Iranian oil potentially returning legitimately to the market. It will not be a shock. The complete return will not take place at least until the summer of next year. This is from the statement of Goldman Sachs says as the U.S. is taking part in indirect talks about the so-called Iran nuclear deal.

“With OPEC+ appearing to manage its exit for now, supply concerns will likely shift to the potential return of Iran to the JCPOA (Joint Comprehensive Plan of Action) agreement,” analysts at Goldman Sachs said in a note on Monday, as carried by Reuters.

The United States is engaging in indirect talks about the Iran nuclear deal. Moreover, there are diplomats from Europe, Russia, and China in Vienna.

Currently, the U.S. sanctions imposed by the Trump Administration are preventing Iran from exporting all of its oil, as many buyers around the world don’t want to risk their U.S. assets by doing business with Iran.

U.S. President Joe Biden has signaled a willingness to return to the nuclear deal. This is only if Iran returns to full compliance in its nuclear activities.

“We don’t anticipate an early or immediate breakthrough, as these discussions we fully expect will be difficult. But we do believe that these discussions with our partners and, in turn, our partners with Iran is a healthy step forward,” Ned Price, U.S. State Department spokesman, said on Monday.

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Source: Oil Price

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Increased scrutiny over the environmental impact of natural gas—a key source of methane, which is a much more harmful greenhouse gas than carbon dioxide—has some industry analysts questioning the long-term prospects of global gas demand in the energy transition.

Big Oil has bet big on natural gas developments in the past decade, expecting incessant growth in demand for decades to come. Today, the majors continue to expect solid demand for natural gas, justifying investments in more production.

But investors and buyers of natural gas have started to fret over the emissions impact of the fuel.

This could create risks for the biggest oil and gas corporations, including Shell, Total, and ExxonMobil, according to Sarah McFarlane of The Wall Street Journal.

Those three supermajors and many other oil and gas companies have bet big on growing their natural gas divisions to meet what they see as continued growth in global gas demand.

The net-zero and energy transition narrative, however, has changed the overall narrative in the gas industry—buyers want net-zero cargoes, while producers and sellers pledge carbon capture and reduction of methane emissions.

Natural gas demand will continue to grow in the coming years, after fully recouping this year the losses from the 2020 pandemic shock, the International Energy Agency (IEA) said earlier this year.

Asia is set to continue leading that growth, while many Western markets, including the European Union (EU), will start to pay more attention to the environmental credentials of natural gas.

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Source: Oil Price

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Judging by the first 3 months of 2021 it seems that this year has gone off to a wrong start. Instead of economic rebounds, we face the third rendition of a market slump. Nevertheless, 2021 will become much more prolific in oil discoveries than 2020. Many of the wildcats initially planned for 2020 were moved to the next year. It is for financial or health security reasons. All the while, some new frontier areas were opened up only very recently. With that 2021 will see its natural continuation there. Several wells have already been spudded, for instance the early top-5 contender Perseverance-1 (prospective resources of 770 MMbbls) spudded in the offshore zone of the Bahamas has encountered oil, however, in non-commercial volumes. Read more about Big Oil hottest prospects below.

In Latin/South America, besides the Bahamian dry Perseverance prospect, many hopes were in a pin to the continuation of drilling in the Guyana/Suriname Basin. Despite clinching a total of 18 discoveries within the Stabroek Block, ExxonMobil’s drilling programme has been disappointing lately.

First, the Tanager-1 well (although this was on the Kaieteur block to the north of Stabroek) turned out to be dry in November 2020, then Hassa-1 wildcat “did not encounter hydrocarbons in the primary target reservoirs” in January 2021 and now Bulletwood-1 (Canje Block) ended up being non-commercial. Guyana will still have an opportunity to bounce back in 2021 with the Kawa-1 wildcat,

However, it seems that if the basin is to wield any significant discoveries. There will be a location change in Suriname’s offshore where several high-potential wells are on schedule for this year. Most notably the  Goliethburg-Voltzberg North-1.

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Source: Oil Price

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After a state appeals court blocked Kern County’s supervisors effort to speed up new oil and gas drilling, officials overseeing the state’s prime oil patch have revised an ordinance that could permit tens of thousands of new wells over the next 15 years.

The Kern County Board of Supervisors is poised to vote Monday on the plan that would streamline the permitting process by creating a blanket environmental impact report for drilling as many as 2,700 wells a year.

While the petroleum industry supports the changes, environmentalists and community groups have said the plan has barely changed and doesn’t address violations of the California Environmental Quality Act.

The 5th District Court of Appeal in Fresno last year found the 2015 plan violated the law by not fully evaluating or disclosing environmental damage that would occur from drilling.

“They’re attempting this huge end-around of this fundamental environmental protection,” said attorney Hollin Kretzmann of the Center for Biological Diversity. “If you drill a well in Kern County, you’re going to get a rubber-stamp permit.”

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Source: Gvwire

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“The decade of geothermal” is a phrase that is becoming increasingly common in media and energy industry gatherings. This is as the international zero-emission comes into place. It includes one of the most fascinating and clean ways of extracting energy from the earth. It is through geothermal power. Let’s talk more about abandoned oil wells now.

Geothermal companies need to drill—and they need to drill deep. This is to reach the heat that the mantle of the Earth radiates into the core. In fact, one of the biggest challenges for this emerging industry is drilling deep enough to get to the really high temperatures: drilling so deep is risky and costly.

Yet geothermal can do pretty well even at smaller depths. According to a recent analysis by Rystad Energy, to generate electricity from the vaporized water heated up in geothermal wells, a power generation facility needs temperatures of 240 to 300 degrees Celsius. The analysis adds that as much as 70 percent of geothermal output right now is useable for electricity generation.

Indeed, with the urge to electrify everything—whether this is wise or not—it’s all about electricity and, more specifically, emission-free electricity. Geothermal is perfect for this: while the drilling of a geothermal well does involve equipment that uses fossil fuels, from a lifetime perspective, geothermal is fully comparable with wind and solar, which are also not entirely emission-free given the materials they need to operate.

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Source: Oil Price

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