Tuesday, November 02, 2021 / 10:40 PM / by Tom Kool of Oilprice.com / Header Image Credit: COP26

We will take a quick look at some of thecritical figures and data in the energy markets. 

We will then look at some of the key market movers early this week beforeproviding you with the latest analysis of the top news events taking place inthe global energy complex over the past few days. We hope you enjoy.




Chart of the Week

• One of the main pre-event soundbites of the COP26 summit was the call to bancoal, urged on by the conference's president Alok Sharma as well as G20 countries,yet coal still has a bright future in Asia. 
• Asia's largest coal consumers, China and India, have been resisting anystringent commitments from the summit as they see coal as a key part of theirgeneration capacity. 
• In Asia alone, there are some 200 coal-fired plants currently underconstruction, 90% of global greenfield coal capacity, with China topping thelist with 95 plants and India coming second with 28 projects.
• As of today, of the more than 2,600 coal-powered plants operating globally,71% are located in Asia. 

Market Movers

• UK major BP (NYSE:BP) has added more than a billion dollars toits 2021-2022 buyback scheme on theback of stronger-than-anticipated Q3 results, with net earnings surging to $3.3billion.
  China's national oil company Sinopec (SHA:600028)
• China's national oil company Sinopec (SHA:600028) discovered a huge shaleoil field at its Shengli play, with in-place reserves of heavy viscous crudeamounting to 3.4 billion barrels.
• Austria'sOMV (VIE:OMV), the largest oil and gas company in Central Europe,is considering splitting the companyinto separate energy and chemicals businesses in the upcoming years, mulling apotential buyback of Mubadala's 25% share. 
  
  

Tuesday, November 02, 2021

The start of the two-week COP26 summit in Glasgowhas demonstrated how unlikely a comprehensive global deal is, highlightingdivergences between the global south and north and between net energy producersand importers. These differences have been exacerbated by the abstention ofleading political figures from China, Russia, and Turkey. Whilst COP26 willmost probably achieve some moderate goals, such as in curbing methane emissionsor limiting deforestation, the chances for an overarching breakthrough arelimited. At the same time, Iran seems increasingly supportive of finding adiplomatic settlement to the JCPOA stalemate, which would put a cap on crudeprices going much higher. 

MethaneEmissions in the Crosshairs of COP26. The first days ofCOP26 in Glasgow brought a rare glimpse of unity as more than 90 nations signedup to the Global Methane Pledge, committing to cut methane emissions by 30%from 2020 levels by 2030. 

IndiaCommits to a 2070 Net Zero Target. In one of theearly-phase disappointments of COP26, India pledged to bring itscarbon emissions to net-zero by 2070, claiming fossil fuels will be around forquite some time in the world's largest democracy and it would drop GHGemissions by 33% compared to 2005 levels. 

HalliburtonMay Take Over Exxon's Stake in Iraqi Megafield. In a raremove for an oil services company, fracking giant Halliburton(NYSE:HAL) has expressed interest intaking over ExxonMobil's 32% operator stake in Iraq's giant West Qurna-1 fieldas the latter wants to quit Iraq altogether. 

ChinaTaps into Strategic Products Stocks. Constrained by anenergy crunch that is increasingly taking its toll on China's downstreamproduction, Beijing stated that it would release stategasoline and diesel reserves from strategic stocks, the first time that hasever been done.   

AustralianBillionaire Eyes Argentinian Green Hydrogen Bonanza. AndrewForrest, the owner of Australia's mining giant Fortescue Metals (ASX:FMG),is planning to invest upto $8.4 billion into green hydrogen projects in Argentina, using wind energy tosplit water into hydrogen and oxygen. 

IraqSeeks Billion-Dollar Deals with Saudi Arabia. Cash-strappedIraq is planning to signseveral deals worth tens of billions of dollars with Saudi Arabia, includingnatural gas production deals in the western desert as well as several solar anddesalination plants across the country. 

USCarbon Capture Credit Well Received by Coal Burners. Animportant part of President Biden's infrastructure bill, a proposed tax credithike for carbon capture and sequestration projects (up to 85 per metric ton,from the current 50/mt) was received positively by utility firms using coal asit might provide a new revenue stream for the industry. 

TotalEnergiesWants More Libyan Exposure. Whilst Libya's stability iscontinuously on the brink of collapse, French major TotalEnergies(NYSE:TTE) is reportedly nearing the purchase of Hess Energy's8.2% stake in the Waha Oil consortium, a deal that will probably be announcedin late November when Total's CEO visits Tripoli. 

EuropeanGas Prices Surge on Gazprom Supply Halt. A major gaspipeline that brings Russian gas to Germany was switched to flow eastwards thisSaturday, hindering EU-bound flows by Gazprom (MCX:GAZP) and sendingday-ahead TTF prices above 70 Euros per MWh again ($26 per mmBtu). 

BolsonaroMaintains Heat with Petrobras Privatization. Brazil'sPresident Jair Bolsonaro keeps on lambasting Petrobras (NYSE:PBR)for surging transportation fuel prices in the Latin American country, sayingthat he sees the company's privatization as an 'ideal move' withcrude prices this high.  

EPADissuades Potential Limetree Refinery Buyers. The USEnvironmental Protection Agency warned potentialbidders that the bankrupt 210,000 b/d Limetree Bay Refinery, scheduled to beauctioned this month, is at risk because of newly discovered groundwatercontamination near the site.

PakistanPanic Buying Strengthens LNG Upside. Pakistan issued anemergency tender for November-arrival LNG cargoes after its main suppliersGunvor and ENI (BIT:ENI) canceled their deliveries amidst forcemajeure, creating a tangible upside risk for LNG prices in the upcomingdays. 

TurkeyHikes Gas Prices for Power Plants and Industry by Almost 50%. Keepingconsumer gas prices unchanged, Turkey has raised the price of natural gas topower plants and industry by 47% and 48%, respectively, the largeststate-supervised price hike so far in Europe.

Credit:

The post Don't Hold Your Breath For A Breakthrough At COP26 firstappeared in Oilprice.com on November 02, 2021.  

Related News - Previous Oilprice IntelligenceReport 

1.       TheEnd of a Remarkable Rally in Energy Prices - OIR 291021

2.      The Oil Bulls AreRunning Riot - OIR 261021

3.      Is $85 the New Normalfor Oil Markets? - OIR 221021

4.      Oil Prices RemainElevated as The Energy Crunch Worsens - OIR 191021

5.     Oil Markets Unfazed By FallingImports From China - OIR 151021

6.      Is $80 The New Normalfor Oil? - OIR 121021

7.      Prepare for a ProlongedPeriod of High Energy Prices - OIR 081021

8.    Oil Prices ChargeHigher as Bullish Sentiment Builds - OIR 051021

9.     Oil Markets On Edge As OPEC plusMeeting Looms - OIR 011021

10.  Brent TemporarilyBreaks the $80 Mark - OIR 280921

Related News - Oil andGas 

1.      AELEX PetroleumIndustry Act Articles Series: Funds Created Under The PIA (Part 1)

2.     What Does International Oil CompaniesDivestiture Mean for Africa and for Climate Initiatives?

3.      The Subsidy Debate:Between the Devil and Deep Blue Sea

4.     Oil Prices Extend Gains Amid TightSupply

5.     Oando Plc Group Chief Executive toPromote the Role of Indigenous Energy Companies at AEW 2021

6.      Japan Asks OPEC forMore Oil

7.      FG Scraps DPR, PPPRA,PEF for New Agencies

8.    OPEC Monthly Market Report: NigeriaReports Marginal Production Uptick in September 2021

9.      NBCC Forum: ExpertsExamine PIA and the Opportunities for Nigeria's Economic Growth

10.  NBCC Forum: Experts Examine PIA andthe Opportunities for Nigeria's Economic Growth