Energy News Digest, Oil and Gas, 1st Feb. 2022. OPEC daily basket price stood at $90.89 a barrel on Mon, 31 January 2022

Ukraine tensions and OPEC+ spare capacity concerns continue to push up oil prices.

UAE to impose 9% corporate tax on businesses from June 2023

No corporate tax will be imposed on personal income from employment, real estate or other investments, according to the country’s Ministry of Finance Read More

The Biden administration on Monday announced it will send $1.15 billion to states to plug thousands of orphan oil and gas wells that emit methane, a potent climate-changing greenhouse gas. Methane is a main component of natural gas and accounts for 10% of U.S. greenhouse gas emissions. The oil and gas industry represents nearly 30% of the country’s methane emissions. Read More

COT: Dollar long slashed, gold long jumped ahead of FOMC
The COT reports published weekly by the US CFTC highlight futures positions and changes made by hedge funds across commodities, forex and financials. This update covers the week to January 25, a reporting week that encapsulated the runup to last Wednesday’s surprisingly hawkish FOMC meeting. Ahead of the meeting speculators had been loading up on gold, cut oil longs while reducing bullish dollar bets by 40%. All developments that partly help to explain the aggressive reaction to the meeting and its raised forecast for future rate hikes. Read More

Fossil fuel giants are looking towards petrochemicals, and plastics in particular, as their next major growth market.

“Plastics is the Plan B for the fossil fuel industry,” said Judith Enck, Founder and President of the nonprofit advocacy group Beyond Plastics.

Plastics, which are made from fossil fuels, are set to drive nearly half of oil demand growth by midcentury, according to the International Energy Agency. That outpaces even hard-to-decarbonize sectors like aviation and shipping. Read More

Lundin Energy’s production guidance for 2022 is between 180 and 200 Mboepd, taking into account normal operational efficiencies, planned outages and reflecting the timing of start-up of Johan Sverdrup Phase 2, which is expected in the fourth quarter. The guidance is approximately split between Johan Sverdrup (55 percent), Edvard Grieg (40 percent) and Alvheim (5 percent). The Company’s production is expected to rise to over 200 Mboepd by 2023, as a result of the increased Johan Sverdrup full field plateau rate 0f 755 thousand barrels of oil per day gross once Phase 2 is on stream. The Company’s long-term target is to sustain production levels of over 200 Mboepd, with upsides from existing fields and potential new development projects. Operational expenditure for 2022 remains industry leading at USD 3.6 per boe. The reason for the increase in operating cost guidance in 2022 compared to 2021, mainly relates to certain startup and commissioning costs for Johan Sverdrup Phase 2, assumed higher environmental taxes as well as an assumed stronger NOK. The cost per boe is expected to decrease in 2023 back to approximately USD 3.1 per boe, as a result of higher production volumes. Read More

Board of Directors of Lundin Energy and Aker BP agreed on a combination to create the leading European independent E&P company, with completion of the transaction anticipated around mid 2022 Record financial performance in 2021, with free cash flow generation of USD 1.6 billion and net debt reduced to USD 2.7 billion Board of Directors propose to increase 2021 quarterly dividend by 25 percent to USD 0.5625 per share until completion of the Aker BP transaction Read More

The International Energy Agency’s Net Zero by 2050 roadmap, issued last year, has become something of a textbook example of bad timing. Just four months later, the agency said the world needs more investment in oil exploration because of dwindling OPEC spare production capacity.

Besides these mixed signals, the agency also lashed out at OPEC+ last year, accusing it of keeping the global oil supply artificially tight to keep prices high. At first glance, one might think the world’s most influential energy body, per the FT’s Tom Wilson, does not really know what it’s talking about. Yet Big Oil does not care about that. Big Oil is drilling. It’s just not talking about it. Read More

Tata Motors Limited sales in the domestic & international market for January 2022 stood at 76,210 vehicles, compared to 59,866 units during January 2021.Total MHCVs sale in January 2022 including M&HCV Truck, Buses and International Business stood at 10,655 units, compared to 9,452 units in January 2021. Read More

Tata Motors announced that it has sold 13,500 units of the Nexon EV in India since its launch in January 2020. Since its market introduction, the Nexon EV has been the most affordable electric SUV in India. Thanks to multiple subsidies and benefits offered by various Indian states, the SUV has gained a strong foothold in the EV market. Read More

Commodity PricesUnitsPrice $change
Crude Oil (WTI)USD/bbl$87.76Up
Crude Oil (Brent)USD/bbl$88.88Down
Bonny LightUSD/bbl$90.48Down
Natural GasUSD/MMBtu$4.83Down
OPEC basket 31/01/22USD/bbl$90.89Up
At press time 1st February 2022

Ballard Power Systems announced it received an order for eight additional 200 kW fuel cell modules to support the expansion of Canadian Pacific’s (“CP”; TSX: CP; NYSE: CP) Hydrogen Locomotive Program from one to three locomotives, with expected delivery in 2022. Inclusive of Ballard’s announcement in March 2021, the company will provide a total of 14 fuel cell modules, each module with a rated power output of 200 kW, to support this program.

CP, an industry leader in the North American rail sector, significantly expanded its Hydrogen Locomotive Program, from one to three hydrogen locomotives. This expansion is partially supported by C$15 million in funding from Emissions Reduction Alberta (ERA) as part of its Shovel-Ready Challenge announced late last year. The CP program was selected as one of sixteen emissions reduction projects to receive provincial funding. CP intends to refine the process of converting diesel-electric powertrains to hydrogen-electric powertrains over a series of three categories of locomotives which collectively represent the majority of locomotives in use throughout North America. Read More

Subsea 7 S.A. will publish its fourth quarter and full year results for the period ended 31 December 2021 on 3 March 2022 at 07:00 UK time. A conference call and simultaneous webcast for the investment community will be held on 3 March 2022 at 12:00 noon UK time. Read More

RegionPeriodNo. of RigsChange from Prior Count
U.S.A21st January 2022610+6
Canada28th January 2022217+5
InternationalDecember 2021834
Baker Hughes Rig Count

OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.

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