SECTOR COMMENTARY:
Following four straight days of losses, U.S. index futures rose and global stocks rebounded. Investors will be watching a key figure on inflation this morning. The Barclays Energy and Power Conference winds down today and Ovintiv announced a shareholder-friendly capital allocation framework.
WTI and Brent trade higher this morning on pace to end the week with slight gains of +0.3% and +0.2%. Loading operations at Libya’s Es Sider and Ras Lanuf terminals have resumed following this week’s demonstrations while exports are still halted at Hariga. The NOC has yet to declare a force majeure. Gulf of Mexico operations remain a focus with roughly 76% of the Gulf’s production capacity still offline. China plans its first public auction of state crude oil reserves to a select group of domestic refiners the reserves administration announced, as Beijing looks to cool high raw material costs. The National Food and Strategic Reserves Administration said the releases will take place in phases. Energy Aspects predicts the auctions will release 10-15M bbls at a time at most.
Natural gas prices are roughly unchanged this morning but on pace for strong weekly gains of more than 6% as prices hit a 7 year high in yesterday’s session. 77% of the Gulf’s total natural gas production capacity still offline which is the main cause of the upswing.
BY SECTOR:
US INTEGRATEDS
According to Reuters, Chevron said there has been “no significant damage” to its Gulf of Mexico platforms as a result of Hurricane Ida, even as crews continue to work to resume production at other locations that were shut due to the storm.
Chevron U.S.A. Inc., a subsidiary of Chevron announced today the signing of definitive agreements to form a joint venture with Mercuria Energy Trading, one of the world’s largest integrated energy and commodities companies, to own and operate American Natural Gas LLC and its network of 60 compressed natural gas stations across the United States.
According to Reuters, Exxon Mobil asked the U.S. Energy Department for another loan of 1.5 million barrels of oil from the Strategic Petroleum Reserve amid a slow return of offshore oil after damage from Hurricane Ida, a source with knowledge of the request said on Thursday. Last Thursday, U.S. Energy Secretary Jennifer Granholm authorized a loan of 1.5 million barrels to Exxon’s Baton Rouge refinery. Exxon has asked for another 1.5 million barrels and the request will likely be approved as soon as Thursday night, the source said.
INTERNATIONAL INTEGRATEDS
According to Reuters, Petrobras said it would launch new contract models to sell gasoline and diesel, as it plans to be “more flexible” amid the arrival of new competitors. Petroleo Brasileiro SA said in a securities filing the changes would allow it to adjust better to market conditions, even though there will be no modification in its pricing policies.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Ovintiv announced a new capital allocation framework, which supports the Company’s goal of unlocking shareholder value by delivering on its strategic priorities of financial strength, increasing cash returns to shareholders, generating superior returns on capital investment, and driving ESG progress.
CANADIAN E&PS
Ovintiv announced a new capital allocation framework, which supports the Company’s goal of unlocking shareholder value by delivering on its strategic priorities of financial strength, increasing cash returns to shareholders, generating superior returns on capital investment, and driving ESG progress.
OILFIELD SERVICES
ION Geophysical announced a third, fully underwritten phase of the Company’s Mid North Sea High 3D new acquisition multi-client program. The Mid North Sea High program covers one of the few remaining underexplored areas offshore the UK, where relatively low development costs close to shore make it attractive for future investment. Adjacent to the initial phase, the survey location fills a gap in existing subsurface coverage and is strategically important to expanding ION’s regional footprint. Data collection of the ~700 sq km industry-supported survey is expected to occur from mid-September until late October.
MLPS & PIPELINES
Brooge Energy announced that its wholly owned subsidiary, Brooge Petroleum and Gas Investment Company FZE commenced operations at its Phase II storage facility and received its first cargo, following the successful completion of all testing and commissioning at the site and receipt of regulatory approvals.
MARKET COMMENTARY
U.S. stock index futures were higher, mirroring global shares, as news of a call between Joe Biden and Xi Jinping offered some relief to investors expecting cautious central bank steps towards ending stimulus. Japan’s Topix index touched its best level since 1990 on hopes of a new government and further improvement in earnings. The dollar index was little changed, while gold prices edged lower. Oil gained, supported by growing signs of supply tightness in the U.S. Producer prices and wholesale inventories data are on the economic calendar.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
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