Tag: oil and gas

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.

Saudi Aramco will be selling its crude to all buyers next month, even as OPEC+ agreed to boost supply by more than what analysts expected.Kpler’s Amena Bakr published the new Aramco price list on X, showing that the biggest price hike will hit buyers of Saudi crude in Europe. The hike across crude blends is $1.40 per barrel from July.

Asian buyers will have to pay between $0.90 and $1.30 more per barrel of Saudi crude next month, while buyers in North America will enjoy the most modest price hike, by between $0.20 and $0.40 per barrel.Summer is peak fuel demand in the northern hemisphere and analysts expected Aramco to hike its oil prices whatever OPEC+ decided at its latest meeting. What OPEC+ decided at that meeting was to add 548,000 barrels daily to its output, prompting a price drop in oil when markets opened today.

At the time of writing, Brent crude was trading at $67.88 per barrel, with West Texas Intermediate at $66.14 per barrel, both slightly down from Friday’s close.

The latest output hike should result in the return of 80% of the total cuts—at 2.2 million bpd—agreed back in 2022, according to RBC Capital Markets’ Helima Croft. However, Reuters noted in a report on the news that actual production growth among the eight OPEC+ members that were cutting supply has been slower than agreed, and most of it has come from the biggest cutter, Saudi Arabia.

Goldman Sachs, meanwhile, was quick to predict another oversized OPEC+ output hike in September, at 500,000 barrels daily. The bank issued the prediction on Sunday, saying “Saturday’s announcement to accelerate supply hikes increases our confidence that the shift, which we started flagging last summer, to a more long-run equilibrium focused on normalizing spare capacity and market share, supporting internal cohesion, and strategically disciplining US shale supply, is continuing.”

By Irina Slav, Oilprice.com – Jul 07, 2025

The Hong Kong and China Gas Company Limited (Towngas) (HKEX: 00003) and Royal Vopak have entered a strategic partnership to jointly develop a green methanol supply chain aimed at accelerating shipping decarbonization across mainland China, Hong Kong, and the broader Asia-Pacific region.

Under the new framework agreement, the two companies will combine their strengths to scale up green methanol production, storage, bunkering, and trading. Towngas brings its proprietary technology for converting agricultural and forestry waste, as well as scrap tyres, into certified green methanol. The company already supplies the maritime sector and has achieved multiple international sustainability certifications, including ISCC EU and ISCC PLUS. Meanwhile, Royal Vopak will contribute its extensive coastal terminal infrastructure and logistics network across China to enable efficient storage and distribution.

The partnership targets key shipping hubs, including Hong Kong, Shenzhen, Guangzhou, Shanghai, Ningbo, and Tianjin, creating an integrated supply chain that links green methanol production centers with bunkering and storage facilities at major ports. The collaboration also plans to expand supply to regional markets such as Singapore, Vietnam, Japan, and South Korea.

Towngas recently completed Asia’s largest green methanol bunkering project, delivering 6,000 tonnes through Royal Vopak’s Tianjin terminal. The company’s Inner Mongolia plant is expected to increase annual capacity from 100,000 tonnes to 150,000 tonnes by year-end, with plans to reach 300,000 tonnes by 2028. Towngas ultimately aims to scale to one million tonnes per year with additional plants across China.

This alliance strengthens both companies’ positions in the growing market for sustainable marine fuels, as shipping faces increasing pressure to decarbonize under international regulations. The Asia-Pacific region, home to several of the world’s busiest ports, is emerging as a critical arena for green fuel infrastructure development.

Royal Vopak, with its 3.5 million cubic metres of storage capacity across nine Chinese coastal provinces, continues to position itself as a key enabler in the energy transition, supporting new fuels such as ammonia, CO?, and sustainable feedstocks.

By: Editorial Dept, Oilprice.com – Jul 07, 2025.

The Official Receiver has secured an agreement with Glencore  to continue supplying crude oil to the Lindsey oil refinery in Lincolnshire, according to Sky News editor Mark Kleinman on Friday.

The deal was reached overnight and ensures ongoing operations at the refinery, which was a subsidiary of Prax Group, he posted on social media platform X.

Several parts of Prax Group entered insolvency proceedings earlier this week.

The Lincolnshire facility will continue to receive crude oil from the commodities giant Glencore under the new arrangement, maintaining the supply chain for the refinery during this period of corporate restructuring.

By: Investing , Maria Ponnezhath / 07/04/2025.