Tag Archive for: oilindustry

Embracing innovation

A seasoned logistics expert, Azubuike Ukwuoma, has advocated embracing innovation in the oil and gas sector through innovative approaches.

In a bid to achieve this, Ukwuoma recommended a “LOGIC methodology”, which he claimed would redefine operational efficiency and set new standards in the industry.

While sharing insights into his career journey and the development of the LOGIC methodology on Monday, he said, “What inspired me to pursue a career in logistics was my fascination with the intricate systems behind shipping and delivery services.

“The LOGIC methodology emerged from my experiences and the realization that a structured approach could significantly enhance operational efficiency.”

If adopted, the expert explained that the methodology would enhance customer satisfaction and ensure compliance with industry regulations.

He said the LOGIC methodology is on five key pillars logistics management, optimisation techniques, governance and compliance, innovation and technology, coordination and communication.

Ukwuoma said, “Effective logistics management is at the core of the LOGIC methodology. This includes strategic planning, resource allocation, and performance metrics. This is to ensure every aspect of the supply chain is efficiently managed.

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Source: PUNCH

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Global oil demand is set to grow for at least another decade. Goldman Sachs now expects global oil demand to peak in 2034, at around 110M bpd.

Global oil demand is set to grow for at least another decade. This is according to Goldman Sachs analysts, who see slowing momentum of electric vehicle sales. It is keeping oil product demand robust until 2034.

Analysts at the Wall Street bank raised their forecast of oil demand in 2030 to 108.5 million barrels per day (bpd). It is from 106 million bpd that is previously expected in a report carried by Reuters.

Goldman Sachs now expects global oil demand to peak in 2034, at around 110 million bpd. This will be followed by years of plateau oil demand until around 2040. It is according to the bank’s analysts led by Nikhil Bhandari.

“We expect peak oil demand to occur by 2034 at 110 million bpd. Subsequently, we project a moderate compounded annual growth rate (CAGR) demand decline of 0.3% till 2040.” This is what analysts at Goldman Sachs wrote in the report.

Most of the world’s global oil demand growth will come from emerging markets in Asia, led by China and India, say the analysts, echoing the views of all other forecasters who expect these two economies to be the top contributors to oil demand growth globally in the coming decade.

Separately, Goldman Sachs has recently said in a report that “Sales momentum for electric vehicles (EVs) is slowing globally, and hybrids (HEVs) and plug-in hybrids (PHEVs) are proving more competitive than first thought.”

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Source: Oil Price

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The US oil industry is now in a post-boom era, focusing on smart growth aligned with demand rather than rapid expansion.

Last year, U.S. oil industry or crude oil production broke another record. This in itself is not exactly news. The shale oil industry has been breaking records for breakfast for years. But that was before the pandemic.

After the pandemic, many pronounced the shale boom dead. Of course, those same people found out in 2023 that this wasn’t strictly true. Despite a continued focus on capital discipline and the flurry of cash they returned to shareholders, U.S. drillers managed to boost their overall output to over 13.2 million barrels daily in September. And they did it with fewer rigs, at that. And with zero—if not negative—support from the federal government.

“Smart money knows to never bet against this industry,” Tim Stewart, President of the US Oil & Gas Association, recently told David Blackmon, energy industry vet and Forbes author. “We are going to be around a lot longer than any politician. Why is that? Because we produce wealth while they produce nothing.”

Indeed, if 2023 proved anything that many may have suspected, it was that an industry does not need a friendly government to flourish—at least when it comes to the oil industry, that is. Alternative energy industries, on the other hand, do need government support to survive.

 

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Source: Oil Price

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Occidental Petroleum will buy Permian oil and gas producer CrownRock for cash and stock in a deal valued at around $12B, including debt.

Permian Oil and Gas Producer CrownRock

Occidental Petroleum will buy Permian oil and gas producer CrownRock. For cash and stock in a deal valued at around $12 billion, including debt, Oxy said on Monday. Announcing the latest large acquisition in the U.S. oil industry.

Reports of a potential Occidental- CrownRock transaction will appear at the end of last month. When the Wall Street Journal announce that a deal would be estimate at more than $10 billion including debt.

Occidental confirmed those reports today with the news that it has entered into a purchase agreement to buy CrownRock, whose over 94,000 net acres of premium stacked pay assets and supporting infrastructure “are well positioned alongside Occidental’s legacy Midland Basin business.”

170,000 Barrels of Oil Equivalent Per Day

The acquisition will boost Occidental’s premier Permian portfolio. With the addition of around 170,000 barrels of oil equivalent per day (boed) of high-margin. Lower-decline unconventional production in 2024, as well as approximately 1,700 undeveloped locations.

It’s also look forward to deliver increased free cash flow on a diluted share basis, including $1 billion in the first year based on $70 per barrel WTI price.

The transaction is looking forward to close in the first quarter of 2024, subject to customary closing conditions and the receipt of regulatory approvals.

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Source: Oil Price

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OPEC+ still has a positive outlook for growth in oil demand, despite the headwinds faced by the global economy, as it prepares for its next ministerial meeting.

Oil Demand Growth

OPEC+ still has a positive outlook for oil demand growth, despite the headwinds faced by the global economy, as it prepares for its next ministerial meeting.

“The economy, despite the challenges, is still doing quite well,” OPEC Secretary-General Haitham Al-Ghais said at the Argus European Crude Conference in London on Tuesday. “We are positive on demand, we’re still quite robust on demand.”

oil-demand-growth-opec-december-7-2018-reuters

Has Expressed Uncertainty

The top official at the Organization of Petroleum Exporting Countries (OPEC) has expressed uncertainty regarding the outcome of the group’s upcoming ministerial meeting, scheduled to take place in the final weekend of November. In a press statement, the official emphasized that it would be premature to make any definitive predictions or preempt the decisions that will be made during the meeting. This uncertainty regarding the outcome of the ministerial meeting reflects the complex and ever-evolving dynamics of the global oil market and the diverse interests of OPEC member countries.

Highlights the Organization’s Commitment

The statement made by the top OPEC official highlights the organization’s commitment to a consultative and consensus-driven decision-making process. OPEC, comprised of 13 member countries, plays a crucial role in shaping global oil prices and supply levels. The ministerial meetings serve as a platform for member countries to discuss and negotiate production quotas and strategies to stabilize the oil market. As such, these meetings often involve extensive deliberations and negotiations to reach a consensus that accommodates the interests of all member nations. Therefore, the official’s cautious approach in refraining from preempting the meeting’s outcome underscores the complexity and importance of the discussions that will take place amongst OPEC members.

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Source: Bloomberg

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