RP Weekly Recap | November 28 – December 2
Calm weather and a lack of storms are generally considered good news entering the holiday season, but in Europe, a lack of seasonal wind is wreaking havoc on energy markets. Falling wind speeds experienced all across Europe are pushing power and gas prices higher, underscoring the heightened vulnerability of the continent’s energy system to weather conditions this winter. Amid a sharp pivot from its reliance on Russian natural gas, Europe has built up large reserves of stored gas ahead of this year’s heating season. That has helped ease power and gas prices recently and a particularly mild spell of weather across the continent also helped by pushing back gas withdrawals and keeping stockpiles topped off. Now, though, colder weather in many places is kicking in at the same time wind speeds have fallen, bolstering demand for gas while reducing the ability of wind farms to generate electricity. With temperatures dropping, this winter is shaping up to be a costly one for customers’ wallets. Check out this story and more in this week’s recap of all things happening in oil and gas!
- Number of Cases (Worldwide): 644,629,493 (up from 627,141,839 last week)
- Number of Cases (USA): 98,941,981 (up from 97,156,285 last week)
- Statistics courtesy of Johns Hopkins
Financial & Economic Updates
U.S. Oil Market News
- Bakken EOR Trial Increased Output by 25%
- California’s Natural-Gas Bans Push Largest Gas Utility to Find a New Strategy
- Heating New England’s Homes Will Be Expensive This Winter
- Coterra Energy to Pay $16.3 Million for Pennsylvania Water Contamination Plea
- White House announces $13.5 bln funding to help households with energy bills
- Oxy to Support Up to 30 DAC Plants on King Ranch Acreage in Texas
- Marathon Oil to Acquire Ensign in $3 Billion Eagle Ford Deal
- EOG Resources Unveils New Ohio Utica Combo Position
- Diamondback Makes Quick Work Toward Divestiture Goal With $155 Million Sale
- Diamondback Energy to Acquire Lario Permian for $1.55 Billion
Global Market News
- World Oil Demand Topped Pre-Covid Levels In September
- Exxon Mobil to Exit Equatorial Guinea Amid Wider Africa Crude Phaseout
- Saudi Arabia Slashes Oil Exports By 430,000 Bpd As OPEC+ Cuts Output
- Sanctions on Russian Energy Loom Over Oil Market
- Saudi Arabia Reiterates Commitment To China, Regardless Of U.S. Concerns
- Egypt Dims the Lights in Cairo to Free Up More Gas for Europe
- Russia Threatens to Reduce Gas Exports to Europe Further
- EU Backs Russian Oil Price Cap of $60 Per Barrel
- Lack of Wind Pushes Europe’s Power Prices Higher, Just as Cold Sets In
- Jobless Claims Jump by 17K – the increase could be a sign that the labor market is starting to soften.
United States Rig Count
- Up (0) from last week for a total of 784
- Up 37.8% from one year ago
- Statistics courtesy of Baker Hughes
RARE PETRO Updates
Content Updates – News Pulse – Podcast
- A New Basin Breakdown for the month of August is available now! Be sure to check out the latest articles and Basin Breakdown Podcast!
- U.S. oil production has been buoyed since 2022 by DUCs – drilled but uncompleted wells. These wells have been drilled but not yet stimulated and brought onto production. Reaching a peak in 2020 of about 9,000 wells, the U.S. DUC inventory currently stands at about 4,500 wells. Due to increased drilling activity, American DUC inventories are flattening even though the national DUC inventory grew by 16 wells in August of 2022. The question becomes: will diminishing DUC inventories and a depleted SPR drive higher oil prices? Find out in this week’s Periodical!
- Grab a drink and join us for our newest segment, Thirsty Thursday: An Inventory Report to see if we’ve been poured another tall glass of crude and whether or not the U.S. was thirsty enough to suck down another round.
- As Always, A New Monday Madness Podcast!
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