OPEC to pressure Nigeria to join production cuts. Related: Russia’s Comeback In The LNG Race The Argentina government has been keen on attracting some of the largest energy companies in the world to scale up shale oil and gas drilling. Exxon has done some pilot project work and other exploration in the country for several years, but it will formally request a 35-year concession for shale drilling in the Vaca Muerta. ExxonMobil (NYSE: XOM) said that it would invest $200 million to boost natural gas production in the highly-prized Vaca Muerta shale in Argentina. It is not at all clear that China will try to shut down some refiners to rein in overcapacity instead, it appears China will try to shore them up in a consolidated company.ĮxxonMobil plans $200 million spending in Argentina’s Vaca Muerta. China has decided to merge some of its smaller “teapot” refiners into one big group, called the Shandong Refining Energy Group. But with refining capacity greater than domestic consumption, some refiners are struggling with indebtedness and surplus product. China’s refining capacity has surged 44 percent since 2011, putting it second in terms of size just behind the U.S. While the WSJ did not touch on it, a disappointing performance from China would also raise worries about the heady demand projections for other commodities.Ĭhina to merge refiners as overcapacity grows. Plus, the structural changes underway, favoring a transition away from heavy industry, point to weak demand growth ahead for coal. Data from China, the world’s largest coal consumer, shows some signs of a slowdown ahead, which does not bode well for coal prices. There are some warning signs from the Chinese economy, the Wall Street Journal writes, which suggests the brief and shallow respite for coal could be nearing an end. “The market is pricing in a rather quick recovery in the Houston area but it might still be several weeks for the Houston area refiners to return to full production.”Ĭhina economic slowdown a warning sign for coal. “We have seen a fair amount of refinery capacity return online but there still is a significant amount that is still offline between the Houston-Beaumont-Port Arthur region,” Andy Lipow, president of Lipow Oil Associates LLC in Houston, told Bloomberg. Some refineries could be offline for weeks, perhaps months. But that does not mean that the disruptions will be over soon, or that the gasoline market will see minimal effects. The return of a large chunk of the Gulf’s refining capacity has smoothed out the price spike in the gasoline futures market. Gasoline spike eases, but supply disruptions could linger. Related: Can Mexico Capitalize On This Golden Oil Opportunity? Gasoline prices fell back from their peaks last week. Still, enough refineries have come back online to allow the restart of the Colonial Pipeline system, a crucial conduit to supplying the East Coast. However, the Motiva complex (600,000 bpd) remains offline. Valero Energy (NYSE: VLO) said its Corpus Christi refinery (293,000 bpd) and its Texas City refinery (225,000 bpd) have returned to full production, while its Port Arthur refinery (293,000 bpd) was in the “final stages” of returning to operation. ExxonMobil (NYSE: XOM) is bringing its Baytown facility back online, the second largest in the nation. A handful of refineries have come back online as the flood waters have receded, allowing operations to resume. Refinery outages continue, but are easing. The Gulf Coast is still drying out while another major hurricane looms towards the end of the week. Gulf Coast refineries have started to come back online, easing fears of a major fuel shortage, although bottlenecks and localized scarcities will persist for some time. Gasoline futures fell more than 3 percent on Monday. The diesel and jet fuel line was slated to start up on Monday with the gasoline line to start up on Tuesday.
Gasoline prices fell on Monday after news that the startup of the Colonial Pipeline was imminent.Morgan Stanley says that Tesla’s (NYSE: TSLA) success shows that “the consumer preference for internal combustion engines can be swayed,” leading the investment bank to predict that 1 billion electric vehicles will be on the road by 2050.Cenovus is selling off the project in order to raise funds to buy much larger assets from ConocoPhillips (NYSE: COP) for C$17 billion. Canadian Natural Resources (NYSE: CNQ) is closing in on a deal to buy Cenovus Energy’s (NYSE: CVE) Pelican Lake oil assets in Alberta for around $800 million.Nearly all of Oman’s oil production is exported, mostly to Asia, with 78 percent of it going to China.Oman is the seventh largest Middle Eastern oil producer and the largest non-OPEC producer in the region.Oman saw its oil production hit a record high last year at over 1 million barrels per day.
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