The “lower for longer” oil price mantra is doomed, one oil analyst told CNBC, amid heightened energy market fears of an imminent supply shock. Prices in the oil market have been steadily rising since last year, with global benchmark Brent rising toward $80 a barrel Tuesday. An upswing in crude futures has largely been driven by OPEC-led production cuts and robust global demand. Yet, more recently, oil prices have rallied faster-than-expected due to elevated geopolitical tensions. “I think the whole ‘lower for longer’ thesis is probably dead for a while,” ...

The global transition to electric vehicles and renewable sources of power will see oil company revenue plummet. The rollout of 540 million electric vehicles by 2040 will cause oil demand to peak in the mid-2020s, slashing income by $19 trillion, according to Oxford, England-based Aurora Energy Research Ltd. Gas and power will provide more than half of final energy consumption, up from 39 percent currently. Aurora’s “analysis points to a possible energy future of mass electrification, digitization, and new technologies, in which the rise in electric vehicles and continued improvements ...

As market share for renewables gains momentum, key players are entering the scene across Latin America. With Mexico’s Energy Reform enabling solar and wind capacity to grow, Brazil making a comeback in wind power and Argentina emerging as the fastest-growing regional market for renewable energy, it’s clear that these countries will continue to dominate the spotlight. To look more deeply into the dynamics of these markets, we have launched a Mexico Gas, Power and Renewables Service as well as a Southern Cone Gas, Power and Renewables Service covering Brazil, Argentina, ...

Libyan protesters shut down on Wednesday the eastern Raguba oilfield which had 5,000 barrels per day (bpd) of crude production feeding Brega port, said a spokesman for the owner, state-run Sirte Oil. The protesters had been threatening to shut down oilfields and pipelines passing through their remote home region of Marada unless authorities improve state services. The Sirte Oil company, part of state oil firm NOC, had been producing 61,000 bpd until its closure this morning, the spokesman said. Marada is also home to a pipeline of the Waha oil ...

Two upstart Mexican drillers have signed the first farm-out deal in Mexico’s oil sector that doesn’t include state company Petroleos Mexicanos. Jaguar Exploracion y Produccion agreed to sell a 50 percent stake of three onshore areas in Tabasco and Veracruz to Vista Oil & Gas for $37.5 million, plus contingency payments if oil prices rise above $65 a barrel in the next two years. Vista, Mexico’s first listed crude producer following a $650 million share sale last year, will pay and operate two of the areas that are already in ...

Santos Ltd. plunged the most since 2016 after rejecting Harbour Energy Ltd.’s $10.9 billion final offer and terminating talks, saying its proposal was too low and too risky. The Australian oil and gas producer said Tuesday its independent directors, managing director and chief executive officer unanimously rejected the proposal because it didn’t represent the full value of the company, as well as being too complex and high-risk. Oil prices and shares of its domestic peers have rallied 14 percent and 18 percent, respectively, since the initial proposal, Santos said. “The ...

Equinor is pleased to have been awarded 9 new licences in the 30th Offshore Licensing round, 8 as operator, as announced by the Oil and Gas Authority (OGA) yesterday. “This strengthens our position as an ambitious UK explorer. We believe the UKCS is underexplored and anticipate that there are new discoveries yet to be made that can add value to our business and provide resources for new developments”, says Jenny Morris, vice president for exploration UK in Equinor. “We have drilled several exploration wells on the UKCS over the last ...

The UK’s Oil and Gas Authority is awarding 123 licenses over 229 offshore blocks in a licensing round it said could help “transform” lackluster levels of oil and gas exploration drilling. The 30th offshore round, mainly focused on previously explored or “mature” areas of the North Sea, has resulted in awards to a broad mix of 61 major companies and independents, the OGA said in a statement. The number of licenses was less than the last licensing round to focus on mature areas, the 28th round, but was declared a ...

Kenya’s oil ambitions received a boost after the government reached a revenue-sharing deal with the Turkana local government and community where the lucrative oilfields are located. * Government reaches revenue-sharing deal * Tullow technically ready for maiden oil exports * Kenya oil production could be around 60,000-80,000 b/d But the road to first oil and sustained production remains fraught with political uncertainty and volatility as some within the local community still remain unconvinced. Kenyan President Uhuru Kenyatta said Saturday that a deal was struck specifically on the revenue-sharing provisions of ...

Oil benchmarks fell on Wednesday after an unexpected build in U.S. crude and gasoline inventories despite strong demand, and as traders weighed a possible increase in OPEC crude output to cover any shortfalls in supply from Iran and Venezuela. U.S. crude inventories rose 5.8 million barrels last week, while gasoline stocks increased by 1.9 million barrels, the Energy Information Administration said. [EIA/S] “Normally, you don’t see builds at this time of year. With Memorial Day Weekend and summer driving season coming up, we were expecting a draw. And getting a ...

North Sea crude differentials were steady on Wednesday after a lack of bids and offers, keeping Oseberg as the cheapest benchmark grade and the one setting dated Brent’s value. SHIPMENTS EAST A large volume of crude is heading to China and South Korea in May and, traders said, probably in June as well. As many as four VLCCs of Forties are heading to Asia in May, according to shipping data, as well as one or two VLCCs of Ekofisk loading in May and June, a trade source said. PLATTS WINDOW ...

U.S. crude stockpiles climbed unexpectedly last week, while gasoline stocks increased and distillate inventories fell, the Energy Information Administration said on Wednesday. Crude inventories rose by 5.8 million barrels in the last week, compared with analysts’ expectations for an decrease of 1.6 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.123 million barrels, EIA said. Refinery crude runs fell by 7,000 barrels per day, EIA data showed. Refinery utilization rates rose by 0.7 percentage points. Gasoline stocks rose by 1.9 million barrels, compared with analysts’ expectations ...

ExxonMobil today announced greenhouse gas reduction measures that are expected to lead to significant improvements in emissions performance by 2020, including a 15 percent decrease in methane emissions and a 25 percent reduction in flaring. The company also announced its intention to improve its industry-leading energy efficiency in refining and chemical manufacturing facilities. ExxonMobil invests in lower-emission energy solutions such as cogeneration, flare reduction, energy efficiency, biofuels, carbon capture and storage and other technologies. ExxonMobil has spent more than $9 billion on lower-emission energy solutions since 2000. “We have a ...

Russia’s energy ministry does not rule out a global oil production cut deal led by OPEC and Moscow being extended to 2019, Roman Marshavin, head of its international cooperation department, said in the text of a speech obtained by Reuters. In the speech, which was dated May 22, Marshavin said that the question will be discussed at a meeting between OPEC and other producers. The next meeting of OPEC members plus Russia and other non-OPEC producers is scheduled for next month in Vienna. Source: Reuters (Reporting by Olesya Astakhova; Writing ...

The global oil benchmark flirted with the $80-a-barrel level again on Tuesday, underlining concerns that an unexpectedly strong crude rally could eventually begin to weigh on economic growth. The combination of renewed U.S. sanctions on Iran, potential sanctions on Venezuela, a rising geopolitical risk premium, strong demand and other factors have made talk of $100 crude sound less outlandish. Indeed, some analysts argue that the backdrop now leaves the market more open to potential price spikes. So what if oil did climb back to triple digits for the first time ...