Demand for oil is finally rebounding despite the fact that Covid cases are increasing and additional travel restrictions have been put in place.
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Friday April 16, 2021
Oil prices rose this week after improving demand prospects. While Covid cases have increased significantly from a few weeks ago and travel restrictions have proliferated, demand still appears to be strong and rising.
The IEA raises the forecast for oil demand. The IEA has raised its oil demand forecast for 2021 to 230,000 bpd, citing improved vaccination efforts and stimulus measures in the United States.
Exxon is spending huge sums of money to defeat proxy moves. ExxonMobil (NYSE: XOM) is spending more than $ 35 million to block proxy votes for activist shareholder Engine No. 1, and could spend as much as $ 100 million, according to Reuters, although Exxon disputes the figure. Analysts say it could turn out to be one of the biggest proxy fights in history.
New Zealand becomes the first country to require climate disclosure. New Zealand became the first country to require banks, insurers and investment managers to report the effects of climate change on their businesses. The law affects banks and insurers with assets in excess of NZ $ 1 billion, as well as all issuers of shares and debt securities listed on the country’s stock exchange.
The struggle of the oil majors to sell $ 110 billion in assets. Major oil and gas companies are looking to sell combined assets of $ 110 billion to raise cash and pay down debt. But they may struggle to find buyers, according to Reuters. “Now is not the perfect time to sell assets”, Total (NYSE: TOT) Said CEO Patrick Pouyanne.
California’s fracking ban dies in state legislature. A proposal to ban hydraulic fracturing throughout the state of California failed the state legislature this week.
Bitcoin’s energy consumption has increased 66-fold since 2015. Energy consumption for Bitcoin mining is multiplied by 66 and the associated emissions are intended for further consideration, Citigroup warned. Bitcoin uses more energy than the entire Argentine country. The New York Times has also done a thorough analysis of the issue.
Chevron invests for the first time in offshore wind power. Chevron (NYSE: CVX) venture capital unit invested in offshore floating wind turbines from Ocergy Inc. “To my knowledge, this is the first investment by an American oil company in offshore wind,” said Anthony Logan, senior analyst at Wood Mackenzie Ltd.
Exxon is reducing production in Guyana due to a compressor problem. ExxonMobil (NYSE: XOM) cut its Guyana oil production by 75% to 30,000 bpd due to a problem with a compressor on its offshore platform.
BP stops production from the Shetlands oilfield. BP (NYSE: BP) has indefinitely suspended production at its Foinaven crude oil field west of the Shetlands.
Pioneer warns of price wars if shale moves too fast. Pioneer Natural Resources (NYSE: PXD) CEO Scott Sheffield has warned that OPEC + will engage in a price war if US shale increases production too quickly. “If we grow another million barrels a day next year, we’re going to have another price war in my opinion before 23,” he said.
Exxon could leave the western Iraqi Qurna 1. The Iraqi oil ministry said that ExxonMobil (NYSE: XOM) may come out of the West Qurna 1 oil field. The ministry said it was looking for buyers. Exxon is exploiting the massive 500,000 bpd field.
Investors around the world looking for ESG. More than 80% of affluent investors in Hong Kong, China, Singapore and the UK say environmental and ethical issues matter, and only a third have their investments tied to ESG factors, according to HSBC Asset Management. The data suggests that there is an appetite for ESG investing.
Related video: The conditions are right for a second shale boom
WoodMac: Global energy transition will translate into Brent $ 10 by 2050. Stricter climate policy could accelerate the energy transition and a sharp drop in demand could start by 2023, according to Wood Mackenzie. Demand could drop to 35 mb / d by 2050, with Brent averaging between $ 10 and $ 18.
Goldman Sachs: Oil demand will peak by 2026. Goldman has been bullish on near-term oil demand, but expects “sluggish” demand after 2025 and peaking by 2026.
Biden expected to deliver a 50% reduction in GHGs. The United States is hosting a virtual climate summit next week, and ahead of that meeting, the Biden administration is expected to announce a 50% greenhouse gas reduction target by 2030.
Ratio: 2035 100% EV are possible. A new report shows that with the right policy it is technically and economically feasible for all sales of new cars and trucks to be electric by 2035.
Shell opposes proxy voting on climate. Royal Dutch Shell (NYSE: RDS.A) urges shareholders to oppose a climate resolution tabled by activist investor Follow This.
Shell warns of stranded assets. Royal Dutch Shell (NYSE: RDS.A) says it will have produced 75% of its proven oil and gas reserves by 2030, and will only produce 5% after 2040.
Oil bankruptcies in North America reached their highest level in 5 years. Oil and gas bankruptcies in North America hit their highest level in the first quarter since 2016, according to Haynes and Boone. There were eight bankruptcies in the first quarter.
America’s biggest gas driller wants methane regulations. EQT (NYSE: EQT), the largest natural gas driller in the United States, called for stricter limits on methane. The Pittsburgh-based company is backing congressional efforts to repeal the Trump-era pushback on methane limits.
Permian pipeline crisis. A few years ago, Permian drillers suffered price cuts due to inadequate pipeline capacity. Now they have the opposite problem: too many pipelines and not enough oil.
By Tom Kool for Oil Octobers
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