FROM THE OIL PATCH
Shale giants dump oil hedges as losses spiral toward $42 billion
U.S. shale giants stung by billions of dollars in hedging losses are spending big bucks to ditch their positions in a risky bet that prices stay high. Companies including Pioneer Natural Resources Co. and EOG Resources Inc. are poised to post historic profits when they report earnings this week. But those windfall earnings would be even higher if it weren’t for massive accounting losses from hedges that protect against falling prices while limiting upside potential. Producers in the aggregate are looking at about $42 billion in oil and gas hedging losses through 2023, according to BloombergNEF calculations of data from last year. While such
Steel market losing momentum as U.S. faces severe OCTG supply shortage
Following the dramatic recovery in U.S. steel production last year – a more than 18% year-on-year increase – the market is increasingly losing momentum. Output has fallen in April after flatlining in the first quarter, bringing the year-to-date change to -1.6% year on year. While capacity utilization is not exceptionally high – about 80% this year – raw materials’ restrictions since Russia’s invasion of Ukraine are constraining the U.S. steel output potential, not to mention inflating domestic prices of scrap, which surged over $750 per gross ton last month. Russia is the U.S.’s fifth most important supplier of steel, including semis,
Energy transition still means billions in fossil-fuel investment
The energy crisis triggered by Russia’s invasion of Ukraine is increasing the world’s motivation to shift to low-carbon energy, but is also creating a near-term scramble for fossil fuels that will drive billions of dollars of new investment. The U.S. and European countries are planning liquefied natural gas terminals that
Defeating Putin — now — is an economic imperative
He might secretly be the world’s richest person, but Russian President Vladimir Putin is also the world’s greatest value destroyer. The International Monetary Fund estimates that Putin’s barbaric invasion of Ukraine will lower world economic growth by eight-tenths of a percentage point this year and two-tenths next year. That might not sound like
Exxon Sees Carbon Capture Market at $4 Trillion by 2050
Exxon Mobil Corp. estimates there will be a $4 trillion market by 2050 for capturing carbon dioxide and storing it underground, the company said in a presentation on Tuesday. That is about 60% of the $6.5 trillion market the U.S. largest crude producer estimates for oil and gas by then. Carbon capture is
Global economy to ‘slow significantly’ following Russian invasion of Ukraine: IMF
The International Monetary Fund (IMF) said Tuesday that the global economic recovery will “slow significantly” this year due to the Russian invasion of Ukraine. The IMF not only downgraded growth prospects in Eastern European countries, but warned that countries around the world will be affected by the disruption to commodities
CRUDE OIL WEEKLY UPDATE (Week Ending 05-13-22)
Crude Oil Summary (EIA): U.S. crude oil refinery inputs averaged 15.7 million barrels per day during the week ending May 6, 2022 which was 230,000
NATURAL GAS WEEKLY UPDATE (Week Ending 05-13-22)
In the News (EIA): Natural gas consumed for U.S. electric power sets January record in 2022: In January 2022, natural gas consumed for electric power
Zekelman Industries Steel Snapshot for May 2022
(by Mike Mechley, Executive VP of Strategic Procurement, www.ZekelmanIndustries.com) Platts May HR Coil $1,380, down $120 from April. Mini mills panic to secure pig iron
Preston Pipe Report – April 2022
(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – President Joe Biden announced an agreement in late March committing the US LNG industry to
Pipe Logix Line Pipe Report – April 2022
(by Kurt Minnich, www.pipe-logix.com) Line pipe prices jumped again in April with the Pipe Logix Price Index up 7.6% to $3,656/ton. Prices for many seamless
AISI Press Release on Latest U.S. Imports of Steel Products – May 2022
(American Iron and Steel Institute, www.steel.org – May 6, 2022) Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, the
