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U.S. Stocks Edge Lower

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NEW YORK — Stocks fell slightly Tuesday, with the S&P 500 pulling back from a near-record high, as investors awaited data on consumer confidence.

The Dow Jones Industrial Average slipped 22 points, or 0.1%, to 16186.

The S&P 500 index eased two points, or 0.1%, to 1846, with energy and financial shares leading six of 10 sector groups lower. The Nasdaq Composite Index gained a point, or less than 0.1%, to 4294.

On Monday, the S&P 500 rallied as much as 1.2% to an all-time intraday high of 1858.71, but a late pullback saw gains pared to just 0.6% to 1847.61, missing by a fraction of a point the Jan.15 record closing high of 1848.38. The Dow rose 104 points, or 0.6%, on Monday to close 2.2% below its record high.Stocks have been rallying the past few weeks, in a quick reversal from the selloff seen over the few weeks before, buoyed by stabilization in emerging markets and the belief that recent disappointing U.S. economic data was a result of bad weather in parts of the country. The S&P 500 closed Monday up 6.1% since closing at a 3 1/2-month low on Feb. 3, which marked the end of a 2 1/2-week pullback from the Jan. 15 high.

“We’ve had a tremendous month to get the year back into positive territory,” said Richard Sichel, who oversees $2 billion as chief investment officer at Philadelphia Trust Co.

With little news Tuesday, “the market will likely take a breather, with a small move one way or the other,” Mr. Sichel said. That leaves opportunity to look at individual companies in the news, such as Home Depot and J.P. Morgan Chase, he said.

Dow component Home Depot rose after the home improvement retailer reported fiscal fourth-quarter earnings that exceeded analyst expectations, and announced a 21% increase in its quarterly dividend.

Fellow blue-chip J.P. Morgan fell after the bank said that 6,000 mortgage jobs may be cut this year as the largest U.S. lender adjusts to slowing demand for home loans and declining profitability in that business.

In economic news, the S&P/Case-Shiller 20-City home-price index for December rose 13.4% on a year-over-year basis, compared with expectations of a 13.5% increase.Still on tap, the Conference Board’s consumer-confidence index for February, due at 10 a.m. Eastern, is seen slipping to 80.0 from 80.7 in January.

Jeff Duncan, chief executive officer at Duncan Financial Management, with $300 million in assets under management, said he believes the market will remain stuck in a trading range for quite a while. He said it should be difficult for the market to make a run higher without more earnings momentum. With the weather playing havoc with the economy in recent months, he has been telling clients that it could take months to get a good read on the economy and corporate earnings.

“I believe we’re just going to churn for a while,” Mr. Duncan said. “Not doing anything right now is probably the best medicine.”

The yield on the 10-year Treasury note slipped to 2.719% from 2.750% late Monday.

Gold futures fell 0.3% to $1,334.20 an ounce, after settling on Monday at a nearly four-month high, while crude-oil futures fell 1.1% to $101.71 a barrel. The dollar lost ground against the euro and the yen.

European markets eased from six-year highs seen the previous session, after European Union economists forecast tepid growth for most of the region through 2015. The Stoxx Europe 600 fell 0.1% after closing Monday at the highest level since Jan. 14, 2008.

Germany’s DAX 30 index lost 0.3% and France’s CAC 40 gave up 0.4%. The U.K.’s FTSE 100 slid 0.7%, after closing Monday at the highest level since Dec. 31, 1999.Economists at the European Commission said growth in the euro area is expected to be 1.2% this year and 1.8% in 2015, while euro-zone unemployment is seen staying near record highs of 12% in 2014 and slipping to 11.7% next year.

Separately, data showed that Germany’s economy grew 0.4% in the fourth quarter in adjusted quarterly terms, up from 0.3% the previous quarter and in line with expectations.

Asian markets were mixed. China’s Shanghai Composite fell 2.1%, and has now fallen 5% in four sessions, after the People’s Bank of China drained some liquidity through open-market operations. Japan’s Nikkei Stock Average climbed 1.4%.

In other corporate news, Office Depot tumbled after reporting a surprise fourth-quarter adjusted loss, and revenue that increased less than expected, as expenses related to its merger with OfficeMax increased and margins weakened.

Macy’s gained after the department-store operator’s fiscal fourth-quarter earnings topped estimates, but revenue fell a bit shy, as bad weather hurt sales in January. Still, the retailer’s chief executive expressed optimism that customers would “return to a more normalized pattern of shopping” as weather improves.

Domino’s Pizza jumped after the pizza chain said its profit grew 19% as international business continued to show strength, though its domestic stores lagged behind in comparison.

– 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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