Week 56: Natural Gas Report

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Week 56: Natural Gas Report




This week, US energy companies have a ten-week consecutive supplement of oil and natural gas systems, with the plant counting for the sixth straight month in January, with monthly oil production rebounding in the face of rising price.

The oil & gas plants, an early predictor of potential production, grew to its highest since May from six to 384 per week to January 29. Since June 2018, the 10-week gain is the longest rise.

This figure is still 406 units, or 51%, below last year, despite the increases in recent months. But since a record low of 244 in August, the total number has soared.

 

Reuters reported that Saudi Arabia, top oil exporter, will reduce their official sale price (OSP) for asian purchasers in March, first reduction in three months, follow-up on dropping benchmark rates, and poor demand triggered by coronavirus.

DME Oman's Dubai premium dropped 23 cents last January, since the appetites of Asian refiners for raw materials have been squeezed by seasonal maintenance and requirement insecurities. Refiners in China, the second largest world oil user, purchased crude oil in January and lowered Chinese-oriented grades as the Russian ESPO Blend crude since September last year.

 

7.2 million mt/year plant in Idku, a total of 7 freight have been shipped, according to the S&P Global Platts Analytics and Platts trading tools cFlow, since the beginning of January.

This represents just six shipments shipped in the first quarter of 2020, and only one shipment between the end of the first quarter and the end of October.

Egypt is among a small number of LNG exporters who had to cut back on production in mid-2020, due to the low prices. In recent months, however, the price of JKM has steadily increased.

 

Reuters reported that this year, global oil demand is expected to increase by almost 7 percent, boosted by faster delivery of vaccinations and a better economic outlook.

Total demand for liquids is forecast to average 96.7 million barrels per day (bpd) in 2021, 6.3 million bpd higher than last year, when an unprecedented oil demand shock was triggered by the Covid-19 pandemic.

The speed and intensity of global demand recovery depends on the rate of distribution and global economic recovery of Covid-19 vaccines.

 

 

Africa Oil+gas reported that Conoil Manufacturing, an independent E&P of Nigeria belongs to the billionaire Mike Adenuga, paid a deposit in Oil Mining Leases (OMLs) 86 and 88 for its acquisition of Chevron Corp.'s 40 percent equity. Conoil bids for blocks that lie adjacent to some of its own generating assets for $250 million. For more than six years Chevron attempted to dispose of the shallow waters of the new Niger Delta basin.

They belong to the five Nigerian tracts which were acquired 22 years ago during the Chevron-Texaco merger. But in the last 12 months things have just resurrected. At first, in May 2020 bidders expected their financial and operational capacities to be completely communicated by the end of April 2020.

On Wednesday, Reuters reported that Iraq has signed an agreement with Total to implement "large and promising projects" in the Near East, particularly with regard to the utilization and clean power of natural gas, its Ministry of Petroleum.

Total has been involved in Iraq for almost a century, since the 1920s, in oil and gas exploration and development. In the Halfaya oil field, currently in production, located in Missan province in southern Iraq, the French oil major has a 22.5 percent stake.

Oil Minister Ihsan Abdul-Jabbar Ismail and Pouyanné signed the document in Baghdad.

Reuters reported that the extension of the Trans Mountain pipeline operated by the government of Canada assumes greater significance for the oil sector after the cancellation of rival Keystone XL limited potential options for carrying crude oil.

The government owned Trans Mountain Corp. is investing C$12.6 billion ($9.9 billion) to almost triple production to 890,000 barrels per day (bpd), an increase of 14 percent from the current total Canadian capacity.

Joe Dion, chief executive of the Western Indigenous Pipeline Alliance, one of many First Nations organizations involved in purchasing Trans Mountain, said this pipeline is much more valuable now.

 

Bloomberg reported that the International energy firms in Nigeria are concerned about the barrier to investment in new offshore projects under the country's long-lost legislation on the oil industry.

Nigeria's total crude production is at least half offshore oilfield, which is leading to offsetting decreased output from mature onshore reserves. However, in the face of legislative and regulatory uncertainty, recent research has remained unfolded.

 

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