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Oil companies profits

Oil Companies Profits Soared to $174bn This Year as US Gas Prices Rose

The largest oil and gas companies made a combined $174bn in profits in the first nine months of the year as gasoline prices climbed in the US, according to a new report.

The bumper profit totals, provided exclusively to the Guardian, show that in the third quarter of 2021 alone, 24 top oil and gas companies made more than $74bn in net income. From January to September, the net income of the group, which includes Exxon, Chevron, Shell, and BP, was $174bn.

Exxon alone posted a net income of $6.75bn in the third quarter, its highest profit since 2017, and has seen its revenue jump by 60% on the same period last year. The company credited the rising cost of oil for bolstering these profits, as did BP, which made $3.3bn in third-quarter profit. “Rising commodity prices certainly helped,” Bernard Looney, chief executive of BP, told investors at the latest earnings report.

Gasoline prices have hit a seven-year high in the US due to the rising cost of oil, with Americans now paying about $3.40 for a gallon of fuel compared with around $2.10 a year ago.

The Biden administration has warned the price hikes are hurting low-income people, even as it attempts to implement a climate agenda that would see America move away from fossil fuels, and has released 50m barrels of oil from the national strategic reserve to help dampen costs.

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Source: The Guardian

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saudis raise oil orices

Saudis Raise Oil Prices for Asia, U.S. Despite Omicron’s Spread

Saudis raise oil prices for buyers in Asia and the U.S. This signaling sees demand staying strong despite the spread of the omicron variant of the coronavirus.

The move comes days after the Organization of Petroleum Exporting Countries and its allies. It is a 23-nation group led by Saudi Arabia and Russia — surprised traders with a decision to boost crude output.

Saudi Aramco increased January’s prices for all crude grades that will be shipped to Asia and to the U.S., according to a statement from the state producer. The company raised its key Arab Light grade for customers in Asia by 60 cents from December to $3.30 a barrel above a benchmark. That’s the most expensive it’s been since February 2020, around when the pandemic first struck.

Prices for the U.S. will go up by between 40 and 60 cents.

OPEC+ opted on Thursday to proceed with a production increase for next month, even as new Covid-19 cases threaten to sap demand and with the alliance predicting the oil market will flip from a supply deficit to a surplus in early 2022.

 

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Source: Bloomberg

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new mexico gas and oil industry

Oil and Gas ‘the future’ of Carlsbad and New Mexico

Oil and gas rose to prominence in New Mexico. It started when energy companies were able to tap into massive reservoirs of crude oil. This also includes natural gas thousands of feet beneath the Permian Basin and cities like Carlsbad.

The industry quickly began generating record-breaking revenue from the rural southeast corner of the state. This provides funds for schools and other public services across the state.

Last year, data from the New Mexico Oil and Gas Association (NMOGA) showed the industry improvement. It contributed $2.8 billion to the state’s budget. Even as the COVID-19 pandemic reduced fuel demand and production slowed.

2020’s revenue marked a slight dip from the year before, records show, as oil and gas produced about $3.1 billion for New Mexico in 2019.

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Source: Carlsbad Current-Argus

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oil prices projection

Oil Prices Projection To Hit $125 In 2022

Crude oil could soar to $125 per barrel next year and $150 in 2023. This is due to OPEC’s limited capacity to boost production, JP Morgan analysts said in a new report. This is just some of the oil prices projection.

“OPEC+ is not immune to the impacts of underinvestment…. We estimate ‘true’ OPEC spare capacity in 2022 will be about 2 million barrels per day (43%) below consensus estimates of 4.8 million,” the team, led by Christyan Malek, wrote, as quoted by TheStreet.

“While we believe a three-month pause to 400,000 barrel-per-day monthly increments is needed during the first half of 2022 to balance the market (and potentially a cut pending impact of new COVID variants), the group will struggle to deliver monthly growth of more than 250,000 barrels per day once reinstated,” the analysts also said.

According to a CNN report, this rise in the price of crude could push U.S. gasoline prices to over $5.

“They don’t have the barrels. It’s a mirage,” Malek, head of JP Morgan’s EMEA oil and gas research, told the news outlet. “Look back at history. When we’re in a scenario where the market goes, ‘Oh, s***, we don’t have spare capacity,’ that’s where you see overshoots,” he also said.

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Source: Oil Price

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Oil And Gas Extraction

An Undisputable Truth: The World Still Needs Oil And Gas

The reality of the world’s energy needs and consumption shows that oil and gas extraction isn’t going anywhere. It will be part of the global energy mix for decades to come. The world will continue to need oil even if it somehow manages to put itself on track. Even it achieve net-zero emissions by 2050, we still need oil.

Renewable energy could replace more and more fossil fuels in power generation and transportation, but these are not the only industries using oil and gas. From medicines to cosmetics, clothing, and technology, the world will still need oil. The only future in which the world will not need oil is if all consumers, globally, suddenly give up all the comforts of modern life they are so used to.

As long as there is demand for oil and products originally derived from crude oil, there will always be someone to supply it. If the oil and gas industry were to ‘keep it in the ground’ as many climate activists want, energy shortages would be inevitable. Just look at what has happened with the natural gas crunch in recent months – sky-high prices for a commodity that is still vital for keeping the lights and heating on.

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Source: OilPrice.com

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energy transition

Energy Transition Leaders, Oil and Gas Giants, Hit Back at Climate Critics

The CEOs of some of the world’s leading energy companies have defended their position. This is about the energy transition mix after the COP26 climate summit focused attention on the future of the industry.

Energy industry leaders and insiders were plentiful at COP26. In Glasgow as government officials, corporates and activists clashed over emission-reduction targets, pledges. They deal to keep the global temperature rising to a minimum at the COP26 climate summit.

The CEOs of BP, Lukoil, Occidental, and Eni insisted they were diversifying their energy. They are offering and reducing carbon emissions while also maintaining supplies of hydrocarbons that are still heavily relied upon. This happened when they were speaking on a panel at the ADIPEC energy forum in Abu Dhabi hosted by CNBC’s Hadley Gamble,

“We just have to get the opportunity to explain what we’re doing and to make the case that it’s not about fossil fuels. It’s about the emissions,” Vicki Hollub, president and chief executive of U.S. energy company Occidental, said on Monday.

“And as long as we can to deal with the emissions and help others that use the products deal with the emissions too, then we have the right to be here. We have the right to provide the quality of life that oil and gas have provided … for the currently rich countries, and we need to allow the developing countries the same right to become wealthier through the development of their natural resources,” she added.

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Source: CNBC

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global energy system

Global Energy System Considers Oil and Gas to Stay ‘for decades,’ BP Chief Says

Oil giant BP is committed to tackling climate change. This is what the company’s CEO said. He insisted that hydrocarbons such as oil and gas will have an ongoing role to play. They specifically said in the global energy system mix for years.

“It may not be popular to say that oil and gas is going to be in the energy system for decades to come but that is the reality,” BP’s Chief Executive Bernard Looney told CNBC on Monday.

“What I want us to do is to focus on the objective — and I wish we had less ideological positions and more focus on the objective — which in this case is to drive emissions down.”

He said that replacing coal with natural gas, thereby reducing carbon emissions, “has to be a good thing.”

“And then over time we will decarbonize that natural gas,” he said. Speaking to CNBC’s Hadley Gamble at the ADIPEC energy industry forum in Abu Dhabi.

BP’s Looney highlighted that the International Energy Agency’s “Net Zero” report in May noted that, in 2050, global oil supply “in the net-zero pathway” would still amount to around 20 million barrels per day,

“So any objective person … is going to say that hydrocarbons have a role to play, the question then becomes: what do you do about that? And you try to produce those hydrocarbons in the best way possible,” Looney added.

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Source: CNBC

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financing oil and gas

Financing Oil and Gas Industry by Major U.S. Banks Continues – Study Says

JPMorgan Chase JPM, 0.48% Citigroup C, 1.06% and Bank of America BAC, 0.94% collected the most fees from the oil, gas, and coal sectors in the past six years, according to a Bloomberg study released Monday. Basically, financing the oil and gas industry by Major U.S. Banks is still a top priority of banks.

The news service said these and other major banks have drawn in at least $17 billion in fees and floated about $4 trillion in loans for fossil fuels since the Paris Agreement on climate was reached in 2015. So far in 2021, major banks helped generate $459 billion in bonds and loans for the oil, gas and coal businesses, according to Bloomberg data. The banks at the time led $463 billion worth of green bonds and loans. The study comes ahead of the UN Climate Summit starting Oct. 31 in Glasgow.

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Source: MarketWatch

A Little Trivia…

American oil history begins in a woodland valley along a creek in remote northwestern Pennsylvania. Today’s U.S. petroleum exploration and production industry is born on August 27, 1859, near Titusville when a well specifically drilled for oil found it.
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Oil Prices Are Rising

Rise in Oil Price Resulting to Higher Demand Forecasts | Tight supplies

A rise in oil price with a two-week high on Tuesday after the United States lifted travel restrictions and other signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight.

Prices rallied after the projection of U.S. Energy Information Administration (EIA) in its Short Term Energy Outlook (STEO) on Tuesday. They projected retail gasoline prices would decline over the next several months.

U.S. President Joe Biden’s administration said it would use price forecasts in the STEO report to determine whether to release oil from the nation’s Strategic Petroleum Reserve (SPR).

Analysts said if the STEO had shown a huge rise in projected gasoline prices, the Biden administration was likely to release lots of oil from the SPR quickly, which would have depressed prices.

Brent futures rose $1.35, or 1.6%, to settle at $84.78 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.22, or 2.7%, to settle at $84.15.

They were the highest closes for both benchmarks since Oct. 26. The rise in oil price is inevitable in the coming weeks and months.

The price of Brent has gained over 60% this year and hit a three-year high of $86.70 on Oct. 25, supported by recovering demand and supply restraint by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.

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Source: Reuters

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why are gas prices high

Gas Prices are Sky High and Bank of America Warns $120-a-barrel Oil is On the Way

Are you wondering why are gas prices high? Every day Americans are getting hammered by high prices at the pump, and Bank of America thinks the pain may just be getting started.

Gas prices have surged to a seven-year high of $3.40 a gallon nationally and are flirting with $4 in Nevada, Washington State, and Oregon.

Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022. That’s 45% higher than current levels.

Oil prices backed off from recent highs on Wednesday. US crude tumbled 3% to around $81 a barrel and Brent lost 2% to $83 amid jitters ahead of Thursday’s OPEC meeting.

A further oil spike would raise the already-elevated cost of living for Americans. And it would squeeze businesses grappling with sticker shock, shortages and supply chain disasters.

Americans pay very close attention to prices at the pump and concerns about inflation have helped sour their views on the overall economy.

Nearly two-thirds of Americans described the economy as poor in a poll released this week. In Virginia, where Republicans won a key prize in the state’s governor’s mansion, the economy ranked in exit polls as the most important issue, surpassing education, taxes, and Covid.

Source: CNN
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