Close to GYD$1B from oil & gas – Special fund coming next year

The government, through the Guyana Revenue Authority (GRA), has collected GYD$900 million from withholding taxes in the oil and gas sector for the first half of 2017, but there is no rush to establish the promised Sovereign Wealth Fund (SWF) as oil is yet to start flowing.

Minister of Finance, Winston Jordan said on Monday that the GYD$900 million represented earnings from activities in the sector, including resolution of outstanding related matters with companies.

As activities amplify, Jordan will travel to Washington this week to meet with senior Commonwealth officials who are helping Guyana craft a framework to establish the SWF, which many stakeholders hope will lead to greater accountability in the sector.

“The Commonwealth last year was involved in putting that fund together; they submitted a draft to the Government for which there was some feedback,” Jordan said.

The feedback led to Guyana producing its own draft guidelines based on best practices developed from other oil-producing countries. Both the comments from Commonwealth draft and the government’s document will be presented to Commonwealth for final discussions.

Jordan acknowledges that all of this is happening without the fiscal responsibility framework in place.

“We have put the cart before the horse. To know what you want to do; how much you have to save in what propositions you have to have some idea of fiscal responsibility. So we have asked the IMF to assist us there. They said they will be able to get somebody here by February next year,” Jordan explained.

Once the SWF is presented to Parliament, Jordan suggests the next move will be public consultations, but all of this takes time.

“It is not as if you need to have the sovereign wealth fund tomorrow because the oil is coming the next day. Oil is still some ways off. Let us get it right. The fact that you are not seeing a sovereign wealth fund I don’t know what that is supposed to mean. On the one hand when you rush things without the required consultations you get a lot of licks,” Jordan stated.

Guyana’s oil and gas sector recently received more good news when U.S. oil giant ExxonMobil Corporation announced it made a fifth new oil discovery after drilling the Turbot-1 well offshore Guyana, adding to previously known discoveries at Liza, Payara, Snoek and Liza Deep.

ExxonMobil, is poised to start pumping oil in 2020 from the Liza field, said to contain almost 500 million barrels of recoverable oil.

https://demerarawaves.com/2017/10/10/close-to-gyd1b-from-oil-gas-special-fund-coming-next-year/

Ford taps Silicon Valley startup to build transportation software

(Reuters) - Ford Motor Co has begun to develop new transportation service applications using a software platform developed by Autonomic Inc, a small Silicon Valley startup.

One of the first such businesses is a “microtransit” service called Non-Emergency Medical Transport, launched this summer by Ford and Michigan-based Beaumont Hospital. Patients can schedule pickups and appointments from a mobile app that was built on the Autonomic software platform, said Sundeep Madra, Autonomic’s chief executive officer and co-founder.

Vehicle manufacturers are exploring a wide array of digital services to supplement their existing businesses, including ride-hailing, car-sharing and delivery of food and goods. However, when it comes to developing consumer-facing smartphone apps and the data systems behind them, automakers have lagged Silicon Valley rivals.
Ford in the past month has announced partnerships with Domino’s and Lyft, using self-driving vehicles developed by Ford and its Argo affiliate. The Dearborn, Michigan automaker is also experimenting with a service called Chariot that offers access to van rides.

Ford CEO Jim Hackett mentioned the automaker’s investment in Autonomic during a presentation to investors last week. The 15-month-old company is developing “an open platform for transportation” on which Ford plans to build new in-vehicle and mobility-related services with a variety of partners, Hackett said.

If Ford elects to build its own ride-hailing or fleet management businesses, the Autonomic software platform could enable digital payment processing and customer identification, as well as directing the flow of data between the vehicle and the customer, according to a source familiar with the automaker’s plans.

Using the Autonomic software platform as a base, along with data from the vehicles, Ford and its partners then could build and charge consumers for products and services, said Marcy Klevorn, Ford president of mobility.

Klevorn cited FordPass as an earlier example of a software platform that has enabled Ford to provide digital services to subscribers, from parking to payments.

In an investor briefing on Tuesday, Jim Farley, Ford president of global markets, said the most important part of the company’s strategy in self-driving vehicles “is a diverse group of revenue streams . . . not just one revenue stream like ride- hailing, but multiple revenue streams,” including providing digital content to vehicle occupants.

https://www.reuters.com/article/us-ford-motor-digital/ford-taps-silicon-valley-startup-to-build-transportation-software-idUSKBN1CE1S9

Missouri Group Considers Hyperloop Transportation Route

KANSAS CITY, Mo. (AP) — Missouri has re-emerged as a potential location for a Hyperloop track despite not earning a spot last month in a top 10 list of possible future routes for the mode of transportation.

Hyperloop technology comprises a tubular track through which a train-like pod carrying passengers or cargo travels at high speeds. Tech mogul Elon Musk of SpaceX initially proposed the Hyperloop, but several companies have since sprung up to further the technology.

Hyperloop One is a Los Angeles-based company working to commercialize Hyperloop transportation. The company's technology proposes using electric propulsion to thrust the transportation pods forward, the Kansas City Star reported .

Hyperloop One and the Missouri Department of Transportation announced Tuesday that a public-private coalition has formed to reconsider a route in Missouri. The coalition aims to conduct a feasibility study of a route linking Kansas City, Columbia and St. Louis along the Interstate 70 corridor.

Hyperloop One estimated a route from Kansas City to St. Louis would take 31 minutes to traverse. It would attain a speed of more than 670 mph, which the company said is about 90 mph slower than the speed of sound on a 50-degree-Fahrenheit day.

The feasibility study will cost as much as $1.5 million, said Patrick McKenna, director of the Transportation Department. He said the department will request funding from the private sector given state budget constraints.

"MoDOT will provide the oversight and technical expertise to manage the RFP (request for proposal) process for the study," McKenna said. "We are committed to bringing this innovative mode of transportation to Missouri."

The Hyperloop track was first proposed two years ago as part of a transportation department initiative to promote innovation along I-70.

"This public-private partnership demonstrates Missouri's commitment to building one of the first Hyperloop systems in the world," said Rob Lloyd, CEO of Hyperloop One. "We look forward to working with the Missouri Hyperloop Coalition in continuing to develop Missouri's Hyperloop One proposal from Kansas City to St. Louis."

https://www.usnews.com/news/best-states/missouri/articles/2017-10-04/missouri-group-considers-hyperloop-transportation-route

Congressmen: Oil and Gas Industry Needs a Better Narrative

The oil and gas industry needs to do a better job of defining itself to the public to counter ongoing opposition from various anti-industry forces, several members of Congress from three energy-producing states said during a panel discussion in Washington, D.C. Tuesday.

“The opposition is constant,” said U.S. Rep. Henry Cuellar, D-Texas, during Energy Dialogues LLC’s North American Gas Forum (NAGF). “It’s got to be a constant messaging, constant storytelling.”

Cuellar, the sole Democrat on the five-person panel, described himself as “pro-energy, pro-trade.” He represents a South Texas district extending from San Antonio to the U.S.-Mexico border that is home to the Eagle Ford shale formation. He said that one way the domestic oil and gas industry can better enlighten the public is to relay facts that weaken the widely held perception that it is “Big Oil.”

“You have to tell the right story because people just think that oil and gas is big companies, but 88 percent are small- and medium-sized companies,” Cuellar said.

Two panelists, Republicans Scott Tipton of Colorado and Bill Johnson of Ohio, advised the industry to localize its outreach.

“Communicate to the American people that this isn’t a big, sterile business,” said Tipton, adding that the industry in his home state has effectively employed that approach telling stories about actual “people working to support their families.”

Highlighting the industry’s environmental stewardship can also bolster localized messaging, remarked Tipton.

“People in Colorado are environmentally sensitive and we need to keep it that way,” Tipton said.

Johnson, whose eastern and southern Ohio district overlays the Marcellus and Utica shale plays, recommended that the industry distill its narrative so that families can discuss it around the dinner table.

“I don’t think we engage the American people enough,” Johnson said, noting that relaying overly technical concepts and terms to the public translates into missed opportunities to broaden public support for the industry – and build momentum against opponents. “We’ve got to make this a dining room conversation.”

To elaborate on his point, Johnson outlined the following possible scenario in which the industry might make its message more accessible to the public: a pair of parents can more easily afford to send their child to college because the plant where one of them works has given employees raises, passing along savings because it’s paying less for natural gas.

Texas Republican Joe Barton, the former Chairman of the House Committee on Energy and Commerce who currently serves as vice chair, told NAGF attendees that the industry needs to “be engaged in the community” and “come across as real people.”

“Be engaged,” said Barton. “Tell the truth. Follow the law. Be good neighbors.”

Barton’s GOP colleague Blake Farenthold, whose district includes Texas’ Coastal Bend region, reminded attendees that the news media typically focuses on the oil and gas industry when “something goes wrong” so he encouraged them to “be safe.”

Farenthold suggested that the oil and gas industry would do well to remind Americans that they typically get a good value on oil and gas products.

“We’re paying half for gasoline for our cars than we were paying a few years ago, but that’s lost on people,” Farenthold said.

http://www.rigzone.com/news/oil_gas/a/151958/congressmen_oil_and_gas_industry_needs_a_better_narrative/

Abadi talks oil & gas investment, military supplies with CEOs in Paris

ERBIL, Kurdistan Region – Iraqi Prime Minister Haider al-Abadi discussed the expansion of oil and gas investments and the provision of military assistance to the Iraqi army in two separate meetings with French companies in Paris.

Abadi met with Thales Group CEO Patrice Caine to discuss supplying Iraqi armed forces with equipment to aid in clearing mines and debris of war from areas liberated from ISIS.

The Iraqi leader also met with Patrick Pouyanné, CEO of French oil and gas company Total. They discussed investment in Iraq’s oil and gas sector.

“The director of the Total Oil Company expressed his desire to expand oil and gas investments in Iraq, stressing the company's keenness to deal with the federal government and the establishment and development of projects supporting the Iraqi economy in this area,” read a statement from Abadi’s media office.

Heading a high-profile delegation, Abadi arrived in Paris Wednesday evening for a one-day visit on the invitation of French President Emanuel Macron.

This is his first overseas travel since the Kurdistan Region held a referendum on independence from Iraq. His office has denied that the trip is linked to the Kurdish vote.

The visit does not have anything to do with “the unconstitutional referendum,” the statement read.

The visit is to “strengthen the bilateral relations” and to increase efforts in the war against ISIS.

Macron has offered assist negotiations between Erbil and Baghdad. The two governments have not met since the September 25 vote with Abadi demanding the Kurdish leadership annul the referendum result as a pre-condition for talks.

Abadi and Macron will be meeting on Thursday.

http://www.rudaw.net/english/middleeast/iraq/051020171

Construction worker kills ex-boss in murder-suicide at job site

A disgruntled construction worker who was recently fired fatally shot his former boss in the face Thursday morning at a Manhattan job site, and then killed himself, police sources said.

The grisly murder-suicide happened around 7:10 a.m. at 645 W. 59th St., between 11th and 12th avenues, which is currently under construction.

The 44-year-old suspect made his way up to the 38th floor and fired shots at the 37-year-old foreman, blasting him in the head, police sources said. Two shell casings were found nearby.

The victim — who police said fired the revenge-seeking hardhat two days ago — died at the scene.

“He was a great guy. He could light up a room,” one construction worker at the scene said of the victim, as tears streamed down his face.

The suspect then fatally shot himself in the head. His body was found around 8:45 a.m. on the fifth floor, police said.

He was arrested three times before — twice for assault and once for burglary. His last arrest was in 2005, according to NYPD Deputy Chief Christopher McCormack.

“Talking to some of the workers so far, they are saying he was a bit of a hothead,” McCormack said of the shooter. “It [the dispute] was regarding respect for himself and the workers.”

The West Side construction site is the future home of Waterline Square, a trio of ultra-luxe condominium buildings that could fetch more than $1 billion in sales, according to the Real Deal.

GID Development Group, the Boston firm behind the massive waterfront property, didn’t immediately return a message.

The shooting prompted a huge police response during rush hour as officers with guns drawn scoured the construction site for the shooter.

Additional reporting by Sarah Trefethen

http://nypost.com/2017/10/05/man-shot-at-midtown-construction-site/

Scoping The Scoop And Stack

During one of its regular weekly operations meetings this July, Devon Energy Corp.’s Stack team announced something irregular—and significant: the company’s stunning Privott 17-H well in southwestern Kingfisher County, the heart of the booming Stack area in Oklahoma’s Anadarko Basin.

Word about the well spread quickly through the offices and into Devon’s C-suite, for the Privott had set a new play record with an IP-24 of 6,000 barrels of oil equivalent per day (boe/d) from the Mississippian Meramec. It could have flowed more, the company said, but was constrained by the capacity of the production facilities.

https://www.oilandgasinvestor.com/scoping-scoop-and-stack-1660217