OilPrice

Exxon Expected To Announce North America Redundancies Soon

Exxon is close to completing a workforce assessment for the United States and Canada, after which it will announce the number of people it needs to lay off in response to the crisis caused by the pandemic. “Making the organization more efficient and more nimble will reduce the number of required positions and, unfortunately, reduce the number of people we need,” chief executive Darren Woods said in a statement. “We all recognize the consequences of these difficult decisions and the impacts they have, which is why we’re focused…

The World’s Largest Oil Trader Just Sent LNG Prices Soaring

Three trades for liquefied natural gas cargoes executed by commodity trading major Vitol made the company the talk of the LNG town as it pushed the Asian regional LNG benchmark up by as much as 20 percent.\ Bloomberg reports that the deals included one purchase of an LNG cargo from PetroChina, one from Gunvor, and one from Trafigura. The prices, at which Vitol bought the commodity between Friday and Tuesday, varied from $6.62 per mmBtu for the first cargo to $6.87 per mmBtu for the third one. Following these trades, the Japan-Korea Marker benchmark…

Why Natural Gas Is The Most Important Fuel Of the Next Decade

Natural gas could be the single most important energy source of the next decade.  For investors who want both profitability and longevity, the natural gas sector is the very first place to look. The math is simple:  Big banks are fleeing oil.  The coal industry is in terminal decline.  And renewable energy is years or even decades away from meeting global demand. So while the multi-trillion-dollar ESG trend is cutting off financing for oil and coal, the global energy transition to renewables is helpless without a bridge fuel.…

Saudi Arabia Is Suffering The Consequences Of Its Failed Oil Price War

Nine months on from Saudi Arabia’s second major oil price war in the last five years, more negative consequences are manifesting themselves. Aside from the irrevocably damaged core relationship with the U.S., the permanent distrust of international investors, and the further alienation of many of its fellow OPEC members, Saudi Arabia is now beginning to discover the true depth and breadth of damage that it has done to its own economy, which will endure for many years to come.  Figures released at the end of September show that Saudi…

Western Canada Oil Production Rebounds As U.S. Oil Stagnates

Most of Western Canada’s oil production has been restored, according to the Canada Energy Regulator, but U.S. oil producers haven’t had as much luck. Both countries had to curtail oil production in May due to low oil prices amid the coronavirus pandemic and the oil price war waged by Saudi Arabia and Russia. The Canada Energy Regulator (CER) now says that about 700,000 barrels of oil production per day has been brought back online after it was forced to cut nearly 1 million barrels per day back in May. The total curtailments as of October…

Western Canada Oil Production Rebounds As U.S. Oil Stagnates

Most of Western Canada’s oil production has been restored, according to the Canada Energy Regulator, but U.S. oil producers haven’t had as much luck. Both countries had to curtail oil production in May due to low oil prices amid the coronavirus pandemic and the oil price war waged by Saudi Arabia and Russia. The Canada Energy Regulator (CER) now says that about 700,000 barrels of oil production per day has been brought back online after it was forced to cut nearly 1 million barrels per day back in May. The total curtailments as of October…

Tech Breakthrough Promises Hydrogen Gas From Plastic Waste

The plastics and petrochemicals industry could, in an ironic twist, get a boost from a new technology that scientists say can turn plastic waste into the holy grail of hydrogen gas.  The Great Pacific Garbage Patch has remained solidly in the public portfolio of nightmares since it was discovered more than 30 years ago. It is, after all, a collection of marine debris twice the size of Texas.  We try to closet it in the recesses of our minds, but it’s a losing battle with existentialism. It’s still there—and growing by…

NASA, Energy Department Boost Cooperation In Space Projects

The U.S. Department of Energy and NASA signed on Tuesday a memorandum of understanding to expand their cooperation in civil energy-related activities in space.   NASA and DOE are continuing their partnership that started over 50 years ago and will jointly pursue collaboration in space activities that could include applied energy and energy-related research and development, space science, earth science, space technology, and computing and modeling, according to the new memorandum of understanding. The parties will also continue to identify…

NASA, Energy Department Boost Cooperation In Space Projects

The U.S. Department of Energy and NASA signed on Tuesday a memorandum of understanding to expand their cooperation in civil energy-related activities in space.   NASA and DOE are continuing their partnership that started over 50 years ago and will jointly pursue collaboration in space activities that could include applied energy and energy-related research and development, space science, earth science, space technology, and computing and modeling, according to the new memorandum of understanding. The parties will also continue to identify…

China's Crude Imports Become Backbone Of Oil Price Recovery

The world’s largest oil importer, China, will continue to have a significant impact on the oil market in the coming months, as most of the rest of the world continues to battle a second coronavirus wave that has stalled the already fragile global oil demand recovery.  China is likely importing now the last of the cheap crude its refiners snapped up in the spring when it took advantage of the lowest crude oil prices in nearly two decades.   With the last of the delayed cargoes likely to discharge and clear customs in October,…

Big Oil Hamstrung In Tackling Methane Problem

When the coronavirus first spread around the world, emissions-tracking organizations reported good news: the drop in industrial activity and oil and gas drilling had resulted in lower emissions of a range of harmful chemicals. Yet despite this drop, emissions of one chemical continued to grow, unabated—and even increased. Big Oil has made ambitious pledges about methane emissions but this will not be enough to solve the problem. A recent report by data analytics company Kayrros revealed that global methane emissions grew by as much as 32…

Brazil’s Oil Giant Petrobras Raises Production Forecast

Thanks to increased production at the prolific pre-salt offshore basin, Petrobras expects its oil and gas production this year to exceed earlier guidance, Brazil’s state oil firm said as it reported its production figures for Q3. Petrobras sees its average production for 2020, reaching 2.84 million barrels of oil per day (boed), of which 2.28 million bpd of oil, with a margin of error of 1.5 percent. This estimate exceeds by 2.5 percent the upper range of its original production guidance of 2.7 million boed total output and 2.2 million bpd…

The Battle For More Efficient Energy

There is a war going on. And no, it’s not the one you think. This is a war against energy efficiency. The attack is on two fronts: a battle against energy efficiency standards on the part of the current United States administration which is generally anti-regulation, and an attack on the part of everyone’s favorite new common enemy, the novel coronavirus. The global pandemic has hurt nearly every economic sector, and it’s certainly not doing energy efficiency any favors, either. “The virus, almost by design, hates efficiency…

Global Oil Production Costs Continue To Fall

A comprehensive Rystad Energy analysis of oil production costs has revealed that the average breakeven price for all unsanctioned projects has dropped to around $50 per barrel, down around 10% over the last two years, and 35% since 2014. This means that oil is much cheaper to produce now compared to six years ago, with the clear cost savings winner being new offshore deepwater developments. Our cost of supply curve for liquids now reveals that the required oil price for producing 100 million barrels per day (bpd) in 2025 has been in continuous…

Suncor May Sell Stake In North Sea Oilfields

Canada’s Suncor Energy is considering selling part of its assets in the North Sea amid a wave of consolidation in the mature offshore basin, Bloomberg reported on Wednesday, quoting sources with knowledge of the plans. Suncor hasn’t formally launched a sales process but has approached potential buyers who have expressed interest in the fields in the UK and Norwegian parts of the North Sea, the sources said. One of the stakes that Suncor explores divesting is its 26.69-percent working interest in the Golden Eagle Area in the central…

Suncor May Sell Stake In North Sea Oilfields

Canada’s Suncor Energy is considering selling part of its assets in the North Sea amid a wave of consolidation in the mature offshore basin, Bloomberg reported on Wednesday, quoting sources with knowledge of the plans. Suncor hasn’t formally launched a sales process but has approached potential buyers who have expressed interest in the fields in the UK and Norwegian parts of the North Sea, the sources said. One of the stakes that Suncor explores divesting is its 26.69-percent working interest in the Golden Eagle Area in the central…

Israel And The UAE Sign Historic Oil Deal

Israel and the United Arab Emirates (UAE) signed this week a preliminary agreement under which crude oil from OPEC’s third-largest producer could be shipped to European markets via an oil pipeline in Israel connecting the Red Sea with the Mediterranean.   In a major energy deal after Israel and the UAE agreed to normalize relations in September, Israeli state firm Europe Asia Pipeline Co (EAPC) and UAE-based MED-RED Land Bridge Ltd signed a memorandum of understanding for cooperation in transporting crude oil and fuel from the Gulf to…

Oilfield Services Giant Baker Hughes Reports Loss

Oilfield services provider Baker Hughes (NYSE: BKR) reported a loss for the third quarter, like its competitors Schlumberger and Halliburton, amid lower demand for drilling services and equipment after the oil price crash earlier this year.   Baker Hughes reported on Wednesday a loss per share of $0.25 for the quarter, compared to earnings per share of $0.11 for Q3 2019, as revenues for its oilfield services segment dropped by 31 percent year over year to $2.308 billion. Adjusted for items and charges, the net result was earnings per share…

China’s Pollution Effort Falls Short Of Expectations

Despite ambitious efforts to reduce air pollution levels across China over the last five years, results have fallen short of expectations, Reuters reports, citing a senior government official. “While seeing the improvements ... it should be clearly recognised that the quality of the ecological environment remains far from people’s expectations for a better life,” said Zhao Yingmin, Vice Minister of Ecology and Environment, speaking to reporters. China is the world’s biggest emitter of carbon dioxide, even though it is also…

China’s Pollution Effort Falls Short Of Expectations

Despite ambitious efforts to reduce air pollution levels across China over the last five years, results have fallen short of expectations, Reuters reports, citing a senior government official. “While seeing the improvements ... it should be clearly recognised that the quality of the ecological environment remains far from people’s expectations for a better life,” said Zhao Yingmin, Vice Minister of Ecology and Environment, speaking to reporters. China is the world’s biggest emitter of carbon dioxide, even though it is also…

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