Colombia O&G methane emissions fall by 16pc
Colombia's oil and gas sector reduced methane emissions by over 16pc from 2019-2023, the country's petroleum association said.
Methane emissions totaled 75,000t in 2023, down from 90,000t in 2019, according to data certified by the UN's Oil and Gas Methane Partnership (OGMP 2.0) Initiative, which is aimed at providing transparency to emissions reporting.
Colombia's energy sector committed to cut methane emissions by 51pc from 2019 levels, to around 44,100t by 2030.
Methane is the second largest cause of global warming after CO2.
In 2022, Colombia issued a regulation aimed at eliminating flaring and fugitive methane emissions from upstream oil and gas activities. Oil companies reinject most of the natural gas they produce. They have also implemented infrared cameras, drones and other monitoring technologies to detect methane emissions.
Colombia's energy sector accounts for about 31pc of country's total emissions, with just 5pc from the oil and gas industry, according to Colombian petroleum association president Frank Pearl. Globally, 73pc of emissions are generated by energy, he said.
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VLCC seeks diesel loading in US Gulf coast
VLCC seeks diesel loading in US Gulf coast
New York, 26 August (Argus) — A very large crude carrier (VLCC) is available to load ultra-low sulphur diesel in the US Gulf coast, with the 270,000t cargo size likely to draw cargoes away from the 38,000t medium range (MR) tanker-dominated market for US Gulf coast refined products shipments, if its owner can secure a deal. The operator of the Nissos Kea VLCC, owned by Okeanis Eco Tankers (OET), began seeking a diesel cargo in the US Gulf coast on 23 August, and the vessel remained available on Monday, according to shipbrokers. It is uncertain whether the vessel can secure a deal for a diesel voyage. Another of OET's VLCCs, the Nissos Kikouria, similarly cleaned up for a potential diesel loading from the Mideast Gulf in late July, but ended up loading a crude cargo from the region instead. The rare crossover in the US Gulf coast from the crude vessel segment comes in the wake of VLCC owners cleaning their vessels thoroughly to ship diesel cargoes into Europe around the Cape of Good Hope from the Mideast Gulf amid the ongoing Houthi rebel threat for Suez Canal transits. The Argus -assessed rate for a US Gulf coast-Europe voyage loaded onto an MR tanker stands at $31.12/t, while the rate for a VLCC carrying a typical 270,000t crude cargo to Europe from the US Gulf coast is at $11.48/t based on a lumpsum rate of $3.1mn, without considering lightering costs necessary to physically load the vessel and likely demurrage costs associated with that loading. The rate proposed for the potential diesel cargo loaded onto the Nissos Kea was at $3.95mn on Friday, according to some shipbrokers, which could reflect a premium sought by the shipowner for the atypical loading. A major US refiner considered chartering the VLCC to take diesel, the refiner confirmed to Argus today, while noting that the cost discussed for the Europe-bound voyage was well below $3.95mn. The global VLCC market has been under pressure since mid-May amid weaker crude demand in Asia-Pacific, especially in China, the world's biggest oil importer. VLCC rates from the US Gulf coast to Europe fell to $2.7mn on 13 August, down from from $4.95mn on 20 May, which could entice shipowners to consider more lucrative opportunities in the refined products market. European buyers are not the only ones in the market for large diesel cargoes loaded onto crude tankers. Petrobras shipped two diesel cargoes loaded onto Suezmax crude tankers from the Mideast Gulf to Brazil in late July. Brazilian buyers showed a propensity for larger cargoes as recently as 20 August, when Brazil's demand for long range 1 (LR1) clean tankers from the US Gulf coast boosted physical activity for the 60,000t tanker segment to its highest in 2024 for a single day. The jump in demand from Brazil for US Gulf coast-loading products comes as Russian focuses on domestic stockpiling, making US Gulf coast-loadings much more competitively priced for Brazilian buyers than during most of the period since Russia's invasion of Ukraine in February 2022. By Ross Griffith and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil expects R2 trillion in energy transition
Brazil expects R2 trillion in energy transition
Sao Paulo, 26 August (Argus) — Brazil launched its national policy for energy transition, expecting to attract R2 trillion ($364.2bn) in investments in the area over the next 10 years, according to energy minister Alexandre Silveira. The policy establishes guidelines for the country's energy transition, Silveira said, adding that Brazil will be a leader of the green economy. "[The policy] involves wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel, green hydrogen," he said. "It is an opportunity to boost local production." The two-pronged policy includes the national energy transition plan, which will work alongside other government initiatives, such as the growth acceleration program , the climate plan, new industry Brazil and the pact for ecological transformation. It will also count with the support of the International Energy Agency, Brazil's development bank Bndes, energy research firm Epe and the Getulio Vargas Foundation research institute. The national energy transition plan will focus on getting support from industry participants in the transportation, electrical, mineral and oil and natural gas sectors, and creating legal and regulatory frameworks, to "combat energy poverty and inequalities and create an attractive environment for investments." The second prong is the national energy transition forum, in which public and private sector participants will get a chance to debate and contribute to the policy. Brazil's national energy policy council CNPE approved the plan in a meeting on Monday with President Luiz Inacio Lula da Silva and ministers such as Silveira, environmental minister Marina Silva and finance minister Fernando Haddad. "We are looking to the future," Silveira said. "The energy transition must be fair, inclusive and balanced." By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil signs decree to increase natural gas sales
Brazil signs decree to increase natural gas sales
Rio de Janeiro, 26 August (Argus) — Brazil's federal government adopted a decree today to increase natural gas deliveries to the market, hoping to reduce prices. President Luiz Inacio Lula da Silva and mines and energy minister Alexandre Silveira signed the decree during a national energy policy council CNPE meeting. The decree is based on Lula's gas for jobs program and would allow hydrocarbon regulator ANP to order companies to increase natural gas production for sale to the market. Many companies working in Brazil's pre-salt fields choose instead to re-inject gas to optimize oil recovery. By Betina Moura Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US shale firms boost output goals on efficiency gains
US shale firms boost output goals on efficiency gains
New York, 26 August (Argus) — The efficiency gains that were one of the key drivers behind last year's surprise jump in US crude output are now back, and are spurring shale producers to increase 2024 targets just as Opec is gearing up to unwind its supply cuts. Upward revisions from publicly-traded US operators including Diamondback Energy, Devon Energy and Permian Resources are modest for the most part, but they may still be enough to ruffle some feathers in Vienna as Opec+ prepares to start reversing a combined 2.2mn b/d of production cuts in the coming months. "With domestic energy production a key topic in the 2024 US presidential election and Opec+ perhaps having prematurely expected lower shale oil volumes, [second-quarter] earnings serve as a reminder that shale will continue to be a growing, albeit perhaps more predictable, supply source on the global stage," consultancy Rystad senior analyst Matthew Bernstein says. Overall US crude production growth is still expected to slow in 2024 after last year's 1mn b/d gain defied all expectations. But improved techniques that have sped up the drilling process are helping operators get more bang for their buck, and are leaving more cash on the table for shareholder returns. Such gains are also bolstering the case for further consolidation in the shale patch as firms benefit from lower costs for oil field services. "What was unexpected is the scale of efficiency gains that have helped deliver lower [capital expenditure] as operators drop rigs and hydraulic fracturing (frac) spreads," analysts at bank Jefferies say. The gains have come from drilling three-mile lateral wells along with the adoption of electric fracking fleets, which has increased pumped hours and led to faster cycle times when it comes to well completions. Diamondback typifies the new industry spirit after boosting its full-year production outlook despite reducing drilling activity to 10 rigs from 12 and its frac fleet count to three from four. "We are clearly doing more with less and becoming more operationally efficient each quarter," chief executive Travis Stice says. Frac competition Healthy competition among crews is driving productivity gains, Devon Energy says. The producer has 16 rigs and three frac crews active in the prolific Permian basin of west Texas and southeast New Mexico. "We rack and stack all 16 rigs every day on how they're doing," chief operating officer Clay Gaspar says. "There's a first place and there's a last place... and those companies know, those engineers know exactly where they stand." The US majors are also getting in on the act, with Chevron upping its full-year production growth outlook for the Permian to about 15pc from 10pc, after flagging new techniques such as the ability to frac three wells at the same time. "We're one of the first operators to deploy triple-frac, delivering cost reductions of more than 10pc and shortening completion times by 25pc," chief executive Mike Wirth says. The downside to efficiency gains can be seen when it comes to natural gas, where production remains robust even as activity slows in response to lower prices. "But the industry appears ready to respond by pulling the curtailment lever again," bank Citigroup analysts say. US independent EOG Resources expects oil output from the lower 48 states will exit this year the same as at the end of 2023, with limited gains expected for total US supplies from offshore operations. "Activity levels, as reflected in the rig count, indicate continued lower oil production growth through to at least mid-2025," EOG chief executive Ezra Yacob says. Yet that did not stop the company from increasing its own full-year output guidance while keeping spending unchanged. By Stephen Cunningham US tight oil production Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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