Oil Daily | Death of Richest US Oilman, Russia's Oil Exports Up, Guyana’s Exxon Project Expansion

【Company News】

The richest oilman in the United States has died, according to a Friday statement from Endeavor Energy Resources LP. Autry Stephens, founder of Midland-based Endeavor Energy Resources LP, died at 86 years old. Following his cancer diagnosis, Stephens agreed to sell Endeavor to Diamondback Energy for $26 billion, making him the richest oil driller in the United States. The deal also made Diamondback Energy the third-largest oil producer in the Permian Basin. Diamondback won out over rival Conoco in the Endeavor purchase.

Stephens studied petroleum engineering at the University of Texas at Austin, earned a master's degree, and later worked with Humble Oil and Refining Company and the Army Corps of Engineers. He moved on to appraising oil and gas holdings for a Texas bank, then struck out on his own, drilling his first well in 1979 in the Spraberry Trend in the Permian. He also starred in the reality TV show "Black Gold."

Oilfield services giant SLB, formerly Schlumberger, is still operating in Russia and expanding its operations there. This is according to a Financial Times report that cites filings showing SLB has been importing equipment into Russia, hiring new employees, and signing new contracts. SLB delivered $17.5 million worth of equipment into Russia between August and December last year. Activists criticize Western firms for continuing operations that may indirectly support Russia’s actions.

【Global Oil Supply and Demand】

Guyana expects to receive the development plan for Exxon’s seventh oil project offshore the South American country early next year, Natural Resources Minister Vickram Bharrat stated. The new Hammerhead project is set for start-up in 2029 and expected to boost Guyana’s oil production capacity to more than 1.4 million barrels per day (bpd). Currently, Exxon’s consortium in Guyana produces about 650,000 bpd.

As many Russian refineries completed planned maintenance, Russia raised its seaborne exports of fuel oil in July, sending a large part of the volumes to China and Saudi Arabia. Total Russian shipments of fuel oil and vacuum gasoil (VGO) increased by 7% month-on-month in July to 4 million metric tons. Russia has pivoted to Asia in its seaborne exports following Western embargoes on petroleum imports from Russia.

Tankers and container ships avoiding the Red Sea route are set to burn an additional 500,000 barrels per day (bpd) of fuel oil this year due to the longer alternative route via the Cape of Good Hope in Africa, Trafigura has estimated. This increased fuel consumption would equal a 4.5% increase in annual emissions from oil tankers alone.

【Oil-Producing Countries Dynamics】

The world’s third-largest oil importer, India, remained Russia’s number-two crude buyer in July, importing $2.8 billion worth of Russian crude. India was the second-largest buyer of Russian fossil fuels, with nearly 80% of its imports from Russia being crude oil. Russia has become India’s top oil supplier since the invasion of Ukraine and subsequent Western embargoes on Russian crude sales.

【Latest Oil Policies】

China is looking to win over new markets for its biodiesel and other biofuel products as its largest buyer so far, the EU, imposed anti-dumping duties on Chinese imports. The European Commission decided to impose provisional anti-dumping duties on imports of Chinese HVO and FAME. The duties range between 12.8% and 36.4%. Chinese firms are now looking to sell more biofuels to the shipping industry in China and Singapore.

California’s governor, Gavin Newsom, has proposed a measure forcing refiners in the state to maintain a certain level of gasoline stocks to avoid shortages that lead to price jumps at the pump. The proposal follows findings by the California Energy Commission that low gasoline inventory led to higher prices. Regulation and lawsuits are the two tools Newsom is using to fight Big Oil.

【Industry News】

A group of leading U.S. solar panel manufacturers are calling on the U.S. Administration to slap retroactive duties on cheap imports from Vietnam and Thailand to safeguard American businesses and jobs. The American Alliance for Solar Manufacturing Trade Committee has filed a complaint with the U.S. Commerce Department asking for retroactive tariffs on imports from these countries, citing a significant increase in imports.