Last updateFri, 11 Jun 2021 4pm

IEA: Global Energy Demand to Rebound in 2021

As the world enters a second year of the pandemic, the International Energy Agency’s (IEA) annual Global Energy Review assesses the direction energy demand and carbon dioxide emissions are taking in 2021.

Global energy demand is set to increase by 4.6% in 2021, more than offsetting the 4% contraction in 2020 and pushing demand 0.5% above 2019 levels. Almost 70% of the projected increase in global energy demand is in emerging markets and developing economies, where demand is set to rise to 3.4% above 2019 levels. Energy use in advanced economies is on course to be 3% below pre-Covid levels. 

BP Building New Network of Pipes, Other Infrastructure

The Wall Street Journal is reporting that BP “plans to spend about $1.3 billion to build a massive network of pipes and other infrastructure to collect and capture natural gas produced as a byproduct from oil wells in the Permian Basin of Texas and New Mexico. It plans to announce Monday that it will eliminate routine flaring of natural gas in the oil field by 2025.”

“We will be producing oil and gas for decades, but it will be a certain kind of oil and gas,” Dave Lawler, chairman of BP America Inc., is quoted as saying. “It’s a highly profitable barrel and it’s a responsibly produced barrel.” 

S&P: Oil and Gas M&A Activity Surges

Oil and gas M&A deal-making in the first quarter of 2021 rebounded from year-ago levels as supermajors divested assets and corporate consolidation continued, according to S&P Global Market Intelligence data.

The industry announced 28 more whole-company and minority-stake deals in first-quarter 2021 than in the first quarter of 2020: 117 deals compared to 89. In the same period, the combined value of deals soared from $3.86 billion to $26.37 billion. The number of announced asset transactions fell slightly from 89 to 86, but their aggregate value climbed nearly $10 billion to $11.38 billion. 

Haynesville Gas Output Approaching All-Time High

Given the Haynesville shale's strategic proximity to the U.S. Gulf Coast, a bullish outlook for LNG export demand this summer is giving producers there another good reason to grow output.

According to a recent forecast from S&P Global Platts Analytics, U.S. terminals should continue to operate at over 90% capacity utilization through the summer. Last summer, record-low global gas prices prompted many exporters to defer cargo-liftings, slowing feedgas demand and ultimately shutting-in some U.S. liquefaction capacity. 

Global LNG Demand Highest Since Pandemic Began

Imports of liquified natural gas (LNG) “jumped 5.8% in March from a year earlier, the biggest increase since March 2020,” according to ship-tracking data compiled by Bloomberg. “Demand for the fuel used in heating and power generation had been steadily growing before COVID-19, as nations shift away from coal-fired power over climate concerns.” 

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