Tag: hydrogen

Square Robot, Inc., a global leader in robotic tank inspections, has knocked down two more barriers for its onstream, robotic tank inspections. The SR-3 submersible robot has formally received the NEC/CEC Class I Division 2 (C1D2) certification and Square Robot’s Side Launcher has received the NEC/CEC Class I Division 1 (C1D1) certification.

The C1D2 and C1D1 certifications were issued by third-party Nationally Recognized Test Lab, FM Approvals, proving Square Robot’s systems safe for use in hazardous locations.

As part of the operating methodology for launching into floating roof tanks, often containing low flashpoint products, the Side Launcher’s C1D1 certification confirms the safe deployment and retrieval of the SR-3 robot in these environments. The SR-3 robot and Side Launcher became commercially available in Autumn 2023, after completing initial milestone testing in partnership with ExxonMobil.

These certifications expand Square Robot’s service portfolio, allowing it to tackle a market that was previously only available for inspections by taking the tank offline. The combination makes Square Robot the first robotic company to safely inspect a new group of low flash point product tanks – the full list of which can be found here.

‘Our customers have been eagerly awaiting the certifications since our witness testing in 2024. With the C1D2 and C1D1 stamps now in hand, it opens up a new group of tank candidates available for robotic tank inspections. We’re proud to be pioneers in this industry, and continue to develop new technology based on our clients needs,’ says John Hazel, VP operations & chief inspector.

By: Tank Storage Magazine, 28/07/2025.

The Kingdom’s reform-led reputation shift presents fresh opportunities for collaboration, investment, and long-term growth.

Saudi Arabia’s global reputation is changing fast, and for the oil and gas industry, that shift speaks volumes. According to CARMA’s 5th Annual Kingdom Reputation Report, the Kingdom saw a 25% increase in positive global media coverage in 2024, while negative sentiment dropped 55% compared to 2020. Driving this transformation: a deliberate move to reposition the country from a traditional hydrocarbons heavyweight into a diversified energy and investment powerhouse.

For oil and gas professionals, this changing perception reinforces Saudi Arabia’s status not just as a producer, but as a long-term energy leader guiding the global conversation on innovation, sustainability and geopolitical relevance.

Vision 2030: A Reputation Strategy with Real Economic Weight

Vision 2030 dominated 60% of international media coverage on Saudi Arabia in 2024 — the highest share on record. Importantly, economic and social transformation stories are now outpacing political headlines.

This reputational shift is backed by substance. In 2024, media coverage of Saudi Arabia’s economy rose by 77%, driven by investment-heavy events like the Future Investment Initiative (FII), the LEAP tech conference, and the World Defence Show — all platforms where energy, technology, and industrial strategy intersect. This marks a global reframing of Saudi Arabia as a driver of integrated energy innovation.

Energy Coverage Remains Positive Amid a Diversifying Portfolio

While oil and gas made up a smaller slice of total media coverage (around 6–10% depending on outlet and geography), the tone was largely positive. The report shows that energy and infrastructure projects were key contributors to favourable sentiment, particularly in international business and investment media.

This reflects both continued global confidence in the Kingdom’s energy leadership and a growing recognition of its shift toward cleaner fuels, hydrogen development, and downstream diversification.

Leadership on the Global Stage

Saudi Arabia’s ministers, especially in energy, finance, and investment, featured prominently and positively across global media. The visibility of figures like the Energy Minister and Aramco’s CEO underscores the Kingdom’s strategic communication approach: backing vision with credible, high-level voices. This positions Saudi Arabia not just as a stable producer, but as a shaping force in the future of energy, from pricing stability to new technology plays.

by Todd Riggs / July 21, 2025

Valero Energy’s broad refining footprint and global assets position it to benefit from rising long-term demand for petroleum and liquid fuels.

Strong cash flow generation supports robust dividend growth and aggressive share buybacks, enhancing total shareholder returns and compounding value.

Despite a premium valuation versus peers, I see VLO as a ‘Buy’ for its dividend compounding potential and commitment to returning cash to shareholders.

Valero’s disciplined payout policy and history of increasing dividends make it an attractive choice for income-focused investors seeking exposure to the energy sector.

Valero Energy (NYSE:VLO) is a growing, diversified energy company with large refining capacity that positions it to profit from growing demand for petroleum and other liquid fuels in future decades.

The refiner has assets outside of the U.S. as well which could become more valuable as petroleum and liquids fuel demand is anticipated to grow particularly fast outside of the United States in the future, according to projections made by the U.S. Energy Information Administration.

Valero Energy produces a considerable amount of profits, and is buying back shares at a steady clip as well, average $2.1 billion per-annum in the last ten years. Valero Energy’s is poised for more dividend growth and the stock has a moderate valuation multiple.

Broad Refining Footprint With A History Of Profit Growth

Valero Energy is a Texas-based refining company with a main refining focus on the U.S. Gulf Coast. The energy company is a leading manufacturer and marketer of transportation fuels and petrochemicals, and thus is one of the biggest refining platforms in the United States.

Valero Energy’s refining capacity amounted to 2.7 mmbpd in Q1’25, with the majority of its capacity strategically located near the U.S. Gulf Coast. Other refining assets can be found in the U.S. Mid-Continent and the North Atlantic regions.

Petroleum and liquid fuel consumption is anticipated to rise in the next couple of decades, setting Valero Energy up was long-term tailwinds for profit growth. As refineries are processing fossil fuels, the sector could potentially also profit from a rollback of green energy subsidies under a Trump Administration.

We have already seen a number of American car companies scale back their electric-vehicle transition plans in light of moderating demand for high-cost EVs. Ford Motor (F), for instance, cut F-150 Lightning production targets last year as EV demand noticeably slowed.

Moreover, General Motors Corp. (GM) just a few days ago clarified that it was doubling down on the production of gas-powered cars in Michigan which is where the company sees stronger demand moving forward. Based on estimates from the U.S. Energy Information Administration, petroleum and liquid fuels consumption is poised to grow in the future, with growth coming mainly from the Middle East and from India.

Furthermore, U.S. refining capacity is already under pressure, specifically on the West Coast, as Phillips 66 (PSX) and Valero Energy have announced refinery closures in response to higher requirements for California-grade gasoline.

Valero Energy’s is highly profitable on a cash flow basis and has been so consistently for at least the last five years. As you can see below, Valero Energy’s operating cash flow spiked in 2022 to $13.7 billion was catalyzed by a post-pandemic demand surge and a strong economic recovery.

In 2024, Valero Energy produced $5.5 billion in operating cash flow and though the refiner suffered a 50% decrease in its operating cash flow YoY, it generated more than enough cash to finance its growing dividend.

In my view, the dividend is what makes Valero Energy appealing to passive income investors, and particularly the fast pace of the company’s pay-out growth.

The refining company paid out 78% of its adjusted net cash from operating activities in 2024 and an average of 70% between 2015 and 2024. The 2020 spike to 184% was driven by an exceptionally bad year for refining and upstream companies as demand for energy evaporated as economies shut down during Covid. Valero Energy is targeting to pay out 40-50% of its adjusted operating cash flow, at a minimum, across the business cycle.

Valero Energy’s refining business is highly profitable, setting the company up for a fast pace of share repurchase-driven cash returns. Between 2014 and 2024, Valero Energy repurchased 20.9 billion worth of its own shares in the market and substantially increased its dividend as well. On average, the refinery company repurchased a little more than $2.1 billion per-annum of its stock.

Consequently, Valero Energy has drastically lowered the amount of its available shares in the market (by 21%). Share repurchases increase the amount of future earnings attributable to investors and are one way for corporations to create value for investors, in addition to the payment of a growing dividend.

In my view, Valero Energy is primarily a ‘Buy’ for its future potential for dividend growth in a market that will continue to rely on fossil fuel-oriented refineries. In terms of growing its dividend, the refining company has done a solid job in the last thirteen years: the dividend has skyrocketed 595% since 2012 or an average of 16% growth per-annum.

VLO Vs. Other Refining Peers

Valero Energy is presently trading at a leading 2026e profit multiple of 14.6x with the refining company’s multiple reflecting 45% anticipated profit growth next year.

Though Valero Energy has the lowest anticipated profit growth rate in the refining peer group, and the second-highest Price-To-Earnings ratio after Marathon Petroleum Corp. (MPC), I think that the refining company has long-term earnings upside associated with growing needs for refining capacity.

Taking into account Valero Energy’s impressive share repurchases and dividend growth I think that I would be okay with paying a top-of-the-range multiple of 15.0x, partially because I want to own the stock for its dividend compounding potential. This leading profit multiple would lead us to an intrinsic value of $150.

With a yield of 3.1%, Valero Energy is only outmatched by Phillips 66 which offers passive income investors a yield of 3.8%. Since I want to add a refinery company to my portfolio for diversification and yield, and I am primarily looking to collect dividend income, I am initiating Valero Energy with a ‘Buy’ stock classification.

Valero Energy is growing, but the refinery may be subjected to considerable demand changes from one year to the other, as refining margins and prices ultimately depend on market prices for crude oil. Over the course of an entire business cycle, however, investors should not be affected by changes in earnings and cash flow.

Refinery shortages, particularly in California, could drive up the price for refining products, so refinery closures could ultimately end up improving the risk/reward relationship for refining companies with business in California.

My Takeaway

Valero Energy is a growing refining company with a broad asset footprint in the United States and abroad. Valero Energy is a particularly compelling investment, in my view, because it has a history of increasing its dividend and it spend a big amount of its excess cash flow on share repurchases (north of $20 billion in the last decade).

In my view, Valero Energy is a solid refinery stock to own if capturing a growing dividend is a primary concern for you.

Moreover, Valero Energy has made a commitment to minimum cash flow returns (40-50% of its operating cash flow) across the business cycle which should yield a handsome amount of buybacks each year, in addition to the dividend. Buy.

By: On the Pulse / Jul. 21, 2025

China refined the most crude oil in nearly two years in June, as plants returned from seasonal maintenance to seize on better margins for fuels like diesel.

Refining output rose to more than 15.2 million barrels a day, the strongest pace since September 2023, according to Bloomberg calculations based on figures released by the statistics bureau on Tuesday. Compared to June last year, volumes surged by 8.5%, reversing the declines seen in April and May.

Improved margins and fewer idled units supported robust refining activity, with further strength expected this month as new plants come online, said Amy Sun, an analyst with GL Consulting, a think tank affiliated with Mysteel OilChem.

Diesel cracks, a measure of profitability, at independent refiners rose to nearly $18 a barrel at one point late last month, the highest since 2023, according to data tracked by consultant JLC International. Run rates at state-owned refineries soared to nearly 84% of capacity at end-June, the highest in more than three months, JLC’s data showed.

The refinery output is in line with the rise in crude purchases reported for June, which hit their highest level since August 2023 on a daily basis, according to Bloomberg calculations. Imports are expected to accelerate as the country adds as much as 140 million barrels of oil to replenish its Strategic Petroleum Reserves from later this year, Energy Aspects said in a note.

By: July 15, 2025 – Bloomberg

 CB&I has been awarded a contract by VMOS S.A. to build storage tanks for Argentina’s Vaca Muerta Sur oil export terminal in Punta Colorada, Río Negro Province.

The contract covers engineering, procurement, fabrication, and construction (EPC) of storage capacity totaling 630,000 cubic meters (4 million barrels). The storage tanks will support the planned Vaca Muerta crude oil pipeline system, aimed at boosting Argentina’s oil exports to global markets.

The 437-kilometer (272-mile) Vaca Muerta Sur pipeline will transport oil from Argentina’s shale formation to the coastal export terminal. The project is led by VMOS, a midstream joint venture backed by state-owned YPF along with Pan American Energy, Vista Energy, and Pampa Energía.

CB&I participated in the project from the front-end engineering and design (FEED) phase through EPC execution, optimizing the design to reduce costs and accelerate the timeline.

“We are excited to be VMOS’s storage solutions partner for this critical export infrastructure project in Argentina,” said CB&I CEO Mark Butts. “CB&I brings industry-leading safety, quality, and project execution professionalism to every client we serve. We look forward to delivering on our commitments to YPF and the VMOS-associated project partners and shareholders.”

Construction is set to begin in the second quarter of 2025, with completion targeted for the fourth quarter of 2026. CB&I classifies the project as a “significant contract,” valued between $100 million and $250 million.

By: pgjonline – 7/15/2025.

In its Annual Energy Outlook 2025 (AEO2025), the U.S. Energy Information Administration (EIA) projects that U.S. production growth of crude oil and natural gas will remain relatively high through 2030 due to increasing U.S. exports of petroleum products and liquefied natural gas (LNG), as U.S. energy exports continue to be economical for international consumers.

AEO2025, which the EIA released in April, only considers market and policy inputs as of December 2024 in most cases. Legislation, regulations, executive actions and court rulings after that date are not considered in this analysis.

Crude oil. Crude oil production increases to about 14.0 MMbpd in 2027 or 2028 in most of our cases, compared with 13.2 MMbpd in 2024. Near-term growth in EIA projections is largely due to increased production in the Permian Basin. The long-term projections differ somewhat from its Short-Term Energy Outlook (STEO), which forecasts U.S. crude oil production will average 13.4 MMbpd in 2025 and a bit less in 2026, based on more recent market conditions. The EIA only makes forecasts through 2026 in its STEO.

Production will rise to almost 18.0 MMbpd in the early 2030s in the two cases that are most supportive of growth: the High Oil Price case, which assumes a higher Brent crude oil price, and the High Oil and Gas Supply case, which assumes higher ultimate recovery per well and lower drilling costs. Production decreases throughout the projection period in the Low Oil Price case and the Low Oil and Gas Supply case.

After 2030, crude oil production will begin to decline in most of the cases as domestic petroleum demand decreases. Declining well productivity—brought about in part because production per well decreases as wells are drilled closer together—makes drilling less profitable in some regions.

Natural gas. Dry natural gas production will increase to between 42.6 Tft³ and 44.3 Tft³ in the early 2030s in most of the EIA’s cases, compared with 38.4 Tft³ in 2024. In most cases, production remains relatively flat through 2050.

In the High Oil and Gas Supply case, crude oil production contributes to more natural gas production from the associated dissolved natural gas in shale resources; the assumptions also result in higher natural gas production per well. Conversely, in the Low Oil and Gas Supply case, low crude oil production contributes to less natural gas production as associated gas production declines.

Exports. Oil and natural gas production volumes support increasing exports of both petroleum products and natural gas in the EIA projections. Much of the crude oil produced in the United States is refined into petroleum products domestically and then exported.

The EIA projects the United States will remain a net exporter of petroleum products through 2050 in all cases as expected capacity expansions at export terminals allow refineries and natural gas processors to increase exports.

U.S. natural gas prices tend to be lower than global prices, making U.S. LNG attractive on the international market. Favorable economics for U.S.-supplied natural gas leads to LNG exports growing through 2040 in most of its cases. In the AEO2025 Reference case, LNG exports peak at 9.8 Tft³ in 2040, more than double the amount exported in 2024. The EIA made several key assumptions underpinning these projections:

Through 2028, all U.S. LNG export growth results from existing and under construction facilities announced as of June 2024.

The LNG export permitting pause issued in February 2024 is not included in the model. The pause was rescinded as of January 2025.

An annual maximum of 0.8 Tft³ of new U.S. LNG export capacity can be built between 2030 and 2050 if it is economical to do so.

Although the Henry Hub natural gas spot price increases after the mid-2030s, domestic LNG capacity growth is economical until around 2040, when the Henry Hub price becomes too high to support new export project builds. International demand for LNG supports U.S. natural gas production through 2050 across all cases. To continue meeting international demand, producers access less economical resources over time. As a result, the Henry Hub price rises steadily, increasing from $2.88 real 2024 dollars per million British thermal units (MMBtu) in 2025 to $4.80/MMBtu in 2050 in the Reference case. The rising production costs temper the growth in LNG exports over time.

By: hydrocarbonprocessing – 7/14/2025.

The manager of a Lincolnshire garage has said her business was still struggling to get fuel supplies two weeks after the Lindsey Oil Refinery filed for insolvency.

Lois Dant runs one of the three Gill Marsh Forecourts petrol stations in the county.

She said that the Ulceby Cross garage received no fuel for four days last week as the company they had a delivery contract with was owned by the refinery firm Prax.

Ms Dant said they were forced to pay more and get deliveries from other suppliers from as far away as Liverpool.

“Demand is high and it’s quite difficult to get some people who can deliver,” she said.

“With having no fuel available in a rural area we’ve had a quite a few customers running out of fuel on the forecourt.

“The nearest garage to us is half an hour away and they’ve had to call friends to drive to other garages with a fuel can.”

The refinery owned by Prax Group filed for insolvency on 29 June, putting 420 jobs at risk.

The government stepped in and said an agreement had been reached to keep the site at Immingham operating and resume deliveries.

Ms Dant said the shortages had also affected sales in the garage shops, with overall takings down 50%.

She called on the government to try and get another company to take over the refinery “so we are able to get another supplier and we can start selling fuel”.

By: Stuart Harratt / BBC News – 12/07/2025

Initiative will digitise movement of oil products from refineries to retail outlets
In its continuous drive towards digital transformation, the Oil and Gas Regulatory Authority (Ogra) has launched the second phase of its flagship initiative – digitising Pakistan’s oil supply chain.

Building on the successful deployment of an online licensing system and the first phase of digitisation, the oil and gas industry regulator has now initiated a comprehensive track and trace system in collaboration with the Punjab Information Technology Board. This phase is aimed at enhancing transparency, operational efficiency and safety across the country’s downstream oil sector.

Following the earlier launch of Raahguzar mobile application, developed in partnership with the Federal Board of Revenue and the Oil Companies Advisory Council, which allows consumers to locate licensed fuel stations through Geographic Information System (GIS) mapping, Ogra’s latest move expands the scope of digital oversight to the entire supply chain.

This phase will digitise end-to-end movement of petroleum products from refineries and import terminals to storage depots, tank-lorries and retail outlets. The new system integrates Enterprise Resource Planning (ERP) platforms, GPS tracking and centralised dashboards to ensure real-time monitoring, deter illegal decanting and smuggling, and support more effective enforcement.

Currently, over 29 oil marketing companies are operating with ERP systems and approximately 15,000 tank-lorries are already equipped with GPS tracking devices. These developments form a solid foundation for the nationwide rollout of the track and trace system.

“The initiative represents a major step towards a modern, transparent and secure oil supply chain in Pakistan,” said Masroor Khan, Chairman Ogra. “It reflects the commitment to leveraging technology for improved governance, public safety and consumer confidence.”

With this initiative, Ogra continues to position itself as a forward-looking regulator, driving digital innovation for national progress.

By: Tribune / July 10, 2025 .

Senior officials from three of OPEC’s core producer nations — Saudi Arabia, the United Arab Emirates, and Kuwait — lined up to say that the super-sized addition of supply by the producer club at the weekend was needed by the global market.

Oil prices eked out gains this week, a sign that the market has largely shrugged off the larger-than-expected output hike announced on Saturday by the Organization of the Petroleum Exporting Countries and allies. Despite the current tightness, forecasters are pointing out that supply growth is at risk of outpacing demand later in the year.

“You can see that even with the increase in several months, we haven’t seen a major buildup in the inventories, which means the market needed those barrels,” said Suhail Al Mazrouei, the United Arab Emirates energy minister, on the sidelines of a conference that the group is holding in Vienna. His comments were echoed by officials at the state oil companies of Saudi Arabia and Kuwait.

Signs of a tight market include crude oil stockpiles at the key US storage hub of Cushing, Oklahoma that are at their lowest seasonally since 2014, as well as a collapse in America’s diesel inventories. Timespreads point to tight supply-and-demand dynamics in the near term.

Bloomberg News hasn’t received accreditation to cover the OPEC seminar, despite multiple requests. No explanation has been giv

Saudi Aramco, which hiked its key oil prices for customers in Asia a day after the weekend meeting, sees “healthy global oil demand,” despite trade challenges, tariffs and their impact on the global economy, President and CEO Amin Nasser said at the OPEC Seminar in Vienna, according to a video posted on the X platform.

In April, OPEC+ announced — to the surprise of the market — the addition of 411,000 barrels a day of production to the global market, repeating the increase again in May and June. It went one step further on Saturday with a hike of 548,000 barrels a day.

On Thursday, OPEC Secretary General Haitham Al-Ghais told CNBC that the group sees ongoing signs of strong demand, driven by China and India as well as a “booming” aviation season and an uptick in US gasoline demand. He emphasized the importance of uninterrupted oil supply around the world, warning that conflicts in the Middle East and US sanctions threaten to undermine that.

Sheikh Nawaf Al-Sabah, chief executive officer of Kuwait Petroleum Corp., said Wednesday in a Bloomberg TV interview on the sidelines of the seminar that the market’s in good shape.

“We’re seeing some potential tightness in the market, which gives us an opportunity to capture market share in the future,”  he said.

Speaking with Bloomberg TV on Thursday, the Republic of Congo’s Minister of Hydrocarbons Bruno Jean-Richard Itoua said it was premature to reveal the group’s next move, but if the data show a need to add further barrels in September, they’ll do it.  

“You know OPEC and OPEC+, what we want isn’t to increase prices or decrease prices — we’re not playing games,” he said. “We want the best stability for the market.”

Still, Patrick Pouyanne, chief executive officer of French oil major TotalEnergies SE, said the lack of a bigger price rally during Israel’s recent conflict with Iran was suggestive of a market that’s got enough supply. 

“The market’s well supplied, by the way,” he said according to a video of his remarks posted on X. “Honestly, I was a bit surprised” by how little the market gained.

Still, the fate of the market beyond summer, when demand typically rises, is less certain.

“Right now, if you look out the window, the market is pretty tight,” Bob McNally, president and founder of Rapidan Energy Group and a former White House energy official, said in Vienna, adding that his assessment is that supply should start to outpace demand later this quarter when refineries will process less crude and the extra barrels will start to materialize.

—With assistance from Ben Bartenstein, Salma El Wardany and Nayla Razzouk.

(Updates with comments from OPEC Secretary General and the Republic of Congo oil minister beginning in eighth paragraph.)

By: Bloomberg News /  Jul 09, 2025

Chevron is preparing for a quick finalization of the Hess Crop. Acquisition, even as the two still await the decision of the arbitration court on Exxon’s right to first refusal on Hess’s stake in the Stabroek Block in Guyana.

Reuters reported the news, citing unnamed sources and “an industry analyst”, who said that Chevron was even working on severance packages for some Hess employees who would be let go after the tie-up.

Yet for that to happen, the International Chamber of Commerce needs to rule in Chevron’s favor. The dispute that the ICC ruled on earlier this month but has yet to make its decision public, concerns the Guyanese operations of Exxon, in which Hess Corp. is a minority partner with 30%. It is this 30 stake that Chevron is especially interested in, but, it turns out, so is Exxon.

Chevron announced its plans to acquire Hess for some $53 billion in late 2023. Yet the megadeal ran into an obstacle when Exxon said it had right of first refusal to Hess’s stake in the Stabroek Block. Hess and Chevron countered that such a clause would only be valid in a stake acquisition situation, while the two had a company acquisition situation. CNOOC, the third partner in Guyana, sided with Exxon.

The Stabroek Block has so far yielded estimated resources of some 11 billion barrels and there’s likely to be more. Production has been growing quickly and steadily, too, at around 660,000 bpd currently. Plans are to raise this to 1.3 million barrels daily by 2030.

Meanwhile, Chevron is buying Hess stock. The company was recently reported to have accumulated a stake of 5% in the target company, with the price tag at $2.3 billion. At the same time, the supermajor has appointed a team to take care of the integration of Hess’ operations into the larger entity once the deal s finalized, signaling it is confident the arbitration court will announce a favorable decision.

By: Oil Price / July 08, 2025.