07/17 Weekly oil & gas update

US government gives Eni the green light to drill offshore Alaska

The US Bureau of Ocean Energy Management has conditionally approved Eni’s exploration plan to drill four wells in federal waters of the Beaufort Sea off Alaska. The approval follows the America-First Offshore Energy Strategy executive order that President Trump signed in April

Saudi Aramco plans to invest USD300 billion in next decade

According to Saudi Aramco's president and CEO Amin Nasser, the company will spend more than USD300 billion over the next decade to maintain its oil production capacity while doubling its natural gas production to 23 Bcf/d

Talos JV makes a major discovery offshore Mexico

The Zama-1 well on Block 7 struck a world-class oil discovery, with estimated reserves of more than 1 billion barrels of oil in place. The block is located offshore Mexico and is operated by Talos (35%), with Premier Oil (25%) and Sierra Oil & Gas (40%) as its partners

Mexico offers onshore blocks to private investors

On Wednesday, Mexico auctioned 21 of 24 offered onshore blocks to investors from North America and Asia, such as Jaguar Exploracion y Produccion, Sun God Energia, and Kerui Group. The auctioned blocks should yield 79 Kb/d of liquids and 378 MMcf/d of gas by 2025 and bring in USD2 billion in investment

Total pledges USD3.5-billion investment in Qatari oil field

The company will invest USD3.5 billion over five years in the Al Shaheen offshore oil field, where it won a 30% stake in a joint venture with Qatar Petroleum, replacing Denmark’s A.P. Moller-Maersk. Production is expected to ramp up to 300 Kb/d

India buys first-ever US crude oil

Indian Oil Corporation has purchased a total of 2.0 MMbbl of US crude to be delivered in October. Most of this crude is US Mars crude, a heavy, high-sulfur grade that Indian refiners now use after modifications at their plants made it easier to process these types of crudes

Shell plans to spend USD1 billion a year on clean energy by 2020

As the transition toward renewable power and electric cars accelerates, Royal Dutch Shell is willing to spend as much as USD1 billion on its New Energies division. Shell wants to focus on hydrogen fuel-cells, liquefied natural gas, and next-generation biofuels

Bangladesh prepares to sign its first LNG deal

The South Asian country is close to signing a long-term LNG supply deal with Qatar, in which Bangladesh will likely lower contractual supply volumes from the agreed-upon 4 mtpa to 2.5 mtpa in favor of spot purchases. In June 2017, Bangladesh signed a deal for the construction of its first FSRU unit

Shell exits Irish gas upstream

Royal Dutch Shell announced the sale of its 45% share in the Corrib gas project offshore Ireland to a unit of the Canada Pension Plan Investment Board for up to USD1.23 billion. The deal is part of the three-year USD30-billion divestment program to reduce debt following the BG Group acquisition in 2016

Siemens and AES Corporation join forces in electricity storage

Siemens and AES Corporation announced the formation of a 50-50 joint venture, called Fluence, to build utility-grade battery systems. Fluence aims to address the growing demand for large-scale energy storage, which is driven by the uptake of intermittent renewable technologies and declining prices of battery packs

Q2 2017 sees solar-led recovery of global clean energy investment

Global investment in clean energy has recovered from a months-long dip and is up 21% since Q1 2017, largely thanks to solar. Two massive solar PV projects (1,200 and 800 MW) in the UAE contributed a collective USD1.9 billion and simultaneously set record-low electricity price targets

Tesla sales in Hong Kong collapse after reduced tax break for EVs

Effective April 2017, the government of Hong Kong reduced the tax break for electric cars, which almost doubles the price of a Tesla in Hong Kong. This reduced incentive led to zero and five sales of Teslas in April and May, respectively, compared to 3,700 in Q1 2017

Average weekly oil & gas prices

Brent (USD/bbl): 47.89 (-0.49)
WTI (USD/bbl): 45.51 (0.02)
Henry Hub (USD/mmbtu): 2.98 ▲ (0.09)
TTF (USD/mmbtu):4.87 ▼ (-0.12)

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China oilfield services: private champions emerge from downturn with global ambitions

The Chinese oilfield service (OFS) sector has experienced hard times since oil price decline in 2014. Many OFS companies have turned to international markets or new business areas to survive.

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