Namibia's Oil Riches May Finally Start to Flow
To understand the excitement, let's start on the other side of the Atlantic. Back in 2015, the country attracting everyone's attention was Guyana. Within a few short years, the Latin American nation delivered a gusher for Exxon Mobil Corp. and its partners: Oil production climbed from almost zero in 2019 to 700,000 barrels a day this year. By 2027, Guyana is expected to surpass 1 million barrels a day, putting it on a par with OPEC+ member countries such as Libya.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
OPEC+ slated to increase oil output in bid to regain market share
Saudi Arabia, Russia and six other key members of the OPEC+ alliance are expected to further hike oil production in a meeting Sunday, a move analysts say is aimed at regaining market share amid resilient crude prices. The anticipated output increase by the group of eight oil-producing countries known as the "Voluntary Eight" (V8), would be the latest in a series of hikes that began in April. In a bid to boost prices, the wider OPEC+ group -- comprising the 12-nation Organization of the Petroleum Exporting Countries (OPEC) and its allies -- in recent years had agreed to three different tranches of output cuts that amounted to almost 6 million barrels per day (bpd) in total. Analysts expect the V8 group -- namely Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman -- to agree on another output increase of 548,000 bpd for September, a target similar to the one approved in August. According to UBS analyst Giovanni Staunovo, the likely "quota increase is largely priced in" already, with the price of Brent, the global benchmark for oil, expected to remain near its current level of around $70 per barrel after Sunday's decision. Since April, the V8 group has placed increased focus on regaining market share over price stability, a policy shift after years of enforcing production cuts to prop up prices. - Likely pause in output hikes - But it remains unclear which strategy the group intends to pursue after Sunday's meeting. According to Warren Patterson, an analyst at ING, the V8 nations will likely "take a pause in supply hikes after September". Crude prices have held up better than most analysts had predicted since the production increases began. Experts say that is mainly due to traditionally high summer demand and significant geopolitical risk premiums being built into prices, particularly since the 12-day Iran-Israel war. Moreover, the actual increase in production between March and June was less than the increase in quotas during the same period, said Staunovo, quoting OPEC sources. However, the market is "set to move into large surplus" of oil supply from October, Patterson noted, warning that OPEC+ should remain careful not to be "adding to this surplus". "OPEC+ is doing the balancing act of regaining market share and not sending oil prices plummeting", which would lead to a drop it profits, Tamas Varga, an analyst at PVM, told AFP. Saudi Arabia, the group's most influential member, relies heavily on oil revenues to finance its ambitious plan aimed at diversifying the economy. The unwinding of another set of production cuts of around 3.7 million bpd is to be discussed at the next OPEC+ ministerial meeting in November. - Unstable environment - With demand being unstable in the face of US President Donald Trump's erratic policymaking on trade and supply under threat by geopolitical risks, experts say it is difficult to predict what is next for the oil market. In the latest twist in late July, Trump gave Moscow ten days to end the war in Ukraine, saying that his country would otherwise impose sanctions on Russia. "We're gonna put on tariffs and stuff," he vowed. Trump had previously hinted to an indirect 100-percent surcharge on countries that continue to buy Russian products, particularly hydrocarbons, in order to dry up Moscow's revenues. He has specifically targeted India, the second largest importer of Russian oil at around 1.6 million bpd since the beginning of the year. The developments could prompt OPEC+ to make further policy decisions. However, "OPEC+ will react only to real supply disruptions" and not to price increases linked to risk premiums, said Staunovo. pml-kym/rl/tc
Yahoo
4 hours ago
- Yahoo
OPEC+ slated to increase oil output in bid to regain market share
Saudi Arabia, Russia and six other key members of the OPEC+ alliance are expected to further hike oil production in a meeting Sunday, a move analysts say is aimed at regaining market share amid resilient crude prices. The anticipated output increase by the group of eight oil-producing countries known as the "Voluntary Eight" (V8), would be the latest in a series of hikes that began in April. In a bid to boost prices, the wider OPEC+ group -- comprising the 12-nation Organization of the Petroleum Exporting Countries (OPEC) and its allies -- in recent years had agreed to three different tranches of output cuts that amounted to almost 6 million barrels per day (bpd) in total. Analysts expect the V8 group -- namely Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman -- to agree on another output increase of 548,000 bpd for September, a target similar to the one approved in August. According to UBS analyst Giovanni Staunovo, the likely "quota increase is largely priced in" already, with the price of Brent, the global benchmark for oil, expected to remain near its current level of around $70 per barrel after Sunday's decision. Since April, the V8 group has placed increased focus on regaining market share over price stability, a policy shift after years of enforcing production cuts to prop up prices. - Likely pause in output hikes - But it remains unclear which strategy the group intends to pursue after Sunday's meeting. According to Warren Patterson, an analyst at ING, the V8 nations will likely "take a pause in supply hikes after September". Crude prices have held up better than most analysts had predicted since the production increases began. Experts say that is mainly due to traditionally high summer demand and significant geopolitical risk premiums being built into prices, particularly since the 12-day Iran-Israel war. Moreover, the actual increase in production between March and June was less than the increase in quotas during the same period, said Staunovo, quoting OPEC sources. However, the market is "set to move into large surplus" of oil supply from October, Patterson noted, warning that OPEC+ should remain careful not to be "adding to this surplus". "OPEC+ is doing the balancing act of regaining market share and not sending oil prices plummeting", which would lead to a drop it profits, Tamas Varga, an analyst at PVM, told AFP. Saudi Arabia, the group's most influential member, relies heavily on oil revenues to finance its ambitious plan aimed at diversifying the economy. The unwinding of another set of production cuts of around 3.7 million bpd is to be discussed at the next OPEC+ ministerial meeting in November. - Unstable environment - With demand being unstable in the face of US President Donald Trump's erratic policymaking on trade and supply under threat by geopolitical risks, experts say it is difficult to predict what is next for the oil market. In the latest twist in late July, Trump gave Moscow ten days to end the war in Ukraine, saying that his country would otherwise impose sanctions on Russia. "We're gonna put on tariffs and stuff," he vowed. Trump had previously hinted to an indirect 100-percent surcharge on countries that continue to buy Russian products, particularly hydrocarbons, in order to dry up Moscow's revenues. He has specifically targeted India, the second largest importer of Russian oil at around 1.6 million bpd since the beginning of the year. The developments could prompt OPEC+ to make further policy decisions. However, "OPEC+ will react only to real supply disruptions" and not to price increases linked to risk premiums, said Staunovo. pml-kym/rl/tc Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
Forced frenemies, Exxon and Chevron take diverging paths as leaders of the booming Permian
The top Big Oil giants in the Western Hemisphere, Exxon Mobil and Chevron also are the top producers in the booming Permian Basin—but they're pledging to take very different paths going forward. While West Texas production leader Exxon aims to spike its volumes another 50% in the next five years and keep growing beyond 2030, Chevron is taking a 'plateau' approach and focusing on free cash flow. The two companies reported their earnings Aug. 1 just two weeks after they were reluctantly forced into becoming partners when a ruling from a contentious arbitration fight in Chevron's favor allowed the company to close on its $53 billion acquisition of Hess and its crown jewel 30% stake in Exxon's oil discovery offshore of Guyana—arguably the biggest oil discovery of the century. However, for both companies, the Permian is their leading base of oil and gas volumes. In fact, the Permian represents almost half of the nation's record-high 13.4 million barrels per day of crude oil. Exxon reported growing its volumes to 1.6 million barrels of oil equivalent a day, including natural gas, while Chevron hit its 2025 target of 1 million barrels daily during the second quarter. Chevron aims to keep its Permian output relatively steady going forward. 'We're very pleased to have such a large shale portfolio and, at some point, growth is less the objective than free cash flow, and we're approaching that point,' said Chevron chairman and CEO Mike Wirth in an earnings call. On the other hand, Exxon aims to hit a whopping 2.3 million barrels daily in the Permian by 2030. Exxon chairman and CEO Darren Woods said he 'absolutely' disagrees with the idea of 'peak' Permian oil production amid weaker prices and a maturing basin. Exxon also finds itself in an enviable position after its $60 billion acquisition last year of Permian leader Pioneer Natural Resources. 'We're a long-ball hitter. Everybody in the unconventional [shale] space is playing the short game,' Woods said, citing scale and technology advantages that lead to much greater cost efficiencies, allowing for more value-oriented growth. 'That has led us to have growing confidence the projection we have past 2030 is an upward vector and will continue to grow.' Woods said Exxon is even open to more acquisitions going forward—just not growth for the sake of growth. Any deal must prove 'one plus one equals three.' 'That is, in my mind, the magic of successful acquisitions and what we're looking for,' Woods said. Exxon and Chevron both delivered quarterly beats, but their earnings are down in a lower oil price environment. Exxon's quarterly net income of $7.1 billion fell 23% year over year from $9.2 billion. Chevron's $2.5 billion in net income dipped 43% year over year from $4.4 billion. Hotly anticipated ruling In Guyana, the long-awaited ruling from an arbitration panel overseen by the International Chamber of Commerce decided July 18 that Chevron's acquisition of Hess did not violate Exxon's right of first refusal for Hess' Guyana stake because it bought the whole company and not just the Guyana position. Although most industry observers expected Chevron to prevail, Woods said Aug. 1 that the ruling was a 'surprise.' 'We were highly confident in our position,' Woods said. 'Having co-written the contract, we understood its intent and believed the contractual language conveyed it. Unfortunately, the tribunal interpreted it differently. While disappointed, we respect the process and the ruling.' Woods said the shared Guyana production volumes should grow to at least 1.3 million barrels of oil equivalent daily by 2030. For Chevron, the Hess and Guyana acquisition helps offset 'disappointing' global oil and gas exploration results in recent years. The company had leaned in on onshore U.S. volumes, cost reductions, and long-cycle international developments that were in development, Wirth said. Exploration will grow going forward, he said. 'But overall, our MO (modus operandi) or our reputation for capital discipline will remain.' This story was originally featured on
