BP Restarts Offshore Oil And Gas Platforms After Hurricane Ian
BP restarted production at its Na Kika and Thunder Horse platforms on Thursday.
BP halted production on the two platforms on Monday ahead of Hurricane Ian.
Hurricane Ian has since weakened to a Category 1 storm, although some parts of Florida are still being hit.
2022/09/30 18:34
Oil Prices Fall After Fed Raises Rates
Oil Prices Fall After Fed Raises Rates
The U.S. Federal Reserve hiked interest rates by 75 basis points on Wednesday.
The rate hike is the third straight hike for the Fed, and rates are now the highest they’ve been since 2008.
Crude prices reacted negatively to the news with Brent crude falling back toward $90 per barrel.
2022/09/22 19:03
The United States has avoided a potentially disastrous rail strike.
Oil Prices Fall As Rail Strike Fears Fade
Oil prices dropped on Thursday morning.
The United States has avoided a potentially disastrous rail strike.
The Department of Energy is denying plans to refill the strategic petroleum reserve with sub-$80 oil.
2022/09/16 13:58
Will OPEC Cut Oil Output On Labor Day?
Will OPEC Cut Oil Output On Labor Day?
OPEC is meeting on September 5 to discuss the state of the oil market.
The cartel is considering slashing oil production.
Reports of where oil demand is heading remain mixed.
2022/09/05 16:12
The G7 Could Finalize Plans For A Price Cap On Russian Oil Today
The G7 Could Finalize Plans For A Price Cap On Russian Oil Today
G7 finance ministers are set to finalize a plan on a potential price cap on Russian oil.
Despite Russia’s falling oil export volumes, revenues in June increased by $700m from May due to prices pushed higher by its war in Ukraine.
The Kremlin has since warned it will not tolerate any restrictions to prices, and Gazprom would instead only ship oil to states not obeying the price ceiling.
2022/09/03 11:34
A recession could weigh further on global oil demand, though many analysts are bullish on oil in 2023.
Will Oil Prices Head Higher In 2023?
Oil prices have traded below $100 per barrel since the beginning of August.
A recession could weigh further on global oil demand, though many analysts are bullish on oil in 2023.
The looming EU embargo on Russian seaborne oil imports at the end of this year is also expected to push prices higher.
2022/08/25 17:06
JODI: global crude inventories fell by 21.8 million barrels to 915.8 million barrels in June.
U.S. Crude Inventories Fell To Lowest Level Since 2004 In June
JODI: global crude inventories fell by 21.8 million barrels to 915.8 million barrels in June.
The low level of crude inventories coincided with record-high gasoline prices in the U.S. in June.
Product inventories, on the other hand, rose by 34.1 million barrels to 650.5 million barrels.
2022/08/18 09:38
Russia became China’s largest oil supplier earlier this year, according to Chinese customs data for May, overtaking its OPEC+ partner Saudi Arabia.
Energy Sanctions On Russia Have Been A Boon For China And India
The war in Ukraine has forced the West to target Russian energy exports.
Russia has instead offered its crude oil at massive discounts to India and China.
Russia became China’s largest oil supplier earlier this year, according to Chinese customs data for May, overtaking its OPEC+ partner Saudi Arabia.
2022/08/18 09:33
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
Saudi Aramco Is Taking A Page Out Of The U.S. Shale Playbook
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
The Kingdom of Saudi Arabia-KSA has also received calls from the U.S. government to increase its output. KSA has notionally agreed, but with relatively token amounts that do not address the U.S. government’s goal of reducing oil prices.
A closer look at their recent report to shareholders, along with other investing actions they have taken, seems to draw similarities in mindset with U.S. shale producers, in terms of holding to previously announced capital restraint.
2022/08/18 09:15
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
Commodities Trading: The Secret Behind Big Oil’s Bumper Earnings
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
BP has managed to build one of the most successful energy trading ventures.
Massive trading floors that sometimes rival Wall Street’s biggest banks are becoming increasingly important to oil companies.
2022/08/04 09:53
Traders Are Betting On The End Of The Oil Price Slump
Money managers have started to close out short positions on oil.
The oil price slump that started mid-June could be about to reverse.
The disconnect between the physical crude market and paper crude market remains large.
2022/07/26 18:42
The Middle East Oil Bonanza Will Slow In 2023
The Middle East Oil Bonanza Will Slow In 2023
Slowing global oil demand growth next year, spiking food prices, and fears of recession in major oil-importing countries are set to slow economic growth in the Middle East.
2022/07/22 14:20
BP Restarts Offshore Oil And Gas Platforms After Hurricane Ian
BP restarted production at its Na Kika and Thunder Horse platforms on Thursday.
BP halted production on the two platforms on Monday ahead of Hurricane Ian.
Hurricane Ian has since weakened to a Category 1 storm, although some parts of Florida are still being hit.
Oil Prices Fall After Fed Raises Rates
Oil Prices Fall After Fed Raises Rates
The U.S. Federal Reserve hiked interest rates by 75 basis points on Wednesday.
The rate hike is the third straight hike for the Fed, and rates are now the highest they’ve been since 2008.
Crude prices reacted negatively to the news with Brent crude falling back toward $90 per barrel.
The United States has avoided a potentially disastrous rail strike.
Oil Prices Fall As Rail Strike Fears Fade
Oil prices dropped on Thursday morning.
The United States has avoided a potentially disastrous rail strike.
The Department of Energy is denying plans to refill the strategic petroleum reserve with sub-$80 oil.
Will OPEC Cut Oil Output On Labor Day?
Will OPEC Cut Oil Output On Labor Day?
OPEC is meeting on September 5 to discuss the state of the oil market.
The cartel is considering slashing oil production.
Reports of where oil demand is heading remain mixed.
The G7 Could Finalize Plans For A Price Cap On Russian Oil Today
The G7 Could Finalize Plans For A Price Cap On Russian Oil Today
G7 finance ministers are set to finalize a plan on a potential price cap on Russian oil.
Despite Russia’s falling oil export volumes, revenues in June increased by $700m from May due to prices pushed higher by its war in Ukraine.
The Kremlin has since warned it will not tolerate any restrictions to prices, and Gazprom would instead only ship oil to states not obeying the price ceiling.
A recession could weigh further on global oil demand, though many analysts are bullish on oil in 2023.
Will Oil Prices Head Higher In 2023?
Oil prices have traded below $100 per barrel since the beginning of August.
A recession could weigh further on global oil demand, though many analysts are bullish on oil in 2023.
The looming EU embargo on Russian seaborne oil imports at the end of this year is also expected to push prices higher.
JODI: global crude inventories fell by 21.8 million barrels to 915.8 million barrels in June.
U.S. Crude Inventories Fell To Lowest Level Since 2004 In June
JODI: global crude inventories fell by 21.8 million barrels to 915.8 million barrels in June.
The low level of crude inventories coincided with record-high gasoline prices in the U.S. in June.
Product inventories, on the other hand, rose by 34.1 million barrels to 650.5 million barrels.
Russia became China’s largest oil supplier earlier this year, according to Chinese customs data for May, overtaking its OPEC+ partner Saudi Arabia.
Energy Sanctions On Russia Have Been A Boon For China And India
The war in Ukraine has forced the West to target Russian energy exports.
Russia has instead offered its crude oil at massive discounts to India and China.
Russia became China’s largest oil supplier earlier this year, according to Chinese customs data for May, overtaking its OPEC+ partner Saudi Arabia.
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
Saudi Aramco Is Taking A Page Out Of The U.S. Shale Playbook
U.S. shale producers have resisted calls from the government to substantially raise production, preferring to return cash to shareholders and repair their balance sheets.
The Kingdom of Saudi Arabia-KSA has also received calls from the U.S. government to increase its output. KSA has notionally agreed, but with relatively token amounts that do not address the U.S. government’s goal of reducing oil prices.
A closer look at their recent report to shareholders, along with other investing actions they have taken, seems to draw similarities in mindset with U.S. shale producers, in terms of holding to previously announced capital restraint.
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
Commodities Trading: The Secret Behind Big Oil’s Bumper Earnings
Energy traders saw their profits spike during the pandemic, and continue to perform well in 2022.
BP has managed to build one of the most successful energy trading ventures.
Massive trading floors that sometimes rival Wall Street’s biggest banks are becoming increasingly important to oil companies.
Traders Are Betting On The End Of The Oil Price Slump
Money managers have started to close out short positions on oil.
The oil price slump that started mid-June could be about to reverse.
The disconnect between the physical crude market and paper crude market remains large.
The Middle East Oil Bonanza Will Slow In 2023
The Middle East Oil Bonanza Will Slow In 2023
Slowing global oil demand growth next year, spiking food prices, and fears of recession in major oil-importing countries are set to slow economic growth in the Middle East.

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.