TotalEnergies sees 'exceptional' refining result in 2Q

Spanish Market: Crude oil, Natural gas, Oil products
15/07/22

TotalEnergies expects its refining and chemicals division to deliver "exceptional" results in the second quarter, driven by "very high" margins for middle distillates and gasoline.

The company said on 15 July that the variable cost margin achieved by its European refining business averaged $145.70/t in April-June, more than three times the level of the previous three months and around 14 times higher than the second quarter of 2021. It marks the highest refining margin by some distance since the company began reporting a variable cost indicator in 2018.

Refinery output across the industry struggled to keep up with demand in the second quarter, while gains in oil product prices and crack spreads outpaced rises in crude values. Other integrated oil and gas companies — including Shell, ExxonMobil and Spain's Repsol — have also flagged up a pending windfall from soaring refining margins in recent trading updates.

Upstream profits are set to be strong as well, given the rise in oil and gas prices compared with the second quarter last year. But for TotalEnergies, the higher price environment will be partially offset by a drop in production. The firm expects its upstream output, excluding LNG, to be around 100,000 b/d of oil equivalent lower than the first quarter on the back of disruptions in Nigeria and Libya, as well as a higher volume of planned maintenance.

The company said it expects to report a strong performance from its integrated gas, renewables and power segment "but without replicating the exceptional contribution of the first quarter of 2022".

By James Keates

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18/02/25

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow

Georgetown, 18 February (Argus) — Guyana, one of the fastest-growing crude producers in the world, sees little threat from US President Donald Trump's pledge to flood global markets with cheap supplies. Despite Trump's vow to scrap a slew of regulations he claims are holding back US oil producers, Guyana's vice president Bharrat Jagdeo does not expect there to be a "major supply response." "If the prices come down, as President Trump wants, then it would also make some of the existing operations in the US — particular with (hydraulic fracturing) fracking — it may make them not feasible," Jagdeo said on the first day of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana, on Tuesday. Guyana's low breakeven costs and the quality of its crude will help it to maintain a competitive advantage going forward, he said. The vice president shrugged off concerns over the oil market as concerns grow over waning demand from China, the top importer. He pointed out that ExxonMobil just started the approval process for its seventh and eighth projects in the giant Stabroek block offshore Guyana, where the discovery of oil in 2015 has transformed the economic fortunes of the tiny South American nation. "They (ExxonMobil) study the oil markets, they probably know the oil markets more than any government official," Jagdeo said. "Clearly they see in the future a demand for fossil fuel, and they believe that in Guyana we have a unique opportunity to supply that market." Demand for fossil fuels is likely to remain "relatively high" for the foreseeable future while renewable sources lag behind, he said. Guyana, located on South America's northern coast bordering Venezuela, Suriname, and Brazil, has become a fast-growing non-Opec supplier since oil was first pumped in 2019. Output has accelerated to 650,000 b/d from zero in the space of around five years. And gross output is seen growing further to 1.3mn b/d by the end of the decade as new projects come online. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US court pauses refiner's biofuel case after EPA shift

18/02/25

US court pauses refiner's biofuel case after EPA shift

New York, 18 February (Argus) — A US federal appeals court has paused the Environmental Protection Agency (EPA)'s rejection of a refiner's request for exemptions from federal biofuel blend mandates, with relief possible for two more refiners as the US reassesses policy under a new administration. A three-judge panel on the US 5th Circuit Court of Appeals last week granted a request from Calumet's 57,000 b/d refinery in Shreveport, Louisiana, to pause a recent EPA action denying the refinery relief from its 2023 obligations under the federal Renewable Fuel Standard. The stay will remain as the court continues reviewing the legality of EPA's rejection, issued in the waning days of President Joe Biden's administration. Under the program, EPA sets annual mandates for blending biofuels into the conventional fuel supply but allows oil refineries that process 75,000 b/d or less to apply for exemptions if they can prove they would suffer "disproportionate" economic hardship. The Biden administration denied these petitions en masse, though most of these rejections were struck down by courts concerned with the government's reasoning. During his first term, President Donald Trump was more generous with refinery relief, which in turn weighed on biofuel demand and the prices of Renewable Identification Number (RIN) credits at the time. Though the 5th Circuit did not explain its decision, EPA had shifted course after the presidential transition, telling the court earlier in the week that it did not oppose Calumet's request for a stay and that it was reconsidering the refiner's earlier exemption petition. The agency said in other court cases that it would not oppose similar pauses on recently issued waiver rejections affecting Calumet's 15,000 b/d oil refinery in Great Falls, Montana, and CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma. EPA's ambivalence makes stays more likely, leaving those refiners with little reason for now to enter the market for RIN credits. The agency still says it "takes no position on the merits" as its review of small refinery exemptions continues but the filings at least suggest the possibility of reversing prior rejections. EPA has not yet signaled a more substantive policy around how it will handle similar small refinery requests, which have piled up in recent months. There were 139 pending petitions covering ten compliance years according to the latest program data. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU proposal to extend gas filling targets due in 1Q

18/02/25

EU proposal to extend gas filling targets due in 1Q

London, 18 February (Argus) — The European Commission will publish a legislative proposal on the extension of its gas storage regulation before the end of March, according to a leaked document seen by Argus . The commission will work with member states to "promote more co-ordinated and flexible gas storage refilling, including with dynamic targets to reduce system stress linked to gas storage refilling and support summer preparedness", according to the document. The existing regulation — which obliges member states to fill their storage capacity to 90pc by 1 November, but with derogations for certain countries — expires at the end of this year. The EU's storage fill mandate has supported front-summer contracts across European hubs in recent months, as stronger underground storage withdrawals than in recent years have pushed up expectations of summer injection demand. Summer 2025 contracts have disconnected at well above winter 2025-26 prices. Filling up storage before winter in the context of inverted seasonal spreads has become a growing concern of member states . Some countries, including Germany, have called for the storage fill requirements to be less rigid . Last week, discussions between member states and the EU's gas co-ordination group regarding the potential relaxation of EU storage obligations led to tightened summer-winter spreads. The TTF summer 2025-winter 2025-2026 spread was €2.75/MWh on 17 February, in from €5.29/MWh a week earlier. Tighter gas market supervision The commission will consult stakeholders on tightening the supervision of gas-trading markets, according to the document. The consultation will cover exemptions from conduct and prudential rules applicable to investment firms for which gas derivatives trading is "ancillary" to their main commercial business, as well as position limits in EU spot markets. It will consult on the joint supervision of gas trading by energy and financial regulators and the creation of a database gathering all open positions held by market participants. These measures were promoted in a report by former European Central Bank president Mario Draghi published in September last year . Draghi warned that mounting activity and speculation in the gas derivatives market could lead to price volatility and called for greater oversight of gas trading. The commission had already set up a gas market task force earlier this month to scrutinise European gas markets and identify behaviours that distorted prices, according to the document. The gas market task force will provide recommendations by the fourth quarter of this year. By Isabel Valverde Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Shell starts construction of base oil unit at Wesseling

18/02/25

Shell starts construction of base oil unit at Wesseling

London, 18 February (Argus) — Shell has started construction of a Group III base oil production plant at its Wesseling oil refinery in western Germany, with commissioning scheduled by 2028, the company told Argus today. Two columns of 54 and 37 meters for the base oil conversion unit have been delivered and assembled at the site, Shell said. It announced plans to convert its Wesseling hydrocracker into a Group III base oil production unit at end of January 2024. The unit is anticipated to have a production capacity of 300,000 t/yr. Shell will cease crude distillation by March 2025 at the 147,000 b/d Wesseling refinery, as the company looks to reduce CO2 emissions. The base oil plant will receive vacuum gasoil (VGO) feedstocks from Shell's neighbouring 187,000 b/d Godorf refinery. European Group III prices have dropped on a persistent supply overhang. Argus -assessed prices for fca northwest Europe Group III 4cst with partial or no approvals fell by 23pc on the year to $1,020/t on 7 February. Suppliers in the Mideast Gulf target European buyers with ample spot supplies to capitalise on higher margins. Europe is the most attractive export outlet as it remains dependent on imports of Group III material owing to its smaller Group III production capacity in comparison to other regions. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Нефтетранспорт - НТС: правила на рынке меняются

18/02/25

Нефтетранспорт - НТС: правила на рынке меняются

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