Saturday, October 03, 2020 /07:00
AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice
Both the President and
First Lady of the United States have tested positive for COVID-19 on a day when
Brent oil prices crash below $40 and the U.S. rig count climbed.
Friday, October 2nd, 2020
Crude prices fell on
Friday following news that President Donald Trump tested positive for the
coronavirus. Broader equities also tumbled. As of midday trading, Brent was
down more than 4 percent, dipping below $40 per barrel.
companies did poorly, but executives got paid. A Wall
Street Journal analysis found
that the median pay for executives of U.S. oil and gas companies rose for four
consecutive years to $13 million in 2019, up from $9.9 million in 2015. Over
that time period, median shareholder returns fell 35 percent. Energy was the
worst-performing sector in the S&P 500, but shale CEOs received larger
raises last year than in all but two of the 11 major industries analyzed.
Natural gas faces long-term investment risk. A combination of legal challenges to natural gas
pipelines, policies aimed at reducing emissions, and public scrutiny over
natural gas could lead to a "measured reduction" in natural gas demand over the
next two to three decades, according to a new report from Moody's Investor
Relations. "We're raising the flag," Ryan Wobbrock, vice president and senior
credit officer at Moody's Investors Service Inc. and the lead analyst on the
report, told E&E News. "We're talking about a multidecade horizon of risk."
gas prices could soar. The highly volatile U.S. natural
gas benchmark prices are set to trend higher in
the coming months amid lower domestic production, higher demand in the winter,
and recovering global gas prices in Europe and Asia. Henry Hub prices have been
volatile over the past few weeks, but have firmed up at around $2.50/MMBtu,
sharply higher than levels from just a few months ago.
stock falls on likely dim Q3 numbers. In an SEC filing on
Thursday, ExxonMobil (NYSE: XOM) provided a
Q3 earnings considerations update of its expectations for the third-quarter
results relative to the second quarter. On Friday, Exxon's share price fell
roughly 2 percent, dipping to $32.47 per share, nearing a multi-decade low hit
earlier this year.
considers $60 billion takeover of Duke Energy. NextEra Energy
(NYSE: NEE) recently approached Duke Energy
(NYSE: DUK), exploring what would be a $60 billion combination
of two major utilities.
Petroleum files for bankruptcy. Oasis
Petroleum (NASDAQ: OAS) filed for
bankruptcy on Wednesday, the latest driller to fall victim to the
concerns continue. U.S. gasoline demand remained flat for
most of the third quarter, undercutting hopes of a rebound. "It's hard to paint
the bullish demand story for energy in the short termâ€¦I just don't see
it," said Jennifer
Rowland, senior energy analyst for Edward Jones. "Instead, I see all the
traders doubt OPEC+ increases production. OPEC+ is
scheduled to further unwind production cuts beginning in January, adding 2 mb/d
back onto the market. But some traders doubt that the group will follow through
due to weak demand. "I don't think OPEC will increase production in January...If
they do, the market will test them to the downside," Pierre Andurand, founder
and chief investment office at Andurand Capital, told the
FT Global Commodities Summit.
signs executive order on rare earths. US. President Donald
Trump has signed an
executive order declaring a national emergency in the mining industry, a move
that seeks to curb the country's reliance on rare earths in his latest bid to
end China's control of the market.
round of industry layoffs. Marathon
Petroleum (NYSE: MPC) began cutting jobs
on Tuesday, with about 12 percent of its workforce set to be let go. Royal Dutch
Shell (NYSE: RDS.A) said it would eliminate 9,000
jobs. Chevron (NYSE: CVX) and ExxonMobil
(NYSE: XOM) are in the process of restructuring.
doesn't see peak demand until 2030. While BP (NYSE: BP) said
that the world likely already passed peak oil demand, French oil giant Total (NYSE:
TOT) said in a new report that
peak demand remains a decade away. Total said that it would boost spending on
renewables to $3 billion annually by then and that it would cut sales of
gasoline and diesel by 30 percent.
cancels permit for gas storage. Ohio environmental
regulators have canceled key
permits needed for an underground natural gas liquids storage facility, dimming
hopes that the region will become a major natural gas liquids storage hub that
would bolster the buildout of a broader petrochemical hub.
wells could leave billions of dollars to taxpayers. U.S.
taxpayers could be on the hook for tens or even hundreds of billions of dollars
in clean up costs for abandoned wells as a growing number of producers collapse
into bankruptcy, according to a new report from Carbon Tracker.
gives greenlight to Nord Stream 2. Denmark gave the go-ahead to
the Nord Stream 2 pipeline, boosting a project that is more than 90 percent
complete, but that has been held up recently because of U.S. sanctions and a
backlash over the suspected poisoning of a Russian opposition leader by the
approves $5 billion LNG project. Vietnamese city
Haiphong approved of
a $5 billion LNG project to be developed by ExxonMobil
to open up Atlantic Coast for drilling on brink of collapse. The
Trump administration's efforts to open up the Atlantic to offshore oil and gas
exploration could collapse as permits for seismic testing by four companies are
set to expire without
billion in asset sales could be difficult to pull off. Large
oil and gas companies have proposed as much as $110 billion in asset sales in an effort to cut back on debt, but finding
buyers could prove tricky. "This is not a very good time to sell assets," Total (NYSE:
TOT) CEO Patrick Pouyanne said on Wednesday.
The post Oil Tumbles As Trump Tests Positive first appeared in Oilprice.com on October 02, 2020.
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