Reduce carbon, not fossil fuels: Exxon, Oxy CEOs

: Crude oil, Natural gas
21/03/02

Reducing carbon emissions from fossil fuels, not the actual use of fossil fuels, offers the best way to combat climate change, the leaders of two of the largest US oil and gas producers said today.

ExxonMobil chief executive Darren Woods and Occidental Petroleum chief executive Vicky Hollub both stressed on separate panels during CERAWeek by IHS Markit that the world still needs oil and gas. So instead of attacking fossil fuels, they both argued, governments can mitigate global warming by helping the industry to develop carbon capture and storage technologies and strengthen markets where polluters buy and sell the rights to emit carbon.

"Let's focus on what the issue is," Woods said. "It's emissions."

President Joe Biden's decisions to temporarily freeze drilling in federal lands and waters and kill the Keystone XL pipeline have unnerved oil and gas producers. The government is also considering a tax on imported goods manufactured in countries that do not tax carbon.

In addition, ExxonMobil, which hosts its annual investors presentations tomorrow, has been under pressure by activist firm Engine No. 1 and the California state teachers pension fund to change its practices.

Although ExxonMobil recently announced a new business unit called Low Carbon Solutions, Engine No. 1 said the US major needs to simultaneously invest in clean energy projects and completely offset carbon emissions over the next 30 years like other producers have promised to do.

Woods told CERAWeek that ExxonMobil sees promise in hydrogen, but that energy source is still far from ready. But when it comes to carbon capture, he sees a number of factors coming together that makes the technology a realistic option: government support, better economics to scale, development of markets to price carbon, and venture capital firm investments.

ExxonMobil "can leverage those converging forces," he said.

Occidental is currently building what will be the world's largest carbon capture and storage plant in the Permian basin. The independent hopes to complete the construction of the plant, designed to remove and store 1mn metric tons/yr of CO2, by 2024.

Hollub said Occidental's carbon business, which also includes carbon capture and enhanced oil recovery, is getting close to operating as a self-sustaining, profitable business.

"We should not be talking about eliminating fossil fuels," she said. "We should be talking about eliminating emissions."

By Thomas Lee

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25/04/16

Iran says uranium enrichment 'not up for negotiation'

Dubai, 16 April (Argus) — Iran's foreign minister Abbas Araqchi said uranium enrichment is non-negotiable after US special envoy to the Middle East Steve Witkoff suggested any new nuclear deal would require a halt. "We are open to acknowledging and answering concerns [about our nuclear programme] in order to help build trust," Araqchi told reporters in Tehran. "But the core issue of Iran enriching uranium is not up for negotiation." Araqchi was responding to questions about a social media post made by Witkoff on 15 April in which he suggested that any new nuclear deal would require Iran to "stop and eliminate" its enrichment of uranium. In a television interview the day before, Witkoff indicated that Washington just wanted Iran to abide by the 3.67pc enrichment threshold that was agreed in the previous nuclear deal that US president Donald Trump pulled out of in 2018. Witkoff's apparent shift in stance was echoed by White House press secretary Karoline Leavitt on 15 April, who said: "The president does not want to see Iran have a nuclear programme. He does not want Iran to obtain a nuclear weapon." Araqchi, who is leading the Iranian delegation in the talks, said such "contradictory" comments by US officials are "not helpful". Aracqhi and Witkoff are due to meet on 19 April for a second round of talks, which were initially scheduled to be held in Oman but and now due to take place in Rome, according to Iran's state broadcaster IRIB. Both Tehran and Washington described the first round of talks in Oman on 12 April as "positive and constructive." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Opec+ overproducers issue new compensation plans

25/04/16

Opec+ overproducers issue new compensation plans

Dubai, 16 April (Argus) — Seven of the eight Opec+ members that began a gradual unwinding of a combined 2.2mn b/d output cut this month have submitted updated schedules for how they plan to compensate for producing above their respective quotas since the start of 2024. The schedules, released by the Opec secretariat today, show Iraq, Kazakhstan, Russia, the UAE, Kuwait, Oman and Saudi Arabia are planning to produce around 305,000 b/d below their combined production targets on average from April through June 2026 ( see table ). This is to compensate for exceeding their production targets by a cumulative 4.573mn b/d between January 2024 and March 2025, the secretariat said. This figure does not represent a monthly average, but rather the sum of the monthly amount by which the overproducers surpassed their respective output ceilings in this period. It works out to an average monthly overproduction of 305,000 b/d. Algeria is the only country in the group of eight that did not overproduce in that stretch, and therefore does not have to compensate. The previous schedule , which was published in the third week of March, envisaged the seven producing around 263,000 b/d below their combined targets on average from March through June 2026. That was to clear 4.203mn b/d of cumulative overproduction between January 2024 and February 2025, or 300,000 b/d on average per month over that period. This latest schedule factors in the decision by these seven countries, and Algeria, earlier this month to speed up the return of a 2.2mn b/d cut by lifting the group's overall production target in May by 411,000 b/d ꟷ three times more than it had originally planned. If implemented fully these compensation cuts should at least largely offset much of the production increases that would be allowed by the Opec+ group of eight's planned unwind through to the second half of 2026. At most, the compensation cuts would more than offset the planned increases for some months, including for this month. But with serial over-producers Iraq and Kazakhstan responsible for delivering the biggest chunk of these compensatory cuts through to the middle of next year, there is no guarantee of full implementation. By Nader Itayim Opec+ overproduction compensation plan* b/d Month Iraq Kuwait Saudi Arabia UAE Kazakhstan Oman Russia Total Apr-25 120 8 15 5 63 5 6 222 May-25 140 15 0 10 116 12 85 378 Jun-25 140 23 10 132 15 111 431 Jul-25 135 30 10 126 17 137 455 Aug-25 130 38 10 141 19 163 501 Sep-25 135 37 10 135 14 189 520 Oct-25 135 10 160 15 320 Nov-25 135 20 114 269 Dec-25 130 20 69 219 Jan-26 125 33 49 207 Feb-26 125 33 38 196 Mar-26 124 33 40 197 Apr-26 120 57 38 215 May-26 120 62 42 224 Jun-26 120 63 36 219 Average reduction 305 *monthly reduction pledge in addition to existing targets Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA slashes 2025 global refinery runs growth forecast

25/04/15

IEA slashes 2025 global refinery runs growth forecast

London, 15 April (Argus) — The IEA has sharply lowered its forecast for refinery run growth this year, citing escalating tensions in global trade. In its latest Oil Market Report (OMR) published today, the energy watchdog said it expects growth in global crude runs of 340,000 b/d, down by 40pc from its previous forecast of 570,000 b/d. The IEA sees total global crude runs averaging 83.2mn b/d this year. Increased throughput from non-OECD countries still drives this year's growth, with the IEA expecting an increase of 830,000 b/d to 47.6mn b/d. The IEA has not adjusted this figure, as stronger runs in China through the first quarter of this year and higher Russian forecasts have offset downgrades in other non-OECD countries. Chinese crude runs in January and February averaged 15.2mn b/d, around 470,000 b/d higher than the IEA's forecast, it said. The body raised its Russian forecasts from the second quarter as Ukrainian attacks on Russian infrastructure have slowed. The IEA forecasts OECD refinery runs will fall by 490,000 b/d this year because of refinery closures, resulting in a cut from its previous forecast of 100,000 b/d, to 35.6mn b/d. OECD Europe runs are forecast to fall by 310,000 b/d on the year to 10.9mn b/d. OECD crude runs rose by 200,000 b/d on the year in February, 40,000 b/d higher than the IEA expected. Throughput was particularly weak in the first quarter of 2024, when extreme cold cut US run rates. In Mexico, state-owned Pemex's 340,000 b/d Olmeca refinery has still not reached stable operations having started up in mid-2024. The refinery ran no crude in January because of crude quality constraints, the IEA said, and February output there was 7,000 b/d. The IEA estimates the refinery's second crude unit will come online in the fourth quarter. The IEA said refiners will add more than 1mn b/d of global capacity in 2026, but it forecast growths in crude runs of only 300,000 b/d for that year. Assuming all new and expanded refineries come into operation by then, producers will have to cut runs at older refineries, it said. Capacity additions will be largest in Asia-Pacific. The IEA expects China's 320,000 b/d Panjin refinery to come online in the second half of 2026, and for producers to add capacity of 480,000 b/d in India. It sees growth in crude runs as focused on the Mideast Gulf, and runs across the OECD falling. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

VG begins contracted LNG deliveries at Calcasieu Pass

25/04/15

VG begins contracted LNG deliveries at Calcasieu Pass

Houston, 15 April (Argus) — US LNG exporter Venture Global began deliveries of long-term contractual cargoes at its 12.4mn t/yr Calcasieu Pass terminal in Louisiana today after the facility started commercial operations, more than three years after producing its first LNG. "We are excited to reach this milestone and are grateful for our regulators and supply chain partners who have worked with our team to reach commercial operations as efficiently and safely as possible," said Venture Global chief executive Mike Sabel. But the long-delayed and highly contested start comes amid ongoing arbitration proceedings against Venture Global, which some customers including Shell, BP, Italian utility Edison and Spanish company Repsol argue was unjustified in deferring the contracted supplies (see offtakers table) . The LNG exporter originally sought to begin commercial operations in 2022 but cited impacts from Covid-19, two hurricanes and "major unforeseen manufacturing issues" related to one of the plant's heat recovery steam generators, equipment that helps power the facility. Because several of the plant's facilities, including the power island, were not officially placed in service with federal authorization, Venture Global maintained that the plant was not commercially operating — despite producing 444 cargoes totaling 28.2mn t of LNG (about 1.28 trillion cubic feet of natural gas) since its first in March 2022, according to Vortexa data. The start-up Tuesday comes on the final day before Venture Global could have lost control of the project. The company said in a December filing with the US Securities and Exchange Commission (SEC) that the agreement under which it had financed debt requires commercial operations to be completed by 1 June 2025. Should commercial operations have not begun 45 days prior to this date — which is Tuesday — then the agreement defaults, allowing "certain investors" to exercise control over the project. Before Tuesday, the company instead sold cargoes on the spot market for prices much higher than the terms of its offtake agreements. Calcasieu Pass produced its first LNG in January 2022 and exported its first cargo on 1 March 2022 — less than a week after Russia, then a key supplier of gas to Europe, invaded Ukraine. The facility produced its first LNG just 29 months after reaching a final investment decision (FID) on the project, compared with the industry average of four to five years. The timing of the project's start dovetailed with the war-driven volatility in the European gas market, helping Venture Global realize much larger profits than it would have under contracted volumes. The firm's liquefaction fees in 2023 and 2024 averaged $12.23/mn Btu and $7.28/mn Btu, respectively, compared with the average $1.97/mn Btu in its long-term deals, according to a company presentation in March. The lengthy commissioning process generated $19.6bn in revenue by the end of September 2024, Venture Global said in the December SEC filing. Shell estimated that Venture Global sold cargoes in 2023 at an average of $48.8mn per shipment, "raking in billions of dollars while shirking its contractual obligations", according to a filing with US energy regulator FERC in March 2024. Venture Global said in March that the customer arbitration cases are not likely to be resolved until after 2025. LNG facilities usually produce commissioning cargoes for a few months before beginning long-term contracts. But Venture Global has said its unique plant design, which uses a higher number of smaller, modular liquefaction trains compared with traditional trains, requires a longer start-up process. Calcasieu Pass LNG consists of 18 trains paired in nine blocks, and a similarly long commissioning period is expected at the first two phases of Venture Global's 27.2mn t/yr Plaquemines facility consisting of 36 trains. The company also has plans for an 18.1mn t/yr expansion at Plaquemines. An FID is expected in mid-2027, with first LNG production 18-24 months later. Venture Global estimated that its third LNG facility, the 28mn t/yr CP2 facility adjacent to Calcasieu Pass, could export up to 550 commissioning cargoes . The company expects to make an investment decision on the first phase of CP2 this year. By Tray Swanson Calcasieu Pass offtake deals Offtaker Volume, mn t/yr Contract length, yrs Shell 2.0 20 Galp 1.0 20 Sinopec 1.0 3 CNOOC 0.5 5 Edison 1.0 20 Repsol 1.0 20 PGNiG 1.5 20 BP 2.0 20 — US DOE Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Keystone oil pipeline to restart today, pressure capped

25/04/14

Keystone oil pipeline to restart today, pressure capped

Calgary, 14 April (Argus) — The 622,000 b/d Keystone oil pipeline is repaired and has approval to restart at a reduced pressure less than a week after spilling crude in North Dakota. Pipeline operator South Bow is planning a "controlled restart" of the Keystone system today, provided weather cooperates, the company said. The repair and restart plans were approved by the Pipeline and Hazardous Materials Safety Administration (PHMSA), which issued a corrective action order (COA) to the Calgary-based midstream company on 11 April. The pipeline is a major carrier of Canadian heavy crude destined for both the US midcontinent and the Gulf coast but was shut down on 8 April after spilling 3,500 bl near Kathryn, North Dakota. About 2,845 bl had been recovered by 12 April, according to PHMSA. The COA indicates Keystone was operating at 1,251 pounds per square inch gauge (psig) at the time of failure, below the maximum allowed operating pressure of 1,440 psig for the pipeline. Flow rate at the time of failure was 17,844 bl per hour. Keystone will be capped at 80pc of the pressure at the time of the failure, or 1,000 psig. PHMSA noted five prior spills from Keystone occurring in 2016, 2017, 2019, 2020 and 2022 that saw releases of 400, 6,592, 4,515, 442 and 12,937 bl of crude, respectively, which "show a tendency or pattern in recent years of increasingly frequent incidents resulting in larger releases". Prices on either side of the pipeline break narrowed ahed of Keystone's imminent return-to-service. Heavy sour Western Canadian Select (WCS) in Hardisty, Alberta, has narrowed by about 75¢/bl to a $9.10/bl discount to the May Nymex WTI calendar month average, so far, while the same assessment in the Houston, Texas, area has widened by nearly 30¢/bl to about a $2.40/bl discount to the May basis. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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