Oil Daily | Petrobras Boosts Investment; Equinor Resumes Production at Major Norwegian Oil Field

【Company News】

Venture Global's Plaquemines LNG project is facing cost overruns, with total expenses predicted to reach $21-22 billion. Despite setbacks, production is set to begin shortly. The company has been using loopholes to trade LNG on the spot market, delaying Calcasieu Pass deliveries and leading to litigation by investors.

Brazil's Petrobras has announced a $111 billion investment plan for 2025-2029, with $77 billion allocated for oil and gas exploration and production. The new plan represents a $10 billion increase from a previous version. Petrobras aims to boost production from existing fields and diversify its portfolio while focusing on profitable assets.

Equinor is working to resume production at Norway's Johan Sverdrup field after a power outage halted operations. Johan Sverdrup is a significant oil field, with output peaking at 756,000 barrels daily in September. The field accounts for a third of Norway's total oil production.

【Latest Oil Policies】

Wood Mackenzie warns that a second Trump administration could threaten renewable energy investments, although a full repeal of the Inflation Reduction Act is unlikely. Renewables capacity is projected to grow by 243 GW from 2024-2030, but a potential shift in policies could increase carbon emissions and delay fossil fuel demand peak.

Austria continues receiving Russian gas despite OMV's decision to stop payments to Gazprom, leading to a partial cut in supplies. Slovakia has increased gas flows to the Czech Republic and signed a contract with Azerbaijan to prepare for potential Russian supply halts. Turkey plans to boost natural gas exports to the EU, requiring infrastructure investments.

【Industry News】

The U.S. has become a net electricity exporter to Canada due to reduced Canadian hydropower generation and low U.S. natural gas prices. U.S. electricity exports jumped by 70% in 2023, while imports from Canada decreased by 36%. This shift is significant for grid balancing amidst changing energy needs.

Global natural gas production rose by 7.65 bcm in September, driven by countries like Russia and the U.S. Inventories reached record highs ahead of winter. Despite a monthly decline, EU and UK gas demand increased, with storage levels already at 95% by mid-October, surpassing targets.

Saudi Arabia's crude oil exports rose to 5.75 million bpd in September, the highest in three months, due to reduced direct crude burning. However, production fell slightly. Saudi Arabia plans to maintain output levels with OPEC cuts and has delayed supply increases to January 2025.

France is importing record levels of Russian LNG, even as overall purchases fall. SEFE, Germany's state firm, continues to fulfill contracts for Russian LNG, although Germany's economy ministry has advised against receiving Russian cargoes to reduce dependence on Russian gas.

Global offshore wind capacity targets are at risk due to rising costs and canceled projects. Wood Mackenzie and IRENA note that offshore wind costs have surged, prompting companies and governments to reconsider strategies. Significant investment increases are needed to meet renewable capacity goals by 2030.