BKR Rig Count | The total active drilling rigs in the United States decreased by 2 last week, to 586. Oil rigs dropped by 2 to 483, and gas rigs increased by 1 to 98. Rig count in the Permian Basin dropped by 1 to 303 | Aug 16 | BKR NAM Rig Count
US Crude Inventories, excluding those in the Strategic Petroleum Reserve (SPR), increased by 1.4 MMbbl to 430.7 MMbbl (about 5% below the 5y average for this time of year). On the products side, gasoline decreased by 2.9 MMbbl (3% below the 5y average). Distillate fuels decreased by 1.7 MMbbl (7% below the 5y average). Total commercial petroleum inventories decreased by 3.1 MMbbl | Aug 9 | EIA Weekly Report
Russia and Ukraine intend to keep pipeline gas flowing to Europe even as fighting continues near a key cross-border transit point for the fuel. Both sides have no intention of halting flows via the Sudzha gas-intake station in Russia’s Kursk region, people with knowledge of the matter said. Ukraine’s biggest incursion into Russian territory since the Kremlin invaded its neighbor in 2022 has pushed European gas prices to the highest this year amid fears supplies will be disrupted. Yet both sides have a financial incentive to keep fuel flowing. For Kyiv, gas transit provides crucial funds for its war-torn economy — amounting to about $1 billion in 2021 — while Europe remains one of Russia’s largest customers for pipeline gas | Aug 13 | Bloomberg
The US reported a rare summer withdrawal of natural gas stockpiles, underscoring how increasingly reliant power grids are becoming on the fuel to meet cooling demand. Gas inventories fell 6 billion cubic feet last week, its first summer withdrawal since 2016, according to data released Thursday by the Energy Information Administration. Cooling demand hit fresh records this summer in the nation’s warmest cities and the world experienced its hottest day ever in July | Aug 15 | Bloomberg
China’s embrace of clean energy means gasoline sales are no longer getting their usual bump from holiday travel. Domestic tourists have been out in force this summer, but fossil fuels are playing less of a role in ferrying them around the country. Instead, electricity-driven high-speed rail and new energy vehicles are eating into gasoline’s share. Gasoline receipts at China’s two biggest retailers, PetroChina Co. and Sinopec, have dropped more than 5% since the start of July, while the rail network has carried 6.1% more passengers than [the same time] last year | Aug 14 | Bloomberg
US to Reduce Iranian Oil Export Amid Escalating Tension in Middle East | The US Government is exploring options to reduce Iran’s oil exports due to increased tension in the Middle East following Tehran's pledge to retaliate against Israel for the killing of Hamas leader Ismail Haniyeh. However, the country has been seeking ways to bypass US sanctions as its economy relies heavily on oil sales. Iran dispatched small quantities of crude oil to new locations earlier this month, such as Bangladesh and Oman. This is the most recent indication of Tehran's efforts to maintain output at levels close to its highest in the past five years. In May, Iran's crude oil and gas condensate exports reached 1.7 mbbl/d, marking the highest level in five years since the full US sanctions were imposed in May 2019 | Aug 15 | GlobalData
Indian government has introduced the Oilfields Regulation and Development (ORD) Amendment Bill, 2024, in parliament to amend the ORD Act, 1948, and attract foreign companies to India's upstream oil sector. The Bill aims to ensure policy stability for producers, allow international arbitration and provide extended lease periods to maintain an investor-friendly environment | Aug 13 | S&P
Brazil has emerged as the latest contender for global liquefied natural gas supplies as dry weather threatens its vast hydropower production. South America’s most populous nation typically depends on hydroelectricity for the majority of its power needs but turns to gas when water levels plunge. Energy suppliers in Brazil, including state-owned Petroleo Brasileiro SA, are seeking six LNG cargoes for delivery in September, according to traders | Aug 13 | Bloomberg
IEA – Oil Market Report, August 2024 | Global oil demand forecast largely unchanged from last month, forecasting increases of less than 1 mb/d in both 2024 and 2025 driven by lacklustre macroeconomic drivers. Annual gains in global supply accelerate from 730 kb/d in 2024 to 1.9 mb/d in 2025, with non-OPEC+ production increasing by 1.5 mb/d this year and next, while OPEC+ may fall by 760 kb/d in 2024 but rise by 400 kb/d in 2025 if voluntary cuts stay in place | Aug 13 |
