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Bulls have ‘hammerlock’ on oil market, OPIS’ Tom Kloza isn’t ruling out $100 a barrel

Oil expert Tom Kloza’s bearish days are behind him. Kloza, who’s known for calling the 2015 crude collapse, isn’t ruling out triple digit a barrel oil this year.

“Anything that’s between $70 and $100 [a barrel] right now doesn’t represent hyperbole,” he said recently on CNBC’s “Futures Now.”

 The veteran oil market watcher added: “The bulls aren’t just in charge, they’ve got a hammerlock on this market.”

The Oil Price Information Service [OPIS] global head of energy analysis blamed fresh geopolitical tensions for his bullish forecast — citing a potential U.S. military response if Iran resumes its nuclear program, Venezuela’s oil production nose diving and “spectacular” global demand.

“It’s been very bland geopolitically for the last few quarters before this quarter,” noted Kloza, who shed his bearishness about six weeks ago.

Since the first quarter ended on March 31, WTI crude oil has surged almost 9 percent to $70.70 a barrel, based on Friday’s close. That level puts oil prices around 3 year-highs. ICE Brent oil, which settled at $77.02 a barrel, is seeing a similar pattern.

Kloza believes there’s little to prevent Brent oil from reaching beyond the range of $80 a barrel. He suspected crude will trail behind Brent prices due to lower prices in the actual shale oil fields.

Nonetheless, the scenario screams higher prices at the pump.

In a note to CNBC, he wrote that “we are seeing a quiet crisis that is leading to very expensive diesel and jet fuel prices. Refiners and producers are doing wonderfully — retailers of gasoline or restaurants and end-users BEWARE.”

He estimated there’s a 50-50 chance the nationwide average price for unleaded gasoline will exceed $3 a gallon this summer. That could put pressure on President Donald Trump.

“The President is not dumb, and he knows that when gasoline prices get above $3 a barrel a gallon, whoever is in charge in the Oval Office gets blamed,” Kloza said. “That will be an interesting thing to watch.”

See full story here.

May 8, 2018 – Crude Oil Draw Set Improve Bullish Sentiment

Cushing

After the much-awaited news regarding U.S. sanctions on Iran today, the American Petroleum Institute (API) reported a draw of 1.85 million barrels to the U.S. crude oil inventories for the week ending May 4, compared to analyst expectations that this week would see a smaller draw in crude oil inventories of 719,000 barrels.

Last week, the American Petroleum Institute (API) reported a large build of 3.427 million barrels of crude oil.

The API also reported a draw in gasoline inventories for week ending May 4, to the tune of 2.055 million barrels—a bigger draw than the 450,000-barrel draw that analysts had expected.

 Oil prices fell early on Tuesday as the market waited for U.S. President Donald Trump to render his decision on the Iran nuclear deal at 2:00pm. At 07:21 a.m. EDT on Tuesday, WTI Crude was down 1.37 percent at $69.76 and Brent Crude was down 1.13 percent at $75.31. Both benchmarks were at that time about $2 over last week’s figures.

The wait is now over with President Trump announcing this afternoon that the United States will withdraw from the deal, largely in line with what most had expected.

“Over the past few months, we have engaged extensively with our allies and partners around the world, including France, Germany, and the United Kingdom. We have also consulted with our friends from across the Middle East. We are unified in our understanding of the threat and in our conviction that Iran must never acquire a nuclear weapon. After these consultations, it is clear to me that we cannot prevent an Iranian nuclear bomb under the decaying and rotten structure of the current agreement. The Iran deal is defective at its core. If we do nothing, we know exactly what will happen. In just a short period of time, the world’s leading state sponsor of terror will be on the cusp of acquiring the world’s most dangerous weapon. Therefore, I am announcing today that the United States will withdraw from the Iran Nuclear Deal.”

Post-announcement, at 3:17pm EDT, oil prices started to regain ground, but were still trading down on the day.

U.S. crude oil production for the week ending April 27—the most recent data available—increased to 10.619 million bpd, according to the EIA.

Distillate inventories saw a huge draw this week of 6.674 million barrels. Analysts had forecast a much smaller decline of 1.375 million barrels.

Inventories at the Cushing, Oklahoma, site was the only build this week, with the API reporting a 1.653-million barrel build.

The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30a.m. EST.

By 4:38pm EST, the WTI benchmark was trading down 1.44 percent on the day to $69.71 while Brent was trading down 0.68 percent at $75.65.

Over 142bn Will Be Spent On 97 Upcoming Oil & Gas Fields in North America To 2025

Published in Oil Industry News on Wed. April 25th 2018

Over $142bn will be spent on 97 upcoming oil and gas fields between 2018 and 2025. Capital expenditure (capex) into North America’s conventional oil and gas projects will add up to $91bn and $2.9bn, respectively over the eight-year period, with $82.6bn of capex contributing from the offshore fields, according to GlobalData, a leading data and analytics company.

Oil sands projects will require $43bn, while the investments into heavy oil assets will require almost $4bn in upstream capex by 2025.

The US accounts for $76bn or over 76 percent of $142bn of capex for the period of 2018 to 2025. The country has 39 announced and planned fields, 9 are onshore fields in Alaska and the remaining 29 are in offshore United States. Among these, top fields in terms of capex for the period are Mad Dog Phase 2 with $13.4bn, Smith Bay with $11.1bn and Horseshoe with $6.5bn.

Canada follows with $46bn or approximately 32 percent share in North America’s planned and announced capex over 2018 and 2025. Canada has 19 planned and announced fields. Three Onshore fields Telephone Lake (Cenovus Energy Inc.), Kearl Oil Sands Project Phase 3 (Imperial Oil Limited) and Kearl Oil Sands Project Phase 4 Debottleneck (Imperial Oil Limited) are the top three fields with capex for the eight-year period of $6.3bn, $5.9bn and $3.3bn, respectively. All three are oil sands developments.

Mexico is expected to contribute $20.9bn or approximately 15 percent to the total capex spending between 2018 and 2025 and has 40 planned and announced fields. The top three fields are Exploratus, Nobilis-Maximino ultra-deepwater conventional oil fields and Trion conventional oil deepwater field with capex of $1.3bn, $3.2bn and $5.3bn, respectively.

GlobalData expects that over their lifetime, the 97 upcoming oil and gas projects will require $234bn in capex to produce over 19,636 million barrels of crude and 9,530 billion cubic feet of gas. Upcoming onshore projects in North America will have the highest total capex at $97.1bn. Ultra-deepwater projects will require $61.7bn over the lifetime, while deepwater and shallow water projects carry a total capex of $38.3bn and $36.4bn, respectively.

Source: oilvoice.com

Trump’s Revenge: U.S. Oil Floods Europe, Hurting OPEC and Russia

By Olga Yagova and Libby George

MOSCOW/LONDON (Reuters) – As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits – and flooding Europe with a record amount of crude.

Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices close to four-year highs.

Now, the relatively high prices brought about by that pact, coupled with surging U.S. output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.

“U.S. oil is on offer everywhere,” said a trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing U.S. oil. “It puts local grades under a lot of pressure.”

U.S. oil output is expected to hit 10.7 million bpd this year, rivaling that of top producers Russia and Saudi Arabia.

In April, U.S. supplies to Europe are set to reach an all-time high of roughly 550,000 bpd (around 2.2 million tonnes), according to the Thomson Reuters Eikon trade flows monitor.

In January-April, U.S. supplies jumped four-fold year-on-year to 6.8 million tonnes, or 68 large Aframax tankers, according to the same data.

Trade sources said U.S. flows to Europe would keep rising, with U.S. barrels increasingly finding homes in foreign refineries, often at the expense of oil from OPEC or Russia.

In 2017, Europe took roughly 7 percent of U.S. crude exports, Reuters data showed, but the proportion has already risen to roughly 12 percent this year.

Top destinations include Britain, Italy and the Netherlands, with traders pointing to large imports by BP, Exxon Mobil and Valero.

Polish refiners PKN Orlen and Grupa Lotos and Norway’s Statoil are sampling U.S. grades, while other new buyers are likely, David Wech of Vienna-based JBC Energy consultancy said.

“There are a number of customers who still may test U.S. crude oil,” Wech said.

The gains for U.S. suppliers could come as a welcome development for U.S. President Donald Trump, who accused OPEC on Friday of “artificially” boosting oil prices.

“Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!” Trump wrote on Twitter.

‘KEY SUPPLY SOURCE’

While the United States lifted its oil export ban in late 2015, the move took time to gain traction among Europe’s traditional refineries, which were slow to diversify away from crude from the North Sea, West Africa and the Caspian.

“European refiners started experimenting with U.S. crude last year,” said Ehsan Ul-Haq, director of London-based consultancy Resource Economics. “Now, they know more than enough to process this crude.”

U.S. oil gained in popularity, sources said, in part because of the wide gap between West Texas Intermediate, the U.S. benchmark, and dated Brent, which is more expensive and sets the price for most of the world’s crude grades.

This gap, known as the Brent/WTI spread, has averaged $4.46 per barrel this year, nearly twice as high as the year-earlier figure, Reuters data showed.

Wech of JBC Energy said the spread would likely persist in the near future.

The most popular U.S. grades in Europe are WTI, Light Louisiana Sweet, Eagle Ford, Bakken and Mars.

Prices for alternative local grades have been slashed as a result.

CPC Blend differentials recently hit a six-year low versus dated Brent at minus $2 a barrel. Russia’s Urals also came under pressure despite the end of seasonal refinery maintenance.

WTI was available at 80-90 cent premiums delivered to Italy’s Augusta, well below offers of Azeri BTC at a premium of $1.60 a barrel, according to trading sources.

U.S. oil is even edging out North Sea Forties, which is produced in the backyard of the continent’s refineries.

Cargoes of WTI were offered in Rotterdam at premiums of around 50-60 cents a barrel above dated Brent, cheaper than Forties’ premium of 75 cents to dated.

(Additional reporting by Julia Payne and Devika Krishna Kumar; Editing by Dale Hudson)

Walker Lane Explorations Provides Company Update

Lakewood, CO, April 17, 2018 (GLOBE NEWSWIRE) – Phillip Allen, CEO of Walker Lane Exploration, Inc., (WKLN) is pleased to announce the Company has retained BF Borgers CPA PC, an audit firm in Lakewood, Colorado. BF Borgers will assist the Company in filing the Q’s and K’s to bring the Company current. Allen indicates that by having the audit process well under way, bringing the Company current will facilitate management’s efforts to raise working capital to move forward on the New Corporate Direction as reported in a 19th February 8-K filing and a 23rd March news release.

About BF Borgers CPA, PC (www.BFBCPA.us) BF Borgers CPA PC is a PCAOB and CPAB registered Independent Public Accounting firm and auditor that currently audits over 80 SEC registrants ranging in size from startups to Companies with over 500 million in annual revenues.

About Walker Lane Exploration, Inc.
Walker Lane (WKLN) March 16th, 2018 Walker Lane acquired 100% of XON Energy Resources Inc. which a multitude of Oil & Gas Lease with over 50 Wells in Texas. This company also plans on use Wind & Solar to supply power to its production fields, we have a Reserve Audit Report 51-101 prepared by an Third Party Geologist.

If you have further questions, please contact Phil Allen at 1.303.875.1044.

Investor Relations Contact:
Phillip Allen, CEO
Tel: 1.303.875.1044
Email: info@walkerlaneexploration.com

Forward Looking Statement:
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believe”, “hopes”, “intends”, “estimates”, “expects”, “projects”, “plans”, “anticipates”, “look forward to”, “goal”, “may be”, and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements we make regarding our future growth, and shareholder value. Such forward-looking statements are not guarantees of performance and the Company’s actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.

Walker Lane Explorations Announces Changes in Direction and Operation

Lakewood, CO, March 23, 2018 (GLOBE NEWSWIRE) – Phillip Allen, CEO of Walker Lane Exploration, Inc., (WKLN) is pleased to announce major changes in the direction and operations of the Company. On December 26, 2017, the Company successfully rescinded the Asset Purchase Agreement originally consummated with SJE Mining on July 31, 2014. As a key element of the Rescission Agreement, SJE Mining surrendered to the Company Treasury 6,150,000 of their original 8,000,000 shares of common stock. Please see details in the 8-K current report Edgar filing on February 8, 2018.

With the completion of the Rescission of the Asset Purchase Agreement, Walker Lane proceeded to enter into a Share Exchange Agreement on February 19, 2018 with XON Energy Resources, Inc., of Austin, TX. Under the terms of the Agreement XON will become a wholly owned subsidiary of Walker Lane and the owners of XON would receive approximately 45% of the authorized and issued common stock of the Company. See 8-K current report Edgar Filing dated February 19, 2018 for full details.

Walker Lane successfully completed the Share Exchange Agreement with XON Energy Resources on the 15th of March and is now in position to move the company into production.

About Walker Lane Exploration, Inc.
Walker Lane (WKLN) has been a Nevada development stage mining company since 2007. It was originally Goldspan Resources, Inc., (GSPN). On July 31, 2014 the Company entered into an Asset Purchase Agreement with SJE Mining which resulted in changing the name to Walker Lane Exploration and the trading symbol (WKLN) in November of 2014. This action was filed with Edgar and is accessible for your review.

If you have further questions, please contact Phil Allen at 1.303.875.1044.

Investor Relations Contact:
Phillip Allen, CEO
Tel: 1.303.875.1044
Email: info@walkerlaneexploration.com

Forward Looking Statement:
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believe”, “hopes”, “intends”, “estimates”, “expects”, “projects”, “plans”, “anticipates”, “look forward to”, “goal”, “may be”, and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements we make regarding our future growth, and shareholder value. Such forward-looking statements are not guarantees of performance and the Company’s actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.