Oil Daily | Woodside Shifts Focus to Oil and Gas; Trump Eases US Barriers to Oil Production

【Company News】

Woodside Energy has halted investment plans in a U.S. solar project and delayed a hydrogen project to focus on oil and gas. The company ended its collaboration with Heliogen on Project Capella but is exploring further opportunities. Woodside is reviewing U.S. hydrogen tax regulations for future investment decisions.

Woodside reported a 3% revenue increase for Q4 2024, with LNG sales offsetting weaker oil earnings. The Scarborough LNG facility is on track for a 2026 start, and the Trion facility is 20% complete, with first oil expected in 2028. In the U.S., Woodside plans to sell stakes in Driftwood LNG, avoiding upstream gas expansion.

Pilot Co, a Warren Buffet entity, is closing its international oil trading operation to refocus on U.S. fuel retail. After Berkshire Hathaway increased its stake, the company let go of employees in oil trading. Despite speculation, Buffet has denied plans to take over Occidental Petroleum, though recent stock purchases have raised interest.

Venture Global plans to reduce its IPO price range to increase share sales. The company, which intends to raise $2.3 billion for a $110.4 billion valuation, faces legal challenges from clients over its LNG contracting practices. Venture Global continues to divert volumes from long-term contracts to the spot market.

【Oil-Producing Countries Dynamics】

Saudi Aramco projects global oil demand to rise by 1.3 million bpd in 2025, reaching 106 million bpd. This aligns with OPEC’s forecasts, which predict steady demand growth through 2026. Aramco's CEO notes uncertainty around the impact of U.S. sanctions on Russian oil flows as they monitor potential supply issues.

【Latest Oil Policies】

U.S. President Donald Trump signed an executive order to ease barriers to oil and gas production, revoking climate orders from the Biden era. The policy encourages energy development on federal lands and aims to establish the U.S. as a leader in non-fuel minerals, while also promoting consumer choice in vehicles.

German Economy Minister Robert Habeck cautioned against Europe's reliance on U.S. oil and gas following Trump's inauguration. Habeck emphasized EU unity in energy policy, criticized Trump’s Paris Agreement withdrawal, and warned that U.S. trade tariffs could harm both economies.

【Others】

Portugal aims to end Russian gas imports, increasing LNG purchases from the U.S. and Nigeria. With existing LNG infrastructure, Portugal continues to enhance its role in Europe’s energy network. Slovakia considers resuming gas transit through Ukraine, while Azerbaijan starts gas supplies to Slovakia.

Italy, Austria, Germany, Algeria, and Tunisia are advancing the SouthH2 Corridor, a hydrogen pipeline from North Africa to Europe. Recognized as a Project of Common Interest by the EU, the corridor aims to boost Europe’s green hydrogen supply and is expected to start operations by 2030.

Low wind speeds have caused UK power prices to hit a two-year high. Wind power, now the UK's largest electricity source, has seen reduced output, leading to price spikes. The UK's shift to renewables marks a milestone, having phased out coal, but it also faces challenges in meeting demand spikes.