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#Post#: 4400--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: January 26, 2016, 6:49 pm
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[center][img
width=640]
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[center]Half of U.S. Fracking Industry Could Go Bankrupt as Oil
Prices Continue to Fall
HTML http://www.freesmileys.org/emoticons/emoticon-object-098.gif[/center]
Andy Rowell, Oil Change International | January 18, 2016 9:29 am
So the slide continues with no end in sight. As expected this
morning, the oil price has fallen below $28 a barrel on the back
of the historic news over the weekend of sanctions being lifted
on Iran.
This is the lowest level for oil since 2003.
The American shale industry needs oil at about the sixty to
seventy dollar a barrel level in order to survive. Photo credit:
Los Angeles Times
The American shale industry needs oil at about the 60 to 70
dollar a barrel level in order to survive. Photo credit: Los
Angeles Times
The markets are spooked that the lifting of sanctions means the
imminent introduction of half a million or so more barrels of
oil per day from Iran into an already oversupplied market. The
country has the world’s fourth largest reserves of oil.
Speaking earlier today at the Asia Financial Forum in Hong Kong,
Stuart Gulliver, CEO of HSBC said “Major producers are currently
delivering 2-2.5 million barrels per day more than demand, so
the question is how long they can continue to overproduce for at
that level.”
Already struggling with oversupply from various countries, the
market now has Iran to contend with too.
After years of isolation due to sanctions, Iran reportedly has a
significant amount of oil to place on the international market
immediately. Analysts from Barclays said simply: “Iranian
exports come at a very bad time.”
That can only mean one thing: a market awash with oil, which
will only add a downwards pressure on the already low oil price.
The numbers are becoming brutal reading for the industry: The
oil price has collapsed more than 70 percent since mid-2014.
And there is no respite in store. In his speech, HSBC chief
executive, Stuart Gulliver, said he predicted the price of oil
to be somewhere between $25 and $40 in a year’s time.
The American shale industry needs oil at about the 60 to 70
dollar a barrel level in order to survive.
Having limped along last year hoping for a rebound in prices
this year, the industry is heading for deep trouble.
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/>[img width=50]
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Last week, one analyst predicted that half of U.S. shale oil
producers could go bankrupt before the oil price rebalances
itself.
HTML http://www.pic4ever.com/images/Banane21.gif
Fadel Gheit, a senior oil and gas analyst at Oppenheimer & Co
believes it could be two years before oil stabilizes near $60,
which is still below the break-even point for many shale
producers.
“Half of the current producers have no legitimate right to be in
a business where the price forecast even in a recovery is going
to be between, say, $50, $60. They need $70 oil to survive,” he
told CNBC.
HTML http://www.pic4ever.com/images/treeswing.gif
[center]Even the big boys are taking a hit.
HTML http://www.pic4ever.com/images/165fs373950.gif[/center]
[center]
[img
width=70]
HTML http://us.123rf.com/400wm/400/400/yayayoy/yayayoy1106/yayayoy110600019/9735563-smiling-sun-showing-thumb-up.jpg[/img]<br
/>[/center]
Last week, BHP Billiton was forced to writedown the value of its
U.S. oil and gas assets by $US7.2 billion (Aus$10.4bn),
admitting it needed $US60 a barrel oil to be “cashflow
positive.”
But the reality is that under $30 dollar a barrel, it is only a
matter of time before we see a range of bankruptcies in the
shale industry.
“At this price range, nothing is safe,”
HTML http://www.createaforum.com/gallery/renewablerevolution/3-200714191258.bmp<br
/> says Jesse Thompson, an economist at the Federal Reserve Bank
of Dallas. And he could well be proved right.
HTML http://ecowatch.com/2016/01/18/fracking-industry-bankrupt/
[center]
Agelbert NOTE: A picture is worth a thousand [s]words[/s]
Imminent Bankruptcies. [img
width=060]
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[center][img
width=640]
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#Post#: 4408--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: January 27, 2016, 7:18 pm
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[center]The Houston economy is DOOMED by profit over planet
greed and stupidity.
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Houston, we have a (greed based profit over planet) problem:
It's called HOUSTON.
HTML http://www.desismileys.com/smileys/desismileys_6869.gif
[table][tr][td]
Houston-Area Energy Employment as of December ’14
[table][tr]
[td]Sector[b][/td][td][b] Employment[/td][td] Share of Total
Employment (%)[/td]
[/tr]
[tr][td]Oil and gas extraction, oilfield services[/td][td]
107,400 [/td][td]3.7%[/td][/tr]
[tr]
[td]Chemical manufacturing[/td][td] 37,000[/td][td] 1.3%[/td]
[/tr]
[tr]
[td]Petroleum products manufacturing[/td][td] 9,500[/td][td]
0.3%[/td]
[/tr]
[tr]
[td]Pipeline transportation[/td][td] 10,400[/td][td] 0.4%[/td]
[/tr]
[tr]
[td]Oilfield equipment manufacturing[/td][td] 43,500 [/td][td]
1.5%[/td]
[/tr]
[tr]
[td]Misc. parts and components manufacturing[/td][td]
41,500[/td][td] 1.4%[/td]
[/tr]
[tr]
[td]Engineering (energy-related)[/td][td] 39,000 [/td][td]
1.3%[/td]
[/tr]
[tr]
[td][/td][td]TOTAL 288,300[/td] [td] 9.9% [/td]
[/tr]
[tr][td]
(It's a bit less in 2016. ;D).
Snippet 1
[quote]The Texas Workforce Commission reports that the Houston
metro area added 4,800 jobs in November, which was the third
weakest November in the past 25 years. The region typically adds
10,000 to 12,000 jobs in the month.[/quote]
Snippet 2
[quote]An Inauspicious Start — ’15 proved to be difficult for
the oil and gas industry. Over the course of the year, drilling
permits fell 41.6 percent, the North American rig count fell
61.4 percent, and the price of crude fell 29.6 percent. That’s
on top of the declines the industry already suffered in
’14.[/quote]
Snippet 3
[quote]
’16 will be even tougher for the industry. ;D[/quote]
HTML http://www.houston.org/pdf/research/quickview/Economy_at_a_Glance.pdf
HTML http://www.houston.org/pdf/research/quickview/Economy_at_a_Glance.pdf
Oil crash job losses in Texas may be steeper than previously
thought - November 12, 2015
HTML http://fuelfix.com/blog/2015/11/12/oil-crash-job-losses-in-texas-may-be-steeper-than-previously-thought/#35109101=0<br
/>
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They could have switched to Renewable Energy LONG ago. But their
GREED prevented them from doing it.
HTML http://www.createaforum.com/gallery/renewablerevolution/3-200714183337.bmp
[img
width=640]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-010914214256.png[/img]
So, I am GLAD that they face an economic depression
HTML http://www.freesmileys.org/smileys/smiley-scared002.gif
for
their profit over planet piggery.
HTML http://www.pic4ever.com/images/301.gif
For those who want to cry for the lost jobs in Houston, pretend
we are ducks and the biosphere is our pond.
HTML http://www.coh2.org/images/Smileys/huhsign.gif
[center] THIS is a metaphorical picture of what EVERYBODY
employed in the fossil fuel industry in Houston SUPPORTS 24/7 so
they can MAKE MONEY.
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HTML http://www.pic4ever.com/images/acigar.gif
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[/center]
[center][img]
HTML http://img4.wikia.nocookie.net/__cb20080719200951/uncyclopedia/images/e/e0/Downarrow.PNG[/img][/center]
[img
width=640]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-260116182439.png[/img]
And I am NOT interested in hearing what Eddie, the Texas
champion of Capitalism, has to say to rationalize this MURDEROUS
insanity.
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[center] [img
width=640]
HTML http://3.bp.blogspot.com/-PTo-8AIrRHY/VlScp-JipgI/AAAAAAABL1Q/JR2j7BDE_30/s1600/11-24-2015x.jpg[/img][/center]
[center] [img
width=200]
HTML https://collapseofindustrialcivilization.files.wordpress.com/2013/01/capitalism-good-business-sense-leila-la-tres-sage.png[/img][/center]
[move][I][font=impact]The Fossil Fuelers DID THE Climate
Trashing, human health depleteing CRIME,[COLOR=BROWN] but
since they have ALWAYS BEEN liars and conscience free crooks,
they are trying to AVOID [/color] DOING THE TIME or PAYING
THE FINE! Don't let them get away with it! Pass it on!
HTML http://www.pic4ever.com/images/176.gif[/font][/I][/move]
[/td][/tr][/table][/td][/tr][/table]
#Post#: 4409--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: January 27, 2016, 9:00 pm
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[center]NYC’s Biggest Pension Fund Lost $135 Million From Oil
and Gas Holdings
HTML http://www.freesmileys.org/emoticons/tuzki-bunnys/tuzki-bunny-emoticon-005.gif[/center]
350.org | January 26, 2016 9:26 am
A new report from Advisor Partners revealed that in one year
alone, New York City’s largest pension fund lost around $135
million from their holdings in the top 100 oil and gas
companies. The Teacher’s Retirement System of the City of New
York, representing more than 200,000 teachers, educators and
workers, incurred a 25 percent reduction in returns of their $60
billion fund from investments in oil and gas.
[center][img
width=640]
HTML http://ecowatch.com/wp-content/uploads/2016/01/divestny_750.jpg[/img][/center]
Protestors call on the State of New York to divest from fossil
fuels. Photo credit: Adam Welz for 350.org / Flickr
“If it’s wrong to wreck the climate, it’s wrong to profit from
that wreckage—but our city’s pension funds are incurring nothing
but losses by investing in fossil fuels,” Mimi Bluestone, a
member of the United Federation of Teachers and a campaigner
with 350NYC, said. “The money lost from oil and gas investments
just in the last year is equivalent to putting about 7,000
students through school for a year. It’s time for New York City
to get out of the business of climate destruction.”
The findings of this report add significant momentum to
activists calling for fossil fuel divestment. Organizers with
350NYC have been campaigning for the city council to divest the
city’s five pension funds from all fossil fuels for over three
years. During the Paris climate talks, it was announced that
more than 500 institutions representing over $3.4 trillion in
assets under management have committed to some level of fossil
fuel divestment.
ExxonMobil and Chevron were the largest contributors to the
fund’s declining performance, causing losses surpassing $39
million. In November, New York Attorney General Eric
Schneiderman launched an investigation into Exxon’s climate lies
after groundbreaking reports revealed that the corporation knew
about climate change for decades, yet poured resources into
discrediting their research and sowing doubt among the public.
California Attorney General Kamala Harris has also launched an
investigation.
“Oil & gas companies are volatile investments. The fact that
these companies underperformed both the U.S. and broader global
index by more than 25 percent confirms the riskiness of these
companies,” Rahul Agrawal, CIO of Equities for Advisor Partners,
said. “Portfolio managers should carefully reassess their
exposure to these securities before investing in them.”
New York City Comptroller Scott Stringer and Mayor Bill De
Blasio have already issued urgent calls for the city’s pension
funds to divest from coal. Coal is on its way out, oil prices
are plummeting and major fossil fuel companies are filing for
bankruptcy, slashing jobs and cancelling projects.
On Wednesday, prominent financial and political figures,
including Scott Stringer, will gather at the United Nations for
the Investor Summit on Climate Risk hosted by Ceres.
“The prudence of divesting from coal is so legible it is quickly
becoming the norm. Oil and gas are on a more asperous decline,
making it harder for investors to see the mounting risk
associated with the industry. New York City’s pension funds need
to divest now, as cautious, long-term investors,” Brett
Fleishman, senior analyst with 350.org, said.
“With this summit happening right in their backyard, NYC’s
comptroller and pension fund managers must communicate exactly
what they’re doing to incorporate ever-increasing climate risk
mitigation and to protect the future of New York City’s
workers.”
HTML http://ecowatch.com/2016/01/26/nyc-pension-oil-gas-holdings/
[center]
[img
width=240]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-100115191314.jpeg[/img][/center]<br
/>
#Post#: 4411--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: January 28, 2016, 2:51 pm
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[center][img
width=300]
HTML http://www.financeafrique.com/wp-content/uploads/hess_afrique_petrole.jpg[/img]
[/center]
[move]HESS POLLUTING ENERGY PIG [img
width=30]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-070814193155.png[/img]<br
/> [img
width=40]
HTML http://www.pic4ever.com/images/pirates5B15D_th.gif[/img]<br
/>ON THE MOVE...... TOWARDS DROWNING IN RED INK. [img width=100
height=60]
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[center]Hess slashes 2016 E&P budget by 20 percent [img
width=20]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-080515182559.png[/img]
[/center]
Staff Writers January 28, 2016
Hess slashed its 2016 exploration and production capital and
exploratory budget by 20 percent on Tuesday, citing low oil
prices.
The New York-based company now plans to spend $2.4 billion on
exploration and production activities this year, a 40 percent
reduction [img
width=20]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-080515182559.png[/img]<br
/> ;D from 2015 levels and about 20 percent below the company’s
preliminary 2016 guidance.
Twenty percent of the budget, or $470 million, has been
allocated for unconventional shale, $610 million, or 25 percent
of the budget, has been allocated for production and $820
million, or 34 percent of the spend, has been allocated to
developments.
Hess also earmarked $500 million, or 21 percent of its 2016
budget, for exploration and appraisal activities.
As part of the company’s unconventional spend, Hess has
earmarked $425 million to operate two rigs and bring 80 new
wells online in the Bakken shale play in North Dakota.
The company will also spend $45 million to drill five wells and
bring 14 new wells online in the Utica shale play in Ohio during
the first quarter of 2016.
Hess added that the rig will be released after the Utica wells
are complete. ;D
Just over half of the production budget will go towards
production activities in the deepwater Gulf of Mexico, including
the drilling and completion of a production well and completion
of a water injection well at the Tubular Bells field, a
production well at the Conger Field and a water injection well
at the Shenzi field.
Hess holds a 57.1 percent operating stake in Tubular Bells, a
37.5 percent operating stake at the Conger field and a 28
percent stake at Shenzi.
The company has allocated $140 million of its production budget
to complete the current stage of the Phase 3 drilling campaign
at its operated South Arne Field in Denmark by the end of the
first quarter and for operations at the BP operated Valhall
Field in Norway.
As part of its exploration and appraisal budget, Hess plans to
spend $250 million to drill up to four wells on the Stabroek
Block in offshore Guyana that include evaluating the Liza
discovery, a drill stem test and additional exploration
activities.
The company also plans to spend $175 million for drilling in the
deepwater Gulf of Mexico including an appraisal well to
delineate the Chevron operated Sicily discovery, an exploration
well at the ConocoPhillips operated Melmar prospect, a large
Paleogene four way structure in the Perdido Fold Belt, and other
exploration activities
The majority of the overall budget has been allocated to
activities in the United States
HTML http://www.pic4ever.com/images/acigar.gif
[img
width=30]
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/>, with that region receiving $1.4 billion.
The company plans to spend $140 million in Europe, $40 million
in Africa and $820 million in Asia and other regions.
Hess’s net production is forecast to average between 330,000 and
350,000 barrels of oil equivalent per day this year, unchanged
from the company’s preliminary guidance issued in October. [img
width=60]
HTML http://www.pic4ever.com/images/minzdr.gif[/img]
The company’s Bakken net production is forecast to average
between 95,000 and 105,000 barrels of oil equivalent per day in
2016.
“We take a long term view [img
width=60]
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to
managing our business and we will continue to invest in our
growth projects and prospects, including exploration and
appraisal activities.
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However, in response to the current low oil price environment,
we have significantly decreased our 2016 capital and exploratory
expenditures and we plan to reduce activity at all of our
producing assets,” Hess president and COO Greg Hill said.
Hill added that the company will “continue to pursue further
cost reductions and efficiency gains across our portfolio.”
[center][img
width=30]
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/> [img
width=50]
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HTML http://petroglobalnews.com/2016/01/hess-slashes-2016-ep-budget-by-20-percent/
[center]
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#Post#: 4421--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: January 29, 2016, 7:17 pm
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[center]
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/>[/center]
[move][font=courier] And now a summary of the latest news from
the fossil fuel polluting Welfare Queens worldwide. [img
width=30]
HTML http://rs165.pbsrc.com/albums/u55/BJ_BOBBI_JO9/Summer%20and%20Spring%20activties/sterb038.gif~c100[/img][/font][/move]
Halliburton posts $28 million Q4 loss
HTML http://petroglobalnews.com/2016/01/halliburton-swings-to-28-million-q4-loss/
Petrobras cutting management staff by 30 percent
HTML http://petroglobalnews.com/2016/01/petrobras-cutting-management-staff-by-30-percent/
Hess slashes 2016 E&P budget by 20 percent
HTML http://petroglobalnews.com/2016/01/hess-slashes-2016-ep-budget-by-20-percent/
Keppel: Sete Brasil hasn’t paid us for over a year
HTML http://petroglobalnews.com/2016/01/keppel-takes-160-million-q4-write-down-tied-to-petrobras-scandal/
Dong Energy writing down E&P arm by $2.3 billion
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[img
width=100]
HTML http://www.freesmileys.org/smileys/smiley-forum/popcorn.gif[/img]
[quote][size=8pt]
Denmark-based Dong Energy warned on Tuesday that it will write
down the value of its upstream arm by just over $2 billion,
citing low oil prices and reduced reserves.[/size][/quote]
HTML http://petroglobalnews.com/2016/01/dong-energy-writing-down-ep-arm-by-2-3-billion/
Agelbert NOTE: ANY reduction in UPSTREAM pollution piggery is
good news for the biosphere.
Upstream_(petroleum_industry): The oil and gas industry is
usually divided into three major sectors: upstream, midstream
and downstream. The upstream oil sector is also commonly known
as the exploration and production (E&P) sector.[1][2]
HTML https://en.wikipedia.org/wiki/
Meanwhile, TEXANS keep LITERALLY dying on behalf of the fossil
fuel industry "business model". Perhaps the fossil fuelers like
MKing should stop referring to the oil industry workers as the
"salt of the earth". SUCKERS for Big OIL is more like it.
HTML http://www.pic4ever.com/images/gen152.gif
HTML http://www.pic4ever.com/images/snapoutofit.gif
[center]Texas man killed in pipeline construction
accident[/center]
HTML http://petroglobalnews.com/2016/01/texas-man-killed-in-machinery-accident/
[center]
[img
width=100]
HTML http://www.pic4ever.com/images/gaah.gif[/img][/center]
[center][img
width=340]
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#Post#: 4444--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: February 2, 2016, 5:19 pm
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[center][img
width=640]
HTML http://amazonwatch.org/assets/images/logos/ct.png[/img][/center]
[move][font=courier]Chevron slides to $558 million Q4
loss[/font][/move]
Staff Writers February 1, 2016
[center]
[img
width=200]
HTML http://images.bidnessetc.com/img/vmware-inc-vmw-why-the-stock-is-tanking-today.jpg[/img][/center]
Chevron reported a $588 million fourth quarter loss on Friday as
low oil prices weighed on upstream earnings.
The company reported a loss of $588 million, or $0.31 per
diluted share, for the fourth quarter of 2015, down
significantly from earnings of $3.5 billion in the fourth
quarter of 2014.
Full year 2015 earnings fell to $4.6 billion, or $2.45 per
diluted share, down from $19.2 billion, or $10.14 per diluted
share, in 2014.
Sales and other operating revenues in the fourth quarter of 2015
were $28 billion, compared to $42 billion in the year-ago
period.
The company’s upstream segment slid to a $1.36 billion loss in
the fourth quarter, down from earnings of $2.67 billion in the
prior year quarter.
The upstream segment posted a loss of $1.96 billion for the full
year of 2015, a significant drop from $16.89 billion in earnings
reported in 2014.
Low oil prices and higher exploration costs dragged the
company’s U.S. upstream operations to a $1.95 billion loss in
fourth quarter 2015, down from earnings of $432 million a year
earlier.
Weak crude prices also weighed on Chevron’s international
upstream operations with the area posting $593 million in fourth
quarter earnings compared with $2.24 billion in the fourth
quarter of 2014.
The company’s average sales price per barrel of crude oil and
natural gas liquids was $35 in fourth quarter 2015, down from
$66 a year ago.
Chevron’s downstream segment fared better with full year
earnings of $7.6 billion, up from $4.33 billion in 2014, and
fourth quarter earnings of $1.01 billion, down from $1.51
billion in the fourth quarter of 2014.
International downstream operations earned $515 million in
fourth quarter of 2015, down from $629 million during the same
period in 2014.
U.S. downstream earnings fell to $496 million in fourth quarter
2015 from $889 million a year earlier, primarily due to “to the
absence of 2014 gains on asset sales,” Chevron said.
Fourth quarter earnings tied to all other activities came it at
a $238 million loss, up from a $720 million loss in the prior
year quarter, and a full year loss of $1.05 billion compared to
a loss of $1.98 billion in 2014.
Chevron earned $6 billion in proceeds from asset sales in 2015
and has said it has planned further sales for 2016 to 2017.
Net charges in fourth quarter 2015 were $238 million, compared
with $720 million in the year-ago period.
Chairman and CEO John Watson said he expects cuts to operating
expenses and capital spending on par with the $9 billion the
company slashed from its 2015 spend compared to the previous
year.
Watson said that the company added about 1.02 billion barrels of
net oil equivalent proved reserves in 2015.
The additions, still subject to final reviews, equate to about
107 percent of the company’s net oil-equivalent production for
the year.
The largest additions were from production entitlement effects
in several locations and drilling results for the Permian Basin
in the United States and the Wheatstone Project in Australia.
At year-end, balances of cash, cash equivalents, time deposits
and marketable securities totaled $11.3 billion, a decrease of
$1.9 billion from the end of 2014.
Total debt as of December 31, 2015 stood at $38.6 billion, an
increase of $10.8 billion from a year earlier.
Chevron’s worldwide net oil-equivalent production was 2.67
million barrels per day in fourth quarter 2015, up from 2.58
million barrels per day in the 2014 fourth quarter.
Capital and exploratory expenditures in 2015 were $34 billion,
down from $40.3 billion in 2014.
Expenditures for upstream represented 92 percent of the
companywide total in 2015, Chevron said.
“Our 2015 earnings were down significantly from the previous
year, reflecting a nearly 50 percent year-on-year decline in
crude oil prices.
We’re taking significant action to improve earnings and cash
flow in this low price environment,” Watson said.
HTML http://www.freesmileys.org/smileys/smiley-scared002.gif[img<br
/>width=30]
HTML http://www.pic4ever.com/images/245.gif[/img]
HTML http://petroglobalnews.com/2016/02/chevron-posts-558-million-q4-loss/
HTML http://petroglobalnews.com/2016/02/chevron-posts-558-million-q4-loss/
#Post#: 4446--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: February 4, 2016, 3:08 pm
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[img
width=100]
HTML https://pbs.twimg.com/profile_images/527210744178167809/z6CbCdS5.jpeg[/img]<br
/>Feb 1, 2016 [font=times new roman] Authors Amory B. Lovins
[img
width=50]
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/>Chief Scientist[/font]
[center]
As Oil Prices Gyrate [img
width=100]
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/>Underlying Trends Are Shifting To Oil's Disadvantage [img
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Why should equity markets tank when oil prices do? Beats me ;D.
Among many sources of jitters, this shouldn’t be a big one
(though The Economist demurs). When oil prices fall 70+ percent,
oil companies and their lenders and investors suffer, so do
oil-dependent communities, but oil users (far more numerous)
rejoice and respend. The net macroeconomic effect sounds as
positive as the middle-class tax cut that it effectively is —
the OPEC-monopoly-rent tax that Congress has long seemed
determined to pay to the Saudis rather than to the Treasury,
finally if accidentally being respent at home.
Surely investors understand — don’t they? — that oil is a
commodity. As I explained elsewhere, oil prices go down because
they went up before, and they go up because they went down
before.
Get used to it.
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Commodities do that; it’s their job. If you don’t like it, don’t
buy them. Buy constant-price, and usually cheaper, efficiency
and renewables instead, as the national and global market is
doing. Then you can avoid loop-the-loop roller-coaster rides and
get your energy services cheaper, cleaner, and more reliably.
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width=640]
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[quote]
HTML http://www.freesmileys.org/emoticons/emoticon-object-106.gifThose<br
/>who claimed low oil prices would crash renewables (other than
biofuels) were wrong.
HTML http://www.freesmileys.org/emoticons/tuzki-bunnys/tuzki-bunny-emoticon-028.gif[/quote]
Those who claimed low oil prices would crash renewables (other
than biofuels) were wrong. The reason is simple. Wind and solar
power make electricity. Oil makes less than four percent of
world and under one percent of U.S. electricity, so oil has
almost nothing to do with electricity. Thus in 2015, as oil
prices kept skidding, global additions of renewable power set a
new record, adding about 121 GW of wind and solar power alone.
Renewables’ $329 billion investment was up 4% from 2014, says
Bloomberg New Energy Finance (which tracks each transaction),
but it added 30 percent more capacity because renewables got
much cheaper. Solar power is booming even in the Persian Gulf,
where it beats $20 oil.
Natural gas does compete with solar and windpower, and its price
tends to move with oil’s, but cheaper gas doesn’t much affect
renewable power either. That’s because new wind and solar power
often beat even the operating costs of the most efficient
gas-fired power plants anyway, even without counting the market
value of gas’s price volatility.
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Yet as oil prices gyrate, it’s important to understand that
underlying trends are shifting too, to oil’s disadvantage.
HTML http://www.createaforum.com/gallery/renewablerevolution/3-200714191258.bmp<br
/>It’s happened before. In the 1850s, whalers—America’s
fifth-largest industry—were astounded to run out of customers
before they ran out of whales. Over five-sixths of their
dominant market (lighting) vanished to competitors—oil and gas
both synthesized from coal—in the nine years before Drake struck
“rock oil” (petroleum) in Pennsylvania in 1859. Two decades
later, Edison’s electric lamp beat whale oil, coal oil, town
gas, and John D. Rockefeller’s lighting kerosene. Today in turn,
most traditional lighting is being displaced by white LEDs,
which each decade get 30x more efficient, 20x brighter, and 10x
cheaper. By 2020 they should own about two-thirds of the world’s
general lighting market.
Agelbert NOTE: Not mentioned by Lovins, and adding to his
argument ;D, is the fact that the tax on ethanol, either for
drinking or use as fuel for lighting, post Civil War made
kerosene "cheaper" by Law, NOT because it was cheaper to
produce. THAT was a huge factor in getting Rockefeller the
fortune he used to corrupt our government on behalf of fossil
fuels.
LEDs inside-out are PVs—photovoltaics, turning light into
electricity. PVs often, and very soon generally, beat just the
fossil-fuel cost of running traditional power plants. PVs are
now less capital-intensive than Arctic oil, not counting the
ability to use electrons more effectively than molecules. Costly
frontier hydrocarbons like Arctic oil can’t sell for a high
enough price to repay their costs. Their revenue model has been
upside-down for years. Had Shell persevered instead of
abandoning its $7-billion Arctic investment, and had it found
oil, it wouldn’t have won durable profits.
Oil companies since 1860 and electric utilities since 1892 have
sold energy commodities—molecules or electrons—rather than the
services customers want, such as illumination, mobility, hot
showers, and cold beer. This business model means that when
customers use the energy commodity more efficiently to produce
the service they want, the provider loses revenue, not cost.
That’s bad for both electric utilities and hydrocarbon
companies, because most (and for oil, ultimately all) of the
commodity they sell can be displaced by far cheaper energy
productivity.
That displacement is already well underway.
HTML http://www.freesmileys.org/emoticons/tuzki-bunnys/tuzki-bunny-emoticon-013.gif<br
/>Renewable electricity merits and gets lots of headlines, but i
n
2014 it raised U.S. energy supplies only a third as much as the
energy saved in the same year by greater efficiency.
Over the past 40 years, Americans have saved 31 times as much
energy as renewables added. Those cumulative savings are
equivalent to 21 years’ current energy use. They’re simply
invisible: you can’t see the energy you don’t use. But globally,
it’s a bigger “supply” than oil, and inexorably, it’s going to
get much, much bigger.
Oil companies worry about climate regulation, but they’re even
more at risk from market competition. The oil that’ll be
unburnable for climate reasons is probably less than the oil
that’ll be unsellable because efficiency and renewables can do
the same job cheaper. An oil business that sputters when oil’s
at $90 a barrel, swoons at $50, and dies at $30 will not do well
against the $25 cost of getting U.S. mobility—or anyone else’s,
since the technologies are fungible—completely off oil by 2050.
That cost, like the $18 per saved barrel to make U.S.
automobiles uncompromised, attractive, cost-effective, and
oil-free, is a 2010–11 analytic result; today’s costs are even
lower and continue to fall.
In short, like whale oil in the 1850s, oil is becoming
uncompetitive even at low prices
HTML http://www.freesmileys.org/emoticons/tuzki-bunnys/tuzki-bunny-emoticon-022.gif<br
/>before it became unavailable even at high prices.
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/>
Today’s oil glut, we hear, is caused by fracking, a bit by
Canadian tar sands, and most of all by the Saudis’ awkward
(though impeccably logical ;D) unwillingness to give up their
market share to higher-cost competitors. But less noticed, and
equally important, is that demand has not lived up to
irrationally exuberant forecasts.
Gasoline demand has trended down in the U.S. for the past eight
years and in Europe for the past ten, for fundamental and
durable reasons of technology, urban form, shifting values, and
superior ways to get mobility and access. Suppliers have
invested to supply more oil than customers want to buy. Had
crimped budgets not curtailed investment budgets, oil companies
would still be building pre-stranded production assets as fast
as they could.
As frontier oil becomes costlier while accelerating demand-side
innovations spread from rich to developing countries, led by
China, oil companies face discouraging fundamentals. They’re
stuck with the least attractive 6% of global reserves while
parastatals keep the rest, and even that last 6% can be
confiscated or taxed away at any time. Oil companies are price
takers in a volatile market. They’re extraordinarily
capital-intensive. They have decadal lead times. They have high
technical, geological, and political risks. They’re politically
fraught and interfered with; some firms have also suffered
self-inflicted reputational damage that sullies the rest. Oil
companies’ shrinking reserves and geographies force them into
riskier and costlier projects while investors demand lower risk
and higher return. Their service companies have turned into
formidable competitors. Their permanent subsidies are coming
under scrutiny and pressure [img
width=20]
HTML http://www.createaforum.com/gallery/renewablerevolution/3-080515182559.png[/img].<br
/> Most of the reserves underpinning their balance sheets are
unburnable or unsellable or both—far costlier than demand-side
competitors, even at today’s oil prices, and increasingly
challenged even on the supply side—so financial regulators are
sniffing around mark-to-market.
What a recipe for headaches! Why be in a business like that?
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With mature provinces
in decline and fiercely contested, prices volatile, ingenuity
strained, exploration pushed to the ends of the earth at
spiraling cost and risk, and unforeseen competitors inexorably
taking away demand, should hydrocarbon companies ignore, deny,
resist, diversify, hedge, finance, transform, or decline? That
strategic choice is stark, tough, and increasingly urgent.
And that’s before we add oil’s volatile geopolitics—focused
chiefly on the world’s most unstable and dangerous region where
a Rubik’s Cube of ancient feuds ensures that, as one expert
famously taught, “However bad things are in the Middle East,
they can always get worse.”
One troubling scenario concerns the brittleness of Saudi
Arabia’s vital 10 million barrels of oil per day—5–10 times the
world oil market’s surplus. Most Saudi oil flows through
terminals at Ras Tanura and Ju‘aymah and through the Abqaiq
processing plant (which al Qa‘eda tried to attack a decade ago
and then planned to fly hijacked planes into). These highly
concentrated facilities have also been attacked, so far
ineffectually. It could take decades to fix damaged key
components.
Who might want to do that? Da‘ish or al Qa‘eda would win a
twofer: damaging Western economies and toppling the Saudi
monarchy (whose export of intolerant Wahhabist ideology,
ironically, inspired jihadism in the first place). Oil exporters
severely damaged by low oil prices, such as bystanders Nigeria
and Venezuela, lack capability to limit Saudi output. But two
very interested neighbors might not.
Iran is right across the Gulf, with two big airbases a
quarter-hour’s flight from the Saudi oil chokepoints. Iran is a
bitter rival, the opposite pole of the tense Shi‘a-Sunni axis,
and influential with the disaffected Shi‘a population that
predominates in the eastern Saudi region around the main
oilfields. Iran is currently in a tiff with the Saudi
leadership. Its versatile and creative military and paramilitary
forces and proxies don’t not always seem under full political
control. Reentering the oil market with the lifting of nuclear
sanctions, Iran would like to earn more money per barrel.
Also now active in the neighborhood is militarily formidable
Russia—the world leader in secret, disguised, and proxy warfare
*. President Putin’s impressive ability to retain power by
seeming to protect the Russian people from crises he
manufactures cannot work without a viable domestic economy. At
today’s oil price, Russia is likely to deplete its stability
funds this year and its foreign reserves by about next year, so
Mr. Putin may see a much higher oil price (plus lifted Ukraine
sanctions) as an existential necessity.
*Agelbert NOTE: I disagree with Lovins that Russia is the "world
leader in secret, disguised, and proxy warfare". Russia is WAY
BEHIND "our" (see U.S. oligarchs) M.I.C. in that regard.
Ras Tanura and Saudi Aramco have weathered cyberattacks. (Both
Iran and Russia have lately cyberattacked their neighbors—Turkey
and Ukraine respectively.) There are also many options for
physical attack, some hard to forestall. So far, Saudi forces
have defeated both cyber- and physical attacks on key oil
facilities. But attackers need succeed only once, and they could
be highly motivated.
A successful attack, strangling Saudi oil output for years (and
then repeatable), could make oil prices soar more than they’ve
plunged. Massive global inventories could help cushion the blow,
efficiency and renewables could be surged, behaviors would
change, but most of 10 million at-risk barrels per day lack
ready replacements. Now, that could justify a skittish Dow.
All the more reason to buy efficiency and renewables instead of
oil. We’ll profit more and sleep better.
HTML http://www.desismileys.com/smileys/desismileys_0293.gif
This article originally appeared on Forbes.com.
Photo courtesy of IrenicRhonda via Flickr, Creative Commons
license (CC BY-NC-ND 2.0).
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#Post#: 4455--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: February 5, 2016, 7:42 pm
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/> [/center]
[center]Anadarko Petroleum posts $1.25 billion Q4 loss[/center]
Staff Writers February 5, 2016
Texas-based Anadarko Petroleum said Tuesday that it may cut its
2016 budget by 50 percent after reporting a $1.25 billion fourth
quarter net loss.
The company reported a fourth quarter net loss attributable to
common stockholders of $1.250 billion, or $2.45 per diluted
share, including certain items typically excluded by the
investment community in published estimates.
Anadarko said these items increased the net loss by $954 million
on an after-tax basis.
The company reported a net loss attributable to common
stockholders of $6.69 billion for the full year of 2015, or
$13.18 per diluted share.
Cash flow from operating activities in the fourth quarter of
2015 was $257 million and discretionary cash flow totaled $810
million.
Full-year 2015 net cash used in operating activities was $1.877
billion and discretionary cash flow for the year totaled $4.657
billion.
Anadarko chairman, president and CEO Al Walker said the company
anticipates recommending an initial 2016 budget of $2.8 billion
to its board, nearly 50 percent lower than its actual 2015
capital investments and almost 70 percent lower than its 2014
spend.
“As we consider capital allocation for 2016, greater market
dislocation appears likely, and the need to again materially
lower our capital spending, while continuing to pursue value
creation and preservation, is our best course of action,”
Walker said.
Walker added that the company reduced its spending in 2015 by
more than $3 billion year-over-year, down nearly 40 percent from
2014.
Anadarko’s full-year sales volumes of crude oil, natural gas and
natural gas liquids totaled 305 million barrels of oil
equivalent (boe), or an average of 836,000 boe per day.
Fourth quarter 2015 sales volumes of crude oil, natural gas and
NGLs averaged 779,000 boe per day.
Anadarko said it organically added 407 million boe of proved
reserves in 2015 before the effects of price revisions and
incurred oil and natural gas exploration and development costs
of $5.8 billion.
The company estimates its proved reserves as of the end of 2015
totaled 2.06 billion boe, with nearly 80 percent of its
reserves categorized as proved developed.
At year-end 2015, Anadarko’s proved reserves were comprised of
52 percent liquids and 48 percent natural gas.
Anadarko said it ended 2015 with $939 million of cash on hand,
an amount that reflects remittance of the $5.2 billion final
payment resolving the Tronox Adversary Proceeding.
“As discussed last year at this time, we did not expect oil
prices to recover in 2015 and believed it could take well into
2016 before markets would stabilize on a sustained basis, costs
would become more aligned with the new operating environment and
investments in short-cycle assets would be more attractive.
Therefore, value enhancement drove our capital-allocation
philosophy,” Walker said.
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/> [img
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[/center]
#Post#: 4458--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: February 5, 2016, 8:58 pm
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[center]A Renewables Revolution Is Toppling the Dominance of
Fossil Fuels in U.S. Power [img
width=80]
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[/center]
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February 4, 2016 — 12:01 AM EST Updated on February 4, 2016 —
4:59 PM EST
Renewable energy
HTML http://www.pic4ever.com/images/170fs799081.gif<br
/>was the biggest source of new power added to U.S. electricity
grids last year as falling prices and government incentives made
wind and solar increasingly viable alternatives to fossil fuels.
Developers installed 16 gigawatts of clean energy in 2015, or 68
percent of all new capacity, Bloomberg New Energy Finance said
in its Sustainable Energy in America Factbook released Thursday
with the Business Council for Sustainable Energy. That was the
second straight year that clean power eclipsed fossil fuels.
The biggest growth came from wind farms, with 8.5 gigawatts of
new turbines installed as developers sought to take advantage of
a federal tax credit that was due to expire at the end of 2016;
Congress extended it in December.
This is a long-term trend,” said Colleen Regan, a BNEF analyst
who follows North American power markets. “System costs have
really come down for renewables, which makes the case for
installing them a lot stronger.”
Demand for energy, meanwhile, flatlined in the U.S. last year,
holding steady even as the gross domestic product grew 2.4
percent, BNEF said. Since 2007, U.S. energy consumption has
dropped 2.4 percent while GDP has grown by 10 percent.
U.S. clean-energy investments rose to $56 billion last year, up
7.5 percent from 2014. The majority, $30.2 billion, went to
solar. Investors pumped $11.6 billion into wind energy and $11.1
billion into technology to improve grids, boost efficiency,
develop storage systems and other ways to better manage power
usage.
Power from natural gas-fired plants accounted for 25 percent of
capacity added to grids last year. >:( Nearly one third of all
electricity in the U.S. is now generated by gas, putting it
nearly on par with coal.
A record number of coal plants were shuttered in 2015, with 11
gigawatts of capacity coming off line by the end of October, and
plants with another 3 gigawatts of capacity expected to close in
November and December. Natural gas, meanwhile, continues to
surge.
“It looks good for gas to be a larger share of electricity
generation than coal in 2016,” Regan said.
HTML http://www.bloomberg.com/news/articles/2016-02-04/renewables-top-fossil-fuels-as-biggest-source-of-new-u-s-power
Agelbert NOTE: While getting rid of coal is important, the gas
that should supplant it is NOT fracked gas, which is almost as
polluting as coal, when all the flaring damage and ground water
pollution damage is figured in. Fracked Natural gas is an
OBSCENITY! [img
width=50]
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/>
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COW POWER is the ONLY kind of TRULY NATURAL GAS that should be
used for whatever in our society:
[center][img
width=640]
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HTML http://www.greenmountainpower.com/innovative/cow/how-it-works/
#Post#: 4472--------------------------------------------------
Re: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!
By: AGelbert Date: February 10, 2016, 7:30 pm
---------------------------------------------------------
[quote author=azozeo link=topic=559.msg97217#msg97217
date=1455102745]
[quote author=agelbert link=topic=559.msg97206#msg97206
date=1455069944]
[move][font=courier]What may doom human society to climate
change death by profit over planet is, uh, see video
below...[img]
HTML http://rs165.pbsrc.com/albums/u55/BJ_BOBBI_JO9/Summer<br
/>and Spring activties/sterb038.gif~c100[/img][/font][/move]
[center]
HTML https://youtu.be/yR0lWICH3rY[/center]
[/quote]
Thanks for sharing
[/quote]
Az,
You are welcome. [img
width=20]
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Check this out. It seems the DEMAND DESTRUCTION for oil
continues despite the low prices.
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[move][font=courier][b]EIA: U.S. crude inventories above 500
million barrels for first time ever :o ;D[/font][/b]
[/move]
Staff Writers February 10, 2016
U.S. crude inventories rose above 500 million barrels for the
first time ever last week after a larger than expected gain.
According to the U.S. Energy Information Administration, total
U.S. commercial crude oil inventories were 502.7 million barrels
as of January 29 after adding 7.8 million barrels.
[center]
U.S. crude inventories now stand at 132 million barrels above
the five-year average.[/center]
The crude stock jump also marks the first time that U.S.
inventories have exceeded 500 million barrels, the EIA said.
Crude inventories at Cushing, Oklahoma, the delivery point for
the West Texas Intermediate futures contract traded on the New
York Mercantile Exchange, stood at 64.17 million barrels last
week, or 58 percent above the five-year average.
Total U.S. distillate inventories, including heating oil and
diesel fuel, are now 22 million barrels above the five-year
average at 159.69 million barrels.
U.S. motor gasoline inventories also passed historical highs
last week after growing by 5.9 million barrels to 254.4 million
barrels and now sit “well above the upper limit of the average
range,” the EIA said.
Net crude oil imports climbed to about 7.51 million barrels as
of January 29, up from 6.93 million during the same period last
year.
The EIA added that, [I]despite the supply gut[/I], there “is
still traditional, on-land storage space available ;)” and
there has been no information ;) to indicate that “widespread
amounts of crude oil are being purchased for floating storage.”
[img
width=80]
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/>
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/>
[center]
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[center][img
width=100]
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West Texas Intermediate was trading at $33.13 per barrel near
noon on Thursday as a weakening U.S. dollar helped offset
concerns about growing inventories.
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HTML http://petroglobalnews.com/2016/02/eia-oil-gasoline-stocks-grew-more-than-expected/
HTML http://petroglobalnews.com/2016/02/eia-oil-gasoline-stocks-grew-more-than-expected/
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