Energy Secretary Jennifer Granholm blames OPEC+ for high crude prices
Biden: OPEC And Russia Must Pump More Oil To Help America's Working Class
Biden: The refusal of OPEC+ to increase crude oil production is affecting America's working class
Energy Secretary Jennifer Granholm blames OPEC+ for high crude prices
2021/11/02 13:06
California’s is transitioning away from oil at a faster rate than most states, and looks unlikely to stop any time soon
California Is Aggressively Pursuing A Future Without Oil
California’s oil industry provides a major source of revenue for the state and creates a huge number of jobs, but that won’t stop the state’s governor from phasing it out
2021/10/30 16:07
Have Oil Markets Suddenly Turned Bearish?
Have Oil Markets Suddenly Turned Bearish?
Oil and gas prices have seen a bit of a correction over the last few days
Implied crude demand fell w/w for all products except jet fuel, with the key mismatch being between total crude inventories and inventories at the WTI pricing hub in Cushing, Oklahoma
2021/10/29 20:09
Without a significant uptick in investment, demand for oil and gas will surpass supply in the not-so-distant future
A Global Oil Shortage Is Inevitable
While oil and gas companies come under pressure to reduce production, the world’s thirst for new supply is only growing
2021/10/27 19:50
OPEC+ is adding 400,000 bpd to its combined output every month
Saudi Oil Minister: OPEC+ Shouldn't Rush To Boost Production
Saudi Oil Minister: OPEC+ needs to remain cautious with its approach to oil production adjustments despite rising prices
2021/10/26 19:28
Permian Basin production costs are expected to rise by 10 to 15 percent in the coming year.
Oilfield Service Companies Can’t Catch A Break
Though the global energy crunch is not impacting the United States as much as its European and Asian counterparts, it will have an impact on Permian producers.
2021/10/25 18:52
Canada is facing resistance from all sides, with its pipelines to the U.S. coming under pressure from state governors and Justin Trudeau determined to transition away from fossil fuels
Canada’s Oil Industry Is Facing Resistance On All Fronts
The IEA has predicted that Canada’s oil production will begin to decline at the end of this decade, but not before the country increases its production by up to 700,000 bpd
2021/10/23 16:10
Oil Rebounds On Surprise Crude Inventory Draw
Oil Rebounds On Surprise Crude Inventory Draw
Crude inventories fell by 400,000 barrels.Gasoline production rose last week, while inventories continue to fall.Middle distillate production fell slightly along with inventories.
2021/10/21 17:43
Permian Oil Output Close To Pre-Pandemic LevelPermian Oil Output Close To Pre-Pandemic Level
Permian Oil Output Close To Pre-Pandemic Level
Crude oil production in the Permian has climbed closer to pre-pandemic levels, according to the latest drilling productivity report of the Energy Information Administration.
2021/10/20 17:53
Both oil prices and natural gas prices are significantly higher than where they were this time last year, and earnings should reflect that
Excitement Builds As Big Oil Prepares To Release Earnings
▶After a disastrous 2020, oil majors have now well and truly recovered and analysts expect an impressive earnings season this quarter
2021/10/20 17:48
OPEC+ Under Produces Quota Despite Calls For More Oil
OPEC+ Under Produces Quota Despite Calls For More Oil
The OPEC+ group saw its overall compliance with the collective oil production cuts at 115 percent in September, a delegate told Argus on Monday, down from the 116-percent compliance in August, but still higher than the market had hoped, with some members of the alliance failing to ramp up production in line with their quotas.
2021/10/19 18:36
Beijing's crackdown on the private refining industry was one reason behind this import decline as the government tackled excessive fuel supply
China Once Again Cuts Oil Import Quotas For Indepedent Refiners
Beijing's crackdown on the private refining industry was one reason behind this import decline as the government tackled excessive fuel supply
2021/10/18 17:42
Energy Secretary Jennifer Granholm blames OPEC+ for high crude prices
Biden: OPEC And Russia Must Pump More Oil To Help America's Working Class
Biden: The refusal of OPEC+ to increase crude oil production is affecting America's working class
Energy Secretary Jennifer Granholm blames OPEC+ for high crude prices
California’s is transitioning away from oil at a faster rate than most states, and looks unlikely to stop any time soon
California Is Aggressively Pursuing A Future Without Oil
California’s oil industry provides a major source of revenue for the state and creates a huge number of jobs, but that won’t stop the state’s governor from phasing it out
Have Oil Markets Suddenly Turned Bearish?
Have Oil Markets Suddenly Turned Bearish?
Oil and gas prices have seen a bit of a correction over the last few days
Implied crude demand fell w/w for all products except jet fuel, with the key mismatch being between total crude inventories and inventories at the WTI pricing hub in Cushing, Oklahoma
Without a significant uptick in investment, demand for oil and gas will surpass supply in the not-so-distant future
A Global Oil Shortage Is Inevitable
While oil and gas companies come under pressure to reduce production, the world’s thirst for new supply is only growing
OPEC+ is adding 400,000 bpd to its combined output every month
Saudi Oil Minister: OPEC+ Shouldn't Rush To Boost Production
Saudi Oil Minister: OPEC+ needs to remain cautious with its approach to oil production adjustments despite rising prices
Permian Basin production costs are expected to rise by 10 to 15 percent in the coming year.
Oilfield Service Companies Can’t Catch A Break
Though the global energy crunch is not impacting the United States as much as its European and Asian counterparts, it will have an impact on Permian producers.
Canada is facing resistance from all sides, with its pipelines to the U.S. coming under pressure from state governors and Justin Trudeau determined to transition away from fossil fuels
Canada’s Oil Industry Is Facing Resistance On All Fronts
The IEA has predicted that Canada’s oil production will begin to decline at the end of this decade, but not before the country increases its production by up to 700,000 bpd
Oil Rebounds On Surprise Crude Inventory Draw
Oil Rebounds On Surprise Crude Inventory Draw
Crude inventories fell by 400,000 barrels.Gasoline production rose last week, while inventories continue to fall.Middle distillate production fell slightly along with inventories.
Permian Oil Output Close To Pre-Pandemic LevelPermian Oil Output Close To Pre-Pandemic Level
Permian Oil Output Close To Pre-Pandemic Level
Crude oil production in the Permian has climbed closer to pre-pandemic levels, according to the latest drilling productivity report of the Energy Information Administration.
Both oil prices and natural gas prices are significantly higher than where they were this time last year, and earnings should reflect that
Excitement Builds As Big Oil Prepares To Release Earnings
▶After a disastrous 2020, oil majors have now well and truly recovered and analysts expect an impressive earnings season this quarter
OPEC+ Under Produces Quota Despite Calls For More Oil
OPEC+ Under Produces Quota Despite Calls For More Oil
The OPEC+ group saw its overall compliance with the collective oil production cuts at 115 percent in September, a delegate told Argus on Monday, down from the 116-percent compliance in August, but still higher than the market had hoped, with some members of the alliance failing to ramp up production in line with their quotas.
Beijing's crackdown on the private refining industry was one reason behind this import decline as the government tackled excessive fuel supply
China Once Again Cuts Oil Import Quotas For Indepedent Refiners
Beijing's crackdown on the private refining industry was one reason behind this import decline as the government tackled excessive fuel supply

Oil And Gas Companies Set For Record Free Cash Flow This Summer

2021/06/25 15:28
Oil And Gas Companies Set For Record Free Cash Flow This Summer

With oil trading above $70 per barrel while investment activity remains low, the world’s publicly traded exploration and production (E&P) companies are set to generate record-breaking free cash flows (FCF) in 2021, a Rystad Energy report projects. Their combined FCF is expected to surge to $348 billion this year, with the previous high being $311 billion back in 2008.

Rystad Energy estimates that total gross revenue for all public upstream companies is expected to increase by almost $500 billion in 2021, or 55% compared to last year (excluding hedging effects). At the same time, the investment level of these companies is only expected to grow by around 2% in 2021, resulting in significantly higher profits.

A key reason for the all-time-high FCF is the turnaround in the US tight oil industry. Historically, this industry has struggled to generate positive returns, but this could change in 2021. We estimate that all public tight oil companies will to make close to $60 billion in FCF this year, before hedging effects.

The conventional onshore supply segment is in line to earn the highest level of FCF this year at close to $160 billion – but is still behind the record touched in 2011. Both deepwater and offshore shelf are recovering this year, each ending up with close to $60 billion in FCF. However, tight oil is expected to surpass both these offshore segments in 2021.

“Oil demand has gradually increased after the initial shock of the Covid-19 pandemic, and OPEC+ continues to hold back volumes from the market. The consequent high price movement has been further supported by a slow ramp-up in US tight oil activity. In conjunction with the persisting low investment environment, E&Ps are enjoying super-profits,” says Espen Erlingsen, head of upstream research at Rystad Energy.

The FCF comeback means more surplus cash for E&P companies and historically there has been a strong link between FCF and activity levels. Merger and acquisition (M&A) activity has recovered in 2021, with transaction values increasing by around 30% compared to 2020. New projects are also making a comeback: The amount of greenfield investment that has been sanctioned as of June has already matched the full year 2020 total, and we expect the full 2021 level to be double that of last year.