Last updateFri, 19 Oct 2018 1pm


ExxonMobil, Plains All American Pursuing Joint Venture

ExxonMobil and Plains All American Pipeline, L.P. have signed a letter of intent to pursue the creation of a joint venture to construct a pipeline to transport crude oil and condensate from multiple locations in the Permian basin to the Texas Gulf Coast.

The proposed common carrier pipeline would be designed to ship more than 1 million barrels of crude oil and condensate per day to market destinations in Texas.

The pipeline would originate in both Wink and Midland, TX with delivery points in Webster, Baytown and Beaumont, TX. A priority would be placed on using existing pipeline corridors to help limit potential community and environmental disruptions. 

Electricity Investments Surpass Oil, Gas for Second Straight Year

The electricity sector attracted the largest share of energy investments in 2017, sustained by robust spending on grids, exceeding the oil and gas industry for the second year in row, as the energy sector moves toward greater electrification, according to the International Energy Agency’s latest review of global energy spending.

Global energy investment totaled $1.8 trillion in 2017, a 2% decline in real terms from the previous year. More than $750 billion went to the electricity sector while $715 billion was spent on oil and gas supply globally.

Meanwhile, government policies are playing a growing role in driving private spending. Across all power sector investments, more than 95% of investment is now based on regulation or contracts for remuneration. 

OPEC Producers Key to World Supply Through 2040

OPEC will maintain its role as a key oil supplier through to 2040, although output from non-OPEC producers will help ensure adequate supply in the years to 2030. Wood Mackenzie said it expects the U.S. lower 48 to enjoy continued growth through the medium-term, with its crude and condensate production reaching a plateau of over 11 million barrels per day in the mid to late-2020s. Once the U.S. plateaus, total non-OPEC liquids production will lose its growth momentum and begin to decline post-2030. 

China a Key Destination for Increasing U.S. Energy Exports

In recent years, as its domestic energy consumption has grown, China has become a more significant destination for U.S. energy exports. In particular, China has been among the largest importers of U.S. exports of crude oil, propane, and liquefied natural gas.

In 2017, more U.S. crude oil was sent to China than any other destination except Canada. China received more U.S. crude oil in 2017 than the third- and fourth-largest importers, the UK and Netherlands, combined. China has been the world’s largest net importer of total petroleum and other liquid fuels since 2013 and surpassed the U.S. as the world’s largest gross crude oil importer in 2017. 

U.S. Oil and Gas Revenues at Four-Year High

The 50 largest U.S. exploration and production (E&P) companies increased capital expenditures for the first time since 2014, according to the EY U.S. Oil and Gas Reserves Study 2018. Companies also reported the highest oil reserves during the five-year study period (2013–2017), while US oil production posted an average 4% annual growth, even accounting for a modest decline in output in 2016.

The survey, which analyzes U.S. E&P results based on 2017 end-of-year U.S. oil and gas reserve estimates, found that study companies reported capital expenditures of $114.5 billion — 32% higher than 2016 and 5% higher than 2015. Similarly, study companies’ revenues amounted to $135.9 billion — up 32% from 2016 and the highest since 2014 as a result of improved commodity prices. 

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