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And now the shoe drop ........projects are put on ice
http://uk.reuters.com/article/2014/12/0 ... D220141205
sparky wrote:.
And now the shoe drop ........projects are put on ice
http://uk.reuters.com/article/2014/12/0 ... D220141205
LEAST LIKELY
Projects in Canada's oil sands, which require expensive and complex extraction techniques, are the most unlikely to go ahead given their high investment requirements and relatively slow returns. Total (TOTF.PA) recently decided to postpone the FID on the Joslyn project in Alberta, the cost of which Hodée estimated at $11 billion.
Shell's liquefied natural gas (LNG) project in Canada's British Columbia, already under pressure from a looming supply surge, faces further strain in the current price environment, analysts said. According to research by Citi, the project requires oil at $80 a barrel to break even.
Royal Dutch Shell's (RDSa.L) chief financial officer Henry Simon indicated in October that it was "less likely" to go ahead with unconventional projects in West Canada if oil falls below $80 a barrel.
Asked by Reuters what the company's current thinking was, a Shell spokesman would not comment on "internal decision-making."
Even in the Gulf of Mexico, one of the most attractive oil production areas in the world, projects are facing challenges.
BP (BP.L) last year put on hold a decision on its Mad Dog Phase 2 deep water project in the Gulf of Mexico after its development costs ballooned to $20 billion and the oil major is now expected to further delay an investment on the field's development.
"BP were talking positively about bringing it back, but now it may be put on hold," BMO Capital Markets analyst Iain Reid said.
BP's chief financial officer Brian Gilvary however said in an analysts briefing in October that he expected Mad Dog Phase 2 to be sanctioned in the first quarter of 2015.
Statoil's Johan Castberg field in the Barents Sea, which was expected to get its FID in 2015, seems unlikely to get the go-ahead at the moment given it has an estimated project cost of $16-$19 billion, Hodée said.
Statoil said that the final project design is due in the summer of 2015. Its giant Johan Sverdrup field in the North Sea is still on track for development with a price tag of $32.5 billion.
(Additional reporting by Oleg Vukmanovic in Milan and Balazs Koranyi in Oslo; Editing by Sophie Walker)
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
GoghGoner wrote:When the EIA puts out US gasoline demand stats, it usually uses US Product Supplied as a proxy not Refiner sales volume. I believe that US gasoline sales were down just under 9% between 2005 and 2013 and it can be explained by a drop in VMT.
ROCKMAN wrote:So are we talking about refineries selling to independent gasoline retailers vs shipping it to their own marketing division?
IOW when an ExxonMobil refinery ships gasoline to an ExxonMobil gas station is that counted as retail sales and when it ships it to a Love gas station it's counted as whole sale?
So I'm not sure I've heard an explanation yet: what is the implication, as presented by the EIA, of "US Total Gasoline Retail Sales by Refiners" dropping from 60 million gal/day in 2006 to 20 million gal/day today? Who received that extra 14.6 BILLION gallons of retail gasoline sales in 2006 that isn't receiving it today?
On June 12, 2008, ExxonMobil announced that it was transitioning out of the direct-served retail market, citing the increasing difficulty of running gas stations under rising crude oil costs. The multi-year process will gradually phase the corporation out of the direct-served retail market, and will affect 820 company-owned stations and approximately 1,400 other stations operated by dealers distributing across the United States. The sale has not resulted in the disappearance of Exxon and Mobil branded stations; the new owners will continue to sell Exxon and Mobil-branded gasoline and license the appropriate names from ExxonMobil, who will in turn be compensated for use of the brands.
In 2010, Chevron and Texaco ended retail operations in the Mid-Atlantic US, removing their brand from 1,100 stations in Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Washington, D.C., and parts of Tennessee.
http://en.wikipedia.org/wiki/Texaco#21st_century
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