Archive for category: Industry News

It seems like a reset of an economy should work like a reset of your computer: Turn it off and turn it back on again; most problems should be fixed. However, it doesn’t really work that way. Let’s look at a few of the misunderstandings that lead people to believe that the world economy can move to a Green Energy future.

[1] The economy isn’t really like a computer that can be switched on and off; it is more comparable to a human body that is dead, once it is switched off.

A computer is something that is made by humans. There is a beginning and an end to the process of making it. The computer works because energy in the form of electrical current flows through it. We can turn the electricity off and back on again. Somehow, almost like magic, software issues are resolved, and the system works better after the reset than before.

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Source: Oil Price

When it comes to finding the final frontier for big oil discoveries, you need to look beyond the Guyana-Suriname basin where everyone’s already staked their claims. And beyond the American shale patch, where growth is already slowing.

Africa is the next great oil frontier, where small-cap companies are staking large-cap claims of the kind that generously reward investors with a bigger risk appetite.

This could be the final, underexplored frontier for oil; is there anywhere else to go?

“There is nowhere on earth with as much potential as Africa,” Jay Park, CEO of Reconnaissance Energy Africa told Oilprice.com in an interview.

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Source: Oil Price

Global oil demand is set to recover to near pre-covid-19 levels by the end of this year, Saudi Arabia’s energy minister Prince Abdulaziz said today prior to the OPEC+ Joint Ministerial Monitoring Committee meeting today, according to The National.

Specifically, Prince Abdulaziz expects that oil demand will recover to 97% of the levels pre-Covid.

That 97% is also the compliance rate that OPEC+ achieved in July, after promising to cut 9.7 million barrels per day off the group’s oil production levels.

Saudi Arabia has leaned hard on the members of the group that have not complied with the cuts to the same dutiful—and painful—level that Saudi Arabia has. The laggards of the group include Iraq and Nigeria, who have missed their quotas by large margins.

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Source: Oil Price

The Trump administration is scrapping limits on methane leaks, allowing oil and gas companies to decide how much of the potent greenhouse gas can escape into the atmosphere from wells, pipelines and storage tanks.

The new rules, issued Thursday by the Office of Management and Budget, effectively rescind the Environmental Protection Agency’s authority to regulate methane, the largest component of natural gas. Although it dissipates faster than carbon dioxide, methane is estimated to be at least 25 times and as much as 80 times more potent in terms of trapping heat in the atmosphere.

The administration said methane would now be regulated under the Clean Air Act like other volatile compounds, but the rules governing those smog-forming compounds are comparatively weak.

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Source: The Washington Post

BP now says it will reduce its oil and gas production by 40 percent by 2030 as part of its pivot to low-carbon operations. But many will wonder why natural gas–the bridge between our fossil fuel present and renewable energy future–is being included on the chopping block. Despite its much lower emissions footprint, natural gas is also under threat not only by the bare fundamentals, but by the trends shaping energy policies.

The EU Green New Deal is perhaps the best example of these trends and their effect on future fossil fuel demand, including natural gas. The deal is pretty ambitious and targets emission reductions of between 50 and 55 percent from 1990 levels by 2030 and 100 percent by 2050. According to Wood Mackenzie analysts led by Massimo Di Odoardo, this will result in the loss of some 45 billion cubic meters of natural gas demand, or 12 percent from current annual demand, by 2040.

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Source: Oil Price