Danos & Curole Bags Multi-Million Dollar Contract for Chevron Liberia

- Danos & Curole Bags Multi-Million Dollar Contract for Chevron Liberia

Wednesday, July 27, 2011
Danos & Curole

Danos & Curole was awarded a multi-million dollar contract from Chevron Liberia to provide drilling support services in Liberia, West Africa.

Danos & Curole's consultant service business will carry out preparation work for exploratory drilling activities off the coast of Liberia for Chevron Liberia and will participate in performing the operations in the first deepwater well in the 4th quarter of 2011.

Executive Vice President, Eric Danos commented, "Danos & Curole is excited to build on its long time partnership with Chevron to explore Liberia. Our focus has been on innovating ways to improve the safety and quality of our services throughout the world, and we believe our
success is recognized through additional opportunities such as this one."

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Commodity Corner: Oil Falls as Dollar Strengthens

- Commodity Corner: Oil Falls as Dollar Strengthens

Monday, July 18, 2011
Rigzone Staff
by Matthew V. Veazey

The price of light sweet crude oil declined $1.31 Monday to settle at $95.93 a barrel. The Brent benchmark also ended the day lower at $116.05 a barrel, or down $1.21 from Friday's settlement.

A stronger dollar against the euro prompted Monday's selloff as investors focused on Europe's ongoing debt woes and concerns about slackening oil demand. A stronger greenback makes dollar-denominated crude oil a less attractive buy for investors using other currencies.

The euro lost value after the European Banking Authority on Friday issued the results of its latest stress test of banks in the Eurozone. Nearly 27 percent of the 90 banks examined fared poorly in the exercise, which predicted how well they could withstand deteriorating economic conditions. Eight of the institutions examined failed the stress test outright while another 16 barely passed.

The WTI benchmark fluctuated from $94.69 to $97.69 during Monday's session while the Brent contract traded within a range from $114.76 to $116.95.

Despite a heat wave that has boosted natural gas futures recently, the front-month contract price remained unchanged at $4.55 per thousand cubic feet Monday. Natural gas peaked at $4.61 and bottomed out at $4.48.

The price of a gallon of gasoline ended the day at $3.10, a three-cent decline from Friday. The intraday range for gasoline spanned from $3.05 to $3.15.

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Commodity Corner: Oil Rises on Weaker Dollar

- Commodity Corner: Oil Rises on Weaker Dollar

Tuesday, July 12, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures ended a two-day losing streak Tuesday on a weaker dollar.

The Federal Reserve released its June 21-22 meeting minutes Tuesday, in which policy makers discussed whether an additional round of monetary stimulus will be needed. Some officials claim another round of quantitative easing will be necessary if economic growth remains weak.

The greenback weakened Tuesday on the pending stimulus and as fears over the European debt crisis eased. The dollar index, which measures the greenback against a basket of major foreign currencies, fell 0.2 percent.

After trading between $93.55 and $97.50, crude for August delivery rose $2.28 to settle at $97.43 a barrel.

Meanwhile, Brent futures settled at $117.75 a barrel, up 51 cents. Brent's gains were curbed on reports that Shell lifted a force majeure on its Nigerian Bonny Light crude oil loadings. The intraday range for ICE Brent crude was $114.95 to $117.83 a barrel.

The front-month Brent crude contract expires on Thursday.

Prices for natural gas continued to increase Tuesday on hot temperatures. According to weather forecasts, the scorching weather is expected to continue until the end of July. Higher temperatures increase the demand for natural gas.

The Energy Information Administration (EIA) forecasted an above-average increase in this year's production in its Short Term Energy Outlook. Also, it reported gas consumption is expected to increase by 21 percent in 2011.

Front-month natural gas gained 3.5 cents Tuesday to end the trading session at $4.312 per thousand cubic feet.

RBOB gasoline also ended the day's trading session higher, settling at $3.098 a gallon. Prices peaked at $3.0998 and bottomed out at $3.025 a gallon.

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Commodity Corner: WTI, Brent Settle Lower

- Commodity Corner: WTI, Brent Settle Lower

Monday, July 11, 2011
Rigzone Staff
by Matthew V. Veazey

Oil futures ended the first day of the week lower as the U.S. Dollar gained strength against other major currencies. A stronger greenback makes oil a less attractive buy for investors holding other currencies.

The price of light sweet crude oil on the New York Mercantile Exchange settled at $95.15 a barrel, marking a $1.15 slide from the previous trading day. The Brent futures price lost $1.09 to end the day at $117.24 a barrel. The Dollar Index, which gauges the price of the greenback against other major currencies, increased 1.1 percent Monday.

Speculation that debt woes in Europe will escalate provided support for the dollar Monday as the focus shifts to Italy, where some believe that a crisis akin to what Greece recently experienced could erupt. Italian government bond yields rose late last week, signaling reduced confidence in Italy's ability to avert default. The WTI futures price peaked at $96.75 and bottomed out at $94.14 Monday while the intraday range for Brent fluctuated from $115.27 to $118.29.

Buoyed by predictions of warmer-than-normal temperatures throughout the Midwest and East Coast during the next two weeks, natural gas futures gained 8.5 cents Monday. The August contract price settled at $4.29 per thousand cubic feet after trading within a range from $4.18 to $4.34.

Gasoline for August delivery lost two cents to end the day at $3.07 per gallon. It fluctuated from $3.03 to $3.10.

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Commodity Corner: Oil Plummets on Stronger Dollar

- Commodity Corner: Oil Plummets on Stronger Dollar

Wednesday, June 15, 2011
Rigzone Staff
by Matthew V. Veazey

Crude oil for July delivery plunged Wednesday as fears of an escalating debt crisis in Greece contributed to a stronger dollar.

Oil lost $4.56 to settle at $94.81 after the dollar index, a gauge of the greenback's value against other major currencies, increased by 1.5 percent Wednesday. The euro lost 2.1 percent against the dollar, weighed down by Greek government officials' scrambling to gain support for austerity measures. The government must agree to such measures to address the country's debt crisis in order to qualify for a bailout from the European Union and International Monetary Fund.

Providing a softer landing for oil was a U.S. Energy Information Administration report showing a larger-than-expected decline in crude oil stocks last week. According to the EIA, total oil inventories decreased by 3.4 million barrels to 365.6 million barrels as of June 10. Analysts surveyed by Platts, meanwhile, had projected a 1.9 million-barrel draw.

Front-month crude traded within a range from $94.01 to $99.95 Wednesday.

July natural gas remained flat during midweek trading, ending the day at $4.58 per thousand cubic feet. Milder-than-normal temperatures throughout the Upper Midwest and Northeast are curbing demand for natural gas to generate electricity for cooling in these regions.

Natural gas peaked at $4.605 and bottomed out at $4.52 Wednesday.

The gasoline futures price lost 15 cents to settle at $2.92 a gallon. During Wednesday's session, July gasoline fluctuated from $2.91 to $3.07.

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Commodity Corner: Crude Rises on Weaker Dollar

- Commodity Corner: Crude Rises on Weaker Dollar

Thursday, June 02, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures inched higher Thursday as the dollar weakened after Moody's announced the U.S. credit rating may undergo scrutiny for a possible downgrade.

Light, sweet crude futures gained 11 cents settling at $100.40 a barrel. Prices fluctuated between $98.46 and $100.90 Thursday. The greenback fell after Moody's Investors Service said it may review lowering the U.S. government's credit rating if Congress does not produce a deal soon to increase the country's debt limit.

For the week ending May 27, U.S. oil inventories rose by 2.9 million barrels, according to the Department of Energy. At 373.8 million barrels, stockpiles reached their highest level since May 2009. The weekly report was published a day later than normal due to the Memorial Day holiday on Monday.

Natural gas for July delivery rose 16.5 cents Thursday, ending the trading session at $4.79 per thousand cubic feet. The Energy Department reported an increase of 83 billion cubic feet in U.S. gas stockpiles, below analyst expectations. The futures price peaked at $4.86, the highest since Jan. 24, and bottomed out at $4.625.

Meanwhile, gasoline futures lost nearly a penny Thursday to settle at $2.97 a gallon. The intraday range for gasoline was $2.925 to $3.00.

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Commodity Corner: Dollar Declines, Crude Climbs

- Commodity Corner: Dollar Declines, Crude Climbs

Tuesday, May 31, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures climbed to a three-week high Tuesday as concerns eased over Europe's debt crisis.

July's oil prices gained $2.11 Tuesday before settling at $102.70 a barrel on the New York Mercantile Exchange. The greenback fell against the euro as the European Union debated on sending additional financial aid to boost Greece's economy. Luxembourg Prime Minister Jean-Claude Juncker said a new aid package will be decided on by the end of June. A weaker dollar increases the appeal of the dollar-denominated commodities making it cheaper for foreign buyers.

After noticing a 40-barrel spill at a pump station in Kansas, TransCanada temporary closed down its Keystone pipeline—further pressuring oil prices Tuesday. The Keystone pipeline carries half a million barrels of crude per day from Alberta to Cushing, Okla., the largest oil storage hub in the U.S.

Oil prices peaked at $103.39 a barrel and bottomed out at $99.60 on Tuesday.

Natural gas for July delivery traded up Tuesday, adding 15 cents to settle at $4.67 per thousand cubic feet. Prices rose to their highest in four weeks on forecasts predicting above-average weather. Hotter weather increases demand for fuel which is required for air conditioning. The intraday range for natural gas was $4.525 to $4.71 per thousand cubic feet.

Gasoline prices also ended higher Tuesday. After fluctuating between $3.07 and $3.165, gasoline settled at $3.15 a gallon, 5.84 cents higher from the previous trading session.

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Commodity Corner: Oil Rises on Forecasts, Dollar

- Commodity Corner: Oil Rises on Forecasts, Dollar

Tuesday, May 24, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures gained nearly 2 percent on a weaker dollar and bullish forecasts Tuesday.

Light, sweet crude settled at $99.59 a barrel, after reaching a high of $100.09 earlier in the trading session. The almost two dollar gain came as the euro recovered a two-month low against the dollar. The greenback slipped against the euro on better-than-expected German business sentiment. The ICE Dollar Index, which gauges the dollar against a basket of foreign currencies, decreased 0.4 percent Tuesday.

On Tuesday, Goldman Sachs increased its year-end target for Brent crude to $120 a barrel, saying it anticipates demand growth will sap global supply and overextend spare oil output capacity. It raised its 2012 forecasts to $140 per barrel from $120. Likewise, rival Morgan Stanley lifted its 2011 forecast to $120 a barrel, previously $100. Morgan Stanley forecasts 2012 Brent to be $130 a barrel from $105.

Meanwhile, natural gas for June delivery lost a penny to settle at $4.345 per thousand cubic feet Tuesday. The drop came on speculation that demand from power plants won't be able to exceed increasing inventories. Prices fluctuated between $4.27 and $4.40 per thousand cubic feet.

After trading between $2.92 and $3.03, June gasoline prices settled at $2.99 per gallon, up 5 cents from Monday.

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Commodity Corner: Oil Rallies As Dollar Slides

Commodity Corner: Oil Rallies As Dollar Slides

Thursday, April 21, 2011
Rigzone Staff
by Matthew Veazey

The U.S. Dollar continued to lose ground against other currencies and oil continued to rally Thursday.

Crude oil for June delivery settled at $112.29 a barrel, gaining 84 cents from the previous day. Oil has rallied this week as the greenback has weakened against other major currencies. A key contributor to the dollar's recent fall was Standard & Poor's announcement Monday that it was revising its long-term U.S. debt outlook from stable to negative.

Since Monday, the euro has strengthened more than two percent against the dollar. In such a case where the dollar weakens against other currencies, oil and other commodities tend to rally because they become a better value for investors holding these other currencies.

Crude oil traded within a range from $111.00 to $112.48 Thursday.

Natural gas also ended the day higher after the U.S. Department of Energy announced a smaller-than-expected increase in the country's natural gas inventories. The federal agency's Energy Information Administration reported that natural gas stocks rose by 47 billion cubic feet last week; analysts had expected a higher increase. A Platts survey of analysts, for instance, had anticipated a build of 49 to 53 Bcf week-on-week.

Given the EIA data, May natural gas increased by a dime to settle at $4.41 per thousand cubic feet Thursday. Gas peaked at $4.42 and bottomed out at $4.27.

May gasoline gained three cents to end the day at $3.31 a gallon. It fluctuated from $3.26 to $3.32 during Thursday's session.

Commodity Corner: Crude Climbs on Weaker Dollar

Commodity Corner: Crude Climbs on Weaker Dollar

Tuesday, April 19, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures retreated Tuesday's earlier losses as the dollar weakened against foreign currencies.

Light, sweet crude gained $1.03 to settle at $108.15 a barrel. Tuesday marks the last trading session for the May contract.

Reaching as low as $105.50 a barrel, oil prices reversed course soaring in afternoon trading. As the dollar weakened, the euro gained strength on speculation that the European Central Bank will further increase interest rates. Additionally, strong economic data from France and Germany outweighed fears of Greece restructuring its debt. A weaker greenback increases crude's appeal amongst foreign buyers, making it cheaper.

Prices also bounced back from Monday's lows after Treasury Secretary Timothy Geithner assured there was "no risk" that the U.S. government debt would lose its top-tier rating.

Meanwhile in the Middle East, OPEC Secretary General Abdullah Al-Badri said there isn't a shortage of oil in the global market, even after the supply disruptions in Libya. OPEC believes an increase in crude production will not decrease oil prices worldwide.

Likewise, natural gas futures for May delivery rose to two-week highs settling at $4.26 per thousand cubic feet. The 12.4-cent increase came on a surprising surge in the Midwest's heating demand Tuesday. An unusual drop in weather across most of the Northwest and upper-Midwest and unexpected warmth in the south has increased demand for fuel. The intraday range for natural gas was $4.13 to $4.28 Tuesday.

As retail gasoline rose, May gasoline continued to decline, trading down 1.97 cents Tuesday. Futures settled at $3.23 a gallon increasing concerns that fuel costs will hinder economic recovery and decrease demand for motor fuel in the U.S. Gasoline prices peaked at $3.259 a gallon, before bottoming out at $3.198 Tuesday.

Commodity Corner: Crude Advances on A Weaker Dollar

Commodity Corner: Crude Advances on A Weaker Dollar

Thursday, April 14, 2011
Rigzone Staff
by Saaniya Bangee

Front-month crude futures gained a dollar Thursday after reversing earlier losses on a weaker greenback. Light sweet crude settled at $108.11 a barrel, up 0.9 percent.

Prior to the dollar's decline, the oil futures price fell to $105.77 during floor trading. The dollar fell against the euro on the U.S. Government's hovering budget battle and reports indicating an increase in jobless claims last week. According to the Department of Labor, applications for initial unemployment benefits soared to their highest level in two months. The Thursday report showed that 412,000 people had applied for claims, reflecting an increase of 27,000 from the previous week.

A weaker dollar increases the appeal of commodities, making it cheaper to purchase with other currencies. The dollar index, which compares the greenback to a basket of foreign currencies, also traded lower at 74.698 Thursday.

Meanwhile, political turmoil continues in the Middle East. Analysts believe Libya's structural problems will not be resolved in the near future but will continue to halt the country's previous exports of 1.5 million barrels a day.

Government reports of an increase in U.S. stockpiles pressured natural gas prices to rise by more than 2 percent Thursday. Prices settled at $4.212 per thousand cubic feet.

The Energy Information Administration (EIA) reported that U.S. gas inventories increased by 28 billion cubic feet last week. As of April 8, stockpiles were 0.6 percent above the five-year average at 1.607 trillion cubic feet.

The intraday range for natural gas was $4.06 to $4.26 per thousand cubic feet.

Gasoline prices lost 0.2 percent, settling at $3.23 a gallon. Thursday's gasoline futures peaked at $3.268, before bottoming out at $3.21.

Crude For May Delivery Approaches $112 A Barrel

Crude For May Delivery Approaches $112 A Barrel



Light crude for May delivery approached the $112 a barrel level, while Brent crude futures rose $1.74 to $124 a barrel.

Buying momentum has continued as hopes fade for a quick resolution of conflicts in Libya. Last week, crude-oil futures traded at $106 a barrel and prices have only climbed since then.

The weakening of the U.S. dollar and uncertainty over a possible U.S. government shutdown helped crude-oil prices increase.

Tudor Pickering Holt analysts said, "Middle East tensions driving further crude-oil gains from these elevated levels will make us incrementally more nervous about energy demand, the economy and inflation."

EnQuest Seeks Tax Allowances to Develop Small Oilfields

EnQuest Seeks Tax Allowances to Develop Small Oilfields

Tuesday, April 05, 2011
Dow Jones Newswires

by  Iain Packham

EnQuest will look into developing small, so far commercially unviable, oil and gas fields in the North Sea if the U.K. government offers incentives to offset the U.K. tax hike on oil production, Chief Executive Amjad Bseisu said Tuesday.

Bseisu told journalists on a conference call that the firm is discussing the matter with the government, but didn't go into further detail.

EnQuest will continue to study options outside of the U.K. if the tax regime here isn't palatable, he said.

Bseisu said that one positive effect from the tax hike is that other companies are looking to sell their U.K. North Sea assets. Prices--especially where large amounts of capital are required for development --have fallen in the last few weeks, he noted.

"We will continue to look at acquisitions in the U.K. and I think we will be able to succeed in acquiring either assets or companies," the CEO said. EnQuest doesn't have any specific targets as yet, but is examining opportunities and has a lot of firepower, he added.
Bseisu said the firm has "cash flow of several hundred million and credit lines of several hundred million," and so could manage an acquisition in the half billion-to-billion dollar range quite easily.

The group's 2010 pretax profit soared to $55.8 million, from $11.0 million in 2009 and revenue rose to $583.5 million from $234.0 million, as oil and gas prices and oil and gas production levels rose significantly.

The company has raised its 2011 production target by 26% to 26,500 barrels of oil equivalent a day, after 2010 pro forma average production increased 55% to 21,074 BOE/D. Bseisu said he is confident of meeting the 2011 target organically.

EnQuest's proven-plus-probable reserves rose around 10% to 88.5 million barrels of oil equivalent.

The company has earmarked around $300 million for capital expenditure in 2011, with $250 million to go on development drilling and facilities and $50 million on exploration and appraisal. In 2010, capital expenditure was around $196.3 million on a pro forma basis.
At the end of 2010, the company had net cash of $41.4 million, after repaying $88.8 million of net debt.

Commodities Report: Gold Hits Record High; Crude Tops $106 a Barrel

Commodities Report: Gold Hits Record High; Crude Tops $106 a Barrel



Commodities rallied to finish higher Thursday as both crude oil and gold futures surged as the first quarter came to a close.

Light, sweet crude oil for April delivery finished up 2.4% to $106.72 a barrel. In other energy futures, heating oil was up 1.7% to $3.09 a gallon while natural gas was up 0.99% to $4.39 per million British thermal units.

Meanwhile, gold futures ended at a record high helped in part by a weaker dollar.

Gold for June delivery finished up $15 to $1,439.90 an ounce. In other metal futures, silver was up 0.78% to $37.80 a troy ounce while copper traded up 0.82% to $4.30.

The U.S. dollar index (DXY) is down 0.36% to $75.84.