Generic Hero BannerGeneric Hero Banner
Latest market news

US backs Opec calls for more oil, gas investment

  • Market: Crude oil, Emissions, Natural gas
  • 31/10/22

The US' top energy envoy Amos Hochstein today supported calls for investment in oil and gas to increase globally alongside spending on the transition to a lower-carbon energy system.

"We hope this happens around the world," Hochstein told the Adipec conference in Abu Dhabi. "Increased investment in production, investment in refining capacity and… at the same time additional investment in the [energy] transition."

After weeks of tense exchanges between the US and Opec linchpin Saudi Arabia over the wider Opec+ group's decision to lower crude output quotas, Hochstein's comments put Washington on the same page as Opec, which has long called for increased oil and gas investment. UAE energy minister Suhail al-Mazrouei told the Adipec conference today higher oil and gas spending will help the world navigate the energy transition and reduce the risk of today's supply crunch being experienced in the future.

Al-Mazrouei was at pains to stress that increased oil and gas spending is not just an issue for Opec+ producers. "We in the UAE, as well as our fellow producers in Opec+, are keen on supplying the world with the [oil] requirements it needs. But, at the same time, we are not the only producers," he said. "Others also need to do their part in investing and encouraging investments."

Opec+ — which groups Opec countries with 10 non-Opec producers led by Russia — is doing its part when it comes to investing in hydrocarbons, al-Mazrouei said. Saudi Arabia and the UAE, in particular, are pursuing aggressive upstream expansions that should deliver close to 2mn b/d of additional crude capacity before the end of the decade.

Prior to Russia's invasion of Ukraine, many governments in Europe and the US were pushing for a more urgent commitment to move away from fossil fuels. But Hochstein today insisted that energy investment is needed across the board. Spending on fossil fuels and cleaner energies is "not contradictory", he said. "They are just two different timelines," he said. "It may be that our climate goals are met by 2035 or 2050. But to get to those goals, we had to invest yesterday."

The Opec+ group's decision earlier this month to lower its collective crude output target by 2mn b/d from November was met with heavy criticism from Washington, with US president Joe Biden describing the cut as short-sighted at a time when consumers are struggling with high energy prices.

"The price of energy is a critical piece for global economic growth, because so much of what we do is dependent on that," Hochstein said today, adding that a prolonged period of higher oil prices could hamper economic growth prospects. "Energy has to be priced in a way that allows for economic growth," he said. "If not, they will accelerate the economic downturn, which ultimately is the one thing that will be terrible for energy demand itself."


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
18/03/25

State of emergency after Nigeria pipeline attack:Update

State of emergency after Nigeria pipeline attack:Update

Updates with state of emergency declared London, 18 March (Argus) — The Nigerian government has declared a state of emergency in Rivers State, after an apparent attack on the Trans-Niger Pipeline (TNP) halted crude movements to Nigeria's Bonny Light export terminal. A fire occurred on the pipeline at the border of the Kpor and Bodo communities, and the pipeline's management has shut down the affected section, the Rivers State police said. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. Nigerian President Bola Tinubu today said the resumption of "disturbing incidents" had happened "without the [state] governor taking any action to curtail them". Tinubu suspended the Rivers State governor and his deputy and said the region will be under federal control, effective immediately. It is unclear what if any effect this will have on the region's oil production, a source within state-owned oil firm NNPC told Argus . But it appears the pipeline attack has halted loadings at the Bonny terminal. The Almi Voyager was the most recent tanker to load there, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added that loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

German climate fund draws interest from Africa


18/03/25
News
18/03/25

German climate fund draws interest from Africa

Berlin, 18 March (Argus) — The €100bn climate action allocation in Germany's proposed €500bn infrastructure fund is a "very strong signal" which could help Africa with the huge challenges the continent faces in mobilising private capital, delegates heard at the German-African Energy Forum in Berlin this week. Germany's €100bn climate fund "couldn't come at a better time", Johannesburg-based Africa Investor Group chief executive and chairman Hubert Danso said, given South Africa's presidency of the G20 and the presidency's focus on reducing the cost of capital for developing countries through the planned set-up of a "cost of capital commission", which Danso said is addressing the "unjustified" premiums paid by developing countries. Germany's budget allocation could "fold into" the work of the G20 and the run-up to the UN Cop 30 climate summit in Belem, Brazil, later this year, Danso suggested. Michael Kellner, junior minister at the economy and climate ministry of Germany's outgoing government, told delegates that the multi-billion euro package will provide "much more finance for fighting climate change". Kellner, a member of the Green Party which lost the election but was instrumental in pushing through the €100bn allocation, said that the finance will also be used outside Germany. He pointed to Germany's "flagship" green hydrogen import scheme, H2Global, which is likely to see more co-operation with Africa. Kellner flagged the "impressive" production of green iron in Namibia, which could be of interest to German carmakers. "We will be watching [the €100bn climate allocation] closely," Danso told Kellner and representatives from Germany's development ministry. The main challenge, and opportunity, is to make developing countries' nationally determined contributions (NDCs) to the Paris climate agreement more "investable", Danso said. The next round of NDCs, to be submitted this year, must become more "strategic" and "programmatic", Danso urged. In this context, NDCs can drive carbon markets by opening up collaborative approaches, consultant CarbonWise founder and chief executive Toni Heigl told delegates. If a country decides to exceed its NDC, for instance by pushing certain activities that are dependent on external funds, this "helps to trigger the funding", Heigl said. Carbon markets offer "vast" opportunities in Africa, especially the schemes under Article 6 of the Paris deal, Heigl said. With the final Article 6 rules passed at Cop 29 last year , most companies still "underestimate" the potential of these carbon markets, Heigl said, despite Article 6 credits being "8-10 times" more valuable than those under the voluntary carbon market. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Norway's Equinor sells first Johan Castberg crude cargo


18/03/25
News
18/03/25

Norway's Equinor sells first Johan Castberg crude cargo

London, 18 March (Argus) — Norway's state-controlled Equinor has sold its first cargo of crude from the new Johan Castberg field in the Barents Sea to Spanish firm Repsol ahead of first oil next month, according to market sources. Repsol will probably run the crude at its 220,000 b/d Bilbao refinery, the sources said. The Johan Castberg field had been expected to come on stream in the final quarter of 2024, but start-up was delayed, first to January-February this year because of bad weather, and more recently to April. Equinor delayed the first loading of Johan Castberg crude to 14-17 April from 21-24 February. The April export programme comprises four 700,000 bl cargoes, with Equinor loading three and Johan Castberg partner Var Energi loading the fourth. Three of the April cargoes are unsold, and Equinor is planning to issue separate tenders for them. It is not immediately clear what price the first cargo fetched. Traders have said previously that the grade could be priced at a premium to sweet middle distillate-rich Norwegian grades such as Troll or Alvheim. Johan Castberg crude will also be rich in middle distillates and have have a gravity of 34.7°API with a sulphur content of just 0.16pc when the field starts production, according to an assay. The field is expected to produce 220,000 b/d at plateau and has estimated recoverable reserves of 450mn-650mn bl. Equinor operates Johan Castberg with a 50pc stake, Var Energi has 30pc and Norwegian state-owned Petoro has 20pc. By Lina Bulyk and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trans-Niger Pipeline fire halts crude to Bonny terminal


18/03/25
News
18/03/25

Trans-Niger Pipeline fire halts crude to Bonny terminal

London, 18 March (Argus) — A fire on the Trans-Niger Pipeline (TNP) appears to have halted crude movements to Nigeria's Bonny Light export terminal. The Rivers State police said a fire occurred on the pipeline at the border of Kpor and Bodo communities. It said the pipeline's management shut down the affected section. Operator Renaissance Africa said it is responding to an incident. The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC . The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. A source within state-owned NNPC told Argus the Almi Voyager was the most recent crude tanker to load at the Bonny terminal, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion. Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added loading operations at the export terminal were already running up to two weeks behind schedule. By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump set to meet with oil, gas executives


17/03/25
News
17/03/25

Trump set to meet with oil, gas executives

Washington, 17 March (Argus) — President Donald Trump is scheduled to meet this week with US oil and gas executives to discuss policies that would help achieve "energy dominance", according to an industry group participating in the meeting. Trump and his team are scheduled to meet on Wednesday with executives that serve on the leadership committee of the American Petroleum Institute (API) and staff from the influential industry group, API said. Trump has enjoyed close ties with many oil executives, who have supported his regulatory initiatives and tax cuts, even as his tariff policies have raised concerns among some industry officials. "We appreciate the opportunity to discuss how American oil and natural gas are driving economic growth, strengthening our national security and supporting consumers with the President and his team," API said. The White House did not respond to a request for comment. The upcoming meeting is set to broadly focus on how to achieve Trump's goal for "energy dominance". API last year released a detailed policy roadmap, with plans to scrap regulations that would require more electric vehicles, restart licensing of US LNG export facilities, expand offshore oil and gas leasing, repeal a new $900/t fee on methane leaks, expedite permitting and e retain corporate tax cuts from 2017. The Trump administration has already accomplished some of those policies, and is starting work on others. The White House sees cutting energy prices through deregulation and expanded leasing as part of its strategy to ease inflation. Trump last week said he was "very happy" with oil prices at $65/bl, while US treasury secretary Scott Bessent has set a target of $50/bl. But producers would have to crimp production in the Permian basin at that price, former Pioneer Natural Resources chief executive Scott Sheffield said last week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more