I was looking for the possible reasons for today's Brent falls. It seems related to fears of oversupply and the strong dollar according to this from Reuters. This is a pity because it is almost back to the level just before the US Gov released those 'not as bad as feared' stockpile numbers on Friday afternoon.
(Reuters) - Oil prices fell on Monday as worries about oversupply in North America and a strong dollar pushed Brent futures towards $59 a barrel and U.S. contracts below $49 a barrel.
After an initial rise along with global markets on optimism that another euro zone crisis over Greek debt had been averted for now, prices began dipping as analysts said crude markets remained oversupplied, especially in the United States.
"The term structure of oil continues to weaken and inventories keep piling up," Bank of America Merrill Lynch said in a note.
Xcite Energy announces that its 100% owned subsidiary, Xcite Energy Resources plc ("XER"), has entered into a Collaboration Agreement with Statoil (U.K.) Ltd. ("Statoil") and EnQuest Heather Limited ("EnQuest"), in order to share field-specific technical and operational information to evaluate the potential utilisation of common gas import infrastructure between the Kraken, Bentley and Bressay fields.
A joint XER, Statoil and EnQuest team will work together to analyse the current available information and develop a number of proposals to assess the potential benefits of installing a shared gas import pipeline in conjunction with the development of the Kraken, Bentley and Bressay fields.
Rupert Cole, CEO of Xcite Energy, commented:
"We are pleased to continue to work with Statoil and extend this to include EnQuest in the assessment of this shared infrastructure. This new collaboration with Statoil and EnQuest to assess this shared infrastructure is an important initiative, which highlights the scope of potential opportunities available to our respective projects.I believe that today's announcement further demonstrates that additional value can be created by companies collaborating in key development activities and it reinforces our commitment to "Maximising Economic Recovery" from the area immediately surrounding the Bentley field."
Welcome to our thread X111, it is good to have new fresh faces to chat with. I believe we have a collaboration agreement with Statoil and Enquest 'to share field-specific technical and operational information to evaluate the potential utilisation of common gas import infrastructure between the Kraken, Bentley and Bressay fields.' I wasn't aware we had a MOU with them regarding the current field development partnership plan though? I think Statoil paid monies for the EWT data to better understand the area production/cost capabilities and have already used the data to reassess Bressay's potential.
As far as I understand this is not planned to be used on Bentley until the second phase of development. From what I have read from XER documentation it is expected to be field tested during the first phase of development and if successful several EOR wells will be incorporated into the second phase field plan. EOR could well be important though, so well worthy of a mention as it could increase recovery rates substantially, and likewise reserves and overall field value. Slightly disappointed to see Brent currently closer to $59 than to $60, although I'm hoping supply news out later in the week will have lessened and the recovery in Brent will continue through $60 towards $70 in due course.
Interesting article on the costs of having to add EOR to an xisting field to maintain production. Much easier to incorporate EOR at the start of the project .. Wonder if any NS projects are going to do that..??
Also incudes a wonderful word..."" For the most part, easily accessible oil and gas has been explorated,""
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