10/15 Weekly oil & gas update

Hurricane Michael shuts down 3.3MMb oil production in the Gulf of Mexico

Up to 40% of production in GoM was disrupted last week by Hurricane Michael, forcing evacuation from 89 platforms. As of Sunday all production platforms were manned again, and oil production outage shrank to 16% (natural gas to 10%)

Pemex announces a 180MMboe 3P shallow water discovery

Pemex discovered 180MMboe of 3P reserves in Mulach and Manik offshore fields. The Mexican NOC plans to launch production in the area (includes Xikin, Esah, Kinbe, and Koban fields) in 2019-20, and estimates plateau output at 210Kb/d of crude oil and 350 MMcf/d of natural gas

Borr Drilling reactivates four jackups on the back of increased tender activity

Increasing tender activity has led Borr Drilling to reactivate four jackups, though the company has not disclosed which units are being reactivated. The driller has not yet secured contracts for these units, but it has recently secured contracts for three newbuilds and for Ran, a high-specification harsh-environment jackup

Asian energy majors secure LNG Canada offtake

Japanese Toho Gas and Tokyo Gas have secured deliveries of a total of 0.9 mtpa in LNG from LNG Canada. Deliveries will start in 2024-2026 and last for 15 and 13 years, respectively. South Korean KOGAS will import 0.7 mtpa over a 40-year period starting in 2024

KBR wins Tortue FLNG pre-front end engineering design contract

Engineering and construction giant KBR has been awarded FEED contract for the first phase of the BP-led Tortue field Hub/Terminal development offshore Mauritania and Senegal. The Tortue FLNG project has a targeted capacity of 2.5 mtpa in the first phase and 10 mtpa in total

Saudi Aramco invests in downstream projects worth more than USD100 billion

Saudi Aramco is working on more than USD100 billion of refining and chemicals projects, including a USD9-billion complex with Total S.A. as part of its expansion efforts. Saudi Aramco views petrochemicals as an opportunity to diversify away from its historical reliance on crude

Chevron seeks to establish refinery presence in Western Gulf Coast

To process Permian crude, Chevron is interested in buying or building a refinery—ideally near the Houston Ship Channel—to complement its existing refinery in the Eastern Gulf. Currently, the majority of Chevron's refineries are in California and require a heavier type of crude compared to the light Permian crude

Renewables top 42 GW in the UK, generating almost a third of total power in spring

UK renewable generation capacity reached 42.2 GW—up 10% year on year—in the three months since June 30. Renewables generated 31.7% of all power, a record percentage of total generation with offshore wind driving more than half of the increase in capacity

Average weekly oil & gas prices


Brent (USD/bbl): 82.54 ▲ (-2.42)
WTI (USD/bbl): 72.95 ▲ (-2.18)
Henry Hub (USD/mmbtu): 3.24 (0.08)
TTF (USD/mmbtu): 8.96 (-0.33)



New insight


Read more

The impact of rising US LNG exports on global markets

Earlier this year, the opening of Cove Point marked a turning point for US LNG exports, placing the US 5th in the 2018 export ranking, and creating major shifts in demand, supply, and pricing dynamics.

Get our weekly energy news delivered to your inbox

SIGN UP

McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. By using this Site or clicking on "OK", you consent to the use of cookies.