Oil Daily | U.S. LNG Exports Hit Record High Amid Cold Snap, Europe Seeks Alternatives After Russian Halt
Friday, Jan 3, 2025 7:00 am ET
1min read 【Global Oil Supply and Demand】
Natural gas and heating oil prices in the U.S. spiked as cold weather from a polar vortex hit northern states. Analysts predict further price increases due to possible infrastructure challenges. This comes amid warnings of a harsh winter and strong supply draws expected if cold trends persist.
Exports of U.S. liquefied natural gas reached a new high of 8.5 million metric tons in December, with Europe receiving 69% due to increased demand. The U.S. remains the largest LNG exporter globally, bolstered by new export terminals, driving domestic natural gas demand higher as production ramps up.
Europe's benchmark natural gas prices rose after Russian gas flows via Ukraine stopped. The expiration of the supply deal led Gazprom to halt deliveries, affecting Austria, Slovakia, and Hungary, who now seek alternative energy sources amid Europe's cold snap.
Crude oil exports from Iran surged in late December after a slow start, although overall exports were reduced earlier in the quarter. Iran's shipments to China have fluctuated due to regional tensions, and the Islamic Revolutionary Guard Corps has grown its influence over Iran's oil exports.
【Oil-Producing Countries Dynamics】
Iran and India are in talks to resume energy trade, which plummeted due to U.S. sanctions. Iran aims to overcome trade challenges, hoping to reinstate its position as a major oil supplier to India, which has turned to Russian crude amidst constraints.
【Industry News】
The Dallas Fed Energy Survey indicates an improved outlook for the U.S. oil and gas sector, with increased business activity and optimism. Despite a drop in oil production indices, operational efficiency led to record crude oil output in the Lower 48 states.
Equinor's Hammerfest LNG plant in Norway faces another shutdown due to compressor failure, halting operations just as Europe's winter heating demand peaks. The plant, representing 5% of Norway's gas exports, joins a history of reliability issues.
【Company News】
CNOOC Limited launched three Panyu oilfields in the South China Sea, integrating advanced facilities to enhance efficiency. With a peak production target set for 2025, CNOOC continues to expand its strategic development, booking significant profits and a deal to sell its U.S. operations.
Equinor secured over $3 billion in financing for its Empire Wind 1 project, set to power 500,000 New York homes by 2027. The project is part of Equinor's broader strategy amidst challenges facing the U.S. offshore wind sector.
【Others】
Norway's EV market reached new heights in 2024, with nearly 90% of new car sales being battery electric vehicles. The country's strong incentives and rising taxes on internal combustion engines drive this growth, making Norway a global leader in EV adoption.
Natural gas and heating oil prices in the U.S. spiked as cold weather from a polar vortex hit northern states. Analysts predict further price increases due to possible infrastructure challenges. This comes amid warnings of a harsh winter and strong supply draws expected if cold trends persist.
Exports of U.S. liquefied natural gas reached a new high of 8.5 million metric tons in December, with Europe receiving 69% due to increased demand. The U.S. remains the largest LNG exporter globally, bolstered by new export terminals, driving domestic natural gas demand higher as production ramps up.
Europe's benchmark natural gas prices rose after Russian gas flows via Ukraine stopped. The expiration of the supply deal led Gazprom to halt deliveries, affecting Austria, Slovakia, and Hungary, who now seek alternative energy sources amid Europe's cold snap.
Crude oil exports from Iran surged in late December after a slow start, although overall exports were reduced earlier in the quarter. Iran's shipments to China have fluctuated due to regional tensions, and the Islamic Revolutionary Guard Corps has grown its influence over Iran's oil exports.
【Oil-Producing Countries Dynamics】
Iran and India are in talks to resume energy trade, which plummeted due to U.S. sanctions. Iran aims to overcome trade challenges, hoping to reinstate its position as a major oil supplier to India, which has turned to Russian crude amidst constraints.
【Industry News】
The Dallas Fed Energy Survey indicates an improved outlook for the U.S. oil and gas sector, with increased business activity and optimism. Despite a drop in oil production indices, operational efficiency led to record crude oil output in the Lower 48 states.
Equinor's Hammerfest LNG plant in Norway faces another shutdown due to compressor failure, halting operations just as Europe's winter heating demand peaks. The plant, representing 5% of Norway's gas exports, joins a history of reliability issues.
【Company News】
CNOOC Limited launched three Panyu oilfields in the South China Sea, integrating advanced facilities to enhance efficiency. With a peak production target set for 2025, CNOOC continues to expand its strategic development, booking significant profits and a deal to sell its U.S. operations.
Equinor secured over $3 billion in financing for its Empire Wind 1 project, set to power 500,000 New York homes by 2027. The project is part of Equinor's broader strategy amidst challenges facing the U.S. offshore wind sector.
【Others】
Norway's EV market reached new heights in 2024, with nearly 90% of new car sales being battery electric vehicles. The country's strong incentives and rising taxes on internal combustion engines drive this growth, making Norway a global leader in EV adoption.
