Sergio Chapa

PREFERRED ROUTES 👉🪨♻️👷🏻‍♂️👷‍♀️: In a newly-launched report, the Morecambe Net Zero (MNZ)/Peak Cluster partnership has set out the opportunity to accelerate new routes to market for commercially mature carbon capture and storage (CCS) projects. They add that their initiative will unlock private investment and ensure the UK can hit its net-zero targets. MNZ/Peak Cluster says its partnership will decarbonise 40% of the UK’s cement and lime industry and ensure that close to four million tonnes of CO₂ emissions from vital industry within Peak Cluster will be captured and then permanently stored in Spirit Energy’s MNZ carbon store each year, from 2030. The partners add that the project is set to generate the equivalent of £1.8bn GVA (gross added value) by 2050, creating and safeguarding more than 13,000 jobs across Derbyshire, Staffordshire and Cumbria, and attracting a further £5bn of investment in construction and operations. It will also see a combined annual increase of £154m in skills uplift and wage increases. #carboncapture #decarbonisation #cement #uk Neil McCulloch John Egan CUNNINGHAM Alex Mineral Products Association GCCA – Global Cement and Concrete Association

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Pinnacle assets to be acquired by Phillips 66 include the recently built, scalable Dos Picos #naturalgas gathering and processing system: a 220 MMcfd gas processing plant, 80 miles of gathering pipeline. ❓What changes with big-name ownership? #permian Oil & Gas Journal #natgas #oilgas #deals #permianbasin

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Check out Bloomberg News' deep dive into why the utility powering the US "Energy Capital of the World" struggled to get the lights back on after a relatively-weak hurricane. Our investigation, based on interviews with nearly a dozen experts along with public filings and on-the-ground reports, found two major factors contributed to the widespread disruption. 1) CenterPoint failed to call up enough workers before the storm hit. 2) The utility struggled with managing tree trimming around its poles and wires. In addition, the utility has struggled with providing reliable service to customers for years. #Houston #climate #blackouts

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For some market watchers, the recent legal issues around cost and reliability show an industry grappling with a small pool of skilled labor that is being stretched ever thinner as more projects, LNG and otherwise, ramp up. #USLNG #natgas #USenergy

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As large swathes of America sizzle through record temperatures this week, the Energy Institute published its annual statistical review of world energy: it makes for grim reading for people hoping to see rapid progress on the energy transition... Amanda Chu has the story Countries burnt record amounts of oil and coal last year, sending global fossil fuel consumption and emissions to all-time highs, the Energy Institute reported. Oil demand grew 2.6 per cent, surpassing 100mn barrels per day for the first time. Meanwhile, the share of fossil fuels in the energy mix declined slightly by half a percentage point, but still made up more than 81 per cent of consumption.  While EI’s estimates are largely in line with the International Energy Agency’s, its authors offer a more sombre view of the pace of the energy transition compared with the Paris-based watchdog. “Today’s new data provides little encouragement in terms of global climate change mitigation,” said Nick Wayth, chief executive of EI. “Arguably, the transition has not even started.”  Financial Times Energy Institute

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LONG-READ COLUMN: The US Gulf of Mexico is about to boom again -- 15 years after the Deepwater Horizon oil spill. BP and several other major oil companies are racing to develop the new frontier in the basin: ultra high-pressure, high-temperature oilfields in the Paleogene geological strata. "The timing of the potential bonanza is a paradox. It comes as the White House is telling Americans the country needs to transition away from fossil fuels to save the planet. It’ll be hard to break that habit if the US is swimming in oil. In fact, the country produces more oil than it consumes. It’s a politically incorrect embarrassment of riches. As long as this conundrum exists, I don’t see how the country will ever fully embrace the green energy transition. The country’s geological resources are so rich; its engineering prowess so unlimited; and its capitalist system so determined to make money that it can’t help but drill and drill and drill. Joe Biden may have green credentials to maintain but he’s presiding over American oil production that’s thriving from Alaska to Texas and now the US oilfields in the Gulf of Mexico — despite the complaints about the administration from the petroleum industry. And Biden will find it hard to relinquish the black stuff. That’s because it strengthens Washington’s hand in the geopolitical energy game it plays with OPEC+, which includes Russia. It’s also the American ace in the hole in the contest with an ever greener China, which is still heavily dependent on imported petroleum. In the quest to stay the No. 1 superpower, the US will be loathe to go green. That’s why the new spigots in the gulf are so important to America. And so, even as the climate warms, the most pressing issue isn’t to slow the extraction of Paleogene petroleum, but guarantee it’s done safely." Read the full Bloomberg Opinion column below:

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Dealmaking in US oil and gas has surged to almost $200bn in the past year as the biggest producers compete to swallow up rivals in a race for scale that has redrawn the national energy landscape. But as the country’s best drilling acreage is snapped up, companies are casting a wider net and looking beyond the most sought after oilfields for acquisitions that will bolster their ability to pump hydrocarbons in the years ahead. “We are in the midst of a consolidation wave and I don’t think it is over yet,” said Jon Hughes, chief executive of Petrie Partners, a boutique investment banking firm which advised on Pioneer Natural Resources’ $60bn sale to ExxonMobil. “We’ve gone from about 65 to 41 publicly traded oil and gas companies in the US in less than five years.” Read full article here https://on.ft.com/4aJVaOU  Myles McCormick Financial Times 

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Chevron is spearheading the #oilandgas industry's first #deepwater ultra-high pressure development in the U.S. Gulf of Mexico. Named "Anchor," the #HPHT project boasts innovative technologies and collaboration between major #offshore players to push the envelope in harsh environment development. Read my article on World Oil to learn more, and stay tuned for more insights from #OTC2024!

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I heard lots of great things at the Offshore Technology Conference this year, one of which being that draft regulation for offshore CCS in the U.S. could be published later this year! Here's what I learned: #OTC2024 https://bit.ly/4bqKxRy

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TC Energy (TRP.TO) beat first-quarter profit estimates on Friday as strong energy demand boosted the pipeline operator's transport volumes of oil and gas. Crude demand in the U.S., the largest importer of Canada's oil and gas, rose in the first quarter according to the U.S. Energy Information Administration, benefiting Canadian energy firms. Total earnings from TC Energy's pipeline segments came in at C$2.27 billion ($1.66 billion), compared with C$2.17 billion last year, largely on an income jump of 80% in its liquids pipeline. With Seher D. Reuters https://lnkd.in/gvQErD-J

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The latest report by the IEF - International Energy Forum and S&P Global Commodity Insights shows that annual upstream oil and gas capital expenditures will need to rise by 22% by 2030 to ensure adequate supplies due to growing demand and cost inflation. Frontier Africa Reports Boason Omofaye https://lnkd.in/dcmP2d6s

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My first deep dive for S&P Global Commodity Insights looks at how a new domestic market for crude oil has popped up in #Kurdistan more than a year after the #Ceyhan pipeline closed. Oh, and there's some smuggling on horseback in there as well. There's also a chart that I personally find very, very cool. Read it here: https://t.co/wQTlRnbNCh

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Happy Monday! Belatedly sharing our weekly LNG report ...by Emily Chow Asian spot #LNG prices saw a slight decline this week, but still held near a six-month top as hot weather in the region encouraged cooling demand, and as Northeast Asian buyers focus on supplies for the summer. The average LNG price for July delivery into north-east Asia was at $12.00/mmBtu, slightly down from $12.30/mmBtu in the previous week, which was its highest levels since mid-December. "(The) heatwave has strengthened downstream gas demand in India but this is also a price-sensitive market. Currently, Indian importers have no choice but to import spot LNG due to surging power demand amidst the hottest heatwaves," said Masanori Odaka, senior analyst at Rystad Energy. Delivery into India, however, is often at a discount to Europe or the rest of Asia, added Odaka, "so the impact on global prices are limited." India is experiencing a blisteringly hot summer, with a part of capital Delhi recording the country's highest ever temperature at 52.9 degrees Celsius (127.22°F) this week. Southeast Asian buyers like Thailand's state-energy firm PTT and Philippines power producer First Gen also issued tenders this week seeking supplies for delivery in July. LNG/TEND In northeast #Asia, South Korea and Japan are both forecast for hotter than normal weather through most of June and well into July, said Samuel Good, head of LNG pricing at commodity pricing agency Argus. "Several Japanese power utilities have already purchased cargoes for June-July delivery, so their current interest is pointing more towards August onward delivery," added Rystad's Odaka. In #Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in July on an ex-ship (DES) basis at $11.023/mmBtu on May 30, a $0.14/mmBtu discount to the July gas price at the Dutch TTF hub. Argus assessed the July delivery price at $11.00/mmBtu, while Spark Commodities assessed the June delivery price at $11.026/mmBtu. "In Europe, TTF gas markets have found some support on the back of increased Asian LNG demand," said Hans van Cleef, chief energy economist at PZ-Energy. "Although European gas inventories are well filled, and the filling season is still in progress, market participants seem to react nervously when there are signals regarding higher Asian demand, or supply disruptions as we have seen due to the unexpected Norwegian outages." In the United States, Argus' Good said that production has increased as the Cameron LNG terminal in Louisiana has raised its feedgas intake "to levels that would suggest all three trains are operating close to capacity." Sabine Pass inflows, however, remain lower than would usually be seen during winter months, he added. Meanwhile, LNG freight rates continued to increase this week, said Spark Commodities analyst Qasim Afghan. Atlantic rates jumped to $52,500/day on Friday, while Pacific rates rose to $45,250/day.

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My new blog for Carbon Tracker looks at how the #SupremeCourt decision to strike down #Chevron Deference will impact efforts to fight #climatechange. https://lnkd.in/eq5JT_Pa

Mercuria Energy Group Ltd. has invested in Black Bayou Energy Hub LLC — an early-stage gas storage facility in Louisiana — as the Geneva-based commodity trading house looks to build on its position in the gas industry. The investment in an undisclosed capacity of gas storage in Louisiana comes as the next wave of liquefied natural gas export facilities comes online from the US, which was the largest super-chilled fuel exporter in 2023. Five new LNG projects or expansions are currently underway in Texas and Louisiana, with more planned. Mercuria has brought in a team of industry veterans in the past year and a half to grow its already large natural gas and power businesses and to start trading physical LNG. Nick O’Kane, who helped build Macquarie’s commodities division into a major player in natural gas, particularly in the US, started last month at the firm. Mercuria has also brought in dealmaker Robert Lawson from BP Plc and Shell’s Steve Hill to lead LNG. Story w/ Ruth Liao https://lnkd.in/eD8T93BW

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