Category Archives: Oil Exploration

Oil-Price War – Scorched earth …. No one is likely to win – The Economist

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CRUDE OIL SUPREMACY: Saudi Arabia, Russia and America will all suffer

Finance and economics  Mar 14th 2020 edition – The Economist

Saudi Arabia and Russia are used to fighting their enemies via proxies. But the oil-price war that has broken out between them is head-on and has swiftly escalated. It started when Russia refused to slash production during a meeting with the Organisation of the Petroleum Exporting Countries in Vienna on March 6th. Saudi Arabia, opec’s de facto leader, hit back with discounts to buyers and a promise to pump more crude.

Shortly thereafter it said it would provide customers with 12.3m barrels a day (b/d) in April, about 25% more than it supplied last month—and a level it has never before attained. Russia said it could raise output, too, adding up to 500,000 b/d to its 11.2m b/d. The price of Brent crude plunged by 24%, to $34 a barrel, on March 9th—its steepest one-day drop in nearly 30 years.

Book: Guyana: Oil Dorado? – Second Edition – Available now on Amazon

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Coronavirus Effects: Oil Drops 31% in Worst Loss Since Gulf War as Price Fight Erupts

Oil Prices collapse

By Oil NOW

(Bloomberg) Oil markets tumbled the most since the Gulf War in 1991 after the disintegration of the OPEC+ alliance triggered an all-out price-war among the world’s biggest producers.

In one of the most dramatic bouts of selling ever, Brent futures sunk by 31% in a matter of seconds after the open of trading in Asia on Monday after already suffering their biggest loss since the global financial crisis at the end of last week. As Brent collapsed as low as $31 a barrel, Goldman Sachs Group Inc. warned prices could drop into the $20s.   

Hammered by a collapse in demand due to the coronavirus, the oil market sank deeper into chaos on the prospect of a supply free-for-all. Saudi Arabia over the weekend slashed its official prices by the most in at least 20 years and signaled to buyers it would ramp up output — an unambiguous declaration of intent to flood the market with crude. Russia said its companies were free to pump as much as they could.               Continue reading

Guyana Oil: Exxon pressing ahead with fourth well development named Hammerhead

The location of the Hammerhead discovery

amed Hammerhead

EXXONMOBIL affiliate, Esso Exploration and Production Guyana Ltd. (EEPGL), has applied to the Environmental Protection Agency (EPA) to undertake the Hammerhead Development Project, with facilities for petroleum production expected to last at least 20 years.

This marks the pursuit of Exxon’s fourth development project, with Liza Phase I and Liza Phase II already approved, and Payara awaiting approval.    Continue reading

Guyana Elections 2020: Guyana votes amid high hopes over oil discoveries – BBC News

Guyoil gas station in GuyanaImage copyrightALAMY

Voters in Guyana will go to the polls in a general election amid hopes that the discovery of huge new oil reserves could transform the South America nation, one of the region’s poorest.

A new 65-member National Assembly will be elected for a five-year term, and the leader of the largest coalition or party becomes the country’s president.

Incumbent President David Granger faces rival Irfaan Ali for the top post.

The economy is predicted to grow 85.6% in 2020, up from 4.4% in 2019.                Continue reading

Guyana — High-stakes March 2 vote will decide control of Guyana’s new oil wealth

 — By MOHAMED HAMALUDIN

If there was any lingering doubt as to why the Guyana government tried every available tactic to stall for more than a year the holding of elections after being defeated in a no-confidence vote, the answer came on December 20.

That is when ExxonMobile and its partners started pumping oil from recently discovered offshore fields. The tanker Yannis P set sail a month later with one million barrels of light crude bound for a United States-based refinery owned by ExxonMobile. With that shipment, Guyana finally realized a 75-year-old dream of finding oil. About a month later, another tanker, the Cap Phillippe, left with another million barrels of oil – this time belonging to Guyana as its share of the output.    Continue reading

Guyana: Elections and the Imperatives of Geopolitical Neighborhoods – By Ivelaw Lloyd Griffith

  — By Ivelaw Lloyd Griffith 

I. INTRODUCTION

Dr. Ivelaw Griffith

This year electoral winds will blow across eight national landscapes in Latin America and the Caribbean—Belize, Bolivia, the Dominican Republic, Guyana, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. Voters there will determine whether we will witness cool winds of continuity or tempestuous cyclones of change. But irrespective of the national circumstances, serious contenders do not have the luxury of focusing only on the run up to the elections; they also need to consider possible electoral outcomes and life after victory.

II. BIG OIL

This surely is the case in Guyana, which had early voting by the army and the police on February 21, and which will have the most consequential elections of the eight countries, largely because of the massive offshore oil and gas find there.        Continue reading

Guyana’s oil at world class low breakeven price of $35/barrel – Hess

… Projected to fall further

(Feb 25, 2020  News)  Hess Corporation has revealed that the current breakeven price for Guyana’s oil is US$35 per barrel Brent, among the lowest in the world. This was revealed by the Chief Executive Officer, John Hess. (photo at right)

For those unaware, the breakeven price is the price at which the oil must be sold to cover the cost to produce it. Every additional dollar on the barrel would be the profit.

Kaieteur News had revealed in December that Guyana’s crude will be priced against North Sea Brent crude, a competitive set of crudes extracted from fields in the North Sea.            Continue reading

Guyana: OIL:10 billion US dollars a year and growing – By Steven Jasmin – OilNOW

By OilNOW – February 16, 2020 –  By Steven Jasmin – OilNOW

Steven Jasmin

A few weeks ago, I posted a breakdown of the estimated $500 Billion USD worth of oil that has been discovered and will be extracted. The post was well received and re-shared quite a bit. In the post I outlined my napkin estimate that Guyana was expected to see at least $200 billion over the next 20 years in revenue from the country’s take of the Oil and Gas find – approximately 40% of the total value of the recoverable assets.

Recently, a report came out by Rystad Energy that flipped my analysis on its head. Rystad believes that given what has been found, by 2035 the country of Guyana will not be receiving 40% of the total revenue as I predicted, but rather 10 billion dollars a year which is closer to 60% of the total revenue from the field.          Continue reading

Guyana: Oil: PPP gov’t would renegotiate deals for Kaieteur; Canje and other blocks – Jagdeo

PPP ‘s Bharrat Jagdeo

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