Chevron, Enterprise Products Team Up For Texas Oil Export Terminal (31 July 2019): By Tsvetana Paraskova - Enterprise Products Partners has signed a long-term agreement with Chevron, supporting Enterprise’s final investment decision to build an offshore crude oil export terminal on the Texas Gulf Coast. Chevron, for its part, will benefit from an agreement with the developer of the new export terminal to ship its growing Permian production from the Texas fields to export markets. Enterprise Products said last year that it plans to develop an offshore crude oil export terminal off the Texas Gulf Coast that would be able to fully load the biggest oil tankers in the world capable of carrying 2 million barrels of oil each. (Source: Oil Price)
Oil edges up ahead of expected US interest rate cut (30 July 2019): Oil edged up on Tuesday on expectation the US Federal Reserve will cut interest rates for the first time in more than a decade as the central bank seeks to improve market liquidity and support global economic growth. Optimism over the resumption of China-US trade talks, rising Middle East tensions following the seizure of a British tanker by Iran’s revolutionary guard, and the ongoing production cuts by Opec and its allies are also supporting oil prices. International benchmark, Brent crude was up 0.6 per cent to $64.12per barrel at 10.12am UAE time. US crude rose 0.7 per cent, to $57.27 per barrel. (Source: The National (UAE))
Upgrading Cold-War nuclear sites proves a hot potato (29 July 2019): Zoltan Gorog is ready for the Russian invasion; the real estate agent in the Hungarian town of Paks has added Cyrillic to the blue and white sign hanging above his offices. He’s set up empty desks for when he needs to expand to cope with the surge in business. Rather than a flood of people, though, there’s barely a trickle. Five years after Hungary’s government signed an agreement with Russian nuclear energy company Rosatom to build two new reactors at the aging plant near the town, there’s still no start date for the bulk of the work. (Source: The National (UAE))
Growing Fear Of Global Economic Slowdown Caps Oil Price Gains (26 July 2019): By Tsvetana Paraskova - Oil prices nudged up early on Friday, supported by weekly U.S. reports of inventory draws and simmering tensions in the Middle East, while worsening outlooks on the global economy capped price gains. At 05:26 a.m. EDT on Friday, WTI Crude was up 0.46 percent at $56.28 and Brent Crude was trading up 0.30 percent at $63.45, with prices on course to post a weekly gain this trading week.
Oil Dips On Renewed Kuwait/Saudi ‘Neutral Zone’ Oil Production Talks (25 July 2019): By Julianne Geiger - Oil prices cheered on Wednesday following the EIA’s report that crude oil inventories in the United States had drawn down by almost 11 million barrels. But the levity among the bulls may soon be over as Kuwait and Saudi Arabia announced that they have had further discussions about their cooperation in the jointly owned fields known as the Partitioned Neutral Zone. Saudi Arabia’s minister of state for energy affairs met with Kuwaiti officials, according to KUNA, and discussed oil production in the southern neutral zone, to commence after technical issues are put to bed on both sides. (Source: Oil Price)
Fukushima nuclear reactors to shut permanently (24 July 2019): Japan’s Tepco said its board will decide to permanently shut a nuclear power plant near its wrecked Fukushima Dai-Ichi station amid regional opposition to its use following the 2011 disaster. The utility, officially known as Tokyo Electric Power Co, told Fukushima governor Masao Uchibori that it will decommission the four reactors at the Fukushima Dai-Ni facility, which survived damage sustained from the 2011 tsunami and earthquake. The board will meet to officially decide to scrap the units, the company said Wednesday without providing a date of the meeting. It will cost ¥280 billion (Dh9.54bn) to decommission the facility and the board is scheduled to meet later this month, Kyodo reported. The process will take about 30 years, the company said. (Source: The National (UAE))
Oil Tanker Off Yemen Coast Close To Exploding (23 July 2019): By Irina Slav - An oil tanker idling off the coast of Yemen may be nearing an explosion, The Guardian reports citing experts and a warning by the UN-recognized Yemeni government. The government, which is fighting the Houthi rebels with the support of Saudi Arabia and the UAE, wrote in a letter to the UN that the situation is bad and deteriorating, and that there is an “imminent environmental and humanitarian catastrophe in the Red Sea”. (Source: Oil Price)
Adnoc signs strategic agreement with China National Offshore Oil Corporation (22 July 2019): Abu Dhabi National Oil Company (Adnoc) and state-owned China National Offshore Oil Corporation (CNOOC) signed an agreement to collaborate in the energy sector with the world’s largest oil importer. The agreement, which covers ultra-sour gas development in Abu Dhabi, exploration for offshore hydrocarbons and the sale and purchase of liquefied natural gas, of which China is the largest buyer in the world, was signed as part of the official visit to Beijing by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. (Source: The National (UAE))
Tensions in the Strait of Hormuz show a regional energy security framework is needed (21 July 2019): The US may think its policy of “maximum pressure” has driven Iran’s economy into dire straits. But the Iranians have other straits on their mind. Their adeptness at finding weaknesses in maritime and energy transit around the Arabian Peninsula heightens the question of what, if any, regional security arrangement could be effective. I, and others, have previously observed that Iran would not attempt to block the Strait of Hormuz entirely, except in extremis, but could slow and threaten shipping significantly by low-level deniable attacks and stop-and-search missions painted as reasonable enforcement of regulations. (Source: The National (UAE))
Another Massive Gas Explosion Rocks China, Casualties Unknown (19 July 2019): By Julianne Geiger - A massive explosion has been reported at China’s Yima gas plant in Henan province, damaging buildings in a 3-kilometer radius. The casualties are still unknown as of the time of reporting, with some media citing Chinese television as saying that 18 people had so far been reported as injured, a dozen missing and possibly two confirmed fatalities. Stills taken from Chinese television show giant plumes of smoke in the aftermath of the explosion. (Source: Oil Price)
Nuclear Watchdog: Ohio Delivers “Death Blow” To Renewables (18 July 2019): By Tsvetana Paraskova - As Ohio is close to rescuing FirstEnergy’s two nuclear reactors in the state from early retirement by providing financial subsidies, opponents of the nuclear and coal industries and proponents of green energy say that the move may very well be the “death blow” to renewables in the state. On Wednesday, the Ohio Senate passed a bill to set up subsidies of US$150 million annually for the nuclear power plants Davis-Besse and Perry, owned by FirstEnergy Solutions. The bill is expected to be sent to Ohio Governor Mike DeWine this week, Josh Price, a senior analyst at Height Capital Markets, told Reuters on Wednesday. (Source: Oil Price)
Saipem to develop Saudi Arabia's first offshore wind scheme with UAE firm (17 July 2019): Kingdom has been incorporating more renewables to its grid to free-up crude for export. Italian energy services firm Saipem and the UAE’s Plambeck Emirates signed a memorandum of understanding to build Saudi Arabia’s first offshore floating wind farm, as the world’s largest oil exporter looks to incorporate more renewables into its energy mix. The 500 megawatt project is part of the kingdom’s plan to incorporate 5 gigawatt of wind power into its grid.
U.S. DUC shale backlog declines, except in Permian basin (16 July 2019): By STEPHEN CUNNINGHAM - WASHINGTON D.C. (Bloomberg) --The backlog of DUCs in major U.S. shale plays fell for a fourth straight month, the longest stretch of declines since 2016, as producers came under intense pressure from shareholders to rein in costs while boosting output. The number of drilled but uncompleted wells, or DUCs, fell by 41 to 8,248 in June, according to the Energy Information Administration’s Drilling Productivity Report. That’s down from a record high of 8,315 in February. Demands for fiscal discipline are spurring more producers to finish existing wells. (Source: World Oil)
Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries (15 July 2019): By ZeroHedge - Could a private, Blackwater-type private security firm fire the first shot in the gulf which sees Iran and the United States stumble toward a WWIII scenario? That's what has maritime industry analysts which advise shipping companies operating in the Middle East region concerned amid the latest soaring tensions, per a new Reuters report: Shipping companies sailing through the Middle East Gulf are being urged to avoid having private armed security guards onboard as the risk of escalation in the region rises, industry associations say.
OPEC sees new oil surplus in 2020 as U.S. shale surges again (11 July 2019): By GRANT SMITH - LONDON (Bloomberg) -- A week after OPEC agreed to keep oil production restrained until early next year, the group’s first forecasts for 2020 showed it faces an even longer and tougher challenge. The Organization of Petroleum Exporting Countries, which pumps 40% of the world’s oil, estimated that it’s producing about 560,000 bpd more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Supplies from producers outside the cartel will grow by more than twice as much as global oil demand, it forecast.
Nuclear Is Japan’s Only Choice For Energy Independence (11 July 2019): By Global Risk Insights - Japan has adopted a peaceful approach towards nuclear technology, limiting it to the use of supplying electricity. This is despite being the only nation to have suffered devastating effects of nuclear warfare. However, the 2011 tsunami triggered an accident at the Fukushima nuclear plant and dramatically changed public sentiment with widespread protests calling for the abandonment of this energy source. The balance between these demands and the use of reliable and affordable energy supply is significantly conditioning Japanese politics. (Source: Oil Price)
Oil Jumps On Hefty Crude Draw (10 July 2019): The Energy Information Administration reported a huge oil inventory draw of 9.5 million barrels for the week to July 5, confirming and even exceeding the American Petroleum Institute’s estimate of an 8.13-million-barrel draw. Today’s figure follows an estimated a 1.1-million-barrel draw in oil inventories for the last week of June. In gasoline, the EIA reported a draw of 1.5 million barrels for last week, which compares with a draw of 1.6 million barrels a week earlier. Gasoline production averaged 10.4 million bpd, which compares with 9.9 million bpd a week earlier. (Source: Oil Price)
Mozambique delays raising $2.3 billion for Anadarko gas project (9 July 2019) MAPUTO (Bloomberg) --Mozambique has put on hold plans to raise funds for its portion of Anadarko Petroleum’s $20 billion gas project, as the government tries to limit its debt sales following a default about three years ago. Empresa Nacional de Hidrocarbonetos, the national oil company, will revive efforts to raise $2.3 billion for the liquefied natural gas project probably later in the year, after Anadarko starts implementing it, said ENH Chief Executive Officer Omar Mitha. That will help reduce risk and result in better terms, he said. (Source: World Oil)
Goldman Sachs: Shale Boom Caps Real Oil Price Gains Until 2020 (8 July 2019): By Tsvetana Paraskova - U.S. shale’s production growth will outstrip global oil demand growth this year, capping oil price gains until 2020, according to Goldman Sachs. U.S. oil production is set to rise by 1.3 million bpd in 2019 and additional 1.2 million bpd in 2020, Reuters quoted Goldman Sachs as saying in a note on Sunday. To compare, the investment bank sees global oil demand growth this year slowing to just 800,000 bpd, so U.S. shale growth is expected to outpace demand growth and keep a lid on oil prices, despite the fact that OPEC and its Russia-led non-OPEC allies rolled over their production cuts into the end of March 2020. (Source: Oil Price)
The Biggest Oil & Gas Winners In Q2 2019 (7 July 2019): By Robert Rapier - The first half of the year is in the books. Following its best quarterly performance in nearly ten years in the first quarter, the S&P 500 returned 3.8 percent in the second quarter. For the first half of 2019, the S&P 500 returned 17.3 percent. According to the Select Sector SPDR exchange-traded funds (ETFs) that divide the S&P 500 into sector index funds, every sector gained in the first half of the year. However, there were steep sell-offs during the second quarter of crude oil and natural gas. The price declines caused the energy sector to decline in the second quarter; the only sector to see a second quarter decline. (Source: Oil Price)
Crude oil prices fall 1% on fears for global economy (5 July 2019): Crude oil prices fell on Friday as concerns over the outlook for global economic growth outweighed elevated tensions in the Middle East that could disrupt supply routes and send prices higher. US West Texas Intermediate (WTI) crude futures were down 1.1 per cent at $56.72 per barrel this morning. WTI is a grade of crude oil that is used as a benchmark in oil pricing. Analysts said oil was under pressure because fears over future demand amid trade disputes threatening global economic growth. However, losses were checked by commitment to cut production from the world's largest exporters - including Opec members and other producers such as Russia - a grouping known as Opec+. (Source: The National (UAE))
Oilfield service industry fighting for life in a world of cheap oil (2 July 2019): By DAVID WETHE - HOUSTON (Bloomberg) --For the oilfield services industry, it’s no longer about merely navigating a downturn. It’s now about survival. Five years after crude began its plunge to less than $30/bbl from more than $100/bbl, the companies that drill and frack wells are living in a new world. The producers they work for have become increasingly efficient and cost-conscious, reacting to shareholder demands for payback and a crude market that’s recovered only part of that brutal decline. (Source: World Oil)
OPEC’s Giants Declare Support For New Deal (1 July 2019): By Irina Slav - After weeks of speculation, it’s official: Russia, Saudi Arabia, and Iraq have declared their support for an extension to the oil production cuts OPEC and its partners agreed last December to regulate global supply and prices. Reuters reported Russia’s President Vladimir Putin had announced the latest update ahead of the OPEC meeting beginning today in Vienna, saying Russia had agreed with Saudi Arabia to extend the cuts by six to nine months. The cuts total 1.2 million bpd, of which OPEC is supposed to cut 800,000 bpd. (Source: Oil Price)