Oil Daily | OPEC Lowers Demand Growth Forecast Amid Stable Russian Gas Supply and Exxon’s Output Surge
Thursday, Dec 12, 2024 7:00 am ET
2min read 【Company News】
Investors in ReNew Energy, the second-largest renewables company in India, are planning to take the company private, valuing it at $2.82 billion. The move is supported by major stakeholders like the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority. However, Fitch warns the delisting could impact ReNew's ability to raise funds, while CreditSights sees potential benefits in reduced compliance costs and new funding channels.
Chevron and Exxon plan to enter the electricity supply market, focusing on natural gas and carbon capture to ensure low-emission energy supply, driven by the expected demand surge from data centers. This strategic pivot aligns with the anticipated increase in electricity demand due to AI and data center growth in the U.S.
U.S. oil giant Exxon Mobil plans to increase spending to boost oil and gas output by 18% to 5.4 million barrels per day by 2030. Exxon aims to grow production in low-cost fields, notably tripling its output in the Permian Basin and enhancing operations in Guyana. The Stabroek block in Guyana continues to yield significant profits.
U.S. clean energy investor Acadia Infrastructure Capital, in collaboration with Microsoft, is launching a coalition to develop $9 billion worth of clean energy projects in the United States. The coalition aims to install about 5 gigawatts of renewable energy over five years, supporting corporate-led renewable energy financing and benefiting local communities.
【Oil-Producing Countries Dynamics】
The premier of Ontario threatened to cut off energy exports to the United States if President-elect Donald Trump imposes a 25% tariff on all imports from Canada. This potential retaliatory move underscores the importance of Canadian crude for U.S. refineries and could significantly impact energy prices and jobs in both countries.
OPEC cut its oil demand growth forecasts for 2024 and 2025, citing bearish data and lowering its demand growth estimate to 1.6 million barrels per day for 2024. This is part of ongoing adjustments to global oil demand projections, influenced by various energy agencies' differing views on future demand and market dynamics.
Russian pipeline natural gas supply to Europe through Ukraine remains stable, even as the transit agreement is set to expire on December 31, 2024. With no plans for renewal, alternative supply arrangements are being explored, including a new deal between Slovakia's SPP and Azerbaijan’s SOCAR.
Yamal LNG, a Russian LNG developer, has started using the Axios II tanker for ship-to-ship transfers in the Barents Sea. This move aims to free ice-class tankers while dealing with Western sanctions on Russian LNG projects. The Arctic LNG 2 project faces delays due to sanctions, impacting Russia's LNG market ambitions.
【Industry News】
The Indian government mandated that local solar developers must use domestically produced panels starting in 2026 to reduce dependence on Chinese imports. This aligns with India's broader goal to increase non-hydrocarbon power generation capacity to 500 GW by 2030, up from 156 GW currently.
Intraday power prices in Germany surged as natural gas-fired electricity generation hit a two-year high due to low wind speeds affecting wind power output. The resulting power supply gap had to be filled by fossil fuels, driving up electricity prices during peak demand hours amid colder weather conditions.
【Others】
The U.S. consumer price index rose 0.3% in November, driven by higher food and accommodation costs, while rent growth slowed. Despite inflation concerns, analysts predict the Federal Reserve will continue cutting interest rates, supported by a cooling labor market and easing rental costs.
The average national gasoline price in the U.S. fell below $3 per gallon, the lowest since 2021, benefiting motorists during the holiday season. This decrease reflects a broader trend of falling oil prices, contributing to cooling overall inflation since its June 2022 peak.
Investors in ReNew Energy, the second-largest renewables company in India, are planning to take the company private, valuing it at $2.82 billion. The move is supported by major stakeholders like the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority. However, Fitch warns the delisting could impact ReNew's ability to raise funds, while CreditSights sees potential benefits in reduced compliance costs and new funding channels.
Chevron and Exxon plan to enter the electricity supply market, focusing on natural gas and carbon capture to ensure low-emission energy supply, driven by the expected demand surge from data centers. This strategic pivot aligns with the anticipated increase in electricity demand due to AI and data center growth in the U.S.
U.S. oil giant Exxon Mobil plans to increase spending to boost oil and gas output by 18% to 5.4 million barrels per day by 2030. Exxon aims to grow production in low-cost fields, notably tripling its output in the Permian Basin and enhancing operations in Guyana. The Stabroek block in Guyana continues to yield significant profits.
U.S. clean energy investor Acadia Infrastructure Capital, in collaboration with Microsoft, is launching a coalition to develop $9 billion worth of clean energy projects in the United States. The coalition aims to install about 5 gigawatts of renewable energy over five years, supporting corporate-led renewable energy financing and benefiting local communities.
【Oil-Producing Countries Dynamics】
The premier of Ontario threatened to cut off energy exports to the United States if President-elect Donald Trump imposes a 25% tariff on all imports from Canada. This potential retaliatory move underscores the importance of Canadian crude for U.S. refineries and could significantly impact energy prices and jobs in both countries.
OPEC cut its oil demand growth forecasts for 2024 and 2025, citing bearish data and lowering its demand growth estimate to 1.6 million barrels per day for 2024. This is part of ongoing adjustments to global oil demand projections, influenced by various energy agencies' differing views on future demand and market dynamics.
Russian pipeline natural gas supply to Europe through Ukraine remains stable, even as the transit agreement is set to expire on December 31, 2024. With no plans for renewal, alternative supply arrangements are being explored, including a new deal between Slovakia's SPP and Azerbaijan’s SOCAR.
Yamal LNG, a Russian LNG developer, has started using the Axios II tanker for ship-to-ship transfers in the Barents Sea. This move aims to free ice-class tankers while dealing with Western sanctions on Russian LNG projects. The Arctic LNG 2 project faces delays due to sanctions, impacting Russia's LNG market ambitions.
【Industry News】
The Indian government mandated that local solar developers must use domestically produced panels starting in 2026 to reduce dependence on Chinese imports. This aligns with India's broader goal to increase non-hydrocarbon power generation capacity to 500 GW by 2030, up from 156 GW currently.
Intraday power prices in Germany surged as natural gas-fired electricity generation hit a two-year high due to low wind speeds affecting wind power output. The resulting power supply gap had to be filled by fossil fuels, driving up electricity prices during peak demand hours amid colder weather conditions.
【Others】
The U.S. consumer price index rose 0.3% in November, driven by higher food and accommodation costs, while rent growth slowed. Despite inflation concerns, analysts predict the Federal Reserve will continue cutting interest rates, supported by a cooling labor market and easing rental costs.
The average national gasoline price in the U.S. fell below $3 per gallon, the lowest since 2021, benefiting motorists during the holiday season. This decrease reflects a broader trend of falling oil prices, contributing to cooling overall inflation since its June 2022 peak.
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