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Jul 26, 2011

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PetroChina JV Bid For Bow Energy

Australia's foreign investment watchdog has pushed back a decision on the A$535 million ($554 million) takeover of coal seam gas developer Bow Energy Ltd. (BOW.AU) by a joint venture of Royal Dutch Shell PLC (RDSB) and PetroChina Co. (PTR) by up to 90 days. In a government notice to parliament, the Foreign Investment Review Board said it needed more time to decide whether to approve the deal, which would enable Shell and PetroChina's Arrow Energy venture to expand its proposed gas-export facility in Queensland state. Bow's board has unanimously recommended investors vote in favor of the A$1.52 a share offer, and Shell said in September that it expected the transaction to be implemented in January 2012. It isn't known why FIRB has decided against ruling on the transaction within the typical 30-day window. Around 95% of FIRB decisions are made within a 30-day period set out in law, and so-called interim orders extending the process by 90 days were made just twice during the year to the end of June 2010, the last period for which FIRB figures are available. "Proposals that took more than 30 days to decide were generally delayed by a lack of sufficient information from the parties or because the application involved significant complexity or sensitivity," FIRB said in its most recent annual report. Coal seam gas -- trapped stores of methane far below the Earth's surface -- is one of the world's hottest energy plays. More than A$20 billion was spent in 2008 on deals in Australia alone by companies including Shell, ConocoPhillips and BG Group PLC of the U.K. In August, Arrow Energy awarded preliminary engineering and design contracts for an export facility at Curtis Island, near Gladstone, producing an initial 8 million metric tons of LNG a year. Acquiring Bow Energy would allow the venture potentially to expand the annual output capacity of each of the facility's two processing units, known as trains, to 4.6 million tons of LNG.  (Nov 2, 2011 | post #1)

Paweena Oil & Gas,s.a ( Forming Oil )

Wilman, gracias por su comenterio  (Nov 2, 2011 | post #10)

Russia Ignores EU Plan for Trans-Caspian Gas Pipeline

Russia has criticized a European Union decision to open discussions with former Soviet states Azerbaijan and Turkmenistan on a pipeline project that could deliver the Caspian region's vast natural gas reserves directly to Western Europe. In a statement Tuesday, Russian Foreign Ministry spokesman Alexander Lukashevich said such an agreement would fail to take into account the international legal and geopolitical situation in the Caspian basin. He added that the issues concerning the natural gas should be decided only by the five countries bordering the Caspian Sea -- Russia, Turkmenistan, Azerbaijan, Kazakhstan and Iran. He also said the five nations had signed a 2007 agreement that binds them to finding consensus on major issues such as the laying of international pipelines. The EU on Monday agreed to propose a union-wide treaty supporting the completion of a Trans-Caspian pipeline that would connect Turkmenistan to Azerbaijan via the Caspian Sea. Gas from that pipeline would be fed into the EU- and U.S.-backed Nabucco pipeline and transported to Western Europe on a route that bypasses Russia. Russia is currently developing a South Stream pipeline in the same region, which rivals the Nabucco project. None of the EU nations border the Caspian. The EU buys about one-quarter of its natural gas from Russia and wants to diversify its purchases to become less dependent on Russia, which has periodically cut off the gas supply. The Russian Foreign Ministry spokesman also pointed out the possible dangers of building a pipeline in the Caspian, a landlocked body of water that has heightened seismic and elevated tectonic activity. Russia's Prime Minister Vladimir Putin signs an autograph on a natural gas pipeline Sakhalin-Khabarovs k-Vladivostok in the Russian Far East city of Vladivostok during the pipeline's launch ceremony  (Sep 14, 2011 | post #1)

Canadian Oil Sands On It's Way to Asia?

Protests in front of the White House earlier this month against the proposed Keystone XL oil pipeline, which would run from Alberta to the U.S. Gulf Coast, brought attention once again to the potential environmental impact of Canada's oil sands deposits. But industry experts say that the fate of that particular pipeline-which President Obama will decide upon later this year—will have little effect on the ultimate future of the vast petroleum resources in the oil sands. One reason is that the oil will simply go elsewhere. Proposed pipelines to Canada's Pacific coast could give Alberta's oil producers access to rapidly growing Asian markets. That would accelerate the demand for oil sands crude, which is made into gasoline. If the Keystone pipeline is not approved, says Ralph Glass, director of energy valuation and operations at Calgary-based petroleum industry consultancy AJM Deloitte, "there will be a stronger push for sending the oil offshore. In January, Canadian energy and environment authorities will begin hearings on a proposed 550,000-barrel-per -day pipeline from Alberta to Kitimat, British Columbia. And Houston-based pipelines giant Kinder Morgan is thinking about expanding its 300,000-barrel-per -day pipeline to Vancouver and Seattle to 700,000 barrels per day. It could also add a branch line to Kitimat. The Keystone XL pipeline proposed by Calgary-based pipeline operator TransCanada could transport up to 900,000 barrels a day. Protestors are concerned by the environmental impact of oil sands developments: mining of shallow bitumen deposits has transformed boreal forests and left behind toxic tailings ponds that pose a threat to wildlife and drinking-water supplies. Oil sands production also results in greenhouse-gas emissions. Large volumes of natural gas are used to extract buried bitumen and then upgrade it to pipeline-ready crude. A life-cycle assessment project by researchers at the University of Toronto and the University of Calgary's Institute for Sustainable Energy, Environment and Economy have estimated that driving one kilometer on gasoline from oil sands crude releases the equivalent of 260 to 350 grams of carbon dioxide, compared to 250 to 280 for gasoline from conventional oil. Proposed projects could boost Alberta's output of crude from the oil sands from 1.5 million barrels a day last year to five million barrels per day by 2020. But Alberta is unlikely to max out the crude export capacity on existing pipelines for at least another decade, according to a December 2010 analysis by the Pembina Institute, an Alberta-based environmental group and longtime critic of both the oil sands industry and additional pipeline capacity. Glass at AJM Deloitte predicts that oil sands producers will add enough capacity to fill both of the proposed pipelines to Canada's west coast, and he expects at least one to proceed, despite the unpopularity of increased tanker traffic and opposition from aboriginal nations along the proposed routes. Pressure from the oil industry will win the day, says Glass, because of the immense economic value that the pipelines promise—particular ly if Keystone XL were to be blocked. Currently, Canadian oil producers must sell to U.S. refiners, a weak bargaining position that Glass blames for much of the $10- to $15-per-barrel discount on Canadian crude sold into the U.S. relative to crude imported from offshore. The oil sands have one market, and it's flat or declining. There has to be an alternative, says Glass. Environmentalists take a starkly different view to the potential for expanded western pipeline routes. In his December 2010 analysis, for example, Pembina Institute senior policy analyst Nathan Lemphers argues that the Asian market is not eager for oil sands crude. He says northern China could refine less than 400,000 barrels a day of the heavy crude produced by oil sands operators. He also notes that Calgary-based Enbridge has yet to firm up contracts for its proposed Kitimat pipeline.  (Sep 14, 2011 | post #1)

More Oil Rigs Could Leave the Gulf Unless Polices Are Ch...

Paweena Oil & Gas,s.a Up to 20 oil rigs could leave the Gulf of Mexico, in addition to the 11 that have already left, since the Obama Administration imposed a moratorium on deepwater oil and gas drilling in May 2010, a new report from FBR Capital Markets has concluded. Unless the permitting process is accelerated, FBR analysts anticipate that anywhere from eight to 20 rigs could depart the deep waters within the Gulf. The moratorium was imposed in response to the explosion of British Petroleum’s (BP) Macondo oil well on April 20 of last year. The accident resulted in the death of 11 workers and caused an estimated five million barrels of crude oil to spill into the Gulf. Although federal officials announced they were lifting the restrictions last October, a “de-facto moratorium” remains in effect that stifles energy production and undermines large and small businesses in the Gulf region, industry officials have argued. “I don’t think the people in Washington D.C. who implement these policies have an understanding of how much this has impacted our economy, especially in Louisiana,” Renee Baker, the state director for the National Federation of Independent Business (NFIB), has observed. “We can’t just look at the large businesses to understand what’s happening, there are small businesses that do a lot of services for the rigs and they have been set back.” Although the Department of Interior (DOI) has been issuing permits with “relatively few political barriers,” according to the report, there are “limited bureaucratic resources” available to meet existing demands. But Bonner Cohen, a senior fellow with the National Center for Public Policy Research (NCPPR), does see a political agenda at work. “What you are seeing in Louisiana is only a small piece of larger mosaic being put together by the Obama Administration to make affordable energy as inaccessible as possible,” he said. “From the administration’s war on coal to the serious consideration it is giving to imposing a nationwide regulation of hydraulic fracturing, to its shut down of deepwater drilling in the Gulf of Mexico, to its ‘endangerment finding’ from the EPA [Environmental Protection Agency], the administration is practicing its own form of selected industrial sabotage.” The backlog of permits that have been approved, but not activated, must reach a level of 60 as opposed to the 30 that were counted at the end of August to support the active rig count, which now stands at 20, the report says. The current pace permitting pace is down dramatically from where it has been in recent years. Historically, there have been three times the number of permits in backlog than there have been deepwater rigs operating in the Gulf, FBR analysts point out. “Between 2006 and 2010, there were typically three times the number of permits in backlog than there were deepwater rigs working in the GOM (Gulf of Mexico),” the report says. “…Using the August 2011 pace of eight unique well APDs (A Permit to Drill) per month, the best-case scenario would be a rig count of just 14 rigs, less than the 28 marketed rigs in the Gulf. However this assumes sustainable just in-time permitting which, in our opinion, is unlikely. Based on the historical 3X ratio between APD backlog and rig count, a pace of 27 permits per month would be needed to support 28 rigs by the end of the year.” FBR has also identified “structural headwinds” that include “hiring and funding constraints, potential safety and permitting legislation, pending drilling safety regulation revisions and ongoing environmental litigation,” that will specifically impact the Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE)’s ability to improve upon the current pace of permitting. In a letter addressed to DOI Secretary Ken Salazar and BOERME Director Michael Bromwich, Sen. David Vitter (R-La.) expressed his “ongoing concern with the pace of permitting for offshore production in the Gulf of Mexico.  (Sep 14, 2011 | post #1)

W.O. Demand Forecasts Cut by IEA as Global Economic Recov...

Paweena Oil & Gas,s.a - Caracas. The International Energy Agency cut global oil demand forecasts for this year and next as the economic recovery falters. The Paris-based adviser reduced its estimate for 2012 consumption by 400,000 barrels a day, and for 2011 by 200,000 a day. Worldwide demand will rise by 1.2 percent to 89.3 million barrels a day this year and by 1.6 percent to 90.7 million next year. The full resumption of Libyan exports following the ouster of Muammar Qaddafi will be “long and difficult,” it said. “Global oil demand continues to expand at only a tepid pace,” the IEA said today in its monthly Oil Market Report. “There are certainly growing concerns about the health of the global economy.” Brent crude futures have dropped 11 percent from a 2011 peak of $127.02 a barrel reached in April, as Europe’s sovereign debt crisis spreads and global manufacturing slows. Brent fell below $112 today after the release of the report. Worldwide gross domestic product will expand by 4.2 percent next year, less than the 4.4 percent previously expected, the agency said. “The IEA is more bearish than before, but I’m a little more pessimistic,” said Christophe Barret, a London-based analyst at Credit Agricole CIB whose prediction for 2011 demand growth is 200,000 barrels a day less than the agency’s forecast. “The demand side will be weak. The impact of prices on growth is starting to show with the slowdown in economic activity.” ‘Call on OPEC’ Supplies from the Organization of Petroleum Exporting Countries may be sufficient to meet demand over the next three quarters without the need for more production increases, the IEA said. The estimated demand for OPEC crude, or “call on OPEC,” will average 30.5 million barrels a day in the fourth quarter, close to the group’s production rate in August of 30.26 million a day, according to IEA estimates. “That suggests that the recent spell of market tightening could moderate in the short-term, assuming that recent supply disruptions also recede,” the agency said. OPEC’s 12 members collectively bolstered production by 165,000 barrels a day last month, led by increases in Saudi Arabia and Nigeria. That still left OPEC crude supply below the estimated level of demand for that oil this quarter, estimated at 31.3 million barrels a day, the report showed. OPEC, responsible for 40 percent of global oil production, also trimmed demand estimates in its monthly report yesterday. Slower Resumption The IEA predicted a slower resumption of output in Libya than the producer group. The North African nation will likely restore output to 350,000 to 400,000 barrels a day by the end of this year, from zero last month, according to the IEA. OPEC forecast that Libya can reach 1 million barrels a day within six months and full capacity within 18 months. The agency lowered its forecasts for oil supplies from outside OPEC, by 200,000 barrels a day this year because of field maintenance in the North Sea and Kazakhstan, and by 150,000 a day in 2012 amid weaker-than-expect ed output of natural gas liquids. Non-OPEC producers will boost shipments by 0.4 percent to 52.8 million barrels a day this year, and by 1.9 percent to 53.8 million a day in 2012. Lower production caused oil stockpiles in developed nations to fall below their five-year average for the first time since 2008, according to the report. Inventories held by companies were at 2.687 billion barrels in July, or 58.4 days worth of consumption, after increasing 10.8 million barrels that month, less than half the typical increase for the time of year.  (Sep 14, 2011 | post #1)

Gulf of Mexico oil leak Confirmed By Chevron

Paweena Oil & Gas,s.a A leak from a shallow water crude oil pipeline in the Main Pass Area of the Gulf of Mexico has led Chevron to shut down its offshore Louisiana Main Pass pipeline network, the company said on Tuesday. Chevron has also shut its Cypress line, the company said. About 15,000 barrels per day (bpd) of crude oil production was shut in due to the pipeline leak, Chevron said. The company said late on Tuesday it will resume partial production within 24 hours. Chevron did not reply to several requests for additional information about the leak and its operations in the Main Pass Area. Carol Fagot, a spokeswoman at the Federal Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), said the agency was "aware of the report and looking into it," without offering further details. Both the U.S. Coast Guard and the Louisiana Oil Spill Coordinator's Office said they had not been informed of a leak off the coast. Chevron has two offshore platforms in the Main Pass 299 block, according to the company's website. The site is located in shallow waters about 40 miles east of Venice, Louisiana, and has produced heavy oil, natural gas and sulfur, according to government records. Chevron said the leak was from a 10-inch riser pipelines in Main Pass Block 299. Riser pipelines normally carry crude from the seabed to production platforms. Chevron also shut its line known as Cypress since "Main Pass is the only connecting pipeline system currently providing volumes into Cypress," the company said. The Cypress pipeline feeds a crude terminal known as Empire on the Mississippi River in Louisiana, delivery point for cash crude Heavy Louisiana Sweet. Empire usually handles between 230,000 and 275,000 barrels a day, Chevron's website said. The Empire terminal was still operating, a trade source said, although it wasn't clear whether flows into the terminal had been disrupted. The Gulf of Mexico was the site of the worst-ever U.S. offshore oil spill last year when BP's Macondo well released more than 4 million barrels of crude from a blown out well offshore Louisiana.  (Sep 14, 2011 | post #1)

Crude oil growth to outstrip new condensate supply

The world will see far more incremental barrels of heavy crude in the market over the next two decades than the additional condensate supply that will come on stream, according to an analyst at Hart Energy, a provider of specialized data and information products to the energy industry. Global crude production is expected to grow from 73.5 million b/d in 2010 to 93 million b/d in 2030, of which heavy crude oil (API gravity of less than 22 degrees) will account for 38% and condensates and natural gas liquids or NGLs for 14%, Hart Energy's executive director for refining, planning and evaluation, Rodrigo Favela, told a recent industry conference in Singapore. The percentages translate to around 7.4 million b/d of new heavy crude oil supply over the next 20 years, and approximately 2.73 million b/d of condensates and NGLs. Going into 2030, heavy crude supply should rise further to around 16 million b/d, according to Hart research, with growth coming from all regions except Europe and the former Soviet Union countries, and concentrated on the Americas. The remainder of the 19.5 million b/d increase in oil supply will come from biofuels (19%), gas-to-liquids/coa l to liquids (9%), light/medium crude (5%), shale oil (6%), and synthetic crude oil (9%), Favela told the 27th Asia Pacific Petroleum Conference in Singapore September 7. Asked about the relative production cost of unconventional oil, Favela pegged it at $40-60/b for Canada's syncrude, around $38/barrel for US shale oil, and "less than $35/barrel" for Venezuela's Orinoco production. GASOIL TO ACCOUNT FOR HALF THE RISE IN PRODUCTS DEMAND Meanwhile, Favela projects global refined products consumption to rise from 86.6 million b/d in 2010 to 113.5 million b/d in 2030, a compound annual growth rate of 1.5%. Gasoil will account for 49% of that increment, followed by gasoline at 15%, LPG at 9%, naphtha at 8% and jet fuel at 7%, he said. Residual fuels will have the smallest share of the growth, accounting for 3%, with total consumption declining from a little over 10 million b/d in 2008 to just over 8 million b/d by 2030. All of that decline will come from the industrial/power sector, with bunker fuel demand rising slightly from just under 4 million b/d now to just over that level in 2030, Favela predicted. The increase in bunker fuel consumption will happen despite a portion of the market switching from residual to distillate marine fuel because of new low sulfur specifications, he added. The Middle East is projected to become the center of the marginal refined product barrel supply to the world markets, Favela said. In the global refining sector, Favela sees overcapacity until 2015, characterized by low and volatile refining margins. But beyond 2015, growth in demand will mop up the surplus and boost margins, he predicted. The evolution of the refining sector in the industrialized world will be marked by capacity rationalization, accommodation of biofuels, and a rebalancing to focus on more gasoil demand, he said. In the developing world, Favela projects a 2.5% annual growth in refining capacity because of expanding populations and growing economies and a focus on cleaner fuels. Both gasoline and gasoil markets will continue to evolve into less than 10 ppm sulfur going into 2030, with gasoline leading the way and gasoil following more slowly. High sulfur gasoil will retain 25% of the gasoil demand by 2030, mainly for industrial and bunker use, he estimated. Desulfurization of fuel oil is unlikely, according to Favela, with ships being economically retro-fitted or constructed with exhaust gas after-treatment, or scrubbers.  (Sep 14, 2011 | post #1)

All Eyes On Venezuela, US Skeptical 0f Plan To Hike Venez...

Venezuela plans to boost oil output at least 12 percent in a joint venture with foreign investors that will cost more than twice what the government previously estimated, a confidential document shows. The project would increase Venezuela’s daily output of 3 million barrels a day by 400,000 barrels a day within seven years, according to the document, which was obtained by Bloomberg News. The project would cost $18.4 billion, the report says, up from Energy and Oil Minister Rafael Ramirez’s June estimate of $8 billion. The new estimate follows a 76 percent drop in oil prices from record highs in July and decisions by companies to delay exploration and drilling efforts from Canada to Kuwait amid the global credit squeeze. State-owned Petroleos de Venezuela SA wants the project and two others in the Orinoco oil belt to be the government’s first ventures with outsiders since President Hugo Chavez nationalized crude assets in 2007. “It will be very tricky for companies, big or small, to get that level of funding,” said David Thomson, a Latin America energy analyst for Wood Mackenzie in Edinburgh. “Even if there wasn’t a credit crunch on, raising $10 billion to $20 billion for Venezuela wouldn’t be the easiest.” Venezolana de Petroleo, said in a text message that the document is authentic. His company is a unit of Petroleos de Venezuela, also known as PDVSA. The costs include $4.41 billion for drilling, $2.2 billion for steam injection to increase production and $6.51 billion for equipment to convert that region’s tar-like oil into a free- flowing, low-sulfur crude oil for export, according to the plan. The project is located in the Carabobo area of the Orinoco belt, about 450 kilometers (280 miles) from Caracas. Venezuela aims to produce 4.94 million barrels a day by 2013. On Oct. 30, PDVSA opened bidding to find partners for the ventures in the Orinoco, which rivals Saudi Arabia’s reserves and Canada’s tar sands among the biggest petroleum deposits. The country is seeking billions of dollars as oil companies including Marathon Oil Corp. and Hess Corp. rein in spending because of slumping prices and demand. Oil has dropped more than $100 a barrel from a record high of $147.27 a barrel on July 11. Exxon Mobil Corp., the largest U.S. oil producer and ConocoPhillips, the third largest, are banned from bidding after pursuing arbitration against Venezuela over assets seized by Chavez’s government in 2007. Exxon wrote off $750 million and Conoco $4.51 billion. Italy’s Eni SpA settled an arbitration case a year ago to regain access to the country’s oil fields. “Investors and suppliers will be very cautious of investing in a country where the private sector is being squeezed out,” said Gianna Bern, president of Brookshire Advisory and Research Inc., an energy economics and corporate finance research company in Flossmoor, Illinois. Venezuela said it produces 3 million barrels a day of oil. According to a Bloomberg News survey of oil companies and analysts, output has fallen to 2.15 million barrels daily, from 2.61 million barrels in 2004. In 2003, PDVSA forecast that it would be producing 4.4 million barrels a day by 2008. The country reaped $34 billion in royalties and taxes in the first nine months of 2008, more than half the national budget. Such funds have enabled Chavez to provide education, health care and low-cost food for what he terms the “Bolivarian Revolution” social movement in Venezuela. Chavez won a referendum on Feb. 15 that will allow him to run for re-election indefinitely after voters approved an amendment to the constitution scrapping presidential limits. PDVSA is offering partners a 40 percent stake in a joint venture to develop the project, according to the development plan. The contract would be for as long as 40 years.  (Sep 14, 2011 | post #1)

Venezuela's presidential election will be held on October...

"Paweena Oil & Gas,s.a" Tuesday's announcement of the date sounds the starting gun for what is expected to be a close race between Chavez, who is being treated for cancer, and an opposition unity candidate to be picked in a February primary. Chavez, 57, has dominated politics in Venezuela since 1999 and said on Tuesday he expects to rule for at least two more six-year terms until 2025. The National Election Board's announcement of an October 7 date ended months of speculation over the timing of the vote. The opposition has scheduled its primary election for February 12, with a youthful state governor, Henrique Capriles Radonski, the favorite to win. The October date gives them plenty of time to run a campaign, and also gives Chavez more than a year to get his health back on track. He is due to start a fourth round of chemotherapy within days, after cancer surgery in June. Boris Segura, senior economist at Nomura International Securities in New York, said election authorities had chosen a sensible date, even though they had brought it forward from December when Venezuela traditionally holds presidential votes. "This is very constructive news, in that it provides the opposition with enough time to campaign after it chooses its candidate in February," he said. Opposition leaders, who had feared the election may be brought even further forward to try and wrongfoot them, expressed satisfaction. "Elections in October 2012 allow us a long and comfortable campaign," one of them, Henry Ramos Allup, told reporters. Parliamentary elections last year showed Venezuelans evenly divided between pro-Chavez and pro-opposition voters. Analysts say up to a third of Venezuelans remain undecided ahead of the presidential vote, meaning the campaign period will be crucial and potentially fiery.  (Sep 14, 2011 | post #1)

Venezuela climbs to 3.7% increase in oil production in Au...

Paweena Oil & Gas,s.a : Venezuela Oil On A High Demand. The crude oil production of the Organization of the Petroleum Exporting Countries (OPEC), based on secondary sources, show that Venezuela's output fell 17,000 barrels to 2.4 million barrels per day (bpd) in August compared with July 2011. However, Venezuela's oil production in August (2.4 million) is 3.7% higher than Venezuela's output in August 2010, when the South American country's oil production amounted to 2.31 million bpd, according to OPEC's estimates. Venezuela's oil output in August is slightly above the country's average production in the first two quarters of 2011, when crude oil production was 2.37 million bpd (January-March) and higher than 2.35 million bpd (April-June). Weaker-than-expect ed demand OPEC's oil output rose 2.6% in August 2011 compared with the same month in 2010, the organization of oil producers reported. Further, the OPEC made a downward revision of its forecast for global oil demand in 2011. The organization said it expected demand to decline to 1.1 million bpd worldwide. That is a reduction of 150,000 bpd from earlier forecasts. The organization said that the downward adjustment was due to a weaker-than-expect ed summer driving season in the United States and the ongoing sluggish economic performance in the OECD countries.  (Sep 14, 2011 | post #1)

Paweena Oil & Gas,s.a ( Fundamentals of Petroleum Refining )

July 27, 2011 - July 30, 2011 PAWEENA OIL & GAS,S.A DISTRICTO CAPITAL. VENEZUELA. You don't need an engineering degree to understand the fundamentals of petroleum refining! This exciting programme is designed to introduce non-technical oil industry members to the fascinating field of petroleum refining. Learn how a refinery works and how refinery operations affect global oil and product prices. Class delegates include anyone who needs to understand how this cornerstone of the petroleum industry works. New members of the industry will be given a great introduction to the industry. Marketing personnel will grasp the intricacies of how the products they market come to exist. Those from the service side of the industry (brokerage, software, consulting) will get a first-hand view of this the most fundamental aspect of the oil industry.  (Jul 26, 2011 | post #1)

Paweena Oil & Gas,s.a ( BP tries to soothe investors as Q...

BP chief executive Bob Dudley yesterday promised long-term growth after a weak performance for the next few months, in an attempt to ease investors’ frustration at the oil major’s sluggish share price. BP reported second-quarter replacement cost net income of US$5.31 billion, compared with a loss of US$16.97 billion in the same period last year that included the cost of tackling its massive Gulf of Mexico oil spill. The underlying results fell short of analysts’ forecasts as it benefited less than rivals are expected to from a 50 percent rise in crude prices from a year ago. The company said maintenance work in the North Sea and Angola and continued outages in the Gulf of Mexico had weighed on results in the quarter and would continue to affect performance in the second half of the year. Dudley said deals to secure new reserves this year would help drive performance next year and in 2013. BP investors are frustrated at the share price, which has failed to recover materially in the past nine months despite some progress in oil spill lawsuits and indications the final bill will be less than many earlier feared. Some investors feel the CEO lacks a clear strategy for recovery. Dudley addressed the frustration, telling shareholders: “We are committed to seeing the true value of the business more strongly reflected in our share price.” BP said oil and gas production fell 11 percent in the quarter to 3.43 million barrels of oil equivalent per day, after the company sold fields to pay for the spill. The company again increased its estimate for the cost of dealing with the spill, adding about US$500 million to the bill, although contributions of US$1.1 billion from partners allowed the total charge taken by BP to be reduced. Excluding one-offs, the replacement cost result was US$5.61 billion, below an average forecast of US$6.02 billion, from a Reuters poll of 12 analysts.  (Jul 26, 2011 | post #1)

Paweena Oil & Gas,s.a ( Canada seeks Indian investment in...

(IANS) Canada is set to increase involvement in India's small and medium enterprise (SME) sector, besides scouting for Indian investment in coal exploration and education, a diplomat said Tuesday. Canadian High Commissioner to India Stewert Beck also said that the Comprehensive Economic Partnership Agreement (CEPA) between the two countries would be finalised by 2013. "Canada aims to invest in India on a large scale, especially in the SME sector. Currently there are 250 Canadian SMEs in India. We hope to increase it to 750 SMEs through client acquisition," said Beck. He said with the likely finalisation of CEPA by 2013, bilateral trade between the two countries will see a quantum leap. "The current quantum of trade is about $4.5 billion, which is insignificant, " he said. The envoy invited Indian investment in Canada, especially in coal exploration and education. "Countries like Japan have invested in these sectors. There is no reason why Indian companies cannot do the same." He was speaking at an interactive session organised by the Confederation of Indian Industries (CII).  (Jul 26, 2011 | post #1)

Paweena Oil & Gas,s.a ( Forming Oil )

Oil comes from the remains of tiny plants and animals (plankton) that died in ancient seas between 10 million and 600 million years ago. After the organisms died, they sank into the sand and mud at the bottom of the sea. Over the years, the organisms decayed in the sedimentary layers. In these layers, there was little or no oxygen present. So microorganisms broke the remains into carbon-rich compounds that formed organic layers. The organic material mixed with the sediments, forming fine-grained shale, or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat on the source rock. The heat and pressure distilled the organic material into crude oil and natural gas. The oil flowed from the source rock and accumulated in thicker, more porous limestone or sandstone, called reservoir rock. Movements in the Earth trapped the oil and natural gas in the reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble. These movements of the Earth include: Folding - Horizontal movements press inward and move the rock layers upward into a fold or anticline. Faulting - The layers of rock crack, and one side shifts upward or downward. Pinching out - A layer of impermeable rock is squeezed upward into the reservoir rock.  (Jul 26, 2011 | post #1)