Petroleum Intelligence Weekly articles from March 2003

Petroleum Intelligence Weekly archives from March 2003

Iraq upstream expansion plans ignore war.
March 3, 2003... Despite the threat of imminent war, burdensome sanctions, and the uncertain status of upstream deals with foreign oil companies, Iraq is forging ahead with a 10-year plan drawn up last year that aims to bring on stream early oil production from...

Opec pours trouble on oily waters.
March 3, 2003... Opec finds itself in a bind in the run up to a probable war in Iraq and its next meeting in mid-March. The producer group has proved adept at compensating for lower Venezuelan supplies while also moving more oil closer to markets ahead of any...

Big Oil role in fuel cells looks secure.(oil companies will help develop hydrogen fuel cells for vehicles)
March 3, 2003... Keen to cut US dependence on oil imports, President George W. Bush has become an unlikely champion of environmentally friendly hydrogen-powered fuel cells. Bush revealed in January surprise plans to spend $1.2 billion over five years to help...

Low stocks, high prompt prices feed each other.(Industry Overview)
March 3, 2003... It goes without saying that absolute oil stock levels, which have slipped to just 5.79 billion barrels globally, are unusually low. And at 2.4 billion bbl, global oil inventories on land in the OECD look much like they did in early 2000, when...

BHP bides its time, Woodside can wait.(Australia's big three oil companies-- BHP Billiton, Woodside, and Santos-- start overseas operations; merger possible)
March 3, 2003... Australia's big three oil companies--BHP Billiton, Woodside, and Santos--have all embarked on overseas adventures to offset dwindling opportunities at home. But for how long will the trio pursue separate development? Talk persists that BHP...

Same players, new turf for Spain's utilities.
March 3, 2003... Despite its liberalization, Spain's gas and electricity market is still firmly in the grip of established giants, while potential challengers gripe about financial, tariff, and regulatory obstacles to entry. Endesa and Iberdrola, the top...

Exxon, Chevron strive for softer tone.(admit need for environmental conscience)
March 3, 2003... No one will ever confuse the Exxon Mobil tiger for a warm and fuzzy kitten, but some of the supermajor's recent public comments seem much more conciliatory than previous rhetoric. For example, while it still opposes the Kyoto Protocols as based...

Corporate--Devon Energy is to acquire Ocean Energy in a $3.5 billion all-stock deal that will make it the biggest US independent and give it a significant deepwater exploration presence in the US Gulf of Mexico and West Africa. (General).(Brief Article)
March 3, 2003... CORPORATE--Devon Energy is to acquire Ocean Energy in a $3.5 billion all-stock deal that will make it the biggest US independent and give it a significant deepwater exploration presence in the US Gulf of Mexico and West Africa. The duo...

Algeria -- the next big natural gas development has attracted a full field of international players with some 12 technical bids being submitted for the $2 billion Gassi Touil integrated gas project. (Countries).(Brief Article)
March 3, 2003... ALGERIA -- The next big natural gas development has attracted a full field of international players with some 12 technical bids being submitted for the $2 billion Gassi Touil integrated gas project. The project entails developing some 10 Bcm/yr...

Equatorial Guinea -- US independent Amerada Hess scored again with a successful appraisal well in a new area south of its producing Ceiba field. (Countries).(Brief Article)
March 3, 2003... EQUATORIAL GUINEA -- US independent Amerada Hess scored again with a successful appraisal well in a new area south of its producing Ceiba field. The 12,565 foot G-13-2 well on Block G encountered 397 feet of net oil pay two miles southeast of...

Iraq -- a smuggling scheme allegedly devised by Jordanian businessmen and local officials was thwarted before the proceeds of illicit sales of millions of barrels of crude could escape UN control. (Countries).(Brief Article)
March 3, 2003... IRAQ -- A smuggling scheme allegedly devised by Jordanian businessmen and local officials was thwarted before the proceeds of illicit sales of millions of barrels of crude could escape UN control. The plan was to load a number of tankers at the...

Japan -- yet another attempt to launch a crude futures contract in Asia will be made by Japan Oil Exchange (Jox) in April, with the unique feature of basing its prices on the Japan Crude Cocktail (JCC), which is traditionally used as the base price for Japan's LNG imports (PIW Feb. 17,p5). (Countries).(Brief Article)
March 3, 2003... JAPAN -- Yet another attempt to launch a crude futures contract in Asia will be made by Japan Oil Exchange (Jox) in April, with the unique feature of basing its prices on the Japan Crude Cocktail (JCC), which is traditionally used as the base...

Japan -- in addition to slashing debt and boosting spending, Cosmo Oil plans to push deeper into the local LNG market in a radical effort to ensure its survival. (Countries).(Brief Article)
March 3, 2003... JAPAN -- In addition to slashing debt and boosting spending, Cosmo Oil plans to push deeper into the local LNG market in a radical effort to ensure its survival. Cosmo plans to reduce debt by 6.5% to $4.4 billion over the next three years,...

Kazakhstan -- BG of the UK is quietly sounding out the market with a view to finding a buyer for half its 16.67% stake in the big Kashagan oil and gas field. (Countries).(Brief Article)
March 3, 2003... KAZAKHSTAN -- BG of the UK is quietly sounding out the market with a view to finding a buyer for half its 16.67% stake in the big Kashagan oil and gas field. BG currently has the same interest as ENI, which is the operator, Royal Dutch/Shell,...

Nigeria -- helped by windfall revenues from high oil prices, President Olusegun Obasanjo is living up to his promise to repay arrears before presidential and gubernatorial elections on Apr. 19. (Countries).(Brief Article)
March 3, 2003... NIGERIA -- Helped by windfall revenues from high oil prices, President Olusegun Obasanjo is living up to his promise to repay arrears before presidential and gubernatorial elections on Apr. 19. State oil company Nigeria National Petroleum Corp....

Russia -- Gazprom chief executive Alexei Miller has sacked three of his top managers in the latest round of a long-running management reshuffle aimed at consolidating financial control of the gas monopoly. (Countries).(Brief Article)
March 3, 2003... RUSSIA -- Gazprom chief executive Alexei Miller has sacked three of his top managers in the latest round of a long-running management reshuffle aimed at consolidating financial control of the gas monopoly. Shown the exit are Nikolai Gornovsky,...

Russia -- crude oil production continues to ramp up but the tempo is slowing as export bottlenecks threaten to curtail oil companies' growth plans. (Countries).(Brief Article)
March 3, 2003... RUSSIA -- Crude oil production continues to ramp up but the tempo is slowing as export bottlenecks threaten to curtail oil companies' growth plans. Output rose by 88,500 b/d in January to 8.03 million b/d from December levels, which is a...

Saudi Arabia -- last week saw more heavy spot tanker chartering by Saudi Aramco's Vela shipping arm. (Countries).(Brief Article)
March 3, 2003... SAUDI ARABIA -- Last week saw more heavy spot tanker chartering by Saudi Aramco's Vela shipping arm. In the space of just three days, Vela fixed five very large crude carriers (VLCCs) to load 11 million bbl of crude between Mar. 9 and 23--at a...

United Kingdom -- a new energy policy White Paper focused on environmental issues at the expense of pressing questions about energy supply security and drew industry criticism for lacking substance. (Countries).(Brief Article)
March 3, 2003... UNITED KINGDOM -- A new energy policy White Paper focused on environmental issues at the expense of pressing questions about energy supply security and drew industry criticism for lacking substance. The country will likely become a net gas...

United States -- a relentlessly tightening market has made high natural gas prices a virtual certainty through at least autumn. (Countries).(Brief Article)
March 3, 2003... UNITED STATES -- A relentlessly tightening market has made high natural gas prices a virtual certainty through at least autumn. Buyers last week were paying spot prices as high as $30/MMBtu, amid a combination of cold eastern weather, low...

Venezuelan oil recovers, but not quickly. (What's New Around the World).
March 3, 2003... Venezuela's oil production is crawling back from ruin and exports are picking up, but not at the rate declared by state Petroleos de Venezuela (PDV). The output level of 2 million b/d claimed for last week should be 1.5 million b/d, say...

The far too much east. (Marketview).(Far Eastern refineries have surplus crude oil supplies)(Industry Overview)
March 3, 2003... SINGAPORE -- US spot prices punched $40/bbl last week against a backdrop of low crude and product inventories, Venezuelan crude trickling back and replacement cargoes of Mideast crudes failing to quell the fevered market. But Eastern refiners...

Platts changes drive business to Argus.(low-sulfur fuel oil traders move to Petroleum Argus after Platts changes pricing)(Brief Article)
March 3, 2003... European low-sulfur fuel oil traders are leading the defection from Platts to rival price reporter Petroleum Argus following Platts' decision to overhaul its European products pricing methodology (PIW Dec.9,p10). Just a handful of low-sulfur...

PIW market indicators.(Petroleum Intellligence Weekly)(Illustration)
March 3, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $32.59 $31.90 $30.42 UK Brent (Dated) 33.42 32.84 ...

US natural gas market moves to higher level.(Brief Article)
March 10, 2003... No longer is it hyperbole to talk of a crisis in North American natural gas markets. Spot prices in New York were recently as high as $37.50 per million Btu, the equivalent of over $200 per barrel, amid record trading levels in New York...

How doing less was TransCanada's salvation.(President and Chief Executive Hal Kvisle explains)(Interview)
March 10, 2003... When the rest of the midstream natural gas business--the pipelines and marketers--still thought the road to financial success lay in expanded international and trading ventures, TransCanada PipeLines took a contrarian view. The Calgary-based...

Demand--global oil demand posted another strong month in February, preliminary estimates by PIW's sister publication Oil Market Intelligence show. (General).(Brief Article)
March 10, 2003... DEMAND -- Global oil demand posted another strong month in February, preliminary estimates by PIW's sister publication Oil Market Intelligence show. At an estimated 79.2 million b/d, total demand outpaced a year earlier by 2.8%, but fell by...

Earnings--Italy's ENI, the last European major to report, had operating profits of 2.1 billion [euro] ($2.3 billion) in the fourth quarter, leaving ENI at the bottom of the class among its European peers (PIW Feb.24,p8). (General).(Brief Article)
March 10, 2003... EARNINGS -- Italy's ENI, the last European major to report, had operating profits of 2.1 billion [euro] ($2.3 billion) in the fourth quarter, leaving ENI at the bottom of the class among its European peers (PIW Feb.24,p8). The result was down...

Industry restructuring--Canadian independent Talisman Energy expects to wrap up the delayed sale of its 25% stake in the Greater Nile oil project in Sudan to India's Oil & Natural Gas Corp. (ONGC) by the end of March. (General).(Brief Article)
March 10, 2003... INDUSTRY RESTRUCTURING -- Canadian independent Talisman Energy expects to wrap up the delayed sale of its 25% stake in the Greater Nile oil project in Sudan to India's Oil & Natural Gas Corp. (ONGC) by the end of March. Sources say that ONGC is...

Formula prices--reflecting a globally weaker market for heavier crudes, Saudi Arabia widened its April differential for Arab Medium and Arab Heavy for the US, Europe, and Asia, but some traders say the pricing of lighter grades is too high. (General).
March 10, 2003... FORMULA PRICES -- Reflecting a globally weaker market for heavier crudes, Saudi Arabia widened its April differential for Arab Medium and Arab Heavy for the US, Europe, and Asia, but some traders say the pricing of lighter grades is too high....

North sea--the UK is to release a second wave of 77 offshore license blocks and discoveries in a move to exploit previously undeveloped assets and boost production under the so-called Fallow Initiative, a joint government-industry project introduced last year. (General).(Brief Article)
March 10, 2003... NORTH SEA -- The UK is to release a second wave of 77 offshore license blocks and discoveries in a move to exploit previously undeveloped assets and boost production under the so-called Fallow Initiative, a joint government-industry project...

Algeria -- Total Fina Elf head Thierry Desmarest announced last week that the French major is "ready to invest more than $1 billion in the coming years in Algeria." (Countries).(Brief Article)
March 10, 2003... ALGERIA -- Total Fina Elf head Thierry Desmarest announced last week that the French major is "ready to invest more than $1 billion in the coming years in Algeria." Total appears to be pushing for a toehold in all aspects of the gas supply...

Azerbaijan -- in the latest blow to Baku's dreams of untold oil riches, ChevronTexaco and Total Fina Elf are pulling out of the Absheron exploration block in the Caspian Sea because the chances of finding any significant hydrocarbons are "infinitesimal," according to sources close to the consortium. (Countries).(Brief Article)
March 10, 2003... AZERBAIJAN -- In the latest blow to Baku's dreams of untold oil riches, ChevronTexaco and Total Fina Elf are pulling out of the Absheron exploration block in the Caspian Sea because the chances of finding any significant hydrocarbons are...

India -- the welcome mat for foreign oil investors has gotten bigger, with 100% ownership of oil and natural gas pipelines to be allowed for the first time, up from a previous ceiling of 51%. (Countries).(Brief Article)
March 10, 2003... INDIA -- The welcome mat for foreign oil investors has gotten bigger, with 100% ownership of oil and natural gas pipelines to be allowed for the first time, up from a previous ceiling of 51%. Foreign companies can already hold 100% equity in...

Iraq -- some two-thirds of all official crude oil exports in February were bound for the Americas, while roughly one-third went to Europe, and Asian sales dropped to a trickle. (Countries).(Brief Article)
March 10, 2003... IRAQ -- Some two-thirds of all official crude oil exports in February were bound for the Americas, while roughly one-third went to Europe, and Asian sales dropped to a trickle. The volume of crude leaving for the US, Canada, Brazil, and the...

Russia -- barely a month after BP agreed to plow $6.75 billion into a joint venture with Tyumen Oil Co. (TNK) to create Russia's third largest oil company, one of its most significant assets is under threat. (Countries).(Brief Article)
March 10, 2003... RUSSIA -- Barely a month after BP agreed to plow $6.75 billion into a joint venture with Tyumen Oil Co. (TNK) to create Russia's third largest oil company, one of its most significant assets is under threat. Russia's Natural Resources Ministry...

Russia -- despite winter storms and ice that hampered port loadings, crude and products exports edged up by 119,000 b/d in February from the month before. (Countries).(Brief Article)
March 10, 2003... RUSSIA -- Despite winter storms and ice that hampered port loadings, crude and products exports edged up by 119,000 b/d in February from the month before. Crude exports by sea and pipeline climbed by 10,000 bid to 2.432 million b/d, but were...

Russia -- oil production could rise to roughly 11.5 million b/d by 2012, according to bullish new forecasts from Tyumen Oil Co. (TNK), potentially driving up exports to the US to 1.5 million b/d by 2008. (Countries).(Brief Article)
March 10, 2003... RUSSIA -- Oil production could rise to roughly 11.5 million b/d by 2012, according to bullish new forecasts from Tyumen Oil Co. (TNK), potentially driving up exports to the US to 1.5 million b/d by 2008. "My data are more optimistic than most...

Global supply on the up.(Brief Article)
March 10, 2003... Global supply shot up rapidly in February as production returned in Venezuela and other Opec producers continued to push up production due to concerns about potential loss of Iraqi oil (pi). Global output is estimated to have climbed to 79.86...

Scream if you want more. (Marketview).(New York Mercantile Exchange (Nymex) light, sweet crude futures)
March 10, 2003... LONDON -- Crude oil traders may be dizzy from last week's roller-coaster ride on New York Mercantile Exchange (Nymex) light, sweet crude futures--often called WTI futures--but it doesn't look like any are ready to get off yet. After...

Japan grows oil stockpile, diversifies sources of supply.(Brief Article)
March 10, 2003... Japanese crude oil stockpiling is becoming apparent in addition to subtle diversification away from traditional Middle East crude suppliers. Crude imports stood at 4.69 million b/d in January, up 13.8% from a year earlier. The UAE and Iran...

PIW market indicators.(Brief Article)
March 10, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $32.01 $32.41 $31.47 UK Brent (Dated) 33.79 33.62 32.81 UK...

Opec battles on all fronts ahead of war.
March 17, 2003... Opec is fighting a tough battle on several fronts even before a single drop of Iraqi oil is lost. The producer group is resigned to the fact that it is powerless to cap a raging futures rally that has sent crude to 12-year highs and threatens...

Iraq is well primed for big oil opening. (Eye on Iraq).
March 17, 2003... With US military action against Iraq now a real possibility, the waiting is almost over. Months of oil market tensions would find release in a swift and decisive outcome. Further out, the consequences of `regime change' for Iraq's future oil...

LNG supply shock would hit Asia hard. (Eye on Iraq).
March 17, 2003... Another worry on the world's long list of anxieties about a war on Iraq is the security and reliability of liquefied natural gas (LNG) supplies. Long-haul LNG is still only a marginal source of gas supply in Europe, which is anyway well stocked...

As prices rise, hedging losses are mounting.
March 17, 2003... It seemed like a good idea at the time. That's what many producers must be thinking about their decision to hedge production this year, as they watch oil and gas prices soar higher with each new day. The industry could be leaving a lot of money...

BP woos back investors, and outshines shell.
March 17, 2003... BP has spent a month schmoozing with investors since it unveiled a headline-grabbing tie-up with Russia's TNK, marketing its new strategy and trying to recover lost credibility after last year's volume growth debacle. The TNK deal has generated...

EU tanker ban could cause chaos.
March 17, 2003... European Union (EU) moves to speed up the phase-out of single-hulled tankers in the wake of the sinking of the Prestige late last year could cause widespread disruption to regional product markets. If current proposals are implemented as...

Big oil wary of reaching into Russia.
March 17, 2003... BP's blockbuster deal with Tyumen Oil Co. (TNK) to create Russia's third largest oil firm was certainly hold. But BP is alone among its peers in wading so deep into Russia's fiscal and legal minefield. Similar deals by others look unlikely...

Electricity--wind power is hitting the big time in Europe, but the unreliable nature of this generation technology means that it is not a viable alternative to other sources of baseload generation such as nuclear or coal, which are set to decline over the next decade. (General).(Brief Article)
March 17, 2003... ELECTRICITY -- Wind power is hitting the big time in Europe, but the unreliable nature of this generation technology means that it is not a viable alternative to other sources of baseload generation such as nuclear or coal, which are set to...

IEA--it's all a matter of liming. (General).(Brief Article)
March 17, 2003... IEA -- It's all a matter of liming. So says the International Energy Agency's monthly report released last Wednesday morning, hot on the heels of Opec's meeting in Vienna (p 1). The IEA notes that although an Iraqi outage now would far exceed...

Industry Restucturing--Spanish Gas Natural (GN) launched an aggressive $16.8 billion takeover bid for leading electricity firm Iberdrola. (General).(Brief Article)
March 17, 2003... INDUSTRY RESTRUCTURING -- Spanish Gas Natural (GN) launched an aggressive $16.8 billion takeover bid for leading electricity from Iberdrola. But the move looked to have backfired, as GN's shares plunged 15% and its board fell out over the move....

LNG--Exxon Mobil is poised for a major initiative involving LNG delivery to the US, most likely based around its proposed two 7.5 million ton/yr train Qatargas-2 project in the Mideast Gulf state. (General).(Brief Article)
March 17, 2003... LNG -- Exxon Mobil is poised for a major initiative involving LNG delivery to the US, most likely based around its proposed two 7.5 million ton/yr train Qatargas-2 project in the Mideast Gulf state. In a recent briefing, Chief Executive Lee...

Refining--US refining profit margins rose in the week ended Mar. 8 to the highest level in two-and-a-half years, due to low inventories of both gasoline and heating fuels. (General).(Brief Article)
March 17, 2003... REFINING -- US refining profit margins rose in the week ended Mar. 8 to the highest level in two-and-a-half years, due to low inventories of both gasoline and heating fuels. Average gross refining margins of $8.25/bbl of crude oil distilled...

Tankers--efforts to move as much oil as possible out of the Mideast before war starts helped push VLCC rates to a new 26-month high last week. (General).(Brief Article)
March 17, 2003... TANKERS -- Efforts to move as much oil as possible out of the Mideast before war starts helped push VLCC rates to a new 26-month high last week. Eastbound rates from the Mideast Gulf to Singapore hit $1.60/bbl on Mar. 13, up from less than...

People--Amer Rasheed was appointed acting Iraqi oil minister. (General).(Brief Article)
March 17, 2003... PEOPLE -- Amer Rasheed was appointed acting Iraqi oil minister two months after he was relieved of the portfolio (PIW Jan.13,p6).

China--State oil giants PetroChina and Sinopec have slashed gasoline exports this month and are looking at other contingencies to protect against war risks, including cutting product exports and boosting stockpiles. (Countries).(Brief Article)
March 17, 2003... CHINA -- State oil giants PetroChina and Sinopec have slashed gasoline exports this month and are looking at other contingencies to protect against war risks, including cutting product exports and boosting stockpiles. PetroChina is reducing its...

East Timor--prospects for greenfield LNG projects are looking up after the passage of two key international agreements involving the Timor Sea Joint Petroleum Development Area shared with Australia. (Countries).(Brief Article)
March 17, 2003... EAST TIMOR -- Prospects for greenfield LNG projects are looking up after the passage of two key international agreements involving the Timor Sea Joint Petroleum Development Area shared with Australia. Australia's ratification of the Timor Sea...

Iran--new storage facilities due to open soon at Neka will enable the Caspian port to absorb up to 100,000 b/d of crude oil--more than triple the current volume--from Russia, Turkmenistan, and Kazakhstan for delivery to the Tehran and Tabriz refineries, and boost its role as a regional oil hub. (Countries).(Brief Article)
March 17, 2003... IRAN -- New storage facilities due to open soon at Neka will enable the Caspian port to absorb up to 100,000 b/d of crude oil--more than triple the current volume--from Russia, Turkmenistan, and Kazakhstan for delivery to the Tehran and Tabriz...

Kazakhstan--China's quest for overseas oil projects took a great leap forward with two state-owned firms buying into the giant Kashagan oil field. (Countries).(Brief Article)
March 17, 2003... KAZAKHSTAN -- China's quest for overseas oil projects took a great leap forward with two state-owned firms buying into the giant Kashagan oil field. China National Offshore Oil Corp. and integrated refuting giant Sinopec each bought an 8.33%...

Lebanon--Algeria's state Sonatrach has agreed to participate in a feasibility study for a 1.5 million ton/yr LNG import terminal even though piped gas from Syria is due in early 2004 and Egyptian gas via pipeline from Jordan and Syria could follow in 2006. (Countries).(Brief Article)
March 17, 2003... LEBANON -- Algeria's state Sonatrach has agreed to participate in a feasibility study for a 1.5 million ton/yr LNG import terminal even though piped gas from Syria is due in early 2004 and Egyptian gas via pipeline from Jordan and Syria could...

Libya--the US has provided assurances that accepting responsibility for the 1988 Lockerbie bombing will not be held against the country in future, clearing the way for the lifting of UN and US sanctions and the eventual return of US oil companies. (Countries).(Brief Article)
March 17, 2003... LIBYA -- The US has provided assurances that accepting responsibility for the 1988 Lockerbie bombing will not be held against the country in future, clearing the way for the lifting of UN and US sanctions and the eventual return of US oil...

Russia--one month after its birth, BP's joint venture with Tyumen Oil Co. (TNK) has finally been named--TNK-BP--and its managers and board appointed. (Countries).(Brief Article)
March 17, 2003... RUSSIA -- One month after its birth, BP's joint venture with Tyumen Oil Co. (TNK) has finally been named--TNK-BP--and its managers and board appointed. Mikhail Fridman, chairman of TNK shareholder Alfa Group, will be chairman of the new...

Russia--the possibility of supplying LNG to the US has prompted new talks between state Rosneft and a US company--understood to be either ConocoPhillips or Marathon Oil--on building an LNG plant to handle gas from the 113 Tcf Shtokmanovskoye field in the Barents Sea. (Countries).(Brief Article)
March 17, 2003... RUSSIA -- The possibility of supplying LNG to the US has prompted new talks between state Rosneft and a US company--understood to be either ConocoPhillips or Marathon Oil--on building an LNG plant to handle gas from the 113 Tcf Shtokmanovskoye...

Russia eyes long-haul markets as exports bottleneck.
March 17, 2003... Russia's export pipeline bottlenecks are getting worse, as unseasonably bad winter storms and ice have hampered port loadings, filling up storage and the national pipeline system to the brim. Crude production is still rising, forcing national...

Venezuela--Energy Minister Rafael Ramirez went out of his way last week to reassure fellow Opec members that the oil industry is back and kicking and that the world's fifth-largest crude exporter is able to guarantee stable supplies again. (Countries).(Brief Article)
March 17, 2003... VENEZUELA -- Energy Minister Rafael Ramirez went out of his way last week to reassure fellow Opec members that the oil industry is back and kicking and that the world's fifth-largest crude exporter is able to guarantee stable supplies again....

Top to bottom. (Marketview).
March 17, 2003... NEW YORK -- In the year to date, crude oil prices have been firmly entrenched in a self-perpetuating cycle of bullish psychology, steep backwardation, and low inventories. Headlines whipped traders into a frenzy that has kept near-month West...

Tankers set for a five-fold leap in insurance rates.(Brief Article)
March 17, 2003... Marine insurance brokers are predicting a five-fold increase in war risk premiums if, or rather when, war starts in Iraq. Last week traders had to ante up an extra 0.1% of the ship's value--minus its cargo--to load crude in Kuwait, which would...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
March 17, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $32.01 $32.41 $31.47 UK Brent (Dated) 33.79 ...

High stakes for big oil in Gulf War.
March 24, 2003... Top international oil companies have much to gain or lose depending on the outcome of the US invasion of Iraq. Having raked in profits from $30-plus oil, firms are already feeling the pinch of lower prices as the `war premium' embedded in oil...

Mideast Gulf pumps up oil flows.(Saudi Arabia, Kuwait and other Middle Eastern countries are increasing oil production)
March 24, 2003... Far from winding down on the eve of war, oil producers in the Middle East Gulf were last week still busy cranking up production. With Saudi Arabia pumping at well over 9 million barrels per day, Kuwait has also ramped up output, and Abu Dhabi...

Large Opec windfall not likely to last.(oil prices have been higher than OPEC expected for months)
March 24, 2003... In the absence of fallout from the war in Iraq that damages oil or other economic infrastructure, oil exporters in the Mideast Gulf and elsewhere are likely to continue to reap an oil revenue windfall at least for a while longer. Oil prices...

Fundamentals turn corner ahead of prices.(world oil supplies already exceeded demand even before the US-Iraq war began)
March 24, 2003... As $30-plus crude prices evaporated last week, it wasn't just market psychology that turned a corner. Despite the seemingly dire state of oil stocks and the effective end of Iraqi exports for the time being, the reality is that global oil...

China, India, late in building strategic stocks.
March 24, 2003... Stocking up on oil in Asia has played its part in driving up oil prices this year. But the efforts of the region's four big consumers are unequal, leaving China and India far more exposed in the event of a supply cut than security-obsessed...

Gulf War may send airlines into tail spin.
March 24, 2003... After two bankruptcy filings in the US in the last six months, the world's airline industry has hardly been cruising since the Sep. 11, 2001, terrorist attacks. But it could he heading for even greater turbulence over war in Iraq. A second Gulf...

US SPR build makes markets more volatile.(Strategic Petroleum Reserve )
March 24, 2003... What's the point of a strategic oil reserve if it isn't tapped when oil prices go sky high and threaten to choke the economy? Despite demands from the US Congress to tap the 600 million barrel Strategic Petroleum Reserve (SPR) the Bush...

Tankers--global shipping rates actually took a breather last week, with east-and westbound rates from the Mideast Gulf easing from two-year highs as the US attack on Iraq got underway. (General).(Brief Article)
March 24, 2003... TANKERS--Global shipping rates actually took a breather last week, with east-and westbound rates from the Mideast Gulf easing from two-year highs as the US attack on Iraq got underway. Mideast Gulf to Asia rates for VLCCs gained 20% over the...

Algeria--start-up of the Ourhoud field's third production train has added another 75,000 b/d of production capacity to squeeze by the country's tight Opec quota. (Countries).(Brief Article)
March 24, 2003... ALGERIA -- Start-up of the Ourhoud field's third production train has added another 75,000 b/d of production capacity to squeeze by the country's tight Opec quota. US' Anadarko expects the field to hit peak production of 230,000 b/d next...

Azerbaijan--a Japanese consortium looks set to be the latest casualty in the run of bad luck with exploration in the southern Caspian Sea. (Countries).(Brief Article)
March 24, 2003... AZERBAIJAN -- A Japanese consortium looks set to be the latest casualty in the run of bad luck with exploration in the southern Caspian Sea. Having plugged and abandoned its second well on its Ateshgah block, the Japex-operated JAOC consortium...

India--UK independent Cairn Energy has given itself a year to find a partner to develop its discoveries in the eastern deep-water Krishna-Godivari basin or risk losing a potential market for its gas to Reliance Industries, which has made a natural gas discovery on an adjacent block. (Countries).(Brief Article)
March 24, 2003... INDIA -- UK independent Cairn Energy has given itself a year to find a partner to develop its discoveries in the eastern deep-water Krishna-Godivari basin or risk losing a potential market for its gas to Reliance Industries, which has made a...

India--privatization of the second biggest state oil company kicked off to a good start with a range of bidders, both domestic and international, registering their initial interest by the mid-March deadline. (Countries).(Brief Article)
March 24, 2003... INDIA -- Privatization of the second biggest state oil company kicked off to a good start with a range of bidders, both domestic and international, registering their initial interest by the mid-March deadline. The sale of 34% of Hindustan...

Indonesia--LNG projects, the one bright hope as oil production declines, are under threat as foreign oil companies including BP, Total Fina Elf, and Unocal have slapped a virtual freeze on upstream investment. (Countries).(Brief Article)
March 24, 2003... INDONESIA -- LNG projects, the one bright hope as oil production declines, are under threat as foreign oil companies including BP, Total Fina Elf, and Unocal have slapped a virtual freeze on upstream investment. Tensions with state Pertamina...

Japan--plans to create a new national upstream champion took a step forward with the court-protected bankruptcy of Japan Oil Development Co. (Jodco), which paves the way for the demise of Japan National Oil Corp. (JNOC). (Countries).(Brief Article)
March 24, 2003... JAPAN -- Plans to create a new national upstream champion took a step forward with the court-protected bankruptcy of Japan Oil Development Co. (Jodco), which paves the way for the demise of Japan National Oil Corp. (JNOC). The Ministry of...

Libya--skepticism greeted an announcement by National Oil Co. head Abdulhafid Zlitni that 30 exploration blocks are to be awarded by end June. (Countries).(Brief Article)
March 24, 2003... LIBYA -- Skepticism greeted an announcement by National Oil Co. head Abdulhafid Zlitni that 30 exploration blocks are to be awarded by end June. Industry sources indicate that negotiations on perhaps just 10 or so blocks--rather than 30--are...