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News Page 114

EXCLUSIVE – Private-Equity Backed Oil Producer Buys Texas Acreage

HOUSTON, Jan 21 (Reuters) - A private equity-backed U.S. oil company led by former Statoil executives has bought 18,000 acres in rural West Texas, the latest deal by investors snapping up land whose value has plunged along with crude prices. Private equity, venture capital and other prospectors are betting that global demand for oil will eventually outstrip supply and lift prices from 12-year lows, making the land ripe for development. Luxe Energy LLC, formed last year by Statoil alumni with…

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Work Underway on Water Treatment Project for San Andres Oil, Gas Wells

Midland, Texas-based STW Resources Holding Corp., a water management solutions provider, has obtained a permit from the Middle Pecos Groundwater Conservation District to treat and make useable millions of gallons of artesian brackish water flowing from abandoned oil test wells in the Imperial, Texas area. Development is underway on the MRK lease, and is a key component in STW’s West Texas Water Project. The main purpose of this project is to access alternative resources to fresh water, process brackish water…

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$30 Oil Is ‘Irrational’ And A Rebound Is ‘Inevitable,’ According To Saudi Arabia

Shocking: Saudi Arabia thinks oil prices at $30 per barrel are "irrational." According to a report in The Financial Times, Khalid al-Falih, chairman of the state-owned oil company Saudi Aramco, said at the World Economic Forum in Davos that he expects a recovery in prices this year. "The market has overshot on the low side and it is inevitable that it will start turning up," Falih said. Saudi Arabia, however, is not prepared to cut production to bring prices back to something…

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Five Eagle Ford Companies To Watch As United States Becomes Natural Gas Exporter

So far this year, American crude oil exports have been getting all the attention, but natural gas exports are expected to do far more business in terms of volume and perhaps, profits. The U.S. Energy Information Administration released a report on Friday stating that natural gas imports will move down to zero over the next 16 months. It will be the first time since 1955 that the United States is exporting more natural gas than it imports. By some estimates…

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Valero Takes A Stake In The ‘Diamond Pipeline’

San Antonio-based refining company Valero Energy Corp. (NYSE: VLO) has acquired a 50 percent interest in a pipeline that runs from strategic storage terminals in Oklahoma to Memphis, Tennessee. Last year, Plains All American Pipeline (NYSE: PAA) announced plans to build the 440-mile "Diamond Pipeline" from Cushing, Oklahoma to Memphis. Cushing is a strategic delivery point and storage terminal for crude oil extracted from Oklahoma, Colorado, the Permian Basin of West Texas, the Bakken Shale in North Dakota and other areas…

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Greg Abbott Keeps Iran Sanctions In Place Despite U.S. Agreement

On the heels of a trade mission to Israel, Gov. Greg Abbott on Wednesday told officials with the state’s retirement funds to maintain bans on investing in companies that do business with Iran, despite the nuclear pact orchestrated by President Barack Obama that is lifting economic sanctions against the Persian Gulf nation. “These (state-level) sanctions have and will continue to ensure that Texas does its part to prevent taxpayer dollars from aiding and abetting a country that is openly hostile…

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First U.S. Oil Tanker Arrives In Europe

The first oil tanker to sail from the US after restrictions were lifted on the country’s crude exports has arrived in Europe, a landmark moment for an industry battling a collapse in prices. Carrying a cargo dubbed “Liquid American Freedom” by the US House energy and commerce committee members, the ‘Theo T’ Panamax oil tanker docked at the French port of Fos on Wednesday, having left Texas almost three weeks ago. Vitol, the world’s largest independent oil trader, is expected…

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Kayne Anderson Commits $150M To New Houston Upstream Energy Co.

Why Are Oil Prices So Hard to Predict? Even as oil prices dip below $30 a barrel, new life springs forth from the oil patch in the form of PE-backed startups. The latest in a string of new PE-backed Houston energy startups is Invictus Energy LLC, which announced on Jan. 13 that it had secured $150 million in an equity commitment from management and the energy arm of Los Angeles-based Kayne Anderson Capital Advisors LP, Kayne Anderson Energy Funds. "Invictus is…

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Why Are Oil Prices So Hard To Forecast?

Why Are Oil Prices So Hard To Forecast? For the oil forecasting community, the most recent collapse in oil prices marks one more failure. The long trail of forecast errors includes the market implosions of 1982 and 1986, not seeing the run-up in commodity prices after 2004 and now missing the end of the same commodity boom. For those of us who depend on oil price forecasts, this is a big problem. Try to forecast the economic outlook for Houston…

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