Sunday, March 17, 2024

oil prices at a 4 month high, US natural gas supplies at a seasonal record high; oil imports at a 50 week low

US oil prices rose for a second week in three and finished this week at a four month high on bullish demand outlooks from ​the three major forecasting agencies, falling US oil inventories, and intensifying Ukrainian attacks against Russian oil refineries….after falling 2.5% to $78.01 a barrel last week on soft U.S. economic data and weak demand from China, the contract price for the benchmark US light sweet crude for April delivery fell more than 1% in overseas trading early Monday, as worries diminished about potential disruptions to supply due to conflicts in the Middle East, then traded lower in New York as uncertainty around the timing of U.S. interest rate cuts weighed on the market, but recovered to settle just 8 cents lower at $77.93 a barrel as traders awaited the release of key US inflation data the next day…oil prices moved higher overnight in Asia, as tensions in the Middle East continued to spur concerns, then swung between gains and losses ​during the US session as stubborn U.S. inflation whipsawed wider markets and clouded the outlook for when the Fed might start to cut interest rates, and settled 37 cents lower at $77.56 a barrel despite OPEC and EIA forecasts that oil market fundamentals would continue to strengthen in the second quarter, reflecting production cuts by OPEC+ and robust demand growth in North America and the Asia-Pacific…oil prices surged higher Wednesday morning after a Ukrainian drone struck one of Russia’s biggest refineries and the American Petroleum Institute's overnight report signaled shrinking US crude stockpiles, then rallied over 2% following a supportive EIA inventory report and a second day of Ukrainian drone attacks on Russian refining facilities, and settled $2.16 or 2.8% higher at $79.72 a barrel on ​the surprise withdrawal ​f​rom U.S. crude inventories, a bigger-than-expected drop in U.S. gasoline supplies​, and fears of potential supply disruptions after the Ukrainian attacks on Russian refineries…oil prices extended their gains on Thursday after the International Energy Agency raised its demand growth forecast and lowered its supply projection for this year and settled $1.54 higher at a four month high of $81.26 a barrel, as the revised IEA outlook signaled a tighter oil market and an oil shortage rather than a surplus…oil prices softened early Friday, as the US dollar headed toward its largest ​weekly gain since mid-January, making oil more expensive for ​u​sers of foreign currencies, and settled 22 cents lower at $81.04 a barrel, but still ended 3.9% higher for the week, buoyed by the drop in U.S. crude inventories and the stronger demand forecast from the International Energy Agency.

On the other hand, natural gas prices fell for the third time in four weeks on the smallest withdrawal of gas from storage of the winter and ongoing weak demand….after falling 4.2% to $1.805 per mmBTU last week on bearish weather forecasts and a building glut of gas in storage, the contract price for natural gas for April delivery opened four cents below Friday’s last price on Monday, as bearish sentiment tied to mild forecasts continued to reign supreme and settled 4.6 cents lower at $1.759 per mmBTU as the possibility that an early season storage build would be reported later in the week outweighed cooler weather trends into late March….however, the April gas contract price opened four cents higher on Tuesday, after another major producer, CNX Resources Corp, announced that they would be cutting back production, after EQT had made a similar announcement last week, but turned south during morning trading and settled 4.5 cents lower at $1.714 per mmBTU, after the U.S. Energy Information Administration (EIA) slashed its projected 2024 average Henry Hub natural gas spot price by 14% versus its month-earlier forecast, after noting record lows for the benchmark in February…natural gas prices opened 5 cents lower on Wednesday and shrugged off news of production cuts and impending short-term winter conditions ​through an uneventful day of trading, and settled 5.6 cents lower at $1.658 per mmBTU, as the benchmark Henry Hub Louisiana spot price fell 27.5 cents to average $1.240, its lowest price level since Hurricane Ike in 2008…natural gas prices were unchanged at the open on Thursday, but jumped on the release of the natural gas storage report, which came in on the high side of expectations, and settled 8.3 cents higher at $1.741 per mmBTU supported by the weekly storage report that slightly beat estimates and signs that the Freeport LNG export terminal might be preparing to restart its third train…natural gas futures held onto those gains in early trading Friday, as traders anticipated a bump in export demand, but turned lower in late trading on forecasts for mild​er weather to settle down 8.6 cents at $1.655 per mmBTU on the day, and thus finish ​8.3% lower for the week…

The EIA's natural gas storage report for the week ending March 8th indicated that the amount of working natural gas held in underground storage in the US decreased by 9 billion cubic feet to 2,​325 billion cubic feet by the end of the week, which left our natural gas supplies 336 billion cubic feet, or 16.9% above the 1,989 billion cubic feet that were in storage on March 8th of last year, 629 billion cubic feet, or 37.1% more than the five-year average of 1,696 billion cubic feet of natural gas that were typically in working storage as of the 8th of March over the most recent five years, and the highest late winter inventory level for any March 8th in 30 years of EIA records…the 9 billion cubic foot withdrawal from US natural gas working storage for the cited week was more than the 3 billion cubic foot withdrawal from supplies forecast by a Reuters survey of analysts, but was far less than the 65 billion cubic feet that were pulled from natural gas storage during the corresponding first week of March 2023, and also far less than the average 87 billion cubic feet withdrawal from natural gas storage that has been typical for the same late winter week over the past 5 years…

The Latest US Oil Supply and Disposition Data from the EIA

US oil data from the US Energy Information Administration for the week ending March 8th indicated that after another pickup in our oil refining and big drop in our oil imports, we needed to pull oil out of our stored commercial crude supplies for first time in seven weeks and for the 7th time in the past 21 weeks, even as demand for oil that the EIA could not account for decreased….Our imports of crude oil fell by an average of 1,730,000 barrels per day to a fifty week low average 5,491,000 barrels per day, after rising by an average of 837,000 barrels per day over the prior week, while our exports of crude oil fell by 1,490,000 barrels per day to average 3,147,000 barrels per day, which combined meant that the net of our trade in oil worked out to a net import average of 2,344,000 barrels of oil per day during the week ending March 8th, 240,000 fewer barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supply from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 384,000 barrels per day, while during the same week, production of crude from US wells was 100,000 barrels per day lower at 13,100,000 barrels per day. Hence our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a rounded total of 15,828,000 barrels per day during the March 8th reporting week…

Meanwhile, US oil refineries reported they were processing an average of 15,658,000 barrels of crude per day during the week ending March 8th, an average of 390,000 more barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period the EIA’s surveys indicated that a rounded average of 134,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US... So, based on that reported & estimated data, the crude oil figures provided by the EIA for the week ending March 8th appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production was 305,000 barrels per day more than what our oil refineries reported they used during the week…To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [-305,000] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus suggesting there was an error or omission of that size in the week’s oil supply & demand figures that we have just transcribed.... Despite that, since most oil traders react to these weekly EIA reports as if they were accurate, and since these weekly figures therefore often drive oil pricing (as is obvious to anyone who watches oil prices), and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it's published, and just as it's watched & believed to be reasonably reliable by most everyone in the industry...(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil, see this EIA explainer)….(note there is also an aging twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had hoped to do about it)

This week's average 134,000 barrel per day decrease in our overall crude oil inventories came as an average of 219,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while an average of 85,000 barrels per day were being added to our Strategic Petroleum Reserve, the fourteenth SPR increase in twenty-one weeks. following nearly continuous withdrawals over the prior 39 months... Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports fell to 6,438,000 barrels per day last week, which was still 2.9% more than the 6,255,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be 100,000 barrels per day lower at 13,100,000 barrels per day because the EIA's rounded estimate of the output from wells in the lower 48 states was 100,000 barrels per day lower at 12,700,000 barrels per day, while Alaska’s oil production was 4,000 barrels per day lower at 432,000 barrels per day, but still added the same 400,000 barrels per day to the EIA's rounded national total as it did last week...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure matche​s that of our pre-pandemic production peak, but was still 35.1% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.

US oil refineries were operating at 86.8% of their capacity while processing those 15,658,000 barrels of crude per day during the week ending March 8th, up from the 59 week low 80.6% utilization rate of three weeks earlier, but still a bit below the normal operating range for early March, as refinery operations recover from damage ​c​aused by the arctic cold that penetrated to the Gulf Coast in mid January... the 15,658,000 barrels per day of oil that were refined this week were 1.7% more than the 15,398,000 barrels of crude that were being processed daily during week ending March 10th of 2023 (after ​a​n even worse refinery-freeze-off following Christmas 2022's winter storm Elliot), but 2.3% less than the 16,020,000 barrels that were being refined during the prepandemic week ending March 8th, 2019, when our refinery utilization rate was at a closer to normal 87.6%..

With the increase in the amount of oil being refined this week, gasoline output from our refineries was also higher, increasing by 285,000 barrels per day to 9,911,000 barrels per day during the week ending March 8th, after our refineries' gasoline output had increased by 207,000 barrels per day during the prior week. This week’s gasoline production was 8.8% more than the 9,111,000 barrels of gasoline that were being produced daily over week ending March 3rd of last year, but 0.6% less than the gasoline production of 9,974,000 barrels per day during the prepandemic week ending March 8th, 2019....at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 217,000 barrels per day to 4,562,000 barrels per day, after our distillates output had increased by 56,000 barrels per day during the prior week. After four straight increases, our distillates output was 3.0% more than the 4,428,000 barrels of distillates that were being produced daily during the week ending March 10th of 2023, but 6.1% less than the 4,856,000 barrels of distillates that were being produced daily during the week ending March 8th, 2019…

Even with this week's increase in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the sixth consecutive week, following five prior increases, decreasing by 5,662,000 barrels to 234,083,000 barrels during the week ending March 8th, the biggest draw since November 3rd, after our gasoline inventories had decreased by 4,460,000 barrels during the prior week. Our gasoline supplies fell by more this week because the amount of gasoline supplied to US users rose by 31,000 barrels per day to 9,044,000 barrels per day, and because our exports of gasoline rose by 217,000 barrels per day to 999,000 barrels per day, and even though our imports of gasoline rose by 46,000 barrels per day to 634,000 barrels per day.…After thirty-two gasoline inventory withdrawals over the past fifty-two weeks, our gasoline supplies were 0.8% below than last March 10th's gasoline inventories of 238,058,000 barrels, and about 3% below the five year average of our gasoline supplies for this time of the year…

With this week's increase in our distillates production, our supplies of distillate fuels rose for first time in seven weeks, following eight consecutive​ prior increases, increasing by 888,000 barrels to 117,898,000 barrels over the week ending March 8th, after our distillates supplies had decreased by 4,013,000 barrels during the prior week. Our distillates supplies rose this week because the amount of distillates supplied to US markets, an indicator of our domestic demand, fell by 699,000 barrels per day to 4,074,000 barrels per day, while our imports of distillates fell by 24,000 barrels per day to 171,000 barrels per day, and while our exports of distillates rose by 176,000 barrels per day to 1,231,000 barrels per day ...With 29 inventory decreases over the past fifty-one weeks, our distillates supplies at the end of the week were 1.5% below the 119,715,000 barrels of distillates that we had in storage on March 10th of 2023, and about 7% below the five year average of our distillates inventories for this time of the year...

Finally, after a big drop in our oil imports and an increase in our oil refining, our commercial supplies of crude oil in storage fell for the 11th time in twenty-six weeks and for the 29th time in the past year, decreasing by 1,536,000 barrels over the week, from 448,530,000 barrels on March 1st to 446,994,000 barrels on March 8th, after our commercial crude supplies had increased by 1,376,000 barrels over the prior week... With this week’s decrease, our commercial crude oil inventories slipped to about 3% below the most recent five-year average of commercial oil supplies for this time of year, but were still more than 33% above the average of our available crude oil stocks as of the first weekend of March over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns of the Spring of 2020, then jumped again after February 2021's winter storm Uri froze off US Gulf Coast refining, but then fell in the wake of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze offs, our commercial crude supplies as of this March 8th were still 6.9% less than the 480,063,000 barrels of oil left in commercial storage on March 10th of 2023, but 7.5% more than the 415,907,000 barrels of oil that we still had in storage on March 11th of 2022, while still 10.7% less than the 500,799,000 barrels of oil we had in commercial storage on March 12th of 2021, after ​refinery damage from winter storm Uri added to the glut of oil remaining after 2020’s pandemic precautions had left a lot of oil unused…

This Week's Rig Count

In lieu of a detailed report on the rig count, we are again just including a screenshot of the rig count summary from Baker Hughes...in the table below, the first column shows the active rig count as of March 15th, the second column shows the change in the number of working rigs between last week’s count (March 8th) and this week’s (March 15th) count, the third column shows last week’s March 8th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 17th of March, 2023...

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Driller Nominates Wildlife Area in Belmont County, OH for Fracking -- In January 2023, Ohio House Bill (HB) 507 became law with the signature of Gov. Mike DeWine (see OH Gov. Signs Bill Expanding Drilling in State Parks, NatGas “Green”). The new law allows shale drilling under (but not on top of) Ohio state-owned land, including state parks. HB 507 encourages (pushes for) more drilling under state-owned land. The special commission created to award contracts — called the Ohio Oil & Gas Land Management Commission (OGLMC) — met in September to consider 12+ “nominations” or requests to drill received at that point (see Ohio Comm. Says 12.5% Royalties for State Land Drilling Too Cheap). More nominations have continued to roll in, including a nomination to drill under Egypt Valley Wildlife Area in Belmont County.

New Request to Drill in Belmont County's Egypt Valley Wildlife Area - - Following on the heels of the Ohio Dept of Natural Resources awarding bids for drilling under state property, another similar request has been made according to an article in the Marcellus Drilling News. According to sources, an unidentified driller has asked the state to open up the Egypt Valley Wildlife Area in Belmont County to the oil and gas extraction industry. This is the first new request to open state lands to drilling since the Oil and Gas Land Management Commission signed leases last month for minerals under a state park and two wildlife areas. This request could add Egypt Valley to a list of other state-owned, protected lands whose subsurface mineral rights were sold last month to out-of-state oil and gas drillers. That list includes Salt Fork State Park in Guernsey County, the Valley Run Wildlife Area in Carroll County and the Zepernick Run Wildlife Area in Columbiana County, and possibly, with approval by the Oil and Gas Land Management Commission, the Egypt Valley Wildlife Area in Belmont County. The Egypt Valley Wildlife Area is a 14,300 acres former surface mining area in northwestern Belmont County and has been administered by the ODNR since the mid 1990’s.

Public Employees Retirement System of Ohio Has $16.72 Million Stock Holdings in Williams Companies, Inc - Public Employees Retirement System of Ohio trimmed its holdings in The Williams Companies, Inc. (NYSE:WMB - Free Report) by 10.0% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 496,422 shares of the pipeline company's stock after selling 54,995 shares during the quarter. Public Employees Retirement System of Ohio's holdings in Williams Companies were worth $16,724,000 as of its most recent filing with the Securities and Exchange Commission (SEC). A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Moneta Group Investment Advisors LLC increased its position in Williams Companies by 96,588.4% in the 4th quarter. Moneta Group Investment Advisors LLC now owns 63,423,739 shares of the pipeline company's stock valued at $2,086,641,000 after buying an additional 63,358,143 shares in the last quarter. Geode Capital Management LLC increased its position in Williams Companies by 2.6% in the 2nd quarter. Geode Capital Management LLC now owns 27,149,522 shares of the pipeline company's stock valued at $883,679,000 after buying an additional 686,381 shares in the last quarter. Clearbridge Investments LLC increased its position in Williams Companies by 6.6% in the 2nd quarter. Clearbridge Investments LLC now owns 23,515,457 shares of the pipeline company's stock valued at $767,309,000 after buying an additional 1,451,317 shares in the last quarter. Morgan Stanley increased its position in Williams Companies by 0.7% in the 4th quarter. Morgan Stanley now owns 19,750,630 shares of the pipeline company's stock valued at $649,796,000 after buying an additional 136,216 shares in the last quarter. Finally, Royal Bank of Canada increased its position in Williams Companies by 85.8% in the 1st quarter. Royal Bank of Canada now owns 16,352,215 shares of the pipeline company's stock valued at $546,327,000 after buying an additional 7,551,749 shares in the last quarter. 85.76% of the stock is owned by institutional investors and hedge funds. The Williams Companies, Inc, together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission & Gulf of Mexico segment comprises Transco and Northwest natural gas pipelines; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region, as well as various petrochemical and feedstock pipelines.

Utica Shale Academy Finds Use for Donated Equipment - – Some donated equipment from the now closed coal-fired W.H. Sammis Power Plant in Stratton will be put to use at the Utica Shale Academy. Utica Shale Academy Superintendent Bill Watson and Bryan Donnelli, the project manager of B&B Wrecking and Excavating of Cleveland, which has been tasked with dismantling the Energy Harbor-owned plant that closed in July, determined $132,400 worth of items could be used by the school. The items include a transmitter calibration unit, eight sets of lockers, jib cranes, six toolboxes, ceiling mounts for training monitors, a training station, electrical training modules, training tables, heavy equipment hydraulic testing equipment, heavy equipment tools, a cabinet, welder generators for heavy equipment course, an internal pump trainer and a variety of valves, gauges, parts and leads for industrial maintenance training. The donation also included two conference tables, small circular tables, 10 8-foot tables, fire extinguishers in wall cabinets, executive desks and chairs. Watson said he learned about the items through a parent, and that the items were not being included in the pending auction for liquidation of the plant. He wrote to B&B officials that donating the items could support students specializing in the trades, such as welding, heavy equipment, industrial maintenance and robotics. “Considering the recent closure of the W.H. Sammis Power Plant, we find ourselves presented with a unique opportunity to turn a moment of transition into a catalyst for positive change,” Watson wrote in the proposal for the donation. “Such a donation would not only enhance the practical learning experience of our students, but also symbolize a meaningful investment in the future workforce of our community.” The items were picked up by instructors and school administrators on a recent professional development day and will be used to open the new programming at the Williams Collaboration Center, in administrative offices, classrooms and for potential other offerings through Youngstown State University. Utica Shale Academy currently serves about 190 students, many at-risk, with plans in the works to expand enrollment up to 350 students. Additionally, the school is planning to provide potential recovery-to-work programs for adults to help drug addicts and returning citizens.

Smart Sand, Inc. sees record 2023 sales, eyes expansion -- Smart Sand, Inc., a premier provider of frac sand and integrated proppant supply solutions, has announced robust financial and operational performance for both the fourth quarter and the full year of 2023. While the company experienced a seasonal slowdown in the fourth quarter, resulting in lower-than-expected revenues and a net loss, it still managed to report record annual sales volume and revenues. Smart Sand sold 4.5 million tons of sand, generating $296 million in revenue for the year. For the upcoming quarters, the company anticipates a significant increase in sales volume and is focusing on expanding its market share, capacity, and product solutions. Smart Sand achieved record annual sales volume of 4.5 million tons and revenues of $296 million in 2023. Q4 2023 saw a seasonal slowdown with revenues at $61.9 million and a net loss of $4.8 million. The company maintained its workforce in anticipation of a strong Q1 2024, with sales volume expected to rise 25-40% compared to Q4 2023. Smart Sand is expanding its industrial product solutions and last-mile business, expecting a 50% increase in sales and service revenues, respectively. The company is optimistic about the growth potential in the Northern White sand market and the Canadian market. Smart Sand plans to increase market share and expand capacity in key markets. Two new terminals in Ohio are expected to be operational by Q2, enhancing access to the Marcellus and Utica Shale basins. A 50% increase in industrial sand sales is projected for 2024. The company anticipates a 5% to 10% increase in sales volumes for the full year 2024 compared to 2023. The Q4 net loss was primarily due to reduced sales volumes and higher operating expenses. Seasonal slowdowns impacted Q4 results, with a decrease in volumes and revenues.

CNX Resources Cuts 2024 Natural Gas Output Guidance, Delays Production Activities Amid Oversupply - -- CNX Resources (CNX) said Tuesday it expects its output this year to be lower than previously estimated as an oversupplied natural gas market has prompted it to delay completion activities on three Marcellus Shale pads consisting of 11 wells.The company said it now expects to produce between 540 and 560 billions of cubic feet equivalent this year, down roughly 30 Bcfe from the midpoint of the previous guidance range.It also said it now expects capital expenditures this year of $525 million to $575 million, down $50 million from the midpoint of the previous guidance range.CNX said it is maintaining the flexibility to return to its long-term production target of about 580 Bcfe next year.

CNX Joins Appalachian Peers in Curbing Production to Combat Low Natural Gas Prices - Appalachian Basin producer CNX Resources Corp. said Tuesday it is tapping the brakes on production growth and slashing output guidance for 2024 in response to the current natural gas price slump. The Pittsburgh-based firm “will delay completions activities on three upcoming Marcellus Shale pads consisting of 11 wells to avoid bringing incremental volumes into the current oversupplied market,” management said. As a result, the company is now expecting 2024 production volumes of 540-560 Bcfe, down roughly 30 Bcfe from the midpoint of the previous forecast. “Additionally, the company maintains the flexibility to return to its previously stated long-term production volume target of approximately 580 Bcfe in 2025,” the firm said.

CNX Delays Completing 11 Wells, Slicing Production 30 Bcfe in ’24 -- CNX Resources, headquartered in Pittsburgh, is the latest major Marcellus/Utica driller to announce a pullback in spending and production due to low-low prices that natural gas is fetching. Yesterday, CNX announced the company will “delay completions activities on three upcoming Marcellus Shale pads consisting of 11 wells to avoid bringing incremental volumes into the current oversupplied market.” The delay means CNX will spend $50 million less on drilling in 2024 and produce 30 billion cubic feet per day (Bcf/d) less over the course of this year.

Pennsylvania plugs 200th orphan well — The Shapiro administration celebrated 200 orphan oil and gas wells plugged on Tuesday. That's double the amount of wells plugged five months ago, thanks in part to what Gov. Josh Shapiro said is "the important bipartisan priority that is capping and plugging orphaned and abandoned wells all across Pennsylvania." A funding boost from the state and federal governments to plug the wells have kickstarted the small-scale program. The wells, hundreds of thousands of them spread across mostly western and northern Pennsylvania, are remnants of the state’s oil and gas industry dating back to the 1850s. Shapiro has proposed $11 million in his budget to plug more wells, in addition to $25 million received from the federal government to get more plugged. DEP has hired more staff to work through the well-plugging program: figuring out if a well still has a legal owner who could be held financially liable, preparing contracts for pluggers, and doing the administrative work. And private pluggers have grown their staff, too. “We have tripled our well plugging workforce, we have tripled the quantity of equipment we have dedicated toward well plugging, and we vastly expanded the various services we offer,” said Tyler Shank, vice president of Penn Mechanical Group, who plugged the 200th well in DEP’s program. Shank noted that the state has found at least 500 wells to plug in Butler County alone. Statewide, the problem only gets harder to ameliorate. “It’s a liability for our commonwealth that’s been over 100 years in the making,” DEP Acting Secretary Jessica Shirley said. “We’re currently estimating that the average cost to plug a well is $100,000, so this problem is about $1 billion in liabilities that we’re tackling head-on. We’re not ignoring it and we’re not pushing it off.” The Shapiro administration so far has spent about $28 million on plugging projects, she noted. Shirley called every well a “ticking time bomb” for its potential risks to people and nature — the wells can be found in rural, urban, and suburban Pennsylvania, and poor record-keeping means that many of them are invisible to state officials. “This particular work is creating thousands of jobs in the private sector,” said Rep. Tim Bonner, R-Grove City, who thanked the governor for prioritizing well-plugging. A recent report from the Ohio River Valley Institute estimated that plugging the wells across Pennsylvania, Ohio, West Virginia, and Kentucky would create about 16,000 jobs. . “Today, Pennsylvania is facing the consequences of a legacy left by an industry that made a buck off our natural resources and then got away with abandoning these gas wells without properly plugging them. That, to me, is unacceptable.” “Wherever it’s possible, we will make sure that those responsible for these wells pay for the plugging, not the taxpayers,” Shapiro said.

NY Assembly Passes Bill to Ban Using CO2 to “Frack” Wells Last month, MDN told you that several New York Democrat legislators introduced a new bill to ban the use of carbon dioxide (CO2) in any process to extract natural gas or oil in the Empire State (see NY Democrats Release Bill to Ban Use of CO2 in Gas Extraction). Following pressure from Big Green groups like Food & Water Watch, the corrupt Democrat legislators in the NY Assembly voted yesterday 97-50 to adopt this illegal bill. Now, it’s on to the Senate, where we’re sure corrupt Senators will pass it, too. Welcome to the People’s Republic of New York.

Natural gas is a winner for Pennsylvania and the whole country - Thanks to the prolific Marcellus and Utica shale plays, our state is one of the highest natural gas producers in the country – second only to Texas. As a result, the commonwealth plays a crucial role in powering our country. But this shouldn’t come as a surprise. Our region has a history of being rich in natural resources. From the days of the first oil discovery to providing the coal and steam that helped to power the industrial revolution to today, where we are at the forefront of natural gas production and innovation. Pennsylvania is a major player when it comes to energy production. This status as an energy leader has also helped to grow the Commonwealth’s economy. According to a report released last fall, in 2022 alone, the energy sector generated more than $41 billion in economic activity for the state. When looking at the natural gas industry specifically as it relates to Pennsylvania, in 2022, more than $3 billion was paid in state and local taxes, with an additional $2.6 billion in federal taxes. The industry has also helped to grow private sector jobs in Pennsylvania. This includes those positions directly tied to the industry and the numerous downstream and indirect jobs and opportunities that have been created as a result of natural gas drilling in the state. In fact, more than 123,000 jobs within the commonwealth are supported by the natural gas industry. These are good-paying jobs that in turn help to promote thriving communities. In some cases, the industry has breathed new life into areas that had been stagnant for decades – presenting new opportunities for growth and revitalization. But the benefits of natural gas don’t end there. Natural gas has proven to be a cleaner energy source. The data from government resources shows that there is a direct correlation between lower emissions and the use of natural gas. Pennsylvania is the perfect case study. As natural gas usage has increased, the state’s greenhouse gas emissions have gone down. Between 2005 and 2018, there was a 40% reduction in volatile organic compounds and an 81% reduction in nitrogen oxides. So, in addition to being abundant, affordable and reliable, we can also add environmentally beneficial to the list of why natural gas is a win for Pennsylvania and our country as a whole.

Marshall County Mineral Rights Owners Looking To New Leasing Agreements – The collective lease agreements held by a group of Marshall County mineral rights owners with oil and gas companies are expiring, and this time they say they won’t deal with land agents wishing to sign them. The group’s representatives are only going to deal directly with the companies, explained mineral rights owner Gabriel Fried, who organized the last contracts for the Krishna-Kay Hill Group. On Sunday afternoon, he addressed about 25 members of the group who gathered in the community reception room at the Krishna compound in New Vrindaban. Fried suggested they needed to discuss strategy moving forward. “I have informed some of the land men that we won’t deal with any land agents,” he said. “We’re only going to negotiate directly with the company. We don’t want somebody in the middle taking anything, and we don’t want the waste of time going back and forth with somebody else. “It’s important that we stand together as having a large mass of land to lease gives us a lot of bargaining power.” The group’s current lease for Utica shale is held by EQT and is set to expire in early April. Their contracts for Marcellus shale already have expired, and were held by SWN, Fried explained. This means the group’s Marcellus shale holdings are now open, and the Utica shale available also will soon be up for lease, he continued. “We have been getting a lot of offers,” Fried said. “We formed a group and negotiated a really good contract 10 years for Utica. … We’re bringing our group back together with our lease expiring. “We’re trying to put together as big and strong a group as we can to make sure the individuals are being taken care of.” He noted “the government has already bought and sold us out,” and referenced a law pertaining to forced pooling in West Virginia that allows oil and gas companies to proceed with drilling if 75% of owners involved accept the deal a company offers them. “It really minimizes what individuals get,” Fried continued. “They get terrible contracts, terrible (contract) language, bad bonus money, and bad royalties. “It just puts it in the hands of big business to do whatever they want, and we need to protect ourselves against that. So we are meeting together as a group and developing a large enough body of properties to get us that bargaining power to be able to protect everybody – both environmentally and financially.” Fried told the group they’ve had “pretty good success working together.” “We’re getting good royalties, and good up front money, and hopefully good lease language as well – which is critical.”

WV Mineral Rights Group Cut Out Landmen, Deal Direct w/Drillers --Marcellus Drilling News - In the early days of the Marcellus/Utica, landowners often formed groups to negotiate lease terms on behalf of all members. It’s a smart move as it tends to deliver better lease terms — more money for a signing bonus, better royalty rates, and better language in the contract. In fact, MDN got its start when editor Jim Willis noticed a group of 300 landowners (many of them farmers) in nearby Deposit, NY, signed a lease deal with XTO Energy for $90 million (see this story). It made more than one millionaire! Some of the leases signed by landowner groups years ago are now expiring and in one case — in Marshall County, WV — group members are once again shopping their land as an entire block, looking for drillers who will give them the best terms.

Backspin: EQT acquires pipeline business spun off in 2018 - In a reversal of recent history, on Monday (Mar. 11) Pittsburgh-based natural gas producer EQT announced it is buying back gas pipeline giant Equitrans Midstream Corp. in a $5.5 billion, all-stock deal. EQT spun off Equitrans (ETRN:NYSE) in 2018. The reunion will create a $35 billion company that EQT describes as “a premier vertically integrated natural gas business.”The deal means that EQT will now control the controversial, under-construction Mountain Valley gas pipeline, a $7.6 billion project to move gas from Appalachia’s Marcellus and Utica shale region some 300 miles across West Virginia to Virginia and North Carolina and potentially to a terminal for export of liquified natural gas.In recounting the deal, the Financial Times of London said EQT “spun off Equitrans Midstream in 2018 owing to pressure from activist investor JANA Partners. That left the former with the upstream business focused on gas exploration and production and the latter on storage and transport.”JANA Partners is a New York activist hedge fund founded in 2001 by Barry Rosenstein with an investment philosophy that includes socially responsible investing. Speaking to reporters announcing the deal, EQT CEO Toby Rice said Mountain Valley “is critically important for the energy security of that region and the U.S.” EQT believes Mountain Valley will not only enable LNG exports but will capitalize on a growing need for electricity to power a regional boom in computing-heavy artificial intelligence companies.In a company news release, Rice said, “As we enter the global era of natural gas, it is imperative for U.S. natural gas companies to evolve their business models to compete on the global stage against vertically integrated rivals. We have identified multiple, high confidence near-term synergies, with significant upside from future infrastructure optimization projects that we believe will drive material value creation for shareholders over time.”Bloomberg commented that the EQT consolidation “is the latest sign that the US fossil fuel sector may be moving back toward favoring the vertical integration of so-called upstream (production), midstream (pipeline and storage) and downstream (refining) assets. In January, gas-station owner Sunoco LP agreed to buy midstream operator NuStar Energy LP for about $6.5 billion.”The Bloomberg analysis continued, “Monday’s deal also adds to a string of recent transactions between midstream companies announced in North America, including ONEOK Inc.’s purchase of Magellan Midstream Partners LP in September and Energy Transfer LP’s takeover of Crestwood Equity Partners LP in November.”

EQT’s Rice Touts Natural Gas ‘Competitive Advantage’ in $5B-Plus Recombination Deal with Equitrans - EQT Corp., the largest natural gas producer in the United States, agreed Monday to buy former entity Equitrans Midstream Corp., bringing back together Appalachian-based giants in what executives said was a game-changing opportunity. The all-stock transaction, estimated Monday at around $5.5 billion, would hold 27.6 Tcfe of proved reserves across nearly two million net acres. Net production would be around 6.3 Bcfe/d net, with 8 Bcfe/d-plus of gathering throughput across 3,000-plus miles of pipeline. EQT in 2018 had spun off Equitrans to focus on exploration and production. The all-stock merger on Monday was valued at around $5.5 billion, and it carries an enterprise value estimated at $35 billion.

Mizuho Downgrades EQT Corporation to Neutral with Revised Price Target - Mizuho’s recent downgrade of EQT Corporation to a Neutral rating from Buy comes with a revised price target of $39.00, down from $46.00. This decision was influenced by factors such as the company’s FY23 reserves, 2024 guidance, and its proposed merger with Equitrans Midstream Corporation. The merger, an all-stock transaction, is expected to create a combined company with an enterprise value exceeding $35 billion. The downgrade was primarily driven by concerns over near-term leverage issues and net asset value dilution following the Equitrans deal. EQT reported fourth-quarter revenue below expectations and adjusted EPS that fell short of consensus estimates. Looking ahead to FY24, the company anticipates sales volume of 2,200 – 2,300 Bcfe and maintenance capital expenditures between $1.950 billion and $2.050 billion. Mizuho’s analyst suggests that EQT will focus on debt reduction and asset integration, potentially leading to excess cash flows being directed towards cash returns. EQT Corporation operates in the Marcellus and Utica shales in the Appalachian Basin, with a focus on multiwell pad development projects for operational efficiency and sustainability. The company’s revenue primarily comes from natural gas reserves in the U.S., particularly in the Marcellus Shale field. On March 13, 2024, EQT stock had a somewhat lackluster performance as it traded in the middle of its 52-week range and below its 200-day simple moving average. The stock opened at $34.39, which was $0.13 lower than its previous close. Throughout the trading day, the price of EQT shares decreased by $0.45, resulting in a 1.30% drop. This price movement indicates that investors may have been hesitant to buy into EQT on this particular day. EQT Corporation (EQT) experienced a relatively stable performance in terms of its financials compared to the previous year and quarter. According to data from CNN Money, the company reported a total revenue of $5.07 billion for the past year, which decreased by 58.24% compared to the previous year. However, the total revenue remained flat since the last quarter at $1.37 billion. Similarly, EQT reported a net income of $1.74 billion for the past year, which held flat since the previous year. The net income for the last quarter was $502.06 million, also holding flat since the previous quarter. Earnings per share (EPS) for EQT stood at $4.22 for the past year, showing a decrease of 3.63% compared to the previous year. The EPS for the last quarter was $1.13, holding flat since the previous quarter. Overall, EQT’s financial performance on March 13, 2024, indicated stability in its revenue, net income, and earnings per share compared to the previous year and quarter. Despite a decrease in total revenue and EPS compared to the previous year, the company managed to hold flat since the last quarter, which could be seen as a positive sign for investors. It will be interesting to see how EQT continues to navigate the market and whether it can sustain its current performance in the coming quarters.

Encore Energy Provides Update for Shale Oil Drilling in Kentucky | Marcellus Drilling News - Kentucky is not known as a hotbed of shale drilling activity. The Marcellus/Utica does not extend under the Bluegrass State. However, as we wrote about back in 2017, Kentucky does have the Berea Sandstone which contains oil deposits (see Fracking Comes to Kentucky – Encore Drills First Horizontal Oil Wells). In 2017 we brought you the news that Encore Energy was just beginning to drill shale wells looking to extract oil from the Berea. Fast forward to today, and there are over 100 horizontal wells permitted, drilled and/or producing in the Berea in Lawrence County. The horizontal Berea play is the most active and prolific oil and gas field operation in Kentucky.

Elba Island LNG Secures Positive Environmental Assessment from FERC - Federal regulators have found that Kinder Morgan Inc. (KMI) and its partners in Elba Island LNG could proceed with a 0.4 million metric tons/year (mmty) expansion project without significant environmental impact. Elba Liquefaction Co. LLC, a joint venture between KMI, Blackstone Credit and an undisclosed third party, filed a request with FERC last October to approve an optimization project for the liquefied natural gas terminal in Chatham County, GA. Staff with the Federal Energy Regulatory Commission concluded in a recently published environmental assessment that the firm could upgrade its existing equipment and add new processing equipment and liquid nitrogen vaporizers without exceeding its environmental authorizations.

Historic Lows for Henry Hub Cash; Natural Gas Futures Flounder — Soft near-term fundamentals keeping pressure on natural gas futures at the front of the curve through midday trading April Nymex contract down 3.7 cents to $1.677/MMBtu as of 1:56 p.m. ET; May off 2.9 cents at $1.794 LNG export demand down to 12.6 Bcf/d in latest Wood Mackenzie estimates Deliveries to Freeport well below capacity at 746,514 Dth for Wednesday, per NGI’s LNG Export Tracker Sixth straight surplus-padding storage report expected from U.S. Energy Information Administration (EIA) Thursday NGI modeling light 3 Bcf withdrawal, versus 87 Bcf five-year average pull At 2,334 Bcf, Lower 48 inventories already 257 Bcf above maximum of 2019-2023 range as of March 1, EIA data show Global Forecast System seen trending colder in midday run by showing “less pronounced warmer break”...

EIA Cuts U.S. Natural Gas Price Forecast Amid Warm Winter Temps, Stout Supply - The U.S. Energy Information Administration (EIA) is slashing its projected 2024 average Henry Hub natural gas spot price by 14% versus its month-earlier forecast after observing record lows for the benchmark in February, the agency said Tuesday. EIA, in its latest Short-Term Energy Outlook (STEO), modeled an average Henry Hub price of $2.27/MMBtu for 2024, with prices expected to then climb to $2.94 on average for 2025. Natural gas price movements in Mexico closely track those in the United States because of Mexico’s heavy reliance on U.S. pipeline imports. Henry Hub averaged only $1.720 in February, a record low when adjusting for inflation, EIA said. Mexico’s IPGN natural gas price index averaged $3.765/MMBtu in January, the latest month for which official data is available...

Delfin seeks DOE extension for FLNG project - Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, is seeking a five-year extension for its LNG export authorizations from the US Department of Energy. The firm is also in talks with South Korea’s Samsung Heavy to reserve a shipbuilding slot for the first FLNG unit. In October last year, Delfin LNG, a unit of Delfin Midstream, won more time from the US FERC to put into service the project’s onshore facilities in Louisiana. Delfin now has time until September 28, 2027, to construct and make available for service the onshore facilities. The company plans to install up to four self-propelled FLNG vessels that could produce up to 13.3 mtpa of LNG or 1.7 billion cubic feet per day of natural gas as part of its Delfin LNG project. Besides this project, it also aims to install two FLNG units under the Avocet LNG project. According to a filling with the DOE dated March 1, Delfin now requests for a conditional extension of its existing long-term, multi-contract authority, as well as related short-term authority, to export LNG from its project. LNG will be exported to any country which has, or in the future develops, the capacity to import LNG via ocean-going carriers and with which the US either has a free trade agreement or does not have such a FTA but with which trade is not prohibited by US law or policy. Delfin said it is “uniquely situated” as the only FLNG project that has received non-FTA export authorization from DOE and the only LNG export project with conditional approval and a favorable record of decision from the Maritime Administration (MARAD). The firm submitted the request 90 days prior to the existing commencement deadline in its non-FTA order, which is June 1, 2024.

Golden Pass, Delfin Take Final Capacity for Kinder Morgan's Texas-Louisiana Expansion Project - Kinder Morgan Inc.’s (KMI) Texas-Louisiana Expansion project, aimed at bringing additional natural gas supply to the Gulf Coast, is now fully subscribed after two LNG exporters signed on as customers. Natural Gas Pipeline Company of America LLC (NGPL), a KMI subsidiary, told FERC in a recent filing it has inked agreements to supply the Golden Pass and Delfin liquefied natural gas projects in Texas and Louisiana. The deals would cover the remaining 130 MMcf/d in capacity available on the proposed expansion, according to NGPL. “Both the Delfin and Golden Pass precedent agreements provide for primary delivery points in Louisiana,” KMI’s Regulatory Director Francisco Tarin wrote in the filing. It is NGPL’s “understanding that the end use of the gas to be transported is...

NextDecade expects FID on fourth Rio Grande LNG train in H2 2024 - US LNG firm NextDecade still expects to take a final investment decision to build the fourth liquefaction train at its Rio Grande LNG export project in Texas in the second half of 2024. NextDecade confirmed this in its fourth quarter business update issued on Monday. The LNG firm said achieving a positive FID of this fully permitted expansion capacity at the Rio Grande LNG Facility will be subject to, among other things, finalizing and entering into EPC contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure. Moreover, the company has started certain pre-FID activities for train 4, including the FEED and EPC contract processes with Bechtel. NexDecade expects to finalize the train 4 EPC contract in the first half of 2024. The company’s partner TotalEnergies has LNG purchase options of 1.5 mtpa for each of train 4 and train 5. If TotalEnergies exercises its LNG purchase options, NecDecade currently estimates that an additional 3 mtpa of LNG must be contracted on a long-term basis for each train prior to making a positive FID for the respective train. NextDecade said it continues to advance commercial discussions with “various potential counterparties” and expects to finalize commercial arrangements for train 4 in the coming months to support the FID of train 4 in the second half of 2024. The firm said in a project update in November last year that it expects to sanction the fourth liquefaction train in the second half of 2024 and confirmed this target in January this year. In July, NextDecade took the final investment decision on the first three Rio Grande trains and completed $18.4 billion project financing. It awarded the $12 billion EPC contract to Bechtel. .

EIA Slashes 2024 Henry Hub Natural Gas Forecast After Record Low February Prices - The U.S. Energy Information Administration (EIA) is slashing its projected 2024 average Henry Hub natural gas spot price by 14% versus its month-earlier forecast after observing record lows for the benchmark in February, the agency said Tuesday. EIA, in its latest Short-Term Energy Outlook (STEO), modeled an average Henry Hub price of $2.27/MMBtu for 2024, with prices expected to then climb to $2.94 on average for 2025. Henry Hub averaged just $1.72 in February, a record low when adjusting for inflation, the agency said. Unsurprisingly for those that closely follow natural gas markets, EIA found that heating degree days have thus far lagged historical norms this winter, totaling 8% below the 10-year average. Residential/commercial demand this winter is poised to come in 9% less than the previous five-year winter average

Natural Gas Futures Lose Ground for Sixth Session as Henry Hub Spot Price Sinks to 15-Year Low – Natural gas futures fell Wednesday, pressured lower by weak near-term fundamentals sending cash prices to new lows and a looming government storage report Thursday that could show a net injection into natural gas stocks for the week of March 8, The April Nymex contract settled at $1.658/MMBtu, down 5.6 cents day/day, for its sixth consecutive decline. NGI’s Spot Gas National Avg. dropped 15.0 cents to $1.135, its second lowest level ever since the price series began in 2013. West Texas sank further into the negative. In Louisiana, the benchmark Henry Hub declined 27.5 cents to average $1.240, its lowest level since Hurricane Ike in 2008. The slump in spot prices comes as spring-like weather suppressed gas demand...

US natgas prices rise 5% on larger-than-expected storage withdrawal (Reuters) -U.S. natural gas futures rebounded from an early two-week low to gain 5%on Thursday after a weekly report showed a larger-than-expected storage withdrawal last week. Front-month gas futures NGc1 for April delivery on the New York Mercantile Exchange rose 8.3 cents, or 5%,to settle at $1.741 per million British thermal units (mmBtu). The U.S. Energy Information Administration (EIA) said utilities pulled a larger-than-expected 9 billion cubic feet (bcf) of gas out of storage during the week ended March 8. That was more than the 3-bcf withdrawal analysts forecast in a Reuters poll, and compares with a withdrawal of 65 bcf during the same week a year ago and a five-year (2019-2023) average decrease of 87 bcf for this time of year. The decline left gas stockpiles about 37% above normal levels for this time of year. The EIA report showed "a bigger withdrawal than expected, but it is still a small withdrawal compared to historical averages", "It is not really a bullish number," "The weather's been very mild even for this time of year and there are some expectations for a little bit of a cold front to come through, so that might help the market," . Prices fell as low as $1.511 per mmBtu on Feb. 27, their lowest since June 2020, as near-record output, mostly mild weather and low heating demand this winter allowed utilities to leave significantly more gas in storage than usual for this time of year. Those low prices will boost U.S. gas use to a record high in 2024, but cause gas production to drop for the first year since 2020 when the COVID-19 pandemic destroyed demand for the fuel, according to the U.S. Energy Information Administration's (EIA) latest outlook. Financial firm LSEG said gas output in the Lower 48 U.S. states has fallen to an average of 100.3 billion cubic feet per day (bcfd) so far in March, down from 104.1 bcfd in February. That compares with a monthly record of 105.5 bcfd in December 2023. Output is down as several energy firms, including EQT and Chesapeake Energy, delay well completions and cut back on other drilling activities. EQT is currently the biggest U.S. gas producer, and Chesapeake will soon become the biggest producer after its merger with Southwestern Energy. LSEG forecast gas demand in the Lower 48 states, including exports, would rise from 109.2 bcfd this week to 111.4 bcfd next week, lower than its outlook on Wednesday.

US natgas prices head for weekly fall on mild weather outlook (Reuters) - U.S. natural gas futures fell about 5% on Friday for a second straight weekly loss, pressured by forecasts for mild weather leading to lower gas demand for heating. Front-month gas futures NGc1 for April delivery on the New York Mercantile Exchange fell 8.6 cents to settle at $1.655 per million British thermal units (mmBtu). Prices were down about 8% for the week. "We think overall gas demand for the remainder of March will be relatively tepid. We just have a super mild winter and now we're sitting here with more gas in storage than we normally would at this time of year," s Meteorologists projected weather across the Lower 48 states would remain warmer than normal through March 18 before turning to near- to colder-than-normal levels from March 19-26. Meanwhile, prices rose more than 8% on Thursday after the U.S. Energy Information Administration (EIA) said utilities pulled a larger-than-expected 9 billion cubic feet (bcf) of gas out of storage during the week ended March 8. This was more than the 3-bcf withdrawal analysts forecast in a Reuters poll, and compares with a withdrawal of 65 bcf during the same week a year ago and a five-year (2019-2023) average decrease of 87 bcf for this time of year. In late February, prices plummeted to $1.511 per mmBtu, marking their lowest level since June 2020. This decline was attributed to several factors, including near-record output, predominantly mild weather conditions, and diminished heating demand throughout the winter season, which led to higher volumes of gas storage. U.S. natgas production will decline this year while demand will rise to a record high, the U.S. EIA said in its Short Term Energy Outlook on Tuesday. The agency also projected those low gas prices would boost domestic gas consumption from a record 89.09 bcfd in 2023 to 89.68 bcfd in 2024 before easing to 89.21 bcfd in 2025 as prices rise. Financial firm LSEG forecast gas demand in the Lower 48 states, including exports, would fall from 110.7 bcfd this week to 110.4 bcfd next week. LSEG said gas output in the Lower 48 U.S. states has fallen to an average of 100.1 billion cubic feet per day (bcfd) so far in March, down from 104.1 bcfd in February. That compares with a monthly record of 105.5 bcfd in December 2023. Liquefied natural gas (LNG) exporter Venture Global LNG on Thursday delivered to U.S. regulators a proposed protective order seeking to keep documents on the construction of a Louisiana export facility confidential.

US weekly LNG exports drop to 23 shipments - US liquefied natural gas (LNG) exports dropped in the week ending March 6 compared to the week before, according to the Energy Information Administration. The agency said in its weekly natural gas report that 23 LNG carriers departed the US plants between February 29 and March 6, three shipments less compared to the week before. Citing shipping data provided by Bloomberg Finance, the agency said the total capacity of these LNG vessels is 87 Bcf. Natural gas deliveries to US terminals down 3.1 percent Average natural gas deliveries to US LNG export terminals decreased by 3.1 percent (0.4 Bcf/d) week over week, averaging 13.4 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Texas fell 6.7 percent (0.3 Bcf/d), while natural gas deliveries to terminals in South Louisiana fell 2.2 percent (0.2 Bcf/d) to 8.8 Bcf/d. The agency said that ongoing repairs at the Freeport LNG terminal in Texas resulting from the January 2024 winter storm have reduced sendout capacity from the facility. Natural gas deliveries to terminals outside the Gulf Coast were flat week over week at 1.2 Bcf/d. Cheniere’s Sabine Pass plant shipped eight cargoes and the company’s Corpus Christi facility sent four shipments during the week under review. Sempra Infrastructure’s Cameron LNG terminal shipped four cargoes, while Venture Global’s Calcasieu Pass LNG terminal sent three cargoes during the week under review. Also, the Cove Point terminal sent two LNG cargoes and the Elba Island LNG terminal and the Freeport terminal each shipped one cargo. Henry Hub slightly up This report week, the Henry Hub spot price rose 3 cents from $1.63 per million British thermal units (MMBtu) last Wednesday to $1.66/MMBtu this Wednesday. The price of the April 2024 NYMEX contract increased 4.4 cents, from $1.885/MMBtu last Wednesday to $1.929/MMBtu this Wednesday. Moreover, the price of the 12-month strip averaging April 2024 through March 2025 futures contracts climbed 1.2 cents to $2.829/MMBtu.

Cheniere’s Corpus Christi LNG expansion project almost 53 percent complete - The Stage 3 expansion project at Cheniere’s Corpus Christi LNG export plant in Texas is almost 53 percent complete, and the US LNG exporting giant is working to start production at the first train later this year. Cheniere’s Corpus Christi liquefaction plant now has three operational trains with each having a capacity of about 5 mtpa.In June 2022, Cheniere took a final investment decision on the Corpus Christi Stage 3 expansion project worth about $8 billion and compatriot Bechtel officially started construction on the project in October the same year.The project was 51.4 percent complete in December last year.It includes building seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa.Cheniere’s unit Corpus Christi Liquefaction said in the January construction report filed with the US FERC last week that overall project completion for the Stage 3 project is 52.7 percent.Stage 3 engineering and procurement are 86 percent and 72.9 percent complete, respectively, while subcontract and direct hire construction work are 69.5 percent and 12.3 percent complete, respectively.

TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound | Hart Energy The Lower 48’s oil and gas landscape is in for some pruning as rig counts are forecast to fall, especially in the Permian Basin, according to an outlook from TPH&Co., the energy business of Perella Weinberg Partners.Taking into account fourth-quarter 2023 earnings and upstream operators’ 2024 guidance, TPH is reducing its near-term outlook for the Lower 48, with the “Permian (-10 rigs), Northeast (-10 rigs) and Eagle Ford (-9 rigs) primarily driving the decline into the third quarter, troughing at 533 rigs (vs. prior 563 rigs and TPH spot of 575 rigs),” Jeff LeBlanc, a TPH analyst, wrote in a March 12 report.For the week of March 8, the Lower 48 rig count stood at 606, according to Baker Hughes. The Permian was running 313 rigs, the Eagle Ford with 52 and the Marcellus Shale with 32.TPH’s outlook is primarily based on the public operators executing on their plans, with guidance indicating a decline of five rigs in the Permian, seven in the Eagle Ford and eight in the Northeast. However, TPH said “continued churn should bias private aggregate activity lower over the next 6-9 months.”“Year-to-date reductions have been most severe in the Haynesville (-11 rigs), but with a handful of reductions still pending, we expect basin activity to ultimately trough at ~35 rigs (~4 rigs below spot levels),” LeBlanc said in the report.Year-over-year, the Haynesville has seen the rig count fall by 29 rigs, with 38 currently running, according to Baker Hughes. The cuts come as E&Ps reduce activity in the face of declining natural gas prices. Gas-focused E&Ps in the Haynesville, Marcellus and Utica shales, including EQT Corp., Chesapeake Energy, Comstock Resources and Antero Resources have announced reductions in drilling and completions. Most recently, CNX Resources said March 12 it would delay completions on 11 Marcellus wells to “avoid brining incremental volumes into the current oversupplied market.”

More Work Expected at Freeport LNG After Train Inspections – Train 3 at Freeport LNG was in the process of restarting on Friday, according to a source with knowledge of the matter. An electrical motor that was damaged by severe cold in January has been repaired and is back online. Feed gas nominations were up slightly Friday. Following inspections, Freeport will now make upgrades requiring more work on Trains 1 and 2. An inspection on Train 2 is currently “progressing well,” the source said. Train 1 will be shut down for inspections and work once Train 2 is finished. FERC again excluded Venture Global LNG Inc.’s CP2 project from the agenda for next week’s meeting and will not decide on the company’s application for approval that was filed in 2021.

Fire contained after oil tanks ignite at quarry outside DC - — Several oil tanks caught on fire late Thursday morning at a quarry in the Maryland suburbs of Washington sending thick plumes of black smoke into the air that were visible for miles. The fire was contained by early afternoon while three tanks continued to burn, Montgomery County Fire and Rescue spokesperson Pete Piringer said during a 2 p.m. news conference. Officials said no injuries were reported. Piringer said two of the tanks contained liquid asphalt and the third contained used motor oil.

Crews cleaning up diesel spill at Seabee Base -- A clean-up took place at the Naval Construction Battalion Center in Gulfport following a diesel spill. Officials say about 1,800 gallons of diesel fuel were accidently discharged into a drainage ditch Saturday. The fuel was contained “within installation boundaries,” according to the Seabee Base. Officials do not expect there to be any risk to public health or safety- or impacts to residents living on base. “Contractors specially trained in oil spill removal swiftly responded within 24 hours of the incident’s detection, initiating cleanup efforts promptly,” a press release from the Seabee Base read. “Members of the Navy On-Scene Coordinator (OSC) program arrived March 11 from installation headquarters, Navy Region Southeast, to lead clean-up efforts and to evaluate the site for environmental, safety and health impacts. The Navy OSC is working closely with state officials to ensure the response meets federal and state requirements.” The clean-up efforts are ongoing.

US energy industry methane emissions are triple what government thinks, study finds American oil and natural gas wells, pipelines and compressors are spewing three times the amount of the potent heat-trapping gas methane as the government thinks, causing $9.3 billion in yearly climate damage, a new comprehensive study calculates. But because more than half of these methane emissions are coming from a tiny number of oil and gas sites, 1% or less, this means the problem is both worse than the government thought but also fairly fixable, said the lead author of a study in Wednesday’s journal Nature.The same issue is happening globally. Large methane emissions events around the world detected by satellites grew 50% in 2023 compared to 2022 with more than 5 million metric tons spotted in major fossil fuel leaks, the International Energy Agency reported Wednesday in their Global Methane Tracker 2024. World methane emissions rose slightly in 2023 to 120 million metric tons, the report said.“This is really an opportunity to cut emissions quite rapidly with targeted efforts at these highest emitting sites,” said lead author Evan Sherwin, an energy and policy analyst at the U.S. Department of Energy’s Lawrence Berkeley National Lab who wrote the study while at Stanford University. “If we can get this roughly 1% of sites under control, then we’re halfway there because that’s about half of the emissions in most cases.”Sherwin said the fugitive emissions come throughout the oil and gas production and delivery system, starting with gas flaring. That’s when firms release natural gas to the air or burn it instead of capturing the gas that comes out of energy extraction. There’s also substantial leaks throughout the rest of the system, including tanks, compressors and pipelines, he said.“It’s actually straightforward to fix,” Sherwin said.In general about 3% of the U.S. gas produced goes wasted into the air, compared to the Environmental Protection Agency figures of 1%, the study found. Sherwin said that’s a substantial amount, about 6.2 million tons per hour in leaks measured over the daytime. It could be lower at night, but they don’t have those measurements.The study gets that figure using one million anonymized measurements from airplanes that flew over 52% of American oil wells and 29% of gas production and delivery system sites over a decade. Sherwin said the 3% leak figure is the average for the six regions they looked at and they did not calculate a national average.Methane over a two-decade period traps about 80 times more heat than carbon dioxide, but only lasts in the atmosphere for about a decade instead of hundreds of years like carbon dioxide, according to the EPA.About 30% of the world’s warming since pre-industrial times comes from methane emissions, said IEA energy supply unit head Christophe McGlade. The United States is the No. 1 oil and gas production methane emitter, with China polluting even more methane from coal, he said.Last December, the Biden administration issued a new rule forcing the U.S. oil and natural gas industry to cut its methane emissions. At the same time at the United Nations climate negotiations in Dubai, 50 oil companies around the world pledged to reach near zero methane emissions and end routine flaring in operations by 2030. That Dubai agreement would trim about one-tenth of a degree Celsius, nearly two-tenths of a degree Fahrenheit, from future warming, a prominent climate scientist told The Associated Press.Monitoring methane from above, instead of at the sites or relying on company estimates, is a growing trend. Earlier this month the market-based Environmental Defense Fund and others launched MethaneSAT into orbit. For energy companies, the lost methane is valuable with Sherwin’s study estimate it is worth about $1 billion a year.About 40% of the global methane emissions from oil, gas and coal could have been avoided at no extra cost, which is “a massive missed opportunity,” IEA’s McGlade said. The IEA report said if countries do what they promised in Dubai they could cut half of the global methane pollution by 2030, but actions put in place so far only would trim 20% instead, “a very large gap between emissions and actions,” McGlade said.“It is critical to reduce methane emissions if the world is to meet climate targets,” said Cornell University methane researcher Robert Horwath, who wasn’t part of Sherwin’s study. “Their analysis makes sense and is the most comprehensive study by far out there on the topic,” said Howarth, who is updating figures in a forthcoming study to incorporate the new data.The overflight data shows the biggest leaks are in the Permian basin of Texas and New Mexico. “It’s a region of rapid growth, primarily driven by oil production,” Sherwin said. “So when the drilling happens, both oil and gas comes out, but the main thing that the companies want to sell in most cases was the oil. And there wasn’t enough pipeline capacity to take the gas away” so it spewed into the air instead.Contrast that with tiny leak rates found in drilling in the Denver region and the Pennsylvania area. Denver leaks are so low because of local strictly enforced regulations and Pennsylvania is more gas-oriented, Sherwin said. This shows a real problem with what National Oceanic and Atmospheric Association methane-monitoring scientist Gabrielle Petron calls “super-emitters.” “Reliably detecting and fixing super-emitters is a low hanging fruit to reduce real life greenhouse gas emissions,” Petron, who wasn’t part of Sherwin’s study, said. “This is very important because these super-emitter emissions are ignored by most ‘official’ accounting.”Stanford University climate scientist Rob Jackson, who also wasn’t part of the study, said, “a few facilities are poisoning the air for everyone.”“For more than a decade, we’ve been showing that the industry emits far more methane than they or government agencies admit,” Jackson said. “This study is capstone evidence. And yet nothing changes.”

Texas sues Biden administration over finalized methane rule - The state of Texas on Friday sued the Biden administration over an Environmental Protection Agency (EPA) rule restricting methane emissions finalized earlier Friday morning. The lawsuit was requested in late January by the Texas Railroad Commission, the state’s primary oil and gas regulator, while the rule was still being finalized. In a request to Texas Attorney General Ken Paxton (R), the commission asked for legal action on the rule. Paxton responded Friday with a legal petition against the federal rule. The EPA estimates the rule, first announced in 2023, could cut up to 58 million tons of methane emissions by 2038. It adds more stringent requirements for practices such as flaring and plugging leaks. While methane dissipates from the atmosphere faster than carbon dioxide, it is far more potent at trapping heat in the atmosphere. In a statement in February, the Railroad Commission called the rule “extremely unreasonable, and time-consuming, given that there have been vast improvements with reduced methane emissions in the state.” “The new rules will create an undue burden on regulators as well as the oil and gas industry, by forcing further emission reductions in remote, unmanned locations,” the commission said. Environmental advocacy and legal groups blasted the vote by the commission and the complaint from Paxton’s office, noting the hazards associated with methane. “The EPA’s strong methane rule will force significant cuts to this dangerous pollution, and we’re ready to go to court to defend it against the Texas lawsuit or any other baseless industry attacks,” Maggie Coulter, a senior attorney at the Center for Biological Diversity’s Climate Law Institute, said in a statement. “For way too long oil and gas companies have gotten away with venting and ignoring leaks of this extraordinarily powerful greenhouse gas, and that has to stop. Curbing methane pollution is important, but it has to be part of a larger plan to fight the climate emergency with a swift, just transition to renewables.” An EPA spokesperson told The Hill the agency does not comment on pending litigation.

Plan to drill for oil and gas near Aurora Reservoir is raising red flags – A proposed 166-well oil and gas project in suburban Denver could imperil a decades-long, multimillion-dollar effort to prevent carcinogenic chemicals stored on one of the nation’s most contaminated industrial sites from leaking into groundwater, letters from federal and state officials show. Regulators expressed concern in May that drilling underneath and near the Lowry Landfill Superfund site could cause small cracks in bedrock cradling millions of gallons of toxic waste in 78 unlined trenches. These fissures could allow contaminants to enter an aquifer system that millions of Coloradans rely on, the U.S. Environmental Protection Agency wrote to Civitas, the operator requesting permission to drill. The EPA oversees a complex 40-year effort to protect the health of millions of people living around the site.The agency’s concerns stem from the issues that have long surrounded hydraulic fracturing, or fracking, a drilling process that has led Colorado in the last decade to become the nation’s fourth largest oil-producing state. The method involves pumping sand and millions of gallons of water and chemicals roughly a mile under the surface to crack shale, and release oil and gas. Civitas is one of the top five producers in Colorado. “The EPA is concerned that hydraulic fracturing surrounding and underneath the site could lead to a significant unintended release of hazardous substances,” the agency wrote in May to Dan Harrington, who leads Civitas’ development initiatives. This “contamination is held in place by a bedrock layer which could, under certain conditions, be subject to microfractures from fracking.” In response, Civitas sent a letter to the EPA in September and committed not to drill under the site, saying: “This precaution is not due to any risk associated with oil and natural gas development, but a desire to protect the Superfund remedy that is in place and operating effectively.” The EPA cited the company’s commitment when asked if it is still apprehensive about Civitas’ plans to drill near the site and said in an email that it will “continue to coordinate with all parties to evaluate these and other site concerns.” Civitas did not return repeated requests for comment. Civitas refiled its drilling plan on Feb. 23 after making a series of revisions requested by state regulators. A 60-day public comment period ends April 23, and a hearing on the proposal is scheduled in front of the Energy and Carbon Management Commission for June 26.The operator’s agreement not to drill under the Superfund site failed to reduce the anxiety of scores of households near the 50-square-mile proposed oil and gas project, which includes wells near the Aurora Reservoir. The facility is part of a system of reservoirs that store drinking water for about 390,000 people and is a popular recreation area. Drilling currently exists about five miles from the Superfund site. Civitas is proposing well pads much closer — within about two miles. But horizontal pipes that extend beneath the proposed production area could come even closer to the site boundary.

TC Energy's Keystone oil pipeline restarts after going offline - (Reuters) TC Energy's Keystone oil pipeline resumed service after going offline and temporarily restricting a major conduit of Canadian oil to the United States, which sent oil prices higher.The 622,000 barrel-per-day pipeline has been dogged by problems, including a 2022 spill in rural Kansas.TC said in a statement late afternoon that Keystone was safely operating after briefly suspending service as a precautionary measure.The Calgary, Alberta-based company said it had confirmed the pipeline's integrity and no oil was released. Earlier, TC notified shippers of the outage, citing operational issues but not offering specifics, one industry source said. The company did not say how much of the Keystone network was down or for how long."With Keystone, we're seeing a pattern of these sporadic outages," said Rory Johnston, founder of the Commodity Context newsletter. "Western Canada is so often operating on a knife’s edge of crude egress capability." Keystone, stretching 4,850 km (3,000 miles), transports oil from Alberta to Nebraska, where it splits, with one arm running east to the Midwest and the other running south to the U.S. crude storage hub in Cushing, Oklahoma, and to the Gulf, where it is processed by refiners or exported.Last month, executive vice-president of liquids Bevin Wirzba told analysts on a quarterly call that TC had inspected 80% of the Keystone system during the year since the Kansas spill and found no potential issues with the pipeline's integrity.The main alternative to Keystone is Enbridge's Mainline, which is running in March at 25% apportionment for light oil and 20% apportionment for heavy oil.The discount on Western Canada Select (WCS) heavy crude for April delivery grew to as much as $16.30 per barrel in Alberta compared to West Texas Intermediate, from as little as $15.75, according to brokerage CalRock. At Cushing, WCS traded at a discount of $7.30 per barrel, shrinking 40 cents on the prospect of Canadian supplies becoming tighter at the hub, brokers said.The Keystone outage happened as shippers await completion of the Trans Mountain pipeline expansion, which will nearly triple capacity of a line moving oil from Alberta to the British Columbia coast, providing long-awaited relief to Canada's pipeline congestion.

North Dakota reports pair of oil, brine spills - InForum | Fargo, Moorhead and West Fargo news, weather and sports— The North Dakota Department of Mineral Resources' Oil and Gas Division reported two oil and produced water spills have happened in recent days in the western portion of the state. The first of the spills was a release of 300 barrels, or about 12,500 gallons, of produced water, which occurred Saturday, March 9, west of Killdeer in Dunn County. Horizon-Olson LLC reported to the state that the spill was the result of an equipment failure or malfunction, the department stated via press release. All of the water was recovered from the site, the state added. The second spill took place Monday, March 11, near Renville in Bottineau County and included 10 barrels, or about 420 gallons, of oil and 500 barrels or about 20,500 gallons, of produced water. Scout Energy Management LLC reported the spill the same day. At that time, all of the oil and 490 barrels of produced water had been recovered. According to materials from North Dakota State University Extension, produced water, also known as brine, is concentrated ocean water that travels through rocks and is a byproduct of oil and gas extraction. State inspectors have visited both spill locations and will monitor any additional cleanup efforts.

Coast Guard investigates possible oil spill off Huntington Beach - Los Angeles Times --The U.S. Coast Guard is investigating an oil sheen off the coast of Huntington Beach that stretches about two miles long and half a mile wide, officials said Friday. Officials received a report about 6:50 p.m. Thursday of an unknown substance about 1½ miles offshore, and local emergency responders were on site through the night, the agency said. Early Friday, Coast Guard officials flew over the site and confirmed an oil sheen almost three miles offshore that they said was not from natural statedcauses. Orange County Supervisors Don Wagner and Katrina Foley both posted on social media about the incident Friday morning to their constituents. “Early thoughts are that it’s from a platform,” Foley posted on X at 8:05 a.m. The Coast Guard reported the oil sheen was near platforms Emmy and Eva and potential sources for it have been contacted, but none have been officially identified. Wagner stated on X that “Emergency personnel are on scene and working to identify the source.” By Friday night, roughly 85% of the sheen — or about 85 gallons — had been recovered, according to the Coast Guard. Operations were halted for the evening, but a helicopter was set to inspect the area again at first light Saturday.Officials were still investigating the source of the substance, as well as assessing any wildlife impacts. One oiled grebe was recovered Friday, the Coast Guard said.The city of Huntington Beach has not announced any beach closures, but mariners have received a safety alert to stay out of the area. A KTLA-TV helicopter captured images and video of a dark, reflective substance floating across the water, and locals have started to see some of that oil washing ashore. “We’re seeing some tarballs coming up on the [Huntington] Dog Beach,” Foley said by phone.As of Friday evening, neighboring beach cities were not reporting any signs of oil residue on their shores.Newport Beach officials said police officers and lifeguards had been deployed to monitor the coast for any signs of petroleum.“The spill is not believed to pose a threat to Newport Beach,” city officials said in astatement.In Long Beach, city officials said beaches there remain open with no visible impacts.Costa Mesa resident Kent Adams was out on a walk with his dog on Friday morning when he noticed a Frisbee-sized spot of oil washed up on the south entrance to the dog park. “You rarely see that,” said Adams. “I usually stay away from the beach if I know about them, because I don’t want it all over her.” With still no identifiable source, the California Department of Fish and Wildlife has joined with other agencies in trying to determine if the oil sheen is from an active spill, state Sen. Dave Min (D-Irvine) said in a statement. Gov. Gavin Newsom commented on social media that state officials “are actively monitoring” the situation in collaboration with “local, state and federal partners.” A representative for the Center for Biological Diversity, a nonprofit environmental group based in Arizona, said California officials need to take stronger action to remove the offshore oil rigs to protect the ocean and marine life.

Update: Cause of oil sheen off California still undetermined, but contained, Coast Guard says – What caused a 2-mile long oil sheen spotted offshore of Huntington Beach late last week is still unclear, but enough has been cleaned up for the emergency response effort to come to an end, United States Coast Guard officials announced Monday afternoon. The sheen spotted March 7 prompted quick response from the United Command, a group of several agencies that combine efforts to contain oil off the coast, formed following the 2021 oil spill in the same area that reached shore and impacted everything from beach access to businesses along the coastline. Preliminary laboratory results of samples of the oil analyzed by the Office of Spill Prevention and Response – part of the Department of Fish and Wildlife – confirmed the release is lightly weathered crude oil and not a refined product, such as gasoline or diesel, but the Petroleum Chemistry Lab was unable to definitively identify the oil source, the Coast Guard said in its announcement Monday. Clumps of tar lay among the other debris on Huntington Dog Beach in Huntington Beach on Saturday morning, March 9, 2024. The United States Coast Guard received a report on Thursday evening, March 7, from the National Response Center about a 2-mile-long oil sheen off Huntington Beach's coast. (Photo by Mark Rightmire, Orange County Register/SCNG) Clumps of tar lay among the other debris on Huntington Dog Beach in Huntington Beach on Saturday morning, March 9, 2024. The United States Coast Guard received a report on Thursday evening, March 7, from the National Response Center about a 2-mile-long oil sheen off Huntington Beach’s coast. (Photo by Mark Rightmire, Orange County Register/SCNG) The samples are consistent with local crude oil, officials said, with characteristics of the Monterey Formation, and not imported oil that may have been brought by ship to California. The lab results were also inconsistent with archived samples from oil platforms in the area. Earlier in the day, US Coast Guard public affairs specialist Richard Uranga said samples were thought to be from natural sources of seepage. But later in the day, a Coast Guard update said lab results were also inconsistent with archived samples from the area of both refinery oil and naturally released oil. The samples do not match any in the CDFW database that covers the past 25 years, said Coast Guard Petty Officer Richard Brahm. “That’s really where we’re at. They’ll keep taking samples of all this stuff until maybe they get a hit, or maybe they don’t,” he said. “I wish we had an answer. It’s definitely from the area, but we can’t pinpoint where it came from.” The Coast Guard received a report about 7 p.m. on Thursday, March 7, from the National Response Center about the sheen on the ocean’s surface off Huntington Beach’s coast. It was first spotted about 2.8 miles off Huntington Beach near two oil platforms, Emmy and Eva. It was visually confirmed at first light the next day and containment efforts began. Operations are now complete, currently in the “decontamination phase” cleaning booms and boats, Uranga said. The preliminary laboratory results indicate that the oil samples analyzed from this incident are more characteristic of freshly produced oil than heavily weathered oil, which is associated with typical natural seeps, according to the USCG statement. According to the National Oceanic Atmospheric Administration, crude oil entering the ocean is known as “seeps” and add about five million gallons of oil into the ocean each year. While seeps are from a natural source, they can appear similar appearance and behavior and have similar effects as oil released during drilling and other human activities. Both natural and processed oil can have environmental impacts and be toxic to fish, sea stars and shrimp, with the toxic effects largely limited to the immediate area of the release. More than 1,000 birds each year are oiled in Southern and Central California, primarily due to natural seeps, according to NOAA. In this latest incident, two oiled birds died and several more were brought in for observation and cleaning, officials said. Tar balls washed ashore in the areas of Huntington Beach’s Dog Beach.

Oil cleanup underway off Huntington Beach, California coast – Multiple agencies in Southern California are responding to an oil spill off the coast of Huntington Beach, including the care of oil-covered wildlife. The U.S. Coast Guard Los Angeles-Long Beach Command Center received a report March 7th of a substance more than 2 miles off the coast of Huntington Beach. Teams with the Coast Guard Pollution Responders completed a flight over the area and discovered an oil sheen in the Pacific Ocean spanning 2.5 miles long and half a mile wide. A Unified Command with representatives from the US Coast Guard (USCG), California Department of Fish and Wildlife’s Office of Spill Prevention and Response (CDFW-OSPR), and Orange County Sheriff’s Department are responding to an oil sheen observed offshore of Huntington Beach, March 8, 2024. A Unified Command with representatives from the US Coast Guard (USCG), California Department of Fish and Wildlife’s Office of Spill Prevention and Response (CDFW-OSPR), and Orange County Sheriff’s Department are responding to an oil sheen observed offshore of Huntington Beach, March 8, 2024. (U.S. Coast Guard) The oil is located between the oil processing platforms known as Emmy and Eva, according to the Coast Guard. Reuters reported on Friday that Amplify Emergy Corp. subsidiary Beta Offshore reported a spill of produced water from its offshore Platform Elly, causing the company to shut down the pipeline. According to Reuters, the same platform caused a large oil spill disaster in October 2021, shutting down area beaches. Coast Guard officials said a discharge of produced water was released from Platform Elly on March 8. However, the "characteristics of the produced water from Platform Elly do not align with what was observed from the sheen. At this time, we do not believe the sheen and the discharge are related." The Coast Guard continues to investigate the source of the oil. There are no beach or fishery closures because of the spill. California's Office of Environmental Health Hazard Assessment does not believe a public health threat exists. The Oiled Wildlife Care Network has been surveying the shoreline and recovering any wildlife affected by the oil. As of Saturday, four live birds were taken in for care, and three were covered in oil. Another injured snowy plover, which was not covered in oil, was also taken in for care.

US Coast Guard says no oil sheen seen off California after spill (Reuters) -The U.S. Coast Guard said an overflight on Sunday no longer detected an oil sheen off the coast of Huntington Beach, California, after oil spill discovered on Friday was cleaned up. The agency said offshore recovery assets would be demobilized after they recovered about 85 gallons (322 liters) of product from the ocean. "Shoreline cleanup teams continue to observe tar balls along the beaches in Huntington Beach and will continue to remove them as needed," the agency said, adding they had already removed about 800 pounds (363 kg) of oily waste and tar balls. The agency spotted the oil spill on Friday about 2.8 miles (4.5 km) off Huntington Beach, near two drilling platforms. An investigation into the cause of the oil spill is currently under way, the agency said on Saturday. Beta Offshore, a subsidiary of Amplify Energy (NYSE:AMPY) Corp reported a potential spill of produced water from its offshore Platform Elly off Huntington beach on Friday, according to a regulatory filing, causing the company to shut down a pipeline. The Coast Guard on Sunday said reports of Platform Elly reporting a discharge of produced water on the morning of March 8 are correct, but the "characteristics of the produced water from Platform Elly do not align with what was observed from the sheen." "Currently, we do not believe the sheen and the discharge are related," the agency added.

Update: Cause of oil sheen off California still undetermined, but contained, Coast Guard says – What caused a 2-mile long oil sheen spotted offshore of Huntington Beach late last week is still unclear, but enough has been cleaned up for the emergency response effort to come to an end, United States Coast Guard officials announced Monday afternoon. The sheen spotted March 7 prompted quick response from the United Command, a group of several agencies that combine efforts to contain oil off the coast, formed following the 2021 oil spill in the same area that reached shore and impacted everything from beach access to businesses along the coastline. Preliminary laboratory results of samples of the oil analyzed by the Office of Spill Prevention and Response – part of the Department of Fish and Wildlife – confirmed the release is lightly weathered crude oil and not a refined product, such as gasoline or diesel, but the Petroleum Chemistry Lab was unable to definitively identify the oil source, the Coast Guard said in its announcement Monday. The samples are consistent with local crude oil, officials said, with characteristics of the Monterey Formation, and not imported oil that may have been brought by ship to California. The lab results were also inconsistent with archived samples from oil platforms in the area. Earlier in the day, US Coast Guard public affairs specialist Richard Uranga said samples were thought to be from natural sources of seepage. But later in the day, a Coast Guard update said lab results were also inconsistent with archived samples from the area of both refinery oil and naturally released oil. The samples do not match any in the CDFW database that covers the past 25 years, said Coast Guard Petty Officer Richard Brahm. “That’s really where we’re at. They’ll keep taking samples of all this stuff until maybe they get a hit, or maybe they don’t,” he said. “I wish we had an answer. It’s definitely from the area, but we can’t pinpoint where it came from.” The Coast Guard received a report about 7 p.m. on Thursday, March 7, from the National Response Center about the sheen on the ocean’s surface off Huntington Beach’s coast. It was first spotted about 2.8 miles off Huntington Beach near two oil platforms, Emmy and Eva. It was visually confirmed at first light the next day and containment efforts began. Operations are now complete, currently in the “decontamination phase” cleaning booms and boats, Uranga said. The preliminary laboratory results indicate that the oil samples analyzed from this incident are more characteristic of freshly produced oil than heavily weathered oil, which is associated with typical natural seeps, according to the USCG statement. According to the National Oceanic Atmospheric Administration, crude oil entering the ocean is known as “seeps” and add about five million gallons of oil into the ocean each year. While seeps are from a natural source, they can appear similar appearance and behavior and have similar effects as oil released during drilling and other human activities. Both natural and processed oil can have environmental impacts and be toxic to fish, sea stars and shrimp, with the toxic effects largely limited to the immediate area of the release. More than 1,000 birds each year are oiled in Southern and Central California, primarily due to natural seeps, according to NOAA. In this latest incident, two oiled birds died and several more were brought in for observation and cleaning, officials said. Tar balls washed ashore in the areas of Huntington Beach’s Dog Beach. Waste disposal company US Ecology was contracted for the cleanup by the Coast Guard, with an estimated 1,050 pounds of oil waste, such as tar balls, collected and disposed of and 85 gallons of oil collected from the water.

Huntington Beach Oil Sheen Appears to Be Result of Natural Seepage - The oil sheen spotted in Huntington Beach last week appears to be natural seepage of crude bubbling up from the ocean floor, a Coast Guard spokesman said, but its definitive source remained unclear Tuesday. The Coast Guard was in “decontamination phase” as of Monday morning as the agency cleans its equipment and works on disposing of the oil waste, Coast Guard Petty Officer Richard Uranga said. Tests of oil from the area’s oil-drilling rigs did not match the crude that was originally spotted in a roughly 2.5-mile-long sheen Thursday evening, Uranga said. So experts believe it is likely from natural seepage, Uranga added. What was unusual about the incident was how much crude was seen, he said. Usually, natural seepage goes unnoticed, he added. “We don’t know what caused so much to appear,” he said. Coast Guard officials issued a statement Monday saying experts could not “definitively identify the oil source.” But, according to the statement, the samples analyzed “confirm that the release is lightly weathered crude oil and not a refined product like gasoline or diesel. They also indicate that the samples are consistent with local crude oil with characteristics of the Monterey Formation and not imported crude oil that may be brought by ship to California.” The experts discounted that it had anything to do with a discharge of produced water from oil Platform Elly Friday morning. The Coast Guard has collected 1,050 pounds of oil waste and recovered 85 gallons of oil from the sheen, Uranga said. The 1,000-yard safety zone that had been established in the area was lifted, Uranga said. It’s unknown how much the recovery costs are at this time, since efforts are ongoing. The Coast Guard’s Sector Los Angeles-Long Beach Command Center said it received a report at 6:50 p.m. Thursday of an unknown substance in the water 1.5 miles off the coast of Huntington Beach. Coast Guard Pollution Responders got underway at 6:30 a.m. Friday with a Newport Harbor Patrol boat to investigate. A Coast Guard helicopter also conducted an overflight in the area at sunrise that morning. Upon investigation, an oil sheen was discovered that spanned 2.5 miles in length and a half-mile in width, roughly 2.8 miles off Huntington Beach near platforms Emmy and Eva, according to the Coast Guard. Despite not having drones to review the oil sheen, the Coast Guard was “still able to get visual information,” Uranga said.

US leads global oil production for sixth straight year- EIA (Reuters) - U.S. crude oil production lead global oil production for a sixth straight year, with a record breaking average production of 12.9 million barrels per day (bpd), the Energy Information Administration (EIA) said in a release on Monday.In December, U.S. crude oil production hit a new monthly record high of over 13.3 million bpd, the agency said."The United States produced more crude oil than any nation at any time, according to our International Energy Statistics, for the past six years in a row," the EIA added.The EIA says it is unlikely that the record will be broken by another country in the near term.Elsewhere, Saudi Arabia's government in January ordered Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), one million bpd below a target announced in 2020.Global benchmark Brent fell on Monday, dipping below $82 a barrel, as persistent geopolitical concerns in the Middle East and Russia collide with jitters about softening demand in China. Recently, OPEC+ members led by Saudi Arabia and Russia agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, giving extra support to the market amid concerns over global growth and rising output outside the group.

US to drive oil and gas project starts in North America up to 2028 -New build projects drive the upcoming projects landscape, constituting 83% of the total across the oil and gas value chain. North America will witness 558 oil and gas projects commencing operations between 2024 and 2028 across the value chain. Of these, 74 will be upstream projects (excluding the US L48 projects) and 263 will be midstream with refinery and petrochemicals at 102 and 119 respectively. In midstream, the trunk/transmission pipelines segment alone constitutes 44% of all projects, followed by oil storage and liquefied natural gas with 18% and 17% respectively. New build projects drive the upcoming projects landscape in North America, constituting 83% of the total. The share of new build projects is especially high in the midstream sector, accounting for 52% of total new build projects across the value chain. The upstream (fields) sector has the highest number of expansion projects, accounting for 33% of total expansion projects in the value chain. In North America, 37% of the projects are in the construction and commissioning stages and are likely to commence operations during the 2024 to 2028 outlook period. 31% of the projects are in the early stages (feasibility/front-end engineering design) and the rest have been approved or await approval. The US dominates the upcoming projects landscape in North America, accounting for 71% of the total projects expected to begin operations by 2028. Further details of North American projects can be found in GlobalData’s new report, North America Oil and Gas Projects by Development Stage, Capacity, Capex, Contractor Details of All New Build and Expansion Projects to 2028

Shareholder proposal calls on Enbridge to disclose indirect emissions from pipelines — Energy giant Enbridge Inc. is urging shareholders at its upcoming annual meeting to vote against a proposal calling on the company to do more to disclose the climate impact of its pipeline business. The shareholder proposal filed by Investors For Paris, a group that aims to hold publicly traded companies accountable for their net-zero promises, calls on Enbridge to disclose the "Scope 3" or end-use emissions produced by the oil and natural gas it transports in its pipeline network. "If a company’s financial viability is dependent on scope 3 emissions being released — as is the case with Enbridge — then it is critical that investors have a full and complete picture of these emissions," the proposal states. The term "Scope 3" refers to emissions that a company is indirectly responsible for, such as the greenhouse gases generated when a customer uses the company's product. Most major Canadian energy firms currently disclose the emissions they produce themselves in their day-to-day business operations, but have been far more reluctant to take accountability for end-use emissions, such as those produced when consumers burn fossil fuels in their cars. Including Scope 3 emissions in their climate disclosures would massively increase the size of the carbon footprint that energy companies must report to investors and the public. Enbridge itself currently discloses the Scope 3 emissions produced by its natural gas utility business, by tallying the emissions generated when customers burn natural gas to heat their homes. But it doesn't provide an accounting of the end use of the fossil fuel products it transports in its pipeline business. Duncan Kenyon, director of corporate engagement with Investors For Paris, said that's a problem because shareholders need to know whether the company's portfolio is aligned with a future that will increasingly depend on renewables and other forms of clean energy. "Many shareholders actually understand that Scope 3 isn't just a greenhouse gas reporting metric, it's actually a trend metric showing where the company is going in terms of adopting and responding to the energy transition," Kenyon said. "It's a metric that highlights the exposure risk of the company to energy transition." Scope 3 emissions are an increasing area of focus for shareholder proposals. In the past two years, according to a database by Ceres, an organization which tracks climate-related shareholder resolutions, more than 30 proposals related to Scope 3 disclosures have been brought forward at the general meetings of major North American publicly traded companies. Investors for Paris brought a similar resolution to Enbridge's annual meeting last year, at which time approximately 25 per cent of shareholders voted in favour of the company adopting more extensive Scope 3 disclosure practices. In its response to this year's proposal, Enbridge said it is currently unable to accurately and reliably track third-party use of the oil and natural gas it transports for customers. The company said it takes Scope 3 emissions seriously, and in 2021 began reporting the "emissions intensity" of the energy it transports via pipeline. But it said there have been no clear regulatory guidelines or widely accepted methodologies developed to report on end-use emissions from products that Enbridge moves, but doesn't own.

LNG Canada first phase nears completion -- After years of careful planning, robust community engagement, and safe construction, the first phase of the LNG Canada LNG export facility is nearing completion in Kitimat, in the traditional territory of the Haisla Nation in British Columbia (B.C.). With construction work almost complete, commissioning and start-up activities are set to begin, marking another significant milestone for the project, the largest private investment in Canadian history.Commercial operations are expected to start by the middle of 2025. The first LNG carrier to sail from the facility and down the Douglas Channel will supply made-in-B.C. LNG to joint venture participants and their customers.The impacts are already being felt. More than 30 000 Canadians have worked on the project to date, with almost 9000 Canadians employed at the Kitimat site in January this year alone. The cumulative value of the project’s contracts and subcontracts to local, Indigenous, and other businesses in B.C. has already exceeded CAN$4.7 billion and includes more than CAN$3.8 billion to Indigenous-owned and local area businesses.It also includes a CAN$500 million contract with HaiSea Marine, a joint venture between the Haisla Nation and North Vancouver-based Seaspan that will provide harbour and escort tugboat services to LNG Canada with its innovative fleet of battery-powered and low emissions vessels.LNG Canada also pledged, under the B.C. government’s LNG Framework, to protect the province’s air, land and water, and ensure British Columbians receive a fair return for their natural gas. The project has been designed with the lowest carbon intensity of any large scale LNG export facility operating today: emissions that are 35% lower than the world’s best performing facilities and 60% lower than the global weighted average.Along with its five joint venture participants, LNG Canada continues to explore pathways to a potential Phase 2 expansion, which can unlock additional revenues to government and benefits for B.C. communities and businesses, and deliver more lower carbon LNG to countries trying to achieve their energy transition goals, all while maintaining alignment with CleanBC, the province’s plan to lower overall emissions.

Tourmaline Cutting WCSB ‘24 Natural Gas Production Amid Low Prices, Remains ‘Super Constructive’ on ‘25 - Tourmaline Oil Corp., the largest natural gas producer in Canada, is reducing 2024 natural gas production in the Western Canadian Sedimentary Basin (WCSB) by about 100 MMcf/d from previous guidance, or 4% essentially eliminating any gas growth in 2024, “and we definitely think that’s the right thing to do,” CEO Mike Rose said. Tourmaline is anticipating 2024 average production of 580,000-590,000 boe/d, up from fourth quarter 2023 production of 557,000 boe/d that was 9% higher than 4Q2022, and the 2023 full year average production of about 520,000 boe/d, that was up 4% over the 2022 average. Rose said given continuing weak natural gas prices, the Calgary-based producer plans to decrease capital expenditures in 2024 by about 7.4% year/year to C$2.13 billion ($1.58...

Atlantic LNG shipping rates up, European prices climb for second week - Atlantic spot LNG freight rates rose this week, while European prices increased for the second week in a row. Last week, spot charter rates for the global LNG carrier fell to their lowest since June 2023. “Freight rates have continued to trade in a tight range, with the Spark30S Atlantic spot rate increasing by $2,500 to $50,250 per day, and the Spark25S Pacific rate falling by $2,000 to $51,500 per day,” Qasim Afghan, Spark’s commercial analyst, told LNG Prime on Friday. “Spark30S Atlantic freight rates have traded within a $4,750 per day range since late January, and the Spark25S Pacific rates have traded within a $8,000 per day range, marking a relatively stable start to 2024,” he said. LNG freight rates have not been impacted despite the fact that LNG carriers are still avoiding the Suez Canal due to the situation in the Red Sea. In addition, due to a drought situation impacting the Panama Canal, LNG transits through the waterway keep declining as well and vessels are choosing other routes to deliver their cargoes. In Europe, the SparkNWE DES LNG front month rose compared to the last week. The NWE DES LNG for March delivery was assessed last week at $7.401/MMBtu. “The SparkNWE DES LNG price is reported at $7.861/MMBtu, corresponding to a $0.46/MMBtu week-on-week increase,” Afghan said. “This is the second consecutive weekly increase in SparkNWE DES LNG price,” he said.

Shell to Expand LNG Trading, Carve Out Lower Emissions through AI and Efficiencies - Shell plc upended its energy transition strategy on Thursday, citing lower power sales and stronger demand for natural gas, but it still expects to reach net-zero carbon emissions by 2050. Under pressure from investors to focus on the core oil and natural gas business, the London-based major updated its carbon reduction ambitions in the Energy Transition Report 2024. “We believe the world will continue to need oil and gas for many years – produced with much lower emissions – alongside cleaner energy such as advanced biofuels, renewable power and hydrogen,” CEO Wael Sawan said. “We expect LNG will play a critical role in the transition. It continues to provide a secure supply of energy in many European countries. It also offers flexibility to electricity grids..

YPF expects FID on first phase of Argentina LNG project in 2025 - Argentina’s state-owned oil and gas company YPF expects to take a final investment decision on the first phase of the planned Argentina LNG export project it is developing with Malaysia’s Petronas in 2025, according to YPF’s CEO, Horacio Marin. YPF and a Petronas’ unit in Argentina signed a joint study and development agreement on September 1, 2022 to work on the potential development of the Argentina integrated LNG project, Argentina GNL, to liquefy natural gas from Vaca Muerta’s vast shale gas resources.The project will include upstream gas production, dedicated pipeline and infrastructure development, LNG production, as well as marketing and shipping.YPF initially said the first phase of the project includes a production of 5 million tonnes of LNG per year. In the future, the capacity could rise to 25-30 million tonnes of LNG per year, the firm previously said.Last year, YPF and Petronas also signed an initial land lease deal for the LNG export project with the port of Bahia Blanca in Buenos Aires to carry out technical, economic, maritime, soil, and environmental studies.“It is well known that Vuaca Muerta has world-class gas reserves, far exceeding local demand. To capture this opportunity, unlocking our shale gas potential, we plan to lead the unique Argentinian LNG project,” Marín said during YPF’s 2023 earnings presentation on March 7.“As previously announced, the full project targets total processing capacity between 25 and 30 mtpa and should represent the key way to place Vaca Muerta shale gas in the global market, turning YPF and Argentina into a world-class LNG exporter,” he said.He said that the first stage of the project “aims to bring to Argentina an existing floating LNG facility with an initial capacity between one and two mtpa by 2027.”Marin did not provide further info on the FLNG.Petronas may move one of the company’s existing two units from Malaysia to Argentina.Currently, Petronas operates two floating LNG facilities, namely the 1.2 mtpa PFLNG Satu as well as the 1.5 mtpa PFLNG Dua, both located offshore Sabah. It has also a third FLNG with a capacity of 2 mtpa on order in South Korea.Marin said the second stage of the LNG project consists of the construction of two new floating LNG faculties, representing a capacity of around 8-9 mtpa by 2030.

CEO: Aramco in talks to invest more in LNG - Energy behemoth Aramco is in talks to further invest in liquefied natural gas, including in US LNG projects, according to Aramco’s CEO, Amin Nasser. Saudi Arabia’s Aramco made its first international investment in LNG last year to capitalize on rising LNG demand. In September, Aramco agreed to buy a minority stake in MidOcean Energy, the LNG unit of US-based energy investor EIG for $500 million. The agreement includes the option for Aramco to increase its shareholding and associated rights in MidOcean in the future. MidOcean is currently in the process of acquiring interests in four Australian LNG projects, and it has recently also purchased a stake in LNG terminal operator Peru LNG from a unit of South Korean conglomerate SK. Asked about whether Aramco is interested in investing in LNG in the US and other countries during the company’s 2023 earnings call on Monday, Nasser said, “for sure, we are interested in LNG.” “We are investing in LNG via MidOcean in Australia and we are currently looking for opportunities in the US,” he said. Nasser said that Aramco is “currently in discussions with different entities with regard to that growth market for capacity of LNG.”

Nuclear Power Additions Not Expected to Significantly Cut Into South Korea’s LNG Demand - South Korea’s plans to bring online more nuclear power capacity could cut natural gas demand this summer, but the strategy is unlikely to curb demand the way it has in Japan. “Korea’s nuclear projects have been under construction for some time, and Japan will be far ahead with switching their plants back on once they meet seismic risk requirements, but both countries will continue to need LNG,” David Hewitt of Hewitt Energy Perspectives told NGI. South Korea’s gas demand could decline slightly this summer as it commissions a new nuclear reactor and a coal-fired plant, but the country’s installed power capacity exceeds demand. It is also switching out a percentage of its coal capacity with gas, which could further support liquefied natural gas longer-term.

Iran-Pakistan gas pipeline revival - The stars appear to be finally aligning for the long-awaited Iran-Pakistan (IP) gas pipeline. Driven by necessity and bolstered by the current global environment, Pakistan has set its sights on commencing and swiftly completing a small 80-kilometre stretch of the pipeline. Originally envisioned to span 785km in total, running from the Iran border through Balochistan to Sindh and extending to Punjab, this humbler endeavour aims to achieve its initial milestone in record time. Iran has already fulfilled its part of the deal by completing the construction of its seventh cross-country gas pipeline, starting from Asalouyeh and stretching 1,172km to Iranshahr. From there, it extends another 270km to the border of Pakistan, as indicated by the available online details. Amidst the politico-economic repercussions of conflicts such as those in Gaza and Ukraine, alongside inflationary pressures and risks to financial and property markets in the West, particularly in an election year in many places, the focus of Western nations is understandably absorbed by their own challenges. As a result, a small pipeline deal between two nations in which they have no immediate stake may not command much attention. Moreover, China’s mediation in thawing relations between Saudi Arabia and Iran amid the turbulent Middle East context has also contributed to Pakistan’s confidence regarding economic relations with energy-abundant Iran. The energy sector hierarchy in Islamabad has privately confirmed the end of confusion regarding the IP pipeline. They assert there is now a certain level of clarity within the relevant quarters to proceed with the project. However, as the cabinet of Prime Minister Shehbaz Sharif’s government has yet to be announced and the portfolio of the minister of petroleum remains undecided, no official — not even the spokesperson of the Petroleum Division — seems inclined to comment on the recent developments and future prospect of the IP pipeline. This reluctance to speak may stem from sensitivities surrounding the matter. Meanwhile, Nadeem Javed Bajwa, the Managing Director and CEO of Inter State Gas Systems Pvt Ltd (ISGS), the company tasked with building the pipeline, remains inaccessible despite multiple attempts to reach him for his input. There is a prevailing perception that Pakistan, under the caretaker government, hastily decided to proceed with building the pipeline following the tit-for-tat missile strikes with Iran. Although tensions between Iran and Pakistan have since eased, concerns persist regarding the looming threat of a potential $18 billion penalty for failing to complete the IP project in time. As per information shared by senior sources within energy circles, the ISGS has been assigned the responsibility for the project. It has also been determined that resources to cover the construction cost will be accessed from a dedicated fund established for the purpose. During the last PPP rule in the country (2008-2013), the government imposed a Gas Infrastructure Development Cess Act on businesses to generate funds internally aimed at strengthening and expanding Pakistan’s gas infrastructure. Despite encountering resistance and legal obstacles, insiders revealed that the government managed to mobilise about Rs330bn through this gas levy. It is reported that the government has allocated and released Rs42bn ($152 million) for the construction of the project, they added. “The long-delayed project is now being prioritised owing to the widening demand/supply gap and the cost-effectiveness of piped gas compared to LPG imports,” stated a high-ranking official of ISGS. “We have the full backing of the Special Investment Facilitation Council (SIFC),” he added.

Iran oil exports hit five-year high - -- Iran’s oil minister said on 10 March that the nation’s crude oil exports had reached a five-year high since 2018 despite the US sanctions on Tehran’s energy sector. Oil minister Javad Owji said, “At the beginning of this administration, oil production in [Iran's] Khuzestan province stood at 1.7 million barrels per day, which has now reached 2.7 million barrels per day.” The minister also noted that natural gas production has grown by five percent. Iranian refineries have boosted production capacity through projects implemented by Iranian specialists after multiple foreign nations withdrew due to US sanctions. Owji made these statements on the sidelines of the contract signing ceremony for the South Pars gas field pressure-boosting project. “Sanctions have not hindered our development growth,” Owji said. "If we examine the past 40 years, in which year did the Ministry of Petroleum report that the economic growth of oil and gas was over 20% every quarter? … Our economic growth in the first, second, and third months of 1402 [solar hijri year from 21 March 2023–19 March 2024] was over 20%. Let's judge now: Has the embargo hindered our growth?” When Owji was asked about former president Donald Trump’s potential return to the US presidential seat, the oil minister said Trump's return would not affect Iran. “In this government, we signed good contracts with powerful Russian companies, and some fields have been put into operation. Twenty thousand barrels of our production are from the fields with which we have contracts. Some other fields are also on the agenda of the oil company, which is ending the negotiations.” During Trump’s presidency, brutal sanctions were reinstated on Iran after walking out of the nuclear deal in May 2018, despite Iran’s full compliance with the conditions put forth in the Joint Comprehensive Plan of Action (JCPOA). One of the goals that Washington had was to reduce Iran’s oil exports to near zero. Tehran has, on multiple occasions, denounced the sanctions as an act of “economic war” and “economic terrorism.”

Saudi Aramco posts $121bn profit in 2023 -- Saudi oil giant, Aramco, on Sunday, reported that it made $121bn in profit last year, down from its 2022 record due to lower energy prices. Aramco’s results still marked the company’s second-highest-ever result, as members of the OPEC+ alliance continue to cut their production to try to boost global energy prices, according to the Associated Press. However, lower results also squeeze the kingdom as it embarks on a massive development project under its assertive crown prince to wean itself off oil revenues. Aramco had reported a $161bn profit in 2022, likely the largest ever reported by a publicly traded company. “The decrease mainly reflects the impact of lower crude oil prices and lower volumes sold, and weakening refining and chemicals margins,” the company said in its filing to the Tadawul stock market. Despite being lower this year, Aramco boosted the dividends due to its stockholders to over $31bn in the fourth quarter, according to filings. The energy giant had planned a conference call on Monday to discuss its results. Aramco reported overall revenue of $440bn last year, down from $535bn in 2022. “Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds,” said Aramco CEO Amin Nasser, in a statement.

Saudi Aramco Boosting Domestic Natural Gas Output and Eyeing International LNG Investments - State-owned Saudi Arabian Oil Co., better known as Aramco, is targeting a 60% increase by 2030 in its natural gas production from 2021 levels as domestic consumption rises in the Kingdom. Speaking to investors during a conference call on Monday, CEO Amin Nasser and CFO Ziad Al-Murshed discussed an array of projects underway to boost gas, oil, liquids and renewables projects, including solar and hydrogen. Aramco is working “to create and capture additional value from our operations, positioning the company for a future in which we believe oil and gas will be a key part of the global energy mix for many decades to come, alongside new energy solutions,” Nasser said.

Oil prices decline as MidEast supply worries fade, Brent crude at $81.50/bbl - Oil prices experienced a decline, with the global benchmark Brent dropping below $82 per barrel, on Monday. This downward trend occurred as worries diminished about potential disruptions to supply due to conflicts in the Middle East. Additionally, concerns about softened demand in China contributed to the bearish sentiment. Brent futures saw a decrease of 58 cents, settling at $81.50 per barrel at 1444 GMT, while U.S. West Texas Intermediate (WTI) slipped by 93 cents, or 1.2%, reaching $77.08. Both benchmarks concluded last week with losses, influenced by bearish Chinese data indicating diminished demand in the world's top crude importer. Brent saw a decline of 1.8%, though the contract has maintained above $80 a barrel for more than a month. Meanwhile, WTI ended 2.5% lower.

  • China's crude oil imports increased during the first two months of the year compared to the same period in 2023, although they were lower than in the previous months, according to data released on Thursday. This reflects a continuing trend of reduced purchases by the world's largest buyer.
  • Yemen's Iran-aligned Houthis have been conducting attacks on ships in the Red Sea and Gulf of Aden since November, claiming it as a show of support for Palestinians during Israel's conflict with Hamas.
  • Over the weekend, U.S., French, and British forces intercepted dozens of drones in the Red Sea region after Houthis targeted the bulk carrier Propel Fortune and U.S. destroyers in the area, as reported by the U.S. military.
  • U.S. job growth picked up pace in February, an increase in the unemployment rate and a slowdown in wage gains maintained the possibility of an anticipated June interest rate cut. The upcoming U.S. inflation data, scheduled for release on Tuesday, adds further uncertainty to the market sentiment.
  • Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, commonly referred to as OPEC+, reached an agreement to prolong voluntary oil production reductions of 2.2 million barrels per day into the second quarter, addressing the supply side of the oil market.

The Oil Market Traded Lower on Monday as Uncertainty Around the Timing of U.S. Interest Rate Cuts Weighed on the Market - The oil market traded lower on Monday as uncertainty around the timing of U.S. interest rate cuts weighed on the market. The market is awaiting the release of a possible higher than expected consumer price index reading on Tuesday, which could muddy the path for monetary policy. The market was also pressured ahead of monthly reports due this week from the IEA, OPEC and the EIA. The crude market retraced some of Friday’s losses in overnight trading before it sold off to a low of $76.79 early in the session. It later retraced its early losses and posted a high of $78.47 by mid-day and settled in a sideways trading range as traders took a wait and see stance ahead of the data expected this week. The April WTI contract ended the session down 8 cents at $77.93 and the May Brent contract settled up 13 cents at $82.21. The product markets ended the session higher, with the heating oil market settling up 1.09 cents at $2.6518 and the RB market settling up 5.33 cents at $2.5805.Citi Research reiterated its 0-3 month price target of $80/barrel for Brent, while it updated its first quarter price forecast to $81/barrel from a previous forecast of $78/barrel. It extended its near-term neutral-to-moderately bearish view through the second quarter due to larger than expected supply disruptions during the first quarter and ongoing tensions in the Middle East.S&P Global Commodities at Sea is estimating Northwest Europe is expected to receive 3.13 million mt of diesel and gasoil in March, up 8.3% from February. The three largest source of these imports are The U.S., India and Saudi Arabia.The EIA said U.S. crude oil production lead global oil production for a sixth consecutive year, with a record breaking average production of 12.9 million bpd. In December, U.S. crude oil production reached a new monthly record high of over 13.3 million bpd. The EIA said it is unlikely that the record will be broken by another country in the near term.S&P Global analysts are forecasting U.S. crude oil production growth while slowing in 2024 will still reach 13.97 million b/d by December 2024. The analysts warned though if WTI prices fall below $65 per barrel for an extended period, producers may reduce the activity levels to protect their cash flows.Source stated that Saudi Aramco plans to meet full contractual crude oil volumes to most Asian buyers in April, but will reduce supply of heavier oil to Chinese and Indian customers due to oilfield maintenance.IIR Energy said U.S. oil refiners are expected to shut in about 1.3 million bpd of capacity in the week ending March 15th, increasing available refining capacity by 393,000 bpd. Offline capacity is expected to fall to 999,000 bpd in the week ending March 22nd.

Oil Range-Bound as OPEC, EIA Eye Tighter Market Balances -- West Texas Intermediate (WTI) futures nearest delivery and Brent crude settled Tuesday's session slightly lower. This was despite the Organization of the Petroleum Exporting Countries (OPEC) and U.S. Energy Information Administration (EIA) forecasting oil market fundamentals will continue to strengthen in the second quarter, reflecting an extension of voluntary production cuts by the OPEC+ coalition and robust demand growth in North America and Asia-Pacific regions. In its Monthly Oil Market Report released this morning, OPEC left global oil demand projections for an annual increase of 2.2 million barrels per day (bpd) unchanged. The lion's share of the growth was realized in developing countries outside the Organization for Economic Cooperation and Development (OECD) bloc. "The major non-OECD economies of China and India, alongside other developing Asian nations, are anticipated to maintain their growth momentum and play a significant role in driving global economic growth, while growth across the OECD economies is projected at relatively lower rates," according to OPEC. Robust demand projections for 2024 coincide with lower estimates for production growth outside of OPEC+ coalition, according to the report, which was downgraded by 120,000 bpd from the prior month to 1.19 million bpd. In 2024, the main drivers for oil supply growth are expected to be the U.S., Canada, Brazil and Norway. The largest declines are anticipated in Russia and Mexico. Meanwhile, OPEC+ on March 3 announced an extension of voluntary production cuts of 2.2 million bpd through the second quarter with Russia pledging additional cuts to its export quotas. Because of that extension, EIA estimates global oil markets will tighten significantly more this year than previously estimated. Washington-based energy watchdog notes the current OPEC+ agreement has two types of production cuts -- the officially stated production targets by all coalition members, and the secondary cuts that are additional voluntary reductions pledged by some OPEC+ participants on Nov. 30, 2023. "Because some OPEC+ members are extending these voluntary production cuts and because Russia added new voluntary production cuts, we now expect forecast global oil inventories will fall by 900,000 bpd in 2Q24. Last month, we had expected inventories to remain relatively unchanged in 2Q24," said OPEC in its STEO this afternoon. As a result of tighter market balances, the price of Brent crude will average around $88 per barrel (bbl) for the second quarter, which is $4 bbl higher than in February's forecast. EIA expects the price of Brent crude to remain relatively flat for the rest of the year before increasing inventories -- when OPEC+ supply cuts are set to expire -- will start putting slight downward pressure on the price in 2025. "It remains to be seen how strictly the latest round of voluntary OPEC+ production cuts are adhered to, which has the potential to add additional oil supplies back on the market and lessen the expected tightness in near-term oil balances and the corresponding upward pressure on oil prices," said EIA. At settlement, WTI futures for April delivery softened $0.37 to $77.56 bbl and while Brent for May delivery edged lower to $81.92 bbl, down $0.29. Front-month RBOB contract added a modest $0.0059 to settle at $2.5864 gallon, and April ULSD futures declined to $2.6165 gallon, down $0.0353.

Oil prices settle slightly down after US boosts crude output forecast (Reuters) -Oil prices dipped on Tuesday, settling slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines. Brent futures for May delivery settled 29 cents lower at $81.92 a barrel. The April U.S. West Texas Intermediate (WTI) crude contract ended 37 cents lower at $77.56. U.S. consumer prices increased solidly in February, the U.S. Bureau of Labor Statistics said, pinning nagging inflation largely on higher costs for gasoline and shelter. "This does show a second month of an increase," . "Consensus in the markets says the Fed will not move to lower rates until June," he added. On Tuesday, OPEC stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025, and further raised its economic growth forecast for this year saying there was more room for improvement. On the supply side, U.S. Energy Information Administration (EIA) raised its 2024 outlook for domestic oil output growth by 260,000 barrels per day to 13.19 million barrels, versus a previously forecast rise of 170,000 bpd. The boosted forecast could be due to higher assumed oil prices, said UBS analyst Giovanni Staunovo. U.S. crude stocks fell 5.521 million barrels in the week ended Mar. 8, according to market sources citing American Petroleum Institute figures on Tuesday. Last week, economic data from China, the world's biggest oil buyer, suggested softening demand even as crude imports increased in the first two months of the year from a year earlier. "Bearish demand sentiment and growing non-OPEC supply leave little room for the market to be bullish on oil prices at this time," Hopes of a ceasefire in Israel's war against Hamas have faded, with negotiations deadlocked in Cairo while Israel and Lebanon's Hezbollah continue to exchange fire. Though the Gaza conflict has not led to significant oil supply disruptions, Yemen's Iran-aligned Houthis have been attacking ships in the Red Sea and Gulf of Aden since November in solidarity with Palestinians. Airstrikes attributed to a U.S.-British coalition hit port cities and small towns in western Yemen on Monday and the Houthis said on Tuesday that they had fired missiles at what they described as a U.S. ship in the Red Sea. Traders are becoming inured to such attacks, . "The inventory of oil that might be affected is not lost, it is just delayed - and with the new shipping times being part of the new norm, 'delayed' will eventually not be applicable," he said. In Russia, the world's second-largest oil exporter, a Ukrainian attack on energy facilities set ablaze Lukoil's NORSI refinery.

WTI Dips After Smaller Crude Draw; Pump-Prices Set To Soar As Gasoline Stocks Plunge -- Oil prices surged higher this morning after a Ukrainian drone struck one of Russia’s biggest refineries and API's report overnight signaling shrinking US crude stockpiles. API

  • Crude -5.52mm (+400k exp)
  • Cushing -998k
  • Gasoline -3.75mm
  • Distillates -1.16mm

DOE

  • Crude -1.54mm (+400k exp)
  • Cushing -220k
  • Gasoline -5.66mm - biggest draw since Nov
  • Distillates +888k

The official data showed a smaller draw than API (but not a build as expected). Gasoline stocks plunged... The Biden administration continued its 600-700k barrel weekly addition to the SPR (13th week in a row)... US Crude production decline once again... WTI was hovering just above $79.50 ahead of the official data and dipped below on the smaller crude draw...

The Oil Market on Wednesday Rallied Over 2% Following the Release of a Supportive EIA Inventory Report The oil market on Wednesday rallied over 2% following the release of a supportive EIA inventory report and a second day of Ukrainian drone attacks on Russian refining facilities. On Tuesday evening, the API reported an unexpected draw of 5.5 million barrels in crude stocks, providing the market with some support in overnight trading. The market retraced some of its gains and posted a low of $77.57, but quickly bounced off that level and never looked back. The news of the drone attacks on Russian regions, causing disruptions in Russia’s refining operations provided the market with further support. The oil market rallied to $79.73 in light of the EIA reporting an unexpected draw in crude stocks of over 1.5 million barrels and a larger than expected draw in gasoline stocks. It later settled in a sideways trading range before further buying on the close pushed the market to a high of $79.75. The April WTI contract settled up $2.16 at $79.72 and continued to trend higher as it posted a new high of $79.90 in the post settlement period. The May Brent contract settled up $2.11 at $84.03. Meanwhile, the product markets also settled sharply higher, with the heating oil market settling up 6.86 cents at $2.6851 and the RB market settling up 7.51 cents at $2.6615 following the larger than expected draw in gasoline stocks.The EIA reported that after six consecutive weeks of builds, total U.S. crude stocks unexpectedly fell by 1.536 million barrels in the week ending March 8th to 447 million barrels. U.S. crude oil imports fell by 1.731 million barrels on the week to 5.491 million barrels, the lowest level since March 2023. The EIA also reported a larger than expected draw in U.S. gasoline stocks of 5.662 million barrels on the week to 234.1 million barrels. Gasoline stocks in the U.S. Gulf Coast fell by 588,000 barrels on the week to 78.4 million barrels, the lowest level since November 2022. IIR Energy reported that U.S. oil refiners are expected to shut in about 1.2 million bpd of capacity in the week ending March 15th, increasing available refining capacity by 451,000 bpd. Offline capacity is expected to fall to 885,000 bpd in the week ending March 22nd.Ukraine struck Russian oil refineries in a second day of heavy drone attacks on Wednesday. Russia's 340,000 bpd Ryazan oil refinery shut down two primary oil refining units on Wednesday following a fire caused by a drone attack. Separately, the Leningrad region's Governor, Alexander Drozdenko, said a drone was destroyed on its approach to the Kinef oil refinery in the region. Also, operations of the 112,000 bpd Novoshakhtinsk oil refinery in Russia’s southern Rostov region resumed following a drone attack. The Rostov region’s Governor, Vasily Golubev, said the operations of the refinery were halted on Wednesday after downed drones fell on its territory.Russia’s President Vladimir Putin said the Ukrainian drone attacks in Russian regions “are aimed at, if not frustrating the elections in Russia, then interfering with them.” The Russian Defense Ministry said its forces intercepted 58 drones overnight in the Belgorod, Bryansk, Voronezh, Kursk, Ryazan and Leningrad regions.Enbridge said the Gray Oak crude oil pipeline in Texas is operating normally following the completion of planned maintenance.

Oil prices up 3% to 4-month high on US crude stock drop, Russian refinery attacks (Reuters) - Oil prices rose about 3% to a four-month high on Wednesday on a surprise withdrawal in U.S. crude inventories, a bigger-than-expected drop in U.S. gasoline stocks and potential supply disruptions after Ukrainian attacks on Russian refineries. Brent futures rose $2.11, or 2.6%, to settle at $84.03 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.16, or 2.8%, to settle at $79.72. That was the highest close for Brent since Nov. 6. The U.S. Energy Information Administration (EIA) said energy firms pulled a surprise 1.5 million barrels of crude from stockpiles during the week ended March 8. That compares with the 1.3 million barrel build analysts forecast in a Reuters poll and the 5.5 million barrel withdrawal shown in data from the American Petroleum Institute (API), an industry group. EIA/A , U.S. gasoline futures , meanwhile, showed the biggest price increase across the energy complex, rising about 2.9% to their highest since September 2023 after EIA said energy firms pulled a much larger-than-expected 5.7 million barrels of gasoline from stockpiles last week. That compares with the 1.9 million-barrel withdrawal from gasoline stocks that analysts forecast in a Reuters poll. "Gasoline is driving us today. There is growing concerns about growing tightness with a combination of seasonal maintenance and other outages," That increase in gasoline prices boosted the gasoline- and 321- crack spreads, which measure refining profit margins, to their highest since August and September 2023, respectively. In Russia, Ukraine struck oil refineries in a second day of heavy drone attacks, causing a fire at Rosneft's biggest refinery in what Russian President Vladimir Putin said was an attempt to disrupt his country's presidential election this week.“As Russian refining capacity is damaged by Ukrainian drone strikes, this can result in Russia exporting less diesel fuel with a potential for Russia to start importing gasoline and that of course will affect prices around the world," said Andrew Lipow, president of Lipow Oil Associates in Houston.Putin told the West that Russia was technically ready for nuclear war and that if the U.S. sent troops to Ukraine, it would be considered a significant escalation of the conflict. Putin, however, also said he saw no need for the use of nuclear weapons in Ukraine.Oil and the wider financial markets also found support from sentiment that the latest data on U.S. inflation will not derail interest rate cuts by midyear.Lower rates can boost economic growth and support oil demand.The Organization of the Petroleum Exporting Countries (OPEC), meanwhile, stuck to its forecast for oil demand growth of 2.25 million barrels per day (bpd) in 2024, higher than many other forecasts.

The IEA Raised its Demand Growth Forecast and Lowered its Supply Projection for This Year The oil market extended its gains on Thursday amid the IEA outlook suggesting a tighter oil market. The IEA raised its demand growth forecast and lowered its supply projection for this year. It forecast demand will increase by 1.3 million bpd in 2024, up 110,000 from its previous forecast, while it cut its supply forecast and now expects oil supply to increase by 800,000 bpd to 102.9 million bpd this year. The oil market posted a low of $79.57 on the opening on Wednesday and continued on its upward trend. The market, which was well supported by the IEA outlook, extended its gains to $1.90 as it rallied to a high of $81.62 in afternoon trading. The market later traded in a sideways trading range ahead of the close. The April WTI contract settled up $1.54 at $81.26, while the May Brent contract settled up $1.39 at $85.42. The product market also continued its upward trend, with the heating oil market settling up 2.37 cents at $2.7088 and the RB market settling up 4.18 cents at $2.7033. The IEA said the settling down of post-pandemic turbulence and a cloudy economic outlook will rein in demand growth this year, even as shipping disruptions provide a short-term increase. The IEA sees growth this year at 1.3 million bpd, down a full million bpd from 2023, but up by 110,000 bpd from its previous month's forecast as Houthi attacks in the Red Sea have helped lengthen supply routes. Global oil demand will average a record 103.2 million bpd this year. The IEA sees global oil demand growth in the first quarter of 2024 increasing by 270,000 bpd to 1.7 million bpd. It said oil on water reached 1.9 billion barrels, the second highest level since the height of the pandemic. Meanwhile, global on-land oil stocks fell for a seventh month the lowest level since at least 2016. It said that if the OPEC+ voluntary cuts are held through 2024, it sees the market in a slight deficit rather than a surplus.Analysts said U.S. motorists are likely to see gasoline prices move higher in the coming weeks as major refinery outages have cut supplies ahead of a seasonal increase in demand. According to data from the motorist group AAA, the national average price for a gallon of gasoline has increased more than 9% from the start of the year to around $3.40/gallon since March 8th, the highest since early November.S&P Global Commodities at Sea data shows that diesel shipments from the Middle East to Europe averaged 374,000 b/d in February, up from the 318,000 b/d shipped in January. These shipments are expected to grow further in March as refinery operations in Saudi Arabia and Kuwait continue to rise this month. Oman’s diesel exports to Europe this month are already running at double the pace they were in February.The EIA forecast that near-term global oil and liquids production growth will be driven primarily by the U.S., Guyana, Canada and Brazil, offsetting voluntary production cuts by OPEC+. It said OPEC+ petroleum liquids production will fall by 1 million bpd in 2024, while non-members’ supply will grow 1.4 million bpd, led by the U.S. In 2025, OPEC+ petroleum liquids production will increase by 900,000 bpd as production cuts expire, while non-OPEC+ output will increase by a further 1.1 million bpd. The EIA said global petroleum and liquids supply was 101.8 million bpd in 2023 and is expected to increase by 400,000 bpd in 2024 and 2 million bpd in 2025. U.S. oil production reached 13.3 million bpd in 2023 and is expected to increase by 400,000 bpd in 2024 and 800,000 bpd in 2025.

ICE Brent Futures Tops $85 on Bullish Oil Market Outlooks -- The international crude benchmark Brent contract for May delivery on the Intercontinental Exchange settled above $85 per barrel (bbl) for the first time this year on Thursday after major forecasting agencies this week warned of an expanding supply deficit in the global oil market exacerbated by extended production cuts by the OPEC+ coalition and strengthening demand fundamentals in North America and the Asia-Pacific region. The International Energy Agency (IEA) this morning lifted its outlook for global oil consumption growth by 110,000 barrels per day (bpd) this year to 1.3 million bpd, citing better-than-expected economic performance in the U.S. and surging demand for bunker fuels. "Ongoing Houthi shipping attacks in the Red Sea kept a firm bid under crude prices. With oil tankers taking the longer route around Africa, more oil was kept on water, further tightening the Atlantic Basin market and sending crude's forward price structure deeper into backwardation," said IEA in today's monthly Oil Market Report. Despite the upgrade, IEA's estimate is less bullish compared to demand growth assessments from the Organization of the Petroleum Exporting Countries (OPEC) and U.S. Energy Information Administration (EIA) released on Tuesday. Out of the three forecasters, OPEC adopted the most bullish outlook on global oil consumption, projecting demand growth of 2.2 million bpd in 2024 and 1.8 million bpd next year. OPEC continues to see strong demand gains stemming from air travel and increased road mobility, including on-road diesel and trucking, as well as healthy industrial, construction and agricultural activities, particularly in the Asia-Pacific region. Similarly, capacity additions and petrochemical margins in China and the Middle East are expected to contribute to oil demand growth. On the supply side, OPEC, IEA and EIA forecast slowing production gains from non-OPEC+ countries that, when combined with supply cuts from within the coalition, will lead to a growing supply deficit in the second quarter. For the year, IEA sees global production will still increase by 800,000 bpd to 102.9 million bpd, including downward adjustments to OPEC+ output. In its report, IEA assumes OPEC+ will hold voluntary production cuts of 2.2 million bpd in place through the end of 2024, unwinding them only when such a move is confirmed by the producer alliance. In comparison, EIA lowered its global production growth outlook to 400,000 bpd, down by a sizable 200,000 bpd from the previous month's outlook. "Because some OPEC+ members are extending voluntary production cuts into the second quarter and because Russia added new voluntary production cuts, we now expect oil markets to be much tighter in 2Q24 than we previously expected," said EIA in Tuesday's Short-term Energy Outlook. EIA further noted the current OPEC+ agreement has two types of production cuts. The first cuts are officially stated production targets and the second are additional voluntary cuts pledged by some OPEC+ participants. As a result, EIA estimates global oil inventories will fall by 900,000 bpd in the second quarter compared to previously envisioned stock levels to remain relatively unchanged. At settlement, NYMEX April West Texas Intermediate futures advanced $1.54 to $81.26 bbl, and ICE May Brent futures rallied $1.39 to $85.42 bbl. April ULSD futures on NYMEX added $0.0237 to $2.7088 gallon, while front-month RBOB futures moved up $0.0418 to $2.7033 gallon.

Crude Flat on Session after Midweek Rally on Fundamentals -- West Texas Intermediate and Brent crude ended flat on the session Friday, stalling near four-month highs. The RBOB and ULSD contracts pushed higher, lent support by firmer U.S. demand fundamentals and supply risk after Russian oil refineries came under drone attacks amid a systemic campaign against the country's energy infrastructure. This week saw at least five separate drone strikes on the Russian refining complex, forcing some of the country's largest crude processing facilities to halt operations. According to preliminary estimates, at least 15% of Russia's refining capacity has been disrupted in recent days that, according to authorities, could lead to a short-term increase in crude oil exports. In an interview with TASS News on Thursday, Russian Deputy Energy Minister Pavel Sorokin said Russia's domestic fuel market is well-supplied but warned "that crude-processing capacity will be lower this year, likely leading to higher oil exports." Russia's Energy Minister Nikolay Shulgin said last month that Russia reduced crude-processing activity by 7% since the beginning of the year due, in part, to ongoing drone attacks by the Ukrainian military. A drone strike on Rosneft's largest refinery, Ryazan NPK CJSC with a refining capacity of 397,000 barrels per day (bpd) located in the central region west of the Urals, was forced to shut two crude units and a vacuum unit following a drone attack March 13, according to Industrial Info Resources. A drone attack March 12 on Lukoil's 354,561 bpd Nizhegorodnefteorgsintez Refinery in Russia, could keep units at the refinery shut for several months because of the extent of the damage, said IIR. Russia is a major supplier of middle distillates to the global markets, with roughly half the diesel it produces shipped internationally. WTI futures were also lifted this week by a bullish weekly inventory report from the U.S. Energy Information Administration (EIA) showing commercial crude stockpiles declined for the first time in six weeks through March 8, as domestic refiners concluded most of their seasonal maintenance programs. U.S. refinery capacity utilization increased for the second straight week through March 8 to the highest level since mid-January at 86.8%, with refiners processing 390,000 bpd more crude compared to the previous week's average. RBOB futures rallied to a $2.7240-gallon six-month high Friday following deeper-than-expected refinery turnaround activity this season, with gasoline inventories plunging 5.7 million barrels (bbl) during the first week of March while gasoline supplied to the U.S. market held above 9 million bpd for the second straight week, reaching a 9.044 million bpd 11-week high last week. Monthly outlooks by the International Energy Agency (IEA), Organization of the Petroleum Exporting Countries (OPEC) and the EIA this week forecasting tighter than previously anticipated market balances in the second quarter on the back of ongoing production cuts from OPEC+ and firmer demand fundamentals in the United States were also bullish for oil futures. IEA on Thursday lifted its outlook for global oil consumption growth by 110,000 bpd this year to 1.3 million bpd, citing better-than-expected economic performance in the United States and surging demand for bunker fuels. "Ongoing Houthi shipping attacks in the Red Sea kept a firm bid under crude prices. With oil tankers taking the longer route around Africa more oil was kept on water, further tightening the Atlantic Basin market, and sending crude's forward price structure deeper into backwardation," said IEA in its latest monthly Oil Market Report. OPEC is more bullish, projecting global demand growth of 2.2 million bpd this year and 1.8 million bpd in 2025. At settlement, NYMEX April WTI futures slipped $0.22 to $80.83 bbl after trading at a $81.62 four-month high on the spot continuous chart on Thursday. ICE May Brent futures were little changed on the session at $85.34 bbl, trading at a $85.69 bbl four-month high on a spot continuous basis on Thursday. NYMEX April ULSD futures advanced $0.0182 to $2.7270 gallon, paring an increase to a $2.7372 three-week high, while April RBOB futures added $0.0175 with a $2.7208 gallon settlement.

Oil prices settle lower, but tally a gain of 4% for the week Upside breakout shows 'path of least resistance' higher right now, chart watchers say - Oil futures finished with a loss on Friday, easing back a day after climbing to a four-month high - but prices still posted a weekly gain of 4%, buoyed by a drop in U.S. crude inventories and a stronger demand forecast from the International Energy Agency. Drone attacks on Russian energy facilities by Ukraine and a continued pledge by major oil producers to voluntarily cut production also helped lift crude prices this week, analysts said. West Texas Intermediate crude for April delivery fell 22 cents, or 0.3%, to settle at $81.04 a barrel on the New York Mercantile Exchange, for a 3.9% weekly gain, according to Dow Jones Market Data.May Brent crude4, the global benchmark, edged down by 8 cents, or about 0.1%, at $85.34 a barrel on ICE Futures Europe, leaving it up 4% for the week.April gasoline RBJ24 added nearly 0.7% to $2.72 a gallon, for a weekly rise of 7.7%, while April heating oil HOJ24 climbed 0.7% to $2.73 a gallon, gaining 3.3% for the week.Natural gas for April delivery NGJ24 settled at $1.66 per million British thermal units, down 4.9%, with Friday's losses contributing to an 8.3% loss on the week. Losses for front-month futures for WTI and Brent crude on Friday followed gains a day earlier that lifted prices for both to their highest settlements since Nov. 2. "The indicative smooth uptrend suggests that the wildest part of the rally is yet to come," "The medium-term uptrend in oil began at the December lows," he said, adding that at that time, oil was "actively bought in attempts to break below the 200-week moving average." Touching this mark was also a "turning point in 2023, kicked off a strong rally in 2020, and provided crucial support in 2019." It's important to note, however, that this "isn't just a technical level," as the Organization of the Petroleum Exporting Countries and Russia have increased support for the price over the past five years by announcing quota cuts to break through that technical level. Among other supportive factors, the Paris-based IEA on Thursday said it now sees growth of 1.3 million barrels a day, or mbd, versus a previous forecast of 1.2 mbd. Crude prices had climbed sharply Wednesday after data from the Energy Information Administration showed a fall in U.S. crude inventories last week. Attacks on Russian energy infrastructure and continued uncertainty tied to the Israel-Hamas war also contributed to the rise in oil prices, analysts said. "Bottom line, an early 2024 rally has emerged in the oil market after months of consolidation in the upper $60s to low $70s, and yesterday's new closing high above $81/barrel (for WTI), a four-month high, helps to technically reiterate that the path of least resistance is higher right now," analysts at Sevens Report Research said in a note. "The slew of bullish fundamental news paired with the bullish demand details in Wednesday's weekly EIA report all are supportive of a continued move higher in oil," they wrote.

A fire broke out on a gas pipeline in the Tyumen region in Russia | УНН -- In russia, a large-scale fire broke out on a gas pipeline in the Khanty-Mansi Autonomous Okrug (KhMAO) of the Tyumen region. This was reported by the russian media, UNN writes. Details It is noted that the explosion occurred at the Bobrovsky linear production department of main gas pipelines, as reported by local residents. It is noted that the incident occurred on a gas pipeline near the village of Likhma. The fire was quite powerful - the fire and smoke column were visible "several kilometers away". The russian media, citing the press service of the russian Emergencies Ministry, reported that no one was allegedly injured in the explosion on the territory of the pharmacy near the village of Likhma. The emergency services of the region assured that the area "was uninhabited. In the russian city of Kursk, a fire broke out on the territory of an oil depot. The local governor said that the fire was allegedly caused by a Ukrainian drone attack.

US Rejects Russian Ceasefire Proposal for Ukraine - Russia’s attempt to broker a ceasefire in Ukraine, along the current lines of control, was met with a firm rejection in Washington. US officials reiterated their stance, stating that they would only engage in talks with Moscow with Kiev’s consent. According to Reuters, in late 2023 and early 2024, Russian intermediaries reached out to US officials seeking to establish a ceasefire. The Kremlin was hoping to freeze the fighting along the current lines of control. “The contacts with the Americans came to nothing,” an unnamed senior Russian official told the outlet. Russian officials said some progress was made, and National Security Advisor Jake Sullivan agreed to a call with his counterpart in the Kremlin. Putin’s adviser, Yuri Ushakov, suggested the idea of a ceasefire to Sullivan, but Sullivan refused to talk about Ukraine.Putin has also suggested talks during public remarks, including in his interview with Tucker Carlson.US officials speaking with Reuters said there was no formal contact with Russian negotiators and stressed that Washington would not engage in talks with Moscow without Kiev. However, some admitted that Russian officials had floated talks in an unofficial manner.The Joe Biden administration has steadfastly refused to engage in talks with the Kremlin. Before the war in Ukraine broke out, Moscow sent Washington the outlines of a deal to prevent the war. A Biden admin staffer later acknowledged that the White House refused to negotiate with Russia on Putin’s top issues, including NATO military buildup in Eastern Europe and the alliance’s expansion to Ukraine. During the first two months of the war, Moscow and Kiev engaged in talks hosted by US allies Turkey and Israel. Russian, Ukrainian, Turkish, and Israeli officials have all confirmed that a deal was nearly reached; however, the US and UK pushed Ukrainian President Volodymyr Zelensky to forgo a deal with Putin. Washington’s current refusal to talk with Moscow comes as the war is going poorly for Kiev, with Ukrainian forces losing significant territory to Russia in recent months. Additionally, Kiev lacks the manpower and ammunition to mount an effective defense.

Russia claims it killed 234 fighters in attempted border incursion -- Hundreds of armed Russians stormed the country’s border from Ukraine in an attempted incursion against the Russian government, which the country’s military stopped, the Russian Defense Ministry said Tuesday. The ministry said its military killed 234 fighters who claimed to be anti-Kremlin Russian citizens. The group said it is independent of the Ukrainian military and government, though Moscow blamed Kyiv for the attack. The Russian military “thwarted an attempt by the Kyiv regime to make a breakthrough into the border territory of the Russian Federation in the Belgorod and Kursk regions,” the ministry said in a Telegram statement Tuesday. “The terrorist formations, having suffered significant losses, were driven back,” the post continued, noting the fighters were armed with tanks and armored vehicles. “There were no violations of the state border.” The ministry claimed the Russian military destroyed seven tanks and three American-built Bradley fighting vehicles.

Putin To Move Troops to NATO Border in Response to War Games - As the North Atlantic Alliance wraps up its massive Nordic Response 24 war drills, Russian President Vladimir Putin is threatening to deploy troops and weapons systems alongside his country’s shared 800-mile border with Finland.This comes amid a rash of hostile rhetoric in NATO capitals about sending alliance troops to Ukraine as Kiev’s war effort is failing, including from heads of state such as French President Emmanuel Macron. Helsinki recently joined NATO and Finnish Prime Minister Petteri Orpo is talking up increased military spending aimed at Russia.On Wednesday, in an interview with Russian state media, Putin said the decision by Stockholm and Helsinki to join NATO in the wake of Moscow’s invasion and the US-led alliance’s proxy war was an “absolutely senseless step from the point of view of ensuring their own national interests.”He continued, “We generally had ideal relations with Finland. Simply perfect. We did not have a single claim against each other, especially territorial, not to mention other areas. We didn’t even have troops; we removed all the troops from there, from the Russian-Finnish border.”The Russian leader went on to conclude, “However, it is up to them to decide. That’s what they decided. But we didn’t have troops there, now we will.”The NATO alliance is currently carrying out major war games in Finland, Sweden, and Norway with 20,000 troops from 13 countries, fifty naval vessels, and 100 warplanes. At the same time, Orpo is warning the Kremlin is preparing for a “long conflict with the West.” Speaking to the European Parliament, the Finnish leader implored member states to increase military spending and coordinate against Russia.“[Russia] represents a permanent and essential military threat to Europe… If we, as a united Europe, fail to respond sufficiently to this challenge, the coming years will be filled with danger and the looming threat of attack,” Orpo said.“Russia is not invincible,” he then declared. Orpo added that the European Union must be responsible for its own defense and not be held hostage by American elections, suggesting Republican front-runner Donald Trump would not be as supportive of the Washington-led military bloc.Denmark, a founding member of NATO, announced on Wednesday that it would be boosting its military budget by nearly $6 billion over the next five years. Al Jazeera reported, “The increased funding will be used both to boost Denmark’s military capacity and provide aid to Ukraine. It will also go towards an expansion of conscription, which will be extended from four to 11 months and will include women for the first time.”

Putin Threatens To Use Nukes as NATO Continues Sabre Rattling - Moscow will use nuclear weapons if Russia perceives an existential threat to its independence or sovereignty, President Vladimir Putin reaffirmed on Wednesday. This comes amid a spate of provocative rhetoric in NATO capitals, including discussions regarding deploying alliance troops to Ukraine.During an interview with Russian state television, Putin said the Kremlin is prepared to resort to nuclear weapons use if there is a threat to “the existence of the Russian state, our sovereignty and independence.” He continued, “All that is written in our strategy, we haven’t changed it.”The Russian leader was asked if he ever considered using tactical battlefield nuclear weapons in Ukraine, but he said that has not been necessary. Putin explained he does not believe the world is heading for nuclear war. Rather, he feels that Joe Biden, his American counterpart, is a veteran politician who comprehends the dire risks of any escalation that would reach such a threshold.However, Putin did address the hawkish remarks made by NATO officials and even heads of state recently, saying “the nations that say they have no red lines regarding Russia should realize that Russia won’t have any red lines regarding them either.”Gabrielius Landsbergis, Lithuania’s top diplomat, embraced French President Emmanuel Macron’s recent remarks that “nothing can be ruled out” regarding the deployment of NATO troops to Ukraine. “Now is the right time to discuss this,” Landsbergis enthused. “Starting this conversation erases the red lines we have imposed on ourselves,” he added.

Putin Warns West Russia 'Ready' For Nuclear War, But Says 'Never Been A Need' - Just ahead of Russia's March 15 presidential elections, Vladimir Putin has reiterated Wednesday that his country stands ready to use nuclear weapons should the state's existence be threatened, but so far "there has never been such a need."The new warning of Russia's nuclear 'readiness' accompanied with acknowledgement that nuclear war is not imminent appeared further reaction to the West taking up the question of sending troops to Ukraine, after France's Macron raised the issue last month. There have also been fresh attack from Ukraine on Russia's energy infrastructure this week."Apart from (US President Joe) Biden, there are enough other experts in the sphere of Russian-American relations and strategic restraint. So I don’t think that everything is going to go head-on here, but we are ready for it," Putin said in the fresh remarks given to Rossiya-1. Putin said further of Washington that it too is developing its strategic forces but this doesn't mean it's ready to "launch a nuclear war tomorrow.""They are now setting tasks to increase this modernity, innovation, they have a corresponding plan. We know about it too. They are developing all their components. So are we," Putin explained. "Weapons exist in order to use them. We have our own principles." Importantly, FT noted that "Putin also claimed that he had not considered using a tactical nuclear weapon at Russia’s lowest point in Ukraine in the autumn of 2022 when his forces made humiliating retreats in the eastern regions of Kharkiv and Kherson." While none of this marks any kind of change in Russia's nuclear doctrine or posture, it demonstrates that President Putin is taking threats from NATO countries to escalate their involvement seriously. Among the more interesting excerpts from the interview is his comparison of US and Russian strategic arsenals and advancement: President Vladimir Putin said Wednesday that Russia's nuclear triad — its three-pronged arsenal of weapons launched from land, sea and air — was "much more" advanced than that of the United States. "Our triad, the nuclear triad, it is more modern than any other triad. Only we and the Americans actually have such triads.And we have advanced much more here," Putin said in an interview on state TV.

Israeli Drone Strike Kills Hamas Member and Civilian in Southern Lebanon - Continuing the attacks in southern Lebanon, an Israeli drone today struck a car traveling near the city of Tyre, killing a Hamas member and a civilian bystander, and wounding two others.The slain Hamas member was identified as Hadi Mustafa, described by Israel as a “significant figure” who directed terror squads attacking Israeli and Jewish targets worldwide. Mustafa actually lived in Rashideh refugee camp in Lebanon, and while Hamas television identified him as a “military leader,” these sources also denied he was a senior figure in the Hamas movement.Israel claimed Mustafa worked under Samir Fendi, assassinated on January 2 in Beirut, in the course of the slaying of negotiator Saleh Arouri. The civilian killed and two others wounded in southern Lebanon were not identified, though the slain man was reportedly a Syrian who was riding a motorcycle passing the targeted car during the attack.This attack comes just a day after the attack on northeastern Lebanon, near Baalbek, which killed two people and wounded 20 others. Israel said that attack was in response to roughly 100 rockets fired against the Golan Heights from southern Lebanon.Lebanese officials say the increase in number and severity of Israeli strikes is a military response to faltering political settlement negotiations. They expressed concern that this ramped-up response would only make things worse.

Gaza war: UNRWA says Rafah aid centre hit by Israeli forces – BBC-- The UN agency for Palestinian refugees says a member of staff was killed and 22 others were injured when Israeli forces hit a food distribution centre in Rafah, in the southern Gaza Strip. UNRWA chief Philippe Lazzarini said attacks on its facilities had "become commonplace in blatant disregard to international humanitarian law".The Hamas-run health ministry said an Israeli air strike killed five people. The Israeli military said it killed a Hamas commander in a "precise strike".It identified him as Mohammed Abu Hasna and alleged that he had been a "combat support operative" in Hamas's military wing in the Rafah area.A man with that name was on a list of five fatalities given by health officials.Rafah is crammed with an estimated 1.5 million Palestinians who are seeking shelter from Israel's ground offensive elsewhere in Gaza.The UN's secretary general has warned that a threatened Israeli assault on the city could "plummet the people of Gaza into an even deeper circle of hell".The war in Gaza began when Hamas gunmen attacked southern Israel on 7 October, killing about 1,200 people and taking 253 others as hostages.More than 31,200 people have been killed in Gaza in the military campaign that Israel launched in response, according to the Hamas-run health ministry.Wednesday's strike reportedly hit the eastern side of the UNRWA food distribution centre, which is in the eastern part of Rafah.UNRWA spokeswoman Juliette Touma told the BBC that up to 60 people were believed to have been working at the facility, which also served as a warehouse for food and other critical supplies."We know that it is the Israeli forces who were responsible. Our teams were on site and they reported back the casualties," she said.Pictures of the aftermath showed a pool of blood in a courtyard outside a blue-and-white painted warehouse, and another pool just inside the doorway of the building, next to boxes of aid.

Israel Bombs Food Distribution Center in Gaza, Killing Five - The UN agency for Palestinian refugees (UNRWA) food distribution center in Gaza was hit by an Israeli airstrike, killing five. The bombing of the facility is the latest in a series of Israeli attacks on food distribution in Gaza. The Israeli military operations in Gaza and restrictions on aid entering the Strip have placed hundreds of thousands of Palestinians on the brink of starvation. Witnesses, Gazan health officials, and the UN reported that Israel attacked the UNRWA warehouse in Rafah on Wednesday, killing five people, including one UNRWA worker. Officials reported that scores were injured in the attack without providing a number. The Israeli onslaught in Gaza has had a massive impact on aid workers. One Palestinian in Rafah said the attack was particularly concerning because UNRWA sites are generally considered safer. “It’s a UNRWA center, expected to be secure,” one resident said. Over the past five months, 165 UNRWA workers have been killed, and over 150 of the agency’s buildings in Gaza have been hit.The attack on the food distribution center comes as famine is taking hold in Gaza. Over two dozen people, mostly children, have starved to death in recent weeks. Israel has significantly reduced aid transfers into Gaza since hostilities flared last October.What little aid makes it into the Strip has been, at times, attacked by Israeli forces. Earlier this month, Israeli forces opened fire on a crowd that attempted to take food from a convoy of aid trucks, killing over 100 people.According to the Tel Aviv-based +972 Magazine, Israeli forces regularly hit “power targets,” such as “public buildings,” “universities, banks, and government offices” to “exert ‘civil pressure’ on Hamas.” The practice is a form of collective punishment, a war crime.While numerous Israeli officials have publicly stated they intend to destroy all of Gaza and ethnically cleanse the 2.3 million Palestinians living in the Strip, the White House has largely refused to condemn Israel’s war crimes or limit US military support to Tel Aviv.

Five dead, 22 injured after Israel strike UN food distribution centre in southern Gaza - Global News Network Liberia - Israel said on Wednesday that its airstrike on a UN food distribution centre in southern Gaza killed a Hamas commander who had been targeted but Palestinian health officials said it also killed four more people including a UN worker. The Israeli military said the strike killed Mohammad Abu Hasna, whom it described as a Hamas militant who provided intelligence to the group on Israeli troops' positions and was "also involved in taking control of humanitarian aid and distributing it to Hamas terrorists." The name Mohammad Abdel-Halim Abu Hasna appears on the list of five fatalities from the strike, provided by Gaza health officials. There was no immediate confirmation from Hamas that he was a member of the group now battling against Israeli forces in Gaza. Earlier, the main UN agency for Palestinians (UNRWA) said one of its facilities had been hit in Rafah, an area in southern Gaza where more than half of Gaza's 2.3 million population is sheltering. At least one UNRWA staff member was among the five killed and 22 others were injured, the agency said and the facility's coordinates had been shared with the Israeli military. "Today’s attack on one of the very few remaining UNRWA distribution centres in the Gaza Strip comes as food supplies are running out, hunger is widespread and, in some areas, turning into famine," said UNRWA chief Philippe Lazzarini. Hamas has denied Israel's accusations and says Israel is using famine to pressure the Palestinian population. Israeli Prime Minister Benjamin Netanyahu said on Wednesday he was determined to have UNRWA replaced by other agencies without harming aid distribution, citing alleged links between the agency and Hamas militants. In Washington, US Secretary of State Antony Blinken at a news briefing said he had not yet received details of the incident but said Israel must protect safety of humanitarian workers despite tough conditions. AID With the Gaza war now in its sixth month, The UN has warned that at least 576,000 people in Gaza – one-quarter of the population – are on the brink of famine and global pressure has been growing on Israel to allow more access to the enclave. On Tuesday, the United Nations used a new land route to deliver food to northern Gaza for the first time in three weeks. "We have been taking efforts to facilitate more aid into northern Gaza," Israeli government spokesperson Tal Heinrich told journalists on Wednesday. "This was a pilot to prevent Hamas from taking over the aid as they often do." The US, Jordan and others have conducted airdrops of aid in Gaza and on Tuesday a ship carrying 200 tonnes of aid left Cyprus in a pilot project to open a sea corridor to deliver supplies. While UN officials have welcomed new aid routes, they stress there is no substitute for land access. Since the Gaza war began, violence has also risen in the Israeli-occupied West Bank, with stepped up Israeli military raids and Palestinian street attacks. On Wednesday, Israeli officials said a 15-year-old Palestinian stabbed a soldier and a guard at a checkpoint between the West Bank and Jerusalem before being shot dead. In separate incidents, Israeli forces killed two Palestinians during a raid in Jenin, the official Palestinian news agency WAFA said, while a 13-year-old Palestinian was killed by Israeli forces on the outskirts of Jerusalem, in what Israeli police described as a violent riot.

Israel acknowledges strike on U.N. facility, says it targeted Hamas commander - The Washington Post -- The U.N. agency for Palestinian refugees said in a statement Wednesday that at least one of its staff members was killed and 22 were injured when Israeli forces struck one of its food distribution centers in southern Gaza. The Israeli military acknowledged the strike, saying it had targeted a Hamas commander. The Israel Defense Forces said in a statement that it had killed Muhammad Abu Hasna in the strike on the building in Rafah, describing him as “involved in taking control of humanitarian aid and distributing it to Hamas terrorists.” Hamas on Wednesday confirmed the death of Abu Hasna, whom Hamas said was the deputy head of police operations in Rafah. The U.N. Relief and Works Agency (UNRWA) said the distribution center near the Egyptian border had been hit even though the coordinates of the center had previously been shared with Israel and other parties to the conflict. UNRWA did not provide additional details on the nature of the attack or identify the staff member who was killed. Local human rights organizations reported that five people were killed. The Washington Post could not immediately confirm a higher death toll. The attacks on police and a U.N. aid facility occurred during a massive hunger crisis in Gaza that relief agencies say has been caused in large part by Israel’s obstruction of relief supplies to the enclave. Israel has previously carried out strikes on police, including those responsible for protecting aid convoys, prompting the remaining officers to withdraw and leaving the trucks and supplies exposed to looting by criminal gangs and desperate civilians. In recent weeks, as aid deliveries collapsed, at least 27 people have died of malnutrition and dehydration at hospitals in northern Gaza, where the needs are particularly acute, according to the Gaza Health Ministry. More than 31,272 people have been killed in Gaza since the war began, said the Health Ministry, which does not distinguish between civilians and combatants. Israel has denied limiting aid deliveries to Gaza, instead blaming the bottlenecks on humanitarian groups it says are unable to distribute the relief at a fast-enough pace. Aid agencies say a limited amount of entry points, an onerous Israeli inspection process and Israeli attacks on aid convoys and the local police that guard them have severely hampered relief efforts.

\Israeli troops launch massive invasion of Jenin - Israeli troops carried out a large incursion into the occupied West Bank city of Jenin and its refugee camp on 12 March, killing two Palestinians and injuring several others. Intense clashes between the Israeli army and the resistance in Jenin took place for hours throughout the city and camp.Army forces made their way from the Muqabilah opening towards the city of Jenin shortly before midnight, according to a correspondent for the Jenin al-Qassam telegram channel. “Israeli forces stormed the city and the adjacent refugee camp of Jenin with dozens of military vehicles and bulldozers supported by drones and special undercover units,” Palestinian news agency WAFA reported, citing locals and Palestinian security sources. Witnesses confirmed that Israeli bulldozers inflicted massive damage on the city’s infrastructure, deliberately destroying roads and sewage lines, as is customary during Israeli raids in Jenin.Heavy clashes broke out between the army and the resistance, which targeted Israeli forces with numerous explosive devices. “Our fighters detonated a number of pre-prepared high-explosive devices against occupation vehicles in several areas inside the Jenin camp,” the Al-Aqsa Martyrs’ Brigade said in a statement early on 13 March, as clashes continued to rage across the camp.

Israel kills more than 60 Gazans in latest breadline massacre Israeli troops carried out yet another massacre of Gazans waiting to receive food aid Thursday, killing 60 people and injuring 160, the Euro-Med Monitor reported. The shooting took place in the Kuwait roundabout on the outskirts of Gaza City. People seeking aid were targeted with gunfire from tanks, helicopters and drones. Footage circulating on social media showed dozens of bodies lying close together, covered in blood. The massacre appeared to be the largest since February 29, when Israeli forces killed 112 people and injured 700 more when they opened fire on people attempting to receive aid in the same location. Commenting on the latest killing, the Euro-Med Monitor wrote, “Amid conditions of famine created by Israel’s government, the Israeli army continues to deliberately commit massacres in the besieged enclave. The Israeli targeting of civilians while they attempt to obtain humanitarian aid has persisted for the fifth consecutive day now, with the total number of casualties from the ‘Flour Massacres’ reaching over 500 deaths.” Survivors of the massacre described how they were attempting to gather food for their starving families when Israeli forces abruptly opened fire. One survivor, Ibrahim Al-Najjar, said, according to the Euro-Med Monitor, that “he tried to get a bag of flour for his children at the Kuwait roundabout, but that he and others were subjected to live ammunition and artillery shells despite gathering in an area previously designated as safe by Israel’s army.” In a statement, Gaza’s Health Ministry called the attack “a new, premeditated massacre.” Thursday’s act of mass murder took place just one day after Israeli troops killed six Palestinians waiting for aid in the same location. Also Wednesday, Israeli forces carried out a strike on a United Nations food distribution center in Rafah, killing six people and injuring 22 more. UNRWA Commissioner-General Philippe Lazzarini said that the strike targeted “one of the very few remaining UNRWA distribution centres in the Gaza Strip … as food supplies are running out, hunger is widespread and, in some areas, turning into famine.” Almost the entire population of Gaza is facing hunger. At least 23 children are reported to have died from malnutrition and dehydration in northern Gaza over the past month, and the most basic food items are either unavailable or priced at unobtainable levels. The New York Times reported that rice was being sold for $11 per pound, more than 10 times the normal cost.