Fossil fuel transition: Expect oil price spikes as capital investment declines

“We have concerns about investment, particularly in light of the pandemic,” OPEC Secretary-General Mohammad Barkindo said at a virtual conference in Iran on Jan. 26. Starving the industry of capital today “could sow the seeds for extreme volatility down the road.” More »

Biden’s anti-oil crusade can make climate change worse

America is the world’s biggest consumer of crude oil, and any restrictions of domestic production will mean more will have to be shipped in from other countries with less stringent humanitarian and environmental laws. More »

Texas Alliance’s Petro Index shows deep trough in state’s oil and gas economy during 2020

“The Texas upstream oil and gas economy was already in a state of decline before Covid-19,” said Alliance Executive V.P. and Petroleum Economist Karr Ingham, in exclusive comments to World Oil, adding that the demand contraction in the U.S. and globally was easily the sharpest demand drop in the shortest amount of time on record. More »

Keppel to end oil and gas rig building, turns focus to renewables

Keppel Offshore and Marine will exit the offshore rig building business, after completing the existing rigs under construction, the company said in a statement. More »

Equinor writes off its Tanzania LNG project

While progress has been made in recent years on the commercial framework for the Tanzania LNG project, overall project economics have not yet improved sufficiently to justify keeping it on the balance sheet, Equinor said in a statement. More »

Chevron logs Q4 loss on Noble Energy charges, weak fuel demand

In a harbinger for the rest of the oil industry, Chevron’s results evince the challenges facing energy producers battered by 2020’s pandemic-driven collapse in demand and prices. More »

Tellus Resources acquires interest in Block 3114 in Madagascar in deal with Caravel Energy

Tellus Resources reported that it has agreed to acquire a 25% interest (with the right to acquire up to an 80% interest) in a drill ready and large scale oil exploration asset, located onshore on the Island of Madagascar, off the south-east coast of Africa.

The vendor of the asset is Caravel Energy. The terms of the transaction are summarised below.
 
The Asset, which comprises approximately 10,000 sq km of onshore acreage, has recently been the subject of a seismic campaign which has identified large scale oil targets together with at least one drill ready prospect. As such, a drilling campaign is planned to commence in the latter part of the year. The acreage the subject of the acquisition has recently been the subject of a seismic campaign which has identified large scale oil targets.As such, a drilling campaign is planned to commence in the latter part of this year.

Under the Sale Agreement the Company has agreed to acquire:
 
CRJ’s 25% shareholding interest in PetroMad being the company which owns a 100% interest in the Bezaha Oil Project concession located in Southern Madagascar – the Asset ; and all of CRJ’s rights and obligations under an agreement entered into with the owner of the remaining 75% interest in PetroMad and under which CRJ is entitled, subject to successful completion of staged work programs, to earn up to an 80% ownership interest in PetroMad.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Pipeline owners look to hydrogen as natural gas comes under attack

After former Secretary of State John Kerry, warned that natural gas pipelines could become “stranded assets” within 30 years as the administration seeks to end carbon emissions from power plants, owners turn to hydrogen to keep three million miles of U.S. pipelines from going obsolete. More »

API chief calls oil leasing ‘a lifeline to local economies’ at USEA Forum

“We are rooting for President Biden to lead America out of crisis,” API President and CEO Mike Sommers said. “As he works toward that important goal, he faces clear choices. Energy abundance or foreign dependence. American jobs or overseas jobs. Economic revival or small-town decline. Progress or retreat. Thus far, President Biden is on the wrong side of a number of these consequential choices.” More »

Oil markets keep a wary eye on shale producers’ pledge for restraint

How the fragmented U.S. shale industry will respond to increased incentives to drill has become a crucial question for traders and industry watchers across the world. More »

Alaska Native leaders react to Biden’s executive orders

In the days before taking office, President Biden promised to unify the country. Then, in his first order of business, promptly alienated Alaska and other states that rely on energy development to keep the lights on in their communities. More »

Chevron, Reliance request U.S. unwind some Venezuela oil sanctions

High on the agenda for the U.S. and Indian oil companies: reinstating transactions known as oil swaps that would allow companies to receive Venezuelan crude in exchange for supplying diesel fuel. More »

Neptune Energy commences Seagull drilling campaign

Neptune Energy and its joint venture partners bp and JAPEX, announced drilling has commenced on the Seagull project in the UK Central North Sea. More »

Wind, solar, and coal: Joe Biden’s curious renewable energy cocktail

When President Biden banned fossil fuel leases on federal lands, he left out coal -- the fossil fuel most widely blamed for global warming. It was a conspicuous omission for a president who has vowed to make the electric grid carbon-free by 2035 and who has said the world’s “future rests in renewable energy.” More »

Biden’s oil and gas drilling ban may end offshore Gulf of Mexico work

“The region that would bear the brunt of the oil and gas ban are the deep waters of the Gulf of Mexico since it’s entirely owned by the U.S. government,” said Elisabeth Murphy, ESAI Energy LLC upstream analyst for North America. It would mean a 40% output drop for the Gulf by 2030, she said. More »

Biden’s oil and gas ban immediately challenged in Federal court

Western Energy Alliance, which says it represents 200 oil and natural gas companies, said the administration’s suspension of leases is “unsupported and unnecessary,” and an overreach by the U.S. Bureau of Land Management, according to a petition filed Wednesday in Wyoming federal court. More »

U.S. chamber of commerce condemns federal leasing ban

“There is never a good time to disrupt domestic energy production, especially during a pandemic, but doing so at a time when our nation is in need of economic recovery is especially counter-productive and short-sighted,” said U.S. Chamber of Commerce Global Energy Institute President Marty Durbin. More »

Biden pauses onshore and offshore drilling leases, orders subsidy reviews

President Joe Biden took executive action on Wednesday to block new leases for oil drilling on federal lands and waters for one year and ordered a review of fossil-fuel subsidies and other measures to overhaul how the U.S. produces energy. More »

Biden to pause onshore and offshore drilling leases, orders subsidy reviews

President Joe Biden will take additional executive action on Wednesday to combat climate change, including temporarily blocking new leases for oil drilling on federal lands and waters, ordering a review of fossil-fuel subsidies and other measures to overhaul U.S. energy. More »

BP pushes Texas to ban gas flaring, then files 121 requests to flare Texas gas

After pushing Texas energy regulators to end the practice of natural gas flaring for environmental reasons, BP filed 121 flaring requests that test the limits of the rules and call into question the company’s pledge to reduce carbon emissions. More »

Oil supermajors seek to end 2020 on a high note: Five things to watch in Q4 earnings

With crude prices and refining margins buoyed by the rollout of Covid-19 vaccines and the prospect of an economic rebound, investors will be watching for signs in Big Oil’s fourth-quarter earnings that higher crude prices will translate into much-needed increased cash flows this year. More »

Oil supermajors end 2020 on a high note: Five things to watch in Q4 earnings

With crude prices and refining margins buoyed by the rollout of Covid-19 vaccines and the prospect of an economic rebound, investors will be watching for signs in Big Oil’s fourth-quarter earnings that higher crude prices will translate into much-needed increased cash flows this year. More »

EDF claims more regulation can cut Permian basin flaring

As much as 40% of the natural gas that’s expected to be flared in the Permian Basin in 2025 could be avoided at no cost to drillers if regulators abandoned their hands-off approach to the controversial practice, according to a report. More »

U.S. projects climbing energy-related CO2 emissions in 2021 and 2022

The U.S. Energy Information Administration expects total energy-related CO2 emissions to increase to 4.8 billion metric tons in 2021 and 4.9 billion metric tons in 2022. More »

Biden orders more federal spending on American-made products

The order directs agencies to strengthen requirements so that they acquire more goods and services from U.S. companies and workers, according to administration officials. The agencies spend almost $600 billion through these contracts. More »

More oil and gas companies leaning into renewable energy tech

A record two-thirds of senior oil and gas professionals report that their organization is actively adapting to a less carbon-intensive energy mix in 2021, up from just 44% in 2018. Some 57% plan to increase investment in renewables, up from 44% last year, about half expect to increase investment in green or decarbonized gas. More »

Research shows more oil and gas companies leaning into renewable energy tech

A record two-thirds of senior oil and gas professionals report that their organization is actively adapting to a less carbon-intensive energy mix in 2021, up from just 44% in 2018. Some 57% plan to increase investment in renewables, up from 44% last year, about half expect to increase investment in green or decarbonized gas. More »

Tenaris to supply Subsea 7 with coated risers and flowlines for Brazil’s Bacalhau offshore field

Tenaris and Subsea 7 have signed an agreement for the supply of pipes and coating services for Bacalhau project, operated by Equinor and located 115 miles off the coast of São Paulo in Brazil. More »

Millions of barrels of sanctioned Venezuelan crude finding their way to China

The cat-and-mouse games that avoid detection and sanctions include ship-to-ship transfers, shell companies and silenced satellite signals. But there’s another aspect to the dodge. It involves “doping” the oil with chemical additives and changing its name in the paperwork so it can be sold as a wholly different crude without a trace of its Venezuelan roots. More »

Iran exporting more oil as U.S. sanction pressure fades

With the U.S. campaign of “maximum pressure” now over, Iran’s oil customers may be growing a little bolder. More »

Total leads Europe’s oil majors in clean energy push

Europe’s three largest oil and gas companies -- Total, BP and Royal Dutch Shell -- all announced plans last year to eliminate most greenhouse gas emissions from their operations and the fuels they sell in the coming decades. It marked a turning point for the petroleum industry in the region, and heightened its divergence from U.S. majors that have yet to make such pledges. More »

Elon Musk’s gas drilling plans in Texas meet legal resistance

The billionaire’s SpaceX intends to drill wells close to the company’s Boca Chica launchpad, it was revealed during a Friday hearing before the Railroad Commission of Texas, the state’s energy regulator. More »

Oil supply cuts in Iraq and Libya nudge prices higher

Iraq pledged to cut output in January and February after pumping more than its OPEC+ quota last year, and Libyan guards halted some crude exports after a pay dispute. Crude was also buoyed by a renewed climb in global equity markets as investors focused on the prospect of additional stimulus. More »

Biden’s fiscal and climate priorities may support oil prices, says Goldman Sachs

President Biden's focus on fiscal spending, a probable lack of urgency in lifting sanctions on Iran and restrictions on the North American energy industry all combine to support oil prices, Goldman Sachs analysts wrote in a note dated Jan. 21. More »

Iraq to pare February oil production to balance OPEC+ overages

Iraq plans to cut oil output in January and February to make up for breaching its OPEC+ quota last year, according to the state company that markets the nation’s crude. More »

Biden’s plan to cut U.S. oil production becomes clearer

On his first day in office, President Joe Biden made good on a campaign promise to cancel the Keystone XL oil pipeline and suspended new drilling permits over the next 60 days. Next week, Biden will go even further: suspending the sale of oil and gas leases on federal land, where the U.S. gets 10% of its supplies. More »

Biden’s energy and pipeline regulator pick will drive green transition

As chairman of the U.S. Federal Energy Regulatory Commission, Richard Glick can push for more comprehensive environmental reviews and prioritize projects to pave the way for more of the wind and solar farms key to Biden's 2035 clean energy targets. More »

Oilfield service companies see drilling rebound everywhere but the U.S.

Schlumberger posted better-than-expected earnings Friday and forecast an increase in overseas spending by customers in the next quarter. Earlier in the week, Halliburton said oil markets outside North America may see double-digit growth in the second half of 2021, while Baker Hughes predicted a modest recovery in Latin America, the North Sea and the Middle East. More »

Iran boosts oil production to pre-sanction levels

President Biden is expected to seek the restoration of the nuclear accord, and officials in Tehran have expressed the hope he will ease restrictions on its petroleum sales. But for now, the sanctions are still in place and any buyer of Iranian crude would face the same legal and financial penalties. More »

Baker Hughes sees global LNG projects picking up in 2021

“By 2030, we still need to have capacity of approximately 650 to 700 million tons of LNG in place,” Chief Executive Officer Lorenzo Simonelli told analysts and investors Thursday on a conference call. “You’re looking at 50 to 100 million tons FIDing over the course of the next three to four years.” More »

TC Energy cuts 1,000 jobs after Keystone XL’s cancellation

Alberta, home to the world’s third largest oil reserves, viewed the line as essential for delivering its heavy crude to U.S. refineries at a time when alternate supplies from Latin America were dwindling. More »

API agrees with Wall Street Journal: On first day, Biden offends Canada, kills thousands of jobs

President Biden issued a blizzard of executive orders on his first day in office, including a diktat to revoke the permit for the Keystone XL pipeline. This is a slap at Canada, and it sends a message to investors that playing by U.S. rules provides no immunity from arbitrary political whim. More »

Biden prepares to end new oil and coal leases on federal land

The move would block the sale of new mining and drilling rights across some 700 million acres of federal land. It could also block offshore oil and gas leasing, though details are still being developed. More »

Merkel stands by Nord Stream 2, but is open to discussing Russia with Biden

“We need to also discuss which economic relations in the gas sector are possible with Russia, and which aren’t,” Merkel said during a news conference in Berlin Thursday, referring to planned talks with Joe Biden’s government. “My basic position on Nord Stream 2 hasn’t changed,” she added, when asked about plans to complete the pipeline between Germany and Russia. More »

Energean greenlights offshore Egypt subsea tieback project

Energean PLC announced a Final Investment Decision has been taken on the North El Amriya and North Idkunea concession subsea tieback project in offshore Egypt. More »

Libya seeks funds from foreign oil firms to repair infrastructure

Libya is seeking funding from foreign oil companies to fix its ailing infrastructure after years of war and neglect, the nation’s top energy official said. More »

Alberta’s premier urges retaliation for Biden’s job-killing Keystone XL move

Jason Kenney said Justin Trudeau should demand the new U.S. administration sit down and discuss the project in the context of environmental, climate and security policy. If that fails, Canada should be willing to impose “meaningful” punitive measures against its biggest trading partner. More »

Biden’s Keystone XL cancellation risks straining Canadian ties

Alberta Premier Jason Kenney on Tuesday urged Canadian Prime Minister Justin Trudeau to take steps to save the pipeline permit, saying its revocation “would damage the Canada-U.S. bilateral relationship.” More »

Keystone XL shutdown may signal the end of major U.S. oil infrastructure

Even before Biden’s inauguration, the oil and gas industry was on its back foot when it came to building major new infrastructure. Despite Donald Trump’s pro-fossil-fuel policies, energy companies such as Williams Cos. and Dominion Energy Inc. have been forced to scrap new projects in the face of stiff opposition. More »

Chevron eyes subsea pipelines to send Israeli gas to Egypt

The partners in the Leviathan and Tamar fields, which sit off Israel’s Mediterranean coast, signed an agreement under which Israel Natural Gas Lines Ltd. will lay a new subsea pipeline and expand some of its existing ones, according to a statement Tuesday from Delek Drilling LP, a shareholder in both reservoirs. More »

Nord Stream 2’s future looks increasingly uncertain

Fresh sanctions come just days before work on the pipeline is scheduled to start in Danish waters. Questions now remain whether the link, owned by a unit of Gazprom PJSC, will see further delays as the U.S. tries to limit Russian influence in Europe. More »

Outgoing Interior chief says Arctic oil leases will survive Biden

“You can write a lot of executive orders, but an executive order doesn’t get you past go,” Interior Secretary David Bernhardt said on his last full day leading the Interior Department. “They still have to run through the gauntlet of the law.” More »

Biden to reveal comprehensive day-one climate agenda

Environmentalists said Biden’s actions -- some of which could take years to be implemented -- will renew the U.S. commitment to safeguarding the environment and signal to the world that America has returned to the global fight against climate change. More »

Brent crude passes $56 as market shows signs of strength

Traders have piled into oil this year, with output cuts from Saudi Arabia helping drive prices to the highest since February. More »

Saudi’s oil cuts appear prophetic as market risks grow

Two weeks ago, the world’s biggest crude exporter stunned energy traders by announcing that -- rather than restore halted production as planned -- it would slash supplies by a further 1 million barrels a day. On Tuesday, the International Energy Agency slashed forecasts for world oil demand in the first quarter as countries hunker down to contain new coronavirus outbreaks. More »

OPEC’s major customer decries “confusion” caused by oil supply cuts

India's oil minister and the Organization of Petroleum Exporting Countries’ top official publicly jousted over the cartel’s policy shift at a conference hosted by the Atlantic Council on Tuesday. More »

Spirit Energy taps Wood to extend productive life of UK offshore gas fields

The five-year consolidated services contract, valued at $130 million, will see Wood leverage its experience and capability in late life asset optimization and management to extend field life, lower costs, and reduce late life carbon intensity across the Hub’s offshore assets in the East Irish Sea and the Barrow onshore gas terminal on the northwest coast of England. More »

UAE targets carbon-capture hydrogen to reduce greenhouse emissions

The United Arab Emirates will use carbon-capture technologies to create what’s known as blue hydrogen on its path to becoming a major exporter of the fuel, Sultan Al Jaber, CEO of Abu Dhabi National Oil Co., said at a virtual conference on Tuesday. More »

Norway grants 61 new offshore oil and gas exploration licenses

“This year’s award of 61 new production licenses to as many as 30 companies shows that the petroleum industry still has significant expectations of making profitable discoveries on the Norwegian Shelf,” says director license management in the Norwegian Petroleum Directorate, Kalmar Ildstad. More »

Financial regulator questions value of U.S. shale reserves

The top U.S. financial regulator’s reported investigation into how Exxon Mobil values shale assets follows years of concerns about the industry’s rosy projections, which have left hundreds of billions of dollars of investor losses and writedowns. More »

Mozambique’s army combats insurgents near Total's $20B LNG project

Mozambique has struggled to contain an insurgency that has left more than 2,500 people dead and caused 570,000 to flee. The violence this year prompted Total SE to evacuate workers from its $20 billion liquefied natural gas project as attacks encroached on what is Africa’s biggest private investment. More »

Total awards Maersk two deepwater drilling contracts in Suriname

The total value of the firm contracts is approximately USD $100MM, including rig modifications, integrated services provided, and a mobilization fee for Maersk Valiant. The contracts include various extension options. More »

Methane emissions fell in 2020 on lower oil and gas production

Agriculture remains the largest source of human-caused methane emissions, while the energy sector comes next. Oil production is responsible for around 40% of the energy industry’s methane emissions, with the natural gas value chain accounting for the remaining 60%. More »

Is carbon capture a climate solution, or just another loophole?

The UN Principles for Responsible Investment estimates that some 42 companies announced net-zero targets in 2019 and 2020. More than half of those plan to plant trees, preserve forests or capture CO₂ in order to get there, even as their own businesses continue to warm the atmosphere. More »

Europe turns down more U.S. LNG on greenhouse gas concerns

The latest setback for exporters is the expiry of a 2017 accord between U.S. LNG developer NextDecade Corp. and the Port of Cork to build an import terminal in Ireland. More »

Canadian indigenous group pushes back on pipeline study

Efforts by Canada’s government to hire a firm to do a financial analysis of its Trans Mountain pipeline and a facilitator to help indigenous communities have rankled at least one group in British Columbia. More »

Abu Dhabi targets hydrogen as a future export fuel

Mubadala Investment Co., Abu Dhabi National Oil Co. and ADQ have formed an alliance to produce hydrogen using natural gas and renewable energy and market it overseas as well as in the United Arab Emirates, ADQ said in a statement. More »

Neglected infrastructure forces Libya to reduce oil output

The OPEC member’s output has fallen to around 1 million barrels daily in the wake of Waha Oil Co.’s decision to shut a key pipeline taking crude to Libya's largest oil port, Es Sider. More »

Exxon stock slides on report of SEC probe into Permian valuations

The probe may cast a shadow over Exxon’s efforts to turn a corner after its shares posted their worst annual performance in 40 years in 2020 amid a collapse in oil prices. CEO Darren Woods has been forced to slash spending, and last month the company said it will write down the value of North and South American natural gas fields by as much as $20 billion. More »

Total to drop API membership, citing climate and political differences

Total announced that it would not renew its membership in the American Petroleum Institute in 2021, saying that the company's stances on climate change and political affiliations are no longer in line with the U.S.-based energy group. More »

U.S. blacklists CNOOC for “bullying” in the South China Sea

China National Offshore Oil Corp. has for years drilled in waters far from its borders, and within 200 miles of countries including Vietnam and the Philippines. The activity amounts to the oil giant acting like a “bully” for China’s military to intimidate its neighbors, U.S. Commerce Secretary Wilbur Ross said in a statement Thursday announcing the move, which restricts access to U.S. technologies without specific permission. More »

Marubeni retains Jefferies to market its North Sea oil and gas assets

Marubeni Corp. could all but exit the UK North Sea as it looks to sell its main oil and gas fields in the region, according to people with knowledge of the matter. More »

Halliburton switches to grid electricity for Permian frac jobs

The world’s biggest fracking services provider, Halliburton has deployed the industry’s first grid-powered fracking operation on behalf of Cimarex Energy Co. To date, it’s completed almost 340 stages across multiple wells. More »

Nord Stream 2 to complete first of two branches as soon as June

The pipelaying vessel Fortuna is expected to complete works in Danish seas by the middle of the last week of May, and then start in German waters with construction going through to June. More »

South Korea lobbies Qatar for aid in recovering tanker seized by Iran

Choi traveled to Doha from Tehran after fruitless talks over the South Korean-flagged Hankuk Chemi, an oil-products tanker detained by the Islamic Revolutionary Guard Corps on Jan. 4. He also discussed billions of dollars of Iranian money trapped in South Korea due to U.S. sanctions. More »

Equinor, Moss Maritime to test floating solar generation offshore Norway

Equinor plans to build a floating pilot plant off Frøya near Trondheim in the late summer of 2021. It is set to become the world’s first pilot plant for floating solar power in rough waters. More »

Siemens Energy, Buoyant Production collaborate on smart offshore facilities design

Siemens Energy AS and BPT have been successfully working together for the past two years, as part of the Oil and Gas Technology Centre’s ‘Facility of the Future’ study, developing and maturing Floating Normally Unattended Installation technology. More »

Equinor, BP to build America’s largest offshore wind project off New York’s coast

Under the award, Equinor and partner BP will provide generation capacity totaling 3.3 gigawatts (GW) of power to the state of New York. More »

Equinor and YPF team up with Shell in Argentina's offshore CAN 100 block

The CAN 100 block comprises an area of 15,000 km² and is the largest block in the North Argentinian Basin. More »

Venezuela’s false-flag tankers cause headaches for law-abiding nations

The island nation of Palau says a tanker that recently loaded Venezuelan crude was using a false signal to disguise its identity, potentially putting the Pacific country in the crosshairs of U.S. sanctions. More »

Total logs fourth significant oil and gas discovery offshore Suriname

Total and Apache Corporation have made a new significant oil and gas discovery at the Keskesi East-1 well, in Block 58 off the coast of Suriname. This follows previous discoveries at Maka Central, Sapakara West and Kwaskwasi. More »

McKinsey projects a 2029 oil demand peak, accelerated by Covid-19

Over the long-term, the impacts of behavioral shifts due to COVID-19 are minor compared to “known” long-term shifts such as decreasing car ownership, growing fuel efficiencies and a trend towards electric vehicles, whose impact is estimated to be three-to-nine times higher than the pandemic’s by 2050. More »

U.S. diesel supply highest since October on falling global demand

U.S. exports of diesel, mostly to Latin America, last week fell 518,000 barrels a day to 714,000 for the lowest level since September 2017, data from the Energy Information Administration show. More »

Saudis reduce oil supplies to Asian, European refiners after OPEC+ cut

Saudi Aramco will supply less crude as part of long-term contracts next month, giving some Asian processors 20%-30% less than they had sought, according to company officials who received the notices but asked not to be identified as the information is private. More »

Maersk Drilling secures one-well UK contract for Maersk Resolve

Maersk Drilling has been awarded a contract from Spirit Energy for the harsh-environment jack-up rig Maersk Resolve to drill one development well at Grove North East in the UK North Sea. More »

Marlink to acquire Panasonic’s ITC Global satellite communications unit

Upon completion of the acquisition, ITC Global will become a cornerstone of the Marlink Group, supporting the expansion of Marlink's global leadership in the energy and enterprise markets. More »

Stena Drilling awards IDS fleet-wide rig reporting and performance analytics contract

Following successful six-month operational trials on Stena Spey and Stena Carron rigs, IDS will deploy its data driven TourNet Pro drilling contractor reporting service and drilling performance monitoring service, Anova DPM, across Stena Drilling’s fleet in Q1 2021. More »

Travel won’t recover until Q3, says oil’s largest trader

Global oil use dropped by 9 million barrels a day last year but should recoup more than 6 million in 2021, said Mike Muller, head of trader Vitol SA’s operations in Asia. More »

UAE warns U.S. shale producers against flooding market with oil

With demand still fragile, shale companies “are wise not to jump the gun and overproduce during the recovery year,” UAE Energy Minister Suhail Al Mazrouei said in an interview, adding they “need to be careful not to flood the market.” More »

U.S. projects higher oil output in 2022 from rebounding shale

The U.S. Energy Information Administration said that recent crude price increases and rig additions will help production in the Lower 48 states begin to rise in the second quarter of this year, with total output nearing 11.5 MMbpd in 2022. More »

Turkey and Greece to meet over Mediterranean energy disputes

The announcement comes just weeks after the European Union pledged to expand the number of Turkish officials sanctioned over the country’s energy exploration in the disputed waters of the eastern Mediterranean Sea. More »

Coretrax saves 14 days rig time offshore Norway with expandable drilling liner

The expandable drilling liner enabled the operator to kick-off much deeper in the well, eliminating the need to drill a section of the wellbore and install a tie back. The system was fully expanded within six hours and the entire project was completed in less than 40 hours. More »

Mozambique, Tanzania unite against rebel threats to LNG projects

Insurgents who’ve aligned with Islamic State have since 2017 staged increasingly bold attacks in Mozambique’s Cabo Delgado province that borders southern Tanzania, threatening nearly $60 billion in LNG projects. More »

CGG completes high-resolution Barents Sea seeps study for Norwegian Petroleum Directorate

To meet the requirements of the study, CGG Satellite Mapping custom-tasked next-generation SAR satellites to acquire a large collection of high-spatial-resolution SAR imagery at a high revisit frequency. More »

IEA chief says U.S. shale is needed for now as oil prices climb

A “big chunk” of U.S. shale is profitable at current oil prices, but drillers should be aware of crude’s declining share in the future global energy mix, International Energy Agency Executive Director Fatih Birol said in an interview. More »

Asian oil refiners target European crude as Saudi output falls

There have been signs across the oil market of traders expecting tighter supplies following the Saudi cuts. The shape of the Brent futures curve returned to backwardation earlier this week, meaning more immediate prices are trading at premiums. More »

Frigid winter pushes LNG tanker day rates to new global record

Bullish factors have struck the LNG shipping market: robust Asian spot gas demand in a cold winter, record-high exports from U.S. projects and -- perhaps most importantly -- delays to traverse the Panama Canal. More »

Paradigm Drilling Services and Toolserv form strategic alliance

The agreement will see Toolserv AS exclusively managing supply, sales and rental of Paradigm Drilling products and services in the country with the outlook to expand to other countries as business and demand grows. More »

2021 WPC Excellence Awards now open for submissions

The 23rd World Petroleum Congress – with the theme Innovative Energy Solutions will provide the platform for open dialogue between consumers and producers, governments and industry, academia and financiers, leaders and society, in order to address these issues and present debates, developments and solutions for sustainable production and use of the world's energy resources. More »

PE launches Transition Economist and Hydrogen Economist services

The publisher of Petroleum Economist, the leading global information service for the full hydrocarbon value chain, is bringing the same analytical depth and rigorous editorial standards to two rapidly-evolving sectors, the energy transition and the emerging hydrogen economy. More »

Strengthening dollar stalls oil price rally’s momentum

“The market has now reached a price level that potentially doesn’t reflect current fundamentals,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Oil could be next in line” to suffer from a stronger dollar after other commodity prices came under pressure. More »

Oil tanker attacks lead U.S. to label Yemen’s Houthis as terrorists

The Houthis are backed by Iran in Yemen’s civil war and have been blamed for several missile strikes and other attacks on Saudi Arabia, some of which they’ve claimed responsibility for. More »

Mohammed bin Salman unveils his plan for Saudi Arabia’s post-oil future

The prince's plan to diversify the economy of the world’s largest crude exporter spans more than 10,000 square miles in a remote area of Saudi Arabia's northwest. It’s described on its website as “a bold and audacious dream” that will become a hub for new technologies and businesses. More »

Mexico pouring money into Pemex, at the environment’s expense

After a landslide victory in 2018, Mexico's president has cut the knees off a booming renewables market, plowed money into Pemex, and pursued two major infrastructure projects that environmentalists consider ecological disasters. More »

Abu Dhabi raises benchmark Murban crude prices

Government-owned Abu Dhabi National Oil Co. set Murban crude at a premium of 75 cents a barrel to the regional benchmark, according to a notice from the producer. More »

Iraq follows Saudi Arabia’s lead with Asian crude price hike

The second-largest OPEC member, Iraq increased Basrah Light crude to buyers in Asia by 70 cents a barrel, to a $1.10 premium over the regional benchmark, according to a price list from the state oil marketer. More »

Senegal plans 2023 start for $4.3B BP-Kosmos gas program

The Grand Tortue Ahmeyim gas field development, straddling the offshore waters of Mauritania and Senegal, is expected to produce its first gas in 2023 following delays related to the coronavirus pandemic, according to Senegal’s Oil Minister Sophie Gladima. More »

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Petrobras matched Kuwait’s oil production in 2020

In a year that brought the U.S. shale industry to its knees, the Brazilian state-run giant pumped an all-time-high 2.3 million barrels a day of crude, according to a statement Thursday. That’s about the same as OPEC member Kuwait. More »

Oil passes $55 on hopes for more U.S. stimulus spending

Democratic wins in elections in Georgia mean the party is poised to take control of the Senate, House and presidency, spurring a broad move higher in financial markets. That came after Saudi Arabia pledged earlier in the week to cut production by 1 million barrels a day in February and March. More »

How U.S. shale exports forever changed global oil markets

“Opening the shale revolution to the world through the export ban lifting helped shift the global oil market psychology from supply scarcity to abundance,” said Karim Fawaz, director of research and analysis for energy at IHS Markit. “It unshackled the U.S. industry to keep growing past its domestic refining limitations.” More »

Devon Energy joins shale producers pledging restraint as oil rallies

“I have a hard time seeing the need for U.S. producers over the next several years to get back to double-digit growth,” Devon Energy CEO Rick Muncrief said in an interview. “For this management team, if we really think about 2021, let’s keep it flat.” More »

Texas oil and gas regulator exceeds well site inspection goals

In 2018, the Railroad Commission began work toward the ambitious goal of inspecting every one of the nearly 440,000 oil and gas wells in the state at least once every five years. The agency is well on its way to exceeding its goal again this year. More »

Ghana to start sub-Sarahan Africa’s first LNG-to-power project

LNG-to-power projects have been booming from Asia to Latin America in recent years as they allow nations to switch from dirtier fossil fuels to keep the lights on. And for sellers, integrated LNG-to-power provides a guaranteed outlet for the fuel. More »

Newfoundland and Labrador’s offshore energy and environment sectors unite to pursue clean tech opportunities

The Newfoundland and Labrador Environmental Industry Association (NEIA), Noia, and the Oil and Gas Corporation of Newfoundland and Labrador are working together to accelerate awareness and the pursuit of clean technology opportunities in Canada's offshore oil and gas industry. More »

Supermajors steer clear of Trump’s Arctic drilling lease auction

Amid low crude prices, fears about a backlash from the public and the prospect of regulatory uncertainty, just two oil companies placed bids on leases in the Arctic National Wildlife Refuge’s coastal plain: Knik Arm Services LLC and Regenerate Alaska Inc. More »

Pioneer’s CEO sees shale output flat for the foreseeable future

“I really don’t see much increase in the Permian basin or the U.S. shale over the next several years,” said Scott Sheffield, chief executive officer of Pioneer Natural Resources Co. More »

Saudis raise oil prices for U.S., Asian shipments after output cut

State producer Saudi Aramco on Wednesday raised its flagship Arab Light oil to Asia, its biggest market, to $1 above the benchmark used by the company. More »

Colder than usual winter boosts fossil fuel demand

Temperatures across much of Europe and Asia are well below normal and forecasters expect them to stay there for most of January. The chill is supporting oil prices, which are holding above $50 a barrel, while the profit from turning crude into diesel climbed in Europe to the most since August in recent weeks as consumers -- many stuck working from home because of a resurgent virus -- burn more heating fuel. More »

Bid review begins in rare auction of Alaskan Arctic drilling rights

The Bureau of Land Management was set to begin opening sealed bids for 10-year leases in the Arctic National Wildlife Refuge’s coastal plain Wednesday afternoon, less than a day after a federal judge rejected environmental groups’ pleas to halt the auction. More »

U.S. imports no Saudi crude for the first time since 1985

The U.S. didn’t import any Saudi crude last week for the first time in 35 years, a reversal from just months ago when the Kingdom threatened to upend the American energy industry by unleashing a tsunami of exports into a market decimated by the pandemic. More »

Ten renewable energy trends to watch in 2021

Even after Covid-19 has wreaked havoc on almost everything else, the new year begins with surging growth for renewable energy. More »

Oil crests $50 on new Saudi production cuts

OPEC+’s agreement, which will see most producers keep output steady while the Saudis cut, prompted a sharp rally in the structure of the oil futures curve as traders anticipated lower supply in the coming months. More »

Saudi Arabia cements its role as leader of the global oil and gas market

“We are the guardian of this industry,” Saudi Energy Minister Prince Abdulaziz bin Salman said as he announced Saudi's production cut on Tuesday, preserving the OPEC+ deal and sending oil prices to 10-month highs. He emphasized that the decision was made unilaterally by Crown Prince Mohammad bin Salman himself. More »

High debt, low margins choke shale’s growth despite climbing oil prices

Market conditions that might have triggered U.S. oil explorers to raise output and grab market share in recent years are, this time around, more an opportunity for them to pay down debt or boost dividends. More »

Court allows Trump’s Arctic refuge drilling auction to proceed

The decision is a victory for the administration, which has been racing to issue oil leases in the refuge’s coastal plain before the Jan. 20 inauguration of President-elect Joe Biden. More »

Maduro consolidates power with new Venezuelan National Assembly

Since taking over for Hugo Chavez in 2013, Nicolas Maduro has resisted efforts to force him out, presiding over a precipitous deterioration of the oil-rich country. More »

Exxon releases emissions data following investor pressure

Exxon has come under pressure from activist investors in recent weeks for its poor returns and environmental record. The company said last month that it would set new, more ambitious targets to reduce emissions per barrel of crude. More »

Banks push back against rule forcing lending to oil companies

The “fair access” rule proposed by the Office of the Comptroller of the Currency on Nov. 20 would create undue burdens for lenders and could threaten their business models, banking industry groups said in comment letters to the agency. More »

Opinion: An assault from all fronts on energy independence

Despite the claims of the sensationalist, fake-news media, the environment in America is getting better, not worse, writes Texas Railroad Commission Chairman Wayne Christian. More »

New OPEC+ production agreement sees Saudis taking deepest cuts

The deal, which emerged after two days of talks, sent crude surging to a 10-month high in New York. It appeared to give most members of the group what they wanted -- the additional price support desired by Saudi Arabia and the production boost Russia had been pushing. More »

Russian bank funds lion’s share of Trafigura’s $7B Rosneft oil deal

A Rosneft spokesman said that the deal was “a logical extension” of its cooperation with Trafigura and would give the trading house “long-term access to high quality hydrocarbons to be produced with a low-carbon footprint that can be shipped both to the west and east.” More »

Texas, New Mexico to offer 100+ oil and gas leases in online auctions

The BLM New Mexico State Office will be offering 37 parcels covering 6,850.72 acres, while , the Texas General Land Office will offer 66 tracts covering 22,500.607 net mineral acres in 16 different counties in January. More »

Oil gains as OPEC+ talks wobble over February disagreement

Futures in New York gained toward $48 a barrel after dropping the most in 2 weeks on Monday. Discussions will restart on Tuesday after a majority of members, including Saudi Arabia, opposed Russia’s proposal for another supply hike. More »

Alberta’s premier takes action after lawmakers’ holiday travels

In a statement posted on Twitter, Jason Kenney announced that one cabinet minister, Tracy Allard, along with his chief staff will be stepping down from their posts after revelations the two traveled abroad in recent weeks. More »

Oil prices drop on emerging OPEC+ divide over production cuts

Talks between OPEC and its allies will continue for a second day after most members, including Saudi Arabia, opposed Russia’s proposal for another output increase in February, following the 500,000 barrels a day being added this month. More »

Saudis lead OPEC+ majority opinion against February supply increase

The difference of opinion between Saudi Arabia and Russia, the two de-facto leaders of OPEC+, could make for another tricky meeting. While Russia appeared to be outnumbered, the group typically requires a consensus among all members before concluding talks. More »

Saudis urge restraint as OPEC+ meets on oil production hikes

“At the risk of being seen as a killjoy in the proceedings, I want to urge caution,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the start of the group’s video conference on Monday. “The new variant of the virus is a worrying and unpredictable development.” More »

Iran seizes South Korean-flagged tanker in Persian Gulf

The seizure follows a series of shipping security incidents in the Persian Gulf. The region and the Red Sea have been a hotbed for attacks on vessels in recent years, with tensions flaring between Saudi Arabia and Iran. More »

Pakistan’s new pipeline with Russia to increase LNG import capacity

Pakistan has become one of the top emerging markets for the super-chilled fuel in recent years as domestic gas production has plateaued, forcing the nation to import cargoes. More »

WTI crude nears $50 as oil becomes an inflation hedge

A decline in the dollar is boosting the appeal of commodities that are priced in the currency, while as investors return to their desks at the start of the year, crude has emerged as a favored trade to hedge against a rise in inflation. More »

OPEC+ 2021: How to increase oil output without undoing 2020’s gains

The alliance of producers led by Saudi Arabia and Russia must decide whether it can continue to restore crude supplies without capsizing the price recovery they spent most of 2020 working to achieve. More »

U.S. stock exchange may delist Chinese oil companies

China’s Ministry of Commerce said the country would take necessary action to protect the rights of Chinese companies, and that it hoped the two countries could work together to create a fair and predictable environment for businesses and investors. More »

Iran to invest $1.2B in bid to double oil production

National Iranian South Oil Co. and Iranian Offshore Oil Co. will sign deals with domestic contractors covering onshore fields in Bushehr, Fars, Khuzestan, and Kohgiluyeh and Boyer-Ahmad provinces, National Iranian Oil Co. said in a statement. More »

Iraq signs $2B oil prepayment deal with China’s ZenHua Oil

It’s the first time Baghdad has sought a prepayment deal, in which oil is effectively used as security for a loan. It’s also the latest example of China lending to struggling oil producers via state-controlled trading companies and banks. More »

Egypt taps Exxon, Chevron for billion-dollar offshore exploration program

This deal, plus more to be announced, target drilling 23 wells in nine regions in the Mediterranean and three regions in the Red Sea, with a minimum total investment seen at $1.4 billion. More »

Total reduces Mozambique LNG staff as rebels step up attacks nearby

Fighters linked to Islamic State raided a town less than 5 kilometers (3 miles) from the construction camp this week of what is Africa’s largest private investment, ratcheting up risks for the planned LNG export terminal on Mozambique’s northern coastline. While the heavily guarded site hasn’t been attacked yet, militants have made threats that they may do so. More »

Venezuelan crude exports nosedive as OPEC+ preps output increase

Venezuela has managed to defy sweeping U.S. sanctions against state-owned producer PDVSA and keep shipping some crude abroad, mainly to China. But Washington has intensified the crackdown on companies that break the restrictions, and PDVSA has struggled to sell its barrels in Asia. More »