The wider adoption of renewable energy and electric vehicles could cause oil demand to peak at around 110.3 million barrels per day before 2040, according to BP's annual energy outlook. BP also said it expects oil consumption to grow by 0.14% per year between 2016 and 2040.
US refiners are shifting their focus to diesel and emerging markets in Latin America, Asia, Africa and the Middle East as domestic gasoline consumption stagnates and is predicted to only climb by 40,000 barrels per day this year, compared with nearly 260,000 barrels per day in 2015, writes John Kemp. US exports of finished petroleum products have increased by nearly 12% from the first 11 months of 2016 to over 1.1 billion barrels in the same period of 2017 -- a trend that is expected to gain momentum this year, Kemp writes.
Jeff Hildebrand has resigned as CEO of Hilcorp Energy, the company he founded 29 years ago, and handed over the helm to Greg Lalicker, who has been with the firm since 2006. "Mr. Hildebrand will maintain his position as executive chairman and continue to be heavily involved with the company," spokesman Justin Furnace said.
Royal Dutch Shell's growth strategy for the next few years gives equal importance to deepwater and US shale, with the company aiming to increase offshore production while it strives to achieve a positive cash flow from shale operations by 2019, said Upstream Director Andy Brown. "We can see strong (shale) production growth, strong cash surpluses that gives us a balance in our portfolio where you can ramp investment up and down, you can moderate that, very unlike deepwater which is quite chunky," Brown said
Alaska Gov. Bill Walker's administration is requesting permission from the state Legislature to spend $10 million to conduct seismic surveys in the coastal plain of the Arctic National Wildlife Refuge to collect more data on the region's oil and natural gas potential.
A stronger price environment has prompted the likes of Pioneer Natural Resources and Anadarko Petroleum to ramp up share buybacks, marking a turnaround from the past three years when oil and natural gas producers sold more than $60 billion worth of new stock. Shares of some producers are down to multiyear lows, making it the right time for companies to buy back their stock.
The Louisiana Offshore Oil Port says that it has finished loading the first very large crude carrier with US crude oil for export and that the supertanker is heading to China. LOOP's ability to directly load supertankers could spur foreign demand for US crude, thanks to lower shipping costs.
Declining US crude stockpiles and the enhancement of America's oil export capabilities have pushed West Texas Intermediate above Dubai crude for the first time since 2016, trading at a premium of 36 cents per barrel on Monday. "Sentiment for US crude has improved in part from LOOP's very large crude carrier export capability, but fundamentally, falling Cushing stocks remains the main support for higher WTI prices," FGE analyst Den Syahril said.
Paleontologists in Utah are suing the Trump administration for shrinking the Grand Staircase-Escalante National Monument to expand energy development, arguing that more oil and natural gas drilling threatens future dinosaur fossil discoveries. An Interior Department spokeswoman said "most of the areas that are known to have the highest concentration of paleontological resources are still contained within the monument boundaries."
The Federal Energy Regulatory Commission may reconsider its approach to natural gas pipeline permitting when the projects in question would primarily serve foreign markets. Pipelines carrying products bound for export may no longer be deemed to be in the public interest, which means the commission may force companies to pay landowners more money for their land while mounting pipeline opposition may make it more difficult for operators to have their permits approved.
- Page 1