Oil Daily | BP Shifts Focus Back to Fossil Fuels; U.S. Sanctions Impact Iranian Oil Trade

【Oil-Producing Countries Dynamics】

BP is set to announce a strategic shift, abandoning its goals to reduce oil and gas production and focusing more on its core fossil fuel operations, influenced by new major stakeholder Elliott Management. The change is expected to boost shareholder returns and align with investor demands for higher profitability.

The U.S. has sanctioned four Indian companies and several others involved in Iranian oil trade, marking a return to a stricter stance on Iran. This move, part of a broader pressure strategy, aims to significantly reduce Iranian oil exports, affecting global oil trade dynamics.

President Donald Trump has expressed his desire to revive the Keystone XL pipeline project, which was previously canceled by the Biden Administration. Despite logistical challenges, the project garners strong public support due to high demand for Canadian crude in the U.S.

【Latest Oil Policies】

The U.S. announced sanctions on over 30 individuals and vessels linked to Iranian oil trade, targeting operations in India, China, and other regions. These actions are part of Trump's strategy to curb Iranian oil exports, potentially impacting global oil prices and trade routes.

【Industry News】

A study reveals that land used for golf courses globally exceeds that for solar or wind energy plants. This highlights potential areas for renewable energy expansion, emphasizing the need for reevaluating land use for activities benefiting limited populations amid ongoing debates on renewable energy development.

Asian LNG buyers are negotiating for cheaper long-term supply deals with Qatar, challenging the Gulf country's pricing strategy linked to Brent Crude and fixed delivery ports. This has complicated agreements as buyers seek more flexible and cost-effective terms.

【Company News】

Chevron Corp. plans to lay off 15-20% of its global workforce as it reorganizes its business structure to improve operational efficiency and cut costs. The company aims for significant growth in cash flow and production, especially in the Gulf of Mexico and U.S. shale.

BP is expected to announce a strategic pivot back to oil and gas, reducing renewable energy investment. This shift responds to investor pressures for higher returns and follows Elliott Management's stake acquisition, pushing for strategic changes to improve BP’s stock performance.

National Grid plc sold its U.S. onshore renewables business to Brookfield Asset Management for $1.735 billion. The sale aligns with National Grid's strategy to focus on networks, while Brookfield aims to strengthen its energy transition investments amid a broader shift in energy investment strategies.

【Others】

The U.S. imported more fossil fuels from Russia than it provided in financial aid to Ukraine during the third year of the Russian invasion. Despite sanctions, EU imports of Russian fossil fuels remained high, contributing significantly to Russia's revenue, with China and India being major markets.