Saturday, June 26, 2021
/06:30 AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice.com
Oil prices are on
course to close out another week of gains despite fears of Iranian production
coming back online and OPEC+ preparing to increase its output.
Friday, June 25th, 2021
Oil appears set to close out another week of gains, although
trading became choppy this week as OPEC+ readies production increases.
supports Line 3. The Biden administration supported the contentious
Line 3 pipeline in Minnesota in a court filling.
buys up renewable energy. Amazon (NASDAQ: AMZN) said it would
purchase 1.5 GW of renewables from 14 different solar and wind projects. Amazon
is the largest corporate purchaser of renewables worldwide.
LNG grows costlier. Even as U.S. LNG exports have
expanded, supplying liquefied natural gas to the growing Asian market has
become more expensive for US producers this year, a Rystad Energy report
reveals. Rystad Energy estimates that the short-run marginal cost (SRMC) of US
LNG exports to the Asian market has risen to about $5.60 per MMBtu as of June
2021, up 65% from $3.4 per MMBtu in mid-2020 and 30% higher than last year's
average of $4.30 per MMBtu.
Descent Into Anarchy Is Fueling Maduro's Desperation. After
more than 15 years of U.S. sanctions which caused Venezuela's one mighty
petroleum industry to collapse, the crisis-driven Latin American state
now appears on the verge of
won't cut oil and gas production. Unlike European
supermajors, U.S. Chevron doesn't have any plans to reduce its
oil and gas business to invest in solar or wind power, chief financial officer
Pierre Breber said at a Reuters conference on Thursday.
to stick with oil and gas for decades. BP (NYSE: BP) will
continue producing oil and gas for decades to come and will benefit from rising
oil prices even as it reduces output as part of its shift to low-carbon energy,
Chief Executive Bernard Looney told Reuters on Tuesday.
restarts nuclear reactor. Japan restarted the first
nuclear reactor in more than three years, restarting a unit that has been
offline for a decade. Only 10 of Japan's 33 operable nuclear units have resumed
operations under the regulatory regime created in the wake of the Fukushima
shoots down FERC permit for pipeline. A rare rebuke of
FERC occurred in federal court this week. The court nixed a permit for a gas
pipeline, saying that that the pipeline company did not show that its project
was needed, and FERC should have scrutinized it more. The decision could have
broader implications for pipeline permitting.
looms for Canada's oil sands. Just one of Canada's
five biggest oil companies, Suncor Energy (NYSE: SU) has a
plan to cut emissions. Reuters looks at the
tough road ahead for Canada's oil sands.
sets net-zero goal. Schlumberger (NYSE: SLB) set
a net-zero goal by 2050 for
Scope 1 and 2 emissions, and a goal to cut Scope 3 emissions by 30%.
utility goes big on renewables. India's largest power
generator, NTPC Ltd., doubled its long-term
commitment to renewables, promising to build 60 GW by 2032, up from a 32 GW
goal it announced last year.
closes case against Dakota Access, for now. A U.S.
district court closed a long-running case against the Dakota Access oil
pipeline on Tuesday, but allowed for Native American tribes and other opponents
of the line to file additional actions against it, according to Reuters.
goes all-in on electric. Honda Motor Co. has become
the first of Japan's automakers to state publicly it will phase out sales of
gasoline-powered cars completely, setting 2040 as the goal
increase in fracking crews. Even a more than 400% jump
in the number of fracking crews working the U.S. shale patch isn't enough to
send oil output soaring, according to Bloomberg.
infrastructure in Europe leaking methane. The potent
greenhouse gas methane is spewing out of natural gas infrastructure across the
European Union because of leaks and venting, video footage made available
to Reuters shows.
Corps to review Line 5. The U.S. Army Corps of
Engineers said Wednesday it
would conduct an extensive review of Enbridge Energy's plan to build an oil
pipeline tunnel beneath a Great Lakes channel in Michigan, which could
significantly delay the project.
inventories down, global gas prices rising. A rebound
in demand for gas and LNG is pushing up prices, just as heat waves hit parts of
North America and Europe. Now there is a danger of not enough supply to go
around. Prices are up sharply in Europe,
resulting in more coal burned.
to tighten carbon market. The EU is set to remove some
allowances in its carbon market in an effort to slash emissions.
The decision is still in flux and will be part of a suite of new policies to be
revealed in mid-July, but the move could raise the cost of carbon, pushing out
coal and imposing higher costs on gas.
companies see shortfall by 2023. A new Dallas
Fed survey finds that three
out of four oil and gas industry executives see a global supply shortfall by
win at Supreme Court. Oil refiners won a major court
case at the Supreme Court regarding federal biofuels blending requirements. The
court said that the EPA has
broad authority to issue waivers to refiners.
The post Can Anything Halt
This Oil Price Rally? first appeared in Oilprice.com on June 25, 2021.
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