August 1, 2022 

Tom Whipple and Steve Andrews, Editors

Quotes of the Week

“The United States is on track to blow past Biden’s March commitment of an additional 15 billion cubic meters of LNG for Europe this year, according to a Reuters analysis of export data compiled by Refinitiv, and to triple the pledge.”-Jarret Renshaw and Scott Disavino, Reuters

“This year is set to be a turning point for [Guyana’s] government to start capitalizing on the vast reserves in the offshore field, with revenues more than doubling over 2021 levels.  Low breakevens and below-average emissions intensity in the Stabroek will propel Guyana from a relatively small producer to a global leader in the coming years, solidifying the country’s position as a competitive and policy-friendly player for offshore production.”-Rystad Energy

Stats of the Week

  1. 13 million barrels per daythat is Saudi Arabia’s maximum rate of production as stated the previous weekend by Prince Mohammed Bin Salman.
  2. The United States became the world’s largest liquefied natural gas (LNG) exporter in first-half of 2022, the US EIA said on July 25.  US LNG exports increased by 12% in first-half of 2022, averaging 11.2 bcfd. Installed US LNG export capacity has expanded by 1.9 bcfd nominal (2.1 bcfd peak) since November 2021. US EIA

Graphic of the Week

The Global Energy Situation

We appear to be very close to peak global oil production, and that has enormous implications for the entire global economy

Russia

Russia cuts gas flows further as Europe issues savings plea
Russia’s offline primary oil refining capacity revised up by 34% for August
Russia’s Rosneft starts construction of huge Arctic oil terminal

Europe

European gas prices soar after Russia deepens supply cuts
EU countries reach deal on emergency gas cuts for this winter
Russia’s Gazprom tightens squeeze on gas flow to Europe
Europe’s race to secure new energy sources is on a knife’s edge
German cities begin turning off lights to save energy

North America

July USA gasoline demand readings lower than pandemic era
Analysis: U.S. LNG exports to Europe on track to surpass Biden promise
U.S. becomes top LNG exporter in first half of 2022 – EIA
Stuck in reverse? Gasoline prices at $4.35 slide lower
U.S. refiners haven’t seen fuel demand destruction
Shale drilling climbs to levels not seen since the early weeks of the pandemic

Middle East

Iraqi Kurds agree with Baghdad to ‘increase dialogue on oil and gas dispute
Iran’s oil earnings soar despite sanction

Africa

EU looks to replace gas from Russia with Nigerian supplies
TotalEnergies begins production from Ikike field in Nigeria
Libyan oil hits milestone with output at 1 million barrels a day

The Global Economy

Agriculture

Russian Odesa missile strike tests Ukraine grain export deal
Ukraine prepares long-awaited grain shipments, despite Russia’s attack on the Odesa port.
Ukraine’s Odesa port set to see first corn shipment since Russia’s invasion
Crops ‘stored everywhere’: Ukraine’s harvest piles up
US poised to deliver bumper wheat crop the world badly needs

US

U.S. economy transitions to slower growth as inflation weighs on consumers
US Senate passes CHIPS bill with semiconductor funding

Europe

Eurozone recovery picks up speed but Ukraine war threatens deep contractions

China

China’s rural banking smash-up
Why China’s economic measures may not be enough to drive up consumer demand
China and India are buying less Russian crude

Latin America

Guyana poised to break $1 billion in oil and gas revenue this year

Global Warming

Climate disinformation leaves lasting mark as world heats
How is the jet stream connected to simultaneous heat waves across the globe?

North America
Joe Manchin reaches deal with Chuck Schumer on energy, healthcare, tax package
Surprise deal would be most ambitious climate action undertaken by U.S.
Forecast: Scorching heat wave extended in US Northwest
Climate bill ‘transformative’ for auto and energy industries