Production ///

EU’s biggest oil producer to end North Sea operations by 2050

Denmark, the European Union’s biggest oil producer, will stop offering new licenses in the North Sea and phase out production altogether in 2050 as it takes an historic step toward a fossil-fuel free future.

OPEC’s deal fractures group unity, sets up future struggles

After a split emerged between Saudi Arabia and the United Arab Emirates, the cartel couldn’t agree on what had been widely expected before this week: a full three-month delay to the scheduled January output increase.

Conoco may dismiss up to 25% of Houston HQ staff as Concho buy closes

“The process to determine the exact number of impacted employees is ongoing,” the company said in an email on December 1. “However, we anticipate the number of reductions in Houston could meet the threshold of 500 or more.”

OPEC’s credibility on the line as factional divides deepen

OPEC ministers met on Monday and had been scheduled to talk to their non-OPEC partners on Tuesday. At one point, there had appeared to be a consensus building between ministers yesterday, but the meeting then became unusually fraught.

Enbridge wins approval for Alberta oil sands pipeline to U.S. Midwest

Minnesota approved the stormwater pollution plan for Enbridge’s Line 3 pipeline replacement and expansion, the project’s last pending permit, the company said. Construction is expected to take six to nine months on a line that will add 370,000 barrels a day of capacity.

Exxon faces multi-billion-dollar writedown as fossil fuel prices struggle

Exxon disclosed it will write down the value of North and South American natural gas fields by $17 billion to $20 billion as cratering crude prices, a global supply glut and a pandemic-driven collapse in fuel sales strain the balance sheet.

OPEC+ considers delaying oil production hike until April

Market-watchers have been expecting OPEC+ to agree on a three-month delay -- and if the group doesn’t deliver prices will suffer. At stake also is the credibility of the cartel whose actions have underpinned the market since the spectacular oil crash earlier this year.

OPEC+ kicks off talks with key members split on oil production cuts

The 23-nation coalition is debating whether to maintain the output cuts at current levels, deferring the increase scheduled for January. Some members are concerned that global markets remain too fragile to absorb additional barrels -- particularly after Libya’s output soared -- while others are keen to sell more crude.

Internal divisions and a historic demand split complicate OPEC's plans

When OPEC+ meets this week in Vienna, impatient member states, surging Libyan production, and Chinese demand splitting off from the West will create headaches for ministers. Also, Arctic drilling plans in the U.S. and Norway are being motivated less by economics and more by geopolitical maneuvering, and the North American drilling rig count shows strength that exceeds even the most optimistic predictions from earlier in the year.

Oil prices slide from March’s highs on rising OPEC+ tensions

Oil has jumped 26% this month after signs that Covid-19 vaccines are imminent boosted expectations for a swift recovery in energy demand next year. However, while there are indications that Asian consumption remains healthy, Europe is still lagging.

Libya’s comeback continues to surprise oil markets

The speed of their recovery is causing anxiety for OPEC and allies such as Russia as they restrict global output to prop up crude prices. Libya is exempt from the cuts and currently supplies more oil than several of its OPEC peers.

Iraq seeks $2 billion upfront for oil supply contract as its economy falters

The nation is grappling with a crisis brought to a head by low oil prices and OPEC+ output cuts. As state coffers dwindle and school teachers go unpaid, the country risks a repeat of upheaval last year that brought down the government and saw hundreds of protesters killed.

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.

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.

China considers buyout of Exxon’s oil assets in Iraq

Iraq awarded a contract to develop the West Qurna oilfield to Exxon and Royal Dutch Shell Plc in 2009. The oilfield is one of the world’s largest with expected recoverable reserves of over 20 billion barrels.

Noia’s virtual fall seminar in East Canada focuses on energy transition

While 2020 has provided significant challenges, “Noia has remained committed to providing value to our members and to helping them through this difficult period,” said Noia CEO Charlene Johnson. “Our virtual fall seminar was a great way to step outside the typical formula of virtual events that met the standard people have come to expect from Noia.”

UAE builds tension within OPEC over oil production caps

Discord within OPEC has grown since late summer, when the UAE breached its quotas and got a stern warning from Saudi Arabia. Emirati policy makers seem increasingly frustrated by what they see as an unfair allocation of production caps, as their economy reels from falling oil revenue and the coronavirus pandemic.

Total in talks with Libya to expand oilfield investment

Total has been active in Libya for decades and holds shares in key oil fields, including the nation’s biggest -- Sharara -- and the offshore Al Jurf deposit. The Paris-based company also has a share in the Mabruk field, which has been closed for years because of political upheaval.

Increase in offshore lease bids shows continued importance of the Gulf of Mexico

"Continued safe and responsible development of the Gulf of Mexico will continue to benefit every American. Otherwise the energy will be produced elsewhere, serving to diminish our energy, economic and national security,” National Ocean Industries Association president Erik Milito said in a statement.

EIA projects $43 oil, flat U.S. production in the first half of 2021

The U.S. Energy Information Administration expects annual global petroleum demand will not recover to pre-pandemic levels (101.5 MMbpd in 2019) through at least 2021. EIA forecasts that global consumption of petroleum will average 92.9 MMbpd in 2020 and 98.8 MMbpd in 2021.