Dallas Fed energy survey shows little change in oil and gas production during Q4
According to a Federal Reserve Bank of Dallas survey, oil and?gas production in Texas, Louisiana, and New Mexico?edged down in the fourth quarter as executives expressed concerns about low oil prices, which are rendering some wells uneconomical, and the ongoing geopolitical uncertainties. The oil and gas industry's production was essentially unchanged over the quarter, while costs rose at a lower rate than in the previous quarter. Oilfield service firms reported a modest decline in a number of indicators, including equipment usage and operating margin.
The UK has exempted Egypt's Zohr Gas Field from Russian sanctions
Britain added Egypt's Zohr Gas Field, where Russian oil major Rosneft has a 30% stake - and London-based BP a 10% one – to a list of projects that are exempted from its Russia sanctions. In October, Britain and the United States sanctioned Russia's two largest oil companies, Rosneft, and Lukoil for their involvement in funding Moscow's invasion in Ukraine. The amended?general license, issued on Wednesday, allows for payments and business activities?linked to Zohr up until October 2027. BP owns a stake in Zohr along with?majority shareholder Eni, Rosneft, and other partners. The license did not give a reason for the exclusion.
The UK has exempted Egypt's Zohr Gas Field from Russian sanctions
The UK added Egypt's Zohr Gas Field, where?Russian oil giant Rosneft has a 30% stake? and London-based BP has a 10%?holding?, to a list that exempts Russia sanctions. In October, Britain and the United States sanctioned Rosneft, one of Russia's largest oil producers, for their role in financing Moscow's invasion in Ukraine. The amended general licence, dated?on Wednesday?, allows now payments and business activities linked to Zohr?until?October 2027. BP, Rosneft, Eni and other partners hold a?stake? in Zohr alongside majority stakeholder Eni. The license did not give a reason for the exclusion. The British government didn't immediately respond to an inquiry for comment.
In Poland's 2030 climate plan, renewable energy will make up 51-53% of the power mix.
The energy ministry said that Poland aims to have 51%-53% of its electricity mix made up by renewable energy sources by 2030. This is according to a draft version of the national energy and climate plans, which Warsaw will submit to the European Commission. The range of policy scenarios is higher than the 30% Poland announced a year ago, but still slightly lower than the 56% Poland predicted a year ago, as natural gas will now be used to generate more electricity. By 2040, it is projected that the share of renewables will rise to between 65% and 68%. According to a 'ambitious scenario', coal will be phased out of power generation and nuclear will make up about 15%.
Wall St. inches up as investors focus on policy outlook; Oracle slips
Wall Street's major indexes rose slightly in volatile trading Wednesday as investors sought clues about the future of interest rates. However, caution was still evident following reports that Oracle's plans for data centers were facing funding hurdles. Oracle shares fell by 2.8% following a report that Blue Owl Capital, the company's biggest data center partner, said it would not support a $10 billion contract for its next facility. Risk-taking has been plagued by concerns that the technology sector will turn to debt to achieve its AI goals. This concern has occurred multiple times in this quarter. Nvidia, the AI market leader, lost 1.8% on Tuesday.
Freeport LNG Export Plant in Texas will take in more natgas data shows
Data from the financial firm LSEG revealed that U.S. liquefied gas company Freeport LNG was'set to receive more natural gas in its Texas export plant on Wednesday. This implies a resumption of service by one of three liquefaction train after it had been shut down on Tuesday. It is one of the U.S. LNG facilities that are closely monitored in the world, as changes in its operation can lead to a?price spike in global gas markets. Gas prices in the U.S. typically?decline due to lower demand from the export plant. Prices in Europe are usually higher because there is less LNG available for global markets. The futures price in the U.S.
Wall St futures rise as investors look at more data and geopolitics
U.S. Stock Index Futures climbed a little higher on Wednesday, as investors waited for more economic data in order to determine the direction of monetary policy. They also monitored geopolitical tensions that were escalating in Venezuela. This pushed oil prices up. Later in the day, a number of "influential" Federal Reserve officials including Governor Christopher Waller and New York's President John Williams are expected to provide more clarity about monetary policy. The U.S. equity market had a volatile session Tuesday. The benchmark S&P500 touched a three-week high after a crucial jobs report failed.
EUROPE GAS-European gas prices rise due to a colder and less windy climate, LNG shortage
Gas prices in the Netherlands and Britain rose on Wednesday, supported by an improved weather forecast and an interruption at the Freeport Liquefied Natural Gas?plant. Storages are still 'below previous years' levels. LSEG data shows that the benchmark Dutch front-month contract was 27.50 euros per Megawatt Hour (MWh) or $9.44/mmBtu at 0941 GMT. This is an increase of 0.60 Euro. The February contract increased by 0.45 euros to 27.19 Euro/MWh. The British day-ahead gas prices increased by 1.40 pence to 70.50 pence a therm. A trader stated that prices were likely to be reacting to a combination of colder forecasts for late January…
Petrobras enters Brazil's solar energy sector with deal for Lightsource bp subsidiary Lightsource Bp 49.99%
The state-owned oil company of Brazil, Petrobras, has signed a deal with Lightsource bp to purchase 49.99%?of its subsidiaries in the country. The partnership will be structured in a 'joint venture' and aligned with the Brazilian company's 2026-2030 plan for diversifying its portfolio. The agreement did not disclose any financial details. Lightsource bp is a British 'oil company' that has a pipeline of between 1 - 1.5 gigawatts at advanced stages of development. It also has other projects in Brazil which are less mature. The companies said that the completion of the transaction was still "subject to regulatory clearances".
Canada announces new rules for reducing oil and gas methane emission
Canada has announced rules that have been promised for years to reduce methane emissions in the country's oil & gas sector. The regulations set out a way?for?Canada, the fourth largest oil producer in the world to reduce its greenhouse gas emissions by 75% from 2014 levels by the year 2035. The new rules fulfill the promise made by Mark Carney, Prime Minister of Canada to strengthen Canada's methane regulations. However, they allow for a slightly extended timeframe than that announced in previous drafts under Justin Trudeau's predecessor. Trudeau’s never-implemented regulations called for a reduction of 75% in methane emission by 2030.
Minister: Chevron will supply Hungary with 2 billion cubic meters of LNG
The state-owned MVM Group in Hungary has signed a five-year contract with the?U.S. The?Hungarian?foreign ministry announced on Tuesday that energy company Chevron will supply 2?billion cubic metres of liquefied gas. Budapest is trying to diversify supplies despite angering other European Union members and NATO members. Budapest is opposed to the 'EU's agreement to phase out Russian imports by 2027. This will end the blocs energy dependence on Moscow that has lasted for decades. We are interested in buying energy from as many different sources as possible and through as many different routes as we can, to ensure the lowest price.
Action Energy will begin trading on the Boursa Kuwait Premier Market on Wednesday
The exchange announced that the shares of oilfield services provider Action Energy Company would begin trading on Boursa Kuwait Premier Market on Wednesday under a ticker symbol ALF?TAQA. Kuwaiti company AEC was founded in 2015. It provides services such as drilling, exploration, production, gas injection, and maintenance for oil and gas installations, wells, refineries, and petrochemical facilities. AEC increased its issued and paid up capital from 20 million dinars to 56,65 million dinars (about 184,80 million?millions) through a number of measures, including the issuance of bonus shares, the conversion of preference shares into ordinary shares, and a private initial offer.
Japanese companies to gain more control over LNG joint ventures with state-backed groups
The industry ministry announced on Tuesday that Japanese companies would gain more control over JOGMEC-backed liquefied natural gas joint ventures and recover their investments faster as part of measures aimed to strengthen the nation's security in energy. The Ministry of Economy, Trade and Industry told a committee of resource and fuel policy it would encourage Japanese companies to invest in LNG. METI aims at introducing a mechanism that prioritizes dividend payments made to?companies through joint investment vehicles established with the Japan Organization for Metals and Energy Security(JOGMEC)…
Japan wants to give partners of state entities more flexibility to secure LNG supplies
The industry ministry announced on Tuesday that Japanese companies would be able to exercise more control over JOGMEC-backed liquefied gas joint ventures and also recover their investment faster. At a meeting of the committee on fuel and resource policy, the Ministry of Economy, Trade and Industry announced that it would take steps to encourage Japanese firms to invest in LNG projects. METI has stated that it aims to implement a'mechanism that prioritizes dividend payments to joint investment vehicles, with the 'Japan Organization of Metals and Energy Security.
Shell mergers chief Greg Gut quit after CEO blocked BP bid, FT reports
The Financial Times reported on 'Tuesday that Shell's head of mergers Greg Gut had left the oil giant after CEO Wael Sawan and top executives rejected an internal proposal to??buy rival BP? this year. Gut and the M&A Team pushed for a BP deal early this year. Andrew Mackenzie, chair of the board, was said to have been interested. However, Sinead and Sawan, finance chief, felt that a large deal could derail the strategy. Shell denied media reports that it bid for BP in June. It said it was bound to UK rules and, as a result, such a statement prohibited it from bidding for BP during the next six-month period.
Intercontinental Exchange sets Dutch gas trading record and aims for longer trading hours
Intercontinental Exchange announced on Monday that it would be extending trading hours and achieving a record trading volume for benchmark European Gas Contracts in 2025. ICE said that it traded a record 103 million contracts in futures and option products for the Dutch Title Transfer Facility in 2025. This was the first time the company had exceeded 100 million contracts. The company also set a record in the TTF 1st Line Financial Futures and JKM LNG futures (Platts), which each surpassed one million traded contracts. The first are cash-settled TTF contracts, priced in U.S. Dollars per?million British Thermal Units (MMBtu).
Prices for gas in Europe are little changed, as the cooler weather increases demand
Dutch and British gas traded in a narrow band on Monday morning after rising the previous two sessions. Cooler weather supported higher gas demand, and a sharp fall in wind speeds boosted gas demand for electricity generation. But stable supply limited gains. Data compiled by LSEG revealed that the benchmark Dutch front-month contract was down by 0.04 euros at 27,46 euros per megawatt (MWh) or $9.45/mmBtu by 0958 GMT. The Dutch day-ahead contracts was nearly flat at 27,50 euros/MWh. The British day-ahead contract rose by 0.73 pence to 71.43 pence/therm. However, the front-month contract fell 1.01 pence to 72.30 pence/therm. This week, temperatures are expected to be cooler.
Kazakhstan to see arbitration decision on Karachaganak by year's end
Yerlan Aktenzhenov, Kazakhstan's Energy Minister, said on Monday that a decision in the arbitration?case involving a consortium of international companies developing the Karachaganak -oil -and -gas condensate?field?would be expected by year's end. Akkenzhenov told reporters in Astana that there are arbitration proceedings relating to the Karachaganak Project. We are expecting a decision to be made this month and by the end of this year. In 2023, the Central Asian nation filed a claim against the developers of its Kashagan oilfields and Karachaganak, for disputed costs totaling $13 billion, and $3.5 billion, respectively.
In November, China's fossil fuelled power generation fell 4.2% on an annual basis.
Statistics Bureau data released on Monday showed that China's fossil fuelled power generation dropped 4.2% in November compared to last year. This reversed a 7.3% increase in October, when the power?generation reached its highest level in decades. This means that China's fossil fuelled power generation could be pushed lower until December when there is an increase in demand. It would be the first annual decline of this kind in a decade. In the first 11 month, China's thermal power generation, which is fueled by fossil fuels, was down 0.7%. Thermal power is mainly generated by coal, with a small amount of natural gas.
China's crude oil imports in November rose 3.9% due to new import quotas
China's crude throughput increased 3.9% in November according to?data from the statistics bureau on Monday. This was due to a new batch of quotas for crude oil imports by?independent refining companies?to offset maintenance at certain state-owned refineries. The largest oil producer in the world processed 60.83 millions metric tons of crude oil during this month. This is equivalent to 14.86million barrels per day. This was a slight increase from the 14.94 million bpd in October. MuyuXu, senior analyst for crude oil at Kpler, stated that in November, about 1.2 million bpd of refining capacity went offline due to maintenance. This impacted the?throughput.