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
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
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.
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.

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.