Indonesia is looking for new technologies to improve oil drilling
Officials said that Indonesia issued a new regulation on Tuesday to encourage investment by oil drilling technology providers to increase production at existing wells. Yuliot Tajung, the deputy energy minister, told reporters that this policy aims to reactivate idle wells as part of an effort to increase oil production to one million barrels per daily (bpd) by 2029-2030, from less than 600,000. Indonesia, once a net oil and gas exporter, has seen its production steadily decline over the last decade due to ageing of wells and lack of investment. Under his leadership, President Prabowo subianto wants to achieve energy independence.
Baker Hughes reports that the US oil/gas rig counts fell for a fourth month, to a low of Oct 2021.
Baker Hughes, a leading energy services company, said that the U.S. has cut its number of operating oil and gas rigs for the fourth consecutive month to the lowest level since October 2021. The number of oil and gas drilling rigs, a good indicator of future production, dropped by seven in the week ending June 27. Baker Hughes reported that the number of rigs is down by 34 this week, or about 6% from this time last year. Baker Hughes reported that oil rigs dropped by six this week to 432, their lowest level since October 2021. Gas rigs also decreased by two, to 109.
Baker Hughes reports that US oil/gas rig counts have fallen for the 4th consecutive month, to a low of Oct 2021.
Baker Hughes, a leading energy services company, said that the U.S. has cut its number of operating oil and gas rigs for the fourth consecutive month to the lowest level since October 2021. The number of oil and gas drilling rigs, a good indicator of future production, dropped by seven in the week ending June 27. Baker Hughes reported that oil rigs dropped by six this week to 432, their lowest level since October 2021. Gas rigs also decreased by two, to 109. Drillers cut 16 oil-and-gas rigs in June, bringing the total down for the fourth consecutive month for the first since June 2024.
Shell announces it will not be buying BP and UK rules prohibit bids for six months
Shell denied that it had bid for BP or was actively considering it in a categorical statement on Thursday. It added that it was bound to UK rules, which means such a declaration would prevent it from bidding for BP within the next six-month period. The Wall Street Journal cited on Wednesday sources claiming that Shell was in negotiations to acquire BP. Shell responded by saying no discussions were underway. Shell CEO Wael Sawan said repeatedly that buying back Shell shares is a better way to spend money in response to a possible bid for BP.
Shell announces it will not be buying BP and UK rules prohibit bids for six months
Shell said that it has not made a bid to buy BP, and it is not considering it. It added that it was bound by UK regulation, which means such a statement would prevent it from making a BP bid in the next six-months. The Wall Street Journal cited on Wednesday sources claiming that Shell is in talks to buy BP. Shell responded by saying no talks are taking place. Shell issued a statement saying that "in response to recent media speculation Shell wishes clarify that it had not actively considered making an offer for BP. Shell confirms that it does not intend to make an offer for BP. Shell is therefore bound by Rule 2.8.
US to sell Gulf of Mexico oil and Gas Leases in December
According to the U.S. Bureau of Ocean Energy Management, the Trump administration proposes to sell oil and gas drilling on 80 million acres of the Gulf of Mexico by December 10. Donald Trump has changed the name of the Gulf of Mexico to the Gulf of America. This sale is the first in a five-year drilling program, launched by Biden during the period of the auction. BOEM, an Interior Department division, said that the administration planned to offer approximately 15,000 unleased offshore blocks, located between 3 and 231 miles off shore. BOEM reported that the administration is proposing to charge a royalty of 16.67%. This is the lowest rate in years.
US to sell Gulf of Mexico oil and Gas Leases in December
According to the U.S. Bureau of Ocean Energy Management, the Trump administration proposes to sell oil and gas drilling on 80 million acres of the Gulf of Mexico by December 10. Donald Trump has changed the name of the Gulf of Mexico to the Gulf of America. This sale is the first in a five-year drilling program, launched by Biden during the period of the auction. BOEM, an Interior Department division, said that the administration planned to offer approximately 15,000 unleased offshore blocks, located between 3 and 231 miles off shore. BOEM reported that the administration is proposing to charge a royalty of 16.67%. This is the lowest rate in years.
Shell is in early discussions to purchase rival BP. WSJ reports
The Wall Street Journal reported Wednesday that Shell has begun early discussions to purchase rival BP. This was based on the testimony of people who are familiar with the situation. Shell's American shares depository were down 3.3% as of 1604 GMT. BP's American shares depository were up 6.5%. The report said that BP is evaluating the proposal and has been in active discussions with company representatives. As of Wednesday, BP's market capitalisation was over $80 billion while Shell's was more than $208 billion. Un spokesperson for BP declined to comment.
North Dakota drilling and fracking activity stable as prices fluctuate, state regulator states
In a Tuesday monthly briefing, the state regulator revealed that despite recent volatility in oil prices, the number of frac crews and rigs in North Dakota remained unchanged in June. There are 32 rigs and 13 frac crews currently operating in North Dakota. Baker Hughes, an energy services company, said that the U.S. energy companies last week reduced oil and natural-gas rigs by eight for the week, the first drop since September 2023. North Dakota is third in the nation for oil production. The state Industrial Commission reported that its oil production fell by 22,000 barrels per day (bpd) in April to 1,172,000 BPD. Volatility is difficult for companies to plan.
Sources say that Brazil's Petrobras has held off on raising fuel prices amid tensions with Iran.
Petrobras, the Brazilian oil company, is closely watching geopolitical tensions that have been driving up global oil prices in recent weeks. However, it does not intend to adjust domestic fuel prices at this time, according to two sources. Sources, who spoke on condition of anonymity said that the state run oil giant was waiting for a sustained change in Brent crude price before considering any changes to prices. The global benchmark Brent price fluctuated on Monday. It reached a five-month peak before dropping 1% to $76.31 per barrel. Markets were trying to gauge the effect of U.S. Airstrikes on Iran on the transit of oil via the Strait of Hormuz.
BP and other oil companies pulling staff out of Iraqi oilfields; output remains steady
BP, Eni, and TotalEnergies began evacuating their foreign personnel from the Iraqi oilfields in which they operate on Monday, according to state-run Basra Oil Company. Two oil officials said that the output from Iraq's south oilfields is currently unchanged, with exports of 3.32 million barrels each day. These measures are in response to the U.S. strikes on Iranian nuclear facilities and clashes that have occurred between Israel and Iran which borders Iraq. Kataib Hezbollah, an Iraqi group with ties to Iran, warned that it would re-attack U.S. forces in the area if the United States intervened in Iran.
Norway Oil Drilling Workers agree wage agreement, averting a strike
Norwegian unions reached a wage agreement, which prevented a strike on floating offshore drilling rigs, which would have disrupted exploration. Unions and company representatives announced the agreement Friday evening. The unions said 438 workers from three rigs would strike if talks did not succeed, but that no immediate disruption in oil and gas production is expected. The Norwegian Shipowners' Association and Styrke, Safe and DSO unions have reached a wage agreement that covers more than 7,200 employees. Within days, a strike could have spread beyond the three initial rigs and affected oil and gas production at a future date.
Baker Hughes reports that US drillers have cut their oil and gas rigs in the US for eight weeks running.
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 eighth consecutive week for the first since September 2023. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending June 20 to 554. This is the lowest it has been since November 2020. Baker Hughes reported that the number of rigs is down by 34, or 5.8% from this time last year. Baker Hughes reported that oil rigs dropped by one this week to 438, the lowest level since October 2021. Gas rigs also fell by two, to 111, the lowest level since May 30.
UK Issues Environmental Guidance on New North Sea Oil and Gas Drilling
The UK published long-awaited guidance on environmental issues that will impact future developments of two North Sea oil and natural gas fields, including Shell and Equinor. The guidelines explain how future government decisions on extraction should treat greenhouse gas emissions from oil and gas, also known as downstream emissions or Scope 3. The government ordered the document after a Supreme Court decision last year that said planning authorities had to consider the impact of greenhouse gas emissions when approving a well near Gatwick Airport.
UK releases environmental guidance that will impact North Sea drilling
The UK published environmental guidelines on Thursday, which will impact future developments of two North Sea oil and natural gas fields. Shell and Equinor are among the companies that are expected to benefit. The guidelines outlines how future government decisions on extraction should treat greenhouse gas emissions from oil and gas, also known as downstream emissions. It is a significant step in ensuring that the full impacts of oil and natural gas extraction for potential projects are taken into consideration and we can ensure a managed and prosperous transition to a clean energy future in the North Sea, in accordance with science.
US crude stockpiles slump, products build, EIA says
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped sharply last week while gasoline and distillate stocks rose. The EIA reported that crude inventories dropped by 11.5m barrels, to 420.9m barrels for the week ending on June 13. This was compared to analysts' expectations based on a poll of a 1.8m barrel draw. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 995,00 barrels. Oil futures continued to fall despite EIA figures showing that crude inventories had declined more than expected. Brent crude traded down $1.61 to $74.77 per barrel at 10:37 am EDT (1437 GMT), whereas U.S.
Trump Administration moves to expand oil leasing in Alaska reserve
The Trump administration proposed opening 82% of Alaska's 23-million-acre (9.3-million-hectare) National Petroleum Reserve for oil and gas leasing, a move that would reverse Biden-era efforts to limit drilling in the area, the Interior Department said on Tuesday. The move is in line with President Donald Trump’s energy dominance plan, which aims to increase domestic oil and natural gas production to stimulate economic growth and create jobs. The former administration of Joe Biden had stopped development in certain parts of the reserve (also known as NPR-A) to protect wildlife habitats and the indigenous communities' way of life.
Suppliers threaten shutdown in July due to Pemex payment problems
The Mexican association of major oil service companies has warned it is experiencing an "unprecedented" crisis due to the non-payment by the state-owned Pemex. Pemex is the most indebted oil company in the world. The association, in a letter to President Claudia Sheinbaum that was released on Monday afternoon warned that some of these companies could be forced to cease operations as soon as July. The letter didn't specify how much money was owned by the group members. These include Baker Hughes and Halliburton, Weatherford, SLB Oil & Gas, Grupo Mexico, as well as Weatherford. Pemex is one of Mexico's biggest companies.
Rhino Resources to drill new exploration well off Namibia
A company spokesperson announced on Tuesday that Rhino Resources, an African energy exploration firm, and Azule Energy its partner will drill the Volans-1X offshore Namibia at the end of July or beginning of August. Volans is being explored soon after Rhino Resource struck light oil at its second successful exploration, Capricornus 1X, which was drilled off Namibia's coastline in April. A company spokesperson stated that testing Volans was a priority in order to explore a possible fast-track option. He added that the morphology of Volans could make it easier for developers to exploit.
South Carolina's Republican Governor asks that Trump's offshore drilling plan exclude South Carolina
The Republican Governor of South Carolina appealed Monday to the Trump Administration to exclude his state from an impending plan for offshore oil and natural gas production. The letter was sent as the Administration wrapped up a 45 day request for public input on a federal offshore leasing program. This could include new zones, such as in the Arctic or elsewhere, to maximize domestic energy production. The current plan for five years, which was developed by former president Joe Biden's administration, only includes three sales of rights to develop oil and gas in the Gulf of Mexico.
Baker Hughes reports that US drillers have cut oil/gas drilling rigs by 7th week, to the lowest level since 2021.
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 seventh consecutive week. This is the lowest level since November 2021. The number of oil and gas drilling rigs, a good indicator of future production, dropped by four in the week ending June 13 to 555. Baker Hughes reported that the decline this week brings the total number of rigs down by 35 or 6% from this time last. This week the oil rig count dropped by three, to 439, its lowest level since October 2021. Gas rigs fell by one, to 113.
Baker Hughes reports that US drillers have cut oil/gas drilling rigs by 7th week, to the lowest level since 2021.
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 seventh consecutive week. This is the lowest level since November 2021. The number of oil and gas drilling rigs, a good indicator of future production, dropped by four in the week ending June 13 to 555. Baker Hughes reported that the decline in rig counts this week is 35 rigs, or 6% less than this time last. This week the oil rig count dropped by three, to 439, its lowest level since October 2021. Gas rigs fell by one, to 113. Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S.
White House aide: US Energy Loan Office should fund oil and gas
A White House aide stated on Tuesday that the U.S. Energy Department loan office should finance oil and gas infrastructure. Jarrod Agen said, "One of our biggest problems is that the loan program office was used in the past for many of these renewable energy projects" at a Politico Energy conference. Thanks to the legislation that was passed during Joe Biden's term, the Loan Programs Office has grown rapidly and now has hundreds of millions of dollars of loan and guarantee capacity. Agen stated that the administration has changed the priority of LPO. This is to assist in financing emerging energy projects which show promise, but have difficulty obtaining bank loans.
The new Texas wastewater regulations could increase costs for oil producers
The new guidelines for permitting wastewater disposal wells are likely to increase the costs of oil producers, as the crude price is low. This will be the latest challenge faced by an industry that has seen its output growth slow down as it matures. U.S. oil production has soared to a record 13,4 million barrels a day (bpd), thanks to technological advances that allowed companies to tap into its vast oil reserves. The growth is slowing down, though, as the best oil resources are exhausted, forcing operators to drill in less profitable locations where more water is produced.
EPA wants to give Texas the authority to supervise CO2 injection permits
U.S. Environmental Protection Agency proposed Monday to approve Texas' application for its own permitting of projects to inject underground carbon dioxide, a step long sought after by the state's regulators as well as oil and gas firms with projects in development. EPA Administrator Lee Zeldin stated that Texas was best positioned to protect drinking water from contamination, while allowing lucrative CO2 injection, also known by the name carbon capture and storage projects (CCS), to mitigate climate changes, to proceed. Carbon injection is a method of permanently storing CO2 emissions deep underground from industrial and power plants.
Baker Hughes reports that US oil/gas rig counts have fallen for the 6th consecutive week, to levels not seen since 2021.
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 sixth consecutive week for the first since September 2023. The number of oil and gas drilling rigs, a good indicator of future production, dropped by four in the week ending June 6, to 559, the lowest level since November 2021. Baker Hughes reported that oil rigs dropped by nine this week to 442 while gas rigs increased by five to 114. The company has announced that it has corrected the oil and gas classifications of approximately 8 to 10 rigs located in the Marcellus-Utica basins as of April 4, 2019.
Spain's oil imports from Venezuela dry up before US sanctions deadline
Spain did not import crude oil in Venezuela during April. This was ahead of the key deadline for sanctions set by President Donald Trump’s administration. The United States has revoked the permits of foreign companies operating in Venezuela to export oil. This includes Repsol, the largest Spanish oil company. Repsol has been given until May 27 to cease operations in Venezuela. Repsol received the oil as payment from PDVSA, the state oil company. Cores, the energy and environment ministry of Spain, released data on Friday showing that imports were down in April after a sharp increase in 2024 and in earlier years. Repsol held discussions with U.S.
Mark Tucker, former chairman of HSBC, joins Asia insurer AIA
Mark Tucker, HSBC’s highly-regarded Chairman, will leave the bank and take up a new position as chairman of AIA Group. He was previously CEO of the pan-Asian insurer where he served. HSBC announced that Brendan Nelson, a KPMG former partner and member of its board who chairs the audit committee for the group, will become interim chairman on October 1. On May 1, the bank announced that Tucker would leave before the end the year. However, the statement released on Friday stated that he will depart on September 30, according to the bank. Tucker…
Brendan Nelson, chair of the audit committee at HSBC, is named interim group chairman
HSBC Holdings PLC announced on Friday that Brendan Nelson will be the interim group chairman after Mark Tucker retires from his role on September 30, following his retirement. Tucker will also resign as a member of the board on that date. The process of selecting the permanent HSBC Group Chair, led by Ann Godbehere (a senior independent director), is currently underway, the banking giant announced in a press release. Nelson served previously as a non-executive independent director of several major UK listed companies, including oil giant BP & financial services firm NatWest. HSBC announced on May 1, that Tucker will retire at the end of this year.
Petrobras CEO: Africa will be the main exploration region for Petrobras outside Brazil.
Petrobras wants to develop Africa as its primary region outside Brazil. The CEO of the state-run oil company said this in a broad interview on Thursday. Petrobras CEO Magda Chabriard said that Ivory Coast extended the "red-carpet" to Petrobras when it granted the company the preference for buying nine offshore exploration blocks on Wednesday. She said that Nigeria, Angola and Namibia also expressed an interest in working with Brazil's giant. Chambriard said, "We are experts on the eastern margins of Brazil," citing similar geological features between the region and Africa.
EIA: US crude stocks fall as refiners increase output
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped last week, as oil refiners increased production to coincide with the start the summer driving season. Fuel inventories, however, rose due to a weaker demand. The EIA reported that crude inventories dropped by 4.3 millions barrels, to 436.1 million in the week ending May 30. This was in contrast with the analysts' polled expectations of a draw of 1 million barrels. The EIA reported that refinery crude runs increased by 670,000 barrels a day. Utilization rates also rose 3.2 percentage points, to 93.4%.
Abu Dhabi's XRG aims to reach a gas and LNG capacity of between 20-25 million tonnes per year by 2035
XRG is the international investment arm for Abu Dhabi National Oil Company. The company stated in a Tuesday statement that it aims to have a business of gas and LNG with a production capacity between 20 and 25 million metric tonnes per year by 2035. XRG, a company that invests in lower-carbon energy sources, gases and chemicals with assets exceeding $80 billion, was established last year. The board of the company, which includes former BP CEO Bernard Looney, and Blackstone's Jon Gray on Tuesday, approved a capacity target as well as a five-year plan. The board members supported the evaluation of possible gas acquisitions in North America and LNG opportunities.
