Economics ///

Libya seeks funds from foreign oil firms to repair infrastructure

Libya is seeking funding from foreign oil companies to fix its ailing infrastructure after years of war and neglect, the nation’s top energy official said.

Alberta’s premier urges retaliation for Biden’s job-killing Keystone XL move

Jason Kenney said Justin Trudeau should demand the new U.S. administration sit down and discuss the project in the context of environmental, climate and security policy. If that fails, Canada should be willing to impose “meaningful” punitive measures against its biggest trading partner.

Brent crude passes $56 as market shows signs of strength

Traders have piled into oil this year, with output cuts from Saudi Arabia helping drive prices to the highest since February.

Financial regulator questions value of U.S. shale reserves

The top U.S. financial regulator’s reported investigation into how Exxon Mobil values shale assets follows years of concerns about the industry’s rosy projections, which have left hundreds of billions of dollars of investor losses and writedowns.

Exxon stock slides on report of SEC probe into Permian valuations

The probe may cast a shadow over Exxon’s efforts to turn a corner after its shares posted their worst annual performance in 40 years in 2020 amid a collapse in oil prices. CEO Darren Woods has been forced to slash spending, and last month the company said it will write down the value of North and South American natural gas fields by as much as $20 billion.

South Korea lobbies Qatar for aid in recovering tanker seized by Iran

Choi traveled to Doha from Tehran after fruitless talks over the South Korean-flagged Hankuk Chemi, an oil-products tanker detained by the Islamic Revolutionary Guard Corps on Jan. 4. He also discussed billions of dollars of Iranian money trapped in South Korea due to U.S. sanctions.

Travel won’t recover until Q3, says oil’s largest trader

Global oil use dropped by 9 million barrels a day last year but should recoup more than 6 million in 2021, said Mike Muller, head of trader Vitol SA’s operations in Asia.

IEA chief says U.S. shale is needed for now as oil prices climb

A “big chunk” of U.S. shale is profitable at current oil prices, but drillers should be aware of crude’s declining share in the future global energy mix, International Energy Agency Executive Director Fatih Birol said in an interview.

Strengthening dollar stalls oil price rally’s momentum

“The market has now reached a price level that potentially doesn’t reflect current fundamentals,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Oil could be next in line” to suffer from a stronger dollar after other commodity prices came under pressure.

Mexico pouring money into Pemex, at the environment’s expense

After a landslide victory in 2018, Mexico's president has cut the knees off a booming renewables market, plowed money into Pemex, and pursued two major infrastructure projects that environmentalists consider ecological disasters.

Oil passes $55 on hopes for more U.S. stimulus spending

Democratic wins in elections in Georgia mean the party is poised to take control of the Senate, House and presidency, spurring a broad move higher in financial markets. That came after Saudi Arabia pledged earlier in the week to cut production by 1 million barrels a day in February and March.

How U.S. shale exports forever changed global oil markets

“Opening the shale revolution to the world through the export ban lifting helped shift the global oil market psychology from supply scarcity to abundance,” said Karim Fawaz, director of research and analysis for energy at IHS Markit. “It unshackled the U.S. industry to keep growing past its domestic refining limitations.”

Devon Energy joins shale producers pledging restraint as oil rallies

“I have a hard time seeing the need for U.S. producers over the next several years to get back to double-digit growth,” Devon Energy CEO Rick Muncrief said in an interview. “For this management team, if we really think about 2021, let’s keep it flat.”

Pioneer’s CEO sees shale output flat for the foreseeable future

“I really don’t see much increase in the Permian basin or the U.S. shale over the next several years,” said Scott Sheffield, chief executive officer of Pioneer Natural Resources Co.

Colder than usual winter boosts fossil fuel demand

Temperatures across much of Europe and Asia are well below normal and forecasters expect them to stay there for most of January. The chill is supporting oil prices, which are holding above $50 a barrel, while the profit from turning crude into diesel climbed in Europe to the most since August in recent weeks as consumers -- many stuck working from home because of a resurgent virus -- burn more heating fuel.

Saudi Arabia cements its role as leader of the global oil and gas market

“We are the guardian of this industry,” Saudi Energy Minister Prince Abdulaziz bin Salman said as he announced Saudi's production cut on Tuesday, preserving the OPEC+ deal and sending oil prices to 10-month highs. He emphasized that the decision was made unilaterally by Crown Prince Mohammad bin Salman himself.

High debt, low margins choke shale’s growth despite climbing oil prices

Market conditions that might have triggered U.S. oil explorers to raise output and grab market share in recent years are, this time around, more an opportunity for them to pay down debt or boost dividends.

Banks push back against rule forcing lending to oil companies

The “fair access” rule proposed by the Office of the Comptroller of the Currency on Nov. 20 would create undue burdens for lenders and could threaten their business models, banking industry groups said in comment letters to the agency.

New OPEC+ production agreement sees Saudis taking deepest cuts

The deal, which emerged after two days of talks, sent crude surging to a 10-month high in New York. It appeared to give most members of the group what they wanted -- the additional price support desired by Saudi Arabia and the production boost Russia had been pushing.

Russian bank funds lion’s share of Trafigura’s $7B Rosneft oil deal

A Rosneft spokesman said that the deal was “a logical extension” of its cooperation with Trafigura and would give the trading house “long-term access to high quality hydrocarbons to be produced with a low-carbon footprint that can be shipped both to the west and east.”