Oilprice.com – Friday, February 5th, 2021 – Brent is closing in on $60 per barrel for the first time since January 2020. Crude inventories in both China and the U.S. declined this week, offering more evidence of a tightening market. âThe physical market is also looking increasingly tight,âÂ said Eugen Weinberg, head of commodities research at Commerzbank AG.
Shell profits drop but boost the dividend.Â Royal Dutch Shell (NYSE: RDS.A)Â reported a $4.8 billionÂ profitÂ for 2020, down 71% from the year before. The oil major hiked its dividend for the first quarter, following a sharp cut last year. âWe are coming out of 2020 with a stronger balance sheet,â Chief Executive Ben van Beurden said in a statement.
Shell sees oil demand back to ânormalâ in 2022.Â âI believe 2022 is going to be sort of back to normalâ regarding global oil demand, CEO Ben van BeurdenÂ said. However, that depends on the aviation sector experiencing a full recovery.
Oil surges as OPEC+ keep cuts in place.Â Saudi Arabia kept oil shipments to Asia unchanged even as the market has tightened, sending oil prices higher this week. âIt looks like, at every turn, Saudi seems to want to support the market,â Michael Hiley, energy trader with LPS Futures, toldÂ Bloomberg.
âIf demand really picks up, we could be short oil pretty quickly, because U.S. production isnât going to come back fast.â At the same time, the division may increase between OPEC+ members as prices continue to rise.
Engine No.1 pans Exxon strategy.Â Engine No.1, an investment firm that has taken a large stake inÂ ExxonMobil (NYSE: XOM)Â and has sought changes to the board and to corporate strategy, criticized the oil giantâs leadership and issued a statement lambasting the companyâs latest moves as insufficient.
âA Board that has underperformed this dramatically and defied shareholder sentiment for this long has not earned the right to choose its own new members or pack itself in the face of calls for change,â Engine No. 1Â said. The firm said that Exxonâs current course ensures âcontinued value destruction.â
Supreme Court to hear pipeline case.Â The U.S. Supreme Court willÂ hear a high-profile case involving the use of the eminent domain. The PennEast Pipeline Co. LLC is looking to condemn land in Pennsylvania from private citizens in order to build the project that would carry shale gas to refineries on the east coast. The case could have broad repercussions over how energy companies can use eminent domain.
Biden restarts Vineyard wind.Â The Biden administrationÂ said on Wednesday it would restart permitting for the first major U.S. offshore wind farm after the Trump administration froze the process.
Biden DOE nominee advances. Jennifer Granholm nominated to head the Department of Energy, easilyÂ clearedÂ a committee vote, suggesting she will have little trouble earning confirmation. She voicedÂ supportÂ for U.S. LNG exports even as she championed climate action.
Ford to double EV investment.Â Ford (NYSE: F)Â saidÂ it would spend $22 billion on EVs through 2025, twice its earlier plan.
Apple to invest $3.6 billion into Kia Motors.Â Kia Motors (KRX: 000270) surged nearly 15% after local media reported that Apple (NASDAQ: AAPL) would investÂ $3.6 billionÂ in the company to build out EVs.
Chesapeake Energy cuts 15% of staff.Â Chesapeake Energy (NYSE: CHK)Â saidÂ it would cut 15% of its staff as it prepares to exit bankruptcy.
Chinaâs coal plants 3x more than the rest of the world. ChinaÂ addedÂ 38.4 GW of new coal capacity in 2020, more than three times built in all of the rest of the world.
The COVID-19 pandemic has upended global energy investment trends.Â The pandemic has not broken butÂ intensifiedÂ global energy trends that emerged on the eve of COVID-19, whether it be the collapse of coal-fired power generation, the growing surplus of oil production, or the booming interest in renewables.
The green industries minting billionaires.Â Want to get rich quick while playing a part in fighting climate change? Here are theÂ clean energy sectorsÂ that have been creating billionaires.
$1 trillion in stranded assets for pipelines.Â A newÂ report from Global Energy Monitor finds that 212,000 kilometres worth of pipeline is under construction or on the drawing board, roughly equivalent to the entire length of the U.S. highway system. The report says that could result in $1 trillion getting stranded as the energy transition accelerates.
Chevron bids $1.13 billion for Noble Midstream Partners.Â Chevron (NYSE: CVX)Â saidÂ on Friday it had offered to buy Noble Midstream Partners LP in a deal valuing the company at $1.13 billion. The decision comes just a few months after Chevron bought the upstream operator, Noble Energy.
Interior cancels offshore Alaska lease sale.Â The U.S. Department of InteriorÂ cancelledÂ work on a propose lease sale off Alaskaâs southcentral coast, following President Bidenâs executive order pausing leasing on federal lands.
South Korea to build $43 billion offshore wind.Â South KoreaÂ unveiled a $43.2 billion plan to build the worldâs largest wind power plant by 2030.
Canada oil and gas deals surge 468%.Â M&A transactions in Canada in the fourth quarter last year wereÂ worth US$10.01 billion, up by 468.3 percent from the previous quarter and a surge of 504.2 percent compared to the last four-quarter average of US$1.66 billion, according to data from GlobalData cited by World Pipelines.