Tag: crude oil

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UAE meets 37.4% of Japan’s crude oil needs in June

The Company’s H1 2023 revenue stood at a AED 38.9 billion (US$10.6 billion) compared to Pro Forma Adjusted Revenue of AED 48.8 billion (US$13.3 billion) in H1 2022, impacted by the pricing environment…reports Asian Lite News

Japan’s crude oil imports from the United Arab Emirates amounted to 25.63 million barrels in June 2023 or 37.4 per cent of total imports, the Natural Resources and Energy Agency of Japan’s Ministry of Economy, Trade and Industry said.

During June, Japan’s total crude oil imports were 68.5 million barrels, of which 66.7 million, or 97.3 per cent, were provided by the UAE, Saudi Arabia, Kuwait, Qatar, and Oman.

Saudi Arabia was the top oil provider to Japan, with 41.4 per cent of total imports in June, making it with the UAE the source of more than three-quarters of Japan’s crude oil needs, which is crucial for the country’s energy security.

Meanwhile, ADNOC Gas today announced its financial results for the three months and six months ended 30th June, 2023 (Q2 2023) and (H1 2023).

The Company’s H1 2023 revenue stood at a AED 38.9 billion (US$10.6 billion) compared to Pro Forma Adjusted Revenue of AED 48.8 billion (US$13.3 billion) in H1 2022, impacted by the pricing environment.

Revenue in Q2 2023 was reported at AED 19.8 billion (US$5.4 billion) compared to Pro Forma Adjusted Revenue of AED 26.1 billion (US$7.1 billion) in Q2 2022. ADNOC Gas maintained high reliability with a 98.9 percent average across its facilities in H1 2023, contributing to a 15 percent increase in production volumes in Q2 2023 over Q1 2023.

ADNOC Gas adapted to lower LPG and Brent crude oil prices in H1 2023 compared to the high pricing environment of H1 2022. The Company strategically shifted towards higher-margin export liquids and focused on increased efficiency. These measures enabled the Company to maintain a flat EBITDA of AED 6.6 billion (US$1.8 billion) and Net Income of AED 3.7 billion (US$1.0 billion) in Q2 2023, demonstrating that ADNOC Gas is a predictable and resilient margin business underpinned by profitable growth.

Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented, “Our results for the first half of 2023 showcase the resilience and robustness of our business in the current lower price environment compared to the higher prices witnessed in H1 2022. For the period ending June 30th 2023, we delivered a net income of AED 8.4 billion (US$2.3 billion). This performance demonstrates the strength of our business, which was also supported by selling more high-margin export liquids – a strategy that has proven effective.

“We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible global energy transition. ADNOC Gas remains fully committed to investing in our people, operations, and markets, and we have continued to invest in our strategic growth opportunities throughout the first half of 2023.

“Our recent signing of significant long-term LNG agreements and our domestic investments demonstrate that we remain ideally positioned to meet both local and international demand, while further decarbonising our operations in line with the UAE’s Net-Zero 2050 ambition, as we continue to deliver value for our shareholders over the longer-term,” he added.

In line with ADNOC Gas’ growth strategy, the Company recently awarded AED 4.2 billion (US$1.34 billion) in contracts for extending its natural gas pipeline to over 3,500 km, serving the Northern Emirates, marking another key milestone for the sales gas pipeline network enhancement (ESTIDAMA) program. This strategic pipeline extension will drive further growth for ADNOC Gas as it continues to provide sustainable gas supplies to customers in support of the UAE’s plan to achieve gas self-sufficiency.

ALSO READ-UAE Ministry explores ways to boost national food security

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‘India to produce 25% of its oil demand by 2030’

As per the International Energy Agency estimates, India will contribute a quarter (25 per cent) of the growth in global energy consumption in the coming two decades

Indian petroleum industry is at the cusp of opportunity and will be able to produce 25 per cent of its crude oil demand by 2030, Union Petroleum and Urban Affairs Minister Hardeep Singh Puri said.

At present, five million barrels of petroleum is being consumed in our country every day and it is also increasing by three per cent, which is higher than the global average of nearly one per cent, Puri added.

The Union Minister shared this with media at the three-day South Asian Geoscience Conference, GeoIndia 2022, which began at JECC, Sitapura in Rajasthan’s Jaipur on Friday.

Veteran Geologist Shyam Vyas Rao, former Director (Exploration), Oil and Natural Gas Corporation Limited (ONGC), was also presented with the lifetime achievement award by the Union Minister in the inaugural session.

Ethanol-blending percentage in petrol increased to 10 per cent in last nine years.

In the inaugural session, Puri said that the ethanol-blend percentage in petrol has increased from 0.67 per cent in 2013 to 10 per cent in May 2022, i.e., five months ahead of schedule. It is reducing 2.7 million tonne of CO2 emissions which is good for the environment.

As per the International Energy Agency estimates, India will contribute a quarter (25 per cent) of the growth in global energy consumption in the coming two decades.

Petroleum Secretary Pankaj Jain said the geology experts should utilise this opportunity to elevate their contribution in the context of increasing demand and scarcity of energy sources.

He asked geoscientific fraternity to develop tailored knowledge for deep water, ultra-deep water and onshore to enhance oil and gas production while doing it in environmental sustainable manner.

Earlier, welcoming the dignitaries and participant, Rajesh Kumar Srivastava, CMD, ONGC, and Chief Patron of APG, said, “GeoIndia has been a major leader in the last 14 years under the aegis of Association of Petroleum Geologists (APG) India. The biennial South Asian Geology Conference and Exhibition has evolved in terms of size and international participation. The global market value of automation technology in the oil and gas sector is projected to nearly double and reach nearly $42 billion by 2030. It is high time that the oil and gas sector take advantage of the digital transformation.”

On the first day of the conference, the plenary session was witnessed intensely by experts and policymakers, including Pankaj Jain, Secretary, MoPNG, SCL Das, DGH Director General, ExxonMobil MD Justin Murphy, Equinor MD Desikan Sundararajan, Md. El-Toukhy, Invest India’s Ravneet Mann moderated by Energy affairs expert Narendra Taneja.

The Minister also inaugurated the GeoIndia 2022 exhibition, where a number of Indian and global petroleum companies and service providers showcased their cutting edge services and tools for exploration and production of oil and gas.

ALSO READ: India under no global pressure to shun Russian oil: Puri

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Business

‘India imported less than 1 per cent crude oil from Russia’

The minister also highlighted the fact that they are currently in talks with some western oil firms…reports Asian Lite News

Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, informed the Rajya Sabha on Monday that in the last three financial years, India imported less than 1 per cent crude oil from Russia.

Responding to a question raised by Shiv Sena MP Priyanka Chaturvedi, Puri said, “In the last three financial years, we imported less than 1 per cent crude oil from Russia, and in the first nine months of this fiscal, only 0.2 per cent of our oil requirement has been imported from Russia.”

Puri also said that India imported 7.3 per cent of its oil requirement from the United States. He asserted that India and the US have a strong bilateral energy relationship.

The minister also highlighted the fact that they are currently in talks with some western oil firms.

Hardeep Singh Puri

He said that Indian oil companies have invested in Russia, which has been very profitable — $337 million investment has resulted in $3.7 billion revenue — and another 20 years remain.

Puri said that India has company to company crude import arrangements as well as government to government deal with Russia.

The minister further said that out of the five million barrels per day consumption, 60 per cent crude oil comes from the Gulf countries, while India has imported only 0.419 million metric tonnes of crude oil from Russia which is less than 1 per cent.

Earlier on March 14, Puri had stated in the Rajya Sabha that the Centre cut petrol and diesel rates last year when they were most required by the consumers.

ALSO READ-Russia-Ukraine conflict pushes up global crude oil price again

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Russia-Ukraine conflict pushes up global crude oil price again

For India, the price range is a cause of concern as it may add Rs 8 to Rs 10 in petrol and diesel selling prices, if the OMCs decide to revise the current prices…reports Asian Lite News

Concerns over lower supply amid escalating Russia-Ukraine conflict pushed up global crude oil prices to $102 per barrel on Tuesday.

The rise in crude oil prices comes after negotiations failed to resolve the Russian-Ukrainian conflict. The Brent-indexed crude oil prices had risen by 5 per cent to over $98 per barrel on Monday.

Russia is the third largest producer of crude oil in the world. It is feared that sanctions against Russia will start to curtail global supplies and stifle growth.

On last Friday, a rise in the US oil inventories along with assurance of energy supply from Russia had doused international crude oil prices. Consequently, the price on last Friday came down to $95 per barrel after the Russia-Ukraine war pushed Brent Crude Oil prices to $105 per barrel.

For India, the price range is a cause of concern as it may add Rs 8 to Rs 10 in petrol and diesel selling prices, if the OMCs decide to revise the current prices.

The cascading effect of higher fuel cost will trigger a general inflationary trend. “Crude oil prices rallied on Tuesday with ICE Brent oil surging more than 4 per cent, above $102 per barrel,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

“Crude oil prices resume rally on concerns over lower supply amid failed talks between Russia and Ukraine.”

According to IIFL Securities VP, Research, Anuj Gupta: “Crude oil is trading higher due to escalating geopolitical tension… We are expecting that crude oil may test $105 to $108 levels soon.”

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Business

Crude oil price tops $105 after Russia-Ukraine tension

On Thursday, the Brent crude climbed to $105 a barrel after Russian President Vladimir Putin launched a military operation in Ukraine…reports Asian Lite News

Russia-Ukraine war has accelerated Brent Crude Oil prices which raced to $105 per barrel on Thursday and is expected to mar India’s economy with high inflation. At present, India which imports 85 per cent of its crude oil needs, is import-dependent. Any rise in crude oil prices will have a major impact on domestic prices of petrol and diesel.

Besides, the cascading effect of higher fuel cost will trigger a general inflationary trend. Already, India’s main inflation gauge — Consumer Price Index (CPI) — which denotes retail inflation, has crossed the target range of the Reserve Bank of India in January. The rise was blamed on high commodities costs.

As per industry calculations, a 10 per cent rise in crude oil prices adds nearly about 10 basis points in CPI inflation. “Crude prices at such higher levels will increase the retail fuel prices by around Rs 8-10 per litre and could create inflationary pressure,” said Bhanu Patni, Senior Analyst, India Ratings and Research.

“Although, Oil marketing companies have not increased the retail prices since November 21, the same could be seen post elections.”

On Thursday, the Brent crude climbed to $105 a barrel after Russian President Vladimir Putin launched a military operation in Ukraine. This is the first time since 2014 that crude oil prices have crossed the $100 per barrel mark.

Besides, crude oil prices surged by 5.50 per cent near $97.22 per barrel on the NYMEX WTI index. “Crude at over $100 per bbl would increase the import bill, current account deficit and thereby depreciation of the INR vis-a-vis USD will lead to inflation,” said Prashant Vasisht, Vice President and Co-Head, Corporate Ratings, ICRA.

“The Upstream companies would benefit from higher crude oil prices. Besides crude oil, gas prices are also expected to increase as Europe gets a large proportion of gas through pipelines passing through Ukraine.”

Currently, Russia is one of the world’s top producers of crude oil and any western sanctions against Russia will stiffen the global supply. “The conflict between Russia — the second largest exporter of crude oil with 12 per cent market share — and Ukraine, has expectedly raised already elevated crude prices to 8-year high. The prices could stay over $100 per barrel in near to medium term unless the Opec decides to increase output materially,” said Hetal Gandhi, Director, Crisil Research.

“Interestingly, over the past three months, Opec members haven’t been meeting their production targets, which has influenced prices. The upshot is energy and trade-deficit negative for India, since we import nearly 85 per cent of our crude oil requirement.”

In addition, Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research said: “This will have an impact on the domestic inflationary scenario where there are already significant undercurrents due to increasing pass through of higher commodity prices with improving demand in manufactured products and even services.”

“While the Government can partly alleviate the pressures through a further cut in excise duties of retail fuels, input costs are set to increase further for sectors such as paints, chemicals, plastic products, transport and aviation in the near term.”

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Business USA

Pemex plans to cut oil exports by 2023

Pemex gas station in Morelia, Michoacán (Wikipedia)

Refining will also get a boost from the rehabilitation of Mexico’s six existing refineries and acquisition of the Deer Park refinery based in Houston of US state of Texas…reports Asian Lite News.

Mexico’s state-owned oil company Petroleos Mexicanos (Pemex) is looking to suspend its crude exports by 2023 to allocate all of its output toward domestic consumption, CEO Octavio Romero has said.

During the presentation of a program to achieve energy self-sufficiency, Romero added that the strategy calls for first reducing Mexico’s crude exports in 2022 to 435,000 barrels per day, Xinhua news agency reported.

“By 2023 and by 2024, practically all of Pemex’s production is going to be processed and refined” for the domestic market, said Pemex CEO, who was accompanied by Mexico’s President Andres Manuel Lopez Obrador.

Pemex’s refining capacity will be expanded once the Dos Bocas refinery begins operating. Starting December 2018, the refinery has been the most important infrastructure project of the Lopez Obrador administration.

Refining will also get a boost from the rehabilitation of Mexico’s six existing refineries and acquisition of the Deer Park refinery based in Houston of US state of Texas.

“Practically 100 per cent of Mexican crude is going to be refined in our country to guarantee fuel supplies,” Romero said.

Lopez Obrador’s administration is working to strengthen Pemex, whose finances were depleted in recent years by constant transfers of funds to government coffers amid a decline in its crude output.

International credit rating agencies have even threatened to lower the country’s investment grade rating if the state company’s finances do not improve.

ALSO READ-Oil prices decline as US crude stockpiles surge