Oil Daily | U.S. Crude Oil Export Growth Hits Decade Low Amid Slowing Supply and Reduced Asian Demand
Thursday, Aug 22, 2024 8:00 am ET
【Industry News】
Halliburton experienced a cyberattack affecting its north Houston campus and global networks. The company activated its response plan and is working with experts to resolve the issue. Cyberattacks on energy companies are increasing, given their strategic importance, as evidenced by past incidents like the Colonial pipeline attack in 2021. The need for robust cybersecurity measures is more critical than ever.
China’s new coal capacity approvals in 2023 have significantly decreased compared to last year, signaling a shift towards renewable energy sources like wind and solar. Despite this, coal still represents a large portion of China's energy mix, though its percentage is slowly declining. Greenpeace questions whether this decline is a true pivot or just a temporary pause.
China has called for more investment in equipment upgrades to support its energy transition, focusing on renewable and power grid technologies, and coal power plant flexibility. Growing electricity demand, fueled by technologies like AI and cryptocurrencies, poses a challenge to meeting clean energy goals. The U.S. is also experiencing increased electricity demand, complicating efforts to decarbonize the power sector by 2035.
Occidental Petroleum’s shares have dipped below $56, raising questions about whether Berkshire Hathaway will buy more shares, as it has in the past when prices fell below $60. Despite the dip, Berkshire has not made recent purchases, leading to speculation about a potential strategy shift. Occidental's stock has dropped 12.3% over the last year.
Arch Resources and Consol Energy will merge to form Core Natural Resources in a $5.2 billion deal. The merger aims to create a leading coal mining entity with significant cost and operational synergies. Both companies face revenue declines as the U.S. transitions away from coal-powered electricity to cleaner energy sources.
U.S. crude oil exports are growing at the slowest rate in a decade. Exports have averaged 4.2 million barrels per day, up 3.5% year-on-year. The growth is limited by slowing supply growth and reduced demand, particularly from Asia. U.S. oil production is also expected to grow modestly by 2.3% this year as shale producers maintain production discipline.
【Oil-Producing Countries Dynamics】
Iran appointed Mohsen Paknejad as the new oil minister. Paknejad emphasized the need to boost production and warned of limited fossil fuel reserves without significant development. Iran aims to increase oil output by 400,000 barrels by the end of next year and is seeking new buyers despite sanctions. Iranian oil production reached its highest level since 2018.
Nigeria’s Dangote refinery plans to import most of its feedstock from domestic sources for Q3, reducing its U.S. crude oil intake. The refinery is expected to process 650,000 barrels of crude oil a day when fully operational. The shift to domestic sources could impact oil markets, given its significant capacity.
【Latest Oil Policies】
China's state planner has called for more investment in equipment upgrades to support the country's energy transition. The plan focuses on renewable and power grid technologies, energy conservation, and coal power plant flexibility, signaling key areas for the transition from coal to lower-carbon power.
【Company News】
Shares of Occidental Petroleum have dropped below $56, raising questions about whether Warren Buffett's Berkshire Hathaway will step in as it has in the past. Despite the dip, Berkshire has not made recent purchases, leading to speculation about a potential strategy shift.
Saint Louis, Missouri-based coal miner Arch Resources Inc. and Canonsburg, Pennsylvania-based Consol Energy Inc. have announced they will combine in an all-stock "merger of equals" to create Core Natural Resources. The merger aims to generate significant cost and operational synergies and create a leading coal mining entity.
【Others】
A Greek-flagged oil tanker, the Sounion, is on fire and drifting crewless in the Red Sea after an attack by Yemen’s pro-Iranian Houthis. This incident is part of a series of attacks prompting shippers to avoid the Red Sea and Suez Canal, potentially increasing fuel consumption for alternative routes.
U.S. crude oil exports are set to grow this year by the smallest margin after a decade of rapid growth. Crude exports have averaged 4.2 million barrels per day so far this year, up 3.5% year-on-year. The growth is limited by slowing supply growth and reduced demand, particularly from Asia.
Halliburton experienced a cyberattack affecting its north Houston campus and global networks. The company activated its response plan and is working with experts to resolve the issue. Cyberattacks on energy companies are increasing, given their strategic importance, as evidenced by past incidents like the Colonial pipeline attack in 2021. The need for robust cybersecurity measures is more critical than ever.
China’s new coal capacity approvals in 2023 have significantly decreased compared to last year, signaling a shift towards renewable energy sources like wind and solar. Despite this, coal still represents a large portion of China's energy mix, though its percentage is slowly declining. Greenpeace questions whether this decline is a true pivot or just a temporary pause.
China has called for more investment in equipment upgrades to support its energy transition, focusing on renewable and power grid technologies, and coal power plant flexibility. Growing electricity demand, fueled by technologies like AI and cryptocurrencies, poses a challenge to meeting clean energy goals. The U.S. is also experiencing increased electricity demand, complicating efforts to decarbonize the power sector by 2035.
Occidental Petroleum’s shares have dipped below $56, raising questions about whether Berkshire Hathaway will buy more shares, as it has in the past when prices fell below $60. Despite the dip, Berkshire has not made recent purchases, leading to speculation about a potential strategy shift. Occidental's stock has dropped 12.3% over the last year.
Arch Resources and Consol Energy will merge to form Core Natural Resources in a $5.2 billion deal. The merger aims to create a leading coal mining entity with significant cost and operational synergies. Both companies face revenue declines as the U.S. transitions away from coal-powered electricity to cleaner energy sources.
U.S. crude oil exports are growing at the slowest rate in a decade. Exports have averaged 4.2 million barrels per day, up 3.5% year-on-year. The growth is limited by slowing supply growth and reduced demand, particularly from Asia. U.S. oil production is also expected to grow modestly by 2.3% this year as shale producers maintain production discipline.
【Oil-Producing Countries Dynamics】
Iran appointed Mohsen Paknejad as the new oil minister. Paknejad emphasized the need to boost production and warned of limited fossil fuel reserves without significant development. Iran aims to increase oil output by 400,000 barrels by the end of next year and is seeking new buyers despite sanctions. Iranian oil production reached its highest level since 2018.
Nigeria’s Dangote refinery plans to import most of its feedstock from domestic sources for Q3, reducing its U.S. crude oil intake. The refinery is expected to process 650,000 barrels of crude oil a day when fully operational. The shift to domestic sources could impact oil markets, given its significant capacity.
【Latest Oil Policies】
China's state planner has called for more investment in equipment upgrades to support the country's energy transition. The plan focuses on renewable and power grid technologies, energy conservation, and coal power plant flexibility, signaling key areas for the transition from coal to lower-carbon power.
【Company News】
Shares of Occidental Petroleum have dropped below $56, raising questions about whether Warren Buffett's Berkshire Hathaway will step in as it has in the past. Despite the dip, Berkshire has not made recent purchases, leading to speculation about a potential strategy shift.
Saint Louis, Missouri-based coal miner Arch Resources Inc. and Canonsburg, Pennsylvania-based Consol Energy Inc. have announced they will combine in an all-stock "merger of equals" to create Core Natural Resources. The merger aims to generate significant cost and operational synergies and create a leading coal mining entity.
【Others】
A Greek-flagged oil tanker, the Sounion, is on fire and drifting crewless in the Red Sea after an attack by Yemen’s pro-Iranian Houthis. This incident is part of a series of attacks prompting shippers to avoid the Red Sea and Suez Canal, potentially increasing fuel consumption for alternative routes.
U.S. crude oil exports are set to grow this year by the smallest margin after a decade of rapid growth. Crude exports have averaged 4.2 million barrels per day so far this year, up 3.5% year-on-year. The growth is limited by slowing supply growth and reduced demand, particularly from Asia.