Exxon Makes Another Major Oil Discovery Offshore Guyana
Exxon Makes Another Major Oil Discovery Offshore Guyana
ExxonMobil and its partner Hess Corporation have made another significant crude oil discovery offshore Guyana, the U.S. supermajor said on Wednesday.
2021/07/29 17:14
Here’s Why Analysts Expect Record-High Earnings For ExxonMobil
Here’s Why Analysts Expect Record-High Earnings For ExxonMobil
Surging prices for plastics are likely to help Exxon's petrochemicals division post record-high earnings this week when the company reports its earnings.
2021/07/29 17:02
The Most Important Oil Project Of The Year Is Set To Go Live
The Most Important Oil Project Of The Year Is Set To Go Live
The Most Important Oil Project Of The Year Is Set To Go Live.Iran’s Jask oil terminal is now fully set to start loading vast quantities of crude to any major buyer in the world via the Gulf of Oman, with the first shipment of 100,000 metric tons of oil set to dock, load, and sail again within days.
2021/07/29 16:16
Oil Prices Boosted By Falling Crude Inventories
Oil Prices Boosted By Falling Crude Inventories
Crude oil prices rose today after the Energy Information Administration reported an inventory draw of 4.1 million barrels for the week to July 23.
2021/07/29 16:11
The Best Risk-Reward Plays In Oil
The Best Risk-Reward Plays In Oil
Oil prices have been ticking upwards after OPEC+ reached an agreement on Sunday that will see the group start adding 400,000 bpd production each month from August. Goldman Sachs says the agreement is modestly bullish and has forecast that Brent will hit $80 per barrel this summer. Piper Sandler says that whereas the backdrop of tighter monetary policy, the trajectory of the economic recovery, and the sustainability of inflation are likely to create some volatility curveballs, they will not be enough to derail the secular bull market.
2021/07/28 18:10
The global refining industry is already facing longer-term challenges with the energy transition.
Refiners Face Huge Long-Term Challenges
The global refining industry has not recovered yet from the impact of the pandemic, but it is already facing longer-term challenges with the energy transition.
2021/07/28 18:05
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela is ignoring U.S. sanctions with its plan to boost production to 1.5 million bpd by the end of the year, around three times the current output.
2021/07/28 17:58
India May Join China In Bid To Lower Oil Prices
India May Join China In Bid To Lower Oil Prices
The world’s third-largest crude oil importer, India, could join China in tapping into its strategic petroleum reserve in a bid to sell lower-priced crude to its refiners amid rallying international oil prices.
2021/07/28 17:51
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya could boost its oil production to 1.6 million barrels per day (bpd) by the middle of 2022 if the industry has the necessary funding, Libya’s Oil Minister Mohamed Oun told Italian news agency Agenzia Nova in an interview published this week.
2021/07/28 17:39
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country's largest after the supermajor leaves the country.
2021/07/28 17:27
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
It is not in Iraq's best interest to adopt renewable energy at the expense of fossil fuels, energy and oil expert Hamza al-Jawaheri told local Shafaq News Agency in an interviewon Monday.
2021/07/28 14:34
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
2021/07/27 19:22
Exxon Makes Another Major Oil Discovery Offshore Guyana
Exxon Makes Another Major Oil Discovery Offshore Guyana
ExxonMobil and its partner Hess Corporation have made another significant crude oil discovery offshore Guyana, the U.S. supermajor said on Wednesday.
Here’s Why Analysts Expect Record-High Earnings For ExxonMobil
Here’s Why Analysts Expect Record-High Earnings For ExxonMobil
Surging prices for plastics are likely to help Exxon's petrochemicals division post record-high earnings this week when the company reports its earnings.
The Most Important Oil Project Of The Year Is Set To Go Live
The Most Important Oil Project Of The Year Is Set To Go Live
The Most Important Oil Project Of The Year Is Set To Go Live.Iran’s Jask oil terminal is now fully set to start loading vast quantities of crude to any major buyer in the world via the Gulf of Oman, with the first shipment of 100,000 metric tons of oil set to dock, load, and sail again within days.
Oil Prices Boosted By Falling Crude Inventories
Oil Prices Boosted By Falling Crude Inventories
Crude oil prices rose today after the Energy Information Administration reported an inventory draw of 4.1 million barrels for the week to July 23.
The Best Risk-Reward Plays In Oil
The Best Risk-Reward Plays In Oil
Oil prices have been ticking upwards after OPEC+ reached an agreement on Sunday that will see the group start adding 400,000 bpd production each month from August. Goldman Sachs says the agreement is modestly bullish and has forecast that Brent will hit $80 per barrel this summer. Piper Sandler says that whereas the backdrop of tighter monetary policy, the trajectory of the economic recovery, and the sustainability of inflation are likely to create some volatility curveballs, they will not be enough to derail the secular bull market.
The global refining industry is already facing longer-term challenges with the energy transition.
Refiners Face Huge Long-Term Challenges
The global refining industry has not recovered yet from the impact of the pandemic, but it is already facing longer-term challenges with the energy transition.
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela Plans To Revive Its Oil Industry Despite U.S. Sanctions
Venezuela is ignoring U.S. sanctions with its plan to boost production to 1.5 million bpd by the end of the year, around three times the current output.
India May Join China In Bid To Lower Oil Prices
India May Join China In Bid To Lower Oil Prices
The world’s third-largest crude oil importer, India, could join China in tapping into its strategic petroleum reserve in a bid to sell lower-priced crude to its refiners amid rallying international oil prices.
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022
Libya could boost its oil production to 1.6 million barrels per day (bpd) by the middle of 2022 if the industry has the necessary funding, Libya’s Oil Minister Mohamed Oun told Italian news agency Agenzia Nova in an interview published this week.
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq Wants Other U.S. Oil Company To Replace Exxon
Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country's largest after the supermajor leaves the country.
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
Iraq Oil Expert: Baghdad Shouldn't Replace Oil With Renewables
It is not in Iraq's best interest to adopt renewable energy at the expense of fossil fuels, energy and oil expert Hamza al-Jawaheri told local Shafaq News Agency in an interviewon Monday.
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back
Argentina’s Oil Industry Is Finally Bouncing Back

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.