Energy News Digest, Oil and Gas, 2nd Feb. 2022. OPEC daily basket price stood at $90.46 a barrel on Tue, 1st February 2022

U.S. crude stocks fell by 1.6 million barrels for the week ended Jan. 28, according to American Petroleum Institute figures on Tuesday.

Vagit Alekperov, President of PJSC LUKOIL, had a meeting with Alik Aidarbayev, Chairman of the Management Board of JSC NC KazMunayGas, in Nur-Sultan. The meeting took place during Vagit Alekperov’s visit to the Republic of Kazakhstan. The parties discussed current cooperation issues and business opportunities. Among other things, the two leaders exchanged opinions on the development plans for the new Caspian offshore projects: Zhenis and Al-Farabi. They also talked about conditions of joint work on the Kalamkas-Sea and Khazar project.? Read More

RWE has signed a concession agreement with the Danish Energy Agency (Energistyrelsen). The concession grants the right to construct and operate the Thor offshore wind farm for 30 years. With a planned capacity of around 1,000 megawatts Thor will be Denmark’s largest offshore wind farm to date. The wind farm will be built off the Danish west coast and is scheduled to reach full operation in 2027. Once fully operational, Thor would be capable of producing enough green electricity to supply the equivalent of more than one million Danish households. Read More

Commodities continue to build on the best year since 2000, and the positive performance seen during the past month when turbulence struck bonds and stocks, has further increased investor awareness about an asset class that for a number of years had delivered poor returns. With the prospect for tight market conditions and inflationary pressures continuing to support the sector, it has become increasingly important for investors to understand the underlying mechanics that can either be a major headwind or as recently a significant tailwind.

Commodities continued to build on strong gains in 2021, a year where the sector recorded its best year since 2000. In our recently published Quarterly Outlook we see the prospect of even higher prices in 2022 with another year of tight supply and inflationary pressures supporting commodity returns. The decarbonization of the world will increasingly create so-called greenflation where rising demand and prices of commodities needed to support the process will be met by inelastic supply, partly driven by regulations, such as ESG, prohibiting some investors and banks from supporting mining and drilling activities. Read More

Higher oil prices could expose energy importers in the Middle East and North Africa (MENA) to higher fiscal and external outlays and higher inflation, which could undermine social and political stability, according to Fitch Ratings. Most MENA sovereigns that are rated by the agency–excluding the GCC–are net importers of hydrocarbons, particularly Jordan, Lebanon, Morocco and Tunisia, who use hydrocarbons mostly to produce electricity and in transportation. Read More

Greenhouse gas emissions fell by a tenth in 2020 as pandemic restrictions cut pollution from traffic, industry and energy supplies, official figures show. The transport sector still remained the biggest polluter, accounting for nearly a quarter (24 per cent) of UK greenhouse gas emissions in 2020, the last year for which figures are available. Emissions from energy supply fell by 12 per cent on 2019 levels as a result of lower energy demand during the pandemic and continued reduction in the use of fossil fuels in power stations, the data from the Business Department (Beis) show. Read More

Italy’s Eni and Russia’s Novatek have discovered no petroleum or gas deposits at the exploration well offshore Montenegro between Bar and Ulcinj, local media reported, Montenegrin media quoted a government official as saying. Read More

Shipments of electric vehicles are expected to rise by almost 35 per cent on an annual basis this year as governments introduce regulations and incentives to help the industry’s growth, according to a new report. Cars will account for 95 per cent of the total EV sales in 2022, while the remaining will be split between buses, vans and heavy lorries. Read More

According to preliminary data, Gazprom produced 47.4 billion cubic meters of gas in January 2022, which is 0.5 billion cubic meters (or 1 per cent) more than in the same period of last year. Gazprom ramped up its domestic supplies from the gas transmission system by 3.2 per cent (or by 1.1 billion cubic meters) over said period of 2022. The Company’s gas exports to the countries beyond the FSU amounted to 11.4 billion cubic meters, which is 41.3 per cent (or 8 billion cubic meters) lower than the figure for the same period of 2021. At the same time, Gazprom increased its supplies to Bulgaria (by 20.6 per cent) and to Bosnia and Herzegovina (by 12.9 per cent). The Company’s gas deliveries are carried out as requested by consumers in full compliance with contractual obligations. Read More

The Joint Technical Committee (JTC) of the Declaration of Cooperation (DoC) convened today for its 59th Meeting to examine the developments in the global oil market and emerging trends. The Meeting was held in preparation for the 37th Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 25th OPEC and non-OPEC Ministerial Meeting scheduled for tomorrow, 2 February 2022. In his opening remarks, HE Mohammad Sanusi Barkindo, OPEC Secretary General, thanked the JTC’s Members for their tireless efforts and firm commitment to the Committee’s mission. He emphasized that the Committee’s work continues to provide essential support to the DoC process. The Secretary General commended the ongoing efforts of the DoC countries to promote oil market stability amidst rising volatility. Read More

Commodity PricesUnitsPrice $change
Crude Oil (WTI)USD/bbl$88.59Up
Crude Oil (Brent)USD/bbl$89.53Up
Bonny LightUSD/bbl$91.08Up
Natural GasUSD/MMBtu$4.93Up
OPEC basket 01/02/22USD/bbl$90.46Down
At press time 2nd February 2022

Kassym-Jomart Tokayev, President of the Republic of Kazakhstan, received Vagit Alekperov, head of LUKOIL Company, today in the city of Nur-Sultan. The parties discussed ongoing projects in Kazakhstan involving LUKOIL, as well as a number of promising projects that could boost cooperation between Russia and Kazakhstan in fuel and energy sphere. President of LUKOIL thanked the Kazakhstan leader for regular dialogue and support of foreign investors. He also expressed interest in expanding LUKOIL’s presence in the country (including new exploration projects) and in developing partnership with JSC NC KazMunayGas. Read More

Dubai’s DP World has started the construction of the first deep-sea port in Congo, the global port operator said in a statement. The ports giant and the Government of the Democratic Republic of Congo (DRC) laid on Tuesday the first stone to mark the start of the construction of Banana Port project, which is expected to boost the country’s trade. The facility is being developed along the country’s 37-kilometre coastline on the Atlantic Ocean in Kongo Central province. Read More

Odfjell Drilling said via social media channels that the Deepsea Stavanger has started its contract with Equinor. It is the third Odfjell rig working for the company. Read More

Tenaris, Saipem and SIAD have signed a Memorandum of Understanding (MoU) to start the design phase of a carbon dioxide capture and utilization (CCU) plant, to be built at the Tenaris plant in Dalmine, northern Italy. The project covers the capture of 30 tons of CO2 per day produced by the thermoelectric power plant installed at the TenarisDalmine plant. Read More

Saipem revises backlog and withdraws outlook announced on October 28, 2021. Statutory financial statements in 2021 are expected to show a loss for more than one third of the company’s equity. The Company has initiated preliminary discussions with banking counterparties as well as with shareholders ENI S.p.A. and CDP Industria S.p.A. to ascertain their willingness to support an appropriate financing package 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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