OPEC+ agreed to ease production cuts in January by 400,000 bpd OPEC+: There will also be an extension of the compensation cuts
OPEC+ To Add 400,000 Bpd In January Despite Oil Price Plunge
OPEC+ agreed to ease production cuts in January by 400,000 bpd
OPEC+: There will also be an extension of the compensation cuts
Saudi Arabia and Russia had already signaled that Omicron shouldn’t be a reason to jump to hasty decisions
2021/12/03 13:57
The latest drop in oil prices plays to the cartel’s concerns over oil demand in the near to medium term.
$70 Oil Won't Keep OPEC Happy
Oil prices plunged on Friday on renewed fears of a COVID-19-fueled drop in demand.

OPEC has been slow to open the taps despite soaring oil prices over the past several months.

The latest drop in oil prices plays to the cartel’s concerns over oil demand in the near to medium term.
2021/12/01 08:48
The tiny South American nation of Guyana has emerged as the hottest offshore drilling location on the continent over the last six years.
Guyana To Become The 11th Country To Produce Over 1 Million Bpd
The tiny South American nation of Guyana has emerged as the hottest offshore drilling location on the continent over the last six years.
2021/12/01 08:32
In line with the UAE’s position as a key U.S. ally in the region going forward, U.S. companies featured heavily in the contract awards
UAE Pumps $6 Billion Into Oil And Gas Expansion Projects
ADNOC is planning to invest up to US$6 billion towards improving its drilling business

In line with the UAE’s position as a key U.S. ally in the region going forward, U.S. companies featured heavily in the contract awards
2021/11/29 18:19
Demand for oil and gas is up, as we are seeing increased shortages globally, forcing the world’s oil-producing countries to ramp up production.
Canada's Ambitious New Plan To Save Its Oil Sands
Canada’s ambitious plan to utilize geothermal energy could help save its economically-dependent oil sands.
2021/11/29 18:13
US President Joe Biden announced the release of 50 million barrels of crude oil from the Strategic Petroleum Reserve Analysts: The SPR release has been priced in already
Biden Announces 50 Million Barrels SPR Release To Lower Oil Prices
US President Joe Biden announced the release of 50 million barrels of crude oil from the Strategic Petroleum Reserve

Analysts: The SPR release has been priced in already
2021/11/24 21:08
A potential ban on crude oil exports is under consideration at the White House, a Democratic Congressman told Bloomberg, adding that “The economics of it makes sense.”
Biden Administration Considers Ban On U.S. Oil Exports
A potential ban on crude oil exports is under consideration at the White House, a Democratic Congressman told Bloomberg, adding that “The economics of it makes sense.”
2021/11/24 21:05
President Joe Biden has been scrambling to put a lid on runaway oil prices over the past month. Biden’s latest plan is a joint strategic oil reserve release, cooperating with the likes of China, India, and Japan.
SPR Release Only Triggered A Brief Selloff In Crude Oil
President Joe Biden has been scrambling to put a lid on runaway oil prices over the past month.

Biden’s latest plan is a joint strategic oil reserve release, cooperating with the likes of China, India, and Japan.
2021/11/24 21:01
The march towards energy independence began 10 years ago, and oil and gas imports have been shrinking ever since. The energy independence's trajectory is clear, and the impact of the COVID-19 demand destruction will likely be temporary in the long run.
Has Biden Brought An End To U.S. Energy Independence?
The march towards energy independence began 10 years ago, and oil and gas imports have been shrinking ever since. The energy independence's trajectory is clear, and the impact of the COVID-19 demand destruction will likely be temporary in the long run.
2021/11/23 19:08
OPEC delegates: releasing millions of barrels from major oil consumers’ SPRs is not supported by market conditions
OPEC+ Vows To Respond If Countries Tap Their Oil Reserves
OPEC delegates: releasing millions of barrels from major oil consumers’ SPRs is not supported by market conditions
2021/11/23 19:03
The COVID-19 pandemic has taken a particularly harsh toll on Colombia’s economically-dependent oil and gas industry.Colombia desperately needs to ramp up oil and gas production.
Colombia Desperately Needs To Ramp Up Its Oil Production
The COVID-19 pandemic has taken a particularly harsh toll on Colombia’s economically-dependent oil and gas industry.Colombia desperately needs to ramp up oil and gas production.
2021/11/23 18:59
China Prepares To Release Oil From Strategic Reserve
China Prepares To Release Oil From Strategic Reserve
Reuters: China is preparing to release crude oil from its strategic reserve
2021/11/19 18:19
OPEC+ agreed to ease production cuts in January by 400,000 bpd OPEC+: There will also be an extension of the compensation cuts
OPEC+ To Add 400,000 Bpd In January Despite Oil Price Plunge
OPEC+ agreed to ease production cuts in January by 400,000 bpd
OPEC+: There will also be an extension of the compensation cuts
Saudi Arabia and Russia had already signaled that Omicron shouldn’t be a reason to jump to hasty decisions
The latest drop in oil prices plays to the cartel’s concerns over oil demand in the near to medium term.
$70 Oil Won't Keep OPEC Happy
Oil prices plunged on Friday on renewed fears of a COVID-19-fueled drop in demand.

OPEC has been slow to open the taps despite soaring oil prices over the past several months.

The latest drop in oil prices plays to the cartel’s concerns over oil demand in the near to medium term.
The tiny South American nation of Guyana has emerged as the hottest offshore drilling location on the continent over the last six years.
Guyana To Become The 11th Country To Produce Over 1 Million Bpd
The tiny South American nation of Guyana has emerged as the hottest offshore drilling location on the continent over the last six years.
In line with the UAE’s position as a key U.S. ally in the region going forward, U.S. companies featured heavily in the contract awards
UAE Pumps $6 Billion Into Oil And Gas Expansion Projects
ADNOC is planning to invest up to US$6 billion towards improving its drilling business

In line with the UAE’s position as a key U.S. ally in the region going forward, U.S. companies featured heavily in the contract awards
Demand for oil and gas is up, as we are seeing increased shortages globally, forcing the world’s oil-producing countries to ramp up production.
Canada's Ambitious New Plan To Save Its Oil Sands
Canada’s ambitious plan to utilize geothermal energy could help save its economically-dependent oil sands.
US President Joe Biden announced the release of 50 million barrels of crude oil from the Strategic Petroleum Reserve Analysts: The SPR release has been priced in already
Biden Announces 50 Million Barrels SPR Release To Lower Oil Prices
US President Joe Biden announced the release of 50 million barrels of crude oil from the Strategic Petroleum Reserve

Analysts: The SPR release has been priced in already
A potential ban on crude oil exports is under consideration at the White House, a Democratic Congressman told Bloomberg, adding that “The economics of it makes sense.”
Biden Administration Considers Ban On U.S. Oil Exports
A potential ban on crude oil exports is under consideration at the White House, a Democratic Congressman told Bloomberg, adding that “The economics of it makes sense.”
President Joe Biden has been scrambling to put a lid on runaway oil prices over the past month. Biden’s latest plan is a joint strategic oil reserve release, cooperating with the likes of China, India, and Japan.
SPR Release Only Triggered A Brief Selloff In Crude Oil
President Joe Biden has been scrambling to put a lid on runaway oil prices over the past month.

Biden’s latest plan is a joint strategic oil reserve release, cooperating with the likes of China, India, and Japan.
The march towards energy independence began 10 years ago, and oil and gas imports have been shrinking ever since. The energy independence's trajectory is clear, and the impact of the COVID-19 demand destruction will likely be temporary in the long run.
Has Biden Brought An End To U.S. Energy Independence?
The march towards energy independence began 10 years ago, and oil and gas imports have been shrinking ever since. The energy independence's trajectory is clear, and the impact of the COVID-19 demand destruction will likely be temporary in the long run.
OPEC delegates: releasing millions of barrels from major oil consumers’ SPRs is not supported by market conditions
OPEC+ Vows To Respond If Countries Tap Their Oil Reserves
OPEC delegates: releasing millions of barrels from major oil consumers’ SPRs is not supported by market conditions
The COVID-19 pandemic has taken a particularly harsh toll on Colombia’s economically-dependent oil and gas industry.Colombia desperately needs to ramp up oil and gas production.
Colombia Desperately Needs To Ramp Up Its Oil Production
The COVID-19 pandemic has taken a particularly harsh toll on Colombia’s economically-dependent oil and gas industry.Colombia desperately needs to ramp up oil and gas production.
China Prepares To Release Oil From Strategic Reserve
China Prepares To Release Oil From Strategic Reserve
Reuters: China is preparing to release crude oil from its strategic reserve

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.