Comments below sent from one of our friends at Stephens.
Really? Not! OPEC warns IEA net-zero emissions roadmap could lead to an unstable oil market. The International Energy Agency's advocacy for net-zero emissions could increase oil market volatility and jeopardize needed investment in fossil fuels, OPEC said in a report to its members. "The claim that no new oil and gas investments are needed post-2021 stands in stark contrast with conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if followed by some investors," said the OPEC report, which was seen by S&P Global Platts Thursday. It was brought up to me several times this week after the IEA “roadmap” came out. It isn’t a prediction as much as it is a scenario – one of many – that may come about. But the reaction was universal as “not realistic”.
On the Other Side. Analysts at Wood Mackenzie, the energy consultancy firm said the risks associated with oil and gas have been tempered over the years by a single tenet—that demand would continue to rise indefinitely. However, that belief has all but evaporated as the energy transition toward alternative energy sources gathers momentum. They estimate the energy transition now represents $14 trillion worth of uncertainty for upstream oil and gas, the firm said in its report published May 20. “The industry now finds itself having to supply oil and gas to a world in which future demand—and price—are highly uncertain,” Wood Mackenzie vice president Fraser McKay said in the report. “The range of possible outcomes is dizzying.” Still, according to McKay, even a rapidly transitioning world needs oil and gas supply for decades to come—contrary to stark warnings made earlier this week by the International Energy Agency (IEA) that called for a hard stop of funding to fossil fuel projects. “The world will still need oil and gas supply for decades to come, and the scale of the industry will remain enormous,” he said.
Reaction to IEA's "Net Zero" report - May 24
Reaction to IEA's "Net Zero" report - May 24
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Reaction to IEA's "Net Zero" report - May 24
Other stuff to think about
June 1st marks the beginning of hurricane season. 3-5 storms category 3 and higher are forecast. It ends November 30. Six months out of the year is hurricane season. Wow.
By mid-week, the number of East Coast gas stations without fuel due to the Colonial Pipeline was down to 9,982 versus a peak of 16,326. That is a lot of people effected.
US airline travel hitting daily highs not seen since the pandemic began, airlines opening more routes for the summer,
restrictions are easing in several European nations and declining new daily covid cases in India aids a the positive sentiment.
Saudi Arabia crude inventories in March were at 133.34M bbls, down (1.237M) bbls m/m to new record lows for JODI data.
The EIA Drilling Productivity Report that came out Monday estimates US shale oil production will increase 7.707M bpd in May to 7.733M bpd in June. The EIA previously predicted May production to average 7.613M bpd.
U.S. Oil Rig Count Soars As WTI Recovers By Julianne Geiger, Friday, May 14, 2021.
Baker Hughes reported on Friday that the number of oil and gas rigs increased by 5 this week, after up 8 the previous week, to In the week prior, the U.S. oil and gas rig count increased by 8, to 453. That is up 1.1% this week and 1.8% last week. “Soars”??
A company, on one of the earnings calls, said: “To begin implementing price increases in 2Q21”. I hope it is as simple as it sounds.
Recent Analyst Comments - 16.7% capex growth consensus 2022 for 18 E&P Companies < Ray of hope for struggling OFS sector.
Exxon Mobil Under Pressure in Fight over Board of Directors
June 1st marks the beginning of hurricane season. 3-5 storms category 3 and higher are forecast. It ends November 30. Six months out of the year is hurricane season. Wow.
By mid-week, the number of East Coast gas stations without fuel due to the Colonial Pipeline was down to 9,982 versus a peak of 16,326. That is a lot of people effected.
US airline travel hitting daily highs not seen since the pandemic began, airlines opening more routes for the summer,
restrictions are easing in several European nations and declining new daily covid cases in India aids a the positive sentiment.
Saudi Arabia crude inventories in March were at 133.34M bbls, down (1.237M) bbls m/m to new record lows for JODI data.
The EIA Drilling Productivity Report that came out Monday estimates US shale oil production will increase 7.707M bpd in May to 7.733M bpd in June. The EIA previously predicted May production to average 7.613M bpd.
U.S. Oil Rig Count Soars As WTI Recovers By Julianne Geiger, Friday, May 14, 2021.
Baker Hughes reported on Friday that the number of oil and gas rigs increased by 5 this week, after up 8 the previous week, to In the week prior, the U.S. oil and gas rig count increased by 8, to 453. That is up 1.1% this week and 1.8% last week. “Soars”??
A company, on one of the earnings calls, said: “To begin implementing price increases in 2Q21”. I hope it is as simple as it sounds.
Recent Analyst Comments - 16.7% capex growth consensus 2022 for 18 E&P Companies < Ray of hope for struggling OFS sector.
Exxon Mobil Under Pressure in Fight over Board of Directors
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group