US oil prices fell for a third straight week and eclipsed a three month low, shedding another 4.1% following softer-than-expected macroeconomic data out of major global economies and threats of additional rate hikes to fight inflation by central bankers...after falling nearly 6% to a nine week low at $80.51 a barrel last week as fears that a wide spread conflict in the Middle East would disrupt global supplies receded, oil prices steadied in quiet trading on Monday, after Saudi Arabia and Russia reaffirmed their commitment to additional output cuts until the end of the year...however, oil prices then tumbled $3.45 or more than 4% to $77.37 a barrel on Tuesday, pressured by a stronger U.S. dollar and concern over slowing global oil demand following softer-than-expected data out of China and the US, and then dropped $2.04 to their lowest in more than three months at $75.33 a barrel on Wednesday, on worries over weak demand in the US and China and on an industry report of a 12 million barrel weekly rise in U.S. oil supplies....oil prices bounced off those lows on Thursday as bargain hunters moved in, supported by a UBS forecast that oil prices would move back up towards the $90-$100/barrel range, citing tight supplies and rising global demand, then rose another $1.41 to settle at $77.17 a barrel as Iraq voiced support for OPEC+'s oil cuts ahead of their meeting in two weeks, and as some speculators covered massive short positions ahead of weekend uncertainty...
meanwhile, natural gas prices fell every day this week and ended almost 14% lower on mild temperatures and record production...after edging up 1% to $3.515 per mmBTU last week on a surge in early-season heating demand and record LNG exports, the contract price of US natural gas for December delivery opened 18 cents lower on Monday following forecasts of strong production and comfortable temperatures for the coming week and continued to tumble to settle 25.1 cents or 7.1% lower at $3.264 per mmBTU as production hit another all-time high and early winter warmth deflated demand....natural gas continued to sell off in early trading Tuesday, but recovered from the lows to settle down 12.4 cents at $3.140 per mmBTU as cold weather still failed to show up in the latest forecasts...natural gas prices continued to retreat on Wednesday due to weak heating demand and steady production, and then fell 6.5 cents to $3.041 per mmBTU on Thursday as traders struggled to find direction following the delay of the latest government storage report...natural gas prices steadied on Friday, as bullish forecasts for colder weather around Thanksgiving and record flows to LNG export plants offset bearish forecasts for mild weather over the next 10 days and record output, but still settled eight-tenths of a cent lower at $3.033 per mmBTU, and thus finished 13.7% lower on the week...
Note: there is no data from the EIA this week, as per their press release:
EIA will briefly delay data releases from November 8-10
The U.S. Energy Information Administration (EIA) will delay its scheduled data releases for November 8–10, 2023, to complete a planned systems upgrade. EIA will resume its regular publishing schedule on November 13.
The delay will affect all scheduled data releases, including the Weekly Petroleum Status Report (WPSR) on November 8 and the Weekly Natural Gas Storage Report (WNGSR) on November 9. EIA will continue to collect data for those reports and will publish two weeks of official statistics for the WPSR on November 15 and the WNGSR on November 16.
i don't know why they couldn't have done their systems upgrade on a Monday and published up to date weekly data by Thursday, but it is what it is, and we therefore have neither natural gas storage nor oil and refinery data to report on this week..
This Week's Rig Count
in lieu of details on the rig count, we are again just including below a screenshot of the rig count summary pdf from Baker Hughes...in the table below, the first column shows the active rig count as of November 10th, the second column shows the change in the number of working rigs between last week’s count (November 3rd) and this week’s (November 10th) count, the third column shows last week’s November 3rd 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 week a year ago, which in this week’s case was the 11th of November, 2022...
it looks like the drop of two Gulf of Mexico oil rigs offshore from Louisiana accounted for this week's rig decrease, with other changes offsetting each other...Louisiana also saw a directional inland waters rig drilling for oil in St Mary Parish shut down this week, accounting for the three rig drop attributed to that state; two directional rigs drilling for oil on inland waters in Lafourche Parish, Louisiana, one at a depth of greater than 15,000 feet, continued to operate...the rig added to the Utica shale in Ohio was a horizontal rig in Jefferson county, targeting natural gas at a depth of greater than 15,000 feet...Ohio now has 3 rigs running in Monroe county, 3 in Belmont county, 2 in Noble county, and one each in Tuscarawas, Jefferson, Columbiana, Guernsey, and Carroll counties....
EOG: Emerging Ohio Utica Combo Play Competes with Premium Portfolio - EOG Resources continues to see promising results from its acreage in the Ohio Utica Shale—a region that could compete among the E&P’s premium developments going forward.So far this year, Houston-based EOG has added 25,000 net acres to its footprint in the Ohio Utica Combo play. The company now has around 430,000 net acres in the Ohio Utica, predominately in the volatile oil window of the play. EOG has around 430,000 net acres across the volatile oil window of the Ohio Utica Shale play.(Source: EOG investor presentation)EOG has also acquired 100% of the mineral rights across 135,000 acres of its Utica leasehold.The company’s leasehold entry cost in the play remains less than $600 per net acre. Meanwhile, comparable acreage in the Utica is now around $8,000 per acre, according to analysts at Truist Securities.EOG is seeing “strong and consistent well results” spanning across its Ohio Utica Combo position, Jeff Leitzell, EOG’s executive vice president of exploration and production, said during the company’s third-quarter earnings call.The company’s initial four-well Timberwolf package, drilled at 1,000-ft spacing, has been performing well above the general curve for the play: Each three-mile lateral delivered a 30-day IP average of 2,150 boe/d at an 85% liquid cut (55% oil).“With a large amount of liquids in the product mix, all of the wells we have drilled today support double premium potential across our acreage position,” Leitzell said.EOG has been fine-tuning a new completion design in the Wolfcamp Formation of the Delaware Basin; Leitzell said the company was able to implement its new completion design with the Timberwolf test wells in the Utica.EOG is tightening to an 800-ft spacing design with the Xavier well package, which is coming online during the fourth quarter.“With that application of new completion design, it's going to be tough to tell if that's really what the big mover is,” Leitzell said. “But, we’re extremely excited about the results that we’re seeing so far.”
EOG Uses Permian Completion Design on Utica Test Wells | Marcellus Drilling News - In 2020, EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), sold all of its Marcellus assets, which were located in Bradford County, PA, to Tilden Resources for $130 million (see EOG Resources Sells Marcellus Assets for $130M, Exits Basin). EOG left the M-U building, so to speak. But the company couldn’t stay away. Last November, we told you that EOG admitted to stealthily amassing 395,000 net acres in the Ohio Utica for very little money (see EOG Resources Accumulates 395K Acres in Ohio Utica for Under $500M). EOG calls its position the “Ohio Utica combo play” and considers it among its “emerging plays.” EOG concentrates on oil drilling in the Utica. As part of its third quarter update, EOG said it is seeing promising results from test wells in the Utica, and that going forward, the Utica will compete with EOG’s foundational Delaware Basin (Permian) and Eagle Ford programs for drilling budget.
Why oil companies are worried about climate lawsuits from gas states - Pennsylvania and Ohio — two major fossil fuel-producing states — are emerging as unlikely battlegrounds in local governments’ sprawling legal fight to put the oil and gas industry on the hook for the costs of climate change.Research to estimate what local officials in the two states would spend to address planet-warming emissions, conducted by a group that supports climate litigation, has sparked interest from some lawmakers — and alarm from the oil industry and its allies.“It would be like a cherry on top,” Richard Wiles, president of the Center for Climate Integrity, said of the possibility of a climate liability lawsuit in Ohio or Pennsylvania. “It would be great if we could get a case in a fossil fuel-producing state.”Industry groups are assiduously tracking the center’s efforts, detailing every development on the website for Energy In Depth, a research and outreach campaign run by the Independent Petroleum Association of America. The group has accused the center of trotting out a familiar playbook in hopes of seeding climate lawsuits.“Pennsylvania and Ohio are home to prolific natural gas and oil development that benefits the entire Appalachian region and country, and we have decades of experience developing these resources safely and responsibly,” IPAA CEO and President Jeff Eshelman said in a statement. “Wealthy, foreign interests that seek to halt this progress through costly litigation on the taxpayer’s dime — and with it, eliminate thousands of jobs that are powered by these essential resources — are misinformed, hypocritical, and doomed to fail.”IPAA has accused the climate center of receiving $7 million from British investor Chris Hohn between 2018 and 2020. The center says the money was directed to its parent organization, the Institute For Governance & Sustainable Development, and that none of it was spent on litigation in the United States. Wiles said the effort to calculate climate change expenses — from planting trees to increasing storm drainage capacity — for municipal governments is aimed at educating local officials, as well as talking to them about ways to pay those bills. “It’s no secret that we go around and talk to elected officials about their damages and their options for recovering costs,” Wiles said. “One of the first questions is, ‘What are my damages?’ We’re trying to figure out if there is a systematic way to answer that question.”
"A Cherry On Top.” CCI Boasts About Targeting Energy States for Climate Lawsuits - Energy In Depth - The Center for Climate Integrity – the Rockefeller-funded activist group pushing climate litigation across the country – is openly boasting of targeting energy producing states with lawsuits in blatant attempt to undermine the U.S. oil and natural gas industry. In a new article from E&E News, Richard Wiles, president of the CCI spoke of his group’s focus on Ohio and Pennsylvania, two states that sit atop the Marcellus and Utica Shale, as if it’s a gameshow prize. “It would be like a cherry on top. It would be great if we could get a case in a fossil fuel-producing state.”Notably, Wiles appears completely unconcerned about how a climate lawsuit such as this would put thousands of workers in both states out of business, and openly talks about the partisan nature of these suits:“We’re not oblivious to the fact that it’s a major natural gas-, fossil fuel-producing state. But it’s a purple state, a state that hasn’t lost its mind completely.”Energy In Depth has discussed how CCI’s venture into oil- and natural gas-producing states like Ohio and Pennsylvania marks a distinct shift away from their usual recruiting strategy – and one that faces a steep uphill battle in both states. Read more on the latest at EIDClimate.org.
How the fossil-fuel lobby weaponized Julia Child’s gas stove - For years on her popular cooking show, The French Chef, Julia Child used a crude, makeshift kitchen that she and her husband would haul to the set for each filming. When she returned to the screen for a new, 13-episode series later in her career, she had one condition: She needed a kitchen that was her own to film in, one “that we could just walk into and work in and leave.”Child got her wish — thanks to a generous sponsorship from the American Gas Association (AGA), a powerful lobby for gas utilities, which paid for a new kitchen, complete with a four-burner commercial range and a gas oven rotisserie.Her new show, Julia Child & Company, aired in 1978. “We have a new set, and a new theme song,” she said at the time. And each episode that theme music reached its crescendo, a slide noted a “special thanks to The American Gas Association.”Child herself never endorsed products on her shows (regulations around public programming forbade it) and there’s no evidence to suggest that she was a willing shill of the AGA. But from the industry’s point of view, Child was potent product placement that could help establish the dominance of gas in the American home. “Millions of viewers week after week will be able to watch Julia Child as she stirs food simmering over a gas flame,” read an October 1978 article from the association’s monthly trade magazine.This was a continuation of a larger campaign called “Operation Attack.”Launched by the AGA in the late 1960s, it employed at the time some of the same experts and public relations firms as the tobacco industry to fend off growing threats to gas. The nation was becoming more environmentally conscious; the fossil-fuel industry feared heightened scrutiny from the newly formed Environmental Protection Agency, and energy price shocks had begun to make alternative fuels more appealing. To make matters worse, new research raised questions about gas stove emissions and impacts on public health. Gas was losing ground to electric competition, but the industry had plans to fight back.
Pennsylvania’s fracking boom is hurting its oldest residents -- In 1976, Mary Ellen McConnell, a “concrete city kid,” moved from Bethesda, Maryland, to the verdant hills and river valleys of Clearville, Pennsylvania. But that tranquility proved to be short-lived: A few decades later, the area would be overrun with big fracking rigs from natural gas companies drawn to the rich stores of methane gas trapped in the 500 million-year-old sedimentary rock below. The previous owners of McConnell’s home had signed a lease in perpetuity with Columbia Gas, a subsidiary of a major natural gas company. That meant that even though McConnell owned the farmhouse, she had no say in how the minerals below the surface were used. In return, she received an annual check of $248, or $2 per acre. McConnell spent years trying to cancel the lease, petitioning the company directly and even seeking legal counsel, but in 2010, Columbia Gas filed an injunction against McConnell and began seismic testing to use the area beneath her land for “storage” — of exactly what, McConnell does not know. Over the next few years after the injunction, she and her family experienced a barrage of severe health problems. McConnell developed breathing trouble, severe leg pain, and high blood pressure. She had two massive heart attacks. A 2012 test conducted by a private company, Martin Water Conditioning, revealed that her water contained more than twice the safe concentration of arsenic. A media representative from TC Energy, the parent company of Columbia Gas, said in an email that the reservoir formations beneath McConnell’s property are used to temporarily store natural gas beneath one mile of rock. “Up until 10 years ago, I was a pretty healthy bitch,” said McConnell, now 80. “And, unfortunately, I’m dying.” The fracking process uses over a thousand different chemicals and pollutants, some of which are considered proprietary trade secrets, meaning nearby residents don’t always know what they’re exposed to. Of the nearly 18 million Americans living near oil and gas wells, close to 3 million are 65 and older, many concentrated in Pennsylvania, the country’s second biggest producer of methane gas behind Texas, according to the U.S. Energy Information Administration. Living in an environmentally polluted area is dangerous for anyone, but for older adults like McConnell, exposure over many years has the potential for devastating, even life-ending, health problems. Compared to younger people, seniors are less able to excrete harmful substances, like arsenic and other heavy metals, as the liver and kidneys filter out toxins less effectively with age. And seniors are also more likely to have pre-existing conditions such as respiratory and cardiovascular problems that can amplify health risks.
Pennsylvania Governor’s Deal With Fracking Company Splits Environmentalists -- Environmentalists are split over a new deal struck by Pennsylvania’s governor with a natural gas producer — while some have applauded the effort to move forward amid a legislative deadlock on climate action, those on the front lines fear the agreement amounts to little more than PR, offering a model for the industry to regulate itself. On Nov. 2, Gov. Josh Shapiro and CNX Resources Corporation President and CEO Nicholas J. DeIuliis – a past vocal opponent of regulations on the energy industry, climate science and “the left,” broadly — signed an agreement in which the fracking company “[expressed] its intention” to adhere to a handful of health and safety reforms Shapiro once recommended as Attorney General.The company volunteered to extend no-drill safety zones between new wells and homes from the legal minimum of 500 feet to 600 feet, and to 2,500 feet for schools and hospitals; to monitor and publish data on harmful pollutants near its facilities; to publicly disclose the names of chemicals it uses for drilling, “subject to trade secret claims by chemical manufacturers”; and to work with the state Department of Environmental Protection (DEP) to collect air quality data on two of its sites — all nonbinding steps as the statement is written.Buried in this announcement was news that the DEP would begin the process of promulgating new regulations around methane, drilling waste, chemical disclosures of fracking fluids and corrosion of gathering lines that transport natural gas. The partnership, which Shapiro’s office said in a press release added to “an already robust regulatory framework,” comes three-and-a-half years after Shapiro, as state attorney general, published a grand jury report that found the DEP had failed to protect Pennsylvanians from the health and safety risks of fracking. That report came with eight recommended reforms. CNX’s agreement adopts several of them, but fails to mention an enforcement mechanism. “This is a voluntary agreement,” Shapiro said in a press conference on November 2. Even so, he said, it’s one he’s taking as a sign of progress as the state Legislature stalls on climate action. “We’ve shown that energy production and environmental protection — they can coexist here in the Commonwealth of Pennsylvania,” Shapiro continued. “You can be profit-minded and you can meet your obligations to your shareholders and employees and also protect public health and public safety. CNX is proof of that.” And, while CNX’s agreement is voluntary, the regulations he directed the DEP to promulgate would not be, once they go into effect in some 18-24 months, a DEP spokesperson told Capital & Main. From the campaign trail, Shapiro has walked a tightrope on energy issues — and in office, has been criticized by some for both inactionon climate change and playing too far into the hands of industry.With this deal, the Shapiro administration is leaning on a strategy of consensus-building — one that some grassroots environmentalists swiftly rejected. “Governor Shapiro’s toothless monitoring scheme is outrageous and embarrassing,” Food and Water Watch Pennsylvania State Director Megan McDonough wrote in a statement on the day of the announcement. “Instead of taking real actions to rein in corporate polluters, he is striking bogus partnerships to give frackers a public relations victory.”
Sounding the Alarm: Harrisburg Considering Backdoor Ban on Natural Gas Development – Marcellus Shale Coalition --A dangerous legislative proposal discussed in Harrisburg this week would effectively ban natural gas development in Pennsylvania, destroy millions of jobs, jeopardize domestic energy security and take away a critical emission reducing tool, energy and labor leaders stressed in a series of hearings at the state capitol.The bill, House Bill 170, would arbitrarily and without any scientific data impose a half-mile setback and represents ”nothing but a backdoor ban” on development, Marcellus Shale Coalition President David Callahan warned legislators during the House Environmental Resources & Energy Committee hearing.If the bill were to become law, the vast majority of acreage in Pennsylvania would be off limits to natural gas development, a MSC whitepaper concluded. The maps of Susquehanna and Washington Counties, Pennsylvania’s top two producing counties, demonstrate the impact of the increased setbacks being proposed. Present setbacks eliminate activity from 30% and 40% of land in Susquehanna and Washington, respectively. The proposed setback, however, would essentially sterilize the counties from any development.Not justified or supported by any scientific or health data, this shortsighted policy will kill jobs and deprive hundreds of thousands of citizens of the ability to develop the natural gas resources they own.Pennsylvania’s natural gas sector employs over 123,000 direct jobs and contributes ~$40 billion in annual economic activity to the state, economic impact data shows. More than $6 billion was paid by the industry to government and private landowners in royalty payments last year – which would be erased should legislation like HB 170 take effect.“To state this development must be banned because it cannot be done safely is a slap in the face of the men and women we represent,” President Rob Bair of the PA Building & Construction Trades Council testified at the hearing.Indeed, our industry’s track record demonstrates Pennsylvania can be an energy powerhouse while safeguarding our environment and making significant progress on emissions reductions. In addition to the more than 40 laws, permit authorization packages and technical guidance documents within the DEP, Pennsylvania currently has the most stringent setback distances of any major energy-producing state in the nation.
Letter to the editor: Fracking is regulated | TribLIVE.com - Regarding the letter “Fracking needs to stop” (Oct. 17, TribLIVE): There could not be a worse policy for Pennsylvania. The writer utilized a summary of a University of Pittsburgh health study which didn’t acknowledge other environmental factors and didn’t directly connect the oil and gas industry with health impacts. As a geologic and environmental professional working as a third party with the oil/gas industry, I know firsthand the importance of this sector to my community and this region. This industry goes to great lengths to establish a high environmental compliance standard and protect our environment. It is also subject to regulatory reporting that is more transparent than any other Pennsylvania industry. The way natural gas is produced today is modern, efficient and poses minimal disruption to our environment and communities. If state lawmakers took the extreme step to immediately ban “fracking,” they’d instantly threaten the state economy and the livelihoods of 120,000 Pennsylvanians — not to mention drive up energy costs and threaten our national security. We must instead implement commonsense policies and regulations that uphold high standards for operators yet support the continued responsible development of energy that has contributed so positively to our region. Jeff Walentosky Kennedy The writer is president of Moody and Associates.
Numerous miles-long oil spills have been reported on the Monongahela River -— Oil sheens up to 18 miles long have repeatedly been reported by an environmental advocacy group on the Monongahela River over the last six months. The site of the recurring pollution is only a few miles from where the Monongahela River merges with the Ohio River, which provides drinking water to more than five million people. This type of oil sheen is typically the result of petroleum-based products in waterways. A single quart of oil can contaminate up to a quarter million gallons of drinking water. Oil on the surface of a body of water can disrupt ecosystems and food chains by harming birds, plants, animals and insects; make water unsafe for human consumption; and vaporize and contaminate the air. There are several industrial facilities with drainage outfalls in the oil-polluted sections of the Monongahela River, including U.S. Steel’s Irvin Works, which has been issued notices of violation for several of these oil spills by both the U.S. Environmental Agency (EPA) and the Pennsylvania Department of Environmental Protection (PA DEP). U.S. Steel spokesperson Amanda Malkowski told Environmental Health News (EHN) the company has worked and communicated with the state’s Department of Environmental Protection and “has thoroughly investigated every report” of oil spills tracked to its facilities. “We will continue to work with and communicate with the relevant agencies as appropriate. We continue to monitor our operations and the water conditions around our facilities. Environmental performance remains one of our top priorities.” Notices of violation instruct companies to investigate potential sources of pollution, report their findings to regulators, and fix the problem. They do not carry any fines. The oil spills are just the latest environmental insult for the waterway, which is one of Pittsburgh’s iconic three rivers, in addition to the Allegheny and the Ohio Rivers, which together make up the Ohio River basin. Among major watershed regions nationwide, the Ohio River basin received the largest volume of toxic chemical discharges by weight in 2020. The lower Monongahela watershed ranked fourth nationally for releases of chemicals that cause reproductive harm into waterways, with around 7,364 pounds of these chemicals dumped into the watershed’s rivers and streams that year. The way oil spills disperse creates a special headache for investigators in tracking down a source but health advocates say residents aren’t getting the answers — or action — they deserve. “It’s an unfair burden for these communities to be continually polluted by these industries with no penalty,” Heather Hulton VanTassel, executive director of Three Rivers Waterkeeper, the scientific and legal advocacy group that’s been documenting the oil spills, told EHN. “By now there should have been real penalties for this polluter to prevent continued pollution.”
Majority-Black Pennsylvania community fights back against proposed $6 billion LNG terminal – EHN -- Bonnie Waites remembers Chester years ago, before the incinerator came to town in 1992, bringing the seemingly endless rumble of waste trucks into this small city in southeastern Pennsylvania, just down the Delaware River from Philadelphia. “You could hang your clothes outside on the lines. The kids could play. We had a playground and a swimming pool. But you can’t sit outside now.” In what was once a proud and neighborly community where residents sat on their porches and looked after kids playing in the streets, the noxious smell and degraded air quality attributable to the Covanta waste incinerator — the largest in the country, burning as much as 3,500 tons of trash a day — have driven residents indoors or out of town. The city’s population, which is 72% Black, has dwindled by 20% in the past three decades, falling to about 33,000. Many who remain suffer from health problems linked to the incinerator and other industrial facilities, including the Delcora sewage treatment facility, a Kimberly Clark paper mill and a PQ Corp. chemical plant, all of which have a history of pollution. The Covanta facility alone emits as much as 200,000 pounds per year of particulate matter 2.5 (PM2.5), a pollutant that contributes to respiratory illness, diminished lung function and is even linked to cancer. Childhood asthma rates in the city are at least three times higher than the national average. In the same year the incinerator came to town, the community formed Chester Residents Concerned for Quality Living, an organization advocating for clean air, community health and environmental justice. The organization has had its hands full for more than 30 years, fending off a range of efforts to heap more industrial weight upon Chester’s shoulders, including a soil remediation plant, a proposal to burn tires for energy and a Thermal Pure Systems facility treating infectious medical waste. Now, as Penn America Energy seeks to capitalize on Pennsylvania’s abundance of shale gas by building a $6.4 billion liquefied natural gas terminal on the city’s waterfront, residents are fighting back once more. Their impassioned pleas to keep the LNG plant out of Chester reflect fears of the potential disaster that follows a leak at such facilities and concerns about the assortment of pollutants they emit, from PM2.5 and particulate matter 10 (PM10) to nitrogen oxides, sulfur dioxide, carbon monoxide and a host of volatile organic compounds.The final report of a state task force that examined the feasibility and impact of the proposed LNG facility is expected as soon as November, according to a spokesperson for state Rep. Martina White, the task force’s Republican chair, who declined to comment until the report is released. Penn America’s proposal projects $3 million in annual tax revenue for Chester during a four-year build-out phase and $13 million per year once the site is operational. The city, which is in bankruptcy, has an operating budget of $61 million. The proposal also projects nearly 8,000 jobs to be created during build-out and around 3,000 once operations start.Community members anticipate a report that supports Penn America’s ambitions, given White’s leadership of the bipartisan task force and the fact that it includesrepresentatives of the oil and gas industry and local unions that would benefit from its development. Rep. Joseph Hohenstein, a Democrat on the task force who is preparing a minority report, told EHN Chester residents’ refusal to accept the potential harms and hazards of yet another industrial facility is a “turning point” in the city’s history.“We are resilient people,” Zulene Mayfield, Chester Residents Concerned for Quality Living’s leader, told EHN. “We are going to be the determining factors as to what’s going to happen in our community and to our people. Our biggest victory is that after 30 years we rise up every time for the fight. We’ve come up against multibillion-dollar corporations and we don’t back down. You cannot scare us and you cannot buy us.”
FERC, NERC Caution Against Closing Everett LNG Import Terminal in New England - The potential closure of the Everett LNG import terminal in New England next year could jeopardize the reliability and affordability of the region’s energy supplies, FERC and the North American Electric Reliability Corporation (NERC) warned in a joint statement. Federal Energy Regulatory Commission Chairman Willie Phillips and NERC CEO James Robb expressed concerns over the possible closure and what the absence of Everett could mean for New England in the event of another event like Winter Storm Elliott, which slammed the East Coast late last year. During the storm, Phillips and Robb pointed out that both electric and natural gas systems throughout much of the eastern half of the United States were subjected to significant stress. That resulted in unplanned generating unit...
15,000 gallons of heating oil spilled from paper mill’s tank in Putney into nearby waterways -An estimated 15,000 gallons of heating oil spilled from a tank at the Soundview Paper mill in Putney Thursday night, much of it entering Sacketts Brook, which flows into the Connecticut River. Authorities have thus far recovered more than 12,000 gallons of the sludgy No. 2 heating oil, according to Mike Nucci, an environmental analyst with the Vermont Department of Environmental Conservation spill team. He said he expected authorities to discover more of the missing oil when they excavate the ground underneath the oil tank. Crews from the Putney Fire Department and Vermont HAZMAT Team responded to the spill, which the Brattleboro Reformer first reported, and installed spill booms to prevent the flow of oil and to absorb it. “Everything we were trying to do at that point was to contain the spill,” Nucci said. New Hampshire’s Department of Environmental Services installed a harbor boom, he said, to prevent more oil from escaping Sacketts Brook into the Connecticut River. “This one was just a bad set of circumstances,” Nucci said, “given the location of the tank and the volume” of oil, much larger than the residential basement heating oil spills that make up more of his work. He suspected that the environmental impact may be limited to vegetation damaged or killed along Sacketts Brook. He said he has not observed impacted wildlife. Andrew Madison, an investigator in oil remediation and compliance for New Hampshire’s Department of Environmental Services, said he had observed an oil sheen on the Connecticut River on Friday, Saturday and Sunday, but the sheen was not visible on Monday.
What Do PFAS Have to do With Fracking? | Food & Water Watch -Recent analyses by Physicians for Social Responsibility found evidence suggesting that PFAS and precursors (related chemicals that can break down into PFAS) have been used in fracking fluids in thousands of wells across several states. For instance, oil and gas companies injected at least 43,000 pounds of PTFE/Teflon across 73 Texas counties. However, the prevalence is likely understated, given disclosure loopholes that allow companies to withhold chemical identities as trade secrets.1The use of PFAS in fracking creates additional avenues for potential human exposure through air and water contamination. Wastewater disposal poses another potential exposure route; various disposal practices include underground injection, land application, and road spreading to suppress dust or de-ice.2 This is on top of the well-documented environmental and health impacts that fenceline communities already face from living near fracking facilities.3
'Doom to the Pipeline': Lone Grandfather Arrested for Blocking MVP Construction - A grandfather named Jerome was arrested and charged with four misdemeanors in West Virginia after locking himself to a Mountain Valley Pipeline drill, which shut down construction on the fracked gas project for over three hours on Thursday, according to a protest group. "Jerome's bail was set at $35,000—an astronomical amount for misdemeanor charges!" the anti-MVP group Appalachians Against Pipelines said on social media, also confirming he was released. "I am the father of three daughters and the grandfather—soon—of five grandsons," Jerome said in a statement. "I am horrified by what climate change is already doing to all life here on Earth. And I'm even more horrified that we still envision and construct projects like MVP which will only worsen the warming and deepen the chaos.""To me, this project marks a watershed moment—a tipping point. All the powers of the federal government (executive, congressional, and judiciary) are aligned to support the fossil fuel industry in this catastrophic project," he continued. "If we, as caring humans, let that effort prevail, we invite more ram-rodded fossil fuel projects and generations of continued entrenchment in global warming emissions and deepening social distress."The debt ceiling deal negotiated earlier this year by congressional Republicans and President Joe Biden—who campaigned on a pledge to tackle the climate emergency—included a section intended to thwartlegal challenges and fast-track construction of the MVP, which is set to cover over 300 miles in Virginia and West Virginia.One of the key congressional advocates of the project has been Sen. Joe Manchin (D-W.Va.), a right-wing coal baron. "I am a retired white male with lots of privilege. Today, I am using that privilege to fight back," said Jerome. "Together, we say, 'Nope!' to Joe Manchin, the debt deal extortionist. 'No way!' to MVP and their doomed pipeline. 'Yay!' to the resistance." Armed with a "Doom to the Pipeline" banner, Jerome protested at Elk River, one of the hundreds of MVP water crossings.In addition to sounding the alarm about how MVP will contribute to the global climate emergency—pointing to scientists and industry experts'warnings that the world must rapidly shift away from fossil fuels—Appalachians have long expressed concerns about what its construction and operation will do to the region. "The destruction wrought by this pipeline on our planet and communities is President Biden's climate legacy," Russell Chisholm, an impacted community member and managing director of the Protect Our Water, Heritage, Rights (POWHR) Coalition, said this summer, after federal regulators gave the project a green light."The gas from the pipeline is unnecessary, the permanent local jobs provided are minimal, the endangerment to precious species is irreversible, water sources will be polluted, and earthquake- and landslide-prone areas stand in its wake," he added. "We are devastated but we will never give up on protecting our home."
Top US gas producer says pipeline fights endanger industrial world - The largest US natural gas producer has lambasted a “war on infrastructure” that risks sparking a Europe-style energy crisis in parts of the US, days after the latest delay to a new pipeline fast-tracked for approval by Congress.EQT chief executive Toby Rice told the Financial Times that the US had “oceans of natural gas”, but companies like his in the prolific Appalachian shale region were struggling to add supplies because new pipeline capacity had been blocked.“The industrial world that we enjoy now is severely compromised because of the lawsuits, the pushback and the movement to cancel energy infrastructures and modern society. We’ve run out of flexibility,” said Rice, 41, who describes himself as a “shalennial”.His comments followed the announcement last month of another delay to the Mountain Valley Pipeline, a 303-mile gas project stretching between West Virginia and Virginia that is opposed by green campaigners and some landowners.When MVP was first announced in 2014 it was expected to be completed by 2018 and cost $3.5bn. It is now forecast to cost $7.2bn and begin operations next year.“The ramp-up of MVP’s contractor workforce has been slower and more challenging than expected, due to multiple crews electing not to work on the project based on the history of court-related construction stops,” Equitrans Midstream, one of the owners of MVP, said in a securities filing.In June, Congress passed a law specifically to fast-track construction of the MVP following the intervention of Joe Manchin, a West Virginia senator who holds the balance of power in the Senate. A month later the Supreme Court cleared the legal path for construction to resume.But several attempts to pass laws in Congress to streamline permitting processes more broadly, which were supported by both the fossil fuel and renewable energy lobbies, have failed over the past two years.Rice said the fact it now took an act of Congress to get a single pipeline built in the US “should scare the hell out people”, particularly when cities in New England have to import liquefied natural gas from abroad during winter freezes.He warned that parts of the US could face the kind of energy crisis that hit Europe after Russia’s full-scale invasion of Ukraine. Rice said Europe was vulnerable because it had “shut down building infrastructure”.
Southwestern New Drilling Drops by One-Third, Profits Down Too | Marcellus Drilling News -- Southwestern Energy, with major assets in the Marcellus/Utica and Louisiana Haynesville, issued its third quarter 2023 update last week. The company generated $45 million in net income for the quarter versus profiting $450 million in 3Q22. Southwestern reported total net production of 425 Bcfe (billion cubic feet equivalent), or 4.6 Bcfe per day, including 4.0 Bcf per day of gas (86% natgas, 12% NGLs, 2% oil). Southwestern invested $454 million of capital, using it to drill 24 wells, complete 25 wells, and place 23 wells online to sales, including 15 in the Marcellus/Utica and 8 in the Haynesville. New drilling fell (by our back-of-the-envelope estimate) about one-third from 2Q23.
Southwestern CEO Sees Haynesville Producer Discipline, LNG Demand Boosting Natural Gas Prices - The management team of Southwestern Energy Co. sees strengthening natural gas prices on the horizon, as U.S. producers tap the brakes on output and LNG exports continue to rise. CEO Bill Way hosted a conference call to discuss third quarter results for the natural gas-weighted independent, which operates in the Appalachian Basin and the Haynesville Shale. “We believe we have materially improved our capital efficiency and positioned the company for enhanced through-the-cycle price realizations with a more moderate go-forward hedging practice,” said Way. “Our progress on these priorities this year has further strengthened the business and positions us for differentiated value capture as we shift towards an improving macro environment...
US natural gas production and demand to rise in 2023 – report -- Natural gas production and demand will rise to record levels in 2023, according to the US Energy Information Administration (EIA) in its Short Term Energy Outlook (STEO), which it published on Tuesday. Dry gas production will rise to 103.68 billion cubic feet per day (bcf/d) in 2023 and 105.12bcf/d in 2024, up from a record 99.60bcf/d in 2022, according to the EIA’s latest estimates. The agency has revised down its forecasts from October in which it predicted 103.72bcf/d for supply. It also predicts that domestic gas consumption will rise from a record 88.38bcf/d in 2022 to 89.42bcf/d in 2023, before falling to 89bcf/d in 2024. The October forecast for demand in 2023 was 89.17bcf/d. Should the predictions come to pass, it would be the first time output has risen for four years in a row since 2015, and 2023 would be the first time demand has risen for three consecutive years since 2016. The EIA also estimates that US exports of liquefied natural gas will rise to 11.80bcf/d in 2023, up from 10.59bcf/d in 2022. They will then continue to rise to 11.80bcf/d in 2023. This is up from the agency’s forecast of 11.62bcf/d in October. During the winter, natural gas prices are predicted to average around $3.40 per million British thermal units (MMBtu), peaking at more than $3.60/MMBtu in January. According to this forecast, prices will therefore be lower this winter compared with last winter as natural gas inventories are relatively full. Prices averaged $5.00/MMBtu in 2022.
Enbridge Bets Big on U.S. Natural Gas Demand, LNG Exports - Enbridge Inc.’s chief executive touted the Canadian company’s efforts to further expand in the United States – on the Gulf Coast and elsewhere – as part of a bid to capitalize on expected long-term natural gas demand in North America and overseas. The Calgary, AB-based company, already a major force in Canadian and American energy, said a string of previously announced agreements with Dominion Energy Inc. would bolster its gas utility operations throughout several U.S. states. Enbridge is buying East Ohio Gas Co., Public Service Co. of North Carolina Inc., as well as Questar Gas Co. and its Wexpro Co. affiliate. In all, the Dominion units on the sale block serve 3 million customers across 78,000 miles of pipelines with customers in Idaho, North Carolina, Ohio, Utah and...
TC Energy Touts Record NGTL Natural Gas Volumes, New Project Approvals - TC Energy Corp. is transporting record natural gas volumes on multiple pipeline systems in North America as it continues to advance various expansion projects, management said Wednesday. CEO Françios Poirier hosted a conference call to discuss the Calgary-based midstreamer’s third quarter earnings. “We continue to see strong, sustained demand for our services, and that’s maximizing the value of our assets through safety and operational efficiency,” Poirier told analysts..
Venture Global LNG wraps up $1 billion senior notes offering - US LNG exporter Venture Global LNG has closed its $1 billion offering of senior secured notes.The offering included a series of 9.5 percent senior secured notes due February 1, 2029 in an amount of $500 million and a series of 9.875 percent senior secured notes due February 1, 2032 in an amount of $500 million, according to Venture Global.The firm said that the 2029 notes offered are a reopening of the $2.5 billion 9.5 percent senior secured notes due 2029 and the 2032 notes offered are a reopening of the $1.5 billion 9.875 percent senior secured notes due 2032 issued by the company on October 24.Venture Global said the notes were not registered under the Securities Act of 1933, or the securities laws of any state or other jurisdictions, and the notes may not be offered or sold in the US.This offering takes Venture Global’s total year-to-date high yield debt raised to $9.5 billion, which marks the “largest US dollar high yield issuance by volume in a single year since 2015,” it said.In May, Venture Global closed its $4.5 billion inaugural offering of senior secured notes.The LNG exporter recently won approval to increase the peak workforce at the site of its Plaquemines LNG export plant in Louisiana.Earlier this year, the firm sanctioned the second phase of the Plaquemines LNG export plant in Louisiana.The full project, including the second stage, will have a capacity of 20 mtpa coming from 36 modular units, configured in 18 blocks.Together, phase one and phase two represent about $21 billion of investment. Once online, this will be Venture Global’s second LNG plant after the Calcasieu Pass plant in Louisiana.
Tellurian Warns of Insolvency as it Tries to Advance Driftwood LNG - Tellurian Inc. said it could soon be insolvent unless it raises more capital to pay off debt and fund its operations as plans to develop the Driftwood LNG export terminal in Louisiana haven’t become a reality. The company said in its quarterly report filed with the U.S. Securities and Exchange Commission (SEC) that it faces borrowing costs of $391 million in addition to another $15 million of other debt due over the next year. The company said it has just $83 million in cash and accounts receivable, which it said likely won’t be enough to cover its expenses or debt covenants. “These conditions raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued,” Tellurian said in the 10-Q...
Long-term LNG Contracting On the Rise, with Most Deals Indexed to Henry Hub Natural Gas Price - LNG buyers are signing long-term supply contracts at an unprecedented clip, and those contracts are increasingly being linked to U.S. natural gas benchmarks such as Henry Hub, according to NGI Senior LNG Editor Jamison Cocklin. Last year “was a record year” for the signing of these contracts, Cocklin said during a joint webinar with experts from NGI and the London Stock Exchange Group plc (LSEG). “Buyers sought cover from volatility on the spot market, and this was a marked shift from previous years,” he explained. Global supply concerns triggered by Russia’s invasion of Ukraine caused a spike in prices and volatility, incentivizing long-term contracts linked to relatively cheap U.S. pricing.
Associated Natural Gas Production Surges in Permian Basin, Bolstering Supply and Taming Prices - Production of associated natural gas – fuel produced in concert with oil – surged in the prolific Permian Basin over the past five years, supporting strong total supplies and, for much of this year, helping to keep U.S. prices in check. Associated gas produced from the top three oil plays in the Permian region – Wolfcamp, Spraberry and Bone Spring – has nearly tripled since 2018, from an annual average of 4.7 Bcf/d to 13.7 Bcf/d in the first seven months of 2023, according to Energy Information Administration (EIA) researchers. They said such gas output swelled because of both rising crude production amid steady global demand and an increasing gas-to-oil ratio (GOR) among wells in the three leading plays. The GOR measures the volume of natural gas per barrel of oil that a well produces...
EIA Discovers More Oil Drilling Produces More Associated NatGas | Marcellus Drilling News - Long-time MDN readers will know what “associated gas” is — natural gas that comes out of the same hole that oil comes from. When shale oil drillers sink a hole with the intent to get oil (one hydrocarbon), natural gas (another hydrocarbon) comes out, too. Even more hydrocarbons may also come out, including ethane, propane, and butane (NGLs). It’s natural! It happens. The “problem” for oil drillers has been what to do with “associated” natgas, which is considered a waste product for an oil driller. With new regulations adopted in recent years in places like Texas, New Mexico, and North Dakota (big oil drilling states), drillers increasingly cannot flare (or burn off) the natural gas coming out of the borehole along with the oil. It creates too many CO2 molecules floating in the atmosphere, toasting Mom Earth (as the myth goes).
Excelerate seals 15-year LNG supply deal with Petrobangla - US FSRU player Excelerate Energy has signed a 15-year liquefied natural gas (LNG) supply deal with Bangladesh’s state-owned Petrobangla.Bangladesh recently approved this long-term LNG SPA. Under the SPA, Petrobangla has agreed to purchase 0.85 to 1 million tonnes per annum of LNG from Excelerate beginning January 2026. Excelerate will deliver 0.85 Mtpa of LNG in 2026 and 2027 and 1 Mtpa from 2028 to 2040, it said in a statement. Bangladesh currently imports LNG via its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, and via Summit Group’s FSRU-based terminal. Both of these facilities feature Excelerate’s FSRUs. Today, these two FSRUs in Bangladesh deliver about 25 percent of the country’s natural gas supply, according to Excelerate. In addition to providing the FSRUs, Excelerate has also provided spot LNG cargoes to the country. This long-term SPA represents the next phase of Excelerate’s plan to integrate its business in Bangladesh, the firm said. “Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG,” CEO Steven Kobos, said. “Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders,” he said. Earlier this year, Excelerate signed a 20-year deal to buy 0.7 mtpa of LNG on a free on board (FOB) basis from Venture Global’s Plaquemines LNG facility in Plaquemines Parish, Louisiana.Exclerate currently operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located around the globe, including in Europe and in Brazil.The firm also ordered one FSRU in South Korea last year.
NFE Expects Altamira LNG to Become First Operational Mexican Export Project By Year’s End - New Fortress Energy Inc. has started the flow of natural gas to its offshore Altamira LNG terminal, which could become the first Mexico export project to supply U.S. gas to the international market when production begins in the “next few weeks,” management said Wednesday. During a third quarter call with analysts, CFO Chris Guinta said crews opened the valve on Monday to the subsea pipeline feeding the first 1.4 million metric tons/year floating liquefied natural gas platform offshore Mexico’s east coast. The firm is now awaiting a floating storage unit, which Guinta said could arrive in the next 10 days, before LNG production begins. The technology, which NFE has dubbed Fast LNG (FLNG), utilizes jack-up rigs to house smaller, modular liquefaction trains that management...
Texans Vote ‘Yes’ to Fund More Natural Gas-Fired Power Generation - Texans on Tuesday cast ballots on a slate of constitutional amendments, with Proposition 7, which supplies state funds to add natural gas-fired power plants, resoundingly approved. Proposition 7, a constitutional amendment to create the Texas Energy Fund, passed with about 65% of the popular vote. With its passage, the Public Utilities Commission of Texas (PUCT) would have authority to issue low interest loans to power plant operators seeking to add generation capacity. Loans could be up to $7.2 billion for a single facility within the Electric Reliability Council of Texas (ERCOT) grid territory, according to state Senate Bill (SB) 2627. The bill determined how state funds would be managed under the program. Power plant operators could also capture completion bonus grants for...
Kinder Morgan to buy $1.8bn Texas gas pipeline portfolio from NextEra Energy - Kinder Morgan is acquiring a Texas natural gas pipeline portfolio from NextEra Energy Partners for $1.82bn (€1.76bn).The energy infrastructure company said it has agreed to buy STX Midstream, a South Texas pipeline system that includes a set of integrated, large-diameter high-pressure natural gas pipelines that connect the Eagle Ford basin to key growing Mexico and Gulf Coast demand markets. The 462 miles of pipeline gas portfolio is primarily comprised of seven pipelines that provide natural gas to Mexico and power producers and municipalities in South Texas.The acquisition is expected to be initially funded with cash on hand and short-term borrowings, Kinder Morgan said.Sital Mody, president of natural gas pipelines at Kinder Morgan, said: “STX Midstream nicely complements our existing assets and will enable us to capture incremental opportunities serving LNG, power generation, LDC customers and exports to Mexico.”John Ketchum, chairman and CEO of NextEra Energy Partners said the agreement to sell the pipeline portfolio to Kinder Morgan is an “important next step in NextEra Energy Partners’ transition plans”.
Magnolia Steadily Growing Natural Gas, Oil Production in South Texas - Houston-based exploration and production outfit Magnolia Oil & Gas Corp. saw efficiency gains in the third quarter while also moderately boosting production from its Eagle Ford Shale and Austin Chalk assets in South Texas. Third quarter production grew 1% sequentially to 82,700 boe/d. The company operates two drilling rigs and one completion crew. One rig is drilling multi-well development pads in the Giddings field in the Austin Chalk with the second rig drilling a mix of wells in both the Karnes and Giddings areas, including some appraisal wells at Giddings.
EOG Holding Production Steady in 2024 as ‘Instrumental’ Dorado Natural Gas Pipeline Half Complete - Multi-basin exploration and production firm EOG Resources Inc. in the third quarter made steady progress toward completing a natural gas pipeline that would transport Eagle Ford Shale supply to Gulf Coast markets. EOG completed construction on a natural gas treatment facility, as well as the first phase of a 36-inch-diameter natural gas pipeline from the Dorado field. The pipeline connects the natural gas play situated in the Austin Chalk and Eagle Ford in South Texas to the Agua Dulce sales point near Corpus Christi, TX. The pipeline “will be instrumental in expanding our gas sales options for the 21 Tcf of net resource potential we’ve captured in Dorado,” Senior Vice President for Marketing Lance Terveen said during the company’s third quarter earnings conference...
Environmental Groups Look to Resume Fight Against Rio Grande LNG, Texas LNG Through DC Circuit - The fight to suspend authorization for the Rio Grande and Texas LNG export projects on the Gulf Coast is expected to continue in federal court after FERC’s decision late last month to deny requests for rehearings. The Federal Energy Regulatory Commission reapproved the two Texas liquefied natural gas projects and the Rio Bravo pipeline earlier in the year after the U.S. Court of Appeals for the District of Columbia Circuit ordered the Commission to review its authorizations for the South Texas projects. Late last month, Commissioners voted three to one in favor of denying requests from the Sierra Club and several other environmental groups for rehearings on the projects [Docket Nos. CP16-454-006; CP16-455-003; CP20-481-001].
U.S. Oil, Natural Gas Employers Add More Jobs in October, Maintain Steady Hiring Pace - - Employment in the U.S. oilfield services (OFS) and equipment sector rose by an estimated 1,736 jobs to 652,874 in October, according to an Energy Workforce & Technology Council analysis of federal data. During the past month, job availability across the sector increased by 0.3%. The market has added jobs for eight out of 11 months as companies across the oil and natural gas spectrum look to expand workforces amid enduring global demand for fossil fuels. Overall, hiring in the energy sector has been steady since 2021, when the job market recovered from the slowdown imposed by the pandemic, according to data from the Bureau of Labor Statistics (BLS).
153,000 pound fracking equipment being removed from ditch north of Pierre — Moving a piece of equipment that weighs more than 11 African bush elephants is more than a daunting task. Last week, a rather large piece of Shell Oil’s fracking equipment, 153,000 pounds to be exact, was being transported en route to Canada. The right wheels of the truck’s trailer went off the right edge of the road about 20 miles north of Pierre on Highway 1804. The trailer and equipment broke away from the truck and rolled into the ditch. It has been lying there ever since. A-G-E Corporation of Fort Pierre was called to use their crane service on the recovery project. A road had to be built up into the ditch to provide a stable surface for the crane. The crane itself weighs 300,000 pounds and extends 224 feet. The equipment will be recovered and onto a trailer later Thursday. There was significant damage to the equipment load. No injuries were reported.
Chevron agrees to pay county $1.25M for cleanup of Talbert Channel oil leak - Chevron will pay Orange County $1.25 million for removing gallons of oil that leaked from a ruptured pipeline into the Talbert Channel in Huntington Beach last year, according to a settlement agreement reached Tuesday. A contractor crew working for the county’s Department of Public Works was enhancing the channel’s flood control capacity on Oct. 6, 2022, when a worker drove a segment of sheet piling into an abandoned pipeline near Indianapolis Avenue. Oil soon after began bubbling up into the waters of the channel, prompting immediate containment efforts. A unified command response comprising county staff, Chevron representatives and state and local agencies worked to prevent impacts to the Talbert Marsh downstream. Approximately 60 gallons of pollutants were ultimately recovered from the Talbert Channel, according to the agreement. Although the collaboration — coming one year after a ruptured underwater pipeline spilled 25,000 gallons of oil into the waters off Huntington Beach — was swift and effective, a dispute later arose in which Orange County and Chevron each alleged the leakage was the result of negligence on behalf of the other party. County officials claimed the oil company, which has owned the pipeline since the 1940s, failed to properly purge its contents when it was abandoned in the ’60s and was unable to provide record of its existence after the leakage occurred.
Vitus Energy says 203 gallons of diesel fuel leaked into Kuskokwim River in Steamboat Slough spill -- Vitus Energy, the company that owns a tugboat, the Frances Snow, now known to have leaked diesel fuel into the Kuskokwim River, told state authorities that the the boat spilled 203 gallons into the water. A large sheen was first observed on Oct. 30 in Steamboat Slough, roughly 3 miles upriver from Bethel. That same day, a strong fuel smell was reported at the Bethel seawall and as far downriver as Napaskiak, approximately 7 miles away. It wasn’t until the following day that Vitus was able to respond with a tugboat to dewater the vessel, deploy absorbent booms, and prepare the Frances Snow for haul-out at the Port of Bethel. On Nov. 2, the vessel was pulled out of the water and the company measured the fuel tanks. Vitus estimates that 250 to 300 gallons of diesel fuel were on board at the time the Frances Snow became partially submerged in Steamboat Slough. According to Vitus, the vessel sank due to a 1.5-inch crack in the hull. It is not clear when the crack developed, but it has now been patched. "The boat has been removed, the oil sheens are no longer visible on the water or the shore. The smell of fuel at the seawall is no longer evident," Bernie Nowicki, the Western Region on-scene coordinator for the Alaska Department of Environmental Conservation, said. "I did inquire with Vitus Energy about downriver, and I was told through them that they did not notice any sheen downriver below Bethel as of [Nov. 1]," Nowicki said. According to Nowicki, Vitus, as the responsible party, will be handling the cleanup effort itself. He doesn’t foresee state or federal agencies stepping in to manage the response now. At a reported 203 gallons, the spill fails to even meet the threshold of 500 to 5,000 gallons the National Oceanic and Atmospheric Administration (NOAA) refers to as a “small” diesel spill. According to a NOAA factsheet, these types of fuel spills tend to naturally evaporate or disperse within a few days, leaving little if any fuel on the surface for responders to recover. The factsheet also notes that a significant amount of fuel can be trapped in sediments when spills occur very close to the shore, as was the case with the Frances Snow in Steamboat Slough. Diesel fuel is one of the most acutely toxic types of oil, and high mortality of plants and animals can occur when large amounts of fuel soak into wetland areas, according to NOAA.
Alaska judge upholds Biden’s approval of Willow oil-drilling project - (AP) — A federal judge on Thursday upheld the Biden administration’s approval of the massive Willow oil-drilling project on Alaska’s remote North Slope, a decision that environmental groups swiftly vowed to fight. U.S. District Court Judge Sharon Gleason rejected requests by a grassroots Iñupiat group and environmentalists to vacate the project approval, and she dismissed their claims against Willow, which is in the federally designated National Petroleum Reserve-Alaska. The administration’s approval of Willow in March drew the ire of environmentalists who accused the president of backpedaling on his pledge to combat climate change. The company behind the project, ConocoPhillips Alaska, has the right to develop its leases in the reserve “subject to reasonable restrictions and mitigation measures imposed by the federal government,” Gleason wrote. She added that the alternatives analyzed by the U.S. Bureau of Land Management as part of its review were consistent with the policy objectives for the petroleum reserve and the stated purpose and need of the Willow project. The groups that sued over the project raised concerns about planet-warming greenhouse gas emissions from Willow and argued that federal agencies failed to consider how increased emissions from the project could affect ice-reliant species such as the polar bear, Arctic ringed seals and bearded seals, which already are experiencing disruptions due to climate change. Gleason said an agency environmental review “appropriately analyzed the indirect and cumulative” greenhouse gas emissions impacts of the project. Erik Grafe, an attorney with Earthjustice, which represents several environmental groups in one of the cases, called the ruling disappointing and said an appeal was planned. Bridget Psarianos, an attorney with Trustees for Alaska, which represents Sovereign Iñupiat for a Living Arctic and environmental groups in the other lawsuit, called Gleason’s decision “bad news not just for our clients but for anyone who cares about the climate and future generations.”“There is too much at stake to gloss over the harm this project will do,” Psarianos said. “We will remain standfast in working with our clients to protect the Arctic from this devastating project today and in the weeks, months, and years ahead.” The project has widespread political support in Alaska. But climate activists said allowing it to go forward marked a major breach of President Joe Biden’s campaign promise to stop new oil drilling on federal lands. The administration’s action alienated and outraged some supporters, particularly young activists who launched a TikTok campaign to oppose the project ahead of its approval.
U.S. Crude Oil Exports Are Soaring To Record Highs U.S. crude oil exports continue to reshape the global market as America is pumping record volumes of oil and shipping record volumes of it overseas while the OPEC+ group withholds supply to "stabilize the market."These days, as many as 48 tankers are headed to the U.S. and expected to load crude in the next three months, the highest number of vessels in at least six years, according to tanker-tracking data compiled by Bloomberg. Some of those tankers are en route to the U.S. Gulf Coast even with no cargo booked yet, London-based shipbroker EA Gibson told Bloomberg. The large fleet of supertankers bound for the United States highlights the increasingly growing role American crude plays on the global oil market. In less than a decade since the export ban was lifted in late 2015, U.S. oil has become so significant for the global market that WTI Midland was added in June this year to the Brent basket of crude oil grades that is used as a benchmark for pricing the world's most traded oil contract.The reason WTI Midland is becoming more and more important in the Dated Brent assessment is, again, the volume of U.S. crude being shipped abroad, which has averaged around 4 million barrels per day (bpd) since the start of the year.U.S. crude oil exports hit record highs in the first half of 2023, averaging 3.99 million bpd. That's up by nearly 20% compared to the first half of 2022, according to data from the Energy Information Administration. The largest share of U.S. crude oil that is exported made its way to Europe, at 1.75 million barrels per day—mostly to the Netherlands and the United Kingdom. Asia was the second-largest destination, receiving 1.68 million bpd, with the largest portion heading to China and South Korea. Despite the record exports, the United States remained a net crude oil importer in the first half of the year, according to EIA data, even with increasing domestic production, importing 8.836 million bpd in June—nearly half of which came from Canada. Refineries in the United States are geared to process heavy, sour crude oil, while most of the oil produced in the United States is light, sweet crude. With record-high U.S. crude production, more light sweet crude makes its way overseas. "US slate-optimization is forcing further volumes of US light sweets to the waterborne market," Richard Price, an oil markets analyst at Energy Aspects, told Bloomberg. U.S. exports from the U.S. Gulf Coast are set to rise to 4.1 million bpd in December, 100,000 bpd higher compared to the same month last year, Price said. Rising U.S. production is pushing American exports to record highs at a time when Saudi Arabia, Russia, and other members of the OPEC+ pact are withholding some oil supply as they seek to rebalance the market and prop up prices. Despite the loss of active drilling rigs, U.S. shale firms are producing more oil and have even exceeded some skeptical projections from earlier this year. U.S. exploration and production companies are drilling longer laterals and deploying rigs to the most promising areas to get more bang for their buck.
USA Energy Dept Looking to Buy More Oil for Petroleum Reserve -- A statement posted on the U.S. Office of Cybersecurity, Energy Security, and Emergency Response’s (CESER) website late Monday noted that the U.S. Department of Energy’s (DOE) Office of Petroleum Reserve announced a supplemental solicitation for up to three million barrels of oil for delivery in January 2024. Bids for the solicitation are due no later than 10am Central Time on November 20 and the delivery will be received by the Big Hill storage facility, the statement highlighted, adding that the DOE will continue to release monthly solicitations for any available capacity through at least May 2024. “This is the second solicitation for January 2024 delivery as DOE aims to purchase oil when it can purchase at a good deal for taxpayers; a price of $79 dollars per barrel or below, far less than the average of about $95 per barrel DOE received for 2022 emergency SPR sales,” the statement said. “[The] announcement advances the President’s commitment to safeguard and replenish this critical energy security asset, following his historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine and help keep the domestic market well supplied, which ultimately helps bring down prices for American consumers and businesses,” it added. “Analysis from the Department of the Treasury indicates that SPR releases last year, along with coordinated releases from international partners, reduced gasoline prices by as much as 40 cents per gallon,” the statement on the CESER site continued. The statement noted that the Administration’s ongoing three-part replenishment strategy to get the best deal for taxpayers while increasing SPR stocks includes:
- Direct purchases with revenues from emergency sales
- Exchange returns that include a premium to volume delivered
- Securing legislative solutions that avoid unnecessary sales unrelated to supply disruptions.
The statement highlighted that the DOE has already secured the cancellation of 140 million barrels in congressionally mandated sales scheduled for Fiscal Years 2024 through 2027.
Nikki Haley Attacks Ron DeSantis for Lying About Anti-Fracking PositionFormer South Carolina Gov. Nikki Haley’s (R) campaign showcased an ad ahead of the third Republican primary debate claiming Florida Gov. Ron DeSantis (R) “lied” about his position on fracking. The ad highlighted a key exchange between Haley and DeSantis from the second GOP primary debate. “What you don’t need is a president who is against energy independence. Ron DeSantis is against fracking. He’s against drilling. He’s been against… You did it,” Haley said at the time. “He always talks about what happens on day one. You better watch out because what happens on day two is when you’re in trouble; day two in Florida, you banned fracking, you banned offshore drilling,” she continued. “That is not true,” DeSantis said, denying the claims by saying Florida voters chose a constitutional amendment that banned offshore drilling. “You banned it before they voted,” Haley responded. DeSantis insisted Haley was “totally wrong.” “On shore, we do it in Florida. We don’t have as much as maybe West Texas, but we do it. But that was a constitution amendment, so that’s just wrong, and let’s just get real here,” he said. However, it is true that DeSantis openly supported banning fracking when he was running for governor. ABC News noted that “after DeSantis’ election victory, the website for the then-governor-elect included a pledge to ‘work to ban fracking in the state of Florida,’ according to a Nov. 25, 2018, screenshot of the website.” Haley’s ad highlights some DeSantis quotes, showing him openly opposing offshore drilling — including his opposition to former President Donald Trump. Some of the DeSantis quotes displayed in the ad include:
- “I’m opposed to offshore drilling here in Florida.”
- “When [the] president wanted to do offshore drilling, I opposed him on it.”
- “If you did offshore drilling, you may create some jobs in that industry, but I think you’d probably cost more jobs overall.”
- “We’re gonna be seeking $2.5 billion for water resource that represents a billion dollars more than the previous four years.”
- “We don’t need to do offshore drilling here.”
- “We have reached a deal to purchase 20,000 acres of land that is currently slated for oil production, so we’ll permanently save the land from oil production.”
Enbridge Posts Stronger Cash Flow, Announces More Acquisitions | Rigzone - Enbridge Inc. has seen earnings fall for the third quarter of 2023 by both quarter-on-quarter and year-on-year comparisons, but the energy producer and pipeline operator is intensifying capital deployment as cash generation during the first nine months more than doubled that of the same period last year. The Canadian company logged a post-tax profit of CAD 623 million ($453.89 million) for the July–September quarter. That was down from CAD 2 billion ($1.46 billion) for the prior three-month period and CAD 1.38 billion ($1.01 billion) for the third quarter of 2022, according to Enbridge’s quarterly filing with the USA Securities and Exchange Commission. Earnings before interest, income taxes and depreciation and amortization (EBITDA) rose year-over-year but declined quarter-on-quarter to CAD 2.25 billion ($1.64 billion). It attributed the year-on-year increase in EBITDA mainly to a lower loss of CAD 38 million ($27.68 million) this year “in the mark-to-market value of derivative financial instruments used to manage foreign exchange and commodity price risks”, the regulatory disclosure said. Losses from derivatives trading during the third quarter of 2022 stood at CAD 290 million ($211.28 million). Positive impacts also came from increased ownership in the Cactus II Pipeline and the Gray Oak Pipeline serving the USA Gulf Coast and Mid-continent, as well as higher exchange rates. These were offset by lower tolls on the Canada-USA Mainline oil pipeline that have taken effect since July and lesser volumes on the Illinois–Oklahoma Flanagan South Pipeline. In a press release, Enbridge said the Mainline system carried 2.998 million barrels per day (MMbpd) during the third quarter of 2023. The nearly 8,600-mile pipeline is North America’s biggest petroleum pipeline with a declared capacity of about 2.85 MMbpd.
Natural Gas Pipelines Serving Montney Shale Prepare to Expand in Advance of LNG Exports - Increased development in the natural gas-rich Montney Shale continues to foster northern British Columbia (BC) pipeline projects as production increases, including preparations for LNG exports to begin from the Pacific coast by 2025. After recommending final approval in October of NEBC Connector’s NorthRiver Midstream to transport natural gas liquids, the Canada Energy Regulator (CER) has been told to expect Enbridge Inc. to plan an expansion of its Westcoast gas network. According to an Enbridge filing to CER, the Aspen Point Program is planned in response to binding contracts for 535 MMcf/d of new Westcoast capacity. The contracts average more than 26 years and call for deliveries beginning in November 2025.
Venezuela could displace Canadian crude re-exports --Two key buyers of Canadian heavy crude exports from the US Gulf coast are poised to increase receipts of Venezuelan crude following a temporary lifting of sanctions, which could displace Canadian supplies.PetroChina's 400,000 b/d Jieyang refinery in south China's Guangdong province accounted for 23.1pc of Cold Lake, Access Western Blend, and Christina Dilbit exports from the US Gulf coast in January-August this year, according to analytics firm Vortexa. Repsol's 220,000 b/d Cartagena refinery in Spain accounted for 17.5pc.Both refineries have been in discussions to increase loadings of similar-quality heavy Venezuelan crude after the US temporarily lifted some sanctions targeting the oil and gas industry for six months ending on 18 April.PetroChina is likely to buy around 260,000-300,000 b/d of crude from Venezuela's state-owned PdV, according to traders, which could displace nearly all of the 319,000 b/d of Canadian heavy crude purchases that the Jieyang refinery averaged in the first eight months of this year.In the past, Petrochina preferred to run Venezuelan Merey at Jieyang, but turned to Canadian heavies following US sanctions on Venezuela starting in 2019.In Spain, Repsol is also working with PdV to increase oil and gas output at its joint ventures in Venezuela.The easing of US sanctions is expected to "increase the availability of heavy crude for our refineries," Repsol's chief executive Josu Jon Imaz said on 26 October, though it remains unclear how much such supplies could increase. The Cartagena refinery averaged 241,000 b/d in heavy Canadian crude imports between January and August.Repsol resumed heavy Venezuelan imports last year under an oil-for-debt deal between Respol and state-owned PdV. This year, most of Repsol's 22,000 b/d of Venezuelan imports to Spain have gone to the Cartagena refinery.Cold Lake Houston is averaging an $8.30/bl discount to the Nymex benchmark for December trade since the 26 October start of trading, compared with an average discount of about $5.80/bl in November trade.
Peru LNG terminal shipped four cargoes in October - Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in October, one shipment less compared to September. According to data by state-owned Perupetro, during September the LNG plant sent all off the shipments to the UK. The shipments loaded onboard the LNG carriers Methane Patricia Camila, Huelva Knutsen, Paris Knutsen, and Maran Gas Amphipolis equal about 252,309 tonnes, the data shows. These four LNG cargoes loaded at the Peru LNG plant in October compare to five cargoes in October last year, while Peru LNG shipped five cargoes (370,518 tonnes) in September this year. Peru LNG shipped 45 LNG cargoes during January-October, compared to 42 shipments during the same period last year, the Perupetro data shows. The 4.45 mtpa LNG plant has sent more than 742 LNG cargoes since 2010, according to the data. However, some of the same shipments in the list are included two or three times. US-based Hunt Oil holds a 50 percent operating stake in the Pampa Melchorita LNG plant, while SK and Marubeni have 20 percent and 10 percent, respectively. LNG giant Shell also holds a 20 percent stake and takes all the volumes produced at the facility.
Shell Sues Greenpeace For Boarding Oil Production Vessel - Shell is suing Greenpeace for millions of dollars in damages after the environmentalists boarded early this year a vessel in the Atlantic en route to a future oilfield in the UK North Sea. Shell has filed the lawsuit in London's High Court, demanding $2.1 million in damages, including legal costs, additional expenses for security, and costs incurred by shipping delays, a document seen byReuters showed on Thursday. Greenpeace claims Shell has hit the climate campaign group with an “intimidation lawsuit,” threatening an $8.6-million damages claim and a protest ban to silence climate demands.“Oil giant Shell has launched an intimidation lawsuit against Greenpeace UK and Greenpeace International – demanding Greenpeace stop protests at its infrastructure at sea or in port anywhere in the world, forever, or face an $8.6m damages claim and an injunction,” the campaign group said on Thursday.The lawsuit relates to Greenpeace’s stunt early this year when four Greenpeace International activists boardedthe White Marlin vessel at sea north of the Canary Islands and en route to the Penguins oil and gas field in the UK North Sea, where Shell plans to drill eight wells. The activists carried a banner bearing the message: “Stop Drilling. Start Paying”. “Shell and the wider fossil fuel industry are bringing the climate crisis into our homes, our families, our landscapes and oceans,” Yeb Saño, executive director of Greenpeace Southeast Asia, said at the time. “So we will take them on at sea, at shareholder meetings, in the courtroom, online, and at their headquarters. We won’t stop until we get climate justice. We will make polluters pay.” Shell, while acknowledging the fundamental right to protest, told Reuters in an email that boarding a moving vessel at sea was “unlawful and extremely dangerous.” The UK-based supermajor confirmed to Reuters it had initiated legal proceedings against Greenpeace, but declined to comment on the amount of the damages claim.
Flex LNG says Q3 revenue climbs, expects further increase in Q4 - Norwegian shipping firm Flex LNG, the owner of 13 liquefied natural gas carriers, reported higher revenue and lower net income in the third quarter compared to the same period last year. The firm expects a further increase in revenue in the fourth quarter.The shipping firm controlled by billionaire John Fredriksen said on Wednesday that vessel operating revenues were $94.6 million for the July-September period. This marks a rise from $91.3 million in the third quarter last year.Revenues also rose compared to $86.7 million in the prior quarter.However, the company’s third-quarter net income of $45.1 million dropped compared to $46.6 million in the same quarter last year but it rose compared to $39 million in the prior quarter.Average time charter equivalent (TCE) rate was $79,207 per day in the third quarter of 2023, compared to $77,218 per day for the second quarter and $75,941 per day in the third quarter last year.Flex LNG declared a dividend for the third quarter of $0.875 per share, consisting of a quarterly dividend of $0.75 per share and a special dividend of $0.125 per share.Flex LNG has 12 LNG carriers on fixed hire time charters, including to US LNG exporter Cheniere, and one ship, Flex Artemis, on a variable time charter.In March, Flex LNG completed its refinancing process, boosting the company’s cash position by $382.4 million.Flex LNG’s backlog for its time charters is for an aggregate of 51 years, which may increase to 77 years with declaration of charterer’s options, it said.“Higher vessel availability coupled with a stronger spot market, which positively impacted our single ship on a spot-market linked, variable rate time charter, resulted in quarterly revenues increasing by $7.9 million from $86.7 million in the second quarter to $94.6m in the third quarter,” he said.
France's Le Havre FSRU receives first LNG carrier - France’s first floating storage and regasification unit (FSRU) in Le Havre, operated by TotalEnergies, has on Monday received its first liquefied natural gas (LNG) carrier. The 2022-built 174,000-cbm, Minerva Amorgos, owned by Minerva and chartered by Equinor, arrived offshore Le Havre during the weekend, according to its AIS data provided by VesselsValue. Miverva Amorgos is carrying a cargo from Equinor’s Hammerfest LNG export plant in Norway, where TotalEnergies has a stake. The LNG carrier docked at the 2010-built 145,130-cbm FSRU, Cape Ann, on Monday, the data shows. TotalEnergies also confirmed the arrival of Minerva Amorgos at the FSRU. The French energy giant charters this 283 meters long FSRU from Hoegh LNG, which has a 50 percent stake in Cape Ann and Japan’s MOL, which owns a 48.5 percent stake. Tokyo LNG Tanker holds a 1.5 percent share in the unit. TotalEnergies announced on October 26 that the FSRU had started delivering natural gas supplies to the grid. A spokesperson for TotalEnergies told LNG Prime at the time that the terminal was ready to start commercial operations.
Peninsula wraps up its first LNG bunkering op in Gibraltar - Marine fuel supplier Peninsula has started delivering liquefied natural gas as fuel to vessels in Gibraltar with the 12,500-cbm Levante LNG. The first delivery took place in Gibraltar on November 4 and Levante LNG supplied Royal Caribbean’s cruise vessel Silver Nova, according to a statement by Peninsula. Germany’s Meyer Werft handed over the first LNG-powered Nova class cruise vessel to Silversea Cruises, the ultra-luxury brand of Royal Caribbean Group, in July, and the vessel took part in the first cruise ship LNG bunkering in Gibraltar in September. Silver Nova has a travel capacity of 728 guests and a gross tonnage of 54,700 tons. As per Levante LNG, this newbuild vessel arrived at its Mediterranean home at the end of September, while Penisula also won an LNG bunkering operator license by the government of Gibraltar and the Gibraltar Port Authority. Following the completion of the first operation, the vessel is now fully operational in the Strait of Gibraltar and Western Mediterranean ports, Peninsula said.
Egypt Can’t Ramp Up LNG Supply To Europe Due To The Hamas-Israel War - Europe shouldn’t count on Egypt for more LNG in the short to medium term amid tight natural gas balances in the Eastern Mediterranean after the Hamas-Israel war erupted, the Oxford Institute for Energy Studies (OIES) said in a new report.Following the Hamas attack on Israel in early October, Chevron, the operator of the Tamar gas field offshore southern Israel, shut down production at the field per instructions from the Israeli energy ministry. Subsequently, export flows of gas from southern Israel to Egypt through the offshore EMG pipeline were suspended, although some of those exports were re-routed through Jordan. “Israel’s gas exports to Egypt are part of Egypt’s supply mix and therefore support Egyptian LNG exports,” Julian Bowden, Senior Visiting Research Fellow, OIES, wrote in the report.In the aftermath of the Hamas attack on October 7, Egypt was evaluating whether the stoppage of gas production at the Tamar field would scupper its plans to resume LNG exports to Europe as planned.Egypt, which aims to become a regional gas hub, has been exporting LNG to Europe from its terminals on the Mediterranean with gas from domestic production and from fields offshore Israel.However, Egypt did not export any LNG in June, August, and September, due to high domestic power demand in the summer months.“Egyptian gas balances were already under pressure before the crisis erupted, due to falling gas production (mainly from problems at the Zohr field) and high summer demand,” Bowden noted.“With tight gas balances and reduced imports from Israel, the prospect of the EU receiving more LNG from Egypt in the short and medium term looks unachievable,” Bowden wrote. In addition, the Memorandum of Understanding which Egypt, Israel, and the EU signed in June 2022 committing to higher natural gas supply, “is now probably undeliverable,” the research fellow noted.
LNG Cargoes in Floating Storage Rise Again as Sellers Await Colder Weather - LNG cargoes in floating storage are stacking up to near-record levels once again ahead of the heating season as the spot market becomes a more crucial part of the early winter cycle.As natural gas marketers jockeyed for the highest price and ships congregated around congested import terminals last November, the volume of liquefied natural gas in floating storage hit what was then a record high of 0.75 million tons (Mt), according to data from Kpler. A cargo is typically considered floating storage if the vessel has been on the water 30 days or longer.That record was broken again the week of Oct. 29, when 0.80 Mt of LNG was recorded in floating storage around Europe and Asia. Since then, the amount of LNG in floating storage has held around 0.7 Mt and rose slightly to 0.74 Mt...
China boosts gas imports in October - China’s natural gas imports, including pipeline gas and LNG, rose in October compared to the same month last year, according to customs data. Natural gas imports during the last month reached about 8.79 million tonnes, rising 15.5 percent compared to 7.61 million tonnes in October 2022, the data from the General Administration of Customs shows. Imports dropped some 1.35 million tonnes compared to 10.14 million tonnes in the prior month. Moreover, the country’s gas imports rose by 8.8 percent year-on-year to 96.50 million tonnes in January-October. China paid about $51.1 billion for gas imports in this period, a drop of 7.3 percent compared to the last year. There is currently no official data for LNG imports in October. China’s LNG imports dropped in September after rising for seven months in a row, and the country imported 5.69 million tonnes in September, a drop of 2.8 percent year-on-year. The country imported 51.1 million tonnes of LNG during January-September, up by 10.1 percent compared to the same period last year However, Chinese LNG imports fell last year due to due to very high spot LNG prices and Covid lockdowns, which affected economic activity. LNG imports dropped compared to the January-September period in 2021 when China imported 58.48 million tonnes of LNG. China has overtaken Japan as the world’s largest LNG importer this year. During the January-September period, Japan imported some 48.9 million tonnes of LNG, down by about 2.2 million tonnes compared to China’s 51.1 million tonnes.
Top LNG importer China re-selling more cargoes, eyes trading gains (Reuters) - China, the world's top importer of liquefied natural gas (LNG), is increasingly re-selling some of the super-chilled fuel to other Asian buyers as it looks to profit from price swings. Armed with a growing portfolio of long-term supply deals recently struck with Qatar and U.S. exporters, as well as extensive terminal capacity, Chinese companies led by state giant PetroChina are more actively trading LNG, but still lag far behind global majors such as BP, Shell and TotalEnergies. Chinese customs data shows that China reloaded 617,000 metric tons of imported LNG during the first nine months of this year, compared with 576,000 tons in all of 2022, 26,000 tons in 2021 and 59,000 tons in 2020. China's LNG sales have increased along with rising Asian demand after the disruption in Russian exports to Europe from the Ukraine war sparked price volatility and tightened supplies globally. Asia spot prices soared to record highs of $70 per million British thermal units (mmBtu) last year. They have since eased to $17/mmBtu, encouraging demand from Asian buyers, but are still above single-digit levels seen before Russia's invasion of Ukraine and the COVID-19 pandemic. Top Chinese LNG trader PetroChina International (PCI) is spearheading the retrading, which is recorded by Chinese customs as exports from bonded storage tanks. South Korea has been the top buyer so far this year, taking 27% of China's reloads, followed by Thailand, Bangladesh, and Japan, as well as Kuwait, Chinese customs data showed. "We need to pull all levers when it comes to managing market swings," Zhang Yaoyu, PCI's global head of LNG, told Reuters. Re-selling LNG cargoes is one initiative among others - such as using financial derivatives products and developing infrastructure like regasification terminals and underground storage - to offset market volatility and improve overall supply security, he said. Still, the trading volume is a small fraction of PCI's supply portfolio, and fluctuates depending on market conditions, Zhang added. While Qatari contracts carry rigid destination clauses, most U.S. supplies and some purchases from global portfolio players are tradeable. China also receives some LNG from Australia and Indonesia with flexible destination clauses.
Gladstone LNG plants boost exports in October - Liquefied natural gas (LNG) exports from the Gladstone port in Australia’s Queensland increased in October compared to the same month last year, according to the monthly data by Gladstone Ports Corporation. Curtis Island is home to the Santos-operated GLNG plant, the ConocoPhillips-led APLNG terminal, and Shell’s QCLNG facility. These are the only LNG export facilities on Australia’s east coast. Last month, about 2,115 million tonnes of LNG or 32 cargoes left the three Gladstone terminals on Curtis Island. This compares to about 1,860 million tonnes of LNG or 29 cargoes in October 2022, the data shows. October LNG exports rose some 13.7 percent year-on-year and about 4.4 percent compared to the previous month when LNG exports reached some 2,025 million tonnes of LNG or 31 cargoes. Moreover, most of October LNG exports (1,369 million tonnes) landed in China, marking a rise of 24.9 percent compared to 1,096 million tonnes last year. Volumes to South Korea dropped to 239,985 tonnes from 277,141 tonnes last year, while volumes to Japan decreased to 190,354 tonnes last month from 307,071 tonnes last year. GPC also reported that 184,572 tonnes of LNG were sent to Malaysia, and 131,220 tonnes were sent to Singapore. Volumes to Singapore rose from 57,739 tonnes in September last year, while Malaysian volumes increased from 122,131 tonnes last year.
Queensland's Gas Exploration to Unlock Supply, Boost Economy - The International Energy Agency (IEA) has confirmed natural gas, carbon capture technology and all low-carbon hydrogen pathways will be needed if the world is to reach net zero by 2050. Australian Energy Producers Chief Executive Samantha McCulloch said the IEA's Net Zero Roadmap Update identified the importance of gas in providing affordable and reliable energy as we transform to net zero. The IEA analysis recognises that gas will play a long-term role in the global energy mix and that continued investment is required in existing gas assets and already approved projects. Total gas demand in 2050 under the net zero scenario is still many multiples of the volume of gas Australia produces today. "In Australia, new gas supply will provide a safety net for the energy system - avoiding blackouts and putting downward pressure on prices. The IEA highlights the importance of gas is amplified if renewables and other technologies are not able to be deployed at the scale and pace required under this ambitious global pathway," Ms McCulloch said. The IEA stated "some new sources of supply would need to be approved for development over the next few years" if we see delayed action elsewhere. Ms McCulloch said the IEA had always emphasised that every country had to chart its own path and the need for new gas supply in Australia and the region had only escalated since the original 2021 Net Zero report. "Australia's own energy market authorities, the Australian Energy Market Operator and the Australian Competition & Consumer Commission, are repeatedly highlighting future shortfalls and the need for new gas supply," she said. Ms McCulloch called on governments to heed IEA warnings that carbon capture utilisation and storage (CCUS) and all low-carbon hydrogen pathways need more policy support to boost deployment. "The momentum for CCUS is growing in Australia and around the world but the IEA says rapid progress is needed by 2030 and hinges on cutting project lead times," she said. "Global CCUS deployment needs to increase by over 130 times by 2050, and low-carbon hydrogen by over 400 times, with action urgently needed from policy makers for both technologies."
Chevron working to resume full Gorgon LNG production after electrical incident - Chevron’s unit in Australia is working to return to full production from its Gorgon LNG plant in Western Australia following an electrical incident affecting one of the plant’s three trains. The Gorgon LNG plant on Barrow Island has three trains and a production capacity of some 15.6 mtpa.“The incident occurred about 1.30am AWST on Tuesday, October 31, in a substation which provides power supply,” a Chevron Australia spokesperson told LNG Prime on Thursday.“Personnel were not in the substation at the time of the incident, and no one was harmed,” the spokesperson said.According to Chevron’s spokesperson, the production train is currently producing at “about 80 percent capacity.”“Domestic gas and the remaining two LNG production trains at Gorgon are unaffected and are producing at full rates,” the spokesperson said.Chevron and its workers at the Gorgon and Wheatstone LNG terminals recentlyagreed on new labor agreements following lengthy negotiations between Chevron and unions representing the workers. In September, Chevron also resumed full production at its 8.9 mtpa Wheatstone LNG terminal near Onslow after a fault reduced about 25 percent of the plant’s production.
Russia Says Baltic Telecoms Cable Was Damaged Just Before Nearby Gas Pipeline --A Russian fiber optic cable under the Baltic Sea was damaged last month only 28 km (17 miles) from where a gas pipeline linking Finland and Estonia was ruptured a couple of hours later.The details emerged in a statement on Tuesday from Russian state company Rostelecom, which publicly acknowledged the damage to its cable for the first time.Rostelecom called it an “accident” but did not specify the cause. However, it noted the proximity in time and distance to the Balticconnector gas pipeline, which Finnish investigators suspect was damaged by a Chinese container ship dragging its anchor along the seabed. The Russian company said the damage to its cable was recorded at 2330 Moscow time (2030 GMT) on Oct. 7. “The site of the cable damage is located 28 km from the section of the Baltic Connector gas pipeline damaged on October 8,” it said. Two other Baltic telecoms cables, connecting Estonia to Finland and Sweden, were also damaged on Oct. 7 and 8, local time. Estonia has said those incidents were “related” to the Balticconnector outage. Security of sub-sea cables and pipelines in the Baltic has become a top concern against the background of the Ukraine war, especially since Russia’s Nord Stream gas pipelines were blown up in an act of sabotage last year. Investigators have yet to establish who was responsible. Data from shipping intelligence firm MarineTraffic, reviewed by Reuters, showed that the Chinese container ship NewNew Polar Bear passed over the Swedish-Estonian telecoms cable at 1513 GMT on Oct. 7, then over the Russian cable at around 2020 GMT, the Balticconnector at 2220 GMT and the Finland-Estonia telecoms line at 2349 GMT. Finnish police leading the pipeline investigation have named the Hong Kong-flagged vessel as the prime suspect in damaging the Balticconnector. A large anchor was found nearby, and the investigators believe the pipe was broken as a ship dragged it across the sea bed.
Russian oil shaves India's import costs by about USD 2.7 bln --India saved roughly USD 2.7 billion by importing discounted Russian oil in the first nine months of this year, according to calculations based on government data, helping it support economic growth and easing pressure on its trade deficit. Crude oil accounts for about a third of India's overall imports by value. The world's third-biggest oil importer and consumer replaced Europe as the largest buyer of seaborne Russian crude this year after the West imposed sanctions on Moscow over its invasion of Ukraine last year. Access to cheap Russian oil enabled India to cut imports from the Middle East, where prices strengthened following Saudi Arabia's voluntary additional supply cuts since July. India imported 69.06 million metric tons of Russian oil, equivalent to 1.85 million barrels per day (bpd), between January and September, commerce ministry data showed, including Russian oil imported from South Korea, Greece and Spain through transshipments. The average price for Russian oil delivered to Indian refiners was USD 525.60 per ton during that period, including shipping and insurance costs, Reuters calculations based on ministry data showed. By comparison, the average landed cost of Iraqi oil, which is of similar quality to the medium-sour Russian Urals crude that accounts for the bulk of India's purchases from Russia, was USD 564.46 per ton during the same period.
US working with allies over sanctions on Russian Arctic LNG project -State Dept (Reuters) - The U.S. is working closely with partner countries over sanctions on a Russian liquefied natural gas project in the Arctic as a January deadline looms on a wind-down of transactions with the plant, a State Department spokesperson said on Wednesday. President Joe Biden's administration imposed sanctions last week on the Arctic LNG-2 project in Russia as part of wide-ranging measures to punish Moscow for the war in Ukraine. The Office of Foreign Assets Control, part of the Treasury Department, also issued a general license that authorizes the wind down of transactions involving Arctic LNG-2, through Jan. 31, 2024. Novatek, Russia's largest LNG producer, has a 60% stake, and plans to start production by the end of this year. Arctic LNG-2 would be Russia's third large-scale LNG project and is designed to help Russia achieve a goal of gaining 20% of the global LNG market by 2035, up from around 8% currently. The sanctions are aimed at degrading Russia's future energy production and export capabilities, while maintaining the flow of energy to world markets, the State Department spokesperson said. "We do not have a strategic interest in reducing the global supply of energy, which would raise energy prices around the world and pad Putin's profits," said the State Department spokesperson, referring to Russian President Vladimir Putin. The U.S. was the world's largest LNG exporter in the first six months of this year, according to the Energy Information Administration. "Through all of our sanctions designations we maintain close coordination with our partners on sanctions issues, and we will continue to do so," the spokesperson added. In 2021 the Treasury Department issued a sanctions review that said when possible the U.S. would coordinate with allies and engage with industry and other stakeholders while crafting sanctions. The sanctions and wind down have drawn the attention of France's TotalEnergies and Japan Arctic LNG - a consortium of Mitsui & Co and JOGMEC. They each hold a 10% stake in the project and are wary about the impact of the measures. It was unclear whether the French and Japanese companies need additional licenses or waivers from the U.S. government to stay with the project.
Oil Companies Want Kurdistan Payment Issue Settled Before Resuming Exports -- The international oil companies operating in Iraq’s semi-autonomous region of Kurdistan will not be producing oil for exports until they have clarity about overdue and future payments and sales terms, Norwegian firm DNO, one of the six members of the Association of the Petroleum Industry of Kurdistan (APIKUR), said on Thursday. Currently, Iraqi federal government officials and the Kurdistan region’s petroleum association are discussing the resumption of crude flows through the Iraq-Turkey pipeline to the Turkish Mediterranean port of Ceyhan. Kurdistan’s crude oil exports were halted on March 25 by the federal government of Iraq. The halt came after the International Chamber of Commerce ruled in favor of Iraq against Turkey in a dispute over crude flows from Kurdistan. Iraq, OPEC’s second-largest producer after Saudi Arabia, is currently exporting oil only via its southern oil export terminals. Around 450,000 bpd of exports from the northern fields and from Kurdistan continue to be shut in due to the dispute. In a statement on Thursday, Norway’s DNO said: “According to a recent statement by the Prime Minister of Iraq, Baghdad and Ankara are prepared to recommence flows from Kurdistan as soon as certain unspecified agreements between the international oil companies and Iraq and Erbil are reached.” “In response, the Association of the Petroleum Industry of Kurdistan (APIKUR), of which DNO is one of six members, has stated that the member companies will not be in a position to produce oil for pipeline exports until it is clear how they will be paid for their contractual entitlements of oil already sold and delivered for export and for future sales of such oil for export.” The members of the association are owed nearly $1 billion in overdue and unpaid arrears, according to DNO.
Qatar signs 27-year gas supply deal with China’s Sinopec Qatar’s state-owned energy firm has entered into a 27-year sales and purchase agreement with China Petrochemical Corp., also known as Sinopec, to supply 3 million tons of liquefied natural gas annually. According to a press statement, QatarEnergy and Sinopec will collaborate on the second phase of the Gulf state’s North Field South expansion project. As part of the partnership agreement, QatarEnergy will transfer a 5 percent stake to Sinopec in a joint venture company that owns the equivalent of 6 million tons per annum of LNG production capacity in the NFS project, the press statement added. This marks the third long-term LNG supply deal between Qatari and Chinese firms. The two companies previously signed a 10-year LNG purchase and sales agreement in 2021 and a 27-year contract in 2022. Qatar’s Minister of State for Energy Affairs Sherida Al-Kaabi, said: “Qatar has firmly supported the role of natural gas as a central component of any energy mix on the road to a realistic energy transition. We are providing the world with the cleanest hydrocarbon source of energy, which enjoys both economic and environmental qualities to support sustainable growth and a better future.” He added: “In fact, by 2029, about 40 percent of all new LNG supplies will be provided by Qatar. Therefore, we believe a stronger relationship between the world’s largest LNG producer and the world’s largest energy consumer is a natural development of the realities shaping the energy map today.” In October, QatarEnergy also signed a 27-year LNG supply agreement with Eni to deliver 1 million tons of LNG annually to Italy. In the same month, the state-owned energy firm inked another deal with French firm TotalEnergies to supply up to 3.5 million tons per annum of LNG to France for 27 years. In a press statement, QatarEnergy revealed that LNG volumes to France will be sourced through their two joint ventures with TotalEnergies, which hold interests in the Gulf nation’s northeastern oil fields. In July, QatarEnergy reported a net profit of 154.6 billion Qatari riyals ($42.47 billion) in 2022, a 58 percent rise compared to 2021, driven by increased demand for LNG following Russia’s invasion of Ukraine.
Qatar Raises Offtake LNG Supply for Sinopec to Seven MMtpa - QatarEnergy has signed another offtake deal with China Petrochemical Corp. (Sinopec) for three million metric tons per annum (MMtpa) of liquefied natural gas (LNG) from the two North Field expansion projects. The agreement inked in Shanghai increases China’s purchase commitment to the projects to seven MMtpa following a four MMtpa offtake pact signed November 21, 2022 between the state-owned companies for the North Field East expansion. Both agreements last 27 years. Simultaneous with the signing of the second offtake agreement, this time for the North Field South, QatarEnergy and Sinopec also penned an agreement transferring a five percent stake in the South project to the Chinese company. The farm-out is from a joint venture that owns the equivalent of six MMtpa of LNG production from the South project, QatarEnergy said in a press release announcing the offtake and partnership agreements. Sinopec had in April 12, 2023 already signed a definitive agreement to acquire a five percent interest in a joint venture that owns an equivalent of eight MMtpa in the East project, as announced by QatarEnergy at the time. China was the first to commit to buy from the expansion projects, according to QatarEnergy, which claimed the 27-year term is the longest in the history of the LNG industry. “These historic milestones are a testament to the excellent bilateral relations between the People’s Republic of China and the State of Qatar as well as between Sinopec and QatarEnergy”, the Qatari LNG giant said in the news release for the latest agreements. QatarEnergy has since won purchase commitments from Europe for the NorthField expansion projects as the region turned away from Russian energy following its invasion of Ukraine last year. The European Union targets to phase out Russian fossil fuels by 2027, according to a declaration by the 27-country bloc March 11, 2022. On October 23, 2023 QatarEnergy announced a 27-year agreement with Eni SPA to supply up to one MMtpa of LNG from the East project to Italy. Eni is a partner in the East project with a 3.125 percent share. On October 18, 2023 QatarEnergy announced two agreements with Shell for up to 3.5 MMtpa for 27 years. The supply is meant for the Netherlands and to be sourced from the East project, where the British energy major holds 6.25 percent ownership. Shell also holds 9.375 percent in the South project. On October 11, 2023 QatarEnergy bared two agreements to supply TotalEnergies with a maximum of 3.5 MMtpa for 27 years, to be sourced from the expansion project and for distribution in France. TotalEnergies holds a 6.25 percent share in the North Field East expansion project, planned to produce 32 MMtpa, and 9.375 percent in the North Field South expansion project, designed with a 16 MMtpa capacity. QatarEnergy will begin delivery for the LNG supply for France, Italy and the Netherlands in 2026, according to QatarEnergy’s announcements of the separate agreements.
Natural Gas Demand Suggests The IEA Got Peak Demand Wrong --Executives in the natural gas industry expect strong demand for the fuel in Asia through 2040 and 2050 as countries continue their coal-to-gas switch policy and look to meet emission reduction goals.Recent estimates and reports diverge from the International Energy Agency’s (IEA) peak fossil fuel demand projections announced in recent weeks. The IEA expects demand for all three fossil fuels – oil, coal, and natural gas – to peak before the end of this decade.The IEA said in its World Energy Outlook 2023 in October that global natural gas demand growth will slow down this decade compared to the decade to 2021 and peak by 2030, under its conservative Stated Policies scenario (STEPS).In this scenario, natural gas demand growth between 2022 and 2030 would be much lower than the 2.2% average rate of growth seen between 2010 and 2021, according to the IEA. Global gas demand is set to peak by 2030, maintaining a long plateau before gradually declining by around 100 bcm by 2050, the agency said.Weeks before the energy report, the IEA published its medium-term report on gas markets and demand, in which it said that demand growth globally would be structurally lower, with Asia and the Middle East driving consumption.Overall gas demand from mature markets in Asia Pacific – Australia, Japan, Korea, New Zealand, and Singapore, as well as Europe and North America – peaked in 2021, and is forecast to decline by 1% annually through to 2026, according to the report.Europe is headed for structurally lower gas demand amid energy savings, higher share of renewable sources in the power generation mix, and the EU’s decarbonization goals, analysts and industry officials have said.Gas demand in the EU was 12% lower in 2022 than the 2019-2021 average, driven by falling industrial and household gas demand, researchers at Brussels-based think tank Bruegel wrote in October.In 2023, the greater availability of alternative power generation helped with significant gas demand reduction in the power sector, too. Some of the lost European demand for natural gas due to the energy crisis and record-high prices could never return, Vitol Group’s chief executive Russel Hardy said earlier this month. “For gas, demand has plummeted in Europe, with double-digit percentage reductions. We expect some of the lost demand to be permanent,” Hardy told the Energy Intelligence Forum in London.While industry executives expect a part of Europe’s gas demand to have been lost for good during the energy crisis last year, they do not see demand in Asia slackening anytime soon, and certainly not before 2030.Gas industry delegates who attended earlier this month an LNG conference in Singapore organized by S&P Global expect natural gas demand in Asia to jump by more than 50% by 2050, Energy Intelligence’s Clara Tan reports.McKinsey & Co, a consultancy, sees global natural gas demand rising through 2040 in most scenarios in a report launched at the Energy Intelligence Forum. According to McKinsey & Co, gas will still have a key role to play in providing flexible power supply to balance the growing share of renewables until energy storage becomes mainstream to deal with the intermittency of solar and wind. Under most scenarios of how the world energy demand and mix will evolve, natural gas will be necessary, Meg O’Neill, chief executive of energy firm Woodside, said at the Energy Intelligence Forum.“If you look at the economic growth projections of China, South Asia and Southeast Asia that are likely to happen and the decarbonization objectives they have set, we absolutely believe LNG will be an important part of the mix,” O’Neill said.China, Southeast Asia, and south Asia will be the gas demand drivers in the coming decades, as the coal-to-gas switch will continue – albeit at a slower-paced rate – despite last year’s drop in LNG imports in the region.
OPEC Is Upbeat On Oil Demand Ahead Of Key Policy Meeting -Despite the ongoing concerns about the state of the global economy, OPEC continues to hold an upbeat view on world oil demand, OPEC Secretary General Haitham Al Ghais said on Tuesday. “The economy, despite the challenges, is still doing quite well,” Al Ghais told the Argus European Crude Conference in London, as carried by Bloomberg. “We are positive on demand, we’re still quite robust on demand.” Al Ghais was the keynote speaker at the conference and expressed optimism about global oil demand less than three weeks before the ministers of the oil producers in the OPEC+ alliance meet in the weekend of November 25-26 for a key production policy decision. Saudi Arabia and Russia have extended their voluntary production and export cuts, respectively, until the end of the year. The two leaders of the OPEC+ group could decide or announce at the OPEC+ ministerial meeting whether they would extend, deepen, wind down, or end their cuts in 2024. Saudi Arabia said on Sunday it would continue with its extra voluntary production cut of 1 million barrels per day (bpd) in December and will pump around 9 million bpd next month, as it has been doing since July. Russia also confirmed this weekend it would keep oil exports lower until 300,000 bpd by the end of the year. Commenting on the next OPEC+ ministerial meeting at the end of this month, OPEC’s Al Ghais said today, “All I can say for now is we continue to monitor supply and demand fundamentals on a daily basis.” “When the ministers meet in Vienna at the end of this month they will review all of this and take appropriate measures.”
Oil Futures Nosedives on Demand Concerns, Stronger USD - Oil futures settled Tuesday's session sharply lower under pressure from a stronger U.S. dollar and concern over slowing global oil demand following softer-than-expected data out of China and the United States. China's exports declined for the sixth consecutive month in October, dropping 6.4% from a year earlier as shipments into major trading partners in Europe and North America deteriorated further. China is an export-oriented economy that relies heavily on manufacturing exports. The decline in trade volumes underlined persistent external headwinds for Asia's economic growth and clouded the overall demand outlook for oil markets in the winter months. The data showed China imported 13.52% more crude in October than a year ago, but the figure was flattered by coronavirus restrictions that were in place in 2022. Weak macroeconomic data out of China offset pledges from Saudi Arabia and Russia to extend production cuts through the end of the year that gave an initial bounce to oil prices on Monday. In separate statements released Sunday, Saudi Arabia and Russia reaffirmed their commitment to continue with voluntary 1 million bpd production and 300,000 bpd export cuts, respectively, through the end of the year, adding that the "decision will be reviewed next month to consider extending the cut, deepening the cut, or increasing production." Those actions come on top of 3.7 million bpd in production cuts previously agreed to by OPEC+. At their 35th OPEC and non-OPEC Ministerial Meeting held June 4, OPEC+ agreed to production quotas for all of 2024. Further weighing on the oil complex, the U.S. dollar index rallied against a basket of foreign currencies to settle Tuesday's session at 105.373 as investors continued to reprice the path of the federal funds rate heading into next year. U.S. equities have rallied since last week's Federal Reserve decision to hold the federal funds rate in a 5.25%-5.5% target range for the second consecutive meeting as Chairman Jerome Powell appeared to suggest the end of the most aggressive monetary tightening campaign in two decades. This view was further supported by a softer-than-expected October employment report, which showed job growth slowed markedly last month while the unemployment rate climbed, suggesting the labor market has more slack than previously thought. At settlement, West Texas Intermediate December futures fell to $77.37 bbl, down $3.45, and the international crude benchmark Brent for January delivery declined $3.57 to $81.61 bbl. NYMEX December ULSD dropped back $0.1140 to $2.8384 gallon and front-month RBOB on NYMEX retreated to $2.1677 gallon, down $0.0682.
Oil drops to 3-month low as waning demand in US, China outweigh supply cuts; Brent crashes to $79/bbl - Oil prices declined more than $1 on Wednesday, November 8, to their lowest in more than three months on concern over waning demand in major oil consumers - United States and China. The US Energy Information Administration (EIA) said earlier this week that crude production in the US will rise by slightly less than previously expected but demand will fall. Brent crude futures fell $1.68, or 2 per cent, to $79.93 a barrel, and US crude lost $1.78, or 2.3 per cent, to $75.59. Both benchmarks hit their lowest since late July, according to news agency Reuters. Crude is trading below its levels from before the Israel-Hamas war, which has failed to disrupt supplies from the Middle East.Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a November 17 expiry, was last trading lower by 2.81 per cent at ₹6,324 per bbl, having swung between ₹6,306 and ₹6,481 per bbl during the session so far, against a previous close of ₹6,507 per barrel.
-The EIA now expects total US petroleum consumption to fall by 300,000 barrels per day (bpd) this year, reversing its previous forecast of a 100,000 bpd increase. US crude oil stocks rose by almost 12 million barrels last week, market sources said late on Tuesday, according to American Petroleum Institute figures.
-Data from China, the world's biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, fueling worries about the energy demand outlook. In the euro zone, data showing falling retail sales also highlighted weak consumer demand and the prospect of recession.
-Still, China's October crude oil imports showed a strong growth and its central bank governor said on Wednesday that the world's second-biggest economy is expected to hit its gross domestic product growth target this year. Beijing has set a target of about 5 per cent growth.
Oil slumps nearly 3% to 3-month lows as demand concerns mount - Oil prices slid nearly 3% on Wednesday to their lowest in more than three months on concerns over waning demand in the U.S. and China. Brent crude futures fell $2.07, or 2.54%, to settle at $79.54 a barrel. U.S. crude lost $2.04, or 2.64%, to settle at $75.33. Both benchmarks hit their lowest since mid-July. “The market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance,” ING analysts Warren Patterson and Ewa Manthey said in a note to clients, referring to crude supply conditions. Also weighing on the market, U.S. crude oil stocks rose by almost 12 million barrels last week, market sources said late on Tuesday, citing the American Petroleum Institute’s figures. That would be biggest build since February, compared with government data. However, the U.S. Energy Information Administration (EIA) has delayedthe release of its weekly oil inventory data, usually on Wednesdays, until Nov. 15 to complete a planned systems upgrade. Meanwhile, U.S. crude production will rise this year by slightly less than previously expected but petroleum consumption will fall by 300,000 barrels per day (bpd), the EIA said on Tuesday, reversing its previous forecast of a 100,000-bpd increase. Data from China, the world’s biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, feeding worries about the energy demand outlook. In the euro zone, data showing falling retail sales also highlighted weak consumer demand and the prospect of recession. “The meltdown we’ve seen in prices is reflecting two things: concerns about the global economy hitting a brick wall based on data out of China and also a sense of confidence that the war in Israel and the Gaza Strip is not going to impact supply,” said Phil Flynn, analyst at Price Futures Group. Still, China’s October crude oil imports showed robust growth and its central bank governor said that the world’s second-biggest economy is expected to hit its gross domestic product growth target this year. Beijing has set a target of about 5% growth. Analysts from Goldman Sachs estimated seaborne net oil exports by six countries from oil producer group OPEC will remain only 600,000 bpd below April levels. OPEC has announced cumulative production cuts amounting to 2 million bpd since April 2023. Russia, a part of the producer groups known as OPEC+, is considering lifting an export ban on some grades of gasoline, Interfax news agency quoted Energy Minister Nikolai Shulginov as saying. Moscow introduced a ban on fuel exports on Sept. 21 to tackle high domestic prices and shortages. The government eased restrictions on Oct. 6, allowing the export of diesel by pipeline, but kept measures on gasoline exports in place. Barclays lowered its 2024 Brent crude price forecast by $4 to $93 a barrel.
The Market, Which Lost About 7% in the Previous Two Sessions, Bounced Off its Lows | - The oil market on Thursday retraced some of its previous losses and posted an inside trading day. The market, which lost about 7% in the previous two sessions, bounced off its lows as it took a breather from further losses even as China reported a decline in inflation, a sign of weakening domestic demand. The market posted the day’s trading range by mid-morning as it traded to a low in overnight trading of $75.21, the lower boundary of its recent trading channel, and later rallied to a high of $77.16. However, the market erased some of its gains and traded sideways during the remainder of the session. The December WTI contract settled up 41 cents or 0.5% at $75.74 and the January Brent contract settled up 47 cents or 0.59% at $80.01. The product markets ended the session in mixed territory, with the heating oil market settling down 3.01 cents at $2.7191 and the RB market settling up 3.23 cents at $2.1608. UBS said it expects Brent crude prices to move back up towards the $90-$100/barrel range despite recent weakness, citing tight supplies and rising global demand. UBS analysts said global consumption of crude remains well supported despite the weaker official forecast from the U.S. and key oil producers have remained disciplined on production, keeping supply tight. It said the risk of disruption to oil production arising from the Israel-Hamas war has not gone away, adding "our base case is that the conflict will not escalate. However, events in the region remain fluid." Reuters estimated gasoline exports from Northwest Europe to the United States in October reached 510,000 tons down from the 724,000 tons shipped in September. It is estimating November shipments will fall to 488,000 tons. Hedge fund manager, Pierre Andurand, said better-than-expected oil supplies have been the trigger for crude market’s decline. He said “We had a lot less supply disruptions than in an average year.” He stated that Iranian and U.S. oil output have been higher than expected. He said “mobility data shows an acceleration in demand and demand growth,” suggesting consumption is not the cause. He said for a “substantial structural rally” in oil, there needs to be sustained inventory draws similar to those seen in July and August of more than 1.5 million bpd. Reuters reported Thursday that Russian fuel producers have been told by the government to prepare for the removal of all remaining restrictions on the export of diesel and gasoline. The Russian government had eased export restrictions on October 6th which had allowed the export of diesel by pipeline. Saudi Aramco notified at least four North Asian buyers that it will supply full contractual volumes of crude oil in December. On Sunday, Saudi Arabia said it would continue with its additional voluntary cut of 1 million bpd translating into production of around 9 million bpd for December. However, refiners in China have slightly cut their nominated volume for December, totaling around 46 million barrels, compared with about 47 million barrels for November and around 50 million barrels for October.
WTI, Brent Post 4% Weekly Losses as Sentiment Turns Bearish-- Oil futures nearest delivery on the New York Mercantile Exchange and Brent crude traded on the Intercontinental Exchange settled Friday's session higher, although all petroleum contracts registered their third consecutive weekly losses as market sentiment turned increasingly bearish following softer-than-expected macroeconomic data out of major global economies while central banks doubled down on hawkish messaging of additional rate hikes to fight off persistent inflation. U.S. consumer sentiment fell for a fourth straight month in November, according to a survey released by the University of Michigan Friday morning, as households' expectations for inflation rose again for the short to medium term. Officials at the U.S. Federal Reserve pay close attention to consumers' expectations about inflation as these trends could determine expectations for a salary raise. During an Internal Monetary Fund-organized conference in Washington, D.C., Federal Reserve Chairman Jerome Powell noted that the U.S. central bank would "not hesitate to execute another rate hike" should inflation fail to ease towards its 2% target in a timely manner. Powell further stressed financial conditions might not be restrictive enough for the central bank to be convinced consumer prices are indeed easing towards a set target. His comments triggered another rally in the U.S. dollar index earlier this week while further souring sentiment in the oil market. The risk of additional rate hikes from the central bank against an already slowing economy undercuts the outlook for fuel demand heading into the winter months. In China, high-frequency demand figures revealed flight throughput returned to its Spring 2023 levels after upward momentum over the summer months, while overall traffic volumes softened in October. Additionally, manufacturers in China and other Asian economies all reported worsening of business conditions at the start of the fourth quarter, undoing some of the gradual improvement between June and September. A combination of a softer growth outlook and unwinding of geopolitical risk-premium tied to the Oct. 7 attack by Hamas on Israeli civilians pushed both West Texas Intermediate and Brent futures to their lowest levels since July earlier this week. NYMEX December WTI futures added $1.43 to settle at $77.17 bbl, with the January contract finishing the week at $77.15 bbl. ICE January Brent climbed above $81 bbl to $81.43, up $1.42 on the session, with next-month February contract settling at $81.13 bbl. NYMEX December RBOB futures moved up $0.0287 to $2.1895 gallon, reversing higher from Wednesday's $2.1220 gallon 11-month low on the spot continuous chart. RBOB basis in the underlying New York Harbor spot physical market, which strengthened to a 500-point premium to the December contract, lent upside price support. The New York Harbor market has tightened amid an extended turnaround at Monroe Energy LLC 195,000 bpd Trainer refinery in Pennsylvania, which began on Sept. 11. The turnaround is expected to be completed on Nov. 16. NYMEX December ULSD futures advanced $0.0240 to $2.7431 after setting at $2.7191 gallon on Thursday -- the lowest settlement on the spot continuous chart since July 20. A selloff in ULSD futures accelerated this week after the American Petroleum Institute reported an unexpected 1 million bbl build in U.S. distillate fuel inventory during the week-ended Nov. 3 Tuesday afternoon, with the EIA postponing their statistical report by a week due to system upgrades. Despite ending Friday's session higher, December ULSD futures settled below the 200-day moving average, now at $2.7947 gallon, for three consecutive sessions -- a bearish development
Iran’s Proposed Embargo Could Cause Chaos in Oil Markets - Iran’s Supreme Leader, Ali Khamenei, last week called on the Islamic members of OPEC to halt oil exports to Israel immediately. Given that Israel buys virtually none of its oil from Islamic members of OPEC – purchasing mainly from Azerbaijan, the U.S., Brazil, Nigeria, and Angola instead – this would seem in and of itself a somewhat peculiar threat to make. But that is not the actual threat being made by Iran’s spiritual leader, with the full backing of the practical guardians of the 1979 Islamic Revolution – the Islamic Revolutionary Guards Corps (IRGC). The real threat is that Iran is angling for a full oil embargo from all Islamic OPEC member states on countries that support Israel in its war against Islamic militant group Hamas. Saudi Arabia did exactly the same thing in 1973 for exactly the same reason – a war between Israel and Islam, as it also sought to portray it – with devastating results for oil prices, Western economies, and global geopolitical alliances for decades to come, as analysed in full in my new book on the new global oil market order. As global supplies of oil fell, the price of oil increased dramatically, exacerbated by incremental cuts to oil production by OPEC members over the period. Gas prices also rose, as historically around 70 percent of them are comprised of the price of oil. By the end of the embargo in March 1974, the price of oil had risen around 267 percent, from about US$3 per barrel (pb) to nearly US$11 pb. This, in turn, stoked the fire of a global economic slowdown, especially felt in the net oil importing countries of the West.Some later branded the embargo a failure, as it did not result in Israel giving back all the territory that it had gained in the Yom Kippur War. However, in a broader sense, as also analysed in full in my new book on the new global oil market order, the wider war had been won by Saudi Arabia, OPEC and other Arab states in shifting the balance of power in the global oil market from the big consumers of oil (mainly in the West at that time) to the big producers of oil (mainly in the Middle East at that point). This shift was accurately summed up by the then-Saudi Minister of Oil and Mineral Reserves, Sheikh Ahmed Zaki Yamani, who was widely credited with formulating the embargo strategy. He highlighted that the effects on the global economy of the oil embargo marked a fundamental shift in the world balance of power between the developing nations that produced oil and the developed industrial nations that consumed it. As it now stands, there is every chance of a military or diplomatic misstep occurring in the Israel-Hamas War that may see a widening out of the conflict. That would be the perfect point for Iran to push for a simultaneous widening out of an oil embargo on Israel alone into a broader one covering all its supporters in the West. Already, on 16 October Iran’s Foreign Minister, Hossein Amir Abdollahian, warned that its regional network of militias would open “multiple fronts” against Israel if its attacks continue to kill civilians in Gaza. It seems highly likely that the first new front would be a full activation of Hezbollah in Lebanon, to Israel’s direct north – a 100,000-strong very well-equipped fighting force funded and trained by Iran’s Islamic Revolutionary Guards Corps (IRGC) that dwarfs the fighting capabilities of Hamas in all respects. Israel has already stated that its mission is to “annihilate Hamas” and has launched ground operations into Palestine for as long as it takes to do so. Additionally, on 21 October, Israel’s Minister of Economy, Nir Barkat, said that if Hezbollah fully joins the war then Israel would “cut off the head of the snake” and launch a military attack against Iran. A third front could also be opened by Iran, using its own IRGC and proxy militant forces stationed in Syria, to Israel’s northeast. So, what would a broader oil embargo look like? According to the latest assessment by the World Bank, a loss in global crude oil supply of 6-8 million bpd – which it refers to as a “large disruption” scenario comparable to the 1973 Oil Crisis – would result in a 56-75 percent increase in prices to between $140 and $157 a barrel. However, a broadening out of the embargo on Israel by the Islamic members of OPEC, as called for by Iran, would likely lead to a much bigger loss of global oil supplies than the World Bank has calculated. The Islamic members of OPEC are Algeria, with an average crude oil production rate of around 1 million barrels (bpd), Iran (3.4 million bpd), Iraq (4.1 million bpd), Kuwait (2.5 million bpd), Libya (1.2 million bpd), Saudi Arabia (9 million bp), and the UAE (2.9 million bpd). This totals just over 24 million bpd – or about 30 percent – of the current average total global production of about 80 million bpd.
Pentagon confirms four new attacks on US bases after defensive airstrike - American troops were hit four times by Iranian-backed groups in the Middle East after a U.S. strike Wednesday on an Iranian facility in Syria. Pentagon deputy press secretary Sabrina Singh said Thursday the U.S. has now been attacked 46 times since Oct. 17, following the breakout of a major war between Israel and Palestinian militant group Hamas. That includes 24 attacks in Iraq and 22 in Syria, Singh said. The attacks have all involved explosive drones and rockets. “If these attacks continue against our personnel, we won’t hesitate at a time and place of our choosing to respond again,” Singh told reporters at a briefing. A total of 56 troops have been injured in the attacks, but most are minor injuries and every service member has since returned to duty, according to the Pentagon. The latest attacks follow a U.S. airstrike Wednesday, which took out a major weapons facility in Syria used by Iran’s Islamic Revolutionary Guard Corps and Iranian-backed militants. Singh said the strike inflicted significant damage on the storage facility. “We were able to render that building pretty much non-usable,” she said. The Wednesday strike came after the Houthis, who are also backed by Iran, shot down an MQ-9 Reaper drone off the coast of Yemen. The U.S. has bolstered its presence in the Middle East following the Israel-Hamas war and also struck an Iranian-backed militant site in late October. But the ongoing conflict has sparked fury on Capitol Hill, where Republicans have blamed the Biden administration for failing to stop the attacks. “The message to terrorists must be clear: attacks on U.S. servicemembers, assets, and interests will not be tolerated,” Rep. Mike Rogers (R-Ala.), chairman of House Armed Services Committee, said in a statement. “Hitting a storage facility should not be the final response by the U.S.” Singh said the U.S. is carrying out “proportionate” responses but did not seek to escalate the conflict, while the primary mission was to ensure the Israel-Hamas war does not widen. “We want to make sure we can contain this conflict to Israel and Hamas and we have not seen this conflict widen,” she said. “We are sending a message and I think the message has been received.”
US drone shot down over Yemen - An American drone was shot down off the coast of Yemen on Wednesday by the Iranian-backed Houthis, according to a U.S. Defense official. The U.S. official said the drone was an MQ-9 Reaper, a surveillance drone that can be armed with missiles. The drone costs around $32 million. The attack is the latest on U.S. forces in the Middle East, where the Pentagon says Iranian-backed groups are seeking to take advantage of the ongoing Israel-Hamas war. The U.S. has been assaulted in Iraq and Syria by Iranian-backed militants firing rockets and explosive drones around 40 times since the war began. The Pentagon said this week that 46 U.S. service members have been injured, including more than 20 with traumatic brain injuries. The Houthis are a faction in Yemen that have been fighting a major civil war against the country’s government for years. Houthi forces also fired rockets at a U.S. warship last month and have targeted positions in Israel.
What Did the Houthis’ Attempted Bombing of Israel Aim to Achieve? --Yemen’s Houthi rebels recently released footage purporting to show the drones and missiles that they claim to have launched at Israel. Their spokesman’s full-throated support for Hamas was wrongly interpreted by some social media users as a declaration of war against Israel by the Yemeni state, the perception of which was rubbished by its internationally recognized government’s Ambassador to Russia. The self-professed Jewish State also downplayed it too and said that it isn’t at war with Yemen.This group’s attempted bombing of Israel took place a few days after Beirut-based Al Mayadeen claimed without evidence that the Houthis had earlier attacked an alleged Israeli base in Eritrea, which the latter’s Minister of Information denied. This analysis here argues that the purpose behind that report was to boost the Iranian-led Axis of Resistance’s morale amidst Hezbollah’s reluctance to wage all-out war against Israel in support of Hamas by opening up a second front to distract it from Gaza.Since then, the Houthis actually did try to attack Israel, albeit directly instead of via third countries like Eritrea where there’s no credible reason to believe that it even has a base. In hindsight, Al Mayadeen’s report either pressured that group to do something tangible or it was designed to precondition their targeted audience of Resistance Axis supporters to expect the aforesaid after being tipped off about it. Speculation about that outlet’s motives aside, it’s now a fact that the Houthis have joined the fray. This naturally leads to the question of what they aimed to achieve by doing so. First and foremost, they likely wanted to signal to their ideological allies that they won’t sit aside while the latest Israeli-Hamas war rages in Gaza. At the very least, this group felt obligated to send a few projectiles towards the conflict zone out of solidarity. It’s unclear whether more will be forthcoming, but the point is that this attempted bombing sought to reinforce their credentials as reliable members of the Resistance Axis. Secondly, there’s no doubt that the Houthis also wanted to put pressure on Saudi Arabia seeing as how their projectiles had to have traveled through its airspace en route to the self-professed Jewish State. This risks ruining their ongoing peace talks, but the group seemingly calculated that showing solidarity with their allies takes precedence over all else, including the chance that this rekindles their mostly frozen conflict with the Kingdom, whether deliberately or by miscalculation. The abovementioned observation suggests that: 1) their peace talks might have stalled so the Houthis have stopped exercising self-restraint, possibly as a tactic for coercing concessions from Saudi Arabia; 2) they want to provoke the Saudis into intercepting those projectiles in Israel’s defense (whether on their own prerogative or at Israel’s request) and thus damaging their reputation in many Muslims’ eyes; and 3) the Chinese-brokered Iranian-Saudi rapprochement could be imperiled by this latest development. The last of these three observations leads to the final goal that the Houthis might have sought to achieve via their attempted bombing of Israel, which was either to unilaterally exacerbate the security dilemma between those two that’s improved over the past year or do so at their Iranian ally’s behest. Neither motive can be known for sure, but the first scenario suggests that this group is going rogue while the second suggests that Tehran is willing to risk its relations with Riyadh as part of opportunistic power play.The former is a lot less likely than the latter, however, which raises serious concerns for regional stability since any subsequent deterioration of bilateral ties would have far-reaching reverberations. Apart from the worst-case scenario of large-scale hostilities recommencing in Yemen, their restored rivalry could: 1) impede BRICS’ multilateral efforts to accelerate financial multipolarity processes; 2) pressure Russia and China to take one’s side at the other’s expense; and 3) see the return of proxy warfare between them.Considering the enormity of what’s at stake, it can therefore be concluded that the Houthis’ attempted bombing of Israel is a major move because it was arguably approved by Iran, which authorized this attack despite the risk that it could worsen relations with Saudi Arabia. This throws the Kingdom into a dilemma since intercepting these projectiles and/or militarily retailing against that group in Yemen might be exactly what those two want it to do but not responding at all also entails some risks to its interests too.
US Launches More Airstrikes in Eastern Syria Against IRGC Site - The Pentagon said on Wednesday night that the US launched more airstrikes in eastern Syria that targeted a facility used by “Iran’s Islamic Revolutionary Guard Corps (IRGC) and affiliated groups.”“This strike was conducted by two US F-15s against a weapons storage facility,” Secretary of Defense Lloyd Austin said in a statement. He said the strike was “a response to a series of attacks against US personnel in Iraq and Syria by IRGC-Quds Force affiliates,” referring to the Shia militias that operate in both countries.The US launched similar airstrikes on October 27 in an attempt to “deter” further attacks on US forces in the region. But the rocket and drone fire on US bases has not stopped. At least 41 attacks have been reported since October 17, injuring at least 45 US troops.An umbrella group of Shia militias that calls itself the Islamic Resistance of Iraq has taken credit for many of the attacks on US bases. The militias receive support from Iran, but it’s unclear if Tehran is directing the attacks. The Pentagon previously acknowledged it had no evidence of direct Iranian involvement.For their part, Iran has denied any role in the attacks on US troops. Responding to US allegations, Iran’s representative to the UN said Tuesday that Tehran “has never been involved in any actions or attacks directed at the United States military forces in Syria and Iraq.”There are no reports of casualties yet in the US strikes. If IRGC personnel were hit, it would risk a huge escalation with Iran.Austin said the US urges against escalation, but it’s unlikely the Shia militias will back down as the US continues to support Israel’s onslaught on Gaza. “The United States is fully prepared to take further necessary measures to protect our people and our facilities. We urge against any escalation. US personnel will continue to conduct counter-ISIS missions in Iraq and Syria,” Austin said.Also on Wednesday, Israel launched airstrikes in southern Syria, and ISIS attacks were reported in desert regions, killing 26 members of a pro-government militia and four Syrian soldiers.
Gaza Death Toll Surpasses 10,000 - Gaza’s Health Ministry said Monday that, after 31 days of relentless Israeli airstrikes, the death toll in the besieged enclave has surpassed 10,000, a total that includes over 4,000 children.The US has cast doubt on the accuracy of the numbers coming from Gaza’s Health Ministry, but UN officials have said they believe the real death toll is significantly higher since it doesn’t include people stuck under rubble. The UN said Monday that about 2,260 people, including 1,270 children, are reported missing in the enclave, with most presumed to be trapped under the rubble.The Israeli newspaper Yediot Ahronot cited an Israeli security source who put the death toll much higher. The official claimed the Israeli military had killed 20,000 Palestinians in its onslaught, but so far, the number has not been backed up by another source.UN Secretary-General António Guterres on Monday called for an end to the onslaught on Gaza, saying the enclave has become a graveyard for children. “We must act now to find a way out of this brutal, awful, agonizing dead end of destruction,” he said.“Gaza is becoming a graveyard for children. Hundreds of girls and boys are reportedly being killed or injured every day,” Guterres said.The massive death toll and slaughter of children have not impacted US support for Israel’s campaign. US officials are paying lip service to the idea of limiting civilian casualties, but the Biden administration refuses to condition military aid. The Washington Post reported on Sunday that the US is not conditioning military aid or using other leverage it has over Israel because it “would be so politically unpopular in any administration and partly because, aides say, Biden himself has a personal attachment to Israel.”
Israeli Minister Says Dropping Nuke on Gaza Is an Option - Israel’s Heritage Minister Amichai Eliyahu on Sunday said that dropping a nuclear bomb on the Gaza Strip was an option for Israel and claimed there are no innocent civilians in the enclave. According to The Times of Israel, Eliyahu said in a radio interview that dropping a nuke is “one of the possibilities” and said there is no “such thing as uninvolved civilians in Gaza.” He also called for the expulsion of Palestinians from the enclave. “They can go to Ireland or deserts, the monsters in Gaza should find a solution by themselves,” he said. Eliyahu added that the Gaza Strip doesn’t have the right to exist and that anyone waving a Hamas or Palestinian flag “shouldn’t continue living on the face of the earth.” Eliyahu is a member of the extremist Otzma Yehudit (Jewish Power) party, which is part of the coalition that formed the government led by Prime Minister Benjamin Netanyahu. In response to Eliyahu’s comments,Netanyahu suspended him from cabinet meetings, resisting calls from opposition leader Yair Lapid to fire him. “Minister Amihai Eliyahu’s statements are not based in reality,” Netanyahu said, according to his office. Despite the massive child casualty rate in Gaza, the Israeli leader claimed Israel is “operating in accordance with the highest standards of international law to avoid harming innocents.” Besides being incredibly provocative and genocidal, Eliyahu’s comments also appear to confirm that Israel has nuclear weapons. Israel has a nuclear arsenal but has a policy of ambiguity, not officially recognizing that it exists. The US also maintains this policy regarding Israeli nukes.
Netanyahu Shows Map of 'New Middle East'—Without Palestine—to UN General Assembly -- Israeli Prime Minister Benjamin Netanyahu angered Palestinians and their defenders Friday after presenting a map of "The New Middle East" without Palestine during his speech to the United Nations General Assembly in New York.Speaking to a largely empty chamber, Netanyahu—whose far-right government is widely considered the most extreme in Israeli history—showed a series of maps, including one that did not show the West Bank, East Jerusalem, or Gaza. These Palestinian territories have been illegally occupied by Israel since 1967, with the exception of Gaza—from which Israeli forces withdrew in 2005, while maintaining an economic stranglehold over the densely populated coastal strip.Middle East Eyereported Netanyahu also held up a map of "Israel in 1948"—the year the modern Jewish state was established, largely through the ethnic cleansing of more than 750,000 Arabs—that erroneously included the Palestinian territories as part of Israel.Palestinian Ambassador to Germany Laith Arafeh said on social media that there is "no greater insult to every foundational principle of the United Nations than seeing Netanyahu display before the UNGA a 'map of Israel' that straddles the entire land from the river to the sea, negating Palestine and its people, then attempting to spin the audience with rhetoric about 'peace' in the region, all the while entrenching the longest ongoing belligerent occupation in today's world."
Israeli missile strike hits hospital in southern Lebanon | Arab News --Hostilities on the southern Lebanese front escalated on Friday, as Israeli shelling for the first time reached the Mays Al-Jabal Governmental Hospital, damaging it and injuring a doctor. Imran Riza, the UN’s humanitarian coordinator for Lebanon, called on “all parties to adhere to international humanitarian law throughout their military operations strictly, and to protect civilians, including humanitarian and medical workers, wherever they are.” Pleading for all civilian sites, including homes, farms and hospitals, to be protected, he urged all sides to “exercise restraint and avoid further escalation” and said further suffering among the civilian population must be avoided. The missile that hit the hospital did not explode but it caused damage to the emergency department and injured a doctor there, the hospital’s director, Dr. Hussein Yassin, said. The Lebanese Ministry of Public Health condemned the attack, describing it as “flagrant defiance of all the international laws and treaties.” It said it holds “Israeli authorities fully responsible for this unjustifiable act, which would have led to catastrophic results had the artillery shell targeting the hospital exploded,” and called for “a thorough and fair investigation to hold those behind these crimes accountable.” Elsewhere, Israeli warplanes were seen flying over Beirut. Meanwhile, a military source denied reports that the Lebanese army had cleared its position in the Bir Shuaib area close to the village of Blida near the southeastern border. The source said the army does not have an outpost in that region, only a mobile security point “where soldiers remain.” “We have recently witnessed alarming attacks killing and injuring civilians in south Lebanon, including women, children and media personnel,” he said. “Significant damage has also been inflicted upon private property, public infrastructure and agricultural land, forcing over 25,000 people to be displaced. Local farmers risk their lives to harvest olives and tobacco, crucial for sustaining their livelihoods and income.” The Israeli army said its aircraft had bombed Hezbollah infrastructure in Lebanon in response to the firing of guided missiles from Lebanese territory. The attacks “targeted Hezbollah compounds, observation points and technological equipment,” it added.
Attacks on Gaza civilians and facilities are ‘unjustifiable’: Saudi minister | Arab News --Saudi Arabia’s culture minister reiterated the Kingdom’s condemnation of the ongoing “unjustifiable” attacks on civilians in Gaza and facilities, the Saudi Press Agency reported. “We strongly condemn the continuous attacks on civilians and the destruction of schools, hospitals, and cultural properties in the Gaza Strip and the occupied Palestinian territories,” Prince Badr bin Farhan said in a speech at UNESCO’s General Conference in Paris. He described these actions as “unjustifiable violations that are contrary to international norms and laws.” The minister said the Kingdom’s condemnation of these practices are “based on the UNESCO’s founding charter, which promotes international understanding as a prerequisite for preventing the recurrence of crimes, genocides, racism, and wars.” “Hence, the Kingdom of Saudi Arabia calls for intensified international efforts to protect the rights of civilians in a way that contributes to the achievement of global peace and stability,” the minister said.
Saudi ambassador and other Arab envoys discuss Gaza conflict with speaker of Irish Parliament | Arab News --Saudi Arabia’s ambassador to Ireland, Nail Al-Jubeir, and other Arab envoys to the country met the speaker of the Irish Parliament, Sean O Fearghail, the Saudi Press Agency reported on Friday. Their discussions included the continuing Israeli attacks on the Gaza Strip, and the envoys called on Ireland, in keeping with the principles and norms of international humanitarian law, to join international efforts to halt the military operations, protect civilians, secure the release of hostages and prisoners, and end the forced displacement of Palestinians. The ambassadors also stressed the important need to enable the safe delivery of urgent relief aid and medical supplies, without restrictions, to the territory to prevent a humanitarian catastrophe that is claiming the lives of innocent people, including women and children, and could have grave consequences for security and stability in the wider region. More than 11,000 Palestinians, nearly half of them children, have been killed in the Gaza Strip as a result of the Israeli assaults since Hamas launched a surprise attack on Israel on Oct. 7, according to figures from the Gazan Health Ministry. On Thursday, Al-Jubeir and his fellow Arab envoys held similar talks with Irish President Michael Higgins. During that meeting they told him the only way to ensure security and stability in the region is through a just and comprehensive peace that ensures all the legitimate rights of the Palestinian people, the SPA reported. They also discussed the latest developments in the Gaza Strip and called on the international community to take effective, urgent and necessary measures to halt the Israeli aggression and lift the blockade on the besieged territory. They warned that the conflict could have dangerous consequences not only for the Palestinian people but for the wider region, and undermine the chances of achieving lasting peace.
Western Propaganda Gets More Desperate as World Majority Sides with China and Russia Against the US over Gaza - The New York Times, Financial Times, Wall Street Journal, and The Telegraph have all recently run pieces attempting to paint Russia and China as anti semitic and/or anti Israel. The propaganda comes as the US tries to discredit any attempts by Moscow and Beijing to lead more international involvement in the Palestine-Israel peace process.Let’s start with The New York Times, which has run at least two articles in recent days in which the argument basically boils down to the following: some people in Russia and China say bad things about Jews on the Internet; therefore the governments are anti-Israel.Here’s the New York Times in an Oct. 28 piece, “As China Looks to Broker Gaza Peace, Antisemitism Surges Online”:But even as China seeks to turn down the temperature diplomatically, a surge of antisemitism and anti-Israeli sentiment is proliferating across the Chinese internet and state media, undermining Beijing’s efforts to convey impartiality. China has already come under pressure from the United States and Israel for its refusal to condemn Hamas for its Oct. 7 attack that started the war.On China’s heavily censored internet, inflammatory speech critical of Israel is rampant, with commenters seemingly emboldened by that refusal. And China’s state-run media is seizing on the conflict to accuse the United States of turning a blind eye to Israeli aggression, while perpetuating tropes of Jewish control of American politics.China Daily, a state-run newspaper, ran an editorial on Monday declaring that the United States was on the “wrong side of history in Gaza.” It said Washington was exacerbating the conflict by “blindly backing Israel.” The piece goes on to mention other cases of private citizens making statements the Times deems questionable, such as an influencer with millions of followers who decided to call Hamas a “resistance organization” rather than a “terrorist organization.” The Times concludes:It is hard to say whether the anti-Israeli positions in state media and antisemitism on the Chinese internet are part of a coordinated campaign. But China’s state media rarely veers from the official position of the country’s Communist Party, and its hair-trigger internet censors are keenly attuned to the wishes of its leaders, quick to remove any content that sways public sentiment in an unwanted direction, especially on matters of such geopolitical importance.First off, I remember when news media outlets in the First Amendment-loving US used to criticize China for its lack of press freedom; but the New York Times is now accusing Beijing of not cracking down enough on its news media and online discourse in order to silence criticism of Israel and the US. Good luck with that.Inherent in this complaint from the Times is a belief that China should not try to take a balanced approach to the conflict, it must “condemn Hamas” and it cannot criticize the US approach to the conflict, nor the US’ decades-long failure to broker a peace agreement.What’s more is that the Times is in effect concluding that the comments of random private citizens (and the government’s inability or unwillingness to censor them) in a country of 1.4 billion people is therefore the official position of the Chinese government. If we apply that same standard to the US, how easy is it to go on Twitter, Facebook, etc. and find crazy comments by Americans? Is it fair to conclude that those rantings represent US policy? In many cases, they’re not far removed from Washington’s increasingly unhinged actions throughout the world, but that still doesn’t make them the official position of the state.
The Impossibility of Negotiated Settlements in the Gaza and Ukraine Conflicts - by Yves Smith -Although some analysts have given reasons why negotiated solutions to the wars in the Gaza and Ukraine are not in the cards, for the most part, they have also been hesitant to say that in a simple noun-verb sentence. Perhaps they hope against hope that a frame-breaking event will radically shift the current boundary conditions for the various parties. Or they hew to the “messaging can create realities” school of thought, and don’t want to legitimate very bad outcomes, no matter how likely they seem. Or it may be that as a matter of personal style, they are averse to being declarative.So let’s look at why, despite the new round of Western officials (and in the case of Gaza, what is coming to be called the Global Majority) and the press making noises about talks the Middle East and Russia-Ukraine, there are yawning chasms between what the two sides are willing to do, and no prospect of meaningful movement in their positions even if the key players change. If you parse down the problem to key considerations, it’s not hard to find the underlying rigidities.With Israel and Palestine, there is a widespread consensus, which includes many non-Zionist Jews, that the only route to a durable peace is the two state solution. But the current hard right government and an ever-more-powerful settler cohort are committed to a policy of securing Israel for Jews only, and on top of that, a “historical” Israel which means more territory. Existing conditions, such as the degree of balkanization of Palestinian living space, also render a two state solution untenable. And the Hamas October 7 attacks have radicalized some of the moderate Jews in Israel. A Palestinian state would have a military. Not hard in the current climate to scaremonger around that prospect. It is true that Prime Minister Netanyahu has powerful personal incentives to keep the crisis going as long as possible. The prospect of imprisonment wonderfully focuses the mind. Therefore US punditocracy too often depicts Netanyahu were the problem. The implication is f he could be removed, the situation would become more tractable. That’s false.While Netanyahu has been the lead architect of the anti-Palestinian policies and is an extremely cunning politician, those positions and practices are now very well embedded. The second problem is that the economic marginalization and cordoning of the Palestine population has become so advanced that it looks impossible to unwind it….tacitly, without costs to Israelis that they would not accept. Key sections from an article in Vox from February 2023 by Jonathan Guyer. Note his prescient call of the risk of a third Initifada:The third issue is despite the US in theory having leverage over Israel, in practice we don’t due to the power of the Israel lobby in the Beltway. Guyer’s article pointed out that when the Biden State Department top human rights appointee Sarah Margon had her confirmation held up for two years over a tweet that approved of AirBnB removing listings in settlements in the West Bank. Ranking member and gentile James Risch depicted Jewish Margon as an anti-Semitic. She eventually withdrew her candidacy.As Professor John Mearsheimer put it in his interview last Friday with Judge Napolitano (starting at 1:34): [...]Mearsheimer charitably depicts Biden and Blinken as interested in curbing Israel, ifnothing else for the benefit of Israel. But that’s hard to see. Alastair Crooke pointed out in (also in a Judge Napolitano interview) that Biden had done less than any recent president to advance the two state solution (I infer that means even Trump gave it more lip service).Biden also has the established habit of saying things that are expedient at the time that have no relationship to his policy aims, like telling China’s President Xi that the US supports the China one-state policy, then turning around and continuing to escalate in Taiwan. So he and Blinken are mouthing the two state remedy because even though it is no answer, it at least makes them appear responsible and fair-minded when they are anything but.So one has to wonder what the latest Blinken round of visits to the Middle East was supposed to accomplish, since all it did was expose our impotence. Even the Financial Times could not hide that the meetings with Netanyahu and then Arab leaders were a train wreck. Netanyahu rejected even any itty bitty ceasefire, branded a humanitarian pause, to get relief in, demanding that Hamas release all hostages first.1 The fact that Israel has welched or underperformed on its past begrudging promises to let trucks from Egypt in, would make that a non-starter even before getting to Hamas being sure to stick to its position of wanting to trade hostages for Palestinian prisoners. And of course the Arab states are not about to budge. Blinken got a more pointed version of what he was told before. From the pink paper:
France’s Macron urges Israel to stop bombing Gaza - Israel must stop bombing Gaza and killing civilians, French President Emmanuel Macron told the BBC in an interview published late on Friday. Macron said there was “no justification” for the bombing and saying a cease-fire would benefit Israel. He said that France “clearly condemns” the “terrorist” actions of Hamas, but that while recognizing Israel’s right to protect itself, “we do urge them to stop this bombing” in Gaza. When asked if he wanted other leaders — including in the United Sates and Britain — to join his calls for a cease-fire, Macron said: “I hope they will.” Israel has faced growing calls for restraint in its month-long war with Hamas but says the Gaza-based militants, who attacked Israel on Oct. 7 and took hostages, would exploit a truce to regroup. In a statement responding to Macron’s comments, Israeli Prime Minister Benjamin Netanyahu said that world leaders should be condemning Hamas, and not Israel. “These crimes that Hamas (is) committing today in Gaza will be committed tomorrow in Paris, New York and anywhere in the world,” Netanyahu said. Macron’s interview to the BBC aired a day after a humanitarian conference on Gaza was held in Paris. Macron said the “clear conclusion” of all governments and agencies present at that summit was “that there is no other solution than first a humanitarian pause, going to a cease-fire, which will allow to protect... all civilians having nothing to do with terrorists.” “De facto — today, civilians are bombed — de facto. These babies, these ladies, these old people are bombed and killed. So there is no reason for that and no legitimacy. So we do urge Israel to stop,” he said.
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