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To: Brumar89 who wrote (74327)1/18/2017 10:29:48 AM
From: Brumar89  Read Replies (1) | Respond to of 86355
 
Market Currents: Asian oil reliance continues to grow

Posted by Matt Smith
Date: January 16, 2017

With markets closed today to witness Martin Luther King Jr. Day, prices are not surprisingly rather subdued amid quiet electronic trading. Nonetheless, fun and games will ramp up from tomorrow, with OPEC’s monthly oil report out on Wednesday, swiftly followed by the IEA’s monthly oil market report on Thursday – along with the delayed EIA weekly report. That said, hark, here are five things to consider in oil markets today:

1) The chart below highlights how Asia Pacific oil demand is expected to grow by 800,000 – 900,000 barrels per day this year and next, while production from the region could shrink by as much as 330,000 bpd over the same period.

This shortfall of over 1mn bpd means the gap betwixt consumption and production continues to widen, projected to be a mammoth 27mn bpd this year. As the gap widens and prices rise, the region is projected to spend over $500 billion on importing oil this year.



2) We can see in our ClipperData that flows into the Asia Pacific region have risen versus year-ago levels for eleven of the last twelve months, rising by an average of 1.33mn bpd over the period.

For the last four months of the year, however, we have seen imports averaging 2.1mn bpd higher than year-ago levels. As OPEC producers have put as much as possible onto the global market ahead of a coordinated production cut, the Asia Pacific region has been a key beneficiary:



3) With the oil market entering 2017 with prices above $50/bbl, having virtually doubled from the February lows of last year, optimism is creeping back into the industry, manifesting itself in higher capital expenditure. According to Wood Mackenzie, upstream capex will increase in 2017 for the first time in three years.

Approvals this year are expected for the development of more than 20 oil and gas fields, which is more than double the number seen last year. A third of these fields are expected to be deepwater projects, while the U.S. is expected to invest $61 billion into onshore projects (think: shale).

Nonetheless, upstream capex in 2017 is set to remain 40 percent below 2014’s level:



4) With oil prices back in the fifties, U.S. production is on the rise again, trying to clamber back above 9mn bpd. But as oil prices rise, the cost of oil-field services are set to rise also. Cost savings for producers over the last few years have come at the expense of oil services companies, and now these companies are looking to raise their prices again.

As the graphic below illustrates, higher costs – such as labor and supplies – could significantly boost the breakeven in key fields to above current price levels:



5) Finally, although long-term forecasts are to be taken with a pinch or two (or ten) of salt, the below chart provides some interesting insights into the prospects for Asian LNG demand growth.

Total global LNG consumption is projected to be 422 million tons in 2030, almost two-thirds higher than last year’s level. While oversupply is expected to persist through the rest of the decade as new projects come online, a lack of FIDs (final investment decisions) betwixt now and the end of the decade means there is the potential for this oversupply to flip to a shortage by mid-next decade.

Nonetheless, the two leading global consumers of LNG, Japan and South Korea, are expected to see waning demand over this period.



fuelfix



To: Brumar89 who wrote (74327)1/18/2017 10:48:25 AM
From: Eric  Read Replies (2) | Respond to of 86355
 
Climate change
Global warning

2016 hottest year ever recorded – and scientists say human activity to blame

• Final data confirms record-breaking temperatures for third year in a row

• Earth has not been this warm for 115,000 years


The natural El Niño climate phenomenon helped ramp up temperatures to “shocking” levels in early 2016. Photograph: P B Verma/Barcroft Images

Damian Carrington

@dpcarrington

Wednesday 18 January 2017 10.30 EST Last modified on Wednesday 18 January 2017 10.31 EST

2016 was the hottest year on record, setting a new high for the third year in a row, with scientists firmly putting the blame on human activities that drive climate change.

The final data for 2016 was released on Wednesday by the three key agencies – the UK Met Office and Nasa and Noaa in the US – and showed 16 of the 17 hottest years on record have been this century.

Direct temperature measurements stretch back to 1880, but scientific research indicates the world was last this warm about 115,000 years ago and that the planet has not experienced such high levels of carbon dioxide in the atmosphere for 4m years.



Arctic ice melt 'already affecting weather patterns where you live right now'

Read more theguardian.com

In 2016, global warming delivered scorching temperatures around the world. The resulting extreme weather means the impacts of climate change on people are coming sooner and with more ferocity than expected, according to scientists.

The natural El Niño climate phenomenon, which helped ramp up temperatures to “shocking” levels in early 2016, has now waned, but carbon emissions were the major factor and will continue to drive rising heat. Scientists expect 2017 to be another extremely hot year.

The new data shows the Earth has now risen about 1.1C above the levels seen before the industrial revolution, when large-scale fossil fuel burning began. This brings it perilously close to the 1.5C target included as an aim of the global climate agreement signed in Paris in December 2015.

The declaration of 2016 as a year of record-breaking heat comes just ahead of the inauguration of Donald Trump as US president. Trump has called global warming a hoax and is filling his administration with climate change deniers and former ExxonMobil boss Rex Tillerson. Tillerson said recently that climate change does exist but that the ability to predict the effects of greenhouse gas emissions is “very limited”, a statement most climate scientists would reject.

The three temperature records are independent but reached very similar conclusions. The data from Noaa showed 2016 saw the global average temperature break records for eight months is a row from January to August in 2016, while no land area experienced an annual average temperature that was cooler than 20th-century average. Noaa also found Arctic sea ice fell to its lowest annual average extent on record and Antarctic sea ice to the second smallest extent on record.

Prof Michael Mann, a climate scientist at Pennsylvania State University, said: “The spate of record-warm years that we have seen in the 21st century can only be explained by human-caused climate change. The effect of human activity on our climate is no longer subtle. It’s plain as day, as are the impacts – in the form of record floods, droughts, superstorms and wildfires – that it is having on us and our planet.”

“While there may be some cost in mitigating climate change, there are already major costs in damages,” said Prof Kevin Trenberth, a scientist at the US National Center for Atmospheric Research, who estimates the costs as already tens of billions of dollars a year. “Yet if sensible approaches are implemented in the right way for [cutting emissions] and building resilience, the increases in energy efficiency can actually make it a net gain, not only for the planet for for everyone.”

Bob Ward, policy director at the Grantham Research Institute on Climate Change at the London School of Economics, said: “Any politician who denies this evidence from world-class climate scientists will be wilfully turning a blind eye to rising risks that threaten the lives and livelihoods of their citizens.

“I hope that president-elect Trump and his team in particular will acknowledge and act on this important scientific information.”

Peter Stott, acting director of the Met Office’s Hadley Centre, said: “A particularly strong El Niño event contributed about 0.2C to the annual average for 2016. However, the main contributor to warming over the last 150 years is human influence on climate from increasing greenhouse gases in the atmosphere.”

The head of the World Meteorological Organization (WMO), Petteri Taalas, said in November: “The extra heat from the powerful El Niño event has disappeared. The heat from global warming will continue. Because of climate change, the occurrence and impact of extreme events has risen. ‘Once in a generation’ heatwaves and flooding are becoming more regular.”

A WMO report said human-induced global warming had contributed to at least half the extreme weather events studied in recent years, with the risk of extreme heat increasing by 10 times in some cases.

The record-smashing temperatures in 2016 led to searing heatwaves across the year: a new high of 42.7C (108.9F) was recorded in Pretoria, South Africa in January; Mae Hong Son in Thailand saw 44.6C (112.3F) on 28 April; Phalodi in India reached 51.0C (123.8F) in May, and Mitribah in Kuwait recorded 54.0C (129.2F) in July. Warm oceans saw coral mortality of up to 50% in parts of Australia’s Great Barrier Reef and bleaching of 75% of Japan’s biggest reef.

The level of CO2 in the atmosphere also broke records in 2016, with May seeing the highest monthly value yet – 407.7 ppm – at Mauna Loa, in Hawaii, the site of the longest-running measurements dating back to 1958.

Global carbon emissions have barely grown in the last three years, after decades of strong growth, according to an analysis published in November. The main reason is China burning less coal, but CO2 is still being emitted into the atmosphere at record levels. “CO2 will continue to rise and cause the planet to warm until emissions are cut down to near zero,” said Prof Corinne Le Quéré at the University of East Anglia.

Global warning: a live digital event, Thursday 19 January, 7am GMT Amid fears Donald Trump’s administration will shatter decades of hard-won progress on climate change, the Guardian, Univision and Tumblr are uniting to deliver 24 hours of live coverage from around the world on what is at stake. Hours from Trump taking power, we will be reporting from all seven continents, in English and Spanish, hearing from those most affected, the experts and publishing our audiences appeals to Trump to protect the planet.

theguardian.com