[IslandCrow]

The view from a Finnish company:- Note the Managing Director's reference to 'economic recession' http://finland.fi/stt/showarticle.asp?intNWSAID=21541&group=Business

$this->bbcode_second_pass_quote('', 'F')innish refiner Neste Oil...........January-to-March sales fell to about 2.05 billion euros from some 3.30 billion a year ago.

"The economic recession is now clearly being reflected in lower demand for petroleum products," said in a statement Matti Lievonen, the managing director of Neste Oil.

"Oil refiners feel the impact of this clearly because the market downturn is amplified by new capacity due to come on stream this year and next year."

[TheDude]

Deepwater Oil Production Growth May Stagnate on Low Prices - Bloomberg.com

$this->bbcode_second_pass_quote('', 'L')arge Discoveries

Output in deepwater areas, or those at water depths of more than 1,000 feet (305 meters), soared in the past five years as companies discovered large deposits in Angola, Nigeria and the Gulf of Mexico, Rodgers said.

The majority of deepwater areas have reached “maturity” and current projects are facing delays, he said.

Oil and gas explorers are postponing or scrapping deepwater projects, potentially reducing crude supplies by as much as 2.4 million barrels a day in 2011, Morgan Stanley said in a report in March. Oil prices in New York have declined more than 66 percent from a record $147.27 a barrel in July last year.

Out of a sample of 46 deepwater projects in places including Brazil, Africa, Norway, Asia and the Gulf of Mexico, about 27 may have an internal rate of return of less than 15 percent, the minimum required for international oil companies to invest in deepwater developments, according to Rodgers.

Oil must reach $50 a barrel for some developments to achieve more than 15 percent in returns, he said.

No new contracts have been awarded since August 2008 when Morgan Stanley estimated that companies needed 139 new production platforms to develop fields in deep seas. Since then, 11 orders have been canceled and 46 delayed by an average 15 months, according to last month’s Morgan Stanley report.

Worldwide spending on oil and gas exploration may drop 12 percent in 2009 to $400 billion, according to a report in December by Barclays Capital Research.

[copious.abundance]

>>> Bloomberg <<<
$this->bbcode_second_pass_quote('', '[')b]Saudi Investing to Boost Oil Production, Finance Minister Says
By Camilla Hall and Bob Willis

April 27 (Bloomberg) -- Saudi Arabia, the Arab world’s largest economy, is investing to increase oil production capacity to provide for the global economy when it starts to recover from the economic crisis, the finance minister said.

“Saudi Arabia is the only country in the world that’s now investing in oil capacity and more refining capacity,” Finance Minister Ibrahim Abdel Aziz al-Assaf said at a conference in Washington today. “I’m sure that this investment will come in handy when the world economy starts recovering.”

Saudi Arabia has said that it will spend $400 billion, mostly on infrastructure projects, over the next five years to stimulate the economy and create jobs. The fiscal stimulus plan next year will consume 3.5 percent of gross domestic product.

[...]

[copious.abundance]

>>> Rigzone <<<
$this->bbcode_second_pass_quote('', '[')b]Bohai Phase II Project in China to Begin Producing in 2Q
by Isabel Ordonez
Dow Jones Newswires
Friday, April 24, 2009

Several platforms of ConocoPhillips's (COP) Bohai Phase II project in China are already operational and will start oil and gas production in "a couple of months," said a top executive.

[...]

Phase II of the project, which was scheduled to start production early 2009, includes the installation of five additional drilling and production platforms, drilling more than 200 wells and the construction of one of the world's largest floating production, storage and offloading vessels. Production of the Peng Lai project should increase to 50,000 barrels of oil per day in 2010 and 70,000 barrels of oil per day in 2011.

[...]

[TheDude]

$this->bbcode_second_pass_quote('Schmuto', 'C')onsumer = "70% of GDP". You need more than that to understand that, without the "consumer," your credit crunch will not end?

[copious.abundance]

$this->bbcode_second_pass_quote('TheDude', 'Y')eah right. Very productive if you have nothing better to do, but you'd as well just check the front page of RIGZONE.

[AirlinePilot]

$this->bbcode_second_pass_quote('OilFinder2', 'P')lus lots of people here wouldn't be caught dead checking out an industry website anyway;

[AirlinePilot]

http://www.upstreamonline.com/live/article165051.ece

"Oilfield services giant Schlumberger warned today that the credit crisis and softening global economy would dampen energy spending into next year."

[copious.abundance]

It's official: The credit crunch is easing in the oil & gas patch:

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]Is The Credit Crisis Easing In The Energy Patch?
May 01, 2009 | By Eric Fox

Several announcements from exploration and production companies regarding credit issues seem to indicate an easing of the credit crisis, removing a major concern of investors and possibly indicating that the group won't see its lows again this cycle

[...]

Bottom Line
Exploration and production companies are especially vulnerable to credit availability because of the large amount of capital expenditures the industry must reinvest into developing its oil and gas properties. Unlike the integrated oil companies, they don't have other less cyclical segments, like refining and marketing or chemicals, to fall back on for earnings when commodity prices fall. However, the credit panic in the oil patch seems to be abating as evidenced by recent announcements from several exploration and production companies. Restrictions in credit and capital have accelerated the large drop in drilling in North America during the current cycle, and it is a relief for investors to see this problem start to recede.

[AirlinePilot]

$this->bbcode_second_pass_quote('OilFinder2', '
')
Several announcements from exploration and production companies regarding credit issues seem to indicate an easing of the credit crisis, removing a major concern of investors and possibly indicating that the group won't see its lows again this cycle

[AirlinePilot]

Drilling of oil and gas wells is expected to plunge 41% in Canada in 2009


The number of new oil and gas wells to be drilled in Canada will drop by 41% to 10,000 this year as low prices and capital worries hammer the country's
oilfield service sector, an industry association forecast yesterday. Drilling activity has plunged to the lowest level since 1999 as weak commodity prices
convince oil and gas companies to husband their cash and restrain exploration budgets until higher prices return, the Petroleum Services Association of
Canada said. The new estimate is down from an earlier forecast for 2009, issued in January, when the association estimated that 13,500 wells would be drilled, itself a big drop from the 16,940 wells completed last year. "Demand is down, commodity prices are low, and access to capital is limited, which, in addition to other factors, has caused exploration and production companies to significantly pull back their spending," said Roger Soucy, PSAC's president.

http://www.nationalpost.com/todays-pape ... id=1551349

$this->bbcode_second_pass_quote('AirlinePilot', 'S')eem: To appear to one's own opinion or mind
Possibly: Of uncertain likelihood.

[copious.abundance]

>>> WSJ <<<
$this->bbcode_second_pass_quote('', 'M')AY 1, 2009, 3:41 P.M. ET
Despite Slump, Major US Oil Cos Forge Ahead With Investment

HOUSTON (Dow Jones)--The weak quarterly results of major U.S. oil companies show they are not immune to lower oil and gas prices and the economic downturn. But their decision to keep investing billions in capital projects reflects optimism about an eventual rebound in energy markets.

These companies' commitment to long-haul projects, although key to shoring up their hydrocarbons production and reserves, comes at a price: fewer perks for shareholders in terms of dividend increases and share buybacks, and an increase in debt as lower revenues result in constrained cash flows.

"We do have a strong capital program, that's where our ...

[copious.abundance]

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]CNOOC Increases Production by 15%, Completes Quarter with 7 Discoveries
Wednesday, April 29, 2009

CNOOC announced its total daily net production of 566,860 barrels of oil equivalent (BOE) for the first quarter of 2009, representing an increase of 15.0% year-on-year (YOY).

Benefiting from the production contribution of Platform B of Penglai 19-3 Phase II, Xijiang 23-1 and Wenchang oilfields, the Company's production of crude oil and liquids amounted to 468,535 barrels per day, an increase of 19.7% YOY. During the quarter, the Company's net gas production reached 563 million cubic feet per day. Our net production overseas increased by 30.9% YOY to 31,481 barrels per day, mainly attributable to production from Northwest Shelf Project in Australia and OML 130 in Nigeria.

[...]

[copious.abundance]

>>> Rigzone <<<
$this->bbcode_second_pass_quote('', '[')b]US Bank Approves $2B Line of Credit for Petrobras
Wednesday, April 29, 2009

Petrobras informs that, on April 14, 2009, Export-Import Bank of the United States (U.S. Ex-Im Bank) approved a Preliminary Commitment (PC) to Petrobras in support of the export of U.S. goods and services in connection with Petrobras new exploration and development activities, as well as upgrades and expansions of its existing facilities.

Petrobras can withdraw separate lines with different tenors in the next two years to finance the import of U.S. services and equipments, following the conditions established in the PC. The total financed amount approved in the PC is US $2 billion and the maximum repayment term is 10 years.

This approval demonstrates diverse sources of funding available to the Company to finance its Investment Plan.

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]LINN Energy Closes $1.75B Credit Facility
Tuesday, April 28, 2009

LINN Energy has entered into a new $1.75 billion secured revolving credit facility with a $1.75 billion initial borrowing base, with BNP Paribas as administrative agent; Royal Bank of Canada as syndication agent; and Barclays, Calyon, Citibank and Royal Bank of Scotland as co-documentation agents. The new facility extends the maturity more than three years, to August 1, 2012. The Company anticipates undrawn capacity of approximately $300 million for the balance of the year, including net cash on its balance sheet. The covenants of the new credit facility are substantially unchanged from the prior facility.

[...]

$this->bbcode_second_pass_quote('OilFinder2', '&')gt;>> WSJ <<<
$this->bbcode_second_pass_quote('', 'M')AY 1, 2009, 3:41 P.M. ET
Despite Slump, Major US Oil Cos Forge Ahead With Investment

HOUSTON (Dow Jones)--The weak quarterly results of major U.S. oil companies show they are not immune to lower oil and gas prices and the economic downturn. But their decision to keep investing billions in capital projects reflects optimism about an eventual rebound in energy markets.

[...]

[AirlinePilot]

$this->bbcode_second_pass_quote('OilFinder2', 'T')here is no clear line between "the credit crunch is still with us" and "the credit crunch is over." How and where would you draw the line? What would be your measure? Therefore it would be impossible to PROVE such a thing anyway (either way). I could ask you to PROVE that the credit crunch was still crippling the energy industry with INDEPENDENT analyses and blah blah blah and you would not be able to do so, because for every piece of evidence you provided I could post a countering piece of evidence.

[AirlinePilot]

Williams Cos Deems PDVSA in Default, Plans Write-Down

The announcement highlights the dire situation of the Venezuelan state oil company, which has fallen behind on payments to firms operating its drilling
platforms as revenue has plummeted on lower oil prices and declining crude exports. As of September, the latest available figures for PdVSA's finances,
the company owed about $7.9 billion to suppliers, a 39% jump from the same nine-month period the year before, but many believe the figure is now much
higher. In addition to managing the South American country's oil production, the company is in charge of various social spending programs. Declining investment in oil extraction has led to a plunge in PdVSA's production levels, analysts say.

http://www.rigzone.com/news/article.asp?a_id=75615