Oil is trading higher, around $74, extending gains from last week
Oil production from North Dakota remains lower by nearly 50% after freezing conditions led to operational issues and leaks
The US crude oil rig count fell by two rigs to 497 last week
Libya restarts production from largest oil field (BBG)
The force majeure on the Sharara oil field will be lifted, and exports will resume, according to Libya’s National Oil Corp
The field was shut in due to protests, which have subsided following the implementation of most of the protestor's demands by the Libyan government
The closure of the Sharara field reduced Libya’s oil output to below 1 MMBbl/d for the first time in several months
Red Sea oil cargoes continue to fall (BBG)
The number of ships carrying crude through the Red Sea has fallen by 25%, while product shipments have fallen by almost 50%, according to data from Vortexa
Ships are being forced to take longer routes or pay more for insurance
The Biden administration recently said that military operations to deter the attacks will take time
Natural gas prices see a further decline amid warmer forecasts and rebounding production
February ’24 Henry Hub is down 14c this morning to trade around $2.379/MMBtu
The Winter ‘23/’24 strip is down 12.7c to $2.247, and the Summer ’24 strip is down 9.6c to $2.451
The weather model indicates a significant warming trend across the Lower 48, particularly in the Northeast and Midwest, with above-normal temperatures expected into early February
South Central gas volumes rose by 0.94 Bcf/d, offsetting Rockies and Appalachia changes, pushing total volumes towards 99.8 Bcf/d, with more increases expected following freeze-offs (Criterion)
Trasco and TGP are granted FERC approvals for natural gas expansions (NGI)
Transco's Texas-Louisiana project got FERC approval on Jan 19, targeting LNG demand rise on the Gulf Coast; construction is to start this year and be operational by early 2025
EOG Resources secures 15-year deal with Transco for Texas-Louisiana project's full capacity to support Gulf Coast energy needs
TGP's Cumberland Project also got FERC approval to supply 245,000 Dth/d of natural gas to the Tennessee Valley Authority, with construction set to begin in August and in service by Sept 2025
Additionally, Transco's Northeast Supply Enhancement (NESE) project’s second extension was granted, increasing New York City's gas supply from Pennsylvania
The Biden administration faces a challenging decision on Venture Global's Louisiana CP2 LNG project, caught between environmentalists' climate concerns and industry arguments for its necessity in global energy security
Awaiting FERC's vote, potentially within months, CP2 would double the size of Venture Global's existing plant with a 20 MMTPA export capacity
FERC granted CP2 final environmental approval in July; however, the project requires additional approval from the DOE to export LNG to non-free trade agreement countries
Meanwhile, the Biden administration is considering implementing a stringent review on LNG export permits, focusing on climate change impacts
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