Tuesday, August 20, 2019 /08:09PM / By Tom Kool of Oilprice.com / Header Image Credit: Oilprice.com
Today, we will take a quick look at some of the critical figures and
data in the energy markets this week.
We will then look at some of the key market movers early this week before
providing you with the latest analysis of the top news events taking place in
the global energy complex over the past few days. We hope you enjoy.
- The volume of natural gas
that is flowing to export terminals in the U.S. reached a record high in July,
hitting 6 billion cubic feet per day (bcf/d), or 7 percent of total U.S.
natural gas production, according to the EIA.
- U.S. LNG exports reached a record high 5.2 bcf/d in July.
- Two more LNG export facilities â€“ Elba Island LNG in Georgia
and Freeport LNG in Texas â€“ are set to begin operations within the next two
- Chevron (NYSE: CVX) has
an edge over ExxonMobil (NYSE: XOM) because
of its superior cash position, according to Barclays.
- Range Resources (NYSE: RRC) rose more than
8 percent on Monday after it was upgraded to a Buy rating by MKM Partners. Range
Resources stock was at a year-to-date low prior to Monday, down two-thirds
- Hess (NYSE: HES) has been
the best performing oil and gas company this year, gaining
57 percent year-to-date. The companys discoveries in Guyana, rather than its
U.S. shale footprint, have much to do with the success.
Tuesday August 20, 2019
Oil prices rose slightly on Monday after a Houthi drone attack on a Saudi oil field led to concerns about geopolitical unrest. That trend
reversed on Tuesday however after Secretary of State Mike Pompeo issued harsh
comments about Huawei and the threat of China.
CEOs sell their own stock. An analysis from Raymond
James found that top CEOs at U.S. oil and gas firms have
sold an average of $4 million worth of stock in their own companies over the
past five years, at a time when they talk up their stocks to investors.
flaring rises to 24 percent. Bakken flaring has spiked as production of both oil and gas
rises amid a pipeline bottleneck. Drillers are now flaring roughly 24 percent
of the gas produced in the Bakken, which is twice as high as state limits.
suspends purchases from Venezuela. Chinas CNPC
suspended oil purchases in August from Venezuela following stricter U.S.
sanctions. We were told that China oil will not load any oil in August. We
donâ€™t know what will happen after, a source told Reuters.
to select Lazard Ltd. and Moelis & Co. Bloomberg reports that Saudi Aramco has picked Lazard Ltd. and
Moelis & Co. to advise the company on its IPO.
to join California on fuel economy. In a blow to the
Trump administrationâ€™s efforts to slash fuel economy standards, Mercedes-Benz
is preparing to join four other automakers in agreeing to the stricter fuel
economy standards laid out by California. The New York Times also reported that the policy process within the Trump
administration is in disarray. The balking of top automakers and the internal
disorder could imperil the deregulation effort.
shows signs of easing off trade war. The U.S.
government extended waivers on sanctions on companies doing business with
Huawei, viewed as a conciliatory gesture towards China. Fears of an economic
recession seem to have the Trump administration concerned, and top U.S.
officials have talked up trade negotiations. The Trump administration is also reportedly exploring a payroll tax amid growing
concerns about the economy.
Access draws fire. The Standing Rock Sioux Tribe
has asked a judge to toss out a federal permit for the
Dakota Access pipeline, due to lack of consultation. The issue comes as the
pipelineâ€™s owner, Energy Transfer Partners (NYSE: ETP),
hopes to double the pipelines capacity. Meanwhile, several Democratic presidential
candidates vowed to revoke the pipelineâ€™s permits if they became
well completions decline by 12 percent. The number of
oil and gas wells completed in Texas declined by 12 percent in the first 7 months of 2019
compared to the same period a year earlier. Permits to drill new wells also
declined by 14 percent. Slower activity has been a blow for oilfield services
cuts spending after price controls. Argentine
President Mauricio Macri unveiled a series of stimulus measures last week in
response to a shockingly bad performance in the nations primary. The package
also came in the wake of market gyrations that saw the peso lose roughly 25
percent. President Macri froze fuel prices for three months, a move that is a
huge setback for the oil industry. YPF (NYSE: YPF) said that it would slash spending by $100-$120 million
per month as long as the price controls remain in effect.
idles mine amid poor sand prices. Hi-Crush
(NYSE: HCR) announced plans to halt production at one of its
frac-sand operations in Wisconsin because of decreasing profitability.
tanker heads for Greece. Gibraltar decided to release the seized Iranian tanker, despite
efforts by the U.S., easing some tension between Iran and the UK. The tanker is
destined for Greece. The U.S. warned Greece not to assist the tanker.
industry succeeds in criminalizing protest. Several
oil companies behind the Dakota Access Pipeline and other pipeline projects
have succeeded in pushing through laws at the state level to make pipeline
protests a felony, according to Bloomberg. â€œOil refiners, especially Koch Industries and
Marathon Petroleum, orchestrated this unholy alliance of oil, gas, chemical,
and electric utility companies to crush resistance to polluting industries,â€
Connor Gibson, an investigator with Greenpeace who has tracked the efforts,
climate change good for economy. A new paper from the
National Bureau of Economic Research finds that slashing greenhouse gases will be significantly better
for global GDP than inaction. The paper estimates that abiding by the Paris
Climate agreement will keep GDP losses at 1.07 percent by 2100, while faster
warming could slash global GDP by 7.22 percent.
admin secretly negotiating with Venezuela. The Trump
administration has held secret talks with powerful members of the
Venezuela government. Some officials are seeking assurances that they wonâ€™t
face retribution if they allow Maduro to be removed from power. Venezuelan
officials deny the report.
of diesel cars in freefall in Norway. EVs are eating
into the market share of diesel vehicles in Norway, which are in freefall.
Sales of diesel vehicles have fallen 95 percent over the last six years.
- U.S. Oil
Data Brightens A â€˜Dark Economic Universeâ€™ â€“ OIR 160819
Prices of PMS, AGO, HHK and Cooking Gas â€“ July 2019
- Oil Soars
As The U.S. Delays Trade War Tariffs
- Oil Price
Risk Has Shifted To The Downside
- Oil Markets
On Edge Despite Price Bounce â€“ OIR 090819
Production Slumps To 5-Year Low
Struggles As Markets Rocked By Trade War â€“ OIR 060819
Litres of PMS Imported into Nigeria in Q2 2019 - NBS
Group Lauds Investment Opportunities in Angolaâ€™s Downstream Sector
- Oil Prices
Rebound After A Difficult Day - OIR 020819
- Oil Markets
On Edge Ahead Of Big Week - OIR 300719
- Oil Markets
Struggle For Direction- OIR 260719
- Oil Markets
Ignore The Tanker War- OIR 230719
- Oil Capped
By Shaky Demand Outlook - OIR 190719
- Oil Falls
Back As Iran Risk Factor Fades - OIR 160719
Prices of PMS, AGO, HHK and Cooking Gas â€“ June 2019