Oil Daily | Guyana's Crude Exports Surge Amid Rising European Demand, Suriname Eyes Similar Growth
Thursday, Jan 9, 2025 7:01 am ET
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【Global Oil Supply and Demand】
Crude oil exports from Guyana soared by 54% last year, driven by strong European demand. ExxonMobil, Hess Corp, and CNOOC increased production from the Stabroek Block, making Guyana the fifth-largest exporter in Latin America. Guyana's crude, appreciated for its quality, is expected to further boost its European market share.
India's electricity generation in 2024 rose by 5.8% compared to 2023, marking the slowest growth since the pandemic, as economic growth weakened in the latter half. This resulted in lower power output, attributed to weaker consumer demand and investment. Analysts anticipate a rebound in power demand by 6%-7% in 2025.
Chinese fuel oil imports are set to slow at the start of 2025 due to a tariff hike from 1% to 3%. This could affect the refining margins of smaller private refiners already grappling with low profits. Despite a boost from crude import quotas, many private refiners continue to face challenges.
【Oil-Producing Countries Dynamics】
Saudi Arabia's crude oil shipments to China are expected to drop in February to 43.5 million barrels after Aramco raised prices for the first time in three months. The shift affects deliveries to CNOOC and PetroChina but boosts supplies to Sinopec and Sinochem.
TotalEnergies plans to commence drilling in Block 64 offshore Suriname in May, partnering with QatarEnergy and Petronas. The venture aims to harness Suriname's vast reserves, potentially mirroring Guyana's success. Suriname's oil industry is seen as poised for growth, with significant investments underway.
India's ONGC has enlisted BP as a technical services provider to increase production at its largest oilfield. BP's role will involve reviewing field performance to enhance output. India aims to reduce its dependency on oil imports by boosting domestic production.
【Latest Oil Policies】
A mandated lease sale in Alaska's Arctic National Wildlife Refuge drew no bids, highlighting industry disinterest due to existing undeveloped leases. The state of Alaska plans to sue the federal government over lease sale restrictions, arguing they violate Congressional mandates for development.
China's foreign ministry is unaware of Shandong Port Group's decision to ban U.S.-sanctioned vessels. The province is a key entry point for sanctioned oil imports, including those from Iran. Tighter U.S. sanctions have constrained shipping capacity, impacting oil flow.
【Industry News】
Shell anticipates significantly lower LNG production and trading results for Q4 2024 due to maintenance and hedging contract impacts. The company expects a $1.3 billion charge related to emissions payments and up to $1.2 billion in impairments in renewables. Chemical margins have also declined.
Chevron aims to increase free cash flow by up to $8 billion by next year, driven by projects in Kazakhstan, U.S. shale, and the Gulf of Mexico. The company plans to acquire Hess Corp, despite Exxon's objections regarding Hess' Guyana asset stake. Arbitration is expected to conclude by September.
【Company News】
India's ONGC has selected BP as a technical services provider to boost production at its largest oilfield. The collaboration aims to enhance production and reduce dependence on imports, reflecting India's broader strategy to increase domestic oil output.
【Others】
The U.S. Department of Energy's Loan Programs Office announced a $1.81 billion loan guarantee to Arizona Public Service Company for clean energy infrastructure. This initiative is part of a larger effort to finalize loans before a potential change in administration, despite scrutiny from Trump's camp.
Crude oil exports from Guyana soared by 54% last year, driven by strong European demand. ExxonMobil, Hess Corp, and CNOOC increased production from the Stabroek Block, making Guyana the fifth-largest exporter in Latin America. Guyana's crude, appreciated for its quality, is expected to further boost its European market share.
India's electricity generation in 2024 rose by 5.8% compared to 2023, marking the slowest growth since the pandemic, as economic growth weakened in the latter half. This resulted in lower power output, attributed to weaker consumer demand and investment. Analysts anticipate a rebound in power demand by 6%-7% in 2025.
Chinese fuel oil imports are set to slow at the start of 2025 due to a tariff hike from 1% to 3%. This could affect the refining margins of smaller private refiners already grappling with low profits. Despite a boost from crude import quotas, many private refiners continue to face challenges.
【Oil-Producing Countries Dynamics】
Saudi Arabia's crude oil shipments to China are expected to drop in February to 43.5 million barrels after Aramco raised prices for the first time in three months. The shift affects deliveries to CNOOC and PetroChina but boosts supplies to Sinopec and Sinochem.
TotalEnergies plans to commence drilling in Block 64 offshore Suriname in May, partnering with QatarEnergy and Petronas. The venture aims to harness Suriname's vast reserves, potentially mirroring Guyana's success. Suriname's oil industry is seen as poised for growth, with significant investments underway.
India's ONGC has enlisted BP as a technical services provider to increase production at its largest oilfield. BP's role will involve reviewing field performance to enhance output. India aims to reduce its dependency on oil imports by boosting domestic production.
【Latest Oil Policies】
A mandated lease sale in Alaska's Arctic National Wildlife Refuge drew no bids, highlighting industry disinterest due to existing undeveloped leases. The state of Alaska plans to sue the federal government over lease sale restrictions, arguing they violate Congressional mandates for development.
China's foreign ministry is unaware of Shandong Port Group's decision to ban U.S.-sanctioned vessels. The province is a key entry point for sanctioned oil imports, including those from Iran. Tighter U.S. sanctions have constrained shipping capacity, impacting oil flow.
【Industry News】
Shell anticipates significantly lower LNG production and trading results for Q4 2024 due to maintenance and hedging contract impacts. The company expects a $1.3 billion charge related to emissions payments and up to $1.2 billion in impairments in renewables. Chemical margins have also declined.
Chevron aims to increase free cash flow by up to $8 billion by next year, driven by projects in Kazakhstan, U.S. shale, and the Gulf of Mexico. The company plans to acquire Hess Corp, despite Exxon's objections regarding Hess' Guyana asset stake. Arbitration is expected to conclude by September.
【Company News】
India's ONGC has selected BP as a technical services provider to boost production at its largest oilfield. The collaboration aims to enhance production and reduce dependence on imports, reflecting India's broader strategy to increase domestic oil output.
【Others】
The U.S. Department of Energy's Loan Programs Office announced a $1.81 billion loan guarantee to Arizona Public Service Company for clean energy infrastructure. This initiative is part of a larger effort to finalize loans before a potential change in administration, despite scrutiny from Trump's camp.