Meet Manifa (And Other Giant Oil Projects) That Will Add To The Global Oil Glut
World oil consumption is more than 90 million barrels a day. Between 2009 and 2014 oil was traded for about 110 dollars a barrel; now oil is changing hands for 32 dollars a barrel. Roughly a 7-billion-dollar cash flow a day is vanishing from the global market.
Norway’s sovereign wealth fund that has accumulated a stake of 4.5 billion dollars in Apple over the past years, will turn from an Apple buyer into an Apple seller.
The China Development Bank (a Chinese policy bank) has poured nearly 50 billion dollars into Venezuela in return for oil, with the country now collapsing under the Chinese debt, having no other choice but to drill for more oil.
These are just some of the challenges the world is facing in 2016 as oil prices are heading towards 20 dollars a barrel.
Speculators and manipulators were able to manipulate the oil price to more than 120 dollars a barrel, with the production cost being roughly between 20 and 80 dollars. With a huge profit margin the world was digging for more and more liquid gold.
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Kashagan: The $50 Billion Oil Development That Doesn’t Work
Shell, Total S.A., Exxon Mobil and China National Petroleum Corporation are now stuck with a 50-billion-worth project in the Caspian Sea, called Kashagan. The project is full of problems and delays, but is expected to add 300.000 barrels of oil a day to the global oil glut the coming year.
The field is developed by the international consortium under the North Caspian Sea Production Sharing Agreement. The Agreement is made up of 7 companies consisting of Eni (16.81%), Royal Dutch Shell (16.81%), Total S.A. (16.81%), ExxonMobil (16.81%), KazMunayGas (16.81%), China National Petroleum Corporation (8.4%), Inpex (7.56%). The initial production is expected to be 90,000 barrels per day (14,000 m3/d). It should reach a production rate of 370,000 barrels per day (59,000 m3/d) Source Wikipedia
Prelude
2016 will also be the inauguration of Shells Prelude, the world’s first floating liquefied natural gas platform as well as the largest offshore facility ever constructed. We expect the media to give limited coverage to its inauguration.
Prelude FLNG is the world’s first floating liquefied natural gas platform as well as the largest offshore facility ever constructed. Prelude FLNG was approved for funding by Shell in 2011. Analyst estimates in 2013 for the cost of the vessel were between US$10.8 to 12.6 billion. Pressures from an increase in the long-term production capabilities of North American gas fields and increasing Russian export capabilities may reduce the actual profitability of the venture from what was anticipated in 2011. Source Wikipedia
Manifa
While the media attention was directed to the shale oil boom in the US, the Saudis created a giant offshore oil project called Manifa. With one single project Manifa added 1 million barrels a day to the world oil glut. Manifa will expand its capacity the coming year, adding a further 500 million barrels a day to world markets.
The project is part of the development of the Saudi oilfields, which are expected to see an increase in production to over 12.5 million barrels a day from 11 million barrels a day. The first phase of the project began production in April 2013. The field produced 500,000bpd by July 2013. It will produce 900,000bpd of crude oil once fully completed by the end of 2014. Additionally, there will also be production of 90 million standard cubic feet per day of sour gas, 65,000bpd of gas condensate, and water. Source Offshore Technology
There are plans to extend the project with a further 500 barrels a day capacity.
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ZH: With global storage levels at their limit, these massive projects (and their sunk-cost desperation for cash-flow) will add already extreme pressure an over-supplied market in which, as Morgan Stanley notes, "oil has no intrinsic value."
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Once the big banks finish foreclosing on all the drillers and equipment companies and on the oil fields backing all the loans, they will take oil prices back up the ladder. And to hold them high, the big banks won't make loans to drillers.
Obviously 500 MILLION is a misprint but it's mentioned a couple of times.
They are going from 1 million to 500 million. WTF ever! I'll believe it when I see it. Is this going to be part of the new IPO?
Better see this...
‘For the Record’: How Congress Cashes In On The Stock Market
For the first time, in 2014, the net worth of the average member of Congress topped a million dollars. While their generous salaries certainly play a role in accumulating that wealth, some make their real money on the stock market. Thanks to special access to new listings and insider information, many legislators can parlay their positions of power into a massive payday.
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Saudi Arabia–United States relations - Wikipedia, the free ... https://en.wikipedia.org/.../Saudi_Arabia–United_States_relatio...
WikipediaMap indicating locations of Saudi Arabia and USA .... In November 1931, a treaty was signed by both nations which included favored nation status.
Country comparison - History - 9/11 - Post-9/11 relationship with ... Treaties in Force - US Department of State www.state.gov › ... › Treaty Affairs
United States Department of StateTreaties in Force is published annually by the Department of State to provide information on treaties and other international agreements to which the United ... Saudi Arabia - US Department of State www.state.gov/r/pa/ei/bgn/3584.htm
United States Department of State Aug 23, 2013 - The United States and Saudi Arabia enjoy a strong economic relationship, as the United States is Saudi Arabia's largest trading partner, and Saudi Arabia is one of the largest U.S. export markets in the Middle East. The United States and Saudi Arabia have signed a Trade Investment Framework Agreement.Trade and Investment Framework Agreement (TIFA) - United ... https://ustr.gov/.../agree...
Office of the United States Trade RepresentativeAGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF.AMERICA AND THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA. FACT SHEET: United States-Saudi Arabia Bilateral ... https://www.whitehouse.gov/.../fact-sheet-united-states-saudi...
White HouseMar 28, 2014 - The bilateral Trade and Investment Framework Agreement provides a forum for the United States and Saudi Arabia to explore ways to advance ... Saudi Arabia - Relations with the United States countrystudies.us/saudi-arabia/59.htm
Although Saudi Arabia and the United States obviously did not share any borders , the ... became the basis for the 1951 mutual defense assistance agreement.
========= Just sayin...I hate that we are in bed with them. Came across this story that seemed pretty well sourced today. Interesting historical background on ties between Israel and SA. It's like we are an evil triangle of all things terrible.
"How Zionism helped create the Kingdom of Saudi Arabia"
http://mondoweiss.net/2016/01/zionism-kingdom-arabia
vw 300mpg car around 10x CAFE has the Bagdad_Bob/Popular_Science_911/Gobbles_VW_Nox going nuts on supply demand and just trying to say Fracking.... follow the money and Who....
POAHY the only stock I own that is doing well.
"And don't forget that existing oil wells around the globe deplete at about 4-6% per year."
"Now factor in the 7% minimum depletion of existing oil production"
One thing about you peak oil nuts is you don't know when to quit. How many of you all predicted $30 oiil and doubling of U.S. production in seven years time?
And by the way, with those percentage reduction numbers that you all can't seem to agree on, I love how you apply mathematical certainity to the future. There is no possible way oil wells can be reworked to produce more oil or prevent depletion; it is a certainty nobody is going to improve today's technology.
"Sure would be interesting to have heard Matt Simmons take on all of this."
Yes, by all means, let's listen to the guy who predicted peak oil back in 2003 or so and who was in part responsible for the failed Iraqi occupation. Thank God he is deceased after all of what happened in Iraq. Why would anyone want to listen to a guy who predicted peak oil years before the U.S. went out and doubled oil production?
Social Studies class in 1978...
We were told we'd be out of iron ore by 1985, out of Oil by 1989.....I think the geniuses at the time were the club of Rome or some other group of boffin idiots.
And yet, here we are in 2016 with US$30 oil and we're swimming in it, in iron ore, in copper.....etc.
Yup, gotta love those geniuses.
Squid
I still remember the Ad Council(US tax dollars) TV ad from the Carter(Rockefeller puppet) Administration. It had a kid walking a beach and decrying the fact that all the oil was going to be used up before he reached adulthood. Pure propaganda to get the sheep used to impoverishment.
The current oil price has nothing to do with oil availability - ALL the easy oil is gone - As the worlds largest traded commodity , what you are witnessing now is a FIRE SALE ! Countries simply have to survive !
Great point. Analysis of the global project pipeline compared with decommissioning or slowing fields show a contraction in supply in 2018. No point discussing new supply without putting it in context with expiring fields. Typical hysteria reporting.
Caspian Sea, sooooo last century, circa 1990s. That's one of the original issues to go to Afghanistan.
Then SA's Manifa? Really?
Game changing events here. /sarc
US is looking for ANY excuse to throw the Saudis 'under the bus' - SA are Europe's biggest supplier of oil - the US wants that market - SA are heavily invested in the US economy which is 'tanking' - SA has been exposed as being the primary funder of ISIS - which is embarrassing the US (who - along with Israel came up with the idea) - Essentially the US has leeched the life out of the Saudis,stolen their gold and dwindled their resources - The Saudis have decided to take matters into their own hands which signals their demise - the US will simply sit back and watch while Israel 'vultures' over the Saudi 'carcass' !
There is so much more to this for the keen observer - The Saudis stated (at the beginning of the oil crash) that they were prepared for $20 a barrel oil - this is not something any sane oil producer would do unless they had been 'incentivised' - the motivation behind this statement indicates to me that the Saudis had been promised control of the Iraqi and Syrian energy resources AND 'transit' rights.Well - that 'dream' is GONE and the Saudi's have announced that they will form their own 'anti - terrorist' coalition - which is actually the anti- 'Assad' coalition !
Peak tank!
Summary speaks of 500 million barrels a day. That must be wrong. World production is 90 million
End time prophecy of Abrahmic religions:
The dead shall come out of the graves
there will be floods in many places
Fire will come down from skies
Then there will be qayamat (judgement day)
--------------------------
Oil (petroleum) & natural gas
that is the dead bodies of past
coming out now
causing Co2 , climate change,
floods, cyclones , hurricanes, sea level rises
temerature rises aross the globe
& oil & gas is money
nations are fighting over oil & gas wealth
----------------
Nostradamus prophecy of end of the world:
There will be floods all over the world
the world will end due to many comets
life fire coming down from sky
(ICBMs look like comets in flight,
it means Hydrogen bombs end the world)
Peak oil, my ass. A fucking world wide con job. People in charge should be executed.
It is really not a "con job."
It is so much more a misunderstasnding/miscommunication, as the "peak" in peak oil is left mostly to the imaginiation; i.e., most people new to the concept understand it as the maximum (Mbbl) that can be extracted per unit time, "day" most commonly. The true meaning of peak oil is better represented by BTUs/human available.
The per capita net-available BTU can only go one way now; and if we're lucky, there won't be any radical discontinuities...
But there most most likely will be.