China Could See Slowest Oil Import Growth In Two Decades
China Could See Slowest Oil Import Growth In Two Decades
High oil prices and China’s crackdown on the use of oil import quotas could result in the lowest crude oil import growth at the world’s top oil importer since 2001, analysts tell Reuters.
2021/07/26 17:09
Deadly Typhoon Threatens Strategic Chinese Oil Hub
Deadly Typhoon Threatens Strategic Chinese Oil Hub
The In-fa typhoon, which caused devastating flooding in parts of China this week—claiming at least 33 lives—is expected to make landfall this weekend in a key area hosting some of the largest Chinese refineries and oil storage tanks.
2021/07/26 17:03
Middle East Oil Giants Grapple With Cyberattacks
Middle East Oil Giants Grapple With Cyberattacks
As the global oil and gas markets are recovering from the steep sell-off last Monday, threats in the market are not just linked to demand-supply concerns. Cybersecurity specialists reported this week that hackers managed to get access to a large amount of data from Saudi oil giant Aramco. The company has confirmed that around 1TB of (confidential) data was stolen from its servers. According to AP sources, the data has been put on offer on the darknet for a price of $50 million.
2021/07/26 16:45
Oil Dips After EIA Reports Crude Inventory Build
Oil Dips After EIA Reports Crude Inventory Build
Crude oil prices briefly dipped after the Energy Information Administration reported a crude oil inventory build of 2.1 million barrels for the week to July 16.
2021/07/22 14:27
Traders Brace For Major Oil Market Volatility This Summer
Traders Brace For Major Oil Market Volatility This Summer
After a period of relative stability in the oil market where U.S. crude benchmark WTI was trading above $70 a barrel for more than a month, traders are now bracing for a wild ride for the rest of the summer.
2021/07/22 14:21
America Looks For A Balance Between Oil Needs And Climate Reality
America Looks For A Balance Between Oil Needs And Climate Reality
America Looks For A Balance Between Oil Needs And Climate Reality
2021/07/22 14:19
Houston Scrambles To Remain The Energy Capital Of The U.S.
Houston Scrambles To Remain The Energy Capital Of The U.S.
Houston Scrambles To Remain The Energy Capital Of The U.S.
2021/07/22 14:16
Oil Prices Inch Even Lower Following Devastating 7% Single-Day Loss
Oil Prices Inch Even Lower Following Devastating 7% Single-Day Loss
After plunging nearly 7% on Monday, oil prices saw a leveling off and even a smidgeon of a rebound on Tuesday in what many hope will be a new state of calm in the market.
2021/07/21 11:47
10 Things You Never Knew About Oil
From OPEC to U.S. shale, from fracking to negative oil prices, from endless political debates to inventories, the fossil fuel industry is never short on headlines. But the industry has a few lesser-known tidbits that might come as a surprise to even the savviest oil industry connoisseur.
2021/07/21 11:42
China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports
China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports
Saudi Arabia remained China’s single largest crude oil supplier in June, ahead of Russia, although Saudi shipments to the world’s top oil importer fell by 19 percent last month amid lower overall imports, according to official Chinese customs data cited by Reuters.
2021/07/21 11:35
What's Next For Oil After The New OPEC+ Deal
What's Next For Oil After The New OPEC+ Deal
The recent OPEC+ meeting ended with an agreement that would gradually increase the cartel’s monthly production until in late 2022 all of the 9.7 mm BOPD that had originally been withheld from the market, was restored. There was already an agreement in place through December of 2021, but the Kingdom of Saudi Arabia’s, (KSA) desire to extend it to the end of next year was a bone of contention with the United Arab Emirates, (UAE). This agreement was not reached easily and required some negotiation and compromise to achieve. It has been widely reported that the crux of the disagreement between KSA and the UAE, was the latter’s desire for a higher output ceiling from which its share of curtailment would be calculated. This, while certainly true, is not the only factor in the new assertiveness demonstrated by the UAE in OPEC affairs.
2021/07/20 16:43
China’s Changing Policies Could Create A Huge Oil Demand Deficit
China’s Changing Policies Could Create A Huge Oil Demand Deficit
Figures released last week show that China’s crude oil imports in the first half of 2021 declined for the first time in eight years.
2021/07/20 15:26
China Could See Slowest Oil Import Growth In Two Decades
China Could See Slowest Oil Import Growth In Two Decades
High oil prices and China’s crackdown on the use of oil import quotas could result in the lowest crude oil import growth at the world’s top oil importer since 2001, analysts tell Reuters.
Deadly Typhoon Threatens Strategic Chinese Oil Hub
Deadly Typhoon Threatens Strategic Chinese Oil Hub
The In-fa typhoon, which caused devastating flooding in parts of China this week—claiming at least 33 lives—is expected to make landfall this weekend in a key area hosting some of the largest Chinese refineries and oil storage tanks.
Middle East Oil Giants Grapple With Cyberattacks
Middle East Oil Giants Grapple With Cyberattacks
As the global oil and gas markets are recovering from the steep sell-off last Monday, threats in the market are not just linked to demand-supply concerns. Cybersecurity specialists reported this week that hackers managed to get access to a large amount of data from Saudi oil giant Aramco. The company has confirmed that around 1TB of (confidential) data was stolen from its servers. According to AP sources, the data has been put on offer on the darknet for a price of $50 million.
Oil Dips After EIA Reports Crude Inventory Build
Oil Dips After EIA Reports Crude Inventory Build
Crude oil prices briefly dipped after the Energy Information Administration reported a crude oil inventory build of 2.1 million barrels for the week to July 16.
Traders Brace For Major Oil Market Volatility This Summer
Traders Brace For Major Oil Market Volatility This Summer
After a period of relative stability in the oil market where U.S. crude benchmark WTI was trading above $70 a barrel for more than a month, traders are now bracing for a wild ride for the rest of the summer.
America Looks For A Balance Between Oil Needs And Climate Reality
America Looks For A Balance Between Oil Needs And Climate Reality
America Looks For A Balance Between Oil Needs And Climate Reality
Houston Scrambles To Remain The Energy Capital Of The U.S.
Houston Scrambles To Remain The Energy Capital Of The U.S.
Houston Scrambles To Remain The Energy Capital Of The U.S.
Oil Prices Inch Even Lower Following Devastating 7% Single-Day Loss
Oil Prices Inch Even Lower Following Devastating 7% Single-Day Loss
After plunging nearly 7% on Monday, oil prices saw a leveling off and even a smidgeon of a rebound on Tuesday in what many hope will be a new state of calm in the market.
10 Things You Never Knew About Oil
From OPEC to U.S. shale, from fracking to negative oil prices, from endless political debates to inventories, the fossil fuel industry is never short on headlines. But the industry has a few lesser-known tidbits that might come as a surprise to even the savviest oil industry connoisseur.
China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports
China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports
Saudi Arabia remained China’s single largest crude oil supplier in June, ahead of Russia, although Saudi shipments to the world’s top oil importer fell by 19 percent last month amid lower overall imports, according to official Chinese customs data cited by Reuters.
What's Next For Oil After The New OPEC+ Deal
What's Next For Oil After The New OPEC+ Deal
The recent OPEC+ meeting ended with an agreement that would gradually increase the cartel’s monthly production until in late 2022 all of the 9.7 mm BOPD that had originally been withheld from the market, was restored. There was already an agreement in place through December of 2021, but the Kingdom of Saudi Arabia’s, (KSA) desire to extend it to the end of next year was a bone of contention with the United Arab Emirates, (UAE). This agreement was not reached easily and required some negotiation and compromise to achieve. It has been widely reported that the crux of the disagreement between KSA and the UAE, was the latter’s desire for a higher output ceiling from which its share of curtailment would be calculated. This, while certainly true, is not the only factor in the new assertiveness demonstrated by the UAE in OPEC affairs.
China’s Changing Policies Could Create A Huge Oil Demand Deficit
China’s Changing Policies Could Create A Huge Oil Demand Deficit
Figures released last week show that China’s crude oil imports in the first half of 2021 declined for the first time in eight years.

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.