Vitol CEO predicts slight decline in US oil production this year due lower prices
He said that the lower oil prices will lead to a slight decrease in U.S. production of oil this year. "We're starting to see an impact on production and investment with slightly lower prices." Russell Hardy, speaking at the Energy Asia Conference, said that the U.S. shale oil industry is the most obvious example. He added that the lower investment and production are not a major concern, as OPEC, and other countries have a large amount of extra capacity. According to sources, OPEC+ is planning to increase oil production more quickly than originally planned in May June and July to compete with U.S. shale to regain market share.
Oil industry gathering in Malaysia is shadowed by conflict in Middle East
Energy executives from around the world gathered on Monday in Malaysia's capital for an industry gathering. They were concerned about the dramatic escalation of the conflict between Israel & Iran which has fueled fears that the conflict could spread and disrupt the supply. According to the head of Saudi Arabia's state oil giant Aramco, conflict highlights the importance of oil. He said that the world was concerned about energy security, despite the fact that Israel and Iran were fighting. Israel launched attacks on Iran on Friday, including its nuclear power plants, in an effort to stop Tehran from developing a nuclear weapon.
Baker Hughes sells sensor unit to Crane at $1.15 billion
Baker Hughes announced on Monday that it would sell its Precision Sensors and Instrumentation (PSI), product line to aerospace parts and defense parts manufacturer Crane, for $1.15 Billion. The oilfield services provider is looking to optimize its portfolio. Lorenzo Simonelli, the CEO of Baker Hughes, has been reshaping the company to adapt to global energy transformation. He has shed non-core assets and invested in cleaner energy solutions. Oil industry struggles with low spending on oilfield activities. The company relies on portfolio refinement to increase earnings and cash flow.
Exxon Signs Agreement With Azeri SOCAR to Explore Oil Production
Exxon Mobil and Azeri state energy company SOCAR said on Monday they signed a deal agreeing to explore onshore oil and gas production in Azerbaijan, while BP is expected to buy into new Azeri offshore fields, according to three sources.Azerbaijan's production mainly relies on mature oil fields in the Caspian Sea and the country is aiming to maintain its oil output at around 582,000 barrels per day over the next five years with investment from Western energy companies.At the Baku Energy Week conference, SOCAR and Exxon signed a memorandum of understanding for the exploration…
OPEC+ targets US shale again with output increases
Saudi Arabia and Russia, the group's leaders, are also pushing a secondary objective behind OPEC+’s plan to increase oil production and punish overproducing allies: taking on U.S. shale to win back market shares from the United States. OPEC’s last price war against U.S. producers ten years ago failed, as technological and drilling breakthroughs allowed U.S. shale firms to cut costs, lower prices, and take market share away from the 12-member groups in the years that followed. The U.S. is more susceptible to price wars now. In the last three years, costs have risen for U.S. shale oil producers.
Palm gains capped as weekly losses extend to second week
Malaysian palm futures closed higher on Friday. They reversed earlier losses but recorded a second weekly decline as forecasts for rising production and inventories limited the gains. The benchmark contract for palm oil delivery in July on the Bursa Derivatives exchange rose 14 ringgit or 0.37% to 3,815 Ringgit ($888.45). The contract dropped 1.7% in the last week. Crude palm futures fell earlier in the day as fears over the rising production and stockpiles in the coming week weighed on the market sentiment. David Ng is a proprietary trader with Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.
Palm oil production drops due to concerns about stocks and output. Second weekly loss expected.
Malaysian palm futures fell on Friday, erasing gains made in the first session, as expectations of higher production and inventories in the coming weeks weighed. At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for July delivery fell 12 ringgit or 0.32% to 3,789 Ringgit ($878.10) per metric ton. The contract is on track to record a second weekly decline after losing 1.19% this week. Concerns over the rising production and stock levels in the coming week weighed heavily on the market sentiment. David Ng is a proprietary trader with Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.
House committee makes changes to increase US oil and coal production on federal land
This week, a House of Representatives committee will examine sweeping changes in the nation's drilling programs for oil and gas, including the requirement of dozens of leases sales in the Gulf of Mexico, Alaska and other areas. These changes could be included in upcoming budget bills. The proposal is intended to support President Donald Trump's desire to increase U.S. production of fossil fuels by making it cheaper and easier to drill for oil, gas and coal on federally owned lands and water. What's Next? The House Natural Resources Committee is holding a markup on the energy provisions of the budget reconciliation bill.
Malaysian Minister urges palm oil sector to support biofuel initiative
Malaysia's commodities ministry has called on the palm oil industry in Malaysia to support a biofuel project that turns palm oil wastes into clean energy sources, according to state-run media Bernama. Plantation and Commodities minister Johari Abdul-Ghani revealed that the technology developed by renewable energy company Wilhelmina Malaysia Energy Sdn Bhd based in Netherlands transforms empty fruit bundles (EFBs) collected from palm oil plantations into an energy source. Bernama reports that the plant uses EFB to produce "TG2 black pellet", an environmentally-sustainable drop-in replacement fuel for coal.
US sanctions on Serbia's NIS Oil Firm are lifted
The United States has granted a third waiver of sanctions to the Serbian oil company Naftna Industrija Srbije. It is owned by Russia's Gazprom and Gazprom. NIS has a single refinery with a capacity of 4.8 millions tons per year in Serbia. The crude oil supply is sufficient to cover the majority of Balkan countries' needs. On January 10, the Office of Foreign Assets Control of the U.S. Treasury placed sanctions against Russia's oil industry and gave Gazprom a 45-day deadline to sell its NIS shares. The Serbian government and NIS secured so far two waivers of one month from OFAC in order to try and find a resolution with Russian companies.
Oil industry sources claim that Central Africa's new FX Initiative falls short of its target.
Two oil industry sources said that six Central African nations who were expecting to receive billions in foreign exchange from funds set aside for environmental restoration by oil companies may actually see less than 500 million dollars by the April 30 deadline. Bank of Central African States, the central bank of Cameroon and Gabon, Equatorial Guinea Central African Republic, Republic of Congo, Chad, Gabon and Chad, introduced rules in 2018 governing these funds that are mostly held by foreign banks. The funds in…
Oil advocate withdraws nomination for US Land Bureau
Senator Mike Lee announced at a Senate Hearing on Thursday that oil industry lobbyist Kathleen Sgamma had withdrawn her nomination for the U.S. Bureau of Land Management. Sgamma was scheduled to appear before the Senate Committee on Energy and Natural Resources on Thursday morning to discuss her nomination. Lee announced the news at the beginning of the hearing. Sgamma issued a subsequent statement via Lee's office, which did not provide a reason as to why she resigned. Sgamma stated, "It is an honor that President Trump nominated me as the Director of the Bureau of Land Management.
Trump exempts oil imports from his sweeping tariffs
The White House announced on Wednesday that imports of refined products, oil and gas were exempted by President Donald Trump from his new sweeping tariffs. The exemption is a welcome relief for the U.S. Oil Industry, which was concerned that new taxes could disrupt flow and increase costs of everything from Canadian crude oil to Midwest refineries and European cargoes to the Eastern Seaboard. Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties on the country's largest trading partners. This is a continuation of the trade war he started upon his return to office.
Nigeria namess ex-Shell executive as head of state oil company NNPC
The Nigerian presidency announced on Wednesday that Bola Ahmed Tinubu had appointed Bayo Ojulari as head of the state-owned oil company NNPC Ltd. This is in response to the country's desire to increase oil production and revitalize its refinery capacity. Tinubu, who in his first year as president devalued the naira twice and ended costly subsidies, has now shifted his attention to overhauling state oil company to maximize its contribution to revenue. In a press release, Bayo Onanuga, the presidential spokesperson, said that Mele Kyari is replaced by Ojulari, and this appointment takes effect immediately.
Texas oil and gas upstream jobs increase in February, says industry group
The Texas Independent Producers and Royalty Owners Association, or TIPRO, announced on Friday that upstream oil companies increased hiring in February. This is the second consecutive month of growth. Hiring in upstream, which includes drilling and producing oil activities, can be an indicator of how the oil and gas sector is doing. More drilling could be expected if companies hire more staff. TIPRO represents more than 3,000 independent producers in Texas. The Permian Basin is home to some of the most prolific crude oil production in the United States…
Vucic: Serbia will lose access to oil imports when the deadline for sanctions looms.
Serbia may lose access to essential oil imports as of Friday, after discussions to stop the imposition by the United States of sanctions on its sole oil refinery failed. President Aleksandar Vucic stated this in an interview published. The waiver of sanctions expires at midnight. If it is not extended, NIS, which is owned by Russia's Gazprom and Gazprom in majority, may face a reduction in crude oil supply. NIS is the sole oil refinery in Serbia, with a capacity of 4.8 millions tons per year. This facility covers most of Serbia's energy requirements.
Nigeria’s Refining Revolution is Reshaping West Africa’s Energy Landscape
The launch of the Dangote Refinery near the Port of Lagos presents an exciting opportunity to transform the energy and shipping markets in West Africa. And it stands to boost Nigeria’s role as an influential player in the global oil industry, fostering economic growth and regional development.Nigeria’s standing in the global energy landscape is getting a boost with domestic refining capacity expanding in 2025. The Dangote Refinery near Lagos presents a transformative opportunity for Nigeria’s economy and is expected to reshape global tanker routes and trade flows.The country has long been a leading exporter of crude oil…
Shell plans to deliver gas from Venezuela to Trinidad by 2026, according to sources
Shell Plc aims to start producing natural gas in Venezuela's Dragon field and export it to Trinidad and Tobago, an hour earlier than the initial 2027 start date. The project demonstrates the industry's hope that sanctions against Venezuela will remain in place despite recent tighter enforcement. The people stated that the partners intend to begin survey work in January and decide to drill three wells. They will also need to renew their U.S. licence later this year. U.S. sanctions are aimed at virtually the entire Venezuelan gas and oil industry which is controlled and owned by PDVSA, the state-owned company.
Russell: OPEC and IEA are focused on China's oil demand but it is the crude imports that matter.
What is more important to the crude oil market? Which is more important: the growth forecasts by major agencies of Chinese oil demand or the actual weakness of imports? The International Energy Agency (IEA), as well as the Organization of Petroleum Exporting Countries, (OPEC), both talk about the demand for oil when they forecast the future of the oil industry in China, the largest crude importer of the world. It is a practice that has been around for a while and is not challenged by the market. There is a disconnect in the fact that China's oil exports are actually declining.
Russell: OPEC and IEA are focused on China's oil demand but it is the crude imports that matter.
What is more important to the crude oil market? Which is more important: the growth forecasts by major agencies of Chinese oil demand or the actual weakness of imports? The International Energy Agency (IEA), as well as the Organization of Petroleum Exporting Countries, (OPEC), both talk about the demand for oil when they forecast the future of the oil industry in China, the largest crude importer of the world. It is a practice that has been around for a while and is not challenged by the market. There is a disconnect in the fact that China's oil exports are actually declining.
