Top OPEC Ministers Back Longer Cuts But Duration Undecided – Bloomberg

OPEC and its allies agree they need to prolong their output-cut deal as bloated inventories won’t shrink to normal levels by March, but they’ve yet to reach a consensus on how long to extend the pact, according to ministers from three of the top producers.Global stockpiles are declining and demand is increasing, but there’s still a significant inventory overhang in the market, Khalid Al-Falih, Saudi Arabia’s oil minister, said at the Asian Ministerial Energy Roundtable in Bangkok on Thursday. Issam Almarzooq, his Kuwaiti counterpart, said producers are discussing and finalizing a decision on the extension of output curbs by the Organization of Petroleum Exporting Countries and partners such as Russia.

Source: Top OPEC Ministers Back Longer Cuts But Duration Undecided – Bloomberg

Seadrill files Chapter 11 bankruptcy protection in Houston to restructure about $10B in debt – Houston Business Journal

Seadrill Ltd. (NYSE: SDRL) and 85 affiliated debtors filed for Chapter 11 bankruptcy protection in Houston Sept. 12 as part of a restructuring plan.The company’s voluntary petition lists total assets of nearly $21.67 million and total debt of $11.6 million, as of Dec. 31. Seadrill plans to restructure about $10 billion in debt, according to the Wall Street Journal and the Financial Times.

Source: Seadrill files Chapter 11 bankruptcy protection in Houston to restructure about $10B in debt – Houston Business Journal

Hedge Funds Bet on Fuels Over Crude as Storm Trade Persists – Bloomberg

The post-Harvey buzz over fuels is making U.S. crude look like the poor stepchild of hedge funds.Since the storm battered the heart of America’s refining industry last month, bets on rising gasoline and diesel prices have surged for three straight weeks to the most bullish in years. But when it comes to West Texas Intermediate crude, skepticism is prevailing.It all boils down to where the supply glut is. While U.S. fuel stockpiles have plummeted — with a record draw from gasoline storage tanks — oil inventories rose as crude-processing plants in Texas struggled to get back on their feet. That’s prevented WTI from closing above $50 a barrel even though last week was the best for the U.S. benchmark since July.“The numbers are an assertion that they view the fundamentals for those markets as the strongest in years,” Tim Evans, a Citigroup Global Markets analyst in New York, said of the enthusiasm over fuels. “And that may be appropriate, given all that’s happened with the hurricane.”

Source: Hedge Funds Bet on Fuels Over Crude as Storm Trade Persists – Bloomberg

Bakken oil in demand after Hurricane Harvey | North Dakota News |

Bakken crude and other light, sweet crude oils are in demand in the aftermath of Hurricane Harvey, a North Dakota official said Friday.After the hurricane, analysts are seeing a $4 to $5 premium for each barrel of Bakken crude over West Texas Intermediate oil at Clearbrook, Minn., said Justin Kringstad, director of the North Dakota Pipeline Authority.“The refiners are finding value in running these light, sweet crude barrels,” Kringstad said. “They’re easier to process and they have a higher yield of the products that have been in demand since the storm, gasolines and diesel fuels.”Kringstad said he’ll continue to monitor whether the price shifts will affect the state’s oil transportation trends. The price for a barrel of WTI was $49.90 on Friday afternoon, according to Bloomberg.North Dakota oil production increased 1.4 percent in July to an average of nearly 1.05 million barrels per day, the Department of Mineral Resources said Friday.Natural gas production increased 1.35 percent to an average of nearly 1.88 billion cubic feet per day, according to the preliminary figures.“Not huge jumps, but very positive,” said Director Lynn Helms.Seventy-six percent of oil was transported by pipeline in July and 10 percent transported by rail, Kringstad said. Oil production and transportation figures are released two months later.With more barrels being transported by pipeline with the addition of the Dakota Access Pipeline, Kringstad estimates about 100,000 barrels to 130,000 barrels a day leave the state by rail. That’s equivalent to a little more than one train a day on average, Kringstad said.

Source: Bakken oil in demand after Hurricane Harvey | North Dakota News |

Largest Houston-Area Downstream: Refineries – Houston Business Journal

Ranked by Oil Barrels Capacity per Calendar Day

Source: Largest Houston-Area Downstream: Refineries – Houston Business Journal

Koch Industries opens new Texas-to-Mexico fuel export route

A Koch Industries subsidiary said it’s opened a new fuel export route from Corpus Christi to Mexico without involving Mexico’s national oil company.

Koch Supply & Trading, which is part of the Koch brothers private business empire, calls it the first waterborne delivery of motor vehicle fuel into Mexico by private parties since the Mexican petroleum industry was nationalized nearly 80 years ago.

The route goes from Koch’s Flint Hills Resources refining system in Corpus Christi through the Port of Veracruz to a newly revamped terminal owned and operated by Dutch-based Royal Vopak, which obtained the first regulatory approval for an independent party to store and handle petroleum liquids in Mexico.

The first cargo was for ultra-low sulfur diesel fuel.

Koch said it can deliver to Mexico much earlier through the Vopak deal than by going through the extended process of permitting and building its own terminal.

Oil Exports Bring Boom Times To Texas Port | Inside Energy

A surge in production in the Permian Basin of west Texas—-already the nation’s highest producing oilfield — is extracting more crude oil than refiners in Texas can handle. But now, producers in the Permian have new outlets for that oil with economic implications hundreds of miles away from the flatlands of west Texas.Based on crude oil export projections, port officials say they expect to add 5000 direct and indirect jobs in 2017. “This is not a bubble, this is real growth,” said vessel traffic controller Mike Stineman, as he scanned real time navigation charts indicating vessel traffic at the port. Radio chatter between vessels, the Coast Guard and the Vessel Control Center provided a non-stop soundtrack of the the pulse of the port.A longtime ban on U.S. crude exports was lifted last year. And today, the port of Corpus Christi is positioning itself to become America’s main energy export hub. Stineman said it is simplistic to say the lifting of the ban, ushered in as the Obama administration ended, is solely responsible for increased shipping activity at the the port. Increased demand in Mexico for US energy is also in play. Corpus Christi is an established refining center, and the largest natural gas liquefaction plant in the U.S. is slated to be built here. However, Stineman said the lifting of the ban is stimulating significant activity at the port.

Source: Oil Exports Bring Boom Times To Texas Port | Inside Energy

Exxon Mobil chemical exec: ‘We’re hiring at record levels today’ on Gulf Coast

An abundance of petroleum in the U.S. has prompted many companies in Houston’s petrochemical sector to work on projects expanding capacity, something that — in the case of Exxon Mobil Corp.’s (NYSE: XOM) petrochemical arm — will bring about 45,000 new jobs to the Gulf Coast in the next several years.But at about the same time, the existing workforce has been aging, and there aren’t as many young skilled laborers entering the industry to take their place. So in 2013, the Irving, Texas-based company funded the Community College Petrochemical Initiative, which granted scholarships to Houston-area community colleges in order to draw new talent to the industry.

Source: Exxon Mobil chemical exec: ‘We’re hiring at record levels today’ on Gulf Coast – Houston Business Journal

Valero Energy signs supply deal to ship fuels to Mexico

San Antonio-based refining company Valero Energy Corp. has signed a lucrative deal that will allow it to supply gasoline, diesel and jet fuel to thousands of new customers south of the border in Veracruz, Puebla and Mexico City.Officials with Valero (NYSE: VLO) confirmed that the company’s Mexican subsidiary, Valero Marketing and Supply de México SA de CV, has entered into a long-term import agreement with Mexico City-based Infraestructura Energetica Nova SAB de CV.

Source: Valero Energy Corp. (NYSE: VLO) signs supply deal to ship fuels to Mexico – San Antonio Business Journal

Mexican Oil and Gas Gaining Momentum – Drillinginfo

Mexico held back-to-back licensing rounds on 12 July 2017 as part of the President Enrique Peña Nieto administration’s goal to lure private investment to the Latin American nation’s upstream.To use an American baseball analogy, Mexico knocked it out of the park each time and now Mexican oil and gas is gaining momentum.The duo-round system on 12 July encompassed a total of 24 blocks. By the end of the day, 21 blocks had been awarded.

See maps at article link below:

Source: Mexican Oil and Gas Gaining Momentum – Drillinginfo