Commodity Corner: Oil Down 14.7% for the Week

Commodity Corner: Oil Down 14.7% for the Week

Friday, May 06, 2011
Rigzone Staff
by Matthew V. Veazey

June crude oil returned to triple-digit territory Friday but only temporarily.

Oil ultimately lost $2.62 to settle at $97.18 a barrel, but it peaked at $102.38 after the U.S. Department of Labor reported encouraging nonfarm payroll figures. The agency reported that nonfarm payroll employment added 244,000 jobs last month, beating expectations. In addition, it announced that the private sector added 268,000 jobs during the same period.

The positive development was short-lived, however. Dragging oil back downward were a higher U.S. unemployment rate and a stronger dollar. In the case of unemployment, the Labor Department announced the country's unemployment rate rose from 8.8 to 9.0 percent in April.

Meanwhile, the euro weakened against the dollar on a German media outlet's claim that the Greek government is weighing leaving the euro zone. Greece's Finance Ministry denied the claim, calling the report "completely untrue." A stronger dollar makes crude oil less attractive to investors holding other currencies.

Crude oil bottomed out at $94.63 Friday. Since last Friday, oil has fallen 14.7 percent. The indicators of slowing economic growth, coupled with a higher-than-expected build in inventories as reported Thursday by the U.S. Energy Information Administration, have also ended natural gas' recent rally. Natural gas for June delivery lost 2.5 cents Friday to settle at $4.235 per thousand cubic feet.

June natural gas fluctuated from $4.22 to $4.34 during Friday's session. For the week, gas is down 11 percent.

Front-month gasoline lost a penny to end the day at $3.09 a gallon. The June contract traded within a range from $2.99 to $3.18. Gasoline is down 10.7 percent for the week.

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Nordic: New Lloydminster Well Starts Production

Nordic: New Lloydminster Well Starts Production

Friday, May 06, 2011
Nordic Oil and Gas Ltd.

Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. announced Friday that a new heavy oil well at Lloydminster, Alberta, located at 3D-11-50-02W4 is now on production. This brings to 15 the total number wells that Nordic has a 33 1/3% interest in at Lloydminster.

"The operator of the Lloydminster wells says this new well makes lots of sand which is a sign of a good well," Benson stated. "They will be undertaking a production flush to further enhance production and all signs point in a positive direction."

Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan.

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Oxy Reviews 2010 Progress at Annual Meeting

Oxy Reviews 2010 Progress at Annual Meeting

Friday, May 06, 2011
Occidental Petroleum Corp.

Occidental Petroleum Corp. Executive Chairman Ray R. Irani and Oxy President and Chief Executive Officer Stephen I. Chazen reported the company's 2010 operational, financial and long-term achievements at the company's annual stockholders' meeting Friday in Santa Monica, California.

"Today marks a noteworthy moment for the future of the company. As announced last October, consistent with the Board's long-established succession plan, Steve Chazen was elected as President and Chief Executive Officer. I will continue as full-time Executive Chairman. The Board believes that Occidental will benefit from the continuation of our long and successful partnership," said Irani.

"For 17 years I have had the pleasure of working with Steve. He is widely recognized as one of the best financial minds in the industry. Steve has served in a number of important posts at Oxy, from head of business development, to Chief Financial Officer, to President and Chief Operating Officer."

Chazen noted, "Ray and I have worked side by side during these years. Oxy's achievements have been impressive: record profits, record market capitalization, recurring increases in production, significant reserve replacement, high credit ratings, and a very strong performance in total shareholder return. Oxy's cumulative stockholder return was 914 percent over the past 10 years. It has been a challenging and successful past and we now look forward to a challenging and even more successful future."

In reviewing Oxy's 2010 performance, Irani said, "Oxy delivered record production, a strengthened asset base and solid profitability in 2010, building value for our stockholders while positioning the company for continued growth and top-tier performance."

Oxy increased worldwide production by 5 percent in 2010 to a company-record of 753,000 barrels of oil equivalent (BOE) per day. In addition, the company replaced 150 percent of its production in 2010, adding a total of 409 million BOE in proved reserves.

Oxy ended 2010 with

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute



May 6, 2011

BP Plc (NYSE:BP) said on Friday that an arbitration panel had issued a consent order permitting BP and the Alfa-Access-Renova (AAR) consortium to assign a disputed Arctic exploration opportunity to TNK-BP, a large Russian natural gas venture.

TNK-BP is Russians 3rd largest oil company, and is a 50/50 joint venture between BP and the AAR consortium.

AAR had gone to court to stop BP from entering into a deal with Rosneft, a Russian state-controlled firm, citing their existing contract with BP and their right of first refusal.

BP released a statement saying, "The order also permits the proposed share swap between BP and Rosneft to proceed subject to Rosneft having consented to assign the Arctic opportunity to TNK-BP."

The interim injunction preventing the firms from moving forward with their arctic exploration plans remains in place, pending Rosneft's consent to the deal.

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Forum Expands Completions Products Position

Forum Expands Completions Products Position

Friday, May 06, 2011
Forum Energy Technologies, Inc.

Forum Energy Technologies, Inc. (FET) announced Thursday the acquisition of Phoinix Global LLC, a leading provider of high pressure flow control equipment and products utilized in hydraulic fracturing and flow back of oil and gas wells.

The company provides a complete product line including fluid ends, plug valves, relief valves, chokes, manifolds, manifold trailers and iron transport trucks from its facility in Alice, Texas. Phoinix's products and services strengthen Forum's Production and Infrastructure division, which provides completion products, engineered process and production systems, measurement and monitoring systems, construction and field services, and a full range of valve and other flow control products. Terms of the transaction were not disclosed.

Cris Gaut, FET's chairman and chief executive officer, explained the importance of the acquisition. "Phoinix Global significantly expands our completion products offering and complements our existing Wood Flowline product offering. Phoinix Global has an excellent reputation in the marketplace for customer service, engineering capability and reliability. We are very pleased to partner with the founders of Phoinix, Wade Pinkston, Scott Reeves, Kirk Baxter, and John Farias. Our goal is to help expand Phoinix' business to serve clients across the North American shale plays."

Wade Pinkston, President of Phoinix Global, commented on becoming a part of Forum. "FET is building a great company, and we are pleased to become part of an energetic, growing organization."
Forum Energy Technologies Inc., headquartered in Houston TX., is a global provider of manufactured equipment and applied products to the energy industry. FET's over 2,200 employees provide the products and technologies essential to solving the increasingly complex challenges of the oil and gas industry.

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Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Friday, May 06, 2011
The Bakersfield Californian
by John Cox,

Bakersfield's top oil regulator, Randy Adams, has been suspended with pay over what some suspect is an ongoing turf war between local and Sacramento-based officials over how to review certain drilling-related activities.

The April 15 action appears to stem from Adams' approval of an oil producer's request to increase the volume of hydrogen sulfide -- a toxic drilling byproduct better known as sour gas -- it is allowed to inject into the ground.

Adams' superiors within the state Department of Conservation thought he should have consulted them first -- even though the approval was within his traditional authority, according to a former regulator in charge of such projects.

"It's something that I wouldn't have looked twice at as long as the operator had a legitimate reason to increase ... the injection volumes," said MIchael Stettner, who for about 20 years reviewed such projects as a regulator within the department's Division of Oil, Gas and Geothermal Resources, where Adams serves as deputy supervisor.

Department officials declined to discuss the situation, citing confidential personnel matters.

Adams, a nearly 30-year veteran of DOGGR, said he cannot confirm that the approval was the basis for his indefinite suspension. In fact, he said the department refuses to tell him why it sent him a fax notifying him of the suspension.

But Adams said he has had authority to grant such approvals since taking over the Bakersfield office -- the seat of DOGGR's busiest district -- in 2006.

The situation touches on a simmering dispute over how to regulate underground injection projects, which typically involve returning liquids and gases that come up during the drilling process back underground.

Elena Miller, a lawyer appointed in 2009 by former Gov. Schwarzenegger to head the department, has taken a more cautious approach than her predecessor to underground injection projects.

Oil companies and Kern County lawmakers accuse Miller's staff of dragging their feet on such projects, and say that this costs local jobs and limits production. They note that local offices used to have a greater level of discretion and independence from Sacramento.

The department acknowledges a slowdown in project approvals in recent years, but attributes it to staffing limitations, complex engineering issues and the need to follow state and federal laws protecting drinking water.

Assemblywoman Shannon Grove, R-Bakersfield, has pushed the Brown administration for a clearer process for approval of underground injection projects, and said she expects a resolution soon.

Grove called Adams' suspension "unfortunate" but said she did not know whether he had discretion to approve the volume increase.

"I've never seen his job description," he said.

State Sen. Jean Fuller, R-Bakersfield, also has pushed for a more transparent and streamlined project approval process. She said that although she had no knowledge of Adams' suspension, she hoped it was not related to his approval authority.

"I would be very distressed if I were able to find evidence that this has something to do with the broader ... issuing of permits," she said.

Industry representatives declined to speak specifically about Adams' suspension but they praised his work within the division.

"All I know is he's got an impeccable record," said Rock Zierman, CEO of the California Independent Petroleum Association. "He's worked there for 30 years and he's a valuable asset. I think it's a shame that he's still not there."

Les Clark, executive vice president of Bakersfield's Independent Oil Producers Agency, said the local industry is concerned, especially because assessments on oil production, rather than the state's general fund, cover salaries at DOGGR.

"It's just not good," he said, referring to Adams' suspension. "I'm telling you, it's of concern, especially with no explanations."

"Hopefully they can straighten this thing out and get him in here."

Copyright (c) 2011, The Bakersfield Californian. Distributed by McClatchy-Tribune Information Services.

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TAG Reports More Taranaki Success

TAG Reports More Taranaki Success

Friday, May 06, 2011
TAG Oil Ltd.

TAG Oil Ltd. on Friday reported that the Sidewinder-4 exploration well, located in TAG Oil's 100%-controlled New Zealand Petroleum Exploration Permit 38748, has been confirmed as a light oil and gas discovery. Along with the three previous Sidewinder discoveries, it is TAG Oil's fifth exploration success in the Taranaki Basin in the past six months.

The results from the Sidewinder-4 well indicate that the targeted oil-and-gas-charged Mt. Messenger Formation sandstones extend significantly to the east of the Sidewinder-1 discovery well. As TAG Oil noted in an April 5, 2011, announcement, the Sidewinder-3 discovery well suggested that the Mt. Messenger Formation sandstones extend significantly south of the original Sidewinder-1 discovery as well.

The interpreted total hydrocarbon column at Sidewinder now exceeds 60 meters (196 feet) in thickness, with no water column evident in any of the Sidewinder wells. Together, the four Sidewinder wells drilled to date indicate that the size and scope of the Sidewinder discovery area is much larger than originally anticipated. Furthermore, the entire permit remains lightly explored and prospective for further oil and gas discoveries, with numerous drill-ready prospects.

The Sidewinder-4 well, which was sidetracked to a location down-dip of Sidewinder-3, targeted a fault-bounded 3-D anomaly, which intercepted a gross 29 meter-thick (95 feet) sandstone reservoir. The total depth of Sidewinder-4 is 1410 meters (4,626 feet), with 19 meters (62 feet) of net oil-and-gas-charged sandstones, with electric logs indicating hydrocarbon charge to the base of the sandstone. Free oil was observed over the shakers during the drilling operation from the target zone. And consistent with all of the Sidewinder wells drilled to date, the oil-and-gas-charged sandstones encountered in Sidewinder-4 have excellent porosity and permeability.

TAG is now preparing to commence the flow testing of the Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells in a few weeks' time. All wells will be placed onto production through the Sidewinder Production Station, currently under construction with anticipated completion by mid-year 2011.

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Pepco Holdings Reports Q1 Results, Beats EPS By $0.07, Reaffirms Guidance

Pepco Holdings Reports Q1 Results, Beats EPS By $0.07, Reaffirms Guidance



May 6, 2011

Pepco Holdings, Inc. (NYSE:POM) reported Q1 EPS of $0.27 today, topping the consensus estimate for $0.20 per share. Revenue for the quarter was down 10% year-over-year to $1.63 billion, from $1.82 billion in Q1 of 2010.

Joseph M. Rigby, Chairman, President and Chief Executive Officer said,"Our earnings from continuing operations reflect the positive effects of our investment in utility infrastructure and reasonable regulatory outcomes. During the quarter, we continued to make good progress on a number of important Power Delivery initiatives. The investments made as part of our Reliability Enhancement Plan are on track and reflect our commitment to reduce power outages and improve service to our customers. For the remainder of 2011, we will remain focused on executing our business plan with a focus on improving reliability and the customer experience."

The company reaffirmed its guidance range for 2011 EPS of between $1.10 and $1.25, in-line with the consensus estimate for $1.20 per share.

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N.D. Hits Oil Tax Revenue Milestone

N.D. Hits Oil Tax Revenue Milestone

Friday, May 06, 2011
The Bismarck Tribune, Bismarck, North Dakota
by Rebecca Beitsch, The Bismarck Tribune, N.D.

Instability in the Middle East is one of the contributing factors for a record-breaking month for oil tax revenue in North Dakota.

This is the first time the state has surpassed a $100 million benchmark for tax revenue, thanks to production in March, the most recent data available.

From November 2010 to February of this year, oil has brought in tax revenues hovering around $80 million, but in March that number rose to more than $100 million for the first time.

That brought in $20 million more than in February despite a drop in production of about 2,000 barrels.

The lower production levels didn't affect tax revenue because the taxation formula also relies on the price of crude. That rose about $14 between February and March to rest at $92 a barrel.

Rioting in Egypt in late January followed by a civil war in Libya starting in February and protests in Bahrain in March have all combined to take a toll on the price of oil, which is traded in a global market.

"The market is very sensitive to any kind of unrest like that. It's true that Libya has significant production, but it isn't to the extent that it couldn't be made up somewhere else," said Deputy Tax Commissioner Ryan Rauschenberger, adding that the price swings could be more of an emotional reaction as most Libyan oil isn't imported to America.

"It's more about the unrest than exactly where those barrels were going, and can Saudi Arabia pick up the slack? I think it has more to do with just the fact that it's in a region that supplies such a great deal of the world's oil," Rauschenberger said.

Patrick DeHaan, a petroleum analyst for the website GasBuddy.com, agreed with that interpretation, saying price increases are "very much an emotional reaction."

"The U.S. got 2 million barrels of oil from Libya in December 2010, compared with 34 million from Saudi Arabia," DeHaan said.

He said an increased risk of seeing a change in production is the underlying factor, but there are hundreds of aspects that impact the price of crude oil.

DeHann pointed to a weak U.S. dollar along with a slowly improving economy that has people driving more and creating a greater demand for oil.

Other factors in North Dakota's crude oil price are its quality, but also it's difficulty in accessing refining markets.

"This is top shelf crude oil," said Ron Ness, president of the North Dakota Petroleum Council. He said it's valuable because it can be used for a variety of products, is easy to blend with other types of oil and is just more easily processed than some other types of crude.

What keeps the price lower than it should be is that it is hard to get to market, something Ness said requires knocking 10 percent off the price.

As for the production, Kathy Strombeck, an analyst with the tax department, said levels have been steadily increasing over the past several months because of technology, and more recently, warmer weather.

"Are we producing more oil in North Dakota because of the Middle East unrest? Probably not. We're producing it because of the technology, the leasing, because of the good environment with the business climate here, all those things are why we're producing more oil," Strombeck said. "So there are two reasons North Dakota's oil revenues are doing well. One is certainly the higher price and the other is production."

Strombeck said in the short term she expects several more $100 million-plus months.

Copyright (c) 2011, The Bismarck Tribune, N.D. Distributed by McClatchy-Tribune Information Services.

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Lukoil to Quadruple Overseas Oil Production

Lukoil to Quadruple Overseas Oil Production

Friday, May 06, 2011
Deutsche Presse-Agentur (dpa)

The Russian energy giant Lukoil plans to quadruple its overseas oil production with major projects in Iraq and the Aral Sea region, Interfax reported Friday.

The planned increase will take place over six years.

Lukoil's top overseas project is a joint venture with Norway's Statoil to develop a portion the massive West Qurna oil field, to the west of the Iraqi city Basra.

Initial production from West Qurna is scheduled for 2012 and full production should begin in 2017, company officials said.

The Russian corporation also is the lead member of a multi-national joint venture to develop oil and gas production in the Aral Sea region. The first test well was drilled in 2010.

Lukoil currently obtains approximately 90 per cent of its oil domestically, primarily from long-established fields in west Siberia, where production is slowly falling.

The corporation, which is Russia's second-largest company, would obtain as much as 40 percent of its oil from outside the country by 2017, the report said.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Senergy Opens Business Hub in Stavanger

Senergy Opens Business Hub in Stavanger

Friday, May 06, 2011
Senergy

Aberdeen-headquartered global energy services company Senergy has consolidated its rapid growth in Norway by officially opening major new business and training premises Friday in the region where the company's technical innovation and wells expertise have been pivotal to its success.

Senergy's new business hub in central Stavanger features extensive office accommodation and expanded training facilities to meet growth in its team and an increasing demand for its specialist services. These range from subsurface services, well engineering and well operations to specialised technical training courses and Senergy's proprietary industry leading software products.

The company, which works for the full spectrum of Norwegian oil and gas companies from independents such as Noreco to multi-national operators like Centrica, launched its new premises in Strandkaien by opening its doors to business leaders and demonstrating how Senergy's technical expertise and innovation is helping the region unlock its energy potential.

Senergy's chief executive officer James McCallum, who joined Senergy AS's managing director Oystein Roti at the Stavanger event, said: "Norway is a key region for Senergy and our relocation to larger business premises underlines our commitment to the market. By carving out a niche for ourselves in the delivery of specialist oil and gas technical services, we are well on track to double the size of our Norwegian operations by 2012 and create new employment opportunities for a second consecutive year.

"We have seen more than 20 projects initiated in the past three months alone from our Stavanger base, including providing support to a number of clients in the 21st licensing round, for example Centrica who have successfully secured licenses."

Roti, who was appointed managing director just under a year ago, said the strength of Senergy's wells services was integral to the business's significant growth and the recent appointment of Davide Gaggero as wells manager underpins the focus on the company's well engineering and well operations offering.

"Over the last year, we have invested in our business in Norway by ensuring we have the right people in place. Davide brings a valuable depth of knowledge and experience in drilling project management and complete well engineering and construction, and has been involved in major projects worldwide including Angola, Italy and Gabon.

"Having worked for ENI Norge for the past three years, he also has extensive knowledge and contacts in the Norwegian market and will play a fundamental role in further driving forward and reinforcing Senergy's wells business."

Senergy AS predominantly operates in the Norwegian Continental Shelf where the company's strength is underpinned by the experience that Senergy holds not only in North West Europe but globally. "It is important to remember that Senergy is a global company, which gives us access to a team of over 400 technical specialists, no matter where they sit in the world."

Among current projects that Senergy is involved with is Noreco's exploration activities in Denmark. Senergy is undertaking well planning for the Luna prospect exploration well in the Danish sector which is planned to be drilled in Q3 2011. This project follows on from Senergy delivering project management for the drilling of Noreco's Svanegle prospect in the Norwegian North Sea Continental Shelf which was successfully completed in February this year, and well planning support on the Tasta prospect, which was Noreco's first well as an operator in Norway.

Senergy, which has enjoyed a strong, four-year relationship with Noreco, is also conducting well planning for an exploration well that the independent operator plans to drill in the Barents Sea in Q1 2012.

Other projects include Senergy supporting Centrica with well planning for two drilling prospects in the Norwegian sector. The first is the Butch exploration prospect which will be drilled in Q3 2011 using the Maersk Guardian jack up drilling rig. The second is the Cooper HP/HT (high pressure/high temperature) well in the Haltenbanken sector which is scheduled to be drilled in Q1 2012 using the West Alpha semi submersible drilling rig.

Senergy AS was established in 2005 when the company supported Talisman Energy Norge on the Varg development. Senergy AS has since grown its client portfolio and now supports many of the region's operators including Statoil, OMV and GDF SUEZ with key services encompassing subsurface, well engineering, well operations, geohazard assessment, marine site survey, rig positioning, software design and engineering. Senergy also offers specialist training services with an extensive training programme which covers courses in petrophysics, core analysis, geomechanics (sand production and wellbore stability), reservoir seismic characterisation and geology. The training courses are delivered by Senergy specialists, many of whom are also SPE (Society of Petroleum Engineers) Distinguished Lecturers.

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Sao Tome and Principe Awards Block 3 License to Oranto

Sao Tome and Principe Awards Block 3 License to Oranto

Friday, May 06, 2011
The National Petroleum Agency of Sao Tome and Prin

In the light of the First Licensing Round and following the evaluation of all applications submitted, including the necessary due diligence undertaken by the authorities The National Petroleum Agency (Agencia Nacional do Petroleo, ANP-STP) informs the public that the Government of Sao Tome and Principe has awarded Block 3 to the Oranto Petroleum.

The block covers an area of 4,228 square kilometers and is situated in zone A of the Exclusive Economic Zone.

Oranto is an independent Nigerian company with operations since 1991. The company is an active operator in fourteen blocks in West Africa and Gulf of Guinea.

Within the framework of petroleum legislation in place, a production sharing contract will be negotiated and carried out for the exploration activities on the block.

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DOE Forms Fracking Safety Panel

DOE Forms Fracking Safety Panel

Friday, May 06, 2011
U.S. Department of Energy

U.S. Energy Secretary Steven Chu on Thursday announced a group of environmental, industry and state regulatory experts who will make recommendations to improve the safety and environmental performance of natural gas hydraulic fracturing from shale formations. President Obama directed Secretary Chu to convene this group as part of the President's "Blueprint for a Secure Energy Future" plan to reduce America's oil dependence, save consumers money, and make the U.S. the leader in clean energy industries.

"America's vast natural gas resources can generate many new jobs and provide significant environmental benefits, but we need to ensure we harness these resources safely," said Chu. "I am looking forward to hearing from this diverse, respected group of experts on best practices for safe and responsible natural gas production."

A group of highly respected experts with experience in industry, environmental groups and state regulatory agencies will form a subcommittee of the Secretary of Energy's Advisory Board to conduct the review, and will work to identify, within 90 days of beginning their work, any immediate steps that can be taken to improve the safety and environmental performance of hydraulic fracturing. They will also develop, within six months of beginning their work, consensus recommended advice to the agencies on practices for shale extraction to ensure the protection of public health and the environment.

Membership of the group includes:

• John Deutch, Institute Professor at MIT (Chair)
  John Deutch served as Director of Energy Research, Acting Assistant Secretary for Energy Technology and Under Secretary of Energy for the U.S. Department of Energy in the Carter Administration and Undersecretary of Acquisition & Technology, Deputy Secretary of Defense and Director of Central Intelligence during the first Clinton Administration. Deutch also currently serves on the Board of Directors of Raytheon and Cheniere Energy and is a past director of Citigroup, Cummins Engine Company and Schlumberger. A chemist who has published more than 140 technical papers in physical chemistry, he has been a member of the MIT faculty since 1970, and has served as Chairman of the Department of Chemistry, Dean of Science and Provost.
• Stephen Holditch, Head of the Department of Petroleum Engineering, Texas A&M University
  Stephen Holditch serves as Head of Texas A&M's Harold Vance Department of Petroleum Engineering and serves on the Boards of Directors of Triangle Petroleum Corporation and Matador Resources Corporation Texas. In 1977, Dr. Holditch founded S.A. Holditch & Associates, a petroleum technology consulting firm which provided analysis of low permeability gas reservoirs and designed hydraulic fracture treatments. He served as president of the company until it was bought by Schlumberger in 1997. Holditch has worked for Schlumberger, Shell Oil Company and Pan American Petroleum Corporation.
• Fred Krupp, President, Environmental Defense Fund
  Fred Krupp has overseen the growth of EDF into a recognized worldwide leader in the environmental movement. Krupp is widely acknowledged as the foremost champion of harnessing market forces for environmental ends. He also helped launch a corporate coalition, the U.S. Climate Action Partnership, whose Fortune 500 members - Alcoa, GE, DuPont and dozens more - have called for strict limits on global warming pollution. Krupp is coauthor, with Miriam Horn, of New York Times Best Seller, Earth: The Sequel. Educated at Yale and the University of Michigan Law School, Krupp was among 16 people named as America's Best Leaders by U.S. News and World Report in 2007.
• Kathleen McGinty, Former Secretary of the Pennsylvania Department of Environmental Protection
  Kathleen McGinty is a respected environmental leader, having served as President Clinton's Chair of the White House Council on Environmental Quality and Legislative Assistant and Environment Advisor to then-Senator Al Gore. More recently, she served as Secretary of the Pennsylvania Department of Environmental Protection and as Chair of the Pennsylvania Energy Development Authority. McGinty is Senior Vice President of Weston Solutions, Inc. and a Director at NRG Energy.
• Susan Tierney, Managing Principal, Analysis Group
  Susan Tierney is chairman of the Board of the Energy Foundation, and serves on the Boards of Directors of the World Resources Institute and the Clean Air Task Force. Until recently, she was a co-chair of the National Commission on Energy Policy. Currently, she chairs the National Petroleum Council Policy Subgroup's study of North American natural gas and oil resources. Dr. Tierney served as Assistant Secretary for Policy at the U.S. Department Energy during the Clinton Administration. In Massachusetts, she served as Secretary of Environmental Affairs, Chair of the Board of the Massachusetts Water Resources Agency, Commissioner of the Massachusetts Department of Public Utilities and executive director of the Massachusetts Energy Facilities Siting Council.
• Daniel Yergin, Chairman, IHS Cambridge Energy Research Associates
  Daniel Yergin is the co-founder and chairman of IHS Cambridge Energy Research Associates. He is a member of the Board of the United States Energy Association and a member of the U.S. National Petroleum Council. He has chaired the U.S. Department of Energy's Task Force on Strategic Energy Research and Development. Yergin is also CNBC's Global Energy Expert and the author of the Pulitzer Prize-winning book, The Prize: The Epic Quest for Oil, Money and Power.
• Mark Zoback, Professor of Geophysics, Stanford University
  Mark Zoback is the Benjamin M. Page Professor of Geophysics at Stanford University. He was co-principal investigator of the San Andreas Fault Observatory at Depth project (SAFOD) and has been serving on a National Academy of Engineering committee investigating the Deepwater Horizon accident. He was the chairman and co-founder of GeoMechanics International and serves as a senior adviser to Baker Hughes, Inc. Prior to joining Stanford University, he served as chief of the Tectonophysics Branch of the U.S. Geological Survey Earthquake Hazards Reduction Program.

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Unemployment Rate Jumps to 9% In April, Economy Adds 244,000 Jobs

Unemployment Rate Jumps to 9% In April, Economy Adds 244,000 Jobs



May 6, 2011

The American economy added 244,000 jobs in April, the largest increase in almost a year, but the unemployment rate actually rose to 9% from the reported 8.8% in March, as more people actively looked for work, the U.S. Bureau of Labor Statistics reported today.

The private sector added 268,000 jobs, with state and local governments continuing to make cuts in an effort to balance their budgets.

Economists had expected just 175,000 jobs to be added in the month. The change in total nonfarm payroll employment for February was revised up to a gain of 235,000 from 194,000 and the change for March was also revised up, from 216,000 to 221,000.

Since the low in February 2010, total payroll employment has grown by 1.8 million in the U.S. Private sector employment has increased by 2.1 million over the same period.

Employment gains for the month were led by hiring in the retail (57,000), professional and business services (51,000), health care (37,000), and leisure and hospitality (46,000). Manufacturing employment grew 29,000, and mining grew 11,000 in the month.

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Buckeye Partners Reported In Line Q1 Results, Top Line Surged 71%

Buckeye Partners Reported In Line Q1 Results, Top Line Surged 71%



May 6, 2011

Buckeye Partners (NYSE:BPL) reported Q1 EPS of $0.79, in line with consensus estimates. Revenues for the quarter rose 71.3% year-over-year to $1.25 billion, ahead of consensus estimates of $860.0 million.

The company announced that its general partner declared a cash dividend of $1.00 per limited partner unit for the quarter ended March 31, 2011.

Forrest E. Wylie, Chairman and CEO stated, "Buckeye's overall operating results for the first quarter of 2011 were strong,. Adjusted EBITDA, our primary measure of performance, increased by 36.6 percent year over year. Although the primary driver of the increase is attributable to recent acquisitions, we saw a 7.9 percent year over year increase in the Adjusted EBITDA of our Pipelines & Terminals segment, which largely represents organic growth."

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Cimarex Energy Reports Mixed Q1, EPS Misses By $0.21, Revenue Beats

Cimarex Energy Reports Mixed Q1, EPS Misses By $0.21, Revenue Beats



May 6, 2011

Cimarex Energy Co. (NYSE:XEC) reported Q1 EPS of $1.37 today, missing the consensus estimate for $1.58 per share. Revenues for the quarter were down 5% year-over-year to $426.60 million, beating the consensus estimate for $413.69 million.

F.H. Merelli, Chairman, President and Chief Executive Officer said, "We remain focused on profitable growth and maximizing our return on investment. We have a large inventory of drilling opportunities and limited lease expirations."

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Constellation Energy Reports Disappointing Q1, But Reaffirms 2011 Guidance

Constellation Energy Reports Disappointing Q1, But Reaffirms 2011 Guidance



May 6, 2011

Constellation Energy Group (NYSE:CEG) reported Q1 EPS of $0.63 today, falling short of the consensus estimate for $0.96 per share. Revenues for the quarter were down about 0.5% year-over-year to $3.57 billion, well below the consensus estimate for $4.12 billion.

Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy said, "Our continuing strategy to grow assets and expand our industry-leading, customer-driven business got off to a fast start in 2011, beginning with our integration of Boston Generating's fleet of gas plants in January and continuing with our recent expansion into the residential competitive electric market in Illinois."

Constellation Energy reaffirmed its 2011 EPS guidance in the range of $3.10 to $3.40, in-line with the consensus estimate for $3.24 per share, and its 2012 EPS guidance range of $2.40 to $2.70, also in-line with the consensus estimate, which stands at $2.51 per share.

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Total Announces Offshore Angola Discovery

Total Announces Offshore Angola Discovery

Friday, May 06, 2011
Total S.A.

Total announced Friday that its subsidiary, TEPA (Block 17/06) Limited, and Sociedade Nacional de Combustiveis de Angola (Sonangol E.P.), have discovered hydrocarbons in the north-eastern area of the deep offshore block 17/06.

Drilled in a water depth of 445 meters, the Canna-1 well discovered hydrocarbons in reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33 API) during a production test.

Sociedade Nacional de Combustveis de Angola (Sonangol) is the concessionaire of the Block 17/06. TEPA (Block 17/06) Limited is the operator of the Block 17/06 with a 30% stake. Total's partners in the block are Sonangol Pesquisa e Producao S.A. (30%), Sonangol Sinopec International (SSI) Seventeen Limited (27.5%), ACREP Bloco 17 S.A. (5%), Falcon Oil Holding Angola S.A. (5%) and PARTEX Oil and Gas (Holdings) Corporation (2.5%).

Total has been present in Angola since 1953. In Angola, Total operated 460,000 barrels oil equivalent per day (boe/d) in 2010, and its SEC equity production amounted approximately 163,000 boe/d. This production comes essentially from Blocks 17,0 and 14.

Deep offshore Block 17, operated by Total with a 40% interest, is Total's principal asset in Angola. It is composed of four major zones: Girassol-Rosa and Dalia, which are currently producing; Pazflor, a project under development for a production start in the second half of 2011; and CLOV (based on the Cravo, Lirio, Orquidea and Violeta discoveries), for which the development was recently launched.

Total is also the operator with a 30% stake in the ultra deep offshore Block 32, on which 12 discoveries were made, confirming the oil potential of the block. Pre-development studies for a first production zone in the central south eastern portion of the block are underway.

In addition, the Angola LNG project for the construction of a liquefaction plant near Soyo is designed to bring the country's natural gas reserves to market. This project, on which Total holds a 13.6% stake, will be supplied by the associated gas from the fields on Blocks 0, 14, 15, 17 and 18. The project is underway with production expected to begin in 2012.

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Subsea 7 Wins Statoil Contract

Subsea 7 Wins Statoil Contract

Friday, May 06, 2011
Subsea 7 S.A.

Subsea 7 S.A. announced Friday the award of the Fossekall-Dompap Marine Installation and Pipelay Contract with an approximate value of $180 million from Statoil, close to the Norne FPSO in the Norwegian Sea.

The contract scope includes transport and installation of 2 of 4 slots Integrated Template Structures (ITS) at the Fossekall Field, and 1 of 4 slots ITS at the Dompap Field, fabrication and installation of the 25.7km long 12/14 ID insulated production pipeline with Direct Electrical Heating (DEH) piggyback cable from Norne FPSO to Dompap and an in-line Tee at Fossekall. The scope also includes installation of manifolds, flexible flowlines and jumpers, flexible riser, dynamic and static umbilicals, electrical cable, DEH riser, DEH feeder cable system and tie-in and pre-commissioning of the full system.

The scope of work comprises of project management and engineering as well as design, fabrication and procurement of GRP Covers, Riser Base, PLET, in-line Tee and linepipe coating.

Engineering will commence immediately, with all offshore operations to be performed during 2012.

Stuart Fitzgerald, Subsea 7's VP, Norway, said: I am delighted that Statoil has chosen Subsea 7 to execute this significant project. The award builds on our successful and long-standing partnership with Statoil, which continues to create sustainable value for both parties through integrated working and alignment of interests and expertise. We look forward to helping to bring this important development on-stream in a safe and timely manner.

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SeaBird Announces 2D Contract Awards

SeaBird Announces 2D Contract Awards

Friday, May 06, 2011
SeaBird Exploration Limited

SeaBird Exploration Limited on Friday issued an update regarding its business activities as set out below:

Aquila Explorer has commenced a short 4D survey in Australia for an oil major and will then commence a multi client survey for one month until mid to end June. SeaBird has also received a Letter of Award for a 4,400 line-km survey in Indonesia to follow in direct continuation. The vessel will be employed until early August 2011.

SeaBird Exploration PLC "SeaBird" is a global provider of marine solutions for seabed acquisition of 3D/4C/4D multimode seismic data with OBN operations, marine 2D and 3D seismic data, and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow water 2D/3D market.

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Enterprise to Boost MAPL Capacity

Enterprise to Boost MAPL Capacity

Friday, May 06, 2011
Enterprise Products Partners L.P.

Enterprise Products Partners L.P. (EPD) on Thursday announced a planned expansion of the Rocky Mountain segment of the partnerships Mid-America Pipeline (MAPL) system, which is expected to add up to 85,000 barrels per day (BPD) of incremental transportation capacity for natural gas liquids (NGL).

Supported by shipper commitments obtained during a fourweek open season that ended April 29, 2011, the project will include looping the existing pipeline system with up to 290 miles of 16-inch diameter pipeline, as well as pump station modifications. The additional capacity is designed to accommodate growing natural gas and NGL production from major basins in Utah, Colorado, Wyoming and New Mexico. Several new natural gas processing plants are being constructed in the Uinta, Piceance, and Greater Green River basins that should fill the expansion by 2014.

We have received strong demand for this expansion of the Mid-America system, said A.J. Jim Teague, executive vice president and chief operating officer of Enterprises general partner. Shippers executed 10-year, firm, ship-or-pay transportation agreements representing a total initial commitment of 38,500 BPD with options which could ultimately increase the total expansion to 85,000 BPD. We believe this expansion will enable producers to maximize the value of their Rocky Mountain NGL production by providing them access through our integrated system to the largest domestic NGL market, located on the Texas Gulf Coast. The transportation agreements and our construction plans provide us the flexibility to increase capacity efficiently and cost-effectively while giving producers additional time to finalize their drilling and natural gas processing programs.

Subject to the approval of certain regulatory agencies, the project is expected to begin service in the third quarter of 2014.

The Rocky Mountain portion of the MAPL system extends more than 3,000 miles and transports NGLs from the Overthrust and San Juan basin areas to Enterprises Hobbs fractionator in Gaines County, Texas. An interconnect to the partnerships approximately 1,300-mile Seminole Pipeline at Hobbs, allows shippers to reach the partnerships NGL fractionation facility in Mont Belvieu, Texas, one of the largest of its kind in the world. Enterprise is in the process of increasing its fractionation capabilities by 75,000 BPD, bringing total capacity at the complex to 375,000 BPD following its expected completion in the fourth quarter of 2011.

Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. EPDs assets include approximately: 50,200 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico.

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Kvaerner Names Gjesdal CFO

Kvaerner Names Gjesdal CFO

Friday, May 06, 2011
Aker Solutions ASA

Eiliv Gjesdal has been appointed Chief Financial Officer (CFO) of Kvaerner. Gjesdal is following the appointment of Jan Arve Haugan as President and Chief Executive Officer (CEO).

Gjesdal joined Aker Solutions in 2002 and has extensive experience from finance functions in Aker Solutions as well as a background as a state authorized public accountant. Gjesdal started his career as an auditor with Arthur Andersen & Co working with large Norwegian companies.

"We are very pleased with being able to appoint a CFO of Gjesdal's stature and experience to the management team of Kvaerner. Gjesdal has an impressive background from Aker Solutions combined with a solid understanding of finance and accounting, says Jan Arve Haugan, CEO of Kvaerner.

Gjesdal will enter the position as CFO with immediate effect.

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TAM Targets Multi-stage Frac Market

TAM Targets Multi-stage Frac Market

Friday, May 06, 2011
TAM International, Inc.

TAM International, Inc., an independent oilfield service company providing inflatable and swellable packers, has formed a new company, TAM Completion Systems, Inc., to provide integrated completion solutions.

The system includes TAM FREECAP swellable packers, liner top packers, frac sleeves and related accessory items.

Jack Newberry, vice president, U.S. and Latin America at TAM International, will run the new wholly owned subsidiary. Newberry will retain his current title and will have added responsibilities with the new company.

TAM International has been supplying FREECAP swellable packers to the shale operators for years with great success, Bentley Sanford, president of TAM International said. TAM Completion Systems provides a vehicle to develop and provide a full-service solution for the growing multi-stage frac market.

The key to a successful multistage frac is assuring proper zonal isolation. TAM, providing inflatable and swellable packers, has a strong track record in this market. Initially TAM will use its own packers and service tools, while using the best options for other equipment needed.

TAM Completion Systems will service TAM Internationals existing customer base and expects to gain market share by serving those customers who prefer to purchase a complete lower completion solution.

TAM Completion Systems expects significant growth as we build the business capabilities in the United States and internationally, Newberry said. By creating a new organization to pursue this exciting, high-growth market, we will be able to increase TAM product sales while providing additional value-added services to our customers.

TAM Completion Systems will be located in a recently acquired building across from TAM Internationals Houston headquarters. The building is currently being renovated for the new company and for several other TAM departments, and it should be complete in July 2011.

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Lauritzen Marks Brazil Offshore Services Milestone

Lauritzen Marks Brazil Offshore Services Milestone

Friday, May 06, 2011

Lauritzen Offshore has fulfilled the first part of its strategy to become an important partner in the offshore services market with special focus on deep water employment offshore Brazil.

Recently Lauritzen Offshores unique Accommodation and Support Vessel, Dan Swift, was contracted by Petrobras. Prior to its employment for Petrobras, Dan Swift was employed offshore Brazil by Statoil and most recently by a Shell project offshore Nigeria.

In Brazil, Dan Swift will be part of Petrobras new fleet of service units for maintenance and safety (Unidade de Manutencao e Seguranca). Dan Swift will be deployed to accommodate close to 300 people for Petrobras in Campos Basin offshore Brazil.

Dan Swift is the first monohull accommodation and support vessel to service the high end of the offshore market. In addition to its modern accommodation facilities, the dynamically positioned DP-2 vessel is equipped with two independent offshore telescopic gangways, which have proved very efficient for safe personnel transfer while Dan Swift remains constantly connected to fixed and floating offshore installation in DP mode.

In addition to Dan Swift, Lauritzen Offshore has three dynamically positioned shuttle tankers on long-term contracts with the Brazilian company.

The long-term contract for Dan Swift is due to commence in July 2011 and the combined contract value of Lauritzen Offshores engagement with the Petrobras group exceeds USD 550 million.

"We are extremely pleased with our cooperation with Petrobras, which is one of the biggest and most demanding energy corporations in the world. We have in our strategy been focused to serve Petrobras in Brazil," says Torben Janholt, President and CEO of J. Lauritzen A/S.

"With the recent employment for Dan Swift, Lauritzen Offshore has not only fulfilled the initial part of its strategy, but also confirmed our ability to establish long-term business relations with some of the most demanding customers in the offshore services market. Top performance, quality and safety play an important part in this industry," says Jesper Kragh Andresen, President of Lauritzen Offshore Pte. Ltd.

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