Daily Energy Report
Daily Energy Report
China reduces crude imports an uses inventory, Oil/Gas spending to recover, Norway companies increase E&P investment, Oil stocks are back, US uranium production up, Carbon capture issues, and more
Chart of the Day: As predicted, China reduced imports and used its inventories.
Summary
Figure (1) above shows how China built its inventories, including the SPR, then it started withdrawing from it as prices rose in recent weeks.
EOA’s Main Takeaway
As we predicted in previous reports, including a special report entitled, Busting Myths about China’s Oil Demand and Imports, China reduced imports and started withdrawing from its reserves as oil prices increased in recent weeks. This is one of the main reasons why the oil rally stalled.
China, literally, bought low and sold high! Based on our estimates, China might withdraw an additional 45 million barrels in the coming weeks.
Story of the Day
Wood Mackenzie: Oil & Gas Exploration Spending to Recover Through 2027
Summary
Exploration spending is projected to average US$22 billion annually over the next five years, as reported by Wood Mackenzie. Factors like exploration economics, energy security, and new frontiers are driving this increase, with NOCs and Majors leading the charge. From 2006-2014, spending peaked at US$79 billion, but it won't approach these levels due to factors like the lack of high-quality prospects and capital discipline. The spending growth is set to commence in 2023, with a 6.8% increase from 2022 figures as shown in Figure (2). Deepwater and ultra-deep-water regions, especially the Atlantic Margin of Africa and the Eastern Mediterranean, are poised for significant growth as shown in Figure (3). Key exploration areas include Uruguay, Argentina, Malaysia, Namibia, Greece, and Egypt's Nile Delta.