Saturday, July 03, 2021
/06: 00 AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice.com
There was some unexpected 11th-hour drama in the OPEC+
meeting, with the members deciding to delay a decision due to disagreements
between some nations.
Friday, July 2nd, 2021
The OPEC+ meeting resulted in some unexpected
11th-hour drama, delaying a decision that was expected on Thursday. Oil
prices slipped on the
But the outcome could still be a bullish one. The size of the proposed
production increase was lower than most analysts had expected, coming in at an
average monthly addition of 400,000 bpd, whereas expectations had been for
500,000 bpd. But there is also a possibility that OPEC+ might not add any
barrels to production. The group meets again on Friday.
delays decision. The UAE delayed a deal as it demanded
a higher production quota. "Negotiations today will be difficult as OPEC+ knows
that if the UAE is allowed to produce from a different base, other members may
protest," Rystad Energy said in a note.
demand back to 90%. India's gasoline consumption
has rebounded to
90% of pre-virus levels as motorists took back to the roads with Covid-19 curbs
caught on tape. An ExxonMobil
(NYSE: XOM) lobbyist was caught on tape suggesting that
its support for a carbon tax was a ploy to head off more restrictive measures.
He also acknowledged that the company supported front groups to muddy the
public perception on climate change. On Friday, CEO Darren Woods wrote in a post
disavowing the comments and reiterating support for certain climate
face higher gas prices. Heading into the holiday
weekend, American motorists face the highest average gasoline
prices in seven years.
lenders take over U.S. shale patch. Banks have started
to cut their exposure
to the U.S. shale patch. While traditional lenders are cutting their losses and
de-risking energy loan portfolios, alternative capital providers are stepping up
to scoop up U.S. energy debt at a discount and take part in debt or equity
transactions that could give them returns sooner than a loan would for a bank.
to phaseout ICE vehicles by 2035. Canada announced
new regulations that
would effectively ban the sale of gasoline and diesel vehicles by 2035.
and partners to invest $4.5 billion in Australian gas. Chevron (NYSE:
CVX), Royal Dutch Shell (NYSE: RDS.A), and ExxonMobil
(NYSE: XOM) will invest another $4.5
billion in Gorgon LNG to keep the supply of gas going.
oil sands expected to grow. The 590,000 b/d Trans
Mountain Pipeline expansion and the 370,000 b/d Line 3 expansion by Enbridge (NYSE:
ENB) opens up room for the increase in Canadian oil sands
production, according to IHS Markit. The 10-year forecast still calls for 3.6 million
b/d, up 22% from the fully restored, post-Covid-19 pace of 2.95 million b/d.
producers want higher prices for "green gas." U.S.
natural gas drillers are trying to market "green
gas" or "responsibly produced" gas for a markup of around 5%, but so far there
are few takers.
underestimating methane leaks. The Environmental
Protection Agency (EPA) has underestimated methane emissions caused by oil and
gas production by as much as 76 percent, according to a new study.
need $500 billion to make grid resilient. The heat
dome led to blackouts in the Pacific Northwest, in a preview of what is to come
with rising temperatures. One study says that U.S.
utilities need to invest $500 billion to upgrade the electric grid and harden
it for a warming world.
trillion needed for renewables. IRENA, based in Abu
Dhabi, says that private
lenders and capital markets will need a fourfold increase in funding for
renewables to as much as $3.2 trillion this decade.
sales on the rise in Europe. Roughly 11% of cars sold in Europe were
an EV or hybrid in 2020, a sharp increase from 3.5% in 2019.
LNG optimistic on FID. Freeport LNG could sign sufficient
long-term contracts by the end of the year to sanction a proposed fourth
liquefaction train at its Texas export facility, according to S&P Global Platts.
considers sale of some Permian assets. Chevron (NYSE:
CVX) is considering a sale of two
collections of Permian assets for as much as $1 billion.
EDF and Ã˜rsted win offshore wind in NJ. NJ awarded approvals for
2.6 GW of offshore wind this week, handing out permits to Shell New
Energies US and EDF Renewables North America,
as well as Ã˜rsted.
plans to exit California venture with Exxon. Royal Dutch
Shell (NYSE: RDS.A) plans to exit its
California-based oil and gas joint venture with ExxonMobil
(NYSE: XOM). The unit produces 125,000 bpd.
gas prices soar. Global prices for natural gas are
at multi-year highs, with high temperatures driving up demand for power
generation in the northern hemisphere for air conditioning and as traders in
some regions replenish stocks ahead of winter. Eurpoean gas markers TTF hit
multi-year highs, as well as the important JKM marker in Asia, which jumped
of EV metals. Reuters does a deep dive
into the long-term trajectory of metals markets as the EV boom accelerates.
oil industry bouncing back. The growing likelihood of
the socialist candidate winning has sent a shudder through Peru's political
establishment, the business community as well as mining and oil industries.
There are signs, however, despite the
political turmoil Peru's petroleum industry is recovering.
The post Oil Prices
Fall As OPEC+ Struggles For Consensus first appeared in Oilprice.com on July 02, 2021.
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