Monday, June 23, 2025
Friday, June 20, 2025
Israel–Iran Conflict May Jeopardize China’s $400 Billion Deal With Iran
Smoke rises after a reported Israeli strike on a building used by Islamic Republic of Iran News Network, part of Iran's state TV broadcaster, in Tehran, Iran, on June 16, 2025. Over recent days, Iran has been hit by a series of Israeli airstrikes targeting military and nuclear sites, as well as top military officials, prompting Iran to launch a counterattack. Photo by Stringer/Getty Images
As the Israel–Iran conflict intensifies, China’s reliance on cheap oil from Iran and its $400 billion deal with the Islamic regime may be in jeopardy.
If the Iranian regime is toppled, analysts say, the Chinese communist regime will not only face an economic blow, but its expansionist global strategy that involves using the Middle East as a frontier to contain the West also will be thwarted.
Currently, more than 90 percent of Iran’s oil exports flow to China, the world’s largest oil importer, according to Kpler, an international trade data provider.
Iran’s crude oil exports have been sanctioned by the international community because of concerns about Iran’s developing nuclear weapons. Nevertheless, many small refineries in China have been buying illicit Iranian oil at a cheaper price than the standard market price.
Because of the sanctions, Iran has almost no other buyers apart from China, so it is at a disadvantage in pricing. In 2024, a senior official from the Iran Chamber of Commerce called the China–Iran trade relationship a “19th-century colonial trap,” saying that China also “dictates how payments are made.”
Iran’s crude oil is paid for in Chinese renminbi instead of U.S. dollars, leaving Iran with the need to purchase large quantities of Chinese goods, which further exacerbates its economic dependence on China.
SBM to become first FPSO operator in Suriname with TotalEnergies contract win
SBM Offshore has signed an operations and maintenance contract with TotalEnergies for the FPSO GranMorgu, as part of the field development project located in Block 58 in Suriname.
The operations and maintenance contract covers the operation readiness phase before first oil as well as the operations and maintenance services for a minimal period of two years after first oil with extension options.
"This contract reinforces SBM Offshore’s long-term strategic partnership with TotalEnergies and marks a significant milestone as SBM Offshore becomes the first FPSO operator in Suriname," SBM stated in a news release on Thursday. "It is a testimony to SBM Offshore’s focus on excellence throughout the entire project’s lifecycle, from the allocation of our eighth Fast4Ward® MPF hull to our extensive experience in asset management supporting TotalEnergies’ operations."
Thursday, June 19, 2025
Wednesday, June 18, 2025
Monday, June 16, 2025
Global Energy Show: Alberta’s premier says new federal regime will have to prove changed attitude
During the Executive Conference of the Global Petroleum Show last week, Alberta’s premier, Danielle Smith, provided an update on the province’s energy sector and gave her assessment of the new federal administration’s policies on energy. In so doing, Smith said that Alberta’s energy potential is still abundant, but the regime of Prime Minister Mark Carney still needs to prove that it is more reasonable on oil and gas than the administration of former Prime Minister Justin Trudeau.
Prepared remarks. On the energy potential front, Smith noted that Canada’s proven oil reserves total 171 Bbbl, of which 166.3 Bbbl are in Alberta. Continuing with the numbers, Smith said that Canadian natural ga reserves in place are estimated at 1,368 Tcf, of which 130 Tcf of proved and recoverable gas are in Alberta. She said that Alberta’s oil production hit another record high in May 2025 at 4.3 MMbpd.
The natural gas angle. At the same time, the world needs more abundant, affordable energy, declared the premier. And Alberta, she said, is in a perfect position to fill that need. So, how to do that? “By moving more natural gas,” said Smith. “We can also help countries transition away from higher fuels, such as coal. A recent Fraser Institute study found that by doubling Canadian liquefied natural gas production and exporting the additional supply to Asia, we could reduce global emissions by up to 630 million tonnes annually.”
Smith pointed out that Canada's first major gas terminal at LNG Canada is on track to open “very, very soon,” probably this month. “I hear that there's a boat on the way, and that will bring the first liquefied natural gas to the world, as soon as July. It has the capacity of 14 million tonnes per year when fully operational, and that is the equivalent of about 10% of Canada's total marketable natural gas production.”
The need for pipelines. Accordingly, continued Smith, this sets the stage for Western Canada to provide energy security to the world. But, she added, it's not enough. “We need to see significantly more infrastructure to make the most of Alberta's potential and to meet international demand.” She believes that all Alberta needs is for egress and the willingness of the federal government to support expanding pipelines with urgency. “One ideal solution would be a new transportation and energy corridor northwest to the port of Prince Rupert in British Columbia,” continued the premier. “This is Canada's gateway to Asia, and it opens tremendous opportunities for exporting everything from fuel to food to critical minerals.”
Smith declared that Canada needs pipeline projects to move Alberta’s energy. She pointed out that her Ontario counterpart, Premier Doug Ford, recently said that Canada needs pipelines that go east, west and north, “and that is almost unheard of for an Ontario premier to speak so boldly.”
CCUS projects. Meanwhile, Alberta’s oil production has risen 96% since 2012, which is an increase of about 1.6 MMbpd. Oilsands emissions continue to decline, Smith noted, and Alberta is a pioneer in carbon capture, utilization and storage at a commercial scale. “We have invested almost $2 billion in this field to help it to mature, and our province is now home to two of the largest carbon capture, utilization and storage projects on the continent.” Smith said Alberta's long history and experience with natural gas and a huge pipeline network make the province ideally suited to mastering hydrogen, and the province is well on its way to succeeding.
She said that everyone who buys Canadian energy gets two major benefits. One is stable supplies. And the second is lower global emissions, “as our energy replaces higher-emission energy sources. It is really hard to argue with this reasoning.”
The P.M.’s thinking. Smith said that she has seen “encouraging signs” that Prime Minister Carney “is open to this thinking. Now we need to turn these ideas and these opportunities into action. He recognizes that there are many major projects of national interest, and we need to move forward with them quickly by removing barriers that restrict private industry. I am—and of course, the other premiers—have been vocal that western and Arctic resource corridors should be treated as nation-building projects. But we need to maintain the pressure to ensure policies are in place to support new infrastructure on a large scale.”
She explained that pressure is needed, because the industry cannot build a pipeline to the West Coast, if there is a tanker ban and it cannot expand oil and gas production, if there is an emissions cap. Smith exhorted the crowd in the packed event room to help her Alberta government with convincing Carney, to make sure that the Government of Canada understands what's at stake and what needs to be done.”
Interview questions. The premier then sat for 15 minutes of interview questions with retired Canadian Broadcasting Corporation anchor Peter Mansbridge. He immediately asked Smith about here statement that Carney and his administration need some convincing. He asked her, “how is it going on that?”
In response, Smith was at her diplomatic best, declaring that “he has a couple of problems he's facing, in that a lot of the people who proposed the bad policies over the last ten years are still in key positions in either his government or his caucus. So I recognize that he has a real challenge in climbing down on some of them. That being said, he also recognized that one of the major policies he had to change within minutes of getting sworn in as prime minister was to get rid of the carbon tax, because it was so unpopular.”
Carney must show leadership. The premier continued, “I think the world has changed dramatically since Donald Trump got elected in November. I think that's changed the national conversation. And I think he (Carney) now has the ability to show leadership and be able to either substantially revise or completely eliminate some of those bad policies. So, I'm going to give him some time to work with us to identify ways that we can address those [problems]. And I'm going to be optimistic. But I understand that the challenge is that he has a lot of people in his caucus who still believe that those policies are the right way to go.”
Mansbridge then asked Smith how much time she’s willing to give Carney to work on these problems. “I would say probably up until the next legislative session, because I think they're going to be wrapped up in June,” she estimated. “He's going to have a project list that he puts forward, and we have some important projects that we would like to see on that list. So, we'll be able to see whether or not his commitment to building a new bridge and pipeline is real. In the fall, that gives him enough time to address things like the rewrite of Bill C 69, ending the ten-year ban, ending the emissions cap. He has to make a decision on net zero vehicles, because even Ford has now said there's just no demand for it…. So, there's lots of things that he has to address immediately, to show that there's a shift. But, I think it will take another legislative session to be [complete].
Friday, June 13, 2025
Chevron, Halliburton develop new intelligent fracturing process
Chevron and Halliburton have jointly developed a new process that enables closed-loop, feedback-driven completions in Colorado. This intelligent fracturing process combines automated stage execution with subsurface feedback to optimize delivery of energy into the wellbore without relying on human intervention. The capability enhances the previous implementation of autonomous hydraulic fracturing technology.
Chevron recognizes the importance of efficiency and consistency during fracture execution. In addition, the company has placed an emphasis on the added control functionality that these new technologies provide. Leveraging digital automation and real-time feedback from the subsurface, Chevron and Halliburton jointly developed autonomous workflows that adjust completion behavior with the goal of improving asset performance.
A combination of technologies from the wellsite to the cloud is required to enable this new approach to intelligent completions. Halliburton’s ZEUS IQ™ intelligent fracturing platform, comprised of OCTIV® auto frac and Sensori™ monitoring, provides the necessary closed feedback loop and control capability. Chevron’s hydraulic fracturing and subsurface knowledge is built into an algorithm to enable the advanced decision making.
“We drive innovation in the digital space,” said Shawn Stasiuk, Halliburton’s vice president of Production Enhancement. “We built the digital environment down to the field level and enable our customers to test their best ideas.”
Chevron’s work in closed-loop automation changes the approach to hydraulic fracturing in shale and tight rock formations. Operations can now react to a localized environment through real-time adaptation rather than performance forecasting.
“At Chevron, we focus on continuously advancing asset performance safely through the innovation of our subject matter experts, new technology, and strategic collaborations. This real-time adaptive feedback loop is expected to further drive efficiencies and improve overall asset performance,” said Chevron’s Kim McHugh, vice president of the Rockies Business Unit.
Thursday, June 12, 2025
Wednesday, June 11, 2025
Tuesday, June 10, 2025
Monday, June 9, 2025
Friday, June 6, 2025
Wednesday, June 4, 2025
Tuesday, June 3, 2025
Monday, June 2, 2025
OPEC+ to increase July supply by 411,000 bpd despite pushback from Russia
(Bloomberg) – OPEC+ agreed to surge oil output for the third month in a row despite reservations from key member Russia, doubling down on a historic policy shift that has sent crude prices sinking.
Oil-producing nations led by Saudi Arabia agreed during a video conference on Saturday to add 411,000 bpd to the market in July, according to a statement on the group’s website. The hike matches increases scheduled for May and June, marking a radical reversal from defending prices to actively driving them lower.
Officials say the supply hikes reflect Saudi Arabia’s desire to punish over-producing members like Kazakhstan and Iraq, recoup market share lost to U.S. shale drillers and other rivals, and satisfy President Donald Trump’s desire for cheaper oil.
They offer relief to consumers as the northern hemisphere goes into its peak demand season, while also helping central banks grappling with stubborn inflation. Yet the market impact creates financial peril for oil producers around the world, which could be facing a period of prolonged low prices.
Several members expressed reservations during Saturday’s meeting about the speed with which OPEC+ was raising production. Russia, Algeria and Oman wanted a pause in the increases, delegates said, asking not to be named because the information was private.
The difference in views between Moscow and Riyadh, the cartel’s two most powerful members, will come back into play on July 6, when they meet again to discuss output levels for August.
Oil briefly crashed to a four-year low under $60 a barrel in April after the Organization of the Petroleum Exporting Countries and its allies first announced that they would bolster output by triple the scheduled amount. The move came even as faltering demand and Trump’s trade war were already crushing the market.
While Brent futures have since recovered to trade near $64 a barrel, the International Monetary Fund estimates the Saudis need prices above $90 to cover the lavish spending plans of Crown Prince Mohammed bin Salman. The kingdom is contending with a soaring budget deficit, and has been forced to cut investment on flagship projects such as the futuristic city, Neom.
Markets might take Saturday’s agreement as slightly positive because prior to the talks “there were some concerns of a larger increase,” said Giovanni Staunovo, a commodity analyst at UBS Group AG.
If Riyadh’s strategy is to discipline the cartel’s quota cheats through a “controlled sweating,” it doesn’t seem to be working.
Kazakhstan, the most blatant offender, continues to exceed its limits by several hundred thousand barrels a day and has publicly stated that it has no plans to atone. Energy Minister Yerlan Akkenzhenov told reporters on Thursday that the country can neither enforce cutbacks on international corporate partners, or dial back at state-run fields.
The downturn is, however, taking a toll in America’s shale oil heartlands, where companies like Diamondback Energy Inc. say production has peaked, despite Trump’s promise the country would “drill, baby, drill” in a new energy boom.