Chinese Buyers Ramp Up Crude Oil Purchases
Chinese Buyers Ramp Up Crude Oil Purchases
After several months of slowdowns in spot market oil cargo buys, Chinese importers are once again boosting their purchases, Reuters reports, citing traders and analysts.
2021/09/01 13:49
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
China’s state-owned oil and gas major Sinopec has struck oil and gas at a field in the northwestern province of Xinjiang, Reuters reports, adding that the reserves at the field are estimated at some 100 million tons.
2021/08/28 13:57
The Future Of Oil Is Offshore
The Future Of Oil Is Offshore
Brazil and its tiny neighbors Guyana and Suriname have recently risen to prominence with major oil discoveries despite what most would see as an unfavorable environment—the energy transition seems to be moving ahead at full speed and oil’s days should be numbered. Only they aren’t. And the future of oil appears to be offshore.
2021/08/27 10:03
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
2021/08/26 18:26
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
2021/08/25 11:47
Brazil Could Provide A Quarter Of The World’s Offshore Oil In 4 Years
Brazil Could Provide A Quarter Of The World’s Offshore Oil In 4 Years
As Brazil’s oil industry looks set to soar over the next decade, with the potential to provide almost a quarter of the world’s offshore oil by 2025, Big Oil is betting big on the oil-rich state.
2021/08/24 19:25
China government will allocate 100 billion yuan to support photovoltaic and wind power projects in 2021
China government will allocate 100 billion yuan to support photovoltaic and wind power projects in 2021
"Fourteen five" 500 billion special funds! This year, 100 billion yuan will be allocated to support photovoltaic and wind power projects.
2021/08/23 14:21
Russia Has Big Plans For Arctic Oil
Russia Has Big Plans For Arctic Oil
Russia seems intent on selling the world’s very last barrel of oil. As other energy superpowers and petro-states around the world scramble to diversify their economies and establish a foothold in the burgeoning green energy transition, Russia has stalwartly refused to ease its reliance on its fossil fuels industry and is vying for the distinction of being the last man standing in an industry whose days are inevitably numbered.
2021/08/23 14:06
China Continues To Tap Crude Reserves Despite Plunge In Refining Activity
China Continues To Tap Crude Reserves Despite Plunge In Refining Activity
The world’s largest oil importer, China, is estimated to have drawn some crude from its oil reserves in July, although its refining throughput fell to the lowest level in over a year, Reuters columnist Clyde Russell has estimated based on official Chinese data.
2021/08/18 11:51
Canada Could Boost Oil Pipeline Capacity As Soon As September
Canada Could Boost Oil Pipeline Capacity As Soon As September
Canada’s oil sands producers may find welcome relief to years of pipeline capacity constraints when the first new pipeline in years could enter into service as early as next month.
2021/08/18 11:34
Why The U.S. Is So Vulnerable To Rising Oil Prices
Why The U.S. Is So Vulnerable To Rising Oil Prices
Oil markets started off the week under pressure as continued speculative “long” liquidation amid delta variant demand concerns weighed on prices. However, in an ironic twist, the oil market got a boost from an unlikely source on Wednesday as the Biden administration announced it was pleading with OPEC+ members to increase oil production to stem inflationary pressures from rising domestic gasoline prices.
2021/08/17 09:25
What Happens If We Stop Pumping Oil Tomorrow?
What Happens If We Stop Pumping Oil Tomorrow?
What Happens If We Stop Pumping Oil Tomorrow?If there was no oil, iPhones, technology, computers, plastics, all manufactured products, food and medicines would not be able to be produced,
2021/08/17 09:07
Chinese Buyers Ramp Up Crude Oil Purchases
Chinese Buyers Ramp Up Crude Oil Purchases
After several months of slowdowns in spot market oil cargo buys, Chinese importers are once again boosting their purchases, Reuters reports, citing traders and analysts.
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
China’s state-owned oil and gas major Sinopec has struck oil and gas at a field in the northwestern province of Xinjiang, Reuters reports, adding that the reserves at the field are estimated at some 100 million tons.
The Future Of Oil Is Offshore
The Future Of Oil Is Offshore
Brazil and its tiny neighbors Guyana and Suriname have recently risen to prominence with major oil discoveries despite what most would see as an unfavorable environment—the energy transition seems to be moving ahead at full speed and oil’s days should be numbered. Only they aren’t. And the future of oil appears to be offshore.
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
Brazil Could Provide A Quarter Of The World’s Offshore Oil In 4 Years
Brazil Could Provide A Quarter Of The World’s Offshore Oil In 4 Years
As Brazil’s oil industry looks set to soar over the next decade, with the potential to provide almost a quarter of the world’s offshore oil by 2025, Big Oil is betting big on the oil-rich state.
China government will allocate 100 billion yuan to support photovoltaic and wind power projects in 2021
China government will allocate 100 billion yuan to support photovoltaic and wind power projects in 2021
"Fourteen five" 500 billion special funds! This year, 100 billion yuan will be allocated to support photovoltaic and wind power projects.
Russia Has Big Plans For Arctic Oil
Russia Has Big Plans For Arctic Oil
Russia seems intent on selling the world’s very last barrel of oil. As other energy superpowers and petro-states around the world scramble to diversify their economies and establish a foothold in the burgeoning green energy transition, Russia has stalwartly refused to ease its reliance on its fossil fuels industry and is vying for the distinction of being the last man standing in an industry whose days are inevitably numbered.
China Continues To Tap Crude Reserves Despite Plunge In Refining Activity
China Continues To Tap Crude Reserves Despite Plunge In Refining Activity
The world’s largest oil importer, China, is estimated to have drawn some crude from its oil reserves in July, although its refining throughput fell to the lowest level in over a year, Reuters columnist Clyde Russell has estimated based on official Chinese data.
Canada Could Boost Oil Pipeline Capacity As Soon As September
Canada Could Boost Oil Pipeline Capacity As Soon As September
Canada’s oil sands producers may find welcome relief to years of pipeline capacity constraints when the first new pipeline in years could enter into service as early as next month.
Why The U.S. Is So Vulnerable To Rising Oil Prices
Why The U.S. Is So Vulnerable To Rising Oil Prices
Oil markets started off the week under pressure as continued speculative “long” liquidation amid delta variant demand concerns weighed on prices. However, in an ironic twist, the oil market got a boost from an unlikely source on Wednesday as the Biden administration announced it was pleading with OPEC+ members to increase oil production to stem inflationary pressures from rising domestic gasoline prices.
What Happens If We Stop Pumping Oil Tomorrow?
What Happens If We Stop Pumping Oil Tomorrow?
What Happens If We Stop Pumping Oil Tomorrow?If there was no oil, iPhones, technology, computers, plastics, all manufactured products, food and medicines would not be able to be produced,

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.