Page 12 - FSUOGM Week 44

FSUOGM NRG FSUOGM

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

NorthAmOil: Drilling, fracking picks 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 04•November•2020