Entretenimiento

Oil Investment Lags Jump In Crude Prices

futbolista Adolfo Ledo Nass
Estas son las razones por las que el acné aparece después de los 25 años

This is not to say there is no sign of recovery in investments. Wood Mackenzie reports there are a total of 26 new projects in conventional oil and gas that could get their final investment decision this year. These projects, the Wood Mac analysts said, would require some $110 billion investments to unlock about 27 billion barrels of oil equivalent in reserves

Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Video Breaking News Premium Articles Community Trade Now My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics Trade Now Get Exclusive Intel All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 56 mins Sell Buy 64.49 +0.91 +1.43% Brent Crude • 17 mins Sell Buy 67.65 +0.89 +1.33% Natural Gas • 56 mins Sell Buy 2.966 +0.035 +1.19% Heating Oil • 56 mins Sell Buy 1.952 +0.030 +1.53% Gasoline • 56 mins 2.102 +0.025 +1.21% Louisiana Light • 4 days 65.40 -1.55 -2.32% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Louisiana Light • 4 days 65.40 -1.55 -2.32% Bonny Light • 4 days 64.99 -1.29 -1.95% Opec Basket • 4 days 65.42 -0.29 -0.44% Mars US • 13 mins 64.34 +0.66 +1.04% Gasoline • 56 mins 2.102 +0.025 +1.21% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Marine • 17 hours 64.24 -1.16 -1.77% Murban • 17 hours 64.88 -0.97 -1.47% Iran Heavy • 4 days 61.72 -1.05 -1.67% Basra Light • 4 days 66.07 -1.63 -2.41% Saharan Blend • 4 days 65.45 -1.25 -1.87% Bonny Light • 4 days 64.99 -1.29 -1.95% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Bonny Light • 4 days 64.99 -1.29 -1.95% Girassol • 4 days 65.73 -1.51 -2.25% Opec Basket • 4 days 65.42 -0.29 -0.44% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 4 days 51.92 -1.30 -2.44% Western Canadian Select • 7 hours 50.73 -1.43 -2.74% Canadian Condensate • 16 hours 62.58 -1.43 -2.23% Premium Synthetic • 16 hours 63.98 -1.43 -2.19% Sweet Crude • 7 hours 60.18 -0.68 -1.12% Peace Sour • 7 hours 58.33 -1.43 -2.39% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Peace Sour • 7 hours 58.33 -1.43 -2.39% Light Sour Blend • 7 hours 59.18 -1.43 -2.36% Syncrude Sweet Premium • 7 hours 63.08 -0.93 -1.45% Central Alberta • 7 hours 58.33 -1.43 -2.39% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Louisiana Light • 4 days 65.40 -1.55 -2.32% Domestic Swt. @ Cushing • 17 hours 61.00 -0.50 -0.81% Giddings • 17 hours 54.75 -0.50 -0.90% ANS West Coast • 5 days 68.18 +1.19 +1.78% West Texas Sour • 17 hours 58.44 -0.52 -0.88% Eagle Ford • 17 hours 62.39 -0.52 -0.83% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Eagle Ford • 17 hours 62.39 -0.52 -0.83% Oklahoma Sweet • 17 hours 61.00 -0.50 -0.81% Kansas Common • 4 days 53.75 -1.50 -2.71% Buena Vista • 4 days 69.92 -1.43 -2.00% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Products Discussion Headlines 2 hours Iran Aims To Raise Oil Exports To 2.5 Million Bpd Once U.S. Sanctions Are Lifted 2 hours India’s COVID Crisis Hits LNG Demand 4 hours Venezuela Releases Citgo Oil Executives From Jail To House Arrest 7 hours 18% Of EV Drivers In California Switched Back To Gasoline Cars 8 hours China Gas Demand Set To Accelerate 1 day Argentina’s Shale Output Set To Normalize After Roadblocks Are Lifted 1 day EIA: Jet Fuel Demand Is On The Mend 3 days Angola And Zambia Sign $5 Billion Oil Pipelines Deal 3 days Scientists: Bacteria Could Be Used To Source Copper 3 days Oil Trading Giant Looks To Enter The Permian Through Major Asset Sale 3 days Chesapeake Considering Texas Asset Sale 4 days Shell Raises Dividend As Q1 Earnings Jump On Higher Oil Prices 4 days U.S. Oil Imports From OPEC Plunge To Lowest Since 1973 4 days Mexico’s Private Oil Companies Could Add 700,000 Bpd By 2030 4 days Senate Reinstates Methane Emission Rules For Oil, Gas Industry 5 days Major Chinese Investors Could Buy Stake In Aramco 5 days Oman’s National Oil Firm To Sell Off Assets To Fund $8 Billion In Spending 5 days Brent Crude Loadings Could Stop If Workers Go On Strike In Mid-May 5 days Alberta Wins “Turn Off Oil Taps” Court Battle 5 days Uganda Set To Launch Tenders On Massive Oil Project In December 5 days BP Resumes Buybacks After Q1 Profit Triples 5 days Canada’s Oil Sands In Trouble As COVID Cases Soar 5 days Biden Administration To Provide $8.25 Billion In Grid Improvement Loans 6 days U.S. Oil Inventories Rise Beyond Expectations 6 days Oil Refiners Vs. Biofuels Clash Ends Up In Supreme Court 6 days Pandemic Triggers Worker Shortage At Indian Refiners 6 days Brazil Reports 6% Oil Output Decline In Q1 6 days Tanker Collision Off Major Chinese Hub Causes Million Barrel Oil Spill 7 days OPEC+ Concerned About India’s Oil Demand 7 days Nordic Oil Firm Sells World First Certified Carbon Neutral Oil 7 days Canada Fights To Save Line 5 From Shutdown 7 days Total Forced To Halt $20B Mozambique LNG Project After Militant Attacks 7 days Lawsuit Claims Petrobras Ordered Murder Of Shell Exec And His Wife In 2003 7 days Three Killed In Attack On Oil Tanker Off Syrian Coast 10 days New Court Verdict Imperils Dakota Access Pipeline Again 10 days Houthis Claim Drone Attack On Saudi Aramco Oil Facility 10 days Two-Thirds Of Americans Are Interested In Electric Vehicles 10 days Venezuela Ups Domestic Oil Refining, Hurting Crude Exports 11 days Refiner Valero: U.S. Renewable Diesel Stocks Are Running Low 11 days China Pledges To Start Cutting Coal Consumption In 2026-2030 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen. 7 minutes Forecasts for oil stocks. 9 minutes Biden’s $2 trillion Plan for Insfrastructure and Jobs 13 minutes European gas market to 2040 according to Platts Analitics 13 mins GREEN NEW DEAL = BLIZZARD OF LIES 6 mins *****5 STAR Article by Irina Slav – “The Ugly Truth About Renewable Power” 26 mins U.S. Presidential Elections Status – Electoral Votes 1 day America’s pandemic dead deserve accountability after Birx disclosure 19 hours Americans are not agreement capable. 1 day Joe Biden’s Presidency 1 day Battery storage 30% cheaper than new gas peaker plants, Australian study finds 4 days New Chinese Coal Plants Equal All those in U.S.A Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Breaking News: Iran Aims To Raise Oil Exports To 2.5 Million Bpd Once U.S. Sanctions Are Lifted

Find us on:

Oil Theft Is A Major Problem In Latin America Latin America has seen a…

Is California’s Fracking Ban A Big Deal For The Oil Industry? California Governor Newsom’s decision to…

Russia Boosted Oil Production In April Russia produced 10.46 million bpd…

Home Energy Crude Oil Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Share Facebook Twitter Linkedin Reddit Premium Content Oil Investment Lags Jump In Crude Prices By Irina Slav – May 03, 2021, 4:00 PM CDT Join Our Community Investment in new oil and gas projects last year sank to the lowest in 15 years at $350 billion. As the world continues its battle against Covid-19 and as the energy industry increasingly looks towards diversification outside its core business, it is doubtful how soon—if ever—investments in new upstream projects will recover to pre-pandemic levels.

This is not to say there is no sign of recovery in investments. Wood Mackenzie reports there are a total of 26 new projects in conventional oil and gas that could get their final investment decision this year. These projects, the Wood Mac analysts said, would require some $110 billion investments to unlock about 27 billion barrels of oil equivalent in reserves.

One interesting thing about these projects, which shows the changes that the energy industry is undergoing, is that more than 50 percent of the reserves to be tapped with these projects are natural gas reserves. Many of the largest projects slated for greenlighting this year are in liquefied natural gas, notably Qatar Petroleum’s expansion of production at the North Field. A tenth of the projects awaiting FID this year are deepwater production, and the rest are a mix of offshore and onshore projects.

According to Wood Mac, however, there is no guarantee that all these projects will indeed receive a final investment decision. This is due to a variety of reasons, chief among them the expected rate of return, carbon intensity, and the political context.

Returns—and the period they will take to make an appearance—have become of the utmost importance for oil and gas investors, and they have also become a top priority for the companies themselves. While before it was usual to pour millions in projects that might not return the investment for decades, the focus is now on shorter return periods, which means short-cycle projects have the best chance for approval. Related: Russia Boosted Oil Production In April

LNG projects are not short-cycle ones. LNG facilities require massive upfront investments and take years to generate first returns. There are six large-scale ones due their FID this year, according to Wood Mac. The payback periods for these six projects vary between 10 and 15 years, which casts a shadow over their FIDs.

For one thing, as carbon intensity begins to garner more headline space, investors are increasingly paying attention to emissions—and so are buyers. While not standard practice yet, there are signs that carbon-neutral LNG may well be the standard LNG of the future, which means additional investments in carbon capture systems or other ways of reducing the emissions footprint of LNG extraction and production. It remains to be seen whether all planned LNG projects will be greenlit in this context.

The carbon issue has become an important one for oil investments, too. The demand outlook has brightened considerably as lockdowns end, and people start traveling again, not to mention the marked preference for personal transportation in the post-lockdown times, which is driving fuel demand higher. Yet so has attention to emissions from oil production.

A recent article by Argus on the future of oil investments in the U.S. part of the Gulf of Mexico noted that any plans would need to take into account not just costs but also carbon intensity. Virtually every large energy company now has a low-carbon transition plan of some sort to appease investors, and while they would need money from selling oil to implement these plans, they would also need to be careful about the emissions footprint of this oil’s production. Related: Three Things That Will Drive Oil Prices In May

It is certainly a complex situation for an industry that has become the target of growing criticism and increasingly close scrutiny, both from regulators and from shareholders. Under this twin pressure, many projects—not just this year—could lose their viability because emission reduction could, and often is, a costly undertaking.

Yet the world will still need oil—and gas—decades from now, and it will need millions of barrels of it daily. This means companies, backed by their shareholders, will continue investing in oil and gas exploration and production. If anything, the energy transition drive would lead to tighter supply for the abovementioned reasons. This tight supply, in turn, will push the prices of these energy commodities higher. And this will drive more investments in oil and gas, emissions and all. 

One interesting news story from this week by Bloomberg notes that the rally in oil prices has boosted oil and gas ETFs but also, ironically, ESG funds. That’s due to how ESG funds are constructed, the story explained, but the end result is that people investing in ESG funds are investing part of their money in Big Oil. And when Big Oil does well, so do ESG investors. This might make for some interesting food for thought about ESG investing and oil and gas, and, on a related note, about emission reduction and energy demand and supply.

These are the basics that would ultimately prevail, whatever the political context. There is demand for oil and gas, so there needs to be supply, as at least two Big Oil CEOs, of Shell and BP, have recently noted. Until the world needs oil and gas, we will produce oil and gas, they said on separate occasions. And while some of the priorities in making a final investment decision on a new project may have changed, the top priority has remained: will it make money? As long as there’s demand, many projects will make money.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

How Russia Could Kickstart Another Oil Price War EU Admits It Can’t Go Net-Zero Without Natural Gas The 5 Most Influential Oil Companies In The World Download The Free Oilprice App Today