Tom Whipple and Steve Andrews, Editors

Quotes of the Week

“For a European company that wants to be aligned with the continent’s target for climate neutrality by 2050, these time scales present a problem. A European customer might want [natural] gas in 2025 or 2030, but not in 2040 and likely not by 2045. This mismatch prevents U.S. LNG projects from moving forward with European help.” Nikos Tsafos, CSIS (Center for Strategic and International Studies)

“Whether it’s $150 oil, $200 oil, or $100 oil, we’re not going to change our growth plans. If the president wants us to grow, I just don’t think the industry can grow anyway.”-Scott Sheffield, CEO Pioneer Natural Resources

Graphic of the Week

Headlines for the week of April 18-24

The Global Energy Situation

Rystad: Oil demand to sink by 1.4 million bpd
2022 oil demand expected to stay below 100mm barrels per day

Russia

Next phase of war will be pivotal for Russia and Ukraine, U.S. says
EC says ‘appears possible’ to make Russian gas payments under new pay-in-rubles decree
Russia’s gas exports to Europe this year could drop by one-third
The numbers behind an EU ban on Russian crude; could see the loss of >3mb/d near term

Europe

Europe can diversify from Russia faster than believed: Draghi
An EU embargo on Russian oil in the works – French minister
Germany pledges to halt all Russian oil imports by end of year

North America

US natural gas export fever tempered by costs and climate concerns
Permian drilling permits hit all-time monthly high
U.S. oil production climbs despite cautious drillers; EIA sees growth to 12.01 mbd year-end
U.S. rig count inches higher as oil rally halts; at 695, the count is up 45 since the Ukraine invasion
EIA: number of DUCs (4,273) falls to lowest on record; that’s down 42% in 14 months
It’s getting increasingly expensive to boost U.S. oil production: pricey labor, frac sand, steel, services
Permian gas production at risk by late 2023 as midstream capacity dwindles

China

Chinese oil demand set for 1.2 million bpd plunge in April
China imports 13% less crude oil from Saudi in March, 14% less from Russia

Middle East

Algeria struggles to meet the rising demand for its gas after the Russian invasion
The odds of a nuclear deal with Iran are shrinking every day
Iraq not likely to increase oil exports backs OPEC cuts as a success: finance minister

Latin America

Guyana considers creating its own state-owned oil company

The Global Economy

Citing Russia’s war, IMF cuts global growth forecast to 3.6%
The drive to vaccinate the world against covid is losing steam
Ukraine war deepens debt woes across the developing world

Agriculture

Corn rallies further from a decade high as war stokes supply fears
Indonesia bans palm oil exports as global food inflation spikes

Russia

Russia blocks economic data, hiding effect of Western sanctions
U.S. banks set to write off $15 billion in Russian assets
Russia comes closer to default after swaps watchdog rules against ruble

U.S.

U.S. has provided the most financial support to Ukraine: $8.2 billion
Biden administration launches $6 bln nuclear power credit program; help existing nukes against rising costs

Europe

World Bank estimates Ukraine’s physical damage at roughly $60 billion so far

China

China’s oil demand is tumbling the most since the Wuhan lockdown
China’s sales index falls to a 22-month low during April lockdowns
China joblessness climbs, spending drops on Covid lockdowns
Shanghai fences up COVID-hit areas, fueling fresh outcry
China’s Xi sticks with COVID stance despite anger, economic headwinds
China’s GDP data hint at heavy cost of its zero Covid strategy
China’s economy grew 4.8% in first quarter, beating expectations
China’s daily coal output in March hits record high
China’s steel demand to fall in April amid slowing property sales, housing starts

India

India’s big industrial states plan massive coal imports to stave off shortages
India eyes Russian coal offered at steep discounted price amid domestic shortage
Eight-hour blackouts hit India after hottest March on record
India’s Reliance snaps up 15 million barrels of cheap Russian oil;

Global Warming

U.S.

U.S. to grant $6.4 bln funding for projects, mostly transportation, to reduce carbon emissions

Europe

Climate change threatens Europe with new weather extremes