Oil Daily | Alberta Hits Record Oil Output; OPEC Increases Production; Shell Cancels Biofuels Project

【Global Oil Supply and Demand】

Crude oil production in Alberta reached an all-time high in July, with companies boosting productivity and output due to expanded takeaway capacity from the Trans Mountain pipeline. Oil sands output also hit a record high as producers optimized production rates and reduced maintenance times, despite lower oil prices this year.

The American Petroleum Institute estimated U.S. crude oil inventories rose by 622,000 barrels in late August, contrary to expectations of a draw. Distillate inventories also increased, while gasoline stocks fell. Cushing inventories rose after a previous decline, indicating ongoing fluctuations in U.S. crude stock levels.

EQT secured a 20-year deal to purchase 1.5 million tons of LNG from NextDecade, intensifying competition in the LNG sector and potentially benefiting end consumers with favorable prices. NextDecade has also attracted partners and funding, showcasing its commitment to emission reductions through advanced carbon capture and storage technology.


【Oil-Producing Countries Dynamics】

Guyana's ruling People’s Progressive Party won the elections, securing another term to advance the country’s oil and gas reserves development. With growing oil exports, Guyana plans to boost production significantly by 2030, leveraging investments from major corporations like ExxonMobil. This growth is expected to enhance public services and reduce poverty levels.

Eni-BP's joint venture Azule Energy will invest $5 billion in Angola over five years, focusing on sustaining offshore asset output. Despite declining crude production, Angola emphasizes gas monetization for power and industry. The investment aligns with broader efforts to counter natural decline and expand Angola’s energy market presence.

OPEC crude production increased by 400,000 bpd in August, with major contributions from Saudi Arabia, UAE, and Nigeria. As ministers prepare to meet, speculation suggests further production increases, impacting market dynamics. Internal OPEC dynamics show Kazakhstan and Iraq exceeding quotas, complicating compliance amid incentivized production increases.


【Latest Oil Policies】

Germany’s federal regulator warned of potential power supply gaps if renewable energy expansion stalls. While Germany’s electricity supply is guaranteed until 2035, achieving ambitious energy policy goals is crucial. Challenges such as fluctuating renewable output and reliance on hydrocarbons underscore the need for pragmatic energy policy adjustments.

Exxon criticized EU energy policies, citing burdensome regulations and high energy prices. Considering selling chemical plants in Europe, Exxon highlights competition from China and regulatory challenges as key factors. The company questions the EU’s sustainability directives, fearing increased bureaucratic red tape and financial penalties.


【Industry News】

Shell abandoned plans for a biofuels facility in Rotterdam due to challenging market conditions. The decision reflects broader industry trends as major companies reassess renewable investments amid profitability concerns. Shell continues focusing on alternative fuels and carbon capture but shifts priority towards oil and gas reserves.


【Company News】

ConocoPhillips announced a workforce reduction of 20–25% as part of a reorganization effort. Following months of streamlining, the move aligns with broader industry trends of cost control and efficiency improvements. Similar actions from Chevron and BP indicate a widespread response to evolving market demands and energy transition pressures.