Industry Trends ///

U.S. crude exports drying up as tanker rates skyrocket

Soaring oil-tanker costs are drying up activity in the U.S. export market as sellers are slow to lower offers and buyers are skittish, according to market participants.

OPEC+ will have to cut output in December, according to market data

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020.

EU’s lending arm delays vote on limiting fossil-fuel financing

The European Investment Bank stopped short of agreeing a strategy to limit funding for fossil fuels, a plan that would help step up Europe’s ambition to fight climate change.

Geopolitical risks drive unprecedented hike in oil tanker rates

“At current rates, owners could pay back a 10-year-old VLCC, valued at $47m including scrap value of $16m, after only two trips,” Clarksons Platou analysts said in a research note Monday.

API: Senate fighting yesterday’s battles with CPP vote

“If senators want cleaner power, advocating for more natural gas-generated electricity would be a more effective route than generating more red tape,” wrote Scott Parker, rapid response & content manager at the API.

LAGCOE keynote explores industry’s role in technical and social innovation

Kevin Krausert, president and CEO of Canada’s Beaver Drilling, opened Day Two of the LAGCOE 2019 conference, with the goal of helping the oil and gas industry maintain its long-standing role as a source of both technical and social innovation.

LAGCOE keynote speaker issues rallying call, to earn social license to operate

Kimberly McHugh, vice president of drilling & completions at Chevron, kicked off LAGCOE 2019 Wednesday morning in New Orleans with a reminder that, while the rumors of the demise of the oil industry are greatly exaggerated, companies must adapt to continue to meet the world’s evolving energy needs.

Canadian heavy oil falls as Alberta crude-by-rail deal nears

Canadian heavy oil prices have weakened ahead of an anticipated announcement that Alberta will ease production limits in exchange for shipping more crude by rail.

Oilpatch jobs are drying up in the Permian basin

Through August, Permian employment has grown at an annualized rate of 0.7%, far less than the 11.4% growth of the same period last year, the Dallas Fed said Wednesday in its latest monthly report.

Wärtsilä to apply hybrid power upgrades to Viking Neptun offshore construction vessel

Norway-based Eidesvik AS has contracted Wärtsilä to engineer, supply, and commission a hybrid propulsion system for its ‘Viking Neptun’ construction vessel.

Ecuador quits OPEC, signals it’s ready for more E&P activity

For OPEC, the departure matters more in symbolism than barrels -- Ecuador stated clearly it wants to leave the group to boost oil revenues at a moment when the whole cartel is suffering from low prices.

API president & CEO Mike Sommers touts energy’s $2 billion economic impact on New Mexico communities

American Petroleum Institute president and CEO Mike Sommers today met with New Mexico business leaders, school administrators, and local leaders, who highlighted the transformational role of safe and responsible energy development in the Permian basin on the state’s economy and local communities.

Targeting a $2 trillion valuation, Aramco readies IPO plan for October

The state-run company plans to announce its intention to float around Oct. 20, according to people with knowledge of the matter. The firm, which is holding analyst meetings from Wednesday, is targeting a valuation of at least $2 trillion -- more than double that of Apple Inc.

EIA projects strong Asian growth drives a 50% increase in global energy usage by 2050

“Energy consumption was greater in Asia than in any other region in 2018, and we project that consumption will almost double between 2018 and 2050, making Asia both the largest and fastest-growing region in the world for energy consumption,” according to Linda Capuano, EIA administrator.

Big Oil CEOs talk climate change, methane emissions and the future of natural gas

One of the opening events of Climate Week in New York offered a rare sight -- nine bosses of some of the world’s largest oil and gas companies in one room.The occasion was the Oil and Gas Climate Initiative, an industry-supported organization whose members set targets to reduce methane emissions and gas flaring.

Oil industry’s future may rest on climate debate over natural gas

Championed by Big Oil as the fastest way to reduce emissions and reviled by environmentalists who say the world needs to ditch all fossil fuels -- the debate over natural gas may be one of the controversial aspects of climate change.

Exxon puts $15 billion of global assets up for sale

The world’s biggest oil company by market value is pursuing a $15 billion divestment plan, offloading older assets to fund higher-growth projects from Papua New Guinea to Texas and Brazil.

Shell, BP join collaboration studying methane emissions from natural gas

Working to deliver transparent data to evaluate the most effective methane emissions reduction strategies, the group was established by leading industry companies Cheniere, Chevron, Equinor, ExxonMobil, and Pioneer Natural Resources.

BHGE completes share repurchase, renames itself Baker Hughes Company

BHGE intends to change its corporate name to Baker Hughes Company, known as Baker Hughes. Following the name change, the Class A common stock will trade on the New York Stock Exchange under the symbol “BKR.”

OPEC+ faces ‘daunting’ market surplus in 2020, IEA says

Demand for the group’s crude in the first half of 2020 will be 1.4 MMbpd below its August output as production surges from their competitors, including the U.S.