SECTOR COMMENTARY:
Energy Stocks are set to open lower, weighed down by weakness in underlying commodities and broader indexes which continued a volatile September. Intensifying concerns about China Evergrande Group’s debt crisis also weighed on sentiment. The real estate crackdown in China has rippled through the markets and left investors concerned over President Xi’s market rolling campaigns. Furthermore, all eyes will be on Washington this week as the Feds policy meeting will be held Wednesday, where groundwork plans for tapering are expected to be made.
U.S. Oil dropped more than $1 to around $74 as the dollar strengthened raising the U.S dollar index to a 4 week high, weighing on the underlying commodities markets. Oil has also seen additional support over the last few weeks due to the supply shutdown in the US gulf from two hurricanes, but production is gradually returning. As of Friday producing companies in the Gulf had 23% of its crude production offline.
Natural Gas futures fell for a third straight day, down 0.63% at $5.07. Price of natural gas has been skyrocketing all over the world sparking fears over a possible supply crunch over the coming months. A spike in demand following COVID-19 as well as unusual weather patterns are causing prices to pop ahead of colder weather months.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
BP announced it has secured a new $1.8 billion credit and trade finance facility that will help fuel its new global growth strategy of developing 25GW of solar by 2025. The funding, provided by 10 top tier global financial institutions1, underpins Lightsource bp’s growth ambitions and execution strategy as it continues to accelerate the deployment of solar across the EMEA, Americas and Asia Pacific regions.
Petrobras announced it has the ambition to reach carbon neutrality, according to Reuters.
Repsol SA said it that would install the first electrolyzer at its Petronor refinery in the Basque country, Spain, in order to produce hydrogen. The company said the electrolyzer, which will have a capacity of 2.5 megawatts, will involve an investment of 8.9 million euros ($10.4 million). It is set to become operational by the second half of 2022. Repsol aims to become a leader in the renewable hydrogen sector in Spain, and plans to install a total capacity of 557 megawatts equivalent in 2025, reaching 1.9 gigawatts in 2030.
Royal Dutch Shell plans to start producing low-carbon jet fuel at scale by 2025, in an attempt to encourage the world’s airlines to reduce greenhouse gas emissions, Reuters reported. Aviation, accounting for 3% of the world’s carbon emissions, is considered one of the toughest sectors to tackle due to a lack of alternative technologies to jet fueled-engines. Shell, one of the world’s largest oil traders, said it aims to produce 2 million tonnes of sustainable aviation fuel by 2025, a ten-fold increase from today’s total global output.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Earthstone Energy announced that it has entered into an amendment to its senior secured revolving credit facility under which the borrowing base has been increased from $550 million to $650 million in connection with its regularly scheduled semi-annual redetermination.
Laredo Petroleum announced the signing of a purchase and sale agreement to acquire approximately 20,000 net acres in western Glasscock County from Pioneer Natural Resources for approximately $230 million, subject to customary closing price adjustments. This is Laredo’s second significant acquisition in 2021, as the Company continues to execute its transformational strategy and expand its high-margin inventory. The leasehold to be acquired is directly adjacent to Laredo’s existing western Glasscock leasehold, expanding its oil-weighted core development area in the prolific Midland Basin. The transaction is expected to close in October 2021.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
According to Reuters, Lebanon’s Prime Minister Najib Mikati has asked his foreign minister to seek clarification from the international community after Israel granted U.S. oilfield services group Halliburton an offshore drilling contract in the Mediterranean.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
PBF Logistics files for mixed shelf size not disclosed, according to Reuters.
MARKET COMMENTARY
Wall Street futures were down as rising COVID-19 cases and the pace of economic growth hurt sentiment. European shares fell on concerns that major central banks would start giving cues on tapering their pandemic-era stimulus at various meetings this week. Asian equities ended mostly lower, though Japan, China and South Korea markets were closed for holidays. The dollar gained on safe-haven appeal as property developer Evergrande’s solvency spooked investors. Oil dropped as more U.S. Gulf oil output came back online in the wake of two hurricanes. Gold prices were in the positive territory.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
Nasdaq Advisory Services Energy Team is part of Nasdaq’s Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner.
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