Page 7 - LatAmOil Week 49

LatAmOil NEWSBASE’S ROUNDUP GLOBAL (NRG) LatAmOil

NRG: Oil market strategising

Policy decisions made this past week will have long- and short-term ramifications for the energy sector

COMMENTARY WELCOME to the latest edition of NewsBase’s In the long term, however, the upstream
Roundup Global (NRG), in which our team of industry needs to prepare for a global transition
international editors provide you with a snap- away from fossil fuels. The importance of such
shot of some of the key issues affecting their strategising was underlined by Denmark’s deci-
regional beats. Get the NRG Oil & Gas Editor’s sion to ban all new exploration in the North Sea,
Picks to your inbox every week for free. Just sign while allowing its existing production projects to
up here. remain in place.
Some of the biggest news this past week The move reflects a similar decision made last
revolved around policy decisions in the year by New Zealand, a much smaller hydrocar-
upstream space. The oil market was able to relax bons producer, and should give the wider oil and
somewhat following OPEC+’s decision to keep gas industry pause for thought.
production cuts in place until the end of January.
The importance of efforts to support oil prices AfrOil: Offshore interest
was underscored by Chevron’s announcement In Africa, two major offshore projects have hit
last week that it would cut its capital expenditure the headlines.
budget. Offshore Angola, BP has launched a new
While production cuts will help balance one drilling programme at Block 18. The UK-based
side of the equation, a recovery in demand will super-major is now using the Valaris DS-12
be essential to help prices recover, and as long drillship to sink the first of four planned wells –
as uncertainty over when such a recovery will including two development wells and two injec-
present itself remains, then other developers will tion wells – at Platina, an oil-bearing section of
likely follow Chevron’s example. the block.

Week 49 10•December•2020 www. NEWSBASE .com P7