EU GAS DEMAND UP
NGW - The joint Organisations Data Initiative has just released oil and gas data for 2016. For the second year, EU gas consumption was up (this time by 7.4%) while domestic production was down by 2%.
Of the main EU markets, the UK witnessed an increase of 13% thanks to gas being more competitive than coal for power generation following the implementation of the £18/tCO2 Carbon Price Support. French gas demand is up by 10% owing to poor availability of nuclear. The record growth is for Greece, up by 29% in 2016 compared with 2015. But demand there is still 14% beiow its 2011 record.
On the production side, the start-up of the Corrib field in Ireland and the Laggan & Tormore gas fields in the UK was not enough to offset the huge drop in Groningen production. Total EU production is down by 2%. The Cygnus UK offshore gas field that started at the end of 2016, should help the UK to continue to grow production in 2017.
This means that imports are up by 11.7% with foreign dependency now above 70% (71% in 2016 vs 68% in 2015). With future consumption flat and little hope of mitigating the terminal decline of domestic production and the UK soon out of the EU, the bloc's foreign dependency should continue to rise to soon reach 80%.
|October, 15, 12:30:00|
|October, 15, 12:25:00|
|October, 15, 12:20:00|
|October, 15, 12:15:00|
|October, 15, 12:10:00|
|October, 15, 12:05:00|
GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.