Economics ///

Global oil rally costs shale drillers $12B in underwater hedges

“One of the negatives of this quarter has been some horrible hedging; guys locked in at $42 a barrel,” Paul Sankey, the veteran oil-industry analyst and founder of Sankey Research LLC.

Shale drillers turn to dividends to match supermajors’ investment appeal

Benchmark U.S. oil futures have advanced 45% this year and at that pace are on track for the biggest annual increase since 2016. In returning so much cash to shareholders, shale drillers are showing they will pass on gains from higher crude prices rather than use them to increase production.

ConocoPhillips beast estimates, posting highest profits since 2018

ConocoPhillips beat estimates as rising commodity prices led America’s biggest independent oil producer to the highest profit in nearly three years.

Ghana seeks $1.7B loan to acquire and develop oil and gas assets

The nation estimates it will need as much as $1.3 billion to buy a 37% stake in the Deep Water Tano/Cape Three Points asset operated by Aker Energy AS and 70% stake of the South Deep Water Tano field operated by AGM Petroleum Ghana Ltd., according to a parliamentary proceeding on Monday.

Oil prices fall on declining Chinese factory output

The virus is clouding the outlook for consumption as China faces a fresh outbreak, Thailand expands its quasi-lockdown measures and infections in Sydney matched a record. Meanwhile, data indicated China’s economic activity eased in July and U.S. manufacturing data also showed some weakness.

Shell courts multiple suitors for its $10B Permian shale portfolio

Devon Energy and ConocoPhillips are among potential suitors studying Royal Dutch Shell's portfolio of Permian Basin oil fields, which could be worth as much as $10 billion in a sale, people familiar with the matter said. Chevron is also among companies considering bids for the assets, which are largely located in West Texas, the people said.

Russians decide against selling Iraqi oilfield to China

Russia’s Lukoil PJSC is retracting its decision to sell its stake in West Qurna-2 field in the south to Chinese companies, according to Iraqi state-run newspaper Al-Sabah.

Exxon’s focus on debt reduction disappoints shareholders looking for buybacks

Exxon Mobil’s knockout second-quarter results did little to entice investors because much of the extra cash coming from soaring energy and petrochemical prices will be used to pay down debt rather than reward shareholders.

Europe’s supermajors signal the era of big oil profits is back

Europe’s largest oil and gas companies are showing confidence that the era of big profits is back by significantly boosting returns to shareholders.

Shell starts $2 billion share buyback in bid to win back investors

Royal Dutch Shell raised its dividend by almost 40% and said it will buy back $2 billion of shares, continuing an effort to win back investors as stronger oil prices and a buoyant chemicals market lifted earnings.

Increased M&A activity triggered by commodity price volatility

David Levitt, LiquidFrameworks

An analysis compares previous M&A trends with the recovery currently underway in the OFS sector and commodities markets.

Oil prices rally following harsh Monday selloff

Oil jumped the most since mid-April amid broader market gains and after a U.S. government report showed declining fuel and distillate stockpiles during the high-demand summer driving season.

BHP said to seek an exit from its petroleum business

BHP has long said the oil business was one of its strategic pillars, and argued that it will make money for at least another decade. But as the world tries to shift away from fossil fuels, the company wants to avoid getting stuck with assets that become more difficult to sell, according to insiders.

IEA projects record GHG emissions by 2023 without more government spending

Less than 15% of the $2.4 trillion in government spending to support the post-pandemic economic recovery has gone to investments in clean energy, according to the International Energy Agency.

Port of Corpus Christi sets new tonnage records in first half of 2021

“As global economies continue to recover from the COVID-19 pandemic, we are seeing strong demand for energy-related products originating in Texas,” said Sean Strawbridge, Chief Executive Officer for the Port of Corpus Christi.

Exxon taps female CFO as first outsider to join inner circle

Exxon Mobil Corp. recruited a company outsider for the first time to join the chief executive officer’s inner circle of managers, a move that comes just weeks after the oil giant suffered a stunning setback at the hands of a tiny activist investor.

Iran restricts access to nuclear data until sanctions are lifted

Iran claims it’s preserving data captured by International Atomic Energy Agency monitoring equipment, but officials won’t give investigators access to it until Iran concludes stalled talks with world powers to lift economic sanctions.

Oil prices plunge on coronavirus threats, OPEC’s pledge to add barrels

Futures in New York lost as much as 8.3% on Monday as OPEC and its allies pledge to increase oil production from August until all halted output is revived. A jump in virus cases from Asia to the U.S. drove down equities, with stocks in Europe hitting a seven-week low.

Forecasters agree more OPEC oil is needed, but just how much is up for debate

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all say that global oil demand will continue to recover through to at least the end of next year. But there is some disagreement on the paths it will take to get there.

Another day of falling oil prices as U.S. gasoline inventory grows

Oil fell for a second day after a surprise jump in U.S. gasoline stockpiles tempered signs that the American market has returned to robust health.