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Oil Daily | BP Expands in India, Vertex Energy Files for Bankruptcy, OPEC Sees Oil Demand Surge

AInvestWednesday, Sep 25, 2024 8:00 am ET
1min read
【Company News】

BP is expanding its operations in India, recognizing its significance in global energy demand. The company has invested over $12 billion in India, collaborating with Reliance Industries on major gas projects. BP's presence spans upstream, downstream, and clean energy sectors, highlighting a durable partnership with India.

Vertex Energy, an Alabama-based biofuels producer, has filed for bankruptcy. The company faced challenges due to increased biofuel production capacity and moderate federal blending quotas. Vertex previously shifted focus to conventional fuels but continued financial losses led to hiring a restructuring officer. The biofuels industry is experiencing a pivot away from the sector.

Saudi Aramco aims to raise up to $3 billion via U.S.-dollar Islamic bonds, issuing in two tranches. The company is leveraging bonds to support economic diversification. Recently, Aramco raised $6 billion in its first bond market entry since 2021. Aramco remains a key revenue source for the Saudi government.

【Industry News】

OPEC's World Oil Outlook 2024 predicts significant oil demand growth, exceeding 120 million barrels per day by 2050, driven mainly by non-OECD countries. Sectors like petrochemicals and aviation will boost demand, with oil and gas remaining dominant in the energy mix. OPEC emphasizes continued investment in oil infrastructure.

Despite rising costs, renewables remain competitive, with 81% of new capacity cheaper than fossil fuels, according to IRENA. In 2023, solar PV costs dropped significantly. A global pledge aims to triple renewable capacity by 2030, although massive grid and storage investments are necessary.

【Global Oil Supply and Demand】

U.S. crude oil inventories fell by 4.339 million barrels, exceeding expectations. Gasoline and distillate inventories also dropped, reflecting changes in supply dynamics. The Strategic Petroleum Reserve rose slightly, while overall inventories remain below levels at the start of the year.

【Oil-Producing Countries Dynamics】

Libya's crude oil exports have decreased to 400,000 bpd due to political conflicts, affecting shipments primarily to Italy and Greece. Despite agreements to stabilize political tensions, the situation remains uncertain, impacting oil production and exports.

【Others】

Storm Helene poses potential risks but is expected to avoid significant damage to Gulf of Mexico oil platforms. Despite Helene's development into a hurricane, operators have shut in some production. The Gulf contributes notably to U.S. crude and gas production and refining capacity.

The U.S. and Canada plan to negotiate Arctic territorial claims, an area with significant oil reserves. The agreement aims to address overlapping claims amid increased interest from China and Russia. The Arctic region is estimated to hold vast amounts of recoverable oil and gas.
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