The White House stands by its calls for oil-producing countries to "do more" to support the global economic recovery, an official said on Monday, as crude prices hit multi-year peaks. The official said the administration was closely monitoring the cost of oil and gasoline and "using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets." It has raised the concern at a senior level with several members [Read more]
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Oil gains as energy demand rises; WTI tops $80
Oil prices rose on Monday, extending multiweek gains, amid supply restraint from major producers and growing demand for fuels as economies try to recover from the coronavirus pandemic. Brent crude was up 81 cents, or 1%, at $83.20 a barrel by 0212 GMT, after gaining almost 4% last week. U.S. oil was up $1.15, or 1.5%, at $80.50 a barrel, the highest since late 2014. U.S. crude rose 4.6% through Friday. Prices have risen as more vaccinated populations are brought out of lockdowns and [Read more]
U.S. natgas futures fall to 2-week low on mild weather, rising output
U.S. natural gas futures fell to a two-week low on Monday on rising output and forecasts that milder than normal weather will continue through late October, keeping heating demand light and allowing utilities to inject more gas into storage than usual ahead of the winter. Traders noted U.S. gas futures were down even though gas prices in Europe were up about 5% and U.S. oil futures were up about 3% to their highest since October 2014 on worries energy supplies could run short this [Read more]
Canada’s weekly rig count up 1 to 165
Canada averaged 165 active drilling rigs this week according to data from the Canadian Association of Energy Contractors. Of those rigs, 60 are drilling for natural gas, 108 are drilling for oil, and 2 for other (helium, hydrogen, geothermal, or potash). Drilling activity by province is 121 rigs in Alberta, 17 in BC, and 27 in Saskatchewan. View a full breakdown of Western Canada’s rig activity. [Read more]
Oil price spike won’t increase industry cleanup spending: Alberta energy minister
EDMONTON - Alberta's energy minister says the current spike in oil prices isn't enough reason to require the industry to spend more on cleaning up the tens of thousands of abandoned oil and gas wells in the province. Sonya Savage says the province's recently adopted plan to fix the problem, which requires industry to spend $422 million next year and slightly more after that, is a fair and balanced approach. She says it takes into account the industry's current troubles and its expected [Read more]
Heavy crude differential widens
Canadian heavy crude's discount to West Texas Intermediate (WTI) widened on Friday. Western Canada Select heavy blend crude for November delivery in Hardisty, Alberta, last traded at $13.10 per barrel below the WTI benchmark, according to NE2 Canada Inc, widening 40 cents from the previous day's settle. The discount on heavy crude had been edging wider since the start of the monthly trade cycle last Friday, after hitting its narrowest level in five months in late September in anticipation [Read more]
U.S. drillers add oil and gas rigs for fifth week in a row
U.S. energy firms this week added oil and natural gas rigs for a fifth week in a row as oil prices soared to their highest since 2014 prompting some drillers to return to the wellpad. The combined oil and gas rig count, an early indicator of future output, rose five to 533 in the week to Oct. 8, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday. The total rig count was up 264 rigs, or 98%, over this time last year. U.S. oil [Read more]
Oil climbs on switch from gas and few signs of an easing supply crunch
Oil prices rose on Friday, tracking towards a 4.5% gain for the week on signs some industries have begun switching fuel from high-priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now. "A lot of catalysts are out there to keep the oil market tight," said Edward Moya, a senior market analyst at brokerage OANDA, pointing to signs of improved fuel demand as economic activity rebounds and coronavirus restrictions ease as well as fears that a [Read more]
GLJ October 2021 price forecast – Energy demand currently outpacing supply
With GLJ’s recently updated price forecast, we see current trends pointing towards a much tighter energy supply scenario resulting from rebounding demand. As economies shift from a focus on vaccination rates and controlling the pandemic back towards re-opening and boosting productivity, the demand for energy has quickly returned to near pre-pandemic levels. Supply lagging demand Recent under-investment and lower than average seasonal storage levels throughout North America and Europe have [Read more]
Carbon capture utilization & storage – From aspiration to solution
You might find it hard to believe CO2 capture technology has been used since the 1920s for separating CO2 found in natural gas reservoirs. It’s been proposed as a theoretical solution for capturing CO2 and preventing it from being released into the atmosphere since 1977. Global Aspirations The current intense focus on CCS globally has been spurred on by the International Energy Agency (IEA)’s aspirational promotion of CCS to make a “maximum contribution to emissions reductions” globally and [Read more]