Shell hits big in GOM - Shell Oil Co. today announced an offshore discovery in the Gulf of Mexico it believes contains 100 million barrels of oil equivalent. The discovery was made about 75 miles offshore in the eastern portion of the Gulf in water that’s nearly 7,500 feet deep. .. The discovery is within 10 miles of two other discoveries, known as Appomattox and Vicksburg; combined, the three total 700 million barrels of oil equivalent, Shell said. FUEL FIX
Macondo is the new Godzilla - Sometimes, the movies have to invent disasters—a killer asteroid here, a global warming monster there—before they reach proportions dramatic enough for the big screen. Other times, disasters happen on their own, in a way that makes it hard not to wonder if they were planned in advance by a group of Hollywood executives eager for their next hit. Take the BP oil spill: On April 20, 2010, the Deepwater Horizon oil rig exploded in the Gulf of Mexico, resulting in an undersea oil leak that gushed for 87 straight days. According to Deadline, that explosion spawned a New York Times article that in turn sparked a bidding war, making it only a matter of time before someone made a movie about it. That movie is Deepwater Horizon, and that time is soon. AVCLUB
Evidently there are no geo-political events to worry about - West Texas Intermediate crude fell below $100 a barrel and Brent tumbled to a three-month low as supply-disruption concerns eased with Libyan output gains and as Iraqi shipments are unaffected by an insurgency.
Libya is seeking to boost oil exports after two ports reopened and Iraqi lawmakers today elected a speaker of parliament. U.S. crude output rose to the highest since 1986 in the week ended July 4, and further gains are likely as benign summer weather is expected to increase pumping from North Dakota, the second-largest oil-producing state.
“The market may have a hard time handling the surge in Libyan oil production,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “In a very short time the market has moved from concerns about insufficient supply to what may turn into an oversupply situation.” BB
Interesting dinner conversation - The US could find its light crude oil production growth stymied if it doesn’t allow more of it to be exported, speakers warned during the US Energy Information Administration’s 2014 energy conference’s first day…
During the crude export discussion in which Auers participated, Jason Bordoff, who directs the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs, said, “Many people are concerned that if more US crude exports aren’t allowed, refineries will be so overwhelmed with domestic light crude that they’ll deeply discount the prices they’re willing to pay. This is a matter of crude quality, not adequate supplies like LNG exports. Recent experience suggests a lot of the US crude oil production growth forecasts have been conservative. We’re learning more as we produce more.” OGJ
Freeport LNG ready to build - Houston-based Freeport LNG Development LP has new investors, and its CEO plans to start construction in October on its massive liquefied natural gas export project. Freeport LNG Chairman and CEO Michael Smith said he believes the company will receive federal approval “within the next 30 days” from the Federal Energy Regulatory Commission to commence construction. HBJ
Dems still competitive in crucial Senate races - Democrats hold single-digit leads in the key Senate contests of Colorado and Michigan, as well as in Colorado’s gubernatorial race, according to new NBC News/Marist polls of these two states. But with less than four months to go until Election Day, Republicans are narrowly ahead in the race for Michigan governor. In Colorado’s Senate contest, incumbent Sen. Mark Udall, D-Colo., leads GOP challenger Cory Gardner by seven points among registered voters, 48 to 41 percent; another 10 percent are undecided. NBC
Billionaire anti-fossil fuels Democrat donor, Tom Steyer, wrote an op-ed explaining why he is now and enviro despite having made his fortune betting on compressed dinosaurs…
… as he attacks the core industry of PA - Outside money has entered the Pennsylvania governor’s race in a big way, with a new ad from billionaire Tom Steyer’s NextGen Climate super PAC accusing Gov. Corbett (R) of giving favorable treatment to oil and gas companies while shortchanging public schools. The ad, running statewide, demands that Corbett publicly disclose the meetings and communications he’s had with oil-and-gas lobbyists and donors. PHILLY
Murphy’s Muddle of the Day: Couple arrested for having sex on the roof of a Chipotle.
What caught my attention: Meet the Anti-Elizabeth Warren… BTW, she basically advocated breaking up JPM during the Yellen testimony this morning. That’s why we all back Clinton in 2016.
You can’t make this stuff up - President Barack Obama’s administration is drawing on Reagan-era legislation in order to justify warrants for data held by U.S. companies outside of U.S. territory — warrants which Microsoft, Apple, Cisco and others argue are unenforceable beyond U.S. borders. Microsoft and others commonly store customer data on servers physically closest to account holders. “Overseas records must be disclosed domestically when a valid subpoena, order, or warrant compels their production,” the government said in a brief filed last week according to Ars Technica. “The disclosure of records under such circumstances has never been considered tantamount to a physical search under Fourth Amendment principles, and Microsoft is mistaken to argue that the SCA provides for an overseas search here.” DC
Who would have thought? - Congress’s nonpartisan budget watchdog warned Tuesday that U.S. entitlement programs would drive the country’s debt to unsustainable levels in the coming years.
The federal debt is now 74 percent of the nation’s gross domestic product (GDP), the Congressional Budget Office (CBO) said in its latest long-term budget outlook, a product of the outsized budget deficits the U.S. recorded following the 2008 fiscal crash.
That figure is already twice the debt level held in 2008, and matched in U.S. history only by a brief span after World War II. But CBO also projects that the public’s share of debt will increase to 106 percent of GDP in 2039, driven by increased spending on healthcare programs like Medicare and on Social Security. HILL