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…
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Seven Key Oil, Natural Gas Producing Regions Set to Lower Output in November, Says EIA
Despite anticipated increases in productivity per rig across seven key U.S. producing regions, overall oil and gas output from these areas is expected to fall across the board from October to November, according to updated numbers released Tuesday by the Energy Information Administration (EIA). The agency’s latest Drilling Productivity Report (DPR) projects that total natural…
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”…
Permian Output Seen Ramping Up in 2021
Production in the Permian Basin will likely decline through the year but then begin to increase through at least 2026, even if prices do not rise significantly, according to analysts. “We see the Permian as a relative winner among domestic basins given favorable production economics, independent of a call on higher commodity prices,” the Morgan…
Winter Natural Gas Prices Seen Rising into 2021 on Market’s Resilience Despite Pandemic
Shrinking production, growing exports and somewhat colder weather should see this winter’s natural gas prices trend upward compared with last winter, even as the Covid-19 pandemic threatens to hinder demand, according to new projections from the Natural Gas Supply Association (NGSA). Total exports, both by way of liquefied natural gas (LNG) terminals and via pipeline…
OPEC Reduces Oil Demand Forecast into 2021 from Covid-19’s Lingering Impacts
The Covid-19 pandemic’s crushing impact to energy demand and prices has led the Organization of the Petroleum Exporting Countries, aka OPEC, to again reduce its forecast for oil into 2020. The International Energy Agency (IEA) on Tuesday also reduced for the second consecutive month its outlook for oil demand. IEA also warned that Covid-19 may…
Slumping Natural Gas Production Forecast Across Lower 48 into October, Except in Permian
The Permian Basin is the only one of the seven major producing areas of the Lower 48 forecast to see an increase in natural gas and oil output in October month/month, according to a forecast by the Energy Information Administration. In the monthly Drilling Productivity Report (DPR) issued on Monday, EIA researchers estimated that overall,…
Global Natural Gas Looks Strong but Facing Challenges from Renewables, Hydrogen, Says BP
A “pronounced shift” to renewables, combined with a shift to electricity and hydrogen, led BP plc to reduce its annual forecast for global natural gas as a primary energy source. The annual Energy Outlook was introduced on Monday by chief economist Spencer Dale during a webcast. The economics team led by Spencer Dale used Rapid,…
Global Oil Demand Seen Leveling Off at 92-95 Million b/d Until Pandemic Contained
Although global oil demand has come roaring back to about 89% of pre-coronavirus levels, it is expected to plateau around 92-95 million b/d, or 92-95% of pre-Covid levels through the first quarter of 2021, according to a new analysis by IHS Markit. “The meteoric rise of world oil demand from the lowest lows of the…
EIA Says U.S. Ethane Production to Grow at Steady Clip Through 2021
A rebound in demand for ethane as a key feedstock for petrochemical manufacturing should fuel production growth through 2021, according to the Energy Information Administration (EIA). EIA forecasted in its August Short-Term Energy Outlook that ethane production would exceed 2 million b/d by the fourth quarter. That would mark a 9% increase from the start…