Page 14 - AsianOil Week 41

AsianOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AsianOil

Countervailing forces

Oil prices and energy demand are under pressure on both

sides from storms, COVID-19 outbreaks and climate concerns

COMMENTARY WELCOME to the latest edition of NewsBase’s These concerns have been evident over the last
Roundup Global (NRG), in which our team of week, despite indications that Saudi Arabia was
international editors provide you with a snap- looking to raise crude output. They could lead to
shot of some of the key issues affecting their the cancellation of Denmark’s latest offshore licens-
regional beats. Get the NRG Oil & Gas Editor’s ing round, and they have led US-based NextDec-
Picks to your inbox every week for free. Just sign ade to include a carbon neutrality goal in its plans
up here. for the Rio Grande LNG terminal.
World crude oil prices went up last week, as
Hurricane Delta forced the temporary closure of Africa: South Sudan’s plan
offshore production platforms in the Gulf of Mex- South Sudan’s largest producer, Dar Petroleum
ico. However, they began sinking again on Monday, Operating Co. (DPOC), has seen yields drop
partly because Gulf production was resuming and to 115,000 bpd. Petroleum Minister Awow
partly because of the reported restart of Libya’s larg- Daniel Chuang attributed the decline to geo-
est oilfield. logical factors and floods last week and said
Likewise, global energy demand has been he hoped that technical solutions would help
buffeted by both bearish and bullish forces. On boost output. He also noted that Juba’s plan
the one hand, recent increases in the rate of coro- to offer exploration rights to 14 new fields in
navirus (COVID-19) infections, along with new its upcoming licensing round was designed to
lockdowns in a number of countries, indicate help boost production.
that oil and gas consumption is not likely to reach Libya, by contrast, is on track to keep pushing
pre-pandemic levels in the immediate future. But crude yields up. Over the weekend, National Oil
on the other hand, renewed economic activity has Corp. (NOC) reported that Sharara, the country’s
pushed consumption up from the lows reported biggest oilfield, was back on stream.
in the spring and does not appear to be headed for Meanwhile, Tullow Oil (UK/Ireland) marked a
another plunge in the near term. In the long run, milestone in Ghana, saying it had brought the vol-
however, climate concerns will continue to raise ume of oil extracted from the offshore Jubilee field
questions about the future of fossil fuels. to 300mn barrels.

P14 www. NEWSBASE .com Week 41 15•October•2020