DAILY ENERGY REPORT

Europe’s dependence on fossil fuels, Libya’s oil exports amid political schism, utilization at US LNG terminals, oil majors and lithium production, activists vs US govt over oil output, and more

Jun 29, 2023

∙ Paid

Summary:

Figure (1) above shows Europe’s energy consumption by fuel—that is the total primary energy consumption and it is not limited to the power sector. The data reveals that in 2022, 26% of total energy consumed came from oil, followed by natural gas (22%), coal (13%), nuclear (8%), hydro (7%), and renewables (14%).

EOA’s Main Takeaway:

Despite spending trillions of euros on the energy transition, 71% of the total primary energy consumed came from fossil fuels in 2022, and this does not include the amount of fossil fuels that was utilized for processing other energy sources such as wind turbines!

Europe is far away from ditching fossil fuels. Available data shows that the continent remains heavily dependent on oil and gas, in particular, for its energy needs.

STORY OF THE DAY

ARGUS: Libya’s oil exports face threat of fresh blockade

Summary:

Last week, Libyan authorities based in eastern Libya threatened to block oil exports due to a recurring dispute with a rival government in the western part of the country over the use of energy revenues, according to media reports. Argus reported today that the country’s production “is once again under threat”.

EOA’s Main Takeaway:

Based on the latest news, Osama Hammad, the prime minister of Libya's eastern-based government, has discussed the issue of “fair” distribution of oil revenues with Farhat Bengdara, the chairman of the Libyan National Oil Corporation (NOC). Our view is that news reports about threats to output and exports were published before the meeting; probably to put pressure on NOC’s chairman. Hammad has stated that blocking exports does not benefit anyone, and our current view is that the threat to halt Libyan crude exports is no longer there.

However, we would like to remind readers that the eastern-based government blockaded crude exports for several months in the first half of 2022, leading to a decline in production between 400,000 and 500,000 b/d.

On June 2, NOC reported that its oil production had reached 1.214 million barrels per day (b/d). According to OPEC’s latest Monthly Oil Market Report, Libya produced an average of 1.169 million barrels of crude in May.

NEWS OF THE DAY

1- S&P GLOBAL: US LNG export utilization rises heading into July as end of seasonal maintenance nears

Summary:

S&P Global reported today that total US LNG feedgas demand climbed yesterday to the highest level in four weeks, as a result of utilization at US export terminals which the report said has "continued to rebound from maintenance-driven lows [helping to] strengthen the near-term outlook for US gas demand.”

Data shows that feedgas flows were on track to hit around 12.7 Bcf/d yesterday, up more than 1 Bcf/d from June 27, the report said. This came after a recent low of around 10.8 Bcf/d on June 22.