Saudi Aramco Delays Manifa Oil Field Until 2015.
Saudi Arabia expects to complete its Manifa heavy oil field in 2015, four years later than originally planned, according to a statement on the Web site of state-run oil company Saudi Aramco.
The project, which involves building a man-made causeway to 27 shallow-water drilling islands, will eventually produce 900,000 barrels a day of heavy crude oil, 900 million cubic feet a day of associated gas and 65,000 barrels a day of condensate, a high-value light oil.
Saudi Arabia originally planned to complete the project by mid-2011. In May, Oil Minister Ali al-Naimi said production would only start from Manifa if the market needed more oil. Continue reading
OGX Says It May Have Found New Oil Field in Brazil.
OGX Petroleo & Gas Participacoes SA, said it may have found a new oil province in Brazil, after making a second discovery in a deeper section of a well. Shares rose to a two-month high. (OGXP3:BZ)
The Rio de Janeiro-based company found hydrocarbons in the Aptian section of its OGX-2A well, located about 77 kilometers (48 miles) off Brazil?s coast in the Campos Basin, according to a regulatory filing posted today. OGX hasn?t provided volume estimates for discoveries in the well?s Aptian and Albian sections.
OGX, which plans to drill 79 wells by 2013, currently estimates it holds potential resources of 6.7 billion barrels of crude and equivalents. The characteristics of the OGX-2A well are "typically associated with giant discoveries" and suggest "a bigger oil system" in the area an analyst at Credit Suisse Group AG in Sao Paulo, said. Continue reading
Goldman Sachs Says $110 Oil is Coming
On Thursday Goldman Sachs released its forecast for crude prices. They expect prices to "average" $90 in 2010 and rise to $110 in 2011. The driving factor behind the rise in prices is an expected surge in demand as we approach 2011. Goldman analyst Jeff Currie said, "We expect increasingly strong demand from the emerging markets to once again require higher prices to ration demand out of the developed markets in 2011." Rebounding growth in developing markets will quickly exhaust spare capacity.
On the bright side for consumer Goldman is expecting lower prices at the start of 2010. Goldman also cut natural gas price estimates for 2010 to $6 from $7.30 and rise to $6.50 in 2011. Goldman cited larger than expected shale gas flows and continued weak demand from industry.
Total SA Says Oil Rally Reflects Looming Supply Crunch.
(TOTAL) SA head of exploration, Yves-Louis Darricarrere, said the recent 75% rally from the Q1 lows reflects anticipation of a looming supply crunch rather than rising demand. "Prices don?t reflect offer and demand available today but anticipate that in the medium term demand will be constrained by supply. Demand will continue to grow albeit less than in the past and pulled by countries like India and China."
His comments followed comments from the Total CEO who warned of a supply shortage withing five years. CEO Christophe de Margerie called on producers to invest in new capacity to avoid a jump in prices. Total said it would revive production in 2010 by adding new projects and adding joint ventures abroad.