Coronavirus

Citing Resurgent Pandemic, OPEC Scales Back Oil Demand Forecast

Citing Resurgent Pandemic, OPEC Scales Back Oil Demand Forecast

Surging coronavirus cases in the Americas and Europe necessitated an additional cut to the Organization of the Petroleum Exporting Countries’ (OPEC) closely watched forecasts for oil demand. OPEC said Wednesday it now expects full-year 2020 global oil demand to decline by 9.8 million b/d, or 10%, from a year earlier. That marked a downward revision…

November 11, 2020
U.S. OFS Sector Records Two Consecutive Months of Job Gains, but Future Still Uncertain

U.S. OFS Sector Records Two Consecutive Months of Job Gains, but Future Still Uncertain

Employment in the U.S. oilfield services (OFS) and equipment sector rose in October for the second consecutive month, after sustaining massive losses of more than 90,000 jobs earlier this year because of Covid-19, the Petroleum Equipment & Services Association (PESA) said Monday. Despite the recent uptick in jobs, the Houston-based trade association cautioned that the…

November 9, 2020
Black Hills Sees Natural Gas Continuing as Long-Term Choice for Customers

Black Hills Sees Natural Gas Continuing as Long-Term Choice for Customers

Natural gas is a long-term player and not a transitional fuel for the eight states in which Rapid City, SD-based Black Hills Corp. operates, CEO Linn Evans said Tuesday. During a 3Q2020 earnings call, Evans said he was not expecting any local lockdowns in the utility service areas, with the worst of the Covid-19 impacts…

November 4, 2020
December Natural Gas Futures Sink on Mild Weather Forecasts

December Natural Gas Futures Sink on Mild Weather Forecasts

Natural gas futures on Monday dropped as mid-range weather worries overshadowed continued strong liquefied natural gas (LNG) levels. The December Nymex contract shed 11.0 cents day/day and settled at $3.244/MMBtu. January lost 9.4 cents to $3.375. Spot gas prices, meanwhile, dipped lower despite a chilly start to the week. NGI’s Spot Gas National Avg. fell…

November 2, 2020
U.S. Oil Demand, Production Continue Choppy Runs, EIA Data Show

U.S. Oil Demand, Production Continue Choppy Runs, EIA Data Show

Demand for domestic oil rebounded last week, as gasoline and jet fuel use jumped, the U.S. Energy Information Administration (EIA) said in its latest Weekly Petroleum Status Report (WPSR). EIA said for the week ending Oct. 23 demand increased 8% week/week, recovering from a decline the previous week and extending a run of choppy results…

October 29, 2020
Alberta E&P Taxes to Decline on Government Response to Covid-19

Alberta E&P Taxes to Decline on Government Response to Covid-19

Alberta natural gas and oil producers predict their annual taxes will drop by C$85 million ($64 million) thanks to provincial and municipal reductions announced Monday as a response to the Covid-19 andemic. The relief program for exploration and production (E&P) companies cuts levies on wells, drilling equipment, pipelines and industrial property for three years. While…

October 20, 2020
U.S. Oil Inventories Decline Further, but Coronavirus Threats Lurk

U.S. Oil Inventories Decline Further, but Coronavirus Threats Lurk

Demand for petroleum products mounted early in October, cutting into U.S. inventories of crude and refined products, but a resurgence of the coronavirus pandemic across swaths of the Lower 48 and Europe threaten to thwart the trend and weigh down oil prices. Demand for fuel derived from oil was crushed earlier this year by the…

October 16, 2020
Raymond James Says Natural Gas to Jump in 2021, Boosted by Production Cuts

Raymond James Says Natural Gas to Jump in 2021, Boosted by Production Cuts

The extensive oil production declines amid the coronavirus pandemic’s fallout cut deep enough into associated gas supplies to likely help drive up Henry Hub natural gas prices in 2021, according to Raymond James & Associates. “The 2020 oil crash is still likely to drive a massive imbalance in U.S. gas supplies in 2021,” Raymond James…

October 15, 2020
U.S. Home-Bound Workforce Sharply Impacting Transportation Fuel Outlook, Says OPEC

U.S. Home-Bound Workforce Sharply Impacting Transportation Fuel Outlook, Says OPEC

Energy demand contraction triggered by Covid-19 lockdown measures has drastically reduced U.S. fuel consumption, but a cold winter could boost heating oil consumption as more people continue to work from home, the Organization of the Petroleum Exporting Countries (OPEC) said Tuesday. The oil cartel issued its global winter forecast in the latest Monthly Oil Market…

October 13, 2020
Lower 48 Tight Oil Output to Recover, but Possibly Not As Strong Pre-Covid, Says OPEC

Lower 48 Tight Oil Output to Recover, but Possibly Not As Strong Pre-Covid, Says OPEC

U.S. tight oil production should recover quickly as world energy demand recovers from Covid-19, but Lower 48 output may not again hit its previous forecasts, the Organization of the Petroleum Exporting Countries said Thursday. The Saudi-led oil cartel, aka OPEC, in its flagship 14th annual World Oil Outlook (WOO), cited the “unprecedented scale and impact”…

October 8, 2020