Greene's Energy Group, LLC (GEG), a leading provider of integrated testing, rentals and specialty services, has introduced Mission Zero as a company-wide safety process with a key focus of eliminating at-risk behaviors.

Encompassing office and field personnel, Mission Zero engages the company's workforce to embrace a culture of safety that achieves zero incidents and benefits customers, the company and employees.

Not only does Mission Zero demonstrate GEG's efforts toward a zero incident rate, but it includes measureable and practical checkpoints for employees to keep safety at the forefront such as recognition and awards, a mentoring program, posted safety data, sub-contractor management, accurate reporting and drug and alcohol testing.

GEG will engage the Zero Injury Institute® (ZII), to conduct internal evaluations of the safety program content, process and culture. ZII's team will also visit various operating areas and conduct confidential interviews to target topics for discussion at an upcoming Mission Zero workshop.

"Mission Zero changes our safety value forever – we are a zero injury company with the core value of 'Safety First and Foremost'," said Robert Vilyus, CEO of GEG. "As a whole, we pledge to stop at risk behavior through involvement, recognition, appreciation and mentoring. Management is committed to the success of this continual process, and worker participation is crucial. We've already seen an overwhelmingly positive response, and we look forward Greene's Energy Group becoming the safest company in the industry."

The Bureau of Safety and Environmental Enforcement (BSEE) published an Advanced Notice of Proposed Rulemaking today in the Federal Register Reading Room soliciting public comments on improving the safety of helideck and aviation fuel operations on fixed offshore facilities. This notice is the most recent step in BSEE's continued efforts to strengthen safety on the Outer Continental Shelf (OCS).

"We know that transportation accidents account for the majority of fatalities on the OCS, and that helicopter-related accidents are a significant concern" said BSEE Director Brian Salerno. "We are looking at our regulations to ensure that the aviation related areas over which we have jurisdiction have the benefit of rigorous safety standards."

Specifically, BSEE is seeking comments on whether to incorporate in its regulations certain industry and international standards for the design, construction and maintenance of offshore helidecks, as well as standards for aviation fuel quality, storage and handling. The bureau is also soliciting information on past accidents or other incidents involving helidecks, helicopters or aviation fuel on or near fixed OCS facilities.

BSEE is responsible for the regulation of offshore facilities engaged in oil and gas operations, including the safety of helidecks and aviation fuel storage and handling on fixed offshore facilities. This notice begins the process of addressing any additional safety issues through new regulations.

The Advanced Notice of Proposed Rulemaking can be viewed hereThe public is invited to submit comments starting tomorrow. Comments can be submitted by any of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov. In the entry titled Enter Keyword or ID, enter BSEE-2014-0001, then click search.

Mail or hand-carry comments to the Department of the Interior; Bureau of Safety and Environmental Enforcement; Attention: Regulations Development Branch; 381 Elden Street, HE3313; Herndon, Virginia 20170-4817

Eni has made a new oil discovery in Block 15/06, in the Ochigufu exploration prospect, in deep water offshore Angola. Oghigufu is the 10th commercial oil discovery made in Block 15/06. The new discovery is estimated to contain 300 million barrels of oil in place.

Ochigufu 1 NFW well, which has led to the discovery, will be brought into production in record time. The well is located at approximately 150 kilometers off the coast and 9.8 kilometers from the Ngoma FPSO (West Hub) and the closeness to Ngoma FPSO allows the increase of the resource base of the West Hub project, currently underway. The well was drilled by the Ocean Rig Poseidon Drilling Unit in a water depth of 1,337 meters and reached a total depth of 4,470 meters.

Ochigufu 1 NFW was directionally drilled in order to reach the targets in optimal position and proved a net oil pay of 47 meters, (34° API) contained in the Lower Miocene and Oligocene sandstones with very good petrophysical properties. The data acquired in Ochigufu 1 well indicate a production capacity equal to more than 5,000 barrels of oil per day.

Claudio Descalzi , Eni's CEO said: "This important discovery , which will be brought into production in record time, adds even more value to Block 15/06. Like the recent discoveries in Congo and Gabon, this new find exemplifies the results we can achieve by applying leading edge technologies to exploration, and substantiates the decision to refocus Eni on key oil and gas competences".

Studies are underway in order to evaluate an early tie-in to the Ngoma FPSO, already in location in the West Hub and designed to handle 100,000 barrels of oil production per day.

Eni is operator of the Block 15/06 with a 35% stake. The other partners of the Joint Venture committed to the block are Sonangol P&P (30% stake), SSI Fifteen Limited (25% stake), Falcon Oil Holding Angola SA (5% stake) and Statoil Angola Block 15/06 (5% stake).

Angola is a key Country in the strategy of organic growth of Eni, which has been present in the Country since 1980 with a daily production in 2013 of about 90,000 barrels of oil equivalent per day. In Block 15/06 the two oil development projects West hub and East Hub have already been sanctioned. The production start up of the West Hub project, through FPSO Ngoma, is expected by the end of 2014. In Angola, Eni is also operator of Block 35, located in the deepwater Kwanza Basin.

Ships carrying crude oil and petroleum products are limited by size restrictions imposed by several of the main thoroughfares of maritime navigation: the Panama Canal, the Suez Canal, and the Strait of Malacca. These size restrictions provide another way to classify the large tankers that carry most of global crude oil and petroleum product trade.

The Panama Canal, an important route connecting the Pacific Ocean to the Caribbean Sea and the Atlantic Ocean, currently has a limited role in global crude and petroleum product transport. The canal's current size restrictions means smaller vessels, with capacities of approximately 400,000-550,000 barrels of light sweet crude oil, are the only ships that can safely pass through the canal. These ships are referred to as Panamax tankers, and their smaller cargos lead to a higher per-barrel cost.

However, the Panama Canal is undergoing an expansion that will allow for the passage of larger vessels with capacities of approximately 400,000-680,000 barrels of crude oil. These larger tankers have the potential to increase crude and petroleum product transport through the canal. Larger vessels or vessels that are slightly over the draft limit can use the Trans Panama Pipeline, which runs parallel to the canal and has both the loading and unloading points for a complete transfer, but doing so adds to shipment costs. In addition to oil transit, the expansion of the Panama Canal, now slated for late 2015, will be able to provide passage for up to 80% of global shipping of liquefied natural gas (LNG). It currently allows passage of only a small percentage of LNG shipping and only shipping by the smallest of LNG tankers.

The Suez Canal in Egypt is a major transit route from the Persian Gulf to the Mediterranean and beyond that to North America. The Suez Canal saves an estimated 6,000 miles of travel around the Cape of Good Hope at the southernmost point of Africa. As the sizes of vessels in the global fleet have increased, the canal was deepened and widened. The current Suezmax limitation on vessels passing through the Suez is a draft of 66 feet and a width of 164 feet. A ship of this size has a deadweight tonnage of approximately 900,000 barrels to 1.3 million barrels. However, most vessels do not transit the canal fully laden; vessels instead unload into the Suez-Mediterranean (Sumed) Pipeline, which runs parallel to the canal, prior to transit and reload once having passed through the canal.

The Strait of Malacca, located between Indonesia, Malaysia, and Singapore, links the Indian Ocean to the South China Sea and Pacific Ocean. The Strait of Malacca is the shortest sea route between Persian Gulf suppliers and the markets of Asia. However, the size of vessels that can safely navigate the strait (Malaccamax) is limited to a draft of 82 feet, along with length and width restrictions. This is approximately equal to a vessel classified as a Very Large Crude Carrier (VLCC), with a capacity of 1.9-2.2 million barrels of crude oil. Larger vessels, such as Ultra-Large Crude Carriers (ULCC), must use alternative navigation routes with deeper channels, adding time and cost to the voyage.
Principal contributor: T. Mason Hamilton

Source: EIA

Leading oil and gas experts are lined up to present at the 20th SPE ICoTA European Well Intervention Conference which will, once again, bring industry professionals together to discuss current trends and new technologies within well intervention and completion.

Taking place on 12/13 November at Aberdeen Exhibition and Conference Centre, the annual conference is hosted by the Society of Petroleum Engineers (SPE) Aberdeen Section and the Intervention and Coiled Tubing Association (ICoTA) European Chapter. The conference will feature over twenty presentations from a variety of major oil and gas operators, including BP, Shell, ConocoPhillips and Statoil and specialists from the coiled tubing sector, including AnTech.

An extensive range of topics will be covered over the course of the two day conference, including the world's first deepwater propellant perforation for a depleted carbonate subsea gas well. Oil & Gas UK will also present the conference with the findings of the 4th Well Intervention Excellence Network.

Michael Taggart, Chairman of the conference committee, is looking forward to welcoming delegates to the event: "Sharing skills, knowledge and experience for the benefit of the oil and gas industry is high on the agenda for both SPE and ICoTA. We are therefore delighted that this conference has come to be regarded as Europe's premier forum for exchange and discussion of the latest developments in well intervention and completion techniques.

"Now in its 20th year, the conference has matured into an influential event where well intervention professionals attend to share knowledge, learn and do business. By imparting our knowledge and experiences from the North Sea and beyond, we can push the boundaries of well intervention and ensure a healthy oil and gas industry for the future."

A pre-conference short course on 11 November entitled, 'An introduction to well intervention', is aimed at those who have an interest in the topic but are new to the subject or are looking for a refresher and will appeal to those looking to gain a basic understanding of well intervention operations.

Patricia Vega is the new president and CEO of GE Oil & Gas (NYSE: GE) for Latin America. She will be responsible to maintain the prominent position assumed by the company in the oil and gas market, contributing to the development of customized solutions that meet the specific demands of customers and partners in the region.

Patricia has 20 years of experience in the oil industry, including technical, operational and leadership positions in the United States, Mexico, Colombia and Brazil. Based in Rio de Janeiro, she will lead the 5,400 employees of GE Oil & Gas in Latin America and will be responsible for developing regional capabilities.

"The big challenge is to further increase GE Oil & Gas market share in the region. Today the company is the leading provider of solutions for the oil and gas industry and the goal is to keep the strong partnerships with our customers and to continue developing technologies that complement the portfolio and meet the market needs," said Patricia Vega. GE Oil & Gas provides solutions ranging from drilling to production, as well as power generation, transportation, storage, refining, processing systems and pipeline inspection.

Previously, Patricia held leadership positions at various companies in the oil and gas sector, including a role as vice president of operations and director of human resources for Latin America.

Patricia has a degree in Petroleum Engineering at University of Santander, a Master degree in Technology Development & Engineering Management at Oklahoma State University and an MBA from the Thunderbird School of Global Management.

Patricia will assume the role of João Geraldo Ferreira, who leaves the company after seven years. GE Oil & Gas is the world leader in advanced technology equipment and services for all segments of the oil and gas industry. The energy division is focused on technological innovation and, through strategic acquisitions, strengthening its local presence to continuously improve the performance of the oil sector and its productivity.

Statoil ASA (OSE: STL, NYSE: STO) farms down in Aasta Hansteen, Asterix and Polarled andexits two assets on the NCS for a consideration of USD 1.3 billion, including contingent payment.

Illustration: The Aasta Hansteen platform will be the largest SPAR platform in the world. (Illustration: GeoGraphic / Statoil)

Through this transaction Statoil monetizes on the Aasta Hansteen field development project, while retaining the operatorship and a 51 % equity share. In addition Statoil exits the non-core Vega and Gjøa fields. The transaction includes a farm down in four exploration licenses in the Vøring area. The buyer is Wintershall, a Germany-based energy company and a well-established player on the Norwegian Continental Shelf (NCS).

"We realize significant value, created through successful asset development. The transaction increases our flexibility to further strengthen our portfolio," says Arne Sigve Nylund, president for Development and Production Norway in Statoil.

The transaction consists of a cash consideration of USD 1.25 billion and a USD 50 million consideration contingent on Aasta Hansteen milestones. The accounting gain from the transaction is expected to be between USD 0.7-0.9 billion and will be adjusted for activity between the effective date 1 January 2014 and the closing date.

The transaction releases around USD 1.8 billion of capital expenditure for the period from the effective date until end of 2020. Statoil's production from the divested Gjøa and Vega assets in the first half of 2014 is 22.000 barrels of oil equivalent per day. The transaction includes a transfer of operatorship of the sub-sea field Vega. The transaction will not involve transfer of personnel.
"We have a strong portfolio of projects. This transaction focuses our NCS portfolio and further improves our capacity to invest in core areas," says Nylund.

Statoil will invest around 20 USD billion annually in the period 2014-2016. This includes NCS project Gudrun which started up April this year, while Valemon will come on stream towards the end of year. In addition projects like Aasta Hansteen and Gina Krogh are in the execution phase, while Johan Sverdrup and Johan Castberg are under planning. The exploration activity remains high with 50 exploration wells planned globally for 2014.

Statoil and Wintershall have signed an extended agreement to continue cooperating on EOR efforts and exploration. 
The effective date for the transaction is 1 January 2014. Closing is expected around year end 2014, pending government approval.
Strategic portfolio management

In recent years Statoil has undertaken a series of transactions to position Statoil as a well-capitalized, technology focused upstream company. Active portfolio management continues to realize substantial value that is channeled to further strengthening the company's growth potential. Total proceeds of around USD 20 billion have been realized through divestments by Statoil since 2010, including this transaction.

Recent portfolio optimization activity includes divestments internationally as well as on the NCS. Last year Statoil divested their holdings in two West of Shetlands fields, Rosebank and Schiehallion. The same transaction also included shares in Gullfaks and Gudrun.

Lambert Energy Advisory was financial advisor to Statoil on this transaction.

Vard Marine, formerly STX Marine, has been awarded a US Patent for their design and engineering of a Dual Fuel Vessel. The company is pleased to announce that later this year; the first of six 5100DWT vessels to be built under this patent, designed by Vard Marine and built by Gulf Coast Shipyard Group for Harvey Gulf International Marine will be delivered. These innovative vessels represent the first US flag vessels capable of operating exclusively on natural gas or diesel fuel oil.

As per US Patent No. US 8,690,622 B2, filed September 13, 2011, the patent is applicable to: a small size, self-propelled floating vessel having a dual fuel system, monohull or catamaran hull shape with an overall length ranging from sixty meters to one hundred and seventy meters, azimuthing thrusters, and with LNG tank capacities between 100cbm and 1200cbm. For further information, please contact the Vice President of Business Development, Wade Carson, This email address is being protected from spambots. You need JavaScript enabled to view it.

Vard Marine specializes in the development of advanced technology and its application to offshore and specialized vessel designs. Its portfolio ranges from offshore support vessels, offshore subsea construction vessels, semi-submersibles, and icebreakers to research, naval and patrol vessels, and will complement VARD's existing product portfolio of vessel designs and equipment.

Vard Marine is headquartered in Vancouver, Canada, with branch offices in Ottawa and Houston, Texas. Vard Marine is a wholly owned subsidiary of Vard Group AS, a Fincantieri company, with a workforce of over 20,000 worldwide supporting 21 shipyards.

At present we are seeing lower oil prices as a function of softer demand growth in both Europe and China combined with recent output increases from OPEC, particularly Libya, together with the ongoing surge in US production.

In the short-term, supply could start to be taken out of the market quite quickly if lower price levels are sustained – we have earlier noted that returns for most E&P companies have been eroded by rapidly-rising costs. This has pushed hurdle rates for new projects higher often to around $80/bbl, indeed many are described by our E&P clients as 'marginal' at $100/bbl, which means that we could start to see a major shift in oil company strategy if prices fall much further. This is likely to manifest itself in terms of pressure on the supply chain to cut costs, delays in project sanctioning and in major modification projects. So below $85 we are likely going to see investment levels materially impacted.

Further supply-side pressure may well be seen in Russia, albeit in the longer term. There are reports that western activity with 'sanctioned companies' (includes Rosneft, Lukoil, Surgutneftegaz) will have to stop in the coming weeks which could halt the likes of Exxon working with Rosneft in the Arctic and have wider implications for the oil field service community (e.g. Seadrill's provision of rigs for Rosneft). However, in reality, Artic joint ventures such as these are long-term in nature and any impact on the oil supply is most likely to be seen over a 2-5 year period.

Without political interference markets eventually self-correct. Much of the additional production capacity added in recent years is high cost US unconventional oil – and these wells peak early and decline rapidly. So if drilling stops, over-production capacity will quickly evaporate which could bring global oil supply down materially, and as we have stated so often in the past, if investment slows significantly we will be short on oil supply and there will again be upward pressure on oil prices.

www.douglas-westwood.com

Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announces that J. Kevin Bartol, Executive Vice President, Chief Financial Officer & Treasurer, has decided to leave the Company to pursue other opportunities. Mr. Bartol will continue to serve until a successor is chosen and a smooth transition is completed. The Company is conducting a search and intends to name Mr. Bartol's successor in short order.

"We greatly appreciate Kevin's dedication and many contributions to Rowan's success over the past seven years," said Thomas Burke, Rowan's President and Chief Executive Officer. "Kevin has been instrumental in shaping the Company's asset and capital markets strategy, from spearheading the sale of the Manufacturing and Land Drilling divisions and acquiring Skeie Drilling to positioning the Company for the future with our solid balance sheet, strong financial condition and investment grade ratings. We wish him well in his future endeavors."

The Company also announced today that Melanie M. Trent has been promoted to Executive Vice President, General Counsel and Chief Administrative Officer and will assume responsibility for the Legal function, as well as retain responsibility for the Human Resources, Information Technology and Communications departments. Ms. Trent succeeds John L. Buvens, Jr. who is retiring from Rowan after more than 30 years with the Company.

"John has been an important contributor to Rowan's evolution over the past thirty years and we will miss his expertise and judgment. We wish him all the best in retirement," Mr. Burke stated.

Ms. Trent joined the Company in 2005, served as Senior Vice President, Chief Administrative Officer and Company Secretary since 2011, and served as Vice President & Corporate Secretary prior to that time.

McDermott International, Inc. (NYSE: MDR) ("McDermott") is pleased to announce the successful completion of the Jack and St. Malo project for Chevron U.S.A. Inc. The project involved the installation of jumpers, flying leads, subsea pump stations, umbilicals and subsea landing of some of the industry's largest and complex umbilical end terminations to a host floating production platform in 7,200 feet of water 279 miles offshore Louisiana. The project is part of the first stage of development of the Jack South, St. Malo South and St. Malo North Drill Centers.

McDermott subsea construction vessel NO102 installed umbilicals totaling 65 miles along with other related subsea structures. (Photo: Business Wire)

McDermott executed in-house fabrication of 21 high specification rigid flowline, manifold and pump jumpers and installed the structures using the Derrick Barge 50 ("DB50") with its specialized deepwater lowering system. In addition, more than 80 flying leads, five additional rigid production well jumpers and other subsea control and production boost components were installed by the DB50 – including three pump stations each weighing 209 tons to a depth of 6,988 feet. The DB50 was assisted by a fleet of up to 12 support vessels delivering material from various Gulf Coast fabrication and staging facilities to the offshore installation site.

Additionally, three control and two power umbilicals totaling 65 miles were transported and installed by the subsea construction vessel North Ocean 102 ("NO102") along with other related subsea structures.

"Our ability to fabricate the jumpers in house and utilize the combined strengths of the DB50's deepwater lowering system and the high payload and top tension capacity of the NO102's 330-ton vertical lay system allowed McDermott to deliver an integrated subsea solution for our client on this complex deepwater project," said Tony Duncan, Executive Vice President Subsea. "As the industry moves into deeper water, McDermott continues to tailor its subsea engineering expertise, fabrication facilities, and global fleet of specialized vessels to meet the evolving technical needs of our clients."

Located in the Gulf of Mexico Walker Ridge Area, the Jack and St. Malo fields are jointly being developed with a host floating production unit.

Final touches have been made to the Damen Walk 2 Work vessel , a completely new and innovative design for the offshore support vessel market. Damen also decided to start building the vessel on speculation, This is marked with the start of the basic and consequently detailed engineering of the vessel. The vessel will support and accommodate turbine maintenance crews at sea. Not only provides the vessel on-site work facilities and accommodation for voyages of up to one month, the vessel also comes with a helicopter platform, daughter crafts and has an 80% weather operability in the Central North Sea Area.

Since the 'E3' are becoming more and more important these days, Damen started about a year ago with the search for a way to create and design a vessel which is Environmentally-friendly, Economic viable, and Efficient in operation (E3). The key design criteria for the vessel were the result of extensive discussions Damen held with the industry. Staff retention was a growing issue in the offshore market. Therefore a fourth requirement was given: comfort for crew and its passengers.

Features
The vessel is a monohull with bridge located amidships. It has a length of 90m and a beam of 20m. The Damen WSV will feature 500m2 of deck space, approximately 400 m2 internal storage space, a helicopter platform and a motion and heave compensating crane and gangway. Its shallow draft optimizes comfort, while also conferring significant power savings.

North Sea sea state
The Walk-to-work WSV is especially designed for the North Sea area of operation. The vessel is is capable of gaining access up to 80% of the time in the worst case scenario in the Central North Sea area. This result can also be achieved when the worst single failure is occurring, a main switchboard failure, on board the vessel. This performance results in an accessibility of more than 95% in many areas were offshore wind farms are being built.

The effects of this new and innovative design are: greater turbine availability, less lost production and less direct O&M costs against a higher profitability of the wind farm. This vessel is contributing to about 25% reduction of O&M cost of an average large size wind farm.

Optimal comfort for crew and passengers
The optimal comfort for crew and passengers is determined by designing the right hull form and the right positioning of the accommodation. Damen has been able to reduce vertical and horizontal accelerations significantly. A significant reduction of accelerations has been achieved throughout the vessel up to 30% in the , accommodation. This achievement highly improves the level of comfort, safety and workability on board.

The vessel, as a result of this design effort, performs well within the motion criteria as set by the industry.

When considering noise and vibrations, bow thrusters noise emission can be mitigated, but it is relatively expensive to do so. Many of these considerations has been input for the design-phase of the vessel, resulting as well into easily complying within the industry set criteria at limited cost.

Adding up to the level of comfort is the extensive ergonomic studies carried out resulting in crew and turbine technician cabin dimensions of well above the minimum set requirements by law.

Of course the vessel has a fitness center and internet/movie services.

Optimal efficiency and economics
By extensively analyzing the flow of personnel with all their different tasks on board the vessel and the flow of spare parts and other equipment, Damen was able to map the public spaces for efficient workflows and storage.

Having an optimized design based on the right Ocean conditions results in the fact that expensive compensation systems are not needed.
The hull-form resulted in an average of 25% less installed power to reach the same speed. When considering DP operations and power output, significant less thrusters output (20%) is required because of the positioning of the accommodation. .

Damen also developed a fuel consumption tool in which total fuel consumption of the vessel in various operational conditions in a specific area can be calculated. This tool gives a good indication of what can be expected on a yearly basis given a certain operational profile.

So altogether, every effort has been made to reduce the vessels total cost of ownership.

Transfer Positioning System (TPS)
The transfer of maintenance personnel and equipment is one of performance determining functions of the entire ship. Being able to continue the work flow in the prevailing wind conditions and waves, forms the biggest challenge. The design questions are based on the selections of the components like the access systems and, the choice of the DP system, the positioning of these systems on board and a smart integration. Characteristic for these systems for crew and cargo transfer on offshore vessels is that they operate independently of the control systems for the dynamic positioning of the vessel. This innovation, the TPS, aims to increase employability by design integration and share system integration at the heart of the design.

NYC-based PIRA Energy Group reports that accounting for the strength of U.S. jet fuel demand this summer. In the U.S., stock excess accelerates. In Japan, stocks draw, but finished product stocks continue to rise. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Accounting for the Strength of U.S. Jet Fuel Demand this Summer

Jet fuel demand spiked in June, July and early August. Because the economy's fundamentals do not support such a high level of domestic demand, we suspect that higher than currently assumed exports will result in a revision downward of the final demand numbers. There is already data from the Bureau of the Census that suggests that July exports will be revised up by 100 MB/D, which will put July demand back to levels more consistent with the underlying fundamentals.

U.S. Stock Excess Accelerates

The year-on-year stock excess widened this past week to the highest this year. The inventory increase was mostly in crude oil as weekly imports jumped to the second highest level this year. The recent relative weakness in dated Brent to U.S. crude prices is encouraging more imports to the United States. The product inventory increase was the smallest in several weeks as reported product demand increased compared to the week before and product imports remained quite low, eliminating most of the huge excess in products the week earlier. The entire excess in inventory over last year is outside of crude oil and the four major products, being mostly in NGLs, where production is soaring.

Japanese Crude Stocks Draw, but Finished Product Stocks Continue to Rise

Crude runs fell back and crude imports declined which drew crude stocks. Finished product stocks continued to rise. Demand impacts from the Respect for the Aged holiday, directionally came in as expected, with gasoline demand higher and gasoil demand lower, but the impacts were muted. Gasoline and gasoil stocks rose modestly, while the kerosene stock build rate came in slightly above seasonal norms. Refining margins improved slightly, but remain soft. Gasoline and fuel oil cracks improved, while middle distillate cracks were little changed.

Freight Market Outlook

A glut of crude oil in the Atlantic Basin has driven the flat price of dated Brent crude below $100 per barrel to its lowest level in over two years and shifted the market structure into contango, encouraging storage. These developments have conjured up memories of the large buildup of crude in floating storage in 2008-2009, when the unfolding financial crisis plunged the global economy into the great recession. At the peak in 2009, over 100 million barrels of crude were placed into floating offshore storage on VLCCs and Suezmax tonnage. Vessel operators are also benefitting from the lowest bunker prices since June 2012 as these have plunged along with the flat price of crude oil.

Inexpensive Naphtha to Check Further Asian LPG Price Gains

Propane contango in Asia widened $14/MT with the FEI curve catching up to consistently steeper Saudi CP structure. Reports of recently lowered Saudi crude production would lead to a corresponding drop in LPG exports. Spot large cargoes jumped 3%, being called at $857/MT for late October and 1st half November arrival. Butane followed, up $15/MT to $886. Naphtha held steady. Steepening Saudi CP structure and stronger seasonal Asian demand should support prices next week while increasingly inexpensive naphtha should limit upside in the region. European prices will trend with Asian and American markets.

Biofuel Demand is Slowing Down in the U.S., Europe and Brazil; Growing Elsewhere

Biofuels programs continue to proceed actively in many countries. Canada will need about 2.2 billon liters (580 million gallons) of ethanol this year to satisfy its 5% ethanol mandate.

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.

Alex Imperial has taken over as DNV GL Oil & Gas's regional manager for South America just as the company is creating a dedicated research unit in Brazil.

Mr. Imperial recently left Singapore, where he was Director for DNV GL's Deepwater Technology Centre, to take over DNV GL's Oil & Gas Division in South America. Experience from his last position will benefit his new role as the new dedicated Research unit means that research will be one of the DNV GL's focus areas in Brazil.

"With the vast pre-salt offshore developments ongoing and planned in Brazil, and other opportunities in South America, I'm delighted to have taken on this role in what is a very exciting time for both the region and DNV GL. We have a total of 130 local technical experts, but also draw on the deep and broad expertise of our 5,500 employees globally," says Mr Imperial.

In the company's annual industry outlook published in 2014, in which 430 senior oil and gas professionals were asked about the prospects for the near future, Brazil was ranked as the second most attractive investment destination for 2014. Yet the year has brought challenges for the industry, "We have experienced a slowdown in the industry, with rising costs, tough competition and signs of weaker performance in the Brazilian economy," he explains.

"In this environment, I believe DNV GL has a valuable role to play as an independent partner, combining deep industry expertise in challenging operating conditions with a focus on how to work smarter. This is also one of our reasons for investing 5% of our revenue in research and development - our ultimate goal is to develop solutions that enable the industry to become safer, smarter and greener. The establishment of the new Research unit is one step towards this goal and in line with the National Agency of Petroleum, Natural Gas and Biofuels (ANP) research scheme in Brazil," says Mr Imperial.

"The new unit allows us to focus on joint industry projects (JIPs) where we work closely with oil companies and suppliers to address concrete and pressing challenges by finding innovative cutting-edge solutions with a focus on deepwater operations. And, equally important, we share the results and our experience with the industry. We have many ongoing JIPs, but just to mention one - Petrobras, Repsol, and Vallourec have signed up as potential partners for our Collapse JIP. In this, we will work on a standard for pipelines in ultra-deep waters," he continues. He adds that the combination of cooperating with local partners and DNV GL's existing global network of labs and technology centres creates a truly "global execution, local delivery" R&D model.

Alex Imperial started as an intern in DNV GL 23 years ago, and has since gained extensive experience from a variety of roles in Brazil and Asia within the Maritime and Oil & Gas divisions, as both a technical expert and leader. He started his management career as a Station Manager in Macaé while also being rig coordinator for Petrobas. He has also served as the global Key Account Manager for Petrobas as well as driving business development in South America and South East Asia Pacific.

Mr. Imperial has an academic background as a Mechanical Engineer from the Universidade Gama Filho in Rio de Janeiro, supplemented by postgraduate training in Safety Engineering from Pontifícia Universidade Católica do Rio de Janeiro and Environmental Engineering from Universidade Federal do Rio de Janeiro.

PMI Energy Services, a Superior Energy Services company, has opened a shorebase in Morgan City, Louisiana, focused on supporting shelf, coastal and inland waters production and drilling activities.

PMI's shorebase is centrally located on the Louisiana coast and provides better protection from weather events than ports located directly on the Louisiana coastline. It maintains a close proximity to established fuel docks, mud docks, 29-B waste transfer stations, rental and supply companies, fabrication yards, shipyards, repurpose facilities and other industry and civil infrastructure to support offshore or inland oil and gas properties.

The 12.5 acre site with a 600 foot bulkhead dock can easily accommodate the necessary services expected for a first class shorebase facility. It includes ample acreage for material handling and temporary storage, both open and enclosed, for dry goods and sensitive equipment; secure short-term and long-term parking; marine and aviation crew changes; meeting rooms; a safety training facility; customer office space; and satellite offices for logistics coordinators.

"As the demand for resources in Louisiana's deepwater port has increased with projections for deepwater drilling activities continuing that upward trend, PMI is providing an alternative solution for operators that are experiencing inefficiencies supporting their operations," said Don Mehrtens, PMI vice president. "The lower demand on resources at our new base will create value to operators with more efficient uses of their marine assets, lower equipment and personnel transportation costs into and out of this port."

Jamie Holt, general manager of PMI's Gulf of Mexico business unit, said, "We will focus on safe material handling and minimizing marine vessel port time to lower an operator's LOE and AFE expenses. We have created a first class facility in the birthplace of the offshore oil and gas industry to provide shorebase support for production facilities, drilling programs and well work, as well as construction projects and decommissioning activities."

iSURVEY, a leading provider of survey and positioning services to the global oil and gas, offshore renewables and telecommunications markets has been awarded a two year contract with offshore vessel owner, Island Offshore Management.

The two year contract will see iSURVEY AS provide positioning services to Island Offshore as part of a call off arrangement. Operations have already commenced on the first vessel, Island's DP2 Light construction vessel, the Island Valiant.

Following current well head cutting work in the Danish sector, iSURVEY will be supporting Island Offshore for further subsea work in the North Sea.

Øivind Røegh, managing director at iSURVEY AS, said: "We are extremely pleased to have been selected as a key service partner by Island Offshore.

"This contract award underlines iSURVEY's capabilities and highlights our expertise in the subsea sector. We look forward to continuing the relationships with Island Offshore and growing our presence in subsea projects internationally."