Markets

Two recent developments reflect significant opportunities and challenges in the global oil exploration and production (E&P) sector.

On Aug. 1, 2024, OPEC+ ministers confirmed their commitment to the current oil output policy, which includes a gradual increase in production starting in Oct.

OPEC+ is grappling with key decisions regarding its production policy as crude prices dip and market conditions shift.

In 2024, the US is expected to contribute significantly to non-OPEC oil production growth, with Goldman Sachs projecting it will account for 60% of this increase.

Chevron Corp.'s $53B acquisition of Hess Corp. has encountered further delays as a scheduled arbitration hearing regarding the Stabroek block in Guyana has been set for May 2025.

The major Middle East OPEC producer has recently announced a major oil discovery in the offshore Al-Nokhatha field, revealing significant potential with estimated reserves.

US crude production is projected to rise steadily, reaching an average of 13.98MM b/d in the fourth quarter of 2025, according to the latest Short-Term Energy Outlook (STEO) from the Energy Information Administration (EIA).

Energy Secretary Ed Miliband has enacted an immediate ban on new North Sea oil drilling licenses, a move that overrides departmental officials and could lead to legal confrontations with oil companies.

Hurricane Beryl made landfall in Texas, causing significant power outages in Houston and shipping delays, but it had a limited impact on oil production and refining assets, according to Claudio Galimberti from Rystad Energy.

The US oil and gas sector is experiencing a deceleration in production growth due to lower prices and a strategic focus on shareholder returns.