BP and Chevron top the list of bidders in Trump's first Gulf of Mexico Oil and Gas auction
BP, Chevron, and Shell were the top bidders at the first U.S. Government sale of oil and natural gas drilling rights for the Gulf of Mexico since 2023. The auction ended with a total of $279.4 millions in "high" bids. It was the first out of 30 required by President Donald Trump's tax cuts and spending bill that he signed in July. His administration's plans on offshore leasing represent a major departure from those of his predecessor President Joe Biden. Biden had planned a historically low number of oil and?gas?auctions in an effort to shift away from fossil fuels while addressing climate change.
EUROPE GAS-European prices extend decline as milder weather softens demand
The benchmark contract for Dutch and British gas fell a further 19 months on Wednesday afternoon as the?updated temperature?forecasts indicated milder weather. LSEG data showed that the benchmark Dutch front-month contract was at its lowest intraday rate since April 2024, at 26.76 euros/MWh, or $9.12/mmBtu. The Dutch day-ahead contract eased by 0.69 euros, to 26.66 Euro/MWh. The British front-month gasoline price was down 0.60 pence to 68.90 cents. She said that the latest weather forecasting shows milder temperatures for this time of year than usual from 17 December. The strong gas supply also contributed to the negative sentiment.
VCI Germany expects the chemical industry to stagnate by 2026
VCI, the German chemicals lobby group, expects sales and orders to stagnate in 2019. This is due to high regulatory uncertainty, uncompetitive manufacturing costs and a long approval process. The ?association, which represents around 2,300 companies, said revenues in the chemical-pharmaceutical industry fell 1% to 220 billion euros ($256.26 billion) in 2025. "I don't believe that certain measures will have a significant effect in the?short term but if we don't start today, we'll be right back here at the end of?2026 and asking in 2027 if there would be any impact," Markus Steilemann, VCI president and CEO of Covestro, said on a call with journalists.
US auctions first Gulf of Mexico Oil and Gas since 2023
On Wednesday, the Trump administration will conduct the first government sale of oil-and-gas drilling rights in Gulf of Mexico?since 2023. This is a test of the industry's appetite?for offshore acres at a moment when the United States?is trying to increase domestic fossil fuel production. The auction is one of the 30 required by President Donald Trump's tax-cut and spending bill that he signed in July. His administration's plans are a major departure from those of his predecessor President Joe Biden. He had planned a historically?limited number of oil-and-gas auctions in an effort to shift away?from?fossil fuels and tackle climate change. The U.S.
Kyiv reports that Russia has hit the gas transport system of Ukraine's Odesa Region.
A senior Ukrainian official reported on Wednesday that Russian drones had 'hit the gas transport system' in Ukraine’s southern Odesa Region. This area contains several pipelines bringing U.S. Liquefied Natural Gas to Ukraine from Greece. Mykola Kolysnyk, the deputy minister of energy, refused to say what had happened. The Ukrainian gas transit operator reported that planned volumes for the Transbalkan route, also known as the Transbalkan Gas Transit Route, were mostly unchanged. In recent months, Russia has intensified its attacks on Ukrainian energy and gas infrastructure. This includes both gas production and transmission systems.
Senegal plans to nationalise Kosmos-run Yakaar-Teranga gas project
The Senegal's Energy Minister said that the country plans to nationalise Yakaar-Teranga, a gas project operated by Kosmos and estimated to be?one of the largest discoveries made in recent years?, to meet its domestic gas needs. Kosmos Energy has a 90% share and will operate the Yakaar Teranga field after BP decides to leave in 2023. Kosmos didn't?immediately reply to a comment request outside of U.S. office hours. The state-controlled 'Petrosen' holds the remaining 10% of the field. It is estimated to contain around 25 trillion cubic foot of recoverable natural gas. This is even more than the Leviathan field off the coast of Israel which contains around 22 tcf.
Nigerian oil companies strike deals with flare-gas to reduce emissions and boost energy
Heirs Energys, a Nigerian oil company and the state-owned NNPC announced on Wednesday that they had signed agreements to capture and monetise the gas that is otherwise wasted by flaring. Flaring is the act of burning fuel in the open. Nigeria has the largest gas reserves in Africa and relies on gas to fuel industrial growth and reduce emissions. The Decade of Gas is a policy that aims to increase domestic gas supply, reduce flaring, and expand LNG exports. Recent World Bank data shows that flaring is expected to increase by 12% between 2024 and 2025. The deals are part of an effort by Nigerian operators to reduce greenhouse gases emissions and increase domestic supply.
Germany's VCI predicts a "difficult road" and a stagnant chemical industry in 2026
VCI, the German chemicals lobby, expects that orders and sales will stagnate by 2026 due to high regulatory uncertainty, uncompetitive?production costs, and slow approval process. The ?association, which represents around 1,900 companies, said revenues in the chemical-pharmaceutical industry fell 1% to 220 billion euros ($256.26 billion) in 2025. The German chemicals industry, which employs around half a million people, is under increasing pressure due to high production costs, bureaucratic burdens, and a stagnant economy. This pressure is compounded by U.S. import tariffs.
EUROPE GAS - European prices trade in narrow range due to strong supply and demand pickup
Dutch and British gas prices rose on Wednesday morning, but remained confined to a small range. This was due to the strong supply of liquefied?gases (LNG), which offset an increase in demand due to a cooler weather forecast. LSEG data shows that the benchmark Dutch front-month contract was 27.06 euros per Megawatt Hour (MWh) or $9.24/mmBtu at 0854 GMT. This is a decrease of 0.43 euros. The Dutch day-ahead contract eased by 0.52 euros, to 26.83 Euro/MWh. The British gas front-month price was down 0.04 pence to 71.60 pennies. Temperatures are expected to be higher in the remaining 15 days of the window, but have been lowered for the 13-15 December period.
Venture Global responds to Shell's fraudulent claims in LNG arbitration
Venture Global responded late Tuesday night to Shell's legal challenge over the oil major losing an arbitration case involving liquefied gas cargoes. They rejected Shell's allegations of fraud and accused Shell of violating arbitration confidentiality. The legal documents filed in New York Supreme Court are the latest in a long saga about Venture Global's alleged failure to deliver LNG in accordance with long-term contracts, while selling LNG on the spot market at a time when prices were soaring after Russia's invasion in Ukraine. Shell, BP and Edison are among the companies that have filed arbitration cases against Venture Global. These claims will begin in 2023.
Venture Global responds to Shell's fraudulent claims in LNG arbitration
Venture Global responded late Tuesday night to Shell's legal challenge over its loss in an arbitration case involving liquefied gas cargoes. The company rejected allegations of fraud, and accused Shell of breaching arbitration confidentiality. The legal documents filed in New York Supreme Court are the latest in a long-running saga about Venture Global's inability to deliver LNG in accordance with long-term contracts, while selling LNG on the spot market when prices rose after Russia's invasion in Ukraine. Shell, BP, Edison and other companies filed arbitration claims in 2023 against Venture Global. Shell lost in August while BP won in October.
GE Vernova is expecting 80 gigawatts in gas turbine contracts before the end of the year
GE Vernova, a manufacturer of power generation equipment, said that it expects to sign 80 gigawatts in combined-cycle gas?contracts before the end of this year - as electricity demand from Big Tech data 'centers - ramps up. The demand for natural gas-powered?turbines has risen as U.S. electricity demand is at record levels due to the proliferation energy-intensive data centres supporting artificial intelligence initiatives. GE 'Vernova has sold all of its gas-turbines until 2028. CEO Scott Strazik remarked at a conference held for investors that there are less than 10% remaining to be sold the following year.
EIA: US natgas production and demand will reach record highs by 2025
The U.S. Energy Information Administration stated in its "Short-Term" Energy Outlook on Tuesday that U.S. Natural Gas output and demand would 'both rise to new record highs by 2025. EIA projects that dry gas production in 2026 will increase from 103.2 billion cubic feet per day to 107.7 in 2025, and 109.1 in 2026. This compares to a record 103.6 bcfd for 2023. The agency also predicted that domestic gas consumption would?rise? from a record high of 90.4 bcfd by 2024, to 91.8bcfd by?2025, before slipping to 90.8bcfd by 2026. The December 2025 projections were higher than the EIA demand forecast of 91.6 billion cubic feet per day (bcfd) in November…
EIA: US power consumption will reach new highs by 2025 and 26.
Energy Information Administration's short-term energy forecast on Tuesday said that U.S. electricity consumption would reach record levels in 2025 and in 2026. EIA predicted that power demand would rise from 4,110 billion kWh to 4,199 billion in 2025 and 4,267 billion in 2026. Demand is increasing due to the use of electricity by homes and businesses and data centers dedicated for artificial intelligence and cryptocurrency. According to the EIA, power sales for residential customers will reach?1,516?kWh in 2025, followed by 1,486?kWh commercial customers and 1,055?kWh industrial customers.
Shell In Advanced Discussions to Buy LLOG Exploration for Over $3B
Shell is in advanced discussions to buy LLOG Exploration offshore in a deal valued at more than $3 billion. This would increase the oil major's portfolio of upstream oil and gas producers by acquiring one of the biggest privately owned oil and natural gas producers in the U.S. Gulf. Sources said that the parties were in advanced talks, and that an agreement was close. One source added that the deal could be signed by the end the year.Sources?advised that there is no guarantee that a deal would be reached between Shell and Covington, Louisiana based producer and spoke under?conditions of anonymity for private deliberations.Shell declined to make a comment.
Sources: Russian Syzran oil refinery was halted on December 5, by a drone attack
Two industry sources reported on Tuesday that the Russian Syzran refinery, located on the Volga River, stopped?oil production on December 5, after it was?damaged by an Ukrainian drone attack. As peace talks failed to progress, Ukraine and Russia began attacking each other's nuclear energy plants. The Ukrainian military said that they had carried out long-range attacks overnight on an oil refining plant in the Russian city Syzran, and on the Temryuk Port located in the Krasnodar Region. Sources said that the drones targeted the CDU-6 crude distillation unit of the plant, which was the primary equipment that had been targeted by drones earlier in August.
Exxon predicts increased earnings and oil production by 2030
Tuesday, Exxon Mobil announced that it would target a $25 billion?earnings increase from 2024-2030. The company will also?increase its oil and gas production. Exxon's earnings forecast represents a $5-billion increase over its previous plan. However, Exxon plans to maintain the same spending targets of $28 billion - $30 billion annually through 2030. Exxon said its updated corporate plan reflects the company's efforts to reduce costs and?"increase profits" even during periods of oil price volatility. Upstream, the oil producer's focus includes expanding its liquefied gas business.
Turkstream transactions are not subject to US sanctions, Hungary claims
Peter Szijjarto, Hungary's Minister of Foreign Affairs, said that the company operating TurkStream will be able to do business in Hungary?without problems? thanks to an agreement reached with Washington. Hungary continues to depend on Russian energy, despite the conflict in Ukraine and Western sanctions. This has prompted criticism from several European Union and NATO allies. Szijjarto, during a Facebook broadcast in Moscow, said that the TurkStream Pipeline will continue to run 'without interruption in the next?period regardless of any legal or?financial attack.
Sources say Saudi Aramco will export the first condensate in February from Jafurah Gas Plant
Two sources familiar with the matter confirmed on Tuesday that Saudi Aramco, the state energy company, plans to export the first condensate from the Jafurah Gas Plant in 'February. Aramco is aiming to be a global leader in natural gas by increasing its production capacity. The $100 billion Jafurah Project, which contains 229 trillion standard cubic feet of raw gas, and 75 billion barrels condensate according to estimates, is at the heart of this ambition. Saudi Finance Ministry said that the first phase of production began in early this month.
EUROPE GAS-European Prices Rise on Slightly Stronger Demand Outlook
Dutch and British gas rates firmed up on Tuesday. Forecasts suggest a slightly higher demand, although both pipeline?and liquefied (LNG?) supply remain robust. LSEG data revealed that the benchmark Dutch front-month MWh contract at TTF hub had increased by 0.16?euros to 27.33 euros (MWh) or $9.33/mmBtu as of 0913 GMT. It fell to its lowest level in April 2024, 26.75 Euros/MWh on Monday. The Dutch day-ahead contracts eased by 0.03 euros, to 26.77 Euros/MWh. The British day-ahead gasoline price increased by 1.85 pence to 68.60 cents. Saku Jussila…