Oil Daily | Texas Adds NatWest to Boycott List; Pemex Signs $1.65B Deal; Russia Extends Gasoline Export Ban
Thursday, Aug 15, 2024 4:00 am ET
2min read ARTY --
FISI --
NWG --
【Oil-Producing Countries Dynamics】
Texas has added British bank NatWest to its list of financial institutions boycotting the energy industry due to NatWest's plan to stop financing oil and gas projects starting in 2026. This policy affects NatWest's business with Texas state agencies and is part of a broader trend where Texas has targeted banks like JP Morgan, BlackRock, HSBC, and Wells Fargo for similar reasons.
Mexico’s state-run oil company Pemex has signed a $1.65-billion deal with CEM Oil and Gas to redevelop the Bacab and Lum oilfields in the Gulf of Mexico, aiming to increase output tenfold over the next 3.5 years. The redevelopment plan includes expanding well depths to boost production to 40,000 barrels per day by 2028.
Russia is extending its ban on gasoline exports from October to the end of December 2024 to stabilize domestic supply amid seasonal demand and scheduled refinery repairs. This move follows previous export bans and adjustments to stabilize domestic fuel prices.
Recent vessel-tracking data monitored by Bloomberg shows that Russian crude oil exports by sea increased by an average of 80,000 barrels per day in the four weeks to August 11. This rebound follows a prior low as Moscow complies with its OPEC production quota and refineries increase runs.
【Latest Oil Policies】
London’s High Court dismissed a lawsuit challenging the approval of the Net Zero Teesside Power project, a gas-fired power plant with carbon capture. The project, a joint venture between BP and Equinor, aims to generate up to 860 megawatts of low-carbon power and contribute to the UK's decarbonization goals. The legal challenge was dismissed as the court found the project aligned with national policy.
【Industry News】
Analysts predict a slowdown in global jet fuel demand due to weaker-than-expected consumption in the U.S. and China. This slowdown is expected to weigh heavily on oil prices, with consumer spending declines potentially affecting demand growth projections for 2024.
Chevron announced a breakthrough in ultra-high-pressure drilling technology at its $5.7-billion Anchor project in the Gulf of Mexico. This new technology could unlock more than 5 billion barrels of previously inaccessible oil deposits globally, including over 2 billion barrels in the U.S. Gulf of Mexico alone.
【Company News】
Colombia’s state-controlled oil company Ecopetrol reported a 17.4% decrease in net income for the second quarter compared to the same period in 2023, citing external factors and variable market conditions. Despite operational improvements, the downstream business faced challenges impacting overall results.
【Others】
German investigators have identified a Ukrainian diver allegedly involved in the sabotage of the Nord Stream gas pipelines in the Baltic Sea in 2022. The suspect, believed to have planted explosives, has since left Poland after an arrest warrant was issued. The investigation concluded that the leaks resulted from deliberate sabotage.
Projectiles suspected to be launched by Iran-aligned militia groups toward a U.S. airbase in Syria fell short of the facility. This incident follows increased attacks on U.S. bases in Syria and Iraq amid rising tensions between Israel and Iran, with fears of further escalation.
Texas has added British bank NatWest to its list of financial institutions boycotting the energy industry due to NatWest's plan to stop financing oil and gas projects starting in 2026. This policy affects NatWest's business with Texas state agencies and is part of a broader trend where Texas has targeted banks like JP Morgan, BlackRock, HSBC, and Wells Fargo for similar reasons.
Mexico’s state-run oil company Pemex has signed a $1.65-billion deal with CEM Oil and Gas to redevelop the Bacab and Lum oilfields in the Gulf of Mexico, aiming to increase output tenfold over the next 3.5 years. The redevelopment plan includes expanding well depths to boost production to 40,000 barrels per day by 2028.
Russia is extending its ban on gasoline exports from October to the end of December 2024 to stabilize domestic supply amid seasonal demand and scheduled refinery repairs. This move follows previous export bans and adjustments to stabilize domestic fuel prices.
Recent vessel-tracking data monitored by Bloomberg shows that Russian crude oil exports by sea increased by an average of 80,000 barrels per day in the four weeks to August 11. This rebound follows a prior low as Moscow complies with its OPEC production quota and refineries increase runs.
【Latest Oil Policies】
London’s High Court dismissed a lawsuit challenging the approval of the Net Zero Teesside Power project, a gas-fired power plant with carbon capture. The project, a joint venture between BP and Equinor, aims to generate up to 860 megawatts of low-carbon power and contribute to the UK's decarbonization goals. The legal challenge was dismissed as the court found the project aligned with national policy.
【Industry News】
Analysts predict a slowdown in global jet fuel demand due to weaker-than-expected consumption in the U.S. and China. This slowdown is expected to weigh heavily on oil prices, with consumer spending declines potentially affecting demand growth projections for 2024.
Chevron announced a breakthrough in ultra-high-pressure drilling technology at its $5.7-billion Anchor project in the Gulf of Mexico. This new technology could unlock more than 5 billion barrels of previously inaccessible oil deposits globally, including over 2 billion barrels in the U.S. Gulf of Mexico alone.
【Company News】
Colombia’s state-controlled oil company Ecopetrol reported a 17.4% decrease in net income for the second quarter compared to the same period in 2023, citing external factors and variable market conditions. Despite operational improvements, the downstream business faced challenges impacting overall results.
【Others】
German investigators have identified a Ukrainian diver allegedly involved in the sabotage of the Nord Stream gas pipelines in the Baltic Sea in 2022. The suspect, believed to have planted explosives, has since left Poland after an arrest warrant was issued. The investigation concluded that the leaks resulted from deliberate sabotage.
Projectiles suspected to be launched by Iran-aligned militia groups toward a U.S. airbase in Syria fell short of the facility. This incident follows increased attacks on U.S. bases in Syria and Iraq amid rising tensions between Israel and Iran, with fears of further escalation.