BP will meet with union leaders for Whiting refinery talks next week
BP and the United Steelworkers union announced on Wednesday that they will be meeting with 'union leaders' on Monday in order to re-start contract negotiations at their oil refinery in Whiting, Indiana. We look forward to returning the table for negotiations to reach an agreement which will preserve strong jobs by improving refinery performance and safety. This will also keep the site competitive over the long-term in various economic conditions. BP stated that they have been negotiating in good faith since the'start' and would continue to do so. Some 800 workers at the 440,000-barrel-per-day refinery, the largest in the U.S.
Iran ceasefire is a major factor in the growth of most Gulf markets ahead of Trump's China visit
As 'investors' watched the fragile Middle East truce and the upcoming 'high-stakes meetings' between U.S. President Donald Trump and Chinese president Xi Jinping. U.S. Treasury Sec. Scott Bessent said the two presidents would discuss the Iran War, and asked?China to 'join us in the international operation' to open the Strait of Hormuz for international shipping. Analysts say that while Beijing worked behind the scenes last month to persuade Iran to attend peace talks in Pakistan with 'the U.S.,' it did not act solely on Washington’s orders. Saudi Arabia's benchmark indices gained 0.2%. Al Rajhi Bank rose 0.8%, and Saudi National Bank, the largest lender in the country, increased 0.5%.
Europe's first-quarter earnings are a mixed bag for consumers and growth.
A majority of European companies have reported their first-quarter earnings. As a result, the corporate profits will rise faster than ever in three years. This is due to strong growth from the financial and energy sectors. As the war drags on, concerns are growing for consumers. According to LSEG I/B/E/S earnings in Europe are expected to be up 10.2% for the first quarter based on results?of the companies who have already reported and estimates of those that still have to report. This would be the 'fastest?growth rate in the first quarter since 2023. Despite the Iran War severely disrupting energy supplies around the world and threatening global growth and inflation prospects.
US loans 53.3 million barrels from Strategic Petroleum Reserve
The Trump Administration announced on Monday that it would loan 'energy companies' 53.3 million.barrels from the U.S..Strategic.Petroleum Reserve, as part of a worldwide agreement to calm down oil markets which have spiked due to the U.S. -Israeli War with Iran. Exxon Mobil and Trafigura are among the nine companies that borrowed less than 58% of the 92.5 million barrels offered by the Department of Energy to the SPR last month. This spring, the DOE had already borrowed about 80 million barrels. It is aiming to release a combined 172 million barrels. The U.S. agreed on this larger amount in March, in a deal with over 30 countries of the International Energy Agency.
Woodside Energy's delayed Browse Liquefied Natural Gas project is expected to cost 35 billion dollars
Woodside Energy has commissioned a report that estimates the cost of its long-delayed Browse project to be A$48.7billion ($35.2billion). The proposal to develop Australia's biggest?untapped gas resources was submitted to?regulators? in 2018. It was estimated at A$27.3billion in 2019 but in 2023, a major component of carbon capture and storing (CCS) was added to the plan. Environmental approvals and negotiations over a processing contract have slowed down the Browse project. Deloitte's economic impact analysis, commissioned by the Woodside company and released on Monday, revealed that the total capital expenditure for this project would be A$48.7billion.
Sources say that BP CEO told staff in June to expect a reorganisation of the company.
Three sources said that BP CEO Meg O'Neill notified staff of a reorganization?into 'two main business unit' - upstream & downstream - starting in June. BP announced in April that it would restructure according to this plan, but did not provide a timetable. O'Neill took over as oil major's 5th chief on April 1, becoming the first to make such a move. BP has three major business units. The gas and low-carbon unit covers gas-focused production, while the oil production and operation unit includes oil?output and its U.S. Onshore Business?and refinement. Customers and Products includes fuel sales, petrol station and lubricants.
Even if the conflict ends, oil supply shock will worsen due to further decline in inventories
Even if U.S.-Iran reach a peaceful agreement to end their war, oil supplies will tighten in the coming weeks. It will take weeks before oil shipments from the Middle East Gulf can be resumed and reached refiners around the world. Oil companies will therefore continue to deplete the storage tanks they have to meet the 'peak summer demand. World has used temporary buffers to absorb the shock of the Middle East war. These include commercial stocks, oil in transit or stored at sea, and emergency reserves. Executives from major energy companies and investment banks…
Even if the conflict ends, oil supply shock will worsen due to further decline in inventories
Even if U.S. and Iran reach a peaceful agreement to end their conflict, oil supplies will tighten in the coming weeks. It will take weeks for oil to be shipped from the Middle East Gulf to refiners around the world. Oil companies will therefore continue to deplete the storage tanks they have to meet the peak summer demand. World has temporarily buffered the impact of the Middle East war by using?commercial stocks, oil in transit and stored at sea as well as emergency?reserves. Markets and global economies have yet to feel the full impact of the disruption to oil supplies.
ADNOC to promote shale oil and gas projects following UAE's OPEC withdrawal
ADNOC Abu 'Dhabi expects to reach a final investment decision on its unconventional gas with TotalEnergies 'this year, and approval of a separate unconventional petroleum project is expected to follow shortly, said its upstream chief. Musabbeh Al-Kaabi, the Upstream CEO of state oil giant ADNOC, said that the United Arab Emirates' exit from OPEC on May 1 was a "sovereign" decision made in the 'long-term economic and strategic interests' of the country. Kaabi, who spoke at the "Make it in the Emirates" conference, said that ADNOC has been piloting its unconventional projects for more than a year, using advanced drilling techniques similar in style to those used in the U.S.
Norway Wealth Fund fails to meet its climate goals, according to NGO
A report from an environmental NGO on Tuesday said that Norway's $2.2 billion sovereign wealth fund is not engaging in climate change with the companies it invests in, despite its stated intentions to do so. The fund will aim to have all the companies in which it invests reach zero emissions of greenhouse gases by 2050. This is in accordance with the Paris Agreement. Around 7,200 companies are involved in the fund. Norges Bank Investment Management, the fund's operator sets expectations on company boards regarding climate change. It also votes on the topic at the annual general meeting and has the option to divest if the companies do not respond.
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.
