Rapid Energy Transition Could Doom Oil Exporting Countries
Rapid Energy Transition Could Doom Oil Exporting Countries
It’s a tough time being in the oil and gas business. 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.
2021/06/02 11:55
Iran Claims Its Oil Production Could Jump To 6.5 Million Bpd
Iran Claims Its Oil Production Could Jump To 6.5 Million Bpd
Iran can boost its crude oil production to as much as 6.5 million barrels per day (bpd) when the U.S. sanctions on its oil industry are lifted, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Monday.
2021/06/01 08:49
The Oil ETFs To Watch If The Iran Deal Crumbles
The Oil ETFs To Watch If The Iran Deal Crumbles
Back in April, we discussed the possibility of president Biden's administration reviving the 2015 nuclear deal with Iran and consequently lifting the country's oil sanctions. We surmised that whereas Iran rejoining the ranks of major oil exporters as early as 2021 after a three-year layoff was likely to cause quite a bit of trepidation in the jittery markets, such a move would not necessarily upset the delicate supply balance that OPEC+ has been trying to achieve.
2021/06/01 08:41
OPEC Could Win Big As Supermajors Fend Off Environmentalists
OPEC Could Win Big As Supermajors Fend Off Environmentalists
Environmentalists and shareholders concerned about the risks of investing in oil in the energy transition were not the only winners of last week’s historic rebukeof Big Oil by investors and society.
2021/06/01 08:35
BlackRock: BP should pass shareholder resolutions as soon as possible to reduce carbon emissions
BlackRock: BP should pass shareholder resolutions as soon as possible to reduce carbon emissions
BlackRock does not approve of the requirements of the BP board of directors and hopes that the company can adopt shareholder resolutions on environmental protection in a deeper and faster manner.
2021/05/29 13:46
Africa’s Oil Nations Will Be Doomed If Exploration Is Halted
Africa’s Oil Nations Will Be Doomed If Exploration Is Halted
The IEA’s shocking call for no new oil and gas exploration on the path to net-zero emissions doesn’t necessarily follow that demand through to its logical end game. A line-up of countries would descend into chaos, creating global instability that would itself threaten the climate by hindering a natural energy transition.
2021/05/28 08:52
Iranian Pipeline To Make First Shipment In June
Sanctions-busting Iranian Pipeline To Make First Shipment In June
Iran’s Goreh-Jask oil pipeline is due to ship its first crude oil in June, with all construction having finished last week. This pipeline will enable Iran to transport huge quantities of oil from its major oil fields via Goreh in the Shoaybiyeh-ye Gharbi Rural District of Khuzestan Province 1100 kilometres to the port of Jask in Hormozgan province on the Gulf of Oman.
2021/05/27 10:53
A Rare Moment Of Stability For Oil Prices
A Rare Moment Of Stability For Oil Prices
Oil prices have generally been trending higher over the past few months as the demand outlook for the commodity improved amid mass vaccination efforts. This week, however, benchmarks have experienced a rare moment of stability.
2021/05/26 09:35
Goldman Sees $80 Oil This Year Despite Pending Iran Deal
Goldman Sees $80 Oil This Year Despite Pending Iran Deal
Goldman Sachs still expects crude oil to rise to $80 per barrel by the end of the year despite reports about progress on U.S.- Iranian talks about the lifting of sanctions.
2021/05/25 10:33
Barclays: Reopening Economies Drive Oil Demand Higher
Barclays: Reopening Economies Drive Oil Demand Higher
Global oil demand is recovering with major economies reopening amid a cautious supply approach from OPEC+ and restraint in U.S. shale, Barclays said on Friday.
2021/05/24 16:01
CNOOC crew
China extends oil market dominance as tax code forces buying shift
(Bloomberg) --China is set to extend its dominance in the global oil market as planned tax adjustments spark a chain reaction, prompting processors to boost crude imports and raise refinery run rates.
2021/05/22 08:46
Oil Demand Set To Surge As Travel Picks Up
Oil Demand Set To Surge As Travel Picks Up
As restrictions ease across Europe, we are slowly seeing a resurgence in fuel demand for travel, not only in gasoline and diesel but also in jet fuel as travel and tourism gradually pick up.
2021/05/21 08:47
Rapid Energy Transition Could Doom Oil Exporting Countries
Rapid Energy Transition Could Doom Oil Exporting Countries
It’s a tough time being in the oil and gas business. 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.
Iran Claims Its Oil Production Could Jump To 6.5 Million Bpd
Iran Claims Its Oil Production Could Jump To 6.5 Million Bpd
Iran can boost its crude oil production to as much as 6.5 million barrels per day (bpd) when the U.S. sanctions on its oil industry are lifted, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Monday.
The Oil ETFs To Watch If The Iran Deal Crumbles
The Oil ETFs To Watch If The Iran Deal Crumbles
Back in April, we discussed the possibility of president Biden's administration reviving the 2015 nuclear deal with Iran and consequently lifting the country's oil sanctions. We surmised that whereas Iran rejoining the ranks of major oil exporters as early as 2021 after a three-year layoff was likely to cause quite a bit of trepidation in the jittery markets, such a move would not necessarily upset the delicate supply balance that OPEC+ has been trying to achieve.
OPEC Could Win Big As Supermajors Fend Off Environmentalists
OPEC Could Win Big As Supermajors Fend Off Environmentalists
Environmentalists and shareholders concerned about the risks of investing in oil in the energy transition were not the only winners of last week’s historic rebukeof Big Oil by investors and society.
BlackRock: BP should pass shareholder resolutions as soon as possible to reduce carbon emissions
BlackRock: BP should pass shareholder resolutions as soon as possible to reduce carbon emissions
BlackRock does not approve of the requirements of the BP board of directors and hopes that the company can adopt shareholder resolutions on environmental protection in a deeper and faster manner.
Africa’s Oil Nations Will Be Doomed If Exploration Is Halted
Africa’s Oil Nations Will Be Doomed If Exploration Is Halted
The IEA’s shocking call for no new oil and gas exploration on the path to net-zero emissions doesn’t necessarily follow that demand through to its logical end game. A line-up of countries would descend into chaos, creating global instability that would itself threaten the climate by hindering a natural energy transition.
Iranian Pipeline To Make First Shipment In June
Sanctions-busting Iranian Pipeline To Make First Shipment In June
Iran’s Goreh-Jask oil pipeline is due to ship its first crude oil in June, with all construction having finished last week. This pipeline will enable Iran to transport huge quantities of oil from its major oil fields via Goreh in the Shoaybiyeh-ye Gharbi Rural District of Khuzestan Province 1100 kilometres to the port of Jask in Hormozgan province on the Gulf of Oman.
A Rare Moment Of Stability For Oil Prices
A Rare Moment Of Stability For Oil Prices
Oil prices have generally been trending higher over the past few months as the demand outlook for the commodity improved amid mass vaccination efforts. This week, however, benchmarks have experienced a rare moment of stability.
Goldman Sees $80 Oil This Year Despite Pending Iran Deal
Goldman Sees $80 Oil This Year Despite Pending Iran Deal
Goldman Sachs still expects crude oil to rise to $80 per barrel by the end of the year despite reports about progress on U.S.- Iranian talks about the lifting of sanctions.
Barclays: Reopening Economies Drive Oil Demand Higher
Barclays: Reopening Economies Drive Oil Demand Higher
Global oil demand is recovering with major economies reopening amid a cautious supply approach from OPEC+ and restraint in U.S. shale, Barclays said on Friday.
CNOOC crew
China extends oil market dominance as tax code forces buying shift
(Bloomberg) --China is set to extend its dominance in the global oil market as planned tax adjustments spark a chain reaction, prompting processors to boost crude imports and raise refinery run rates.
Oil Demand Set To Surge As Travel Picks Up
Oil Demand Set To Surge As Travel Picks Up
As restrictions ease across Europe, we are slowly seeing a resurgence in fuel demand for travel, not only in gasoline and diesel but also in jet fuel as travel and tourism gradually pick up.

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.