Industry Trends ///

Financial data consolidates with S&P Global to buy IHS Markit for $39 billion

The proposed tie-up of S&P with IHS Markit, a research firm with more than 5,000 analysts, data scientists, financial experts and industry specialists, is part of a race for scale as the industry’s largest players try to capitalize on surging demand for data and analytics in increasingly computerized financial markets.

It took a global pandemic for OPEC to slam the door on U.S. shale

“In the future, certainly we believe OPEC will be the swing producer — really, totally in control of oil prices,” Bill Thomas, CEO of EOG Resources, the biggest independent shale producer by market value, said earlier this month. “We don’t want to put OPEC in a situation where they feel threatened, like we’re taking market share while they’re propping up oil prices.”

China’s fuel imports surge in advance of Lunar New Year travel

The nation’s success in warding off a major outbreak during the Golden Week holiday in early October may boost optimism for locals preparing to travel back home during the Lunar New Year break.

ADNOC commits $122 billion to boost oil and gas output

Officials in Abu Dhabi privately floated the idea last week that the nation could leave OPEC, a highly unusual step that could destabilize oil markets. Energy Minister Suhail Al-Mazrouei later said the UAE “has always been a committed member,” though he didn’t address the country’s future in the cartel.

China to surpass U.S. as world’s largest oil refiner in 2021

The rise of China’s refining industry, combined with several large new plants in India and the Middle East, is reverberating through the global energy system.

Warmer forecasts end a natural gas bull run before it begins

Gas futures tumbled Thursday as U.S. forecasts shifted warmer through early December, leaving bullish traders flat-footed after the previous day’s modest gain stoked speculation that the recent rout had run out of steam.

U.S. crude stockpiles approach May’s record on new lockdowns

Though a repeat of the negative oil prices seen in April is unlikely, the mounting supply glut brings home how new lockdowns may soon force traders to store oil in every nook and cranny available, including ships and pipelines. Some are already doing that.

From chess match to streetfight: The world's courtrooms are the battleground for the future of fossil fuels

In Alaska, Michigan and Norway, partisans on the left and right are sparring in the courts to implement their vision for the future of energy. Operations from small shale plays to multi-billion-dollar offshore installations suddenly hang in the balance as the regulatory outlook becomes increasingly cloudy.

OPEC+ explores a three to six month delay on oil output hikes

Saudi Arabia and Russia, leaders of the 23-nation coalition, have already indicated publicly that they are thinking twice about easing production cuts in January as the resurgent pandemic hits fuel demand. The presidents of both Russia and the OPEC countries have even mentioned the option of cutting production deeper.

IEA cuts oil demand outlook on concerns over vaccine’s impact

While crude prices rallied to a 10-week high above $45 in London this week on news of Pfizer Inc.’s progress, fuel use won’t experience any “significant” boost from vaccines until the second half of next year, the agency said.

Vaccine prospects drive oil traders’ optimism for a 2021 rebound

“This is a sigh of relief to some extent by the market,” said Karim Fawaz, who leads the energy advisory service at consultant IHS Markit. “The short-term is still quite challenged, demand is looking quite weak. The second half of 2021 is when we expect to see that demand recovery start to take hold.”

ADIPEC 2020: Tuesday conference highlights

On day two of ADIPEC 2020, Oxy's CEO says she isn't as concerned as some others are about Biden's energy plans, the IEA says it's too soon to call peak oil, Vitol sees light at the end of the oil price tunnel, and more.

Vaccine news boosts short- and longer-term oil market indicators

While headline crude prices notched up percentage gains into the double digits on Monday, there was a broader- based surge in everything from jet fuel premiums, down to more arcane measures that traders use to gauge the health of the oil market.

PESA reports U.S. oil and gas job growth in October

The monthly Oilfield Services and Equipment Employment Report, compiled and published by PESA, estimates job losses due to pandemic-related demand destruction now total 92,302. OFS employment is down 101,087 jobs since October 2019.

Enbridge joins major European producers with 2050 emissions pledge

The pipeline giant also established an interim target of reducing the intensity of greenhouse-gas emissions from its operations by 35% by 2030, according to environmental, social and corporate governance targets.

Five U.S. energy leaders offer takes on potential impacts of a Biden win

While utilities that already embrace clean energy don’t see much impact, oil and natural gas suppliers are girding for a bigger threat.

Shell to shutter south Louisiana refinery in portfolio-reduction plan

With global demand and profits stung by the spread of Covid-19, the shutdown of 53-year-old Convent, which has about 675 employees, is part of Shell’s larger strategy to shrink its portfolio to six facilities from 14 by 2025, Shell said in a statement.

Falling dollar drags oil prices down with it as election drags on

Aside from the election, the oil market is now facing up to renewed lockdown measures as a result of Covid-19.

Fading green ambitions in the U.S. send oil stocks up, renewables down

While the outcome of the presidential race remains unclear, a Joe Biden victory would likely coincide with a Republican-controlled Senate that could hinder his efforts to address climate change, promote clean energy and roll back fossil-fuel subsidies.

FTI says a Biden win would accelerate energy sector bankruptcies

A move to alternative power sources is already underway, “but Biden’s policies are speeding up the transition process, while Trump is trying to slow it down,” said Carlyn Taylor, global co-leader of corporate finance and restructuring at FTI Consulting Inc.