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…
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…
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.
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…
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).
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.
EIA: US crude and gasoline inventories increase, while distillates are drawn down.
The Energy Information Administration (EIA), which is responsible for the U.S. Energy industry, announced on Wednesday that crude oil and gasoline stocks in the United States increased while distillate stockpiles fell. The EIA reported that crude inventories increased by 5.5 millions barrels, to 426,000,000 barrels for the week ending October 18. This was compared to analysts' expectations based on a poll of 270,000 barrels. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 346,000 barrels. U.S. Crude and Brent Futures extended losses following the data.
US fuelmakers report lower profits in Q3 due to weaker margins and fuel demand
Energy analysts predict that the third quarter profits of U.S. refiners will be lower than last year due to a decline in margins, as fuel demand has slowed and more refining capacity is coming online. After the pandemic, and Russia's invasion in Ukraine, which boosted margins at record levels, refiners are now reversing their favorable pricing and high demand. The difference between the product price and the crude oil price for U.S. gasoline, diesel, and jet fuel declined in the third quarter. Margins also fell to seasonal lows that have been in place for several years due to the lackluster summer fuel consumption. The U.S.
Baker Hughes: US drillers have cut oil and gas rigs four times in the last five 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 fourth consecutive week. In the week ending October 18, the oil and gas rig counts, which is an early indicator of future production, dropped by one to 585. Baker Hughes reported that the total number of rigs is down by 39, or 6% from this time last. Baker Hughes' website did not have any additional data about the breakdown of the oil and gas rigs. Baker Hughes officials were not available to comment immediately.
Sources say RPT-BP is considering selling a minority stake in the offshore wind business.
Four sources familiar with the matter have confirmed that BP may sell a minority stake of its offshore wind division. This is the latest move by CEO Murray Auchincloss in his efforts to reduce the company's focus towards renewables. Shareholders have been putting pressure on the company to abandon its 2020 energy transition strategy as profits from renewables are decreasing and margins for oil and gas are increasing. Sources, who spoke on condition of anonymity as the process was private, said that the London-listed oil firm has lined up Bank of America in order to find partners for its business.
Sources say that BP is considering selling a minority stake in the offshore wind business.
Four sources familiar with the matter have confirmed that BP may sell a minority stake of its offshore wind division. This is the latest move by CEO Murray Auchincloss in his efforts to reduce the company's focus towards renewables. Shareholders have been putting pressure on the company to abandon its 2020 energy transition strategy as profits from renewables are decreasing and margins for oil and gas are increasing. Sources, who spoke on condition of anonymity as the process was private, said that the London-listed oil firm has lined up Bank of America in order to find partners for its business.
Sources say that BP is considering selling a minority stake in the offshore wind business.
Four sources familiar with the matter have confirmed that BP may sell a minority stake of its offshore wind division. This is the latest move by CEO Murray Auchincloss in his efforts to reduce the company's focus towards renewables. Shareholders have been putting pressure on the company to abandon its 2020 energy transition strategy as profits from renewables are decreasing and margins for oil and gas are increasing. Sources, who spoke on condition of anonymity as the process was private, said that the London-listed oil firm has enlisted Bank of America in order to find business partners.
US crude, fuel inventories fall last week, EIA
The Energy Information Administration reported on Thursday that U.S. crude, gasoline, and distillate stocks fell last week. The EIA reported that crude inventories dropped by 2.2 millions barrels, to 420.6 million in the week ending Oct. 11. This was in contrast with the analysts' polled expectations of a 1.8-million barrel increase. Crude oil stocks at Cushing, Oklahoma's delivery hub, rose by 108,000 barrels during the past week. Crude production increased by 100,000 barrels per daily (bpd), reaching a record of 13.5 million bpd. Meanwhile, net U.S. imports dropped by 1,04 million bpd and weekly crude exports increased by 329,000 bpd. U.S.
Chubu Electric, Japan, plans to increase its investment in renewable energy and SMR overseas
A company executive revealed that Chubu Electric Power, Japan, plans to invest further in overseas decarbonisation projects, such as renewable energy, small-modular reactors (SMRs), or carbon capture and storage (CCS) to fuel the future growth of the company. Chubu, the major regional electric utility in Japan, announced a long-term plan for 2021. This included a plan to invest 400 billion yen (about $2.7 billion) by the end of this decade on overseas assets, with a goal to make a recurring profit from these assets of 20 billion dollars by 2030.
US energy deals fall to $12 billion in Q3 after a year-long frenzy
Enverus, a leading analytics firm, said that U.S. oil deals slowed dramatically in the last quarter as a result of fewer firms being offered and a consolidation wave lasting ten months. Andrew Dittmar, principal analyst at Enverus Intelligence research, reported that the quarter ending Sept. 30 saw the lowest number of deals in six quarters. After 2023, when $192 billion was spent on deals in West Texas and New Mexico's Permian Basin, the biggest shale formation in the U.S. He added that these mega deals are causing acquirers to review their portfolios in order to eliminate unwanted assets.
Sinopec reports east China's shale field pumps 1,600 tons of oil per day
Sinopec, the state oil group, announced on Wednesday that it is progressing with the development of shale oils at its Jiyang pilot project in east China. The company now pumps 1,600 tons per day, up from just 100 tons in 2020. Sinopec, at this rate, is on course to meet a 2022 target of producing 500,000 tons per year by 2025 in Jiyang. Jiyang is located mainly in Shandong Province and covers 7,300 square kilometers (1.8 million acres). China's oil companies have increased their efforts to extract shale deposits that are difficult to access to compensate for the rapidly depleting older conventional oilfields.
Exxon is looking for buyers of Bakken Shale assets in North Dakota
Exxon Mobil Corp, a major U.S. oil company, plans to sell some of its assets within North Dakota's Bakken Shale Formation. The company announced this on Tuesday. Oil producers are re-evaluating their portfolios after a wave megamergers occurred in the U.S. Shale Patches. They want to determine which assets will remain central to their strategy, and which ones they should divest. In response to questions, a spokesperson for the company said: "ExxonMobil explores market interest for selected assets in North Dakota's Bakken Shale Play.
Nabors Industries, a provider of oilfield services, will purchase Parker Wellbore
Nabors Industries agreed on Tuesday to purchase drilling services provider Parker Wellbore, as the oilfield service company seeks to expand its drilling business globally. The company would buy the privately-held Parker for 4.8 millions shares of Nabors common stock. This was subject to a price cap and assuming a net debt of approximately $100 million. Calculations show that Nabors shares were worth $372.1 Million as of the last close. In morning trading, shares of the company fell 3%. Oilfield service providers are increasingly looking to merge and acquire as they face operational and pricing challenges…
Venture Global won't begin LNG deliveries to Italy Edison until 2025
Italian energy group Edison reported on Monday that U.S. Gas Exporter Venture Global LNG had told it to not expect contract cargoes until April 2025 from its Louisiana export facilities. Edison, along with Shell, BP, and Repsol, has filed contract arbitration against Venture Global over its failure to deliver contracted cargoes more than two years since it began exporting LNG from Calcasieu Pass LNG Plant. Edison signed a contract in September 2017 for a 20-year period to receive LNG produced by the project. However, it has yet to receive any cargoes. Venture Global said it has been selling cargoes produced by the project since March 2022.
Senegal announces a 25-year plan for economic and social development
Senegal’s government released a 25-year plan of development on Monday. It said that the plan would lay the groundwork for economic sovereignty by focusing on competitiveness, resource management sustainability and good governance. The agenda was launched in March, seven months after the West African president Bassirou Diomaye Faye won a landslide victory at elections on the promise of improving livelihoods. He said: "Our... economic model has been neutralised because it relies on exploitation of raw materials, without significant local processing and valorisation.
Azerbaijan's oil production for 9 months down 4.8%, says ministry
Azerbaijan’s oil production fell by 4.8% in the first nine-month period of 2024 to 21.6 millions metric tonnes, down from 22.7million metric tons one year ago, said Energy Minister Parviz Shabazov on Monday. He didn't explain the cause of the decline. Production of oil in Azerbaijan has been declining for several years as the output at Azeri-Chirag-Gunashli complex of offshore oilfields, operated by BP, has passed its peak. Azerbaijan belongs to the OPEC+, a group of major oil producers that has reduced oil production in order to stabilize energy markets.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since four weeks. The number of oil and gas rigs, a good indicator of future production, increased by one in the week ending October 11. Baker Hughes reported that the total number of rigs was down by 36 or 6% compared to this time last. Baker Hughes reported that oil rigs increased by two this week to 481. Gas rigs dropped by one, to 101. Pennsylvania saw two drillers reduce their rigs to 13 - the lowest number since July 2016.
Kansas Fed reports that drilling activity in the US Rockies and Midwest has fallen for the seventh consecutive quarter.
According to survey results released by Federal Reserve Bank of Kansas City on Friday, oil and gas activity in U.S. Midwest Rockies and Midwest declined in the third quarter. This is the seventh consecutive quarterly decline. The survey was conducted in mid-September and covered companies drilling in Kansas as well as Colorado, Nebraska, Oklahoma, and the northern half New Mexico. Chad Wilkerson is the senior vice-president of the Federal Reserve Bank of Kansas. He said that the activity in the region will not be rebounding in the next few months. Wilkerson predicted that activity would increase over the next six-months in the Kansas Fed's last survey.
BP warns that weak margins in refining will hit Q3 profits
BP has said that a decline in the refining margins will reduce its third quarter profit by $400 to 600 million dollars compared to the previous three-month period. In a press release, the British group said that it also expects its oil trading results to be poor. Oil refineries around the world are experiencing a decline in profits that is at a multi-year low. This marks a downward turn for an industry which had seen a surge in returns following the pandemic. It also highlights the global slowdown. Rival Shell warned on Monday of a slump in refinery profit margins as well as weak oil product sales in the third quarter. Exxon Mobil, the U.S.
Shell denied by US regulator the request for documents older than Venture Global LNG
Shell lost its bid on Thursday to obtain access to non-public documents related to Venture Global LNG’s Calcasieu Pass plant. This is a setback to a larger dispute over the access to cargoes coming from the facility. Shell, BP and BP Galp have filed contract arbitration lawsuits in the U.S.A. and Europe over the status and inability of the plant to receive contract cargoes. Shell and other companies claim they lost billions in profits from gas that was promised but not delivered under long-term agreements. Venture Global LNG claims that the Louisiana plant has not been fully commissioned.
Arbitration awards Kosmos Energy Senegal LNG project to BP, as the sole purchaser
Kosmos Energy announced on Tuesday that a Paris arbitrator ruled in favor of BP, preventing Kosmos to sell liquefied gas from the Greater Tortue project off Senegal and Mauritania. LNG is a key part of BP's energy transition strategy. Energy major BP has established a significant LNG pipeline across the globe, including Sub-Saharan Africa. Nigeria, Angola Cameroon, and Equatorial Guinea are already shipping significant volumes. The International Chamber of Commerce was asked to arbitrate a dispute between Kosmos Energy (a U.S. listed oil and gas exploration firm) and BP Gas Marketing (a BP subsidiary) over the planned LNG sales of Phase 1 of GTA.
Ithaca Energy joins Eni's North Sea Business
Ithaca Energy announced on Thursday that it had completed a deal worth 754 million pounds ($993 millions) to purchase nearly all the UK oil and natural gas assets of Eni. This was a 100% share transaction, which created one of the largest independent energy companies operating in the North Sea. Luciano Vasques was the former Eni UK Managing Director and CEO of the combined company. This move is part Eni's'satellite strategy', through which the company has spun off businesses that are focused on certain geographical areas to attract investors.
Gunvor chair: Mideast conflict will not affect oil supply but demand is a concern
The CEO of trading firm Gunvor is confident that the conflict in the Middle East won't impact oil supply. He said this on Tuesday. He told the Gulf Intelligence Energy Markets Forum, held in Fujairah that the situation in the Red Sea and Yemen was a nuisance but not disruptive. The market, he said, was more concerned about the weak demand. Brent crude prices dropped by over 2% on Tuesday, to about $70. The prospect of increased supply and a tepid growth in global demand outweighed concerns regarding the escalating conflict and its impact on crude oil exports from Middle East.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, a former Exxon executive who joined the company in 2021, as part of an oppositional board of directors, has been named CEO of Amber Energy. This Elliott affiliate was announced as the winning bidder at a U.S. Court auction for shares of Citgo parent PDV Holding.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, who was part of the dissident board of directors that joined Exxon 2021, was identified on Friday as CEO of Amber Energy. This Elliott affiliate had been selected as the winning bidder at a U.S. Court auction of Citgo parent PDV Holding shares.
US regulators support Venture Global LNG's claims of equipment failure
U.S. regulators said Venture Global LNG took adequate steps on Friday to correct equipment issues at a Louisiana-based gas-processing facility that have prevented the company from delivering goods to long-term customers under contract for over two years. The Federal Energy Regulatory Commission's findings support the U.S. liquefied gas exporter’s claim that the Calcasieu Pass plant in Louisiana has not been fully commissioned. Venture Global LNG is battling a half-dozen contract arbitration suits from customers regarding the plant's issues.
ConocoPhillips wins approval from a judge for the seizure of payments made to Venezuelan PDVSA
ConocoPhillips won approval from a Trinidad court on Friday to seize payments made by the Caribbean nation to Venezuela's oil company in connection with a proposed offshore project between the two countries. ConocoPhillips is trying to recover money for many years from Petroleos de Venezuela for the expropriation of its assets. PDVSA paid Conoco $700 million as part of a settlement deal, but stopped payments at the end of 2019. Conoco, since then, has tried to enforce arbitral rulings against Venezuelan and PDVSA. This includes a $1.33-billion claim against PDVSA at Trinidad's High Court.
Audit shows Senegal debt and deficit is higher than reported
The Senegal's Economy Minister said that the IMF is currently in discussions with Senegal to discuss corrective measures. An audit showed that the debt and deficit of the country were far greater than what the previous administration reported. Abdourahmane Sarr stated that the audit of Senegal’s finances, ordered by the newly elected President Bassirou Diomaye Faye showed a deficit of over 10% at the end 2023 compared to the 5% reported by the previous government. Faye was elected in April with a massive victory amid public outrage against the former administration of Macky Sall. Investigate the handling of affairs by the previous government.
Sources say that Shell is the preferred bidder in Trinidad for a shallow water block
Three people familiar with the process have confirmed that Trinidad and Tobago has selected Shell as its preferred bidder to bid on a shallow-water block. This bidder beat out BP and EOG Resource. Trinidad and Tobago's natural gas production has declined in recent years, and the country has struggled to supply its petrochemical and liquefied gas plants. The government organized bid rounds and pressed producers to deliver the first output of offshore projects. Shell and BP have the largest stakes in Trinidad's Atlantic LNG Project, which is a 15.3 million ton per year project. They are trying to increase production to ensure feedgas for the trains.
Dallas Fed: Regional oil activity declines but electrification gains.
The Federal Reserve Bank of Dallas reported on Wednesday that oil and gas activity in Texas and Louisiana, as well as New Mexico, decreased in the third quarter. According to executives surveyed, third-quarter oil and natural gas production is mixed. Data suggests that oil production has increased, while gas production has decreased. A fifth of oil executives have said that they have converted their drilling rigs to electric power and are using hydraulic fracturing to reduce pollution. Six percent of oil and gas executives said they plan to electrify production.
EIA reports that US crude, gasoline, and distillate stocks are falling.
The Energy Information Administration reported on Wednesday that U.S. crude, gasoline, and distillate stocks fell last week. The EIA reported that crude inventories dropped by 4.5m barrels, to 413m barrels for the week ending Sept. 20. This was in contrast with the analysts' polled expectations of a 1.4m barrel draw. Last week, U.S. crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), were at their lowest level since April 2022. The EIA reported that stocks at Cushing, Oklahoma's delivery hub for U.S. Crude Futures increased by 116,000 barrels. Following the report, oil futures traded in negative territory.
As a major hurricane approaches, oil companies are evacuating their staff from the Gulf of Mexico.
On Monday, U.S. producers of oil scrambled to evacuate their staff from offshore oil fields in the Gulf of Mexico as the second major storm to hit in two weeks is predicted to ravage them. The U.S. National Hurricane Center stated that a potential Tropical Cyclone over the warm waters of the Gulf could rapidly intensify and become a major Hurricane with winds up to 115 mph (185 kph). According to the NHC, the storm, called Helene, would hit the U.S. at a category 3 on the Saffir Simpson wind scale. It could bring "the risk of life-threatening surges and damaging hurricane force winds" to Florida Panhandle and the Northeastern Gulf Coast.
Hurricanes force oil companies to evacuate staff from the Gulf of Mexico
U.S. Oil Producers scrambled to evacuate their staff from Gulf of Mexico platforms on Monday as forecasters warned that the second major hurricane within two weeks would likely tear into offshore oil fields. The U.S. National Hurricane Center stated that a potential Tropical Cyclone System Nine, near the western tip of Cuba, was expected to intensify into a Hurricane on Wednesday as it moved across the eastern Gulf of Mexico. The NHC says that it could turn into a major hurricane by the time it reaches the Northeastern Gulf Coast.
Texas sues Biden Administration over lizards' endangered status, citing oil industry threat
Texas Attorney General Ken Paxton filed a lawsuit against the Biden administration Monday, claiming that the decision to declare the dunes sagebrush Lizard as an endangered species could harm property owners or energy production. Paxton, who is a Republican, claimed that the U.S. Fish and Wildlife Service based its final rule, adopted on May 20, on inaccurate data and arbitrary assumptions regarding the future of the lizard. He said that the move would threaten the ability of private landowners to conduct business, while also ensuring the survival of the lizard in its vast geographic range which overlaps the Permian basin…
TotalEnergies begins early production of Fenix gas in Argentina
TotalEnergies, a French oil company, said that natural gas production had begun earlier than expected at Argentina's Fenix off-shore field. The $700-million project was originally scheduled to start operating in November. It has a daily production capacity of 10,000,000 cubic meters of gas, which represents 8% of Argentina’s total production. Gas from the Fenix Field off Argentina's southern coast will be used for domestic consumption. Argentina is trying to reduce imports and deregulate prices locally, encourage energy investment, and become a LNG exporter.
Analysts say that Colombia must develop a natgas plan soon to prevent blackouts.
If it wants to prevent power blackouts in Colombia, the head of Wood Mackenzie’s Americas Gas and LNG division said that Colombia needs to decide quickly whether it will focus on LNG imports or promote domestic production of natural gas. Colombia, under leftist president Gustavo Petro has moved away fracking in order to develop its reserves shale oil and gas. A Santa Marta court judge ordered earlier this month that work be suspended on a major offshore gas project run by Ecopetrol, the state-controlled company and Brazil's Petrobras.
