The oil rig and refinery builder which widened its quick growing subsea enterprise when it purchased Global industries of the United States in the previous year, said that the sales should increase between 12% and 17.5% to attain $8.9 billion euros from the $6.8 billion euros of last year.

In a recent statement, Theirry Pilenko, the company’s chief executive said that their clients are showing confidence in gas and crude oil prices for 2012 and they will continue to invest in the company for it to attain its high production goals. He further added that although the political and economic uncertainties must not be disregarded, they still see on-going opportunities in almost all markets where the company operates.

Oilfield service industries have profited from a high crude oil price history which caused their clients that produces hydrocarbon to increase investments. Total, BP and Shell have reported increases in capital expenditures to seek and obtain additional oil.

For almost a year, Brent crude oil prices have reached more than $100, a good investment level.

Technip reported a net revenue of 150 million euros for the fourth quarter versus 112 million during the previous year as sales increased by 14% to reach 2.01 billion. The company planned to increase the yearly shareholder dividend to 9% for 1.58 euros per share.

Technip shares which rivals with Italy’s Saipem and Sclumberger were higher by 1.2% at 79.23 euros. This level outperforms the 0.2% increase in the index of European gas and oil.

Moreover, the company gave a confirmation that the takeover of the Global industries should bring in additional 5 to 7 percent a share by 2013 with a savings in cost of not less than $30 million.

Jean-Luc Romain, an analyst of CM-CIC Securities, said within the context of a strong market especially in the Gulf of Mexico, North Sea, West Africa and Brazil, Technip believes it can bring in Global Industries into its organization.

Technip further adds that the total expense for 2012 was anticipated to be around 350 to 400 million euros.

Benchmark crude prices grew by 80 cents to reach $101.55 a barrel at the NYMEX. The contract dropped by 17 cents to end at $100.74 a barrel.

In London, Brent crude prices increased by 80 cents to reach $118.15 a barrel.

According to analysts, fears of oil disruptions resulted from the expectations that Mahmoud Ahmadinajeb, the President of Iran will soon begin its nuclear projects. The United States and its allies claim that Iran is producing nuclear weapons, an allegation that Tehran consistently denies.

Melbourne, Australia’s ANZ Banking Group commodities analyst Natalie Robertson, thinks that the market is struggling between the weaker demand forecast and the Middle East situation.

Aggravating worries on oil supplies was a strong fight between Iran and Israel after a bomb strike in India of an Israeli diplomatic facility, and a frustrated incident in Georgia, according to Robertson.

Israel has charged Iran of starting a covert state terror campaign that extended to Asia following a failed explosives attack that resulted to the arrest of two nationals of Iran in Bangkok, Thailand.

Yet the Schork Group expressed that it keeps on thinking that oil prices are likely to reduce because of low gasoline consumption in the United States following data that retail sales in January modestly increased.

In the meantime, lawmakers of Greece have submitted a budget cut package as an attempt to obtain a second set of political favor for a bailout needed to avoid a debt default.

However, the finance ministers of Europe postponed a meeting that will talk about that budget after the failure of Greece to meet several demands.

In case a deal is not attained, Athens will fall in bankruptcy and it will pose a huge risk in the currently struggling economy of Europe.

Elsewhere in the energy markets, heating oil prices rose by 2 cents to reach $3.19 a gallon, the gasoline futures market decreased by 3 cents to end at $2.98 a gallon while Natural gas increased by a cent to end at $2.55 for every 1,000 cubic feet.

The February monthly market report of the Organization of the Petroleum Exporting Countries (OPEC) reflected an upward movement in oil prices. According to the organization, this was caused by a positive economy in the United States and recharged geopolitical Middle Eastern tensions which helped strengthen the risk premium of crude oil prices.

The organization further added that the oil demand will fall from one million barrels daily to 900,000 a day for the present year. According to the cartel, its gains were counteracted by the ambiguity in the viability of the economy and the credit slump in several European countries.

OPEC said that the latest economic challenges have forced a lower forecasted demand globally. According to the organization, its members have to give about 30 million barrels of oil to the market each day during this year. This is a reduction in the expected quantity reported in January. The implications of such a move on the crude oil price chart are widely considered to be uncertain.

In the report, OPEC did not mention anything about the European action to impose an embargo of crude oil from Iran, the country which is considered as one of the leading members of the organization. Saudi Arabia had expressed its interest in compensating for the possible oil supply deficiency by giving assurances to Korea that it can survive even without crude oil provided by Iran.

The International Energy Agency in the past year commanded its member countries to give out strategic oil supply to compensate for the shortages from the war-stricken Libya. According to the IEA, it did not notice any physical damage in the market of oil since the saber rattling in Iran.

The major culprit behind the slide was Greece and its lingering deliberations concerning the latest bailout package on offer to the addled nation. Greek officials have repeatedly voiced their distaste for the austerity measures that come attached to the plan. Weaker than expected import/export figures out of China also cooled off expectations of rising demand, forcing crude oil prices to fall on the charts.

Economists have stated that there is a palpable fear that nervous investors would feel pressured to take profit and sell their shares, causing a minor collapse for both Brent and WTI futures.

West Texas Intermediate crude oil prices lost 71 cents to $99.13/barrel in electronic trading on the New York Mercantile Exchange. Investments in the American benchmark rose impressively yesterday, but as the optimism surrounding Greece’s bailout receded, so did the crude oil price chart.

Brent futures for March settlement lost 72 cents to $117.87/barrel on the London-based ICE Futures Exchange. The spread between Brent and WTI currently sits at $18.54/barrel. Those investors that bet that the spread would narrow over time miscalculated.

Greece’s deliberations caused a negative shift in projections for Europe’s state of economic health. As a result, the euro lost ground against the dollar on the currency index. Foreign traders tend to turn away from crude oil whenever the greenback flourishes, as the dollar-priced commodity oil becomes too expensive to sustain.

Suncor Energy announced an increase of 11% in its quarter four revenues and attributes this to steeper crude oil prices.

The biggest energy company in Canada said that its net profit grew by from 82 to 91 Canadian cents per share to achieve C$1.43 billion in that quarter compared to its C$1.29 billion in the same quarter of the previous year. Those results exceeded the estimated 90 Canadian cents per share of Thomson Reuter’s average analyst.

The high rise in crude oil prices during the previous year stimulated bigger earnings for Suncor despite of a decline in its total production which was caused by the shutdown of Libya’s operations due to the sanctions and conflict that occurred there. Moreover, asset sales also played a part in the low production of the company.

The average crude oil price for Suncor grew by 37% from $70.95 per barrel in 2010 to $97.33 per barrel in 2011.

Rick George, its Chief Executive said that their continuous focus on their 2011′s operational excellence resulted to positive and beneficial reliability gains all over the company and high levels of oil-sand production.

The oil-sands production of the company slightly increased from 325,900 to 326,500 barrels per day. Total production decreased by 8% to 576,500 barrels per day because of production loss in Libya and asset sales.

Operating cashflow came in at C$2.65 billion in the fourth quarter versus C$2.13 billion in the same quarter of the previous year. That amounted to C$1.69 and C$1.36 per share respectively.

Suncor used C$1.27 billion for capital expansion and exploration in the fourth quarter and on the third stage of its special new development project that was finalized in that period.

Suncor shares recently ended at $34.50 in the NYSE and were a little higher in the pre-market activities in the next days.

A recent report says that the pipeline in the Northern Gateway will increase crude oil prices per barrel by $2-3 every year over 30 years which will cause major damage to businesses, consumers and the economy of Canada as a whole. Robyn Allan, former CEO of British Columbia’s Insurance Corporation, said that the $5.5 billion project will have a damaging and long term effect on the economy of Canada by decreasing output, government profits and employment labor income.

Allan, being an economist, studied the pipeline proposal’s effect out of interest, said that it has been considered by its proponents as an enterprise that will build the nation but it actually poses a serious threat to the economy of Canada.

In an interview, she said that it will be an economy’s oil price shock instead of a GDP-positive opportunity that people are made to believe.  She added that increases in oil prices will mean higher costs for businesses and consumers for any output of that oil. Consequently, that will lead to inflation, downsizing of businesses and laying off of employees.

Enbridge predicted a yearly increase of $2-3 in the per barrel crude prices when it applied to the combined panel of the National Energy Board and Canadian Environmental Assessment Agency for the pipeline.

According to Paul Stanway, spokesman of Enbridge, the company cannot give a detailed comment regarding the report since it is proof presented before the NEB-CEAA in the pipeline hearings that are currently ongoing. However, it will have the chance to refute the report by September.  But, Stanway gave a confirmation about the expected oil price growth stipulated in the application.

He said that Canadian oil prices are anticipated to rise by $2 to $3 a barrel because of market differences and contact with global pricing. Although this is true, it must also be taken into consideration that it will benefit the entire Canadian economy around $270 billion.

Stanway said that there is an essential benefit to Alberta and the government treasury resulting from having world market outlets. Stanway said that without access to a marketplace all over the globe, Canada will be stuck in selling only to a single market and will end up getting a highly reduced price for the resource. He said being the most important export product of Canada, there is no point of continously offering it a a discounted price.

According to Allan, Enbridge has overstated the advantages of the pipeline and understated the economic effect of the price shock in the businesses, consumers and refineries in Canada. She said that Enbridge utilized the wrong calculations in response to the query about the economic consequences that might occur when the Northern Gateway successfuly increases oil prices.

Allan, recognized as one of the top 200 CEOs in Canada by the Financial Post, said that she wishes to show her information and ask Enbridge about its model. However, she was denied the status of an intervener.

Recently, the 145,000 members of the Alberta Foundation of Labor included Allan’s report in their panel submission.

According to Gil McGowan, the president of the AFL, the report is a wake-up call and a game changer to everyone who has been attracted by the PR campaigns of oil companies. He added that the report of Allan suggests that economic development and job creation are just mere illusions.

Gowan said that if Canadians and Albertans sees this report and figure out that they are being screwed by pipeline proponents, they may first react with anger and then begin to question it. The report of Robyn tries to show that the building of the pipeline will undermine public interest instead of enhance it when the broad growth of the economy and development of jobs are considered.

Once approved the line that is 1,177 kilometer in length will transport 525,00 barrels of crude and oil from nearby Bruderheim to Kitimat B.C. for exporting to Asian refineries via a tanker.

Crude oil futures gained ground on the commodity charts today, rising along with European equities as Greece’s government looked to approach something resembling a consensus on the nation’s economic future. The debt-riddled country and its bailout woes have been at the centre of global attention for the past eight months and have heavily influenced the progression of oil prices in that time.

Brent crude oil prices for settlement in March went up 46 cents to settle at $116.67 per barrel in on the London-based ICE Futures Exchange.

West Texas Intermediate crude oil futures for March delivery traded up $1.21 at $99.60 per barrel on the New York (NYMEX) Mercantile Exchange.

The key driving element behind the surge in oil investment at the moment is Greece. If the nation manages to abate the lingering fears of a default, traders and economists will find more room to breathe on the market, and riskier commodities will again become more appealing.

Analysts have stated that if the euro continues to rise on the currency index, the next target price for WTI would stand at the resistant $100 per barrel.

The upturn in crude prices is also being supported by the escalating tensions in the Middle East. Harsher than expected winters across Europe also drove up demand for heating oil, which in turn bolstered oil investment across the border.

However, the somewhat worrisome state of inventories in the US may prove to be a powerful deterring factor for oil-heavy investment strategies. Several reports from Cushing, Oklahoma have stated that the nation is overstocked on the fuel, meaning that global demand may not be in as favourable a state as expected. The US is the largest crude consumer in the world. US stocks of the fuel are currently over 4 million barrels above the norm.

Oil prices posted a recent decline as markets worry that the economic data of the U.S., the biggest crude consumer worldwide, is weaker than anticipated.

March delivery for West Texas Intermediate crude prices ended at $98.48 per barrel. As New York’s major contract, that rate is lower by 30 cents compared to its level during the close of the previous day. In London, March delivery of Brent North Sea crude slightly increased by 12 cents to end at $110.87 per barrel.

The benchmark contract of New York posted earlier gains in the midst of rising positivity that Greece is coming up with a negotiation with private creditors to prevent a sovereign default on its debt.

However, the market turned away after new data presented that consumer confidence in the U.S. declined in January and the costs in the troubled real estate market of the country decreased for the fifth consecutive month since November.

The poor figures developed worries about the strength of energy demand in the United States.

PFG Best’s Phil Flynn said that the recently released data shows that the United States is not as strong as they think which results to a lowering of momentum

Earlier, crude oil prices had been sustained by Japan as a main importer of oil on account of rising household spending, reversing the trend that began with the tsunami and earthquake that devastated the country in March 11 last year.

Moreover, traders are closely looking at the recent efforts of the leaders of the European Union to fix the problems of Greece with its currently huge deal for debt relief.

The growth in oil prices is also partly caused by the rising tensions between South Sudan and Sudan which recently expressed that it will suspend production of oil after accusing Khartoum of stealing its crude that amounted to $815 million.

The issue is on the pipeline fees that move the oil of the South to port through Sudan’s rump state. Ban Ki-moon, the UN chief, recently said that the tensions as well as the oil row had become a main threat to the peace and security of the region.

In the last three months of 2011′s fiscal year, the company’s total earnings amounted to $1.01 billion or $1.18 a share. That is a 26% growth from its previous year’s earnings of $799 million or $0.94 a share.

Analysts surveyed by Thomson Reuters have expected profits of 89 cents a share.

Quarterly revenues increased by 17% from $6.94 billion to $8.12 billion during the same time in the previous year.

Profits from Imperial’s upstream business increased by 47% to reach $771 million. That was caused by elevated crude oil price history that brought in additional earnings of $275 million and  rising Cold Lake bitumen production that added $70 million to the quarter four earnings, said the company.

Average Brent crude oil price, a common standard for markets of world oil, rose to $109.29 a barrel during the fourth quarter. That is a 26% increase compared to the same time during the previous year.

Imperial’s total produce amounted to 202,000 barrels daily for natural gas liquids and crude oil. That quantity is lower by 4%. Cold Lake production grew by 6% for a total of 123,000 barrels a day. Production of Syncrude declined by 17.8% for a total of 60,000 barrels a day.

A reduction of 10% was seen in the output of natural gas to end at 226 million cubic feet a day.

Downstream profits increased by more than 2% to end at $272 million. This compensated for the 56% reduction in the chemical revenues of $11 million.

By: Chris Termeer

The scrutiny surrounding Iran’s controversial nuclear program appears to be approaching a head. The US has already passed a sanctions bill which in essence has crippled Iran’s central bank from any sort of global dealings. Crude oil prices have posted several strong rallies in reaction to the mounting sanctions against the OPEC country, with Brent futures now hovering comfortably above $111 per barrel. However, their progress was limited somewhat by the European Union’s hesitance of imposing a full embargo on Iranian fuel.

If Saudi Arabia does raise production rates by the promised 2 million barrels per day, the result will make up for the bulk of Iran’s current daily supply of 2.5 million barrels. The ensuing threats from Iran, however vague, are still to be considered however. The nation’s military representatives have gone on record to state that they will use any methods in order to ensure that their interests are protected. No matter how the grave the situation may turn in the long run, in the short term, the mounting tensions in the area have now established a firm safety cushion for crude oil price charts.

With the debt crisis raging in Europe preventing the region from fully committing to an Iranian embargo, Asia now looks poised to be the first continent to cede to the sanctions demands of the West. The bloc’s largest crude oil consumers, China, Japan and South Korea, are in the midst of seeking out new potential sources to field their energy demands. The premier of China is currently touring across the Arabian Peninsula, a trip that outside other diplomatic associations is aimed at procuring a new crude exporting host. China is also in the middle of signing a nuclear cooperation deal with Saudi Arabia.

It is still unclear what effect China’s actions will have on crude oil prices in the long run. The rapidly emerging nation is the second largest importer of Iranian oil. Its daily importing bill of more than 430,000 barrels per day would be nearly impossible to replace in such a struggling market. China’s foreign policy would also logically prevent the nation from obeying the US’ demands of a full embargo. The country’s officials have already expressed their distaste for the forceful way with which the US has pursued their sanctions efforts against Iran. China’s looking for an alternative supplier is then less a matter of geopolitical influence, but rather a desire to procure a Plan B in case Iranian fuel becomes unavailable. As a result, investors and economists have struggled to predict just how the proceedings would affect crude oil price charts. China’s strong ties with Saudi Arabia are also a thing to consider.

While China still appears to be on the fence, sanctions-wise, the two other largest importers of Iran’s oil in Asia reacted to the US’ demands with polarized results. Japan is already in search of alternative providers, while South Korea has requested that the US allow its business transactions with Iran to continue unimpeded.

Crude oil prices hang in the balance of Saudi Arabia’s potential production boosts. While the nation certainly has the supplies and capacity for such an extreme increase in output, whatever retaliation Iran could wreak in response could prove to be a powerful dissuader. The markets are also reeling from any possible outcome of the situation. If Saudi Arabia hits its maximum production capacities in trying to make up for the lack of Iranian oil in the sector, crude oil prices will likely rally in an extreme fashion.

Iran’s promises that continued embargos would force the nation to shut down the Strait of Hormuz were met with healthy doses of skepticism. More than on fifth of all of the world’s crude oil passes through the Strait of Hormuz. Officials from the US have stated that Iran’s dismal navy would be unlikely to blockade the waterway for a protracted amount of time. The potential blockade of the Strait would also remove one of the last remaining negotiation points Iran has in relation to Israel openly attacking their sites of nuclear development.

Iran could however respond to the embargos by placing threats on its Arab neighbours, as well as the interests the powers of the West hold in Afghanistan.

At any rate, the rapidly developing situation is currently acting as a powerful source of support for crude oil prices, which are under constant risk of floundering under the weight of the European debt crisis. Though it is difficult to estimate just how the situation will play out and in what way it will affect the energy sector, a steady source of underlying aid, something plenty of other high-profile commodities lack, should be a strong point of attraction for global crude oil traders.

By Chris Termeer