Technical:
TotalEnergies has committed to a massive fuel price cut for all its gas stations in France by the end of the year
To meet French expectations of rising energy prices and falling purchasing power, the company is launching a massive fuel price reduction program for all of its service stations in France, which will last until the end of the year.
From Sept. 1 to Nov. 1, TotalEnergies will reduce the price of petroleum fuel sold by 0.20 euros / liter compared to global market quotes, and then by 0.10 euros / liter from November 1 to December 31.
Patrick Pouyanne, chairman and CEO of TotalEnergies, said: " TotalEnergies's commitment complements the French government's measures to provide direct support for the purchasing power of the French people. Therefore, consumers are our top priority because we prefer to make a direct, direct contribution to our customers, rather than imposing intermittent taxes that would punish our refineries. In fact, our refineries in France have formed an industrial infrastructure that has contributed to the country's energy security, directly employing nearly 5,000 people, and receiving our hundreds of millions of euros in investment to ensure that their modern —— is like Grandpuits in terms of Donges and their transition ——. In 2020 and 2021, the TotalEnergies did not request any government support, and the current favorable environment completely offset the losses. With the massive price reduction program at our service station, we hope that this long-term commitment will be recognized at the customer and national level."These price cuts, complementing the government's own measures, will apply from the first purchase to all oil fuel sold at gas stations.
News:
ExxonMobil plans to drill 35 more wells off Guyana
So far, ExxonMobil has found 11 billion barrels of oil offshore of Guyana, and the company is seeking environmental approval to drill 35 more wells in the Stabroek block, a very productive area offshore of Guyana, starting in 2023. ExxonMobil's oil and gas-based subsidiary, Esso Exploration and Production Limited (EEPGL), has applied for mass drilling from the
Guyana Environmental Protection Agency (EPA), which is expected to begin next year and end in 2028, according to the Journal of Oil and Gas. The Kaieteur News of Guyana saw the application, saying that " the exact location of the 35 exploration / evaluation wells, including the project, has not yet been finalized. Although some of the 35 wells will be used for exploration purposes, it is also possible that some wells near the previous drilled exploration areas will serve as evaluation wells. Thus, four regions of interest have been identified within the Stabroek block, as the possible locations of the proposed 35 exploration / evaluation wells."ExxonMobil helped Guyana become the latest oil producer and oil exporter at the end of 2019. Since oil was first discovered off Guyana in 2015, ExxonMobil has discovered more than 20 oil in the waters of the South American home.
In February, ExxonMobil said that its second offshore oil development project in the Phase Liza 2 Stabroek block in Guiana began production, with a total production capacity of more than 340,000 barrels per day. The Liza Unity floating production, storage and unloading (FPSO) ship production is expected to reach a target of 220,000 b / d this year, which will bring the production capacity of the Liza Phase I project, launched in December 2019, to over 120,000 b / d.
In April, ExxonMobil approved its fourth offshore project, in Guyana, Yellowtail, which is expected to produce 250,000 barrels a day starting in 2025.
U. S. oil giant Exxon Mobil said on an investor day in March that it plans to produce more than 850,000 barrels a day in Guyana by 2027.
Service:
Schlumberger reported first-quarter profit growth as higher oil prices boosted demand for services
Top oilfield services company (Schlumberger) on Friday reported first-quarter profit growth and increased its dividend by 40% as higher oil prices drove demand for services and equipment.
Oil prices climbed to their highest level in more than a decade in the quarter as Russia's invasion of Ukraine overturned the global supply landscape. According to Baker Hughes, the number of international drilling RIGS had reached 815 units at the end of March, up 100 from last year.
Olivier Le Peuch, Schlumberger's chief executive, said in a statement: " Rising commodity prices, demand-driven activity growth and energy security have led the energy services industry to be one of the strongest prospects in the near future.”
He expects the company to see significant growth in the second half of the year and to pull out of 2022 at an EBITDA margin at least 200 basis points higher than in the fourth quarter of 2021.
Schlumberger also approved a 40% increase in its quarterly cash dividend to 17.5 cents a share.
Analysts at Tudor, Pickering, and Holt & Co said the results were in line with expectations and said the dividend increase was a "very welcome surprise."Shares rose 2.34% to $41.60 in pre-market trading.
Us West Texas Intermediate CLc1 is trading at around $102.40 a barrel, while Brent LCOc1 is trading at $106.90 a barrel, both down about 1.3%.
Total revenue rose 14% to $5.96 billion for the quarter, with international revenue up about 10%, mainly from increased drilling volumes in Latin America, Mexico, Ecuador, Argentina and Brazil. In the Europe, CIS and African divisions, revenues fell by 12% continuously due to seasonal declines in economic activity and the depreciation of the Russian ruble.
The company reported adjusted net income of $488 million, or $34 cents per share, for the three months ended March 31, compared with $299 million, or $21 cents a share, a year earlier.
Analysts had expected earnings of 33 cents a share, according to Refinitiv IBES.
Equipment:
Brazil, Guyana, Mexico plan to offset declines in others
Rystad Energy says Upstream capital spending in Latin America will grow deeper in the coming years, with Brazil, Guyana and Mexico likely to be the main sources of new spending.
While onshore investment is stable at around $14 billion and shallow water investment continues to decline, deepwater investment is expected to grow at a compound annual growth rate of 15% between 2021 and 2025.
Rystad estimates that deepwater investment in earthquakes, drilling and facilities will exceed $25 billion by 2025, close to an all-time high of $28 billion driven by Brazil's Lower Subrite fields in 2013. Three countries will lead future growth —— Brazil will maintain its dominance, Guyana will grow based on recent discoveries, and Mexico expands its exploration range from the remaining continental shelf area to deeper waters.
The large-scale projects expected by the three countries will help support the supply chain of drilling ships, floating production storage and unloading (FPSO) ships and undersea equipment, where production has steadily seen decline since the peak of U. S. drilling activity reached in 2014
The Gulf of Mexico, West Africa, and Australia.
Global deepwater capital expenditure is expected to exceed US $72 billion by 2022. This represents a big increase last year, with spending of $58 billion, the lowest level since 2006, and even less than half of its peak of $154 billion in 2014.
At the time, as the North American shale revolution was in full swing, long-cycle investments were considered key to meeting the growing energy needs of the global population, making the US a swing producer as operators made short-cycle returns in response to rising oil and gas prices. From 2015 to 2020, they effectively limited prices for oil and gas, until the recent investor rebound in North American production growth.
Now, as operators' interest and capital turn to more revenue-determined onshore projects, they seem to have lost interest in large deepwater projects. Now, however, due to the relative restraint imposed by onshore operators in the US and Canada, we see this trend weakening in maritime development in Brazil, Guyana and Mexico.
The entire oil and gas supply chain is feeling the impact of sluggish deepwater activity. After a massive construction cycle of deepwater drilling vessels and previous spending growth, the decline beginning in 2015 led to the cancellation of the 267 rig year contract, with offshore drilling companies struggling to delay or cancel new construction orders.
Many fields stop in the Canary Islands in northwest Africa, waiting for operators to resume exploration and development of deepwater fields. In 2019, demand for floating drilling platforms began to improve to the 129 rig year under the contract. But with the COVID-19 outbreak, the cancellation of contracts appeared again, reaching a record low of 106 years last year.
Operators' contracting strategy has changed from long-term contracts to short, well-based contracts, resulting in a decline in the overall contracting volume. Over the next five years, the market activity of listed companies is expected to improve further, with a compound annual growth rate of 5.6%.
"Over the past few years, the focus on short-cycle investment in the undersea market has led to more undersea recovery operations and comparison
"The development of Brazil and Guyana saved the undersea supply chain in 2020 and 2021, when the operators reduced their sanctions activities. Brazil and Guyana accounted for 34% of tree contracts in 2020 and 2021, while the market fell by nearly half from 2019 and 2020, with Guyana awarding the most trees in 2020 and Brazil for more than half of the 2021 contracts.”
In Latin America, investment in the deep-water sector is mainly concentrated in Brazil, Guyana and Mexico, which account for more than 90% of the total investment. Investment in both green fields and brownfields is expected to grow by 2025, with Brazil accounting for the majority. Petrobras (Pemex) operated in the shallow Gulf of Campeche (Bay of Campeche) for decades, only recently entering the field with international operators in 2013 after a constitutional reform designed to attract foreign investors.
While Mexico's revised hydrocarbon method in 2021 favored Pemex, there is still great potential for further deepwater development.
Just this month, New Fortress Energy announced a partnership with Pemex to develop the Lakach gas field with the FLNG concept, which opened the door to further projects in the nearby Kunah and Piklis gas fields.
Woodside's Trion project in Mexico is also under way, and mcdermott's floating production plant can process 100,000 barrels of crude oil a day.
Deep-water projects in Brazil and Guyana will rely mainly on FPSO ships for production from these remote oil fields. Petrobras (Petrobras) and ExxonMobil (ExxonMobil) are the biggest operators in Brazil and Guyana, respectively.
Brazil continues to develop subsalt fields in the 2006 Tupi (former Lula) oil field, while Guyana is a newer oil production region. After ExxonMobil discovered the Liza oil field in 2015, a series of exploration successes have led to a growing backlog of FPSO projects.
The new generation of FPSO based on modularity and scale has several of its features. SBM Offshore is designed to hold 2.3 million barrels of oil, slightly more than a large crude oil carrier, accommodate up to 50,000 tons of upper-layer equipment, and can choose from different mooring configurations.
While taking on some additional financial risks, standardized hull pipelines also allow operators to reduce delivery times for these deepwater projects. Given the current investment environment, this has become the major model area of commercialization in these countries.
The future of Latin America depends largely on the success of deepwater development in Brazil, Guyana and Mexico. Brazil and Guyana provide a relatively certain fiscal and regulatory regime, while Mexico has additional advantages by providing an appropriate balance of domestic and foreign project participation.
"Over the next 3-4 years, this will benefit the drilling ship, the FPSO, the underwater, and the SURF market, as operators reward faster delivery times and greater technology excellence. With a successful evaluation, frontier maritime areas such as Namibia and Guyana's geological neighbors, Suriname, can be developed using the same tools."Rystad concluded.
