Page 10 - LatAmOil Week 23 2020

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Meanwhile, a new deal has brought the reserved preparing to resume disrupted operations this
capacity at Croatia’s Krk facility, which is cur- week, after Tropical Storm Cristobal passed
rently under construction and due to start up in through the region, bringing high winds and
2021, to 80%. heavy rains.
Offshore producers were reported to have
If you’d like to read more about the key events shaping evacuated 188 Gulf facilities, and shut in 635,000
the global LNG sector then please click here for News- bpd of oil and 878mn cubic feet (25mn cubic
Base’s GLNG Monitor. metres) per day of natural gas, according to fed-
eral data.
Middle East: Oil production breakthrough; Among those shutting in some of their out-
Aramco sets prices for July put was BP, which reduced production at its
The week’s developments in the Middle East have Thunder Horse, Atlantis and Na Kika platforms.
centred on the milestone of Saturday’s important Royal Dutch Shell said on June 8 that its produc-
meeting of OPEC and its allies, who managed tion had been unaffected by the storm, but that
to break through the temporary difficulties and it would resume drilling activity and redeploy
deadlock to reach agreement to extend the oil non-essential workers that had been evacuated
production cuts through to the end of July. from the region.
On this news, oil prices edged higher and Murphy Oil also said on June 8 that it was
this was followed by Saudi Aramco issuing their beginning to return workers to offshore facilities.
prices for July; these prices exceeded market Onshore, meanwhile, the active oil and gas
expectations and suggested that the oil market rig count has continued to shrink, and dropped Offshore
was now walking away from the dire situation to 284 in the week up to June 5 – marking a thir-
which enveloped it in March/April. teenth straight week of declines. This compares producers in the
That there is still a long way to go is high- with 793 active oil and gas rigs reported in the
lighted by the perils facing OPEC’s second-larg- first week of March. Oil rigs have accounted for Gulf of Mexico
est member – Iraq. the majority of the decline, falling by 476 over evacuated 188
The country’ prime minister has made an this period, while the gas rig count decreased by
encouraging start to his tenure but he now has to 33. facilities before
try to find a way through the inexorable ripples Also last week, data emerged showing how
of the massive cut to the state’s revenues from robust energy trade within North America was Tropical Storm
the collapse in the price of oil. To avoid financial in 2019. The US Energy Information Admin-
collapse and public service meltdown is his gov- istration (EIA) reported on June 5 that Canada Cristobal passed
ernment’s top priority. was the largest source of US energy imports last through the
A reminder of former times comes with pos- year, and was second only behind Mexico as a
itive news from Abu Dhabi, where ADNOC is destination for US energy exports. region
looking to close a deal to sell a stake in its domes- Citing data from the US Census Bureau, the
tic gas pipeline network, and Oman, where PDO EIA said that energy accounted for $85bn, or
has said it aims to increase its crude production 27%, of the value of all US imports from Can-
to 700,000 bpd by 2024. ada in 2019. Meanwhile, the US exported $23bn
worth of energy to Canada last year, accounting
If you’d like to read more about the key events shaping for around 8% of all US exports to Canada. This
the Middle East’s oil and gas sector then please click was the second-highest level ever recorded, after
here for NewsBase’s MEOG Monitor. 2014.

Offshore disruptions as North American If you’d like to read more about the key events shaping
onshore rigs keep falling the North American oil and gas sector then please click
Oil producers in the US Gulf of Mexico were here for NewsBase’s NorthAmOil Monitor. ™

P10 www. NEWSBASE .com Week 23 11•June•2020