Shell Takes Three Offshore Drilling Rigs Offline
August 12, 2022
Shell was forced to shut in production on three Gulf of Mexico offshore deep water platforms due to a pipe issues. This will impact 410,000 bpd of production.
This week is a volatile one with early down days finishing higher and early up days finishing lower. This is the result of a lot of uncertainty around the markets. Are we in a recession or is one coming? If yes, will that impact energy demand? With low inventories, if demand stays steady will there be supply issues? These and a host of other issues have created the markets’ uncertainty and the markets will likely continue to congest and be volatile buying time for more information to show a clearer path forward.
Prices of crude oil and diesel rallied up by more than 2.2% yesterday mainly driven by the International Energy Agency ( IEA) raising its global demand forecast for 2022 due to rising natural gas prices in Europe. With record high natural gas prices in Europe, many countries are switching power generation units to run on fuel oil which is cheaper than natural gas causing oil demand to rise.
In OPEC’s monthly report put out on Wednesday they cut world oil demand forecast for 2022 by 260,000 bpd to total growth of 3.1 million bpd growth this year.
From Bloomberg. The Rhine – – northwest Europe’s most important river for the transport of industrial goods, including energy product such as diesel and coal – – is set to become virtually impassable at a key waypoint in Germany on Friday, due to low water amid a scorching heat wave. The impact could linger for months, potentially driving up gas demand as a replacement.