Oil Daily | Shell Begins Production at Whale Field, Iran's Oil Exports Surge Amid Political Uncertainty

【Industry News】

New wind power capacity additions in the EU in 2024 were only 13 GW, far short of the 30 GW needed to meet 2030 transition targets, according to WindEurope. The shortfall is attributed to poor permitting rules, delayed grid connections, and slow electrification. Germany leads in new capacity additions.

Shell has started production at the Whale field in the Gulf of Mexico with a peak production target of 100,000 barrels daily. Shell's partnership with Chevron aims for 300,000 barrels by 2026. Meanwhile, Shell has written down a Namibian oil discovery, impacting Namibia's production ambitions.

The latest Indian LNG import terminal by HPCL has received its first cargo, marking a significant step in India's plan to increase LNG imports. This expansion is driven by the country's growing demand for natural gas in industrial processes, as India seeks to become a major force in the natural gas market.

The rally in LNG prices has led to Asian LNG benchmark prices reaching a premium over Brent, making oil-based fuels more cost-competitive. The Japan-Korea marker price traded 22% higher than Brent, prompting potential fuel switching in Asian economies.

Verbund, Austria's largest electric utility, plans a $103-billion investment in renewable energy and battery storage. CEO Michael Strugl emphasized the importance of maintaining climate targets for economic growth, as Austria aims for net zero by 2040, a decade ahead of the EU's target.

Texas has become a leader in renewable energy and battery capacity additions, surpassing California and other states. With 42 GW of wind power and 6.5 GW of battery capacity, Texas's surge in energy storage has lowered costs and improved grid resilience during extreme weather events.

【Oil-Producing Countries Dynamics】

The Caspian Pipeline Consortium pumped 64.4 million metric tons of oil in 2024, falling short of its 70 million target due to reduced loadings from Tengiz. Kazakhstan plans to increase exports via Turkey's port of Ceyhan and comply with OPEC's output reduction commitments.

Norwegian natural gas exports hit a record level in 2024, accounting for 30% of Europe's imports. Norway's production is expected to remain stable but will eventually decrease toward the late 2020s. Continued exploration is needed to maintain production levels.

【Latest Oil Policies】

Slovakia's Prime Minister Robert Fico is advocating for the resumption of gas transit through Ukraine to address higher regional energy costs. Slovakia has secured alternative supplies from Azerbaijan while Moscow expresses willingness for a new deal with Ukraine.

【Others】

A Japanese mafia boss has pleaded guilty to conspiring to traffic uranium and plutonium from Myanmar to Iran, along with drug and weapons offenses. The case underscores the Department of Justice's commitment to holding those trafficking dangerous materials accountable.

Iran's oil exports have rebounded under the Biden administration, with production reaching 3.2 million barrels per day. China's significant imports from Iran might face challenges if Trump returns to office, as he had previously linked trade to reducing Iranian exports.