“The U.S. Coast Guard is conducting an over flight assessment for a report of a rainbow sheen approximately one mile by 10 miles spotted near the Mississippi Canyon block 807 in the Gulf of Mexico……trying to identify the responsible party.”-Petty Officer Bill Colclough, U.S. Coast Guard

April 12, 2012, the USCG is investigating a report, by Royal Dutch Shell, of an oil spill located between two Shell off shore platforms, near the U.S. state of Louisiana.

Shell says it is not coming from its Mars and Ursa rigs.  It could be natural seepage.

The International Energy Agency says international oil stockpiles are so high, and demand is so low, that it expects oil prices to continue to drop.

Isn’t it funny how not even a  year ago the oil industry “experts” kept telling us that demand was still high, and that we could expect $150 per barrel, or more?

“Easing first quarter 2012 fundamentals have seen prices recently lose most of the $5 per barrel they gained in March. The muted impact so far is partly because much of this extra supply has been stockpiled on land or at sea.”-IEA statement

But don’t expect lower gas prices, as the Organization of Petroleum Exporting Countries said, the Northern Hemisphere summer driving season is always used as an excuse to raise prices: “U.S. oil demand remains a key uncertainty to the existing demand assessment. The upcoming driving season might be affected by high retail gasoline prices and the pace of the economic recovery.”-OPEC statement

The International Energy Agency says consumers can blame the high fuel prices on wars and rumors of wars: “We cannot discount the possibility that prices will remain high so long as geopolitical uncertainties remain.”-IEA statement

Sudan launched an offensive to re-take the largest oil field from South Sudan: “Within the next 72 hours, we shall have pushed all of their troops out of our territories.”-Rabie Abdelaty, Sudanese spokesman

The Heglig field produces about 60,000 barrels per day.  Last week U.S. supported South Sudan captured the Heglig.

India has just surpassed China, as Iran’s number one oil buyer.  In the first quarter of 2012 India imported 433,000 barrels per day from Iran.  China’s import rate for Iranian oil was only 256,000 bpd.  That’s according to  Petrologistics.

It could be that China had made a huge oil deal with Russia, but now Russian courts could threaten that deal.

Russian prosecutors are investigating the 30 year deal, over a discount giving to China.  That discount results in a reduction in profits, over the 30 years, of $3 billion USD.  Many Russians are not happy about that.

China imports 300,000 bpd from Russia’s Eastern Siberian oil fields.