Oil prices are higher today, around $73.75, extending gains from yesterday
Yesterday the EIA released its Short-Term Energy Outlook and revised its crude production forecast down by 120 MBbl/d to 170 Mbbl/d
Permian Basin acquisitions to lower US output growth in 2024 (Reuters)
In 2023, 39 private producers were acquired by public companies, which could change the growth profiles as those assets
US oil output, driven by the Permian, reached a record of 12.93 MMBbl/d in 2023 and is expected to grow by just 170 Mbbl/d in 2024, according to the EIA
Activity has fallen over the past year, with the number of rigs in the Permian falling to 311 from 350 a year ago, and the number of frac crews falling by 20 to 250
Rystad’s Head of Shale Research said, “It all ties down to the industry being less interested in growth and more in generating positive cash flows, which they have now done successfully for a few years"
Global oil demand to depend on India (BBG)
According to the IEA, India will be a leading driver of oil demand growth through 2030
Indian oil consumption is expected to grow by 1.2 MMBbl/d through 2030 to 6.6 MMBbl/d
The country, which is already the world’s third-largest oil consumer, has been significantly boosting its refining capacity
Natural gas trades modestly higher, buoyed by expectations of cooler temperatures later this month
March ’24 Henry Hub is up 2c this morning to trade around $2.029/MMBtu
The Summer ’24 strip is up 0.5c to $2.332, and the Winter ‘24/’25 strip is up 0.2c to $3.379
Today's Euro Ens shows brief warming in Southeast and South Central before temperatures shift to below normal into late February, with the week ending 2/23 expected to be the coldest
Lower 48 gas production recovered by 0.74 Bcf/d last night, nearly offsetting an earlier drop of 0.89 Bcf/d, settling just above 104 Bcf/d (Criterion)
Greenfield Texas natural gas storage project targets in-service in 2027 (S&P)
The Freeport Energy Storage and Sequestration Hub (FRESSH) plans to add 15.6 Bcf of natural gas storage by 2027, aiming to soften demand variability for LNG and gas-fired power generation
Gulf Coast Midstream is set to develop two out of five salt caverns for the project, expecting regulatory approvals by the end of 2024 and exploring future expansion to include NGLs, hydrogen, and CO2
GCM executive Knolle highlighted a shift towards hourly storage demand in natural gas, indicating a rise in operational value for LNG and gas-fired generation beyond traditional seasonal storage patterns
Furthermore, estimates from S&P prior to the LNG export pause announcement showed daily feedgas demand projected to double by 2028 from 2022 (11.9 Bcf/d)
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