Oil price ‘enters danger zone’ (Page 1)
High oil prices threaten to derail the fragile economic recovery among developed nations in the Organisation for Economic Co-operation and Development according to the IEA oil import costs have soared by $200bn to $790bn to the end of 2010.
US oil groups press for easing of drilling curbs (Page 7)
The US oil industry has launched a campaign to persuade the government to open more of the country’s coastline and interior for oil and gas drilling, arguing that ending restrictions could create more than 500,000 jobs. The American Petroleum Institute believes that the November elections in which the Republicans won control of the house of representatives will lead to a better reception from Congress to its appeal for increased drilling access.
BP hits seven-month high on Gulf compensation news (Page 17)
BP shared jumped 7% after news that its compensation payouts for the Gulf of Mexico spill might be much lower than anticipated.
Cairn hires rigs for Arctic oil search (Page 20)
Cairn Energy’s highly prospective Arctic exploration programme remains on track after they said they have rented two drilling rigs and secured a $900m credit line. The operator said that it had plans to drill up to four wells this year, subject to approval from the country’s government.
Latest Falklands setback knocks Desire shares (Page 20)
Shares in Desire Petroleum, the Aim-quoted oil explorer, fell by almost a quarter after it announced that no oil had been found in a prospective well off the Falkland Islands. Desire has now drilled four wells in the North Falklands Basin without finding oil and said it had funds to drill one more.
South Atlantic yields more frustration (Page 20)
The admission that Desire Petroleum is considering to raise more cash to bolster its faltering Falklands drilling campaign raises fresh questions about the prospects of companies drilling there.
Petrobras in talks over Eni’s Galp stake (Page 22)
Petrobras, Brazil’s national oil company, is in talks with Eni, the Italian energy group, to acquire its 33% stake in Galp, the Portuguese oil company. Galp is a partner with the Brazilian group in exploration and production in off-shore fields, including the potentially enormous “pre-salt” discoveries of 2007. Petrobras is already engaged in one of the most ambitious investment programmes in the industry.