It’s hump day but also a sad day for all the fans of The Allman Brothers Band, drummer Butch Trucks and pioneering comedy icon Mary Tyler Moore. But here at “The Nightly Surge” we carry on in spite of any and all bad news. So like “King Kong ” Kuegler guides you thru the oily happenings of around 9 pm to 9 am, I take the reigns and catch you up on the in-betweens. So without further ado… here’s what we do.
Aramco Contracts McDermott International For Replacement Of Offshore Platforms
According to offshore-mag.com, McDermott International has locked up two new Middle East contracts. Saudi Aramco has commissioned EPCI to replace aging facilities at the Safaniya and Zuluf fields with electrified platforms to boost expectations.
At first I thought Safaniya was a new R&B artist following in the footsteps of Shakira and Beyonce, but apparently that is not the case as Safaniya is actually the world’s largest offshore oil field.
The work being done in Safaniya will cover design, procurement, fabrication, transportation, installation, testing, and pre-commissioning of nine slipover jackets and decks, subsea pipelines and cables, and demolition of certain facilities at the Safaniya oil field… throw in a Denny’s and a Peet’s Coffee and what else do ya need?!
In addition, McDermott has secured what it calls a “sizeable” pipelay contract in the region from an unnamed operator. This is the most exciting news of all. There’s nothing better than “unnamed operators” in business deals. It paves the way for bribes, payoffs, slush funds and every other kind of backroom dealing that makes me feel safe and proud to be an American.
(I’m curious if their headquarters are on land, in which case I have big problems with this racket on many levels.)
Global Energy Demand To Grow By 1/3
According to BP’s latest energy outlook, a budding Asian middle-class will cause global energy demand to grow by around 1/3.
BP’s chief economist Spencer Dale says, “In terms of the fuels meeting this increased demand, BP’s outlook points to a continuing shift in the fuel mix, with non-fossil fuels providing half of the increase in primary energy… [while] oil and gas, together with coal continue to meet the majority of the world’s energy needs, accounting for more than ¾ of total energy supply in 2035.” Thanks, Spence. Gotta respect someone who talks about 18 years from now as if it’s already happened. #EasyWithTheCrystalBall.
BP also predicts that natural gas will overtake coal to be the 2nd largest fuel source by 2035.
BP’s energy outlook is concluded by outlining the ‘most likely” path for global energy markets until 2035, based on assumptions and judgments about future changes in policy, technology, and the economy… so basically, flip a coin, throw a dart, and go from there using words like “growth”, “demand”, “shift”, and “increase”.
PetroChina Warns Profit May Drop To Record Lows On Oil’s Plunge
PetroChina, the country’s biggest oil and gas producer, said full-year net income in 2016 fell by as much as 80% – a pace that would be a record low profit. Full disclosure I thought this read “Petco China”, and seeing that I’m in the market for a new cat (R.I.P Oscar) to be named “JohnMcLain” – (Yes, there is no space between the two names, as the name is to be said in full each and every time – try saying it… then you’ll understand.) – I was very thrown by this misread headline… But the PetroChina news is big too! So back to it.
Their loss of income is due to lower international oil prices and domestic natural gas prices severely dropping compared with the previous year.
PetroChina will continue to improve cost cutting in 2017, and it expects oil prices to rise as the global market rebalances. The company may report full-year results on March 30, according to Bloomberg estimates.
There is no word if anyone at the executive level at PetroChina has a cat or kitten they are looking to find a new home for… nor is there any truth to the rumor that I’m currently being fitted for a straight jacket. #CrazyIsTheNew30.
So that’s a wrap, all. I hand you over to the trusted hands of TK to take you into Thursday. Until then… Night night.