Oil Daily | Kazakhstan Hits Record Oil Output, Eyes Turkey for Exports Amid Caspian Route Limitations

【Global Oil Supply and Demand】

Kazakhstan's oil output hit a record high despite limitations in its main export route through the Caspian Pipeline Consortium. With a significant rise in production at the Tengiz oilfield, the country contemplates increasing exports via Turkey and potentially reducing reliance on Russia. However, overproduction may lead to future cuts.

The Federal Energy Regulatory Commission approved Venture Global's request to increase the capacity of its Plaquemines LNG project in Louisiana. This will allow the company to export more LNG, with the first long-term deliveries expected in 2026. Despite increased emissions, FERC deemed them within acceptable limits.

【Oil-Producing Countries Dynamics】

The Kremlin is open to re-engaging with American oil companies, contingent on political shifts. Russia seeks to fill gaps left by Western firms post-sanctions, though it remains reliant on foreign technology for vital operations. U.S.-Russia projects, especially in the Arctic, could be mutually beneficial.

【Latest Oil Policies】

Kazakhstan might need to reduce oil production to compensate for past overproduction. OPEC plans to balance the markets by tapering production cuts based on market conditions, with Kazakhstan, Russia, and Iraq submitting compensation plans for prior overproduction.

【Industry News】

Japanese firm Japex focuses back on oil and gas, moving away from renewables due to low returns. The company plans to acquire U.S. shale operations and invest more in oil exploration by 2025 to secure profits, shifting priorities similar to other major companies like Shell and BP.

【Company News】

Suriname's state oil company Staatsolie needs $1.5 billion to participate in the Gran Morgu deposit development, expected to produce oil by 2028. TotalEnergies plans a $10.5 billion investment to replicate Exxon's Guyana success. Suriname holds substantial oil and gas reserves, awaiting commercial development.

Abu Dhabi's ADNOC is offering 4% of its ADNOC Gas shares to increase liquidity and diversify its shareholder base. The move aligns with ADNOC's strategic goals and follows a previous successful IPO. ADNOC is also restructuring its business, including creating the XRG company for lower-carbon investments.

Texas-based HF Sinclair reported a Q4 2024 loss due to declining refining margins. The company, along with other U.S. refiners, faced reduced profitability from high global fuel supply. Marathon Petroleum and Valero Energy exceeded earnings expectations, while Phillips 66 managed a smaller-than-forecasted loss.