#NatGas up +30% since it broke the $2 mark

#NatGas up +30% since it broke the $2 mark. Last at $2.638 https://t.co/V8q75XpgAR #MasterEnergy @tradingview pic.twitter.com/d2pC2MNNmq

— MasterEnergy (@MasterEnergyRSS) February 27, 2023

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Another #Chart Ruined 🙄 #NatGas

HT @EdVanDerWalt 

Here’s non log #Crude #Oil #charts $CL #OOTT pic.twitter.com/SmAyPKxocQ

— MasterEnergy (@MasterEnergyRSS) October 6, 2021

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Crude #Oil & #Gasoline Prices for August 09, 2021 #OOTT

Crude and gas prices traded sideways this past week. Will we see more price action this week after #Gold's flash crash?

Crude #Oil Price for August 2, 2021 #MasterEnergy #OOTT

#Crude #Oil &#Gasoline Prices

#Crude #Oil & #Gasoline Prices Continue their Rally Into the Reopening June 03, 2021 #OOTT

Prices Continue their Rally Into the Reopening

Sheik #Yamani, Legendary #Oil Man, dies at 90, RIP

Sheikh Ahmed Zaki Yamani, has died at age 90.

Yamani served as Saudi Arabia's Oil Minister from 1962 until 1986, when he was dismissed by Saudi King Fahd over differing opinions on the Kingdom's oil policies.

When Yamani began his role as oil minister in 1962, the United States was the leading oil producer, with Saudi Arabia producing less than 2 million barrels per day. And Exxon and Chevron had control of most of the oil in Saudi Arabia. But that quickly changed as Saudi Arabia moved to nationalize its oil industry. Saudi Arabia's oil production quickly reached 10 million bpd during Yamani's tenure.

Chart courtesy of Dr. Anas Alhajji

See the whole article on Oilprice.com here:

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabias-Longest-Serving-Oil-Minister-Dies-At-90.html

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The bet is that #electricity will be the prime means of delivering #CleanEnergy in the future and will grow rapidly.” #Europe’s Big #Oil Companies Taking the Lead In Turning Electric

Under pressure from governments and investors, industry leaders like BP and Shell are accelerating their production of cleaner energy.

From the NY Times:

Europe's Big Oil Companies Are Turning Electric

By Stanley Reed

Aug. 17, 2020, 3:00 a.m. ET

The Italian oil company Eni's Green Data Center. The chief executive of Eni said he wanted it to rely more on green energy. Nadia Shira Cohen for The New York Times

This may turn out to be the year that oil giants, especially in Europe, started looking more like electric companies.

Late last month, Royal Dutch Shell won a deal to build a vast wind farm off the coast of the Netherlands. Earlier in the year, France's Total, which owns a battery maker, agreed to make several large investments in solar power in Spain and a wind farm off Scotland. Total also bought an electric and natural gas utility in Spain and is joining Shell and BP in expanding its electric vehicle charging business.

At the same time, the companies are ditching plans to drill more wells as they chop back capital budgets. Shell recently said it would delay new fields in the Gulf of Mexico and in the North Sea, while BP has promised not to hunt for oil in any new countries.

Prodded by governments and investors to address climate change concerns about their products, Europe's oil companies are accelerating their production of cleaner energy — usually electricity, sometimes hydrogen — and promoting natural gas, which they argue can be a cleaner transition fuel from coal and oil to renewables.

US #Sanctions on #Venezuela has left 18MM Barrels Of #Oil Stranded Out At Sea

Estimates based on shipping data, industry sources, and documents of Venezuela's state oil firm PDVSA, show at least 16 tankers with 18 Million Barrels of Oil are idling off the coasts of Africa and Southeast Asia because few potential buyers would risk U.S. sanctions for dealing with the regime of Nicolas Maduro.

See the whole story on ZeroHedge here: https://www.zerohedge.com/energy/18-million-barrels-sanctioned-venezuelan-oil-are-stuck-sea

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#Oil Price Crash Shattered Production Plans For US Shale, But There's Still One Hotspot Where BigOil Still Willing to Spend

Amid Oil Price Crash, Guyana and Suriname spared the ax.

Oil majors may be slashing spending and deferring development plans across the globe, but they remain committed to developing the newest offshore oil finds in the heart of Latin America.  

This from OilPrice.com: 

Long-Term Potential in Offshore Oil Projects 

These operators continue to view the oil discoveries offshore Guyana and Suriname as high-quality resources that deserve the full attention and financing even as oil prices are sitting below $30 a barrel. Abundant quality offshore resources could pump oil for decades, compared to a year or two of the wells in the U.S. shale patch, which are much cheaper and faster to design, drill, and develop, but which deplete much quicker than large offshore reservoirs.
For this reason, it shouldn't come as a surprise that Exxon said at the earnings call last week that it would be cutting production in the Permian, yet going full-steam ahead with the developments in Guyana.

ExxonMobil excludes offshore Guyana projects from capex cuts

Exxon Doubles Down on Guyana's Huge Oil Discoveries

"Guyana remains an integral part of our long-term growth plans and as such is a high priority," Exxon's chairman and chief executive officer Darren Woods said on the call. 


Operations at Liza Phase 1 have been largely unaffected by the COVID-19 pandemic, Exxon said. Thanks to the Liza Phase 1 development, Guyana officially joined the ranks of oil-producing nations at the end of December. Exxon and its partner, Hess Corporation, now believe that the recoverable resource base from 16 oil discoveries offshore Guyana is more than 8 billion oil-equivalent barrels.

The Reform of #Venezuela's #Oil Sector will depend on a long process of substantial redesign of the state’s legal and institutional framework.

Carlos Bellorin ( @CarBellorin), Venezuela's "reforms require a broad redesign of the state's legal and institutional framework."

"In Venezuela, the idea of what society and state should be...has been built with tales of hand-picked historical facts which have been manipulated by short-term populist policies and it's at the center of a social imaginarium...cast into unmovable beliefs that see us a rich country, blessed with natural resources, and as a país potencia."

It's really hard to question these assumptions due to the fact that society has absorbed them and made them part of its identity. Whoever tries to do so, may lose political capital, which would make their government unviable. That's why leaders opt to take the easier road: feed the myths with populist measures that strengthen their charisma and get them more support.

But in Venezuela, that has only been possible during sustained periods of high oil prices. Because these old beliefs assume that oil revenues are infinite and inexhaustible when they only conceal the most basic feature of oil markets: volatility, that every boom will end in a bust and that every bust will end in a boom. Continuously, cyclically, forever.

The unfortunate coincidence of many factors took us to the unimaginable and cruel situation that Venezuelans are going through today. In order to survive it, society will have to abandon long-standing dogmas.

 

Read the whole piece on Caracas Chronicles here: Without Fear, Beyond Reproach: the Reform of the Hydrocarbons Sector | Caracas Chronicles

https://www.caracaschronicles.com/2020/05/05/without-fear-beyond-reproach-the-reform-of-the-hydrocarbons-sector/

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#WTI Getting Slammed to $13/bbl, down 25% on the Day!!

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#OPEC+ #Oil Cuts Deal: @BMO Sees Best outcome of Prices Stabilizing between $20-30 as demand rebuilds

From BMO:

 CONCLUSION:. On the positive side, the agreement avoids a price collapse as it reduces the risk of filling up the global storage capacity completely and most importantly it ends the price war between Russia and Saudi Arabia.  Our research team expects the price of oil to remain between $20 and $30 through June while the market assesses the compliance and more importantly the potential rebound in demand at some point. As of this morning, the market reaction has been somewhat muted with Brent and WTI relatively unchanged.

1- TOTAL CUTS OF 13.4Mb/d if you had OPEC at 6.1M b/d, OPEC+ members mostly Russia at 3.6Mb/d and G-20 cuts monastery US/Canada/Brazil at 3.7Mb/d. The cuts are focused on the May-June period then they go down to 8M b/d for July-dec.

2- AVOID PRICE COLLAPSE DUE TO LACK OF STORAGE- Demand destruction is estimated at 17Mb/d for 2Q ( compared to a 13.4M b/d cut but an actual cut from the March level of ONLY 7Mb/d for OPEC+ members). So this means inventories will go up by about 984M barrels versus a total storage capacity including floating storage left of 1.2 billion barrels.

3- END OF THE PRICE WAR- probably the most positive is all this is the end of the price war between Russia and Saudi Arabia

4- CUTS BY THE G-20? US/Canada/Brazil but allows Norway are talking about cutting 3.7M b/d of supply but it is not very clear how. It will  be mostly through Strategic Petroleum Reserves ( SPR) purchases, shut-ins and natural declines.

5- THE TEXAS RAILROAD COMMISSION ( RRC) meets tomorrow Tuesday to discuss production cuts. Based on recent discussions we are doubtful a serious official cut will come out of the US as most of the large producers like Exxon and Chevron have come against it.

6- IDEAL PRICE- we continue to think that $40 WTI is where the Saudis and the Russians want to oil price which is enough to kill US Shale's economics while helping the local budgets of each closer to balance.



Oil & Gas IN Fact Living on the Edge: Historic Deal With a Lot of Unknowns Randy Ollenberger • Oil & Gas (403) 515-1502 Phillip Jungwirth, CFA • Oil & Gas (303) 436-1127 Bottom Line: OPEC+ has reached an agreement to reduce production by 9.7 million b/d in May and June and roughly six million over the balance of the year. The G20 group acknowledged the need to stabilize oil markets and has reportedly agreed to reduce production by 3.7 million b/d. The OPEC+ cut (if adhered to) plus expected shut-in production due to low oil prices could be just enough to keep inventories from breaching capacity. We expect crude oil prices to trade in a $20-30/bbl range through May as the market waits to see if the production cuts materialize and are large enough to stave off disaster. Key Points OPEC+ capitulates. OPEC and its non-OPEC partners have agreed to reduce production by 9.7 million b/d in May and June and by roughly six million b/d for the remainder of the year. The baseline for the determination of production levels is October 2018 except for Saudi Arabia and Russia, which have baselines of 11 million b/d. The group will meet again on June 10 to determine if additional action is required. No commitments but uneconomic shut-ins elsewhere. The broader G20 group did not explicitly commit to any reductions in supply but acknowledged the need to stabilize oil markets and has reportedly agreed to reduce supply by 3.7 million b/d through declines and shut-in of uneconomic production. The OPEC+ cuts are not contingent on commitments from the U.S. and others to reduce supply. We anticipate a drop in non-OPEC production of 1.8 million b/d in the second quarter and growing over the balance of the year due to the drop in activity levels. Level of demand destruction unknown. We believe that global oil demand could be down more than 17 million b/d year over year in the second quarter to roughly 82 million b/d, which would represent the lowest level of demand since 2004. Taking the OPEC+ cuts into consideration we anticipate a year-over-year decline in production of 7 million to 92.8 million b/d, which implies a build of approximately 984 million barrels. We estimate remaining available global storage capacity (including floating storage) is roughly 1.2 billion barrels. While this means there could be adequate storage room there is not much room for error. Pricing in uncertainty. We expect crude oil prices to remain relatively weak through April and May as the market assesses the risk that the level of demand destruction could be higher than expected, leading to the possibility that there is not enough storage available. We also expect regional dislocations where storage fills up leading to wider price differentials in some markets. View Comment >

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#Oil: Energy companies feel the pain of #Saudi Arabia’s price war

Energy companies feel the pain of Saudi Arabia's price war
'This is the financial crisis for oil — except the producers are not too big to fail'

From the shale fields of Texas to deepwater projects in the North Sea, the price war launched by Russia and Saudi Arabia sent shockwaves across the entire energy industry and triggered the biggest sell-off since the global financial crisis.  

It has left some companies searching for strategies to protect profits and keep paying dividends. Others are fighting for survival. 

"The price collapse could be the trigger for a new phase of deep industry restructuring — one that rivals the changes seen in the late-1990s," said Tom Ellacott of the consultancy Wood Mackenzie. "Sustained prices below $40 a barrel would trigger a new wave of brutal cost-cutting. More highly-leveraged players will be forced to make the deepest cuts to stave off bankruptcy." 

Nowhere is that more true than in the shale industry, which helped end US dependence on Middle Eastern oil.

See the whole article on the FT here: https://www.ft.com/content/50c289dc-621f-11ea-b3f3-fe4680ea68b5

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#Oil Market Update March 9 2PM EDT #OOTT

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@ExxonMobil, the blue chip #Oil Co., Down ~15% pre-open $XOM #OOTT

XOM $40.88 (-14.28%) on Yahoo Finance
https://finance.yahoo.com/quote/XOM?p=XOM

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Is 2020 the year for regime change in #Venezuela? | Financial Times

With today's drop in #Oil, it may happen sooner than we thought... 

"the greatest force for change in Venezuela will be the oil price. With a global surplus of supply, and more Opec cuts in the offing, Venezuelan oil is no longer needed in the market. Without substantial export earnings, the government in Caracas is unlikely to be able to provide the investment needed to maintain current production, let alone meet Mr Maduro's target. Even the most authoritarian regimes cannot survive without revenue."

https://www.ft.com/content/860f8876-5e12-11ea-b0ab-339c2307bcd4

US crude #Oil exports increased 45% to ~3MM b/d in 2019 @EIA_gov #OOTT #TWIP

U.S. crude oil exports averaged 2.98 million barrels per day (b/d) in 2019, an increase of 930,000 b/d (45%) from 2018 (Figure 1). 

The number of destinations for U.S. crude oil exports increased from 41 to 44, and Canada continued to receive the largest share (15%, or 459,000 b/d), followed by South Korea (14%, or 426,000 b/d). U.S. crude oil exports to China, the third-largest export destination in 2018, fell by nearly 100,000 b/d to average 133,000 b/d in 2019. Decreased U.S. crude oil exports to China were more than offset by increases to other destinations, resulting in shifting trade patterns. The growth in U.S. crude oil exports was driven by increasing U.S. crude oil production, expanding domestic infrastructure, and increased global demand for light, low-sulfur crude oils.

#OPEC Ministers agree to cut #Oil production by 1.5MM bopd

Closed session talks continue but headlines leaking out of Vienna from 'delegates' per Bloomberg,confirming the high end scenario floated yesterday morning. Sounds like OPEC (ie Saudi) is going it alone without additional support from Russia after Novak refused to support additional cuts at the JMMC meeting yesterday.

Brent up 70c on the news and +60bps on the day, not exactly a screaming response but step in the right direction. Still waiting on additional details around duration (assume 3M to start) and how many physical barrels 1.5MM translates to given SA already under producing by 0.4MM but combined with 1MM outage from Libya a 1.5MM incremental cut should help to offset a large amount of the China/OECD demand losses, which some estimate to be over 3-3.5MM in 1Q20.

@Vitol sees US #oil output peaking at 14MM bpd in next few years #Shale #OOTT

Vitol sees U.S. oil output peaking at 14 million bpd in next few years: CEO

Thursday, 27 February 2020 | 20:00

Trading house Vitol sees U.S. oil production peaking at around 14 million barrels per day in the next few years, its chief executive told the IP Week. 

"Shale is a very different industry. It takes a great deal to maintain pressure. It takes some 20,000 new wells every year to stand still at current production levels so we have oil production peaking in the new few years because it takes so much operationally just to maintain levels," Vitol CEO Russell Hardy said.

"So that shifts a little of power back to OPEC and OPEC+ but I don't think anyone can afford to be complacent about that."
Source: Reuters (Reporting by Julia Payne; editing by Jason Neely)

http://www.bunkerportsnews.com/News.aspx?ElementID=7721cc06-24bb-4355-8375-fee1ab4bcf7a

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