Communicator

Description of the Toa Oil Keihin Refinery has been updated.

#toaoil #japan  #keihin  #refinery  #keihinrefinery  #oilrefinery 

The description of the Idemitsu Chiba complex has been updated.

#idemitsu #chiba  ##refining #petrochemicals  #steamcracking  #naphthacracker  #refinery  #oilrefinery  #japan 

The description of the Hokkaido refinery has been updated.

#idemitsu  #hokkaido  #japan  #refinery  #oilrefinery 

The description of the Idemitsu Aichi Complex has been updated.

#idemitsu #aichi  #aichicomplex  #refinery  #oilrefinery  #japan 

The SONAREF Lobito Oil Refinery project has been created.

#sonaref #sonangol  #oilrefinery  #refinery  #angola 

The descripption of the TAIF-NK refinery has been uddated.


#russia  #sibur  #tatarstan  #oilrefinery  #taif  #taifnk  

The description of produced water has been updated.

#producedwater  #oilextraction  #gasextraction  #oilwells  #drilling  #waterinjection #oilrecovery 

A view of the Tarim Oilfield in the Tarim Basin of northwest China's Xinjiang Uygur Autonomous Region. /China Media Group

In a significant milestone for China's energy sector, the Tarim Oilfield in the Xinjiang Uygur Autonomous Region has emerged as a critical energy hub, contributing 37% of the country's total ultra-deep oil and gas production in 2024.

According to recent industry reports, the Tarim Oilfield produced approximately 150 million metric tons of oil and gas equivalent from ultra-deep reserves—formations located at depths exceeding 6,000 meters. This substantial output underscores China's growing expertise in tapping challenging deep-earth resources, helping to secure the nation's energy supply amid increasing domestic demand.

The Tarim Basin, known for its complex geological conditions and harsh environmental challenges, has long been considered one of China's most difficult regions for energy exploration. However, recent technological advancements and strategic investments by state-owned enterprises have significantly enhanced production capabilities.

Industry analysts highlight that breakthroughs in ultra-deep drilling technologies have been pivotal in unlocking these vast reserves. The successful extraction from such extreme depths demonstrates China's rapidly advancing technical capabilities in oil and gas exploration.

This achievement aligns with China's broader strategic objective to enhance domestic energy security by increasing self-sufficiency and reducing reliance on imported fossil fuels. The Tarim Oilfield's substantial contribution is expected to play a crucial role in supporting the country's economic growth and stability in coming years.

#crudeoil  #baturalgas #oilandgas  #tarim  #oilfield  #china  #oilreserves  #ultradeepdrilling 

Construction is under way for S-Oil's $7 billion Shaheen petrochemical project in Ulsan (Credit: S-Oil)

Ulsan, South Korea – February 17, 2025 – S-Oil, a leading South Korean refiner, has announced that its $7 billion Shaheen petrochemical project in Ulsan has reached 55% completion in engineering, procurement, and construction. This major initiative, featuring one of the world’s largest integrated steam crackers, is on track for mechanical completion in the first half of 2026, with commercial operations starting in the second half. Utilizing thermal crude-to-chemicals (TC2C) technology developed with Saudi Aramco and Lummus Technology, the project will produce 1.8 million tons of ethylene annually, doubling S-Oil’s petrochemical output to 25% and boosting South Korea’s economy with up to 17,000 jobs during peak construction.

#soil  #aramco  #lummus  #southkorea  #korea  #shaheen  #tc2c  #crudeoiltochemicals  #oiltochemicals  #steamcracking  #ethylene  #ulsan 

A detailed description of the TC2C crude oil to chemical conversion process has been added.


#lummus  #aramco  #clg  #chevronlummusglobal  #crudeoiltochemicals  #oiltochemicals  #refineryintegration  #steamcracking  #lpg  #naphtha  #olefins  #aromatics  #ctc  #cotc  #coc  #tc2c  #c2c 

Saudi Arabian Oil Co., DHAHRAN, 17^th Nov 2022, Aramco affiliate S-OIL to build one of the world’s largest petrochemical crackers in South Korea

Aramco is making its biggest ever investment in South Korea to develop one of the world’s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in line with the company’s strategy to maximize the crude to chemicals value chain.

The $7 billion Shaheen project aims to convert crude oil into petrochemical feedstock and would represent the first commercialization of Aramco and Lummus Technology’s TC2C thermal crude to chemicals technology, which increases chemical yield and reduces operating costs. It follows an earlier $4 billion investment into the first phase of the petrochemical expansion completed in 2018.

Located at S-Oil’s existing site in Ulsan, the new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers. The project is expected to start in 2023 and be completed by 2026.

The steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene — a building block petrochemical used to make thousands of everyday items. The plant is also expected to produce propylene, butadiene and other basic chemicals.

#shaheen  #soil  #petrochemicals  #tc2c  #oiltochemicals  #crudeoiltochemicals  #southkorea  #aramco  #steamcracker  #ulsan  #thermalcrudetochemical  #naphtha 

Troll C

Date: February 9, 2025

Norwegian energy giant Equinor has announced a significant shift in its energy strategy, halving its planned investments in renewable energy over the next two years while ramping up oil and gas production.

The company will reduce its renewable energy spending to $5 billion, down from the $10 billion it previously committed, citing rising costs and slower-than-expected progress in low-carbon projects.

Equinor has also revised its 2030 renewable capacity target to 10-12 GW, a reduction from the earlier goal of 12-16 GW. This adjustment comes as the company focuses on "value creation" and shareholder returns.

CEO Anders Opedal emphasized that the decision aligns with market realities, noting that profitability in renewables has not met expectations. Despite these changes, Equinor maintains its commitment to achieving net-zero emissions by 2050.

It plans to continue investing in carbon capture and storage (CCS) and hydrogen technologies while reducing emissions from its oil and gas operations. However, the company will now prioritize increasing oil and gas output by 10% through 2027, leveraging its assets on the Norwegian continental shelf and other key projects like the Johan Sverdrup oil field to produce 2.2mn barrels of oil equivalent per day by 2030.

This strategic pivot reflects broader industry trends as major energy companies, including BP and Shell, scale back renewable ambitions amid economic pressures and geopolitical uncertainties.

While Equinor's move is expected to bolster cash flow and shareholder value, it raises questions about the pace of the global energy transition and the challenges of balancing profitability with sustainability goals.

#energytransition  #renewableenergy  #oilandgas  #equinor  #hydrogen #carbonecapture  #ccs  #greenhydrogen #Sustainability 

Vitol's ATB Terminal in Malaysia.

In a recent report, Vitol, the world's largest independent oil trader, has projected that global oil demand will remain at current levels until at least 2040. This forecast challenges earlier predictions of a peak in oil demand followed by a sharp decline due to the rise of electric vehicles and renewable energy sources.

Vitol's analysis suggests that while demand for oil in developed nations may decrease, this will be offset by rising demand in developing economies. The company cites population growth, economic expansion, and urbanization as key factors driving this continued demand.

The report also highlights the role of the petrochemicals industry, which is expected to see increased oil demand for the production of plastics and other materials. This growth, coupled with demand from developing nations, is anticipated to keep global oil consumption steady.

While acknowledging the global push for cleaner energy, Vitol's forecast indicates that oil will continue to play a significant role in the global energy mix for the foreseeable future. The company's analysis underscores the complex challenges of balancing economic development with the transition to a more sustainable energy future.

China: Vitol's global head of research, Giovanni Serio, has highlighted that China will continue to play a critical role in global oil demand, particularly in the petrochemical sector. Despite the rise of electric vehicles and the energy transition, China's focus on petrochemicals is expected to drive oil demand.

Long-Term Forecast: Vitol has pushed back its peak oil demand forecast globally to the 2030s, citing a slower uptake of electric vehicles and lower commitments to environmental targets. The company also anticipates that jet fuel and petrochemical feedstocks will drive global oil demand growth in the next five years.

These insights reflect Vitol's evolving views on the future of oil demand, emphasizing the role of emerging markets and the ongoing energy transition.

#vitol  #energy  #energytrannsition  #oildemand  #crudeoil  #petrochemicals 

A Generic Oil-Fired Power Station technology has been added.

#oilpowerstation #thermalpower  #powerplant  #oilfiredpowerplant 

Liquid fuel-fired power plants have been added, of which they are two types: steam cycle or combined cycle power stations and power plants running on diesel engines. 


#powerplant  #powerstation  #oilpowerplant  #dieselengine  #fueloilpowerplant  #steamcycle  #combinedcycle 

Hassi Messaoud Crude Oil has been added.

#algeria #sonatrach  #hassimessaoud  #crudeoil  #oilfield 

Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia  #chatterjeegroup  #india  #cotc  #oiltochemical  #hplc  #ongc  #reliance  #ethylene  #propylene  #petrochemicals  #oilrefining  #petroadditions 

ExxonMobil has unveiled an ambitious growth plan to increase its total production of oil and gas to 5.4 million oil-equivalent barrels per day by 2030, representing an 18% increase from current levels.

ExxonMobil News releases | Dec. 11, 2024

KEY PRODUCTION TARGETS

Permian Basin Operations

The company plans to roughly double its production in the Permian Basin to approximately 2.3 million oil-equivalent barrels per day by 20301. This expansion is supported by ExxonMobil's acquisition of Pioneer Natural Resources, which has given them the largest contiguous acreage position in the region1

Guyana Operations

In Guyana, ExxonMobil expects to reach a total production capacity of 1.7 million barrels per day, with gross production growing to 1.3 million barrels per day by 20301. The company plans to develop eight projects in the region by 2030.

FINANCIAL INVESTMENT

Capital Expenditure

▪️ 2025: $27-29 billion in cash capital expenditure1
▪️ 2026-2030: $28-33 billion annually1

Expected Returns

The company projects an additional $20 billion in earnings and $30 billion in cash flow over the next six years. These investments are expected to generate returns of more than 30% over their lifetime4

STRATEGIC FOCUS

By 2030, more than 60% of the company's production will come from advantaged assets (Permian, Guyana, and LNG), up from the current 50%. The company also plans to pursue up to $30 billion in lower emissions investment opportunities while targeting to lower its operated Upstream emissions intensity by 40-50% versus 2016 levels.

#naturalgas  #crudeoil  #exxonmobil  #oildemand  #demandgrowth 

7th Sep 2024 | Source: DT New Materials, via Sohu.com

The project is located in Gulei Petrochemical Base, Zhangzhou, Fujian Province, and mainly builds 16 million tons/year oil refining project and 1.2 million tons/year ethylene project. The project is the leading project of Gulei Petrochemical Base, one of the seven major petrochemical industrial bases in China. The first phase of the project mainly includes 9 sets of chemical equipment such as ethylene cracking with an actual processing capacity of 1 million tons/year, with a total investment of 27.8 billion yuan and an annual output of one million tons of ethylene.

The second phase of the Gulei Refining and Chemical Project is jointly constructed by Sinopec Group and Fujian Province. It is planned to build more than 30 refining and chemical units, including 16 million tons/year of oil refining, 1.5 million tons/year of ethylene, 2 million tons/year of aromatics , as well as supporting facilities such as public works and berths at the Gulei Petrochemical Base. On July 16, the second phase of the project was approved by the Fujian Provincial Development and Reform Commission.

#gulei  #sinopec  #petrochemical  #refining  #ethylene  #steamcracking  #oilrefining  #crudeoil 

Picture: Indian subcontinent refineries, via ppPLUS

India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand.

In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term.

There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated.

There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries.

Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown.
 
India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them!

Ravi Raghavan, 12 Nov 2024, Linkedin post.

#india  #petrochemicals  #chemicals  #valuechains  #propylene  #fcc  #refinery  #polyester  #aromatics  #olefins  #polypropylene  #acrylics  #lab  #chemicalindustry  #indianchemicals  #IOCL  #BPCL  #HPCL  #RelianceIndustries  #investment  #specialitychemicals  #finechemicals  #oilrefining  #polymers  #ethylene  #competitiveness 

ADU, crude imports and ionikylation alkylation process added.
 

#crudeoil #oilimport  #processingcapacity  #china  #harbin  #petrochina  #alkylation  #adu  #cdu  #alkylate 

African Energy Week 2024 presents the vision of a diversified energy future

AFRICAN ENERGY WEEK: OIL & GAS DEMAND EXPECTED TO REMAIN STRONG THROUGH 2050

Global demand for oil and gas is expected to remain strong in the coming decades, according to Haitham al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC). Speaking at the  Africa Energy Week (AEW) in Cape Town,  South Africa, on 6 November, Haitham al-Ghais explained that this increase in energy demand would be driven by global population growth and a doubling of global GDP by 2050. “OPEC sees the outlook for global oil and gas consumption as very positive. By 2050, energy demand will increase by 24%,” he said.

The world population, currently 8 billion, is expected to reach 9.7 billion by 2050, with a significant share of this growth concentrated in developing countries, particularly in Africa. Al-Ghais stressed that this population increase and the economic growth of emerging megacities and cities of several million inhabitants would amplify the demand for energy, requiring the mobilization of all available resources, including fossil fuels.

The leading role of oil and gas

According to OPEC projections, oil and natural gas will still account for 55% of global energy supply in 2050, with oil alone accounting for 30% of this share. “The world will need all kinds of energy resources in the coming decades,” the OPEC Secretary General said, adding that renewables, although growing, will not be enough to meet this increased demand. In order to meet the growing needs and stabilize markets, OPEC estimates that massive investments will be needed in the oil sector. “Until 2050, the oil sector will require investments of $17.4 trillion,” al-Ghais said, adding that this funding will be mainly directed towards production programs to ensure stable supplies and prevent sudden fluctuations in fuel prices.

A strategic event for the sector

The African Energy Week, which brings together over 1,000 participants, including officials from 22 African countries, industrialists, business people and analysts, continues until November 8. The event provides a platform to discuss energy challenges in Africa and how the continent can meet the growing global energy needs.

Source

#oilandgas #crudeoil #naturalgas #africa #refining #refinery #oildemand #energy #fossilfuels #fuelprices #oilsector

Sinochem Hongrun Oil Storage & Transportation Co., Ltd. has been added.

#sinochem #hongrun  #oilstorage  #crudeoilstorage  #weifang  #shandong  #china  #tankfarm 

Francesco Sassi, 21 Oct 2024, eklipX Research

Spanish energy giant Repsol is freezing the development of all major hydrogen assets in the country, says the company.
After international companies cancelled their plans to export hydrogen from Norway to Germany, this is another alarming sign for the industry in the E.U.
According to Repsol, the world-renowned Oil & Gas Spanish giant, has halted all developments of green hydrogen projects in Spain with a large electrolysis capacity, namely over 350 MW. The company says that the existing regulations in Spain are at the root of this decision.
From Repsol's perspective, the current political discussion about possible windfall taxes on energy companies and banks to be confirmed in the long term makes these investments simply too risky.  Spain is one of the few E.U. countries to still apply a windfall profit tax to fund relief measures for consumers. In 2023, the levy granted Madrid additional €2.9 billion going into the State's coffers.
At the end of 2023, the same government extended the measure for 12 months, allowing companies to partially offset the levy on renewable energy projects. Now, the tensions between the State & Market stakeholders are rising due to the proposal of extending the windfall tax in the future.
Thus, we should understand Repsol's decision in the contexts of growing, domestic political frictions, and the instability of the hydrogen market in the E.U.

#oilandgas  #crudeoil  #naturalgas  #hydrogen  #greenhydrogen  #electrolysis  #repsol  #spain  #eu  #pipeline 

US Presidential candidates have diverging views on the oil industry.

Trump supports expanding production, which could lower oil prices. Harris, who favors green energy, has previously supported a ban on fracking and could limit production. Under president Biden, the free cash flow of the top 10 oil and gas companies tripled in 3 years.

Trump proposes a 10% duty on all imports and a 60% duty on Chinese imports, which could reduce energy demand. Trump may tighten sanctions against Iran but ease measures against Russia.

#russia  #iran  #usa  #trump  #harris  #potus  #oilandgas  #greenenergy  #oilprice  #fracking 

Oil company Chevron is moving its headquarters from California to Houston after repeated warnings that the Golden State's regulatory environment makes it difficult to do business there. The move announced Friday will end the company's more than 140-year existence in the largest U.S. state.

Chevron has already scaled back new investment in California refining, citing "confrontational" government policies in a state with some of the strictest environmental rules in the US. In January, refining chief Andy Walz warned that the state was playing a "dangerous game" with climate rules that threaten to spike gasoline prices.

Chevron joins a long list of California emigrants that includes Oracle Corp., Hewlett Packard Enterprise Co., Tesla Inc. and Social Network X. The migration among former Silicon Valley tech giants has been driven largely by tax and cost-of-living considerations, according to Bloomberg.

However, according to Ilon Musk's view, it's not so much about taxes as it is about policies implemented by the state's leadership. And that includes the green agenda (with its taxes on conventional oil and gas) and drug liberalization and so on.

#usa  #texas  #california  #chevron  #oilandgas  #refining  #netzero  #carbontax  #greenagenda 

Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or  APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining  #refinery  #crudeoil  #naturalgas  #oilandgas  #europe  #saf  #sustainableaviationfuel  #renewablediesel  #biofuels 

Vienna, Austria, 13 June 2024--In a recent article published by Energy Aspects, HE Haitham Al Ghais, OPEC Secretary General, emphasized that oil is set to play a key role in human lives for years and decades to come. “Peak oil demand is not on the horizon,” he stated.

"The peak oil demand narrative was repeated when the IEA published its Oil 2024 report in which it once again stated that oil demand would peak before 2030. It is a dangerous commentary, especially for consumers, and will only lead to energy volatility on a potentially unprecedented scale".

"To the contrary, OPEC revise its oil demand expectations upwards to 116 mb/d by 2045, and there is potential for this level to be even higher. We do not foresee a peak in oil demand in our long-term forecast."

This is eerily aligned with the forecast ppPLUS has repeatedly issued for several years as summarized in this most recent publication.

Source: OPEC

@opec #crudeoil  #peakoil  #oildemand 

Last year, global demand for loans in the oil sector decreased by 6%, but this doesn't imply a halt in investment. The debt-to-profit ratio of companies has shifted in favor of profits since 2020. Average oil and gas companies now generate more revenue than needed to cover capital expenditures through the end of the decade, potentially eliminating the need for loans. Major industry players like Chevron Corp. and Saudi Aramco are examples of this trend.

#crudeoil  #oilcompanies  #fossilfuels  #oil &gas
This financial autonomy also impacts environmental efforts. Previously, bank loans could be leveraged to pressure companies into reducing extraction and emissions. Now, without such financial dependencies, companies have more control over their production volumes, which could delay global goals aimed at curbing the growth of hydrocarbon energy.

Source: Tim Quinson, 29^th Apr 2024, Bloomberg

The burgeoning demand for maritime transport has propelled tanker prices worldwide to unprecedented levels.

As of spring 2024, the cost of sea tankers, both new and used, has skyrocketed to historic highs, marking a pinnacle not witnessed in 15 years, as reported by Drewry.

The surge in tanker prices can be attributed to soaring freight rates coupled with limited availability of vessels and shipyards.

The uptrend in newbuilding costs commenced in 2021, spurred by a surge in container orders, which subsequently reduced order slots at shipyards. In 2022, prices for used tankers surged following shifts in global logistics.

Various factors have fueled demand for medium-sized tankers, including anti-Russian sanctions, while the demand for large vessels surged in 2023 with the expansion of long-haul trade between Europe and Asia and the recovery of consumption in China.

Consequently, experts assert that the current demand for tankers has resulted in older vessels fetching prices well above their original costs.

For instance, the cost of a large tanker constructed five years ago surged from $96 million in 2019 to approximately $110-113 million in Q1 2024, marking a staggering 60% increase over the past five years, with newbuilds following suit in the upward trajectory.

#tanker  #oiltanker  #seatanker  #shipbuilding  #maritimtransport 

In the period spanning twelve months until March 2024, Iran's oil exports surged to $35.8 billion.

Despite the reimposition of US sanctions against Tehran in 2018, China's continued purchases of Iranian oil have enabled the nation to uphold a favorable trade balance. As per the country's customs data, excluding oil exports, Iran would have encountered a trade deficit amounting to $16.8 billion.

The overall trade volume experienced a modest increase of 2.6% year-on-year, reaching a total worth of $153 billion, with Iranian exports contributing $86.8 billion to this figure.

#iran  #china  #oilexports 

The Abu Dhabi National Oil Company (ADNOC), the state oil company of the U.A.E. capital region Abu Dhabi, has initiated oil production at the Belbazem offshore shelf in collaboration with the Chinese corporation CNPC. The production is anticipated to yield up to 45 thousand barrels per day, as announced by the company.

Situated approximately 120 kilometers northwest of Abu Dhabi, the Belbazem offshore shelf comprises three fields.

Abdel Moneim Seif Al-Kindi, the director general of the exploration, development, and production department at ADNOC, emphasized the significance of this milestone, highlighting the success of the strategic partnership between ADNOC and China National Petroleum Corporation (CNPC). Al-Kindi also underscored the robust and established bilateral relations between the UAE and China.

#UAE  #UnitedArabEmirates  #China  #oilfield 

Haldia Petrochemicals, a company based in Kolkata, India, produces polymers and chemicals.

The company has decided to invest in an oil-to-chemicals project in Tamil Nadu.

ABOUT THE PROJECT:
☑ Capacity - 3.5 million tonnes of ethylene and propylene
☑ Cost - $10 Billion

BENEFITS:
Ethylene and propylene are used to make
☑ Shopping bags
☑ Car parts
☑ Water pipes

Navanit Narayan, CEO of Haldia Petrochemicals, said:
"The project will convert crude oil into chemicals to meet the growing demand for polymers in the country."

Source: Governance TamilNadu Linkein Post, April 1^st, 2024

#india  #oiltochemicals  #ethylene  #propylene 
 

Enverus Intelligence Research (EIR) analysts have provided an overview of merger and acquisition (M&A) activity within the U.S. upstream sector for both the fourth quarter and the entirety of 2023.

The final quarter of 2023 witnessed unprecedented activity, marking a historical high in observed M&A transactions within the U.S. oil and gas industry, totaling $144 billion. Over the course of the entire year, M&A deals amounted to $190 billion, also setting a new record.

Notably, two significant transactions significantly contributed to these figures: Exxon's acquisition of Pioneer Natural Resources for $65 billion and Chevron's purchase of Hess for $60 billion.

This surge in M&A activity is noteworthy considering the backdrop of a decade-long decline in investment in oil and gas exploration. Despite the identification of major shale oil fields in the U.S., investment in new wells has waned, with industry giants opting to acquire existing assets instead.

Analysts at Dittmar observed that the market is currently characterized by an imbalance, with more buyers than sellers, resulting in escalated prices.

#oil &gas #m &a #upstream  #oilandgas  #exxonm  #chevron 

According to Bloomberg sources, Shell is planning to lower its green energy targets. The updated long-term strategy will entail increased investment in oil and gas sectors to enhance shareholder returns. The company might unveil this new climate strategy as early as this Thursday. Under the previous CEO, Ben van Beurden, Shell's 2020 strategy aimed for zero net profit to prioritize investments in green energy and achieve net zero emissions by 2050. Since Wael Sawan assumed the role of CEO, Shell has shifted focus towards delivering returns to investors. This shift has resulted in increased payouts to shareholders, job cuts, and a larger portion of investments directed towards  hydrocarbon production. Similar to Shell, BP Plc of Britain revised its climate plans last year, intending to produce more oil and gas and emit more CO2 than previously planned. The announcement of BP's new plans led to an 8% rise in the company's shares.

#greenenergy  #oilandgas  #esg  #climate 

British Petroleum (BP) appears poised to refocus on hydrocarbons, a move that could bolster the company's profitability. However, without a clear declaration of this shift, investors may not reap the benefits, potentially stagnating the share price, as indicated by active investor BP Bluebell Capital Partners, as reported by Bloomberg.

According to Bluebell Capital Partners co-founders Giuseppe Bivona and Marco Taricco, BP ought to ramp up investments in oil and gas while scaling back spending on costly renewable energy ventures to enhance returns for shareholders, as outlined in Bluebell's October communication.

The hedge fund observed indications of BP moving in this direction during its fourth-quarter presentation, the first since Murray Auchincloss assumed leadership of the company. Auchincloss emphasized a "pragmatic" and "flexible" approach to the energy transition, suggesting that BP's oil production could surpass the anticipated 2-3% target for 2027.

While holding only a minor stake in BP (the exact size undisclosed), activist investor Bluebell, through its co-founder Bivona, has engaged with numerous major shareholders, many of whom echo concerns about the company's underwhelming shareholder returns and endorse the fund's proposal for strategic change.

Bluebell's history of shareholder activism includes advocating for a leadership change at Danone in 2021, attempting to compel Glencore to divest its coal business that same year (though unsuccessfully), and calling for Bayer to divide its business into three segments in 2023.

#renewable  #renewableenergy  #oilandgas 

Prime Minister Narendra Modi announced that India is poised to invest approximately $67 billion in the development of its oil and gas industry in the upcoming years. Modi stated that the aim is to elevate the share of natural gas in the energy mix from 6% to 15%. He highlighted the necessity of this investment, estimating it will be executed over the next 5-6 years.




Modi further underscored India's significant position as the third-largest global consumer of energy, oil, and LPG, and the fourth-largest importer and processor of LNG. He projected that India's hydrocarbon demand would escalate from the current 19 million barrels of oil equivalent to 38 million boe by 2025.

Emphasizing India's achievements in renewable energy, Modi noted that the country ranks fourth globally in installed renewable energy capacity. He added that approximately 40% of the nation's installed capacity is derived from non-fossil fuel sources.

Considering this trajectory, Modi expressed confidence that, with appropriate strategies, India could potentially serve as a quality alternative to Europe in the coming years, thus hinting at significant geopolitical implications.

#naturalgas  #oilandgas  #investment  #enrgy  #india