Frontline's Earnings Surge on Demand for Oil Storage
Oil tanker group Frontline reported a big jump in second-quarter earnings on Thursday as energy traders paid to store crude that went unsold amid the COVID-19 pandemic, the company said on Thursday.Frontline's April-June adjusted net profit rose to $206.1 million from a year-ago $4.2 million, topping a forecast of $203.3 million in a Refinitiv SmartEstimate poll of analysts."Our results for the first half of 2020 are the strongest in more than 10 years," Chief Executive Robert…
Work from Home: Energy Traders Swap Shouts for Babies, Barking Dogs
SINGAPORE, March 24 -- From banks of screens and giant phones in the office, energy traders worldwide are adapting to a laptop in the bedroom -- and it's going surprisingly well.Working from home has become the new norm in the oil trading hubs of Singapore, London and New York as governments encourage physical distancing to curb the spread of coronavirus.While some energy companies have long had facilities in place to allow off-site access to trading platforms and other technology…
U.S. LNG Shipments Fall to Six-Month Nadir
U.S. shipments of liquefied natural gas are expected to fall to their lowest level in six months in April, after a leading U.S. supplier shut units for maintenance at a time when a glut of supply has driven some worldwide prices to near three-year lows.Based on exports through April 10, the United States is on track to sell roughly 91.5 billion cubic feet per day (bcfd) of natural gas as LNG, which would be the lowest since October. That compares with an estimated record 139.8 bcfd shipped in March…
First LNG Export Cargo Departs Cove Point LNG
The Gemmata liquefied natural gas tanker left Dominion Energy Inc's Cove Point LNG export facility in Maryland early Friday, likely carrying the first export cargo from the facility that was expected to enter service in March, according to Reuters shipping data and energy traders. Officials at Dominion were not immediately available for comment. When the Gemmata docked at Cove Point earlier this week, analysts said it would likely be the first vessel to pick up fuel from the facility since the tanker came from Spain - a non-LNG exporting country - with less than a full cargo. Dominion has spent about $4 billion to add export facilities at Cove Point, long an LNG import terminal on the Chesapeake Bay.
DNV GL Rolls Out Forecasting Platform
DNV GL has announced its launch of Forecaster NOW, the industry’s first forecast on-demand web portal with e-commerce enabled transactions. Forecaster NOW is part of a suite of DNV GL subscription-based short-term forecasting services which also includes: Forecaster Live, Forecaster Plus and Forecaster Solutions. “Power grids and markets will continue their rapid transformation to a low carbon system,” said Craig Collier, head of forecasting for the Americas at DNV GL. Forecaster NOW provides users with on-demand forecasts of select power markets with hourly resolution to seven days. Easily accessible on the web, Forecaster NOW aims to provide energy traders, plant operators and other stakeholders with immediate estimates of future wind and solar plant energy production.
Qatargas, RWE Ink SPA Deal for LNG Deliveries
Qatargas, the World’s Premier LNG Company, today announced a flexible Sale and Purchase Agreement (SPA) with RWE Supply Trading (RWEST), a leading European electricity and gas company. Qatargas will deliver up to 1.1 million tonnes of Liquefied Natural Gas (LNG) per annum to RWEST in North West Europe for seven and a half years. Saad Sherida Al-Kaabi, Qatar Petroleum President and Chief Executive Officer and Chairman of Qatargas Board of Directors, said: “Qatargas is committed to providing reliable, clean energy to consumers all over the world. This new milestone underscores our commitment to building new partnerships with leading global companies.
US Oil Drillers Add Rigs for First Week in Five
U.S. energy firms this week added oil rigs for the first time in the last five weeks, data showed on Friday, despite continued weak crude prices. Drillers added 17 oil rigs in the week ended Dec. 18, bringing the total rig count up to 541, oil services company Baker Hughes Inc said in its closely followed report. That is about a third of the 1,536 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 151 oil rigs. The additions this week showed that at least some drillers were willing to start drilling again even with U.S. oil prices trading below $40 a barrel in hopes of higher prices in the future. U.S.
US Oil Drillers Cut Rigs for 14th Week in 15
U.S. energy firms this week cut oil rigs for a 14th week in the last 15, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad. Drillers removed 21 oil rigs in the week ended Dec. 11, bringing the total rig count down to 524, the least since April 2010, oil services company Baker Hughes Inc said in its closely followed report. The decline was the sharpest since October. That decrease brings the total rig count down to about a third of the 1,546 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 130 oil rigs. U.S. crude oil futures averaged $37 a barrel so far this week, down from $41 last week. On Friday, U.S.
US Oil Rigs Cut for 13th Week in 14
U.S. energy firms this week cut oil rigs for the 13th week in the last 14, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad. On Friday, OPEC decided to keep production near record highs despite depressed prices, as a way to boost market share by forcing rivals to reduce output. Drillers removed 10 oil rigs in the week ended Dec. 4, bringing the total rig count down to 545, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report. That decrease brings the total rig count down to about a third of the 1,575 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 120 oil rigs. U.S. oil futures averaged $41 a barrel so far this week, down from $42 last week.
US Oil Drillers Add Rigs for First Week in 11
U.S. energy firms this week added oil rigs for the first week in 11, data showed on Friday, despite continued weak crude prices. Drillers added 2 oil rigs in the week ended Nov. 13, bringing the total rig count up to 574, oil services company Baker Hughes Inc said in its closely followed report. That total is about a third of the 1,578 oil rigs operating in same week a year ago. Over the prior 10 weeks, drillers cut 103 oil rigs. The additions this week showed that at least some drillers were willing to start drilling again even with U.S. oil prices trading in the $40s a barrel in hopes of higher prices in the future. U.S. oil futures averaged $43 a barrel so far this week, down from $46 last week.
Supertankers Buying Spree to Beat Oil Glut
Some of the world’s largest oil traders are reportedly hiring supertankers in a possible attempt to stockpile oil supplies following the plunge in world prices. Trading firms including Vitol, Trafigura and energy major Shell have all booked crude tankers for up to 12 months, Reuters said, quoting freight brokers and shipping sources. These companies have booked crude tankers for up to 12 months - taking advantage of some cheaper rates of hire. The idea is that by effectively parking large tankers full of oil offshore, oil owners can take advantage of cheap supplies and simply wait for prices to regain some strength. Costs have plunged more than 50% in the past six months as a result of a glut in supply and fears for world economic growth.
U.S. Merchant Bank Buys Aging Newfoundland Refinery
A New York-based commodities merchant bank run by veteran energy traders, Neal Shear and Kaushik Amin, announced on Friday plans to buy the aging Come by Chance refinery in Newfoundland from South Korea's state-run oil company. Korea National Oil Corp said it will sell the 115,000-barrel-per-day refinery to SilverRange Financial Partners LLC for an undisclosed price following a months-long search to find a buyer. The deal also includes 53 gas stations and convenience stores. SilverRange is a New York-based merchant bank focused on energy and natural resources owned by SilverPeak Partners, a real estate fund with over $12 billion in assets under management, according to its website.
BG's Singapore Move Seen Cutting Big UK Tax Bill
When BG Group Plc announced last week it was shifting the headquarters of its oil and liquefied natural gas (LNG) trading operation to Singapore from Britain, it said the aim was to get closer to its customers. Analysts and consultants agreed that the growing importance of Japanese and Korean utilities in the LNG market meant the move would have clear logistical and commercial benefits. But they also said another motivation was likely at play: tax. "Tax is always a factor," said Bob Piller, a Swiss-based energy trading consultant who previously worked for commodities giant Vitol.
The U.S. Gulf Market: When Will It Turn Around?
Discussions around our office and with various clients usually entail an exchange of anecdotal information believed to explain the current situation with the quest to predict when things will turn around. There are a host of different viewpoints, most seemingly relevant, but no one satisfactory answer. In previous downturns in the offshore service sector, there was usually a fairly clear understanding embraced by most of why things were slow. This downturn is more difficult to understand. Back in 1998 when the Asian financial crisis impacted oil prices, it was easy to see why E&P fell. This downturn also affected most oil fields around the world about the same. The price of oil was too low to drill new wells and upgrade production at a profit.