US oil prices tumbled 2% in the last two hours of trading on Friday after this week's scheduled OPEC meeting had been postponed, and thus ended lower for the fifth straight week, with most of the week's oil price movement predicated on OPEC cut speculation....after falling 1.7% to $75.89 a barrel last week on a slowdown in Chinese refining and a larger than expected increase in US oil supplies, the contract price for the benchmark US light sweet crude for December delivery traded higher on Monday in a follow through of Friday's rally to settle $1.71 higher at $77.60 a barrel after an OPEC+ source said that the producer group was set to consider additional supply cuts at its meeting this week, as trading in the December oil contract expired...then, with markets trading the contract of the US benchmark crude for January delivery on Tuesday, which had gained $1.79 to $77.83 a barrel on Monday, prices slipped 6 cents to settle at $77.77 a barrel as traders trimmed their bets that OPEC+ would further tighten supply....however, oil prices reversed lower early Wednesday after industry data indicated a larger-than-expected build occurred in domestic crude oil inventories and then held on to those losses to settle 67 cent lower at $77.10 a barrel after EIA data confirmed that commercial crude oil inventories increased for a fifth consecutive week...oil prices held near $77 in thin post-holiday trading early Friday, but then tumbled 2% to settle $1.56 lower at $75.54 a barrel as traders awaited a delayed meeting of OPEC+ members next week...oil price quotes thus ended the week 0.5% lower, while the contract price for January oil, which had closed the prior week at $76.04, ended 0.7% lower....(NB: Reuters incorrectly reported that oil "prices notched their first week of gains in over a month" and hence so did most of the internet. unfortunately, they all have it wrong)
Meanwhile, natural gas prices finished the week 3.5% lower at $2.855 per mmBTU, falling for a third straight week, despite an unexpected withdrawal of gas from storage and forecasts for a colder than normal week ahead......The EIA's natural gas storage report for the week ending November 17th indicated that the amount of working natural gas held in underground storage in the US decreased by 7 billion cubic feet to 3,826 billion cubic feet by the end of the week, which left our natural gas supplies 251 billion cubic feet, or 7.0% above the 3,575 billion cubic feet that were in storage on November 10th of last year, and 249 billion cubic feet, also 7.0% more than the five-year average of 3,577 billion cubic feet of natural gas that were in working storage as of the 17th of November over the most recent five years…the 7 billion cubic foot withdrawal from US natural gas working storage for the cited week contrasts with the average 7 billion cubic feet addition to supplies that was expected by industry analysts surveyed by Reuters, but was much less than the average 53 billion cubic feet withdrawal from natural gas storage that has been typical for the same late Autumn week over the past 5 years, and also much less than the 60 billion cubic feet that were pulled from natural gas storage during the corresponding November week of 2022…
The Latest US Oil Supply and Disposition Data from the EIA
The US oil data from the US Energy Information Administration for the week ending November 17th indicated that after an increase in our oil imports, a decrease in our oil exports, and a jump in the oil supplies that the EIA could not account for, we again had surplus oil to add to our stored commercial crude supplies, for the eighth time in eighteen weeks, and for the 26th time in the past 48 weeks ...Our imports of crude oil rose by an average of 156,000 barrels per day to average 6,529,000 barrels per day, after falling by an average of 21,000 barrels per day the prior week, while our exports of crude oil fell by 103,000 barrels per day to average 4,786,000 barrels per day, which combined meant that the net of our trade in oil worked out to a net import average of 1,743,000 barrels of oil per day during the week ending November 17th, 259,000 more barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supply from Alaskan gas liquids, natural gasoline, condensate, and unfinished oils averaged 720,000 barrels per day, while during the same period, production of crude from US wells remained at its all time high of 13,200,000 barrels per day for the seventh straight week, and hence our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 15,763,000 barrels per day during the November 17th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 15,504,000 barrels of crude per day during the week ending November 17th, an average of 106,000 more barrels per day than the amount of oil that our refineries were processing during the prior week, while over the same period the EIA’s surveys indicated that a rounded average of 1,243,000 barrels of oil per day were being added to the supplies of oil stored in the US. So, based on that reported & estimated data, the crude oil figures provided by the EIA for the week ending November 17th appear to indicate that our total working supply of oil from net imports, from transfers, and from oilfield production was 1,085,000 barrels per day less than what was added to storage plus our oil refineries reported they used during the week. To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just inserted a [ +1,085,000 ] barrel per day figure onto what is now line 16 of the weekly U.S. Petroleum Balance Sheet in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus suggesting there was an error in the week’s oil supply & demand figures that we have just transcribed.....Moreover, since 512,000 barrels of oil per day were unaccounted for in last week’s data, that means there was a 573,000 barrel per day difference between this week's oil balance sheet error and the EIA's crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week's report are off by that much, and therefore useless...however, since most oil traders react to these weekly EIA reports as if they were accurate, and since these weekly figures therefore often drive oil pricing, and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it's published, and just as it's watched & believed to be reasonably reliable by most everyone in the industry...(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil, see this EIA explainer)….(note there is also an aging twitter thread from an EIA administrator addressing these errors, and what they had hoped to do about it)
This week's 1,243,000 barrel per day increase in our overall crude oil inventories was all added to our commercially available stocks of crude oil, while the amount of oil in our Strategic Petroleum Reserve remained unchanged. . Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports slipped to 6,430,000 barrels per day last week, which was still 1.7% more than the 6,327,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be unchanged at an all time high of 13,200,000 barrels per day for the seventh consecutive week because the EIA's rounded estimate of the output from wells in the lower 48 states was unchanged at 12,800,000 barrels per day, while Alaska’s oil production was 18,000 barrels per day lower at 414,000 barrels per day but still added the same 400,000 barrels per day to the EIA's rounded national total as it did last week...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure is now 0.8% above that of our pre-pandemic production peak, and 36.1% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 87.0% of their capacity while processing those 15,504,000 barrels of crude per day during the week ending November 17th, up from their utilization rate of 86.1% last week, with national utilization rates now rising following the Autumn seasonal maintenance, when refineries change over to produce winter blends of fuel.. however, the 15,504,000 barrels per day of oil that were refined this week were still 5.5% less than the 16,410,000 barrels of crude that were being processed daily during week ending November 18th of 2022, and 5.7% less than the 16,435,000 barrels that were being refined during the prepandemic week ending November 15th, 2019, when our refinery utilization rate was at 89.5%..
Even with the increase in the amount of oil being refined this week, gasoline output from our refineries was again lower, decreasing by 43,000 barrels per day to 9,372,000 barrels per day during the week ending November 17th, after our refineries' gasoline output had decreased by 813,000 barrels per day during the prior week. This week’s gasoline production was 2.3% more than the 9,164,000 barrels of gasoline that were being produced daily over the same week of last year, but 6.8% less than the gasoline production of 10,053,000 barrels per day during the prepandemic week ending November 15th, 2019....on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 185,000 barrels per day to 4,938,000 barrels per day, after our distillates output had increased by 53,000 barrels per day during the prior week. But even with those increases, our distillates output was 3.4% less than the 5,111,000 barrels of distillates that were being produced daily during the week ending November 18th of 2022, and 3.6% less than the 5,124,000 barrels of distillates that were being produced daily during the week ending November 15th, 2019..
Even with this week's decrease in our gasoline production, our supplies of gasoline in storage at the end of the week rose for the 13th time in thirty-nine weeks, increasing by 750,000 barrels to 216,420,000 barrels during the week ending November 17th, after our gasoline inventories had decreased by 1,540,000 barrels during the prior week. Our gasoline supplies rose this week because the amount of gasoline supplied to US users fell by 469,000 barrels per day to 4,480,000 barrels per day, and because our exports of gasoline fell by 37,000 barrels per day to 896,000 barrels per day, and because our imports of gasoline rose by 79,000 barrels per day to 593,000 barrels per day.…Even after twenty-six gasoline inventory decreases over the past thirty-nine weeks, our gasoline supplies were still 2.6% above than last November 18th's gasoline inventories of 210,998,000 barrels, and only 1% below the five year average of our gasoline supplies for this time of the year…
Even with this week's increase in our distillates production, our supplies of distillate fuels fell for the twenty-third time in thirty-seven weeks, decreasing by 1,018,000 barrels to a 18 month low of 106,579,000 barrels over the week ending November 17th, after our distillates supplies had decreased by 1,422,000 barrels during the prior week. Our distillates supplies fell again this week as the amount of distillates supplied to US markets, an indicator of our domestic demand, rose by 1,000 barrels per day to 4,110,000 barrels per day, because our exports of distillates rose by 48,000 barrels per day to 1,048,000 barrels per day, and because our imports of distillates fell by 77,000 barrels per day to 75,000 barrels per day....With 23 inventory decreases over the past thirty-seven weeks, our distillates supplies at the end of the week were 3.2% below the 109,101,000 barrels of distillates that we had in storage on November 18th of 2022, and about 13% below the five year average of our distillates inventories for this time of the year...
Finally, with our oil imports higher and our exports lower, our commercial supplies of crude oil in storage rose for the 13th time in twenty-six weeks and for the 28th time in the past year, increasing by 8,700,000 barrels over the week, from 439,354,000 barrels on November 10th to 448,054,000 barrels on November 17th, after our commercial crude supplies had increased by 3,592,000 barrels over the prior week. .Even with those increases, our commercial crude oil inventories were still about 1% below the most recent five-year average of commercial oil supplies for this time of year, but were still about 30% above the average of our available crude oil stocks as of the 3rd weekend of November over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns of the Spring of 2020, then jumped again after February 2021's winter storm Uri froze off US Gulf Coast refining, but then fell in the wake of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze offs, our commercial crude supplies as of this November 17th were 3.8% more than the 431,665,000 barrels of oil in commercial storage on November 18th of 2022, and 3.2% more than the 434,020,000 barrels of oil that we still had in storage on November 19th of 2021, but still 8.3% less than the 488,721,000 barrels of oil we had in commercial storage on November 20th of 2020, after early pandemic precautions had left a lot of oil unused…
This Week's Rig Count
Note that this week's rig count was released on Wednesday, November 22nd, instead of Friday, due to the Thanksgiving holiday, and hence only covers changes to rigs over the five days from last Friday to Wednesday; the comparisons to year ago rig counts also include a Thanksgiving shortened 5 day period....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 22nd, the second column shows the change in the number of working rigs between last week’s count (November 17th) and this week’s (November 22nd) count, the third column shows last week’s November 17th active rig count, the 4th column shows the change between the number of rigs running on Wednesday and the number running on the Wednesday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 23rd of November, 2022...
DUC well report for October
Last week saw the release of the EIA's Drilling Productivity Report for November, which included the EIA's October data on drilled but uncompleted (DUC) oil and gas wells in the 7 most productive shale regions (click tab 3)....that data showed a decrease in uncompleted wells nationally for the 37th time out of the past 40 months, as both drilling of new wells and completions of drilled wells fell in October and remained well below the average pre-pandemic levels....for the 7 sedimentary regions covered by this report, the total count of DUC wells decreased by 92 wells, falling from a revised 4,616 DUC wells in September to 4,524 DUC wells in October, which was also 11.3% fewer DUCs than the 5,100 wells that had been drilled but remained uncompleted as of the end of October of a year ago...this month's DUC decrease occurred as 859 wells were drilled in the seven regions that this report covers (representing 87% of all U.S. onshore drilling operations) during October, down by 7 from the 866 wells that were drilled in September, while 951 wells were completed and brought into production by fracking them, down from the 979 well completions seen in September, and down by 114 from the 1065 completions seen in October of last year....at the October completion rate, the 4,524 drilled but uncompleted wells remaining at the end of the month represents a 4.8 month backlog of wells that have been drilled but are not yet fracked, down from the 5.1 month from the DUC well backlog of a month ago, while up from the 7 1/2 year low of 4.6 months in January, on a completion rate that is roughly 20% below 2019's pre-pandemic average...
the drilled but uncompleted well count in the Appalachian region, which includes the Utica shale, decreased by 11 wells, from 758 DUCs at the end of September to 747 DUCs at the end of October, as 75 new wells were drilled into the Marcellus and Utica shales during the month, while 86 of the already drilled wells in the region were fracked...
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Ohio Commission Decides to Allow Fracking in State Parks – EcoWatch - A government commission in Ohio has decided to open some state parks and wildlife areas to fracking. The decision comes amid an investigation on allegations of possible fraudulent support from an industry group representing energy companies, The Associated Press reported.The Ohio Department of Natural Resources Oil and Gas Land Management Commission (OGLMC) greenlit multiple fracking proposals on land owned by Ohio Department of Natural Resources and the Ohio Department of Transportation, according to a report by The Associated Press.The commissioners held a meeting to consider the applications, and many environmentalists showed up to protest. After one member of the audience threw play money on the ground in front of commissioners in protest, the commissioner chair Ryan Richardson responded, “I’m going to ask again that we can show respect to the commissioners,” Ideastream Public Media reported.The protestor responded, “Why should we show respect when you are not respecting us, and you’re giving away our land to profit-making oil and gas? Why should we sit here and let you do that?” Days before the decision, Ohio Senate Democrats sent a letter to OGLMC, asking them to decline the applications to frack in state parks.
Commission sells out parks and wildlife areas despite public outcry - Last Wednesday, despite vociferous public protest, the Ohio Oil and Gas Land Management Commission voted to approve nominations to lease Salt Fork State Park, Valley Run Wildlife Area, and Zepernick Wildlife Area to the oil and gas industry for fracking.They denied two nominations — one for all of Wolf Run State Park and one for part of Salt Fork — because more than one state agency manages the land sought, and those agencies had not been sufficiently consulted. However, those nominations can be revised to cut the land not managed by the Ohio Department of Natural Resources and resubmitted at a later date.We won’t sugarcoat this: It’s a loss not just for Save Ohio Parks, but for the land, water, air, wildlife, citizens, and democracy in Ohio. But it wasn’t for lack of trying.We launched what became the Save Ohio Parks campaign in January, just after the December lame duck session in which Ohio legislators stuffed HB 507, a bill about the sale of poultry chicks, with unrelated oil and gas amendments declaring methane gas to be “green” and mandating that state agencies allow fracking on public land.As the commission embarked on a rule-making process to establish a procedure for taking oil and gas industry applications to frack public land, and supposedly for taking public comments, we began holding meetings and trainings.Thirteen of us showed up to testify against fracking our state parks, wildlife areas, and public lands at a commission meeting in February, and 14 showed up in April. Only one person at each hearing testified in favor — yet the commission made whatever changes the oil and gas industry asked for while ignoring everything we said.Once the commission’s rules were in place — after another hearing in front of the Joint Committee for Agency Rule Review — oil and gas applications to frack our state parks began rolling in, and the public commenting period was open.From the end of May through October, over 4,000 comments were submitted through the Save Ohio Parks website and action alerts, along with hundreds of comments submitted independently by Ohio citizens, all opposed to fracking our state parks, wildlife areas, and public lands.We sent study after study to the commissioners showing that fracking harms our health, climate, and environment, but does not improve our economy — that in fact, preserving our parks and wildlife areas adds more to the state economy than fracking ever could.We looked into hundreds of pro-fracking comments and found at least 98 people who told us they never wrote the comments submitted in their name.You can find all the public comments posted on the commission website. We don’t know if they read any of it. But we do know they went on an oil and gas tour with the industry.Shortly before the November 15 meeting, we received photos of Encino trucks and equipment already setting up just outside Salt Fork State Park — so we had some idea of how the vote would go. But we were not going to let that happen without a fight.Up to 100 Ohioans drove in to Columbus from across the state to attend the Save Ohio Parks press conference and meeting of the Oil and Gas Land Management Commission — and we let the commissioners know what we think. See a photo album hereWe held up signs and banners, sang and chanted — and when the first vote to frack Salt Fork took place, a group from Climate Defiance took over the meeting with a large banner that said “Commissioners: No Fracking Our Ohio Public Lands.”At that point, the commissioners left the room for 15 minutes — then incredibly, came back and proceeded to sell out most of the rest of Salt Fork, along with Valley Run and Zepernick — all while dozens of Ohio citizens chanted and yelled from a few feet away. See video The next step in the commission process is to put the approved nominations up for bid — literally selling our public lands to the highest oil and gas bidder. That won’t happen until January, and then it will take some time to select the winner. There’s also the matter of the apparently fraudulent pro-fracking comments. Almost 150 people are on the record stating they did not submit the comments that bear their name in support of fracking Ohio’s state parks, wildlife areas, and public lands.Attorney General David Yost opened an investigation on September 11, but so far there have been no updates. At its September 18 meeting, Commission Chair Ryan Richardson said they would proceed with their decision-making regardless of the investigation.Meanwhile, the Save Ohio Parks steering committee is considering our next steps. We are looking into multiple options and will keep you updated as the fight against fracking our state parks and wildlife areas moves into its next phase.
Put an end to sacrilegious treatment of public lands – George Banzinger, Marietta Times - In its Nov. 16 edition, The Marietta Times carried a story with the headline, “Ohio commission approves fracking in state parks.” I attended this event at the headquarters of the Ohio Department of Natural Resources in Columbus, where this meeting of the Oil and Gas Land Management Commission was held. I shared in the disappointment, anger and frustration which was expressed by many members of the Save Ohio Parks group.There are many reasons that this plan to impose a sacrilege on our state parks and public lands is an outrage. First, the Ohio Legislature drew up a poultry bill, HB 507, and inserted some unrelated “stuffing” language offering public lands of Ohio–including state parks–for oil and gas drilling. The hidden language in this poultry bill allowed the legislature to avoid any public hearings about this controversial proposal to drill for fossil fuels. Adding to this reason for outrage — this legislation declared methane to be green!A second outrage is that Gov. Michael DeWine signed this legislation and appointed the members of the Oil and Gas Land Management Commission, who represent real estate, oil and gas interests, and lawyers but no true representatives of environmental interests. The commission then sent out information to oil and gas companies inviting “nominations” for parcels immediately adjacent to state parks and other public lands (in signing the bill the governor promised that there would be no surface drilling on public lands — we shall see if that is enforced). Another outrage is that the names of these companies which submitted nominations were not made public. It is likely that most all of these companies are from out of state, based on preliminary inquiries made to property owners on these sites. The public was invited to comment on these nominations, and more than 5,000 comments from those opposing high-pressure hydraulic fracturing (aka fracking) near these public lands were received by the commission. Comments referred to increased truck traffic (hauling in sand, water, and chemicals and hauling out radioactive and toxic brine waste), increased noise and air pollution, and risks to health and the environment, which has been documented in scientific studies. Yet another outrage occurred when over 1,100 comments from those in support of fracking on public lands came in from people whose identities had been stolen and who had no idea until they were contacted that a message in support of fracking on public lands was sent in their names and with their contact information. The latter information came out due to some investigative reporting by reporters from the Cleveland Plain Dealer and other press outlets. Attorney General David Yost promised to conduct an investigation of this issue, but at this point his office has not provided any update. Further exasperating opponents of fracking on public lands is that the commission on Nov. 15 went ahead and approved these nominations before any information about the attorney general’s investigation is made public (it is possible that one of the companies that submitted a nomination was behind this deceptive effort). A further cause for outrage, the commission prohibited any comments from the public at the Nov. 15 meeting.The next step in this process is that the commission will request bids for the various parcels.If bids come in as expected, Salt Fork State Park, the state’s largest, will be completely surrounded by well pads and oil and gas rigs. The last hope to set any limits or to stop this process is to contact the governor and urge him to do what his predecessor, then-Gov. John Kasich, did and end this sacrilege on our public lands.Riffe Center, 30th Floor, 77 South High Street, Columbus, OH 43215-6117. (614) 644-4357.
Utica Leasing Up in Columbiana County, Royalties Down – Energy companies doing business in Columbiana County have exhibited a strong appetite for new lease deals with property owners across the Utica/Point Pleasant shale formation over the last year, records show.It amounts to what is a post-COVID rush to expand or renew existing leaseholds across the county and other areas of the shale play, says attorney Alan Wenger, who oversees the oil and gas division of Harrington, Hoppe and Mitchell law firm in Youngstown.“It’s become evident in the aftermath of COVID,” Wenger says. Yet gone are the days when these leases commanded lucrative signing bonuses and promising royalty returns, Wenger says. Twelve years ago, major oil and gas companies – led by Chesapeake Energy Corp. – descended on eastern Ohio in a race to lock up acreage positions in what was then the unproven Utica/Point Pleasant. Some agreements at that time yielded bonuses of $6,000 an acre and royalties of 20% gross production of an oil and gas well.Today, many of those lease agreements that covered acreage where wells were not drilled have expired, and companies have returned to the table to re-sign property owners to new leases. Or, these energy companies have reached out to landowners whose acreage was not leased during the initial push.“They’re back, and people think the terms should be the same,” Wenger says. “It’s not happening. The days of $5,000 and $6,000 bonuses and 20% royalties don’t happen anymore.”Wenger says property owners no longer hold the leverage they used to, as the Ohio Department of Natural Resources and changes in state law have made it easier for oil and gas firms to combine property tracts for drilling purposes – a practice commonly known as unitization, or “forced pooling.” In Ohio, a unit consists of 640 contiguous surface acres.Wenger says that landowners who are designated as part of a well unit, but have refused to lease their land to an oil and gas company, today negotiate from a disadvantage. “In my experience, the ability of landowners to negotiate is compromised since the boom,” he says. Under Ohio law, a unit today requires that 65% of the landowners within the pool approve of developing a well. “It used to be about 90%. It used to be a roadblock,” Wenger says.
Northern Oil and Gas, Inc. Announces Bolt-On Acquisitions, Expands Northern Delaware Position and Enters Ohio Utica Shale in Appalachia -Northern Oil and Gas, Inc. announced two acquisition transactions. NORTHERN DELAWARE BASIN TRANSACTION: NOG has entered into a definitive agreement with a private party to acquire non-operated interests across 3,000 net acres located primarily in Lea and Eddy Counties, New Mexico. NOG owns existing interests in approximately 90% of the leasehold. Current production is 2,800 Boe per day (2-stream, 67% oil). NOG expects 2024 production to average 2,500 Boe per day (2-stream, 67% oil) but expects significant future growth on the assets, with average production of >3,500 Boe per day for 2025 through 2030. Capital expenditures on the assets are expected to be in the range of $25 - $30 million to be incurred in 2024, with similar expected levels annually through 2027. The acquired assets include 13.0 net producing wells, 1.0 net well in process and an estimated 26.3 net undeveloped locations, representing approximately 13.5 years of inventory at sustaining capital levels. The undeveloped assets are of extremely high quality, with an average pre-tax PV-10 breakeven of less than $45 per barrel. Mewbourne Oil is the largest operator, controlling approximately 80% of the assets. The effective date for the transaction is November 1, 2023. NOG has placed a $17.1 million deposit for the acquisition with the balance of the funding to occur at closing, which is expected in the first quarter of 2024, subject to the satisfaction of typical closing conditions. APPALACHIAN BASIN TRANSACTION: NOG has entered into a definitive agreement with a separate private party to acquire non-operated interests in Jefferson, Harrison, Belmont, and Monroe Counties, Ohio. The primary target zone is the Point Pleasant/Utica Shale. Current production is approximately 23 MMcfe per day (3,800 Boe per day, 100% gas) and NOG expects average production in 2024 at slightly higher levels. NOG expects to incur approximately $14 million of capital expenditures on the assets in 2023 (which may be included in whole, or in part, as a portion of the initial closing settlement, depending on timing), and $8 million of capital expenditures in 2024. The acquired properties include approximately 0.8 net producing wells and 1.7 net wells-in-process. Substantially all the assets are operated by Ascent Resources, one of the top Utica producers in Ohio. The effective date for the transaction is November 1, 2023, with an expected close in the fourth quarter of 2023, subject to the satisfaction of typical closing conditions. Share
100 plugged and 300,000+ to go; Abandoned well cleanup effort jumps with federal money - Gov. Josh Shapiro says his administration has plugged more abandoned oil and gas wells in the last 10 months than the state government has in the previous six years. Shapiro celebrated the 100th well plugged this year at a state park in Washington County on Wednesday. More wells are being plugged because of new federal money. The Infrastructure Investment and Jobs Act signed by President Joe Biden in 2021 gave $4.7 billion to clean up old wells across the country. It’s part of Biden’s push to cut the country’s methane emissions, which have a much higher warming factor than carbon dioxide. Leaky wells can also cause health problems for people who live nearby. Pennsylvania has gotten $25 million so far. The Department of Environmental Protection has awarded contracts to plug 227 wells. “None of this would be possible without federal funding and all the support that we’re getting from the Biden Administration, which is pretty extraordinary,” DEP Secretary Rich Negrin said. DEP has documented around 30,000 orphan wells. But the Shapiro Administration estimates there are more than 300,000 of them in Pennsylvania that contribute 8 percent of the state’s methane emissions. Most of those were drilled before modern regulations by companies that have since gone out of business. Shapiro said he is asking DEP to go after companies that have not cleaned up their wells. “Taxpayers shouldn’t have to foot the bill just because a company thought it could get away with cutting corners,” Shapiro said. The Shapiro Administration budgeted an additional $104 million in federal funding for well-plugging in the 2023-24 fiscal year. DEP has estimated 1,389 wells could be plugged with that amount. DEP said the cost to plug wells has ranged from $10,000 to $800,000, depending on complications, location, depth, and the number of wells per contract. The state had been budgeting around $1 million annually to clean up old wells.
Pa. families want fracking recommendations adopted now - Families that live near fracking in Washington County are disappointed in Gov. Josh Shapiro’s recent partnership with a major gas driller, saying it doesn’t do enough to bring accountability to the industry. Moms and Dads-Family Awareness of Cancer Threat Spike or MAD-FACTS met at the state capitol last week to share stories about illnesses they’ve experienced since fracking boomed in the southwest corner of the state. Jodi Borello said she lives about 1,400 feet from a pipeline inspection gauge receiving station. She said she and her family can see a mist of emissions when they are released from the station. If they stay outside when the mist drifts into her yard, she said, they develop a painful rash. The group wants Shapiro to do more to adopt the recommendations of a 2020 grand jury that found the state failed to protect the public from the health effects of fracking. Earlier this month, Shapiro announced an agreement with CNX for the company to voluntarily follow most of the report’s recommendations.. Shapiro said the agreement could serve as a model for extracting natural gas “in the most responsible, sustainable way anywhere in the nation.” He added that he was tired of waiting for the General Assembly to pass laws on natural gas standards. For MAD-FACTS, the agreement makes it look like Shapiro is siding with industry. The group says it can’t trust CNX, and says CNX has committed more than 400 violations since the grand jury report, according to FracTracker Alliance data. “He did exactly what he said he was trying to protect Pennsylvanians from and I believe he sided with bigger wallets and better connections,” Borello said. Under the agreement, CNX will keep new infrastructure 600 feet from homes, up from 500 feet. The grand jury recommended a 2,500-foot setback. CNX is also promising to be more transparent about what chemicals it uses in the fracking process and to put an end to the “revolving door” between regulators and industry by not hiring Department of Environmental Protection employees for two years after they leave the agency. Shapiro said the agreement with CNX will allow for intensive, independent study, which he hopes will answer questions about the industry.
WhiteHawk to Acquire Marcellus Assets for $54MM | -- WhiteHawk Energy, LLC is acquiring additional Marcellus Shale natural gas mineral and royalty assets for a total price of $54.0 million. The acquisition increases WhiteHawk’s mineral and royalty ownership in its existing 475,000 gross acre position by 100 percent, the company said in a recent news release. WhiteHawk’s Marcellus assets are primarily located in Washington and Greene counties, Pennsylvania, “which represents some of the highest quality natural gas reserves” in the USA, WhiteHawk said. The seller and other transaction details were not disclosed. “These assets include all the ideal mineral and royalty attributes – diversified acreage positions in the core of well-established basins, operated by best-in-class companies, generating significant cash flow with no additional capital expenditures”, WhiteHawk CEO Daniel Herz said. “Since acquiring our initial mineral and royalty interests in the Marcellus Assets in 2022, the assets have performed very well and we are pleased to increase our ownership under some of the best natural gas operators in the world”. WhiteHawk’s Marcellus assets have production from approximately 1,315 horizontal shale wells. Additionally, WhiteHawk owns mineral and royalty interests in 72 wells-in-progress, 64 permitted wells, and nearly 900 undeveloped Marcellus locations, with additional potential from the underlying Utica Shale, according to the release. Upon closing of the acquisition, WhiteHawk said it would double its net revenue interest in each well across its Marcellus assets. Approximately 95 percent of production, cash flow, and present value associated with the Marcellus assets are operated by EQT Corporation, Range Resources Corporation, and CNX Resources Corporation, according to the release. Earlier in the year, WhiteHawk acquired natural gas mineral and royalty assets in the Haynesville Shale, covering approximately 375,000 gross unit acres. Combined, WhiteHawk noted that it currently owns interests in approximately 850,000 gross unit acres within the core operating areas of the Marcellus Shale and Haynesville Shale, with interests in more than 2,550 producing horizontal wells. The company’s Haynesville Shale assets are actively being developed by Southwestern Energy, Chesapeake Energy, Aethon Energy Management, and Comstock Resources. The diversified position benefits from sales points in both the Northeast and Gulf Coast regions with combined operator market capitalization of approximately $50 billion, WhiteHawk said. In August, WhiteHawk announced its entrance into a $100.0 million acquisition finance facility with an undisclosed “top-tier institution”. The company utilized an initial $20.0 million draw on the acquisition facility to fund an additional closing of Haynesville Shale natural gas mineral and royalty assets from Mesa Minerals Partners II, LLC located in northwestern Louisiana and eastern Texas. The facility will mature on December 31, 2025, and contains certain co-investment rights for the institution, according to an earlier news release. WhiteHawk expects to use additional borrowings from the facility to fund future acquisitions of mineral and royalty assets upon the agreement of the institution, and the company may make repayments on the facility at any time, according to the release.
Plan for gas drilling spree in Southern Tier draws muted response from DEC and state reps -An ambitious plan to turn three Southern Tier counties into a vast energy hub pockmarked with thousands of new natural gas wells has drawn a muted response from state regulators and the state legislators who represent the districts. Sixty-five hundred residents in Broome, Tioga and Chemung counties have received packages in the mail encouraging them to sign leases with a new company with Texas roots.Southern Tier CO2 to Clean Energy Solutions LLC — often shortened to Southern Tier Solutions, or STS — intends to drill wells on their land to extract methane and store carbon dioxide (CO2).The plan also calls for the construction of up to a dozen new natural gas-fueled power plants and several direct air capture facilities that pull CO2 out of the atmosphere, according to the STS website. The wells, power stations and DAC plants would be linked by a series of new methane and CO2 pipelines.Bryce Phillips, president of STS, told WaterFront the company would only proceed if it can obtain signed leases for at least 100,000 acres by early March. The project would also require the company to win state permits for a process that is relatively untested: injecting fluid CO2 instead of water to extract methane from the Marcellus and Utica shale formations.New York State bans hydraulic fracturing, or fracking, when it requires more than 300,000 gallons of water per well. Fracking with C02 is a new regulatory issue that the state Department of Environmental Conservation would need to examine and eventually permit. Also, the state’s 2019 climate law requires a gradual reduction in greenhouse gas emissions from natural gas sources.But STS has not yet applied to the DEC for any permits.The agency said in a statement to WaterFront that it “does not have sufficient information about this conceptual project … to speculate about the potential state permits or authorizations that would be required … DEC has not participated in any pre-application meetings nor received permit applications (from STS).” Meanwhile, the state legislators whose districts are targeted for development, aren’t talking.Sen. Tom O’Mara (R-Big Flats), whose Senate district includes Chemung and Tioga counties, did not return telephone calls or respond to emailed questions about the STS project. Neither did Assembly Member Chris Friend (R-Horseheads), whose district includes all of Tioga County and large sections of Chemung and Broome.Sen. Lea Webb (D-Binghamton), whose district includes most of the eastern portions of Broome County, told WaterFront through a spokesperson that she is “aware of the (STS) issue and investigating its potential impact on her district and our climate laws here in NY.”
Southern Tier gas drilling proposal draws questions in Binghamton - Binghamton residents have questions about this gas drilling proposal: What we know - A proposed gas drilling operation using leased land in the Southern Tier has sparked questions and confusion among Binghamton-area residents and local lawmakers.Assemblywoman Donna Lupardo and State Senator Lea Webb said some local land owners received leasing offers from Southern Tier CO2 Clean Energy Solutions (Southern Tier Solutions) and reached out to Lupardo and Webb's offices with questions.The offers went to land owners with more than 30 acres of land in Broome, Tioga and Chemung counties. Lupardo said residents came forward wondering if the leases were a scam, and what they meant.Lupardo and Webb sent a letter to New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos Tuesday, following these reports from the community.According to the Southern Tier CO2 Clean Energy Solutions website, the company was founded in 2023, and aims to use CO2 to extract methane gas from the Marcellus and Utica shales. On a frequently asked questions page, STS says their process is not the same as high-volume hydraulic fracturing.The company's process "employs an anhydrous or waterless process, without added chemicals or proppant," and uses carbon dioxide to retrieve shale gas resources."The technique relies heavily on the unique properties of carbon dioxide when in its supercritical phase and the affinity of shale, especially shale containing elevated levels of organic content, to absorb carbon dioxide while desorbing methane gas preferentially," their website says.In the letter to the DEC, Lupardo and Webb sought information on the company, the science and background surrounding this method of natural gas extraction and the potential environmental impacts of the development, among other questions. "We're talking about carbon capture facilities, we're talking about thousands of new gas wells, we're talking about pipeline infrastructure, and with everything this community has been though with the Marcellus and Utica shale, we obviously have some questions," said Lupardo. Webb and Lupardo said one of their main priorities was keeping both residents and the environment safe, and avoiding results similar to those of fracking, which the two referenced as a large issue for the area in the past. "We want to make sure that as a state we are doing all that we can to protect our natural resources and that we are not creating harm in any way for residents when it comes to access to clean water, making sure they are not being exposed to dangerous toxins or anything of that nature," said Webb. "It is really important that we do our due diligence to ensure that the promise for economic development that this particular company is trying to advance is not done on the backs of residents of the Southern Tier and across the state." Lupardo said that the company had not reached out to either office, and that the DEC had not reported hearing from the company as of now.
Lawmakers question new form of fracking – Local state lawmakers are looking to get some answers from the DEC regarding a new form of fracking that’s been proposed in our area. Assemblywoman Donna Lupardo and Senator Lea Webb issued a letter to the Department of Environmental Conservation requesting answers concerning the Texas based company named, Southern Tier CO2 Clean Energy Solutions. Lupardo and Webb say the company has solicited over 6,500 land leases to local property owners with at least 30 acres in Broome, Tioga and Chemung counties. In December 2014, following years of contentious debate over the safety of high-volume hydraulic fracturing to extract natural gas, the administration of Governor Andrew Cuomo decided to ban the practice using water. However, the Texas firm wants to drill for natural gas using carbon dioxide. State Assemblywoman Donna Lupardo says, “After everything that this community and this area has been through with Marcellus and Utica Shale, we obviously have some questions. And it is customarily the case that we would write a letter to start the process to the DEC, The Department of Environmental Conservation, to start off with some extremely basic questions. And that’s the step we’re at right now.” The underground Marcellus Shale play, which runs from northern Pennsylvania into Southern New York, is considered to hold immense pockets of natural gas. Southern Tier CO2 Clean Energy Solutions’ extraction process proposes storing carbon underground, with the intention of breaking up the shale above it and releasing natural gas. The letter asks the DEC if it is familiar with similar processes across the country, and if the new form of extraction would help New York reach its green energy climate goals.
US weekly LNG exports up to 27 cargoes -- US liquefied natural gas (LNG) exports rose in the week ending November 15 compared to the week before, according to the Energy Information Administration. The agency said in its weekly natural gas report that 27 LNG carriers departed the US plants between November 9 and November 15, four vessels more compared to the week before. Moreover, the total capacity of these LNG vessels is 100 Bcf, the EIA said, citing shipping data provided by Bloomberg Finance. Average natural gas deliveries to US LNG export terminals rose 2.2 percent (0.3 Bcf/d) week over week, averaging 14.2 Bcf/d, according to data from S&P Global Commodity Insights. Natural gas deliveries to terminals in South Louisiana rose by 5.8 percent (0.5 Bcf/d) to 9.1 Bcf/d, while natural gas deliveries to terminals in South Texas fell by 2.8 percent (0.1 Bcf/d) to 4 Bcf/d. The agency said that natural gas deliveries to terminals outside the Gulf Coast fell by 6.5 percent (0.1 Bcf/d) to 1.1 Bcf/d. Cheniere’s Sabine Pass plant shipped ten LNG cargoes and the company’s Corpus Christi facility sent five shipments during the week under review. Sempra Infrastructure’s Cameron LNG terminal dispatched five LNG cargoes, while the Freeport LNG terminal and Venture Global’s Calcasieu Pass each shipped three cargoes. Also, the Cove Point plant sent one cargo during the week. The Elba Island LNG terminal did no ship cargoes during the week under review. This report week, the Henry Hub spot price increased 66 cents from $2.21 per million British thermal units (MMBtu) last Wednesday to $2.87/MMBtu this Wednesday, the agency said. The price of the December 2023 NYMEX contract increased 0.3 cents, from $3.106/MMBtu last Wednesday to $3.109/MMBtu this Wednesday, the EIA said. According to the agency, the price of the 12-month strip averaging December 2023 through November 2024 futures contracts declined 2.2 cents to $3.284/MMBtu. The agency said that international natural gas futures were mixed this report week. Bloomberg Finance reported that weekly average front-month futures prices for LNG cargoes in East Asia decreased 29 cents to a weekly average of $17.17/MMBtu. Natural gas futures for delivery at the Dutch TTF increased 33 cents to a weekly average of $14.97/MMBtu. In the same week last year (week ending November 16, 2022), the prices were $27.06/MMBtu in East Asia and $34.10/MMBtu at TTF, the EIA said.
Sempra: Port Arthur LNG construction continues under existing permits - Sempra Infrastructure, a unit of Sempra, said it is continuing construction on the first phase of its Port Arthur LNG export project under existing permits after a US court vacated the project’s emissions permit. The US Court of Appeals for the Fifth Circuit said in a decision dated November 14 that the Texas Commission on Environmental Quality (TCEQ) declined to impose certain emissions limits on Port Arthur LNG that it had recently imposed on another such facility, Next Decade’s Rio Grande LNG. “In doing so, it contravened its policy of adhering to previously imposed emissions limits, but it did not adequately explain why. It therefore acted arbitrarily and capriciously under Texas law,” it said. “Accordingly, we vacate Commission’s order granting the emissions permit at issue and remand for proceedings consistent with our opinion,” the order said. A spokeswoman for Sempra Infrastructure told LNG Prime in an emailed statement that the company is reviewing the decision and any potential impacts it may have to the Port Arthur LNG project. “We are continuing construction on the project under existing permits and remain committed to working with the Texas Commission on Environmental Quality and other stakeholders and are evaluating our next steps,” the spokeswoman said. Sempra Infrastructure took a final investment decision on March 20 for the first phase of the project in Texas worth about $13 billion.
Freeport LNG says second LNG jetty ready to return to service - Freeport LNG, the operator of the three-train 15 mtpa liquefaction plant in Texas, is ready to place back into service its second jetty.In October, Freeport received approval from the US FERC to start commissioning its second jetty.The commissioning and cooldown included the Loop 2 transfer piping, Dock, 2 and the recirculation piping.In order to continue Freeport’s sequential plan to return the LNG export facility to full commercial operations, Freeport now requests authorization from FERC to place Loop 2 and Dock 2 back into service, according to a filling dated November 17.“We anticipate nitrogen cooldown to be completed in the next few days, which will then be followed by introduction of hydrocarbons (i.e., LNG) in order to re-inventory the Loop 2 piping system,” Freeport said.Freeport anticipates having the Loop 2 system inventoried on or about November 21st.“Given this, Freeport would greatly appreciate FERC’s response to this request on November 21st so that Dock 2 can be returned to service,” it said.Any return to service would only proceed after the successful and safe completion of Loop 2 cooldown and re-inventorying, Freeport said.The LNG terminal operator noted that any authorization pursuant to this request will be limited to returning Loop 2 and Dock 2 to service and will not include the return to service of any other equipment at its facilities that remain idled from the June 8, 2022 incident, such as Tank 3.In February this year, the LNG terminal operator shipped the first cargo from its LNG export plant in Texas since the shutdown in June 2022.Freeport LNG received approvals from both FERC and PHMSA during the first quarter to restart Phase I operations.These consist of three trains, two LNG storage tanks (tanks 1 and 2), and a single LNG jetty (dock 1).
US natgas prices up 2% on surprise storage draw, colder forecasts | ロイター (Reuters) - U.S. natural gas futures climbed about 2% on Wednesday on a surprise storage withdrawal, forecasts for colder weather and higher heating demand over the next two weeks than expected, and as record amounts of gas keep flowing to U.S. liquefied natural gas (LNG) export plants. The U.S. Energy Information Administration (EIA) said utilities pulled 7 billion cubic feet (bcf) of gas from storage during the week ended Nov. 17. That compares with a withdrawal of 60 bcf in the same week last year and a five-year (2018-2022) average decline of 53 bcf. Analysts had projected that warmer-than-usual weather last week kept heating demand low enough to allow utilities to add 7 bcf of gas into storage, according to a Reuters poll. EIA released the storage report one day ahead of its usual schedule due to the U.S. Thanksgiving holiday on Thursday. Front-month gas futures for December delivery on the New York Mercantile Exchange rose 5.1 cents, or 1.8%, to settle at $2.897 per million British thermal units (mmBtu). On Tuesday, the contract closed at its lowest since Oct. 2 for a second day in a row. With production at record highs and ample amounts of gas in storage, the futures market has been sending signals that some traders have given up hope of seeing winter price spikes from November through March. The premium of futures for January over December NGZ23-F24 fell to 14 cents per mmBtu, its lowest since October 2022. In other news this week, the New York Independent System Operator (NYISO), the state's power grid operator, said four peaking plants in New York City need to keep operating to maintain reliability in the city for about two years beyond their planned May 2025 retirement. Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 107.5 billion cubic feet per day (bcfd) so far in November, up from a record 104.2 bcfd in October. Meteorologists projected the weather would swing from warmer than normal now to colder than normal from Nov. 24-Dec. 1 before turning warmer than normal again from Dec. 3-7. With colder weather coming, LSEG forecast U.S. gas demand in the Lower 48 states, including exports, would jump from 112.8 bcfd this week to 130.5 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday. Gas flows to the seven big U.S. LNG export plants rose to an average of 14.3 bcfd so far in November, up from 13.7 bcfd in October and a monthly record of 14.0 bcfd in April. The U.S. is on track to become the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar. Much higher global prices have fed demand for U.S. exports due in part to supply disruptions and sanctions linked to the war in Ukraine. Gas was trading around $14 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe and $16 at the Japan Korea Marker (JKM) in Asia.
Great Lakes oil spill researchers receive $3.8M from Canada - — The Canadian government has given nearly $4 million to researchers studying the behavior and impacts of oil spilled in the Great Lakes.Lake Superior State University (LSSU) in Sault Ste. Marie, Mich., announced the receipt of $3.87 million from Canada this week, which will fund collaborative research with Algoma University across the international border in Sault Ste. Marie, Ontario. The universities are lead partners in the new International Consortium on Oil Research for Our Waters of the North (ICOR-OWN), which operates out of LSSU’s expanding Center for Freshwater Research and Education campus along the St. Marys River in Sault Ste. Marie.The research center houses the U.S. Coast Guard’s new Great Lakes Oil Spill Center of Expertise, which opened in 2022 and is focused on oil spill preparedness and response.The money comes from a $30.3 million Canadian federal Oceans Protections Plan.Researchers are investigating the behavior and dispersal of heavy diluted bitumen, or dilbit, oil in freshwater, the impact of bioremediation in cold climates and coastal wetlands, and the use of drones and long-rang underwater autonomous vehicles in spill detection and monitoring.Partners in the research include The University of Windsor, University of Michigan, Memorial University, USGS, NOAA, the U.S. Coast Guard and the private firm Limnotech.Researchers are aided by the LSSU freshwater center’s “unique location at an international border and the nexus of the upper Great Lakes,” said center director Ashley Moerke. The research site is located between the Saint Marys Falls Hydropower Plant and a $31 million deep-water port under development to provide dockage for freighters and cruise ships.The LSSU freshwater research center was open in Sault Ste. Marie for less than a year when researchers aided the Coast Guard in its 2022 response to a 5,300 gallon oil spill in the St. Marys River from a steel mill on the Canadian side.
Oil leaking from pipeline off Plaquemines Parish coast - A pipeline on the floor of the Gulf of Mexico has been leaking oil for two days, the Coast Guard and the National Oceanic and Atmospheric Administration say. The leak was spotted Thursday morning 19 miles east of the mouth of Main Pass and reported by the pipeline owner, Main Pass Oil Gathering, a subsidiary of the Houston oil company Third Coast. Satellite images show the slick moved southwest on Friday, toward the mouth of South Pass. Main Pass Oil Gathering shut in a 66-mile segment of the pipeline system Thursday at 6 a.m. That segment runs from east to west to connect Gulf oil fields with coastal pipelines at the mouth of Main Pass. The company's pipeline system, completed in August 2022, carries 80,000 barrels of oil per day from offshore wells to the coast. The Coast Guard stood up a command center and a Joint Incident Command in Belle Chasse, to work with other government agencies and Main Pass Oil Gathering. It was unclear whether the pipeline was still leaking. Coast Guard Lt. Jason Yelvington said multiple overflights Friday suggest the surface sheen contained 291 barrels, or 12,222 gallons, of oil. He said there was no projected landfall of oil in the next 48 hours, but Clean Gulf Associates was sending three 95-foot skimmers to collect the oil on the surface. The first skimmer was in place Friday morning, Yelvington said.
US Coast Guard seeks source of some 1.1 million gallons of crude oil in Gulf of Mexico - The U.S. Coast Guard on Monday said it was still looking for the source of a leak from an underwater pipeline off the Louisiana coast in the Gulf of Mexico that it estimated had released more than a million gallons of crude oil. The 67-mile long pipeline was closed by Main Pass Oil Gathering Co (MPOG) on Thursday morning, after crude oil was spotted around 19 miles offshore of the Mississippi River Delta, near Plaquemines Parish, southeast of New Orleans. “Overflight teams observed visible oil Friday moving southwest away from the Louisiana shore,” the Coast Guard said, as oil recovery efforts continued and underwater devices surveyed the pipeline to find the leak’s source. While the exact volume of discharged oil was not known, the Coast Guard, which was leading the clean-up, said initial engineering calculations placed the volume of the leak at 1.1 million gallons, or 26,190 barrels. It added that there were no reported injuries or shoreline impacts so far, and the cause of the leak was under investigation. The U.S. Environmental Protection Agency said on Friday that the Coast Guard had activated the National Response Team, comprising 15 federal entities responsible for coordinating the response to oil pollution incidents. Third Coast Infrastructure, which owns MPOG, declined to comment on Friday and referred questions to the Coast Guard.
1.1 Million Gallons Of Crude Oil Spills Into The Gulf Of Mexico After Underwater Oil Pipeline Leaks Off Louisiana --On Monday, the United States Coast Guard said it was still seeking the cause of a leak from a submerged pipeline off the coast of Louisiana in the Gulf of Mexico, which it estimated had leaked over one million gallons of crude oil. Main Pass Oil Gathering Co (abbreviated MPOG) shut down the 67-mile pipeline on Thursday morning after the discovery of crude oil discovered 19 miles offshore of the Mississippi River Delta, close to Plaquemines Parish, southeast of New Orleans. The Coast Guard said Friday that visible oil was migrating southwest away from the Louisiana coast as oil collection activities continued and underwater gadgets examined the pipeline to determine the source of the breach. It also stated that no injuries or coastline impacts had been reported thus far and that the reason for the leak was being investigated. The Coast Guard launched the National Response Team, a group of 15 federal agencies coordinating the response to oil pollution disasters, according to the US Environmental Protection Agency on Friday. On Friday, Third Coast Infrastructure, which owns MPOG, refused to comment and forwarded queries to the Coast Guard.
US Coast Guard looking for source of pipeline leak in Gulf of Mexico - The US Coast Guard said on Tuesday it was still seeking the source of a leak from a pipeline linked to a Houston-based firm, off the Louisiana coast in the Gulf of Mexico which it estimated had released more than 1m gallons of crude oil. The 67-mile long undersea pipeline was closed by Main Pass Oil Gathering Co (MPOG) last Thursday after crude oil was spotted around 19 miles offshore of the Mississippi River Delta, near Plaquemines parish, south-east of New Orleans. The Coast Guard is leading a multi-agency response, which includes the US Fish and Wildlife Service. Local reports said oiled pelicans had been spotted in the area while overflights and boat surveys were part of the response, which included underwater devices looking at the pipeline. Operations of seven energy companies have been impacted by the spill, officials said.Third Coast Infrastructure, which reportedly completed the pipeline last year, has declined to comment about the spill and referred questions to the Coast Guard.On Tuesday at a news briefing, Coast Guard officials said the Houston firm was suspected of the leak and described it as “the responding party” but said investigations continued, with several operators in the area.MPOG is a subsidiary of Houston-based Third Coast Infrastructure, 50% of which is owned by private equity company IIF, and which is controlled by banking giant JPMorgan, according to the non-profit group Public Citizen, citing a ruling by the Federal Energy Regulatory Commission in September.Initial engineering calculations placed the volume of the leak at 1.1m gallons, or 26,190 barrels. “We’re not saying that was the exact amount. We are not going to know the exact amount of oil that was discharged into the Gulf of Mexico until we find the source,” Capt Kelly Denning, Coast Guard deputy commander for the New Orleans sector, told the media.Denning said it was yet to be established if Third Coast Infrastructure is responsible for the spill. “They’re [the] suspected responsible party but we won’t know until we find the source which is why we keep referring to them as the responding party,” said Denning.
Gulf of Mexico oil spill shuts in around 3% of daily output (Reuters) - Around 61,165 barrels of daily oil output from at least six producers, making up about 3% of crude oil production in the Gulf of Mexico, has been shut in by Third Coast Infrastructure's underwater pipeline leak, the U.S. Coast Guard said on Wednesday.The oil producers whose facilities are impacted include W&T Energy VI (WTI.N), Occidental Petroleum (OXY.N), Walter Oil and Gas, Cantium, Arena Offshore and Talos Energy Ventures (TALO.N), the Coast Guard said, citing the U.S. Interior Department's Bureau of Safety and Environmental Enforcement.The pipeline was closed by Third Coast's Main Pass Oil Gathering Co (MPOG) on Thursday morning after crude oil was spotted around 19 miles (30 km) offshore of the Mississippi River delta, near Plaquemines Parish, southeast of New Orleans.Remotely operated devices and divers had surveyed more than 23 miles (37 km) of the 67-mile-long (108 km) pipeline to find the leak's source, the Coast Guard said in its latest update, adding that no impact was observed on wildlife and the shoreline.While the exact volume of discharged oil was not known, the Coast Guard, which was leading the clean-up, said initial calculations placed the volume of the leak at 1.1 million gallons or 26,190 barrels.Officials said during a press briefing on Tuesday that it had not yet been established whether Third Coast was responsible for the spill, as oil recovery efforts continued.There were no reported injuries so far, and the waterway remains open to all commercial and recreational vessel traffic, officials added.The U.S. Environmental Protection Agency has said that the Coast Guard was coordinating with 15 federal entities in charge of responding to oil pollution incidents, while the National Transportation Safety Board was investigating the cause of the leak.
62,000 Barrel Gulf Oil Spill Is Worst Since Deepwater Horizon And 11th Largest In U.S. History -Offshore production from major oil names like Occidental, W&T Offshore and Talos Energy has been shuttered following a spill that Bloomberg is calling the worst in the US "since the Deepwater Horizon disaster."These producers took a significant hit on Thursday as they stopped approximately 62,000 barrels of daily oil production due to a subsea pipeline rupture. The rupture resulted in a substantial oil spill of 26,000 barrels, equivalent to the volume of two Olympic-size swimming pools, in the Gulf of Mexico near Louisiana, Bloomberg noted. If the magnitude of this spill is verified, it would mark the most substantial incident of its kind since 2010, when BP PLC's Deepwater Horizon rig catastrophe led to the release of 3.2 million barrels of oil off the coast of Louisiana. The report, citing the U.S. Coast Guard, said other firms impacted by the situation include Walter Oil & Gas Corp, Cantium LLC, and Arena Offshore LLC. These entities are now prohibited from resuming pumping activities until the source of the leak is securely identified and necessary repairs are completed, as outlined by the Coast Guard's statement. The initial report of the spill came on Thursday when Main Pass Oil Gathering Co., the pipeline operator, observed a decrease in pipe pressure. It remains uncertain whether Main Pass is indeed the origin of the spill since multiple operators operate in the vicinity. Nevertheless, the Coast Guard has labeled the incident as MPOG 11015, with reference to the company, the report said. If the size of the leak is confirmed, it would be the 11th largest in U.S. history. None of the involved companies responded to requests for comment from Bloomberg, though we're sure that many in the PR offices of these large conglomerates aren't quite having the relaxing Thanksgiving break they envisioned...
Biden still hasn't named a pipeline chief. Is regulatory push in peril? - A record-long vacancy atop the United States’ pipeline agency is raising concerns about the safety and oversight of infrastructure carrying carbon dioxide and natural gas at a time when the Biden administration is pushing to cut emissions.The White House has gone nearly three years without nominating someone to lead the Pipeline and Hazardous Materials Safety Administration. Tristan Brown has been running PHMSA since February 2021, but only as the acting or deputy administrator. The leadership at the top of the agency could influence the content and pace of several rules that could determine the safety and operations of pipelines affecting everything from gas supplies to carbon capture in the Midwest. They include a proposed leak detection and repair rule that aims to reduce emissions of methane and other gases from natural gas pipelines as well as a plan to enhance existing safety requirements for carbon dioxide pipelines. Some agency observers — and Biden administration critics — said they’re disappointed the White House hasn’t put forward a nominee to head the agency. “Politics is perception, and what does this say about the administration’s view of safety?” said Drue Pearce, director of government affairs at the law firm Holland & Hart and a former deputy administrator at PHMSA under the Trump administration. The White House did not address why President Joe Biden hasn’t nominated someone for the post when asked by E&E News for comments.The agency crafts and enforces regulations for 3.3 million miles of pipelines and shipments of hazardous materials. PHMSA’s pipeline safety program also has not been reauthorized by Congress. The current authorization ran out Sept. 30. Republicans on the House Energy and Commerce Committee released draft legislation in July for reauthorization. In September, Democrats called it “partisan draft legislation.” PHSMA said in a statement that pipeline safety activities are funded by “multi-year appropriations” and are ongoing.
Rising tide of Permian gas fuels price volatility in Texas Gulf Coast market The looming startup of Kinder Morgan's Permian Highway Pipeline expansion is promising to bring a flood of additional supply to the East Texas gas market, adding to recent price volatility there.Over the past five weeks, gas basis prices along the Texas Gulf Coast have been on something of a rollercoaster, fueled by a late third-quarter startup of the MPLX consortium's 500 MMcf/d expansion of Whistler Pipeline, and by recent pipeline maintenance in and around the Permian Basin. Both factors have pushed more Permian gas production eastbound into the Texas Gulf Coast market this fall.In an Oct. 31 earnings release, MPLX, joint owner and developer of the Whistler Pipeline, said the line's capacity expansion from 2 Bcf/d to 2.5 Bcf/d was completed at the end of the third quarter. Although MPLX provided no additional details regarding the commercial startup date for the expanded capacity, or the additional volume flowing on the line, an increase in eastbound flows has likely contributed to recent price volatility at hubs along the Texas Gulf Coast.In mid-October cash prices at Houston Ship Channel and Agua Dulce traded down to a roughly $1.50/MMBtu discount to Henry Hub and have seen significant volatility in the weeks since.Pipeline maintenance around the Permian Basin has likely added momentum to the daily price swings. Nov. 14-20, planned work on Kinder Morgan's Gulf Coast Express Pipeline restricted capacity by as much as 800 MMcf/d. In late October, the pipeline operator also cut capacity on its Permian Highway Pipeline, which restricted flows by up to 370 MMcf/d Oct. 22-31.In the forward gas market, traders appear to be betting that rising seasonal gas demand along the Texas Gulf Coast will more than offset any additional supply from the expected startup of Kinder Morgan's Permian Highway Pipeline expansion next month. According to the developer, the brownfield project should offer up to 550 MMcf/d in additional transport capacity before year-end 2023.At Houston Ship Channel, the November and December forwards contracts are currently trading at an average of just 27 cents below Henry Hub, as of Nov. 21 settlement. At Agua Dulce, the balance-of-year average is even higher – currently trending around 16 cents below Henry Hub. For the peak-winter heating months of January and February, both locations are pricing at a premium to Henry Hub, ranging from about 26 cents at Agua Dulce to 33 cents at Houston Ship Channel, Platts M2MS forwards data showed.
Could Fracking Lead To Massive Earthquakes In North Dakota? - Although fracking has been connected to earthquakes in the past, scientists believe that even tiny seismic tremors can be caused by the drilling process.Drillers use hydraulic fracturing, also known as fracking, to inject fluids underground in order to break through hard rock and access natural gas and oil below.Earthquakes may be caused by the pressure created by this process and the subterranean disposal of the wastewater that is produced as a result. Previous studies connected the fracking boom of the 2000s to an unprecedented number of earthquakes in Texas, Kansas, and Oklahoma, but they were unable to ascertain whether fracking also resulted in softer tremors. It was difficult to discern minute tremors brought on by fracking from other vibrations based on seismometer data. In Oklahoma, which has the most induced earthquakes in the United States, 2% of earthquakes can be linked to hydraulic fracturing operations.Tectonic plates make up the Earth. Fault lines exist where these plates converge. The San Andreas Fault Line in California is the most well-known in the country. It is the most active region for our nation and divides the Pacific and North American plates. Ninety percent of Earth's earthquakes occur along the Ring of Fire, which is where they happen.Violent and fatal earthquakes can occur along the San Andreas fault line. Consider San Francisco in 1989 as an example. A magnitude 6.9 earthquake resulted in approximately 3,800 injuries, 63 fatalities, and property damage estimated at $6 billion. There was only a fifteen-second earthquake. You may recall the August 2011 east coast earthquake, which was a noteworthy and recent event. With a magnitude of 5.8, it was located in central Virginia. It took nearly two years to repair the Washington Monument's cracks and other damage. Fortunately, there were only minor injuries and no fatalities, but the damage was estimated to be worth $200 million and was felt in 12 states. According to the North Dakota Geological Survey, an earthquake typically occurs in our state or is recorded from a distance once every ten years. In the history of the record, there have been 13; the majority have had magnitudes less than 3.7.
NTSB to Determine Cause of Southern California Oil Spill After Anchor Strikes on Pipeline --The National Transportation Safety Board (NTSB) will hold a virtual public board meeting next month to determine the probable cause of a crude oil release that occurred after anchor strikes on an underwater pipeline in San Pedro Bay near Huntington Beach, California.On October 1, 2021, crude oil began leaking from a crack that had developed in an underwater pipeline. The pipeline was shut down after oil was spotted on the surface of the water. According to the NTSB, approximately 588 barrels of oil leaked from the pipeline.Investigations later revealed that the pipeline had been dragged by a ship’s anchor likely during a storm on January 25, 2021, more than 9 months prior to the discovery of the oil spill. Surprisingly, the incident was never reported, and the pipeline remained uninspected until oil began washing up on Southern California beaches in early October 2021.Further examination by divers uncovered that a portion of the pipeline had been displaced by about 100 feet on the seafloor, with a 16-inch crack located approximately 4.7 miles west of Huntington Beach. Two containerships, MSC Danit and Beijing, were identified asparties of interest in the initial anchor dragging incident.The incident occurred as the San Pedro Bay anchorages were packed with ships waiting to enter the ports of Los Angeles and Long Beach amid the pandemic-induced imports surge that overwhelmed the nation’s supply chains and created an unprecedented backup off Southern California ports.MSC Mediterranean Shipping Company, the operator of MSC Danit, announced in April that it had settled claims with the subrogate insurers of Amplify Energy, the owner and operator of the pipeline. The Beijing is owned by Costamare and chartered to China’s COSCO.At the time of the settlement, MSC said the amount would be jointly funded by MSC and Costamare without admission of responsibility or liability for the environmental damage.Amplify Energy disclosed separately that it had received $85 million in net proceeds from the vessels that were believed to have struck the pipeline. The company last year agreed to plead guilty to criminal negligence charges and pay nearly $13 million related to the spill after it was discovered that the company continued to operate the pipeline for hours after leak alarms went off and then improperly restarted the pipeline after it had been shut down.At the meeting, which will take place December 5, NTSB board members will discuss safety issues associated with the incident. They will also vote on the probable cause and findings related to the crude oil release, as well as provide any necessary safety recommendations.
Alaska Senate Delegation Leads Effort to Restore Energy Production on Alaska’s North Slope - Alaska Native News -U.S. Senators Lisa Murkowski and Dan Sullivan (both R-Alaska) have introduced Alaska’s Right to Produce Act of 2023, legislation that would reverse the Biden Department of the Interior’s (DOI) decision to prohibit oil and gas development on 13 million acres within the National Petroleum Reserve-Alaska (NPR-A) and reinstate the lawfully awarded leases that the Biden DOI cancelled within the non-wilderness Coastal Plain of the Arctic National Wildlife Refuge (ANWR). Representatives Pete Stauber (Minn.-08), Mary Peltola (Alaska-At Large), August Pfluger (Texas-11), and Kevin Hern (Okla.-01) introduced companion legislation in the House.The legislation addresses two of the most onerous of the 56 anti-Alaska actions taken by the Biden administration in direct contravention to Alaska-specific federal laws. The senators argue the Biden DOI’s decisions lack scientific backing or consultation with Alaska Native stakeholders who live in the region, and come at a critical geopolitical moment when energy security is more necessary than ever.“Just last week, I hosted leaders of the Voice of the Arctic Iñupiat, Iñupiat Community of the Arctic Slope, the North Slope Borough, and the Arctic Slope Regional Corporation here in D.C. to elevate their voices and bring attention to their communities’ strong opposition to the Biden administration’s illegal cancellation of lawfully-issued leases in ANWR, and the NPR-A rule that will lock up their lands,” Senator Sullivan said. “There is palpable anger and frustration among Alaskans about the Biden administration’s unrelenting assault on our economy and our ability to lawfully access our lands. This is a grave injustice to the people who actually live on the North Slope. They have been disregarded entirely during this process and denied consultation as the Biden administration locks up their lands. Alaska has a right to produce our own energy for the sake of quality economic opportunities and good-paying jobs, and for the energy security of the entire nation.” “Alaskans are deeply frustrated with the Biden administration’s repeated pushback of responsible resource production in our state,” said Senator Murkowski. “There is no better example than what we see happened on the North Slope now—illegally canceling valid leases in ANWR and pushing to foreclose future development in our petroleum reserve—while wholly neglecting the voices of the Alaska Natives who actually live there, all while loosening restrictions on the likes of Iran and Venezuela. Alaskans must be able to produce our vast resources for the good of the nation and our allies, and I’m pleased to be able to join Senator Sullivan and Congresswoman Peltola in this effort.” Under the Tax Cuts and Jobs Act (TCJA), former President Donald Trump established an oil and gas leasing program in ANWR. The TCJA restricted energy development in the Coastal Plain of ANWR to 2,000 acres, and production could result in the development of an estimated 10.4 billion barrels of oil.On September 6, 2023, the Biden DOI announced plans to cancel all seven remaining oil and gas leases issued under the Trump administration in ANWR while concurrently locking up 13 million of acres within the NPR-A from oil and gas production. Both actions were taken without notice to the Alaska Native communities most impacted by these decisions.
EIA Boosts Global Liquid Fuels Output Forecasts -- The U.S. Energy Information Administration (EIA) increased its global liquid fuels production forecast for 2023 and 2024 in its latest short term energy outlook (STEO). Total world production is now expected to be 101.54 million barrels per day this year and 102.55 million barrels per day next year, the November STEO revealed. Global output is anticipated to average 102.05 million barrels per day in the fourth quarter of 2023, 101.85 million barrels per day in the first quarter of 2024, 102.25 million barrels per day in the second quarter, 102.98 million barrels per day in the third quarter, and 103.12 million barrels per day in the fourth quarter, according to the STEO. In its previous STEO, which was released in October, the EIA projected that global liquid fuels production would be 101.26 million barrels per day in 2023 and 102.19 million barrels per day in 2024. That STEO saw output averaging 101.56 million barrels per day in the fourth quarter of 2023, 101.53 million barrels per day in the first quarter of next year, 101.94 million barrels per day in the second quarter, 102.58 million barrels per day in the third quarter, and 102.73 million barrels per day in the fourth quarter. The EIA’s latest STEO highlighted that global liquid fuels output averaged 99.99 million barrels per day in 2022. “We forecast global liquid fuels production will increase by 1.0 million barrels per day in 2024, down from growth of 1.6 million barrels per day this year,” the EIA noted in its November STEO. “Although we forecast global oil production to grow next year, we expect ongoing cuts from OPEC+ will keep global production growth lower than global consumption growth and contribute to inventory draws and upward oil price pressure in the early part of 2024,” it added. “Growth in global crude oil supply has been limited in 2023 because of voluntary production cuts from Saudi Arabia and ongoing production cuts from other OPEC+ countries, which raised OPEC’s spare crude oil production capacity from 2.4 million barrels per day in 2022 to a forecast of 4.3 million barrels per day in 2024,” the EIA continued, stating that Saudi Arabia and the United Arab Emirates hold most of this capacity. In the STEO, the EIA highlighted that Russia’s output stabilized in mid-2023 at around 10.6 million barrels per day and said it assumes the country’s oil production will remain relatively flat over the remainder of its forecast period at an average of 10.7 million barrels per day. The EIA warned in the STEO that “heightened uncertainty around the recent attacks on Israel and the potential for tensions spreading to a wider area in the Middle East poses risks to oil supply, including available surplus production capacity”. “At this time, we have not materially changed our oil production forecast for countries in the region, but the geopolitical situation could change rapidly,” the EIA said in the STEO.
Crowd gathers outside BC NDP convention to protest fracking - Victoria Times Colonist -- About 250 people gathered outside the B.C. New Democratic Party convention on Saturday to call on the government to end fracking, a process used to extract natural gas from rock. Those at the rally said the emissions from the province’s oil and gas industry expansions will fuel climate disasters such as wildfires and floods. Protesters chanted “NDP, go frack free” above the din of construction near the Victoria Conference Centre, where the convention was held. A resolution to end fracking in B.C. sponsored by 14 electoral district associations did not reach the floor during the party’s resolution debates on economy and climate on Saturday.
Canadian Court Hands Victory to Petchem Industry, Striking Down ‘Unconstitutional’ Environmental Rules - Alberta and Saskatchewan have secured a Canadian court victory, to turn back environmental challenges and support the petrochemicals sector, which is a top natural gas customer. Federal Court Justice Angela Furlanetto revoked as “unreasonable and unconstitutional” an April 2021 Canadian cabinet regulation that rated all petrochemical items as “toxic” and launched restrictions on popular product lines. The regulations, set to take effect on Dec. 20, would ban single-use plastic drinking straws, eating cutlery, food packaging, grocery checkout bags and stir sticks. Petrochemical plants draw heavily on natural gas liquids byproducts, such as ethane and propane, to make the items. .
Chihuahua Government Backs Mexico Pacific’s Proposed 2.8 Bcf/d Sierra Madre Natural Gas Pipeline - (see map) Mexico Pacific Ltd. LLC has reached an agreement with the government of Chihuahua state to facilitate development of the proposed 2.8 Bcf/d Sierra Madre natural gas pipeline. Sierra Madre would supply Permian Basin gas from the U.S. border across the states of Chihuahua and Sonora to Mexico Pacific’s proposed Saguaro Energía LNG export terminal envisioned for Puerto Libertad on the Sonoran coast. Under the agreement, “the government of Chihuahua will continue to pave an efficient path for the commencement of construction of this historic project in the coming months, marking yet another significant milestone in the progression of energy infrastructure for the state,” Mexico Pacific said.
Mexico’s Abundant Natural Gas Resources Said Enough to Meet Demand for 100 Years - Mexico has enough prospective natural gas resources in its basins to meet the country’s daily demand for the fuel for the next century, according to Commissioner Hector Moreira of the Comisión Nacional de Hidrocarburos (CNH). Moreira, a chemical engineer, previously served as the deputy minister of hydrocarbons at the Mexican Energy Ministry (Sener) and an adviser to the board of directors of state oil company Petróleos Mexicanos (Pemex). He spoke recently about the nation’s gas resources in Mexico City. If Mexico were to prioritize natural gas exploration and production (E&P), the country could become more energy self-sufficient and could reduce its dependence on imports from the United States, he said.
Panama Logjam Could Benefit Europe as USA LNG Cargoes Avoid Asia -- The congestion at Panama Canal could be to Europe’s benefit as US liquefied natural gas supplies will largely bypass Asia. The price gap between the Asian spot LNG price and the European gas benchmark for January has widened in recent weeks, but it’s not enough to encourage shipping American gas to Asia via longer routes through the Suez Canal or the Cape of Good Hope, according to S&P Global Commodities Insights. “The opportunity to sell more profitably to Asia over Europe from the US depends on your access to Panama Canal slots,” said Ciaran Roe, a global director for LNG at S&P. “If you have these, then your costs may be sufficiently low to send the cargo to Asia more profitably than to Europe for January arrivals, otherwise it’s more profitable for cargoes to go to Europe.” The glut of LNG shipments in the Atlantic that pushes prices lower at the height of the heating season would be an advantage for Europe. The development would also ease fears that Asia may pull fuel away from the continent during the frigid winter. The gap between Asian spot LNG and the super-chilled fuel delivered into northwest Europe is about $3 per million British thermal units now, Roe added. A difference of only $2.40/MMBtu makes it more profitable to ship a US cargo to northeast Asia over northwest Europe. But to make a shipment more profitable via Suez or the Cape, the price gap needs to be around $3.7/MMBtu or above, he said. The Panama Canal is a vital shipping route for LNG supplies from the US — the world’s top exporter — to north Asian nations such as Japan, Korea and China. However, a record drought, coupled with projections of poor rainfall for the rest of year, has limited traffic drastically. While some vessels have paid record-high prices in auctions to jump the queue, most others are avoiding the waterway altogether, opting for longer voyages rather than adding weeks of waiting. From December, LNG shippers face even higher uncertainties in securing a transit slot, as they lose top priority to container vessels, according to BloombergNEF. That means the number of LNG tankers passing through the route could even drop to zero in January when auctions for slots will no longer be held, it said. US LNG is free of destination restrictions and can be redirected anywhere, depending on demand and prices. For example, the Panama Canal congestion cost on the journey from Sabine Pass in the US to Futtsu in Japan makes up almost a third of total shipping costs in January, at $5.6 million, data from Spark Commodities show, taking into account delays of 29 days for a return trip. While arbitrage opportunities could still make it lucrative for holders of US-origin LNG to direct cargoes to Asia instead of Europe, full inventories in Asia are another factor in play, according to Rystad Energy. “With inventory levels at several major LNG import terminals in China and South Korea currently high, LNG suppliers are struggling to find buyers willing to purchase cargoes,”
Argentina's New President Promises to Unleash Shale Gas & Oil | Marcellus Drilling News -- Watch out Marcellus/Utica, and Haynesville, and Permian, and Eagle Ford, and Bakken, and SCOOP/STACK, and other major U.S. shale plays. You may have a new competitor coming (way) south of the border. Argentina has just elected a new President, Javier Milei, who promises to unleash his country’s oil and gas industry. Argentina is reputed to have the world’s second-largest deposit of shale gas in the world (and the fourth-largest deposit of shale oil). If Milei follows through and is successful in unleashing shale energy, Argentina could become an LNG exporting powerhouse, competing with the U.S. Hey, maybe a little competition is what we need to overcome the cancer of leftist global warming flummery that holds back our own O&G industry.
Brazil’s Petrobras to invest over $100bn in next five years - Brazil’s state-owned oil and gas company Petrobras plans to invest $102bn (500.15bn reais) over the next five years as part of its strategic plan for the 2024–28 period. The capital expenditure (capex) plan is 31% higher than the previous plan and the increase is mainly associated with new projects, including potential acquisitions, and cost inflation, among others. With 72% of the total, capex for the E&P segment is the highest. It is followed by 16% for refining, transportation and marketing (RTM), 9% for gas and low-carbon energies and 3% for corporate expenses. “Oil and natural gas commodities will continue to be the main drivers of value, with economic and environmental resilience, financing the just transition. Profitable low-carbon investments will gain relevance for long-term value generation,” the energy company said in its announcement. Petrobras said that of the $73bn in E&P capex, more than 67% is allocated to the pre-salt segment, which produces higher-quality oil and emits less greenhouse gases. A total of $7.5bn is allocated for exploration throughout the five years, with $3.1bn going towards exploration in the Equatorial Margin, $3.1bn going towards exploration in the Southeast Basins, and $1.3bn for other countries. The energy company plans to drill around 50 wells as part of this investment in regions where it has secured exploration rights. In the next five years, Petrobras aims to produce 3.2 million barrels of oil and gas equivalent per day with this plan. Over the five years, $17bn will go towards RTM to increase the capacity for producing diesel and expand the supply of goods for the low-carbon market. Capex for the gas and energy segment is $3bn, with the aim of expanding the infrastructure and portfolio of natural gas. Up to $11.5bn will be allocated for low-carbon initiatives aimed at decarbonising activities, as well as the growing low-carbon energy businesses, with a focus on hydrogen production, wind, solar power, biorefining, and carbon capture, utilisation, and storage.
East Med Gas Pipeline Resumes Operations After Month-Long Halt | Pipeline Technology Journal The East Mediterranean Gas (EMG) pipeline, which transports natural gas from Israel to Egypt, has resumed operations after a month-long halt caused by Israel's war with Hamas militants in Gaza, Reuters reported on Tuesday.Chevron Mediterranean Limited (CML), the operator of the EMG pipeline, confirmed in a statement that natural gas flow through the pipeline had resumed on November 14, 2023, after exports via the pipeline were initially halted on October 10, three days after the conflict began.The EMG pipeline runs from the southern Israeli town of Ashkelon, located approximately 10 kilometers (6 miles) north of Gaza, to El-Arish in Egypt, where it connects to an onshore pipeline.Stretching approximately 90 kilometers (56 miles), the EMG pipeline connects the Chevron-operated Leviathan offshore gas field in Israel to El-Arish in Egypt, where it joins an onshore pipeline network. The Leviathan consortium comprises operator Chevron, Israel's NewMed Energy, and Ratio Energies.Chevron had previously announced on Monday that it had resumed natural gas supply from the offshore Tamar field, one month after being instructed by Israeli authorities to halt operations due to the regional unrest.The resumption of natural gas flows through the EMG pipeline marks a significant step in restoring energy supplies to Egypt, which has been grappling with energy shortages in recent years. The pipeline is expected to play a crucial role in diversifying Egypt's energy sources and reducing its reliance on imported liquefied natural gas (LNG).Chevron's decision to restart gas deliveries from Tamar and the EMG pipeline highlights the company's commitment to ensuring a stable and reliable energy supply to its partners in the region. The resumption of operations is also a positive indicator of the region's resilience and its ability to bounce back from periods of conflict and instability.
Egypt to resume LNG exports after rise in supply from Israel - Egypt is about to start exporting LNG again as supplies from Israel have increased, reported Bloomberg.According to Bloomberg ship-tracking data, the Adam LNG ship has arrived at the North African nation’s Idku facility.The development marks Egypt’s return to international LNG exports after a months-long gap, sources told the publication.Resumption is expected to increase gas supplies to Europe and support LNG prices on the continent.Before the summer break, Egypt had stated that exports will resume in October due to a surge in domestic demand.However, last month’s export plans were shelved, and only modest amounts of LNG were shipped from Idku’s storage tanks in the wake of Hamas’ attacks on Israel in early October.
Shell hits gas offshore Egypt - LNG giant Shell has discovered natural gas in Egypt’s North East El-Amriya block, located in the Mediterranean Sea. Shell’s unit in Egypt said in a statement it had successfully completed the drilling of the first well in its three-well exploration campaign, Mina West, in the North East El-Amriya block. Drilling activities took place at a water depth of around 250 meters below sea level in the offshore Nile Delta, with primary data confirming the presence of gas-bearing reservoir, according to Shell Egypt. The company said that further evaluation of the acquired data is required to determine the size and recoverable potential of the discovery. Shell has contracted the Stena Drilling for mobile offshore drilling unit – Stena Forth rig – to carry out the drilling campaign.
Qatar Pulls Europe Closer with Spate of LNG Supply Deals - Even as Qatar faces criticism over its links to Palestinian militant group Hamas, Europe is increasingly tying its future energy security to the natural gas-rich state. Energy Aspects’ James Waddell said Israel’s war against Hamas is “concerning for European buyers,” but not enough for them to stop signing long-term liquefied natural gas deals with Qatar. He said there is still a “fairly low likelihood” that the Strait of Hormuz, through which Qatari cargoes pass, will be disrupted by the conflict. Last month, Europe’s long-term relationship with Qatar was further solidified after QatarEnergy signed three 27-year deals to supply Eni SpA, Shell plc and TotalEnergies with LNG for delivery to the continent starting in 2026. All three majors are stakeholders..
Fracking currently holds only limited potential in Germany “According to economic estimates, fracking could cover around 6 to 12 percent of Germany’s gas consumption,” says Karen Pittel, Director of the ifo Center for Energy, Climate, and Resources. But first, Germany would have to lift its ban on fracking and invest in the industry this would create. It could take anywhere from 5 to 9 years to go from the planning stages to the first extraction of natural gas, Pittel says. However, as Germany aims to achieve its climate neutrality goals by 2045, demand for natural gas is expected to drop significantly from 2030 onward. “Given the limited time frame, investment in natural gas production is problematic as a commercial proposition,” Pittel says. According to an expert panel, fracking operations from unconventional reservoirs generally run for 20 to 30 years due to the high extraction costs. The operating costs for fracking in Germany are estimated to be between EUR 26 and 43 per megawatt-hour. The industry would be competitive if the actual price of natural gas were at the top end of current forecasts, which for 2030 are between EUR 18 and 59 per megawatt hour. “Private investment from companies would require planning certainty,” Pittel says, “but this is something that fracking in Germany cannot offer.”
SNB Faces Anger over Reported $9B Fracking Investment | Rigzone The Swiss National Bank has been slammed for what a coalition of environmental NGOs says is its $9 billion investment in 69 oil and gas fracking companies. Fracking accounts for over half of SNB’s roughly $16 billion invested in fossil fuel extraction, according to the report published by SNB Coalition and Climate Alliance Switzerland. A spokesperson for the SNB declined to comment. An SNB spokesman told Le Matin Dimanche which wrote about the report earlier on Sunday that its investment policy is in line with “fundamental norms largely accepted in Switzerland” and that it’s constantly reviewing its portfolio. Fracking, which uses high-pressure liquid to release fossil fuels underground, triggered a huge boom in shale oil and gas in the US. But it has faced significant opposition, particularly in densely populated parts of Europe, because of the risks it can destabilize the ground and Switzerland is no exception. Fourteen of Switzerland’s 26 cantons that reject fracking are also home to 69 percent of the population and own about 27 percent of SNB shares, according to the NGOs. “Due to the broadly supported rejection of fracking by cantonal governments and the population, it can be considered a norm and value of Switzerland, which the SNB should also respect,” they said.
Full production returns to affected LNG train at Chevron's Gorgon facility (Reuters) - Full production has returned to a liquefied natural gas (LNG) train at Chevron's Gorgon facility in Western Australia, a company spokesperson said on Wednesday. On Oct. 31, an "electrical incident" at a substation providing power supply to the facility had curtailed the output of one of the three LNG production trains at Gorgon to 80% of capacity. The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. Production at Train 3 had resumed "over the past few days," said the Chevron spokesperson. The output reduction at the train however did not affect domestic gas and the other two LNG production trains at Gorgon. Gorgon exports LNG to customers across Asia and produces domestic gas for the Western Australian market. It has three LNG trains, or production units, with a total capacity of 15.6 million metric tons per year. It also has a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.
Chevron says third Gorgon LNG train returns to full production - The third liquefaction train at Chevron’s giant Gorgon LNG plant in Western Australia has returned to full production, Chevron told LNG Prime on Wednesday. A Chevron spokesperson said that Gorgon Train 3 had returned to full production “over the past few days.” The spokesperson did not provide any additional information. Earlier this month, Chevron said that an electrical incident occurred on October 31 in a substation which provides power supply, resulting in the plant’s third train to produce at 80 percent capacity. Chevron said domestic gas and the remaining two LNG production trains at the Gorgon plant were unaffected. The Gorgon LNG plant on Barrow Island has three trains and a production capacity of some 15.6 mtpa.
Japan boosts LNG imports in October - Japan’s monthly liquefied natural gas (LNG) imports increased in October compared to the same month last year, according to the provisional data released by the country’s Ministry of Finance.The country’s LNG imports rose by 6.4 percent year-on-year in October to about 5.41 million tonnes, the data shows.LNG imports dropped compared to 5.52 million tonnes in the previous month, which also marked an increase compared to the previous year.Japan’s coal imports for power generation decreased in October compared to the last year.Coal imports were down by 5.1 percent to 8.61 million tonnes, and Japan paid about $1.62 billion for these imports, a drop of 52.4 percent compared to the last year, the data shows.State-run Japan Oil, Gas and Metals National Corp (JOGMEC) said the average price of spot LNG cargoes for delivery to Japan contracted in September 2023 and scheduled to be delivered from the month onward was $14.2/MMBtu, JOGMEC said.This compares to $12.2/MMBtu in September.Also, the average price of spot LNG cargoes that were delivered in Japan within the month of October regardless of the month when the contract was made (arrival-based price) was $12.8/MMBtu, compared to 11.9/MMBtu in the prior mont.
Oman LNG seals supply deal with BP - State-owned producer Oman LNG has signed a deal to supply liquefied natural gas to UK-based energy giant BP. Oman LNG announced the signing of the sales and purchase agreement on Tuesday. Under the SPA, Oman LNG will supply 1 million metric tonnes per year of LNG to BP for a period of nine years starting in 2026, it said. The LNG producer did not provide any additional information. Oman LNG, in which the government of Oman hold 51 percent recently signed shareholding deals with international companies, including Shell and TotalEnergies. Based on these agreements, Oman LNG’s shareholding structure will continue with Oman Investment Authority, Shell, TotalEnergies, Korea LNG, Mitsui & Co., Mitsubishi, PTTEP, and Itochu. These agreements followed Oman LNG’s large marketing campaign aimed at renewing all of its contracts post 2024. In August, Oman LNG signed deals to supply LNG to OQ Trading and Shell, completing the campaign with a total volumes of 10.4 mtpa. Following the signing of the deals, Shell will become Oman LNG’s largest off-taker post 2024 and will purchase up to 1.6 mtpa from Oman LNG from 2025 to 2034. Besides these contracts, Oman LNG signed a deal with German gas importer Securing Energy for Europe (SEFE) and a deal earlier this year with China’s Unipec, a unit of state-owned energy giant Sinopec. Oman LNG also signed term sheets with Turkey’s Botas and its shareholders TotalEnergies and PTT. In addition, Oman LNG signed key term sheets in December to supply LNG to Japan’s Jera, Mitsui, and Itochu. The firm operates three LNG trains in Qalhat with a nameplate capacity of 10.4 mtpa sourcing gas from the central Oman gas field complex. Due to debottlenecking, the company’s complex now has a production capacity of around 11.4 mtpa.
Pakistan launches tender for one spot LNG cargo - State-owned Pakistan LNG has released a tender inviting firms to submit bids for one spot LNG shipment for delivery in January.Pakistan LNG is seeking one 140,000 cbm cargo on a delivered ex-ship (DES) basis and the delivery window is January 8-9, 2024, according to a document released on November 20.Also, the potential tender winner will deliver the cargo to the FSRU BW Integrity serving Pakistan GasPort’s terminal in Port Qasim, Karachi, or the Energo Elengy facility.The tender closes on November 24.Prior to this tender, Pakistan LNG received offersfrom traders Trafigura and Vitol for two spot cargoes with deliveries on December 7-8 and December 13-14.Trafigura was the only firm to submit an offer for the delivery on December 13-14 and it offered a price of $19.3900/MMBtu.Vitol offered the lowest price of 15.9700/MMBtu for the December 7-8 delivery.
Spot LNG shipping rates down for first time in four weeks, Spark says -Spot liquefied natural gas (LNG) freight rates fell this week for the first time in four weeks, according to Spark Commodities.Last week, LNG shipping rates increased but the rate of increase slowed compared to the previous weeks.The Spark30S Atlantic increased by $750 to $165,750 per day, while the Spark25S Pacific increased by $2,250 to $152,500 per day.“LNG freight rates fell this week for the first time in four weeks, with a 3 percent week-on-week decrease in the Atlantic,” Qasim Afghan, Spark’s commercial analyst told LNG Prime on Friday.Afghan said that the Spark30S Atlantic decreased by $5,000 to $160,750 per day, while the Spark25S Pacific decreased by $750 to $151,750 per day.As per European LNG pricing, the SparkNWE DES LNG front month also declined from the last week.The NWE DES LNG for December was assessed last Friday at $14.289/MMBtu and at a $0.825/MMBtu discount to the TTF.“The SparkNWE DES LNG price for December delivery is assessed at $13.801/MMBtu and at a $0.815/MMBtu discount to the TTF,” Afghan said. “This is a $0.488/MMBtu reduction in DES LNG price, with the discount to the TTF remaining almost unchanged, when compared to last week’s December prices,” he said.According to Platts data, JKM, the price for LNG cargoes delivered to Northeast Asia, dropped from the last week.JKM for January settled at $17.100/MMBtu on Thursday.
Golar's FLNG leaves Singapore to start Tortue job - Golar LNG’s converted floating LNG producer, Gimi, which will serve the first phase of BP’s Greater Tortue Ahmeyim FLNG project offshore Mauritania and Senegal, has finally left Seatrium’s yard in Singapore, according to shipping data.According to a statement by Golar, the FLNG departed the yard on Sunday.Gimi is now sailing under its own propulsion, supported by an escort tug, toward BP’s purpose-built Greater Tortue Ahmeyim hub offshore Mauritania and Senegal, it said.Golar expects the voyage to take around 60 days, including refueling stops in Mauritius prior to rounding the Cape of Good Hope and in Namibia prior to its arrival.Upon arrival, Gimi will notify BP that it is ready to be moored and connected to the hub, which is expected to trigger the start of contractual cash flows under the 20-year lease and operate agreement on the GTA field, Golar said. Back in February 2019, Golar entered into the deal with BP for the charter of the FLNG.Gimi was converted from a 1975-built Moss LNG carrier with a storage capacity of 125,000 cbm.This is the world’s second converted floating LNG producer and joins Golar’s Hilli, also converted by Seatrium and currently located offshore Cameroon’s Kribi.It will produce up to 2.7 million tonnes of LNG per year, using the Black & Veatch “Prico” liquefaction process.Golar said in August that it expected the 293 meters long converted floating LNG producer to leave Seatrium’s yard in Singapore in September and after that it moved the departure to October.
Russia's Gazprom plans investment cut as exports drop --Russian state-owned energy giant Gazprom said Thursday it planned to cut investment spending by a fifth next year amid dwindling gas flows to Europe and a heavy tax burden. Since Russia launched its assault on Ukraine in February 2022, European countries have sharply cut gas imports from Russia in a bid to curb Moscow's ability to fund the conflict. The Kremlin has relied on oil and gas export revenues to fund its offensive in Ukraine, and last year announced massive tax hikes on the industry to cover its budget. While Gazprom has shifted some of its exports to China and Turkey, it slashed its gas production by a quarter in the first half of this year as it struggled to make up for lost sales. Its investment programme for next year, spent on energy projects and infrastructure, will drop about 20 percent year-on-year to 1.57 trillion rubles ($17.8 billion), the company said. "The approved financial plan will ensure Gazprom covers its liabilities without a deficit and in full," it said in a statement. Gazprom's losses could reach 1 trillion rubles in 2025 due in part to the heavier tax burden, ruling party lawmaker Pavel Zavalny warned earlier this month. The company posted a profit of 296 billion rubles in the first half of this year, a fraction of the 2.5 trillion rubles in profits it earned in the first half of 2022.
Sanctioned oil tankers ship Russian oil to India – In recent months, three oil tankers recently sanctioned by the US shipped Sokol crude oil from Russia’s Far East to the biggest oil refiner in India.According to ship tracking data from LSEG and Kpler, the Kazan, Ligovsky Prospect andNS Century discharged Sokol crude to Indian Oil Corp in September. Two of the ships also made the trip to India in September.On Thursday, Washington placed sanctions on the three vessels for transporting Russian oil above the price cap. The price cap was introduced in 2022 and bars Western companies from buying, insuring or transporting Russian crude above $60 per barrel. Deputy Secretary of the Treasury Wally Adeyemo said: “Shipping companies and vessels participating in the Russian oil trade while using Price Cap Coalition service providers should fully understand that we will hold them accountable for compliance.”Several traders who wished to remain anonymous told Reuters that the sanctions may hinder the shipping of Russian oil in the short term, but they are unlikely to stop it altogether as long as trade in Russian oil remains lucrative.Another trader said that India may turn to the Mediterranean and the North Sea to replace Russian Sokol.India has sought to make the most of discounted Russian oil since the beginning of the war in Ukraine when Western nations stopped buying from Moscow. In the first half of the 2023/24 fiscal year, overall imports rose by around two-fifths, and Russia was the top oil supplier to India from April to September. On India’s geopolitical relationship with Russia, Felix K Chang, senior fellow at the Foreign Policy Research Institute, said: “It (India) sharply boosted its purchases of Russian commodities, from fertilizer to steel. Most notably, India went from being a negligible importer of Russian oil in 2021 to being the biggest in 2022.”
India's October crude oil imports rise after four months of declines -- India's crude oil imports rose in October, after falling in the previous four months, as the world's third biggest oil importer and consumer shipped in more fuel to meet winter demand, Petroleum Planning and Analysis Cell (PPAC) data showed on Thursday. Crude imports in October rose 5.9% month-on-month to 18.53 million metric tons, rebounding from a one-year low in September. India's fuel consumption also rose to a four-month high in October, as increased industrial activity boosted sales during the festive season and the onset of winter, government data showed earlier in the month. "With demand picking seasonally up as we approach the end of the year, there was a higher need to import more crude to cover higher demand for refined products," said UBS analyst Giovanni Staunovo. The year-on-year rise in imports is due to the rise in domestic demand, supported by solid economic growth, Staunovo added. Data from the PPAC website also showed product imports rising 13.4% to 4.41 million tons from October last year and product exports 12.6% higher over the same period to 4.47 million tons. On a monthly basis, product imports rose 7.6% in October, while exports fell 7%. OPEC's share in India's oil imports in October hit a 10-month high as refiners bought more crude from Saudi Arabia and the United Arab Emirates after discounts narrowed for Russian oil that month, trade data showed. Indian refiners have slowed Russian oil imports in recent months from the nearly 2 million barrels per peak seen earlier this year as discounts have narrowed.
Greek shippers exit Russian oil trade as U.S. tightens price cap scrutiny - Three major Greek shipping firms have stopped transporting Russian oil in recent weeks in order to avoid U.S. sanctions now being imposed on some shipping firms carrying Russian oil, four traders told Reuters and shipping data showed. The development is a blow to Russia as it narrows the number of shipping firms that are ready to transport Russian oil to consumers in Asia, Turkey, the Middle East, Africa and South America – although traders said Moscow still had enough shipping firms for now. Greek shippers Minerva Marine, Thenamaris and TMS Tankers have stopped transporting Russia oil in recent weeks, the four traders said. Thenamaris said it doesn’t comment on commercial matters. Minerva Marine and TMS Tankers didn’t respond to requests for comment. All three firms were active shippers of Russian oil and fuels up until September-October when they started scaling down their involvement, according to the traders and data from shipping agents seen by Reuters. All three companies turned down requests for vessels for Russian crude loading in November and later, said the traders, who previously collaborated with the three firms. The Greek shippers’ exit from the trade followed tighter U.S. sanctions imposed on Russian oil shipments. In October, Washington imposed the first sanctions on owners of tankers in Turkey and the United Arab Emirates carrying Russian oil above the G7’s price cap of $60 a barrel. Last week, it imposed sanctions on three more ships. The G7 countries introduced a price cap on Russian oil in late 2022, but had not previously enforced it. The price cap allows Western firms to provide shipping and insurance services for Russian crude as long as the oil is sold below $60 per barrel. The cap is designed to limit Russian export revenues. Russia’s main export grade, Urals, has been trading above the $60 per barrel cap since mid-July amid production cuts by the OPEC+ group of oil producing countries, prompting many market watchers to say the price cap wasn’t working. Russia’s Pacific ESPO Blend crude oil grade has also traded above the cap, according to U.S. Treasury data. The three Greek firms had been shipping Russian oil for decades and continued to do so when most other Western companies quit running the routes to avoid rising sanction risks and the imposition of the price cap.
Russia’s oil and gas budget revenues seen down 40% in Nov. m/m – Reuters calculations - Proceeds from oil and gas sales for Russia’s federal budget are likely to be almost 40% lower this month than in October due to cyclical payments of profit-based tax and the restoration of subsidies for refineries, Reuters calculations showed. The proceeds could total some 1 trillion roubles ($11.15 billion) in November, down from 1.63 trillion roubles last month, but up from 0.87 trillion roubles in October 2022. The finance ministry is expected to disclose the November budget proceeds in early December. Russia’s energy revenues have been squeezed by Western sanctions, such as price caps and an embargo on seaborne oil exports, and by the closure of the Nord Stream gas pipelines to Europe, which were blown up in September 2022. Investigators have yet to establish who was responsible for the blasts. Reuters’ calculations are based on data from industry sources and official statistics on oil and gas production, refining and supplies on domestic and international markets. Proceeds from oil and gas sales are crucial for Russia’s commodity-oriented economy and for the financing of what Moscow calls its special military operation in Ukraine. Still, their share in the budget has been declining, accounting for 41.6% of total budget revenue in the whole 2022, while in January-September of this year, oil and gas sales accounted for 28.3% of total proceeds of 19.73 trillion roubles. Russia’s oil and gas revenues in October more than doubled to 1.635 trillion roubles from 739.9 billion roubles in September thanks to profit-based tax payments totalling 0.59 trillion roubles. November proceeds will also decline thanks to the reinstatement of damper payments to refineries totalling some 125 billion roubles to compensate for selling the fuel on the domestic market instead of as more lucrative exports.
Philippine tanker spill claims bill tops $50m - More than 30,000 claims have been registered from the local fishing industryA tanker spill in the Philippines earlier this year has led to 35,500 separate claims totalling more than $50m. The 1,143-dwt Princess Empress (built 2022) sank off Oriental Mindoro in February, leading to widespread oil pollution. According to data released at the International Oil Pollution Compensation Funds’ November meeting, 35,500 claims have been made up to now against the spill. Oil pollution compensation claims of PHP 1.4bn ($25.3m), $26.4m and €2.7m ($2.9m) have been made so far. The first layer of claims costs, up to the owner’s liability limit, will be met by the Shipowners’ Club, which is the Princess Empress’ protection and indemnity insurer. The remaining claims will be paid out through the IOPC Funds, according to the 1992 Civil Liability Convention (1992 CLC) and the Small Tanker Oil Pollution Indemnification Agreement. Around 33,000 of the claimants are involved in the local fishing industry, which has led to logistical difficulties in meeting claims. “The compensation process has been complicated by the fact that most claimants in that sector do not have bank accounts,” IOPC Funds said. “However, working together with the [Shipowners’] club, the secretariat quickly found alternative ways to make payments and has also continued with the process of making provisional payments in order to alleviate the financial hardship on those affected.” So far the Shipowners’ Club and IOPC Funds have paid out PHP 42.5m, $24.8m and €2.6m.
Philippine tanker oil spill claims surpass 30,000 | Insurance Business Asia - Data presented at the International Oil Pollution Compensation Funds’ (IOPC Funds) November meeting revealed that compensation claims have been made for a Philippine tanker sinking of PHP1.4 billion ($25.3 million), $26.4 million, and €2.7 million ($2.9 million), so far.Earlier this year, the sinking of the tanker Princess Empress off Oriental Mindoro in the Philippines resulted in significant oil pollution and has now led to 35,500 claims totalling over $50 million. The Princess Empress, a 1,143-dwt vessel built in 2022, sank in February, causing widespread environmental damage.According to a Trade Winds report, the initial layer of claims, up to the owner’s liability limit, will be covered by the Shipowners’ Club, the Princess Empress’s P&I insurer. The remaining compensation will be paid through the IOPC Funds, in accordance with the 1992 Civil Liability Convention (1992 CLC) and the Small Tanker Oil Pollution Indemnification Agreement.A significant number of claimants, approximately 33,000, are from the local fishing industry. This high number of claimants has presented logistical challenges, particularly as most do not possess bank accounts.Despite these difficulties, the IOPC Funds, working with the Shipowners’ Club, has found alternative payment methods, and has continued making provisional payments to mitigate financial hardship for those affected. To date, the Shipowners’ Club and IOPC Funds have disbursed PHP42.5 million, $24.8 million, and €2.6 million.Claims exceeding $10 million under the Shipowners’ Club’s liability will be covered by the International Group of P&I Clubs claims pool.
Deepwater Oil Discoveries Offshore Namibia Generating Huge Excitement | Rigzone -Recent deepwater oil discoveries off the coast of Namibia are generating huge excitement in the industry, Wood Mackenzie’s Upstream Research Director Ian Thom stated in an opinion piece posted on the company’s website this week. “The projected scale and quality of these reserves give them the potential to generate huge cash flows and make the country a core region for several major international oil companies (IOCs),” Thom said in the piece. The Wood Mackenzie representative highlighted in the piece that exploration offshore Namibia dates back to the 1970s but noted that the “breakthrough” happened in February 2022, “with major discoveries by Shell and TotalEnergies in the Graff and Venus blocks”. “Venus in particular is potentially the biggest ever oil discovery in Sub-Saharan Africa, and among the top 10 globally since the turn of the century,” he added. Overall, Namibia has 230,000 square kilometers of licensed acreage, Thom said in the piece. “By way of comparison, Norway has less than 100,000,” he added. “Currently, the area is hugely under-explored, with fewer than 20 deepwater wells, compared to thousands of wells offshore in places like the North Sea or the Gulf of Mexico,” he continued. “And with so few wells drilled in Namibia, we can expect further exploration success and resource upgrades. So far, Namibia is in on trend with results achieved from other frontier deepwater hotspots like Guyana, Suriname, and Senegal,” he went on to state.
Oil spill off Nigeria's Egina field under control, agency says (Reuters) - Nigerian authorities are closely monitoring and working to contain an oil spill that occurred during loading operations at the TotalEnergies (TTEF.PA) operated Egina field on Nov. 15, the maritime agency said on Wednesday. The Nigerian Maritime Administration and Safety Agency (NIMASA) is collaborating with the spill detention agency and the oil industry regulator to contain the spill, though the volume is not yet confirmed, spokesperson Osagie Edward said in a statement. A TotalEnergies spokesperson said the spill impact was minimal and production at the 200,000 barrel-per-day capacity oilfield was not affected. The company is working with local authorities to clear the resident sheen from the incident, he said. Oil spills have blighted Nigeria's oil-rich Niger River delta region for decades, causing widespread environmental damage and negatively impacting the lives of millions of people in the local communities. NIMASA said TotalEnergies is providing aerial surveillance and applying dispersant while considering further action to clean up the spill. "Since the incident happened, our men have been liaising with other organs of government to ensure the pollution is effectively controlled and managed, to protect the marine environment and the communities close to the incident point," NIMASA chief Bashir Jamoh said. So far, a reconnaissance survey of neighbouring areas shows that coastal communities across Andoni, Qua-Iboe terminals, Bonny Island, Opobo/Nkoro and Eastern Obolo have not yet been impacted by the spill. Oil majors operating in Nigeria, Africa's top crude producer, have faced a string of litigation in the past over spills. In May, Shell won a UK Supreme Court case over a 2011 oil spill off Nigeria's coast.
TotalEnergies working with Nigerian authorities to contain pollution in the wake of offshore oil spill - French energy giant TotalEnergies has joined forces with several Nigerian organizations, including the Nigerian Maritime Administration and Safety Agency (NIMASA), to address and manage the potential impacts of a crude oil spill that took place during loading operations at a field in the OML 130 production license offshore Nigeria.According to NIMASA, the crude oil spill incident occurred during loading operations on TotalEnergies’ Egina field on November 15, 2023, at about 6:30 a.m. Due to this incident, the Nigerian regulator is working closely with the National Oil Spill Detection and Response Agency (NOSDRA), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from the Crisis Management Room (CMR), where the spill is being monitored in real-time, using oil spill monitoring software from the Emergency Response Center. Dr Bashir Jamoh OFR, Director General of NIMASA, commented:“Since the incident happened, our men have been liaising with other organs of government to ensure the pollution is effectively controlled and managed, to protect the marine environment and the communities close to the incident point. Accidents do happen, it’s what we do thereafter that matters, and I believe that the IOC Total, working with NIMASA, NUPRC, NOSDRA and collaborating with international service providers, will surely ensure proper management of the spill.”Furthermore, Total Energies is providing aerial surveillance, and dispersant application, while further mobilization is being considered. The volume of oil spilled is not yet confirmed, however, NIMASA highlights that a reconnaissance survey of the impacted area shows the shoreline communities of Andoni, Qua-Iboe terminals, Bonny Island, Opobo/Nkoro, and Eastern Obolo, which are closest to Egina, are not affected so far.The Oil Spill Response Limited from the United Kingdom is also assisting with pollution control measures. NIMASA’s Director General underlines that the agency is working in tandem with all stakeholders to control pollution and put in place measures to prevent such occurrences in the future, in line with provisions of the MARPOL Convention.TotalEnergies secured a 20-year renewal in May 2023 of the OML 130 production license, which is located 150 kilometers off the Nigerian coast and contains the Akpo and Egina fields, which came into production in 2009 and 2018, respectively. TotalEnergies Upstream Nigeria Limited operates OML 130 with a 24% interest, in partnership with CNOOC (45%), Sapetro (15%), Prime 130 (16%), and the Nigerian National Petroleum Company Ltd as the concessionaire of the PSC. Currently, the French oil major is in the process of drilling the first of three wells on the Akpo West field with one of Noble Corporation’s drillships. Upon completion, these wells will be tied into the FPSO Akpo, and the production start-up from this short-cycle project is expected by the end of 2023.
Shell Faces UK Trial Over Oil Spills in Nigeria -- The High Court in London has ruled that thousands of Nigerians can sue Shell for breaching their right to a clean environment due to oil spills, law firm Leigh Day, representing the plaintiffs, said on Thursday.“If the case succeeds at trial, it will be the first time in legal history that a UK multinational will have been found to have breached a communities’ right to a clean environment,” the law firm said in a statement.In February this year, more than 13,000 residents from the Ogale and Bille communities in Nigeria filed claimsagainst Shell over the oil spills, seeking compensation for loss of livelihoods and damage against the oil giant.In the ruling of the High Court in London this week, “The judge found it could be argued the pollution has fundamentally breached the villagers’ right to a clean environment under the Nigerian Constitution and the African Charter and those constitutional rights were directly enforceable and can be relied upon against companies like Shell,” the law firm said today.“Importantly, such claims have no limitation period, meaning Shell would not be able to evade liability on the grounds the communities did not bring their claims within a narrow time frame,” Leigh Day added. Shell has denied responsibility for oil spills in Nigeria.“Oil is being stolen on an industrial scale in the Niger Delta,” Shell said in a statement carried by Bloomberg. “This criminality is a major source of pollution and is the cause of the majority of spills in the Bille and Ogale claims.”In recent years, the UK-based supermajor has won several cases concerning oil spills in Nigeria that have occurred since the 1990s.In late 2019, Shell won a court ruling that blocked the enforcement of more than half a billion dollars for damages against the oil supermajor in a decade-old oil spill case in Nigeria.In May this year, Shell won a similar case after the UK Supreme Court ruled it was too late for Nigerian claimants to sue two Shell subsidiaries over a 2011 offshore oil spill.
Global Protests Target Chinese Financing of East African Crude Oil Pipeline -Campaigners assembled on Monday in four African countries and in Europe, rallying outside the headquarters of several Chinese financial institutions and embassies with one demand of Chinese officials: Withhold financing for the East African Crude Oil Pipeline. The global campaign #StopEACOP has already helped push banks and insurers in North America, Europe, and Japan to refrain from getting involved in the project, which is being spearheaded by French multinational TotalEnergies and China National Offshore Oil Corporation.Now, the state-owned China Export & Credit Insurance Corporation (SINOSURE), the Export-Import Bank of China (China Exim), and the Industrial and Commercial Bank of China (ICBC) are reportedly considering financially supporting the pipeline, which could lead to 379 million tons of fossil fuel emissions even as climate and energy experts warn there is no place for new gas and oil extraction on a pathway to limiting planetary heating to 1.5°C."Today, people stood united across borders to say this dangerous pipeline project must be stopped," said Zaki Mamdoo, #StopEACOP coordinator. "We urge SINOSURE, China Exim Bank, and the ICBC to listen to local communities and respect their rights, aspirations, and agency. By refusing to provide insurance or financing for EACOP, these entities must prove that they are not simply interested in profiting at the expense of Africa's well-being."Organizers rallied at Chinese embassies in Dar es Salaam, Tanzania; Kampala, Uganda; Kinshasa, Democratic Republic of Congo (DRC); and Tshwane, South Africa. In London, United Kingdom, climate campaigners held a solidarity action outside the offices of SINOSURE and in Paris, France they rallied at the offices of the China Exim Bank and the ICBC.The planned pipeline would run from Hoima, Uganda to Tanga, Tanzania, transporting oil from two oil fields and potentially connecting to oil blocks in the DRC."The controversial EACOP project threatens pristine ecosystems, biodiversity hotspots, water resources, and community lands," said #StopEACOP, as well as "contradicting global climate goals."Campaigners had planned to deliver petitions opposing the 896-mile pipeline, as well as documents containing analysis of the socioeconomic and climate impacts of the project. According to #StopEACOP, the pipeline would run through the basin of Lake Victoria, which more than 40 million people depend on for food and water; displace landowners who say they have already faced threats and intimidation; and run through the habitats of endangered animals including lions, giraffes, roan antelopes, and sables.#StopEACOP reported that officials at the embassies refused to receive the documents.Organizers also denounced authorities for arresting seven advocates in Kampala.
The UAE Could Raise Oil Production Regardless of OPEC+ Decision - OPEC’s third-largest producer, the United Arab Emirates (UAE), could raise its oil output next year as it has won a higher quota under the OPEC+ agreement. The UAE, OPEC’s third-biggest producer after Saudi Arabia and Iraq, said in the summer that it would not join the Saudis in making voluntary production cuts.The UAE has argued for years that it should be allowed to pump more than its current OPEC+ quota as it is raising its production capacity.At the June meeting, the UAE got a huge concession from OPEC+ in the form of an upward revision of its quota that will take its production up by 200,000 barrels per day (bpd) to 3.219 million bpd for 2024. A rise in the UAE’s oil production next year doesn’t necessarily mean that the OPEC+ group would be pumping more—some members such as Angola are underperforming compared to their already lowered quotas. While the UAE is set to boost its oil production in 2024, market speculation is growing that OPEC’s top producer, Saudi Arabia, will extend its voluntary cut into 2024, considering the latest slide in oil prices to $80 and the typically weak period for oil demand in the first quarter of every year. Market talk is also intensifying that OPEC+ could announce a deeper cut at the group’s meeting in the weekend November 25-26. The recent weakness in oil prices “has increased noise over what OPEC+ will decide to do at its meeting on 26 November. We continue to expect that Saudi Arabia and Russia will roll over their additional voluntary cuts into early 2024,” ING strategists Warren Patterson and Ewa Manthey wrote on Monday. “However, what is less clear is whether the broader OPEC+ group will make further cuts,” they added.
JP Morgan Expects Brent Crude to Average $83 in 2024 -- JP Morgan has forecast an average price for Brent crude of $83 per barrel next year amid a stable market. The forecast is based on the analysts’ expectations of resilient demand for oil in the United States, strong demand growth in emerging markets, and stability in European markets. For 2025, JP Morgan analysts said they expected an average Brent crude price of $75 per barrel. As with many others, the forecast is based on expectations of substantial energy efficiency gains and growth in EV sales at the expense of internal combustion engine vehicles, leading to lower demand for fuels. At the same time, the bank also expects a weakening of jet fuel demand after the recent surge. In terms of total demand, for this year JP Morgan analysts expect growth of 1.9 million bod, weakening to 1.6 million bpd in 2024. "Despite sustained economic headwinds, we see demand ... underpinned by robust EM, resilient US and weak but stable Europe," the bank’s analysts wrote. "Demand composition will likely flip, with two-thirds of demand gains set to come from the overall economic expansion, while continued normalization of jet fuel would contribute the rest." On the supply side, JP Morgan expects growth in non-OPEC production, which could undermine the cartel’s efforts to keep prices above a certain level. If non-OPEC supply growth is strong enough, it could push Brent below $70 per barrel. In this context, JP Morgan’s analysts said they expected OPEC+ to keep the lid on production to support prices. Meanwhile, prices fell earlier today, reversing gains made on Monday after a report saying OPEC+ was considering additional production cuts to push prices higher. Despite these plans, traders appear focused on demand uncertainty once again.
The oil market continued to retrace last week’s losses on Monday - The oil market continued to retrace last week’s losses on Monday as the market looked ahead to this weekend’s OPEC meeting scheduled for November 26th. The market traded higher in follow through strength seen on Friday after OPEC+ source said that the producer group is set to consider whether to make additional supply cuts at its meeting. The crude market opened at its low of $75.65 and continued on its upward trend, reversing most of its recent sell off. The market extended its gains to over $2.30 as it posted a high of $78.22 in afternoon trading. The December crude contract erased some of its sharp gains ahead of its expiration at the close and went off the board up $1.71 at $77.60. The January WTI contract settled up $1.79 at $77.83, while the January Brent contract settled up $1.71 at $82.32. The product markets ended the session higher, with the heating oil market settling up 7.70 cents at $2.8495 and the RB market settling up 4.15 cents at $2.2260. JP Morgan said “World oil demand is on pace to grow a solid 1.9 million bpd in 2023. It sees world oil demand increasing by 1.6 million bpd in 2024. Goldman Sachs said “Our statistical model of OPEC decisions suggests that deeper cuts should not be ruled out given the fall in speculative positioning and in timespreads, and higher-than-expected inventories.” It said its baseline forecasts is that the existing group production cuts stay fully in place in 2024. It expects that the unilateral Saudi cut of 1 million bpd will be extended through the second quarter of 2024 and reversed only gradually starting in July. The head of Japan's oil industry body said he expects OPEC+ to extend its supply curbs after December to support oil prices. Last week, three OPEC+ sources stated that OPEC+ is set to consider whether to make additional oil supply cuts when it meets on November 26th after crude prices fell by almost 20% since late September. Shunichi Kito, president of the Petroleum Association of Japan, said "At least, the current production curbs will probably continue," noting that Saudi Arabia wants to keep oil prices above $80/barrel. The U.S. Coast Guard is still trying to find the source of an oil leak estimated to have spilled 26,190 barrels of 1.1 million gallons of crude oil into the Gulf of Mexico off the coast of Louisiana. Remotely-operated vehicles continue to survey a pipeline operated by Main Pass Oil Gathering Company, close to where the spill took place, near Plaquemines Parish. The leak was first discovered five days ago on Thursday morning prompting Main Pass to shut its line that transports crude from fields in the Gulf of Mexico to the coast. IIR Energy reported that U.S. oil refiners are expected to shut in 264,000 bpd of capacity in the week ending November 24th, increasing available refining capacity by 559,000 bpd. Offline capacity is expected to fall to 29,000 bpd in the week ending December 1st.
Oil slips as traders trim bets OPEC+ will further tighten supply - Oil declined after two days of gains as traders tempered expectations that OPEC+ will intervene in the market to bolster prices, with healthy supplies and ebbing geopolitical risks also adding to the retreat. West Texas Intermediate eased less than one per cent to near US$77 a barrel after U.S. President Joe Biden said that a deal to free some Israeli hostages held by militant group Hamas is imminent. Oil rose more than six per cent in the prior two sessions on speculation that Saudi Arabia and its allies may deepen supply cuts at their next meeting on Nov. 26. U.S. oil options point to many traders increasing bets on this outcome in a bid to reverse a recent slide in prices. Between now and the weekend meeting, traders will get fresh insights into U.S. fundamentals with the release of official figures on crude and product stockpiles. Nationwide crude inventories have expanded for the past four weeks to the highest since August. There’s also a U.S. holiday that is likely to curtail trading activity in the second half of the week. An expected buildup in U.S. stockpiles, as well as the contango structure of WTI’s front-month spread, “are keeping a lid on prices,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities. “But its mostly a choppy trade until we see what OPEC+ is going to do.” Indications that non-OPEC crude supplies are expanding have buffeted prices in recent weeks, with the gains in production offsetting the impact of collective and voluntary reductions agreed by the Organization of Petroleum Exporting Countries and its allies, including Russia. Crude exports from the latter fell to a three month-low ahead of the meeting. In the Middle East, Iran-backed Houthi rebels seized an Israeli-owned ship in the Red Sea in retaliation for the war in Gaza, raising fears over potential disruption in one of the world’s busiest shipping conduits. Still, the market was more reactive to Hamas — designated a terrorist organization by the U.S. and European Union — saying it was close to reaching a “truce agreement” in talks with Qatar and Israel, a sign that hostage negotiations are progressing. WTI for January delivery eased 0.7 per cent to $77.28 a barrel at 12:03 p.m. in New York. Brent for January settlement fell 0.6 per cent to $81.84 a barrel.
Oil Holds Losses After EIA Confirms Large Crude Build -- New York Mercantile Exchange (NYMEX) oil futures eroded further in post-inventory trading Wednesday after federal data showed commercial crude oil inventories in the United States increased for the fifth consecutive week through Nov. 17. Gasoline stocks unexpectedly built as demand for transportation fuel dropped well below 9 million barrels per day (bpd) despite forecasts for a pick-up in holiday travel for the Thanksgiving weekend. U.S. gasoline consumption dropped back to the lowest level since late September, falling 469,000 bpd or 5% from the previous week to 8.480 million bpd, according to data released midmorning by the U.S. Energy Information Administration (EIA). Gasoline demand is currently running some 4% below the five-year average despite the American Automobile Association projecting this holiday season will see the third-highest Thanksgiving travel since it began collecting the data in 2000. Further details of the EIA report showed nationwide gasoline stockpiles rose by 700,000 barrels (bbl) to 216.4 million bbl, some 2% below the five-year average. Analysts had expected a 600,000 bbl draw. Distillate stocks, meanwhile, decreased by 1 million bbl in the reviewed week to 105.6 million bbl against expectations of a 600,000 bbl draw. Distillate stocks were 13% below their five-year average, according to EIA said. In the crude complex, commercial stockpiles once again rose by a larger-than-expected margin last week, up 8.7 million bbl to 448.1 million bbl, and remained 1% below the seasonal five-year average. The larger-than-expected build follows a massive 17.5 million bbl increase in commercial stockpiles over the past two weeks. Oil stored at Cushing, Oklahoma, farm tanks, the delivery point for West Texas Intermediate (WTI), rose by 900,000 bbl to 25.9 million bbl. U.S. crude oil production remained unchanged at 13.2 million bpd for the fifth consecutive week, topping the previous weekly high of 13.1 million bpd set during the week ended March 13, 2020. The refinery run rate increased 0.9% from the previous week to 87% of capacity compared with expectations for a 0.8% increase. Domestic refiners processed 15.5 million bpd of crude oil in the reviewed week, 106,000 bpd more compared to the prior week's average. Near 11:45 a.m. ET, January West Texas Intermediate futures declined $3.30 to $74.76 bbl and December ULSD futures fell $0.0449 to $2.8800 gallon. December RBOB futures shed $0.0734 gallon to $2.1604 gallon.
Oil futures fell Friday, dropping for a fifth straight week as investors awaited a delayed meeting of OPEC+ members next week. West Texas Intermediate crude for January delivery CL.1 CL00 CLF24, the U.S. benchmark, fell $1.56, or 2%, from Wednesday's close to finish at $75.54 a barrel on the New York Mercantile Exchange. WTI futures didn't settle Thursday due to the U.S. Thanksgiving Day holiday.January Brent crude BRNF24, the global benchmark, dropped 84 cents, or 1%, to end at $80.48 a barrel on ICE Futures Europe. December gasoline RBZ23 fell 3% to close at $2.165 a gallon, while December heating oil HOZ23 lost 1.9% to settle at $2.836 a gallon.December natural gas NGZ23 dropped 1.5% to $2855 per million British thermal units. The decline left WTI with a 0.7% weekly loss, while Brent lost less than 0.1%. It was the fifth straight weekly decline for both benchmarks based on front-month contracts, according to Dow Jones Market Data. Oil futures remained under pressure after a Wednesday tumble that came after the Organization of the Petroleum Exporting Countries and its allies -- known as OPEC+ -- postponed a meeting that had been set for Sunday until Nov. 30. The delay came as OPEC members Angola and Nigeria pushed to be allowed higher output levels, news reports said, easing fears of a deeper rift that could threaten the continuation of production cuts into next year, including a 1 million barrel-a-day reduction by Saudi Arabia. The delay pushed oil futures down on Wednesday, with Brent dipping below $80 a barrel. "The key point is that the meeting's postponement was not due to a change of heart by Saudi Arabia. In other words, the kingdom still appears willing to shoulder the lion's share of the supply cut needed to stabilize the oil market," Barbara Lambrecht, commodity analyst at Commerzbank, said in a note. "It therefore seems more or less certain once again that it will continue its voluntary production cut in the first quarter, especially as the brief price slide revealed that significant price losses would otherwise be on the cards," she said. "The only question is whether the cartel will be able to agree on any cuts that go beyond this."
Oil group OPEC and its allies delay policy-setting meeting by four daysMeetings of the influential Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, have been rescheduled from Nov. 25-26 to Nov. 30, sending prices down by over $3 per barrel in Thursday intraday trade. The Ice Brent contract with January delivery was trading at $79.05 per barrel at 13:50 London time, down by $3.40 per barrel. The Nymex WTI contract with January expiry was at $74.40 per barrel, down by $3.37 per barrel. The OPEC Secretariat, which made the announcement, did not disclose the reason for the postponement. It was not immediately clear whether the OPEC+ group would be holding a virtual or in-person meeting on Thursday, or whether ministers would still adjourn at the OPEC secretarial headquarters in Vienna. The new date of the OPEC+ meetings coincides with the first day of the Conference of the Parties climate summit (COP28) in Dubai and represents a key event for both the host United Arab Emirates — the third-largest OPEC producer — and for other Arab energy providers that are tackling the green transition. Earlier in the day, Bloomberg News issued a report saying the meeting of Sunday could be delayed amid Saudi dissatisfaction over the oil production levels of some countries. A senior OPEC+ delegate, who asked for anonymity because of the sensitivity of the discussion, agreed with the premise, with reference to the compliance levels of some alliance member countries with their respective output pledges. Saudi Arabia is itself enforcing a 1 million barrel-per-day voluntary production decline until the end of this year, alongside contributing to a separate spate of voluntary output cuts from several OPEC+ members that totals 1.66 million barrels per day and will stretch until the end of next year. The upcoming meeting faced a challenging market environment, defined by depressed oil prices, a slower-than-expected Chinese demand recovery and petropolitics amid conflict in the Middle East. High interest rates and banking turmoil largely slumped oil prices in the first half of the year, before a sharp boost from several voluntary supply declines announced independently of OPEC+ strategy. Several OPEC+ members pledged to reduce output by a total of 1.66 million barrels per day until the end of 2024, with Saudi Arabia and Russia topping that with additional respective supply drops of 1 million barrels per day and 300,000 barrels per day until the end of this year. Prices briefly surpassed $90 per barrel, but have since withdrawn amid a fainter-than-expected recovery in China — the world’s largest crude importer — and resurging tensions in the Middle East. Prior to the meeting postponement, two OPEC+ delegates, who could only speak under condition of anonymity, faulted the recent price pressures on liquidations in the future markets amid geopolitical risks, with a third attributing market concerns less to supply-demand fundamentals than to global politics, including developments in Israel. The OPEC+ alliance, including chairman and Saudi energy minister Abdulaziz bin Salman, have been previously frustrated by a perceived disconnect between supply-demand and prices. Famously, the Saudi prince has been at war with market speculators, warning they would “ouch” and should “watch out” in May. One of the three delegate sources said that the OPEC+ group would have to make an announcement to “support the market” at its upcoming meeting, with a fourth delegate also suggesting cuts could be discussed. The alliance will also discuss baselines — the level from which quotas are determined and a frequent subject of contention — for certain countries, the last source said. A fifth delegate meanwhile assessed it is unlikely that the coalition will change its production policy, given uncertainty in the outlook for flows from Iran and Venezuela, where the U.S. has signaled tightening and easing its oil sanctions, respectively.
Oil prices fall for 5th straight week as traders look ahead to delayed OPEC+ meeting - Oil futures fell Friday, dropping for a fifth straight week as investors awaited a delayed meeting of OPEC+ members next week. West Texas Intermediate crude for January delivery CL.1 CL00 CLF24, the U.S. benchmark, fell $1.56, or 2%, from Wednesday's close to finish at $75.54 a barrel on the New York Mercantile Exchange. WTI futures didn't settle Thursday due to the U.S. Thanksgiving Day holiday.January Brent crude BRNF24, the global benchmark, dropped 84 cents, or 1%, to end at $80.48 a barrel on ICE Futures Europe. December gasoline RBZ23 fell 3% to close at $2.165 a gallon, while December heating oil HOZ23 lost 1.9% to settle at $2.836 a gallon.December natural gas NGZ23 dropped 1.5% to $2855 per million British thermal units. The decline left WTI with a 0.7% weekly loss, while Brent lost less than 0.1%. It was the fifth straight weekly decline for both benchmarks based on front-month contracts, according to Dow Jones Market Data. Oil futures remained under pressure after a Wednesday tumble that came after the Organization of the Petroleum Exporting Countries and its allies -- known as OPEC+ -- postponed a meeting that had been set for Sunday until Nov. 30. The delay came as OPEC members Angola and Nigeria pushed to be allowed higher output levels, news reports said, easing fears of a deeper rift that could threaten the continuation of production cuts into next year, including a 1 million barrel-a-day reduction by Saudi Arabia. The delay pushed oil futures down on Wednesday, with Brent dipping below $80 a barrel. "The key point is that the meeting's postponement was not due to a change of heart by Saudi Arabia. In other words, the kingdom still appears willing to shoulder the lion's share of the supply cut needed to stabilize the oil market," Barbara Lambrecht, commodity analyst at Commerzbank, said in a note. "It therefore seems more or less certain once again that it will continue its voluntary production cut in the first quarter, especially as the brief price slide revealed that significant price losses would otherwise be on the cards," she said. "The only question is whether the cartel will be able to agree on any cuts that go beyond this."
Oil Markets Eagerly Awaiting Sunday OPEC+ Meeting --Oil markets are eagerly awaiting the OPEC+ meeting on November 26 in anticipation of what kingpin Saudi Arabia decides over its voluntary crude oil production cuts of one million barrels per day. That’s what Rystad Energy Senior Vice President Jorge Leon stated in an oil market update sent to Rigzone this week, adding that, “regardless of the path they take, Saudi Arabia’s decision on the production cuts will ultimately shape the short-term future of global oil prices”. “The kingdom is balancing the desire to keep prices high by limiting supply with the knowledge that doing so will lead to a further drop in overall market share,” Leon said in the update. “Crude prices have experienced significant downward pressure in recent weeks, with prices fell below $80 per barrel last week after a dramatic sell-off driven by oversupply concerns,” he added. “This recent nosedive could be an indicator of what’s to come at the OPEC meeting, as the Saudis have repeatedly demonstrated that their price floor is above $80 per barrel,” he continued. Leon noted in the update that the main topic of the 36th OPEC and non-OPEC Ministerial Meeting on Sunday will be confirmation of production quotas next year, which he pointed out were drafted in the group’s June meeting. “Saudi Arabia announced its voluntary cuts on the sidelines of that meeting, initially committing to a one million barrel per day output cut for July,” Leon said in the update. “This was then extended on a monthly basis into August and September, while in early September, Riyadh announced the extension until the end of this year,” he added. “Oil markets will be looking to see if Saudi Arabia extends these cuts into 2024 or if it chooses to gradually unwind them or simply let them expire at the end of this year. Whichever way it goes, Saudi Arabia’s decision will have significant implications for oil markets and, in particular, for the oil price next year,” Leon went on to state. In the update, Leon revealed that Rystad has run five scenarios on Saudi production policy for the next few months and estimated the impact they would have on oil prices. Rystad expects the average oil price to hit $82 per barrel next year in a scenario where the Saudi voluntary cuts are not extended into 2024, the update outlined. The company expects the average oil price to be $84 per barrel in 2024 in a scenario where Saudi Arabia fully unwinds the voluntary cuts by April and $87 per barrel in a scenario where the Saudis unwind voluntary cuts gradually until June, the update revealed. Rystad anticipates that the oil price will average $92 per barrel in 2024 in a scenario where Saudi Arabia extends the one million barrel per day voluntary cuts into January and February, and gradually unwinds them until July, and $96 per barrel in a scenario where the Saudis extend the cuts until April and gradually unwind them until August, according to the update.
U.S. crude oil tumbles below $75 a barrel after OPEC delays meeting - U.S. crude prices declined Wednesday after the Organization of Petroleum Exporting Countries delayed a pivotal meeting on production cuts that was scheduled for the weekend. The West Texas Intermediate contract for January fell about 5% to $73.85 a barrel in the morning, but clawed back most of those losses. U.S. crude ultimately settled at $77.10 a barrel, down 67 cents or .86%. The Brent contract for January fell 49 cents, or .59%, to settle at $81.96 a barrel. OPEC said in a statement that the meeting of energy ministers is delayed until next Thursday. The organization did not provide a reason, but Saudi Arabia is struggling to convince Angola and Nigeria to accept lower output targets, delegates told Bloomberg. There was growing anticipation among traders that OPEC and its allies, called OPEC+, might implement additional production cuts, which pushed prices higher late last week and early this week. But compliance is a major challenge for OPEC+ because many countries have an incentive to not stick with their production quotas, said Tamas Varga, an analyst with PVM Oil Associates. “Compliance will be weak going forward,” Varga said. He pointed to Russia in particular, which needs to finance its war in Ukraine Oil prices have fallen precipitously from September highs as record non-OPEC production collides with demand concerns in China, where exports have fallen six months in a row. “It’s undermining the Saudi efforts to get the price really back to $100 a barrel plus,” John Kilduff, an oil analyst at Again Capital, told CNBC’s “Power Lunch” Wednesday. U.S. data underlined that picture on Wednesday. Crude production stands at an estimated 13.2 million barrels per day, a record level and 1.1 million bpd higher than the same period last year, according to data released by the Energy Information Agency. Domestic crude inventories, excluding the strategic reserve, increased by 8.7 million barrels for the week ending Nov. 17. Meanwhile, finished gasoline supplied declined by 469,000 barrels from the prior weak, implying softening demand in the U.S. Kilduff said U.S. crude could test $70 a barrel and possibly drop to the low $60-a-barrel range, particularly if there’s a mild winter in the northern hemisphere.
Yemen's Houthis Seize Israeli-Linked Ship in the Red Sea - Yemen’s Houthis have seized an Israeli-linked ship in the Red Sea after vowing to target Israeli vessels in the region over Israel’s onslaught in Gaza.The Houthis forces seized the Bahamas-flagged Galaxy Leader, a car carrier that’s owned by Ray Car Carriers, a shipping firm that was founded by Israeli shipping mogul Abraham “Rami” Ungar. Ray Car Carriers, which is based in the Isle of Man, is still believed to be owned by Ungar, at least partially.Israeli officials are insisting that the ship is not Israeli because it’s British-owned and currently operated by a Japanese company. Israeli Prime Minister Benjamin Netanyahu’s office said 25 crewmembers had been taken hostage by the Houthis and that no Israelis were onboard.Lebanon’s Al Mayadeen reported on the ship s eizure and put the number of crew members higher, saying 52 people were detained by the Houthis. According to AP, the Houthis said they were treating the crew members “in accordance with their Islamic values.”The Houthis also said that “all ships belonging to the Israeli enemy or that deal with it will become legitimate targets.”The Houthis, formally known as Ansar Allah, have been firing missiles and drones at Israel over the Israeli assault on Gaza. T he Houthis have also recently downed an American MQ-9 Reaper drone that was flying near Yemen and is believed to have fired a drone at a US warship in the Red Sea.The US has been at war with the Houthis since 2015 by backing a Saudi-UAE coalition against them, which has included helping enforce a blockade on Yemen. A ceasefire between the Saudis and the Houthis has held relatively well since April 2022, but no lasting peace deal has been signed.
Houthis Release Dramatic Video Of Ship Hijacking - Promise "This Is The Beginning" -- Yemen's Houthi rebels have released dramatic video of their Sunday hijacking of the Galaxy Leader, a vehicle-transport ship whose owner is a subsidiary of a company owned by an Israeli billionaire. The ship is still in their control, with 25 crew members of various nationalities held hostage and the vessel now in the Yemeni port of Hodeidah. The Red Sea incident received surprisingly little initial coverage by major media, considering it marked the opening of a new, maritime front in the multilateral regional conflict that erupted on Oct 7, when Palestinian Hamas militants invaded southern Lebanon, killing more than a thousand Israeli civilians and soldiers. The Iran-aligned Houthis, who've been battling Yemen's Saudi-backed government since 2014, had already launched multiple drone and missile attacks on Israel in solidarity with Hamas and the people of Gaza. In announcing their seizure of the Galaxy Leader, the group said, “All ships belonging to the Israeli enemy or that deal with it will become legitimate targets.” “The detention of the Israeli ship is a practical step that proves the seriousness of the Yemeni armed forces in waging the sea battle, regardless of its costs and costs,” said Houthi chief negotiator Mohammed Abdul-Salam in a separate online statement. “This is the beginning.” About a fifth of the world's oil must traverse the narrow strait between Yemen and Djibouti.The professionally-produced, nearly four-minute Houthi video appears to have been shot from multiple cameras in the air and on the sea, including one mounted on the tail of a helicopter used to airlift the attackers onto the ship and others worn by the militants in action. It first shows a helicopter pursuing the 600-foot ship as it plows through the sea. Houthis then dismount the chopper atop the ship's deck, fire AK-47 rifles and make their way to the ship's bridge, where crew members surrender to them. In the final shot, the ship moving through the water, surrounded by several small watercraft.
US Warship Downs Several Attack Drones In Red Sea As Hijacked Vessel Standoff Continues -On Thursday morning the USS Thomas Hudner, an Arleigh Burke-class destroyer, intercepted more attack drones fired from Yemen while patrolling waters in the Red Sea."On the morning (Yemen time) of November 23, the USS Thomas Hudner (DDG 116) shot down multiple one-way attack drones launched from Houthi controlled areas in Yemen," CENTCOM announced on X."The drones were shot down while the U.S. warship was on patrol in the Red Sea," the statement continued, noting that there was no damage to the ship or casualties among the crew. "The ship and crew sustained no damage or injury," according to CENTCOM. The wording of the statement suggests the drones may have been targeting the US warship. The Houthis have already on several occasions launched missiles and drones on southern Israel. US warships have intercepted the projectiles at least three times at this point. Both Washington and Israel see that it is Iran ultimately behind Houthi actions. Tehran has also long supplied the Shia Houthis with advanced rockets and drones, part of the broader regional proxy war against the US-Saudi-Gulf axis. An Israel-Hamas temporary ceasefire and hostage release is expected to go into effect Friday. It remains unclear the extent to which the Houthis and Lebanese Hezbollah will also abide by the Qatar-brokered ceasefire. Tensions have increased in the Red Sea and Persian Gulf areas on fears that Iran-backed groups could escalate attacks on shipping. The Houthis days ago seized an Israeli-linked shipping vessel and are holding the 25 international crew members hostage. This has served to divert some commercial ship traffic:
US embarks on proxy war against Iran -A massive US naval deployment in a wide arc of the so-called Greater Middle East is under way — stretching from Crete in the Eastern Mediterranean, into the Red Sea and the Bab el Mandeb and into the Gulf of Aden and all the way into the Gulf of Oman. This deterrent display may transform as large scale offensive operations and aims to rework the geopolitical alignments and bring them back to the traditional grooves of intra-regional rivalries in the Gulf region.Ship spotters first said that as of Thursday, the aircraft carrier USSDwight D. Eisenhower and its escorts were sailing just outside the Strait of Hormuz in the Gulf of Oman, and were approaching the Persian Gulf. A Pentagon official confirmed the location but would not say whether the carrier will enter the Persian Gulf passing through the Strait of Hormuz.The US naval build-up in the region consists of another carrier strike group as well — USS Ford and its escorts — which last week moved away from Israeli coast and is now re-positioned to the south of Crete, according to ship spotters, apparently beyond the missile reach of Lebanon’s Hezbollah.Apart from the two carrier strike groups, the US deployment also includes a three-ship Bataan Amphibious Ready Group with the 26th Marine Expeditionary Unit and several guided-missile destroyers — USS Bataan and USS Carter Hall operating in the northern portion of the Red Sea, and USS Mesa Verde in the Eastern Mediterranean along with the command ship USS Mount Whitney.Additionally, there are some number of US attack submarines in the region, but the Pentagon does not typically disclose their locations — except for a rare disclosure recently by the US Central Command of the transit on November 5 of nuclear guided-missile submarine USSFlorida to the east of Suez.The most obvious explanation for such a formidable naval buildup is that it is part of the US effort to keep the current conflict in southern Israel and Gaza contained. Hezbollah continues to fire rockets and anti-tank missiles into Israel from Lebanon; Iran-backed Shia militant groups are attacking US bases in Iraq and Syria; and Houthi rebels in Yemen are firing missiles towards Israel. During the period since October 17, there have been at least 58 attacks on US bases, mostly in Iraq.The hardline opinion in the US is that the militant groups attacking the US forces are acting at Iran’s behest. This allegation is an old US-Israeli bogey and keeps surging whenever Iran is in the crosshairs and/or there is requirement of a blame game. Expert opinion, including in the US, has always been wary of it.
Iran Tells US It Doesn't Want Gaza War to Escalate Into Regional Conflict - Iranian Foreign Minister Hossein Amirabdollahian has said that Tehran expressed to the US through back channels that it does not want the Gaza war to escalate into a regional conflict while also warning escalation was inevitable if Israel didn’t stop its campaign. “Over the past 40 days, messages have been exchanged between Iran and the US, via the US interests section at the Swiss embassy in Tehran,” Amirabdollahian said in an interview with Financial Times published on Friday.“In response to the US, we said that Iran does not want the war to spread, but due to the approach adopted by the US and Israel in the region, if the crimes against the people of Gaza and the West Bank are not stopped, any possibility could be considered, and a wider conflict could prove inevitable,” he added.The US has blamed Iran for attacks on US troops in Iraq and Syria that started in October due to President Biden’s support for the Israeli assault on Gaza, but Tehran has said it’s not responsible, and the US has never produced evidence to show Iran is directing the attacks.Amirabdollahian said that the Shia militias in Iraq and Syria that are believed to be responsible for the attacks on US bases are not Iranian proxies. He said the same of Hezbollah, other Palestinian militants, and the Houthis in Yemen, according to Financial Times. But he warned the groups “are not indifferent towards the killing of their Muslim and Arab peers in Palestine.”Amirabdollahian said the war had already “expanded in the region,” citing Houthis attacks on Israel and the fighting between Hezbollah and Israeli forces that continues to escalate. The US has deployed an enormous amount of firepower to the Middle East in the name of “deterring” regional actors from escalating against Israel, but Amirabdollahian said the US has not threatened to target Iran directly if Hezbollah launched an all-out assault on Israel.In response to the attacks against US bases, the US has launched three rounds of airstrikes targeting facilities the Pentagon claimed were used by Iran’s Islamic Revolutionary Guard Corps (IRGC) and affiliated groups. Amirabdollahian said “no Iranian forces were struck” in the US airstrikes. He said one of the facilities was previously used by Iranian “military advisers in the fight against terrorists, but that place was empty of any Iranian forces or supplies at the time of the attack.”
US AC-130 Gunship Launches Strikes in Iraq, Casualties Reported - US Central Command (CENTCOM) said Tuesday that a US AC-130 gunship launched strikes in Iraq against people allegedly responsible for an earlier missile attack on the Ain al-Asad airbase in western Iraq, which houses US troops.The Pentagon said eight US troops were wounded when Ain al-Asad airbase was targeted with a “short-range ballistic missile” and that the AC-130 responded “immediately.”CENTCOM said the AC-130 strikes strike resulted in “several enemy casualties.” A US official later told The War Zone that the strikes killed at least one member of Kataib Hezbollah, an Iraqi Shia militia.According to AFP, the AC-130 struck a vehicle in Abu Ghraib, once the site of the notorious American torture prison. AC-130 gunships are armed with various types of heavy weapons, including 105mm howitzers.The US airstrikes in Iraq risk significantly escalating attacks on US forces in the region. As of Monday, US troops in Iraq and Syria have come under attack at least 61 times since October 17 due to President Biden’s full-throated support for the Israeli onslaught in Gaza. The US has launched three rounds of airstrikes in eastern Syria against Shia militias believed to be responsible for the attacks. The incident on Tuesday marked the first US strikes in Iraq since the attacks on US bases started last month.The Washington Post reported over the weekend that the Pentagon was aware launching strikes in Iraq could “exacerbate anti-American sentiment” in the country. Many elements in Iraqi politics oppose the US presence, which consists of about 2,500 troops, and the direct US strikes could spark fresh protests.
US Launches Second Round of Airstrikes in Iraq - US warplanes hit targets in Iraq early Wednesday morning, marking the second round of US airstrikes in the country in just over 24 hours as the situation in the region continues to escalate.Pentagon officials said the airstrikes hit two facilities south of Baghdad used by Kataib Hezbollah, an Iraqi Shia militia aligned with Iran. Officials said it was too early to provide information about casualties.The strikes came after a US AC-130 gunship targeted people in Iraq the Pentagon said was responsible for a ballistic missile attack on the Ain al-Asad airbase west of Baghdad. US officials said the AC-130 strikes killed three militants.The attack on the Ain al-Asad airbase wounded at least eight US troops. According to the Pentagon, US forces in Iraq and Syria have come under attack 66 times since October 17 due to President Biden’s support for Israel’s onslaught on Gaza.The US had previously launched three rounds of airstrikes in eastern Syria, but the AC-130 strikes marked the first US bombing of Iraq since October 7. The US attacks on Iraq risk a significant escalation as many elements inside the country are opposed to the US presence, not just the Iran-aligned faction.The Washington Post reported over the weekend that the Pentagon was aware launching strikes in Iraq could “exacerbate anti-American sentiment” in the country. Iraq’s parliament voted to expel US troops back in 2020 after the US drone strike that killed Iranian Gen. Qassem Soleimani and Iraqi militia leader Abu Mahdi al-Muhandis. Iraqi prime ministers have been under pressure to expel foreign troops ever since 2020. In an effort to placate anti-US factions, the US formally changed its presence in Iraq from a combat role to an advisory role in December 2021. But the US did not withdraw any troops at the time and still has 2,500 in the country today.
'Dangerous Escalation': Iraqi Government Condemns US Airstrikes - The Iraqi government on Wednesday condemned deadly U.S. airstrikes south of Baghdad as "a clear violation of sovereignty" that risks escalating regional tensions amid Israel's assault on the Gaza Strip.The Pentagon said the U.S. strikes targeted two facilities used by Kataib Hezbollah, an Iraqi militia group that the U.S. considers an Iranian proxy. The group, which the U.S. has accused of carrying out an attack on American forces at Iraq's al-Asad Airbase, said eight of its fighters were killed in the early Wednesday strikes and pledged to retaliate.Bassem al-Awadi, a spokesperson for Iraq's government, said the U.S. launched the strikes without any coordination with Iraqi officials, a decision that he called "a dangerous escalation" and "an attempt to disrupt the stable internal security situation."Al-Awadi also denounced "any armed action or activity outside the military institution is deemed condemnable and an unlawful endeavor that jeopardizes the national interest," an apparent reference to militia attacks on U.S. forces in Iraq.The U.S. airstrikes came just over 24 hours after an American gunshiplaunched an attack on what the Pentagon described as "an Iranian-backed militia vehicle and a number of Iranian-backed militia personnel" in Iraq, purportedly targeting militants who were involved in a ballistic missile strike on U.S. forces.The missile attack "resulted in non-serious injuries to U.S. and coalition forces, as well as minor damage to infrastructure on the installation," the Pentagon said.
Iraqi Government 'Vehemently' Condemns US Airstrikes as Violation of Sovereignty - Iraq’s government on Wednesday blasted US airstrikes launched in the country against Shia militias, calling them a violation of Iraqi sovereignty.“We vehemently condemn the attack on Jurf al-Nasr, executed without the knowledge of Iraqi government agencies,” said Iraqi government spokesman Basem al-Awadi.“This action is a blatant violation of sovereignty and an attempt to destabilize the security situation,” al-Awadi added.The statement came after the US military announced it launched airstrikes early Wednesday against facilities south of Baghdad used by Kataib Hezbollah, a Shia militia that’s aligned with Iran. Iraq’s Popular Mobilization Forces (PMF), an umbrella group of Shia militias that formed in 2014 to fight ISIS, said eight of its fighters were killed in the US strikes.About 24 hours earlier, a US AC-130 Gunship launched airstrikes against individuals the US claims were responsible for a ballistic missile attack on the Ain al-Asad airbase, which hosts US troops. US officials said the AC-130 killed three militants.The AC-130 strikes were the first the US launched in Iraq since US troops in Iraq and Syria started coming under attack due to President Biden’s support for Israel’s onslaught in Gaza. According to the Pentagon, US troops have come under attack 66 times in Iraq and Syria since October 17.The US previously launched three rounds of airstrikes in eastern Syria. Over the weekend, The Washington Post reported that the Pentagon was aware launching strikes in Iraq could “exacerbate anti-American sentiment” in the country. The US has 2,500 troops in Iraq, a presence many elements in Iraq strongly oppose. The Iraqi government said the airstrikes violated the agreement the US has with Baghdad to keep troops in the country.“The recent incident represents a clear violation of the coalition’s mission to combat [ISIS] on Iraqi soil,” the statement said. The government also condemned the frequent attacks on US troops and said it was the only authority that could punish the perpetrators.“The Iraqi government is solely dedicated to enforcing the law and holding violators accountable, a prerogative exclusively within its purview. No party or foreign agency has the right to assume this role, as it contradicts Iraqi constitutional sovereignty and international law,” the statement said.
Pending global threats from the Israel-Hamas war that are not being aired in Western media just yet Gilbert Doctorow -- During my interview yesterday morning with WION, India’s premier English-language global news service, I was given the opportunity to expand upon the latest development in the southern sector of the Red Sea, namely the seizure by a Houthi (Yemen) attack force of a merchant vessel partly owned by Israelis. As I commented, Russian news tells us that the capabilities of Yemen to create havoc with global shipping through the Suez Canal and Red Sea are vastly underappreciated and underreported at present. Despite its figuring in world news these past several years for a murderous civil war fed by the Saudis, and besides its being considered the poorest nation among the Arab countries of the Middle East, Yemen has a 30 million population and, according to Russia, a very strong arsenal of ship-sinking missiles with 2,000 km range that they themselves manufacture. If there is no other lever to stop the Israeli rampage, it is certainly credible that the Yemenis will attack global shipping routes. See https://www.youtube.com/watch?v=rr5ezHclil4 In short, war today is not what it used to be just a couple of decades ago. Hamas, with a military budget of perhaps 80 million euros annually and Hezbollah with a budget just several times greater can pose a grave threat to Israeli armor with improvised drones dropping mines on tanks and personnel carriers and to its civil infrastructure using their missiles. Now Yemen enters the fray with a capability of disrupting global logistics.Twenty years ago when Bush, Jr unleashed his War on Terror, all the talk of global security experts was about the threat to the status quo posed by “non-state actors” operating with paltry funds. Now the art of war has progressed to the point where non-state actors can stand up to the mightiest high budget state armies like Israel and its 20 billion dollar war budget. The Netanyahu cabinet seems not to have taken in the significance of this change, whereas the Kremlin absorbed the lesson quickly during its war with Ukraine and is now very proficient at pursuing its objectives on the battlefield in the age of kamikaze and reconnaissance drones.
Netanyahu Says UN Isn't Doing Enough for Palestinians in Gaza - Israeli Prime Minister Benjamin Netanyahu on Thursday accused the UN of not doing enough to respond to the humanitarian crisis he created in Gaza.“I have not seen yet the effort that I’d like to see from the UN and the international agencies to build shelters there [in Gaza],” Netanyahu said.The Israeli leader said there is “no reason not to erect tens of thousands of tents in the safe zone or next to the safe zone.” It’s unclear what safe zone he’s referring to as Israel has continued to bomb southern Gaza after telling Palestinians to evacuate the north.Israel’s bombardment of Gaza has displaced 1.7 million people in Gaza, four-fifths of the enclave’s population. It has also killed at least more than 11,000 people, including over 4,500 children, according to the last updateput out by Gaza’s Health Ministry on November 10.While Netanyahu has criticized the UN response, his campaign in Gaza has killed over 100 UN aid workers.POLITICO recently reported that the US had been sharing the locations of aid groups and workers in Gaza, but Israel continued to bomb them anyway.
Israel's Intelligence Minister Proposes the 'Resettlement' of Palestinians Outside Gaza - Israeli Intelligence Minister Gila Gamliel proposed the “voluntary resettlement” of Palestinians in the Gaza Strip to other countries around the world in an op-ed for The Jerusalem Post published Sunday.Gamliel said one option for Gaza’s future is to “promote the voluntary resettlement of Palestinians in Gaza, for humanitarian reasons, outside of the Strip.” She called for the “international community” to foot the bill for relocating Palestinians instead of funding the UN Relief and Works Agency (UNRWA).“Instead of funneling money to rebuild Gaza or to the failed UNRWA, the international community can assist in the costs of resettlement, helping the people of Gaza build new lives in their new host countries,” wrote Gamliel, a member of Prime Minister Benjamin Netanyahu’s Likud Party.Gamliel said she proposed a similar solution earlier in the war and noted it was gaining popularity among Israeli lawmakers. “I am gratified to hear that Members of Knesset from across the political spectrum, including both the coalition and opposition, have joined my Ministry’s initiative and declared their support for it,” she said.Earlier this month, two members of the Israeli Knesset wrote an op-ed for The Wall Street Journal calling for Western countries to accept Palestinian refugees. The op-ed was coauthored by a member of Likud and a member of Yesh Atid, the main opposition party led by former Prime Minister Yair Lapid. The idea has also gained support from Bezalel Smotrich, an extremist settler who leads the Religious Zionist party and is Israel’s finance minister.Last month, a leaked document drafted by Gamliel’s Intelligence Ministry proposed pushing all 2.3 million Palestinians in Gaza into Egypt, making clear the Netanyahu government is considering the complete ethnic cleansing of the Strip. But Egypt has refused to take in any Palestinian refugees, making Israeli officials seek other alternatives, such as Gazans being absorbed by the West.
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