Why Bitcoin Miners Are Setting Up Shop In Texas Oilfields
Why Bitcoin Miners Are Setting Up Shop In Texas Oilfields
Politicians, environmentalists, economists, and energy executives are all puzzled over a compounding conundrum: what’s to be done about Bitcoin? Just this week, El Salvador became the first country in the world to validate Bitcoin as a legal tender, to initially disastrous results. The once-fringe cryptocurrency and its acolytes have the potential to massively disrupt commerce as we know it -- and they could very well disrupt the global campaign against catastrophic climate change while they’re at it.
2021/09/11 08:33
OPEC May Cut 2022 Oil Demand Forecast
OPEC May Cut 2022 Oil Demand Forecast
OPEC could revise down its forecasts for global oil demand in 2022, in view of the increased uncertainty with the Delta variant, two OPEC+ sources told Reuters on Friday.
2021/09/11 08:27
Brazil Looks To Become A Top-5 Oil Producer
Brazil Looks To Become A Top-5 Oil Producer
In a little over a decade Latin America’s largest economy Brazil has become a leading global oil producer. At the end of 2020, Brazil was not only pumping the most oil in Latin America, an average of 3.03 million barrels daily, but finished ranked as the world’s seventh largest producer behind OPEC member Iraq and ahead of the United Arab Emirates. According to Brazil’s Mines and Energy Minister Bento Albuquerque, Latin America’s top oil producer will become the world’s fifth-largest petroleum exporter by the end of this decade. Brazil’s government is forecasting that the country will be pumping 5.3 million barrels of oil per day by 2030 facilitating its ability to substantially boost exports. That is compared to an average of 3.05 million barrels of crude oil and condensate production per day for July 2021 and an average of 2.94 million for the first seven months of 2021. This indicates that there is still considerable work to be completed if Brazil is to achieve such an ambitious target.
2021/09/11 08:16
World’s Third-Largest Oil Importer Sees Rebound In Demand
World’s Third-Largest Oil Importer Sees Rebound In Demand
India's crude oil demand has been on the mend since mid-summer. It is likely to continue along this same vein for quite a while, with at least one refiner planning to boost refining capacity considerably.
2021/09/08 13:47
India’s ONGC May Buy Stake In Rosneft’s Massive Arctic Oil Project
India’s ONGC May Buy Stake In Rosneft’s Massive Arctic Oil Project
A consortium of Indian energy companies—including state major ONGC—is in early talks with Rosneft for the acquisition of a stake in the Russian state company’s massive Vostok oil project, the Economic Times reported, citing unnamed sources.
2021/09/06 08:52
3 Distinct Futures For The Oil Industry
3 Distinct Futures For The Oil Industry
3 Distinct Futures For The Oil Industry:Clean energy transition;Independent E&P Investments.
2021/09/01 14:03
OPEC+ Sees Oil Markets Tightening This Fall
Despite the COVID resurgence, the oil market will become increasingly tight this year, OPEC+ estimates show, but as the group continues to ease the production cuts into next year, the balance will tip into surplus again in 2022.
2021/09/01 13:56
Chinese Buyers Ramp Up Crude Oil Purchases
Chinese Buyers Ramp Up Crude Oil Purchases
After several months of slowdowns in spot market oil cargo buys, Chinese importers are once again boosting their purchases, Reuters reports, citing traders and analysts.
2021/09/01 13:49
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
China’s state-owned oil and gas major Sinopec has struck oil and gas at a field in the northwestern province of Xinjiang, Reuters reports, adding that the reserves at the field are estimated at some 100 million tons.
2021/08/28 13:57
The Future Of Oil Is Offshore
The Future Of Oil Is Offshore
Brazil and its tiny neighbors Guyana and Suriname have recently risen to prominence with major oil discoveries despite what most would see as an unfavorable environment—the energy transition seems to be moving ahead at full speed and oil’s days should be numbered. Only they aren’t. And the future of oil appears to be offshore.
2021/08/27 10:03
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
2021/08/26 18:26
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
2021/08/25 11:47
Why Bitcoin Miners Are Setting Up Shop In Texas Oilfields
Why Bitcoin Miners Are Setting Up Shop In Texas Oilfields
Politicians, environmentalists, economists, and energy executives are all puzzled over a compounding conundrum: what’s to be done about Bitcoin? Just this week, El Salvador became the first country in the world to validate Bitcoin as a legal tender, to initially disastrous results. The once-fringe cryptocurrency and its acolytes have the potential to massively disrupt commerce as we know it -- and they could very well disrupt the global campaign against catastrophic climate change while they’re at it.
OPEC May Cut 2022 Oil Demand Forecast
OPEC May Cut 2022 Oil Demand Forecast
OPEC could revise down its forecasts for global oil demand in 2022, in view of the increased uncertainty with the Delta variant, two OPEC+ sources told Reuters on Friday.
Brazil Looks To Become A Top-5 Oil Producer
Brazil Looks To Become A Top-5 Oil Producer
In a little over a decade Latin America’s largest economy Brazil has become a leading global oil producer. At the end of 2020, Brazil was not only pumping the most oil in Latin America, an average of 3.03 million barrels daily, but finished ranked as the world’s seventh largest producer behind OPEC member Iraq and ahead of the United Arab Emirates. According to Brazil’s Mines and Energy Minister Bento Albuquerque, Latin America’s top oil producer will become the world’s fifth-largest petroleum exporter by the end of this decade. Brazil’s government is forecasting that the country will be pumping 5.3 million barrels of oil per day by 2030 facilitating its ability to substantially boost exports. That is compared to an average of 3.05 million barrels of crude oil and condensate production per day for July 2021 and an average of 2.94 million for the first seven months of 2021. This indicates that there is still considerable work to be completed if Brazil is to achieve such an ambitious target.
World’s Third-Largest Oil Importer Sees Rebound In Demand
World’s Third-Largest Oil Importer Sees Rebound In Demand
India's crude oil demand has been on the mend since mid-summer. It is likely to continue along this same vein for quite a while, with at least one refiner planning to boost refining capacity considerably.
India’s ONGC May Buy Stake In Rosneft’s Massive Arctic Oil Project
India’s ONGC May Buy Stake In Rosneft’s Massive Arctic Oil Project
A consortium of Indian energy companies—including state major ONGC—is in early talks with Rosneft for the acquisition of a stake in the Russian state company’s massive Vostok oil project, the Economic Times reported, citing unnamed sources.
3 Distinct Futures For The Oil Industry
3 Distinct Futures For The Oil Industry
3 Distinct Futures For The Oil Industry:Clean energy transition;Independent E&P Investments.
OPEC+ Sees Oil Markets Tightening This Fall
Despite the COVID resurgence, the oil market will become increasingly tight this year, OPEC+ estimates show, but as the group continues to ease the production cuts into next year, the balance will tip into surplus again in 2022.
Chinese Buyers Ramp Up Crude Oil Purchases
Chinese Buyers Ramp Up Crude Oil Purchases
After several months of slowdowns in spot market oil cargo buys, Chinese importers are once again boosting their purchases, Reuters reports, citing traders and analysts.
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
Chinese Oil Major Sinopec Announces Oil, Gas Discovery
China’s state-owned oil and gas major Sinopec has struck oil and gas at a field in the northwestern province of Xinjiang, Reuters reports, adding that the reserves at the field are estimated at some 100 million tons.
The Future Of Oil Is Offshore
The Future Of Oil Is Offshore
Brazil and its tiny neighbors Guyana and Suriname have recently risen to prominence with major oil discoveries despite what most would see as an unfavorable environment—the energy transition seems to be moving ahead at full speed and oil’s days should be numbered. Only they aren’t. And the future of oil appears to be offshore.
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
China And Iran Zero-In On Oman’s Massive New Oil Storage Project
Oman occupies a strategically vital position in the geography of the Middle East, possessing long coastlines along the Gulf of Oman and along the Arabian Sea, away from the extremely politically sensitive Strait of Hormuz.

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.