Дорогие друзья! Больше трех лет я рассказываю вам об основных новостях, событиях, трендах на мировом рынке нефти и газа. Я делаю это бесплатно и без рекламы. Поэтому я прошу вас о помощи. Wognews нуждается в развитии. Вас больше 20 000 человек из более чем 80 стран мира. Если каждый пожертвует небольшую сумму денег, 500 или 1000 рублей, или больше, wognews станет лучше. Спасибо, Владимир Виноградов, основатель wognews.

Dear friends! For more than three years I've been telling you about the main news, events, trends in the world oil and gas market. I do it for free and without advertising. Therefore I ask you for help. Wognews needs development. You are more than 20 000 people from more than 80 countries. If each donate a small amount of money, $10, $20, $30 or more, wognews will become better. Thank you, Vladimir Vinogradov, the founder of wognews.
2015-12-23 19:20:00

CONOCO: TO REACT QUICKLY

CONOCO: TO REACT QUICKLY

ConocoPhillips will emphasize North American unconventional oil and gas projects amid depressed oil and gas prices because technology is still driving costs down and improving their economics, Chief Executive Officer Ryan M. Lance said.

"I can't rely on picking a commodity price to set my budget and make my plans. But I know what wins in a low-price environment, which are low cost-of-supply investments," he said during an appearance at the Council for Foreign Relations in New York.

"You also need a low cost structure and a strong balance sheet for a strong credit rating with good access to the debt markets," Lance said. "A company like ours also needs to be able to react quickly to developments." 

The Houston independent announced a $7.7-billion capital budget for 2016, down 55% compared with 2014's spending plan and 25% less than what it expects to spend in 2015. Like other companies that work exclusively upstream, ConocoPhillips has had to react to a 60% plunge in its revenue after what Lance described as "a hyperinflation increase" following the 2008-09 recession. 

"I don't necessarily know where prices will go in the next 2-3 years, but I know what kind of portfolio a company like ours needs," he said. "That involves being able to invest in low-cost-of-supply investments to manage through a period of uncertainty. We're trying to have that kind of portfolio to survive in such a volatile environment."

ConocoPhillips is looking at North American unconventional oil and gas projects fitting that description, Lance said. It has largely withdrawn from offshore development, although he thinks it will be needed within the next 20 years.

'In very early innings'

"We just see more competitive opportunities with our North American unconventional position, where we've seen what technology can do," Lance said. "I'm convinced we're still in the very early innings there. When we apply that, we see a lot of running room in our space. Remember, 90% of the wells drilled in America are drilled by independent producers like ConocoPhillips."

Lance said he expects to see more distress sales if $35-40/bbl prices persist through 2016. "We're deferring investments but trying to sow seeds for the next recovery when commodity prices start to improve. Most people see that possibly occurring at the end of next year," he said.

Meantime, he said he is reviewing how much deflation the company is capturing in lower service and other costs. "We're trying to attack the entire supply chain and reduce costs," Lance said.

Repealing the 1975 ban on exporting US-produced crude oil would be a significant help since it creates a price differential because new US tight oil production is largely stranded, he said. "If we continue the growth and development of our unconventional oil resources, we'll be faced with three choices: expanding refineries, shutting in production, or exporting crude," Lance said.

"Historically, the quality of US crude was above global crude in the Brent market, and we used to sell it at a premium," he said. "Today, US crude trades about $2/bbl below global prices. The problem is that when refiners take their plants into turnaround for maintenance, we've seen that blow out to as much as $20/bbl, which is a serious problem. That's why the crude export ban needs to be repealed."

Little near-term impact

Lance spoke the same day House and Senate Appropriations Committee leaders released a 2016 omnibus appropriations bill which included a provision to repeal the crude export ban (OGJ Online, Dec. 16, 2015). "I suspect that the way the market is oversupplied, there would be little impact in the near term," he told his CFR audience.

"In the next 3-5 years, we could send 500,000-2 million b/d of exports, which would level out some of the global market's volatility," he said. "It won't be a big number, but it will help us maintain investments and survive artificial price blowouts when refineries go into turnaround."

US crude exports would be better-suited for simple refineries in South America and Europe than in Asia, where transportation costs would be higher, Lance said. "We've actually exported some of our Alaskan crude to Korean refineries because production there is not subject to the export ban," he said.

Asked if climate-change policies could affect global demand growth, Lance said that ConocoPhillips looks at several different scenarios. "This past October, the board looked at a hyper-regulation scenario of what would happen under a 2°C. goal," he said. "While we don't know where prices are going, it's important to test your strategy against these signposts. More important, you need to know the no-regrets decisions you make under any scenario."

ConocoPhillips works in countries that already have put a price on carbon emissions, and was one of the few US producers to support cap-and-trade legislation US Reps. Henry A. Waxman (D-Calif.) and Edward J. Markey (D-Mass.) developed which the House passed 10 years ago, Lance said. "We believe in market-based mechanisms, so we'd like the government to not pick winners and losers and be neutral."

Lance said, "The question is how you get affordable energy to the ends of the earth. People in some countries are burning wood. Parts of China are badly polluted. We'll still need fossil fuels. There is no pathway I've seen by anybody that renewables will get us there. It takes at least a century to change an energy system. Energy needs are growing. So is the developing world. Those countries need to have access to affordable energy."

-----

More:  

CONOCO SELLS RUSSIA

CONOCO CUTS $7.7 BLN 

CONOCO LOSS $1.1 BLN 

CONOCO CUTS 10% 

CONOCO SELLS INDONESIA 

CONOCO SELLS NORWAY 

CONOCO SELLS U.S. ASSETS

 

 

Tags: CONOCO, PHILLIPS, OIL, GAS, PRICES

Chronicle:

CONOCO: TO REACT QUICKLY
September, 22, 09:20:00

OIL PRICE: NOT ABOVE $57

International benchmark Brent crude futures were at $56.51 a barrel at 0644 GMT, up 8 cents, or 0.14 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 12 cents, or 0.24 percent, at $50.67 per barrel.

CONOCO: TO REACT QUICKLY
September, 22, 09:15:00

СОТРУДНИЧЕСТВО АЛЖИРА И РОССИИ

Руководители энергетических ведомств России и Алжира обсудили состояние и перспективы двустороннего сотрудничества, а также совместную деятельность в многосторонних форматах, в том числе взаимодействие в рамках Форума стран-экспортеров газа. Также речь шла о взаимодействии в рамках соглашения ОПЕК+ по сокращению объемов добычи нефти. Стороны подтвердили приверженность исполнению взятых обязательств по достижению скорейшей ребалансировки нефтяного рынка.

CONOCO: TO REACT QUICKLY
September, 22, 09:10:00

ГАЗ РОССИИ ДЛЯ МАРОККО

Александр Новак отметил, что Россия занимает лидирующие позиции в мире в области топливно-энергетического комплекса, в частности, первое место по добыче нефти, второе место по добыче газа. «При этом Россия - номер один по экспорту газа. Мы добываем 670 млрд кубических метров газа, из них 220 млрд поставляем в другие страны различными способами – трубопроводным и сжиженным», - подчеркнул Министр.

CONOCO: TO REACT QUICKLY
September, 22, 09:05:00

НОВЫЕ ТЕХНОЛОГИИ РОССИИ

Кирилл Молодцов также сообщил о применении новых технологий в сфере нефтегазодобычи. «Из общего количества технологий, а их насчитывается примерно 600, более 300 производятся в России. Более двухсот имеют российские наработки и аналоги, то есть практически имеют стадию разработки проекта. Есть технологии, которые нас сильно волнуют, и мы будем развивать их дальше. Это абсолютно автономные системы добычи, окончание морских месторождений, забуривание, возможности создания и развития проектов в Арктике», - заключил Кирилл Молодцов.

All Publications »
Exchange Rates
Date: 00:00 00:00
USD 0.00 0.00
EUR 0.00 0.00
GBP 0.00 0.00
UAH 0.00 0.00
ADR bid ask
GAZPROM 0.000.00
LUKOIL 0.00 0.00
ROSNEFT 0.00 0.00
SURGUTNEFTEGAZ 0.000.00
TATNEFT0.00 0.00