...Continua

Further challenges arose in January of the current year when equipment shutdowns occurred following a winter storm due to motor issues. However, Smith affirmed plans for full operation resumption by the night of March 20-21, with concurrent shutdowns of two other lines for inspection and similar maintenance work.

Anticipated outcomes of the overhaul include a production increase equivalent to approximately one liquefaction line, alongside a rise in the facility's raw gas demand from 2.2 Bcf/d to 2.5 Bcf/d when all three lines are operational, according to Smith.

This additional production will augment Freeport's total unconstrained supply to about 3 million tons annually, intended for sale on a spot basis. Smith expressed optimism regarding the LNG market, citing persisting challenges in Europe due to limited supply and indicating potential for robust profitability in the foreseeable future.

Noteworthy long-term buyers of Freeport LNG's output include BP, South Korea's SK Group, Japanese utilities JERA and Osaka Gas, and France's TotalEnergies.

????Shell Continues Commitment to NOVATEK Partnership

Shell, the British multinational energy company, reaffirms its enduring collaboration with Russia's NOVATEK, as indicated in its latest financial report. Maintaining a stake of 27.5 percent in Sakhalin Energy Investment, Shell remains dedicated to its long-standing contract for LNG procurement from NOVATEK. Despite the transfer of management of Sakhalin Energy to a new Russian operator appointed by the president in 2022, key Japanese stakeholders Mitsui & Co. and Mitsubishi remain involved in the project. The agreement between Shell and Sakhalin Energy to supply up to 1 million tons of LNG annually, valid until 2028, underscores the sustained partnership. Notably, the project achieved a milestone in 2023, exporting over 10 million tons of LNG.

#Shell #LNG

????Study Finds Israeli Military Fuel Sourced from Global Oil Giants

According to a study commissioned by the non-profit organization Oil Change International, Israeli planes and tanks involved in conflicts with Palestinians are fueled by resources sourced from the world's leading raw material producers.

The fuel is specifically imported from Azerbaijan, Kazakhstan, Brazil, Gabon, and the US, with major supply companies such as BP, Chevron, ExxonMobil, Shell, and TotalEnergies identified as key providers. Moreover, data from the report reveals that since October 2023, over 600,000 tons of Kazakh crude has been transported to Israel through the Caspian Pipeline Consortium (CPC) pipeline.

The fuel mixture comprises crude extracted from vast offshore fields in the Caspian Sea as reported by The Guardian.

#Istael #Palestine #fuel

??Saudi Aramco and Adnoc's Strategic Move: Targeting Lithium Extraction

National oil giants in Saudi Arabia and the UAE are embarking on a significant initiative to extract lithium from brine within their oil fields. This initiative is part of their broader strategy to diversify their economies and seize opportunities presented by the increasing adoption of electric vehicles (EVs).

Several prominent oil companies, including Exxon Mobil and Occidental Petroleum, are also gearing up to leverage innovative technologies for extracting lithium from brine.

Saudi Arabia, historically reliant on oil, has allocated substantial investments to position itself as a hub for electric vehicles, aligning with the ambitions of Saudi Crown Prince Mohammed bin Salman to explore alternative sources of wealth, as reported by Reuters.

Drawing upon their expertise in treating oil brines and wastewater at oil production facilities, Saudi Arabia and the UAE are set to employ direct lithium extraction (DLE) technology.

????Guyana's Record Oil Exports to Europe Dent Norway's Market

Record-breaking shipments of crude oil from conflict-ridden Guyana to Europe are exacerbating pressure on Norway's Johan Sverdrup crude, causing the value of Norwegian crude to plummet to a 14-month low. According to Kpler, Guyana's crude oil exports to Europe have surged to an all-time high of 432,000 barrels per day (bpd).

The significant increase in crude exports from the South American nation is fueled by a fresh influx of Payara Gold, which closely matches the quality of Johan Sverdrup and serves as a viable alternative for European refineries, particularly when price disparities make the lengthy transatlantic voyage profitable.

Last year, the price of Johan Sverdrup experienced a substantial surge, reaching a "multi-dollar premium" compared to the benchmark Brent, as reported by Reuters, primarily due to shipping disruptions in the Red Sea that threatened the supply of high-sulfur crude from the Middle East to Europe.

?Impending Oil Crisis: How Long Until Brent Oil Prices Surge?

Amidst dwindling reserves and logistical challenges, the stability of Brent oil prices hangs precariously. Currently, oil reserves in developed countries, including the U.S., Canada, Japan, etc., seem promising. However, delays in deliveries from the Middle East to Europe have led to a surplus of oil at sea and a scarcity on land.

Escalating freight costs and prolonged voyages to Europe have prompted oil traders to reroute cargoes to Asia-Pacific nations. Compounding the issue, there are disruptions in finished fuel supply chains: Indian refiners are shying away from EU markets, Russia has halted gasoline exports, and American refineries grapple with maintenance and accidents.

Despite the appearance of price stability, the European fuel market teeters on the brink of collapse, with the situation growing increasingly dire by the day.

#oil #prices