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Oil Daily | Exxon Mobil Projects Steady Crude Demand, Morgan Stanley Lowers Price Forecast Amid Supply Gains

AInvestTuesday, Aug 27, 2024 8:00 am ET
2min read
【Industry News】

Microsoft will buy all the solar power from a project in Singapore to achieve its goal of 100% zero-carbon energy by 2030. The deal with EDP Renewables involves the SolarNova 8 project, which will install up to 200 MWp of solar capacity across over 1,000 public housing buildings and 100 government buildings.

Microsoft signed a global agreement to support renewable power projects potentially worth $10 billion, ensuring a pipeline of new renewable energy capacity to meet growing cloud service demands. This move is part of its strategy to reduce its carbon footprint, which surged due to increased AI and data center operations.

Woodside Energy reported a decline in first-half profits due to lower LNG prices, booking a net result of $1.63 billion. However, the company saw a significant increase in free cash flow and announced strategic acquisitions, including Tellurian’s Driftwood LNG project and a clean ammonia project in the U.S. to strengthen its LNG portfolio.

PetroChina reported a record-high operating profit for the first half of the year amid rising crude oil and natural gas production. The company’s net profit rose by 3.9% to $12.44 billion, with operating income increasing by 5% due to higher production and stable oil prices.

Qatar will supply LNG to Kuwait under a new long-term deal to meet increased power demand. QatarEnergy signed an agreement to supply 3 million tons of LNG per year to Kuwait starting in 2025, with the LNG coming from both existing and future projects.

【Company News】

Occidental Petroleum signed a deal with Microsoft for the sale of 500,000 tons in carbon removal credits from a carbon capture facility being built in Texas. This is part of Microsoft’s broader efforts to lower its carbon footprint amid rising emissions from its AI push.

Colombia’s state oil company Ecopetrol reported five attacks on two pipelines but stated that exports were not affected. The Colombian army was deployed to protect repair staff, and the country aims to increase oil production to over 1 million barrels per day.

Ecopetrol is contributing to output increases through enhanced oil recovery techniques, with Colombia’s current oil recovery rate averaging 27%. The government is reviewing exploration contracts to curb speculative practices that hinder production.

Woodside acquired Tellurian’s Driftwood LNG development and a clean ammonia project in Texas to enhance its LNG portfolio. The Driftwood LNG terminal will export up to 27.6 million tons of LNG annually, while the ammonia project targets lower-carbon production by 2026.

PetroChina reported its highest net profit for the first quarter, driven by steady oil prices and increased domestic natural gas demand. The company is enhancing energy security by boosting domestic exploration and production.

【Global Oil Supply and Demand】

Exxon Mobil forecasts that crude demand will remain over 100 million barrels per day through 2050, contradicting other lower projections. Exxon estimates that fossil fuels will comprise 67% of the global energy mix in 2050, down from 68% last year.

Morgan Stanley revised its oil price forecast downward, citing expectations of more OPEC and non-OPEC supply and weakening demand. The firm anticipates a tight Q3, with stabilization in Q4 and a potential surplus by 2025.

【Latest Oil Policies】

The United Nations Secretary-General called on world leaders to phase out oil and gas and stop new hydrocarbon exploration, citing the climate crisis. He urged G20 countries to finance the transition and finalize their contributions by next year.

The U.S. State Department is targeting companies involved in Russia’s Arctic LNG 2 project and vessels loading LNG from the facility, aiming to disrupt its ability to produce and export LNG amid sanctions.

【Others】

Russia launched around 200 missiles at Ukraine targeting energy installations, rendering parts of Kyiv without power and water. Poland deployed aircraft to defend its airspace, and a U.S. airbase in Germany remains on full alert.

Ukraine targeted Russia’s Engels airfield in a counter-offensive, while Germany thwarted an alleged Russian plan to target a NATO air base, maintaining a state of readiness following U.S. warnings.
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