Biden Admin Launches Oil and Gas Leasing Study

The Biden administration is beginning its comprehensive study of whether -- and how -- the U.S. government sells drilling rights on federal land and waters, a review that could chart the future of U.S. energy development for decades to come.

The Interior Department said it would hold a forum on leasing as it outlined its first formal steps on the review Tuesday, roughly six weeks after President Joe Biden ordered the agency to pause selling oil and gas leases. The move responds to appeals from both oil industry leaders and environmentalists who have pressed the administration for clarity on the leasing review.

Excerpt: Rigzone

Oil Prices Surge As OPEC+ Sources Suggest a No-Crude Production Increase

The U.S. oil benchmark, WTI Crude, jumped early on Thursday to above $64 a barrel, soaring by more than 5 percent, after OPEC+ sources began telling reporters that the coalition may be close to agreeing not to increase their collective oil production in April.

WTI Crude prices were surging by 5.06% at $64.21 as of 11:18 a.m. ET on Thursday. Brent Crude prices jumped above $67 per barrel, to $67.17, up by 5.10%, after OPEC+ sources started to leak insights from the ongoing OPEC+ ministerial meeting.

An Excerpt from Tsvetana  Paraskova article (Oilprice.com)

$15bn Dangote Refinery Pose To Sell Refined Crude To Nigeria FG in Naira

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, says arrangement is being made to enable the Dangote Refinery sell refined crude to Nigeria in naira when it commences production.

 Emefiele also disclosed that the first shipment of Urea from the Dangote Fertilizer Plant would begin in March to help boost agriculture in the country.

Emefiele made the disclosure on Saturday during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertilizer Plant and Subsea Gas Pipeline projects at Ibeju Lekki, Lagos. 

The CBN governor noted that the 15 billion dollar projects being constructed by the Dangote Group would save Nigeria from expending about 41 per cent of its foreign exchange on importation of petroleum products. 

Emefiele said: ”Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira.

Source: Vanguard News Nigeria

Warren Buffet Invests in Chevron Corporation

Buffett's Berkshire Hathaway just disclosed a new stake in Chevron (CVX), the second largest oil firm in the United States.

The $4.1 billion investment could have been spearheaded by Berkshire investment managers Ted Weschler and Todd Combs. But Buffett still runs the show, and it's a sign that the world's most famous investor sees long-term value in a sector that's taking plenty of heat.

An excerpt: Julia Horowitz (CNN Business)

Oil Prices Spike as US Outages Tighten Supply

Oil prices spiked to 13-month highs last week after the Texas Freeze, but prices sagged toward the latter part of the week. But on Monday, a new price rally began, with the price of WTI spiking $1.81 per barrel to $61.05. Brent shot up by $1.73 to $64.64.

The price hike comes shortly after Goldman Sachs forecast that oil prices would climb into the $70s over the next few months, and after it became clear that U.S. oil production and refineries will take a bit of time to resume their normal level of output after the Texas Freeze knocked out oil refineries and oil production.

Excerpt: JULIANNE GEIGER (Oilprice.com)

Ghana Resurrects LNG Import Terminal With Chinese Deals

 Ghana has chosen two Chinese companies to build the infrastructure it needs to import liquefied natural gas, resurrecting the $350 million Tema terminal project that would make the country the first in sub-Saharan Africa to buy LNG.

Tema LNG, backed by Africa-focused private equity firm Helios Investment, signed deals with China Harbour Engineering Company to build onshore facilities and Jiangnan Shipyard for a floating storage and regasification unit (FSRU), the Ghanaian government said in a statement issued on Monday.

It gave no further financial details of the deals but said $200 million of the estimated cost of the project of over $350 million would be spent in Ghana itself.

LNG is expected to be sourced by Russian oil giant Rosneft , which has a 12-year deal to supply 1.7 million tonnes a year (mtpa) with Ghana National Petroleum Corporation, although the project has had previous LNG suppliers lined up.

Ghana has been trying to get an LNG import project off the ground for years, with two leading FSRU operators, Golar and Hoegh, earmarking their giant vessels for the country's eastern Tema port only to withdraw due to delays over contracts.

 s: rigzone

Diesel Demand Is Set To Soar

The International Maritime Organization’s new rules on fuel emissions that will come into effect in 2020 will help to lift diesel demand, according to industry insiders attending an S&P Global Platts event in Brussels this week.

The new emission rules stipulate that only vessels using fuels with a sulfur content of 0.5 percent or less will be allowed to roam the oceans, as per the IMO’s strategy aimed at cutting total carbon emissions from maritime transport in half by 2050. 

Those that use fuel with a higher sulfur content—the current limit is 3.5 percent—will only be allowed to remain in operation if they are equipped with emission-clearing equipment, which comes at no small cost.

As a result, expectations are, naturally, that high-sulfur fuels demand will take a hit while low-sulfur fuels enjoy higher demand. Diesel is among these latter fuels, as is low-sulfur fuel oil. According to one attendant at the S&P Global Platts European Refining Summit, the additional demand for these two fuels could reach 1.6 million bpd.

Investors and business enthusiasts take note..... 

Credit: Irina Slav

Egypt Signs $1billion deal with Shell & Petronas

Jobs prospect blooms as Egypt signed a deep-water oil and gas exploration deal with Royal Dutch Shell and Petronas worth around US$1 billion (RM4.14 billion) for eight wells in the country’s West Nile Delta, the petroleum ministry said on Saturday.

 

The country also signed a second US$10 million deal with Rockhopper, Kuwait Energy and Canada’s Dover Corporation for exploration in the Western Desert, a ministry statement said. 

Egypt aims to be a regional hub for the trade of liquefied natural gas (LNG) after a string of major discoveries in recent years, including Zohr, which holds an estimated 30 trillion cubic feet of gas.

You know what it translates to if all eight well exploration are successful.

S: Reuters

Hurricane Danger Lifts Oil Prices

Hurricane Florence, which is moving towards the U.S. East Coast, helped push prices higher few days ago and will continue to act as a tailwind for West Texas Intermediate until at least Thursday, based on the latest updates from the National Hurricane Center.

Last week, tropical storm Gordon shut in oil production amounting to 160,000 bpd for several days as it passed through the Gulf of Mexico. That represented about one-tenth of total oil production in the GOM.

Still, any hurricane approaching the U.S. coast will affect prices in

Joe Hart visits Carl Ikeme in hospital [PHOTO] - Daily Post Nigeria

Joe Hart visits Carl Ikeme in hospital [PHOTO] - Daily Post Nigeria: England and Manchester City shot stopper, Joe Hart has shown support for the Nigeria Super Eagles and Wolverhampton Wanderers goalkeeper, Carl Ikeme when h