Oil Prices Remain Range Bound For The Foreseeable Future (30 November 2019): By Tom Kool - U.S. West Texas Intermediate crude oil is trading lower early Friday on light post-holiday volume. Some traders are saying the move is in reaction to renewed tensions between the United States and China and increasing doubts the two economic powerhouses will reach a Phase One trade deal agreement before new U.S. tariffs kick in on December 15. The two stories driving the price action throughout the month have been optimism over a U.S.-China trade deal, which helped dampen demand growth concerns, and the hope that OPEC and its allies would extend their production cuts into at least June 2020, which helped soften oversupply worries. For most of this holiday-shortened week, the key price drivers have been weekly inventories reports. (Source: Oil Price)
Saudi Aramco’s IPO Oversubscribed, Reels In $44 Billion (29 November 2019): By Tsvetana Paraskova - Saudi Arabia’s oil giant Aramco has attracted total bids of US$44.3 billion for its initial public offering—or 1.7 times the money the Kingdom hopes to raise with the world’s largest listing ever. According to one of the IPO’s lead managers, Samba Capital, quoted by Bloomberg, the IPO has attracted a total of 166 billion Saudi riyals as of Friday, after the subscription period for retail investors ended on Thursday, and less than a week before the end of the subscription period for institutional investors. Saudi Arabia will be offering up to 0.5 percent in Aramco to retail investors, while in total the Kingdom plans to list 1.5 percent of the company on the Saudi stock exchange, the Tadawul. (Source: Oil Price)
Is This The Best Place In The World For Energy Investors? (27 November 2019): By Haley Zaremba - BP’s 2019 energy outlook projects that big things are in store for India’s energy sector. The country’s energy demand is set to balloon by 156 percent by 2040, at which point BP has projected that the subcontinent will account for a whopping 11 percent of global energy consumption--double its current share. BP’s biggest takeaways for India’s role in the future of our global energy landscape are:
- India accounts for more than a quarter of net global primary energy demand growth between 2017-2040.
- 42 percent of this new energy demand is met through coal, meaning CO2 emissions roughly double by 2040.
- Gas production grows but fails to keep pace with demand, implying a significant growth in gas imports. ... (Source: Oil Price)
The Next Stage Of The Solar Boom Is Already Underway (25 November 2019): By Haley Zaremba - “Every five days, the sun provides the Earth with as much energy as all proven supplies of oil, coal, and natural gas,” reports Singularity Hub in a powerful summation of the potential power of solar energy. “If humanity could capture just one 6,000th of Earth’s available solar energy, we’d be able to meet 100 percent of our energy needs.” The attempt to harness one of the most abundant clean energy resources--sunlight--has been a long and historied endeavor, starting all the way back in the Industrial Revolution when French scientist Alexandre Edmond Becquerellar first discovered that a solar cell had the ability to convert sunlight into electricity through the photovoltaic effect in 1839. While it took a long time before we had the technology to make a commercial solar cell, in the United States, solar power has received government support for nearly 50 years. So why hasn’t solar power--clean, renewable, and overabundant--taken over our energy landscape? (Source: Oil Price)
IEA: Peak Oil Demand Is Less Than A Decade Away (November 2019): Global oil demand will reach its peak in the mid-2020s and plateau around 2030, the International Energy Agency said in its World Energy Outlook for 2019. Until about 2025, the IEA said, global oil demand will expand by about 1 percent annually, exceeding 100 million bpd and reaching 105.4 million bpd. After that growth will shrink substantially and demand will reach a plateau at less than 110 million bpd—106.4 million bpd. The bad news for the oil industry has a silver lining, however. According to IEA, natural depletion will shrink oil supply and lead to an increase in prices. These, the agency said, could average $90 a barrel in 2030 and $103 a barrel in 2040.
Saudi Aramco IPO attracts 73 billion riyals in first five days of the offering (22 November 2019): Saudi Aramco's initial public offering (IPO) has attracted approximately 73 billion riyals (Dh71.49bn) in institutional and retail orders so far, Saudi Arabia's Samba Financial Group said on Thursday. Some 1.8 million retail subscribers have injected more than 14bn riyals into the IPO so far, Samba, one of the banks managing the deal, said in a statement sent to Reuters. Institutional subscriptions amounted to 58.4bn riyals and 1.82bn subscribed shares, it added. "Retail and Institutional subscription levels for the first five days of the offering have reached an unprecedented scale, demonstrating the confidence of investors in Saudi Aramco," said Rania Nashar, vice chairman of Samba Capital, the investment arm of the bank, in the statement. (Source: The National (UAE))
China Adds Wave Of New Coal Fired Power Plants (21 November 2019): In recent months, eco-activist Greta Thunberg who has become synonymous with the global climate change movement has made consistent appeals at the developed world, demanding an end to its evil, polluting ways. She even went so far as to sue some of the bigger carbon polluters in the world — Argentina, Brazil, France, Germany, and Turkey — for violating her rights as a child by failing to adequately reduce emissions. (Source: Oil Price)
Fracking Under Fire In California (20 November 2019): By Nick Cunningham - California Governor Gavin Newsom just dealt a blow to the oil industry, placing a temporary moratorium on new fracking permits in the state until scientists complete an independent review of the practice. The action also included a temporary prohibition on new permits for steam-injected oil drilling, which comes in the wake of a major oil spill at a Chevron-operated site in Kern County earlier this year. The site leaked more than 1.3 million gallons of oil and water. Gov. Newsom also linked the actions to a broader shift away from oil in general. “These are necessary steps to strengthen oversight of oil and gas extraction as we phase out our dependence on fossil fuels and focus on clean energy sources,” Newsom said in a statement on Tuesday. “This transition cannot happen overnight; it must advance in a deliberate way to protect people, our environment, and our economy.” (Source: Oil Price)
This Underdog Could Soon Become The World’s Largest Oil Producer (19 November 2019): Brazil’s Petrobras is on track to become the world’s largest oil producer among publicly listed companies by 2030, based on Rystad Energy’s latest data and forecasts. Brazil’s biggest-ever oil auctions in November were generally deemed to be disappointing, receiving muted interest from international exploration and production companies. However, national oil company Petrobras could not have asked for a better outcome. The world’s fastest growing oil producer gained nearly full control of more than eight billion barrels of oil in the Buzios field, where a sixth floater is being planned. To develop these and other resources off the coast of the South American country, Brazil is set for a whopping $70 billion offshore capital investment spree between 2020 and 2025, solely on field development. This program will have a monumental effect on Petrobras. (Source: Oil Price)
Houthis Rebels Hijack Saudi Ship Carrying Oil Rig (18 November 2019): By Julianne Geiger - The Iranian-aligned Houthis in Yemen have seized a vessel that was towing a South Korean drilling rig that was in the Red Sea, the Saudi-led collation said on Monday, in what is an apparent escalation of tensions in the Middle East following drone attacks and other ship seizures in vital oil shipping lanes. The vessel, the tugboat Rabigh-3, was seized on Sunday, according to the Saudi coalition as reported by Reuters—a development that was confirmed by a Houthi official, who said the vessel would be released if the vessel was confirmed that it was of South Korean origin and not from “countries of aggression”. Saudi Coalition spokesperson Colonel Turki al-Malki characterized the incident as a hijacking “by terrorist elements affiliated to the Houthi militia.” (Source: Oil Price)
The Five Biggest Enemies Of Oil & Gas (17 November 2019): By Julianne Geiger - The oil and gas industry used to be untouchable. It’s not anymore. Enemies have surrounded it in a pincer movement, and now, it’s all-out war. From public sentiment to government meddling, we’ve outlined the five most ruthless adversaries the global industry faces today in a war in which it just might be its own worst enemy.
Enemy #1: The Oil and Gas Industry: Being one’s own worst enemy may sound cliché, but in this case it is particularly apt. The oil and gas industry has done a pretty good job of making itself out to be the bad guy. It has not performed its environmental duties admirably. Exxon, BP, Enbridge--all responsible for tarnishing the public perception for the industry at large. And we don’t even need to point out why. No one can forget.
Money Managers: This Is The Maximum Value Of The Aramco IPO (15 November 2019): By Tsvetana Paraskova - Saudi Aramco is worth no more than US$1.5 trillion, a Bloomberg News poll of money managers showed on Friday, two days before the Saudi oil giant is set to announce a price range for the world’s biggest initial public offering (IPO) ever. According to 40 percent of 24 investors surveyed by Bloomberg, Aramco’s value is between US$1.2 trillion and US$1.5 trillion. The high end of this estimate is still US$500 billion below the coveted US$2 trillion valuation, on which Saudi Crown Prince Mohammed bin Salman has insisted since he announced plans for Aramco to go public more than three years ago. In recent weeks, the Saudis have been reportedly signaling they could be willing to compromise on the valuation and banks now look to hit a valuation of US$1.6 trillion-US$1.8 trillion. (Source: Oil Price)
Tesla Faces Environmental Challenge In European Expansion (14 November 2019): By Tsvetana Paraskova - Tesla may have to cut down trees in a pine forest near Berlin where the U.S. electric vehicle maker plans to build its first factory in Europe, according to Electrek, in an ironic twist just after Elon Musk pledged to donate US$1 million for the planting of 1 million trees. At the end of October, Musk said he would donate for the planting of 1 million trees in forests of need around the globe, and even used the “Treelon” Twitter handle for a few days. Earlier this week, Musk announced with heart emoticons the colors of the German flag that Tesla has picked Berlin for its Gigafactory in Europe. The plant “Will build batteries, powertrains & vehicles, starting with Model Y,” Musk said, and later noted that ‘Berlin rocks.’ (Source: Oil Price)
Deep disparities define the global energy system (World Energy Outlook 2019)
Deep disparities define today’s energy world. The dissonance between well-supplied oil markets and growing geopolitical tensions and uncertainties. The gap between the ever-higher amounts of greenhouse gas emissions being produced and the insufficiency of stated policies to curb those emissions in line with international climate targets. The gap between the promise of energy for all and the lack of electricity access for 850 million people around the world.
Apple Co-Founder Gives Up On Self Driving Cars (12 November 2019): By Jon LeSage - For those betting on 2030 being the tipping point year for autonomous, electric vehicles taking over global new vehicle sales — you might want to take a second look. While 2030 has been named the magic year in a few market reports and conference keynote speeches, the timeline for automated EVs to become the industry norm in global vehicle manufacturing and sales likely will be taking much longer. "The hurdles to battery electric vehicles and complete autonomous driving are still quite high," Honda CEO Takahiro Hachigo recently said in an interview at Honda Motor Co.'s global headquarters. (Source: Oil Price)
The Real Cost Of A $50 Trillion Climate Change Push (11 November 2019): In three weeks, the world's leaders will begin to gather in Madrid for the 25th United Nations Climate Change Conference. The intensity of the global climate strikes this year suggests that the proceedings will be scrutinized as never before. But the decisions made, or not made, will also have repercussions for global markets. We’re transitioning towards a lower carbon economy, albeit at a slower pace than needed to stay within a two degrees Celsius climate scenario (2DS). (Source: Oil Price)
Global energy heavyweights to discuss 'Oil and Gas 4.0' at Adipec (10 November 2019): Chief executives from BP, Total and Eni are among top-brass of the global energy landscape convening for the industry’s must-attend Abu Dhabi. International Petroleum Exhibition and Conference in the capital, which begins on Monday. “Oil and Gas 4.0”, the theme for this year’s Adipec, will explore how upstream companies can navigate the new and challenging times facing the industry. A bearish oil market, slowing global economic growth and demand concerns, as well as a hostile narrative on hydrocarbons, have all overshadowed the industry for much of this year. (Source: The National (UAE))
The Infinite Possibilities Of Interstellar Energy (9 November 2019): By Julianne Geiger - We haven’t the faintest idea whether there is alien life on other planets. If there is, we don’t know if they are more advanced than we are. We don’t know if they burn fossil fuels or if their planet even has fossils. And if aliens are somewhere out there, we don’t know if Elon Musk is one of them, and if so, whether his electric car revolution was an evil plot to overthrow the fossil fuel industry. We’re not sure if tinfoil hats really work. But we do know energy. And if there is an advanced alien civilization out there, they use it. What kind of power juices their spaceship? Some scientists think they know. (Source: Oil Price)
Hydrocarbon Processing Wins at 2019 Folio Awards (8 November 2019): NEW YORK (NOV. 7, 2019) - Hydrocarbon Processing, the downstream processing industry’s leading media and market intelligence provider, was recognized as the best publication in its class at the 2019 Folio: Eddie & Ozzie Awards. Hydrocarbon Processing’s April 2019 issue on “Clean Fuels” claimed the top spot in the B2B, Energy/Utilities/Engineering category, meanwhile Hydrocarbon Processing’s Lee Nichols also received an Honorable Mention in the Editorial Director of the Year section. “This award is a testimony to our editors’ hard work and commitment to editorial integrity as well as their tireless effort to produce the highest quality publication for downstream oil and gas professionals,” Catherine Watkins, Publisher, Hydrocarbon Processing, said. “We are honored to be recognized by our peers.”
Why The U.S. Won't Back Down From Syrian Oil Fields (7 November 2019): By Tsvetana Paraskova - The U.S. military near the oil fields in northern Syria has every right to defend against other forces if oil is threatened, according to Pentagon spokesman Jonathan Rath Hoffman. Proceeds from the oil fields under U.S. control will not go to the United States, rather they will go to the Kurdish allies Syrian Democratic Forces (SDF), according to the spokesman. On Wednesday, a senior State Department official said, commenting on Syrian oil: “Our local SDF allies are reliant upon the oil fields. We also have had – ever since we went in there, and in fact even before we were in most of that Syria, we were doing it from the air – the mission of denying the oil revenues to Daesh, because this was a major source of Daesh money.” (Source: Oil Price)
Musk Hints At Military Use For Tesla’s Cyberpunk Pickup Truck (6 November 2019): By Tsvetana Paraskova - Tesla’s upcoming electric pickup truck, or ‘Cybertruck’ as Elon Musk calls it, looks like an armored carrier of the future, Tesla’s boss said at the Air Force Space Pitch Day, pitching the new truck as a good fit for the U.S. military. “We are going to come out with the Tesla pickup truck, or we call it ‘Cybertruck.’ I mean, it looks like an armored personnel carrier from the future. It doesn’t look like a normal car,” Musk said at the event in San Francisco on Tuesday, at which he mostly discussed SpaceX’s Starship. (Source: Oil Price)
The U.S. Oil Industry Just Did Something It Hasn't Done In 40 Years (5 November 2019): By Tsvetana Paraskova - The first trade surplus in petroleum in more than forty years helped the U.S. post a lower trade deficit in September compared to August, but overall U.S. exports and imports in all sectors also declined as trade spats, tariffs, and slowing global growth weighed on trade. For the first time since 1978, the U.S. recorded a surplus in the petroleum trade, at US$252 million in September, government data showed on Tuesday. The value of petroleum exports stood at US$14.966 billion, while imports were at US$14.714 billion. Both exports and imports in petroleum products in September were lower than in August, which also contributed to the first surplus in the oil trade in 41 years. (Source: Oil Price)
The AI Revolution Could Kill Fossil Fuels (4 November 2019): By Haley Zaremba - With the global carbon emissions tipping point right around the corner and catastrophic climate change becoming an ever more likely outcome for the not-too-distant future, finding a way to curb emissions and encourage cleaner energy production practices has never been so important or so urgent. To that end, it is also imperative that the technology around cleaner energy alternatives to fossil fuels continues to advance and that it does so in a hurry. (Source: Oil Price)
What Broke The Bond Between Oil And Gold? (3 November 2019): By Alex Kimani - For decades, two of the world’s most-watched commodities, oil and gold, have typically moved in tandem. But lately, gold has been on steroids while oil prices have decidedly been on Quaaludes. The big question for traders is whether this is just a separation or an all-out divorce. Higher oil prices tend to drive consumer prices higher because they increase the cost of making and transporting goods. On the other hand, holding gold is a favorite way of protecting against inflation. (Source: Oil Price)
Oil Majors Are Ignoring Climate Targets (2 November 2019): By Nick Cunningham - The carbon bubble “continues to inflate,” according to a new report from Carbon Tracker. And yet no major oil company has aligned its operations with the goals set out in the Paris Climate Agreement. This is not just a matter of bad corporate behavior. The oil industry is charging ahead with oil and gas projects that completely defy climate targets, which means that they are taking on serious financial risk. “Companies who continue to sanction higher-cost projects which do not fit with a lower demand scenario risk destroying significant shareholder value through the creation of stranded assets,” Carbon Tracker warned. The more companies delay, the greater risk they take on. (Source: Oil Price)
Oil Prices Jump As The Rig Count Collapse Continues (1 November 2019): By Julianne Geiger - The US oil and gas rig count fell again this week, according to Baker Hughes, continuing the downward trend with a drop of 8 rigs for the week, according to Baker Hughes. This week marks ten decreases out of the last eleven weeks. The total oil and gas rig count now stands at 822, or 245 down from this time last year. The total number of active oil rigs in the United States decreased by 5 according to the report, reaching 691. The number of active gas rigs decreased by 3 to reach 130. (Source: Oil Price)