Irfaan Ali, President of Guyana, says that energy investments are not enough to meet demand
Irfaan Ali, Guyana’s President, said on Monday that the gap between supply and demand was widening, due to global energy systems being under strain. The Iran war is now in its third month, and it continues to push up oil and natural gas prices. Since the beginning of?the war, energy markets have been in turmoil. The conflict has damaged infrastructure throughout?the Middle East, and the resulting closure of the 'Strait of Hormuz - a major trade chokepoint - has led to a significant drop in prices. Oil prices are now above $100 per barrel and trade flows around the world have changed as some nations rush to secure supplies.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleets for the second week running.
Baker Hughes, a renowned energy services firm, said that U.S. firms added oil and natural gas rigs this week for the second week in a row. This is the first addition since mid-March. In the week leading up to May 1, the oil and gas rig counts, an early indicator for future production, increased by three, to 547, its highest level since early April. Baker Hughes reported that despite this week's increase in rigs the total count is still 37 rigs or?6% lower than this time last year. Baker Hughes reported that oil rigs increased by one this week to 408; their highest level since mid-April. Gas rigs also rose, by one, to 130. Their highest level?since early April.
Bloomberg News reports that BP is considering a possible exit from the UK North Sea.
Bloomberg News reported Friday that BP is considering selling some or all its UK North Sea assets as part of a broader initiative to reduce debt and refocus the company on oil and gas projects with higher returns. According to the report, the company is currently conducting an internal review on its UK upstream operations. These could fetch around 2 billion pounds ($2.72billion) if they were sold in full. However, the plans are not final, and may not materialise. BP didn't immediately respond to a'request for comments. Its shares?closed just over 2% lower on Friday, amid broader market weakness resulting from the Iran war negotiations. The FTSE 100 was 0.1% lower.
UAE stock prices edge up, but geopolitical tensions cap the gains
The stock markets of the United Arab Emirates ended a little higher on Friday as investors remained cautious due to the lack of progress made in diplomatic talks between Iran and 'the United States. The conflict has reached a deadlock. A ceasefire has been implemented since April 8 but tensions are still high. Iran continues to blockade the Strait of Hormuz as retaliation against a U.S. naval blockade of their vital oil exports. A U.S. official said that Donald Trump was scheduled to be briefed on Thursday about plans for a "series of new military strikes" to force Iran to negotiate a peaceful end to the conflict. Abu Dhabi's benchmark indices gained?0.1%.
Pemex's Q1 losses of $2.6 billion are not lifted by higher oil prices
Mexico's Pemex posted a quarterly loss of 45.99 billion pesos ($2.6 billion), as the state energy company did not profit from an?increase in global oil prices triggered by a conflict abroad. Pemex's debt burden has made it difficult to reach the government's production target of 1.8 millions bpd. At the end of its first quarter, Pemex's financial debt was $79 billion. Of this, $20.8 billion was owed to suppliers. T averaged 1.652 million barrels per day, a significant increase from the same quarter last year. This was due to the fact that it pumped more barrels out of the fields Maloob and Ixachi as well as Zaap, Ayatsil, and Quesqui.
What is the difference between a driller and a trader? Iran War exposes Big Oil’s transatlantic division: Bousso
The first-quarter profits of European oil majors were boosted by a bumper trading gain as the Iran Warupended supply chains. This highlights how sometimes the ability to move barrels around can trump the ability to pump them out of ground. BP, Shell, and TotalEnergies 'have spent years creating vast oil trading machines which now sit at their core of their business – setting them apart from their U.S. counterparts, for better or worse. BP announced a first-quarter profit of $3.2billion on Tuesday. This is more than twice the figure from last year, largely due to an exceptional performance by its oil trading. Oil trading is part of the Customers and Products division.
BP signss agreement with Venezuela for offshore gas fields
BP and the Venezuelan government signed a Memorandum of Understanding on Wednesday. The company and government announced that BP would develop Venezuela's Cocuina Manakin gas -field on the maritime border between Trinidad and Tobago as well as explore joint opportunities at a gas field offshore called Loran. Venezuela recently signed deals for exploration and other services with international producers such as Italy's Eni, Spain's Repsol and others, following the January ouster of Nicolas Maduro by U.S. troops. The return of BP was a sign of the 'future' we wanted to chart for Venezuela…
Norway Oil firms seek mediation to avoid a labour strike that could affect output
Offshore Norge, an industry group, said that wage talks between Norwegian oil companies?and labour unions?broke down on Wednesday. The state will now take over mediation to try and?prevent workers from going on strike. If the government-appointed mediator in Norway is unable broker a deal at the time of negotiations that resume later this summer, union members will be eligible to strike and disrupt?the output from Western Europe's biggest oil and gas producer. Offshore Norge reported that unions Styrke Safe and Lederne were unable to reach an agreement with companies. Although no date has been set yet, oil companies expect to have mediation in June.
After Middle East turmoil, oil majors are looking to resurrect Canadian energy.
Shell's $16.4billion agreement to purchase ARC Resources is the most obvious sign of the change. TotalEnergies, ConocoPhillips and Equinor are all companies that have been re-evaluating their Canadian competitors. According to interviews conducted with 12 people who were familiar with these discussions, companies have asked investment banks to create lists of potential acquisition targets. Foreign companies have been dumping fossil fuels in Canada for the past decade. Since the election of Prime Minister Mark Carney, Canada's leaders have become more pro-oil and gas. The war in Iran has also caused investors to seek safer environments.
Peak demand season is approaching, and gasoline stocks are plummeting. Prices are also rising.
As the summer driving season begins, U.S. motorists can expect an increase in gas prices as the conflict in Iran pushes oil prices up and forces countries to rely on American energy. Gasoline demand peaks during the summer when Americans embark on road trips and other types of travel. Gasoline stocks are relatively high, which has protected U.S. motorists from the worst of supply disruptions caused by the Iran War and the closure of the Strait of Hormuz. This could change. Data released by the government?on Wednesday revealed a drop of 6.08 million barrels in gasoline stocks last week. This is part of an overall massive drawdown in U.S.
CNOOC's profit for the first quarter of 2014 increases on higher oil prices and output growth
CNOOC Ltd. posted a 7.1% increase in its first-quarter net profits on Tuesday, as the Iran War?pushed up global oil prices. The offshore oil and natural gas major also increased production. According to a filing made at the Hong Kong Stock Exchange, the net income for January-March was 39.14 billion Yuan ($5.73billion), up from 36.56 billion Yuan a year ago. Revenue increased?8.6%, to 116.08 Billion Yuan. CNOOC Ltd., the listed subsidiary of China National Offshore Oil Company (CNOOC),?reported a total net production of 205.1 million barrels equivalent to oil (boe) for the first quarter.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 3 weeks.
Baker Hughes, a closely watched energy services company, said in its report on Friday that U.S. firms?added oil & natural gas rigs this week for the?first time in three-weeks. The number of oil and gas rigs, a good indicator of future production, increased by one in the week ending April 24. This is its highest level since mid-April. Baker Hughes reported that despite the increase in rigs the total number of rigs was still 43 or 7% lower than this time last year. Baker Hughes reported that oil rigs dropped by three this week to 407, the lowest since February. Gas rigs, however, rose by four to reach 129, which is their highest level since early April.
Oilfield services provider SLB reports lower quarterly profits on Iran War Hit
SLB reported on Friday a 'falling profit in the first quarter, as disruptions caused by the war in Iran affected 'demand for oilfield services in a key oil producing region. Before the bell, shares of the company dropped 3%. He added that "the impact was most noticeable in Well?Construction, and Reservoir Performance". Total revenue for the quarter was $8.72 billion, with revenues from Middle East Asia dropping 10% to $2.69 Billion. SLB's largest market is the Middle East, which will account for 34% of its revenue by 2025. Top oilfield services provider…
BP fails in its attempts to obtain shareholder approval for two AGM Resolutions
BP announced that it failed to get a majority 'approval' from shareholders for two special resolutions presented at its annual general meeting on Thursday. "While it appears that we have a large majority in favor of?the company's direction, it is?clear that the two special resoluttions - one relating?to?our articles and another relating?to historic resolutions – have not achieved a simple majority," BP Chairman Albert Manifold reportedly told the AGM. It was not immediately clear if Manifold meant resolutions 22 or 23, which would have allowed virtual AGMs, and allowed BP the opportunity to rescind two previous resolutions requiring company-specific disclosures.
BP's lockout at Indiana refinery extends into a second month after union talks stall
A lockout at BP's 440,000-barrel-per-day ?refinery in Whiting, Indiana, enters its second month as the ?British oil major and ?hundreds of union workers ?remain ?at odds. BP locked out around 800 workers representing the United Steelworkers on March 19 after months of failed negotiations to produce a new contract. Whiting is the biggest refinery in Midwest, and a major supplier of gasoline diesel and jet fuel. The Whiting facility has been able to continue operating 'during the lockout, after BP brought temporary workers in. BP announced on Wednesday that it had 'attempted twice since April to return to the union for negotiations but had not received a?formal response.
Saipem, a provider of energy services, is well-positioned to win Iran War Repair Contracts
Saipem's chief executive on Wednesday said that the company can win contracts in the Middle East for repair work after the Iran war by using its 'long-term' relationships with customers. Rystad Energy, in a report released recently, estimated that the cost of repair and restoration of energy infrastructure due to war could reach $58 billion. Oil and gas facilities, alone, may face a bill of up to $50 billion. Chinese and Indian firms are expected to compete for these contracts. Alessandro Puliti of Saipem, in a conference call following the results, stated that the Italian firm was the only one qualified to undertake repair projects in this region.
Halliburton reports higher costs due to the Iran War as its first-quarter profits exceed estimates
U.S. oilfield service provider Halliburton warned that disruptions due to the Iran War and the closure of the Strait of Hormuz would reduce current-quarter earnings by 7 to 9 cents per share, after exceeding first-quarter profit estimates. The?Strait of Hormuz' is a major global energy chokepoint. On Tuesday, the company reported that rerouting had increased logistics costs and the conflict has also raised raw material prices. Halliburton launched its global oilfield services provider results amid investor attention on potential gains from repairs to the infrastructure in the area, which Rystad Energy estimated could be worth up to $58 billion.
Norway's sovereign fund supports BP chairman's reelection
The 'world's biggest' sovereign wealth fund of $2.2 trillion, Norway, announced on Saturday that it would vote for the reelection 'of BP Chairman Albert Manifold 'and 'other board-supported'resolutions' at the annual general meeting, April 23. Norges Bank Investment Management, which runs the fund and operates it, said that they would support the board in its proposal to remove two climate reporting resolutions. Some BP shareholders had argued that these should be retained. BP said that the two resolutions had been?superseded' by a more comparable and standardised reporting on climate change.
Baker Hughes reports that US drillers have cut back on oil and gas drilling for the second consecutive week.
Baker Hughes, an energy services firm, said that U.S. firms have cut the number of oil and gas rigs for the second week in a row for the first time since march. The number of oil and gas drilling rigs, a good indicator of future production, dropped by two in the week ending April 17 to 543, the lowest level since late March. Baker Hughes reported that the total number of rigs is down 42 or 7% from this time last week. Baker Hughes said oil rigs dropped by one this week to 410, the lowest level since late March. Gas rigs also fell, by two, to 125, the lowest level since January. Other miscellaneous drilling rigs increased by one, to eight.
Australia lifts fuel restrictions following fire at its largest refinery
The Australian Prime Minister Anthony Albanese stated 'on Friday that a fire in 'the larger of Australia's two oil refineries would not trigger any fuel restriction, as the Government ramps up its efforts to secure fuel supply due to the War on Iran. The fire at Viva Energy’s refinery, located in Geelong an hour from Melbourne, is a terrible time for Australia. It imports 80% its fuel and has been racing to secure additional supply?from region allies. Albanese, after meeting with company officials on site, said that the 120,000 barrels per day refinery currently operates at reduced rates.
