Don’t hold your breath for a breakthrough at COP26
We Take a quick look at some of the critical figures and data in the energy markets.
Next, we’ll take a look at some of the major market players at the start of this week before providing you with the latest analysis of the major current events that have unfolded in the global energy complex over the past few days. We hope you will enjoy it.
Graph of the week
- One of the main sound bites from the COP26 summit was the call for a coal ban, pushed by conference chairperson Alok Sharma as well as the G20 countries, but coal still has a good impact. future in Asia.
- Asia’s biggest coal consumers, China and India, have resisted any strict summit commitments because they see coal as a key part of their production capacity.
- In Asia alone, some 200 coal-fired power plants are currently under construction, accounting for 90% of the world’s coal production capacity, with China leading the list with 95 plants and India in second with 28 projects.
- To date, of the more than 2,600 coal-fired power plants in operation worldwide, 71% are located in Asia.
British major BP (NYSE: BP) added over $ 1 billion to its 2021-2022 program redeem based on stronger than expected third quarter results with net income reaching $ 3.3 billion.
Chinese national oil company Sinopec (SHA: 600028)
- Chinese national oil company Sinopec (SHA: 600028) discovered a huge shale oil field in its Shengli area, with in-place viscous heavy crude reserves amounting to 3.4 billion barrels.
Austrian OMV (VIE: OMV), the largest oil and gas company in Central Europe, is considering split the company in separate activities of energy and chemicals in the coming years, mula possible buyout of 25% of Mubadala.
Tuesday 02 November 2021
The start of the two-week COP26 Mountain peak in Glasgow demonstrated how unlikely a comprehensive global deal is, highlighting the differences between the south and the north and between net producers and importers of energy. These differences were exacerbated by the abstention of prominent politicians from China, Russia and Turkey. While COP26 will most likely achieve moderate goals, such as reducing methane emissions or limiting deforestation, the chances of a global breakthrough are limited. At the same time, Iran seems more and more favorable to find a diplomatic settlement to the deadlock of the JCPOA, which would put a cap on crude prices going much higher.
Methane emissions in the sights of COP26. The early days of COP26 in Glasgow brought a rare glimpse of unity as more than 90 countries signed the Global Methane Pledge, pledging to reduce methane emissions by 30% from 2020 levels by 2030.
India commits to achieving a 2070 net zero target. In one of the first disappointments of COP26, India promised to reduce its carbon emissions to zero by 2070, claiming that fossil fuels will be present for some time in the world’s largest democracy and that this would reduce GHG emissions by 33% from 2005 levels.
Halliburton could take over Exxon’s stake in the Iraqi mega-field. A rare thing for an oil services company, the giant of hydraulic fracturing Halliburton (NYSE: HAL) To Express interest in taking over the 32% stake of ExxonMobil operator in the giant Iraqi field West Qurna-1, the latter wanting to leave Iraq completely.
China draws on stocks of strategic products. Forced by an energy crisis that is increasingly weighing on China’s downstream production, Beijing said it Release state of gasoline and diesel reserves from strategic stocks, the first time this has been done.
Australian billionaire watches Argentina’s green hydrogen manna. Andrew Forrest, owner of the Australian mining giant Fortescue Metals (ASX: FMG), is Planning investing up to $ 8.4 billion in green hydrogen projects in Argentina, using wind power to split water into hydrogen and oxygen.
Iraq is seeking billion dollar deals with Saudi Arabia. Cash-strapped Iraq is Planning to sign several deals worth tens of billions of dollars with Saudi Arabia, including natural gas production deals in the Western Desert as well as several solar and desalination plants across the country.
US carbon capture credit well received by coal burners. A significant part of President Biden’s infrastructure bill, a proposed increase in the tax credit for carbon capture and sequestration projects (up to 85 per metric tonne, up from 50 / mt currently) has been positively received by utility companies using coal as it could provide a new income stream for the industry.
TotalEnergies wants more Libyan exposure. As Libya’s stability is continually on the brink of collapse, the French major TotalEnergies (NYSE: TTE) is said to be on the verge of buying Hess Energy’s 8.2% stake in the Waha Oil consortium, an agreement that will likely be announced at the end of November during the visit of Total’s CEO to Tripoli.
Rise in gas prices in Europe due to the shutdown of supplies to Gazprom. A major pipeline that carries Russian gas to Germany has been put into circulation to the east this Saturday, hampering flows to the EU by Gazprom (MCX: GAZP) and re-send TTF prices above 70 euros per MWh ($ 26 per mmBtu).
Bolsonaro keeps the heat going with the privatization of Petrobras. Brazilian President Jair Bolsonaro continues to castigate Petrobras (NYSE: PBR)for soaring transportation fuel prices in the Latin American country, saying he sees the privatization of the company as a “ideal move ”with such high crude prices.
EPA is deterring potential buyers of the Limetree refinery. The United States Environmental Protection Agency warned potential bidders that the bankrupt 210,000 bpd Limetree Bay refinery, which is slated to be auctioned this month, is at risk due to contamination of newly discovered groundwater near the site.
Panic buying in Pakistan reinforces LNG surge. Pakistan launched an emergency tender for LNG cargoes arriving in November after its major suppliers Gunvor and ENI (BIT: ENI) canceled their deliveries in the event of force majeure, creating a tangible upside risk for LNG prices in the coming days.
Turkey is increasing gas prices for power plants and industry by almost 50%. By keeping consumer gas prices unchanged, Turkey has raised the price of natural gas for power plants and industry by 47% and 48%, respectively, the biggest price hike overseen by the state in this period. day in Europe.
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