Oil Daily | Russia Expands India Oil Sales; Guyana's Exports Rise; US Eases Gulf Drilling Rules

【Oil-Producing Countries Dynamics】

Several Russian insurance firms, including Sberbank Insurance, are seeking approval to insure oil tankers transporting Russian crude to India. India has approved five Russian insurers for such coverage, reflecting the country's significant purchase of Russian oil amidst Western bans. Russia has become India's largest oil supplier, reducing OPEC's market share.

Russia's oil well drilling has increased to the highest level in five years, defying Western sanctions. The resilience of Russia's oil industry suggests adaptation to sanctions, with production capacity between 11 and 11.5 million barrels daily. Despite some technological regression, the overall impact of sanctions is lower than predicted.

Guyana's oil production declined slightly in March to 627,000 bpd, but remains significant due to the rapid development of its offshore resources. Guyana's exports to Europe have increased, benefiting from refinery-friendly oil grades. ExxonMobil plans to boost production to 1.3 million bpd by 2030, illustrating Guyana's growing role in global oil markets.

Chevron plans to drill an exploration well offshore Namibia in 2026 or 2027, aiming to capitalize on recent major oil and gas discoveries in the region. Chevron acquired an 80% interest in a Namibian exploration license, joining other majors exploring the promising Walvis and Orange Basins.

【Latest Oil Policies】

The U.S. Interior Department is modifying offshore drilling regulations to increase oil production in the Gulf of Mexico. Changes to pressure requirements could enhance output by 10% over the next decade. The move is part of broader efforts to boost domestic energy production, including reducing project approval times.

The U.S. government is considering establishing a sovereign wealth fund to invest in critical minerals and compete with China's state-backed industries. The proposed fund would support U.S. resource development and supply chain security. However, environmental and tribal groups express concerns over potential ecological impacts.

【Industry News】

The U.S. shale sector faces challenges with current oil prices, leading to mixed messaging from Energy Secretary Chris Wright. While acknowledging shale's resilience, Wright noted $50 oil is unsustainable for producers. The sector seeks stable policies amidst political and fiscal pressures, with Wall Street favoring dividends over expansion.

China's LNG imports are estimated to be 20% lower than last year due to full inventories and reduced demand. This decline benefits Europe, which needs more LNG to refill storage ahead of winter. China's trade war with the U.S. has halted LNG imports from America, shifting focus to Middle Eastern and Asia Pacific suppliers.

【Company News】

Eni SpA is reducing its 2025 capital expenditure plans due to the recent oil price crash while maintaining shareholder distributions. The company aims to offset negative effects through cost-cutting and optimized spending. Eni remains committed to a 5% dividend increase and a $1.7 billion buyback program.