Oil and gas company MOL Energy UK has completed its collaborative partnership process – an approach championed by MOL Energy UK Managing Director Chris Bird following the company’s entry into the UK market last year.

Collaboration has become highly topical for those in the North Sea oil industry, as operators and suppliers recognize the future relies on a movement away from competition and towards closer partnerships throughout the value chain.

’’At MOL Energy UK we are clear the path to success lies in adopting a collaborative business model,” says Chris Bird. ’’And as a new market entrant, we are in an ideal position to create a corporate culture and values-driven approach that is based on effective collaboration from the start.”

After putting into practice the collaborative process required to meet the certification standard BS11000, as well as undertaking a commercial assessment, MOL Energy UK now has five collaboration partners. They are:

”We are at the start of our journey to overcome the challenges in our current environment and find solutions which will make the basin successful and support government initiatives to attract new investment and maximize economic recovery,” says Chris.

’’From the outset the company has made early engagement with potential partners a priority, and our aim is to build long term, mutually beneficial partnerships. I’d like to specifically thank our partners as well as the rest of the supply chain for their willing engagement in this process.”

MOL Energy UK’s Head of Supply Chain and Procurement, Ian Rattray, says the selection process covered the commercial offering, added value, cultural alignment, managing the interfaces between the company and external partners, resourcing, good communication and having a process for managing conflict.

Collaboration is the theme of the OGUK Share Fair in November, and OGUK, OGA, the Government and Deloitte are working together to embody the need for collaboration within the Energy Bill currently going through Parliament.

CGG is engaged in an ambitious transformation plan to adapt to the new environment and market conditions. A more centralized organization is now deployed to ensure we have the strongest possible foundation from which to operate and grow in the future.

As from 1st September, the Corporate Committee (C-Com) is chaired by the CEO, Jean-Georges Malcor, and formed by the CFO, Stephane-Paul Frydman, the two COO’s, Pascal Rouiller and Sophie Zurquiyah, and the EVP, Human Resources, David Dragone.

The C-Com will share global management of the Group and responsibility for the various Business Lines, Group Functions and Group Departments.

Seagull Oil & Gas has acquired all the shares in the EX training provider, ExTek AS, Norway’sonly centre approved to validate core competency of oil & gas industry employees and contract staff under the globally recognized CompEx Scheme.

With the acquisition of ExTek, Seagull will have one of the most comprehensive and complete packages of El-Safety and Ex training in the market.

“ExTek has been developed by some of the leading experts on electricity in explosive atmospheres, and is the only Norwegian approved CompEx centre,” says Morten Aasen, Managing Director, Seagull Oil & Gas. “We see an increasing focus on high quality training and individual certification in the in the oil & gas industry. ExTek is a natural enlargement of the Seagull Oil & Gas portfolio of products to meet our target to become a complete provider of training solutions for the Oil & Gas industry. We believe the combination of e-learning, required practical training and interactive theory discussions with subject matter experts give the best learning outcome on these high risk subjects.”

The Coastal and Marine Operators (CAMO) group has announced it has successfully completed the first step in rolling out a major initiative to protect the safety of mariners, the environment and hydrocarbon pipelines from being damaged. The CAMO group began transmitting Automatic Information System (AIS) safety messages directly to mariners in two charted pipeline corridors in Port Fourchon, significantly improving their situational awareness by providing immediate alerts for vessels in close proximity to submerged pipelines. These vessel safety messages use existing AIS technology that is already deployed on most commercially operated vessels.

“Pipeline protection is increasingly important, with the typical incident costing an average of at least $1 million to repair, not counting the incalculable costs of injury, death, or environmental impact,” said Ed Landgraf, director of CAMO. “This AIS-based safety broadcasting system culminates several years of hard work on a solution that enables vessel and pipeline operators to collaborate on protecting mariners from the risk of pipeline strikes. The system makes it easier for mariners to know where and when to take protective measures as they transit or operate near submerged pipelines, and we look forward to a successful roll-out here and in other ports nationwide.”

The first phase of CAMO’s AIS-based pipeline damage prevention and awareness program is being launched in partnership with the Greater Lafourche Port Commission (Port Fourchon) and Oceaneering®, a global provider of engineered services and products primarily to the offshore oil and gas industry. Oceaneering’s PortVision® AIS-based vessel-tracking service is being used to monitor vessel activities in the two charted pipeline corridors north and south of Port Fourchon that pass under its main navigable channel. When the PortVision service detects a vessel operating at a speed less than 0.5 knots for three minutes or more within one of these corridors, an addressed, one-time AIS Safety Related Message (also known as message 12) is immediately transmitted directly to the vessel’s wheelhouse that says, “PIPELINE BELOW.”

Depending on the equipment installed on the receiving vessel and its equipment configuration, there may be visual and audible variations in how the AIS safety alert is received. Mariners capable of receiving and displaying the CAMO AIS messages are encouraged to provide feedback and report any anomalies to Oceaneering, Global Data Solutions support at This email address is being protected from spambots. You need JavaScript enabled to view it.or by calling 713-396-8644.

About the CAMO Initiative

CAMO initiated its joint pilot project for marine pipeline damage prevention and awareness in August 2012 with the United States Coast Guard (USCG). The pilot system was developed using Oceaneering’s PortVision AIS-based vessel monitoring service through a grant partnership with Port Fourchon and the Pipeline and Hazardous Materials Safety Administration (PHMSA). The transmission of AIS safety messages has been approved by the FCC and USCG as part of an experimental AIS transmission. The safety message transmission will be operational for 250 days following the USCG notification to mariners recently issued earlier this month. A decision about continuing the transmission will be made after an assessment of how well it has increased vessel operator awareness of subsea infrastructure while reducing the threat of pipeline damage when vessels stop, anchor, drop a spud, or push aground inside one of the designated corridors.

About CAMO

The Coastal and Marine Operators (CAMO) group was developed with a goal to diminish the gap between onshore and offshore spills, releases, and pipeline damage prevention initiatives. A key component of this group’s mission is to educate marine stakeholders and the public about the risks that damage to offshore utilities and pipelines can pose to personal safety and the environment. Although pipeline operators have vigorous inspection and maintenance programs to insure the integrity of their assets, the risk of third-party damage to a pipeline is a continual threat. For more information about CAMO, visit http://www.camogroup.org/ or follow CAMO at https://www.linkedin.com/company/coastal-and-marine-operators-camo-.

About Oceaneering’s PortVision Service

PortVision web-based enterprise software and services help oil companies, marine terminal operators, fleet owners/operators and other maritime users improve business operations through instant, continuous visibility into vessel and terminal activities. Based in Houston, Texas, PortVision is a service of Oceaneering International Inc. (NYSE: OII), a global oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. For more information about Oceaneering visit www.oceaneering.com. For more information about PortVision, visit http://www.portvision.com, or follow PortVision on http://www.linkedin.com/company/portvision.

About the Greater Lafourche Port Commission/Port Fourchon

The Greater Lafourche Port Commission, a political subdivision of the state of Louisiana, facilitates the economic growth of the communities in which it operates by maximizing the flow of trade and commerce. We do this to grow our economy and preserve our environment and heritage. The Port Commission exercises jurisdiction over the Tenth Ward of Lafourche Parish, south of the Intracoastal Waterway, including Port Fourchon and the South Lafourche Leonard Miller, Jr. Airport. For more information about Port Fourchon, visit www.portfourchon.com.

Doedijns, specialist in engineered hydraulic and pneumatic solutions has recently supplied the complete Hydraulic System for a Pile Gripper Frame to Bilfinger Marine & Offshore Systems. The system has been installed and commissioned and is currently being used to install a total of 72 Wind Turbine foundations for the Sandbank Offshore Wind Farm in the German North Sea. This makes the total amount of installed foundations with the help of a Doedijns system close to 400 foundations.

Oceaneering International, Inc. (NYSE: OII) announces that Suzanne Spera has joined Oceaneering as Director, Investor Relations.

Ms. Spera’s business career spans over 15 years in investor relations for energy companies. From 2008-2015 she was the Director, Investor Relations at Rowan Companies plc. Prior to that, she held investor relations positions at Synthesis Energy Systems, Inc., Cheniere Energy, Inc., and Petroleum Geo-Services ASA. Ms. Spera is a member of the National Investor Relations Institute (NIRI) and holds a Bachelor of Business Administration degree in Marketing from Texas A&M University.

Marvin J. Migura, Executive Vice President, stated, “We are delighted to have Suzanne, a proven energy industry investor relations professional, become a part of our management team. She has strong analytical, organizational, and problem-solving capabilities and proven abilities to communicate with the investment community. Internally, Suzanne will provide strategic insight, from an analyst and investor perspective, on competitive dynamics and market trends.”

Jack Jurkoshek, who joined Oceaneering in 1993, currently holds an equivalent position and will continue to serve the company in this capacity until his retirement at the end of March 2016.

The Department of the Interior’s Bureau of Ocean Energy Management (BOEM) held an oil and gas lease sale for the Western Gulf of Mexico that drew $22,675,212 in high bids for tracts on the U.S. Outer Continental Shelf offshore Texas.

A total of 5 offshore energy companies submitted 33 bids on 33 tracts, covering about 190,080 acres. The sum of all bids received totaled $22,675,212.

“The Gulf remains a critical component of our nation’s energy portfolio and holds important energy resources that spur economic opportunities for Gulf producing states, creating jobs and home-grown energy and reducing our dependence on foreign oil,” said BOEM Director Abigail Ross Hopper. “While this sale reflects today’s market conditions and industry’s current development strategy, it underscores a steady, continued interest in developing deep water federal offshore oil and gas resources.”

Lease Sale 246 builds on the first seven sales held under the Obama Administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program) that offered more than 60 million acres for development, garnered $2.9 billion in bid revenues and awarded 1,038 leases. The Five Year Program makes available all offshore areas with the highest resource potential and includes 75 percent of the nation’s undiscovered, technically recoverable offshore oil and gas resources.

“As one the most productive basins in the world, the Gulf of Mexico continues to be the keystone of the Nation’s offshore oil and gas resources,” Hopper said. “The continuing drop in oil prices and low natural gas prices obviously affect industry’s short-term investment decisions, but the Gulf’s long-term value to the nation remains high and the President’s energy strategy continues to offer millions of offshore acres for development while protecting the human, marine and coastal environments, and ensuring a fair return to the American people.”

Lease Sale 246 offered 4,083 unleased blocks, covering about 21.9 million acres, located from nine to 250 nautical miles offshore in water depths ranging from 16 to more than 10,975 feet (5 to 3,340 meters).

BOEM established the terms for this sale after extensive environmental analysis, public comment and consideration of the best scientific information available. These terms include measures to protect the environment, such as stipulations requiring that operators protect biologically sensitive features as well as providing trained protected species observers. The observers would monitor marine mammals and sea turtles to ensure compliance with protective measures and restrict operations when conditions warrant.

The lease terms include a range of incentives to encourage diligent development and ensure a fair return to taxpayers. The leases would also allow a lessee to earn a longer lease term for spudding a well in deeper water or by drilling to a minimum target depth.

Following today’s sale, each bid will go through a strict evaluation process within BOEM to ensure the public receives fair market value before a lease is awarded.

Statistics for Lease Sale 246 are available at http://www.boem.gov/Sale-246/ or at www.boem.gov.

BOEM oversees 160 million acres on the Outer Continental Shelf in the Gulf of Mexico off Texas, Louisiana, Mississippi, Alabama and Florida. About 26.6 million acres (4,938 blocks) are leased for oil and gas development; and 4.7 million of those acres (967 blocks) are producing oil and natural gas.

The Industry Technology Facilitator (ITF) has launched a call for proposals for new technology solutions to deliver cost efficiencies in through tubing logging during plugging and abandonment operations.

Workboats are built for a wide range of purposes. But, they all share the need for trouble-free bushings and bearings. Vesconite offers a line of low-friction, long-lived polymers that thrive in a dirty, marine environment.

The company's flagship product, Vesconite is a self-lubricating, low-wear material that is able to carry high loads at slow speeds. It doesn't swell in water or need to be greased, and offers up to ten times the usable life of bronze. The polymer is ideal for rudder necks and pintles. On deck, it excels when used with winches, sheaves, rollers and pulleys, and in dockyards for slipway bogies and syncrolifts.

Vesconite Hilube offers even lower friction and longer life. It provides no stick slip and will run dry. It's particularly effective for high-speed underwater applications like propeller shaft bearings and spindle pump supports. It's commonly used in deck cranes and davits for pivot points and slew bearings.

Hitemp 150 is highly abrasion resistant and ideal for high temperatures. It performs in the dirtiest of conditions where maintenance is difficult and a long service life is required, such as in grabs and mud pumps.

All are easily machined and non-toxic. Hollow bar, solid rod and plate stock shapes are available in a broad range of dimensions and thicknesses from the company's Texas office. This email address is being protected from spambots. You need JavaScript enabled to view it.; www.vesconite.com.

Global Marine Systems Limited of Chelmsford, is among the winners in the RoSPA Occupational Health and Safety Awards 2015 and has been awarded the Order of Distinction in recognition of the company’s 16th annual consecutive gold award.

This achievement is a result of the recent announcement by the Royal Society for the Prevention of Accidents (RoSPA). The RoSPA Awards, which date back 59 years, recognise commitment to continuous improvement in accident and ill health prevention at work.

David Rawlins, RoSPA’s awards manager, said: “The RoSPA Awards encourage improvement in occupational health and safety management. Organisations that gain recognition for their health and safety management systems, such as Global Marine, contribute to raising standards overall and we congratulate them.”

Captain Simon Hibberd, Director Fleet & Operational Support, said: “‘I am very proud that Global Marine has been recognised for continued commitment to the delivery of health & safety management systems. Sixteen consecutive annual gold awards from RoSPA is a very significant achievement and reveals the daily commitment to safety by all our personnel around the world.”

See www.rospa.com/awards/ for more information about the RoSPA Occupational Health and Safety Awards.

Schlumberger Limited (NYSE: SLB) and Cameron (NYSE: CAM) jointly announces a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies.

Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share.

Based on the closing stock prices of both companies on August 25, 2015, the agreement places a value of $66.36 per Cameron share, representing a 37.0% premium to Cameron’s 20-day volume weighted average price of $48.45 per share, and a 56.3% premium to Cameron’s most recent closing stock price of $42.47 per share. Upon closing, Cameron shareholders will own approximately 10% of Schlumberger’s outstanding shares of common stock.

Schlumberger expects to realize pretax synergies of approximately $300 million and $600 million in the first and second year, respectively. Initially, the synergies are primarily related to reducing operating costs, streamlining supply chains, and improving manufacturing processes, with a growing component of revenue synergies in the second year and beyond. Schlumberger also expects the combination to be accretive to earnings per share by the end of the first year after closing.

The transaction combines two complementary technology portfolios into a “pore-to-pipeline” products and services offering to the global oil and gas industry. On a pro forma basis, the combined company had 2014 revenues of $59 billion.

Paal Kibsgaard, Chairman and Chief Executive Officer of Schlumberger remarked, “This agreement with Cameron opens new and broader opportunities for Schlumberger. At our investor conference in June 2014, we highlighted how the E&P industry must transform to deliver increased performance at a time of range-bound commodity prices. With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market.

“We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger’s reservoir and well technologies with Cameron’s leadership in surface, drilling, processing and flow control technologies. Deep reservoir knowledge further enabled by instrumentation, software and automation, will launch a new era of complete drilling and production system performance.

“In addition, we will achieve significant efficiency gains through lowering operating costs, streamlining supply chains, and improving manufacturing processes while leveraging the Schlumberger transformation platform. We look forward to welcoming the talented employees of Cameron and are pleased that they will be joining the Schlumberger team as our fourth product group.”

Jack Moore, Chairman and Chief Executive Officer of Cameron, added, “This exciting transaction builds on our successful partnership with Schlumberger on OneSubsea and will position Cameron for its next phase of growth. For our shareholders, this combination provides significant value, while also enabling them to own a meaningful share of Schlumberger. Together, we will create a premier oilfield equipment and service company with an integrated and expanded platform to drive accelerated growth.

“By bringing together Cameron and Schlumberger, we will be uniting two great companies with successful track records, performance and value creation. We look forward to working closely with Schlumberger to achieve a seamless post-closing integration and long term value for all of our stakeholders.”

The transaction is subject to Cameron shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur in the first quarter of 2016.

Goldman, Sachs & Co. is acting as financial advisor, and Baker Botts LLP and Gibson Dunn & Crutcher LLP are serving as legal counsel, to Schlumberger. Credit Suisse is acting as financial advisor and Cravath, Swaine & Moore LLP is serving as legal counsel to Cameron.

The complex program of work comprises geophysical, geotechnical and environmental surveying of the proposed pipeline route to shore and will be undertaken using a multi-vessel approach. Bibby HydroMap’s own vessels Chartwell and Eagle will perform the geophysical and environmental scope, acquiring multibeam bathymetry, side scan sonar data, sub-bottom profiler and magnetometer data, alongside benthic grab samples and visual inspection. For the geotechnical aspect of the work, Bibby HydroMap will perform vibrocores to 5m and CPTs to 5m and 20m.

Bibby HydroMap Project Manager Daniel Jenkins comments “Working to improve the UK LNG network on this interesting and complex project is something that we are delighted to be a part of.”

Bibby HydroMap's survey vessel MV Chartwell Credit: Ronnie Roberts

Located in Morecambe Bay, offshore Barrow-in-Furness, Port Meridian Energy is developing an LNG receiving and offloading facility designed to accommodate Höegh LNG’s FSRU (floating storage and regasification unit) vessels. Conventional LNG transportation vessels will offload LNG to the FSRU via ship-to-ship transfer; with the FSRU converting liquefied natural gas (LNG) into a gaseous state suitable for transportation to shore via a subsea pipeline.

Transfer to shore comprises of a 26” diameter high pressure gas pipeline, commencing at the FSRU location approximately 43½ km’s southwest of Barrow and landfalling on the western beach of Walney Island. From the landfall, the pipeline traverses approximately 5½ km’s through agricultural fields and crosses Walney Channel to the mainland to the site of the proposed Above Ground Installation where the gas will connect into the existing National Transmission System.

Port Meridian Construction Manager Nigel Kirk comments “PMEL have contracted Bibby HydroMap because they offered a comprehensive onshore and offshore survey package, with established onshore subcontractors and dedicated offshore and nearshore vessels”

World Oil Market Forecast

Financial market turmoil is undermining global economic growth and reducing the demand for inventory which is especially negative for oil prices given over 300 million barrels of surplus inventory. This surplus is hardly eroded in 4Q15 making prices vulnerable to weakness if financial turmoil worsens. The lower prices are now, the stronger they will be later. Global light product demand has been strong and will remain so. Refining margins will continue to decline as gasoline cracks come off further and distillate stocks continue to build. Supply disruptions have ticked higher and significant political risks to supply remain.

Production Growth and Storage Limit Near-Term Price Upside

Since last month’s forecast, Henry Hub (HH) gas prices have taken a sizable hit reflecting the continuing storage surplus coupled with anticipated 4Q production growth led by Appalachia. Sagging prices come despite a late July/early August heat wave and lackluster production which helped boost gas-fired electricity generation (EG), narrowing the storage surplus somewhat faster than earlier expected. Yet, the market’s tepid response to those bullish weather episodes called attention to heightening concerns over bearish gas balances in the months ahead.

PJM 2018/2019 Capacity Auction: Results and Future Implications

PJM’s 2018/19 Base Residual Auction cleared the Capacity Performance product at $164/MW-day for the PJM RTO. This clear was over the high end of PIRA’s forecast range of ($130-$160/MW-day). However, EMAAC and ComEd areas cleared close to their offer caps as per our expectations. A total of about 13 GW of capacity was offered but not cleared in this auction. Despite the higher capacity price clear for the ComEd LDA, Exelon’s Quad Cities nuclear units did not clear in the auction. The inability of a large portion of DR to participate as a CP product implies significant upside to PJM RTO capacity prices when the share of CP resources required increase in the near future.

Downside Risks Outweigh Upside in Freight Market Outlook

The usual autumn pickup in Cape freight rates came earlier this year. The question is whether we are likely to see a second rebound as happened in late 2014. On the supply side, Australian iron ore exports are picking up and Brazil has the potential to boost exports after an expected dip last month. On the demand side, China’s steel production has slowed and there are currently some government imposed temporary mill shutdowns around Beijing. As of now, it looks like Cape rates will continue to slide in the short term.

Strong Demand at California/Quebec Carbon Auction

The Vintage-2015 allowance auction showed strong bidding interest supportive of the secondary market pricing gains that we expect in our forecast. As anticipated, the Vintage-2018 allowance auction was fully subscribed with a particularly strong coverage ratio, clearing well above the floor price.

Wide Range of Possible RGGI Auction Outcomes

Market prices have moved above the $6 trigger for the Cost Containment Reserve. The upcoming auction has potential for significant additional supply to enter the market. Unlike in California, there is plenty of demand for more allowances. While 1H15 emissions are down 8.5% year-on-year, total 2015 emissions are expected to be in line with 2014 levels. Coordinated procurement of large-scale hydro, renewables and transmission suggest a more sustained push to lower long term emissions.

U.S. Ethanol Prices Lower

U.S. ethanol prices edged down the week ending August 21, pressured by plunging oil prices. Manufacturing economics improved slightly due to lower corn costs, breaking a two-week slide.

U.S Ethanol Prices Decline

U.S. ethanol output dropped to a 15-week low 952 MB/D the week ending August 21 as some plants cut back production due to poor margins. Stocks increased slightly for the second consecutive week, building by 67 thousand barrels to 18.63 million barrels.

Japanese Crude Runs Ease, Holiday Impacts Fade

Crude runs eased back from peak levels and crude imports remained sufficiently high to build stocks slightly. Gasoline demand eased back following the holiday, which built stocks. Gasoil demand conversely rebounded, with lower yield and higher exports, so to draw stocks. Kerosene demand jumped a bit and moderated the seasonal stock building. The indicative refining margin remains acceptable, with lower gasoline, naphtha, and fuel oil cracks being mostly offset by higher middle distillate cracks.

U.S. Coal Stockpile Estimates

Power sector coal stocks drew modestly in August as mild weather conditions across the Midwest and Northern Plains was offset by continued weak coal supply. PIRA estimates U.S. electric power sector coal stocks will reach 157 MMst as of the end of this month, or 81 days of forward demand based on our forecast of Sep/Oct average coal burn (vs. 57 days one year ago).

Asia Demand Weakness No Guarantee for Low Spot Prices

The inefficient mechanisms that pervade LNG pricing, particularly in Asia, were once again highlighted in July. At this point, the fragmented nature of pricing should not come as a surprise given the even odder behavior of demand. The outlook on the demand front is simply not good, which will do little to boost future support for Asian prices, oil prices notwithstanding, particularly as overall global supply increases are inevitable.

U.S. Commercial Stocks Again Reach New Record Level, In Spite of Crude Draw

In spite of a larger than expected crude stock draw, total commercial stocks built a combined 2.9 million barrels this week, to a new record high level. With a smaller overall build last year, the year-on-year excess widened. Commercial stocks began to grow quickly the first week of September last year, and that is likely when we will see the surplus decline.

Producing Region (PR) Storage Congestion Getting Harder to Avoid

Thursday’s market miss and the expected rapidly increasing storage builds as the shoulder season starts to get underway highlight both a seasonal denouement of summer peak electric generation cooling demand, as well as the lack of any significant heating demand coming back into play until October.

3 Major OECD Crude Stocks Build in October But Then Continue Downward Trend

While Thursday’s crude market certainly reversed trend, the crude price sell-off over the last few weeks has obscured an important fundamental view: we expect crude stocks in the 3 Major OECD regions to continue cleaning up through the end of the year, although October will see stocks build because of refinery maintenance.

Bulgarian Gas Price Likely To Be Reduced

Natural gas prices in Bulgaria are expected to be cut by 13.65% as of next quarter. Chairperson of Bulgaria’s Energy and Water Regulatory Commission (EWRC) Ivan Ivanov announced the news speaking with journalists. “I believe that the natural gas price will be a total of 30% cheaper for the year. The initial reports of Bulgargaz show that the natural gas price for the next quarter should be 13.65% cheaper,” he said.

PIRA Urges Caution Regarding Expected Crude Production Revisions from the EIA’s Producer Survey

Since the collapse in crude prices some months ago, markets have been focused on the timing and magnitude of the peak in U.S. crude production, and its subsequent drop. On Monday, August 31, the EIA is scheduled to publish both the June 2015 Petroleum Supply Monthly, and the 2014 Petroleum Supply Annual. Traders and analysts have been focused on what the EIA, using their Form 914 for the first time, will do to recent reported crude production data. Even though PIRA and others have noted we think the EIA has overstating Texas production so far during 2015, we urge caution is assuming the new crude producer survey will revise down 2015 crude production.

German Power Sinking Into Unchartered Waters

In Germany, fundamental support to the front (September) and winter months prices will come from stabilizing power demand and stronger exports, especially as the Alpine region is seeing drier conditions this year. However, with no signs of major capacity closures, no clear anchor is in place for German deferred prices, which is to say that the back of the curve will sink further into unchartered waters. With the recent declines in French forward prices, cost recovery for the operational nuclear fleet starts being problematic, which is to say that French prices may be closer to a bottom.

Ample Supply Supports Demand Growth and Injection Gains

LNG did not flow to Europe in the volumes we expected during the third quarter, with only Qatar really pushing cargos into its own terminals. It is an important lesson for the future; global length does not necessarily mean that Europe will be a dumping ground for LNG in the years ahead, although the emergence of U.S. export volumes could change the equation. Well-priced pipeline supplies from contract sources have stepped in front of LNG to boost storage injections and meet incremental demand.

Financial Market Turbulence Is Not Yet Over in All Likelihood

A large part of the recent financial market stress was caused by growth worries about emerging markets. It is therefore crucial to track the performance of these economies, though timely information is hard to come by. Available indicators are still painting a negative picture of the emerging world. For developed economies, the key risk going forward is financial market contagion from emerging economies. Historical experiences provide very limited guidance on this subject. But the likelihood is that policymakers in the U.S. and Europe are taking this threat seriously.

Market Falls, Then Rallies

The S&P 500 and other key market indicators dropped drastically on a weekly average basis. They generally fell as the week started, but they recovered towards the end of the week and ended higher Friday-to-Friday. The dollar continues to strengthen against Asian currencies, the Russian ruble and many of the fragile emerging market economies. Commodities generally fell. US Baa corporate bond yields jumped significantly higher this week. Policy interest rates in China fell again from 4.85% to 4.60%.

Seaborne Coal Market Edges Higher amid Surge in Oil Pricing

Coal prices rebounded last week, carried higher by the sizeable recovery in equity and oil prices on Thursday and Friday following a collapse early in the week. In the prompt market, FOB Newcastle (Australia) prices strengthened the most, while gains for API#2 (Northwest Europe) and API#4 (South Africa) measured about half as strong. Further along the curve, API#2 and API#4 fared better than FOB Newcastle. The market remains in search for clear direction, and at the moment it appears as if pricing will follow the lead of oil, which is not expected to be supportive of a structural rebalancing in pricing until mid-2016.

U.S. LPG Prices Firm Ahead of Seasonal Demand

U.S. LPG prices ripped higher on Friday with crude prices. September propane futures jumped 9% higher to 41.6¢/gal and butane gained 2.4¢ to 54.2¢/gal. LPG prices, in anticipation of higher seasonal demand in the months to come, have outperformed vs crude oil thus far in August. Propane prices have gained 8.5%, and butane 2.5%, vs. a 4% decrease in crude prices. Ethane prices fell to 18.9¢/gal, sliding with natural gas, but remained above gas on a Btu basis. Ethane prices, after trading at a discount to gas for a year or so, are now approaching levels necessary to economically incentivize incremental production.

Corn Crop Maturing Fast

The end of meteorological summer brings a choice for many eastern Belt farmers; go to the Farm Progress Show in Decatur, Illinois which starts tomorrow, or start harvesting corn that turned very quickly over the last week or so.

Frustration Starting to Build

Unfortunately, there’s very little to do at these price levels. The market seems somewhat content around $3.75 in corn and above $8.75 in soybeans, while it does appear that wheat sellers are trying to re-establish a decent short position which may be a bad bet.

Global Equities Climb Higher

Global markets gained about 1% on the week following a 6% decline the previous week. In the U.S., energy, retail, and technology showed the strongest gains among the tracking sectors. Utilities and housing posted declines.

Internationally, most of the tracking indices improved with emerging markets and Japan doing the best. BRIC’s and Europe posted fractional declines. The information above is part of PIRA Energy Group's weekly Energy Market Recap- which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Greene’s Energy Group, LLC (GEG), a leading provider of integrated testing, rentals and specialty services, has named Michael “Mike” Hayes as Vice President and General Manager of Pressure Testing and Services (PTS) and the Engineering Group.

Based in Houston, Hayes will be responsible for implementing corporate initiatives and business strategies relating to the operations of the PTS product service line. PTS has 11 locations covering both U.S. land and offshore markets. PTS performs drilling, completion and production pressure testing services along with associated stacking and torqueing of wellhead equipment and gathering system pipelines. PTS also includes Cherokee Pumping Services & Rentals and Nitrogen Services.

Hayes has more than 30 years of operational experience in the domestic and international oil and gas service industry. Most recently, he served as Vice President of the U.S. Eastern Region for Frank’s International and for Weatherford International where he was responsible for managing all sales and operations, QHSSE compliance regulations and organization of business structure.

Hayes is an active member of the Society of Petroleum Engineers (SPE) and the International Association of Drilling Contractors (IADC). Additionally, during his career, he has designed and implemented several new tools and technologies that have resulted in more than 16 patents issued/pending.

“Mike’s industry experience, paired with his determination to succeed, make him a great addition to our team,” said Frank Mathews, President and COO of GEG. “Mike adds skills and perspective that will help Greene’s deliver on our core values of best in class safety and service excellence. We are excited to have Mike leading the PTS team as we navigate the challenging waters ahead.”

Crowley Maritime Corp. subsidiary Jensen Maritime today announced the development of two new, liquefied natural gas (LNG) bunker barge concepts that can be fully customized to meet a customer’s unique needs.

The first concept involves outfitting an existing barge with an above-deck LNG tank. The concept can be further modified to accommodate more than one type of product, if a customer has a need for multiple liquid transfers. Advantages of this design include a fast turnaround and a reduced need to invest in specialized assets if a customer has short-term LNG requirements.

The second concept is for a purpose-built, new bunker barge. Offering greater carrying capacity and improved visibility, the design features a larger LNG tank that is nestled inside of the barge. This new barge will also feature the latest safety features and efficiencies.

“We understand that customers have very different needs when it comes to LNG,” said Johan Sperling, vice president. “Whether LNG is required for the long or short term, or in larger or smaller quantities, Jensen has a bunkering solution. We are proud to continue leading the way with LNG marine solutions.”

In addition to offering customers maximum flexibility and top safety features, all Jensen designs are developed using the company’s proprietary production engineering capabilities, which makes the outfitting, construction and assembly more efficient.

Bunker barges offer an innovative solution for the maritime industry, which is currently struggling with the decision over which to develop first – LNG infrastructure or vessels. These barges are an ideal resource for those who have LNG needs at ports not located near an LNG terminal or as an alternative to over-the-road transportation.

About Jensen Maritime


Seattle-based Jensen Maritime Consultants, Inc., is a naval architecture and marine engineering firm owned by Crowley Maritime Corporation. The company offers a diverse range of consulting, design and engineering services developed from more than 50 years of experience working around the world. Jensen is a recognized leader in the design of all types of vessels - particularly workboats, fishing boats and fireboats – and has built a favorable reputation on a long history of successful designs and conversions with close attention to engineering basics. The company's services include detail and conceptual design and engineering, lofting, regulatory and shipyard liaison as well as on-site consulting services and on-location assistance anywhere in the world.

Helix Energy Solutions Group, Inc. is pleased to announce that Shell, as operator of BC-10, has awarded a contract to Helix’s robotics subsidiary, Canyon Offshore Inc., to trench and bury over 40 kilometers of pipe in 1675 meters of water in the Campos Basin offshore Brazil. The work will be performed at the Shell operated BC-10 field in the fourth quarter of 2015 from the DP III M/V Grand Canyon I utilizing the T-1200 Deepwater Trenching System.

Mr. Ian Edmondstone, President of Canyon, said “we are very pleased that Shell as operator of BC 10 has awarded this work to Canyon. Shell and Canyon have a long history of developing and utilizing Pipeline Burial Trenching as a flow assurance enhancement tool, and we have performed numerous projects together in the past using this successful technology. This will be the deepest pipeline trenching project ever performed offshore Brazil and the vessel Grand Canyon I deploying T-1200 is the perfect set of tools for the job.”

Helix Energy Solutions Group, headquartered in Houston, Texas is an international offshore energy company that provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations. For more information about Helix, please visit the website.