Saudi Aramco To Raise Oil Output Capacity by 550,000 Bpd By 2025
Saudi Aramco To Raise Oil Output Capacity by 550,000 Bpd By 2025
Saudi Aramco plans to have 550,000 barrels per day (bpd) more in oil production capacity by 2025 when the expansion projects on two major oilfields are complete, Saudi Arabia’s state-owned oil giant said on Sunday.
2021/08/10 13:52
U.S., Canadian Rig Count Rise
U.S., Canadian Rig Count Rise
U.S., Canadian Rig Count Rise.
2021/08/07 11:10
Exxon’s Falling Production Is Highly Bullish For Oil Prices
Last week, ExxonMobil (NYSE:XOM) reported Q 2 2021 earnings in one of Big Oil's most anticipated scorecards this earnings season. The United States' largest oil and gas company posted stellar earnings that proved that the worst for the U.S. shale industry might finally be in the rearview mirror. Exxon's Q2 earnings swung to a $4.7B profit from a loss of $1.1B in the year-earlier quarter while revenues more than doubled to $67.7B (+107.7% Y/Y), with both metrics exceeding Wall Street's expectations.
2021/08/06 10:23
Why Are Oil Stocks So Undervalued Right Now?
Why Are Oil Stocks So Undervalued Right Now?
It's not just rising U.S. stockpiles that have thrown the markets off-kilter. News that the COVID-19 Delta variant is running riot in China does not augur well for the global markets.
2021/08/06 10:14
Quiet Roads In China Are Concern For Oil Markets
Quiet Roads In China Are Concern For Oil Markets
Traffic congestion in Beijing has declined by 30 percent over the past week, and is falling in other parts of the country as well, as the spread of a new coronavirus variant gains traction, threatening the outlook for oil demand, Bloomberg reports.
2021/08/06 10:09
Has The Oil Market Learned To Live With Covid?
Has The Oil Market Learned To Live With Covid?
As the Delta variant became more prominent in July, initially in India and the U.K. and then gradually across the rest of the globe, many countries were forced back into lockdown or experienced other restrictions to work and movement. This led several experts to speculate that oil and gas demand would inevitably be driven down once again in the face of global restrictions limiting travel and industry. However, as the U.K. reduced all restrictions in mid-July, and several other countries continue to ease lockdowns, this anticipated dip in demand did not hit the industry as hard as expected.
2021/08/06 09:59
The Real Reason Big Oil Is Betting On The Hydrogen Boom
The Real Reason Big Oil Is Betting On The Hydrogen Boom
The Real Reason Big Oil Is Betting On The Hydrogen Boom
2021/08/04 11:36
DUC Well Inventory Plunges As Drillers Frack More Than They Drill
DUC Well Inventory Plunges As Drillers Frack More Than They Drill
US tight oil operators have for several months been depleting their inventory of drilled but uncompleted wells (DUCs) and, amid a slower drilling response, the number of ‘live’ DUCs in the country’s major oil regions slumped to 2,381 wells in June 2021, the lowest level since 2013, a Rystad Energy analysis reveals.
2021/08/04 11:25
Will Biden's Infrastructure Plan Threaten The U.S. Oil Industry?
Will Biden's Infrastructure Plan Threaten The U.S. Oil Industry?
Much was made about the impact of Biden's infrastructure bill on the U.S. oil and gas industry, but details suggest there is nothing to worry about.
2021/08/04 11:22
Nigeria Tries To Revive A Zombie Project
Nigeria Tries To Revive A Zombie Project
Nigeria’s oil industry has been confronted with a plethora of challenges – endless litigation, social unrest, majors regularly mulling a country exit, and all this against the background of a genuine societal demand to make oil revenues more equitable, more accessible and transparent.
2021/08/04 11:19
Merger Mania Paves The Way For A New Era In U.S. Shale
Merger Mania Paves The Way For A New Era In U.S. Shale
Mergers and acquisitions are how an industry normally handles tough times. Asset prices drop, some companies can no longer survive on their own and become targets for those with the means to grow through takeovers.
2021/08/04 11:16
WTI Falls Below $70 On Global Rise In COVID Cases
WTI Falls Below $70 On Global Rise In COVID Cases
WTI Falls Below $70 On Global Rise In COVID Cases
2021/08/04 11:11
Saudi Aramco To Raise Oil Output Capacity by 550,000 Bpd By 2025
Saudi Aramco To Raise Oil Output Capacity by 550,000 Bpd By 2025
Saudi Aramco plans to have 550,000 barrels per day (bpd) more in oil production capacity by 2025 when the expansion projects on two major oilfields are complete, Saudi Arabia’s state-owned oil giant said on Sunday.
U.S., Canadian Rig Count Rise
U.S., Canadian Rig Count Rise
U.S., Canadian Rig Count Rise.
Exxon’s Falling Production Is Highly Bullish For Oil Prices
Last week, ExxonMobil (NYSE:XOM) reported Q 2 2021 earnings in one of Big Oil's most anticipated scorecards this earnings season. The United States' largest oil and gas company posted stellar earnings that proved that the worst for the U.S. shale industry might finally be in the rearview mirror. Exxon's Q2 earnings swung to a $4.7B profit from a loss of $1.1B in the year-earlier quarter while revenues more than doubled to $67.7B (+107.7% Y/Y), with both metrics exceeding Wall Street's expectations.
Why Are Oil Stocks So Undervalued Right Now?
Why Are Oil Stocks So Undervalued Right Now?
It's not just rising U.S. stockpiles that have thrown the markets off-kilter. News that the COVID-19 Delta variant is running riot in China does not augur well for the global markets.
Quiet Roads In China Are Concern For Oil Markets
Quiet Roads In China Are Concern For Oil Markets
Traffic congestion in Beijing has declined by 30 percent over the past week, and is falling in other parts of the country as well, as the spread of a new coronavirus variant gains traction, threatening the outlook for oil demand, Bloomberg reports.
Has The Oil Market Learned To Live With Covid?
Has The Oil Market Learned To Live With Covid?
As the Delta variant became more prominent in July, initially in India and the U.K. and then gradually across the rest of the globe, many countries were forced back into lockdown or experienced other restrictions to work and movement. This led several experts to speculate that oil and gas demand would inevitably be driven down once again in the face of global restrictions limiting travel and industry. However, as the U.K. reduced all restrictions in mid-July, and several other countries continue to ease lockdowns, this anticipated dip in demand did not hit the industry as hard as expected.
The Real Reason Big Oil Is Betting On The Hydrogen Boom
The Real Reason Big Oil Is Betting On The Hydrogen Boom
The Real Reason Big Oil Is Betting On The Hydrogen Boom
DUC Well Inventory Plunges As Drillers Frack More Than They Drill
DUC Well Inventory Plunges As Drillers Frack More Than They Drill
US tight oil operators have for several months been depleting their inventory of drilled but uncompleted wells (DUCs) and, amid a slower drilling response, the number of ‘live’ DUCs in the country’s major oil regions slumped to 2,381 wells in June 2021, the lowest level since 2013, a Rystad Energy analysis reveals.
Will Biden's Infrastructure Plan Threaten The U.S. Oil Industry?
Will Biden's Infrastructure Plan Threaten The U.S. Oil Industry?
Much was made about the impact of Biden's infrastructure bill on the U.S. oil and gas industry, but details suggest there is nothing to worry about.
Nigeria Tries To Revive A Zombie Project
Nigeria Tries To Revive A Zombie Project
Nigeria’s oil industry has been confronted with a plethora of challenges – endless litigation, social unrest, majors regularly mulling a country exit, and all this against the background of a genuine societal demand to make oil revenues more equitable, more accessible and transparent.
Merger Mania Paves The Way For A New Era In U.S. Shale
Merger Mania Paves The Way For A New Era In U.S. Shale
Mergers and acquisitions are how an industry normally handles tough times. Asset prices drop, some companies can no longer survive on their own and become targets for those with the means to grow through takeovers.
WTI Falls Below $70 On Global Rise In COVID Cases
WTI Falls Below $70 On Global Rise In COVID Cases
WTI Falls Below $70 On Global Rise In COVID Cases

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.