Death toll raised to 79 in Mexico pipeline blast; new focus on fuel theft (20 January 2019): TLAHUELILPAN, Mexico (Reuters) – A blast at a gasoline pipeline in Mexico that killed at least 79 people has put renewed attention on the government’s strategy to stop fuel theft, with some relatives saying fuel shortages stemming from the plan led people to risk their lives. Fuel thieves punctured the Tula-Tuxpan pipeline a few miles from one of Mexico’s main refineries on Friday. Up to 800 people flocked to fill plastic containers from the 7-meter (23-ft) gasoline geyser that ensued, officials say. A couple of hours later, it exploded. Mexican Health Minister Jorge Alcocer said on Sunday the number of dead in the incident had risen to 79 people.
Global Gas Production Reaches Highest Growth In A Decade (18 January 2019): By Rystad Energy – The industry achieved a net production increase of 164 billion cubic metres (bcm), which represents the highest production growth since 2010, according to research by Rystad Energy. “Year-on-year growth was clearly driven by North America, which accounted for 71 bcm, followed by the Middle East with 39 bcm. Europe was the only region that experienced a reduction in 2018,” Rystad Energy partner Espen Erlingsen said. Rystad Energy forecasts the supply surge will continue in the coming years. Expected average annual growth from 2018 to 2021 is 115 bcm, which would outpace the average annual growth from 2011 to 2017 by 90%.
Hitachi adds to UK’s woes as it fails to negotiate nuclear energy deal (17 January 2019): Adding to Britain’s Brexit woes, Japanese multinational Hitachi inflicted a blow on the government on Thursday as it abandoned plans to construct a £16bn nuclear power station in Wales. The £16 bn Wylfa plant on Anglesey was meant to be the next in a line of new nuclear projects, but Hitachi has been unable to agree a deal with the British government. The decision constitutes a serious blow to the UK government, which is hoping to secure major investments ahead of its official departure from the EU bloc in March 2019. (Source: The National (UAE))
EIA: OPEC Production To Fall By 1 Million Bpd This Year (16 January 2018): By Irina Slav – The Energy Information Administration expects OPEC’s combined crude oil production this year to be 1 million barrels per day lower than in 2018, when the cartel produced an average 31.92 million bpd, the authority said in its latest Short-Term Energy Outlook. This, however, won’t be enough to push prices higher if the EIA turns out correct about the trend in non-OPEC production, led by the United States, which the EIA sees rising by 2.4 million bpd this year from last. In 2020, OPEC’s production is likely to remain flat on 2019, with all the growth in global supply coming from the United States, Brazil, Canada, and Russia, the EIA also said. This is the authority’s first STEO that covers 24 months. (Source: Oil Price)
Oil Rises After Choppy Start To The Week (15 January 2019): By Tsvetana Paraskova – Oil prices rose by roughly 2 percent early on Tuesday, recovering from Monday’s loss which came after China reported weak trade data, signaling that its economic growth could be slowing down. At 10:39a.m. EDT on Tuesday, WTI Crude was up 2.34 percent at $51.69, while Brent Crude traded up 1.78 percent at $60.04. After a good start to the year earlier this month, oil prices dipped 2 percent on Monday, after weak Chinese economic data had investors, traders, and analysts worried again about an economic slowdown that could weigh on fuel and crude oil demand growth. (Source: Oil Price)
US-China trade tensions had limited impact on oil demand, says Saudi energy minister (14 January 2018): The US-China trade war has had only limited effect on oil demand, with Opec+ prepared to take “appropriate response” should there be a spillover effect, said the Saudi energy minister. “We’ve seen the fluctuations of trade and some of it may be impacted by the US China trade issues, but I think overall global economy remains strong enough,” Khalid Al Falih said in Abu Dhabi. “The impact is going to be mild and shallow and short. Oil demand remains sufficiently strong and we’re vigilant enough to take appropriate response if there’s any impact on demand.” (Source: The National (UAE))
Russian compliance will pick up on a ‘gradient scale’, says Opec secretary general (13 January 2018): Russia’s compliance with a global oil cut is expected to pick up, with the Opec + alliance set to finalise partnership on supply reductions at an extraordinary meeting in April, according to Opec’s secretary general. “You have a combination of private and state companies, unlike in some of our member countries where you have a national oil company, so their [Russian] implementation normally stands on a gradient scale but they ramp up quickly to reach their target,” Mohammed Barkindo told reporters in Abu Dhabi on Sunday. (Source: The National (UAE))
China To Only Approve New Solar Projects If They Are As Cheap As Coal (11 January 2018): By Irina Slav – China will only approve new solar and wind power capacity if it matches the country’s coal benchmark on price, Forbes’ John Parnell reports, adding a project approved last month became the first to produce solar at a cost as low as coal-fired power plants. The requirement for price matching with coal is part of a new set of conditions drafted by China’s National Development and Reform Commission, which will be in effect until 2020 in a bid to handle all the problems resulting from the fast growth in solar and wind capacity installation in recent years, such as energy waste because of grid logjams. (Source: Oil Price)
Why natural gas is the fuel of the 21st century (10 January 2018): Heavy storms, brush fires and other extreme weather events are putting the effects of greenhouse gas emissions into stark focus and causing increasing concern over climate change. In December, the National Climate Assessment, issued by several US federal agencies, estimated that greenhouse gas emissions are already leading to rapid climate change which will only grow in severity in the years to come. Oil and gas producers have found themselves at the centre of this issue, unfairly framed as willingly selling a product that is harming the world as if they were tobacco companies. Public pressure to cut down on greenhouse gas emissions and reduce demand for oil and gas has caused many oil companies to shift business … (Source: The National (UAE))
New Audit Shows Higher Aramco Oil Reserves (9 January 2018): By Irina Slav – An independent audit of the crude oil reserve base of Saudi Aramco is expected to result in a slight upward revision of the Kingdom’s oil wealth, Reuters reports, citing a source with knowledge on the matter. The audit is part of preparatory work ahead of Aramco’s once highly anticipated and now indefinitely delayed initial public offering. For the last three decades, the Saudi major has been reporting the same number for its reserves, at 261 billion barrels, as per BP calculations. However, now that Aramco is preparing to become a public company, transparency is required about its financial performance and reserve base, hence the independent audit. (Source: Oil Price)
MARKET WATCH: Higher oil prices attributed to production-cut compliance (8 January 2018): By Paula Dittrick – OGJ Upstream Technology Editor – The light, sweet crude oil price for February rose above $48/bbl on the New York market Jan. 7 while Brent crude oil price for March settled above $57/bbl, which analysts attributed to production-cut plans by the Organization of Petroleum Exporting Countries and others. OPEC officials told the Wall Street Journal that Saudi Arabia plans to cut crude exports to about 7.1 million b/d by Jan. 31 in efforts to support Brent oil prices of $80/bbl or higher. On Jan. 8, the WSJ reported Saudi oil exports have declined since late last year. Saudi Arabia exported about 7.3 million b/d in December 2018 and 7.9 million b/d in November 2018.
Energy Experts Are Watching This Hotspot In 2019 (7 January 2019): By Vanand Meliksetian – Historically the Mediterranean hasn’t been the focus of oil and gas producing companies. With the exception of Algeria and Libya which owe their energy industry to the Sahara region. Recent discoveries, however, have put the Eastern Mediterranean in the spotlight. In the case of Cyprus, the unresolved division of the island and overlapping claims with Turkey have created an extra layer of complexity when it comes to attracting international energy companies. Despite close political relations between Qatar and Turkey, Qatar Petroleum has joined ExxonMobil in a joint venture concerning gas exploration in the EEZ of Cyprus. Ankara, however, has remained strikingly silent on Doha’s participation. (Source: Oil Price)
Trump credits his ‘talent’ for oil price drop (5 January 2018): President Donald Trump said Opec “is essentially a monopoly,” even as he credited his own “talent” for having brought down oil prices. “Four months ago, oil hit $83 a barrel,” Mr Trump told reporters in the Rose Garden after meeting with Congressional leaders to try and reach a deal on the partial government shutdown. Oil “was heading to $100 and then it could have gone to $125″. Mr Trump repeated his statement from earlier this week that his phone calls made the difference in bringing down the oil price, adding: “After I made some phone calls to Opec and the Opec nations – which is essentially a monopoly – all of a sudden, it started coming down,” he said. “Didn’t happen by luck, it happened through talent.” (Source: The National (UAE))
Oil Rises On Hopes Of A U.S.-China Trade Deal (4 January 2019): By Irina Slav – After starting the New Year in the red, crude oil stabilized higher today on reports that China plans to hold talks with the United States next week to settle their trade balance differences, Reuters reports. The trade war between Washington and Beijing was one of the biggest reasons for heightened uncertainty around oil prices as China is one of the world’s top importers of the commodity and any sign that demand for it might waver immediately puts pressure on prices. Another cause for concern has been the ripple effect of the trade war on other economies. (Source: Oil Price)
U.S. Gasoline Prices Could Be About To Skyrocket (3 January 2018): By Irina Slav – Gasoline prices at the pump are at more than a year’s low, but this may change in the coming months, according to the head of petroleum analysis at GasBuddy, Patrick DeHaan, as quoted by MarketWatch. DeHaan said that right now, the average price per gallon of gasoline in the United States was at the lowest for the start of a year since 2016, when the metric was also falling sharply to end up at a low of US$1.66 per gallon. “Americans are spending $260 million less on gasoline today than they did some 80 days ago,” the analyst said. (Source: Oil Price)
OPEC+ caps prove no barrier to record Russian output in 2018 (2 January 2018): By JAKE RUDNITSKY AND DINA KHRENNIKOVA – MOSCOW (Bloomberg) — Russia’s oil production reached a post-Soviet high last year even as it coordinated supply with OPEC. Output averaged 11.16 MMbpd, up 1.6% from 2017, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That compares with an all-time high of 11.416 MMbpd in 1987, BP figures show. During the first half of last year, Russian volumes were capped as part of an agreement with OPEC to support prices. But after the market rebounded, the producers rolled back their cuts, with Russia rapidly raising output to reach 11.45 MMbpd in December. (Source: World Oil)