Cenovus Energy reports 56% drop in quarterly profits on lower production
Cenovus Energy, a Canadian oil and natural gas producer, reported a 56% drop in its third-quarter profits on Thursday. This was due to lower commodity prices and a decrease in production volumes and throughput. Global Brent crude averaged $78,3 per barrel during the quarter reported, a drop of nearly 9% from a year ago, while Canadian gas prices plummeted to their lowest levels in over two years. Cenovus reported that its total upstream output was 771.300 barrels equivalent per day (boepd), down from 797,000 a year ago. Canada's oil-sands refineries and projects undergo maintenance or turnarounds that often require a temporary shutdown of production.
NiSource's profit beats expectations for the third quarter on increased demand for electricity
NiSource, an electric and gas utility, beat Wall Street expectations for the third-quarter profits on Wednesday. This was due to higher residential and industrial power demand. The U.S. Energy Information Administration expects that power consumption will reach record levels in 2024 and 25. This is due to the demand for AI technology, data centers and rising electricity usage in homes and business amid record temperatures. NiSource's gas distribution revenues increased by 1.2%, to $531m. Total operating revenues rose nearly 5% in the quarter of July-September to $1.08b.
New Mexico considers oil drilling restrictions which would reduce output and revenue
New Mexico is the second largest oil producer in the U.S. A leading economist released this week a study about potential drilling restrictions. The study showed that they could affect up to 5,4% of the future crude production and cost billions in revenue. The study evaluated the setback proposals that were made during the legislative session of 2024, which would limit how close operators could drill to certain environmental and structural areas. These setbacks are designed to protect the public against oil and gas pollution. The topic was complex and needed more time for evaluation and analysis than what we provided in the session. Ismael T.
New Mexico considers oil drilling restrictions which would reduce output and revenue
New Mexico's chief economic officer said in a recent report that the state is currently studying new drilling restrictions. These could affect up to 5.4% its future crude production and cost the state billions in revenue. The study looked at proposed setbacks, or restrictions on how near operators can drill certain structures and areas of the environment. These are meant to protect people from oil and gas contamination. Ismael T. Torres is the chief economist for New Mexico Legislative Finance Committee. He says that in 2026, the setbacks analyzed in this report will take place and more than one-third of new wells won't be put into production.
Oil prices rise, recovering some of the 7% drop from last week
The oil prices increased on Monday as the Middle East conflict continued and markets were worried about the supply of crude from the region. Brent crude futures rose 58 cents or 0.79% to $73.63 per barrel at 11:02 am ET. ET (15:02 GMT). U.S. West Texas Intermediate Crude Futures were up 67 cents or almost 1% at $69.89 per barrel. Brent closed the week more than 7% down, while WTI fell around 8%. These were the biggest weekly drops since September 2, due to a slowdown in economic growth in China, and lower risk premiums in Middle East. Medical…
US offers conditional loans guarantees of up to $3 billion for two sustainable aviation fuels projects
The U.S. Department of Energy announced on Wednesday that it had approved conditional loan guarantees totaling almost $3 billion for two projects involving sustainable aviation fuel. Loan Programs Office of the agency said that the funding up to $1.44billion to Calumet would support its expansion in Montana. The facility will use vegetable oils, fats and greases in order to produce SAF (renewable diesel) and renewable naphtha. The agency stated that if the loan guarantee is finalized, it will fund the expansion of the facility to produce approximately 315 million gallons of biofuels per year, of which the majority will be SAF. The White House wants to meet the U.S.
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.
Russia says it is too early to tell if the market will be ready for additional oil in Dec
Alexander Novak, the Russian Deputy Premier, said that it was still too early to determine if the market will need the additional volumes of oil the OPEC+ group plans to produce beginning in December. His comments could set the stage for a discussion on whether or not to implement the increase in oil production agreed upon by the group. He said the group, including Russia and Saudi Arabia included, had not discussed any changes to agreement on the gradual phase-out of oil production cuts beginning in December. OPEC+ cut its output by a total amount of 5,86 million barrels per daily (bpd), which is about 5.7%, of the global demand.
EIA: US natgas production will decline in 2024 as demand reaches record levels, EIA reports
The U.S. Energy Information Administration's (EIA's) Short Term Energy Outlook, released on Tuesday, predicted that U.S. Natural Gas production would decline by 2024 and demand would rise to a new record. EIA projects that dry gas production in the US will fall from a record high of 103.8 billion cubic foot per day (bcfd), in 2023, to 103.5 bcfd by 2024. In March, the number of people who were unemployed fell to its lowest level in 32 years. EIA's projected production for 2025 is 104.6 bcfd. The agency also predicted that domestic gas consumption will rise from a new record of 89.1 Bcfd by 2023, to 90.1 Bcfd by 2024, before falling back to 89.1 Bcfd by 2025.
EIA: US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration's (EIA's) Short Term Energy Outlook, released on Tuesday, predicted that the U.S. electricity consumption would reach record levels in 2024-2025. EIA projects that the demand for electricity will increase to 4,093 kilowatt hours (kWh) by 2024, and 4,163 kWh by 2025. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022. EIA predicted that by 2024, the number of power sales for residential customers would increase to 1,503 billions kWh, while commercial customers will see 1,412 billions kWh and industrial customers 1,033 billions kWh.
EIA: Harvest season will boost US demand for distillate fuel oil in autumn
The U.S. Energy Information Administration stated on Friday that the consumption of distillate fuel oil is expected to rise in autumn, as diesel-powered equipment is used for harvesting and transporting crops. EIA stated that the EIA has found that the harvest peaks in mid-October, and continues through November. This coincides with the beginning of winter heating season, which also drives demand for distillate fuel oil. The weak demand for diesel in the United States has led to a sharp decline in refiners' margins. This is because industrial consumption has decreased due to a slowdown in economic activity, and renewable diesel has gained popularity.
Natural gas producers ask Harris for answers on the battleground state
Drillers from Pennsylvania, an energy-rich state, called on Democratic presidential nominee Kamala Harris this week to explain her stance on natural gas. The energy industry touts it as a clean fuel but climate activists claim that the fuel is a threat to global warming. In January, President Joe Biden froze new LNG export permits to examine their environmental impact. This was a move made in the election year in order to gain support from the green voting blocs of his party. Harris is now facing Donald Trump, a Republican who has stated that he will immediately lift the freeze on permits if elected.
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, the most productive oil region in the United States.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 5 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added the most oil and gas rigs in a week in the past year. In the week ending Sept. 13, the oil and gas rig counts, a good indicator of future production, increased by eight to 590. This is a return to levels seen in mid-June. This was the largest increase since the week of Sept. 15, 2023. Baker Hughes reported that despite this week's increase in rigs the total number was still 51 rigs or 8% below last year at this time. Baker Hughes reported that oil rigs increased by five this week to 488. Gas rigs also rose by three, to 97.
EIA: US power consumption expected to hit record levels in 2024 and 25
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, published on Tuesday, said that the U.S. electricity consumption will reach new records by 2024 and 2025. The EIA projects that power consumption will increase to 4,101 billion Kilowatt Hours (kWh) by 2024, and 4,185 billion in 2025, due to the growing demand for power from data centers, manufacturing, and electrification in transportation and buildings. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022. Rising instances of extreme weather…
EIA: US natgas production to decline by 2024, while demand will rise to record levels
The U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook for 2024 predicts that natural gas production in the United States will decrease in 2024, while demand will reach a new record. EIA projects that dry gas production in the US will fall from a record high of 103.8 billion cubic foot per day (bcfd), in 2023, to 103.4 bcfd by 2024. This is because several producers have reduced drilling activities following spot gas prices at Henry Hub benchmark. In March, the number of people in poverty fell to its lowest level for 25 years. EIA's projected production for 2025 is 104.8 bcfd.
EIA: US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, released on Tuesday, predicted that the U.S. electricity consumption would reach record levels in 2024-2025. EIA projects that the demand for electricity will increase to 4,101 billion Kilowatt Hours (kWh) by 2024, and 4,185 billion in 2025. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022. EIA predicted that by 2024, the number of residential customers would increase to 1,503 billions kWh, while commercial customers will see 1,413 billions kWh and industrial customers 1,039 billions kWh.
EIA: Permian Basin gas capacity will increase with the launch of Matterhorn pipeline
The U.S. Energy Information Administration said Tuesday that the Matterhorn Express Pipeline is expected to begin operating in this month. Matterhorn, in a joint venture between Whitewater, EnLink Midstream and MPLX will transport natural gases from the Permian basin to Katy, near Houston, Texas. The pipeline can transport 2.5 billion cubic feet of natural gas per day. EIA estimates that by increasing the capacity of the Permian Gas Takeaway, the Matterhorn Pipeline could narrow or eliminate the difference in price between Waha Hub and Henry Hub.
US LNG Export Dominance Tested as Europe's Demand Wilts
The United States has remained the largest exporter of liquefied natural gas (LNG) so far in 2024, but a steep drop in selling prices and a sharp swing in export volumes to key markets is likely testing exporter appetite to stay on top.The United States shipped a record 56.9 million metric tons of LNG during the first eight months of 2024, according to Kpler.That surpassed the 54.3 million tons from Australia and 53.7 million tons from Qatar during that period, and marks only the second straight year that U.S. exporters have topped global export rankings.However…
Oil prices continue to fall on the prospect of increased OPEC+ supplies
The oil prices continued to fall on Monday as investors weighed higher OPEC+ output in October against a sharp decline in Libyan production amid sluggish demands in China and the U.S. Brent crude futures dropped 57 cents or 0.7% to $76.36 per barrel at 0108 GMT, while U.S. West Texas Intermediate Crude fell 50 cents or 0.7% to $73.05 per barrel. Last week, Brent fell by 0.3% and WTI dropped 1.7%. Six sources within the producer group have confirmed that the Organization of the Petroleum Exporting Countries (OPEC+) is planning to increase oil production starting in October.
