U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
Saudi Aramco Is Taking A Page Out Of The U.S. Shale Playbook
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
The Kingdom of Saudi Arabia-KSA has also received calls from the U.S. government to increase its output. KSA has notionally agreed, but with relatively token amounts that do not address the U.S. government’s goal of reducing oil prices.
A closer look at their recent report to shareholders, along with other investing actions they have taken, seems to draw similarities in mindset with U.S. shale producers, in terms of holding to previously announced capital restraint.
2022/08/18 09:15
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
Commodities Trading: The Secret Behind Big Oil’s Bumper Earnings
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
BP has managed to build one of the most successful energy trading ventures.
Massive trading floors that sometimes rival Wall Street’s biggest banks are becoming increasingly important to oil companies.
2022/08/04 09:53
Traders Are Betting On The End Of The Oil Price Slump
Money managers have started to close out short positions on oil.
The oil price slump that started mid-June could be about to reverse.
The disconnect between the physical crude market and paper crude market remains large.
2022/07/26 18:42
The Middle East Oil Bonanza Will Slow In 2023
The Middle East Oil Bonanza Will Slow In 2023
Slowing global oil demand growth next year, spiking food prices, and fears of recession in major oil-importing countries are set to slow economic growth in the Middle East.
2022/07/22 14:20
Russia and Saudi Arabia saw the largest production gains within the group of producers in June
Putin Calls Saudi Crown Prince To Discuss Oil Market, OPEC+
Putin and MBS discuss OPEC+ and oil markets in phone call.
Russia and Saudi Arabia saw the largest production gains within the group of producers in June.
The phone call is just the latest in a series of calls between Saudi Arabia and Russia.
2022/07/22 14:16
IEA Slashes Oil Forecast As Demand Destruction Looms Over The Market
IEA Slashes Oil Forecast As Demand Destruction Looms Over The Market
High fuel prices is beginning to weigh on consumption.
The IEA has slashed its demand forecast, revising down its estimates by 100,000 bpd.
“Higher prices and a deteriorating economic environment have started to take their toll on oil demand,” the agency said.
2022/07/14 17:18
Though oil prices are on the rise across the globe, China is seeing prices fall.
China Is Taking Advantage Of Western Sanctions On Russia
Though oil prices are on the rise across the globe, China is seeing prices fall.
Western sanctions against Russia have left Moscow willing to unload its crude at mind-bending discounts.
China is taking advantage of the current geopolitical climate, buying up as much Russian oil as it can.
2022/07/06 18:49
The G7 Has Paved The Way For Increased Oil And Gas Spending
The G7 Has Paved The Way For Increased Oil And Gas Spending
Underinvestment in oil and gas in the past few years is seen as one of the main reasons for the current imbalance between supply and demand.
G7 nations have acknowledged the need for increased investment in foreign gas projects.
Big oil CEOs are calling for stability and consistency in government policies in order to boost investment.
2022/06/30 18:47
Why Is The United States Still Exporting Fuel?
Why Is The United States Still Exporting Fuel?
The price of gasoline has climbed above $5 per gallon.
U.S. fuel exports have continued to rise, adding additional pressure on domestic fuel inventories.
“With refiners already running at full tilt, something has to give,” BloombergNEF analyst Danny Adkins told Bloomberg.
2022/06/22 16:03
4 Middle Eastern nations are currently building out their refining capacity.
4 Nations That Could Help Solve The Global Fuel Crisis
Middle Eastern refiners could be processing some 8.8 million bpd of crude next year.
4 Middle Eastern nations are currently building out their refining capacity.
This increase is roughly equal to the amount of Russian fuels the European Union has embargoed.
2022/06/22 15:12
5 Midstream Oil Stocks With Perfect Exposure To Soaring Oil Prices
5 Midstream Oil Stocks With Perfect Exposure To Soaring Oil Prices
​After a brief hiatus, the oil price rally is back on track. Crude oil closed with its seventh straight weekly gain thanks to tight fuel supplies sustaining bullish sentiment. After a brief fall on Friday following news that U.S. inflation surged to a fresh 40-year high, WTI crude rebounded to end the week with a 1.5% gain to trade at $122.40/barrel, while Brent crude settled 1.9% higher at $124.03.
2022/06/14 19:39
Russian Oil Production May Fall To 18-Year Low On EU Oil Embargo
Russian Oil Production May Fall To 18-Year Low On EU Oil Embargo
WSJ: full oil embargo could send Russian production to 9.6 million bpd.
IEA estimates that Russia already shut in nearly 1 million bpd in April.
Russian Finance Minister Siluanov. production could drop by 17 percent this year due to the sanctions.
2022/05/14 11:38
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
Saudi Aramco Is Taking A Page Out Of The U.S. Shale Playbook
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
The Kingdom of Saudi Arabia-KSA has also received calls from the U.S. government to increase its output. KSA has notionally agreed, but with relatively token amounts that do not address the U.S. government’s goal of reducing oil prices.
A closer look at their recent report to shareholders, along with other investing actions they have taken, seems to draw similarities in mindset with U.S. shale producers, in terms of holding to previously announced capital restraint.
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
Commodities Trading: The Secret Behind Big Oil’s Bumper Earnings
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
BP has managed to build one of the most successful energy trading ventures.
Massive trading floors that sometimes rival Wall Street’s biggest banks are becoming increasingly important to oil companies.
Traders Are Betting On The End Of The Oil Price Slump
Money managers have started to close out short positions on oil.
The oil price slump that started mid-June could be about to reverse.
The disconnect between the physical crude market and paper crude market remains large.
The Middle East Oil Bonanza Will Slow In 2023
The Middle East Oil Bonanza Will Slow In 2023
Slowing global oil demand growth next year, spiking food prices, and fears of recession in major oil-importing countries are set to slow economic growth in the Middle East.
Russia and Saudi Arabia saw the largest production gains within the group of producers in June
Putin Calls Saudi Crown Prince To Discuss Oil Market, OPEC+
Putin and MBS discuss OPEC+ and oil markets in phone call.
Russia and Saudi Arabia saw the largest production gains within the group of producers in June.
The phone call is just the latest in a series of calls between Saudi Arabia and Russia.
IEA Slashes Oil Forecast As Demand Destruction Looms Over The Market
IEA Slashes Oil Forecast As Demand Destruction Looms Over The Market
High fuel prices is beginning to weigh on consumption.
The IEA has slashed its demand forecast, revising down its estimates by 100,000 bpd.
“Higher prices and a deteriorating economic environment have started to take their toll on oil demand,” the agency said.
Though oil prices are on the rise across the globe, China is seeing prices fall.
China Is Taking Advantage Of Western Sanctions On Russia
Though oil prices are on the rise across the globe, China is seeing prices fall.
Western sanctions against Russia have left Moscow willing to unload its crude at mind-bending discounts.
China is taking advantage of the current geopolitical climate, buying up as much Russian oil as it can.
The G7 Has Paved The Way For Increased Oil And Gas Spending
The G7 Has Paved The Way For Increased Oil And Gas Spending
Underinvestment in oil and gas in the past few years is seen as one of the main reasons for the current imbalance between supply and demand.
G7 nations have acknowledged the need for increased investment in foreign gas projects.
Big oil CEOs are calling for stability and consistency in government policies in order to boost investment.
Why Is The United States Still Exporting Fuel?
Why Is The United States Still Exporting Fuel?
The price of gasoline has climbed above $5 per gallon.
U.S. fuel exports have continued to rise, adding additional pressure on domestic fuel inventories.
“With refiners already running at full tilt, something has to give,” BloombergNEF analyst Danny Adkins told Bloomberg.
4 Middle Eastern nations are currently building out their refining capacity.
4 Nations That Could Help Solve The Global Fuel Crisis
Middle Eastern refiners could be processing some 8.8 million bpd of crude next year.
4 Middle Eastern nations are currently building out their refining capacity.
This increase is roughly equal to the amount of Russian fuels the European Union has embargoed.
5 Midstream Oil Stocks With Perfect Exposure To Soaring Oil Prices
5 Midstream Oil Stocks With Perfect Exposure To Soaring Oil Prices
​After a brief hiatus, the oil price rally is back on track. Crude oil closed with its seventh straight weekly gain thanks to tight fuel supplies sustaining bullish sentiment. After a brief fall on Friday following news that U.S. inflation surged to a fresh 40-year high, WTI crude rebounded to end the week with a 1.5% gain to trade at $122.40/barrel, while Brent crude settled 1.9% higher at $124.03.
Russian Oil Production May Fall To 18-Year Low On EU Oil Embargo
Russian Oil Production May Fall To 18-Year Low On EU Oil Embargo
WSJ: full oil embargo could send Russian production to 9.6 million bpd.
IEA estimates that Russia already shut in nearly 1 million bpd in April.
Russian Finance Minister Siluanov. production could drop by 17 percent this year due to the sanctions.

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.