A Scorching Hot Middle East Summer Could Send Oil Prices Soaring
A Scorching Hot Middle East Summer Could Send Oil Prices Soaring
Economies reopening after lockdowns and a consequent surge in travel have pushed crude oil prices to levels last seen years ago. Now, something else can push them even higher: the weather.
2021/06/11 09:37
Oil Prices Fall Following Large Fuel Inventory Build
Oil Prices Fall Following Large Fuel Inventory Build
Crude oil prices fell slightly today after the Energy Information Administration reported an inventory decline of 5.2 million barrels for the week to June 4.
2021/06/10 14:36
Libya’s Oil Production Drops By 200,000 Bpd
Libya’s Oil Production Drops By 200,000 Bpd
Libya’s crude oil production has declined by more than 200,000 barrels per day (bpd) in recent days, or by almost 20 percent, on the back of pipeline leaks and maintenance at the biggest oilfield, Bloomberg reported on Wednesday, quoting sources familiar with the situation.
2021/06/10 14:27
Canada’s Oil Industry Optimistic As Prices Rebound
Canada’s Oil Industry Optimistic As Prices Rebound
Canada’s oil and gas sector is growing increasingly optimistic about its near-term future as economies recover and oil prices rally. Yet, the industry faces growing challenges in the medium and long term, mainly in the form of the neverending battle over pipeline takeaway capacity and the environmental and activist shareholder urgency to hold the oil industry accountable for climate change. With the U.S. benchmark WTI price rallying this year, Canada’s largest oil companies expect stronger cash flow generation, which would go toward reducing debts and boosting shareholder returns. A year after the pandemic forced operators to curtail oil production, output in the main oil-producing province of Alberta has recovered to pre-crisis levels.
2021/06/10 11:37
Is This The Beginning Of The End For Oil Super Majors?
Is This The Beginning Of The End For Oil Super Majors?
Energy-oriented investors could not fail to have taken note of the decision that came down in the Dutch court against Shell, (NYSE:RDS.A), (NYSE:RDS.B), last week. This decision was the first time an energy giant had been held liable for emissions not directly tied to its internal activities. Basically it requires Shell to accelerate its planned carbon intensity reductions by 45% to include "Scope-3 emissions" by 2030. Some twenty years sooner than the time frame to which it has already committed publicly.
2021/06/09 17:52
The Age Of Oil Isn’t Over
The Age Of Oil Isn’t Over
Growing demand in Asia means that the age of oil isn’t over yet, although consumption in developed western economies has trended lower over the past decade, according to Karin Kneissl, a newly appointed director on the board of Russia’s oil giant Rosneft.
2021/06/08 17:09
China’s Efforts To Curb Oil Prices Are Futile
China’s Efforts To Curb Oil Prices Are Futile
Crude oil imports into China dropped by almost 15 percent annually last month. While substantial, the drop is no reason for worry because it was caused by refinery maintenance season. What could be a reason for worry are rising benchmark prices.
2021/06/08 17:01
WTI Price Breaks $70 For First Time Since 2018
WTI Price Breaks $70 For First Time Since 2018
West Texas Intermediate hit the highest since 2018 at the end of last week amid an increasingly favorable demand outlook.
2021/06/08 16:58
Blackrock: Investors Cannot ‘’Run Away’’ From Oil Industry
Blackrock: Investors Cannot ‘’Run Away’’ From Oil Industry
BlackRock, the world’s largest asset manager, will continue to work with oil and gas firms in order to help them through the energy transition, Reuters quoted chief executive Larry Fink as saying on Thursday.
2021/06/04 17:13
Climate Activism Is Great News For Saudi Arabia And Russia
Climate Activism Is Great News For Saudi Arabia And Russia
Big Oil has lately come under a plethora of attacks from all directions, ranging from uncooperative financiers and investors amidst a global shift to renewable energy to hostile governments and hardline climate activists. But not all oil and gas players will be on the losing end of those attacks.
2021/06/04 16:30
Oil Rises On OPEC Optimism
Oil Rises On OPEC Optimism
Crude oil prices strengthened further this week after OPEC+ signaled its growing optimism about the balance between demand and supply, and confirmed that it planned to continue increasing production.
2021/06/03 18:11
IEA Backpedals, Says Oil Demand Will Soon Reach Pre-Crisis Levels
IEA Backpedals, Says Oil Demand Will Soon Reach Pre-Crisis Levels
Oil demand is recovering faster than previously expected, and unless OPEC+ puts additional barrels on the market on top of the plans to restore 2 million barrels per day (bpd) by July, oil prices will be heading higher as the gap will widen, the Executive Director of the International Energy Agency, Fatih Birol, told Bloomberg Television in an interview on Tuesday.
2021/06/02 13:59
A Scorching Hot Middle East Summer Could Send Oil Prices Soaring
A Scorching Hot Middle East Summer Could Send Oil Prices Soaring
Economies reopening after lockdowns and a consequent surge in travel have pushed crude oil prices to levels last seen years ago. Now, something else can push them even higher: the weather.
Oil Prices Fall Following Large Fuel Inventory Build
Oil Prices Fall Following Large Fuel Inventory Build
Crude oil prices fell slightly today after the Energy Information Administration reported an inventory decline of 5.2 million barrels for the week to June 4.
Libya’s Oil Production Drops By 200,000 Bpd
Libya’s Oil Production Drops By 200,000 Bpd
Libya’s crude oil production has declined by more than 200,000 barrels per day (bpd) in recent days, or by almost 20 percent, on the back of pipeline leaks and maintenance at the biggest oilfield, Bloomberg reported on Wednesday, quoting sources familiar with the situation.
Canada’s Oil Industry Optimistic As Prices Rebound
Canada’s Oil Industry Optimistic As Prices Rebound
Canada’s oil and gas sector is growing increasingly optimistic about its near-term future as economies recover and oil prices rally. Yet, the industry faces growing challenges in the medium and long term, mainly in the form of the neverending battle over pipeline takeaway capacity and the environmental and activist shareholder urgency to hold the oil industry accountable for climate change. With the U.S. benchmark WTI price rallying this year, Canada’s largest oil companies expect stronger cash flow generation, which would go toward reducing debts and boosting shareholder returns. A year after the pandemic forced operators to curtail oil production, output in the main oil-producing province of Alberta has recovered to pre-crisis levels.
Is This The Beginning Of The End For Oil Super Majors?
Is This The Beginning Of The End For Oil Super Majors?
Energy-oriented investors could not fail to have taken note of the decision that came down in the Dutch court against Shell, (NYSE:RDS.A), (NYSE:RDS.B), last week. This decision was the first time an energy giant had been held liable for emissions not directly tied to its internal activities. Basically it requires Shell to accelerate its planned carbon intensity reductions by 45% to include "Scope-3 emissions" by 2030. Some twenty years sooner than the time frame to which it has already committed publicly.
The Age Of Oil Isn’t Over
The Age Of Oil Isn’t Over
Growing demand in Asia means that the age of oil isn’t over yet, although consumption in developed western economies has trended lower over the past decade, according to Karin Kneissl, a newly appointed director on the board of Russia’s oil giant Rosneft.
China’s Efforts To Curb Oil Prices Are Futile
China’s Efforts To Curb Oil Prices Are Futile
Crude oil imports into China dropped by almost 15 percent annually last month. While substantial, the drop is no reason for worry because it was caused by refinery maintenance season. What could be a reason for worry are rising benchmark prices.
WTI Price Breaks $70 For First Time Since 2018
WTI Price Breaks $70 For First Time Since 2018
West Texas Intermediate hit the highest since 2018 at the end of last week amid an increasingly favorable demand outlook.
Blackrock: Investors Cannot ‘’Run Away’’ From Oil Industry
Blackrock: Investors Cannot ‘’Run Away’’ From Oil Industry
BlackRock, the world’s largest asset manager, will continue to work with oil and gas firms in order to help them through the energy transition, Reuters quoted chief executive Larry Fink as saying on Thursday.
Climate Activism Is Great News For Saudi Arabia And Russia
Climate Activism Is Great News For Saudi Arabia And Russia
Big Oil has lately come under a plethora of attacks from all directions, ranging from uncooperative financiers and investors amidst a global shift to renewable energy to hostile governments and hardline climate activists. But not all oil and gas players will be on the losing end of those attacks.
Oil Rises On OPEC Optimism
Oil Rises On OPEC Optimism
Crude oil prices strengthened further this week after OPEC+ signaled its growing optimism about the balance between demand and supply, and confirmed that it planned to continue increasing production.
IEA Backpedals, Says Oil Demand Will Soon Reach Pre-Crisis Levels
IEA Backpedals, Says Oil Demand Will Soon Reach Pre-Crisis Levels
Oil demand is recovering faster than previously expected, and unless OPEC+ puts additional barrels on the market on top of the plans to restore 2 million barrels per day (bpd) by July, oil prices will be heading higher as the gap will widen, the Executive Director of the International Energy Agency, Fatih Birol, told Bloomberg Television in an interview on Tuesday.

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.