Why Oil Prices Are Surging (30 June 2018): By Robert Rapier - Oil prices rose last week to the highest levels since 2014. What was behind this price surge? Ironically, it was an announcement by OPEC that it would increase production. Oil prices had weakened over the past month following a call from President Trump for OPEC to increase production in response to rising oil prices. After rising above $70 per barrel in May, the price of West Texas Intermediate (WTI) had dropped back to $65/barrel leading up to OPEC’s June 22nd meeting. (Source: Oil Price)
Oil Rig Count Falls Amid Stagnating Production (29 June 2018): By Julianne Geiger - Baker Hughes reported another dip in the number of active oil and gas rigs in the United States today. Oil and gas rigs decreased by 5 rigs, according to the report, with the number of oil rigs decreasing by 4, and the number of gas rigs decreasing by 1. The oil and gas rig count now stands at 1,047—up 107 from this time last year. Canada, for its part, gained 12 oil rigs for the week—after last week’s gain of 21 oil and gas rigs. Despite weeks of significant gains, Canada’s oil and gas rig count is still down by 17 year over year. (Source: Oil Price)
Moon Fuel: A New Multi-Trillion Dollar Treasure (27 June 2018): By MINING.com - India’s space program wants to go where no nation has gone before – to the south side of the moon. And once it gets there, it will study the potential for mining a source of waste-free nuclear energy that could be worth trillions of dollars. The nation’s equivalent of NASA will launch a rover in October to explore virgin territory on the lunar surface and analyze crust samples for signs of water and helium-3. That isotope is limited on Earth yet so abundant on the moon that it theoretically could meet global energy demands for 250 years if harnessed. (Source: Oil Price)
Trump's targeting of bilateral petroleum deficit is nonsensical (27 June 2018): The US Trump administration struck the opening blows but China has already identified energy as a key pain point. Oil, gas, coal and solar power are all set to take some bruises. In January, the US put a levy of 30 per cent on all imported solar cells, and at the end of May, it imposed tariffs on steel and aluminium from the EU, Mexico and Canada. A compromise was announced in May over US demands that China reduce its $375 billion annual trade surplus with the US by $200bon. China’s growing economy was in any case set to take more energy and agricultural produce from America. (Source: The National (UAE))
China trade fight puts billions in U.S. energy projects in doubt (26 June 2018): By ARI NATTER - WASHINGTON (Bloomberg) -- China Energy Investment Corp. pledged almost $84 billion in shale gas and chemical manufacturing projects across West Virginia after President Donald Trump’s trade mission to Beijing in November, but when it came time to discuss details officials were a no-show. The chief executive and other officers of the world’s largest power company canceled a visit to a petrochemical conference in Pittsburgh, where the projects were to be discussed, casting doubt on their fate amid an escalating trade war between the U.S. and China.
Goldman Blames Canada For WTI Price Spike (25 June 2018): By Tsvetana Paraskova - While all eyes watched the OPEC saga last week, there was an outage in Canada’s oil sands that will cut production at least through July, supporting the U.S. benchmark prices, according to Goldman Sachs. Following a power outage at Syncrude Canada’s oil sands facility near Fort McMurray, Alberta, last week, oil production is expected to be offline at least through July, spokesman Will Gibson told Reuters on Friday. The Fort McMurray site has a capacity to produce up to 360,000 bpd. (Source: Oil Price)
Korea Rapprochement Could Revive Energy Megaproject (24 June 2018): By Viktor Katona - The June 12 Trump-Kim summit in Singapore has had an overall positive effect on the oil industry, cooling down expectations about the imminence of a major conflict driven by the reckless behavior of leading political figures. Yet behind numerous geopolitical consequences, the discussion of which has taken up most of the media space, the summit also gave rise to smaller, regional ones. One of such is the resurgence of the Russia – North Korea – South Korea gas pipeline, which it seems is back on the agenda of both Moscow and Seoul. Gazprom’s admission that negotiations have been relaunched upon South Korea’s request is a harbinger of significant things to come. (Source: Oil Price)
Opec ministers agree in principle for one million barrels a day output increase (22 June 2018): Opec has reached an agreement in principle to boost oil production, achieving a last-minute compromise that overcame Iran’s threats to veto any supply hike. The preliminary accord allows for an additional 600,000 barrels a day of oil to flow onto the market, about 0.5 per cent of global supply, said a delegate. That reflects a one million barrel-a-day adjustment on paper to the production cuts implemented by the Organisation of Petroleum Exporting Countries and its allies, the delegate said, asking not to be named because the information is private. (Source: The National (UAE))
Equipment arrives for Kuwait’s Al-Zour integrated refining complex (21 June 2018): By Robert Brelsford - OGJ Downstream Technology Editor - The first modules have been delivered for newly formed Kuwait Petroleum Corp. (KPC) subsidiary Kuwait Integrated Petroleum Industries Co.’s (KIPIC) grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait. The first 14 of the 188 modules built at the COOEC-Fluor Heavy Industries Co. Ltd. fabrication yard in Zhuhai, China, were loaded onto a shipping barge and sailed away in May and have arrived in Kuwait, Fluor Corp. said. Remaining modules are under construction at the Zhuhai fabrication yard, the service provider said.
Hedge Funds Turn Bullish On Brent Crude Ahead Of OPEC Meeting (20 June 2018): By Tsvetana Paraskova - For the first time in eight weeks, hedge funds and other money managers boosted last week their net long position in Brent Crude, increasing their bets that Brent oil prices will rise and reducing wagers on lower prices. The first reverse in the net long position in Brent in two months, however, is more a sign that portfolio managers may have completed the profit-taking from the past few weeks and may have felt that they had oversold crude oil, rather than a firm wager that oil prices will rise just ahead of the much-talked-about OPEC meeting later this week, according to analysts. (Source: Oil Price)
OPEC faces a bigger problem in Washington than Trump tweets (19 June 2018): By JAVIER BLAS - VIENNA (Bloomberg) -- American politicians are at it again: punching OPEC. The cartel has often been a bogeyman for U.S. politicians since the first oil crisis in 1973. Now OPEC is facing a renewed political assault in Washington, directly from President Trump’s Twitter account, and quietly, but potentially more dangerously, from Congress. In books and social media postings going back 30 years, Trump has repeatedly attacked OPEC, saying oil prices should be around $30/bbl and arguing OPEC was stealing money from American citizens. (Source: World Oil)
China's tariffs on U.S. oil would disrupt $1 billion monthly business (18 June 2018): SINGAPORE, (Reuters) - China's threat to impose duties on U.S. oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion per month. In an escalating spat over the United States' trade deficit with most of its major trading partners, including China, U.S. President Donald Trump said last week he was pushing ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6. China said Friday it would retaliate by slapping duties on several American commodities, including oil. (Source: Hydrocarbon Processing)
The Fourth Industrial Revolution Is On The Horizon (16 June 2018): By Editorial Dept - Just a few short years after economists and social theorists declared that we had entered the Third Industrial Revolution, the next revolution is already on the horizon. Fueled by artificial intelligence, 5G, the internet of things and augmented reality, these next steps might be the biggest leap forward humanity has ever made. And make no mistake, this revolution will be built on data. Increasingly, data is being harvested from every aspect of our day-to-day lives. From our purchases to the number of steps we take to our sleep habits or Facebook rants, it’s all being recorded. (Source: Oil price)
Rosneft says it is "comfortable" with $70-$80 oil (15 June 2018): By ELENA MAZNEVA - MOSCOW (Bloomberg) -- Rosneft PJSC’s said crude at $70 to 80/bbl was a “comfortable level” and expressed satisfaction with the results of Russia’s joint supply cuts with OPEC, just a week before talks that could phase them out. The producers working together have “restored balance to the market by cutting oil production,” Russia’s biggest oil company said in a statement Friday, citing comments its CEO Igor Sechin made at a meeting in Moscow on Thursday with Saudi Arabia’s energy minister. (Source: World Oil)
U.S. Solar Growth Undeterred By Solar Panel Tariffs (14 June 2018): By Irina Slav - New solar generation capacity in the United States hit 55 percent of total new generation capacity additions in the first quarter of the year, despite the tariffs on imported PV panels that worried the industry, a study by the Solar Energy Industries Association and GTM Research revealed. At 2.5 GW new solar additions were up an impressive 13 percent on the year, SEIA and GTM Research said in their report, adding that the prospects for the medium term remain very upbeat. This year, new solar additions should be in line with the 2017 figure at 10.8 GW, but in 2019 new solar capacity will grow and this growth will only accelerate as we move into the next decade. (Source: Oil Price)
Trump renews Twitter assault on OPEC, pushing to cut oil prices (13 June 2018): By TINA DAVIS AND WILL KENNEDY - NEW YORK and LONDON (Bloomberg) -- Donald Trump renewed his Twitter assault on OPEC, pushing the case for lower oil prices a week before the cartel meets to set production policy. "Oil prices are too high, OPEC is at it again. Not good!,” the president tweeted on Wednesday morning. It’s the second time he’s used social media to rail against the Organization of Petroleum Exporting Countries. He made similar comments in April. (Source: World Oil)
America's LNG exports may double prices by 2040 as demand surges (12 June 2018): By RACHEL ADAMS-HEARD - NEW YORK (Bloomberg) -- Exports of U.S. liquefied natural gas may double prices for the fuel by 2040, but rising output and better trade balances will soften the blow to consumers, according to a study commissioned by the Energy Department. There’s an almost 50% chance of gas reaching $5 to $6.50/MMbtu over the next two decades, the study shows. But shipments of LNG overseas will boost the U.S. economy, while higher output will meet most of the export boost, according to the report, conducted by NERA Economic Consulting. (Source: World Oil)
OPEC resistance to Saudi supply plan grows with Iraqi defiance (11 June 2018): By GRANT SMITH AND NAYLA RAZZOUK - LONDON and DUBAI (Bloomberg) -- Iraq said OPEC should resist pressure to increase oil supplies, strengthening opposition to plans by Saudi Arabia as the group prepares to meet next week. OPEC’s second-biggest producer said supply curbs by the cartel haven’t yet achieved their purpose, with oil prices still below the desired level. Its defiance follows similar resistance from Iran and Venezuela, meaning three of the five countries that founded OPEC now oppose the Saudi plan. (Source: World Oil)
EVs see record sales again in 2017
Over 1 million electric cars were sold in 2017 – a new record – with more than half of global sales in China. The total number of electric cars on the road surpassed 3 million worldwide, an expansion of over 50% from 2016. In terms of share, Norway remains the world’s most advanced market for electric car sales, with over 39% of new sales in 2017. Iceland follows at 11.7%, then Sweden at 6.3%. (Source: www.iea.org)
Will Iran Pursue Relations With North Korea? (9 June 2018): By Yale Global - Syria's Bashar al-Assad is begging for a trip to Pyongyang as Donald Trump prepares for a summit with Kim Jong-un. Hollywood would reject such a script as outlandish, yet the scenario offers a reminder of the connections among Syria, Iran and North Korea – and some justification for different treatment by the current U.S. administration. The U.S. president expresses hope of signing a denuclearization agreement with North Korea after tearing up the U.S. agreement with Iran, inspiring easy comments on the irrationality of Trump’s foreign policies. Breaking the convergence between the North Korea and Iran may prove essential. (Source: Oil Price)
Russia's Sibur says new gas chemical complex will cost up to $8 bln (8 June 2018): MOSCOW, (Reuters) - Russian petrochemical company Sibur said its plans to build a gas chemical complex in Russia's Far East will require preliminary investments of up to $8 billion and it is still looking for Asian partners. Sibur said a year ago that it had been in talks with a number of Chinese investors about participating in the project to build the complex in Amur. Sibur's Chief Executive Officer Dmitry Konov told Reuters in a recent interview, that the company, Russia's largest petrochemicals company, was still talking to investors, without giving details on their progress. (Source: Hydrocarbon Processing)
Elon Musk Survives Attempted Coup (6 June 2018): By Jon LeSage - Tesla chief Elon Musk just survived the first serious attempt by major investors to cut back his power in the company. Several shareholder funds had been demanding that three of Musk’s hand-picked board members — directors Antonio Gracias, James Murdoch and his brother, Kimbal Musk — be removed from office. They also wanted CEO and chairman Musk’s authority to be softened by taking away one of his titles. The chief executive has been under intense pressure this year with production targets being missed, debt increasing, and a series of crashes taking place involving its Autopilot system. The company has faced a series of negative analyst reports and attempts by shareholder groups to shake up the board and Tesla’s corporate strategy. (Source: Oil Price)
Shipping industry to scrap the most oil tankers in more than five years (4 June 2018): Reuters - The shipping industry will this year scrap the largest number of oil tankers in more than five years in a move driven by weak earnings, firm prices for scrap steel and the need to prepare fleets for strict new environmental regulations. The surge in scrapping underscores how the sector is grappling with one of its worst crises, hit hard after rates for transporting oil plunged to their lowest in several years - largely due to excess tanker supply and tepid demand as members of the Opec's production cuts bite. (Source: The National (UAE))
Total says chances of Iran sanctions exemption 'very slim': AFP (1 June 2018): French oil major Total said on Friday the probability of winning an exemption from US sanctions against Iran to continue a major gas field project was very faint. The energy giant had already warned that, unless Washington granted it a waiver, it would pull out of the South Pars 11 project which it started in July 2017, two years after Western powers signed a nuclear deal with Tehran prompting the return of many businesses to Iran. But earlier this month, President Donald Trump announced his withdrawal from the deal, and told companies that they face sanctions if they do business with Iran.
U.S. Oil Rig Count Sees Slight Increase Amid Record Production (1 June 2018): By Julianne Geiger - US drillers added 1 rig to the number of oil and gas rigs this week, according to Baker Hughes, with oil rigs increasing by 2 and gas rigs dipping by 1. The oil and gas rig count now stands at 1,060—up 144 from this time last year. The Cana Woodford basin saw the biggest increase in the number of rigs, at 3; The Permian lost one. Meanwhile, neighboring Canada gained 18 oil and gas rigs for the week. (Source: Oil Price)