Oil Continues To Slide As OPEC Stays Silent
Oil Continues To Slide As OPEC Stays Silent
Oil prices fell for a third day in a row early on Thursday as uncertainty coming from the OPEC+ deadlock and fears of COVID variants spreading fast weighed on the market.
2021/07/09 12:33
Poor Hedging Could Cost U.S. Shale $20 Billion
Poor Hedging Could Cost U.S. Shale $20 Billion
U.S. shale oil producers have suffered billions in losses from hedging their output at lower than current prices, the Financial Times reported today, citing data from IHS Markit.
2021/07/09 12:31
U.S. Shale On Track For One Of Its Best Years Ever
U.S. Shale On Track For One Of Its Best Years Ever
After seven consecutive weeks of gains, oil prices have gone into reverse gear once again, thanks mainly to the latest OPEC+ spat that left everyone wondering what to expect next. Major cracks appeared in the ministerial meeting with the United Arab Emirates continuing to block an agreement because it wants to increase its oil production b​efore demand falls as per WSJ. The market fears that the UAE might "want out of OPEC so it can pump 4M bbl/day and make hay while the sun shines," Phil Flynn, market analyst at Price Futures Group, has told MarketWatch.
2021/07/09 12:27
Oil Prices Rise As EIA Data Beats Expectations
Oil Prices Rise As EIA Data Beats Expectations
Crude oil prices rose higher today after the Energy Information Administration reported an inventory draw of 6.9 million barrels for the week to July 2.
2021/07/09 12:25
Oil Price Plunge Continues Amid OPEC+ Deadlock
Oil Price Plunge Continues Amid OPEC+ Deadlock
Oil prices continued falling early on Wednesday, following the sharp losses incurred the previous day after the market started to assess what the OPEC+ deadlock would mean for immediate oil supply, supply-demand balances, and the future of the alliance.
2021/07/08 09:47
The Oil Stocks Wall Street Recommends
The Oil Stocks Wall Street Recommends
As oil prices have rallied more than 40 percent this year, analysts and institutional investors have grown increasingly bullish on oil stocks, which, many believe, are still undervalued and primed for further upside.
2021/07/08 09:01
Biden Urges OPEC+ To Raise Output Amid Soaring Crude Prices
Biden Urges OPEC+ To Raise Output Amid Soaring Crude Prices
Saudi Aramco has raised the August official selling prices of crude to Asia, as the oil market tightens, sparking fears of another oil price war and prompting the Biden administration to call on OPEC to settle its internal differences and start bringing more oil to markets, Bloomberg has reported, citing administration insiders.
2021/07/07 09:23
US Oil Prices Soar To 6-Year High In OPEC Standoff
US Oil Prices Soar To 6-Year High In OPEC Standoff
The U.S. benchmark oil price WTI Crude hit its highest level since November 2014 early on Tuesday, after OPEC+ on Monday called off its third attempt to reach an agreement over oil policy management for the coming months.
2021/07/07 09:12
OPEC Stalemate Could Spark A New Oil Price War
OPEC Stalemate Could Spark A New Oil Price War
Nearly a week of formal and side talks and behind-the-scenes negotiations failed to resolve a dispute over baseline production levels at OPEC+. The discord threw the group in its most serious crisis since March 2020, when the alliance’s leaders Saudi Arabia and Russia disagreed on oil supply management with global demand crumbling in the pandemic.
Now the dispute is between two Arab Gulf allies in OPEC—the United Arab Emirates and Saudi Arabia—in what analysts see as the UAE looking to step out of the Saudi shadow in global political affairs.
2021/07/07 09:00
Argentina is working to boost its oil production as well as investing in shale as the Latin American oil and gas giant continues to focus on traditional energy.
Is There Still Hope For Argentina’s Struggling Shale Patch?
Argentina is working to boost its oil production as well as investing in shale as the Latin American oil and gas giant continues to focus on traditional energy.
2021/07/07 08:51
Oil Flat As UAE Wildcard Puts OPEC Plans At Risk
Oil Flat As UAE Wildcard Puts OPEC Plans At Risk
OPEC+ is set to resume talks today following a day of digging in by the UAE, which opposes as “unfair” the latest production control proposal to extend the cuts until the end of 2022 without baseline adjustments, and a Saudi challenge on Monday morning.
2021/07/06 12:04
Oil Steady As OPEC+ Battles To Break Deadlock
Oil Steady As OPEC+ Battles To Break Deadlock
Oil prices were little changed and trading only slightly down early on Monday while the market is waiting for the OPEC+ group to begin a third day of meetings to try to reach a consensus about oil production levels in the coming months.
2021/07/06 11:58
Oil Continues To Slide As OPEC Stays Silent
Oil Continues To Slide As OPEC Stays Silent
Oil prices fell for a third day in a row early on Thursday as uncertainty coming from the OPEC+ deadlock and fears of COVID variants spreading fast weighed on the market.
Poor Hedging Could Cost U.S. Shale $20 Billion
Poor Hedging Could Cost U.S. Shale $20 Billion
U.S. shale oil producers have suffered billions in losses from hedging their output at lower than current prices, the Financial Times reported today, citing data from IHS Markit.
U.S. Shale On Track For One Of Its Best Years Ever
U.S. Shale On Track For One Of Its Best Years Ever
After seven consecutive weeks of gains, oil prices have gone into reverse gear once again, thanks mainly to the latest OPEC+ spat that left everyone wondering what to expect next. Major cracks appeared in the ministerial meeting with the United Arab Emirates continuing to block an agreement because it wants to increase its oil production b​efore demand falls as per WSJ. The market fears that the UAE might "want out of OPEC so it can pump 4M bbl/day and make hay while the sun shines," Phil Flynn, market analyst at Price Futures Group, has told MarketWatch.
Oil Prices Rise As EIA Data Beats Expectations
Oil Prices Rise As EIA Data Beats Expectations
Crude oil prices rose higher today after the Energy Information Administration reported an inventory draw of 6.9 million barrels for the week to July 2.
Oil Price Plunge Continues Amid OPEC+ Deadlock
Oil Price Plunge Continues Amid OPEC+ Deadlock
Oil prices continued falling early on Wednesday, following the sharp losses incurred the previous day after the market started to assess what the OPEC+ deadlock would mean for immediate oil supply, supply-demand balances, and the future of the alliance.
The Oil Stocks Wall Street Recommends
The Oil Stocks Wall Street Recommends
As oil prices have rallied more than 40 percent this year, analysts and institutional investors have grown increasingly bullish on oil stocks, which, many believe, are still undervalued and primed for further upside.
Biden Urges OPEC+ To Raise Output Amid Soaring Crude Prices
Biden Urges OPEC+ To Raise Output Amid Soaring Crude Prices
Saudi Aramco has raised the August official selling prices of crude to Asia, as the oil market tightens, sparking fears of another oil price war and prompting the Biden administration to call on OPEC to settle its internal differences and start bringing more oil to markets, Bloomberg has reported, citing administration insiders.
US Oil Prices Soar To 6-Year High In OPEC Standoff
US Oil Prices Soar To 6-Year High In OPEC Standoff
The U.S. benchmark oil price WTI Crude hit its highest level since November 2014 early on Tuesday, after OPEC+ on Monday called off its third attempt to reach an agreement over oil policy management for the coming months.
OPEC Stalemate Could Spark A New Oil Price War
OPEC Stalemate Could Spark A New Oil Price War
Nearly a week of formal and side talks and behind-the-scenes negotiations failed to resolve a dispute over baseline production levels at OPEC+. The discord threw the group in its most serious crisis since March 2020, when the alliance’s leaders Saudi Arabia and Russia disagreed on oil supply management with global demand crumbling in the pandemic.
Now the dispute is between two Arab Gulf allies in OPEC—the United Arab Emirates and Saudi Arabia—in what analysts see as the UAE looking to step out of the Saudi shadow in global political affairs.
Argentina is working to boost its oil production as well as investing in shale as the Latin American oil and gas giant continues to focus on traditional energy.
Is There Still Hope For Argentina’s Struggling Shale Patch?
Argentina is working to boost its oil production as well as investing in shale as the Latin American oil and gas giant continues to focus on traditional energy.
Oil Flat As UAE Wildcard Puts OPEC Plans At Risk
Oil Flat As UAE Wildcard Puts OPEC Plans At Risk
OPEC+ is set to resume talks today following a day of digging in by the UAE, which opposes as “unfair” the latest production control proposal to extend the cuts until the end of 2022 without baseline adjustments, and a Saudi challenge on Monday morning.
Oil Steady As OPEC+ Battles To Break Deadlock
Oil Steady As OPEC+ Battles To Break Deadlock
Oil prices were little changed and trading only slightly down early on Monday while the market is waiting for the OPEC+ group to begin a third day of meetings to try to reach a consensus about oil production levels in the coming months.

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.