Record U.S. electricity consumption is driving near-record combustion of gas by power generators, ensuring gas inventories remain under pressure and prices remain high. In common with other parts of the U.S. economy, growth in gas production and the electricity supply has not kept pace with growth in demand after the pandemic, creating ongoing shortages. Net electricity generation between January and April amounted to billion kilowatt-hours surpassing the previous seasonal records of 1,331 billion kWh in 2014 and before that 1,319 billion kWh in 2008. Gas-fired units accounted for 470 billion ...

The Group of Seven (G7) wealthy nations is looking at blocking the transportation of Russian oil among other options to deprive Moscow of bumper revenues amid its invasion of Ukraine, unless it heeds a price cap. In a statement released by Britain, G7 foreign ministers said they were considering “a comprehensive prohibition of all services that enable transportation of Russian seaborne crude oil and petroleum products globally, unless the oil is purchased at or below a price to be agreed in consultation with international partners.” “In considering this and other ...

Europe’s embattled energy majors are warming up to increased investment in oil and gas amid intense regional energy security concerns, dwindling production metrics, triple digit oil prices and soaring profits. Reporting another set of bumper quarterly earnings on the back of record prices and refining margins, energy majors are being called on to both accelerate their shift to clean energy while reinvigorate spending on oil and gas to help plug a hole left by sanctioned flows from Russia. More than doubling year-ago levels, Shell, BP, TotalEnergies, Equinor, and Eni announced ...

Kuwait crude oil plunged US$3.08 during Tuesday’s trading sessions to reach US$105.62 per barrel (pb), compared with US$108.70 pb the day before, Kuwait Petroleum Corporation said Wednesday. Brent futures edged 51 cents higher to reach $100.54 pb and West Texas Intermediate (WTA) gained 53 cents to $94.42 pb. Source: Emirates News Agency

OPEC+ is set to raise its oil output goal by 100,000 barrels per day, an amount analysts said was an insult to U.S. President Joe Biden after his trip to Saudi Arabia to ask the producer group’s leader to pump more to help the United States and the global economy. The increase, equivalent to 86 seconds of daily global oil demand, follows weeks of speculation that Biden’s trip to the Middle East and Washington’s clearance of missile defence system sales to Riyadh and the United Arab Emirates will bring more ...

Kuwait is close to exhausting its production capacity, capping its ability to bring on more crude oil supplies to meet elevated global demand, as OPEC faces pressure from its key customers for price relief. The country may have about 30,000 b/d of production upside left from current levels, according to Platts Analytics, with its main field aging and an unfavorable business climate, along with government instability, limiting its ability for further growth. Kuwait pumped 2.72 million b/d in June, according to the latest Platts survey of OPEC output by S&P ...

U.S. crude oil inventories rose unexpectedly last week as exports fell and refiners lowered their runs, while gasoline stocks also posted a surprise build as demand slowed, the Energy Information Administration said on Wednesday. Crude inventories rose by 4.5 million barrels in the week to July 29 to 426.6 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel drop. Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. futures rose by 926,000 barrels in the week, the EIA said. Refinery crude runs ...

Strathcona Resources has agreed to buy private equity-backed Serafina Energy for C$2.3 billion ($1.8 billion), sources with direct knowledge of the matter said on Wednesday, the largest acquisition yet by the Canadian private oil and gas producer. Serafina produces 40,000 barrels of oil equivalent (boe) per day in the province of Saskatchewan. Strathcona is focused on the Montney basin in Alberta and British Columbia, Cold Lake oil sands and the Lloydminster heavy oil region. Strathcona produces 110,000 to 115,000 boe per day, mainly liquids. Strathcona and Serafina did not respond ...

OPEC and its allies are remaining mum about their intentions when they meet Aug. 3 to decide on September production quotas, but an analysis from the group shows a lower global oil supply surplus than previously estimated. The surplus was downgraded to 800,000 b/d for 2022 compared with 1 million b/d in the last analysis before the group’s June 30 meeting, according to a market report issued by the OPEC secretariat to delegates and seen by S&P Global Commodity Insights. For 2023, the surplus will be 500,000 b/d, the report ...

Oil prices are proving resilient to global economic recession fears and have outperformed major equity indices and the U.S. dollar so far this year as Western sanctions on Russia further limit supplies to an already tight market. The two major crude futures contractsare up about 30% so far this year, while the All Country World Index (ACWI) is down about 15%, Refinitiv Eikon data shows. MSCI’s 47-country world stocks index suffered its biggest first-half drop since its creation in 1990 as inflation hit 40-year highs and central banks raised interestrates. ...

Natural gas stocks in the EU ended July 69% full despite dwindling Russian flows, to be well on track to meet a new EU-wide target of 80% for Nov. 1 following the invasion of Ukraine. Gas tanks across the EU contained 73 Bcm on July 31, which was 13 Bcm higher year on year and 1% below the five-year average, the smallest gap since the start of 2022, according to GIE AGSI data. A newly adopted EU regulation in the wake of Russia’s invasion of Ukraine calls for gas storage ...

Australia’s threat to curb exports of liquefied natural gas (LNG) in order to ensure domestic supplies is another unwelcome pressure on a tight global market for the super-chilled fuel. But it’s not an immediate threat, and it may also not materialise at all, depending on how the various players in Australia react to the government’s planned action. What needs to be addressed effectively is the elephant in the room, namely the price at which natural gas is made available to domestic consumers relative to the price the gas companies can ...

Ola Källenius exudes confidence in crisis. Recently, the head of Mercedes-Benz announced that the company was preparing to reduce its natural gas consumption in Germany by as much as 50%. “We’re in a position to implement these measures this year,” the CEO said in a call with investors. Källenius is confident the company can replace potential gas supply shortfalls with green power from renewable energy sources if necessary. The automaker also plans to reduce its overall energy consumption and, if worst comes to worst, replace gas with oil. Mercedes-Benz has ...

Russia increased daily oil and gas condensate output in July by 2% from the previous month to 1.468 million tonnes, or 10.76 million barrels per day (bpd), Kommersant daily newspaper reported on Monday, citing sources familiar with data. Russian oil production has dropped sharply after Moscow faced western sanctions as it sent troops to neighbouring Ukraine in February. Output started to gradually increase over the past months but still remains below pre-sanction levels. According to the newspaper, Gazprom Neft, the oil arm of the state gas company Gazprom, and Surgutneftegaz ...

BP on Aug. 2 reported a Q2 jump in gas production and underscored its expectation that high energy prices and refinery margins would continue into the autumn. In a Q2 results statement, the UK major reported a 4% year-on-year increase in overall output to 2.2 million b/d of oil equivalent, comprising a 7% increase in gas production to 1.15 million boe/d, while oil output remained flat at 1.05 million b/d. Its oil output increased in the North Sea and the US, including shale, while declining elsewhere. “BP expects oil prices ...