June 16, 2020

June 16, 2020
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  • WTI is up $1.27 to $38.39/Bbl, and Brent is up $1.29 to $41.01/Bbl
  • Oil prices rose on Tuesday morning, as the IEA increased its oil demand forecast for 2020
    • The International Energy Agency (IEA) forecast oil demand at 91.7 MMBbl/d in 2020, 0.5 MMBbl/d higher than its estimate in last month’s report, citing higher than expected consumption during the lockdowns (Reuters)
    • A decline in air travel due to the coronavirus means the world will not return to pre-pandemic demand levels before 2022, according to the agency
  • The number of drilled but uncompleted (DUC) wells in seven major U.S. shale basins fell in May continuing a downtrend, the Energy Information Administration (EIA) said on Monday
    • DUC wells eased by 33 to 7591 in May compared to the previous month, according to the EIA’s monthly Drilling Productivity Report
    • AEGIS notes that DUC wells can act as a company’s source of supply growth even as active rig counts languish

 

  • Natural gas is down 1.7c to $1.652/MMBtu
  • The U.S. Supreme Court has ruled that a lower court overstepped when it canceled a critical permit necessary for the completion of the Atlantic Coast Pipeline (ACP)
    • Construction on ACP will proceed once the required permits have been granted, after being at a standstill since the lower court’s ruling in December 2018
    • The 1.5 Bcf/d project runs 594 miles from Harrison County, West Virginia to Robeson County, North Carolina
  • U.S. Energy regulators approved Venture Global LNG’s request to proceed with limited site preparation for company’s proposed Plaquemines LNG export plant
    • The company has said it plans to begin construction work in mid-2020, before financially closing on the project by the end of the year, with an in-service date targeted for 2023
    • The Plaquemines LNG export facility will have capacity of up to 20 MTPA, or around 2.6 Bcf/d

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