Oil & Energy

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BP continues to broaden it's exposure to natural gas. Wednesday Bp annnounced they will adding six new LNG tankers for more than $1 billion to add to its existing fleet in 2018 and 2019. The tankers will be used to service the Freeport LNG facility among other global destinations.

Our post Harvey TCOIL preview for this week's EIA DOE Weekly Petroleum Status Report highlights the key variables to watch out for. Crude oil markets are watching for products and production after the hurricanes with the all important import export trade.

U.S. oil rigs rose again this week with WTI oil back over $52. Rigs had fallen the past three with maintainence and Harvey disruptions. On a monthly basis it is down by 9 in September, after declining 7 in August. U.S. drillers added six oil rigs in the week to Sept. 29 General Electric Co’s Baker Hughes reported. 

Natural gas futures have chopped around $3.00 Btu for months now as bullish weather demand never eventuated, hurricanes had little effect and production and exports appear to balance out. Where to now? We look at what is going technically and how that fits in fundamentally.

The EIA releases it's weekly natural gas storage report each Thursday at 10.30 ET, the key data point for natural gas traders outside of weather modelling. This week another build is expected.

Canadian energy firm Encana $ECA is ramping up it's new Tower processing plant, part of their condensate-focused growth plan, opened ahead of schedule and under budget  The plant is the first of three Veresen Midstream facilities in the Montney. 

Natural gas rigs rose while US oil rigs fell again this week after the Hurricane Harvey cleanup continues. With U.S. oil and gas production already back to pre Harvey levels. Bakers Hughes U.S. oil rig count  fell 5 to 744. Canada added 10 oil rigs.

 

Deep sea driller Transocean $RIG announced Friday that it retire six ultra-deepwater floaters and that as a result they will recognize an impairment charge of $1.4 billion in the third quarter of 2017. $RIG Is up near 2% on the news.

Norway’s sovereign wealth fund just reached a massive $US 1 trillion in value. The so called 'oil fund' is the envy of most countries, particularly countries with large commodity resources such as Saudi Arabia and Australia.

Oil analysts speculate over OPEC capabilities, shale production and product demand in hopeful scenarios to satisfy a bullish investor environment. The reality is with the U.S. shale presence Russia and Saudi Arabia exports matter and Chinese oil refineries are the prize.

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