Song of Oil and LNG

🇻🇪 Venezuela Does Not Recognize the UN Court's Position in the Essequibo Dispute The Venezuelan authorities, although participating in the UN court hearing the dispute with Guyana over the possession of the province of Essequibo, do not intend to recognize this jurisdiction. In the dispute over the territory, it is necessary to negotiate directly. This statement was made by representatives of Venezuela. In the UN court, it is important for Caracas to present its historical position, as well as to declare non-recognition of the decisions of the court, emphasize the Venezuelan authorities. Recall, Venezuela and Guyana have a century-long dispute over the ownership of Essequibo. After the discovery of oil reserves in the territory of Essequibo, the dispute has only worsened. The parties are still unable to reach an agreement. #Venezuela #UN @songofoil

🇨🇳🇺🇸 China's Purchases of U.S. Fuel Drive Global Oil Demand According to the IEA's latest Oil 2024 report, China's purchases of U.S. fuel are the most powerful driver of global oil demand. Since 2019, China has bought an additional 850,000 barrels per day of NGLs (natural gas liquids), which account for just over half of the growth in demand for all petroleum products during this period. NGLs, a by-product of extraction, can be used to produce petrochemicals. Their production has increased significantly in the U.S. due to the rise in shale production. Besides being used in the production of plastics, NGLs also include propane, which is used to heat homes and businesses. Bloomberg notes this as a rare sign of growing interconnectedness between the U.S. and Chinese economies. The IEA stated, "This has changed the dynamics of the oil and petrochemical markets." "Chinese petrochemical feedstocks have made the most important contribution to global oil demand growth in recent years, clearly aligned with one of the biggest drivers of the increase in global supply: the U.S. liquid hydrocarbons," summarizes the agency. #China #US #oil @songofoil

🇺🇸 Vermont Holds Oil Companies Accountable for Climate Change Damage An unexpectedly pleasant "gift" to the American oil and gas industry has left Vermont, which has become the first US state to legally make oil companies financially responsible for damage from climate change. According to the decision, by January 2026, state authorities must assess the total costs of greenhouse gas emissions from 1995 to 2024, including the impact on public health, biodiversity, and economic development. The amount of liability for specific polluters will then be determined. Vermont is noted as one of the states most affected by climate change, despite being the region with the lowest GDP in the country. The American Petroleum Institute, the largest oil and gas lobby group in the U.S., has come out strongly against the bill, arguing that it "retroactively shifts costs and liability for activities that were legal." Advocates say they are prepared for the upcoming court battles. Meanwhile, Maryland, Massachusetts, and New York are considering similar measures. #USA #oil #legislation @songofoil

🇨🇳🛢China's Oil Demand to Peak Before 2027 According to national company Sinopec, the accelerated introduction of electric vehicles in the PRC will lead to a rapid peak in crude oil consumption in the coming years. Coal demand will stop growing by around 2025, and natural gas consumption will peak by 2040. According to the China Energy Outlook 2060, released by the company, clean energy will dominate China's overall energy supply by around 2045, with hydrogen power claiming a significant role in the country's fuel and energy mix. According to the China Hydrogen Energy Forecast, the country's hydrogen consumption will approach 86 million tons by 2060. The market for the new industry will create an additional $635 billion (4.6 trillion Chinese yuan) by that time. The share of "clean" energy sources used to produce hydrogen will jump to 93%, with solar and wind power providing two-thirds of China's hydrogen production. According to the conclusions of analysts from Norway's DNV, China's oil consumption will halve by 2050, with a smooth decline in demand to meet growing oil consumption in petrochemicals, aviation, and shipping. By mid-century, the PRC will meet 84% of its oil needs through imports. The country's natural gas consumption will peak in the 2030s and then return to current levels by mid-century. By mid-century, 58% of the gas the country needs will be imported. The share of renewables in China's fuel mix will rise from the current 30% to 88% by 2050. China will strengthen its position as a world leader in green energy with a high level of development and export of renewable technologies. #China #oil @songofoil

✅ The Carbon Footprint of Military Conflicts Politico has assessed the contribution of warfare to the planet's carbon dioxide pollution. Military conflicts, which destroy existing energy supply infrastructure and cause significant damage to the parties involved, continue to pollute the atmosphere across the planet. In the first 60 days of the war in the Gaza Strip, more than 281,000 metric tons of carbon dioxide were generated by aircraft, tanks, rockets, and artillery. The Russia-Ukraine conflict has emitted more than 150 million metric tons of CO2, about three times the annual carbon dioxide pollution of New York City. According to the Conflict and Environment Observatory, a nonprofit organization, the military can account for about 5.5 percent of global greenhouse gas emissions. The U.S. military-industrial complex accounts for the lion's share of emissions, rivaling the annual carbon dioxide emissions of countries such as Norway or Sweden. According to the British project Military Emissions Gap, many countries continue to underestimate actual emissions from the military-industrial complex. #carbon @songofoil

🇺🇸 Oil McCarthyism in the American Way The US Senate has decided to bring back the good old days and start hunting top managers of American oil companies. The reason is conspiracy: secret ties between representatives of corporations and OPEC in order to maintain high oil prices. The proposal was made by the leader of the Senate majority and supported by 22 senators. The secret ties were brought up for a reason. In May, state regulators approved the sale of the Pioneer Shale for $60 billion in favor of Exxon. The deal was authorized, but the state did not approve CEO Scott Sheffield's transition to a new job. The reason is the alleged coordination of the company's production with OPEC. It's unclear whether the U.S. Justice Department will heed the Senate's statements, but one can only be happy for the potential investigation. The more the U.S. pressures its oil producers in search of spies and saboteurs, the less incentive they will have to go along with it and increase production, which will support oil prices. #USA #oil @songofoil

🇬🇧🏴󠁧󠁢󠁳󠁣󠁴󠁿Diesel Generators Found Inside Scottish Wind Turbines In a surprising revelation, more than 70 wind turbines operated by the Scottish company Scottish Power were found to be powered by diesel generators, according to a report by the British Sunday Mail. The disclosure came from an insider within the company who alerted the media to this environmental fraud. Scottish Power defended their actions, claiming they had to use diesel traction to run the wind turbines due to a "grid fault." However, they did not provide details on the frequency or quantity of diesel used to power their renewable energy systems. This incident is not the first time Scottish Power has faced accusations of covering up environmental breaches. Members of Parliament are increasingly skeptical about the trustworthiness of power companies in handling environmental issues. This case adds to the growing concerns about the misuse of Scotland's renewable energy potential and the possibility of numerous other unreported environmental violations. #UK #green @songofoil

🇸🇦Aramco Share Sale to Become One of the Largest in the World Saudi Arabia's offer for a stake in Aramco, which will raise up to $12 billion, is among the largest share sales in the world since the kingdom took the oil giant public in an IPO. The deal will be the sixth biggest share sale since the company raised $30 billion in an initial public offering in 2019. It would also become the fourth-largest follow-on offering during that period. The deal has been in the works for a year. Crown Prince Mohammed bin Salman said in 2021 that the government would seek to sell more Aramco shares in the future. Proceeds will help fund initiatives to diversify the economy away from oil. MBS, as the Crown Prince is called, has declared artificial intelligence, sports, and tourism as general areas of diversification. #SaudiAramco @songofoil

🇦🇿🇦🇪 SOCAR Takes a Bite of the Persian Pie Azerbaijan's state-owned company (SOCAR) has acquired a 3% stake in two fields in the United Arab Emirates' Persian Gulf - SARB and Umm Lulu - from Abu Dhabi's ADNOC, the companies report. "This is our first international mining investment and we are particularly pleased to invest in Abu Dhabi, building on our bilateral strategic relationship. We are determined to further develop our energy partnership with ADNOC," commented SOCAR head Rovshan Najaf. As a result, ADNOC will own 57% stakes in SARB and Umm Lulu, while Austrian OMV and French TotalEnergies hold 20% each. Previously, ADNOC bought a 30% stake in the Apsheron field in the Caspian Sea from an Azerbaijani company. The SARB field is located in the Persian Gulf, 200 km northwest of Abu Dhabi, with production expected to reach 111.2 thousand barrels per day by 2049. The Umm Lulu field is located 30 km northwest of Abu Dhabi, where production began in 2014, with peak oil recovery reaching 105,000 bpd. #Azerbaijan #UAE @songofoil

🇺🇸🇨🇳🇷🇺🇻🇪 WSJ: US Sanctions Have Created a "Global Shadow Economy" Western sanctions against Russia, China, Iran, Venezuela, and North Korea have created a global shadow economy, according to The Wall Street Journal (WSJ), citing officials and customs data. The three largest OPEC countries, Russia, Iran, and Venezuela, are supplying China with oil at discounted prices. China, the world's largest oil importer, was purchasing more than 11 million barrels a day in 2023 to support its economy, the Journal reported. The countries involved use the oil revenues to buy sanctioned goods. These countries utilize the yuan and Chinese payment systems for trade to limit Western countries' access to financial data and weaken their ability to enforce sanctions, stated security expert Kimberly Donovan. #USA #economics @songofoil