Oil news
Can Quantum Computing Solve AI's Energy Crisis?
Artificial Intelligence poses an unprecedented threat to energy security in the Global North which could seriously derail decarbonization goals, place immense strain onto power grids, and cause volatility in energy markets, which will inevitably extend to the economy writ large. After decades of plateaued energy demand, the energy required by data centers is now surging, and is expected to continue to rise at a breakneck pace. By 2030, AI is expected to represent 3.5 percent of the global electricity consumption, and 9 percent of electricity…
Categories: Oil news
New Pipeline Offers Some Relief For Permian Producers
Article via Aegis Hedging Permian gas prices received relief when a new pipeline came online in late September, but future maintenance will again reduce egress. Waha basis improved greatly in late third quarter once the new 2.5 Bcf/d Matterhorn pipeline came online. The Permian had been strained for takeaway capacity for much of 2024, causing nearly 40% of the year to print negative Waha cash prices. Now with an additional outlet, gas could leave west Texas a little bit easier. Prompt-month Waha basis improved from nearly -$3.00/MMbtu to -$1.00…
Categories: Oil news
New Pipeline Offers Some Relief For Permian Producers
Article via Aegis Hedging Permian gas prices received relief when a new pipeline came online in late September, but future maintenance will again reduce egress. Waha basis improved greatly in late third quarter once the new 2.5 Bcf/d Matterhorn pipeline came online. The Permian had been strained for takeaway capacity for much of 2024, causing nearly 40% of the year to print negative Waha cash prices. Now with an additional outlet, gas could leave west Texas a little bit easier. Prompt-month Waha basis improved from nearly -$3.00/MMbtu to -$1.00…
Categories: Oil news
US Oil Producers Rush to Hedge
US oil producers have taken advantage of the recent surge in crude prices, locking in future sales to safeguard their revenue. Rising tensions between Iran and Israel sent US crude prices soaring in early October, jumping from $71 per barrel on September 26 to almost $81 on October 7 after a prolonged slump. The sudden spike sparked a flurry of hedging activity, with companies rushing to secure favorable prices through futures contracts, swaps, and options. Hedging protects producers against potential price drops by locking in prices for future…
Categories: Oil news
US Oil Producers Rush to Hedge
US oil producers have taken advantage of the recent surge in crude prices, locking in future sales to safeguard their revenue. Rising tensions between Iran and Israel sent US crude prices soaring in early October, jumping from $71 per barrel on September 26 to almost $81 on October 7 after a prolonged slump. The sudden spike sparked a flurry of hedging activity, with companies rushing to secure favorable prices through futures contracts, swaps, and options. Hedging protects producers against potential price drops by locking in prices for future…
Categories: Oil news
NATO Grapples with Russian Airspace Violations and Defense Posturing
NATO's defense ministers (and possibly a few leaders) will meet on October 17-18 in what will be new Secretary-General Mark Rutte's first proper meeting as the head of the organization. It's also the first time the defense ministers of the military alliance's four "Indo-Pacific partners" -- Australia, Japan, New Zealand, and South Korea -- join for a session with their 32 NATO counterparts. It does signal the push, largely from the United States, to focus more on the growing influence and threats posed by China. While Beijing isn't officially branded…
Categories: Oil news
Japan's TEPCO Looks to Make Hydrogen with Geothermal Power
Tokyo Electric Power Co. Holdings (TEPCO) is making strides in the renewable energy sector by planning to produce hydrogen using geothermal power in Indonesia. In a partnership with Indonesian state-run oil company Pertamina, TEPCO will install hydrogen production equipment at a geothermal power plant in eastern Indonesia. This initiative, set to kick off as early as 2027, is part of a broader strategy to tap into the growing demand for low-emission energy sources. Meanwhile, major Japanese construction firm Obayashi is also jumping into the hydrogen…
Categories: Oil news
Oil, Gas Companies Set To Spend More in 2025
Producers of crude oil and natural gas will invest more in their business next year amid a stumbling transition away from hydrocarbons. The development may come as a surprise in the context of ever more transition commitments on the part of governments, but it simply proves one thing: while there is demand, there will be supply. Investments in oil and gas among the 23 biggest producers in the world are set to climb by over 60% by next year, compared to the trough of 2020 and the pandemic lockdowns. The forecast comes from Wood Mackenzie, which…
Categories: Oil news
AI Chip Sales to Middle East Under Scrutiny
Nvidia shares, which hit record highs on Monday, are now sliding in premarket trading in New York after a Bloomberg report revealed that US officials are considering restricting the sale of the chipmaker's advanced AI chips to specific countries. The report cites sources familiar with continuing talks within the Biden administration, which have discussed this new possible strategy in creating a ceiling on export licenses under the guise of 'national security' risks. They said the possible limation of these AI chips is centered around oil/gas-rich…
Categories: Oil news
EU Imposes New Sanctions on Iran for Missile Transfers to Russia
Foreign ministers from the European Union have approved new sanctions against seven individuals and seven entities linked to Iran after Kyiv's Western allies accused Tehran of sending ballistic missiles to Russia to aid in its full-scale invasion of Ukraine. The sanctions, reported in an exclusive by Radio Farda last week, target companies and individuals accused of being involved in the transfer of the weapons to Russia, including the country's flagship carrier Iran Air, as well as airlines Saha Airlines and Mahan Air. Individuals sanctioned include…
Categories: Oil news
Rosatom Eyes Massive Expansion by 2045
Russia's state nuclear energy corporation, Rosatom, is set to present its long-term strategic development plan in 2025, mapping out its vision through 2045. This announcement came from Rosatom CEO Alexei Likhachev during a meeting with President Vladimir Putin. The timing coincides with the 80th anniversary of Russia's nuclear industry. The plan outlines ambitious goals for expanding nuclear power generation across the country, targeting the addition of 28.5 GW of new capacity by 2042. These additions will primarily feature advanced nuclear reactors…
Categories: Oil news
Rosatom Eyes Massive Expansion by 2045
Russia's state nuclear energy corporation, Rosatom, is set to present its long-term strategic development plan in 2025, mapping out its vision through 2045. This announcement came from Rosatom CEO Alexei Likhachev during a meeting with President Vladimir Putin. The timing coincides with the 80th anniversary of Russia's nuclear industry. The plan outlines ambitious goals for expanding nuclear power generation across the country, targeting the addition of 28.5 GW of new capacity by 2042. These additions will primarily feature advanced nuclear reactors…
Categories: Oil news
Israel Walks Back from Potential Oil, Nuclear Facility Attacks
A full two weeks have passed since Iran's October 1st ballistic missile attack on Israel, which involved some 200 projectiles, many of which caused destruction on the ground (though Israel has been tight-lipped on the extent of it). The big question has remained: when will Israel retaliate and what form will it take? The Biden administration has over the last many days reportedly been urging for Israel to avoid hitting nuclear sites as well as energy sites. But there have been conflicting reports. For example on Monday, Harper's Magazine editor…
Categories: Oil news
BMW Says EU Ban on Gasoline Cars from 2035 Is “No Longer Realistic”
Germany’s car manufacturing giant BMW is warning that an EU ban on the sale of gasoline and diesel cars from 2035 is “no longer realistic” amid slow EV sales as the European auto industry will see a “massive shrinking” with such a ban. European carmakers are already struggling with their EV sales as subsidies in many countries are coming to an end and Chinese low-cost vehicle makers are gaining market share. Last year, the EU member states approved an emissions regulation under which the bloc will end sales of new…
Categories: Oil news
BMW Says EU Ban on Gasoline Cars from 2035 Is “No Longer Realistic”
Germany’s car manufacturing giant BMW is warning that an EU ban on the sale of gasoline and diesel cars from 2035 is “no longer realistic” amid slow EV sales as the European auto industry will see a “massive shrinking” with such a ban. European carmakers are already struggling with their EV sales as subsidies in many countries are coming to an end and Chinese low-cost vehicle makers are gaining market share. Last year, the EU member states approved an emissions regulation under which the bloc will end sales of new…
Categories: Oil news
Oil Prices Tumble as Demand Concerns Take Center Stage
Oil prices fell early on Tuesday morning as fears faded of Israel striking Iranian oil facilities and traders refocused on growing demand concerns.- The September monthly average refining margin fell to its lowest for the month since 2020, indicating that the downstream supercycle that was boosted by COVID-related disruptions and Russia sanctions is now ending.- Disappointing diesel demand remains a headache for refiners as US product supply of distillate fuel oil dipped 6% year-over-year in 2024 to date amidst declining manufacturing activity…
Categories: Oil news
India Plans $109 Billion of Grid Investments to Boost Renewables
India plans a massive upgrade and expansion of its power transmission system, expecting investment opportunities of $109 billion to support the integration of renewable energy sources and storage solutions, the power ministry has said. India’s new National Electricity Plan (Transmission) envisages the addition of hundreds of thousands of kilometers of transmission lines, transformation capacity, and inter-regional transmission capacity by 2032. India aims to have 500 gigawatts (GW) of renewable energy capacity installed by 2030 and more than…
Categories: Oil news
India Plans $109 Billion of Grid Investments to Boost Renewables
India plans a massive upgrade and expansion of its power transmission system, expecting investment opportunities of $109 billion to support the integration of renewable energy sources and storage solutions, the power ministry has said. India’s new National Electricity Plan (Transmission) envisages the addition of hundreds of thousands of kilometers of transmission lines, transformation capacity, and inter-regional transmission capacity by 2032. India aims to have 500 gigawatts (GW) of renewable energy capacity installed by 2030 and more than…
Categories: Oil news
EU Energy Minister Debate Russian Gas Flows as Ukraine Transit Deal Nears End
European Union energy ministers are discussing the flows of natural gas from Russia to the EU as the transit deal via Ukraine is nearing its end. The ministers are also talking about the issue of Russia’s LNG shipments to the bloc, which have been rising in recent months. The EU’s latest package of sanctions against Russia over its invasion of Ukraine included in June a ban on reloading services of Russian LNG in EU territory for the purpose of transshipment operations to third countries, after a transition period of 9 months.…
Categories: Oil news
Is The West Prepared To Deal With Potential Iranian Sabotage Of The Oil Market?
As with the Russia-Ukraine War, a key component of the Israel-Hamas War (and the underlying conflict between Israel and Hamas’s sponsor, Iran) is oil. The question of how core European countries are to keep their economies going if Russian oil and gas flows are fully sanctioned has long threatened to derail the West’s response to increased Russian aggression in Europe, as analysed in full in my latest book on the new global oil market order. The question of whether Iran’s response to increased Western and Israeli actions…
Categories: Oil news