U.S. energy firms this week left the number of oil and natural gas rigs operating unchanged for the first time since June, energy services firm Baker Hughes Co said in its closely followed report on Friday. The US oil and gas rig count, an early indicator of future output, remained unchanged at 784 in the week to Dec. 2, Baker Hughes said.

That puts the total rig count up 215, or 38%, over this time last year.

U.S. oil rigs held at 627 and gas rigs were at 155.

With oil prices up about 7% so far this year after soaring 55% in 2021 – and pressure from the government to produce more – several energy firms have boosted spending for a second year in a row in 2022 after cutting drilling and completion expenditures in 2019 and 2020.

However, many companies are focusing more on returning money to investors and paying down debt rather than boosting output and the weekly rig count increases have mostly been in the single digits since the start of the pandemic in March 2020.

U.S. crude production is forecast to only return next year to its pre-pandemic record of 12.3 million barrels per day hit in 2019.

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Source: Hellenic Shipping News

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U.S. upstream oil companies are to bank 68% higher free cash flows per barrel. This was in 2022 as surging prices fuel profits. Output growth lingers at 4.5% year to date, Deloitte consultancy said on Monday.

The study illustrates the clash between the White House and oil companies. It is over how skyrocketing profits from high energy prices.

Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) are expected to post strong upstream quarterly results on Friday, with some analysts expecting a new round of increases in dividends and buybacks.

U.S. President Joe Biden has been calling on producers to stop returning cash to shareholders. They are to invest in output to lower fuel prices for consumers.

Unlike in the past, when higher energy prices and profits would lead to increased investment rates, companies have been cutting down on costs and exercising cash discipline, Deloitte said.

Nearly 40% of surveyed executives from the top 100 oil and companies in the U.S. selected debt repayments and returning cash to shareholders as their top priorities, making those the most common answers, Deloitte Vice Chair for U.S. Oil and Gas Amy Chronis said.

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Source: Reuters

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Petroleum demand in the world’s third-largest oil consumer has been growing faster than anywhere else in 2022. It is rising by more than 400,000 barrels a day. That’s equivalent to more than 20% of the total global increase. Let’s learn more about why India is a bright spot for world oil demand.

The country’s vigorous appetite for oil was clear early in the year. However, what’s impressive is that it has remained robust in recent months. Take note that this is just as consumption growth is slowing elsewhere.

Three factors help to explain that resilience. First, a fast-growing economy: India is set to post the second-strongest expansion among the Group of 20 this year. It is behind only oil-rich Saudi Arabia and well ahead of China. Second, New Delhi has capped retail fuel prices, insulating the public from the impact of $100-plus oil on the wholesale market. And third, the government has turned to Russia for petroleum, benefiting from the discounts offered by Moscow — at times as much as $20 a barrel — to keep its oil sales flowing.

If current trends continue, India’s consumption will average at least 5.2 million barrels a day in 2022. This is surpassing the previous annual record which was set in 2019 before the onset of the pandemic at 5 million barrels a day. To put that into context, current demand tops that of Germany, France, and the UK combined. And there’s no peak in sight.

Although Indian oil-use growth will slow next year, it’s likely to remain steep by historical standards at 200,000 barrels a day, with the country consuming an average of 5.4 million barrels a day. But there are risks. Current momentum suggests demand will remain healthy, the outlook is by China’s economic slowdown and interest-rate hikes by India’s central bank in an effort to shore up the rupee.

New Zealand’s climate ambassador says it’s “just crazy” for rich countries to open up new supplies of fossil fuels. Yet the Government awarded new oil and gas exploration permits. This year fought for its right to do so in court, this is what Olivia Wannan reports. More about COP27 announcements and news here.

Christmas dinner hosts have to make a delicate calculation: how much food will be needed to last the day so that no one goes hungry, but there’s no expensive, unnecessary food leftover?

Climate analysts do a similar, but global, stocktake: working out how much oil, gas, and coal is going to be needed before green energy can take over. Too little and people could go cold, hungry, or stranded. But dig up too much and the resulting pollution will overcook the planet.

In report after report, experts have concluded the world has enough fossil fuels.

In fact, we’ll need to leave significant amounts of the oil, gas, and coal we’ve already discovered in the ground to avoid dangerous levels of global heating.

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Source: Stuff

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This year, the United States became the world’s biggest liquefied natural gas (LNG) exporter. This is as deliveries to energy-starved buyers in Europe and Asia surged. In the current year, five developers have signed over 20 long-term deals. They are to supply more than 30 million metric tons/year of LNG or roughly 4 Bcf/d, to energy-starved buyers in Europe and Asia. Let’s talk more about Oil & Gas Pipelines.

Unfortunately, whereas the United States has the world’s largest backlog of near-shovel-ready liquefied natural gas projects, takeaway constraints including limited pipeline capacity are seen as the biggest hurdle to the growth of the sector. In the Appalachian Basin, the country’s largest gas-producing region churning out more than 35 Bcf/d, environmental groups have repeatedly stopped or slowed down pipeline projects and limited further growth in the Northeast. Indeed, EQT Corp.(NYSE: EQT) CEO Toby Rice recently acknowledged that Appalachian pipeline capacity has “hit a wall.”

Luckily, the Permian Basin and Haynesville Shale are still able to shoulder much of the growth forecast for LNG exports. This includes pipeline development. Analysts at East Daley Capital Inc. have projected that U.S. LNG exports will grow to 26.3 Bcf/d by 2030 from their current level of nearly 13 Bcf/d. For this to happen, the analysts say another 2-4 Bcf/d of takeaway capacity would need to come online. Ideally between 2026 and 2030 in the Haynesville.

And it appears the U.S. is up to the task.

According to RigZone, initial findings from Westwood’s upcoming onshore pipeline market forecast has revealed that between 2022 and 2028, the world will spend ~$369B on 310,000km of new oil and gas pipelines, with North America responsible for the lion’s share. The forecast says that 205,000km, or two-thirds of total installations, will be gas pipelines, with several projects already lined up in the United States.

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Source: Oil Price

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