ExxonMobil targets net zero Permian ops by 2030

Spanish Market: Crude oil, Natural gas
06/12/21

ExxonMobil is planning to reach net zero greenhouse gas (GHG) emissions from its operated assets in the Permian basin by 2030 by accelerating and broadening its emission-reduction plans for unconventional operations.

The major said today it will reach those GHG emission-reduction efforts in region straddling New Mexico and Texas by electrifying operations, putting more investments in methane mitigation and detection technology, upgrading equipment, phasing out routine flaring and buying offsets.

By the end of 2021 the company plans to reduce flaring across its Permian operations by more than 75pc from 2019 levels. It plans to end all routine flaring in the basin by the end of 2022, in support of the World Bank's Zero Routine Flaring initiative.

The plans are part of ExxonMobil's latest corporate-wide bid to reduce upstream greenhouse gas emissions intensity by 40-50pc by 2030, compared with 2016 levels. Still, the company has drawn criticism that it is lagging its European rivals in tackling emissions. Think tank Carbon Tracker said ExxonMobil's recently unveiled plans only cover a fraction of total emissions and are inconsistent with the goals of the Paris climate agreement.

By Robert Willis

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15/01/25

US inflation gains, core prices ease in December

Houston, 15 January (Argus) — Headline inflation quickened to an annualized 2.9pc in December from a year earlier but core inflation slowed for the first time since August. The acceleration in the consumer price index (CPI) last month compared with 2.7pc in November, according to the Labor Department. Analysts surveyed by Trading Economics had forecast gains of 2.9pc. Core inflation, which excludes volatile food and energy, slowed to an annual 3.2pc from 3.3pc the prior month. It came in under analysts' forecasts of 3.3pc. Traders raised the probability the Federal Reserve will cut its target rate at the June meeting to about 66pc odds from about 58pc Tuesday, according to CME's FedWatch tool. The Fed in December penciled in two likely quarter-point cuts this year but strong job growth and signs of inflation reigniting have been pushing any likely move back later into the year. The energy index contracted by an annual 0.5pc in December, compared with a 3.2pc decline in November. The gasoline index fell by 3.4pc last month compared with an 8.1pc decline the prior month. Energy services rose by 3.3pc following a 2.8pc gain in November. Services less energy services, considered a core services measure, rose by an annual 4.4pc in December after a 4.6pc gain the prior month. Shelter costs rose by an annual 4.6pc following an annual 4.7pc gain the month prior. Food rose by 2.5pc after a 2.7pc gain. Transportation services rose by an annual 7.3pc in December. For the month, the CPI rose by 0.4pc following a 0.3pc gain in November that followed four months of 0.2pc gains. Energy rose by 2.6pc in December from the prior month, accounting for 40pc of the monthly headline gain, after rising by 0.2pc in November. Core inflation slowed to a monthly 0.2pc gain after four months of 0.3pc gains. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Opec sees 1.4mn b/d oil demand growth in 2026

15/01/25

Opec sees 1.4mn b/d oil demand growth in 2026

London, 15 January (Argus) — Opec's first global oil demand projections for 2026 see consumption growth of just over 1.4mn b/d, roughly the same as its forecast for this year. In its Monthly Oil Market Report (MOMR) today, Opec forecast oil demand growing by 1.43mn b/d to 106.63mn b/d, underpinned by continued "solid economic activity in Asia and other non-OECD countries." Opec sees consumption growing by 1.45mn b/d this year, unchanged from its previous estimate. But it trimmed its 2024 demand growth estimate by 70,000 b/d to 1.54mn b/d, a sixth consecutive monthly downward revision. This brings Opec further in line with forecasters such as the IEA and EIA, but the gap between them remains large, particularly given 2024 has ended. Opec's oil demand growth estimate for 2024 is 600,000 b/d above that of the IEA's 940,000 b/d. And there is now an 850,000 b/d gap between Opec's 2024 total oil demand estimate of 103.75mn b/d and the IEA's 102.9mn b/d. Opec's oil demand growth estimate for 2025 is 400,000 b/d above the IEA's forecast for 1.05mn b/d. China, which has long driven global oil demand growth but whose economy is now slowing, is projected to add 270,000 b/d in 2026, compared with 310,000 b/d in 2025, around 300,000 b/d in 2024 and about 1.4mn b/d in 2023. In terms of supply, the producer group sees non-Opec+ liquids supply growth at 1.1mn b/d, the same as 2025 and again driven by gains from the US, Brazil and Canada. It said non-Opec+ liquids supply increased by 1.3mn b/d in 2024. Opec+ crude production — including Mexico — fell by 14,000 b/d to 40.65mn in December, according to an average of secondary sources that includes Argus . Opec put the call on Opec+ crude at 42.5mn b/d for this year and 42.7mn b/d for next. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Inpex wins Norwegian offshore exploration licences

15/01/25

Inpex wins Norwegian offshore exploration licences

Tokyo, 15 January (Argus) — Japanese upstream firm Inpex has won eight oil and gas exploration permits offshore Norway, expanding its operations in the country, Inpex said today. Inpex was awarded exploration licences PL1263, PL318D, PL1264, PL1257, and PL636D located between the northern North Sea and the southern Norwegian Sea, along with PL 1276, PL1274 and PL1194C in the northern Norwegian Sea through its local subsidiary Inpex Idemitsu Norge (IIN). The successful bid was part of the awards in the pre-defined areas (APA) 2024 licensing round . IIN secured five licenses in the 2023 APA round . The APA rounds are held every year and focus on mature areas of the Norwegian continental shelf. The aim is to facilitate the discovery and production of remaining oil and gas resources in these areas before existing infrastructure is shut down. In the latest round, 33 of the licences are in the North Sea, 19 in the Norwegian Sea and one in the Barents Sea. The latest licences will contribute to expanding its Norwegian business portfolio, Inpex said, given the potential of jointly developing the new assets with existing assets in the surrounding area. The company has continued stable production at the Snorre and Fram oil fields in the northern North Sea. The Japanese firm aims to strengthen its upstream business as part of its long-term strategy, while it invests in renewable energy such as green ammonia. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA warns of supply squeeze from Russia, Iran sanctions

15/01/25

IEA warns of supply squeeze from Russia, Iran sanctions

London, 15 January (Argus) — The IEA sees a slightly tighter oil market this year than it previously forecast and said new US sanctions on Russia and Iran could further squeeze balances. The outgoing administration of US President Joe Biden announced additional sanctions on Russia's energy exports earlier this month, and moved to tighten sanctions on Iran's oil exports in December. "We maintain our supply forecasts for both countries until the full impact of sanctions becomes more apparent, but the new measures could result in a tightening of crude and product balances," the IEA said today in its latest monthly Oil Market Report (OMR). But the effect of incoming US President Donald Trump on Russian and Iranian supply remains a key variable. As things stand, the IEA projects a 720,000 b/d supply surplus this year — showing a well cushioned oil market. This is around 230,000 b/d less than its previous forecast. For 2024, the IEA's balances show a small supply surplus of 20,000 b/d. The Paris-based agency sees global oil supply growing by 1.8mn b/d to 104.7mn b/d in 2025, compared to growth of 1.9mn b/d in its December report. Almost all of the 2025 growth — 1.5mn b/d — will come from non-Opec+ countries such as US, Brazil, Guyana, Canada and Argentina. The IEA continues to assume all current Opec+ cuts will remain in place this year, although the alliance plans to start increasing output from April. The IEA said global oil supply grew by 650,000 b/d in 2024. The agency sees global oil demand growing by 1.05mn b/d in 2025, down by 30,000 b/d from its December forecast. This should see oil demand reach 104.0mn b/d, with most of the gains driven by "a gradually improving economic outlook for developed economies, while lower oil prices will also incentivise consumption." China, which has long driven global oil demand growth but whose economy is now slowing, will add 220,000 b/d in 2025, compared with 180,000 b/d in 2024 and 1.35mn b/d in 2023. But the IEA revised up its oil demand growth estimates for 2024 by 90,000 b/d to 940,000 b/d. This was mostly due to better-than-expected growth in the fourth quarter, which at 1.5mn b/d was highest since the same period in 2023 and 260,000 b/d above than its previous forecast. This increase was mostly due to lower fuel prices, colder weather and abundant petrochemical feedstocks, the IEA said. The IEA said global observed oil stocks increased by 12.2mn bl in November, with higher crude stocks on land and water offsetting refined product draws. It said preliminary data show a further stock build in December. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New York to propose GHG market rules in 'coming months’

14/01/25

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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