Oil Daily | Petrobras Plans $110B Investment to Boost Mature Field Production and Diversify Portfolio
Thursday, Oct 31, 2024 8:00 am ET
2min read 【Global Oil Supply and Demand】
Exelon has seen a significant rise in power supply deals with data center operators, driving increased electricity demand in the U.S. The demand, now at 11 GW, has sparked debates on grid infrastructure costs and supply distribution. Exelon plans to invest $34.5 billion by 2027 to meet this demand.
Data centers are becoming major electricity consumers in the U.S., partly due to the development of AI systems. This trend highlights the role of natural gas and nuclear energy as reliable power sources, as well as grid limitations that are challenging to overcome quickly.
Global investment firm KKR and Energy Capital Partners announced a $50 billion partnership to invest in data centers and power generation, aiming to support AI growth. This deal reflects growing power demand driven by AI and involves collaboration with industry leaders to accelerate data center infrastructure development.
【Oil-Producing Countries Dynamics】
Petrobras is considering increasing its investment to $110 billion for 2025-2029. The focus is on portfolio diversification, existing field production, and reversing decline in mature fields like Campos Basin, with recent production figures at 2.7 million barrels daily.
Exxon has agreed to sell its Vaca Muerta shale play assets in Argentina to Pluspetrol, including stakes in oil blocks and pipeline operators. The Vaca Muerta is the world's second-largest shale gas deposit, and asset sales follow previous investor interest and government policies to boost foreign investment.
Gazprom is raising its 2024 investment plan to $16.9 billion due to rising exports and domestic demand. Despite reduced European gas exports, Gazprom is advancing projects to boost supply to China and aims to maximize the Power of Siberia pipeline's capacity by end of 2024.
【Company News】
Hess Corp posted strong earnings, exceeding estimates with significant production growth in Guyana and Bakken. Despite slight declines due to oil price fluctuations, Hess anticipates increased production in Q4, with full-year capital expenditures revised to $4.9 billion.
Gazprom's subsidiary is suing Linde for $884 million over withdrawal from a gas processing project in Russia. This follows Linde's exit post-Ukraine invasion, with previous contracts and projects now the subject of multiple legal claims.
【Others】
Vietnam's VinFast Auto is set to receive $1 billion in funding from a consortium led by Emirates Driving Company. This partnership focuses on EV production and road safety, coinciding with VinFast's international expansion and Vietnam's cooperation in fuel supply with Middle Eastern entities.
Five U.S. governors have urged PJM Interconnection to revise its pricing system after a drastic increase in power plant costs. The auction outcome, linked to green energy transition challenges, underscores the need for reliable power supply amid rising demand from AI and extreme weather.
Western countries need additional measures to reduce reliance on Russian nuclear fuel, according to French company Orano. Sanctions and long-term contracts are advocated to shift dependency away from Russian supplies, as nuclear power becomes crucial for emissions cuts and energy security.
Exelon has seen a significant rise in power supply deals with data center operators, driving increased electricity demand in the U.S. The demand, now at 11 GW, has sparked debates on grid infrastructure costs and supply distribution. Exelon plans to invest $34.5 billion by 2027 to meet this demand.
Data centers are becoming major electricity consumers in the U.S., partly due to the development of AI systems. This trend highlights the role of natural gas and nuclear energy as reliable power sources, as well as grid limitations that are challenging to overcome quickly.
Global investment firm KKR and Energy Capital Partners announced a $50 billion partnership to invest in data centers and power generation, aiming to support AI growth. This deal reflects growing power demand driven by AI and involves collaboration with industry leaders to accelerate data center infrastructure development.
【Oil-Producing Countries Dynamics】
Petrobras is considering increasing its investment to $110 billion for 2025-2029. The focus is on portfolio diversification, existing field production, and reversing decline in mature fields like Campos Basin, with recent production figures at 2.7 million barrels daily.
Exxon has agreed to sell its Vaca Muerta shale play assets in Argentina to Pluspetrol, including stakes in oil blocks and pipeline operators. The Vaca Muerta is the world's second-largest shale gas deposit, and asset sales follow previous investor interest and government policies to boost foreign investment.
Gazprom is raising its 2024 investment plan to $16.9 billion due to rising exports and domestic demand. Despite reduced European gas exports, Gazprom is advancing projects to boost supply to China and aims to maximize the Power of Siberia pipeline's capacity by end of 2024.
【Company News】
Hess Corp posted strong earnings, exceeding estimates with significant production growth in Guyana and Bakken. Despite slight declines due to oil price fluctuations, Hess anticipates increased production in Q4, with full-year capital expenditures revised to $4.9 billion.
Gazprom's subsidiary is suing Linde for $884 million over withdrawal from a gas processing project in Russia. This follows Linde's exit post-Ukraine invasion, with previous contracts and projects now the subject of multiple legal claims.
【Others】
Vietnam's VinFast Auto is set to receive $1 billion in funding from a consortium led by Emirates Driving Company. This partnership focuses on EV production and road safety, coinciding with VinFast's international expansion and Vietnam's cooperation in fuel supply with Middle Eastern entities.
Five U.S. governors have urged PJM Interconnection to revise its pricing system after a drastic increase in power plant costs. The auction outcome, linked to green energy transition challenges, underscores the need for reliable power supply amid rising demand from AI and extreme weather.
Western countries need additional measures to reduce reliance on Russian nuclear fuel, according to French company Orano. Sanctions and long-term contracts are advocated to shift dependency away from Russian supplies, as nuclear power becomes crucial for emissions cuts and energy security.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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