IEA: OIL INVESTMENT
The International Energy Agency's chief economist on Friday urged oil producers to boost investment in new projects to meet an anticipated rise in demand, a move that he said may avoid oil price spikes in coming years.
Speaking in Madrid during the presentation of the IEA's annual report, Fatih Birol said that a tumble in oil prices makes it hard to believe a supply crunch may happen any time soon, but the slow pace of development of new projects makes it imperative to act.
"We shouldn't just ignore tomorrow's challenges," Mr. Birol said. "This is hard point to make in this context of lower oil prices, but we need to invest now."
A continued oil slide hammered commodity-dependent currencies as well as shares in oil and gas companies Friday, a day after the Organization of the Petroleum Exporting Countries left its output target unchanged, diminishing hope of any imminent respite for the ailing commodity.
In early trade, Brent crude fell to its weakest level in four years, having already plummeted nearly 7% on Thursday. It later picked up slightly.
Analysts had estimated OPEC would need to take 1 million to 1.5 million barrels a day off the market to support oil prices, which have fallen by more than 30% since the summer, but its members didn't bow to the market pressure.
In its report, IEA estimates that oil demand will hit 104 million barrels a day in 2040, from 90 million barrels last year, with Asian countries accounting for two-thirds of overall demand.
Such a production increase would imply $900 billion worth of investment a year through the 2030s in oil exploration and production, IEA says. The organization singled out four key focus areas for future production: the U.S., Canada, Brazil and the Middle East.
Mr. Birol said that oil prices are probably close to rebound, and should be sustained by demand.
Earlier this month, Mr. Birol had warned that Arctic, offshore and unconventional oil projects are facing major challenges with international oil prices around or below $80 a barrel, and warned that oil companies may revise spending downward, potentially hurting future supply.
|February, 16, 23:45:00|
|February, 16, 23:40:00|
|February, 16, 23:35:00|
|February, 16, 23:30:00|
|February, 16, 23:25:00|
|February, 16, 23:20:00|
AOG - The Dubai Electricity & Water Authority (DEWA) is to invest around $22bn on new energy projects across the next five years, with the renewables sector accounting for an increasing share of electricity generation, according to CEO Saeed Mohammed Al Tayer.
TRANSCANADA - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada or the Company) announced net income attributable to common shares for fourth quarter 2017 of $861 million or $0.98 per share compared to a net loss of $358 million or $0.43 per share for the same period in 2016. For the year ended December 31, 2017, net income attributable to common shares was $3.0 billion or $3.44 per share compared to net income of $124 million or $0.16 per share in 2016.
ROSATOM - February 13, 2018, Moscow. – ROSATOM and the Ministry of Scientific Research and Technological Innovations of the Republic of Congo today signed a Memorandum of Understanding on cooperation in the field of peaceful uses of atomic energy.
FRB - Industrial production edged down 0.1 percent in January following four consecutive monthly increases. Manufacturing production was unchanged in January. Mining output fell 1.0 percent, with all of its major component industries recording declines, while the index for utilities moved up 0.6 percent. At 107.2 percent of its 2012 average, total industrial production was 3.7 percent higher in January than it was a year earlier. Capacity utilization for the industrial sector fell 0.2 percentage point in January to 77.5 percent, a rate that is 2.3 percentage points below its long-run (1972–2017) average.