Ny rekord igjen for oljeprisen og dollaren

[Someone]

Da har oljen på 1,5 dag gått fra $120 til under $104

NOK svekker seg også da USD på 8,67 pg EUR 9,63

[OJB]

Dagens faste er 111.07 USD/fat
Prisen har en tendens til å gå opp og ned til dels kraftig i disse dager på grunn av den geopolitiske situasjonen i verden.

Sakset fra World Oil idag ;


OPEC says the U.S. must trust its oil production strategy
Anthony Di Paola and Verity Ratcliffe 3/29/2022

(Bloomberg) — Saudi Arabia and the United Arab Emirates said the U.S. must trust OPEC+’s strategy, as Washington and other major importers call on the group to hike oil production following Russia’s invasion of Ukraine.

Crude prices surged to almost $140 a barrel soon after Moscow’s attack last month, though they’ve eased to around $110 this week amid a rise in coronavirus cases and tighter lockdowns in China. They’re still up by 40% this year.


OPEC+, led by Saudi Arabia and Russia, meets on Thursday to decide on output levels for May. Members have far signaled they see no need to divert from their policy of small increases each month.

“We’re experts in our field and we’ve been doing it for a very long time,” UAE Energy Minister Suhail al Mazrouei said at a conference in Dubai on Tuesday, sitting alongside his Saudi counterpart. “We’re trying to balance the market and it’s not an easy job. We’re not the only producers in the world and when we say this is the right way to do it, we know it from experience. So, trust us.”

The Organization of Petroleum Exporting Countries and its partners say prices have spiked because of geopolitical tension and that there’s little evidence yet of the market being significantly under-supplied.

Russian oil flows have probably fallen by 1.5 million barrels a day since the invasion, according to the International Energy Forum, a multilateral organization based in Riyadh. Still, it will take around two weeks until there’s firm evidence and OPEC+ will want to assess that data, IEF Secretary-General Joe McMonigle told Bloomberg Television.

OPEC+ slashed supply by 10 million barrels a day at the start of the pandemic, which crushed oil demand, and is still unwinding those cuts. The U.S., Japan and Europe have tried to persuade the 23-nation group to accelerate its increases of around 400,000 barrels a day each month.

U.S. Secretary of State Antony Blinken is scheduled to meet the UAE’s de facto leader, Mohammed bin Zayed, in Morocco on Tuesday. Washington says they’ll talk about regional security. It’s unclear if oil will be on the agenda.

Abdulaziz bin Salman, the Saudi energy minister, reiterated that OPEC+ must ignore politics and focus on the balance between supply and demand. The Saudis and UAE have said Russia’s presence in OPEC+ is key to the group’s success and that the alliance shouldn’t be broken up.

“Today’s volatility would have been even worse if OPEC+ were not together and did not exist,” Prince Abdulaziz said at the Dubai conference.

He also said the international community must take attacks on oil infrastructure in the Arabian Gulf more seriously. Saudi Arabia and the UAE have been targeted by Iranian-backed Houthi rebels based in Yemen several times this year. On Friday, the Houthis launched missiles and drones at several sites in Saudi Arabia and caused a large fire at a fuel depot in Jeddah.

The Saudis and Emiratis have criticized Washington for responding too slowly to Houthi aggression and pursuing the nuclear negotiations with Iran, which they fear will hand Tehran an oil windfall. Last week, Saudi said it can’t be held responsible for any drop in oil exports if the Houthis damage its infrastructure.

[OJB]

Dagens faste pris er 112.49 USD/fat

Sakset fra dagens World Oil;

OPEC+ expected to rebuff calls to replace lost Russian oil
Grant Smith, Sharon Cho and Salma El Wardany 3/30/2022

(Bloomberg) — OPEC and its allies are expected to rebuff calls this week to fill in the supply gap left by falling oil exports from coalition member Russia.

The 23-nation group led by Saudi Arabia will probably ratify plans for another modest production increase scheduled for May when it meets on Thursday, according to a Bloomberg survey. Several delegates from the Organization of Petroleum Exporting Countries and its partners privately predict this outcome, and public comments from key nations point the same way.


Russian oil exports have plunged by a quarter as many international buyers boycott the country following its invasion of Ukraine. Companies including Shell Plc and TotalEnergies SE have pledged to halt purchases on the short-term market and wind down long-term contracts.

With oil prices holding above $100 a barrel, a lack of additional supplies to compensate for Russian losses threatens to further stoke the inflationary surge that is endangering the global recovery and inflicting a cost-of-living crisis on millions. Major importers are urging OPEC+ nations with spare production capacity to open the taps faster, but the group’s key members have so far remained unmoved.

“We won’t add resources if the market is balanced, and the resources are in the market,” United Arab Emirates Energy Minister Suhail Al-Mazrouei said on Monday at a conference in Dubai. Key consumers like the U.S. should trust the group’s judgment in how to best manage the market, he said the next day.

All 23 traders and analysts in a Bloomberg survey predicted the group will stick with its plan for an increase of 432,000 barrels a day in May. While that theoretically represents a slight increase from previous 400,000-barrel hikes as OPEC+ fine-tunes individual nations’ production quotas, most members have been struggling to deliver the full amount pledged for several months.

While Saudi Arabia and the UAE have indicated that their reluctance to pump faster stems from a belief there’s no shortage yet in world markets, the Persian Gulf heavyweights also seem to be acting out of loyalty to Moscow.

“Russia is an important member” and OPEC+ should remain detached from politics, Al-Mazrouei said on Monday. The group isn’t concerned with whether Russian supply losses in particular are causing an imbalance, he added.

The alliance adopted a similar approach when it last met, at the start of this month. Saudi Energy Minister Prince Abdulaziz bin Salman avoided any discussion of the Russian situation, and hurried the meeting to a conclusion after just 13 minutes.

Riyadh and Abu Dhabi are keen to preserve ties with Moscow, which have enabled them to bolster control over global crude markets and lessen their political reliance on the U.S. That’s particularly useful for Saudi Crown Prince Mohammed bin Salman, who has been sidelined by the Biden administration over the killing of journalist Jamal Khashoggi.

Allowing prices to trade in triple-digits has also boosted revenues across the OPEC+ coalition, replenishing coffers depleted during the economic slump of the pandemic.

Saudi Arabia and the UAE “need to maintain close ties to Russia,” Paul Sankey, lead analyst at Sankey Research LLC, said in a Bloomberg television interview. If they change position without consulting Moscow, “it would end OPEC+.”

Staying the course will also have consequences, frustrating the Biden administration and other world leaders seeking to isolate President Vladimir Putin. It could also heighten the pain for consuming nations, which have called via the International Energy Agency for OPEC+ to relieve the market’s strain.

The de facto embargo on Russian supplies observed by many refiners and traders has undeniably left a hole, even as China and India discreetly continue purchases.

Russia’s average crude output from March 16 to 27 dipped below 11 million barrels a day, a level not seen since the start of the year, according to calculations based on data from the Energy Ministry’s CDU-TEK unit seen by Bloomberg.

Global markets were under strain even before the invasion, as supplies failed to keep up with the vigorous recovery in fuel demand following the pandemic. Part of the problem lies with OPEC+ itself, which is struggling to revive all the output halted during the Covid slump, after reduced investment eroded capacity in members like Angola and Nigeria.

Yet recent market developments also present a case for moving cautiously -- the favored approach of Saudi Arabia’s Prince Abdulaziz.

Brent futures have lost about 7% this week, first as China re-imposed lockdowns to combat new Covid-19 outbreaks, then as Russia pledged to scale back military operations around the Ukrainian capital. The prospect of an influx of Iranian supplies continues to loom over the market, even if negotiations over a nuclear pact that would remove U.S. sanctions remain in limbo.

With so much uncertainty, OPEC+ may have taken the conservative choice even without the current political considerations.

“Amid historic oil prices, fundamental and geopolitical whipsawing, the one constant is OPEC+’s determination to stick with its tapering plan,” said Bob McNally, president of Washington-based consultant Rapidan Energy Group and a former White House official.

[OJB]

Dagens faste pris er 107.91 USD/fat , noe ned fra igår.

Sakset fra World Oil idag ;

Biden sets million-barrel-a-day oil release to tame prices
Alberto Nardelli, Jennifer Jacobs and Saleha Mohsin 3/31/2022

(Bloomberg) — The U.S. will release roughly a million barrels of oil a day from its reserves for six months beginning in May, a historic drawdown underscoring White House concern about rising gas prices and supply shortages following Russia’s invasion of Ukraine.

President Joe Biden also will invoke Cold War powers to encourage domestic production of critical minerals for batteries for electric-vehicles and other uses, the White House said in a statement. Battery materials will join the list of items covered by the 1950 Defense Production Act.


Read more: Biden Invokes Cold War Powers to Boost EV Battery Production

The White House said that the release from the Strategic Petroleum Reserve was “unprecedented.”

“This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up,” the White House statement added.

Biden will order as much as 180 million barrels released from U.S. reserves over the next several months. He’ll speak about his plan at the White House at 1:30 p.m. in Washington.

Pump prices are weighing heavily on the White House’s political prospects in November, when voters will decide whether Biden’s party will retain control of Congress. The president has struggled to tame both gasoline prices and broader inflation, which is at 40-year highs as the global economy adjusts from pandemic disruptions.

Despite the administration’s assurances last year that gasoline prices would fall in 2022, they have instead risen dramatically. The White House has blamed the increase on Russia’s invasion of Ukraine, noting in its statement that gasoline prices have spiked nearly $1 a gallon since the start of the year.

U.K Weighs Release

“The United States is the largest oil producer in the world and is a net energy exporter,” the White House said in its statement. “Despite that, the actions of a dictator half a world away can still impact American families’ pocketbooks.”

The administration also will push the International Energy Agency to coordinate releases from reserves by other oil-consuming nations. The organization will meet within days, two people familiar with the matter said, and the administration expects other countries will make some reserve releases but not as much as the U.S.

U.K. Business Secretary Kwasi Kwarteng is considering proposals for his nation to join the effort, according to a person familiar with the matter. The person declined to say what amounts of oil the country would release from its reserves.

When IEA members agreed to release a combined 61.7 million barrels at the beginning of the month, the U.S. contribution was 30 million barrels, while the British added 2.2 million barrels.

But the releases won’t be accompanied by greater production from OPEC+ nations, after the cartel said Thursday it’ll stick to gradual increases. OPEC+, which includes Russia, ratified an existing plan to increase supply in May by 432,000 barrels a day in an online meeting, according to a statement.

The goal of Biden’s plan is to create a bridge for U.S. supply until the fall, when domestic production is anticipated to increase, the White House said. In its statement, the White House criticized U.S. energy companies for not ramping up production faster.

“There are oil companies that are doing the right thing and committing to ramp up production now,” the White House said. “Still, too many companies aren’t doing their part and are choosing to make extraordinary profits and without making additional investment to help with supply.”

[OJB]

Dagens faste pris er 104.39 USD/fat , den bør ikke bli høyere , men det er fare for at den vil fortsette å stige gjennom året.
Sakset fra World Oil idag ;

Oil & gas market report expects continued demand increases this year
Maddy McCarty, Senior Digital Editor 4/1/2022

(World Oil) — A new market update report shows the U.S. oil and gas (O&G) industry can expect to see continued demand recovery and positive effects from the passage of the Infrastructure Investment and Jobs Act, but regulatory environments tightened last year. The Oil & Gas Market Update report is authored by Patrick McRorie, a partner with Lathrop GPM, using U.S. Energy Information Administration (EIA) reports and data, federal and state government records, national and local news, and the knowledge and experience of the law firm’s practitioners, among other sources.

U.S. regulatory picture. Though the oil and gas industry has already seen rapidly changing market conditions so far in 2022, the report continues to be relevant, McRorie said. “Much of the analysis focuses on the U.S. regulatory environment and longer-term trends in the industry,” he said. That includes the changes expected as the Biden administration continues to focus on climate change and energy transition. Investor pressure and public perception has been, and will continue to be, a significant driver of environmental, social and governance (ESG) issues, with primary focus on the “E,” the report states.

ESG issues. “I think the updates on how the industry is approaching ESG issues is especially important. ESG is, and I believe will continue to be, a hot topic, both with the public and with investors,” McRorie said. “While it is a hot topic of discussion, we are trying to help the audience understand what it means in practice. The report provides insight into how the industry is, or in certain cases isn’t, executing on ESG initiatives.”

The ESG-related pressure on O& G mainly relates to carbon-lowering initiatives, the report said, noting the Paris-based IEA’s Roadmap to Net Zero by 2050, which outlines ambitious scenarios to achieve greenhouse gas emissions reductions.

Companies are responding to investor attention on ESG, resulting in efforts like using digital technologies to enhance their ESG capabilities for reporting, according to the report. The federal infrastructure bill is largely O&G-friendly, the report notes, adding that it provides record funding for road improvements, which should increase demand for asphalt and is a good sign for oil.



Long-term demand for 2022 continues to look positive, according to the report. Investment bank analysts expect higher oil prices to continue this year, with forecasts in the $90-100/bbl range.

An IEA report referenced expects global oil demand to grow by 3.3 MMboed in 2022, following growth of 5.4 MMboed in 2021. At this pace, demand will reach 99.4 MMboed, which is a return to pre-pandemic levels, the report states.

Capital allocations. While Russia’s invasion of Ukraine may push some investors toward renewable energy to reduce reliance on Russia’s O&G, McRorie doesn’t think the current energy prices affect long-term investment in renewable or alternative fuel sources.

“As such, I don’t think we are going to see significant reallocations in planned capital expenditure,” McRorie said. “In the short-run, producers certainly possess an incentive to capitalize on favorable energy prices … Many producers use financial instruments to hedge against this type of volatility, so there may not be a real, recognizable benefit to reallocating capital in favor of short-term production.”

Many energy producers are looking at alternative energy technologies as a compliment to their O&G assets, which is likely done with long-term focus, he said. The report also breaks down implications of the regulatory environments in Colorado, New Mexico, North Dakota, Oklahoma, Texas and Wyoming. To see the full report, click here.

[OJB]

Dagens faste pris er 108.01 USD/fat

Sakset fra World Oil idag som viser fornyet optimisme hos super majors;

ExxonMobil moves forward with $10 billion Guyana offshore oil project
4/4/2022

ExxonMobil has made a final investment decision for the Yellowtail development offshore Guyana after receiving government and regulatory approvals. The company’s fourth, and largest, project in the Stabroek Block is expected to produce approximately 250,000 bpd starting in 2025.


“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana, and helps provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, president of ExxonMobil Upstream Company. “We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule.”

Yellowtail production from the ONE GUYANA floating production storage and offloading (FPSO) vessel will develop an estimated resource of more than 900 million barrels of oil. The $10 billion project will include six drill centers and up to 26 production and 25 injection wells.

ExxonMobil’s ongoing offshore exploration in Guyana has discovered a recoverable resource of more than 10 billion oil-equivalent barrels. The company anticipates up to 10 projects on the Stabroek Block to develop this resource.

Development of projects and continued exploration success offshore are enabling the steady advancement of Guyanese capabilities and enhanced economic growth. More than 3,500 Guyanese are supporting ExxonMobil’s activities in Guyana, an increase of more than 50% since 2019. ExxonMobil and direct contractors have spent more than $600 million with more than 880 local suppliers since 2015. More than 3,000 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity and support global competitiveness.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest.

[OJB]

Dagens faste pris er 105.01 USD/fat

Fra dagens World Oil;

UK reexamining shale gas fracing in push toward energy security
Alex Morales 4/5/2022

(Bloomberg) — Business Secretary Kwasi Kwarteng commissioned a geological report into the science of shale gas fracing, as the U.K. government tries to boost energy self-sufficiency in the wake of the Ukraine war.


Kwarteng wrote Tuesday to the British Geological requesting a report in three months’ time on the modeling of seismic activity in shale rocks in the U.K. The letter, which was posted on the government’s website, will add to speculation that the U.K. is preparing to reverse tack on fracing for gas.

The move comes with the government due to publish a new energy supply strategy on Thursday that aims to increase domestic energy production and reduce reliance on imports from Russia. The U.K. wants other nations to follow suit, depriving Vladimir Putin of funds for his invasion of Ukraine.

Fracing has been on pause in Britain since 2019 when a small earthquake was registered at Cuadrilla Resources Ltd.’s Preston New Road site near Blackpool. Officials last month withdrew the requirement for the company to concrete over three wells, giving it a one-year reprieve in which to prove the drilling technique is safe.

Kwarteng’s letter indicates the government is still far from convinced about the case for fracing. The reasons for the pause in fracing “have not gone away and to date we have not identified any new, compelling evidence that would support a reassessment of the current position,” he wrote.

In a separate statement, Kwarteng also pointed out that fracking would not solve price issues in the short-term, and that it would take “years of exploration and development before commercial quantities of gas could be produced for the market.”

The new study will be desk-based and not involve the drilling of any more test wells or any extra seismic monitoring, Kwarteng’s department said.

[Someone]

Oljeprisen touchet såvidt under $100 i kveld, dog kun en liten stund

[OJB]

Dagens faste priset bikket så vidt under 100 daler til 98.78 USD/fat.

Sakset fra World Oil idag ;

OPEC tells EU that Russia oil crisis is beyond its control
Grant Smith 4/11/2022

(Bloomberg) — OPEC’s top diplomat told European Union officials that the current crisis in global oil markets caused by Russia’s invasion of Ukraine is beyond the group’s control.

Russian oil supply losses stemming from current and future sanctions or a boycott by customers could potentially exceed 7 million barrels a day, OPEC Secretary General Mohammad Barkindo said on Monday. That would be far beyond the group’s capacity to replace, he told EU Energy Commissioner Kadri Simson, who had asserted the cartel’s responsibility to balance the market.

Simson said that the oil-producers group could tap its existing spare output capacity to assist in the crisis, according to an OPEC document seen by Bloomberg. Barkindo said that markets are being swayed by political factors rather than supply and demand, leaving little for the organization to do.

“These crises have compounded to create a highly volatile market,” Barkindo said, according to the text of his opening remarks. “I must point out, however, that these are non-fundamental factors that are totally out of our control at OPEC.”

The two representatives spoke during the regular dialogue between the EU and the Organization of Petroleum Exporting Countries.

Oil prices continue to trade near $100 a barrel as many refiners shun Russian supplies following the attack on its neighbor. The price rally has bolstered fuels like diesel, adding to the inflationary pressures and cost-of-living crisis hitting many consumers.

OPEC nations such as Saudi Arabia have rebuffed calls from major consumers like the U.S. to fill in the gap left by Russia. Besides their view of the market, the kingdom and its allies may have other reasons for holding back.

Riyadh jointly leads an alliance of global producers with Moscow known as OPEC+, and may also be keen to preserve its political ties with the Kremlin, which have helped the Saudis lessen their reliance on the U.S.

[OJB]

Dagens faste oljepris er 113.00USD/fat

Sakset fra World Oil idag :

Oil gains as Libya shuts its largest oil field amid protests
Julia Fanzeres 4/18/2022

(Bloomberg) — Oil rose with the shutdown of Libya’s biggest oil field in an already under-supplied market overshadowing signals that China’s lockdowns are weighing on its economic growth.


Brent crude futures rose above $113 a barrel for the first time since late March. West Texas Intermediate traded around $108. Global markets face further interruptions to oil supplies after demonstrations against Libya’s Prime Minister Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field. Protesters also forced two Libyan ports to stop loading, with output halted at the El Feel field.

Earlier, prices fell as Chinese economic data signaled bearish news for the market. China reported its biggest decline in consumer spending and worst unemployment rate since the first months of the pandemic, adding another threat to global growth.

Oil rallied above $100 this year as the war in Ukraine disrupted an already-tight market, with some traders shunning Russian crude. The surge spurred the U.S. and allies to announce the release of millions of barrels from strategic reserves to quell inflationary pressures. Nonetheless, global supplies remain tight with OPEC and its partners declining to raise the pace at which they’re restoring output shuttered during the pandemic.

Russia’s Deputy Prime Minister Alexander Novak said last week that if more nations banned Russian energy flows, prices may “significantly exceed” historic highs. The U.S. and U.K. have moved to bar crude from the country after Moscow’s invasion of Ukraine, and there’s pressure for the European Union to follow.

“The market is still making up its mind about how much Russian oil may be kicked out of the market,” said Matt Stanley, a trader and broker with Star Fuels in Dubai. “That’s keeping Brent at about $110 a barrel.”

Prices:

West Texas Intermediate for May delivery rose 96 cents to $107.91 a barrel at 10:15 a.m. in New York.
Brent for June settlement rose $1.19 to $112.89 a barrel
In a weekend phone call, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman gave a “positive assessment” of their efforts to stabilize the oil market, suggesting that no change in production policy is likely. The two nations lead the alliance that groups the Organization of Petroleum Exporting Countries and its partners, known as OPEC+.

Crude markets remain in backwardation, a bullish pattern that reflects tight supply. Brent’s prompt spread -- the gap between its two nearest contracts -- was more than $1.14 a barrel in backwardation, up from 21 cents last week.

Oil’s surge this year has been part of a wider advance in energy commodities that’s seen prices extend gains even as the outlook for global economic growth dims. On Monday, U.S. natural gas prices hit the highest level in more than 13 years as robust demand tests drillers’ ability to expand supplies.

[Someone]

Originally Posted by Someone

NOK svekker seg også da USD på 8,67 pg EUR 9,63

Da var USD over 9 kroner igjen, dog ligger EUR på det samme, så er ikke så ille for oss som stort sett ferierer i Europa i år

[OJB]

Dagens faste pris er 102,32USD/fat

Sakset fra World Oil idag ;

Oil falls below $100 as China’s lockdowns imperil demand outlook
Julia Fanzeres 4/25/2022

(Bloomberg) — Oil dropped at the start of the week on concerns that a spreading Covid-19 outbreak in China will impact consumption even further.


West Texas Intermediate futures fell 3.5% to close below $100 a barrel. Rising coronavirus cases in Beijing sparked jitters about an unprecedented lockdown of the capital, while Shanghai reported record daily deaths over the weekend. The world’s biggest crude importer is heading for the worst oil demand shock since the early days of the pandemic.

China’s travails with Covid-19 add another source of volatility to an oil market that’s been buffeted by Russia’s invasion of Ukraine. The war has fanned inflation, and the European Union is discussing measures to restrict oil imports from Russia, matching steps taken by the U.S. and U.K.

Potential demand destruction from China lockdowns “is the number one issue in the market right now,” said Bob Yawger, director of the futures division at Mizuho Securities USA. Demand is down 1.2 million barrels a day since the lockdowns in Shanghai began, and a shutdown of the capital could impact demand even more so, he added.

China has implemented lockdowns in a number of cities as it pursues a Covid Zero strategy. In Beijing, the government has expanded testing to 12 districts from April 26-30. China’s oil demand averaged 13.3 million barrels a day in March, according to data compiled by Bloomberg.

Prices

WTI for June delivery dropped $3.53 to settle at $98.54 a barrel in New York.
Brent for June settlement dropped $4.33 to settle at $102.32 a barrel.
The U.S. oil benchmark remains about 35% higher this year, despite recent weakness. The market is poised for additional supply, adding to bearish signs. Libya is expected to resume output from shuttered fields in the coming days, while the CPC oil terminal on Russia’s Black Sea coast has resumed regular operations after one of two moorings damaged in a storm was repaired.

Easing supply fears have helped push Brent’s prompt spread -- the gap between its two nearest contracts -- to its weakest since late last year, excluding expiration days.

[LN-RTP]

Har bestilt tankbil i dag for å fylle opp tanken på M/V Odin: $5.28 per gallon, eller 12.55 NOK per liter.
Det er veldig dyrt her i USA, men sikkert latterlig billig i Norge.
Håper dog olje prisene går opp igjen, har investert i olje, men det gikk ned mye i går

[OJB]

Dagens pris er 107.50 USD/fat med stigende tendens.

Sakset fra World Oil idag ;

Department of Energy approves additional exports from two LNG projects
4/28/2022

(World Oil) — The U.S. Department of Energy issued two long-term orders authorizing an additional 0.5 Bcfd of liquefied natural gas (LNG) exports from Golden Pass LNG in Texas and Magnolia LNG in Louisiana.


The orders allow Golden Pass LNG to export an additional 0.35 Bcf/d and Magnolia LNG to export an additional 0.15 Bcf/d of natural gas as LNG to any country not prohibited by U.S. law or policy. DOE had previously issued long-term non-free trade agreement export orders for most of the projects’ capacities, with Magnolia LNG’s authorization for 1.08 Bcf/d in 2016 and an authorization for 2.21 Bcf/d issued to Golden Pass LNG in 2017.

American Petroleum Institute (API) Vice President of Natural Gas Markets Dustin Meyer said the group welcomes the department’s continued commitment to increasing U.S. LNG exports during this consequential moment in history.

“The additional permits granted today are an important step forward, and further progress could send a clear and powerful signal that America is serious about strengthening global energy security while supporting emissions reductions,” Meyer said. “We will continue working with the administration to ensure a timely and efficient permitting system to advance not only U.S. LNG projects, but also the pipeline infrastructure needed to sustain export growth.”

Golden Pass, jointly owned by Exxon-Mobil Corporation and Qatar Petroleum International Limited, is under construction in Sabine Pass, Texas, and anticipates starting up in 2024. Magnolia LNG, owned by the Glenfarne Group LLC, is planned to be developed in Lake Charles, Louisiana. In 2020, it was reported the developer wanted until 2026 to complete the project.

[OJB]

Dagens faste pris er 107.14 USD/fat

Sakset fra World Oil idag . optimisme å spore hos "super majors" ;

Shell acquires 25% stake in Atapu Field in Brazil for $1 billion
4/29/2022

Shell Brasil Petróleo, a subsidiary of Shell plc, signed a Production Sharing Contract (PSC) to acquire a 25% stake of the Atapu field. Shell paid $1.1 billion to Petrobras for the increased stake in the field. With the contract now signed, Shell will start receiving its additional share of oil from the field.


“This transaction is the latest proof point of our commitment to further strengthening our advantaged deep-water positions in Brazil,” said Zoe Yujnovich, Shell Upstream Director. “With a leading global deep-water portfolio, this stake in the Atapu field directly supports our Powering Progress strategy to deliver the stable, secure energy resources the world needs today while investing in the energy of the future.”

Shell’s Powering Progress strategy includes increasing investment in lower carbon energy solutions, while continuing to pursue the most resilient, competitive, and highest return Upstream investments to sustain material cash delivery into the 2030s, to support our dividend and fund Shell's transformation. Our global deep-water portfolio represents two core positions in our Upstream business with prolific basins in the US and Brazil, along with an exciting frontier exploration portfolio in Mexico, Suriname, Argentina, and West Africa.

[OJB]

Dagens faste pris er 107.58 USD/fat

Interessant artikkel sakset fra World Oil idag:

Exxon, Chevron will spend more on stock returns than production
Kevin Crowley 5/2/2022

(Bloomberg) — Exxon Mobil Corp. and Chevron Corp. will together give more cash to shareholders than they invest in oil and gas production this year even as political leaders call on the industry to increase output to help ease soaring consumer prices.


Exxon operations in the Permian Basin.
The U.S. supermajors will shower investors with a combined $50.3 billion in stock buybacks and dividends this year, compared with $37.5 billion in total capital expenditures, according to data compiled by Bloomberg. That gap is the highest since Big Oil’s heyday in 2008. In fact, for 11 of the past 15 years, Exxon and Chevron have actually done the opposite: Their combined capital expenditures have exceeded shareholder returns.

U.S. President Joe Biden has implored oil companies to reinvest profits from surging oil prices into more production in an effort to curb rampant inflation and ease the energy shortages caused by Russia’s war against Ukraine. Some U.S. Democrats as well as European leaders have gone further, accusing Big Oil of “profiteering” from high energy prices and calling for a windfall tax on earnings.

“Consumers should not get punched in the face so that Big Oil can stuff its overflowing coffers,” said Robert Weissman, president of Public Citizen, a non-profit consumer advocacy group.


Chevron is “very sensitive” to the needs of consumers, Chief Financial Officer Pierre Breber said on a Friday call with analysts. The oil giant is increasing production in the Permian Basin by at least 15% this year and has become much more efficient in recent years, meaning it can produce more oil with less capital spending than in the past. Chevron’s global production will be roughly flat this year but remains near a record high.

“We’re growing energy supply in the U.S.,” Breber said. “At the same time, the objective for a capital-intensive commodity business is to do it in the most capital-efficient way. The more capital-efficient we are, the more capital gets returned to shareholders.”

Exxon is plotting its own ramp up in the Permian Basin, with plans to grow output about 25% this year; it’s also accelerating offshore oil developments in Guyana. The Texas-based oil giant is also becoming more efficient due to $9 billion of cost cuts by 2023, enough to fund more than half its dividend.

However, its first quarter production was just 3.7 million barrels a day, the lowest since the merger with Mobil more than two decades ago.

When asked whether high energy prices could mean Exxon would increase capital spending above its guided range, Chief Executive Officer Darren Woods was blunt: “The short answer is no.”

[OJB]

Dagens faste pris er 105.76 USD/fat , denne prisen vil trolig stige betydelig ut over året etter hvert som EU faser ut Russiske oljeleveranser.

Sakset fra World Oil idag ;

OTC 2022: Reaching net zero will require more investment in oil, gas and renewables
Maddy McCarty, Senior Digital Editor, World Oil 5/3/2022

The pandemic had a unique impact on the energy industry and will pave the path of the energy transition on its way to net zero emissions, Society of Petroleum Engineers President Kamel Ben-Naceur said during a keynote presentation at the Offshore Technology Conference on Mond

Kamel Ben-Naceur
The pandemic’s impacts. The Covid-19 pandemic brought the biggest one-year drop in oil demand at 10.4%, Ben-Naceur said, while natural gas demand dropped by about 2%, and coal and nuclear demand dropped by about 4%. Demand for hydroelectric and renewable energy increased, though by smaller margins.

Upstream investment had seen steep declines in previous years, Ben-Naceur noted, citing the 26% drop in 2015-2016. However, investment went back up through 2019 before experiencing a 30% drop in 2020. “If we look at the relative decrease in investment in the upstream sector overall, in less than five years, we have reduced the upstream investment by 50%,” he said. “Which is almost unheard of. You have to go back to the mid-80s to see that kind of a trend.”

Emerging from the pandemic. Oil demand is back to pre-pandemic levels this year, Ben-Naceur said, adding he expects that trend of increasing demand to continue in 2023.

The “most spectacular” increase is in the price of natural gas, he said. Between April 2020 and the end of 2021, natural gas went from about $3 or $4 per MMbtu to about $40 per MMbtu, a ten-fold increase. “We have never seen that kind of increase in gas prices within a period of one year,” he said.

Composite price index inflation is also a concern, as these levels of inflation haven’t been seen since 1995, Ben-Naceur noted.

The U.S. rig count hovered below 2,000 from 2010 to 2014 before experiencing a big drop in 2016, but is now steadily climbing back up and sitting just under 700. Ben-Nacuer said the correlation between oil price and oil and gas rig count has been steady, but 2021 is the exception.

“We are way below traditional lines in the rig count, so the activity has not recovered,” he said. “The shale producers in 2021 changed their strategies. They have focused on shareholder returns.” This is quite a significant change in 2021, he said. The uncertainty of oil prices has led to caution around expanding investment, Ben-Nacuer noted, and there is a new balance that’s emerged between investment levels and shareholder returns. However, there has been a significant increase in upstream investment in 2022, he said.

The energy transition reality and future perspectives. The energy transition is looking more like a reality, as electric car sales jumped from 1 million to 2 million before 2018 to almost 7 million, or 9% of new cars sold, in 2021. Renewable power capacity continues to be added, and the industry is always learning about incentives of decarbonization, Ben-Nacuer said. He said recently, one ton of CO2 was valued at 100 Euros for the first time.

There are a few different energy transition scenarios predicted by the International Energy Agency, and each one would bring different costs and results. For the first time, today’s pledges – if implemented on time and in full – would keep the rise in global average temperatures in 2100 to below 2 degrees Celsius, according to the presentation, but there’s still a large gap to 1.5 degrees Celsius.

Decarbonization will require many combined factors to be successful, including avoided demand, CO2 capture and storage, hydrogen, bioenergy, technology performance, electrification, other renewables and other fuel shifts. But no matter the combination or policies, reaching the net zero emissions goal still requires more oil and gas investment, Ben-Nacuer said.

“We still need to invest more than what we invest today. Investment in the oil and gas industry will be crucial. And we are not investing enough in clean energy,” he said. “That’s the big problem that the world faces.”

Some of that investment will be in carbon capture and storage, which is predicted to expand significantly by 2030. Rystad Energy found projects are on track to abate more than 500 million tons of CO2 emissions by 2030. That number is lower than 100 million tons today. The Society of Petroleum Engineers is working with other organizations to create a Storage Resource Management System for CO2 based on the Petroleum Resource Management System, Ben-Nacuer said. This will help facilitate the adoption of standards and accelerate the uptake of CCUS, he said.

[OJB]

Dagens faste pris er 110USD/fat .

Sakset fra World Oil idag ;

Oil jumps the most in three weeks as EU plans strictest ban yet
Julia Fanzeres 5/4/2022

(Bloomberg) — Oil rallied as supply concerns took center stage with the EU threatening to ban Russian supplies this year and U.S. regional fuel inventories dropping to record lows.


Futures in New York climbed more than 5% to settle at $107.81 on Wednesday, while Brent closed above $110 for the first time since mid-April. The European Union said it plans to ban Russian crude and refined by the end of this year.

“This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined,” European Commission President Ursula von der Leyen said.

Adding to the sense of supply pressure, East Coast diesel inventories fell to a record low as U.S. refiners increasingly supply global markets in the absence of Russian product, according to data from the Energy Information Administration.

Europe is highly dependent on Russian crude, and some countries will find it easier to switch supply than others. Russia shipped about 720,000 barrels a day of crude to European refineries through its main pipeline to the region last year. That compares with seaborne volumes of 1.57 million barrels a day from its Baltic, Black Sea and Arctic ports.

The European Commission’s plan “removes some of the overhang from a lack of a clear proposal in prior weeks,” said Rohan Reddy, director of research at Global X Management. “It’s a clear signal by the EU that the bloc is willing to move on from Russian oil, despite its current dependence on it. It will need to be voted on by the EU’s member states, but putting forth a framework is a major step.”

Hungary and Slovakia, which have been opposed to a swift cutoff of Russian oil, will be granted a longer time frame -- until the end of 2023 -- to enforce the sanctions, according to people with knowledge of the matter.

The phaseout of Russian oil in Europe will come at a time when the world is grappling with a refined-product crisis -- potentially making it all the more costly for the region to wean itself off Russian fuels such as diesel.

Prices:

West Texas Intermediate for June delivery rose $5.40 to settle at $107.81 a barrel in New York.
Brent futures for July settlement increased $5.17 to settle at $110.14 a barrel.
The U.S. diesel crack spread -- a gauge of the profitability of turning crude into diesel -- has surged this year as countries cut back on Russian fuel, depleting supplies.

Oil investors are also counting down to a meeting on Thursday of the Organization of Petroleum Exporting Countries and its allies on production policy. The 23-nation group is expected to ratify another modest supply increase amid signs that the alliance is failing to deliver agreed-upon volumes.

[OJB]

Dagens faste pris er 111USD/fat og stigende.

Sakset fra dagens World Oil ;

Drilling for shale oil is getting more expensive at the worst possible time
Paul Takahashi, David Wethe and Kevin Crowley 5/5/2022

(Bloomberg) — Inflation in the oil sector is worsening and industry executives see no reason to expect cost pressures on everything from steel pipe to frac sand to ease any time soon.


The price spiral has been so swift and dramatic that oil CEOs are being forced to revise annual spending plans higher just to preserve crude and natural gas output targets.

Those same executives are warning that rampant oilfield inflation make any significant increase in domestic oil production much more difficult to attain despite the incentive of $100-a-barrel crude. Benchmark U.S. and international oil prices have surged more than 40% this year as strong post-pandemic demand crashed headlong into anemic growth in crude supplies and the worldwide market dislocations triggered by Russia’s invasion of Ukraine.

“Given the substantial supply-chain bottlenecks and scarcity of oil-service equipment and field personnel, any attempt to increase activity in the U.S. will be logistically challenging and capital inefficient,” APA Corp. Chief Executive Officer John Christmann said during a conference call on Thursday.

APA Corp., the oil explorer formerly known as Apache, this week raised its full-year drilling budget by 8%, startling investors unaccustomed to such revisions just months after the plan was minted. The stock plunged as much as 10%, wiping out more than $1.5 billion in market value in less than three hours on Thursday.

ConocoPhillips also increased its spending plan by 8%, while Murphy Oil Corp. and Laredo Petroleum Inc. raised theirs by 7% and 6%, respectively.

[OJB]

Dagens faste pris er 112.39 USD/fat og stigende.

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Shell will sell Russian fuel stations as part of exit plan
Bloomberg News 5/6/2022

(Bloomberg) — Shell Plc is in talks to sell its fuel stations in Russia as it withdraws from the country in response to the invasion of Ukraine.


“We can confirm the ongoing negotiations on the sale of Shell Neft, which owns a retail network and lubricants plant which is located in Torzhok,” Shell’s press office said in a statement. “Our key priority is safety of our people and operations, maintaining employment and compliance with the Russian legislation.”

Russia’s second-largest oil producer Lukoil PJSC, which has its own retail network, is the most likely buyer, Forbes reported earlier on Friday, citing an unidentified person from Shell’s office in Russia. Shell’s retail network includes more than 370 branded sites in 28 cities in Russia, according to its website.

Operations of Shell’s retail sites as well as the lubricants plant will be temporarily suspended in the coming days “to facilitate the sale of Shell Neft to a new owner,” Sergey Starodubtsev, head of Shell Russia, said in a separate statement on the company’s website.

The London-based oil producer announced its intent to exit Russia at the end of February, saying it deplored the Kremlin’s “senseless act of military aggression.” Shell’s main investments in the country include a partnership with Gazprom PJSC in the Sakhalin-2 liquefied natural gas project. It also played a part in financing the controversial undersea Nord Stream 2 gas pipeline from Russia to Germany.

On Thursday, Shell took a $3.89 billion impairment charge in relation to the planned exit from Russian, of which about 15% was related to Shell Neft.