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Showing posts with label plan. Show all posts
Showing posts with label plan. Show all posts

Friday, September 9, 2011

API: Obama's Jobs Plan a 'Missed Opportunity'

- API: Obama's Jobs Plan a 'Missed Opportunity'

Friday, September 09, 2011
American Petroleum Institute

API President and CEO Jack Gerard called the president's jobs plan a 'missed opportunity' and said the oil and natural gas industry could create more than a million new jobs for Americans and more revenue for our government with a few sensible changes in national energy policy.

"The president missed an opportunity to pick the low hanging fruit of job creation," said Gerard. "Allowing the responsible development of more of America's vast domestic oil and natural gas resources could generate more than one million new jobs in just seven years, with thousands of shovel-ready jobs that could be created almost immediately."

Gerard cited a study released this week by Wood Mackenzie (PDF file), sponsored by API, that shows the oil and natural gas industry can create 1.4 million additional jobs and more than $800 billion in additional government revenue by 2030.

"Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction," Gerard said. "It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies, and actually reduce revenue to the government over time."

The oil and natural gas industry actually created jobs in August, a month when there were zero net jobs created in the overall economy, according to the Bureau of Labor Statistics.

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Editorial: A Jobs Plan that Really Works

- Editorial: A Jobs Plan that Really Works

Friday, September 09, 2011
Louisiana Oil & Gas Association

Last night, President Obama addressed a joint session of Congress to discuss his plan to generate jobs, instill some sense of confidence in the market, and give a greatly needed jolt to the U.S. economy. What was meant to be the "speech of all speeches" turned out to be politically charged campaign rhetoric designed to place the deteriorating economic situation on a do-nothing Congress.

For the first time, the President acknowledged the fact that our nation's economy has stalled. And in an effort to get it going again, President Obama will propose his "American Jobs Act" as the solution to our stagnant economy.

From what was relayed in his speech, the "American Jobs Act" calls for approximately $450 billion to be spent over the next year on a number of initiatives that include infrastructure projects, tax credits for employee raises, an extension of jobless insurance, and money for the hiring of teachers nationwide.

First, let's discuss the positives. To the President's credit, he showed a willingness to work side by side with American businesses and acknowledged that there are many over-burdensome regulations that hinder business growth. His jobs plan calls for tax credits for business owners that hire unemployed workers and a 50% payroll tax cut for small businesses. These are certainly positive solutions that will support our business community and stimulate the economy.

Now, let's talk about the bad news. What was missing from the speech was an explanation as to how he will find the money to pay for these initiatives. How do we generate nearly one-and-a-half trillion dollars at the same time the Congressional "Super Committee" searches for over $1.5 trillion in cuts? Have we forgotten that our nation is bankrupt? Have we also forgotten that nearly 42% of Americans aren’t paying any taxes?

Let's take a look at some numbers. Currently, there are 14 million Americans that are unemployed. Approximately, 7.17 million of those potential workers are collecting unemployment insurance. Nearly 2.4 million jobs have been lost since President Obama took the oval office. The jobless rate in the U.S. has hovered around 9.0% or higher for 26 of the past 28 months. A good sign of how bad things are is the fact that long-term unemployment is at its highest levels since the Great Depression of the 1930s.
So, for the sake of the argument, let's assume that President Obama’s re-election depends on gaining back those jobs that have been lost. Let’s also assume that raising taxes in an economic depression is political suicide. With that said, what if an industry could offer cutting those unemployment numbers in half?

Releasing the stranglehold on America's oil and gas industry can generate those jobs and ensure sound economic growth without one tax increase.

In its recent study, the American Petroleum Institute found that U.S. policies which encourage the development and exploration of natural resources could, by 2030, increase domestic oil and natural gas production by over 10 million boed, generate 1.4 million jobs, and raise over $800 billion in government revenue.

In his speech, President Obama called for more products sold around the world stamped with the slogan, "Made in America." While our manufacturing sector has a long way to go, let's start simple by ensuring that the energy we consume here at home has the stamp, "Produced in America."

West Wing Week: 9/9/11 or "American Jobs Act"


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Wednesday, August 31, 2011

Antrim Submits Development Plan for N. Sea Causeway Field

- Antrim Submits Development Plan for N. Sea Causeway Field

Wednesday, August 31, 2011
Antrim Energy Inc.

Antrim, a partner in the Causeway Field located in UKCS Block 211/22a South West Area and Block 211/23d (Antrim 35.5%), announced submission of the final Field Development Plan ("FDP") to the Department of Energy and Climate Change ("DECC") and that Board approval has been gained from partners to progress into the development phase. DECC approval of the Causeway FDP is anticipated during 2011.

The Causeway FDP includes a production well and a water injection well in the East and Far East fault panels and will utilize existing wells on the field drilled during the appraisal phase. The production well will be completed with dual electrical submersible pumps and first oil is anticipated in mid 2012. Hydrocarbons will be transported to and processed at the Cormorant North platform operated by TAQA Bratani Limited before being exported to the Sullom Voe terminal for sale. Antrim's reserves evaluator, McDaniel and Associates Consultants Ltd., estimate 8.9 million barrels of proved plus probable oil reserves (Antrim net 3.2 million barrels) from the East and Far East fault compartments (as of December 31, 2010). Development costs net to Antrim are estimated at $32 million, inclusive of $21.8 million associated with the previously announced sale of Antrim Causeway (N.I.) Limited (Aug. 9, 2011). Commitments are now in place for all long lead equipment and the operator has awarded a letter of intent for the main subsea installation contract to Technip UK Limited.

The Causeway development plan includes an option to develop the Central panel, which is still under review by the partners and not included in the above referenced reserves or costs.

Stephen Greer, CEO of Antrim, commented, "The submission of the FDP for Causeway marks a significant milestone for Antrim, demonstrating a clear and defined path to first oil production from the Company's UK North Sea properties."

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Tuesday, August 30, 2011

Rosneft and ExxonMobil Plan $3.2B Program in Black, Kara Seas

- Rosneft and ExxonMobil Plan $3.2B Program in Black, Kara Seas

Tuesday, August 30, 2011
ExxonMobil Corp.

Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology and expertise sharing activities.

The agreement, signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

In the course of these projects, the companies will use global best practices to develop state-of-the-art safety and environmental protection systems.

The agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil's exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects.

"We have a clear vision for Rosneft's strategic direction — building world-class expertise in offshore business and enhancing oil recovery," said Rosneft president Eduard Khudainatov, following the signing ceremony. "The partnership between Rosneft with its unique resource base, and the largest and one of the most highly capitalized companies in the world reflects our commitment to increasing capitalization of our business through application of best-in-class technology, innovative approach to business management, and enhancement of our staff potential. This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects, turning the company into a global energy leader."

ExxonMobil Development Company President Neil Duffin said: "Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project. Our technology, innovation and project execution capabilities will complement Rosneft's strengths and experience, especially in the area of understanding the future of Russian shelf development."

Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation, who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft.

"This large-scale partnership represents a significant strategic step by both companies," said Tillerson. "This agreement takes our relationship to a new level and will create substantial value for both companies."

The agreement provides for constructive dialogue with the Russian Federation government concerning creation of a fiscal regime based on global best practices.

Additionally Rosneft and ExxonMobil will implement a program of staff exchanges of technical and management employees which will help strengthen the relationships between the companies and provide valuable career development opportunities for personnel of both companies.

The East Prinovozemelskiy License Blocks have a total area of 126,000 square kilometers (30 million acres) in water depths ranging between 50 and 150 meters (165 feet and 500 feet). Tuapse Block in the Black Sea has the total area of 11,200 square kilometers (2.8 million acres) and water depths ranging from 1,000 to 2,000 meters (3,300 feet and 6,500 feet). Rosneft equity interest in both joint ventures will be 66.7 percent, while ExxonMobil will hold 33.3 percent.

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Alberta Makes Concessions To Oil-Sands Producers In Parks Plan

- Alberta Makes Concessions To Oil-Sands Producers In Parks Plan

Tuesday, August 30, 2011
Dow Jones Newswires
CALGARY
by Edward Welsch

A final version of the Alberta government's land conservation plan for the oil-sands region released Monday made some concessions to oil companies after the original plan threatened to cancel parts of several oil-sands leases in order to preserve them for caribou habitat.

"What we think this plan achieves is a balance between the environment, development and the community aspect of living and working in Alberta," Sustainable Resource Development Minister Mel Knight said during a press conference.

Knight said there may still be parts of some oil-sands leases cancelled, but that the effect would be "very, very little," and the plan "is going to be quite satisfactory to most operators in the area."

The original parks plan released in April, which sets aside more than 7,000 square miles for recreational parks and wildlife including caribou, was panned by some of the oil-sands developers who were seeing parts of their leases cancelled.

However, most developers in the area, including Cenovus Energy Inc. (CVE) and Athabasca Oil Sands Corp. (ATH.T) said they had worked with the government to ensure that the parts of their leases that would be revoked were on plots that weren't economically viable.

Knight said the government worked with other companies to shift conservation land around for the final conservation plan, but he declined to provide any specific details.

Jennifer Grant, director of oil-sands research for the Canadian environmental think tank Pembina Institute, said it appeared that the government had shifted some lands around to accommodate oil-sands leases owned by Sunshine Oil Sands Ltd., a privately owned developer that was particularly hard hit under the draft plan.

Executives of Sunshine Oilsands, which is planning an initial public offering in Hong Kong later this year, weren't immediately available to comment because they were traveling in China.

"The government's efforts to accommodate industry interests are apparent in this version of the Lower Athabasca Regional Plan, with the adjustment of some protected areas," Grant said. She said more loopholes were introduced in the latest plan that allow companies to get exemptions to environmental standards.

Knight said though the plan had critics, it set aside a large portion of land for protection that wasn't there during the industry's last resource boom in the mid-2000s.
Copyright (c) 2011 Dow Jones & Company, Inc.

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Thursday, August 25, 2011

ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

- ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

Thursday, August 25, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) plans to aggressively bid for oil and gas assets overseas in upcoming auctions as part of its strategy to more than double oil production abroad to 20 million tons a year by 2020, the chairman of India's flagship explorer said.

ONGC plans to work with other Indian state-run oil and gas companies through its overseas investment arm ONGC Videsh Ltd., or OVL, to bid for assets overseas, A.K. Hazarika told Dow Jones Newswires in an interview late Wednesday.

"Ours is an import-dependent country and we need energy," Hazarika said. "Although, all the companies can go out and bid, we shouldn't be competing against each other. So we will form joint ventures."

India's state-run companies have lagged behind those from bigger Asian rival China in acquiring energy assets overseas.

OVL's last big acquisition was Russia-focused Imperial Energy in January 2009, which it bought for $2.12 billion.

The federal government is now considering creating a sovereign fund focused on resource asset acquisition overseas to seek energy sources for the world's second-fastest growing major economy.

OVL has been shortlisted to bid in Iraq's forthcoming auction round, Hazarika said, adding his company will form a consortium for bidding.

Iraq is offering 12 exploration blocks in its fourth licensing round, which will take place in January.

He said OVL will also be interested in forthcoming auctions in Brazil and Oman.

Early next year, Brazil is expected to hold the 11th bid round for exploration and production blocks in onshore and offshore basins.

OVL has stakes in one producing block and half a dozen exploratory blocks in Brazil.

Oman is expected to offer about five oil and gas blocks in a new exploration licensing round.

"ONGC will look into the properties and take a call based on due diligence," Hazarika said.

He said OVL, which produced 9.43 million tons of oil and oil equivalent gas in the year ended March 31, has invested INR560 billion ($12 billion) so far in overseas assets.

"Money is not a constraint for us as OVL can easily borrow from the market," Hazarika said. He didn't give details about the company's overseas investment plans.

He said OVL also expects to resume exploratory activities in Libya and explore more investment opportunities once normalcy returns in the African country.

OVL declared force majeure and suspended operations in February in an offshore exploration block in Libya, citing political unrest.

Oil companies active in Libya before the civil war began gearing up for the challenge of resuming operations in the country Monday as rebel forces moved closer to taking over Tripoli.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Monday, August 22, 2011

EXCO Resources Announces Expiration of Shareholder Rights Plan

- EXCO Resources Announces Expiration of Shareholder Rights Plan



Aug 22, 2011

EXCO Resources (NYSE:XCO) announced that its Board of Directors has determine to accelerate the expiration date of its shareholder rights plans from the close of business on January 24, 2012 to the close of business on September 30, 2011.

In January, the company adopted a shareholder rights plan at the direction of the Special Committee of the Board of Directors to enhance the ability to conduct a thorough, deliberative process of exploring the Company's strategic alternatives.

In light of the recent conclusion of the strategic review process, the Board determined that parties who had also previously entered into a confidentiality agreement containing standstill provisions in connection with the strategic review process will be afforded the opportunity to enter into new agreements that would permit the purchase of additional shares of the company's common stock.

The new standstill agreements would expire on September 30, 2011.

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Tuesday, August 16, 2011

Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

- Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

Tuesday, August 16, 2011
Statoil

The partners in the Åsgard licenses have submitted a plan for development and operation (PDO) of subsea gas compression to maintain production from the Mikkel and Midgard reservoirs.

Øystein Michelsen, Statoil's executive vice president for Development and Production Norway (DPN), presented the PDO to Ola Borten Moe, Norway's minister for petroleum and energy.

"The decision to improve recovery from Åsgard is one of the most important we are taking this year to sustain output on the Norwegian continental shelf," said Michelsen.

"This solution has been made possible through an innovative partnership on the Åsgard license."

The PDO represents a quantum leap in technological terms, which could contribute to a substantial boost in recovery factor and production life for a number of gas fields.

Subsea compression on Åsgard is expected to improve recovery from the Mikkel and Midgard fields by some 278 million barrels of oil equivalent.

That makes the project one of the most important contributors to new volumes, and provides future opportunities for improved recovery from a number of fields.

Quantum leap

Natural pressure in Midgard and Mikkel will become too low over time to maintain stable flow and a high production profile from the Åsgard B platform in the Norwegian Sea.

To compensate for this decline, Statoil intends to install seabed compressors near the wellheads and so increase the pressure. Wellstreams will be piped in a common line to Åsgard B.

"This represents a quantum leap in subsea technology, and an important step in realizing our vision of a complete underwater plant," said Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"The technology has a substantial potential for improving recovery," she added, and emphasized that it is important for future field development in deep water and Arctic regions.

"Testing and qualifying new solutions is vital to the success of our technological developments," Øvrum noted. "We have already come a long way, but know that the remaining stretch will be a demanding one.

"Developing technology is always challenging, but we have surmounted technological obstacles before and are confident that we will succeed in doing so again on Åsgard together with our partners."

She adds that substantial synergy exists between technological qualification on Åsgard and the work being done by Statoil together with operator Shell on the Ormen Lange gas field.

Åsgard's bright future

Åsgard is a crucial hub on the Halten Bank and a key factor in the Norwegian Sea. Subsea compression from Mikkel and Midgard will safeguard future production from the field, said Michelsen.

Statoil is working continuously on other measures to improve recovery in the same area – including reducing processing pressure, drilling and maintaining wells, and applying innovative solutions.

Åsgard is an important hub in a prospective area, and spare processing capacity which becomes available in its facilities can also be offered to others.

"Our vision is a field which is still producing in 2050 with a recovery factor among the best in the world," said Michelsen.

The subsea compression development will also expand capacity in the Åsgard Transport pipeline, which carries gas from Norwegian Sea installations to the Kårstø plant north of Stavanger.

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Wednesday, August 3, 2011

Xcite Submits Field Development Plan for Bentley Field

- Xcite Submits Field Development Plan for Bentley Field

Wednesday, August 03, 2011
Xcite Energy Ltd.

Xcite announced that the final draft of the Field Development Plan ("FDP") for the Bentley field has now been submitted to the Department of Energy and Climate Change ("DECC").

The FDP outlines the proposed development plan for the Bentley field, which addresses the first stage production program in detail and also references the second stage production program, which together encompasses the core area of the reservoir.

The Company will respond to any issues raised by DECC in the coming months, in expectation of achieving approval in due course.

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Monday, August 1, 2011

Lundin, Partners Submit Field Development Plan for Brynhild Field

- Lundin, Partners Submit Field Development Plan for Brynhild Field

Monday, August 01, 2011
Lundin Petroleum AB

Lundin as operator has, with its partners Noreco and Talisman, submitted a plan for development and operation (PDO) for the Brynhild field (formerly called Nemo) to the Norwegian Ministry of Petroleum and Energy. The Brynhild field is an oil field located in the Norwegian sector of the North Sea. First production from the Brynhild field in PL148 is expected in late 2013.

The Brynhild field is located adjacent to the Norwegian – United Kingdom (UK) international border. The PDO includes three wells and pipelines/umbilical tied back to the existing Shell operated Pierce field infrastructure in the UK sector of the North Sea. Brynhild holds 22 million barrels of oil (MMbo) in gross proved and probable reserves with a forecast gross peak production of approximately 12,000 barrels of oil per day (bopd). The oil will be processed and stored on the Pierce floating production, storage and offloading (FPSO) vessel before offshore loading to shuttle tankers.

Lundin Petroleum has a 50 percent working interest in the Brynhild field. Talisman and Noreco hold a 30 percent and a 20 percent interest, respectively.

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Wednesday, July 27, 2011

US House Panel to Draft Plan to Split Federal Oil Money with States

- US House Panel to Draft Plan to Split Federal Oil Money with States

Wednesday, July 27, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The House Natural Resources Committee plans to draft legislation that redirects a portion of federal oil royalties to coastal states, ramping up debate on an issue that has also intensified in the Senate.

Rep. Doc Hastings (R., Wash.), chairman of the Natural Resources Committee, said at a hearing Wednesday that he was "actively" reviewing proposals to share federal oil revenue with the states. He said his committee would take up legislation to address the issue after a summer recess.

"When it is all boiled down, a revenue-sharing proposal is, and must be, about fairness," Hastings said.

Hastings didn't say how much royalty revenue he wanted to steer toward the states. A proposal in the Senate directs 37.5% of federal oil royalties to the states. With the federal government reporting more than $5 billion in offshore royalty revenue in 2010, such a move would be a big win for coastal state governments.

Debate over revenue-sharing proposals has intensified in recent weeks as lawmakers look for ways to reduce spending and raise revenues as part of plans to increase the debt ceiling.

Opponents of revenue-sharing plans, often Democrats and lawmakers from non-coastal states, say it would be unwise for the federal government to give up billions of dollars of oil royalties at a time when it's struggling to claw its way out of debt.

Rep. Ed Markey (D., Mass.), the highest-ranking Democrat on the Natural Resources Committee, said Wednesday that a revenue-sharing plan would be a "big mistake" and that it's "just something [the federal government] can't afford."

"How can we even begin to discuss this subject right now?" Markey said.

Under current arrangements, states collect royalties from oil produced within the first three miles of a coastline. The federal government then collects most of the royalties on oil produced in the next three miles and lays claim to all of the royalties beyond that.

Supports of revenue sharing, often Republicans and coastal state representatives, say state officials will be incentivized to support more offshore oil production if they can collect a greater share of the royalties.

A battle over revenue sharing in the Senate has suspended action on a long-awaited bill that would strengthen safety standards for offshore oil drilling. At a committee-level markup last week, lawmakers blocked a vote on the bill after Sens. Mary Landrieu (D., La.) and Lisa Murkowski (R., Alaska) looked set to fail in their attempts to attach a revenue-sharing proposal to it.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Monday, July 25, 2011

Foster Wheeler Names New CEO in Leadership Succession Plan

- Foster Wheeler Names New CEO in Leadership Succession Plan

Monday, July 25, 2011
Foster Wheeler AG

Foster Wheeler has approved a senior leadership succession plan under which J. Kent Masters, 50, will become the company's Chief Executive Officer, effective October 1, 2011. It is expected that he will stand for election to the company's board of directors as soon as practicable after October 1. Umberto della Sala, 63, will continue to serve as Interim Chief Executive Officer through September 30 and then will continue with the company in his ongoing roles as President and Chief Operating Officer, CEO of the company's Global Engineering and Construction Group and member of the board of directors.

As part of the leadership succession plan, Raymond J. Milchovich, 61, is expected to continue to serve as Non-Executive Chairman of the board of directors of Foster Wheeler AG through November 3. He has informed the board that he intends to leave the board on that date. The board has been actively planning for Milchovich's eventual departure and expects to announce its succession plan for Chairman on or before November 3, 2011.

Masters comes to Foster Wheeler from The Linde Group, a world-leading gases and engineering company, where he has served as a member of the Executive Board with responsibility for the operating segments Americas, the Global Business Unit Healthcare and the Business Area Merchant & Packaged Gases. He joined Linde in 2006 as a result of Linde's acquisition of The BOC Group, where he had been Chief Executive, Industrial and Special Products and a member of the board of directors.

"Kent has significant operating, technical and contracting experience -- and a demonstrable track record of successfully leading complex global organizations," said Milchovich, Non-Executive Chairman of the Board of Foster Wheeler AG. "Moreover, we believe that Kent's leadership approach is a perfect fit with the cultural norms of Foster Wheeler. I know I speak for the entire board when I say that we have full confidence in Kent to drive the company to reach its full potential."

Milchovich added, "With Umberto under contract through 2013 and having spent considerable time with Kent and Umberto together, I believe that they will be an excellent team. Furthermore, I have assured both Kent and the board that I will remain available to them in the event I can help with the transition in any way."

A native of Atlanta, Georgia, Masters holds a Bachelor of Science degree in Chemical Engineering from the Georgia Institute of Technology and a Master's degree in Business Administration from The Stern School of Business at New York University. He also serves on the board of directors of Rockwood Holdings, a manufacturer of chemicals and advanced materials based in Princeton, New Jersey.

Umberto della Sala joined Foster Wheeler in Milan in 1973 as a process engineer. From 1997 to 2000, he was assigned to FW USA as Vice President and General Manager of Latin American Operations and President of FW Caribe and later as commercial director. In 2000, he returned to Milan as Commercial Director of the newly formed Foster Wheeler Continental Europe Unit. He was appointed in 2001 as President and CEO of FW Continental Europe. In 2005 he was appointed as Foster Wheeler CEO Global Engineering & Construction (E&C) Group. He assumed the additional role of President and Chief Operating Officer of Foster Wheeler in 2007 and has served as the company's Interim Chief Executive Officer since October of 2010. He was elected to the Foster Wheeler board of directors in February 2011.

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Thursday, July 21, 2011

Commodity Corner: Oil Climbs on Europe Debt Plan

- Commodity Corner: Oil Climbs on Europe Debt Plan

Thursday, July 21, 2011
Rigzone Staff
by Saaniya Bangee

On Thursday, oil futures settled at their best since early June, briefly peaking above $100 a barrel, as European leaders made progress on a plan to deal with its debt crisis.

Crude for the new front-month contract gained 73 cents Thursday, settling at $99.13 a barrel. Prices peaked as high as $100.16 a barrel early in the session.

Top European officials met in Brussels today to discuss releasing a rescue package for Greece. The leaders agreed to lower interest rates on European Financial Stability Facility loans while extending loan maturities. Details from the plan are expected to be released soon.

Meanwhile, Brent crude fluctuated between $116.95 and $119.19, before settling at $117.51 a barrel.

Earlier Thursday, the International Energy Agency (IEA) said it won't release additional emergency oil reserves. Last month, the IEA released 60 million barrels of oil to alleviate the disruption of supplies from Libya.

August natural gas fell 11 cents, ending the session at $4.395 per thousand cubic feet after government reports reported an increase in natural gas stockpiles. The U.S. Energy Administration said natural gas stockpiles grew by 60 billion cubic feet, totaling 2.671 trillion cubic feet for the week ended July 15.

The intraday range for natural gas was $4.37 to $4.59 per thousand cubic feet.

Gasoline futures decreased nearly 5 cents, settling at $3.10 a gallon. RBOB prices peaked at $3.16 and bottomed out at $3.09 Thursday.

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Wednesday, July 13, 2011

DEC Chief Defends Plan For Fracking

- DEC Chief Defends Plan For Fracking

Wednesday, July 13, 2011
The Buffalo News, N.Y.
by David Robinson

State Environmental Conservation Commissioner Joseph Martens says he doesn't see a double standard in new natural gas drilling recommendations that would bar a controversial practice in parts of the state and not others.

His department's recommendations for regulating the natural gas drilling technique known as hydraulic fracturing would bar the practice in the Syracuse and New York City watersheds, but would open about 85 percent of the gas-rich Marcellus Shale region to drillers.

Martin, in a meeting Tuesday with reporters and editors of The Buffalo News, said the New York City and Syracuse watersheds were singled out as deserving special protection because they are the only supplies of unfiltered drinking water in the state.

A surge in natural gas drilling, along with the increased truck traffic that comes with it, potentially could jeopardize the ability to tap those watersheds as drinking water supplies that do not require filtering.

If that happened, the municipalities that rely on those watersheds for drinking water could be forced to build costly water treatment plants that, in the case of New York City, could carry a tab as high as $9 billion, Martens said.

Martens said the Department of Environmental Conservation's recommendations protect water supplies elsewhere in the state by barring drilling within 500 feet of the boundary of primary aquifers or private wells. Drilling also would be prohibited within 2,000 feet of a public drinking water supply.

"Our regulations are stricter than any other state," Martens said.

"We have very ambitious setbacks from all water supplies," he said. "I would say we've taken a cautionary and prudent approach."

But State Sen. Daniel Carlucci, DClarkstown, questioned why what's good for a large swath of upstate New

York is not allowed in the two watershed areas.

"It does, however, raise a troubling paradox," Carlucci wrote this week in a letter to the DEC. "If the threat of potential pollution is too great to subject the New York City and Syracuse watersheds to, why would it then be acceptable to subject water sources in the rest of the state to the same potential contamination?"

The recommendations also would ban high-volume hydraulic fracturing on state-owned land, including parks, forests and wildlife-management areas, and in flood plains.

Kate Sinding of the Natural Resources Defense Council noted that the DEC recommendations "inexplicably" would allow individual landowners to waive the 500-foot buffer around private drinking water wells. "They should not put landowners in a position of balancing potential economic gain against risking their health and safety," she said.

Drilling advocates contend the prolific horizontal wells could provide a major economic boost to upstate New York, creating thousands of jobs and helping to hold down natural gas prices by bolstering supplies.

More than 3,000 horizontal wells have been drilled and hydraulically fractured in the Marcellus Shale area of Pennsylvania, but none in New York because of a moratorium imposed by the state while the DEC developed new rules.

Horizontal wells go straight down for about a mile, then gradually turn at almost a 90- degree angle and continue for a half mile to nearly a mile horizontally, through the Marcellus Shale.

Drillers then inject millions of gallons of water, chemically treated to kill bacteria and prevent scale buildup up on pipes, into the well at high pressure to produce tiny cracks in the rock to free the gas. They also use small explosive charges.

The technique allows drillers to tap into much larger supplies of gas from a single drill site, which can have as many as six wells extending out in different directions. A single well can cost more than $4 million, but successful wells can produce gas at very high rates.

Opponents contend that the process, which uses millions of gallons of water mixed with chemicals and sand, could contaminate drinking water supplies and cause other environmental damage through increased truck traffic and the construction of roads and pipelines through rural areas.

Any drilling boom, however, probably would miss most of Western New York, with the likely exception of the easternmost portion of Allegany County. Unlike the layer across much of Central New York, geologists said the Marcellus Shale throughout most of the western part of the state is too thin and shallow to hold vast quantities of natural gas. Instead, most of the drilling is expected to focus on the portions of the Southern Tier from Steuben County eastward to Delaware County.

Copyright (c) 2011, The Buffalo News, N.Y.

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Force Fuels Begins Phase II of Drilling Plan

- Force Fuels Begins Phase II of Drilling Plan

Wednesday, July 13, 2011
Force Fuels Inc.

Force Fuels announced the beginning of Phase II of its drilling plan with Carroll Energy, which includes preparing the reports needed to complete 15 new wells on the properties Force Fuels acquired.

Force Fuels anticipates completing the geological analysis and field study within two weeks so the Company can move forward with the final drilling permit filings. Once the final permits are issued, Force Fuels will schedule the drilling contractor and other service work as needed.

"This is the last Phase to complete prior to drilling the 15 new wells. As I stated in a recent press release, we expect initial production rates from the 15 wells to produce a combined total of approximately 150 Barrels Per Day (BPD), totaling 4,500 barrels per month, in addition to the production from the recently opened previously shut-in wells. We are both proud and excited to enter the production phase," stated Tom Hemingway, President and CEO.

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Thursday, June 30, 2011

Investors Wait For Next Asset To Drop In Conoco's Sales Plan

- Investors Wait For Next Asset To Drop In Conoco's Sales Plan

Thursday, June 30, 2011
Dow Jones Newswires
HOUSTON
by Isabel Ordonez & Ben Lefebvre

ConocoPhillips (COP) investors are hoping for the company to quickly unveil the next step of its plan to sell up to $17 billion in noncore assets by the end of 2012 and reinvest a bulk of the proceedings in share buybacks.

Conoco's stock outperformed rivals Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) last year after investors embraced a large-scale, two-year restructuring plan presented in late 2009 that included a $10-billion asset sale and was aimed at shoring up its finances. Conoco's shares surged more than 30% in 2010, helped by evidence that the plan was going full steam ahead. By the end of last year, the sale plan seemed to be moving along. Conoco had sold $7 billion in assets, including its stake in oil sands oil producer Syncrude Canada Ltd. and the majority of its 20% stake in Russia's oil giant Lukoil OAO for $5.82 billion. Conoco said the Lukoil proceedings were excluded from the original $10-billion asset-sale plan and that money would be used to buy back the company's own shares. Those sales went so well that the Houston-based company announced in March it will expand its planned program through 2012 by selling an additional $10 billion of older, higher-cost assets.

But after a strong start, the company has this year given few signs that the asset sale is on schedule, says Fadel Gheit, an analyst at Oppenheimer & Co. "The company is keenly aware that the market is looking for news on the progress they are making in their asset sale," he said.

Conoco still has another year to complete the plan, but uncertainty about the pace of the second phase of the asset sales is starting to take a toll on its stock. Year to date, Conoco's shares are up 9.7%, underperforming the stock of Exxon and Chevron, which are up 10.6% and 12.1%, respectively.

Some analysts believe ConocoPhillips would have to make a significant announcement by the end of July, when it will report second-quarter earnings, if it wants to maintain momentum with investors; worries will only increase the longer no announcement is made. "If they don't announce something in the third quarter, the concern could rise," says Allen Good, an analyst at Morningstar.

Others believe that it's good for shareholders that the company is taking its time to make concrete sales plans. "With asset sales, it is rarely a good idea to rush the process," says Pavel Molchanov, an analyst at Raymond James. "A lower, more deliberate process can allow the seller to maximize value for the asset."

Conoco spokesman John Roper said the company doesn't "discuss potential acquisitions and dispositions prior to their closings. While we expect additional announcements this year, we have none to discuss at present."

Conoco has made a few medium-sized deals this year, including an April sale of a 15% stake in the planned Australia Pacific LNG Project in Queensland for $1.5 billion and the sales of its Seaway Products Pipeline in South Texas for an undisclosded price. But the company needs to make a couple of large-scale assets sale announcements to let the market know that it isn't behind schedule, Gheit said.

Conoco could shed assets in Australia and Kazakhstan, say UBS analysts who in June met with ConocoPhillips Chief Financial Officer Jeff Sheets. Those could include new stakes in Conoco's Australian liquefied natural gas venture with Origin Energy Ltd. (ORG.AU), and its 8.4% interest in the Kashagan oilfield in Kazakhstan, UBS said. Conoco's partner in the field, Exxon Mobil, received a $5 billion bid for its identical stake in Kashagan, according to the Wall Street Journal.

Alan Hirshberg, Conoco's Senior Vice President of Planning and Strategy, said in a presentation at a May energy conference that the company is also looking at leaving countries where it has a small presence, and selling some marginal refining assets like the Wilhelmshaven refinery in Germany. Hirshberg said Conoco is also considering turning refineries into product terminals and striking joint venture agreements, exchanging refining capacity for oil and gas assets.

Conoco would most likely want to pull out of the East Coast market, where fuel imports into New York Harbor make price competition extremely difficult, UBS said. The company has two major refineries in the area, the 238,000 barrel-a-day Bayway refinery in Linden, New Jersey; and the 185,000 barrel-a-day refinery in Trainer, Penn. Valero Energy Corp. (VLO) sold two of its refineries in that region in 2010 to private equity firm PBF Energy. PBF declined to say whether it was interested in the Conoco refineries in the area.


Copyright (c) 2011 Dow Jones & Company, Inc.

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Thursday, June 23, 2011

Officials Plan to Go Slow on O&G Drilling on Public Lands

- Officials Plan to Go Slow on O&G Drilling on Public Lands

Thursday, June 23, 2011
The Columbus Dispatch, Ohio
by Jim Siegel

A bill allowing oil and gas drilling in state parks and some other public lands is on its way to Gov. John Kasich for his signature, but state officials say it will be a year, and likely longer, before anyone starts putting holes in the ground.

"This will be a very deliberate, very measured process. There will be nothing happening fast," said Laura Jones, spokeswoman for the Ohio Department of Natural Resources.

Over Democratic objections, the House voted 57-38 to give final approval to House Bill 133, which would create a new five-member Oil and Gas Drilling Commission -- four gubernatorial appointees and a Natural Resources official -- to oversee drilling on state-owned land and grant leases.

While critics highlight potential hazards, supporters point to the $128million that Pennsylvania got in 2010 from leasing state lands for drilling, and the $178million collected by Michigan -- money they say is sorely needed to make a dent in the nearly $500million in backlogged maintenance projects at Ohio's state parks.

"Nobody ever comes up with another solution for closing the half-billion dollar shortfall the state has on taking care of their properties," said Tom Stewart, executive director of the Ohio Oil and Gas Association. "The park experience is degrading before our very eyes."

Stewart said it "would be wonderful if, within a year's time, we have some discoveries on state-owned property." Jones called that a very optimistic time frame.

No one is certain when the money will start flowing to the state.

Rep. John Adams, R-Sidney, the sponsor of the bill, said that while rules are being written, Natural Resources officials can immediately begin researching titles on land parcels to determine whether there are restrictions.

"The bill has been designed to allow the process to get moving as quickly as possible as the rules are promulgated," Adams said.

While the commission would have broad authority to lease public land where the state fully owns the mineral rights, Jones said much of the land under control of the Department of Natural Resources has some level of restriction that must be worked out. For example, she said, federal funds used to purchase and operate wildlife areas must be taken into account.

"We as the landholder will have an awful lot of say on what lands would not be available, or what restrictions would be on those lands," Jones said.

Eventually, drilling companies will nominate parcels of land for drilling. But Stewart expects that during the first year, the state will do the nominating.

The Ohio Environmental Council, among others, has expressed concern that the bill would give the commission, rather than state agencies that own the land, too much authority to grant drilling leases.

Sen. Teresa Fedor, D-Toledo, said drilling on public lands "remains unnecessary, unwanted and unsafe," echoing concerns about how drilling could impact the natural beauty of parks and about the use of a hydraulic fracturing technique on deep shale that could harm groundwater supplies.

Stewart said there is no evidence of "a direct correlation between groundwater contamination and the act of hydraulic fracturing."

As Ohio drillers plan to ramp up production, millions of barrels of toxic wastewater from natural-gas wells in Pennsylvania are coming into Ohio despite efforts by officials here to keep its injection wells open for Ohio brine.

The brine is a byproduct of hydraulic fracturing, or "fracking." Pennsylvania sewage plants dumped so much of it that it became a threat to drinking water, and state officials ordered plants to stop dumping brine.

Stewart said the Pennsylvania imports are a definite concern for Ohio-based drillers. "My members need someplace to properly dispose of their water."

In other legislative business:
  • The House passed House Bill 25, which increases penalties for repeated convictions of cruelty to animals. Rep. Courtney Combs, R-Hamilton, said the current penalties are "no more than a slap on the wrist."
  • The House voted 84-12 for House Bill 116, which would require schools to educate students and parents about their anti-bullying policies.
  • The Senate moved to abolish or consolidate 85 state boards and commissions through Senate Bill 171, which adopts recommendations of the bipartisan Sunset Review Committee.

Copyright (c) 2011, The Columbus Dispatch, Ohio

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Wednesday, June 22, 2011

Iran Parliament Rejects Ahmadinejad's Plan to Merge Ministries

- Iran Parliament Rejects Ahmadinejad's Plan to Merge Ministries

Wednesday, June 22, 2011
Deutsche Presse-Agentur (dpa)

Iran's parliament will not consider a plan by President Mahmoud Ahmadinejad to merge the ministries of oil and energy, a Tehran newspaper said Wednesday amid a political row between his government and parliament and elements of the clergy.

"A relevant parliamentary commission came to the conclusion that the oil ministry is important and should stay independent," deputy Hissein Sobhani-Nia was quoted as saying by Donyaye Eqtesad.

"Therefore, the parliament has removed the merger of the oil and energy ministries from the agenda," he said.

Observers said the dispute between parliament and Ahmadinejad's government is believed to go beyond technicalities and has become an ideological problem.

Ahmadinejad planned to merge the two ministries and become caretaker of the oil ministry himself until the plan was realized.

Parliament and the senate-like Guardian Council rejected the caretaker plan as illegal, forcing Ahmadinejad to introduce a new caretaker.

In the meantime, the president's plan to create a sports ministry failed after parliament on Tuesday rejected his candidate.

The rejections were expected to escalate the crisis between government supporters and conservatives in the parliament, as well as clerical circles who accuse Ahmadinejad and his aides of no longer following the principles of the Islamic establishment.

The main target of the conservatives and clerics is Ahmadinejad's chief of staff and relative by marriage, Esfandiar Rahim Mashaie, whom they accuse of undermining their power.

Parliament presented an ultimatum Monday to Foreign Minister Ali-Akbar Salehi over one of his deputies who is linked to Mashaei. Salehi was told to either fire Mohammad Sharif Malekzadeh or face impeachment. Salehi gave in, and Malekzadeh resigned Tuesday.

Mashaei and other close aides of the president are branded by critics as a "deviant current" for preferring a nationalistic rather than an Islamic political approach.

Some critics have gone so far as to charge Mashaei and his group with plans to remove the clergy from power. Ahmadinejad has denied the charges but at the same time supported his aides, including Mashaei.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Friday, June 17, 2011

Maersk Invests $1B in Golden Eagle Development Plan

- Maersk Invests $1B in Golden Eagle Development Plan

Friday, June 17, 2011
Maersk Oil

Maersk Group has approved its investment of $1 billion in the Field Development Plan for the Golden Eagle Area in the UK North Sea. Maersk Oil has a non-operated interest in the fields of 31.56% and its estimated share of reserves is expected to be around 45 million barrels of oil equivalent.

Subject to partner and regulatory approvals, construction of a platform and other infrastructure will begin in November this year. First oil is expected in 2014 with initial production rates at between 60,000-65,000 barrels of oil a day; Maersk Oil's share is expected to be 19,000-21,000 bpd.

"The approval of the field development plan is an important step towards getting production going in the Golden Eagle Area. The area is home to one of the largest discoveries in the UK North Sea in recent years, and we are pleased to be partners in such a promising field development," said Martin Pedersen, Managing Director of Maersk Oil UK.

The Golden Eagle Area comprises the Golden Eagle and Peregrine fields. Peregrine was known as Pink, while the Hobby discovery is now defined to be part of the Golden Eagle field. The fields were discovered 2007-2009 in Block 20/1 located 110 kilometers North East of Aberdeen. The fields are operated by Nexen (36.5%) with Maersk Oil, Suncor and Edinburgh Oil and Gas as partners.

Operator Nexen has estimated the Golden Eagle Area contains 140-150 million barrels of oil equivalent in gross recoverable contingent resources, making it one of the largest oil discoveries in the UK North Sea in recent years. Maersk Oil's estimated share of reserves is expected to be around 45 millions of barrels of oil equivalent.

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Friday, June 10, 2011

Norwegian Govt Gives Go-Ahead to Statoil's $3.7B Valemon Plan

- Norwegian Govt Gives Go-Ahead to Statoil's $3.7B Valemon Plan

Friday, June 10, 2011
Statoil

The plan for development and operation of the Valemon gas and condensate field in the North Sea was approved by the Norwegian parliament on June 9. Production start-up is planned for 2014.

The Valemon field is one of Statoil's largest development projects on the Norwegian continental shelf (NCS) in the next few years.

The recoverable reserves are estimated at 206 million barrels of oil equivalents – including 26 billion cubic meters of gas, five million cubic meters of condensate and one million cubic meters of natural gas liquids (NGL).

The partners will invest almost NOK 20 billion in the platform, pipelines and production wells.

Development of Valemon involves a fixed platform with a steel jacket for the separation of gas, condensate and water. The normally unmanned platform will be remotely controlled from the Kvitebjørn platform when drilling operations are completed in 2016/17.

Gas from Valemon will be transported via the existing pipeline from Huldra to Heimdal, a hub which enables the gas to be exported to European markets.

The condensate will be piped to Kvitebjørn for stabilization and further transport to the Mongstad refinery in Hordaland.

At peak, Valemon is expected to produce approximately three billion cubic meters of gas annually.

"Production from Valemon will enable us to utilize spare capacity in the processing facilities on the Kvitebjørn and Heimdal platforms. Meanwhile, the platform and transport systems provide an excellent basis for the development of further oil and gas fields in the area," said Statoil senior vice president of NCS field development Ivar Aasheim.

The Valemon reservoir is complicated because it is fragmented, but also because of its high pressure and high temperature.

The contract for building the Valemon topsides was recently awarded to Samsung Heavy Industries, following broadly based international competition between pre-qualified suppliers. The contract is worth an estimated NOK 2.3 billion.

Design work will be carried out by the Grenland Group in Sandefjord, Norway and Technip in Malaysia. Grenland Group will also build the flare stack. Hertel Marine in the Netherlands will be responsible for the construction of the accommodation quarters.

The contract for steel jacket construction was previously awarded to Heerema Vlissingen B.V., while Heerema Marine Contractors Nederland B.V. landed the contract for transport and mating of jacket and topsides.

Saipem was awarded the contract for installation of the topside facilities. Pipeline design was awarded to IKM Ocean Design.

The Valemon field is located in the North Sea between Kvitebjørn and Gullfaks South, roughly 160 kilometers west of Bergen.

Licensees are Statoil (operator – 64.275%), Total (2.5%), Enterprise Oil Norge (3.225%) and Petoro (30%).

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