March 23, 2021

March 23, 2021
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  • Saudi Arabia seeks U.S. help combatting attacks on oil sites
    • On Sunday, the Saudi navy began drills in the Persian Gulf to enhance the security of “Vital installations” and safe navigation of vital shipping passages
    • The military exercises follow three attacks on Aramco sites this month, alone. On Monday, Saudi-led coalition planes struck military positions belonging to the Iran-backed Houthi rebels responsible for the attacks
  • Barclays revises its 2021 oil price forecast, supply outlook
    • Barclays increased its price forecast for Brent and WTI by $4, to $66 and $62, respectively. Further, the bank expects prices to average $5-$6 higher y-o-y in 2022
    • The bank noted that private operators can still drive U.S. supply higher, but prices will need to strengthen. U.S. oil output is expected to be 5% below the 4Q2019 level at the end of 2022
  • Oil prices have weakened this morning as renewed lockdowns in Europe signal demand recovery may still be vulnerable to spikes in virus cases
    • A new variant of COVID-19 has led to a third-wave, causing countries to lockdown their population to mitigate the spread of the virus
    • Germany, Europe’s biggest oil customer, has extended its lockdown until April 18
  • Annova LNG has backed-out of its proposed 6.5 million export facility in Brownsville, Texas, citing “changes in the global LNG market” (Energy Voice)
    • The Annova LNG facility was slated to receive natural gas from the Agua Dulce, Texas, region
    • Commissioning on the project was expected in 2024, with commercial operations in 2025. The facility was expected to receive 900 MMcf/d of feed gas through an intrastate pipeline
    • The decision to discontinue to liquefaction project came after power generator Exelon failed to sell its majority stake in the project, an Exelon spokesman told Platts
  • FERC has received numerous comments from conservation and community groups and individuals regarding MVP’s new amendment
    • On March 22, opposing groups filed comment on the Mountain Valley Pipeline (MVP) certificate amendment request to change the crossing method at 120 locations
    • MVP has faced a litany of opposition over the past few years, and its project cost have soared to $6 billion from the original $3.25 billion estimate
    • Higher cost due to challenges and delays is what scrubbed the Atlantic Coast Pipeline (ACP) – a pipeline that was slated to run on a similar path to MVP

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