@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)

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#PDVSA prepares fuel rationing program as US #sanctions hamper imports

PDVSA prepares fuel rationing program as US sanctions hamper imports: sources

Caracas, Venezuela — Venezuela's PDVSA is preparing a fuel rationing plan for domestic consumers as the state-owned company confronts a shortfall of refined products and the consequences of US sanctions on production and trading activities, according to sources.

Staring at a 58% shortfall in gasoline and a 71% shortfall in diesel and as US sanctions bite increasingly harder, PDVSA is preparing a rationing plan that could take effect in the next few weeks, according to sources and local media reports.

"The supply of strategic fuels to the national market is the priority at the moment," according to a PDVSA official who spoke with S&P Global Platts on the condition of anonymity.

"In February and March, we expect local demand for 95 and 91 octane gasoline will be 217,000 b/d and diesel consumption to average 110,000 b/d," the official said.

Preliminary PDVSA figures reviewed by Platts indicate average gasoline production for the whole of 2019 was 72,000 b/d, while consumption averaged 142,000 b/d. Imports averaging 70,000 b/d made up the difference.

#PDVSA having hard time finding buyers for 80% of February crude #Oil production

"For February, there is 661,000 b/d of crude that has no takers. Also, PVDSA is offering to pay debts with crude to creditors but there are no interested parties," the official added.

PDVSA has offered deep price discounts for its crude, and flexible loading windows of more than 30 days  ...

The volume available for sale represents 80% of the 850,000 b/d total crude production estimated by PDVSA for February  

Highlights

Caracas, Venezuela — Venezuela's state owned PDVSA has 677,000 b/d of crude available to sell for February, but no buyers because of US sanctions, according to a company official.

"The climbing of US sanctions against the Nicolas Maduro government alienated the few clients that were still daring to enter Venezuelan ports," said a PDVSA official, who spoke on condition of anonymity.

"For February, there is 661,000 b/d of crude that has no takers. Also, PVDSA is offering to pay debts with crude to creditors but there are no interested parties," the official added.