About 30pc of Gulf of Mexico oil output still shut in

Spanish Market: Crude oil, Natural gas
12/10/26

About 30pc of offshore oil production in the Gulf of Mexico was still shut in on Monday as operators scrambled to restore operations in the wake of Hurricane Isaias.

Around 604,503 b/d of offshore Gulf oil production and 531mn cf/d of natural gas production were off line as of noon ET on Monday, according to the US Marine Minerals Administration, equal to about 30pc and 25pc of the region's production, respectively. That is down from the 1.5mn b/d of oil and 1.3 Bcf/d of natural gas production off line shortly before the storm made landfall.

Firms including BP and Shell began to redeploy staff and restart production from offshore platforms over the weekend after Isaias made landfall in Florida as a category 2 storm late on Friday.

By Stephen Cunningham

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12/10/26

Saudi Arabia eyes 3mn b/d more Hormuz bypass capacity

Dubai, 12 October (Argus) — Saudi Arabia plans to raise its capacity to bypass the strait of Hormuz by 3mn b/d of crude, to 10mn b/d, within the next two to three years, energy minister Prince Abdulaziz bin Salman said today. Since the start of the US-Iran war, the 7mn b/d East-West crude pipeline has allowed Saudi Arabia to channel part of its crude from production facilities in the east to the Red Sea terminal at Yanbu and away from the dangerous and largely closed Hormuz waterway. But repeated attacks on key energy infrastructure, including the East-West pipeline, have highlighted the need for Riyadh to add more redundancy to its export system. State-controlled Aramco is studying two new oil export routes to bypass the strait, in addition to the three it already has, its chief executive Amin Nasser said last week. These plans are at feasibility stages, he said, and probably several years from completion. Speaking today at the WPC Energy Congress in Riyadh, Prince Abdulaziz announced two other initiatives, including a plan to repurpose a gas pipeline. "We have a gas pipeline… [and] we are working with Aramco to make sure that we can have it as dual use, such that you will have pumping stations and compressor stations," said Prince Abdulaziz. "We could then utilise it, subject to the situation." He did not disclose the pipeline's route, saying only that it should allow the country to send 1.2mn b/d of additional crude away from Hormuz within seven or eight weeks. This could rise to 3mn b/d with further investment, he said. When the initial phase of this project is complete, the 1.2mn b/d will be available to Aramco until May, Prince Abdulaziz said, after which it will need to be cleaned and switched back to gas ahead of hotter summer months when gas demand peaks. "We are also improving the pumping stations of the East-West pipeline, so hopefully, in a way, we may end up with 10mn b/d [of Hormuz bypass capacity] within the next two to three years," he said. Pipeline partnerships The US-Iran war and the effective closure of the strait forced several Mideast Gulf countries to shut in a significant part of their crude production because of limited storage and alternative export routes. Saudi Arabia and the UAE have pipelines that allowed them to divert at least some of their output away from the strait. Kuwait, Qatar and Bahrain do not, severely limiting their ability to export crude and products. Kuwaiti state-owned KPC chief executive Sheikh Nawaf al-Sabah said in June his company was exploring tie-ups with neighboring countries like Saudi Arabia and the UAE that could help move its oil to market. Prince Abdulaziz appeared to allude to this today, saying Saudi Arabia and Kuwait are engaged on a project to jointly develop a new Hormuz bypass pipeline. "The idea is to [broaden] the ownership, the operatorship, the design, the financing… to ensure that it becomes… not a Saudi or a Kuwaiti pipeline, but an international one," he said. "Because the lesson learned is that the more international participation in a pipeline, the better the chances that they will be protected." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Oil sands producers prime the pump for pending boom

12/10/26

Oil sands producers prime the pump for pending boom

Calgary, 12 October (Argus) — Two leading Canadian energy companies last week made more bold, strategic changes in favour of core oil sands operations as new federal energy policy becomes clearer. The asset shuffle comes in anticipation of a potential increase in upstream development to a level not seen for over a decade, with operators focused more on long-term legislative support than current high oil prices. Cenovus Energy signed a C$5.7bn ($4bn) deal to acquire smaller rival Athabasca Oil , less than two years after swallowing MEG Energy for C$8.6bn. The deal is "strategically sound", even though Cenovus is paying full value and it may not provide immediate gratification for investors, bank RBC Capital Markets says. "Athabasca is like an oil sands unicorn — one of the last remaining (mostly) pure-play public oil sands producers," it says. "Cenovus recognises this scarcity." Athabasca brings 40,000 b/d of production, but more importantly it offers over 75 years of oil reserves near existing Cenovus assets. The buyer says it could nearly triple Athabasca's output to 115,000 b/d by 2032, which is also the earliest that Canada's planned 1mn b/d Pacific Link pipeline to the west coast could enter service. Included in future plans is Athabasca's undeveloped Corner asset, which could become the first greenfield oil sands project to be realised since 2013. Suncor Energy, meanwhile, has cashed out of some interests offshore Atlantic Canada for C$1.2bn to UK independent Ithaca Energy, as it restructures its balance sheet to focus on oil sands operations. Suncor has regulatory approval to produce 160,000 b/d of bitumen at its proposed Lewis project near Fort McMurray, Alberta. The company this year also applied to increase the capacity of its Firebag steam-assisted gravity drainage project to 700,000 b/d from 331,500 b/d. The strategic moves by Cenovus and Suncor come just days after Canadian prime minister Mark Carney deemed Pacific Link a project of national interest, ensuring its application receives fast-track treatment by the federal Major Projects Office. Giving Alberta's energy industry further reason for optimism is pending legislation such as the Building Canada Strong Act, or Bill C-39. This will overhaul the federal regulatory process, and in turn give prospective project developers more certainty and a sign Ottawa is listening. And Canada's proposed Productivity Mega Deduction — which would allow firms to immediately depreciate spending on large capital projects — has drawn plaudits from the industry. Pieces falling into place These pending changes to the federal fiscal framework for oil sands operators are "not immaterial", Cenovus chief executive Jon McKenzie said while announcing the Athabasca deal. He also expects to soon see new growth incentives relating to Alberta's royalty structure. "All of that fits together to draw capital back into the resource... and probably accelerate growth," McKenzie said. Enbridge, Canada's largest pipeline company, also gave Ottawa credit for encouraging private-sector investment by lightening the regulatory burdens his industry has endured for years. "These reforms send an important signal: Canada is now serious about getting projects built again," chief executive Greg Ebel said. Enbridge sank $600mn into the proposed Northern Gateway pipeline before Ottawa ultimately rejected it in 2016. Carney said his government is now signalling its interest in major projects earlier, so investors have more clarity. The Alberta Energy Regulator sees a steady climb in the province's capital expenditure over the next decade to C$40.9bn by 2035, up by 29pc from C$31.8bn in 2025 — the latter already a 10-year high. Like their US counterparts, oil sands operators remain cautious with their capital expenditure, despite this year's higher profits and cash flow, according to a Deloitte report released on 8 October. By Brett Holmes Capital expenditures in Alberta C$bn Oil sands Oil and gas Total 2015 22.9 16.3 39.2 2020 7.3 8.5 15.8 2025* 14.7 17.1 31.8 2030* 17.8 20.2 38.0 2035* 18.2 22.7 40.9 * estimates — AER, Capp Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia expands PGO scheme to biomethane

12/10/26

Australia expands PGO scheme to biomethane

Sydney, 12 October (Argus) — Australia's Clean Energy Regulator (CER) has opened applications for biogas and biomethane projects to participate in the Product Guarantee of Origin (PGO) scheme, broadening the certification framework beyond hydrogen and creating a pathway for renewable gas producers to verify the emissions credentials of their products. The regulator today updated and published participation guidance allowing companies to apply to the PGO scheme if they produce, distribute or consume biogas produced through anaerobic digestion and biomethane produced through biogas upgrading. The update also extends participation to hydrogen produced through gas reforming, hydrogen produced using solid gasification or pyrolysis, iron ore and aluminium. The PGO scheme, a voluntary framework to track emissions, was launched in November 2025 . The latest expansion follows a December 2025 consultation on expanding the hydrogen pathway and adding new products. The PGO scheme forms part of the federal government's broader Guarantee of Origin framework established under the Future Made in Australia (Guarantee of Origin) Act 2024. The expansion builds on the scheme's existing coverage of hydrogen produced through electrolysis and is intended to provide independently verified information on the emissions intensity and origin of eligible products. Under the scheme, participants must register with the CER before establishing production, delivery or consumption profiles that allow them to create and manage PGO certificates. Participants are required to provide auditable data on emissions, energy use and production volumes throughout a product's lifecycle. Biomethane facilities in Australia are already eligible to generate renewable gas guarantee of origin (RGGO) certificates under GreenPower's Renewable Gas Certification scheme, linked to their renewable gas production, with the first ever reported trade disclosed in August 2026 . By Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Gulf production being restored post-Isaias

11/10/26

US Gulf production being restored post-Isaias

Houston, 11 October (Argus) — Oil and gas producers in the US Gulf of Mexico are restarting production shut-in last week by Hurricane Isaias, which came ashore as a Category 2 storm late on 9 October near Destin, Florida. About 1.17mn b/d of offshore Gulf oil production and 1 Bcf/d of natural gas production were still off line as of noon ET on Sunday, according to the US Marine Minerals Administration, equal to about 57.4pc and 49.1pc of the region's production, respectively. That is down from the 1.5mn b/d of oil and 1.3 Bcf/d of natural gas production off line shortly before the storm made landfall . BP said on Saturday it was returning personnel to its Na Kika and Thunder Horse platforms to restart operations shut down earlier in the week as the storm passed. The company is also returning non-essential personnel to its Argos , Atlantis and Mad Dog platforms. Shell on Sunday said there was no storm damage to its Mars , Olympus , Ursa , Vito or Appomattox offshore Gulf facilities, and it was in the process of returning staff to them. The US Department of Energy on Saturday said it would exchange a combined 4mn bl of oil from the Strategic Petroleum Reserve (SPR) with ExxonMobil and BP to offset any disruptions in production from the storm. The oil will be repaid to the SPR with additional crude at a later date. The 2mn bls for ExxonMobil are an acceleration of previously awarded SPR crude. The hurricane-related shut-ins led US Gulf coast crude prices to rise last week against the light sweet benchmark. Louisiana-delivered Mars hit a $3/bl premium over WTI Nymex on 8 October, a $1.60/bl increase since the start of last week and the widest since 17 September. Lighter sour Thunder Horse and Heavy Louisiana Sweet both traded more than $1.50/bl higher. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Assembly talks key to Venezuela elections: Rubio

09/10/26

Assembly talks key to Venezuela elections: Rubio

Caracas, 9 October (Argus) — Productive discussions between Venezuela's duel national assemblies are key to eventually holding new elections there, US secretary of state Marco Rubio said today after meeting with the leader of the opposition-controlled legislature. Head of the 2015-elected assembly Dinorah Figuera "has our 100pc percent support" in working towards electoral reform in Venezuela, Rubio said. The 2015 assembly — the last one the US recognizes as legitimate — and the acting assembly led by the brother of interim President Delcy Rodriguez began a series of reconciliation talks in August that will resume in a third phase on 14 October. The next round is meant to focus on selecting new member of the supreme court, which plays a key role in elections, and guaranteeing political rights, Rubio said. Future talks will seek to reform the national electoral council and repealing laws that repress freedoms. The meeting in Washington DC comes as former hopeful president candidate for the opposition Maria Corina Machado has been unable to return to Venezuela despite expressing a desire to do so. Machado and other members of Venezuela's political opposition that faced arrests and harassment under former leader Nicolas Maduro have called for quick elections after the US seized Maduro on 3 January. Some US oil producers have also pointed to elections as a key sign of long-term stability needed for major investments, but Rubio has repeatedly said that Venezuela's institutions must be stabilized first. A peaceful transition in Venezuela "will require a lot of hard work, a little bit of patience [and] free and fair elections", Rubio said. Acting national assembly leader Jorge Rodriguez has pointed to potential elections in 2030 . Both Delcy and Jorge Rodriguez expect to continue in their roles until at least the end of the administration of US president Donald Trump in 2028, some national assembly sources have said. Protests have broken out in Venezuela in recent weeks, mostly against worsening public services and frequent power outages. The lack of clear results from assembly talks and no roadmap to elections are among other complaints. By Jose Chalhoub Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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