Oil Daily | Libya's Largest Oilfield Halts Amid Protests; Crescent Energy Reports Strong Earnings Boost
Tuesday, Aug 6, 2024 4:00 am ET
【Company News】
Crescent Energy reported second-quarter net earnings of $37.5 million, a substantial improvement from $5.2 million in Q2 2023, driven by higher oil and gas production. The company's daily output averaged 73,000 barrels of oil and 372 million cu ft of gas. Their 2024 total output outlook is 232,000-241,000 barrels daily. Crescent's acquisition of SilverBow Resources strengthened its position in the Eagle Ford shale formation, expected to deliver significant synergies.
Australian group Woodside Energy announced the acquisition of the OCI clean ammonia project in Beaumont, Texas, for $2.35 billion. This project is under construction, with the first ammonia production targeted for 2025 and lower-carbon ammonia from 2026. The acquisition supports Woodside’s strategy to thrive through the energy transition.
Global investment firm The Carlyle Group has agreed to sell its power plant owner, Cogentrix Energy, to private equity group Quantum Capital for $3 billion. This sale comes as U.S. electricity consumption is set to surge due to AI-driven technologies.
【Oil-Producing Countries Dynamics】
Nigeria is losing $1,000 on every barrel of crude oil exported due to a lack of refining. The government supports local refineries, but regulatory challenges persist. The new Dangote refinery, with a capacity of 650,000 bpd, aims to meet Nigeria’s domestic demand and surplus for export. NNPC Ltd declared a state of emergency in oil and gas production, citing pipeline vandalism and oil theft.
Sharara, Libya's largest oilfield, halted production after weekend protests. The field, with a capacity of over 300,000 bpd, reduced production to 270,000 bpd due to operational curbs. The protests were attributed to rival political factions. The complex political situation has hindered Libya's ability to fully exploit its oil reserves.
【Industry News】
The biggest European car market, Germany, saw a 36.8% drop in electric vehicle sales in July due to the end of subsidies in 2023. Overall car market registrations remained flat, while gasoline and diesel car sales increased slightly. Major automakers are scaling back EV production amid overcapacity and rethinking EV sales goals.
U.S. electric power plants held 138 million short tons of coal at the end of May, the highest level since early 2020, preparing for summer demand despite the continued decline in coal’s share of power generation. Coal still holds a 16% share of U.S. electricity generation, more than any single renewable energy source.
【Latest Oil Policies】
The Nigerian federal government is focusing on boosting crude oil production and domestic refining capacity. The new Dangote refinery is seen as a critical asset in achieving these goals and reducing Nigeria’s dependency on refined product imports.
【Others】
European benchmark natural gas prices dropped by 5% due to strong pipeline supply from Norway and a broad market sell-off amid U.S. economic fears. Despite concerns over supply disruptions from the Mediterranean, the gas market remains volatile with potential changes based on Asian LNG demand.
Libya's internationally recognized government accused its eastern rival of "political blackmail" amid protests that have curtailed operations at the Sharara oil field. This ongoing political instability continues to challenge Libya's oil production and export plans.
Crescent Energy reported second-quarter net earnings of $37.5 million, a substantial improvement from $5.2 million in Q2 2023, driven by higher oil and gas production. The company's daily output averaged 73,000 barrels of oil and 372 million cu ft of gas. Their 2024 total output outlook is 232,000-241,000 barrels daily. Crescent's acquisition of SilverBow Resources strengthened its position in the Eagle Ford shale formation, expected to deliver significant synergies.
Australian group Woodside Energy announced the acquisition of the OCI clean ammonia project in Beaumont, Texas, for $2.35 billion. This project is under construction, with the first ammonia production targeted for 2025 and lower-carbon ammonia from 2026. The acquisition supports Woodside’s strategy to thrive through the energy transition.
Global investment firm The Carlyle Group has agreed to sell its power plant owner, Cogentrix Energy, to private equity group Quantum Capital for $3 billion. This sale comes as U.S. electricity consumption is set to surge due to AI-driven technologies.
【Oil-Producing Countries Dynamics】
Nigeria is losing $1,000 on every barrel of crude oil exported due to a lack of refining. The government supports local refineries, but regulatory challenges persist. The new Dangote refinery, with a capacity of 650,000 bpd, aims to meet Nigeria’s domestic demand and surplus for export. NNPC Ltd declared a state of emergency in oil and gas production, citing pipeline vandalism and oil theft.
Sharara, Libya's largest oilfield, halted production after weekend protests. The field, with a capacity of over 300,000 bpd, reduced production to 270,000 bpd due to operational curbs. The protests were attributed to rival political factions. The complex political situation has hindered Libya's ability to fully exploit its oil reserves.
【Industry News】
The biggest European car market, Germany, saw a 36.8% drop in electric vehicle sales in July due to the end of subsidies in 2023. Overall car market registrations remained flat, while gasoline and diesel car sales increased slightly. Major automakers are scaling back EV production amid overcapacity and rethinking EV sales goals.
U.S. electric power plants held 138 million short tons of coal at the end of May, the highest level since early 2020, preparing for summer demand despite the continued decline in coal’s share of power generation. Coal still holds a 16% share of U.S. electricity generation, more than any single renewable energy source.
【Latest Oil Policies】
The Nigerian federal government is focusing on boosting crude oil production and domestic refining capacity. The new Dangote refinery is seen as a critical asset in achieving these goals and reducing Nigeria’s dependency on refined product imports.
【Others】
European benchmark natural gas prices dropped by 5% due to strong pipeline supply from Norway and a broad market sell-off amid U.S. economic fears. Despite concerns over supply disruptions from the Mediterranean, the gas market remains volatile with potential changes based on Asian LNG demand.
Libya's internationally recognized government accused its eastern rival of "political blackmail" amid protests that have curtailed operations at the Sharara oil field. This ongoing political instability continues to challenge Libya's oil production and export plans.