Page 12 - LatAmOil Week 44 2020

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Mideast: Pipeline headlines election, with activity rebounding from lows
In the Middle East this week, headlines were seen earlier this year during the worst of the
grabbed by two pipeline explosions – one an industry downturn. Data published by con-
attack, the other apparently an accident – and sultancy Rystad Energy this week showed that
border talks between quarrelling neighbours. North American fracking likely peaked in Octo-
The Kurdistan Regional Government ber at around 780 started jobs. This is backed up
(KRG) in Erbil stated over the weekend that it by the Baker Hughes rig count, which shows
had halted oil exports following an attack on a both oil rig and horizontal rig counts gradually
pipeline carrying crude to the Turkish border rising since mid-August.
and onwards to the port of Ceyhan. The PKK Rystad noted that an election win by Dem-
group claimed responsibility for the attack on ocratic candidate Joe Biden may ultimately
the Kirkuk-Ceyhan pipeline, which has a theo- lead to a ban on fracking on federal land. While
retical throughput capacity of 1.6mn barrels per such land only accounts for a small proportion
day, but had been operating at around 500,000- of fracking activity, and any policy changes
600,000 bpd. Meanwhile, international firms are unlikely to be immediate, the consultancy Among the
developing assets in the Kurdistan region pro- nonetheless expects more stringent action in
vided updates on their projects in the semi-au- response to climate change concerns from a companies
tonomous region. Biden administration. declaring losses
In southern Iraq, a gas pipeline exploded The uptick in activity has also been helped by
near the city of Samawa, killing three and injur- oil prices stabilising in the third quarter of 2020, are super-majors
ing more than 50. There have been no reports of but Rystad noted that many operators had also
foul play and the local authorities assured that fast-tracked permitting processes on federal ExxonMobil and
supplies would not be interrupted. acreage in the Permian and Denver-Julesburg
To the West, the second round of United (DJ) basins this year. Chevron
Nations-observed talks between Israel and Leb- Biden, for his part, has sought to point out
anon ended in tension, with the latter demand- that he would not ban fracking outright – except
ing that a much larger area be considered as part potentially on federal land. The US has estab-
of the talks. The talks were originally meant to lished itself as a leading producer and major
cover an 854 square km triangle of disputed exporter of energy, and media reported this week
territory, but Lebanese negotiators said that an that there was a broad consensus among analysts
additional 1,460 square km area further south, that a Biden win would not change this.
that had previously been undisputed, must be Meanwhile, the earnings season is underway,
included in negotiations. This area includes Isra- and a series of net losses are being announced,
el’s Karish gas field and Block 72, for which a bid illustrating the challenging market oil and gas
round was launched in June. companies are currently navigating. Among the
companies declaring net losses in recent days are
If you’d like to read more about the key events shaping super-majors ExxonMobil and Chevron, as well
the Middle East’s oil and gas sector then please click as independents ConocoPhillips and Diamond-
here for NewsBase’s MEOG Monitor. back Energy.

North America: Drilling, fracking pick up If you’d like to read more about the key events shaping
Drilling and hydraulic fracturing has been on the the North American oil and gas sector then please click
rise in the US ahead of this week’s presidential here for NewsBase’s NorthAmOil Monitor .™

P12 www. NEWSBASE .com Week 44 05•November•2020