As central banks around the world hike interest rates, global economic growth is slowing, which will ultimately lead to a slowdown in India’s energy demand growth.
India’s Oil And Gas Demand Could Disappoint In 2023
In recent years India has been a key driver of global energy demand growth, helping to push both oil and gas prices higher.
As central banks around the world hike interest rates, global economic growth is slowing, which will ultimately lead to a slowdown in India’s energy demand growth.
While India may see a slowdown in oil and gas demand next year, its growing transportation sector will drive plenty of demand growth in the future.
2022/12/28 14:34
Europe Can’t Count On U.S. Shale To Make Up For Russian Crude
Europe Can’t Count On U.S. Shale To Make Up For Russian Crude
EU crude imports from Russia are set to plunge after the import ban of seaborne crude oil on December 5th.
Oil production growth in the U.S. is flattening for a number of reasons.
U.S. crude exports to the EU can only replace a small portion of Russian/OPEC crude.
2022/12/06 18:45
Cocaine Conflict Is Causing A Crisis For Colombia’s Oil Industry
Cocaine Conflict Is Causing A Crisis For Colombia’s Oil Industry
Colombia’s oil industry is facing multiple headwinds, including higher taxes, plans to end exploration, and its crude reserves running out.
Perhaps the largest headwind is the violence associated with the country’s cocaine trade, as its largest oil-producing areas are also coca-cultivating regions
In Colombia, oil is responsible for 3% of the gross domestic product, 12% of national income, a third of foreign investment, and 34% of total exports by value.
2022/12/02 17:10
Oil Prices Extend Losses After EIA Inventory Data Release
Oil Prices Extend Losses After EIA Inventory Data Release
Crude oil prices fell today, even after the U.S. Energy Information Administration reported inventories of oil had shed 3.7 million barrels over the week to November 18.
2022/11/26 17:16
The Biden Administration has just approved a new 2 million bpd oil export terminal for the Texas Gulf Coast.
Biden Quietly Approved 2 Million Bpd Texas Oil Terminal
The Biden Administration has just approved a new 2 million bpd oil export terminal for the Texas Gulf Coast.
The approval comes amid suggestions from Democrats in Congress that the U.S. should curb oil exports to secure local supply.
The project involves building a terminal about 30 miles south of Freeport, in Surfside.
2022/11/26 17:14
World leaders have become a bit more receptive to the notion that fossil fuels may play a role in energy’s future.
The Climate-Friendly Solution Is More U.S. Oil, Not Less: U.S. Republicans
At the UN climate summit in Egypt, U.S. Republicans have argued that the cleanest oil in the world comes from the United States.
Lousiana Republican Representative Garret Graves: If we are going to be increasing global demand of oil and gas we must ensure that the extraction, exploration and production activities are occurring in places where we have the lowest emissions per unit of energy.
World leaders have become a bit more receptive to the notion that fossil fuels may play a role in energy’s future.
2022/11/14 11:30
U.S. oil companies are warning of a slowdown in production growth.
U.S. Oil Companies Remain Cautious As Economic Headwinds Grow
U.S. oil companies are warning of a slowdown in production growth.
Inflation, labor shortages and supply chain issues are fueling uncertainty in the industry.
As the market braces for a rocky road ahead, U.S. oil companies will likely remain cautious for the foreseeable future.
2022/11/08 08:53
Some Big Oil companies are so confident that high oil prices are here to stay that they have completely ditched their hedges.
Why Overly Confident U.S. Drillers Ditched Their Hedges
Some Big Oil companies are so confident that high oil prices are here to stay that they have completely ditched their hedges.
Scotiabank's Paul Cheng: the best hedge for oil and gas companies is a strong balance sheet.
U.S. shale producers will suffer a staggering $42 billion in hedging losses in 2022
2022/11/04 15:58
U.S. Accelerates Three-Tier Plan To Reduce Oil Prices
U.S. Accelerates Three-Tier Plan To Reduce Oil Prices
U.S. President Biden has three key strategies in place to lower oil prices.
The first and foremost strategy is the implementation of the NOPEC bill.
The second pillar of the plan is to release more crude from the U.S. SPR.
The third element of the plan to bring oil prices down is to be a concerted effort to encourage U.S. oil firms, shale or otherwise, to increase their production.
2022/10/28 16:34
Oil Jumps Despite Major Crude Inventory Build
Oil Jumps Despite Major Crude Inventory Build
Crude oil prices moved lower today after the Energy Information Administration reported a crude oil inventory build of 9.9 million barrels for the week to October 7, but the move lower didn't last long.
2022/10/17 10:00
U.S. Refiners Are Preparing For A Potential Fuel Export Ban
U.S. Refiners Are Preparing For A Potential Fuel Export Ban
U.S. refiners have been bracing themselves for the possibility that President Biden will impose some sort of fuel exports ban or restriction ahead of the mid-terms.
One industry executive said his company didn’t have a place to put the excess fuel, so would have to slow refinery runs and produce less diesel and gasoline.
Oil producers and energy experts have widely criticized the plan, suggesting that it could lead to job losses, productivity declines, and, in the long run, high prices.
2022/10/17 09:55
Introduction of Plunger
2022/10/10 16:14
As central banks around the world hike interest rates, global economic growth is slowing, which will ultimately lead to a slowdown in India’s energy demand growth.
India’s Oil And Gas Demand Could Disappoint In 2023
In recent years India has been a key driver of global energy demand growth, helping to push both oil and gas prices higher.
As central banks around the world hike interest rates, global economic growth is slowing, which will ultimately lead to a slowdown in India’s energy demand growth.
While India may see a slowdown in oil and gas demand next year, its growing transportation sector will drive plenty of demand growth in the future.
Europe Can’t Count On U.S. Shale To Make Up For Russian Crude
Europe Can’t Count On U.S. Shale To Make Up For Russian Crude
EU crude imports from Russia are set to plunge after the import ban of seaborne crude oil on December 5th.
Oil production growth in the U.S. is flattening for a number of reasons.
U.S. crude exports to the EU can only replace a small portion of Russian/OPEC crude.
Cocaine Conflict Is Causing A Crisis For Colombia’s Oil Industry
Cocaine Conflict Is Causing A Crisis For Colombia’s Oil Industry
Colombia’s oil industry is facing multiple headwinds, including higher taxes, plans to end exploration, and its crude reserves running out.
Perhaps the largest headwind is the violence associated with the country’s cocaine trade, as its largest oil-producing areas are also coca-cultivating regions
In Colombia, oil is responsible for 3% of the gross domestic product, 12% of national income, a third of foreign investment, and 34% of total exports by value.
Oil Prices Extend Losses After EIA Inventory Data Release
Oil Prices Extend Losses After EIA Inventory Data Release
Crude oil prices fell today, even after the U.S. Energy Information Administration reported inventories of oil had shed 3.7 million barrels over the week to November 18.
The Biden Administration has just approved a new 2 million bpd oil export terminal for the Texas Gulf Coast.
Biden Quietly Approved 2 Million Bpd Texas Oil Terminal
The Biden Administration has just approved a new 2 million bpd oil export terminal for the Texas Gulf Coast.
The approval comes amid suggestions from Democrats in Congress that the U.S. should curb oil exports to secure local supply.
The project involves building a terminal about 30 miles south of Freeport, in Surfside.
World leaders have become a bit more receptive to the notion that fossil fuels may play a role in energy’s future.
The Climate-Friendly Solution Is More U.S. Oil, Not Less: U.S. Republicans
At the UN climate summit in Egypt, U.S. Republicans have argued that the cleanest oil in the world comes from the United States.
Lousiana Republican Representative Garret Graves: If we are going to be increasing global demand of oil and gas we must ensure that the extraction, exploration and production activities are occurring in places where we have the lowest emissions per unit of energy.
World leaders have become a bit more receptive to the notion that fossil fuels may play a role in energy’s future.
U.S. oil companies are warning of a slowdown in production growth.
U.S. Oil Companies Remain Cautious As Economic Headwinds Grow
U.S. oil companies are warning of a slowdown in production growth.
Inflation, labor shortages and supply chain issues are fueling uncertainty in the industry.
As the market braces for a rocky road ahead, U.S. oil companies will likely remain cautious for the foreseeable future.
Some Big Oil companies are so confident that high oil prices are here to stay that they have completely ditched their hedges.
Why Overly Confident U.S. Drillers Ditched Their Hedges
Some Big Oil companies are so confident that high oil prices are here to stay that they have completely ditched their hedges.
Scotiabank's Paul Cheng: the best hedge for oil and gas companies is a strong balance sheet.
U.S. shale producers will suffer a staggering $42 billion in hedging losses in 2022
U.S. Accelerates Three-Tier Plan To Reduce Oil Prices
U.S. Accelerates Three-Tier Plan To Reduce Oil Prices
U.S. President Biden has three key strategies in place to lower oil prices.
The first and foremost strategy is the implementation of the NOPEC bill.
The second pillar of the plan is to release more crude from the U.S. SPR.
The third element of the plan to bring oil prices down is to be a concerted effort to encourage U.S. oil firms, shale or otherwise, to increase their production.
Oil Jumps Despite Major Crude Inventory Build
Oil Jumps Despite Major Crude Inventory Build
Crude oil prices moved lower today after the Energy Information Administration reported a crude oil inventory build of 9.9 million barrels for the week to October 7, but the move lower didn't last long.
U.S. Refiners Are Preparing For A Potential Fuel Export Ban
U.S. Refiners Are Preparing For A Potential Fuel Export Ban
U.S. refiners have been bracing themselves for the possibility that President Biden will impose some sort of fuel exports ban or restriction ahead of the mid-terms.
One industry executive said his company didn’t have a place to put the excess fuel, so would have to slow refinery runs and produce less diesel and gasoline.
Oil producers and energy experts have widely criticized the plan, suggesting that it could lead to job losses, productivity declines, and, in the long run, high prices.
Introduction of Plunger

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.