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May 2018 Bid Rounds & Fiscal Terms

During Q2 2018, 28 bid rounds were identified as ongoing offering over 725,000 square kilometres of E&P acreage worldwide. To date, during the quarter 17 bid rounds in 6 countries have opened and 7 have closed. There are 9 estimated to open through the remainder of the quarter. Typically, each country promoting acreage provides a fiscal regime under which the areas can be licensed. Three regime types are used: Royalty/Tax,

Gas Price Increases Continue Following EIA Storage Report

Natural gas storage inventories increased by 91 Bcf for the week ending May 18, according to the EIA’s weekly report. This injection is slightly lower than last week’s injection of 106 Bcf. However, it was roughly in line with market expectations. Natural gas prices are trading slightly higher than yesterday’s close with the prompt June contract trading at $2.94 per MMBtu, at time of writing. Working gas storage inventories now

Crude Prices Down Following a Strong EIA Build

US crude oil stocks increased 5.8 MMBbl last week. Gasoline inventories increased 1.9 MMBbl while distillate inventories declined 1.0 MMBbl. Yesterday afternoon, API reported a crude oil draw of 1.3 MMBbl while reporting a gasoline build of 0.98 MMBbl and a distillate draw of 1.3 MMBbl. Analysts were expecting a crude oil draw of 1.6 MMBbl. The most important number to keep an eye on, total petroleum inventory levels, posted

The Week Ahead for Crude Oil, Gas and NGLs Markets – May 21, 2018

CRUDE OIL • US crude oil inventories decreased 1.4 MMBbl, according to the weekly EIA report. Both gasoline and distillates inventories decreased, with gasoline falling 3.8 and distillates declining 0.1 MMBbl. Total petroleum inventories showed a decline of 0.7 MMBbl. US production was estimated to be up 20 MBbl/d. Crude oil imports increased 278 MBbl/d to an average of 7.6 MMBbl/d versus the week prior. • The WTI trade has

Equatorial Guinea thinks big on LNG

On 8 May 2018, Noble Energy signed a Heads of Agreement (HoA) with the Equatoguinean Government, to supply gas to the Punta Europa LNG plant and the Alba Plant LPG facility, both located on Bioko Island. This is the first part of the Government’s gas MegaHub project, announced in May 2018 – which can be viewed as part of its ambition to become a major regional player in oil &

Natural Gas Storage Posts First Triple Digit Injection

Natural gas storage inventories increased by 106 Bcf for the week ending May. 11, according to the EIA’s weekly report. This withdrawal was roughly in line with market expectations. Natural gas prices were trading slightly lower than yesterday’s close before the report came out and did not react strongly to the injection. The prompt June contract is trading at $2.80 at time of writing. Working gas storage inventories now sit

Price Rebound on Crude Inventory Draw Capped by Lower Demand Growth Projection by EIA

US crude oil stocks declined 1.4 MMBbl last week. Gasoline and distillate inventories declined 3.8 MMBbl and 0.1 MMBbl, respectively. Yesterday afternoon, API reported a crude oil build of 4.9 MMBbl alongside gasoline and distillate withdrawals of 3.37 MMBbl and 0.76 MMBbl, respectively. Analysts, on the contrary, were expecting a crude oil draw of 0.76 MMBbl. The most important number to keep an eye on, total petroleum inventory levels, declined

The Week Ahead for Crude Oil, Gas and NGLs Markets – May 14, 2018

CRUDE OIL • US crude oil inventories decreased 2.2 MMBbl, according to the weekly EIA report. Both gasoline and distillates inventories declined, 2.2 MMBbl and 3.8 MMBbl, respectively. Total petroleum inventories posted a withdrawal of 1.5 MMBbl. US production was estimated to be up 84 MBbl/d. Crude oil imports decreased by 1.2 MMBbl/d to an average of 7.3 MMBbl/d versus the week prior. • The WTI trade, for the past

Bullish EIA Report Pushes Gas Prices Near $2.80 Mark

Natural gas storage inventories increased by 89 Bcf for the week ending May 4, according to the EIA’s weekly report. The report is bullish as the injection was smaller than most market expectations, which were in the mid-90 Bcf. Prompt month (June 2018) is up $0.06 MMBtu following the EIA report at $2.795 at the time of writing. See the chart below for projections of the end-of-season storage inventories as of November

Volatile Prices Amidst Potential Iranian Sanctions, Venezuelan Production Declines and an Inventory Draw

US crude oil stocks declined 2.2 MMBbl last week. Gasoline and distillate inventories declined 2.2 MMBbl and 3.8 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 1.85 MMBbl alongside gasoline and distillate withdrawals of 2.06 MMBbl and 6.67 MMBbl, respectively. Analysts were expecting a crude oil draw of 0.72 MMBbl alongside gasoline and distillate withdrawals of 0.45 MMBbl and 1.38 MMBbl, respectively. The most important number to