Daily Energy Report
US Crude Production hits new high, Biden slows LNG, Russia gas link to China, Copper mining protests, Qatar LNG contracts, Argentina fuel shortage, US offshore wind bailout, and more.
Chart of the Day: US Crude Oil Production Hits New Record High
Summary
Figure (1) above shows US crude oil production since 2019. The EIA released the August data today. It shows that US production reached a record high in August.
EOA’s Main Takeaway
We were among the few who predicted that US oil production would continue to grow. We were the first to predict early on that US oil production will hit a new record. For reference, our forecasts of US oil production in our 2023 Oil Market Outlook that we published in early January is higher than other organizations’ predictions as shown in the chart below.
Story of the Day
S&P Global: Qatar Energy’s Long-Term LNG Contracts with European Buyers to Include Nat Gas Indexation
Summary
Qatar Energy's recent long-term contracts for LNG delivery to Europe included exposure to Europe's natural gas hub prices. This indicates an evolution in the pricing mechanism of long-term deals towards natural gas hub pricing rather than crude oil pricing. This shift reflects the relevance of downstream natural gas marketing prices.