OilPrice

Why We Won’t See An Oil War In The South China Sea

Barrels of ink have been spilled covering the geopolitical conflicts in the South China Sea over the past few years, with plenty of speculation over whether these diplomatic tensions could explode into genuine warfare as China pushes further and further into the territory. The disputed area includes both islands and maritime areas that are the subject of contentious claims on the part of Brunei, Taiwan, Indonesia, Malaysia, the Philippines, and Vietnam.  The main source of these tensions has arisen from China’s continued military presence…

China Is Using The Pandemic As An Excuse To Not Buy U.S. Energy

Back in June, we reported that China had begun ramping up imports of U.S. LNG ostensibly in a bid to fulfill the January trade agreement with Washington and possibly avert another full-blown trade war.  According to Wood Mackenzie via NGI, China took in 10 LNG cargoes from U.S. suppliers between April and May at the expense of its traditional suppliers, including Turkmenistan and Uzbekistan. But it’s now emerging that the LNG purchases could have been a mere smokescreen. Reuters has reported that China’s imports of U.S. energy…

Exxon: 20 Percent Of Global Oil And Gas Reserves May Be Wiped Out

After a grim Q2 season for Big Oil, the world’s third-most valuable energy company is warning that 20% of the world’s oil and gas reserves may no longer be viable, according to Bloomberg. According to Exxon Mobil, one-fifth of the world’s oil and gas reserves will no longer qualify as “proved reserves” at the end of this year if oil prices fail to recover before then. A flurry of oil and gas companies have written off billions in oil and gas assets as the value of those assets in the current oil price climate is no…

20% Of Global Oil & Gas Reserves Could Be Wiped Out If Crude Prices Don’t Recove

After a grim Q2 season for Big Oil, the world’s third-most valuable energy company is warning that 20% of the world’s oil and gas reserves may no longer be viable, according to Bloomberg. According to Exxon Mobil, one-fifth of the world’s oil and gas reserves will no longer qualify as “proved reserves” at the end of this year if oil prices fail to recover before then. A flurry of oil and gas companies have written off billions in oil and gas assets as the value of those assets in the current oil price climate is no…

Is Natural Gas Still The Fuel Of The Future?

BP now says it will reduce its oil and gas production by 40 percent by 2030 as part of its pivot to low-carbon operations. But many will wonder why natural gas--the bridge between our fossil fuel present and renewable energy future--is being included on the chopping block.  Despite its much lower emissions footprint, natural gas is also under threat not only by the bare fundamentals, but by the trends shaping energy policies. The EU Green New Deal is perhaps the best example of these trends and their effect on future fossil fuel demand, including…

Argentina Scrambles To Salvage Its Shale Boom

Only two years ago analysts were hailing Argentina’s emerging shale oil boom, which many believed would be the next major petroleum frontier in Latin America. The vast Vaca Muerta, or Dead Cow in English, shale formation, which skirts Argentina’s semi-arid Patagonian steppe, is compared to the smaller prolific Permian shale. The EIA estimates that the formation has technically recoverable resources of 16 billion barrels of oil and 308 trillion cubic feet of natural gas. The Vaca Muerta is an enormous resource, ranked as the world’s…

Russia’s Largest Coal Mine Gets Unexpected New Owner

It might not be a secret to anyone that Russia’s coal industry has been pivoting towards Asia – domestic utilization of the country’s vast coal reserves is stagnant at best, however its exports towards China, Japan and other Asia Pacific consumers have been increasing at a constant rate, recurring crises notwithstanding. Yet up until now Russia’s coal industry was functioning in a conventional way, whereby both production and exports were carried out by coal-focused companies, with little to no interference from firms from…

Natural Gas Has Replaced Over 100 U.S. Coal Plants In The Last Decade

A total of 103 coal-fired power plants were converted to natural gas or replaced by natural gas-fired plants in the United States since 2011, the Energy Information Administration (EIA) said on Wednesday. Natural gas has displaced the majority of the 121 coal-fired plants that have been converted to burning other types of fuels over the past decade, according to EIA estimates.   A decade ago, at the end of 2010, the U.S. had 316.8 gigawatts (GW) of coal-fired capacity in the United States. By the end of 2019, as much as 49.2 GW of that capacity…

Exxon To Halt Employee Savings Plan Match To Cut Costs

U.S. oil supermajor ExxonMobil will start suspending the employer match to the retirement savings plans of its employees in October, people who received the notification told Reuters. Kevin Steele, News Anchor at ‎KBMT TV, posted on Facebook a photo of a message from Exxon referring to the suspension of the company’s contributions to the 401K Savings Plan.   “Given the current business environment, the corporation is taking steps to reduce costs,” says Exxon’s message, seen by Reuters. “The company intends…

Exxon To Halt Employee Savings Plan Match To Cut Costs

U.S. oil supermajor ExxonMobil will start suspending the employer match to the retirement savings plans of its employees in October, people who received the notification told Reuters. Kevin Steele, News Anchor at ‎KBMT TV, posted on Facebook a photo of a message from Exxon referring to the suspension of the company’s contributions to the 401K Savings Plan.   “Given the current business environment, the corporation is taking steps to reduce costs,” says Exxon’s message, seen by Reuters. “The company intends…

Exxon To Halt Employee Savings Plan Match To Cut Costs

U.S. oil supermajor ExxonMobil will start suspending the employer match to the retirement savings plans of its employees in October, people who received the notification told Reuters. Kevin Steele, News Anchor at ‎KBMT TV, posted on Facebook a photo of a message from Exxon referring to the suspension of the company’s contributions to the 401K Savings Plan.   “Given the current business environment, the corporation is taking steps to reduce costs,” says Exxon’s message, seen by Reuters. “The company intends…

Exxon To Halt Employee Savings Plan Match To Cut Costs

U.S. oil supermajor ExxonMobil will start suspending the employer match to the retirement savings plans of its employees in October, people who received the notification told Reuters. Kevin Steele, News Anchor at ‎KBMT TV, posted on Facebook a photo of a message from Exxon referring to the suspension of the company’s contributions to the 401K Savings Plan.   “Given the current business environment, the corporation is taking steps to reduce costs,” says Exxon’s message, seen by Reuters. “The company intends…

China’s Crude Oil Imports Drop From Record Highs

China’s crude oil imports are estimated to have dropped in July by 3 percent from June, but they were still much higher than the import volumes in July 2019, data from energy analytics services provider OilX showed. Following record-high imports in June, China is expected to have imported on average 11.55 million bpd in July, down by 373,000 compared to June, OilX Research data showed.    Despite the monthly drop in Chinese crude oil imports, arrivals in July surged by 21.5 percent, or by 2.05 million bpd, compared to July 2019.…

How COVID Could Clean Up Airline Emissions

It’s been nearly 12.5 years since Virgin Atlantic flew a Boeing 747 between London and Amsterdam partly powered by a biofuel made from Brazilian babassu nuts and coconuts. Although Sir Richard Branson labeled the event a “vital breakthrough”, many observers dismissed it as just another one of his outlandish PR and marketing stunts.  And they might have been right. More than a decade on, aviation biofuels account for less than 1 percent of the 1.5 billion barrels of aviation fuels (15 percent of global oil supply) that commercial…

Continental Resources Restarts Curtailed Oil Production

Continental Resources is bringing back previously shut-in oil production, seeing flow rates in some fields double compared to the rates before the curtailment, the company’s executives said on the Q2 earnings call. In the middle of June, Continental Resources – which had shut in 70 percent of its output – said it expects to partially begin resuming production but still expects to curtail approximately 50 percent of its operated oil production. As oil prices stabilized at around $40 a barrel, the U.S. shale patch began…

Continental Resources Restarts Curtailed Oil Production

Continental Resources is bringing back previously shut-in oil production, seeing flow rates in some fields double compared to the rates before the curtailment, the company’s executives said on the Q2 earnings call. In the middle of June, Continental Resources – which had shut in 70 percent of its output – said it expects to partially begin resuming production but still expects to curtail approximately 50 percent of its operated oil production. As oil prices stabilized at around $40 a barrel, the U.S. shale patch began…

Venezuela’s Rig Count Officially Falls To Zero

Venezuela no longer has any operational oil rigs after the last oilfield services firm that was still drilling for oil in the country holding the world’s largest crude oil reserves pulled its only rig out of service. As of June 2020, Venezuela had one operational rig, according to the monthly international rig count of Baker Hughes.      However, after U.S. supermajor Chevron suspended its operations in Venezuela because of the U.S. sanctions on Nicolas Maduro’s regime, Chevron’s contractor Nabors Industries…

Mexican President May Change Constitution To Strengthen Control Of State-Owned O

The Mexican government may need to effect changes in the country’s constitution to strengthen its control of state oil giant Pemex, President Andres Manuel Lopez Obrador said in a memo cited by Bloomberg. “We must advance to the limit permitted by the current legal framework. However, if in order to apply the new rescue policy to Pemex and CFE we need to propose a new energy reform, we don’t rule out that possibility,” Lopez Obrador wrote in the memo. Obrador came to power with a pledge to, among other things, restore…

Mexican President May Change Constitution To Strengthen Control Of State-Owned O

The Mexican government may need to effect changes in the country’s constitution to strengthen its control of state oil giant Pemex, President Andres Manuel Lopez Obrador said in a memo cited by Bloomberg. “We must advance to the limit permitted by the current legal framework. However, if in order to apply the new rescue policy to Pemex and CFE we need to propose a new energy reform, we don’t rule out that possibility,” Lopez Obrador wrote in the memo. Obrador came to power with a pledge to, among other things, restore…

Oil Prices Soar After EIA Reports Large Crude Draw

A week after it reported the heftiest crude oil draw in more than six months, the Energy Information Administration once again had good news for oil bulls: the authority said crude oil inventories had shed 7.4 million barrels during the week to July 31. A week earlier, the EIA said inventories had lost as much as 10.6 million barrels, after a build of 4.6 million barrels for the second week of July. Analysts had expected an inventory decline of 3.267 million barrels for the week to July 31. A day before the EIA, the American Petroleum Institute…

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