Oil Daily | Saudi Arabia, Russia Resist Fossil Fuel Reduction; Nigerian Gasoline Prices Rise Amid Refinery Shift

【Latest Oil Policies】

Azerbaijan will host COP29, unveiling initiatives like a Climate Finance Action Fund for global emission reduction and energy storage expansion. The previous COP28 ended with a compromise on fossil fuel transition, with resistance from oil exporters like Saudi Arabia. Current talks face pushback from major oil producers.

The Venezuelan opposition is urging the U.S. to revoke licenses for American oil companies in Venezuela to pressure the Maduro regime. U.S. sanctions limit operations without special licenses, affecting Chevron and others. Temporary sanctions relief ended, and the opposition claims U.S. company presence legitimizes Maduro's government.

The UK government targets Hossein Shamkhani's oil trading network linked to Iranian and Russian crude. London's Companies House plans to dissolve Nest Wise Trading Ltd. for regulatory failures. Shamkhani's network reportedly evades sanctions, with U.S. and UK authorities increasing scrutiny.

The UK oil and gas industry met emissions targets early, with significant CO2 and methane reductions. Despite ambitious energy transition goals, changes in tax incentives might lead to industry exits and reduced production, impacting wind and solar funding. Analysts warn of significant capital expenditure cuts by 2030.

Developed economies could aid developing countries in energy transitions, reducing global costs, suggested Italy's Central Bank governor at a G7 conference. Discussions continue on financing transitions for poorer nations following a COP28 compromise on fossil fuel phase-out. Loans with high interest rates have faced criticism.

【Oil-Producing Countries Dynamics】

Major oil producers, including Saudi Arabia and Russia, resist agreements to reduce fossil fuel usage. Negotiators from Western countries report ongoing pushbacks ahead of the COP29 summit, indicating challenges in reaching consensus on reducing the reliance on fossil fuels.

Nigeria’s NNPC Ltd increased gasoline prices by 11% after starting purchases from the Dangote refinery, Africa’s largest. The deal aligns with international gasoline prices and exchange rates. Dangote's refinery is expected to shift Nigeria from a gasoline importer to exporter, affecting global markets.

【Industry News】

Shanghai suspended LNG operations due to Typhoon Bebinca. Disruptions were noted in U.S. Gulf Coast LNG due to Hurricane Francine, impacting some production platforms. The Bureau of Safety and Environmental Enforcement reported ongoing production shutdowns, affecting oil and gas outputs in the Gulf of Mexico.

India secured $386 billion in investments for renewable energy expansion, targeting 500 GW capacity by 2030. Reliance Industries and Adani pledged significant renewable projects. Despite coal reliance, India sees growing electricity demand, with renewables expected to meet a substantial portion of new demand.

【Company News】

BP is selling its U.S. onshore wind business to focus on solar through Lightsource BP. The divestment aligns with BP’s strategy shift to fossil fuels amid challenges in the wind sector. BP also finalized a $1B agreement with Apollo for natural gas pipeline investment.

【Others】

Financial institutions have committed $386 billion to support India's renewable energy goals. The country aims for 500 GW capacity by 2030, with major contributions from Reliance Industries and Adani. India’s electricity demand is rising, with renewables expected to cover significant future needs.