Wednesday,
February 21, 2018/ 07.46 AM/ Oilprice.com
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Chart of the Week
- The price of solar modules continues to fall, having
dropped more than 40 percent since 2012.
- The average module price in the U.S. stood at about $1.15
per watt in 2012, a figure that declined to $0.72/W by 2016, according to the EIA.
- By the end of 2017, the global spot price for
monocrystalline solar modules fell to just $0.45/W.
Market Movers
• ExxonMobil (NYSE: XOM), Total SA
(NYSE: TOT), and Oil Search (OTCPK: OISHF) are
poised to greenlight more than $6 billion towards and LNG export
project in Papua New Guinea.
• Eni’s (NYSE: E) profit surged in the fourth quarter, and
2017 production surged to a high of 1.82 million barrels of oil equivalent per
day. Quarterly profits jumped to 2 billion euros, up from 1.3 billion euros a
year earlier.
• Hi-Crush Partners (NYSE: HCLP) reported earnings per share of
$0.47, fourth quarter revenue of $216.5 million on sales of 2.985 million tons
of frac sand. That compares to revenues of $167.6 million on sales of 2.456
million tons of sand a year earlier.
Tuesday February 20, 2018
Hedge
funds slash bullish bets. Hedge funds and other money
managers reduced their bullish bets on crude oil in the second week of
February, which coincided with a dip in oil prices. After building up a near
record bullish position, investors “cut their combined net long position in the
six most important petroleum futures and options contracts by the equivalent of
152 million barrels in the week to Feb. 13.,” according to Reuters. It was the largest
reduction in nine months. With the retreat in prices and the liquidation of
some of the long bets, there is now a more balanced positioning from hedge
funds and other money managers, reducing the risk of a further price
correction.
U.S.
exports rise…so does WTI. WTI is receiving a boost relative
to other benchmarks because of a spike in U.S. exports over the past year. New
pipelines have better connected oil from Texas shale fields to the Gulf Coast,
allowing more cargo to be shipped overseas. That, in turn, has helped drain
stockpiles in Cushing, OK, helping to push up WTI. The American benchmark
recently traded at a premium to the Dubai
benchmark for the first time in over a year. Exports are likely to pick up
after the start of operations at the LOOP
export facility in Louisiana, which can handle very large crude carriers
(VLCCs).
Oil
majors diversify into electricity. As the FT reports, several European oil
majors are laying the groundwork to build up their portfolios in electricity
generation, diversifying just a bit away from oil and gas as they prepare for a
low-carbon future. Royal Dutch Shell (NYSE: RDS.A) announced plans to
purchase First Utility, based in the UK. Shell also purchased Silicon Ranch
Corp. last month, a U.S. solar company. Total (NYSE: TOT) is building up
electricity generating assets in France. “Any piece of energy demand that can
be electrified, needs to be electrified,” Maarten Wetselaar, head of Shell’s
“new energy” strategy, told the FT.
UAE
energy minister says OPEC to discuss long-term cooperation.
Coming on the heels of reports last week that OPEC was looking into a more
permanent cooperative arrangement with Russia and other non-OPEC countries, the
energy minister from the UAE said that those negotiations could be held at
OPEC’s official meeting in June. “I think the potential is huge for
cooperation, whether it is focused on the oil sector, or the broader energy
sector,” Suhail al-Mazroui, UAE energy minister and current OPEC president,
told Reuters. “We look forward to put
something to the ministers hopefully the next time we see the whole group
getting together…hopefully in June.”
Israel
and Egypt move forward on gas deal. After months of talks,
a deal is inching forward that would see Israel export natural gas to Egypt. Noble Energy
(NYSE: NBL) and Delek Drilling (TLV: TMRP) said they will export 64 billion
cubic meters of natural gas over 10 years to Dolphinus Holdings Ltd. of
Egypt. The deal bolsters the export position of both countries, allowing
Israeli gas to head to Egypt and also strengthening the case for Egypt to
become a gas hub. Egypt as idle LNG export facilities that could be brought
back into operation and it also is benefitting from the recent startup of Eni’s (NYSE:
E) Zohr gas field.
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