Oil Daily | Shell Expands LNG Capacity Amid Asia Demand Growth; Guyana Emerges as Key Oil Exporter

【Company News】

TotalEnergies is collaborating with Mistral AI to enhance its energy strategies through AI tools, focusing on low-carbon solutions. A joint innovation lab will be established for testing advanced digital solutions. This partnership underscores TotalEnergies' commitment to AI adoption, contrasting with other European oil majors that scaled down renewable investments.

Shell plans to add 12 million tons of LNG capacity by decade's end from projects in Canada, Qatar, Nigeria, and UAE. As the world's largest LNG trader, Shell is expanding via third-party deals, acquisitions, and partnerships, driven by Asia's demand growth and emissions reduction goals.

【Global Oil Supply and Demand】

World oil demand rose by 990,000 barrels per day in Q1 2025 but will slow to 650,000 bpd for the rest of the year due to record electric car sales and weaker economic growth. The International Energy Agency forecasts 740,000 bpd demand growth for 2025.

Guyana's offshore oil industry will advance with the One Guyana FPSO vessel preparing its first export cargo. Expected to boost production capacity past 900,000 bpd, the ExxonMobil-led consortium is poised to enhance Guyana's status as a key player in global oil exports.

【Oil-Producing Countries Dynamics】

Japan's JERA is increasing U.S. LNG purchases to reduce reliance on Australian supply, covering up to 5.5 million tons annually by 2030. The diversification stems from concerns over Australia's domestic supply issues, pushing Japanese firms to seek more competitive alternatives.

Russia's oil and gas net profits halved in Q1 due to lower oil prices, Western sanctions, and a stronger ruble. The reduced revenues impact the Russian budget, with a 24% expected drop from oil and gas this year compared to previous forecasts.

【Latest Oil Policies】

Negotiators from the EU Parliament and member states agreed to relax gas storage targets, allowing a 10% deviation from the 90% goal. Flexibility aims to prevent uneconomical subsidization or missed targets, with storage deadlines extended across a longer timeframe.

【Industry News】

Oil and gas companies are increasingly adopting AI and digital technologies, like robot dogs and AI-enabled drones, to optimize operations and reduce costs. Predictive maintenance and intelligent performance optimization are seen as key value-creating opportunities.

【Others】

The U.S. State Department plans to withdraw non-essential personnel from its Baghdad embassy amid heightened security risks tied to failed nuclear negotiations with Iran, raising concerns over regional energy stability.

U.S. President Trump expressed doubt about reaching a nuclear deal with Iran, highlighting decreased confidence and ongoing insistence on strict limits on Iran's uranium enrichment and regional missile activities.

China and the U.S. reached a framework agreement for China to lift export curbs on rare earths, subject to presidential approval, aiming to alleviate supply chain bottlenecks in the automotive industry.