Page 7 - LatAmOil Week 37

LatAmOil NEWSBASE’S ROUNDUP GLOBAL (NRG) LatAmOil

NRG: Ahead of the peak

A warning that oil demand will peak within a few years overshadows some of the positive news

COMMENTARY WELCOME to the latest edition of NewsBase’s hasten the move away from fossil fuels.
Roundup Global (NRG), in which our team of The pandemic continues to have shorter-term
international editors provide you with a snap- consequences for the oil industry as well. The Mex-
shot of some of the key issues affecting their ican government has trimmed its production fore-
regional beats. Get the NRG Oil & Gas Editor’s cast for state-owned Pemex for 2021, while in the
Picks to your inbox every week for free. Just sign Middle East, Kuwait Oil Co. (KOC) cancelled an
up here. 11-well drilling project in the north of the country.
Weak oil prices and considerable uncertainty Meanwhile, in the US, producers and refiners
caused by the coronavirus (COVID-19) pandemic were bracing for the second hurricane in less than
have not prevented oil and gas producers from cau- four weeks to pass through the Gulf of Mexico and
tiously moving forward with various projects. make landfall on the Gulf Coast. However, the pro-
In recent days, China’s CNOOC Ltd brought duction outages ahead of the hurricane could help
a new shallow-water oilfield online, while Russia’s prices as they weaken on a bleak demand outlook.
Rosneft has decided to push ahead with a hard-to-
recover oil project in the Volga-Urals Basin – its first Africa: NNPC and Tullow’s new plans
without any partner. Nigerian National Petroleum Corp. (NNPC)
However, progress being reported on new oil may soon be taking a different approach to the
projects is being overshadowed by a warning that refining business.
demand for crude could peak in the next few years. Mele Kyari, NNPC’s group managing director,
The projection was made by super-major BP in its said last week that his company was looking into
Energy Outlook 2020, which was published this the possibility of giving up its majority stake in the
week. The company believes that COVID-19 could country’s four largest oil-processing plants.

Week 3 17•September•2020 www. NEWSBASE .com P7