December 31, 2019 /07:59PM / By Tom Kool of
Oilprice.com / Header Image Credit: Oilprice.com
In this week's newsletter, we will take a quick
look at some of the critical figures and data in the energy markets this
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.
Chart of the Week
- In September, the U.S. exported 89,000 bpd of
crude and petroleum products on a net basis, the first time the country had a
positive net export balance since 1973.
- The U.S. had a net import balance of 10 mb/d as recently as a
- The positive trade balance could grow over time due to flat
demand and ongoing increases in domestic production.
- Seadrill (NYSE: SDRL) saw its
share price surge after securing three-year
contract extensions for its AOD II and AOD III jackup rigs with Saudi Aramco.
- Sunpower (NASDAQ: SPWR) to cut 3 percent of its global
workforce in restructuring.
- Chevron (NYSE: CVX) and Royal Dutch
Shell (NYSE: RDS.A) won oil and gas
concessions in offshore Egypt. It was the first-ever offering in the Red
Tuesday December 31, 2019
Oil closes out 2019 on a bullish note, pushed higher by renewed economic
optimism, the OPEC+ cuts and a thawing U.S.-China trading relationship. "Prices
ended the year with optimism close to 70$ /bbl for Brent and we expect them to
stay supported through Q1," OilX chief executive Florian Thaler told Oilprice. "In March all
eyes will remain on OPEC and OPEC+ and whether the action of production
adjustment will be extended further."
exits Haynesville. Royal Dutch Shell (NYSE: RDS.A) sold off its last position
in the Haynesville shale, selling about 55,000 net acres to Castleton
Resources. "The divestment is part of Shell's ongoing strategy to optimize its
shale portfolio and direct capital toward developing our high-margin assets
located in the Permian, as well as in Canada and Argentina," a Shell spokesman
said in a prepared statement.
Leviathan starts up. The massive Leviathan gas field in
offshore Israel finally came online. The $3.6 billion project has been a decade
in the making. Noble Energy and Delek Drilling said the project would double
Israel's gas production, and gas will soon flow to Egypt and Jordan. "Israel is
now an energy powerhouse, able to supply all its energy needs and gaining
energy independence," said Delek Drilling Chief Executive Yossi Abu.
storm U.S. embassy in Iraq. Outraged after U.S. airstrikes
struck an Iranian-backed Iraqi militia over the weekend, protestors broke through the outer
wall of the heavily-fortified U.S. embassy in Baghdad. They did not enter the
main embassy, but the protests are another sign of a deteriorating security
situation in Iraq, which follows on the heels of massive protests in
threatens companies with sanctions on Nord Stream 2. The
U.S. said that any attempt to
hurry up work to complete the Nord Stream 2 pipeline will be met with
sanctions. President Trump recently signed into law new sanctions on any
companies working on the pipeline, although privately, U.S. officials have
admitted that they probably won't be able to stop the project from reaching
Companies must justify fossil fuel investments. The
outgoing governor of the Bank of England, Mark Carney, said that companies and
financial institutions need to justify ongoing investment in fossil fuels. He
also warned that many assets could end up being "worthless" as the world
transitions to renewables. "If we were to burn all those oil and gases, there's
no way we would meet carbon budgets. Up to 80% of coal assets will be stranded,
[and] up to half of developed oil reserves," Carney said. "A question for every
company, every financial institution, every asset manager, pension fund or
insurer: what's your plan?"
secures blocks in Eastern Med. ExxonMobil
(NYSE: XOM) acquired 1.7 million acres in offshore Egypt. "These awards strengthen our exploration portfolio in the Eastern
Mediterranean," said Mike Cousins, senior
vice president of exploration and new ventures at ExxonMobil.
premium comes to an end. The premium paid for deals in the
Permian has decidedly come to an end, Bloomberg reports. Acquisitions in the
Permian were met with investor skepticism this year. "The market does not want
to see large premium deals get done," Steve Trauber, Citigroup Inc.â€™s global
head of energy, told Bloomberg. "The market has
reacted negatively, in some cases violently so, when those deals are announced."
boom running on fumes. Shale wells are not producing as much oil
and gas as previously thought, which raises questions about the industry's
productivity, profitability and the longevity of the drilling boom. Wells
drilled years ago have declined faster than expected, according to a new
did Riyadh agree to restart Neutral Zone? After years
offline, the timing of the decision between Saudi Arabia and Kuwait to push for
a restart of the Neutral Zone oil fields seems odd. But there are two key reasons why Riyadh's
decision makes sense.
- A Bullish
End To The Year For Oil Markets - OIR 271219
- NLNG Takes
Final Decision To Achieve Train 7 Project
Sentiment Keeps Oil Above $60 - OIR 241219
Governors Forum Laud Dangote On Petrochemical Refinery Project
Sentiment Remains Despite Oil Price Dip - OIR 201219
- Oil Prices
Head Higher Despite OPEC Skepticism - OIR 171219
Prices Of PMS, AGO, HHK and Cooking Gas - November 2019
- The Oil
Bulls Are Back Despite Bearish Fundamentals - OIR 131219
- Oando Plc
Announces the Successful Signing of Two Gas Supply Agreements with NLNG
Launches Beneficial Ownership Portal
- OPEC Deal
And Trade War Pause Push Oil Up - OIR 101219