Energy News to 26/10/22 | Rishi Sunak reimposes fracking ban in England
The moratorium on fracking in England has been restored by new Prime Minister Rishi Sunak. Downing Street confirmed Mr Sunak was committed to the ban on fracking in England set out in his party’s 2019 manifesto.Mr Sunak was asked about the issue during his first Prime Minister’s Questions earlier. Green MP Caroline Lucas asked if the new PM would restore the moratorium on fracking pledged in the Conservatives’ 2019 manifesto. In response, he said: “I have already said I stand by the manifesto on that.” The Tories’ general election manifesto said the party would not support fracking unless the science showed “categorically” that it could be carried out safely. The PM’s official spokesman later confirmed Mr Sunak was committed to this promise. BBC reports
The U.S. is facing a diesel crunch just as demand is surging ahead of winter — with only 25 days of supply left, according to the Energy Information Administration.
The Porsche Taycan convinced me that electric cars are the future
António Félix da Costa lives in Cascais on the outskirts of Lisbon. He drives a Porsche Taycan and uses the fully electric sports car to get around the Portuguese capital and beyond. On the way to the Taycan factory, during his visit to Zuffenhausen, he spoke passionately about an exciting 700-kilometre trip that he took a few days ago. “I always knew that electric cars are the future, but this trip totally convinced me,” he said. “It’s great that Porsche is building such cars. The Taycan combines performance and efficiency in a beautiful design. And it has all the Porsche DNA.” This made the Portuguese racing driver all the more curious to witness how the Taycan is built in the factory. “I was deeply impressed by the professionalism and love everyone working there,” he said. “It’s a pure reflection of the Porsche brand.” In the 911 factory, he found it particularly remarkable that road and racing cars are produced at the same plant. “The close connection between series and motorsport production is definitely one of the secrets of Porsche’s success.” Read More
Moody’s Investors Service has downgraded Nigeria’s local currency and foreign currency long-term issuer ratings as well as its foreign currency senior unsecured debt ratings to B3 from B2. The global rating agency also placed Africa’s largest economy by gross domestic product rating on review for downgrade, according to a rating note. Read More
Neste congratulates Scientia Professor Martin Green of the UNSW Sydney, Australia, the winner of the Millennium Technology Prize 2022. The prize worth one million euros was awarded on Tuesday, 25 October in Helsinki, Finland. Neste has been one of the main partners of the Millennium Technology Prize since 2006.
Professor Green’s prize-winning innovation is a Passivated Emitter and Rear Cell (PERC) used in solar panels. Almost 90 percent of the global solar cell market is based on the use of this technology, which was launched in 1983. The efficiency of the PERC cell’s operation is based on the fact that by improving the quality of the top and the rear surface of the silicon-based solar cell, the electrons that produce the electric current stay in motion longer and the cell therefore produces more energy than traditional solutions. The technology has clearly brought down the operating costs of solar panels and made it possible for solar energy to compete against fossil alternatives. Read More
Just Stop Oil supporters have sprayed paint on a number of luxury car dealerships in Berkeley Square. They are demanding that the government halts all new oil and gas licences and consents. At 8:30am today, two Just Stop Oil supporters sprayed orange paint from a fire extinguisher over the premises of several high end car dealers on Barclay Square and Bruton Street including HR Owen Bugatti, Jack Barclay Bentley, Bentley Motor Cars London and Ferrari Mayfair. Read More Just Stop Oil supporters have blocked Piccadilly in London. They are demanding that the government halts all new oil and gas licences and consents.
At midday today, 16 Just Stop Oil supporters walked onto Piccadilly near Green Park Tube station and disrupted traffic by sitting in the road with banners. Some supporters have glued onto the tarmac.
EV charge point manufacturer, EVIOS, has acquired the prestige EV home charging business Andersen EV. The management of EVIOS has indicated that the two brands will co-exist, serving different parts of the EV market and benefitting from shared investment in technology, installation personnel and customer support. Production of Andersen units will recommence immediately and all associated customer support services will be merged with the existing operation at EVIOS’s Bedfordshire-based headquarters. Installations will be fulfilled via EVIOS’s in-house installation team which provides full nationwide coverage. EVIOS will fully support Andersen’s existing customer base across the UK and will honour any remaining product warranties. Putting customer needs at the forefront of the takeover process, EVIOS has also announced that it will fulfil over 200 pending product orders and will continue to operate Andersen-ev.com and the Kønnect+ app, which helps Andersen users manage, change and report on their charging activity. Andersen’s A2 product is renowned for its sleek profile, premium finish, and minimalist design, allowing it to blend discreetly with its surroundings. Read More
Ørsted and CIP have decided to join forces in a new 50/50 partnership to develop a number of offshore wind projects under the open-door scheme in Denmark. The projects are ‘Vikinge Banke’ (1.1 GW) and ‘Jyske Banke Nord’ (1.1 GW) in the North Sea, and ‘Bornholm Bassin Syd’ (1.5 GW) and ‘Bornholm Basin Øst’ (1.5 GW) in the Baltic Sea. Together, the projects correspond to more than double Denmark’s current installed offshore wind capacity, and they represent a key contribution to the green transformation of Denmark and Europe. The offshore wind farms will be established without support from Danish taxpayers and they will contribute significantly to growth and job creation in Denmark.
The partnership between Ørsted and CIP encompasses the development, construction, and operation of the offshore wind farms as well as the related transmission assets. The partnership envisages that the open-door projects can create a Danish Power-to-X stronghold by delivering large-scale renewable electricity as soon as possible and with a target of 2027/2028 if feasible. Read More
During the period from October 17 to October 21, 2022, Eni acquired n. 10,985,058 shares, at a weighted average price per share equal to 11.9412 euro, for a total consideration of 131,175,309.91 euro within the authorization to purchase treasury shares approved at Eni’s Shareholders’ Meeting on 11 May 2022, previously subject to disclosure pursuant to art. 144-bis of Consob Regulation 11971/1999. On the basis of the information provided by the intermediary appointed to make the purchases, the following are details of transactions for the purchase of treasury shares on the Euronext Milan on a daily basis: Read More
Saudi blasts release of oil reserves ‘to manipulate markets'”People are depleting their emergency stocks, had depleted it, used it as a mechanism to manipulate markets while its profound purpose was to mitigate shortage of supply,” Prince Abdulaziz bin Salman told an investor conference in the Saudi capital.
“However, it is my profound duty to make it clear to the world that losing emergency stock may become painful in the months to come.”
Prince Abdulaziz did not single out the US in his comments about emergency stocks, but last week US President Joe Biden announced he was putting the final 15 million barrels on the market from a record release of US strategic reserves.
That tranche was to complete a 180 million barrel release authorised in the spring, in response to price hikes linked to Russia’s invasion of Ukraine. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $86.18 | Up |
| Crude Oil (Brent) | USD/bbl | $94.14 | Up |
| Bonny Light | USD/bbl | $93.14 | Up |
| Saharan Blend | USD/bbl | $93.42 | Up |
| Natural Gas | USD/MMBtu | $5.54 | Up |
| OPEC basket 24/10/22 | USD/bbl | $92.17 | — |
Saudi Arabia’s Energy Minister has warned countries against misusing their crude oil stockpiles to manipulate the oil markets.
According to the Kingdom’s Energy Minister, Prince Abdulaziz bin Salman, who has been sparring with U.S. President Joe Biden in recent weeks, strategic crude oil stockpiles are designed to be used to manage supply shortages, not to bring down prices.
“It is my profound duty to make clear to the world that losing (releasing) emergency stocks may be painful in the months to come,” the Energy Minister said at the Future Initiative Investment conference in Riyadh.
The comment was quickly interpreted as a barb aimed specifically at President Biden, who lashed out at OPEC+ over its recent decision to lower its crude oil production targets by 2 million barrels per day after the United States spent months releasing more than a hundred million barrels of crude oil from its Strategic Petroleum Reserves to alleviate high prices at the pump ahead of midterm elections. The warning is just the latest in the tiff between Saudi Arabia and President Biden, after the U.S. President said there would be consequences for Saudi Arabia’s decision—with Russia—to lower crude oil production. Read More
East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories.
Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast. These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.
Back in May 2022, diesel prices rose by $1/gal and supply dried up throughout the Southeast. Over the past few weeks, market volatility has begun to echo the challenges seen in April 2022, as we covered in FUELSNews on Oct 11 and Oct 14. Like before, markets are now seeing extremely high prices in the Northeast along with supply outages along the Southeast.
In many areas, actual fuel prices are currently 30-80 cents higher than the posted market average, because supply is tight. Usually the “low rack” posters can sell many loads of fuel before running out of supply; now, they only have one or two loads. That means fuel suppliers have to pull from higher cost options, at a time when low-high spreads are much wider than normal. At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity. Read More
Oil markets continue facing uneven trading, with crude oil trading sideways while diesel prices are up 10 cents per gallon. The market situation has been described by Goldman Sachs this way: “Commodities remain stuck between a strong micro, weak macro and poor liquidity.” While fuel markets (the “strong micro”) are extremely tight, the broader market’s emphasis on a recession (the “weak macro”) has caused prices to be lower than fundamentals might imply. Adding in volatile market conditions that have shifted investors towards bonds and other investments away from unpredictable commodities (the “poor liquidity”), and you get fewer transactions and bigger swings at each turn. Overall – expect both macro and micro fuel markets to be volatile in the future.
Around the country, some regions are facing much higher prices. Regional basis, the difference between a region’s prices and the NYMEX, have seen extreme volatility. New York Harbor is currently trading 40 cents higher than the NYMEX – even though NYMEX contracts are deliverable to the same place. The only difference is time – basis is tied to today’s prices, while the NYMEX is based on fuel deliverable next month. Other regions have seen wide fluctuations, such as Los Angeles, which saw prices swing from 60 cents over the NYMEX to 30 cents below. Chicago basis, which covers most of the Midwest, has moved from -30 cents to +20 cents and back down. Read More
The transition to electric vehicles is underway for homeowners who can power up in their own garage, but for millions of renters, access to charging remains a significant barrier. Now, cities across the U.S. are trying to come up with innovative public charging solutions as drivers string power cords across sidewalks, erect private charging stations on city right-of-ways and queue at public facilities. The Biden administration last month approved plans from all 50 states to roll out a network of high-speed chargers along interstate highways using $5 billion in federal funding over the next five years. But states must wait to apply for an additional $2.5 billion in local grants to fill in charging gaps, including in dense urban areas. Read More
Toyota Motor Corporation (Toyota) has announced the Toyota bZ3, the second model in its bZ series. The bZ3 is a battery electric sedan jointly developed for the Chinese market by BYD TOYOTA EV TECHNOLOGY CO., LTD. (BTET)―a joint venture established by Toyota and BYD Company Ltd. (BYD)―and FAW Toyota Motor Co. Ltd. (FAW Toyota). It will be produced by and sold through the FAW Toyota dealer network.Toyota bZ3 is born out of the three companies’ collaboration and synergy in development, car manufacturing, and battery technology. The combined strengths of each member have resulted in unprecedented new value and new experiences for customers. Read More
Exxon Mobil Corp has made two new discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana, the oil major said on Wednesday, adding more barrels to one of the most closely watched new oil discoveries. Exxon did not disclose how much crude oil or gas it estimates the new discoveries to contain, but it also hiked a previous output forecast for the third quarter from older discoveries in the region. Read More
U.S. Rig Count is up 2 from last week to 771 with oil rigs up 2 to 612, gas rigs flat at 157 and miscellaneous rigs unchanged at 2.
Canada Rig Count is down 6 from last week to 210, with oil rigs down 6 to 144, gas rigs unchanged at 66.
Baker Hughes Rig Count
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 21 October 2022 | 771 | +2 |
| Canada | 21 October 2022 | 210 | -6 |
| International | September 2022 | 879 | +19 |
CME Group Inc. Reports Third-Quarter 2022 Financial Results
CME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2022.
The company reported revenue of $1.2 billion and operating income of $739 million for the third quarter of 2022. Net income was $680 million and diluted earnings per share were $1.87. On an adjusted basis, net income was $719 million and diluted earnings per share were $1.98. Financial results presented on an adjusted basis for the third quarter of 2022 and 2021 exclude certain items, which are detailed in the reconciliation of non-GAAP results.1
“Our strong Q3 financial performance was driven by a 26% increase in trading volume, generating double-digit growth in total revenue,” said CME Group Chairman and Chief Executive Officer Terry Duffy. “During the quarter, year-over-year volume rose in five of our six asset classes, led by interest rates, equity indexes and a near-record quarter for foreign exchange. Likewise, the demand for our products remains strong, with year-to-date volumes up 22%, as clients continue to manage risk amid global economic and geopolitical uncertainty.” Read More
Hess Corporation (NYSE: HES) today reported net income of $515 million, or $1.67 per common share, in the third quarter of 2022, compared with net income of
$115 million, or $0.37 per common share, in the third quarter of 2021. On an adjusted basis, the Corporation had net income of $583 million or $1.89 per common share, compared with $86 million, or $0.28 per common share, in the third quarter of 2021.
Third Quarter Financial and Operational Highlights:
• Net income was $515 million, or $1.67 per common share, compared with net income of $115 million, or $0.37 per common share, in the third quarter of 2021
• Adjusted net income1 was $583 million or $1.89 per common share, compared with net income of $86 million, or $0.28 per common share in the prior-year quarter
• Oil and gas net production, excluding Libya, was 351,000 barrels of oil equivalent per day (boepd), up 32 percent from 265,000 boepd in the third quarter of 2021
• Bakken net production was 166,000 boepd, up 12 percent from 148,000 boepd in the third quarter of 2021; Guyana net production was 98,000 barrels of oil per day (bopd), compared with 32,000 bopd in the prior-year quarter
• E&P capital and exploratory expenditures were $701 million compared with $498 million in the prior-year quarter
• Cash and cash equivalents, excluding Midstream, were $2.38 billion at September 30, 2022 Read More
OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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