The energy sector is off to a lower start, pressured by weakness in the...
The energy sector is off to a lower start, pressured by weakness in the underlying commodities and the major market futures. U.S. stocks opened in negative territory amid better-than-expected retail data and gloomy comments from Target, which was down nearly 14% in the pre-market.
WTI and Brent crude oil pulled back from earlier highs, as focus shifted back to rising COVID-19 cases in China. Oil futures initially rose amid reports of an attack on an oil tanker off the coast of Oman and as API data showed a bigger-than-expected drop in crude inventories. However, China’s COVID-19 policy continued to dim the demand outlook. In international news, Iraq's oil ministry is looking to increase oil production rates and raise baseline exports in line with global market demand and OPEC's decisions.
Natural gas futures are down as disruptions at the Freeport LNG export plant offset gains from colder weather forecasts. Federal pipeline safety regulators released on Tuesday a heavily redacted report that blamed inadequate operating and testing procedures, human error, and fatigue for the June 8 explosion at the Freeport LNG plant.
Germany, Poland take over natural gas firms tied to Russia
Germany and Poland announced separate takeovers of natural gas companies linked to Russian energy giant...
Germany and Poland announced separate takeovers of natural gas companies linked to Russian energy giant Gazprom, saying the moves were aimed at securing supply as Europe struggles with an energy crisis tied to the war in Ukraine.
Germany said it is nationalizing the former German subsidiary of Gazprom months after it was put under the control of a government agency, its latest nationalization in the energy industry since Russia's invasion.
Poland’s government, meanwhile, said it has taken “temporary compulsory management” of Gazprom’s share in the Yamal gas pipeline system in Polish territory. It said the takeover was needed for the country’s energy security and to ensure smooth decision-making in a company vital for gas flows.
The American Petroleum Institute (API) reported a large draw this week for crude oil of 5.835...
The American Petroleum Institute (API) reported a large draw this week for crude oil of 5.835 million barrels—more than undoing last week’s build. U.S. crude inventories have grown by roughly 25 million barrels so far this year, according to API data, but U.S. Strategic Petroleum Reserves fell by more than eight times that figure, at 201 million barrels.
The build in crude oil inventories was partially due to the Department of Energy’s release of 4.1 million barrels from the Strategic Petroleum Reserves in the week ending November 11, leaving the SPR with 392.1 million barrels.
In the week prior, the API reported a large build in crude oil inventories of 5.618 million barrels.
Distillate stocks saw a build this week of 850,000 barrels, compared to last week’s 1.773-barrel decrease.
Cushing inventories fell 842,000 barrels in the week to Nov 11. In the week prior, the API saw a Cushing decrease of 1.848 million barrels.
Hess Completes Libya Asset Sale to TotalEnergies, ConocoPhillips
Hess Corp. completed the sale of its interests in Libya, the...
Hess Corp. completed the sale of its interests in Libya, the U.S.-based independent E&P company said Nov. 15.
TotalEnergies SE and ConocoPhillips Co. acquired Hess’ 8.16% interest in the Waha Concession in Libya in equal shares, according to the company’s release. Terms of the transaction, which was initially announced in November 2021, were not disclosed.
Industry doing its part to solve abandoned wells problem
Oil companies such as Chevron and Diversified Energy are helping address the nation's abandoned well...
Oil companies such as Chevron and Diversified Energy are helping address the nation's abandoned well problem, with programs in place to plug old wells across several US states. Chevron is focused on Colorado, where it's sealed 3,400 wells since 2016 and is planning to tackle another 2,200 in the coming years, while Diversified has set up a commercial well-plugging business to plug its own wells as well as those left behind by other companies.
