New base 512 special 06 january 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

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NewBase 06 January 2015 - Issue No. 512 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Saudi SABIC & Molecular in JV to commercialize nanomaterials’ apps Saudi Gazette + NewBase

SABIC and Molecular Rebar Design, LLC have signed a joint venture agreement to develop and commercialize nanomaterials for select market segments and applications. The joint venture, Black Diamond Structures, LLC will develop, manufacture, and commercialize products based on Molecular Rebar Design’s unique and revolutionary carbon nanotube (CNT) technology, Molecular Rebar. CNTs when made commercially consist of large entangled bundles of nanotubes. These bundles are far less useful than discreet or individual nanotubes. Molecular Rebar are discreet, open ended, highly functionalized CNTs that are free from catalysts and waste matter and are demonstrated to advance the science and applications for nanomaterials. Black Diamond Structures, LLC will focus on applications in select market segments including energy storage, energy generation, automotive & light truck, consumer electronics, and construction. Commenting on the joint venture, Ernesto Occhiello, SABIC Executive Vice President, Technology & Innovation, said Black Diamond Structures, LLC is aligned to SABIC’s 2025 strategy and part of the drive to develop higher value-added specialty businesses globally and in Saudi Arabia. “SABIC believes that nanotechnology is an important part of the future. We focus on making nanointermediates more viable for industrial implementation via improved scale-up, ease/effectiveness of use and partnership with customers. We believe the new JV is well aligned with emerging market needs, and thus is poised for accelerated deployment and development for both existing and new applications.” Kurt Swogger, Chief Executive Officer of Molecular Rebar Design, said “we believe the synergistic combination of Molecular Rebar Design’s advanced nanotechnologies with SABIC’s commercial and manufacturing capabilities will lead to many exciting opportunities for innovative, new materials in high growth market segments.”




Oman Fiber Optic Cable plant to be commissioned in November Times of Oman + NewBase

Oman Fiber Optic on Monday said that its state-of-the-art plant to manufacture fibre optic cableswill be ready for commissioning by November this year

The pioneer fibre optic cable manufacturer is investing OMR13 million for two plants — one withan installed capacity to produce 14,000-18,000 kilometres of cable and another for themanufacture of 1.6 million fiber kilometres per annum — and other facilities, Mohammed AlBarashdy, chief executive officer of Oman Fiber Optic, told journalists

The cable plant was commissioned in March 2014, while the fiber optic cable plant will be ready inNovember, he added, while addressing the media to launch the company's new logo. Oman Fiber Optic chie f noted that the company used to produce 350,000 fiber kilometres perannum before a massive fire destroyed the entire plant. "After the fire, we have decided to build acompletely new plant. We have a technological tie-up with Sumitomo. It took ten months for thecompany to build the cable plant.

Apart from fibre optic cable plant, the facilities coming up at Rusayl include a headquarters andwarehouse. Proceeds from insurance claim and additional capital injected by stakeholders helpedthe company to generate the required fund for the massive expansion

Al Barashdy said the company will sell 35 per cent of its output in the domestic market, with theremaining 65 per cent for export markets. The company's export markets include Gulf CooperationCouncil (GCC), Arab countries, Iran, central Asia and Eastern Europe

Oman Fiber Optic caters to the needs of various sectors, including telecommunication, oil andgas, government utility and related projects. Oman Fiber Optic's sales revenue touchedOMR26.95 million in 2013, from OMR5.29 million in 2007. Apart from manufacturing fiber opticcable, the company has other divisions like telecommunication solutions division to cater to thespecific needs of customers

Referring to Oman Broadband Company's initiative for providing fibre optic cable connection tohomes, he said the company is involved in the project over the last three years and have providedover 40,000 home connections in several residential areas, including the Wave, Muscat Hills andShatti Al Qurum

The launch of the company's new commercial identity shows its new strategy and aspirations.Al Barashdy said that the company's new logo consists of the initial letters of 'Oman Fiber Optic.'The new logo also has red, green and blue colours. The overall Omanisation within the companyis around 47 per cent.




Iraq: Gulf Keystone Petroleum Update Shaikan production Source: Gulf Keystone Petroleum +NewBase

Gulf Keystone Petroleum has provided an update on the Company's operations at Shaikan, its key producing asset in the Kurdistan Region of Iraq.

The Company is pleased to announce that the existing Shaikan production facilities ('PF-1' and 'PF-2') are now producing from seven wells with Shaikan-8 expected to come online in January 2015.

Total daily production has been gradually increasing since early December 2014, reaching the Company's 40,000 gross barrels of oil per day target on 27 December. On 29 December, a record number of 354 trucks were loaded at PF-1 and PF-2 with nearly 58,000 gross barrels of Shaikan crude sent by truck to the Turkish coast for further export sale.

On 24 December, the Company spudded Shaikan-11, an additional producer, which will be tied to PF-2 through the 11 km flowline, already in place.

John Gerstenlauer, Gulf Keystone's Chief Executive Officer commented:

'We are pleased to begin 2015 on the back of a positive end to last year, having achieved the Company's record daily production and crude oil export sales rates from the Shaikan field. 2014 was not without its challenges for the Kurdistan Region and we are proud of what has been achieved against this backdrop, in particular a nearly 300% increase in Shaikan production and export sales since January 2014.

Our immediate focus is to ensure a stable daily production rate of 40,000 gross barrels of oil per day, which is a base for future production growth, whilst maintaining a regular payment cycle for Shaikan export oil sales by truck and to finalise a pipeline access solution for Shaikan.' Original article link




Croatia awards 10 offshore licenses Minister of the Economy

The Croatian Government has granted 10 licenses for exploration and exploitation of hydrocarbons in the Adriatic.

The awards, announced Friday, January 2, were preceded by the first license round for the exploration and exploitation of hydrocarbons in the Adriatic, which was concluded on November 3, 2014. The received bids were evaluated by an Expert Committee headed by Minister of the Economy, Ivan Vrdoljak.

Bids were received from a total number of 6 companies for 15 exploration areas. The Expert Committee has positively evaluated bids for 10 exploration areas and finally awarded 10 licenses. In accordance with the

decisions, Marathon Oil, OMV, ENI, MEDOILGAS and INA gained the right to explore and exploit hydrocarbons in the first offshore license round.

A Consortium of bidders Marathon Oil and OMV was granted a licence for the exploration and exploitation of hydrocarbons in seven exploration blocks. The assigned exploration blocks are North Adriatic 8, Central Adriatic 10, Central Adriatic 11, Central Adriatic 22, Central Adriatic 23, South Adriatic 27 and South Adriatic 28.

A Consortium of bidders ENI and MEDOILGAS was granted a licence for the exploration and exploitation of hydrocarbons in one exploration block, Central Adriatic 9. INA – Industrija nafte d.d. was granted a license for the exploration and exploitation of hydrocarbons in two exploration blocks, South Adriatic 25 and South Adriatic 26.

The estimated value of investment plans in the exploration activities for which the companies were competing amounts 4 billion HRK ($623.6 million). According to the Croatian Hydrocarbons Agency, a 100 million HRK ($15.6 million) will be paid directly to the state budget after signing the contracts.

“We are extremely pleased with the job done. These are serious companies with extensive experience using the latest technology that meet the most demanding environmental standards,” said Minister of the Economy, Ivan Vrdoljak.

“With today’s decisions of the Croatian Government, we can start negotiations on signing the Production Sharing Agreement. Awarded companies were obliged to accept the provisions of the draft Production Sharing Agreement already in their offers, since it was a part of the documentation for tendering and to enclose all the provisions that they want to alter in the negotiations.

The final deadline for signing the Agreement is 3 months from the issuance of licenses, namely 2nd April 2015,”said the President of the Management Board of the Croatian Hydrocarbon Agency, Barbara Dorić.




Rockhopper gets stake offshore Croatia

Rockhopper Exploration plc has been awarded a 40% interest in offshore Block 9 in Croatia in partnership with Eni (60% interest and operator). As previously reported, the Croatian Government has granted 10 licenses for exploration and exploitation of hydrocarbons in the Adriatic.

The block is located in the relatively shallow water of the prolific Northern Adriatic gas province and contains the previously discovered Ksenija accumulation along with the Klaudija prospect.

Rockhopper says that the anticipated work programme consists of seismic acquisition, processing and re-processing during the first exploration phase (3 years) with the drilling of a well in the second exploration phase (if Rockhopper elects to proceed to the second phase).

According to the company, signature of a Production Sharing Contract with the Croatian Hydrocarbon Authority must be completed by April 2, 2015. In addition, Rockhopper has also applied for acreage in the first offshore licencing round in Montenegro. The outcome of such application is expected in Q1 2015.

Sam Moody, Chief Executive of Rockhopper, commented:

“We are delighted to be partnering with the leading international producer in Croatia as we build our position in our second core area of the greater Mediterranean region following the acquisition of MOG. This represents an outstanding low cost opportunity to increase our acreage position in an area with proven hydrocarbons.”




India: Russian shale beating US is ONGC’s last bet Bloomberg + NewBase Oil & Natural Gas Corp, India’s biggest energy explorer, is banking on the world’s largest shale oil reserves to save its Russian acquisition. Stumbling blocks include oil prices at a five-year low and US sanctions.

Imperial Energy Corp, which the Indian state-run explorer bought in 2009 for $2.1bn, will drill four wells in Russia’s Bazhenov shale formation by July, seeking to find enough oil to start commercial production, said Narendra Kumar Verma, managing director of ONGC’s overseas unit, which owns Imperial. Failure would mean seeking options, including selling the unit, he said. “We’re banking on that silver lining,” Verma, the chief of ONGC Videsh Ltd, said in an interview in his office in New Delhi. “We have to think of alternative strategies. All options are open,” should Bazhenov flop, he said.

ONGC plans to more than double its oil and gas production from overseas fields in four years even as it seeks to reverse declining output from Imperial’s fields, revive assets in troubled Sudan and Syria and boost output in Venezuela. It gives away 79 percent of its revenue from Imperial’s fields as taxes to the Russian government, which is facing the prospect of defaulting on its debt amid sanctions following the annexation of Crimea from Ukraine. At the moment, Bazhenov is the promising thing,” Verma said. “We have to see how much it yields, as shale oil wells are costlier due to horizontal drilling and hydro-fracking.”

Bazhenov may hold as much as 360 billion barrels of recoverable reserves, Bloomberg Industries said in a December 2012 report, citing estimates by Russian subsoil agency Rosnedra. Venezuela holds 298.35 billion barrels, the world’s biggest known oil reserves. Russia’s Bazhenov has yet to yield oil. The formation has proved to be tougher to drill than areas in the US, prompting Russian oil majors such as OAO Rosneft and OAO Gazprom Neft to seek partnerships with US and European companies.

Imperial had given Denver-based Liberty Resources LLC a contract to drill in its shale-oil acreage in the Bazhenov formation. Liberty ended the contract following US sanctions on Russia, Verma said. Imperial is now drilling two wells on its own and plans to drill a total of four by July, he said.




France’s Total SA is reevaluating plans to explore for shale oil with Moscow-based OAO Lukoil in Bazhenov. Royal Dutch Shell Plc and Norway’s Statoil ASA may also miss out on Russian shale, Bloomberg Intelligence analyst Philipp Chladek wrote in a report.

Russia can develop its shale oil resources even without foreign partners, Interfax reported on December 29, citing Lukoil President Vagit Alekperov. The development is not profitable at current oil prices, Interfax reported in the interview.

Russia has potentially the biggest shale oil resources, followed by the US, according to a January 2014 report by the US Energy Information Administration. Shale basins in the US have helped boost the country’s production to the highest in more than three decades, drawing it into a price war with Saudi Arabia as oil prices slump to the lowest since 2009.

The Russian government will allow companies that produce in the Bazhenov formation to retain about 40 percent of their revenue, compared with 21 percent that Imperial gets now, Verma said. “If we are able to have substantial production from Bazhenov, then our net back may improve, bottomline may improve and we may sail through,” he said. “I’m not saying we will make profits, I’m saying the company may sail through.”

Current output at Imperial’s fields in western Siberia, which holds part of the Bazhenov formation, has declined to about 7,000 barrels a day from 17,000 barrels in April 2010. Even in a scenario where oil is at $100 a barrel, Imperial is left with $6 after spending as much as $15 on production, and paying oil extraction levies, Verma said. It pays about $2 a barrel as income tax to the government and the remaining $4 has to fund operating costs, capital expenditure and administrative costs, he said.

Plunging crude oil prices is making it worse for Imperial, Verma said. Brent crude, a benchmark for more than half the world’s oil, declined 48 percent last year in London trading, the steepest annual loss since 2008. Weak economic growth in China, a global oil glut and Opec’s refusal to cut output have pushed crude into a bear market since June.

In Russia, ONGC Videsh owns 20 percent in the Sakhalin-1 project off the country’s far eastern coast, which it acquired in 2001. The project produces both oil and gas and ONGC Videsh gets a share of the output or equivalent revenue from the sale. The company is also in talks with Rosneft, Russia’s biggest oil producer, to study the possibility of buying stakes in two other oil and gas fields in Russia, ONGC Chairman Dinesh Kumar Sarraf said in November.

Imperial has always performed below expectations for ONGC. A plan to revive production from Imperial’s fields was scrapped just months after ONGC completed the purchase in 2009 because the fields didn’t meet expectations. India’s federal auditor in March 2011 said ONGC lost Rs11.8bn in the 15 months ended March 31, 2010, after Imperial produced at half of the target rate. ONGC announced the plan to buy Imperial in August 2008 and completed the purchase in 195 days. Brent crude, which slumped 62 percent in that period, reached $36.6 a barrel in December that year as the global financial crisis deepened. ONGC then justified the acquisition saying oil would rebound to $100 a barrel. Most negotiations for the Imperial acquisition “happened in the peak price of oil, but before closing it slid,” Verma said. “We could not come out of the deal.”




Otto Energy, Partners Complete Seismic Survey in Tanzania Otto Eng + NewBase

Otto Energy Ltd and partner Swala Energy have successfully completed a 430 km 2D seismic programme over the Kilombero Basin in central Tanzania. Otto Energy Tanzania Pty Ltd (a wholly owned subsidiary of Otto) has a 50 percent participating interest in the Kilosa Kilombero licence while Swala Energy’s subsidiary Swala Oil and Gas (Tanzania) Plc, as operator, has the remaining 50 percent stake.

The joint venture has already identified the Kito Prospect as a potential drilling target for 2015. The new seismic data are currently being processed ahead of detailed interpretation that aims to map additional potential drilling targets for the forthcoming drilling campaign. The joint venture will carry out basin modelling and seismic amplitude studies to help rank the prospect portfolio ahead of these planned drilling activities.

Matthew Allen, Otto’s CEO said: “The work programme of the joint venture in the Kilosa-Kilombero licence has been executed in line with the work programme commitments to TPDC, in an area that had not previously seen any oil or gas exploration activity. We look forward to the

results of the detailed mapping, basin modelling and seismic amplitude studies to support the final drill candidate selection.”




Oil Price Drop Special Coverage

Revamped US oil hedges may test Opec's patience Reuters + NewBase As a war of nerves between US shale producers and Gulf powerhouses intensifies, Opec's biggest members are counting down the months until their upstart rivals lose the one thing

shielding them from crashing oil prices - hedges. They may need much more patience than they reckon, however, because those hedges are a moving target. Rather than wait for their price insurance to run out, many companies are racing to revamp their policies, cashing in well-placed hedges to increase the number of future barrels hedged, according to industry consultants, bankers and analysts familiar with the deals. Opec officials hope that once US oil

companies get fully exposed to the impact of an over 50 per cent slide in crude prices since last June, they will have to drill fewer new wells, causing US production growth to stall and putting a floor under oil prices now testing $50 a barrel. "There are companies which are hedged until the beginning of the year or until the end of the year, so we need to wait at least until the first quarter to see what is going to happen," UAE Energy Minister Suhail Bin Mohammed Al-Mazroui told Reuters and one other news agency last month. Yet that hope is based largely on quarterly company reports from several months ago, when drillers last made their hedging portfolios public. In the meantime, with the price rout showing no sign of reversing, at least some firms have put on new hedges that will help prevent their revenues from falling further - and allow them to drill far longer this year than earlier expected. "Opec should not expect to see any impact on US shale growth in the first half of the year and the impact in the second half is being attenuated significantly by producer hedging," says Ed Morse, global head of commodities research at Citigroup, one of the biggest US banks involved hedging. CAPTURING THE UPSIDE For the moment, it is unclear which companies are involved in the effort. New hedging strategies are only likely to get disclosed in quarterly earnings reports in late January. "It's a hot topic of discussion that everyone is thinking about and looking at," said Craig Breslau, who heads the energy derivatives marketing desk at Societe Generale in Houston, which has been involved in some restructuring transactions.




While the proportion of oil companies actually executing those deals is not that high, the deals thus far have been large in terms of volume and dollars, he said. According to their last filings, oil companies such as EOG Resources, Anadarko Petroleum Corp, Devon Energy Corp and Noble Energy had hedged some of their 2015 production at prices of $90 a barrel or more. The net short position of oil producers and other non-financial companies in US crude oil futures and options markets -- used as a rough gauge of hedging activity -- has grown from 15 million barrels in August to more than 77 million barrels last week. For many companies that set up "in the money" hedges prior to the slump, the downturn offers a chance to cash in or extend their protection. For example, a company that had sold swap contracts to hedge a part of its 2015 production at $90 a barrel - essentially shorting forward oil prices to guard against a drop - could buy them now back at around $57 for a profit of about $33 a barrel. Instead of just pocketing the cash, some companies are using the funds to shield themselves against a further market slide by buying swaps and options pegged closer to current prices. With the December 2015 put option for $60 a barrel now trading at around $9 a barrel, swaps cashed in now could buy a producer nearly four times more protection at that price. PROFITS OR SURVIVAL Most of the half-dozen companies contacted by Reuters - those with sizeable hedges in place - declined to comment or did not reply to requests for comment. A spokeswoman for EOG said that it was not selling off its hedges. Devon Energy declined to say whether the company was restructuring is large hedge book, but said it had not 'monetized' any of its position. So far only two companies have publicly confirmed winding down their profitable hedge books. Bakken shale oil pioneer Continental Resources pocketed $433 million by liquidating its hedges in September - a move that left the firm exposed to a further $20 slump, though it is not clear whether it has set up new hedges since. On Tuesday, tiny firm American Eagle Energy announced that it sold off its 414,000 barrels of oil hedged at $89.59 a barrel through last December for a profit of $13 million to improve its liquidity - even as the firm said it would have to stop drilling until prices improved.




That appears to be the effect that Opec is looking for, although thus far it is the exception rather than the rule. "The companies' situation is strong," said an Opec delegate from a Gulf producer. "All this will delay the impact of the lower oil prices."

Oilfield services companies feel the heat as prices plunge

+ NewBase

Oilfield service companies operating in the United Arab Emirates are feeling the pressure as prices continue to plunge due to oil oversupply and weak demand. They are expecting profit to reduce and demand to go down for their services.

Oil price has fallen by more than 50 per cent since June last year. From a peak of $115, Brent crude came down to $55 on Monday. Analysts forecast the price to slide further and touch $50 in the coming days.

A Dubai based company said the profit will decrease by 30 per cent.

“Many development projects are already on hold or getting slow based on the directive from oil companies. This will enable oil and gas engineering companies like us to compete in a tough market and the work needs to be executed at a very less or no profit scenario,” said Ashik Subahani, Managing Director of Great Waters Maritime, an oilfield services firm that deals with the global offshore, oil and gas maritime industry.




He said less oil price will reduce job opportunities and will result in many employees losing their jobs. “It will adversely affect more in Europe compared to Middle East due to the higher oil production cost of Europe,” he said.

“Reduction in oil price will put on hold many of the ongoing alternative energy projects specially in Europe as buying oil at a lesser price becomes cheaper than going for alternative energy.”

The United Arab Emirates has said the country will continue to invest in oil and gas sector and increase the production to 3.5 million barrels per day by 2017.

Talking about the fall in oil prices and how it would impact the industry, an energy expert based in Abu Dhabi said uncertainty is not good for business.

“It will have an impact on projects and their profits. I expect the economics of all new projects will be rerun at more conservative worst case oil price scenarios and those of marginal returns will likely be put on hold,” said Adrian Nizzola, a partner in Simmons & Simmons, an international law firm specialising in energy.

“There will be a real pressure on the cost base of oil service companies, as national and international oil companies will look for cheaper exploration and production solutions. If these companies are unable to adjust to a lower oil price environment, they will struggle,”

He expects reorganisation and restructuring of the job pool as oil prices continue to tumble. “Companies will look to lessen their labour cost. Western expatriate workers could be affected as companies look to reassign and reorganise their work force e.g. they might be put on other projects or other ventures. Individual contractors may see the durations of their contracts shortened or suspended.

Ongoing oil and gas projects will be continued, but companies will be closely watching new projects, he said. “They will revisit the economy of new projects.”

Meanwhile, Emirates NBD in a monthly report quoting Bloomberg estimates said the total oil production by Organisation of the Petroleum Exporting Countries (Opec) members declined by 122,000 barrels per day in December with the biggest cuts coming from Saudi Arabia and the UAE, which reduced output by a combined 250,000 barrels per day. However, this was offset by increased output from Iraq, 150,000 bpd and Nigeria by 110,000.

Oil plumbs new depths below $55 a barrel Reuters + NewBase

Oil prices have continued their descent in the new year, with US$50 a barrel the next milestone coming into view on the way down.

In Dubai on Monday, crude oil futures for February delivery lost another $1.97 a barrel to finish at $52.04. In London, North Sea Brent crude futures were down $1.82 at 5pm UAE time to $54.60, bringing the cumulative loss since last summer’s high to more than 52 per cent.

The dip below $55 was the first since May 2009.




Oil prices have declined every week since mid-November when the decline that began last June gathered pace as it became clear that Opec, and Saudi Arabia in particular, would rather see prices fall than cede market share by cutting production.

Brent was last below $50 a barrel briefly at the end of 2008, when oil prices crashed in the wake of the global financial crisis. But it has not been below that level for a sustained period since 2005.

Citibank this week added its voice to the chorus of those cutting their forecasts for Brent crude this year, with a bearish new prediction that Brent will average $63 a barrel in 2015.

Ed Morse, the head of commodities research at Citigroup and one of the more authoritative analysts after accurately bucking the consensus view in the recent past, laid out a very bearish case for the oil market in his latest report.

Mr Morse reiterated the story that the oil market has become swamped by output from North America, from both Canada’s vast Alberta tar sands fields as well as those opened up by new drilling technologies in places such as North Dakota and the Permian Basin in Texas.

He sees these conditions gathering pace in the early part of this year.

“Lying ahead in [the first half of 2015] is a step-up in oversupply, more volatility and turmoil, with a surge of more than 200,000 barrels a day in Canadian sour crude delivered to the US [Gulf Coast], along with potential Saudi efforts to regain US market share followed by weaker [second quarter 2015] demand and what looks to be weaker refinery margins.”

Like others, Mr Morse is also worried about the wider implications of the sudden and sharp drop in oil prices.

“Most worrisome are unintended consequences and geopolitical fallout,” he warns. “Opec’s expected revenues of $445 billion this year, down more than 50 per cent from 2012, increases domestic pressures in Opec and other producers, especially those facing sanctions and internal dissent such as Russia and Iran, where geopolitical tensions could strain further if prices are seen as being manipulated against them.”

Recent predictions for oil prices from banks and other forecasters have varied wildly.

HSBC, for example, is still forecasting a Brent average price of $95 a barrel for this year, expecting that the sharp decline in prices will cut off investment for the more expensive projects. Morgan Stanley, on the other hand, is among the more downbeat, seeing Brent going as low as $43 a barrel, though more likely to average out at $70 a barrel.

In such volatile conditions, predictions are even more flexible than normal. Even Citigroup reaffirmed a forecast for this year of $97.50 a barrel for Brent as recently as October.

One of the difficulties is assessing the impact of lower prices on producers. Russia and other former Soviet Union producers were pumping at a record rate in November and December. But while exports from that region likely will continue to surge this month, they may be hit by a number of factors as the year progresses.




“Output [from Russia] this year could decline year-on-year by over 100,000 barrels a day, given the impact of sanctions, low oil prices and no large projects expected to come online,” according to Amrita Sen, the head of oil analysis at Energy Aspects.

Several of the large international oil companies also have announced lower capital expenditures in the coming year, including ConocoPhillips, which last month said it would cut overall investment by 20 per cent, a significant portion of which would be in unconventional plays in the Permian Basin, Niobrara in Colorado and the Montney and Duvernay tar sands projects in Canada.

The question for the oil markets is how long it will take for cutbacks such as these to take effect and allow oil demand in a sluggish world economy to catch up with supply.

Mr Morse reckoned the market will find a new equilibrium but not quickly.

“There are likely to be lots of head fakes, starting with reports of declining production in North Dakota,” he said. “But this is going to reflect far less the accumulating reductions in upstream capital spending than normal seasonality and the difficulties of drilling in the heart of winter in snowy and icy North Dakota. Even so, the market should eventually sort itself out, from a combination of supply and demand responses.





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Khaled Malallah Al Awadi, Energy Consultant MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Mobile : +97150-4822502 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great

experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels.

NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE

NewBase 06 January 2015 K. Al Awadi




New base 512 special 06 january 2014

Economy & Finance