BP and Iraq agree on technical terms for redeveloping Kirkuk oilfields
The British oil giant BP announced on Thursday that it had reached an agreement with the Iraqi Government on the technical conditions for redeveloping the Kirkuk Oil and Gas Fields. In August, the company signed an agreement to explore and develop the Kirkuk oilfield located in the north of Iraq. This will include the construction of solar power plants and other energy infrastructure. Sources have said that unlike historic contracts, which offer foreign companies razor thin margins, new agreements will include a generous profit sharing model. Iraq is the second largest oil producer after Saudi Arabia in the Organization of Petroleum Exporting Countries.
North Dakota oil plants slow to return online after wildfires in October
The state's Industrial Commission reported on Wednesday that oil operators in North Dakota are still working to bring some of their facilities online after wildfires in October swept through counties with significant oil production. According to Justin Kringstad of the North Dakota Pipeline Authority, the outages were limited to isolated production sites such as well pads that experienced local equipment damage, or a loss in electricity due to damaged electrical lines. Mark Bohrer is the assistant director of North Dakota Department of Mineral Resources' oil and gas division.
North Dakota oil operators are still bringing back some facilities online after wildfires in October
The state's Industrial Commission reported on Wednesday that oil operators in North Dakota are still working to bring some of their facilities online after wildfires in October ravaged key oil-producing counties. Mark Bohrer is the assistant director of North Dakota Department of Mineral Resources' oil and gas division. He said that the October production in the state was down by 520,000 bbls. This was primarily due to operators closing in wells in order to prevent damage from wildfires. Bohrer said that the (drop in production) number is significant.
US graphite miners ask Washington to impose tariffs of 920% on Chinese competitors
On Wednesday, North American miners of graphite asked the U.S. Government to impose tariffs as high as 92% on Chinese suppliers for the battery metal to combat what they call Beijing's "malicious" trade practices. This is the latest effort by Western suppliers of critical minerals to counter China's control over the extraction and processing of building blocks used in electric vehicles and electronic devices. Graphite can be produced synthetically or from natural sources. China is the world's largest producer of both types of graphite and has tightened its exports to the U.S. earlier this month.
Oil Climbs After US Crude Stocks Fall
Oil edged up on Wednesday after a drop in U.S. crude inventories, and as investors eyed a potential interest rate cut by the U.S. Federal Reserve while weighing its projections for 2025.Brent futures were up 62 cents, or 0.85%, to $73.81 a barrel at 10:40 a.m. ET, while U.S. West Texas Intermediate crude was up 86 cents, or 1.23%, to $70.94.U.S. crude stocks and distillate inventories fell while gasoline inventories rose in the week ending Dec. 13, the Energy Information Administration (EIA) said on Wednesday.Crude inventories fell by 934…
ADNOC Drilling partners with SLB and Patterson-UTI to form a 'unconventional energy venture'
ADNOC Drilling, a division of the state oil company in the United Arab Emirates, announced on Tuesday that it had signed an agreement for Turnwell Industries - a joint venture between oilfield service firms SLB, Patterson-UTI, and ADNOC Drilling. ADNOC Drilling owns 55% of the company, which was created to access unconventional energy resources such as oil and gas requiring advanced extraction techniques. SLB owns 30% of the company, while Patterson-UTI holds 15%. ADNOC Drilling reported that Abu Dhabi is estimated to have 220 billion barrels unconventional oil and 460 trillion cubic feet of unconventional natural gas.
Oil Falls as Chinese Demand Sags, Fed Ponders Rate Cut
Oil futures slipped from the highest levels in several weeks on Monday on weakness in consumer spending in China, which is the world's largest oil importer, and as investors paused buying ahead of the U.S. Federal Reserve's interest rate decision.Brent crude futures fell 39 cents to $74.10 a barrel by 1:10 p.m EST, after settling on Friday at their highest since Nov. 22.U.S. West Texas Intermediate crude shed 35 cents to $70.94 after registering its highest close since Nov. 7 in the previous session.Last week, oil benefited from the expectation that supply would tighten with additional sanctions on crude producers Russia and Iran…
Sources say that the US study is likely to refrain from concluding that LNG exports are not in the public interest.
Two industry sources familiar with the matter said that the administration of President Joe Biden will release a report on Tuesday regarding the export of liquefied gas. The study is not expected to conclude that the trade does not serve the public's interest. Biden halted in January the Department of Energy’s approvals of U.S. LNG imports to major consumers in Asia, Europe and the Middle East in order to allow his administration to study the economic and environmental impacts of this booming industry. Donald Trump, the president-elect, has stated that he is against this pause and will act quickly to reverse it.
Phillips 66 sells stake in Texas pipeline to $865 million
Phillips 66 announced on Monday that it will sell its 25% stake of the Gulf Coast Express pipeline, located in Texas, to an ArcLight Capital Partners affiliate for $865 millions. This puts the U.S. refiner in a position to surpass its asset sale goal. Phillips 66, despite a decline in refinery profits, has chosen to maintain stable payouts for investors by reducing costs and setting a target of $3 billion via non-core assets sales. Before Monday's announcement, the company had already sold fuel stations, pipelines and a share in a joint venture retailing in Switzerland to raise $2.7billion.
Arcius Energy, a joint venture between BP and ADNOC’s XRG, will supply Egypt's gas.
BP and Abu Dhabi National Oil Company’s international investment arm XRG announced on Monday that they had closed a deal to create a natural gas joint-venture in Egypt. ADNOC is expanding its efforts abroad. Arcius Energy is a joint venture owned by BP (51%), and XRG (49%). The joint venture will initially operate in Egypt. Naser Saif Al Yafei is a former ADNOC executive who was appointed as Arcius CEO. Most recently, he was responsible for strategy, sustainability, and transformation in ADNOC Gas. Katerina papalexandri was named chief financial officer. She is BP's vice president for gas and low-carbon energy growth.
Kansai electric, a Japanese company, has invested in Iberdrola’s offshore wind project worth 1.3 billion euros.
The company announced on Friday that Japan's Kansai electric power Co had agreed to purchase a 49 percent stake in Iberdrola’s Windanker offshore project in Germany. This agreement expands a partnership between the Spanish renewable energy giant and the Japanese firm. The wind farm, located in the German portion of the Baltic Sea will have a capacity installed of 315 Megawatts. It is expected to begin operating at the end of 2026. Kansai has not disclosed the amount it paid for its share. Iberdrola will retain 51% of the project and values it at 1.3 billion euro. This is Kansai's fifth offshore wind project, bringing the total offshore wind capacity to 3 gigawatts.
Shell to Add Two Wells at GoM Perdido Platform
Shell said on Thursday its unit has made a final investment decision to add two wells at the Perdido platform in the U.S. Gulf of Mexico to boost production.The Shell unit, which operates the Perdido platform, said the two wells are expected to produce up to 6,000 barrels of oil equivalent per day at peak rates.The wells will be located in the Silvertip Frio reservoir, where Shell is the operator with a 40% stake and Chevron holds the remaining 60%. First production from the wells is expected in 2026.
Exxon CEO: We want to extract value from Hess Guyana's assets
Two of Exxon Mobil's top executives stated on Wednesday that they wanted to "participate in" Hess Corp. selling its Guyana oil assets and extract value from its work developing the country offshore fields. In May, a three-person panel will decide whether Hess can proceed with its deal to sell to Chevron on the original terms. Exxon and CNOOC Ltd have challenged the deal, which is the second largest in recent oil megamergers. "We calculated the value of this asset." Exxon CEO Darren Woods said to Wall Street analysts that we have the right, in this transaction to take into consideration the value of the asset and then to exercise an option on it.
Equinor, BP and TotalEnergies invest in Britain's carbon-capture projects
They announced on Tuesday that Equinor, BP, and TotalEnergies have made the final investment decisions for two of Britain's first projects to capture and store carbon in the north. The Northern Endurance Partnership Project, which is a joint venture between the three companies, will store carbon dioxide permanently for an initial amount of 4 million tonnes per year. Equinor holds 45% of NEP. BP has 45%, and TotalEnergies 10%. Equinor, BP and BP are also partners on the Net Zero Teeside Power Project. This project is a 742 megawatts (MW), gas-fired plant with carbon capture. BP owns 75% of this project and Equinor 25%.
British Business – Dec 10,
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. BP will spin off its offshore wind business and form a joint venture worth $5,8 billion with Jera, a Japanese energy company. Vivendi's shareholders approved the separation of Canal+ and Vivendi, with the aim to list the Paris-based firm in London on Monday. Sky UK has signed a multi-year agreement with Warner Bros Discovery. Under the deal, Sky's parent Comcast will bundle WBD's Max service and Discovery+ for Sky subscribers starting April 2026.
BP's offshore Wind Head to Step Down
A spokesperson for BP announced on Monday that Matthias Bausenwein, the head of offshore winds, is leaving the firm. This comes after the oil giant announced its intention to spin off its offshore operations into a JERA-JERA joint venture. Bausenwein, who joined BP in August 2022 from the Danish renewables giant Orsted, will lead BP's expansion of offshore wind project. Anja-Isabel Dotzenrath - a former CEO at RWE Renewables - left the company last April after less than two years on the job. The spokesperson confirmed that Richard Sandford will be taking on the interim role of offshore wind. He also joined BP from RWE Renewables in 2022.
TWMA Appoints Group Commercial Director
Drilling waste management specialist, TWMA, has announced the appointment of Jonathan Parkes as its new Group Commercial Director. This strategic hire comes as the Aberdeen-based company continues to build on a period of rapid international growth and expansion.Joining the company in October 2024, Jonathan brings 20 years of commercial and strategic expertise across the energy market. His new role follows seven years at an energy, maritime and defence company where he held the position of Divisional Director.His extensive experience and proven…
Oil Rises as Syria's Assad Departs, China eases Monetary Policy
Oil prices rose by nearly 2% on Monday on increased geopolitical risk after the fall of Syrian President Bashar al-Assad, and as top importer China flagged its first move towards a loosened monetary policy stance since 2010.Brent crude futures were up $1.34, or 1.9%, to $72.46 per barrel at 11:25 a.m. ET (1625 GMT). U.S. West Texas Intermediate (WTI) crude futures CLc1 were up $1.5, or 2.23%, to $68.70."Events in Syria over the weekend could impact the crude market and increase the geopolitical risk premium on oil prices in the weeks and months to come amid yet more instability in the Middle East region…
Petrobras Slashes Platform Decommissioning Budget
Brazil's state-run oil firm Petrobras PETR4.SA cut $1.1 billion in planned investments in decommissioning oil and gas platforms in its strategic plan for the 2025-2029 period, compared to what was earmarked in its 2024-2028 plan, the company told Reuters.Petrobras expects to invest $9.9 billion in platform decommissioning through 2029, compared with more than $11 billion previously estimated for the 2024-2028 period.The plan now is to decommission 10 floating platforms, down from 23 originally. Seven of the platforms are located in Brazil's Campos basin…
Oil Slips, Weekly Loss Looms
Oil prices fell 1% on Friday and were headed for a weekly loss as analysts projected a supply surplus next year despite an OPEC+ decision to delay output hikes and extend deep production cuts to the end of 2026.Brent crude futures were down 85 cents, or 1%, to $71.24 per barrel at 11:04 a.m. EST. U.S. West Texas Intermediate crude futures CLc1 were down 92 cents, or 1%, to $67.38 per barrel.For the week, Brent was on track to fall by more than 2%, while WTI was on course for a nearly 1% drop.On Thursday, the Organization of the Petroleum Exporting…
Sources say that BP is looking for buyers to buy its US Natural Gas Pipeline System stake.
Four people familiar with the matter have confirmed that BP is looking for buyers to take a stake in their U.S. Natural Gas Pipeline Network. Two people have said that the British energy company may be able to raise $3 billion through the sale. One of them added that BP could sell as much as a 49 percent stake in its business. Two other people confirmed that the sale is part of BP's CEO Murray Auchincloss’s efforts to reduce the debt levels at the company, which have risen in the last year. BP refused to comment. The four individuals spoke under the condition of anonymity, as they had not been authorized to speak in public.
Sechin, Rosneft's boss, says that targets and costs are a hindrance to the appeal of green energy.
Igor Sechin is a well-known sceptic of green energy and the boss of Russia's largest oil producer Rosneft. He believes that investors are losing interest in clean energy because of elusive targets, high cost and lack of funding. Russia, the world's largest producer of oil, natural gas and coal, as well as China, have set targets to achieve carbon neutrality in 2060. This is 10 years later than other developed countries. The Russian president Vladimir Putin criticised the green movements in Europe for exploiting people's fears over climate change. He also questioned Germany's commitment towards phasing-out coal.
Source: Bank sold US oil futures worth $270 million ahead of OPEC+ meeting.
One bank sold large volumes of U.S. Oil Futures Contracts in early afternoon trading Wednesday, according to a source with direct knowledge. This caused prices to drop more than 1% in minutes, and traders scrambled to figure out the reason. The transaction, which took place just hours before an OPEC+ virtual conference at which the group was expected to extend its supply cuts to the end of first quarter, had traders scrambling for the reason behind the sale. A person stated that the bank sold 4,000 barrels of U.S. West Texas Intermediate Crude Oil Futures at $69.21 per barrel in a single transaction around 1 p.m. EST (1800 GMT).
Oil Rises on Lebanon Fears, possible OPEC cuts
Oil prices rose more than 2% on Tuesday as Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses, and as investors positioned for OPEC+ to announce an extension of supply cuts this week.Brent crude futures posted their biggest gains in two weeks, rising by $1.79, or 2.5%, to settle at $73.62 a barrel. U.S. West Texas Intermediate crude futures also rose the most since Nov. 18, gaining $1.84, or 2.7%, to close at $69.94 per barrel.Israeli forces have continued strikes against what they say are Hezbollah fighters ignoring last week's truce agreement in Lebanon.
LNG traders divert cargoes to Asia from Europe as demand in the east increases
Analysts and shipping data indicate that three LNG cargoes bound for Europe were diverted to Asia in order to meet the stronger Asian demand, and because gas prices have decreased in Europe. The rapid change of course shows the agility of the trading firms to send LNG supplies either to Europe or Asia. As Asian prices rise, the arbitrage window for sending U.S. and African Liquefied Natural Gas to Asia opens. The price of a million British thermal unit (mmBtu), the most expensive this year, rose to $15.00 per mmBtu on Friday due to colder temperatures in North Asia.
QatarEnergy signs LNG long-term deal with Shell to deliver LNG to China
State-owned QatarEnergy signed a long-term agreement with Shell, the oil and gas giant, to supply LNG to China. QatarEnergy said in a Monday statement that the deal will see the LNG supply increase to three million tons per year. The agreement is expected to begin in January 2025. QatarEnergy said that the agreement highlighted the continued growth in China's market for LNG, but did say how long it would last. Four sources in the industry and trading have confirmed that Shell will use these volumes to supply its China portfolio. China is the largest LNG importer in the world.
EIA reports that US oil production fell by the most in September since January.
The U.S. Energy Information Administration's (EIA) data showed that the crude oil production in the United States fell by 157,000 barrels a day (bpd), month-over-month, to 13,20 million bpd during September. This was the biggest decline since January. As Hurricane Francine, and Hurricane Helene made landfall in the Gulf of Mexico in September, many oil and gas facilities were forced to close for extended periods of time. EIA data released on Friday showed that output from the U.S. Gulf of Mexico offshore fell by 12% in September, to 1,58 million bpd. This is the lowest level in three years.
Brazil will offer 91 oil blocks permanently
Brazil's Ministry of Mines and Energy said in a statement on Friday that it will sell 91 oil blocks permanently. This could result in signing bonuses of up to 2.4 billion Reis ($394.11m) at the next auction. The government will offer 39 blocks within the Sao Francisco Basin of Minas Gerais, 41 blocks, and a marginal accumulating field in Rio Grande do Norte's Potiguar Basin, as well as 11 blocks located in Brazil's pre-salt region. Companies can bid on a block in the permanent offer model. These blocks will be included in the next auction cycle scheduled for 2025.
Mexican firefighters put out a second fire at Pemex in a week
The fire at the refinery of Pemex, Mexico's state oil company, has been put out, according to both the firm and authorities on Thursday. No injuries have been reported. Pemex has not yet revealed what caused the accident at its Minatitlan Refinery, located in eastern Veracruz State. The refinery can process up 285,000 barrels of oil per day. Pemex stated in a press release that the fire did not affect its employees or facilities. When contacted, the firm declined to comment on whether or not production had been affected at the refinery. This week, a separate fire broke out in the Salina Cruz refinery of Pemex in southwest Oaxaca.
President says Mexico is experimenting with different payment methods for Pemex debt
On Thursday, Mexican President Claudia Sheinbaum announced that Pemex's debt burden with its suppliers will be reviewed. She also said that various payment methods are being refined and studied. Despite the efforts made by Sheinbaum’s predecessor Andres Lopez Obrador to reduce the debt, the company is still one of the most indebted companies in the world. She said, "A review is taking place, and that is normal", during her usual news conference. The association representing the interests of some the most important oil services providers in Mexico has asked the state company Pemex for a payment of 103.6 billion pesos (about $5 billion) of overdue debts.
Energean CEO urges Israel issue new oil and Gas Exploration Licences
Energean, a gas company based in Israel, urged Israel on Thursday to issue new oil and gas exploration licenses offshore to meet the growing demand for gas in the region. Mathios rigas also called upon governments to develop new routes of export from Israel to Egypt and Cyprus. "We need to talk to the government (Israeli) about new licenses and exploration because we have to find more natural gas." Rigas stated that we need to develop additional gas. Energean reported on Thursday that it produced 153,000 barrels equivalent to oil per day during the first 10 month of this year.
Woodside CEO: Louisiana LNG project to be partnered with several companies by March
Woodside Energy's CEO said that the company expects to have several partners in its Louisiana liquefied gas project by the time it gives financial approval to the U.S. Project, which is expected to be the first quarter of 2020. Woodside, a company listed in Australia, is looking to sell 50% of its Louisiana LNG project. It now owns the entire project after acquiring Tellurian Inc. for $1.2 billion in October. The U.S. Gulf Coast plant could convert U.S. Shale Gas into up to 27,7 million tons of LNG per year. Woodside has held talks with U.S.
US energy lobby groups cautious about Trump tariffs
The U.S. oil industry said that they are concerned about President-elect Donald Trump’s threats to impose tariffs on Canada, Mexico and the United States, stating that such policies may affect consumers, industries and security. Trump, who will take office on January 20, has promised to impose a tariff of 25% on imports coming from Canada and Mexico. These are two of America's largest trading partners. He said he would do this until these countries crack down on drugs - particularly fentanyl - and migrants at the border. This move appears to be in violation with a free trade agreement.
Chinse CNPC aims to produce 12.4 mln bbls at shale project, according to state media
China's state-owned energy group CNPC aims at producing 1.7 million metric tonnes of shale crude oil or 12.4 millions barrels in the next year as part of a pilot project, according to a report by Xinhua, the state news agency. The Jimsar Shale Gas Project, located in Junggar Basin, is one of three pilot shale oil projects that state oil companies are trying develop. Other two projects are Gulong, in northeast China, and Jiyang, in east China. According to Xinhua, CNPC produced 1.011 millions tons of oil at Jimsar this year, which is 7.4 million barrels. China's shale-gas resources are believed to be massive.
Looney, former BP boss, to lead US data company Prometheus Hyperscale
The U.S. data company announced on Sunday that former BP CEO Bernard Looney will chair Prometheus Hyperscale. Prometheus Hyperscale announced that Looney, the former CEO of British energy giant BP, resigned from his position in 2023, after serving four years as the company's chief executive, for failing to disclose all details about past personal relationships. He will now provide strategic guidance in developing the growth plans of the data-driven firm. Prometheus Hyperscale announced that Looney's new position will include assisting with work at the company’s $10 billion flagship data center in Evanston Wyoming.
Sources: Petrobras is in discussions with Raizen, BP, and Inpasa about a joint venture for ethanol
Two sources familiar with the matter said that Brazilian state-run Petrobras was in discussions with Raizen, BP, and Inpasa about a potential joint venture for ethanol. Earlier that day, Petrobras' director of energy transformation, Mauricio tolmasquim, told reporters that the company was investigating a joint venture for ethanol. He did not name the companies with which it might partner. Petrobras Raizen BP Inpasa and BP did not respond immediately to comments. Tolmasquim said that Petrobras plans to invest $2.2 billion over the next five-year period in ethanol distilleries.
US drillers reduce oil and gas rigs in the US for the second week running - Baker Hughes
Baker Hughes, a leading energy services company, said that the U.S. firms have cut back on the number of natural gas and oil rigs for the second week running for the first since early October. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending November 22 to 583, the lowest level since early September. This brings the total number of rigs down by 39 or 6% from this time last. Baker Hughes reported that oil rigs increased by one this week to 479, while gas-rigs decreased by two to 98.
BP and its partners invest $7 billion into a carbon capture project in Indonesian Papua
BP and its partners announced that they will invest $7 billion into a carbon-capture project and the development of gas fields in Indonesia's easternmost Papua Region, which could unlock an additional 3 trillion cubic feet in gas resources. The British oil producer announced its investment in London on Thursday during a meeting between President Prabowo Subito, who was visiting London. The company said that production at Ubadari is expected to begin in 2028. Gas from the field will be processed in the Tangguh liquefied gas plant in West Papua.
Indonesian regulator confirms Tangguh LNG disruption
Indonesia's upstream gas and oil regulator SKK Migas confirmed that there was an outage on the third train at BP's Tangguh liquefied gas (LNG), facility in West Papua. It said operations would begin to resume from Saturday. Hudi Suryodipuro, spokesperson for SKK Migas, said on Thursday that an accident occurred on Train 3 Tangguh LNG in November 16 due to instrumentation problems at an onshore reception facility. This caused an emergency shut-off valve to be closed. Hudi said that after repairs were carried out by the BP team, and the startup process was completed, a leak in the actuator was discovered. This required parts to be repaired and replaced.
US Judge Proposes CITGO Auction Solution
The U.S. judge overseeing an auction of shares in a Citgo Petroleum parent to pay Venezuela-linked creditors on Wednesday proposed major procedural changes to advance a case stalled by wide opposition and lawsuits by creditors in other courts.Judge Leonard Stark recommended a series of changes to encourage higher bids in a seven-year-long court case brought by companies pursuing up to $21.3 billion in claims for debt defaults and expropriations in Venezuela.An up to $7.3 billion bid by an affiliate of activist investor Elliott Investment Management could soon be challenged by the court's recommendation to choose a "starting point bidder" to move forward with the auction.
EIA: US Crude, Gasoline Inventories Rise
U.S. crude oil and gasoline inventories last week rose more than forecast, while distillate stockpiles posted a larger-than-expected draw, the Energy Information Administration said on Wednesday.Crude inventories rose by 545,000 barrels to 430.3 million barrels in the week ended Nov. 15, the EIA said, compared with analysts' expectations in a Reuters poll for a 138,000-barrel rise.Crude stocks at the Cushing, Oklahoma, delivery hub fell by 140,000 barrels in the week, the EIA said. Net U.S. crude imports rose last week by 237,000 barrels per day to 3.3 million bpd…
Rystad reports that oil majors have over 40 biofuel projects planned by 2030.
Rystad, a consultancy, said that major oil and gas companies are investing more in biofuels, betting on sustainable aircraft fuel (SAF). By 2030, 43 projects should be completed, the report stated. Energy research firm says that industry giants like ExxonMobil and Shell could increase production by 286,000 barrels a day. SAF is produced by using wastes and residues like organic crops or used cooking oils. It emits the exact same amount of CO2 as kerosene. It is considered to be less polluting because it is made from plants or leftovers, rather than new oil that releases more greenhouse gases.
Sources say that Whiting refinery, a BP facility in Indiana, is delaying its return to service.
Industry sources say that the return to service for BP Whiting Indiana refinery is delayed. BP began the planned turnaround activity for its refinery that produces 435,000 barrels per day in late September. In early November, the refinery restarted units that were involved in the turnaround. Sources claim that at least two units are experiencing startup delays. Sources said that the refinery's 250,000 barrels per calendar day (bcd), sour crude distillation unit, and its 102,000 bcd coker had issues with the restart. These units should be online by this week. Whiting, the largest refinery in the Midwest of the United States, produces liquid fuels.
Chris Wright, CEO of the oil industry, is appointed Energy Secretary by Trump
Donald Trump, the President-elect, announced on Saturday that Chris Wright, an oil and gas executive who is a staunch supporter of fossil fuels, will be his choice to lead the Department of Energy. Wright is the founder of Liberty Energy in Denver, a firm that provides oilfield services. He will likely support Trump's plans to increase oil and gas production and seek ways to increase electricity generation, which is on the rise for the first decade. He will also probably share Trump's opposition against global cooperation in fighting climate change.
Baker Hughes: US drillers reduce oil and gas rigs in the US for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. oil and gas companies have cut back on the number of oil rigs for the first time since four weeks. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending Nov. 15 to 584, the lowest level since early September. This is a reduction of 34 rigs, or 6% from the same time last year. Baker Hughes reported that oil rigs dropped by one this week to 478. This is their lowest level since the week of July 19. Gas rigs were also down by one, to 101.
TotalEnergies and BP, Equinor, and Shell each commit $500 mln for energy access
TotalEnergies BP Shell Equinor, oil and gas giants BP and Equinor, pledged to invest $500m on Friday in order to increase the availability of affordable energy, primarily for sub-Saharan Africa and south and southeast Asia. The announcement was made at the United Nations COP29 Climate Summit in Azerbaijan where discussions have focused on raising $1 Trillion in climate finance to assist developing countries from richer nations. TotalEnergies has declined to reveal the name of the global private equity firm that will manage the fund, but says the $500 million will be distributed over several years through tenders for energy-related projects.
US crude stockpiles jump, fuel posts surprise drawdown, EIA says
The Energy Information Administration (EIA), which released its report on Thursday, said that U.S. crude stockpiles increased more than expected, while gasoline and distillate inventories showed unexpected declines. The EIA reported that crude inventories increased by 2.1m barrels, to 429.7m barrels during the week ending Nov. 8. This was compared to analysts' expectations based on a poll of 750,000 barrels. The Cushing, Oklahoma delivery hub for U.S. Crude Futures saw a drop of 688,000 barrels. Exports increased by 590,000. Brent and U.S. Crude futures edged up after the data revealed the surprise withdrawal in fuel stockpiles.
Devon Energy expects US crude oil to be priced between $60 and $80 per barrel in the near future
The benchmark U.S. WestTex Intermediate (WTI), crude oil, will be $60-$80 a barrel for the foreseeable future. This was what Devon Energy's Chief Executive Officer told attendees of an energy conference held in Dallas on Tuesday. This price forecast falls within the range of U.S. crude oil prices that have been traded throughout the majority of this year. On Wednesday, it settled at $68.43 per barrel. Richard Muncrief, CEO of Devon in Oklahoma City, said that crude demand will grow modestly by 2025, compared with 2024. He was speaking at a conference organized by the Federal Reserve Banks of Dallas & Kansas City.
Report: Senior aide of Argentina's Milei claims Shell is eyeing LNG investment
According to the newspaper La Nacion, the cabinet chief of Argentine president Javier Milei cited Shell as a possible investor in a future liquefied gas (LNG), project that will be managed by YPF, Argentina's state-owned oil company. La Nacion reported that Guillermo Francos, the Cabinet Chief, said during an event the major energy company had shown "strong interest" for a possible LNG investment in the nation. Cynthia Babski, Shell's spokesperson in an email, said: "We are constantly exploring opportunities to enhance our portfolio." The company refused to provide any further details on its agreements and activities.
Report: Senior aide of Argentina's Milei claims Shell is eyeing LNG investment
According to the newspaper La Nacion, the cabinet chief of Argentine president Javier Milei cited Shell as a possible investor in a future liquefied gas (LNG), project that will be managed by YPF, Argentina's state-owned oil company. La Nacion reported that Guillermo Francos, the Cabinet Chief, said during an event the major energy company had shown "strong interest" for a possible LNG investment in the nation. Cynthia Babski, Shell's spokesperson in an email, said: "We are constantly exploring opportunities to enhance our portfolio." The company refused to provide any further details on its agreements and activities.
EIA increases US and global oil production estimates by a small amount
The U.S. Energy Information Administration announced on Wednesday that both U.S. oil production and global oil output are expected to reach record highs in this year, slightly higher than previous forecasts. Oil prices have fallen to their lowest level since 2021 despite the Organization of the Petroleum Exporting Countries (OPEC+) and its allies cutting production. The EIA reported that the U.S. oil production is expected to reach an average of 13.23 million barrels a day (bpd), which is about 300,000 more than last year's 12.93 million bpd record. The EIA had earlier predicted that U.S. crude oil production would average 13,22 million barrels per day (bpd) this year.
Analyst says US onshore wind industry is struggling despite government push to clean energy
Geoffrey Hebertson told attendees of an energy conference organized by the Federal Reserve Banks of Dallas & Kansas City that the Onshore Wind Industry is still struggling to attract investment despite the U.S. Inflation Reduction Act. Hebertson stated that despite the Inflation Reduction Act of 2022, which allowed production tax credits and investments tax credits for 10 years, onshore wind is still struggling to maintain its investment levels. He added, "We expect 2024 will be a historically-low year for wind. According to the U.S. Energy Information Administration, the installed wind power capacity in the U.S. currently stands at 152 gigawatts.
US oil industry calls on Trump to abandon Biden's climate policies
The U.S. Oil and Gas Industry on Tuesday called for President-elect Donald Trump's revocation of many policies implemented by President Joe Biden to combat climate change. They said the measures threatened jobs, consumer choices and energy security. The American Petroleum Institute, the nation's largest oil and gas trade association, has urged the incoming Trump administration to remove vehicle emission standards designed to encourage the auto industry to make more electric vehicles. It also urged Trump to lift the pause on liquefied gas export permits and work with Congress on repealing a fee for methane emissions during drilling operations.
US oil industry calls on Trump to abandon Biden's climate policies
The U.S. Oil and Gas Industry on Tuesday called for President-elect Donald Trump's revocation of many policies proposed by President Joe Biden to combat climate change. They said the measures threatened jobs, consumer choices and energy security. The American Petroleum Institute, the nation's largest oil and gas trade association, has urged the incoming Trump administration to remove vehicle emission standards designed to encourage the auto industry to make more electric vehicles. It also urged Trump to lift the pause on export licenses for liquefied gas facilities, and to work with Congress to eliminate a fee on drilling methane emissions.
BP's efforts to reduce renewables will not affect the JV with EnBW
The joint venture between BP and EnBW, which is a partnership in offshore wind energy, will not be affected by BP's current efforts to reduce its renewables activities, said the finance chief of the German utility on Tuesday. In 2021, the two companies entered into a partnership of 50:50 to develop offshore wind farms in Britain. They have agreements in place for the lease of two 60-year leases on the Irish Sea and an option agreement to lease another lease in North Sea. The three projects, Morven, Morgan and Mona cover a potential generation capacity that is 5.9 gigawatts. This would be enough to power approximately 6 million UK homes.
As Biden's term ends, the US introduces a methane tax on gas and oil emitters.
The U.S. administration of President Joe Biden finalized on Tuesday a fee for large oil and gas companies to reduce emissions of this powerful greenhouse gas. However, the incoming Trump presidency is likely to scrap the fee. The methane tax is one of the last measures taken by the administration to combat the second most common greenhouse gas, after carbon dioxide. This gas tends to leak undetected into the atmosphere from drilling sites, gas pipes and other oil and natural gas equipment. The fee will be $900 per metric tonne of methane emissions in 2024. It will increase to $1200 in 2025 and to $1500 in 2026.
US federal energy revenues to fall 10% by 2024 but remain among the highest ever
The U.S. Interior Department reported that federal revenue from energy production in public lands and water fell 10% to $16.4 billion during the last fiscal year. Interior Department announced on Friday. This was the fourth-highest year since 1982, and the lowest total since 2021. Biden's administration has implemented policies that will help the transition from fossil fuels to renewable energy sources, while reducing new leasing of federal lands. Donald Trump, the President-elect Donald Trump, has pledged to increase oil and gas production through a relaxation of regulations. In the fiscal year that ended September, the U.S.
Oil Dips 2% as Hurricane Fears Ease
Oil prices fell more than 2% on Friday as traders grew less fearful of prolonged supply disruptions from a hurricane in the U.S. Gulf of Mexico, while China's latest economic-stimulus packages failed to impress some oil traders.U.S. West Texas Intermediate futures CLc1 led the decline, down 2.8%, or $2.01, at 70.35 per barrel by 1:32 p.m. ET (1832 GMT) . Global benchmark Brent crude futures LCOc1 fell 2.3%, or $1.77, to $73.86 per barrel.Energy producers shut in more than 22% of oil output in the U.S. Gulf of Mexico by Thursday as a precautionary measure to brace against Hurricane Rafael…
Baker Hughes: US Rig Count Remains Steady
U.S. energy firms this week kept the number of oil and natural gas rigs operating unchanged for a record third week in a row, according to energy services firm Baker Hughes' data going back to 1987.The oil and gas rig count, an early indicator of future output, was steady at 585 in the week to Nov. 8, Baker Hughes said on Friday. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year. Baker Hughes said oil rigs held at 479 this week, while gas rigs were unchanged at 102.The oil and gas rig count dropped about 20% in 2023 after rising by 33% in 2022 and 67% in 2021…
YPF, the Argentine oil company, is focusing on Vaca Muerta and a production boost by 2025.
The CEO of Argentina's state-owned oil company YPF, Horacio Martin, said that the firm expects shale production to rise by 30 to 40 percent next year. Marin said that YPF, during a conference call to discuss its financial results, will concentrate its capital investments in its main shale resources, specifically the massive Vaca Muerta Formation. Vaca Muerta has the second largest shale-oil reserve in the world and is also home to one of the largest shale-gas reserves. YPF has been leading the activity in this area with hopes of making it a major exporter of energy. Marin stated that we expect to increase unconventional oil production by 30 to 40%.
Angola LNG is considering expansion as gas supply increases
Angola Liquefied Natural Gas is looking at future expansion options, including adding a three-million-metric ton mini train, as gas supplies ramp up in the plant over the next year. The plant will reach full capacity by 2025, thanks to extra supplies from Chevron and the New Gas Consortium. Africa's second largest crude producer is planning to shift more towards natural gases to capture the growing demand on key markets in Europe, Asia and Africa. Angola's LNG plant was built at a cost $12 billion more than 10 years ago. It has run below its capacity nameplate for many years due to the decline in gas production at the mature fields that supply the facility.
US prepares for second oil and Gas Auction in Alaska Refuge
Interior Department announced on Wednesday that the Biden administration had taken a major step toward holding the required sale of oil-and-gas leases in a wildlife refuge in Alaska by publishing a final environment review. The analysis presented a preferred scenario in which the agency offered 400,000 acres of land to drillers. This is the minimum permitted under a law passed in 2017 that required oil and gas leases sales within the Arctic National Wildlife Refuge, including one before the end 2024. The Interior Department of U.S. president Joe Biden set in motion the analysis in 2021.
Texas voters elect conservative Craddick as oil regulator
Texas reelected Christi Craddick, a conservative incumbent in her third term as the state's chief oil regulator. This is a victory for the industry which has seen its production increase during her tenure. According to the most recent government statistics, Texas, which is home to the Permian basin, is the United States' largest oil producer, producing around 5.8 million barrels of crude oil per day. The Texas Railroad Commission, which Craddick is set to chair for six more years, regulates this industry. It oversees everything from pipeline safety to well permitting. Craddick defeated Democrat Katherine Culbert and Green Party member Eddie Espinoza.
EIA reports that US crude, gasoline, and distillate stocks rose last week.
The Energy Information Administration (EIA), which released its report on Wednesday, said that the U.S. crude, gasoline, and distillate inventory increased last week. The EIA reported that crude inventories increased by 2.1 millions barrels, to 427.7million barrels during the week ended Nov. 1. This was a far cry from the 1.1 million barrels analysts had predicted in a recent poll. Crude oil stocks at Cushing, Oklahoma's delivery hub, rose by 522,000 barrels during the past week. U.S. crude oil prices rose after the report. Brent crude futures traded at $75.66 per barrel by 10:45 am EST (1545 GMT), up 13 cents.
OPEC is optimistic about global oil demand and does not see a peak in sight
Haitham Al Ghais, secretary general of the Organization of Petroleum Exporting Countries in Abu Dhabi, said that oil demand is expected to be very high in the near and medium term. He said that while there are challenges, the overall picture is not as bad as it sounds. The so-called "peak demand" will not occur as long as the global economy grows. Ghais stated that the oil producing group was optimistic about the global economy. He noted growth in the U.S. as well as in China. He reiterated that he does not expect the demand to peak anytime soon. "It makes me think of the discussions about peak supply that took place many years ago.
Exxon and Chevron are expected to top Q3 profits as US oil production hits a record high
Exxon Mobil, a U.S.-based oil producer, and Chevron, a U.S.-based fuel company, posted higher-than-expected profits for the third quarter on Friday. This was due to soaring U.S. crude oil production, which cushioned soaring fuel prices. Both companies focused on increasing oil and gas production, while rivals BP & Shell invested heavily in wind, solar & renewables. These investments have not yet paid off. The two U.S. firms have both benefited from the acquisition of smaller oil companies. Despite their surging production, they could face a challenge in the near future from an uncertain demand…
Chevron exceeds expectations for quarterly profits on the back of higher oil production
Chevron Corp. beat Wall Street expectations for the third quarter profit on Friday. However, its earnings dropped from a previous year. Chevron Corp, which has had its proposed $53 billion takeover of Hess delayed by Exxon Mobil Ltd and CNOOC Ltd due to their challenge, reported a profit adjusted of $4.53 billion. This compares to $5.72 million a year earlier. The shares rose by 2.6% ahead of normal trading hours. The oil industry has seen profits fall this year as a result of lower crude prices and a weaker growth in fuel demand. Oil futures for the quarter ending Sept. 30, averaged 17% less than the previous quarter.
US crude, fuel inventories fall last week, EIA says
The Energy Information Administration (EIA), which released its report on Wednesday, said that the U.S. crude, gasoline, and distillate inventory fell last week. The EIA reported that crude inventories dropped by 515,000 barrels, to 425.5 millions barrels for the week ending October 25. This was in contrast with the analysts' polled expectations of a rise of 2.3 million barrels. Crude oil stocks at Cushing, Oklahoma's delivery hub, rose by 681,000 bbls. Exports increased by 149,000 barrels per day, to 4,26 million bpd. The futures for U.S. Crude and Brent crude were not significantly affected by the report.
UK increases windfall taxes on North Sea Oil and Gas Producers
Finance Minister Rachel Reeves said on Wednesday that the British government would increase its windfall tax for North Sea oil-and-gas producers from 35% to 38% and extend it by one year. Reeves, who presented the first budget of the new Labour Government, said that the increase in the windfall tax - also known as the Energy Profits Levy - will come into effect on November 1. The headline tax rate for oil and gas activity is now 78%. This is among the highest rates in the world. The duration of the law will be extended an additional year, until March 2030.
Aker BP Q3 profits fall short of forecasts, but output guidance is raised
Aker BP, a Norwegian oil company owned in part by BP, reported a larger-than-expected drop in operating profit for the third quarter. It also said that full-year production would be at or above its guidance. A poll of analysts conducted by the company showed that an average of $1.89 billion was expected. The company reported a third-quarter output of 414.700 boed, down from the 449.800 boed it had a year ago, due to maintenance planned at several fields. Aker BP expects the production to increase in the fourth quarter. The company increased its guidance for full-year production to 430…
China's CNOOC signs contract for oil development in Iraq's Block 7
CNOOC Ltd, a Chinese company, announced Wednesday that it had signed an Exploration, Development & Production Contract with Iraq's State-run Midland Oil Company for the exploration of oil and gas in the Block 7 Field. CNOOC Africa Holding Ltd, the state oil and gas company's fully owned unit, will hold 100% interests and act as the operator for the 6,300-square-kilometer Block 7, located in central Iraq's Diwaniyah province. CNOOC won the bid to explore the block as part of Iraq's licensing round, which was a recent policy shift in which Baghdad began offering profit sharing with partners, instead of technical service contracts.
Deep sea oil drilling drillers are now subject to new safety regulations in the US
The Bureau of Safety and Environmental Enforcement, or BSEE, released new rules on Tuesday for U.S. off-shore drillers. This is because breakthrough technology allows them to operate in extreme subsea conditions and unlock untapped oil reserves worth billions of dollars. BSEE final rule was issued after Chevron, in August, started production on its Anchor asset. It is owned by TotalEnergies and it was the first project ever to operate with 20,000 pounds per sq inch (PSI) pressure. The reservoir depths reached 34,000 feet (10.363 m). Analysts have stated that the new technology may unlock 5 billion barrels previously unaccessible crude worldwide…
Mexico's Pemex reports a larger third-quarter Loss of $8.2 billion
According to a filing at the Mexican stock exchange on Tuesday, the state-owned Mexican oil company Pemex posted a larger 161.3 billion peso (approximately $8.2 billion) net loss for the third quarter, compared with losses of approximately $4.5 billion during the same period last year. The country's largest company generated revenues of 426.1 billion pesos between July and September. The company reported that its debts for the last three months totaled $97.3 Billion. Claudia Sheinbaum, the new president, took office at beginning of this month. She has pledged to continue supporting Pemex as her predecessor did.
BP's third quarter profits slump to $2.3 bln due to a decline in oil demand
BP reported higher than expected third quarter profits, $2.3 billion. This is their lowest profit in nearly four years. The drop in refinery profits and the weakening of oil trading were to blame. The drop of 30% in profits compared to a year ago is due to a slowdown on the global economy and in oil demand in particular in China. This puts pressure on CEO Murray Auchincloss, who has pledged that BP will improve its performance in response investor concerns about its energy transformation strategy. BP's underlying net profit (defined as the replacement cost profit by the company) reached $2.27billion in the third-quarter…
Baker Hughes will supply pipe systems for Brazil's Petrobras
Baker Hughes, a provider of oilfield services, announced on Monday that it had signed an agreement with Petrobras to provide 77 kilometers (47.85miles) of flexible pipe system for Brazil's Santos Basin pre-salt field. Santos Basin, an offshore oil and gas-rich region off Brazil's southeast Atlantic coast. The basin is the largest in the country and has attracted major investment from oil and gas producers around the world including Shell, CNOOC, and TotalEnergies. Baker Hughes' agreement with Petrobras to provide flexible pipes systems and oilfield services, signed in April, is the latest Baker Hughes contract this year.
Norway's wealth funds falls short of climate ambitions according to NGO
A non-governmental organization said that the world's biggest sovereign wealth fund has failed to meet its own climate goals by not voting in favor of shareholder resolutions this year during AGM season. The fund, which has a value of $1.8 trillion, pools revenues from the Nordic states' oil and gas production. It aims to have the 9,000 companies that it invests in reach zero greenhouse gas emissions in 2050 in accordance with the Paris Agreement. Norges Bank Investment Management, the fund management company, has set expectations for corporate boards and voting at the annual general meeting on climate change as part of their strategy.
Baker Hughes reports that the US oil/gas rig counts are stable this week. Pennsylvania has fallen to a 17-year low.
Baker Hughes, a closely watched energy services company, said that the U.S. firms maintained the same number of oil and gas rigs this week. The count fell to a low not seen in Pennsylvania for 17 years, according to its report. The number of oil and gas drilling rigs, a good indicator of future production, was 585 during the week ending October 25. Baker Hughes reported that the total number of workers was down by 40 or 6% compared to this time last. This week, oil rigs dropped by two - to 480 - while gas rigs grew by two – to 101. Drillers in Pennsylvania, which produces mainly gas, have cut down one drill rig.
Petrobras wants to increase the output of Tupi oilfield to 1 million barrels per day by 2027
Petrobras, the state-owned firm in Brazil, plans to increase oil production from its Tupi oilfield to 1,000,000 barrels per day (bbls) by 2027. It plans new investments to be made into this asset. Tupi, located in deep water offshore, is Brazil's biggest oil field by production (832,600 bpd), although its output has declined over the last few years. Director Sylvia dos Anjos told in an interview that Petrobras wants to return Tupi production to 1,000,000 bpd. She added that Petrobras plans to increase production at the field by drilling more wells.
Equinor Q3 profit drops 13%, lagging forecast
Equinor reported a sharper-than-expected 13% decline in third-quarter profit on Thursday, hit by weaker oil prices and lower production, and cut its full-year outlook for capital expenditure and renewable energy production growth. Equinor's poll of 25 analysts found that the adjusted earnings for the period July-September fell from $7.93 to $6.89. This is below the $7.08 billion estimated by Equinor. The organic capital expenditure for 2024 has been revised down to between $12 billion and 13 billion dollars, from the previous forecast of 13.5 billion. The company stated that the oil and gas production would remain unchanged from last year in 2024.
Bloomberg News: Transocean and Seadrill in merger talks
Bloomberg News reported Wednesday that offshore drilling provider Transocean was in merger talks with Seadrill Ltd. The report came from people who were familiar with the situation. It said that the companies are currently discussing the possible structure of a merger. Bloomberg reported that a final decision had not yet been made, and the companies may choose to remain independently. Seadrill or Transocean didn't immediately respond to comments. Transocean shares listed in the U.S. rose by 4.1% following the bell, while Seadrill grew by 10.3%. Seadrill's market capitalization was $2.42 billion on Wednesday. Transocean had a value of $3.60 billion.
