Oil Daily | Saudi Arabia to Boost Oil Production Amid OPEC Cuts; BP Refocuses on Oil Investments
Wednesday, Apr 23, 2025 8:00 am ET
2min read 【Global Oil Supply and Demand】
Solar power generation in Europe is rising and set to achieve record levels this year, with significant increases in output from key markets, marking a shift toward renewables in the power mix. In March, solar power accounted for 8.2% of Europe's utility-supplied electricity, overtaking coal generation.
Iran's Phase 11 of the South Pars field boosts natural gas production by 3 mcm/d, relying on domestic companies due to sanctions. The development increases Iran's total output from South Pars to 20 mcm/d, underscoring the country's efforts to overcome sanctions and enhance its gas supply.
【Oil-Producing Countries Dynamics】
Saudi Arabia's economy is projected to grow by 3% in 2025, rebounding from 1.3% growth in 2024. The IMF has revised forecasts downward due to slower oil production recovery and global economic uncertainties. Saudi Arabia's oil production is set to increase following eased OPEC production cuts.
Saudi Arabia's crude oil exports rose by nearly 500,000 bpd in February, maintaining production levels in line with OPEC agreements. The country has been pivotal in OPEC-wide production cuts and plans to increase output in April and May, reflecting a healthier oil market outlook according to OPEC.
【Latest Oil Policies】
Taiwan commits to increasing U.S. oil and gas imports amidst tariff talks with the Trump administration. Despite a 90-day suspension of a 32% tariff, Taiwan faces challenges due to its trade imbalance with the U.S. and competes with other Asian countries pledging more U.S. energy purchases.
【Industry News】
Hammerfest LNG in Norway has shut down for planned maintenance until July 10. The facility, crucial for Europe's gas supply, has a history of unplanned outages, raising concerns about potential disruptions. However, healthy storage levels in Europe mitigate immediate risks.
Europe's natural gas prices fell post-Easter, aided by higher-than-average LNG arrivals, easing storage refill concerns. EU flexibility in gas storage targets is helping stabilize prices. The market structure in contango encourages stockpiling for the upcoming winter.
【Company News】
Elliott Management pressures BP to increase cash flow by cutting spending and refocusing on oil and gas investments. BP plans significant upstream projects, increasing production and investment in oil and gas, reversing its transition plans in response to investor demands.
Woodside Energy faces challenges with its Louisiana LNG project due to ongoing tariff concerns. The company seeks partners to share costs and has sold a 40% stake to Stonepeak, which will cover the majority of upcoming capital expenditures for the project's first phase.
Kinder Morgan remains optimistic despite U.S.-China LNG tariffs and AI data center demands, posting solid financial results and increasing dividends. The company is focused on expanding its natural gas transport capabilities, betting on AI-driven energy demand growth.
【Others】
The American Petroleum Institute reported a decline in U.S. crude oil inventories, with gasoline and distillate stocks also down. Despite inventory reductions, strategic reserves increased slightly, highlighting ongoing adjustments in the U.S. oil market.
Solar power generation in Europe is rising and set to achieve record levels this year, with significant increases in output from key markets, marking a shift toward renewables in the power mix. In March, solar power accounted for 8.2% of Europe's utility-supplied electricity, overtaking coal generation.
Iran's Phase 11 of the South Pars field boosts natural gas production by 3 mcm/d, relying on domestic companies due to sanctions. The development increases Iran's total output from South Pars to 20 mcm/d, underscoring the country's efforts to overcome sanctions and enhance its gas supply.
【Oil-Producing Countries Dynamics】
Saudi Arabia's economy is projected to grow by 3% in 2025, rebounding from 1.3% growth in 2024. The IMF has revised forecasts downward due to slower oil production recovery and global economic uncertainties. Saudi Arabia's oil production is set to increase following eased OPEC production cuts.
Saudi Arabia's crude oil exports rose by nearly 500,000 bpd in February, maintaining production levels in line with OPEC agreements. The country has been pivotal in OPEC-wide production cuts and plans to increase output in April and May, reflecting a healthier oil market outlook according to OPEC.
【Latest Oil Policies】
Taiwan commits to increasing U.S. oil and gas imports amidst tariff talks with the Trump administration. Despite a 90-day suspension of a 32% tariff, Taiwan faces challenges due to its trade imbalance with the U.S. and competes with other Asian countries pledging more U.S. energy purchases.
【Industry News】
Hammerfest LNG in Norway has shut down for planned maintenance until July 10. The facility, crucial for Europe's gas supply, has a history of unplanned outages, raising concerns about potential disruptions. However, healthy storage levels in Europe mitigate immediate risks.
Europe's natural gas prices fell post-Easter, aided by higher-than-average LNG arrivals, easing storage refill concerns. EU flexibility in gas storage targets is helping stabilize prices. The market structure in contango encourages stockpiling for the upcoming winter.
【Company News】
Elliott Management pressures BP to increase cash flow by cutting spending and refocusing on oil and gas investments. BP plans significant upstream projects, increasing production and investment in oil and gas, reversing its transition plans in response to investor demands.
Woodside Energy faces challenges with its Louisiana LNG project due to ongoing tariff concerns. The company seeks partners to share costs and has sold a 40% stake to Stonepeak, which will cover the majority of upcoming capital expenditures for the project's first phase.
Kinder Morgan remains optimistic despite U.S.-China LNG tariffs and AI data center demands, posting solid financial results and increasing dividends. The company is focused on expanding its natural gas transport capabilities, betting on AI-driven energy demand growth.
【Others】
The American Petroleum Institute reported a decline in U.S. crude oil inventories, with gasoline and distillate stocks also down. Despite inventory reductions, strategic reserves increased slightly, highlighting ongoing adjustments in the U.S. oil market.
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