Delayed Deal Between Saudi Arabia And India May Still Happen Against All Odds
Delayed Deal Between Saudi Arabia And India May Still Happen Against All Odds
A long-delayed deal between Saudi Arabia’s flagship oil company, Saudi Aramco, and Indian conglomerate, Reliance Industries, looks closer to going ahead following the recent appointment of Aramco chairman, Yasir Al-Rumayyan, as an independent director on the board of Reliance. Two or three years ago when the idea for the tie-up based around both companies’ oil-to-chemicals operations made some sense from both sides, now it makes great sense from Aramco’s side and no sense at all from Reliance’s, but wider geopolitical pressures mean that it is likely to go ahead anyway.
2021/07/06 11:42
Suddenly a big explosion in the Caspian waters near Azerbaijan
Suddenly a big explosion in the Caspian waters near Azerbaijan
According to TASS news agency, on the night of July 4, local time, a huge explosion occurred in the Caspian waters near Azerbaijan and caused a fire. The scene was captured by residents on the shore and quickly spread in the media and the Internet.

2021/07/05 22:09
Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
2021/07/02 14:35
Despite announcements last year that it is striving for net-zero carbon emissions by 2050, Norway has now said it will go full steam ahead in its oil ventures over the coming decades.
Norway Is Going Full Steam Ahead On Its Oil Ventures
Despite announcements last year that it is striving for net-zero carbon emissions by 2050, Norway has now said it will go full steam ahead in its oil ventures over the coming decades. While neighboring Denmark plans to end all North Sea operations by 2050, Norway, Western Europe’s largest oil producer, continues to offer exploration and production contracts to several companies, as it intends to develop its already well-established oil industry further.
2021/07/02 14:30
India’s oil demand is expected to get back to normal by the end of the year, following months of uncertainty in the face of a third wave of Covid-19 infections.
India’s Oil Demand Expected To Return To Normal By End Of Year
India’s oil demand is expected to get back to normal by the end of the year, following months of uncertainty in the face of a third wave of Covid-19 infections.
2021/07/02 14:24
Big Oil’s Digital Pivot Marks The Beginning Of A New Era For The Industry
The oil and gas industry is embracing new technologies to save time and costs and, most recently, to reduce the carbon footprint of its supply chain as the energy sector is under increased pressure to reward shareholders while helping to fight climate cha
The oil and gas industry is embracing new technologies to save time and costs and, most recently, to reduce the carbon footprint of its supply chain as the energy sector is under increased pressure to reward shareholders while helping to fight climate change. Along with artificial intelligence, machine learning, digital twins, and robotics, the world’s biggest oil and gas firms and oilfield services providers are betting on 3D printing, also known as additive manufacturing, to streamline operations, cut costs and save time, and reduce emissions from spare parts manufacturing.
2021/07/01 17:38
This Norwegian Flagship Crude Could Save The Brent Benchmark
This Norwegian Flagship Crude Could Save The Brent Benchmark
Deliberations on which benchmark presents the best opportunities to trade just never seem to stop. The gradual decline of all erstwhile champions of North Sea output champions has compelled pricing agencies to include newer and newer grades into the Brent basket to ensure the traded benchmark’s liquidity.
2021/07/01 17:17
Could East Africa Become The Next Major Oil Hotspot?
Could East Africa Become The Next Major Oil Hotspot?
Could East Africa Become The Next Major Oil Hotspot?
2021/06/30 14:44
Recon Africa: The Truth About The World's Most Exciting Oil Play
Recon Africa: The Truth About The World's Most Exciting Oil Play
A daring junior oil and gas explorer has set out to put the African country of Namibia—which has never produced a single barrel of oil - on the world’s energy map in a wildcat drill campaign that has taken many by surprise.
2021/06/30 14:26
Qatar: Peak Natural Gas Demand To Occur Around 2040
Qatar: Peak Natural Gas Demand To Occur Around 2040
One of the world’s largest liquefied natural gas (LNG) exporters, Qatar, expects global natural gas demand to peak at some point around 2040, Bloomberg reported on Monday, quoting a bond prospectus of Qatar Petroleum it had seen.
2021/06/29 15:09
U.S. Shale Producers Stick To Output Discipline
U.S. Shale Producers Stick To Output Discipline
Despite a strong rebound in oil prices, seeing them hit three-year highs, U.S. shale oil producers are sticking to their output discipline, Reuters reports, citing rig count data and industry insiders.
2021/06/29 15:03
Brazil's Oil Boom Continues Unabated
Brazil's Oil Boom Continues Unabated
Brazil's Oil Boom Continues Unabated
2021/06/29 14:56
Delayed Deal Between Saudi Arabia And India May Still Happen Against All Odds
Delayed Deal Between Saudi Arabia And India May Still Happen Against All Odds
A long-delayed deal between Saudi Arabia’s flagship oil company, Saudi Aramco, and Indian conglomerate, Reliance Industries, looks closer to going ahead following the recent appointment of Aramco chairman, Yasir Al-Rumayyan, as an independent director on the board of Reliance. Two or three years ago when the idea for the tie-up based around both companies’ oil-to-chemicals operations made some sense from both sides, now it makes great sense from Aramco’s side and no sense at all from Reliance’s, but wider geopolitical pressures mean that it is likely to go ahead anyway.
Suddenly a big explosion in the Caspian waters near Azerbaijan
Suddenly a big explosion in the Caspian waters near Azerbaijan
According to TASS news agency, on the night of July 4, local time, a huge explosion occurred in the Caspian waters near Azerbaijan and caused a fire. The scene was captured by residents on the shore and quickly spread in the media and the Internet.

Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
Peru’s Oil Industry Is Bouncing Back Despite Election Chaos
Despite announcements last year that it is striving for net-zero carbon emissions by 2050, Norway has now said it will go full steam ahead in its oil ventures over the coming decades.
Norway Is Going Full Steam Ahead On Its Oil Ventures
Despite announcements last year that it is striving for net-zero carbon emissions by 2050, Norway has now said it will go full steam ahead in its oil ventures over the coming decades. While neighboring Denmark plans to end all North Sea operations by 2050, Norway, Western Europe’s largest oil producer, continues to offer exploration and production contracts to several companies, as it intends to develop its already well-established oil industry further.
India’s oil demand is expected to get back to normal by the end of the year, following months of uncertainty in the face of a third wave of Covid-19 infections.
India’s Oil Demand Expected To Return To Normal By End Of Year
India’s oil demand is expected to get back to normal by the end of the year, following months of uncertainty in the face of a third wave of Covid-19 infections.
Big Oil’s Digital Pivot Marks The Beginning Of A New Era For The Industry
The oil and gas industry is embracing new technologies to save time and costs and, most recently, to reduce the carbon footprint of its supply chain as the energy sector is under increased pressure to reward shareholders while helping to fight climate cha
The oil and gas industry is embracing new technologies to save time and costs and, most recently, to reduce the carbon footprint of its supply chain as the energy sector is under increased pressure to reward shareholders while helping to fight climate change. Along with artificial intelligence, machine learning, digital twins, and robotics, the world’s biggest oil and gas firms and oilfield services providers are betting on 3D printing, also known as additive manufacturing, to streamline operations, cut costs and save time, and reduce emissions from spare parts manufacturing.
This Norwegian Flagship Crude Could Save The Brent Benchmark
This Norwegian Flagship Crude Could Save The Brent Benchmark
Deliberations on which benchmark presents the best opportunities to trade just never seem to stop. The gradual decline of all erstwhile champions of North Sea output champions has compelled pricing agencies to include newer and newer grades into the Brent basket to ensure the traded benchmark’s liquidity.
Could East Africa Become The Next Major Oil Hotspot?
Could East Africa Become The Next Major Oil Hotspot?
Could East Africa Become The Next Major Oil Hotspot?
Recon Africa: The Truth About The World's Most Exciting Oil Play
Recon Africa: The Truth About The World's Most Exciting Oil Play
A daring junior oil and gas explorer has set out to put the African country of Namibia—which has never produced a single barrel of oil - on the world’s energy map in a wildcat drill campaign that has taken many by surprise.
Qatar: Peak Natural Gas Demand To Occur Around 2040
Qatar: Peak Natural Gas Demand To Occur Around 2040
One of the world’s largest liquefied natural gas (LNG) exporters, Qatar, expects global natural gas demand to peak at some point around 2040, Bloomberg reported on Monday, quoting a bond prospectus of Qatar Petroleum it had seen.
U.S. Shale Producers Stick To Output Discipline
U.S. Shale Producers Stick To Output Discipline
Despite a strong rebound in oil prices, seeing them hit three-year highs, U.S. shale oil producers are sticking to their output discipline, Reuters reports, citing rig count data and industry insiders.
Brazil's Oil Boom Continues Unabated
Brazil's Oil Boom Continues Unabated
Brazil's Oil Boom Continues Unabated

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.