INDUSTRY NEWS
Platts Survey: Brent Oil Price To Average $75 Next Year
On the supply side, the key reason for the banks to see Brent Crude prices recovering from the current $63 a barrel is the expectation that OPEC will announce a production cut at its meeting in early December—of 1 million bpd or even more—to support oil prices, prevent a new glut, and drive the price of oil back into the $70s.
The Oil Price Is Now Controlled By Just Three Men
OPEC has lost what control of the oil market it ever had. The actions (or tweets) of three men — Presidents Donald Trump and Vladimir Putin and Crown Prince Mohammed Bin Salman — will determine the course of oil prices in 2019 and beyond. But of course they each want different things.
Permian shale companies pledge $100M to West Texas, New Mexico
Seventeen energy companies operating in West Texas' booming Permian Basin said they're pledging more than $100 million to help improve roads, schools, health care, housing and workforce training.
Corpus Christi LNG Export Facility Starts Production
According to Cheniere’s website, the Corpus Christi Liquefaction project is being designed for five trains with a total production capacity of up to 22.5 million tonnes per annum (mtpa) of LNG. All six trains of the Sabine Pass Liquefaction facility will be capable of producing up to 27 mtpa of LNG.
Global economy will rely on U.S. shale to meet oil demand growth: IEA
As much as 75 percent of global oil production growth could come from the U.S. in the years ahead, meaning increasing volumes of crude would be exported around the world from port hubs in the Houston and Corpus Christi areas.
Federal judge blocks Keystone XL
A federal judge in Montana has blocked the construction of the Keystone XL pipeline after finding the Trump administration had failed to conduct necessary environmental reviews.
Oil Looks Set For A Rapid Bounce
WTI has recently experienced one of its biggest one-month declines in several years, having lost around eighteen percent since hitting a multi-year high of $76.90 last month. There has been a perfect storm for sellers, with factors on both the supply and demand side of the pricing equation putting downward pressure on crude. However, there are indications that things are about to turn and while that high is probably out of reach for now, the bounce back should be sharp and could be very profitable.
Oil Looks Set For A Rapid Bounce
WTI has recently experienced one of its biggest one-month declines in several years, having lost around eighteen percent since hitting a multi-year high of $76.90 last month. There has been a perfect storm for sellers, with factors on both the supply and demand side of the pricing equation putting downward pressure on crude. However, there are indications that things are about to turn and while that high is probably out of reach for now, the bounce back should be sharp and could be very profitable.
Natural Gas Prices Spike On The Back Of Bullish Weather
You have to feel for the natural gas bears today. With December contracts ripping 7.58% today to $3.533/MMBtu, the sudden gap higher in trading was the result of another early November cold blast. This would make the bullish weather calendar streak at eight months straight. Ouch.
Trudeau’s Reforms Won’t Break Pipeline Logjam, Oil Groups Warn
The bottom has fallen out of Canadian heavy crude prices, with their discount relative to the U.S. benchmark near a record amid a supply glut and persistent transport constraints. Trudeau’s government, meanwhile, is both trying to complete a pipeline expansion project it bought this spring and pass a series of legislative reforms on the approval process for major projects.
Always Evolving Global Oil Technologies And Demand
Oil's progress is without stop. Petroleum fuels, such as gasoline and diesel fuel, have proven superior to other forms of energy in numerous ways, and have enabled the emergence of more efficient prime movers.
Iran starts oil sales to private exporters to beat U.S. sanctions
Iran began selling crude oil to private companies for export on Sunday, part of a strategy to counter U.S. sanctions which come into effect on Nov. 4 and aim to stop the country’s key crude exports, the oil ministry’s news website SHANA reported.
What’s Behind The Latest Oil Price Plunge?
The mercurial nature of the oil market has flipped the mood in the past two weeks from hysterical expectations of severely reduced supply from Iran to concerns over the pace of global economic and oil demand growth.
Permian Refinery Project Gets EPC Contractor
The developer of a grassroots Permian Basin oil refinery on Monday named the overall engineering, procurement and construction (EPC) contractor to complete detailed engineering and construct the facility, which will be located in Pecos County near Fort Stockton, Texas.
US crude rises 5 cents, settling at $69.17, as Saudis pledge to boost output
Oil futures were little changed on Monday after paring earlier losses despite Saudi Arabia's pledge to raise crude production to a record high, two weeks before U.S. sanctions potentially choke off Iranian supplies.
Are Natural Gas Prices Set To Spike?
Natural gas storage is at record low levels but prices are falling going into winter heating season. Markets seem to be betting that wellhead supply will be sufficient to cover demand this winter. That may be but at what gas prices? This is a game of natural gas risky business.
Texas oil production to grow by 68,000 next month
The Permian increased production faster than expected in October and is projected to grow by nearly 40,000 barrels more than previously estimated, the Energy Department said. By the end of the month, output from the prolific shale play is expected to be just shy of 3.5 million barrels a day.
The Oil Markets Are At A Confusing Crossroads
Not only does the IEA not subscribe to peak supply, but it warns that peak demand may be far off as well. The “drivers of demand remain very powerful,” and consumption is set to continue to climb higher in the years ahead. Transportation will continue to grow, although at a slower pace as electric vehicles begin to take over. But surging petrochemical production and the consumption of plastics will push oil consumption to ever greater heights, the agency believes. Not only did peak supply never arrive, the IEA argues, but “[t]here is no peak in sight for demand either.”
Texas to Mexico natural gas pipeline delayed
Enbridge noted that the delay was due to an inability to test the pipeline due to delays in the completion of the Mexican portion of the pipeline, which connects with the Enbridge section offshore from Brownsville in the Gulf of Mexico. The Mexican portion is being built by Infraestructura Marina de Golfo, a joint venture between the Canadian pipeline and storage company TransCanada and Sempra Energy of San Diego.
Judge Dismisses Charges Against Anti-Pipeline Activists
Minnesota state district judge Robert Tiffany has dismissed charges against three climate change activists who shut down two pipelines operated by Enbridge back in 2016. Although they had reason to be happy with the judge’s decision, the defendants were in fact disappointed: the acquittal happened mid-trial, before they had a chance to use their defense, which would have run along the lines of necessity.