RP Weekly Recap | August 24 – 28
Summary
Ahead of Hurricane Laura’s landfall, Gulf of Mexico Operators were forced to evacuate nearly 300 platforms and shut-in more than 84 percent of oil production and more than half of their natural gas production. In addition, after one of the strongest hurricanes in years made landfall near the heart of the U.S. refining industry, around 3 million barrels a day of U.S. refining capacity was closed or reduced. These facilities are built to withstand such events but a temporary shutdown is about how 2020 is going. So, thanks Laura.
COVID-19 Updates
COVID-19 Statistics
- Number of Cases (Worldwide): 24,532,147 (up from 22,754,063 last week)
- Number of Cases (USA): 5,884,174 (up from 5,589,013 last week)
- Statistics (courtesy of Johns Hopkins)
Financial & Economic Updates
US Oil Market News
- Gulf of Mexico Operators Evacuate Nearly 300 Platforms, 1.5 Million B/D Shut In (Link)
- U.S. Oil Prices Suffer First Loss in Four Sessions as Traders Bet on Quick Output Recovery After Hurricane Laura Makes Landfall in Oil Heartland (Link)
- Another 150 North American E&Ps May Require Chapter 11 Protection Through 2022 (Link)
- U.S. Resumes Oil and Gas Lease Auctions; Bids Weaker Than Pre-Pandemic Levels (Link)
- U.S. Army Corps Asks Appeals Court To Reverse Dakota Access Pipeline Ruling (Link)
- Equinor Halts US Shale Drilling for 2020 Amid Significant Job Cuts (Link)
- U.S. Natural Gas Power Generation Hits Record (Link)
Global Market News
- Russia Overtakes Saudi Arabia To Become Second Largest Oil Producer (Link)
- South Sudan to Take Over Oil Fields Managed by China’s CNPC By 2027 (Link)
- Turkey Announces Country’s Biggest Gas Discovery, Says More To Come (Link)
- Iran Fast Tracks Development Of Huge West Karoun Oil Field (Link)
- India Stops Oil Purchases From China (Link)
- Is A Wave Of Bankruptcies Heading For The Offshore Oil Industry? (Link)
- Offshore Driller Valaris Files Chapter 11 To Reduce $7-Billion Debt (Link)
Employment Updates
- Pioneer Natural Resources & Parsley Energy Reportedly Plan Layoffs (Link)
- U.S. Oil and Gas Industry Sheds 118,000 Jobs (17%) During Pandemic (Link)
- 1 Million More Americans File for Jobless Benefits – weekly unemployment claims have plateaued at historic levels after falling from a peak of nearly 7 million in March (Link)
US Rig Count Statistics (courtesy of Baker Hughes)
- Has not changed in the last week for a total of 254
- Down 72% from one year ago
RARE PETRO Updates
Content Updates – News Pulse – Podcast
- A new episode of the Periodical Podcast is available now! Be sure to check out our discussion relating to this week’s periodical where we investigate whether or not renewables are to blame for the recent rolling blackouts in California (Link)
- This week’s periodical investigates why renewable energy is a major culprit for the recent rolling blackouts in California. While it appears California’s aggressive climate policies have led to millions of customers experiencing rolling blackouts in mid-August, how did this happen? Since the state was unable to maintain sufficient reliable power due to an over-reliance on a renewable grid incapable of providing enough electricity for demand at peak hours after the sun went down; California, much like the rest of the United States, is not ready to maintain its current goal of 33% renewable electricity by the end of 2020, let alone a total shift to renewable energy sources in the near future. Be sure to check out: Let the Good Times Roll! – Why Renewable Energy is a Major Source for Blackouts in California (Link)
- A NEW Basin Breakdown for the Month of July is available now! Be sure to check out the articles HERE and podcast HERE!
- As Always, A New Monday Madness Podcast! (Link)
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