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Oil Giant Chevron

General discussions of the systemic, societal and civilisational effects of depletion.

Brazil Boots Chevron and Transocean

Unread postby Pops » Thu 15 Dec 2011, 17:16:44

Forbes
Chevron and Transocean have been slapped with an $11 billion lawsuit from the Brazilian government for an oil leak at the Frade prospect last month.

Brazilian prosecutors have requested a court order suspending the companies’ operations there permanently. Chevron has already been hit with a temporary drilling ban.


Wow, so much for all that deep offshore pre-salt oil coming in anytime soon.

h/t Dandelion
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
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Chevron abandons $10 billion Ukraine fracking deal

Unread postby Withnail » Wed 17 Dec 2014, 08:26:06

http://www.csmonitor.com/Environment/En ... ine-energy

The deal with Chevron was signed in November 2013, and called for Chevron to invest $350 million over the first two to three years to develop Ukraine’s Olesska field in the western part of the country. The agreement kept open the possibility of ramping up investments to $10 billion over the course of Chevron’s 50-year lease. The Olesska field was expected to produce 10 billion cubic meters of gas each year when it was up and running.(Related: Ukraine Sends Russia Huge Advance Payment For Gas)

But Chevron insisted that it would only move forward if the Ukrainian government simplified a series of tax laws. With no action from Kyiv, Chevron has decided it cannot move forward, and informed the Ukrainian government on December 15 of its intention to pull out of the deal.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby Subjectivist » Wed 17 Dec 2014, 10:51:41

Given the instability in Ukraine they would get hammered in their stock price if they pushed forward with the project. If things stabilize that might change.
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Oil Giant Chevron

Unread postby Tanada » Mon 02 Nov 2015, 00:05:40

Oil giant Chevron Corp. announced Friday that it was planning to cut 6,000 to 7,000 jobs as the company sees it profits decline for the fourth consecutive quarter. The global oil-market is currently experiencing its worst price slump since the 1980s, Bloomberg reported.

The job cut announcement came along with third-quarter net income reports. Chevron reported a fall to $2.04 billion from $5.59 billion compared to a year ago. The company’s revenue fell by 37 percent to $34.32 billion.

Global oil prices in June 2014 were over $100 a barrel but have since fallen and continue to hover below $50 a barrel. The price average from July to September was $51.30 for a barrel. The global oil market has been inundated with an increase in supplies from the U.S. and Persian Gulf.

http://www.ibtimes.com/oil-giant-chevro ... es-2163058
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby Tanada » Mon 02 Jan 2017, 01:04:59

Chevron Phillips – the joint venture between Chevron (CVX.N) and Phillips 66 (PSX.N) – is spending $6 billion on building a petrochemical units in Baytown and Old Ocean in Texas. Labor costs would drive the projects’ costs up 10 percent from previous expectations, Phillips 66 President Tim Taylor said in an earnings call earlier this month.

Fluor (FLR.N), one of the world’s largest industrial contractors, took a $154 million charge on the plant in November due to cost overruns, including labor.

Earlier this year, Fluor opened a skilled craft training center in the Gulf Coast, stating that while the firm could not train its way out of the shortage, it hope to alleviate the problem.


http://www.hellenicshippingnews.com/u-s ... intenance/
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Mon 02 Jan 2017, 01:32:42

Actually between Chevron, ExxonMobil et al a total of $32 BILLION is being spent in the Baytown area. Every times the Rockman leaves home a giant complex of 8 gravity seperation towers under construction at XOM stares him in the face from across the highway.

I mentioned earlier one of those training centers took over an abandoned big box store in a local mall. At least 5,000 new good paying jobs are anticipated. When I moved to Baytown to be closer to the offshore chopper bases this area was a slowly dying old refinery town. One reason real estate was less the half the price in Houston 20 miles away from downtown. Since then booming new commercial and residential construction. And by happy coincidence one of the top three medical complexes in the state.

Handy with the semi-crippled Rockman living only two miles away. LOL.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby sparky » Tue 03 Jan 2017, 00:03:32

.
Old run down industrial zones are actually quite good for re-development , the blocks are large , the price is low , they have reasonably easy to upgrade transport connections and often as not they are not too far from the center

the Sydney Olympic center with the Olympic village was build on the old Dulux paint manufacturing plant .
the State government gave them a lowish price and told them that if they did not sell NOW there would be a hard nosed, thorough and long lasting inquiry into the lead residues in the soil driven by rabid greenies .

the company got the message , sold , the state scraped away three inches of soil and declared the site Kosher
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Tue 03 Jan 2017, 00:54:29

Sparky - That's a little known thing about lead pollution. The bad news:it doesn't wash away and has a half life of f*cking forever. The good news: it doesn't wash away. Once in the soil it's very immobile. As you pointed out get rid of the top soil and the site is safe.

Commutating time worked out great. When I moved to Baytown 8 years ago it took 1/2 hour to hit downtown at rush hour. The same distance from the popular north side: 1 1/2+ hours. Bought a 2,300 sqft townhome for $90k. Same place the same distance north or west: $220k. But folks eventually caught on and our population has jumped about 20%.

And back to the thread: The petroleum refining industry has always beern big here. But in the !act 10 years it has really expanded by Chevron et al. Here's something many don't realize: in Oct 2016 we imported 300 million bbls of oil. But that same month we exported 130 million bbls of refinery products and 15 million bbls of oil. IOW of the volume of oil we import only half of it it consumed domestically. We may not be "energy independent" but we're a lot closer then many think. And even a lot closer when you count imports from Canada of 112 million bbls last Oct given that so far we are its only significant market Canada has. So far they have had little success getting oil to Asia so we have them somewhat captive.

So if you count Canadian oil as ours we only imported 188 (300 mm - 112 mm) bbls of "foreign" oil last Oct. And of that volume we exported 145 million bbls of oil and products. So one might argue that last Oct we "effectively" only imported only 43 million bbls of "foreign" oil and not 300 million bbls.

On a value basis the US is the largest exporter of refinery products in the world: $74.7 billion (12.3% of total refined oil exports).

Russia #2: Russia: $65.6 billion (10.8%)
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby sparky » Wed 04 Jan 2017, 17:28:04

.
Agree , exporting raw resources is a mug game , the processing is where the value is !

On the fracking , Poland was pretty much abandoned for bad geology ,
is there some indication that eastern Ukraine was suitable ?
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Wed 04 Jan 2017, 17:51:26

Sparky - Two year old news: "US energy giant Chevron has told Ukraine that it will pull out of a $10bn shale gas exploration project agreed last year, officials said, in a further blow to the country’s war-torn economy and its hopes for an alternative to Russian gas imports."

I found beaucoup articles on huge Ukrainian shale gas potential but not one mention of a single shale well producing in the entire country.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby Zarquon » Wed 04 Jan 2017, 20:18:00

sparky wrote:.
Agree , exporting raw resources is a mug game , the processing is where the value is


According to the EIA, the global crack spread (the difference between petroleum product prices and crude oil prices) was below $2/bbl in 2014 and over $6 in 2015, with US refineries doing better than the global average ($7 and $9, respectively, but also made only $2 in 2009). European refiners even *lost* $2/bbl in 2014.

Even though refinery profits appear to be higher when oil is cheap and vice versa, it still doesn't look like a license to print money. I guess it depends on whether you are an integrated company, refining your own oil, then you can partly offset lower revenue from selling oil through higher refinery earnings. But mostly I think it depends on size. Small refineries are going out of business.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby sparky » Wed 04 Jan 2017, 21:10:36

.
Thanks for the numbers , it certainly put things in perspective
I was mostly thinking in term of a country interest , raw material exports bring money but very little industrial muscle
it tend to overvalue the currency , drive imports up and destroy local producers of food and manufacturing .

that's the Spanish conundrum ,
during the 16th and 17th century Imperial Spain was awash with South America silver and it wrecked the economy
Studying this and proposing remedy , a new type of experts appeared ,called " economistas ",
within a decade , jokes about them were common .
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Thu 05 Jan 2017, 11:21:32

Z - Yes, difficult to see the facts clearly. Years ago a refinery buddy was bitching about his division forced to post a loss on their books for the quarter. They had to "sell" a lot of output to their retail sales division at a loss. It had to do with an income tax angle. Integrated oil companies can, to some degree, pick which segment shows a positive cash flow.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby sparky » Fri 06 Jan 2017, 16:48:10

.
I've always though it was smart to have some vertical integration in a business ,
it give a better appreciation of what is happening with a bit of early warning .
of course any tax shifting is gravy
Glencore ,the massive commodities trader own some farms and mines ,
not a lot but enough so that they have a real base .

Back to Ukraine , anyone has a clue if the Geology make it doable ..... at 60$/b
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Fri 06 Jan 2017, 19:52:03

Here's the latest update on the Ukraine's big shale gas fields. Notice they have a rather loose definition of "proved reserves"? Given they are talking about 100+ tcf of shale gas in a country that isn't producing any meaningful amount of NG from a shale formation.

Yuzgas B.V., a company set up by investment fund Emerstone Energy, has won a contract for shale gas exploration in the Donetsk region, Ukraine. The production sharing agreement between Yuzgas and Nadra Yuzivska – a subsidiary of Nadra Ukrainy – will pick up where Royal Dutch Shell left when it withdrew from the Yuzivska field on 8th September 2015, citing force majeure.

At the time, Shell issued a statement to the effect that the company “has been prevented from performing its commitments under Yuzivska [production sharing agreement] for an extensive period of time due to force majeure, i.e. circumstances beyond Shell’s control”.

The Yuzivska field was discovered in 2010 and was expected to begin production in 2017. The initial assessment indicated that the field holds around 70.8 trillion cubic feet of natural gas and the production was expected to yield around 960 million cubic feet of gas per day. However, despite these optimistic estimates, the actual exploratory drilling work carried out so far has not confirmed the presence of abundant shale resources in this part of the country.

The Oleska shale gas deposit is an unconventional gas area in Lviv, Ivano-Frankivsk and Ternopil oblasts in Ukraine. It will begin production in 2017 and will produce natural gas and condensates. The total proven reserves of the Olesska gas field are around 53 trillion cubic feet and production is slated to be around 1 billion cubic feet per day. The total exploration investment is expected to be about US$350 million.

In December 2014, Chevron terminated the agreement with the Government of Ukraine for a 50 interest in and operatorship of Oleska Shale Block.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby rockdoc123 » Fri 06 Jan 2017, 22:42:50

the big issue with the European shale basins (and this is based on personal experience) is that although the shales match quite well on most factors with productive US shales (i.e. TOC, maturity, thickness, silica content etc) they tend to be a bit more wide ranging with respect to mechanical behavior. One of the measures that is used is Poissons ratio which looks at rock elasticity in a manner that can be related to the shales capability of being fracked. What was noticed is many of the shales in Eastern Europe looked great but when subjected to the rock mechanic evaluations responded with more "plasticity" (used in it's mechanics sense) rather than "brittlely". Not all shales are equal....North America has been particularly lucky in a lot of shales having all of the necessary elements present over the majority of the basins.
It might end up being that the sweet spots in the Eastern European shale basins is a small subset of the basin extent.
That being said Shell are not experts in shale gas/oil, in fact they suffer from the big company approach which doesn't work in this niche industry. Generally it has been the small independents who have been successful.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Fri 06 Jan 2017, 23:18:43

Doc - Makes sense. I never worked the Eagle Ford but I did get some chapter from directional drillers working the plays. Apparently many operators early one started focusing on the highly resistive portion of the formation. Higher carbonate content making it more brittle.

I did get to look at a detailed analysis of a hz core from the Haynesville Shale. I was consulting as a Deep Water pore pressure analyst for the operator. They wanted to know why the drilled it with 10.2 ppg and no show but after frac'ng had a bhp equivalent to 14.5 ppg. Amazing core of the "shale" formation. The shale was more of a slate. And half of the "shale" section was actually limestone...which was actually more marble in nature. The calcite was baked into an amost pure cystal framework.

And in the entire core the was not one nanodarcy of perm. And not one fracture...open or sealed. They could have drilled with air and not gotten a sniff of gas. But apparently frac'd into something sweet: 6.5 mm cf/d.
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby sparky » Sat 07 Jan 2017, 18:30:48

.
Much thanks the "rocks" that's what I was looking for ,
I read some report that fracking in Poland gave rather disappointing results ,
the good stuff was there all right but the matrix was described as "clayish "
the north European plain of which Poland is a subset should have some equivalent geology around Lwow
the Donetsk area is much further East and has some problems associated with flying lead .
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Re: Chevron abandons $10 billion Ukraine fracking deal

Unread postby ROCKMAN » Sun 08 Jan 2017, 00:24:00

sparky - A shale like the Eagle Ford isn't just unique in the rest of the world but in the US also. There are shale formations in the US that are collectively tens of thousands of feet thick compared to the EFS being just several hundred feet thick. And some are pricing to be productive but after hundreds of test wells the vast majority don't work.

As Doc pointed out "shales" don't produce commercial oil/NR. Only uncommon shales with a unique charascters do. And then only if there is a significant effort in that region to do so. That combination is much more rare then just the right rocks. For instance imagine how long it would take the "right rocks" to boom in Poland...a country with less the 1/2 dozen drill rigs.
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Re: Oil Giant Chevron

Unread postby Subjectivist » Thu 11 May 2017, 14:35:38

Just how unique are you talking about, 1% of shales or .001% of shale formations?
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