EIA - CRUDE OIL PRICES TO AVERAGE NEAR $50 PER BARREL TROUGH 2022

In its January Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) expects global demand for petroleum liquids will be greater than global supply in 2021, especially during the first quarter, leading to inventory draws. As a result, EIA expects the price of Brent crude oil to increase from its December 2020 average of $50 per barrel (b) to an average of $56/b in the first quarter of 2021. The Brent price is then expected to average between $51/b and $54/b on a quarterly basis through 2022.
EIA expects that growth in crude oil production from members of the Organization of the Petroleum Exporting Countries (OPEC) and partner countries (OPEC+) will be limited because of a multilateral agreement to limit production. Saudi Arabia announced that it would voluntarily cut production by an additional 1.0 million b/d during February and March. Even with this cut, EIA expects OPEC to produce more oil than it did last year, forecasting that crude oil production from OPEC will average 27.2 million b/d in 2021, up from an estimated 25.6 million b/d in 2020.
EIA forecasts that U.S. crude oil production in the Lower 48 states—excluding the Gulf of Mexico—will decline in the first quarter of 2021 before increasing through the end of 2022. In 2021, EIA expects crude oil production in this region will average 8.9 million b/d and total U.S. crude oil production will average 11.1 million b/d, which is less than 2020 production.
EIA expects that responses to the recent rise in COVID-19 cases will continue to limit global oil demand in the first half of 2021. Based on global macroeconomic forecasts from Oxford Economics, however, EIA forecasts that global gross domestic product will grow by 5.4% in 2021 and by 4.3% in 2022, leading to energy consumption growth. EIA forecasts that global consumption of liquid fuels will average 97.8 million barrels per day (b/d) in 2021 and 101.1 million b/d in 2022, only slightly less than the 2019 average of 101.2 million b/d.
EIA expects global inventory draws will contribute to forecast rising crude oil prices in the first quarter of 2021. Despite rising forecast crude oil prices in early 2021, EIA expects upward price pressure will be limited through the forecast period because of high global oil inventory, surplus crude oil production capacity, and stock draws decreasing after the first quarter of 2021. EIA forecasts Brent crude oil prices will average $53/b in both 2021 and 2022.
(Source: EIA)

GAS FLARED IN THE PERMIAN BASIN AT ITS LOWEST LEVEL OF THE SHALE ERA

January 15, 2021

The share of gross gas output that is flared at the wellhead in the US’ prolific Permian Basin has plummeted to a modern Shale-era record low, a...

Read More+
BW ENERGY INCREASES INTERESTS IN KUDU LICENSE OFFSHORE NAMIBIA

January 15, 2021

BW Kudu Limited, a wholly owned subsidiary of BW Energy Limited and the National Petroleum Corporation of Namibia (NAMCOR) have signed a Farm-In and...

Read More+
TOTAL AND ENGIE TO BUILD MASSHYLIA RENEWABLE HYDROGEN FACILITY IN SOUTHEASTERN FRANCE

January 15, 2021

Total and Engie have signed a cooperation agreement to design, develop, build and operate the Masshylia project, France's largest renewable hydrogen...

Read More+
EQUINOR AWARDED LARGE US OFFSHORE WIND CONTRACT

January 15, 2021

Equinor was selected to provide New York State with offshore wind power in one of the largest renewable energy procurements in the U.S. to date.Under...

Read More+
TGS BEGINS ACQUISITION OF ESPIRITO SANTO 3D SURVEY OFFSHORE BRAZIL

January 15, 2021

TGS, a leading provider of multi-client geoscience data for exploration & production (E&P) companies, announced the commencement of the Espirito...

Read More+
TOTAL AND APACHE ANNOUNCE FOURTH DISCOVERY OFFSHORE SURINAME

January 14, 2021

Total and Apache Corporation have made a new significant oil and gas discovery at the Keskesi East-1 well, in Block 58 off the coast of Suriname. This...

Read More+
MAERSK DRILLING AWARDED ONE-WELL UK CONTRACT FOR MAERSK RESOLVE

January 14, 2021

Maersk Drilling has been awarded a contract from Spirit Energy for the harsh-environment jack-up rig Maersk Resolve to drill one development well at...

Read More+
WINTERSHALL NOORDZEE PROCUCES FIRST GAS FROM SILLIMANITE SOUTH FIELD

January 14, 2021

Wintershall Noordzee B.V. has started up the production of the D12-B3 well, the Sillimanite South field discovery well. This gas field was discovered...

Read More+
LNG-FUELLED CONTAINERSHIP CMA CGM RIVOLI NAMED AT CSSC SHIPYRAD IN CHINA

January 14, 2021

CMA CGM officially named a new LNG-fuelled containership, CMA CGM Rivoli at China State Shipbuilding Corporation (CSSC) in China. The ship is also...

Read More+
PHILIPPINES – QATARGAS PERFORMS FIRST SHIP-TO-SHIP LNG TRANSFER AT SUBIC BAY

January 13, 2021

Qatargas Operating Company Limited (Qatargas) announced the completion of the first-ever commercial ship-to-ship (STS) transfer of a liquefied natural...

Read More+
TAIWANS’S CPC RECEIVES FIRST LNG CARGO FROM CHENIERE AT TAICHUNG IMPORT TERMINAL

January 13, 2021

The USA has become a major LNG exporter with the ramp up of Cheniere's Sabine Pass terminal in Louisiana.CPC, state-owned petroleum and natural gas...

Read More+
BRAZIL – OCYAN AWARDED CONTRACT FROM PETROBRAS FOR NORBE VIII

January 12, 2021

The Brazilian state company Petrobras, on behalf of the Libra Consortium, has hired the Ocyan drillship Norbe VIII for drilling operations at the Mero...

Read More+