Oman: Gas Production to Surpass Oil by 2023
Oman’s gas production levels are set to surpass oil by 2023 thanks to an impressive surge in the development of gas fields in the sultanate, according to Rystad Energy, the independent energy research and consulting firm headquartered in Norway.“Gas is on the rise in the Arab country on the southeastern coast of the Arabian Peninsula in Western Asia, and this transition is very timely. Oil output declines over the last two years may indicate a point of no return for Omani oil…
US Shale Firms Cut CapEx, Up Production
U.S. shale energy companies are cutting their spending levels in 2019, but they're still planning on increased oil and gas output."US shale companies expect to deliver an average of 15% growth in oil production in 2019 vs. 2018. At the same time, operators say they will cut capital spending by 5% this year," said an analysis from Rystad Energy.The energy research and business intelligence company has analyzed the recently released earnings reports for the fourth quarter of 2018 from 45 US operators…
Global Gas Output Hit Record in a Decade in 2018
The oil and gas industry achieved a net production increase of 164bn cubic metres (bcm), which represents the highest production growth since 2010, according to research by Rystad Energy.“Year-on-year growth was clearly driven by North America, which accounted for 71 bcm, followed by the Middle East with 39 bcm. Europe was the only region that experienced a reduction in 2018,” Rystad Energy partner Espen Erlingsen said.Rystad Energy forecasts the supply surge will continue in the coming years.
Hoegh LNG Vessel to Leave Egypt Before Weekend
Egypt's petroleum minister said on Tuesday that a regasification vessel would leave Egypt by the end of the week, a day after Norway's Hoegh LNG said Egypt was to give up one of its two floating liquefied natural gas (LNG) terminals.The minister, Tarek El Molla, told Reuters the other vessel would stay behind as part of the petroleum ministry's strategy to maintain energy supplies for the country.Hoegh said Egypt Natural Gas Holding (EGAS), having decided to end its charter early…
Hurricane Michael Races Northeast, Leaving Devastation in Florida
Hurricane Michael, the third most powerful storm ever to strike the U.S. mainland, headed northeast on Thursday, weakened but still set to soak Georgia and the Carolinas after devastating the Florida Panhandle.By 6 AM on Thursday, heavy rain and wind had reached as far north as Charlotte, North Carolina and the Western North Carolina mountains. The center of the storm was located over Augusta, Georgia, moving north rapidly at more than 20 MPH in a north / northeast heading. Charlotte…
U.S. East Coast Ports Await Yet Another Storm
Hurricane Michael, now a Category 4 storm, will be the second hurricane in two months to significantly affect ports on the U.S. eastern seaboard. Eastern North Carolina in particular is only now recovering from Florence.The U.S. Coast Guard has set conditions X-Ray for ports in Georgia and South Carolina in preparation for Hurricane Michael. The storm is now expected to make landfall by Wednesday afternoon. While gale force winds are expected within the next 48 hours, these ports can remain open to commercial traffic.
Bangladesh Shelves LNG Projects as Others Ramp Up
Bangladesh has put aside two smaller liquefied natural gas (LNG) projects with trading houses Gunvor and Vitol to focus on two larger LNG import terminals, one of which is already in use while the second will start up in March.Bangladesh has turned to LNG to offset falling domestic gas output to feed industrial demand and electricity generation in a nation of 160 million people where a third have no power supply.It aims to import 17 million tonnes a year of LNG by 2025, which in today's terms would make it a top five importer.
US Gulf Oil Output Takes a Hit from Storm
Tropical Storm Gordon forced a cut of 9.36 percent of crude oil production in U.S.-regulated areas of the Gulf of Mexico, slightly more than Tuesday, the U.S.
Storm Gordon Starts Kicking Up Waves on U.S. Gulf Coast
Waves began to batter parts of the U.S. Gulf Coast on Tuesday as the region felt the first hit of Tropical Storm Gordon, which is expected to become a hurricane before it comes ashore with high winds and heavy rain, forecasters said.The storm also caused a jump in global oil prices after the evacuation of two oil platforms in the Gulf of Mexico.Gordon was due to come ashore late on Tuesday near the border between Louisiana and Mississippi, and drop as much as 12 inches (30 cm) of rain in areas still recovering from last year's hurricanes…
For the Global LNG Industry, is the FSRU Honeymoon Over?
A giant vessel docked at the port of Moheshkhali in Bangladesh two months ago, propelling the populous but poor nation into the fast-expanding club of liquefied natural gas (LNG) buyers.The Excellence is the latest floating storage and regasification unit (FSRU), a type of carrier that has proliferated since 2015 as many countries switch to a cleaner and increasingly cheaper fuel than oil and coal.But the young FSRU industry has been beset by more project delays than successes in the past 12 months as fluctuating energy prices…
Gas to Overtake Oil as Primary Energy Source by Mid-2030s
Nearly two-thirds (64%) of oil and gas sector leaders expect to increase or sustain spending on gas projects in 2018, as the sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s. Confidence in the case for gas is growing, according to a survey by DNV GL, the technical advisor to the industry. The vast majority (86%) of the 813 senior industry professionals surveyed agree that gas - the least carbon-intensive fossil fuel - will play an increasingly important role in the global energy mix over the next decade, up from 77% last year.
Record-size US Offshore Oil Lease Sale Draws Modest Bidding
Oil and gas drillers bid modestly on Gulf of Mexico acreage in the largest lease sale in American history on Wednesday, dealing a setback to the Trump administration's efforts to rapidly pump up investment in the region. The Interior Department had offered up a record 77 million acres (31.2 million hectares) for development in the Gulf with discounted royalty rates on the shallower tracts as part of a broader effort by President Donald Trump's administration to ramp up U.S. fossil fuels output.
Asia VLCC Rates Fall to Four-year Low
Freight rates for very large crude carriers (VLCCs) on Asian routes show little sign of reviving although Hurricane Harvey, which threatens to ravage the U.S. Gulf coast oil refining industry over the weekend, could provide a fillip, brokers said. That came as average weighted VLCC freight rates on all routes sank to their lowest in four years this week to around $9,000 per day. Rates are even lower on some routes after CPC fixed a VLCC late Thursday for a trip from the Middle East to Taiwan at 36.75 on the Worldscale measure and S-Oil fixed a VLCC to South Korea at W36.
Oil Firm Evacuate Workers as Storm Approaches Texas
Oil companies evacuate workers as storm takes aim at Texas. Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil announced they were curbing some oil and gas output on Wednesday at facilities in the Gulf of Mexico ahead of a storm expected to hit the Texas coast later this week. The U.S. National Hurricane Center (NHC) issued a hurricane watch Wednesday for much of the Texas coast, calling for slow-moving Tropical Depression Harvey to intensify as it nears landfall. Shell said it was evacuating all personnel from the roughly 100…
Tropical Storm Harvey heads for Texas, May Strengthen
The Texas Gulf Coast was getting ready for the tropical storm Harvey to make landfall by Friday, bringing with it strong winds, heavy flooding and torrential rains. Hurricane, tropical storm and storm surge watches were in effect for counties on the eastern coast of Texas as the storm moved across the Gulf of Mexico, where it may strengthen into a hurricane. Winds up to 75 mph (120 kmh) and 15 inches of rain (40 cm) were forecast, according to the National Weather Service. "Now is the time to check your emergency plan and take necessary actions to secure your home or business. Deliberate efforts should be under way to protect life and property," the weather service said in an statement early on Thursday.
US to be World's Biggest LNG Exporter by 2022
The International Energy Agency predicted that the US will become the world's No. 2 exporter of liquefied natural gas by the end of 2022 with a capacity of 3.7 trillion cubic feet per year, second only to Australia. The U.S. is already the world's largest producer of natural gas. The agency says more than half of the natural gas produced in the US will be converted to LNG for export. A Reuters report said that global LNG export capacity would reach 650 billion cubic meters (bcm) a year by the end of 2022, compared to less than 452 bcm a year in 2016.
Tropical Storm Cindy Rolls in on US Gulf Coast
Tropical Storm Cindy is likely to hit the Gulf Coast near the Texas-Louisiana border on Wednesday night, threatening to bring flash floods from Texas to Florida, according to the National Hurricane Center. Cindy was located about 165 miles (265 km) south of Morgan City, Louisiana, early on Wednesday with maximum sustained winds of 60 miles (95 km) per hour, the NHC said. The storm was moving northwest at nearly 8 miles (13 km) per hour, and forecasters said they expected this motion to continue until it hits the coast.
Oil Traders Brace for US Gulf Coast Storm
Oil traders from Texas to Louisiana braced on Tuesday for supply disruptions as Tropical Storm Cindy, formed in the U.S. Gulf of Mexico, threatened to hit refining and production centers with wind and rain later this week. Cindy was located about 265 miles (430 km) south of Morgan City, Louisiana with maximum sustained winds of 45 miles (75 km) per hour. It is expected to approach the coast of southwest Louisiana late Wednesday or Wednesday night, and move inland over western Louisiana and eastern Texas on Thursday, the NHC said. The Louisiana Offshore Oil Port, the largest privately owned crude storage terminal in the United States…
U.S. Natural Gas Prices Tumble as Coal Surges
U.S. natural gas prices have tumbled by more than 10 percent since late May as hedge funds start to liquidate a near-record bullish position accumulated in the expectation of a tighter market that failed to materialise. Hedge funds and other money managers reduced their combined net long position in the two main futures and options contracts linked to Henry Hub prices by 584 billion cubic feet in the week to May 30. Fund managers reduced their net long position by the largest amount in any one week since November 2016, after raising it by a cumulative 1,721 bcf during the previous 12 weeks.
Algeria to Renew LNG Deal with France's Engie in March
Algeria's state energy company Sonatrach will renew a deal with French gas and power group Engie to supply 10 billion cubic meters of LNG per year, a source at Sonatrach told Reuters on Wednesday. The signing ceremony will take place in France, likely before the end of March, and Algeria's Energy Minister Nouredine Bouterfa will attend, the source said. No further details have been provided on the length of the contract, which will replace one that has just expired. But Sonatrach's CEO Amine Mazouzi said recently that new contracts will be for at least 10 to 15 years but no longer than 20 to 25 years. Sonatrach has opted for a dual approach that mixes its traditional preference for long-term contracts with spot market deals to get the maximum out of them at a difficult time for Algeria…
Total in Talks to Buy Iranian LNG Project
Total is in talks to buy a multi-billion dollar stake in Iran's partly-built liquefied natural gas (LNG) export facility, Iran LNG, seeking to unlock vast gas reserves. The French oil major -- the first of its peers to strike deals in Iran after sanctions -- seeks entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project, two sources with knowledge of the matter said. A third source confirmed Total was in the running for a stake, alongside several other oil majors, but any deal was still some way off. Total declined to comment. Iran's National Gas Export Co. (NIGEC), a central stakeholder in the project, did not respond to requests for comment by email and phone.
Brazil O&G Output Tops Record in Sept
Brazil's oil and gas output reached a record 3.36 million barrels per day of oil equivalent in September, according to a report released by the government's petroleum industry regulator ANP on Friday. Oil production was 2.67 million bpd in September, 2.4 percent more than in August and 11.5 percent above the year-earlier output, ANP said. (Reporting by Marcelo Teixeira Editing by W Simon)
Norwegian Unions Say 755 O&G Workers Could Strike
About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting output from western Europe's top producer, if a new wage deal is not agreed before a Friday deadline, trade unions said on Monday. A final round of mandatory talks will be hosted by a state mediator on June 30 and July 1 in an effort to avoid disruption that could start the following day. The affected fields account for nearly 18 percent of Norway's oil output and a little more than 17 percent of its natural gas, Reuters calculations show. Combined oil output was about 285,000 barrels per day in the first four months of the year, with natural gas output at 48.5 million cubic metres (mcm) per day.