Brazil Soon To Become King Of Offshore Oil
Brazil Soon To Become King Of Offshore Oil
Brazil is on its way toward becoming the biggest supplier of offshore oil globally, contributing some 1.3 million bpd in 2025, World Oil reports, citing a new report by GlobalData.
2021/08/16 14:34
The Oil & Gas Inflation Trap That No One Wants To Talk About
2021/08/13 14:46
Uganda’s Oil Boom Is Only Just Beginning
Uganda’s Oil Boom Is Only Just Beginning
Uganda is set to be a key focus of African Energy Week (AEW) in Cape Town this November, as its flourishing oil industry looks set to boom in the coming years. Uganda’s government has been working hard to encourage more foreign investment recently as the country aims to develop its oil and gas industry significantly over the next decade.
2021/08/13 14:39
OPEC Sees Oil Demand At 100 Million Bpd Next Year Despite COVID Surge
OPEC Sees Oil Demand At 100 Million Bpd Next Year Despite COVID Surge
Global oil demand is expected to average 96.6 million barrels per day (bpd) this year and exceed 100 million bpd in the second half of 2022, OPEC said on Thursday, keeping its estimates from a month ago unchanged despite the COVID resurgence in major economies, including China and the United States.
2021/08/13 14:36
The Dawn Of A New Era In Deepwater Drilling
The Dawn Of A New Era In Deepwater Drilling
A new era in deepwater drilling is about to begin. With the sanctioning of the Anchor project super-major operator, Chevron, NYSE: CVX) signaled that it was ready to risk billions tapping the ultra-high pressure, Lower Wilcox Tertiary play, some 35,000 feet below the mudline.
2021/08/12 14:22
Oil Sands Producers Will Need Federal Support To Go Green
Oil Sands Producers Will Need Federal Support To Go Green
Canada’s oil industry, which operates one of the world’s most emission-intensive ways of pumping crude, has recently pledged to work to make the oil sands net-zero emission by 2050. But the industry says it cannot do it alone as billions of dollars of investments will be needed to decarbonize the oil sands operations. Canada’s federal government has a part to play in supporting net-zero oil sands, and it should pay most of the tab for making the industry ‘greener’, top executives at the major Canadian oil firms say.
2021/08/12 14:06
Oil Prices Rebound From Three-Week Lows
Oil Prices Rebound From Three-Week Lows
After hitting a three-week low on Monday, oil prices rose early on Tuesday as the market hopes that still resilient oil demand in the West would offset weakness in its top consumer and top global crude importer, China.
2021/08/11 14:37
That the oil-producing world is highly reliant on China's appetite is a fact we are reminded of from time to time.
Can Anything Replace China As Demand Driver For Oil?
That the oil-producing world is highly reliant on China's appetite is a fact we are reminded of from time to time. Last year, Chinese buyers dragged oil prices out of the doldrums single-handedly as they stocked up on the cheap commodity to fill reserves. Now, this overreliance is backfiring with prices down and likely to stay down because of China. In all fairness, it is not so much China as it is the resurgence of Covid-19 in China that drove prices sharply down at the start of this week. Benchmarks hit the lowest in three weeks because of the movement restrictions that Chinese authorities imposed in response to the latest wave of infections. These included warnings against travel, flight cancellations, and curbs in public transport and taxis.
2021/08/11 14:31
China Petroleum & Chemical Corporation, or Sinopec, is expected to reduce refinery run rates by up to 10 percent at some of its facilities amid renewed travel restrictions in China to fight a COVID wave
China’s Biggest Refiner To Refine Less Crude This Month
China Petroleum & Chemical Corporation, or Sinopec, is expected to reduce refinery run rates by up to 10 percent at some of its facilities amid renewed travel restrictions in China to fight a COVID wave, a commodity research analyst told Bloomberg in an interview on Tuesday.
2021/08/11 14:23
Aramco Posts Near 300% Increase In Profits On Surging Demand
Aramco Posts Near 300% Increase In Profits On Surging Demand
Saudi Aramco reported a 288-percent increase in net profits for the second quarter of the year, to $25.5 billion, thanks to the rebound in oil prices spurred by growing demand.
2021/08/10 14:18
Update On The World’s Most Exciting Oil Play
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans
2021/08/10 14:09
Update On The World’s Most Exciting Oil Play
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans(1)
Update On The World’s Most Exciting Oil Play
2021/08/10 13:57
Brazil Soon To Become King Of Offshore Oil
Brazil Soon To Become King Of Offshore Oil
Brazil is on its way toward becoming the biggest supplier of offshore oil globally, contributing some 1.3 million bpd in 2025, World Oil reports, citing a new report by GlobalData.
The Oil & Gas Inflation Trap That No One Wants To Talk About
Uganda’s Oil Boom Is Only Just Beginning
Uganda’s Oil Boom Is Only Just Beginning
Uganda is set to be a key focus of African Energy Week (AEW) in Cape Town this November, as its flourishing oil industry looks set to boom in the coming years. Uganda’s government has been working hard to encourage more foreign investment recently as the country aims to develop its oil and gas industry significantly over the next decade.
OPEC Sees Oil Demand At 100 Million Bpd Next Year Despite COVID Surge
OPEC Sees Oil Demand At 100 Million Bpd Next Year Despite COVID Surge
Global oil demand is expected to average 96.6 million barrels per day (bpd) this year and exceed 100 million bpd in the second half of 2022, OPEC said on Thursday, keeping its estimates from a month ago unchanged despite the COVID resurgence in major economies, including China and the United States.
The Dawn Of A New Era In Deepwater Drilling
The Dawn Of A New Era In Deepwater Drilling
A new era in deepwater drilling is about to begin. With the sanctioning of the Anchor project super-major operator, Chevron, NYSE: CVX) signaled that it was ready to risk billions tapping the ultra-high pressure, Lower Wilcox Tertiary play, some 35,000 feet below the mudline.
Oil Sands Producers Will Need Federal Support To Go Green
Oil Sands Producers Will Need Federal Support To Go Green
Canada’s oil industry, which operates one of the world’s most emission-intensive ways of pumping crude, has recently pledged to work to make the oil sands net-zero emission by 2050. But the industry says it cannot do it alone as billions of dollars of investments will be needed to decarbonize the oil sands operations. Canada’s federal government has a part to play in supporting net-zero oil sands, and it should pay most of the tab for making the industry ‘greener’, top executives at the major Canadian oil firms say.
Oil Prices Rebound From Three-Week Lows
Oil Prices Rebound From Three-Week Lows
After hitting a three-week low on Monday, oil prices rose early on Tuesday as the market hopes that still resilient oil demand in the West would offset weakness in its top consumer and top global crude importer, China.
That the oil-producing world is highly reliant on China's appetite is a fact we are reminded of from time to time.
Can Anything Replace China As Demand Driver For Oil?
That the oil-producing world is highly reliant on China's appetite is a fact we are reminded of from time to time. Last year, Chinese buyers dragged oil prices out of the doldrums single-handedly as they stocked up on the cheap commodity to fill reserves. Now, this overreliance is backfiring with prices down and likely to stay down because of China. In all fairness, it is not so much China as it is the resurgence of Covid-19 in China that drove prices sharply down at the start of this week. Benchmarks hit the lowest in three weeks because of the movement restrictions that Chinese authorities imposed in response to the latest wave of infections. These included warnings against travel, flight cancellations, and curbs in public transport and taxis.
China Petroleum & Chemical Corporation, or Sinopec, is expected to reduce refinery run rates by up to 10 percent at some of its facilities amid renewed travel restrictions in China to fight a COVID wave
China’s Biggest Refiner To Refine Less Crude This Month
China Petroleum & Chemical Corporation, or Sinopec, is expected to reduce refinery run rates by up to 10 percent at some of its facilities amid renewed travel restrictions in China to fight a COVID wave, a commodity research analyst told Bloomberg in an interview on Tuesday.
Aramco Posts Near 300% Increase In Profits On Surging Demand
Aramco Posts Near 300% Increase In Profits On Surging Demand
Saudi Aramco reported a 288-percent increase in net profits for the second quarter of the year, to $25.5 billion, thanks to the rebound in oil prices spurred by growing demand.
Update On The World’s Most Exciting Oil Play
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans
Update On The World’s Most Exciting Oil Play
Update On The World’s Most Exciting Oil Play: Interview With Scot Evans(1)
Update On The World’s Most Exciting Oil Play

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.