Don't Fall for the Hype - China's Renewables Sector is in Disarray

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In its latest ‘Five Year Plan’, China committed $290 billion to clean energy investments, with the aim of generating 20% of the country’s energy from renewable sources by 2015.
This is a huge amount of investment to pledge to renewables, in fact so much so, that President Obama used his 2012 State if the Union speech to ask the US to invest more in renewables and prevent the Chinese from growing to dominate the global market for renewable energies. “I will not cede the wind or solar or battery industry to China?…?because we refuse to make the same commitment here.”
Related Articles: China Energy Outlook: China's Energy Strategy for the Future
Due to vast investments over recent years China now boasts 6.2 gigawatts of solar energy capacity and 68.3 gigawatts of wind, beating the US, which only has 5.7 gigawatts of solar capacity and 51.6 gigawatts of wind power.
This rapid expansion has led to many problems, and whilst China’s renewable energy industry may appear to be flourishing, on closer inspection huge cracks are very evident.
The $30 billion solar industry is rotten, it is overbuilt and heavily in debt and can only exist due to heavy government support. The problem is that it is now addicted to that government support, and analysts have suggested that even with billions of dollars of new loans it will still not be able to fully stand on its own.
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Then there is the wind industry. Not so much rotten, as wasted. 25% of China’s wind farms are not connected to the power grid, so the energy they produce is not used. This has occurred as a result of poor planning which allowed wind installations to be built without the corresponding transmissions lines necessary to carry the power generated.
China Datang Corporation Renewable Power, a state-run wind energy developer, saw their profits drop 76% over the first half of 2012 due to the fact that regional energy utilities didn’t have the capacity to take all of the energy that it was producing.
By. Joao Peixe of Oilprice.com

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Germany's Renewable Energy Problems Serve as a Warning to the UK

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On the 14th of September 2012 the 3,500 wind turbines that exist around the UK managed to produce just over four gigawatts of power to the national grid; a record. The same day Germany also set its own production record, although its 23,000 turbines and millions of solar panels managed to create 31GW.

It is interesting to note that the two records were received very differently. Maria McCaffery, the CEO of RenewableUK, said that “the record high shows that wind energy is providing a reliable, secure supply of electricity to an ever-growing number of British homes and businesses;” whereas the Germans dismayed at their surge in electricity production.

 Germany has a very advanced renewable energy sector, having invested billions over several years to try and encourage as many renewable energy installations as possible. It is a path that the UK government wants to take, and therefore they must quickly heed the warnings and note the problems that Germany is already experiencing.

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The problems generally stem from the fact that solar and wind is not a steady source of energy. This means that it is very difficult to maintain a steady supply to the grid, and as a result traditional fossil fuel plants must be kept on standby, ready to produce energy whenever the wind dies too much.

Keeping a fossil fuel plant on standby in such a way is actually very inefficient, and leads to far more emissions than if the plant were just running normally all the time.

The more Germany installs renewable energy sources, the more problems it encounters. The whole plan to generate 32% of renewables by 2020 is turning out to be a disaster, and the UK really should take note so that they can try to avoid making the same mistakes as best they could.

By. Charles Kennedy of Oilprice.com

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Homeless In New Jersey

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Up here you get to a time in late November when you want winter to start. You know it’s coming. It’s dark and barren outside. The ground is frozen. Let it start. Let the snow come. Something down inside you wants to feel the sting of cold air on your face so you know that winter’s here.  The sooner it starts, the sooner it’s over. But it’s not here, yet.

It’s like the old joke about the Sadist and the Masochist.

The Masochist cries out to the Sadist . .

“Beat me . . . please beat me.”

The Sadist replies . . .

“No.”

In Alberta and on the Prairies, winter started early this year. It has already made its mark with snow and cold. But here in the east, we are getting tropical storms instead.  Around here, record high temperatures followed the hurricane.

You can prepare for winter. Change the tires, buy a new coat, make sure the utility bills are paid up.  You do the normal things to prepare for the cold. But hurricanes on the eastern seaboard in November aren’t normal.  People in New Jersey could not have expected what they got, and prepared for that.

The new normal is storm surges in Manhattan that will turn everything south of Times Square into an aquarium. The new normal is barrier islands that took thousands of years to build up being ripped apart in one day.

There is no way to prove that Hurricane Sandy was the direct result of global warming caused by greenhouse gases. There are only statistics. The sea level around New York is now a foot higher than it was 50 years ago. If the rate of ice melting in Greenland and Antarctica increases, sea levels will rise further and coastal cities around the world will face the possibility of becoming Venice. And Venice could become Atlantis.

It’s easy to dismiss global warming, if it doesn’t affect you directly.  But a couple of days prior to the election, Mayor Michael Bloomberg of New York City took some time away from hurricane repair duties to endorse Barak Obama for President. It appeared that his decision to endorse was precipitated by Sandy and Irene. In his estimation it was a bit too much of a coincidence to have two late autumn hurricanes in the Northeast in consecutive years. Bloomberg stated that to deny that climate change was a serious problem was to be “on the wrong side of history.”

He felt that Mitt Romney was missing the boat on climate change.

Mayor Bloomberg isn’t the only one who sees climate change as a personal threat. Farmers watching their crops wither in the draught this past summer are worried about it. Another year or two of screwed up weather and farmers around the US and Canada will be demanding that something be done.  It doesn’t matter what their politics are.

The families of firefighters who were killed fighting the record number of forest fires last summer are no doubt still grieving. They understand too well that extreme heat is dangerous.

And now they are hurting in New Jersey. The fury of Mother Nature brings everyone back to basics. The dispossessed need food and shelter. Everything else is secondary. All other problems pale in comparison.

Later there will be the clean-up and the rebuilding. The cost of Sandy will be enormous in money and in grief. The storm affected millions of people. At some point the insurance companies will begin to demand that something be done.

Winter will get here soon enough. We’ll have too cold weather, too much snow and ice and whiteouts. We’ll make jokes about global warming when it’s freaking cold outside. We know how to prepare for that kind of bad weather. We’re used to it.

But what’s happening these days in the atmosphere isn’t the old normal.  And we are just one or two more freak-out weather events away from many more people in North America, no matter what their politics are, coming to the same conclusion.

When the majority fully realize that the cost of not doing anything to curtail global warming will be so much more expensive than the cost of wholehearted adoption of renewable energy– then something will get done.

Follow the money.

By. Dave Zgodzinski

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How Big a Role Will Shale Gas Play in America’s Energy Future?

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Some people herald it as the start of a new dawn, and others condemn it as a potential environmental disaster.

I am talking of course about shale gas and shale oil, produced by hydraulic fracturing — known by its shorthand as “fracking.” With every new technology there are winners and losers, benefits and costs.

But hydrocarbons from shale deposits are shaping up to cause as big a stir in the energy markets as nuclear power did back in the seventies. Maybe more so, as oil and gas are consumed across a wider range of applications than just the electricity produced by nuclear.

This isn’t the place to delve into the environmental implications — there are dozens of sources that lay out their stall in rightly protecting the environment — but it should be said that the biggest threat to the future of shale resources will be environmental.

If widespread contamination of ground water, for example, began to be linked to fracking, the industry could yet be stopped in its tracks. So far (although there have undoubtedly been instances), cases of contamination have been sufficiently isolated that the industry still has full government approval, fueled by excitement of what the future could hold.

As the NY Times writes, an International Energy Agency (IEA) report this week leads with the headline grabber, “The United States will overtake Saudi Arabia as the world’s leading oil producer by about 2017 and will become a net oil exporter by 2030.”

Even this may be too pessimistic a prediction — the Telegraph newspaper states that total US liquid production is set to hit 11.4 million barrels per day (bpd) next year, close to Saudi Arabia’s current 11.6 million. Saudi production is itself running at a record level to depress world prices in an Iran-sensitive market; if not for that, Saudi production would be barely more than 10 million bpd.

Shale gas may have been eclipsed by shale oil in the affections of the exploration companies, but already US natural gas resources are put at over 1,300 trillion cubic feet — the bulk of which is shale gas — edging ahead of Russia’s near-1,200 trillion cubic feet of gas.

The arrival of US shale oil (and, it must be said, Canadian supplies of unconventional oil), have depressed US oil prices relative to the rest of the world, pushing the West Texas Intermediate benchmark to a discount of a fifth to Brent, the international benchmark. As a result, big chunks of the US are getting oil on the cheap, improving US competitiveness relative to the rest of the world.

Low natural gas and oil prices will be a boost for US industry and the International Energy Agency (IEA) estimates that electricity prices will be about 50 percent cheaper in the United States than in Europe, largely because of a rise in the number of power plants fueled by cheap natural gas.

The IEA estimates the point at which the US will become self-sufficient in oil production to be 2030, when it could become a net oil exporter. However, long before that, exports could become the norm from some parts of the continent, while imports remain in others — the effect there will be to limit the downside to US oil prices relative to the rest of the world.

But what about the wider geopolitical ramifications?

There will be winners and losers all around as shale oil and gas supply increases. As the US becomes less dependent on the Middle East, will it continue to take such a close strategic interest in developments there?

The IEA predicted that global energy demand would grow between 35 and 46 percent from 2010 to 2035. Most of that growth will come from China, India and the Middle East, where the consuming classes are growing rapidly.

Oil cargoes currently flowing to the US will instead go to Asia, making the region’s political developments increasingly crucial to China and the rest. Subject to securing the massive investment needed, Iraq has the ability to become the second-largest exporter of oil after Russia, but will that be Western investment or Asian?

Nor will shale gas be the savior of greenhouse gas emissions, supporters of gas-fired power generation claim. As we have seen, US coal — if not consumed in the US — is exported to India and China and simply consumed there.

Meanwhile, production in some parts of the world, once seemingly secure and solid, are beginning to look less so.

An FT article details how Russia’s Gazprom has just commissioned the massive Bovanenkovo gas field far above the Arctic Circle. The field is said to contain enough gas to supply Europe’s needs for decades to come, yet questions are already being asked about its viability as the spot gas price falls.

Mikhail Korchemkin, an independent commentator on the gas industry, is quoted as saying in this FT article Gazprom needs to export gas at a price of about $14 per 1 million Btu (MMBtu) by 2020 to afford the investments in its pipelines.

But the current average spot price in Europe is already about $10 per MMBtu, while sales in the US are even cheaper at $3.50 per MMBtu.

“They would reach a point of no return,” Korchemkin says. “Gazprom could reach a time when it’s permanently in the red,” potentially leading to a break-up of the firm. Unthinkable a couple of years ago, but now openly discussed as a result of the impact of shale gas.

What about closer to home? Will shale oil and gas result in a bonanza for US manufacturing and free up consumers to spend more on the back of cheap energy prices?

For a time, yes. The infrastructure to export shale gas as liquefied natural gas (LNG) is almost non-existent at the moment, but several projects are in the pipeline, and as exports rise the domestic price will become closer to the world price. In addition, as more gas-fired power stations are built, demand will rise and with it domestic shale gas prices.

Nevertheless US prices are likely to remain at a discount to world prices for many years to come. The US will win in another way; the country operates a current account deficit with the rest of the world in large part because of oil imports.

As oil imports have fallen this year, so has the deficit — imports up to August were the lowest since 1998, in part due to lower oil imports. On the flip side, a stronger current account means a stronger dollar, according to James Mackintosh on the FT’s Short View, which would not help US exporters of manufactured goods.

So on balance, shale oil and gas have much to offer the US.

It will probably usher in a prolonged period of energy supply independence — if not price independence.

It will reduce the demands made on the country’s military to police areas of the world it would probably rather not police.

It will provide, at least for a number of crucial years crawling out of the current crisis, access to cheaper energy relative to the rest of the world, which will benefit manufacturers and consumers.

And it will continue to provide a source of employment — so far estimated at 1.75 million — that is sorely needed in an economy that is not producing anywhere near enough new jobs for its rising population.

By. Stuart Burns

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How Will Oil Production Impact the Economy Over the Coming Decade

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A paper published recently by the IMF gives us some insight into how oil prices and availability might affect the global economy in the next decade. The paper, entitled Oil and the World Economy: Some Possible Futures, starts with the statistic that global oil production grew by 1.8 percent annually from 1981 to 2005, then stagnated with production remaining essentially flat thereafter. In the last seven years what is called global “growth” in “oil” production has come largely from substitutes for crude such as natural gas liquids, tar sands, and biofuels. While these substitutes do have important uses, they do not have the versatility of conventional oil and in the long run, falling supplies of normal crude can and probably are acting as a brake on economic growth.

There are other, non-liquid, substitutes for oil such as coal, natural gas and even nuclear power, but to implement these as a major source of transportation energy would be a long, expensive and in some cases an impossible task. Airplanes won’t run on coal very well without a lot of expensive preprocessing.

Global oil production has been on a plateau, at historically high prices, for so long now that it seems unlikely that it will ever resume sustained growth at the rates we saw in the decades prior to 2005. The only possible outcomes are prolonged stagnation, which some like to call the “bumpy plateau”, or decline of global production. The rate of decline, of course, will be critical to the future of the global economy and is the core of the IMF’s paper.

With the world producing and burning some 31 billion barrels of oil, or some combustible liquid we call “oil,” each year, and at a relatively cheap average price to boot, our stagnant plateau is unlikely to continue much longer. Most people who are willing to hazard informed guesses as to when global oil production will start down are saying that the decline will begin somewhere between 2015 and 2020.

There has been considerable discussion in the mainstream media recently about the growing supply of “shale” oil from North Dakota and Texas, more properly termed “tight oil,” which it is claimed will soon make America the world’s biggest oil producer – free from the tyranny of imported oil. Anyone digging into this issue will find that “tight” oil will turn out to be another bubble. Tight oil wells cost several times more to drill and frack in comparison with conventional land or shallow water wells and have an average annual depletion rate on the order of 40 percent a year in comparison with 4 or 5 percent for conventional wells.

In recent months, however, thanks to an all out drilling effort, the oil coming out of the fracked fields in North Dakota and Texas has been on the order of 950,000 b/d and has been increasing at the rate of about 350,000 barrels a day (b/d) each year. This has pushed up U.S. domestic oil production to the highest level in nearly 30 years – no wonder the press is bursting with optimism for America’s future.

The true story, however, is not as good as it seems. North Dakota currently has some 4,500 producing wells pumping out an average of only 144 barrels a day per well. A good conventional well will produce 3-5,000 b/d and those big deep water platforms are designed to produce 100-200,000 b/d from multiple well holes. To produce the 8 million additional b/d that the U.S. would need to obtain “energy independence” it would take 60,000 wells pumping out 144 b/d. These and the 6,000 or so fracked wells we already have would have to be redrilled every 3 or 4 years to maintain production. This is clearly impossible as the best prospects have already been drilled and from here on we are likely to see less productive tight (fracked) oil wells.

If the price of crude in the mid-west, currently about $85 a barrel, drops another $10 or so a barrel it will be selling for less that the marginal cost of production if it isn’t already in some cases. When the value of the produced oil gets too low, the sinking of new wells will decline rapidly as it has for shale gas drilling. A good estimate would be that the “shale oil bubble,” while adding to America’s current production, only has another year or two before it begins to fizzle.

Global oil demand has been growing at the rate of circa 800,000 to a million barrels a day in recent years all though some foresee this rate of increase declining. This is the underlying reason why would oil prices are staying high.

The IMF’s first scenario has global oil production dropping by only 1 percent a year when the decline comes. Should this occur, the IMF’s model predicts that oil prices will jump by 60 percent. As supplies continue to decline each year at this rate, the real oil price would continue to climb until demand destruction caused by unaffordable oil brings supply and demand back into balance.

Another scenario considers what might happen if the decline in world oil production increases to 3.8 percent which is about the rate that existing oil fields are depleting. In this situation, the impact is roughly four times as bad as with a 1 percent annual decline. Annual growth rates in the industrial countries would decline by one full percentage point. Oil prices would have to rise by 200 percent to bring about the demand destruction required to rebalance the oil markets.

Many of us have always thought of Peak Oil as being the point in time when global oil production began its inexorable decline to lower levels, bringing on all sorts of economic turmoil. The lesson of the last five years, however, seems to be that we can have deep and perhaps insoluble economic problems merely by the inability to grow production at satisfactory rates. The next five years should prove whether this concept is correct.

By. Tom Whipple

Source: Post Carbon

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New Study Shows that Global Warming Stopped 16 Years Ago

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Figures that have recently been released by Hadcrut 4, the collaboration between the Met Office’s Hadley Research Centre and the Climatic Research Unit, describing the changes in global temperature. The results are astounding, and sure to put a spanner in the wold climate debate as reported by The Daily Mail: Global warming stopped around 16 years ago.

BP Falls Out with Azerbaijan as Baku Gambles on Future

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That Azeri President Ilham Aliyev is so ferociously lashing out at British Petroleum (BP) for declining output in Azerbaijan’s largest oilfield has very little to do with BP and everything to do with Baku’s ambitions to raise the stakes as it seeks the top spot on the Caspian oil and gas chain.

Aliyev is simply setting the stage for changes in the regulations governing Azerbaijan’s oil and gas resources. From where I’m sitting, BP can’t afford to play this game and may be pushed out to make room for other oil majors.

Earlier this week, Aliyev took his show on the road personally—which is significant in itself. Speaking on public TV, the Azeri president has attacked the BP-led consortium for failing to meet its projected production targets in the Azeri-Chirag-Guneshli (ACG) field, referring to the situation as “totally unacceptable”.

The simple math is this: In 2010, ACG reached production of 823,000 bpd. Production at ACG declined 12% in the first half of 2012, to 684,000 bpd.  BP, which operates the field and holds a 35.8% stake in the consortium, had promised that ACG would produce more than 1 million bpd after its third phase was completed in 2008.

Related Article: Smash the Rally in Oil

According to Aliyev’s math, this BP failure has cost Baku $8.1 billion in revenues.

When BP initially made its 1 million bpd promise, it was to great fanfare and much uncorking of the champagne in Western diplomatic circles whose eyes glossed over at the prospect of access to so much non-OPEC crude oil.

But no sooner had the fizz gone out of the champagne that everyone realized that these predictions were a bit on the over-optimistic side. Azerbaijan’s reserves are limited, and from the start it was clear that production would experience a sharp increase and then a sharp decline. In fact, for 2012, Azerbaijan’s whole oil sector combined was only projected to produce just under 1 million bpd by the end of this year.  

Aliyev knew this. His very public attack on BP is intended to send a message that requires some reading between the lines.

"It is absolutely unacceptable … investors who cannot stick to their obligations and contract terms must learn lessons. Serious measures must and will be taken," Aliyev said.

Related Article: Yet Another Attack on Turkish Pipelines

The message is that contracts are about to re-negotiated and BP is being used as a guinea pig for a re-mapping of Azerbaijan’s energy players. We are not just talking about oil here, but gas, and BP is also knee-deep in Azeri gas via the Shah Dengiz II field. Baku isn’t convinced that BP is the best choice for reaching the full potential of Shah Dengiz II. So look for a “reorganization” of this as well. 

Can BP pull itself up out of the Azerbaijani mire? Right now, it’s looking very promising. The company is already spending some $2 billion just to maintain its currently unacceptable production levels, and if it has any chances of ramping up production to appease Baku and make good on an impossible promise, it will have to invest billions more. Unfortunately, investment on this level will not pay out, especially since BP only has a contract until 2024.

At the same time, Baku is making it clear that the contract will not be extended beyond 2024. And BP will be lucky if it isn’t pushed out before then.

Certainly, it’s a bad time for BP, which is battling on multiple front lines. Company shares have dropped around 5% this year, even after plunging about 25% over the Macondo disaster of 2010.   

By. Jen Alic of Oilprice.com

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Will Ending Tax Breaks for Big Oil Make a Difference?

Facing public resentment, Big Oil tax breaks may soon end.

The controversial bill proposed by the Democrats to end the substantial tax breaks extended to the major oil companies known as 'Big Oil' did not make it. Big Oil commonly refers to the five industry giants - Exxon, Shell, BP America, Chevron, and ConocoPhilips. It is estimated that these companies have garnered profits of about $900 billion in the past decade alone! The rise in prices of gas and crude oil has fetched them over $30 billion in the first quarter of this year. Despite this, over the years, the federal government has been providing them with various types of subsidies through tax codes.

Since direct grants would put the focus on the government's preferential treatment of Big Oil, they extend benefits in the form of deductions, credits or exemptions; in short, tax breaks. Now, the Democrats have come up with a proposal which suggests doing away with some of these tax loopholes for the oil companies. Known as the 'Close Big Oil Tax Loopholes Act', Democrats claim that this will help rake in up to $21 billion over a period of ten years and thus, help bring down the budget deficit.

There are suggestions that the savings will be better utilized if diverted to promotion of clean energy programs. Solar and wind are the energy options of the future and developing these is likely to be high on the priority list of the federal government for quite some time to come. Though stopping these tax benefits has been on President Obama's agenda for long, it has taken him three years to propose any action on the matter. His detractors see this as a ploy to curry favor ahead of an election year.

With gas prices touching $4 per gallon this summer, the move to eliminate tax breaks is being seen more as political rhetoric than anything else by analysts. In reality this move will not impact much on the federal deficit or even the prices at the pump. At best this move may somehwat appease consumers (as well as earn votes) and only serve as a kind of vengeful retribution and will not actually translate into any benefits for the government or public. It will also have a negligible adverse impact on profits for the oil companies.

The public views Big Oil with resentment mainly because of the clout they wield and the money that they rake in. The common man sees the price of gasoline at the pump and an increase of even 10 cents produces outrage against these oil conglomerates. Hence, any kind of action that hints at reduction of benefits to Big Oil is welcomed and appeals to the emotions of the layman.

Though the figures and analysts say otherwise, the honchos of Big Oil did not hesitate to term the proposal detrimental to the American economy, when they appeared at the Senate hearing. They claimed that doing away with the tax breaks will lead to job cuts and investors' exit from oil. This is in contradiction to earlier claims by Big Oil saying that they do not need incentives or subsidiaries from the government for oil exploration purposes. Also, Big Oil executives claimed that it was unfair to target them alone while many other industries are also sharing these tax breaks. They also urged the administration to encourage drilling if it really wanted to keep gas prices in the country down.

The PR departments of Big Oil have also been successful in propagating the myth that ending subsidies for them will lead to significant increase in taxes for the rest of the population.

Republicans are protesting against the move and claim that the measures will have no impact on existing gas prices. The matter will be voted on later this week and it seems highly unlikely that the Democrats will win the vote in the Senate and the House of Representatives.

At least two earlier attempts to scale down on tax breaks for oil companies have failed in the Senate. Even if they don't win, Republicans sure will have gained sufficient political mileage from it which will stand them in good stead in the elections next year. In an attempt to garner support for their proposal, the Democrats have embarked on an online campaign. They are planning to use grassroots-level activists to target Republican senators on their support for Big Oil.

The Republicans have also come up with a bill 'Offshore Production and Safety Act of 2011' which favors American exploration and offshore drilling ventures. This addresses matters such as lease sales in the Gulf of Mexico and in Virginia as well as setting of a timeline for reviewing pending offshore applications.

Big Oil executives have been found to be using the profits to boost their personal wealth and enriching their shareholders. Reports say that the profits have been used by executives to increase their stock holdings and to pay out generous dividends over the past five years.

Opponents of Big Oil and supporters of energy independence claim that even if the tax breaks are stopped, this will not resolve the bigger issue of price manipulation. They suggest that Wall Street oil speculators be controlled and prevented from raising the prices of oil artificially. It has also been recommended that OPEC members be stopped from manipulating prices, and tax incentives for foreign oil be stopped.

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Will Oil Prices Decide the US Elections?

Oil prices are linked closely to presidential disapproval and so will decide the presidential elections' outcome

Before jumping into the question, a recap:
In a previous article titled "Is Oil Fueling the Rise in Political Partisanship", Oil-price.net went on a search to see if rising oil prices had any influence on the behavior of American voters in the period between December 1999 and July 2010. We asked: could discontent sparked by an uptick in volatility in oil prices be one reason why American politics of late seems to have gotten so much nastier? We delved into three polls: Presidential approval ratings, the Congressional approval ratings and direct questions to the voters on whether the country was in the "right track" or the "wrong track". What we found, to state the obvious, wasn't very surprising. What was surprising, in fact, was the degree of shifts in the approval rating of the President vis-a-vis oil prices-inversely proportional. As for the question of "Congressional approval" and "Direction of the country", they showed even more impact to the volatile oil prices.

Thus, between 1999 and 2010, oil and politics moved from being indifferent partners to having a burly relationship. Oh, yes, Obama was elected on the back of all-time high oil price volatility from the late Bush era (oil went up to $160 then back down). Even otherwise, you don't need loads of grey cells to make a correlation between high oil prices and slide in the approval ratings of the decision maker. Oil and politics-think of the wars and bloodshed-is welded marriage.

So back to the present scenario. How exactly are we faring? After all, we are bang in the middle of the Presidential campaign. There is no denying the fact that oil prices are higher. As a result, it is nearly impossible to defend against it for a politician, and Republicans are milking it. As it turns out, they are already at it.

Take the captious Romney for instance. He has taken Obama to task for the increase in oil prices, calling for the resignation of, what he has drubbed as, 'gas hike trio'. The trio, Energy secretary Steven Chu, Interior secretary Ken Salazar and Environmental Protection agency Administrator Lisa Jackson are directly responsible for the increase in oil prices, he alleges. Mitt Romney has also accused the President of slowing the domestic energy production. Indeed, Romey wants more land allotted for drilling and less stringent regulation for hydraulic fracturing.

For his part, Newt Gingrich has promised gas for $2.5 a gallon. Both the candidates want more drilling in search of oil-even on pristine forest floors, while the President maintains that rising oil prices have more to do with global market indicators. And, Rick Santorum, rather unsurprisingly, has also blamed Obama for blocking energy production in the US. He also feels high oil prices led to the economic downturn in 2008.

Of course, all Americans, differing only in degrees, feel indignant about the spiralling gas prices. One only has to browse the online forums to see the palpable anger. From accusation of "Obama's wars" to 'Big oil' and 'Big money', Americans have different ideas on the root cause of the price increase. Yes, oil under Obama has had rough days: First the BP disaster which tarnished not just BP, remember? Then subsidies going to solar, away from big oil's pockets; controversy about fracking and water pollution; opposition to ANWR oil drilling. Questions have also been raised on the Keystone XL oil pipeline from Canada's tar sands. Promoted by TransCanada, the pipeline would carry oil from Canada's tar sands to the Gulf of Mexico. This pipeline needs Presidential approval as it passes the international border. Earlier this year, the President rejected the bill, though TransCanada is looking at alternate routes that do not require the state's approval. Romney has questioned promoting alternative energy- like giving a loan of $500 million to Solyndra, the solar panel manufacturer-calling the keystone decision 'bad policy'- Fact: The loan to the solar panel manufacturer was in 2009, while the key stone permit is of recent times. According to the Gallup's annual Environmental survey, 57% are in favour of the pipeline, as opposed to 29% who have other views, while the other 14% was undecided. So, there it goes.

Meanwhile the President says: "Do you think the President of the United States, going into re-election, wants higher gas prices?". Spruced by almost 17% increase in the price, so far, as reported by the AAA, gas prices are an easy way to target the incumbent President.

What's the ground situation, anyway? According to the Gallup's Annual Environmental survey, 56% of Americans believe that the President is doing a good job with regards the environment. However, only 42% had the same optimism about his handling the national energy policy. (In 2004, George W. Bush's were much lower- 41% believed that he was doing a good job of 'making America prosperous as well as protecting the environment', while for his energy policy he clocked a mere 34% support).
White House Press Secretary Jay Carney stated, "if increasing drilling were the answer in the United States to lowering prices at the pump, we would be seeing lower prices at the pump, because under President Obama we have increased significantly domestic oil and gas production. That is a fact."

Yes, there is speculation in commodity markets that nudge oil prices higher for no apparent reason. Speculations are so. But Wall Street sharks are only a small reason for the increase in the price of oil.
Increasing demand- according to the latest report from the International Energy Agency, global oil demand is forecast to climb to 89.9 mb/d in 2012, a gain of 0.8 mb/d (or 0.9%) on 2011. Demand is increasing in Asia, in particular in China. Volatile situation in oil producing countries could also lead to increased oil prices- Sudan, Iran, Libya, anyone? This February, global oil supply fell by 200,000 barrels a day, as reported by IEA. And, it's basic Economics, if supply doesn't match demand, even on the basis of imaginary fears, oil prices will move on. Blame the oil driven economy, as well.
And, to be honest here, the oil companies do make more profit than they ought to. Then again, they do need the money to invest in exploration. Wait. If not, one day, oil is going to dry up. And, whoever wants that to happen, please step forward? Further, let's not forget that these companies employ a whole lot of people with generous salaries.

To sum up, the next President will be decided on the basis of oil prices. During his term he will have to contend with increasing oil prices and worsening geopolitical volatility. His 4-year term will be too short to implement any long-term policy likely to affect either. He will also be blamed by the opposition for high oil prices like the current President and the one before him.

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Oil and Refineries

Lack of US refining capacity is partly to blame when gasoline prices spike.

The debate is raging in full swing: the dearth of new refineries in the US. Many are surprised to see the continued increase in oil prices despite the surge in domestic oil production. Could refineries be the missing element in the equation, they wonder. 'Why not just build new refineries and scale down the price of oil,' our readers continue to ask us. Yes, it's a fact- no new refinery has been built in the US in the past three decades. The last refinery constructed in the US at Garyville, Louisiana was way back in 1976. So, the question is reiterated as the point is so obvious: new refineries. But then, there aren't any easy three reasons, nor is the dimension only four.

First though, let's take a look at the prevailing price of oil. According to a AAA fuel gauge report, the national average for a gallon of gasoline is $3.62 - more than 13 cents from the previous week and 24 cents more than a month ago. After the fall in May and June, gasoline prices have increased gradually for the last seven weeks, adding pain to the already pained consumer. Is this because of dwindling oil reserves? Well, of late domestic oil production has increased by fourteen percent in the last 12 months. According to government sources, the oil production in the country hit the highest 'quarterly level' in almost a decade (for the first three months of this year). And, US produces 55 percent of the oil consumed in the country, mainly due to production spikes in Texas and North Dakota.

Clearly there is oil, so shouldn't the oil price decrease? After all, the more the commodity, often, lesser is the prices. Put it that way, the present oil prices do sound ominous. It's not as if higher demand has hiked the oil prices. On the contrary, demand for oil has been decreasing with fuel efficient cars and ethanol blended gasoline. This July, crude oil demand in the U.S. dipped to its lowest in four years on the back of average economic growth in the country, according to the American Petroleum Institute. The demand for gasoline fell 3.8 percent this July with consumption down 1.1 percent. After the peak in 2007, demand for gasoline has been sluggish. That is, despite increase in the price of crude, demand for gasoline is at record low. So, the speculation does gain force - are lack of refineries hampering the fall in the price of oil? North Dakota produces more than 600,000 barrel/month but has only one refinery in Mandan. An element of bafflement does linger to see the country producing substantial oil and yet importing refined products.

There is colossal gap in the realm of production and refining capacity in the country. The refineries are churning at full capacity which makes them profitable, but on the downside there is no room for mistake. They have to deal with variable demand on one hand and higher costs of inputs on the other. Recently, Sunoco Inc. announced closure of its largest refinery leading to fears of fuel shortage and higher oil prices in the US. Fortunately, a deal with the Carlyle Group saved the day for Sunoco Inc. and the oil industry. But, the problems in the refining sector are far from over. Two refineries owned by Sunoco Inc. did close in the last eight months, which means a loss of nearly half the gasoline and other refined products in the East coast.

True, new technologies have increased the domestic oil production. For once, though, the infrastructure in the US has failed to catch up with the surging domestic oil production. Barges, rails and trucks, believe it or not, still transport crude. Naturally, the oil barely reaches the refineries and this mode of transport also makes oil more expensive for the consumer. How about pipelines? We know that imported oil is expensive. Still, the Marcus Hook refinery continued to import oil at $114 a barrel in 2011, even when the West Texas Intermediate crude traded lower. Why? Lack of pipelines, again. And with this paucity in pipelines, crude produced in the country isn't reaching the refineries. Of course, the much hyped Keystone XL pipeline would connect Canada's oil with refineries in the Gulf of Mexico and Houston, but that may take years.

Staying with refineries, the need for pipelines is more pronounced in the Gulf coast. The refineries in the Gulf coast contribute about 45 percent of the refining capacity, and 30 percent total crude oil production in the US. Of late, the imports have declined in the Gulf coast, thanks to drilling in the Eagle Ford Shale in Texas and Bakken shale in ND. Unsurprisingly, import of the more expensive light sweet Nigerian crude stood at 150,000 b/d in January, the lowest since 1996. (For the corresponding period, there's decline in the import of Nigerian crude to the East coast too.) Yet, imagine the figure with more pipelines in the region. Yes, the crude from Eagle Ford from Texas has started to arrive in the Gulf coast. However, the crude is sweet light. Most of the refineries in the Gulf Coast are more sophisticated, designed to process heavy and more sour crude. As investment to refine the lighter sweet crude is expensive, the only option for the refineries is to blend the different crudes. The irony.

Meanwhile, woes of the refineries in the East coast continue. Two have already closed, and the rest of them are barely managing to scrap through. These refineries are dependent on imported crude as they don't have easier access to cheaper West Texas Intermediate crude. Hence, they continue to import the expensive Brent crude. There are plans to transport oil from North Dakota to the East coast by rail, but when?

Although a continuation of the import story, the scene is slightly different in the Midwest. The refineries here are enjoying higher profits, credit to generous supplies from Canada and domestic oil. Imports from Canada reached 1.76 million barrels a day in the first quarter of 2012, an increase of almost 22 percent from last year (Source: EIA). Unsurprisingly, Canada is the largest supplier of crude to the US followed by Saudi Arabia.

Recently the Port Arthur refinery underwent expansion to almost double its daily capacity. So, why do refineries expand rather than build new ones? It's easier because of the environmental regulations. The apparent lack of logic in not having refineries does get answered when you take the environment under consideration. Refineries gobble up water, not to mention vast tracts of land, and contribute loads of CO2 to the air, as well. So, environmental regulation tends to be hard for anyone interested in refineries. The EPA regulations are also strict on the sulfur content Light crude is easier to process, has lower sulfur content so it's easier to get the environmental nod. Heavy sour crude, on the other side, has more sulfur and is more difficult to process. Sunoco Inc. is said to have lost $ 1 billion in the last three years, attempting to upgrade in accordance with the stricter EPA regulation.

Will the picture change? Everyone wants refineries, just is someone else's backyard. The new EPA regulation for new refineries scheduled to be released this November has been deferred because of the Presidential elections. How is it going to pan out? Mitt Romney is all for more drilling. He wants to drill "virtually every part of U.S. lands and waters" but is silent on his take on refineries. For his part, Obama is for 'energy independence' but with his strict environmental laws, no refinery is going to come up anytime soon. The situation is precarious. The demand isn't expected to rise anytime soon. EIA has lowered the forecast of oil consumption in 2012 and 2013.

Any destruction due to accidents (like the recent fires), weather conditions, and maintenance would affect the supply with immediate effect. For instance, the recent fire in the Chevron refinery at Richmond, California disrupted almost 16% of the supply in the region. Abundant reserves, yet prone to import fluctuations- which country would want to continue in this position?

If the refineries aren't taken care of, the dream of cheaper crude would continue to be a dream. That would be sad with the present domestic resources.

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Niger, Nigeria and the oil price rise

 While gunfire errupted in Niger's capital, traders who mistook the country for oil-rich Nigeria sent oil prices soaring

What's in a name? Niger or Nigeria will be in a better position to answer this question. If not anything the confusion in the name pushed oil prices to $80 a barrel last week. How? There was a coup in Niger and traders hustled to buy oil, mistaking Niger for oil rich Nigeria.

On February 18, a coup took place in the West African country, Niger. Armed soldiers stormed the presidential palace in Niamey, the capital of the country and kidnapped the President of the country Mamadou Tandja. The coup was orchestrated by a soldier named Colonel Adamou Haroun. He was aided by another Colonel Djibril Hamidou. This is the third coup in the country since the 90's.

In dramatic style, the soldiers declared on TV, the suspension of the constitution and all the institutes associated with it. Colonel Goukoye Abdul Karimou, read a statement on behalf of a group called Supreme Council for the Restoration of Democracy (CSRD). In the statement he appealed to everyone to have faith in the group's ideas which "could turn Niger into an example of democracy and of good governance".

The coup wasn't entirely unexpected. President Tandja came to power after the election in 1999. He was supposed to step down on Dec 22. However, he chose instead to change the country's constitution last year to stay on. The move enabled him to stand for a third time in office, and with more powers without election.

The fifteen nation West African regional bloc, ECOWAS (Economic Community of West African States) reacted by suspending Niger. The US terminated non-humanitarian aids and cut off trade benefits. The US state department spokesman Philip Crowley said "President Tandja has been trying to extend his mandate in office. And obviously, that may well have been, you know, an act on his behalf that precipitated this act today". African Union chief Jean Ping condemned the military coup in Niger and said he was following developments "with concern".

The reaction from Nigeria, coincidence or not, does take pains to differentiate between the countries. According to a statement by Senior Special Assistant to the Acting President on Media and Publicity, Mr Ima Niboro, the acting President of Nigeria Dr. Goodluck Ebele Jonathan has expressed deep concern over reports of shooting in Niger's capital.

Meanwhile, Colonel Djibrilla Hima one of the leaders of the coup said that their group would hold election too. The plan, he said, is to hold elections once the situation has stabilized.

Niger has in recent years attracted billions of dollars as investment in oil. Exploration in Niger began in the 1950s. Drilling was done in the 60's by Petropar in Tamesna-Talak and Djado blocks. But the two main blocks that emerged were Djado Basin and the Agadem BasinIn the year 1992, the Djado permit was given to Hunt oil. In 1997 the Tenere permit was given to TG World Energy Inc.In 2004 the Niger government approved the joint venture arrangement between CNPC International Tenere Limited (CNPCIT) and TG World Petroleum Limited (subsidiary of TG World).In 2005, Petronas Carigali Niger Exploration & Production Ltd. (PCNEPL), announced that it had found hydrocarbons in the Agadem BlockEsso and Petronas had sole rights to the Agadem block. But in 2008, the rights were transferred to CNPC for USD$5 Billion investment. The oil reserves in the block are estimated at 325 million barrels. The company is also building a 20,000-barrel-per-day refinery in Zinder.Other oil companies in the region are Shell, ExxonMobil and Chevron

Thus, though Niger isn't a major player in the oil business, the markets reached on hearing news of the coup. Tom Bentz, analyst at BNP Paribas Commodities said, "Markets took off at around the same time a Reuters story came out about gunfire erupting in the Niger capital in an apparent coup bid, mistaken by many as being Nigeria".

To be fair, other factors too contributed for the increase in oil prices-tension of Iran's nuclear program, weaker dollar and the report of EIA on heating oil supply falling by 1.4 million barrels. However, among the factors, the name confusion was the most important reason for the immediate oil price rise.

Yet, the fact remains that Niger is yet to produce oil for the world market.

Nigeria, Benin, Burkino Faso,
Mali, Algeria, Libya and ChadFrench. The country
got independence from France in 1960more than 8 percent of world's Uranium.

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US shale oil deposits: Two trillion barrels of crude oil

This may sound like a fiction story but it is true! While total world resources of oil shale are conservatively estimated at 2.6 trillion barrels, US sits on close to two trillion barrels of crude. Possibly more than all the crude than was ever produced worldwide since petroleum age began.

The Green River Shale Formation encompassing the States of Colorado, Utah and Wyoming was first discovered in 1924. This famous shale formation covers tens of thousands of square miles. It is found in three different ancient lake basins. The layers of sediment in this formation stretch undisturbed for many miles.

This shale is a soft sedimentary rock that readily fractures into layers, composed of minute particles of clay, which may easily be removed. It was formed from multi layers through erosion. There are 40 million layers in one part of this formation. Deposits within these layers are fossilized plant, animal life and algae, which has turned over millions of years into kerogen. Some claims have been made that this was formed from the Great Flood of Biblical times. Geologists say that this formation was formed through countless floods perhaps through 500 to 700 millions of years.

There are two conventional approaches to oil shale processing. In one, the shale is fractured and heated to obtain gases and liquids by wells. The second is by mining, transporting, and heating the shale to about 450oC, adding hydrogen to the resulting product, and disposing of and stabilizing the waste. Both processes use considerable water. The total energy and water requirements together with environmental and monetary costs have so far made production uneconomic. During the oil crisis of the 1970's, major oil companies spent several billion dollars in various unsuccessful attempts to commercially extract shale oil.

After initial attempts proved to be too expensive and were shelved some ten years ago, a host of energy companies are revisiting technologies to successfully extract kerogen from shale and economically turn it into crude oil. Participating giant Shell Oil representative, Terry O'Cannon states, "We try to keep them from speculating too much and keep expectations low because we don't know if this technology will be successful and viable in the long term."

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WTI edging on Brent Crude Oil?

With the new Seaway pipeline, WTI crude oil will flow more freely from Cushing to the cost refineries.

WTI vs Brent- which is the better benchmark? Or, perhaps what is WTI and what is Brent? Primarily, there are two types of crude oil traded in the international markets (three really, but two majors): WTI (West Texas Intermediate) and Brent.

WTI used as a benchmark in determining oil prices, is crude oil of high quality. The spot price is fixed at Cushing, Oklahoma. WTI is lighter than Brent crude, has lower sulfur content- comparatively-and produces more oil during the refining process. With lesser sulfur, easier is the refining, and lesser the environmental effects on the planet (WTI has .24 % sulfur, while the sulfur content of heavy crude oil, like the one from Venezuela's Orinoco Belt, is as high as 4.5 %. A reason why many people love this benchmark.) To be noted, though: WTI is more important in- and is-limited to the US, probably because WTI is produced and refined within the US.

Brent is the real international benchmark. Two-third of the oil consumed in the US is Brent, and two-third of international crude is priced to it. (Brent crude is sourced from fifteen oil fields in the North Sea.) Still the media and market persist in quoting WTI, rather. This is a US singularity, like the non-adoption of the metric system.

First, to a bit of history: In April 2007, with the shutdown of Valero Energy Corp.'s McKee refinery, Sunray, Texas, the oil inventories surged to 27 million barrels. The huge stock pile brought down the price of WTI crude-an artificial scenario, as it was more of a technical glitch. Consequently, a report released by Lehman Brothers Inc. (now defunct) stated that the WTI could no longer be used to gauge the international oil market. Though useful for future oil pricing, the benchmark had 'lost its utility' for near-term pricing, the report said. By 2009 Saudi Arabia, the second largest oil exporter in the world, had stopped using WTI as a price benchmark for their oil.

Back to the present, and to answer the question: Yes, the oil price of Brent and WTI exist in parallel universe, with WTI lagging behind Brent. Why? Oversupply of crude in the Midwest. With Canadian imports, and increased oil production in North Dakota, the Midwest gets more oil, which stagnates. In other words, there is a huge bottleneck in moving oil of Cushing. The physical delivery point for New York Mercantile Exchange (NYMEX) futures contracts, Cushing has the largest storage capacity in the US. In 2009 Cushing had shell capacity of 16.3 mmb and working capacity of 37 mmb. According to the US Department of Energy, the shell crude storage by the end of March 2011 was put at 57.9 mmb, while the working storage capacity stood at 48.0 mmb. So, fewer pipelines out of Cushing mean more storage, which in turn, translates to lower oil prices, with excess oil (when compared to Brent).

Lately, though, WTI has been catching up on Brent, here's why: a new Seaway pipeline, moving oil from Cushing to the Gulf coast. Come April 2012, more of WTI crude oil would arrive in the Gulf coast. Initial estimate indicate 150,000 barrels of crude arriving in the Gulf coast every day (after regulatory approval), increasing to over 400,000 barrels per day by 2013. With the given evidence, looks like WTI is closing in on Brent

With Enbridge Holdings, LLC, the subsidiary of the Canadian company Enbridge, Inc., buying fifty percent of ConocoPhillips' interest in the Seaway Crude Pipeline Company (SCPC), things are moving fast. According to Patrick Daniel, President and CEO of Enbridge, Inc., "A Seaway reversal will provide capacity to move secure, reliable supply to Texas Gulf Coast refineries, offsetting supplies of imported crude."

With the Seaway pipeline reversal, there's renewed interest among investors. Already, JP Morgan has increased the WTI forecast to $110/bbl in 2012 from $97.50 forecast in October, and to $118 in 2013 from the initial forecast of $114.25. At oil-price.net, our 2013 forecast stands at $117. Further, the Brent-WTI spread is expected to narrow to $5 per barrel in 2012 and $3 per barrel in 2013. (On September 22, the WTI-Brent spread had reached $29.50). (Earlier this year, Bernstein and Barclays' estimated the Brent-WTI spread at $5 in advantage of Brent). Meanwhile RBC Capital revised its WTI outlook, from $90 per barrel to $100 in 2012 to and $160 in 2013 (from $100 per barrel )- while keeping the forecast for Brent prices the same. Also even if more oil arrives from Canada and North Dakota, the excess oil can be shipped through trucks and rails or with added pipelines.

These pipelines, though, may not be enough if the Keystone XL pipeline is brought into the equation. Shale oil production is increasing in Canada, and the Keystone XL pipeline would give the Canadian oil more access to the refineries in the gulf coast. But considering the opposition from environmental groups, and delay in government approval for the pipeline itself, the excess crude is still far away in the future.

For now: If huge speculation has kept Brent prices artificially higher, the focus has shifted. Indeed, the logistics seems clear, but then oil prices depend on other ground factors and market fundamentals as well. Yet, looks like WTI is closing in, and it would be interesting to observe the WTI-Brent spread in the coming days.

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How you can Scrutinize Nigerian Suppliers of Crude Oil

Scrutinizing Nigerian Suppliers of Crude Oil(BLCO)

Company associated to sale made and invest in of crude oil is flourishing all approximately the planet. As lengthy we have thousands and thousands and millions of automobiles operating within our cities, need of crude oil will at all times be around the rise.

As oil is really a non-renewable form of natural useful resource, its production is concentrated in couple of geographical regions around the planet. Most of the oil reservoirs may very well be located around middle-east and central African regions.

Crude Oil Reserves (BLCO)

Having large oil reserves is actually a major enhancement for economies of oil producing countries and therefore most of the commercial activities in these international locations are concentrated around crude oil. Nigeria is one this kind of oil prosperous nation the place oil proves to be major source of income for it.

As world wide web has grown to be a everyone's major source of locating buyers or sellers for the solution, crude oil is no exception here. Many people around the world make utilization of unique B2B websites to search for appropriate buyers or sellers. Even though visiting any of these kinds of websites you'll have noticed that a majority of offers to market oil and related products are posted from Nigeria. We need to be really careful in scrutinising these offers as all of them might not be true and correct. A lot of of those offers are fake and posted with intention to con potential buyers.

Nigerian National Petroleum Corporation (NNPC) could be the official governmental establishment that allocates oil to commercial firms. Whilst coping with a brand new business make contact with in Nigeria who claims to have an allocation from NNPC should be verified upon. NNPC has offices within Nigeria (Bonu, Lagos & Abuja) and overseas (London) which may be approached in order to verify allocation claims. The organizations who have allocations from NNPC would be the only real sellers and any person else who claims that they could source from other sources can be trying to have lucky with you. Beware and do your due diligence prior to committing yourself into any this kind of offer.

If at any time a seller asks you for cash on some silly pretext, it is best to get alarmed concerning the sincerity of the other occasion concerned. They may pretend to become somebody who they basically aren't. Only progress and transfer dollars a person you have verifiable "Proof of Solution" with you from your provider. Hope you will come across above particulars helpful and effective.



Our reputable company is very reliable, specialized, recognized and superior in the area of linking and introducing together, the two parties [supplier/seller and buyer] in the transactions of the Bonny Light Crude Oil BLCO), FORCADOS (FLCO) Light Crude oil. We dedicated our self in order to show case internationally and to provide high professional services between the two parties both within and outside of Nigeria and we are expanding every year, this expansion has given us rear opportunities,capabilities, and abilities on our good services and recommendations.

Marketers Of Crude Oil (BLCO)

Therefore, the marketers/suppliers that we network within the procurement of Bonny Light Crude Oil (BLCO), FORCADOS (FLCO) Light Crude Oil are licensed indigenous firm based in Nigeria, with operations offices are in Port
Harcourt, Lagos and Abuja.

These sellers/suppliers are licensed by the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) to broker and facilitate the procurement of Nigerian Bonny Light Crude Oil (BLCO) for prospective and would-be buyers who have the capacity to fulfill the requirements to undertake such a transaction.

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Gbagada, Lagos Nigeria.
P.O Box 9798, GPO-Marina
PC:101001,Lagos Nigeria

How Seller's Agent Ought to Discover and Take a look at Prospective buyers in Crude Oil Company

Crude Oil Company

Oil and Gas Marketplace presents essentially the most booming firm prospect all all around the world. It attracts traders, company houses, brokers, people alike as all motivation to earn their share out in the substantial pie. Even though several are conscious while using dynamics with the enterprise venture but having said that unable to determine tips on how to create gains, thanks for your simple simple fact they may be misinformed.
Many will never enter this organization dreaming they'd call for substantial investments and a lot could be at stake, nevertheless couple of comprehend they are going to on the other hand be described being a a part of this flourishing market devoid of expending significantly.

As crucial it could be to acquire allocation of crude through the refinery, it equally crucial and tricky to locate and scrutinize prospective prospective buyers to the solution. So via this informative article we would discuss several tactics by means of which one could act as vendor's agent and occur throughout/profile likely purchasers diligently with involving optimum assets on our hand.

To Near any venture deal a skilled enterprise method is necessary. Acquiring, Advertising and making income is essence of any enterprise venture. You will discover quite a few brokers supplied in crude oil sector seeking to hook to roughly a shopper and break a offer. So what it is best to do ideal to close a offer?

Securing a cope with a Crude Oil Company

Get vendor's Mandate: Obtaining Seller's mandate to market place his goods is probably essentially the most crucial factor to build into a productive agent. You are going to ought to impress upon the vendor along with the skills and capabilities in order to acquire this mandate. Preparing approximately locating a customer without having the need to have of your mandate could prove to obtain a tough perform as even buyers wouldn't opt for you currently being a really serious agent.

Obtaining Future purchaser: Somebody must start producing 1st make contact with with each of the prospective prospective buyers by making cellphone cell phone phone calls. Talking to anyone not basically leaves a larger impression of you but also will present you with an strategy about his seriousness inside the organization. This fashion you can almost certainly find a way to weed out non-vital purchasers and concentrate for that types you think that you simply may well encourage you with seller difficulty.

Comply with-up: Make certain even though ending that initial mobile phone you acquire on purchaser email or fax info due to the fact now you could possibly have to ship them some credible facts on who you might be what you could possibly have to offer. Acquiring a seller's mandate letter will make an enormous difference at this stage. It truly is feasible to also ship you foreseeable future shopper the proof of option and request them for proof of assets, in the celebration you uncover really serious fascination stage from their cease. Additional optimistic negations on cost and terms of business could see the closure of your offer.

Possessing claimed that basic it could sound here but at each and every single and each and every single run you might must persuade shopper about a sincere cope on offer you by you and benefit for all included. Really very best of Luck!

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Crude Oill Company Pipelines

Crude Oil Company

Our reputable company may be very dependable, specialized, recognized and superior within the area of linking and introducing together, the 2 functions [provider/seller and customer] in the transactions of the Bonny Light-Weight Crude Oil/ Nigeria Gentle Crude Oil (BLCO/NLCO), FORCADOS (FLCO) Light Crude oil. We committed our self so as to present circumstance internationally and to supply substantial specialist expert services involving the two parties equally within just and outside of Nigeria and we're expanding each calendar year, this expansion has given us rear chances,capabilities, and capabilities on our great expertise and recommendations.

Thus, the marketers/suppliers that we community within just the procurement of Bonny Lgt Crude Oil/Nigeria Lgt Crude Oil (BLCO/NLCO), FORCADOS (FLCO) Lgt Crude Oil are licensed indigenous business primarily based in Nigeria, with operations offices are in Port

Harcourt, Lagos and Abuja.

These sellers and suppliers are licensed through the Nigerian National Petroleum Corporation (NNPC) and also the Department of Petroleum Resources (DPR) to broker and facilitate the procurement of Nigerian Bonny Mild Crude Oil/Nigeria Gentle Crude Oil (BLCO/NLCO) for potential and would-be customers who have the capacity to fulfill the specifications to undertake this sort of a transaction.



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Head Office: 8 Oyewole street Ifako
Gbagada, Lagos Nigeria.
P.O Box 9798, GPO-Marina
PC:101001,Lagos Nigeria

You can Verify Our Crude Oil Company.

Buy Mazut Russian Starndard - Information To search out Re Sellers

Sellers Of Mazut Russian Standard

A volume of  prominent suppliers of mazut are Lukoil, Gazprom, Roznet etcetera. These 3 energy businesses are located in Russia and owned mainly because of the authorities. They promote their crude oil as a result of investing firms like Vitol, Glencore, and Gunvor and so forth. They may be between the major end sellers, far more sellers could also be present in global locations like China. One particular amongst them is Sinopec. Sinopec is rated because the top rated producer of refined crude oil in China. It has back links towards the federal government of China. In fact, the federal government of China has stakes in Sinopec. They are between the prime sellers of mazut in significant quantities ranging from a thousand metric ton to greater than a million metric tons. Mazut is generally sold by means of CIF and FOB basis. The lists of sellers of mazut isn't going to finish proper right here. You'll be able to equally find much more sellers who've mazut for purchase like Bulgarneft.

Buying Mazut

Ought to you need to buy mazut in large quantities, these sellers will be the correct businesses to acquire from. How can you actually show your attention by contacting these oil sellers? It is normally wherever most clients get hooked. 1St and foremost, you'll need to use a registered oil dealer. You would like to not depend on to surf by means of Lukoil or Sinopec to location your buy that way. This just isn't the circumstances with crude oil. You have to implement an insider who knows the phrases of shopping for oil out of one's preferred fuel oil suppliers. There are plenty of intermediary brokers on-line, but only a number of of them are trustworthy. When I point out reputable i suggest organizations that really have sellers who will carry out.

Fastest way to Find Mazut Seller

A fast way to find them really should be to place inside of the correct key phrases on Yahoo plus the results will likely be accessible to go well with your requirements to access. Reputable sellers are usually not found on this manner. Even when you you search for some so-named company to enterprise directories that statements to have lists of producers, exporters and producers of oil, you may nevertheless locate it tough to obtain in speak to with reliable sellers of mazut who have item to sell. The motive is thanks to the actual fact they may be quite a few of them performing it particularly making it tough to find brokers with back links to sellers with Mazut or products to market. ...................................................................................................................................................................

Our reputable company is very reliable, specialized, recognized and superior in the area of linking and introducing together, the two parties [supplier/seller and buyer] in the transactions of the Bonny Light Crude Oil BLCO), FORCADOS (FLCO) Light Crude oil. We dedicated our self in order to show case internationally and to provide high professional services between the two parties both within and outside of Nigeria and we are expanding every year, this expansion has given us rear opportunities,capabilities, and abilities on our good services and recommendations.


Therefore, the marketers/suppliers that we network within the procurement of Bonny Light Crude Oil (BLCO), FORCADOS (FLCO) Light Crude Oil are licensed indigenous firm based in Nigeria, with operations offices are in Port
Harcourt, Lagos and Abuja. 

These sellers/suppliers are licensed by the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) to broker and facilitate the procurement of Nigerian Bonny Light Crude Oil (BLCO) for prospective and would-be buyers who have the capacity to fulfill the requirements to undertake such a transaction. 

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Phone:+2347032410602, 
Polish Rep:+48794207320
Dutch Rep: +31644506958
Email: mpn.global.venures@inbox.com
Head Office: 8 Oyewole street Ifako
Gbagada, Lagos Nigeria.
P.O Box 9798, GPO-Marina
PC:101001,Lagos Nigeria

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