The global refining industry is already facing longer-term challenges with the energy transition.
Refiners Face Huge Long-Term Challenges
The global refining industry has not recovered yet from the impact of the pandemic, but it is already facing longer-term challenges with the energy transition.
2021/07/28 18:05
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela is ignoring U.S. sanctions with its plan to boost production to 1.5 million bpd by the end of the year, around three times the current output.
2021/07/28 17:58
India May Join China In Bid To Lower Oil Prices
India May Join China In Bid To Lower Oil Prices
The world’s third-largest crude oil importer, India, could join China in tapping into its strategic petroleum reserve in a bid to sell lower-priced crude to its refiners amid rallying international oil prices.
2021/07/28 17:51
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya could boost its oil production to 1.6 million barrels per day (bpd) by the middle of 2022 if the industry has the necessary funding, Libya’s Oil Minister Mohamed Oun told Italian news agency Agenzia Nova in an interview published this week.
2021/07/28 17:39
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country's largest after the supermajor leaves the country.
2021/07/28 17:27
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
It is not in Iraq's best interest to adopt renewable energy at the expense of fossil fuels, energy and oil expert Hamza al-Jawaheri told local Shafaq News Agency in an interviewon Monday.
2021/07/28 14:34
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
2021/07/27 19:22
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
The global refining industry is already facing longer-term challenges with the energy transition.
Refiners Face Huge Long-Term Challenges
The global refining industry has not recovered yet from the impact of the pandemic, but it is already facing longer-term challenges with the energy transition.
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela is ignoring U.S. sanctions with its plan to boost production to 1.5 million bpd by the end of the year, around three times the current output.
India May Join China In Bid To Lower Oil Prices
India May Join China In Bid To Lower Oil Prices
The world’s third-largest crude oil importer, India, could join China in tapping into its strategic petroleum reserve in a bid to sell lower-priced crude to its refiners amid rallying international oil prices.
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya could boost its oil production to 1.6 million barrels per day (bpd) by the middle of 2022 if the industry has the necessary funding, Libya’s Oil Minister Mohamed Oun told Italian news agency Agenzia Nova in an interview published this week.
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country's largest after the supermajor leaves the country.
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
It is not in Iraq's best interest to adopt renewable energy at the expense of fossil fuels, energy and oil expert Hamza al-Jawaheri told local Shafaq News Agency in an interviewon Monday.
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
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.

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.