B07 Oil and Gas Extraction

Supplies are plentiful but shortage of ‘cheap gas’: UBS

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 29 : 22-Jun-17

Nik Burns of UBS says the Federal Government’s Australian Domestic Gas Security Mechanism is unlikely to be triggered in 2018. He does not expect a gas shortage on the east coast, as the Australia Pacific LNG and Queensland Curtis LNG projects have sufficient surplus gas to supply the domestic market. However, Burns adds that these projects will not increase domestic supply unless local gas users are prepared to pay a similar price to the spot price.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, GLADSTONE LNG PTY LTD, SANTOS LIMITED – ASX STO, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Gorgon to make case for carbon capture

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 22-Jun-17

Global Carbon Capture & Storage Institute CEO Brad Page says Chevron’s Gorgon LNG project will prove the business case for carbon capture and storage technology. The CCS component of the Gorgon project will reduce Gorgon’s greenhouse gas emissions by around 40 per cent by using a saline aquifer to store carbon dioxide. Page notes that the estimated $A2bn cost of the CCS project is insignificant compared with the overall cost of Gorgon, which has blown out from $US37bn to $US54bn.

CORPORATES
GLOBAL CARBON CAPTURE AND STORAGE INSTITUTE LIMITED, CHEVRON CORPORATION, GORGON LNG, INTERNATIONAL ENERGY AGENCY, ROYAL DUTCH SHELL PLC

Santos export fears overdone, says Citigroup

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 21-Jun-17

Shares in Santos closed two per cent lower at $A2.98 on 20 June 2017, after the Federal Government committed to implementing the Australian Domestic Gas Security Mechanism. However, Citigroup believes that LNG export controls may have less near-term impact on Santos and its Gladstone LNG venture than has been forecast. Citigroup also suggests that the ADGSM may also prompt Santos and its partners in the project to develop new gas fields instead of sourcing gas from third parties.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, MACQUARIE RESEARCH EQUITIES, CREDIT SUISSE (AUSTRALIA) LIMITED

Lobby urges tighter curbs on LNG exports

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Original article by Matt Chambers
The Australian – Page: 20 : 15-Jun-17

Manufacturing Australia has warned that the Federal Government’s proposed LNG export controls are unlikely to have much impact on gas prices on the east coast. Its submission to the Government has backed the Australian Domestic Gas Security Mechanism, but it argues that the resources minister should be given greater power to intervene in the gas market. Meanwhile, Fereidun Fesharaki of FGE has forecast a sharp fall in the price of crude oil, which will in turn impact on LNG producers given than the LNG price is linked to the oil price.

CORPORATES
MANUFACTURING AUSTRALIA LIMITED, FACTS GLOBAL ENERGY GROUP OF COMPANIES, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BLUESCOPE STEEL LIMITED – ASX BSL, BORAL LIMITED – ASX BLD, INCITEC PIVOT LIMITED – ASX IPL, CSR LIMITED – ASX CSR, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD

Prices to ignite gas export controls

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Original article by Matt Chambers
The Australian – Page: 19 & 32 : 9-Jun-17

Federal Resources Minister Matthew Canavan will brief the gas industry on the draft rules for the Australian Domestic Gas Security Mechanism on 9 June 2017. The draft rules show that the ADGSM will give Canavan and any future resources minister the power to restrict LNG exports if there is a domestic supply shortfall. Macquarie Group has criticised the limited detail in the draft rules, particularly with regard to how the gas price will be determined for the purposes of imposing export controls.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MACQUARIE GROUP LIMITED – ASX MQG, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, ROYAL DUTCH SHELL PLC, QUEENSLAND CURTIS LNG PTY LTD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TOTAL SA, PETRONAS GAS BHD, KOREA GAS CORPORATION

New tax bill for Chevron over inter-company loans

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Original article by Matt Chambers
The Australian – Page: 19 : 8-Jun-17

Chevron Australia’s financial accounts show that it made a net loss of $US541m in 2016, compared with a $US165m profit in 2015. The local subsidiary of US energy giant Chevron did not pay income tax and petroleum resource rent tax in 2016. The accounts also indicate that the Australian Taxation Office has issued amended assessments regarding interest deductions on intercompany loans for the period covering 2009 to 2013. This is in addition to the additional tax bill of $A340m for the period from 2003 to 2007.

CORPORATES
CHEVRON AUSTRALIA PTY LTD, CHEVRON CORPORATION, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA

Thai firm’s Montara oil well plan rejected

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Original article by Paul Garvey
The Australian – Page: 17 & 27 : 8-Jun-17

Australia’s National Offshore Petroleum Safety & Environmental Management Authority has rejected an application by PTTEP to drill a new production well at the Montara oil field off the coast of Western Australia. The regulator expressed concern about the environmental impact of the proposed oil well, as well as aspects of the Thai company’s environmental plan. There was a major oil spill at the Montara field in 2009.

CORPORATES
AUSTRALIA. NATIONAL OFFSHORE PETROLEUM SAFETY AND ENVIRONMENTAL MANAGEMENT AUTHORITY, PTTEP OFFSHORE INVESTMENT COMPANY LIMITED

Gas explorers respond to PM’s demands

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Original article by Paul Garvey
The Australian – Page: 17 : 6-Jun-17

New data shows that Australian gas producers spent $A118.5m on onshore gas exploration during the March 2017 quarter, which is 20 per cent higher than previously. However, expenditure on offshore oil and gas ­exploration fell to $A221.8m, which is the lowest level since late 2005. Spending on mineral exploration rose to its highest level in two years, although the gold sector’s expenditure fell by nearly 15 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, ROYAL DUTCH SHELL PLC, PETROCHINA COMPANY LIMITED, QUEENSLAND GAS COMPANY LIMITED, WORLEYPARSONS LIMITED – ASX WOR, AGL ENERGY LIMITED – ASX AGL

AGL bid to import LNG heats up

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 5-Jun-17

AGL Energy is expected to name the preferred site for its proposed LNG import terminal within a matter of weeks. Sites in South Australia, New South Wales and Victoria are all said to be under consideration for the terminal, which is expected to cost between $200 million and $A300 million, with Western Port Bay in Victoria considered a possible option. AGL CEO Andy Vesey is understood to want to commence construction of the terminal in 2019, and for it to be operational in 2020-21.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, COUNCIL OF AUSTRALIAN GOVERNMENTS, CHENIERE ENERGY INCORPORATED, QIC LIMITED, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

ExxonMobil shareholders rebel on climate costs

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Original article by Steven Mufson
The Australian Financial Review – Page: 27 : 2-Jun-17

ExxonMobil shareholders have voted in favour of a motion that requires the oil and gas company to disclose the impact that measures aimed at addressing climate change are having on its business model. Thomas Napoli, of the New York Common Retirement Fund, which co-sponsored the motion, says that climate change is one of the biggest "long-term risks" to investments within its portfolio. BlackRock and State Street Global Advisors are both understood to have voted in favour of the motion. Originally published in "The Washington Post".

CORPORATES
EXXONMOBIL CORPORATION, NEW YORK COMMON RETIREMENT FUND, BLACKROCK INCORPORATED, STATE STREET GLOBAL ADVISORS INCORPORATED, THE VANGUARD GROUP INCORPORATED, BP PLC, TOTAL SA, CONOCOPHILLIPS, ROYAL DUTCH SHELL PLC