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Jobs Data boost U.S. stocks

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NEW YORK – U.S. stocks opened higher as May job gains largely in line with expectations showed the economy continuing on a moderate growth path.

The Dow Jones Industrial Average advanced 54 points, or 0.3%, to 16890 in the moments after the opening bell.

The S&P 500 index rose five points, or 0.3%, to 1945. The Nasdaq Composite Index added 16 points, or 0.4%, to 4312.

The U.S. economy added 217,000 jobs in May, the Labor Department reported, just above the 210,000 median estimate of economists in a Wall Street Journal poll. The unemployment rate, obtained in a separate survey, was 6.3%, unchanged from April and a touch below economists’ 6.4% forecast.

“It’s a generally positive number,” said John Brady, managing director at Chicago futures brokerage R.J. O’Brien & Associates.Mr. Brady saw the same kind of “steady-as-she-goes” buying in stock futures that characterized much of the past week’s activity, he said.

Continued signs of improvement in the labor and manufacturing segments of the economy have helped fuel stock indexes to record highs this year, along with steady corporate profit growth and sluggish prospects for returns in other assets such as bonds. The S&P 500 closed at an all-time high Thursday, having risen 5% so far in 2014.

U.S. government bonds rallied after the jobs report was released, although traders attributed the strength to Thursday’s decision by the European Central Bank to ease monetary policy.

“European government bonds are rallying big time and that is benefiting Treasury prices,” said Tom di Galoma, head of fixed-income rates in New York at ED & F Man Capital Markets. “U.S. jobs data was spot on the estimates so no big surprise there.”

In recent trade, the yield on the 10-year Treasury note ticked lower to 2.575% from 2.584% late Thursday. The yield was 2.586% right before the data. When bond yields fall, their prices rise.Gold futures eased 0.1% to $1,252.70 an ounce, while crude oil futures tacked on 0.3% to $102.74 a barrel. The dollar edged higher against the euro, but lost some ground against the yen.

The jobs number should help keep stocks aloft, at least over the longer term, said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management.

“There has been a lot of worry as to whether or not the economic data was going to get better,” said Mr. Jacobsen, whose firm manages about $242 billion. “The data that has been rolling out has supported the notion that the recovery is getting good footing. … I don’t necessarily see [stocks] taking off like a rocket from here, but I do see a lot of support for where we are.”

European markets were broadly higher, extending gains seen Thursday after the European Central Bank’s announcement of stimulus measures on Thursday. The Stoxx Europe 600 rose 0.5%, and was headed for an eighth-straight weekly gain.Asian markets saw weakness, with China’s Shanghai Composite shedding 0.5% and Japan’s Nikkei Stock Average slipping less than 0.1%.

In corporate news, Bank of America slipped 0.1% in premarket trading, pulling back from a six-week high on Thursday, after The Wall Street Journal reported that the banking giant was in talks to pay at least $12 billion to settle civil probes by the Justice Department into the alleged handling of shoddy mortgages.

Data-center equipment provider Arista Networks priced its initial public offering late Thursday at $43 a share, above the expected to range of $36 to $40. The stock is due to begin trading on the New York Stock Exchange Friday under the symbol “ANET.”

VeriFone Systems added 3.3% after reporting better-than-forecast quarterly results and announcing a plan to reduce its employee count by 500.

Hertz Global Holdings slumped 10% after the car-rental company said it would have to restate results of the past three years, citing a material weakness in internal financial-reporting controls. Hertz also said fiscal first-quarter results are likely to miss analyst expectations as a result of costs associated with the accounting review.

– WALLSTREET JOURNAL

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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