year. Natural gas prices continued to edge lower this week, with the August contract falling 4.6% [from the previous week] and dropping below $3.75/MMbtu despite a warmer forecast for the near term.”

Chinese demand for crude should hold steady, but “further slowing of China’s economy is a non-negligible risk to our current prediction,” Ground reported. “Renewed sovereign debt problems in the Euro-zone economy also pose another downside risk, although our baseline sees a modest improvement in the region’s economic activity.”
On the supply side, the Organization of Petroleum Exporting Countries seems comfortable with current prices as ministers voted at their last meeting to hold the official production ceiling at 30 million b/d—“leaving the oligopoly as a relatively neutral factor for now,” Ground said. “Ample OPEC spare capacity as well as generous global inventory levels (particularly in the US) should also prevent prices from running away should the global growth outlook improve more significantly than we predict. Some support for prices on the supply side over the coming quarter could be a tighter North Sea market due to heightened maintenance over the summer, and, in our view, slower US production growth in the face of likely disruptions.” The US climatological center predicts a more intense hurricane season this year.

Geopolitical threats to supply also remain ever present. However, Ground said, “Unless there is a significant increase in the likelihood that other oil-producing countries in the region will be drawn into the Syrian conflict, [price] rallies on news-flow surrounding this issue should fade. If anything, the geopolitical premium might ease, given that Iran’s new president appears more moderate, opening the way to perhaps a more conciliatory approach in negotiations surrounding the country’s nuclear program and the possibility of a lifting of sanctions.” But uncertainty remains prior to the president-elect taking office Aug. 3.

“The run-up to and then the Federal Reserve Bank’s actual tapering of quantitative easing, most likely to begin in September, should keep upward pressure on the dollar,” Ground predicted. “This we believe will keep upside in oil prices, premised on an improving demand story, contained. In fact, we view the dollar’s reaction (and the related reaction in interest rates) to a paring in Fed bond purchases as a major downside risk to our price forecasts. A trimming of quantitative easing might also dampen the enthusiasm of the speculative market, although we feel that investor interest could be maintained if tapering is accompanied by an improving crude oil demand outlook.”

In other news, Barclays Capital analysts reported, “Discounts on Canadian crude oil have narrowed significantly since the start of the year. The heavy West Canadian Select grade (ex-Hardisty) was trading at a deep discount of $42.5/bbl to WTI in December, narrowing to current levels of around $16/bbl.”

The equity market rallied June 27 “for the third day in a row as investors became more comfortable with the Fed’s complicated message,” said analysts in the Houston office of Raymond James & Associates Inc. The Standard & Poor’s 500 Index closed 0.6% higher while the Dow Jones Industrial Average gained 0.8%. The Oil Service Index advanced 0.5%, but the SIG Oil Exploration & Production Index dropped 0.7%.
Energy prices.

The August contract for benchmark US light, sweet crudes climbed $1.55 to $97.05/bbl June 27 on the New York Mercantile Exchange. The September contract rose $1.48 to $96.89/bbl. On the US spot market, WTI at Cushing, Okla., was up $1.55 to $97.05/bbl.
Heating oil for July delivery rebound by 3.51¢ to $2.89/gal on NYMEX. Reformulated stock for oxygenate blending for the same month took back 1.2¢ to $2.74/gal.

The new front-month August natural gas contract fell 15.5¢ to $3.58/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., inched up 0.9¢ to $3.74/MMbtu.
In London, the August IPE contract for North Sea Brent gained $1.16 to $102.82/bbl. Gas oil for July escalated $19 to $882.75/tonne.
The average price for OPEC’s basket of 12 benchmark crudes increased 98¢ to $99:39/bbl.

Soure:Oil-and-Gas-Journal

New Oil field Discovery Nigeria Offshore

Afren plc announces that the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria has discovered a significant light oil accumulation, based on the results of drilling and wireline logs.

The Ogo-1 well has been drilled to a total measured depth of 10,518 ft (10,402 ft true vertical depth subsea), and has encountered a gross hydrocarbon section of 524 ft, with 216 ft of net stacked pay. The well was targeting 78 mmboe of gross P50 prospective resources, but based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates. Further evaluation using wireline log analysis is currently underway prior to extending the well to a total measured depth of 11,800 ft (11,684 ft true vertical depth subsea) to target further high potential zones.

The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous sandstones that have yielded other significant discoveries along the West African Transform Margin.

Following the completion of drilling operations at Ogo-1, the Partners intend to drill a planned side-track, Ogo-1 ST, which will test a new play of stratigraphically trapped sediments that pinch-out onto the basement high targeting 124 mmboe of gross P50 prospective resources.

Osman Shahenshah, Chief Executive of Afren, commented:
“The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the West African Transform Margin. Based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates, with some high-potential zones still to be drilled. We look forward to working with our Partners to realise the full potential of Ogo and our additional prospects on the license. The Ogo-1 exploration success follows a series of recent discoveries, Okoro Field Extension, Ebok North Fault Block and Okwok in Nigeria and Simrit-2 and Simrit-3 on the Ain Sifni Block in the Kurdistan region of Iraq.”

Source:GulfOilandGas

OGP report and Oil & Gas Future

The International Association of Oil & Gas Producers (OGP) has released the latest edition of its annual Safety Performance Indicators report.

The report, covering 2012 data, shows that the number of fatalities per 100 million hours worked, the Fatal Accident Rate, has fallen in the last ten years.

“Safety in our operations is a top priority for the industry and we strive to improve our record constantly,” says OGP Executive Director Michael Engell-Jensen.

The safety report is OGP’s largest annual reporting project. The latest edition provides an analysis of the safety performance of 49 OGP member companies, representing 3.7 billion work hours and operations in 107 countries.

In 2012, participating OGP member companies reported 88 fatalities which occurred in 52 separate incidents. The Fatal Accident Rate was down by 52% compared with the 2003 rate, showing an overall downward trend over the last ten years. The rate increased however by 27% compared with 2011; a single incident (a gas leak and explosion of a pipeline in which 31 people lost their lives) had a predominant effect on the 2012 rate.

The largest proportion of fatalities (44%) were reported in the ‘Explosions or burns’ category with ‘Caught in, under or between’ being the second largest (18%).

Lost time injury frequency increase

Lost Time Injury Frequency (fatalities and lost work day cases per million work hours) increased by 12% to 0.48 in 2012, representing an additional 307 lost time injuries.

Participating companies reported 53,325 workdays lost through injuries.

The most frequently reported incident category was ‘Struck by,’ which accounted for 408 lost work day cases, 24% of the total. The category ‘Caught in, under or between’ accounted for 21% of the total (352 lost work day cases). Both categories also accounted for the largest proportions of lost work day cases reported in 2011 with very similar values to 2012 (25% and 19% respectively).

Source: OGP-Your-Oil-and-Gas-News