Post Tagged with: "OECD"

Inventories Back at Five-Year Averages—for Now

Inventories Back at Five-Year Averages—for Now

The production cuts may have erased the surplus, but for how long? Stored petroleum around the world fell through 2017 and the first quarter of 2018, ending a period of oversupply in the global market that began before OPEC began production cuts in November 2016, according to data from the EIA. The production cuts took effect in January 2017, reducing supply by 1.2 MMBOPD (compared to October 2016 levels) and limiting total OPEC production to 32.5 MMBOPD. Russia joined in by agreeing to reduce its crude oil production, and OPEC eventually extended the agreement a year later, in November 2017. Extension of production cuts has resulted in steadier oil prices gliding upward on a smooth increase. The decrease in production eventually caused the global market to balance. Crude oil and other liquids inventories declined after a long stretch of steady increases from mid-2014 through most of 2016. According to the[Read More…]

Courtesy of RSP Permian

OECD Inventories Lowest in Three Years: IEA

Inventory declines have brought prices to three-year highs The International Energy Agency (IEA) released its monthly Oil Market Report today, outlining the group’s analysis of the overall oil market. In March 2018, OECD stocks declined by 27 million barrels to 2,819 million barrels – 214 million barrels below year-ago levels. This is the lowest level in three years, the IEA said. Crude oil prices have risen by nearly 75% since June 2017. Because of rising prices, the IEA lowered its estimate for 2018 global oil demand growth by 40 MBPD to 1.4 MMBPD, and the agency has increased its expectations for U.S. oil production growth this year by 120 MBPD. The DOE’s total crude oil inventory has fallen to 432,354 MBBL – down 17% from the 520,772 MBBL that was in storage at this point last year. The IEA said to be “mindful” of current constraints that have manifested in[Read More…]

Johan Sverdrup

Source: Total

Totally Bought: Maersk Oil/Total Deal Closed – Makes Total 2nd Largest North Sea Operator

Total S.A. (ticker: TOT) closed the acquisition signed on August 21, 2017, adding around one billion BOE 2P reserves, mainly in OECD countries. The acquisition also increases Total’s production by 160 MBOEPD in 2018, and the company expects to ramp up production to 200 MBOEPD by early 2020. According to Total, this deal makes the company the second-largest operator in the North Sea with a projected output of 500 MBOEPD by 2020. The effective date of the transaction was March 8, 2018. Under the agreed terms, A.P. Moller-Maersk will receive a consideration of $4.95 billion in Total shares (around 97.5 million shares based on average share price of the 20 business days prior the signing date of August 21, 2017) and Total will assume $2.5 billion of Maersk Oil’s debt. When the deal was announced in August, Maersk said it planned to return a “material portion of the value of[Read More…]

IEA World Oil Demand (mb/d = Millions of Barrels per Day), Feb. 2018

World Hungers for Oil: IEA

The International Energy Agency (IEA) released a new Oil Market Report (OMR) today. In its OMR, the IEA said countries across the globe have been steadily consuming more and more oil over the past few years. The IEA said that global oil demand growth for 2018 has increased slightly to 1.4 million barrels per day (mb/d), partly due to an optimistic GDP forecast from the IMF. This is down from 2017’s gain of 1.6 mb/d, but still remains higher than 2013-15’s level of demand. OECD commercial stocks fell in December 2017 by 55.6 million barrels (m/b), the steepest drop since February 2011, to reach 2,851 m/b. In 4Q17, stocks fell sharply by 1.3 mb/d across the OECD. The United States experienced several bouts of extreme winter cold, leading to record draws. Overall, stocks drew by 154 m/b during 2017 and ended the year 52 m/b above the five-year average, the[Read More…]

February 13, 2018 - 5:55 pm Closing Bell Story, International, Oil and Gas 360 Articles
What’s Next for the Economies of China and India?

What’s Next for the Economies of China and India?

Since 1990, China and India have accounted for 57% of the total increase in world energy consumption Earlier this week the EIA put out data that revealed that the world’s developing countries used higher amounts of electricity than OECD countries. In a graph, the heavy users were China, India, Brazil and Egypt, with the U.S., UK and Japan being close to zero growth or below zero growth for electricity usage. This relationship between energy usage and economic growth has changed in recent times for several reasons, according to the new data by the EIA. The EIA said that reasons include the countries’ relative levels of development, electrification, economic makeup, and income levels. Yesterday the EIA published its economic growth cases for China and India, giving some indication of where their economies may be headed, which affects energy demand. China and India determine worldwide energy consumption trends because of their large[Read More…]

Source: Energy.gov

OECD Member Countries Use Less Electricity: Here’s Why

GDP growth rates historically have been tied to electricity usage due to population growth and the need to generate more goods and services to serve the growing populations, but traditional metrics are changing. This relationship between energy usage and economic growth has changed in recent times for several reasons, according to a new study by the EIA. The EIA said that reasons include the countries’ relative levels of development, electrification, economic makeup, and income levels. The shift from manufacturing to service economies reduces electricity needs Developed OECD member countries have been shifting from manufacturing economies towards service economies. Service economies usually use less electricity than economies with highly active manufacturing industries. Commercial services are generally less energy-intensive compared to manufacturing, according to EIA data. Additionally the U.S., UK, and Japan have been shifting towards advanced manufacturing, which uses energy efficient technology. “As more economic activity shifts from lower-skilled manufacturing to[Read More…]

November 20, 2017 - 4:21 pm Closing Bell Story, Oil and Gas 360 Articles
OECD Commercial Stocks See First Draw in Seven Months

OECD Commercial Stocks See First Draw in Seven Months

Draw on commercial stocks in October is not the start of a trend, but fears of reaching capacity are overstated: IEA The Organization of Economic Cooperation and Development saw commercial stocks of crude oil draw down for the first time in seven months, according to the International Energy Agency’s (IEA) December Oil Market Report. Commercial stocks stood at 2,971 MMBO at the end of October. While the draw comes as welcome news for markets that have remained critically oversupplied during the last year, the IEA believes that inventories will continue to build until late 2016, although at slower rates than seen this year. Fears of reaching “the top of the tank” in storage remain overstated, however, said the IEA, with new and spare storage expected to absorb the projected extra 300 MMBO of stocks. [email_signup label=”Sign Up for Closing Bell – our Free, End-of-Day Oil & Gas News Report”] Oil[Read More…]

December 11, 2015 - 4:34 pm Closing Bell Story, International, Oil and Gas 360 Articles
OECD Downgrades Canadian Forecast as Oil Prices Continue to Fall

OECD Downgrades Canadian Forecast as Oil Prices Continue to Fall

Canada gets a downgrade The Organization for Economic Cooperation and Development (OECD) lowered its economic growth expectations for Canada in its most recent report, released March 18. The new predictions put economic growth in Canada this year at 2.2%, down from 2.6% in its November forecast. For 2016, the group now sees growth of 2.1%, down from 2.4% previously. “Oil and commodity exporters are facing weaker growth prospects as the result of lower prices,” the OECD said. Expectations for Brazil’s outlook were also lowered. “The main class of countries for which near-term growth prospects have worsened since the November 2014 economic outlook is the commodity exporters,” the report said. “The interim projections are significantly lower for oil-exporters Canada and Brazil, with short-term growth prospects in Brazil also being restrained by monetary and fiscal tightening and increasing political uncertainty.” According to the OECD, “Growth has already slowed in many other oil-exporting[Read More…]

March 18, 2015 - 4:05 pm Canada, Oil and Gas 360 Articles