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

: Crude oil, Natural gas
26/10/12

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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26/11/13

Brazil's ANP resumes tariff review, suspends pause

Sao Paulo, 13 November (Argus) — Brazilian hydrocarbons regulator ANP confirmed on Friday that it had received a letter from state-controlled Petrobras informing that the company was no longer interested in continuing bilateral negotiations with pipeline operator NTS over the extension of legacy natural gas transport contracts. The regulator therefore decided to lift the 15-day suspension of the gas transport tariff review , which its directors had approved at their latest board meeting on 9 November. The issue will now be taken up again at an extraordinary meeting scheduled for 18 November. The pause in the tariff review discussions followed a request from the mines and energy ministry (MME), which had brought to ANP a request from NTS and Petrobras for additional time to advance bilateral negotiations. Petrobras had been awaiting the formal submission of an alternative proposal from NTS to extend the legacy contracts, which the company said did not occur within the established timeframe. NTS did not respond to a request for comment by Argus by the time of publication. In a letter sent to ANP and made public on Thursday evening, Petrobras said it believed there was "no longer room to continue negotiations [with NTS], which would necessarily have to be approved by the agency, given that ANP itself has already made clear that the solution proposed by NTS runs counter to the interests of transport system users and, consequently, Brazil's natural gas industry". Petrobras concluded by arguing that any further proposal from NTS should be submitted directly to ANP rather than discussed bilaterally. The pipeline network operated by NTS extends for more than 2,000km (1,242 miles) and connects the southeastern states of Rio de Janeiro, Minas Gerais and Sao Paulo, which together account for roughly half of Brazil's total gas consumption. It is also connected to major processing facilities handling pre-salt gas production and LNG import terminals, as well as to TAG's pipeline network, which links the southeast and northeast regions, and to TBG's pipeline, which connects Brazil with Bolivia. The resumed transport tariff review covers Brazil's five gas pipeline operators: NTS, TAG, TBG, GOM and TSB. At its 18 November meeting, ANP is expected to address the tariffs for the 2026-30 cycle. The current discussion comprises three phases: an investment return rate (WACC), each transporter's regulatory asset base (BRA), and maximum allowed revenues. ANP completed the first two stages and planned to advance to the final phase at its meeting on 9 November, when NTS introduced its proposal, followed by the mines and energy ministry's request for more time to discuss the matter. The dispute stems from ANP's conclusion that assets linked to NTS' Malha Sudeste legacy contract had already been fully paid for through tariffs , resulting in a zeroed BRA. NTS and representative association Atgas challenged both the methodology and outcome in court . NTS later warned it would halt investments until "a more secure regulatory environment" emerges, drawing criticism within the gas sector. To avoid a zeroed BRA, NTS sought support from Petrobras and proposed an alternative solution: extend active legacy contracts through 2041, preserve the full R5.3bn asset base, and increase the WACC to 10.09pc from the regulator-approved 7.63pc. It would also maintain contractual arrangements and reserved transport capacity for Petrobras, although 21pc below original contract levels. Petrobras, however, says it has not received any formal proposal on the matter. "On 10 November 2026, we received the attached letter from NTS in response to our request. However, no proposal was formally submitted to Petrobras, and the letter indicated that additional time would be required, which would make it impossible to complete the tariff review conducted by ANP in 2026", the company's director of energy transition and sustainability, William Nozaki, wrote in a letter to ANP. Efforts to delay the discussions drew criticism from ANP director Pietro Mendes, rapporteur for the gas transport tariff review. Mendes has publicly pointed to what he sees as attempts by Petrobras, the dominant player in Brazil's gas market, to exert excessive influence over the country's regulatory agenda. The prolonged tariff review has raised concerns among market participants , who point to the risk of higher transport costs for users, which would ultimately result in more expensive natural gas for end-consumers. Some market participants also warn that further delays would prolong tariff uncertainty in a process nearing two years, making investment decisions more difficult and hampering the development of Brazil's gas market. By Marcos Mortari and Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Cop: Presidencies release cover decision wish list

26/11/13

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26/11/13

Cop: Presidencies release cover decision wish list

Edinburgh, 13 November (Argus) — The UN Cop 31 climate summit presidencies — Australia and Turkey — today published an informal list of themes countries would wish to address in a potential cover decision for the talks, including Turkey's electrification pledge, methane reductions and tripling finance adaptation. Today's note is meant to support discussions among parties, the Cop 31 presidencies said. Negotiations on the potential cover decision — an overarching political text led by the event's presidency, which can address themes that are not part of official negotiations — will start in earnest next week when ministers are due to arrive at the summit. "The document raises a long list of options, but sometimes in a contradictory and repetitive way," climate think-tank the World Resources Institute (WRI) said. Some parties commented on the need to not reopen negotiations, to make a distinction between the action agenda and negotiations and the importance of consensus. Some parties said there is "value in sending signals", but the text should not have "top-down targets, should not target specific sectors or energy sources, technology neutral" and not put additional pressure on budgets. At the same time, the section about increasing the share of electrification in final energy consumption globally to 35pc by 2035 talks about renewables and clean sources, and the text on methane clearly refers to the oil and gas industry as it mentions venting and flaring. This is likely to face opposition from major oil and gas producing countries. Saudi energy minister Prince Abdulaziz bin Salman said on 12 November that the expansion of electrification does not necessarily mean cutting emissions depending on the production sources. "The ultimate end is to cut emissions regardless of their sources. The kingdom reiterates that what unites us is the objective and not necessarily the track to achieving it," he said. Some parties in the list also "welcome" the Cop 30 presidency roadmaps on transitioning away from fossil fuels and forests and talk about "forward work" on this, although no details were given. This is also likely to face opposition by key parties which had signalled early on that the roadmaps should stay outside the negotiation process. The cover decision has some "positive points", notably on methane which France had asked for, even if it could be more precise and have a timeline, sources at the French climate ministry said, adding that the country will pay attention to the language on the 35 by 35 target in the upcoming negotiations. "Electrification is not an end in itself, electrification is a means of decarbonising," the source said. The Turkish Cop 31 presidency has set out a broad voluntary "35-by-35" global goal for electricity to reach 35pc of global final energy consumption by 2035, up from around 20pc currently, which could serve as a base for language in the cover decisions, according to some observers. Countries have started to come out in support of Turkey's electrification goal and more could signal interest in the second week of Cop 31. Support "in principle" for the goal is very wide, but it has not translated into a large number of countries coming out in favour of it officially, European Commission director for climate finance Diana Acconccia said today. She added that this could change when the ministers arrive to continue the negotiations in the second week of the summit. On finance, the list mentions following through on the $300bn/yr finance pledge by developed countries to developing countries and "pursuing efforts to at least triple adaptation finance by 2035". Adaptation finance language is likely to face developed countries' scrutiny. The EU said before the summit that there is no room for additional climate finance commitments at Cop 31 . "We are committed to deliver on [the $300bn/yr goal], Germany's state secretary at the environment ministry Heike Henn said today. But the US is no longer at the table and that makes a difference, she said, adding that finance discussions are also difficult for the countries that provide it. The presidency list for cover decision themes also acknowledges the value of co-operation under Article 6. By Caroline Varin and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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LNG 'dark' transits through Hormuz quicken in Nov

26/11/13

News

26/11/13

LNG 'dark' transits through Hormuz quicken in Nov

London, 13 November (Argus) — Confirmed "dark" transits of LNG carriers through the strait of Hormuz have quickened to their highest post-war rate so far this month. Argus daily tracking has recorded 17 laden carrier transits so far in November — two of which are en route to the Bab el-Mandeb strait. Six carriers were confirmed to have have transited the strait of Hormuz so far this week, all having sailed dark to outside the Gulf and possibly having taken ship-to-ship (STS) transfers. This follows six LNG carrier transits through the strait of Hormuz over two and a half days this past weekend. But additional transits may have occurred in recent days, with carriers often not turning their location broadcasts back on until they are multiple day's sailing away from Hormuz. Most vessels are heading to Asia, but two carriers appear to be heading towards Bab el-Mandeb strait for delivery west of Suez. The QatarEnergy's (QE) 210,000m³ Al Sadd is sailing laden at the entrance to Bab el-Mandeb . The vessel may have taken its cargo by STS transfer from another LNG carrier loaded at QE's 64.2mn t/yr Ras Laffan. The 266,000m³ Mekaines is also offshore Oman after going dark offshore Muscat from 4-12 November. It appears to be heading towards the Red Sea, which would make it the third LNG carrier to transit Bab el-Mandeb strait since the closure of the strait of Hormuz. This comes after QE's 216,000m³ [ Al Kharsaah transited Bab el-Mandeb on 18 October](https://direct.argusmedia.com/newsandanalysis/article/2891982). The vessel is currently offshore Germany for delivery to Poland's 6.5mn t/yr Swinoujscie terminal on 14 November. QE still holds two des contracts in Europe, with only one of two contracts with Poland's Orlen having been cancelled, as well as a further deal with Italy's Edison, which has not received a single cargo from Qatar in recent months. Transits through Bab el-Mandeb strait has high shipping risks and costs after Houthi forces took control of Yemen's Red Sea port of Mocha in September, prompting an additional war-risk premium for vessel transits through the strait. While Red Sea voyages remain rare relative to Asia-bound cargoes, the increase in apparent Suez transits suggests recent attacks on LNG vessels has had little effect on routing decisions for at least some LNG cargoes. Three carriers were seen loading at Ras Laffan on 12 November, according to satellite imagery released by the EU's Copernicus programme. Two of the three carriers were not broadcasting their locations, data from analytics platform Vortexa show. By Anna Pringle Hormuz LNG transits rise Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Global oil supply to surpass demand in 4Q: IEA

26/11/13

News

26/11/13

Global oil supply to surpass demand in 4Q: IEA

London, 13 November (Argus) — Global oil supply will surpass demand in the fourth quarter for the first time since the outbreak of the US-Iran war, and this gap will widen significantly in 2027, the IEA said today. In its latest Oil Market Report (OMR), the agency said that observed oil inventories rose by 52mn bl in October, the first monthly increase since June. The IEA said global oil supplies rose by 2.3mn b/d in October, driven by the Mideast Gulf, bringing the increase since August to 5.3mn b/d. Production and exports from the Gulf have steadily risen over the past few months as NOCs and traders shuttle cargoes through the strait of Hormuz in the face of attacks in the waterway. "Despite continued attacks on tankers, Gulf oil exports, excluding Oman, reached 18.4mn b/d last month, 26pc below pre-war levels," the IEA said. The recent output surge suggests the global oil market will return to a surplus in the fourth quarter, with an even larger build in 2027, the IEA said. It projects the world to flip from a deficit of around 720,000 b/d this year to a surplus of 3.8mn b/d in 2027. The agency said this year's supply losses from the Mideast Gulf and Russia were being partially offset by growth from the Americas, including the US, Canada, Brazil, Argentina and Guyana, which are on track to boost combined output by 1.6mn b/d. Still, global oil supply is set to fall by 4.8mn b/d to 101.6mn b/d in 2026, before rebounding by 6.6mn b/d to 108.1mn b/d in 2027, it said. "Downside risks to the forecast persist, as attacks on shipping undermine maritime security, which is pivotal to a sustained recovery," it said. A key driver of the global market's rebalancing has been this year's fall in demand, which has been driven by higher oil prices and lower refined product supply linked to the US-Iran and Russia-Ukraine wars. "Global oil demand continues to be weighed down by ongoing disruptions to exports of refined products and LPG from the [Mideast] Gulf, remaining at roughly half of pre-war levels, and high fuel prices," the IEA said, adding that attacks on Russian energy infrastructure continued to weigh on diesel supply. Global oil demand is set to fall by 2.7mn b/d to 102.3mn b/d in 2026, before rebounding by 2mn b/d to 104.3mn b/d in 2027, the IEA said. LPG/ethane and naphtha will account for 80pc of the 2027 increase, compared with modest gains for transport fuels as high prices accelerate electrification and fuel efficiencies for road transport. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Texas vote rattles data center developers' nerves

26/11/12

News

26/11/12

Texas vote rattles data center developers' nerves

Houston, 12 November (Argus) — At a gathering of natural gas suppliers and data center developers Thursday in Austin, Texas, the question on everyone's mind was what last week's blue sweep of the state's top offices means for their projects. "I don't think anybody foresaw the extent of the outcome that we experienced," Brandon Seale, senior adviser at VoltaGrid, said while moderating a panel at the LDC NatGas to Power Forum. "We're used to dealing with different administrations, different states, different jurisdictions. But it feels like something changed last week." Voters elected candidates who campaigned on reining in data centers. But, as many noted, the public backlash had already become so pronounced that it was outgoing Republican governor Greg Abbott who first caught the industry off guard: in August, with a pause on new approvals for data centers seeking a connection to the state's grid and then in September with a sweeping freeze on permits for data center projects. Trenton Thornock, founder of Prometheus Hyperscale, said his company had assumed it was shielded from efforts to slow down some development because its projects make their own power on site from natural gas, with no grid connection, and did not expect to find itself caught in the dragnet. "What surprised us is the way that Governor Abbott directed the TCEQ [the state environmental regulator]," Thornock said. "Now you can't get a wastewater permit, can't get an air permit. Even if you were planning on using fuel cells, that's a big question mark. So we were really surprised." His Texas projects now have "a big question mark" hanging over them, he said, while the value of his Wyoming site "went way up last week, just by creating scarcity in Texas, which is the biggest market." Peter Belmonte, principal at Stallion Energy & Environmental, said projects already under way have momentum. "This freight train is going 100 miles an hour," he said. "It's going to be hard to derail things that are already on the books, even with the moratoriums." But if Texas shuts the door, "people will go to Wyoming, they'll go to Louisiana, they'll go to Oklahoma," he said. Many in the industry have acknowledged that things were moving too fast. "There was already a pause on new permitting, and I think it was needed," said Coby Washburn, vice president of business development at Woodway Energy Infrastructure. "It's been kind of a bit of a wild west." Still, most of the panelists said they plan to wait and see how things shake out, betting that demand is not going away and that Texas' competitive advantages are hard to beat. Few places can match Texas for land, gas, renewables, pipelines and support for growth, said Dilanka Seimon, chief commercial officer at gas producer and power generator BKV. "It's never a good idea to bet against Texas," he said, "and I wouldn't start now." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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