Page 8 - GLNG Week 23

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Provincial authorities had hoped to offer the Offshore disruptions as North American on-
site to investors earlier this year but postponed shore rigs fall
the sale, citing unfavourable market conditions. Oil producers in the US Gulf of Mexico were
Vaca Muerta fields have seen production levels preparing to resume disrupted operations this
decline since April, when the national oil com- week, after Tropical Storm Cristobal passed
pany (NOC) YPF reined in upstream operations through the region, bringing high winds and
at Loma Campana and other sites. heavy rains.
At the same time, Ecuador is facing some Offshore producers were reported to have
short-term setbacks, owing to continued prob- evacuated 188 Gulf facilities, and shut in 635,000
lems with the SOTE oil pipeline system. Offi- bpd of oil and 878mn cubic feet (25mn cubic
cials in Quito have declared force majeure on metres) per day of natural gas according to fed-
Petroecuador’s production operations, and the eral data.
NOC is building a bypass link in a bid to improve Among those shutting in some of their out-
conditions. put was BP, which reduced production at its
Thunder Horse, Atlantis and Na Kika platforms.
If you’d like to read more about the key events shaping Royal Dutch Shell said on June 8 that its produc-
Latin America’s oil and gas sector, then please click tion had been unaffected by the storm, but that
here for NewsBase’s LatAmOil Monitor. it would resume drilling activity and redeploy
nonessential workers that had been evacuated
Middle East – Oil production breakthrough; from the region.
Aramco sets prices for July Murphy Oil also said on June 8 that it
The week’s developments in the Middle East have was beginning to return workers to offshore
centred on the milestone of Saturday’s important facilities.
meeting of OPEC and its allies, who managed Onshore, meanwhile, the active oil and gas
to break through the temporary difficulties and rig count has continued to fall and dropped to
deadlock to reach agreement to extend the oil 284 in the week up to June 5 – marking a thir-
production cuts through to the end of July. On teenth straight week of declines. This compares
this news, oil prices edged higher and this was with 793 active oil and gas rigs reported in the
followed by Saudi Aramco issuing its prices for first week of March.
Oil rigs have accounted for the majority of the
That there is still July; these prices exceeded market expectations decline, falling by 476 over this period, while the
and suggested that the oil market was now walk-
a long way to go ing away from the dire situation which envel- gas rig count fell by 33.
Also last week, data emerged showing
is highlighted by oped it in March/April. how robust energy trade within North Amer-
That there is still a long way to go is high-
the perils facing lighted by the perils facing OPEC’s second-larg- ica was in 2019. The US Energy Information
est member – Iraq. The country’ prime minister Administration (EIA) reported on June 5
OPEC’s second- has made an encouraging start to his tenure that Canada was the largest source of US
but he now has to try to find a way through the energy imports last year, and was second only
largest member inexorable ripples of the massive cut to the state’s behind Mexico as a destination for US energy

– Iraq. revenues from the collapse in the price of oil. To exports.
Citing data from the US Census Bureau, the
avoid financial collapse and public service melt-
down is his government’s top priority. EIA said that energy accounted for $85bn or
A reminder of former times comes with pos- 27% of the value of all US imports from Can-
itive news from Abu Dhabi, where ADNOC is ada in 2019. Meanwhile, the US exported $23bn
looking to close a deal to sell a stake in its domes- worth of energy to Canada last year, accounting
tic gas pipeline network, and Oman, where PDO for around 8% of all US exports to Canada. This
has said it aims to increase its crude production was the second highest level ever recorded, after
to 700,000 bpd by 2024. 2014.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click the North American oil and gas sector, then please click
here for NewsBase’s MEOG Monitor. here for NewsBase’s NorthAmOil Monitor.™

P8 www. NEWSBASE .com Week 23 12•June•2020