It’s President’s Day. And many of you have the day off. Here at The Surge, we don’t take days off! Unless we need a day off. But TK and DK know who the real commander and chief is – Oil & Gas. So, in honor of this President’s Day and keeping in mind that we’ve had 45 Presidents in our history, I will bring you 45 new developments in the world of oil & gas. That would be a great plan if I were clinically insane. So let’s keep it real and get it going. Here be the latest in oil & gas.
Hashi Energy Will Sell Retail Business To Firm In Tanzania
Can you think of a better way to celebrate the Presidents of America than with news from Kenya and Tanzania?? Me neither.
One of the largest oil firms in Kenya, Hashi Energy, is in the process of selling its retail business/gas stations to Lake Oil in Tanzania. What does this mean? It means that Lake Oil’s presence in Kenya’s petroleum industry will likely be vastly more relevant.
Hashi will continue with the distribution of petroleum products in addition to overseeing logistics, mining and its lubricants businesses. Lake Oil will have nothing to do with these interests.
This is good news for me. Not sure I could have supported Lake Oil being involved with Hashi logistics. There are certain lines that shouldn’t be crossed. I’m glad cooler heads prevailed on that point.
Big Banks In Canada More Willing To Loan Cash To Oil And Gas Industry
Let’s take it up north to news out of Canada. Right away I turn to John Rooney, chief executive of Calgary-based Northern Blizzard Resources to get into this one. He says:
“The bank lending industry is a little more comfortable with some stability in oil prices, and that gives them the courage to lend a little more.”
Straight, direct, to the point. That’s John Rooney. Anyone who works for a company with the word “Blizzard” in their name gets a permanent thumbs up from The Program here at The Nightly.
The confidence to lend again is due in large part to the fact that oil prices have doubled since OPEC’s cutbacks at the end of last year.
According to Bruce Edgelow vice-president of strategic initiatives with ATB Financial out of Alberta, The Canadian oilfield biz is on the rise this year but the industry is still “a long way away from healthy.”
“A long way from healthy”… sounds like how I used to describe my times at UMass, Amherst. But still in terms of money being ready to loan, “A long way from healthy” is still better than “Sick and about to croak.”
U.S. Shale Oil Prepares For An Unfamiliar 2017
You knew we couldn’t have a President’s Day Nightly Surge without news from the homeland! No, this won’t be an update on the Showtime series “Homeland” which I checked out of 3 years ago. Sorry, Carrie and Saul. This is about cost increases in the U.S. shale industry.
For the first time since 2012, production cost increases will go up for U.S. shale producers. It seems that energy service providers are juicing their fees to get a bigger cut of the profits.
According to Rystad Energy, the per-barrel costs will go up an average of $1.60 across the shale patch to $36.50.
Welcome to America, U.S. shale! When you got a good thing going you can expect everyone to hop on board until the ship goes down… or in this case, the costs go up.
Like Mike Tyson on the canvas in Tokyo, this one’s done. Another Nightly in the books. T-Koo will get you ready for the day with another eye-opening Morning Surge, I’ll be recovering from PPDD – “Post-Presidents Day Depression”. But you can be sure I’ll rally for the next Nightly. Until then… night night.