Column: U.S. shale supply chain will emerge smaller from price war, pandemic - Kemp - Reuters:
Slumping oil and gas prices as a result of the pandemic and the volume war earlier in the year between Saudi Arabia and Russia have slashed employment in the U.S. oil and gas fields at some of the fastest rates on record.
Oil and gas-related employment is split across several different categories in the federal government’s statistical system, making it hard to track changes in total oilfield and gasfield employment.
But one of the largest and most visible categories is “support activities for oil and gas operations”, covering a wide range of ancillary activities from exploration, site works, casing and tubing to cementing, fracking and acidizing.
Total employment at support firms fell by 54,000 jobs (20%) in just three months between February and May, according to the U.S. Bureau of Labor Statistics (“Current employment statistics”, July 2).
Friday, 31 July 2020
OPEC July oil output surges as Gulf voluntary cuts end: survey - Reuters
OPEC July oil output surges as Gulf voluntary cuts end: survey - Reuters:
OPEC oil output has risen by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance.
The 13-member Organization of the Petroleum Exporting Countries pumped 23.32 million bpd on average in June, the survey found, up 970,000 bpd from June’s revised figure, which was the lowest since 1991.
OPEC and allies agreed in April to a record output cut as the coronavirus crisis hammered demand.
An easing of lockdowns and lower supply have helped oil LCOc1 climb above $40 from April’s 21-year low of below $16 a barrel, although concerns of a second wave are keeping a lid on gains.
OPEC oil output has risen by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance.
The 13-member Organization of the Petroleum Exporting Countries pumped 23.32 million bpd on average in June, the survey found, up 970,000 bpd from June’s revised figure, which was the lowest since 1991.
OPEC and allies agreed in April to a record output cut as the coronavirus crisis hammered demand.
An easing of lockdowns and lower supply have helped oil LCOc1 climb above $40 from April’s 21-year low of below $16 a barrel, although concerns of a second wave are keeping a lid on gains.
Oil posts monthly gains as U.S. reports record output cuts in May - Reuters
Oil posts monthly gains as U.S. reports record output cuts in May - Reuters:
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record.
Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping 3.3% in the previous session, also off lows not seen since July 10.
Brent crude posted a fourth month of gains and U.S. crude posted a third as both rise from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.
U.S. crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record.
Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping 3.3% in the previous session, also off lows not seen since July 10.
Brent crude posted a fourth month of gains and U.S. crude posted a third as both rise from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.
U.S. crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Airlines Take Hit as IAG Seeks to Raise Capital, KLM Cuts Jobs - Bloomberg
Airlines Take Hit as IAG Seeks to Raise Capital, KLM Cuts Jobs - Bloomberg:
Two of Europe’s biggest airlines ratcheted up their response to the coronavirus crisis, underscoring the depth of the downturn and the urgent race to keep ahead of the financial repercussions.
British Airways owner IAG SA set plans for 2.75 billion-euro ($3.3 billion) rights offering, while rival Air France-KLM’s Dutch arm said it would lop off 15% of its workforce and said will also resort to raising fresh equity. Both reported record quarterly losses on Friday, a measure of the strain on network carriers that have seen an unprecedented drop-off in traffic and still face months of pain.
“Anybody who believes this is a temporary crisis and thinks it can be resolved by temporary measures is misguided,” Willie Walsh, IAG’s outgoing chief executive officer, said on a conference call.
Shares of IAG traded 7.9% lower as of 11:43 a.m. in London, bringing the year-to-date loss to 73%. Air France-KLM was down 1.7% after announcing 5,000 job cuts, and has slumped 65% for the year.
Two of Europe’s biggest airlines ratcheted up their response to the coronavirus crisis, underscoring the depth of the downturn and the urgent race to keep ahead of the financial repercussions.
British Airways owner IAG SA set plans for 2.75 billion-euro ($3.3 billion) rights offering, while rival Air France-KLM’s Dutch arm said it would lop off 15% of its workforce and said will also resort to raising fresh equity. Both reported record quarterly losses on Friday, a measure of the strain on network carriers that have seen an unprecedented drop-off in traffic and still face months of pain.
“Anybody who believes this is a temporary crisis and thinks it can be resolved by temporary measures is misguided,” Willie Walsh, IAG’s outgoing chief executive officer, said on a conference call.
Shares of IAG traded 7.9% lower as of 11:43 a.m. in London, bringing the year-to-date loss to 73%. Air France-KLM was down 1.7% after announcing 5,000 job cuts, and has slumped 65% for the year.
Oil set for fragile recovery as economies limp towards normal: Reuters poll - Reuters
Oil set for fragile recovery as economies limp towards normal: Reuters poll - Reuters:
Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoy demand, although a second COVID-19 wave could slow the pace of recovery, a Reuters poll showed on Friday.
The survey of 43 analysts and economists forecast benchmark Brent crude LCOc1 to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month’s survey and compared with around $42 average for the benchmark thus far this year. It is expected to average $49.85 in 2021.
The 2020 outlook for West Texas Intermediate CLc1 rose to $37.51 per barrel from June’s $36.10.
Oil is “caught-up in a step-wise re-balancing process” with the “pieces moving in the right direction” on the supply side, said Harry Tchilinguirian, head of commodity research at BNP Paribas.
Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoy demand, although a second COVID-19 wave could slow the pace of recovery, a Reuters poll showed on Friday.
The survey of 43 analysts and economists forecast benchmark Brent crude LCOc1 to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month’s survey and compared with around $42 average for the benchmark thus far this year. It is expected to average $49.85 in 2021.
The 2020 outlook for West Texas Intermediate CLc1 rose to $37.51 per barrel from June’s $36.10.
Gold is king but should you buy it? | Charts That Count - YouTube
Gold is king but should you buy it? | Charts That Count - YouTube:
https://youtu.be/7NmPNuZmWHE
Gold is king in times of crisis, and is seen as a safe haven for investors. However, as the FT's Robert Armstrong explains, it is also traditionally associated with fear, hoarding and inflation, and betting on gold is a bet against history.
https://youtu.be/7NmPNuZmWHE
Gold is king in times of crisis, and is seen as a safe haven for investors. However, as the FT's Robert Armstrong explains, it is also traditionally associated with fear, hoarding and inflation, and betting on gold is a bet against history.
China Oil Giant CNPC Said to Eye BP Stake in #Oman Gas Field - Bloomberg
China Oil Giant CNPC Said to Eye BP Stake in Oman Gas Field - Bloomberg:
China National Petroleum Corp. is in talks to acquire part of BP Plc’s stake in a key gas field in Oman, according to people familiar with the matter.
China’s state-owned oil giant is having advanced discussions with BP for a 10% stake in the Khazzan natural gas field, the people said. The minority stake could fetch about $1.5 billion, said the people, asking not to be identified as the matter is private.
No final decisions have been made and others have also expressed interest in the asset, the people said. Representatives for BP and CNPC declined to comment.
BP was in early talks to sell about a 10% stake in the Khazzan natural gas field, Bloomberg News reported in June. The oil major owns a 60% stake in the project, while its partner Oman Oil Co. still has a 30% stake after it sold a 10% holding to Malaysia’s state oil company in 2018.
China National Petroleum Corp. is in talks to acquire part of BP Plc’s stake in a key gas field in Oman, according to people familiar with the matter.
China’s state-owned oil giant is having advanced discussions with BP for a 10% stake in the Khazzan natural gas field, the people said. The minority stake could fetch about $1.5 billion, said the people, asking not to be identified as the matter is private.
No final decisions have been made and others have also expressed interest in the asset, the people said. Representatives for BP and CNPC declined to comment.
BP was in early talks to sell about a 10% stake in the Khazzan natural gas field, Bloomberg News reported in June. The oil major owns a 60% stake in the project, while its partner Oman Oil Co. still has a 30% stake after it sold a 10% holding to Malaysia’s state oil company in 2018.
Oil rises further from three-week lows, but headwinds loom - Reuters
Oil rises further from three-week lows, but headwinds loom - Reuters:
Oil prices rose on Friday, after touching three-week lows in the previous session, responding to a record decline in U.S. growth as the coronavirus ravaged the world’s biggest economy and oil consumer.
Brent crude was up by 41 cents, or 1%, at $43.35 a barrel by 0702 GMT. On Thursday, Brent closed down 1.9% after touching its lowest level since July 10.
U.S. crude gained 43 cents, or 1.1%, to $40.35 after dropping 3.3% the previous session, also off lows not seen since July 10.
Brent is on track for a fourth month of gains, while U.S. crude is heading for a third, as both rise from depths hit in April when much of the world was in lockdown.
Oil prices rose on Friday, after touching three-week lows in the previous session, responding to a record decline in U.S. growth as the coronavirus ravaged the world’s biggest economy and oil consumer.
Brent crude was up by 41 cents, or 1%, at $43.35 a barrel by 0702 GMT. On Thursday, Brent closed down 1.9% after touching its lowest level since July 10.
U.S. crude gained 43 cents, or 1.1%, to $40.35 after dropping 3.3% the previous session, also off lows not seen since July 10.
Brent is on track for a fourth month of gains, while U.S. crude is heading for a third, as both rise from depths hit in April when much of the world was in lockdown.