A new report by oil change international raises concerns about the sincerity of major oil companies' climate pledges. The research finds that plans from eight of the world's largest oil and gas producers are insufficient to meet the critical goal of limiting global warming to 1.5 degrees celsius.

Oil giants’ climate pledges fall short | WION Climate Tracker

Oil prices rose in early Asian trading on Monday, adding to last week's gains as rescuers searched for Iran's President Ebrahim Raisi after a helicopter crash in the oil-producing nation. Watch in for more details!

Oil prices rise amid uncertainity over Iran President Ebrahim Raisi's fate

OPEC+, the group of 22-nation oil producing countries, is facing a dilemma. How much oil is too much oil? This question signifies the group's efforts to stabilise the oil market amid the geopolitical uncertainties.

Several OPEC members seek level upgrade to pump more oil in 2025

Russia discovered enormous oil and gas deposits in the Antarctic, much of it in regions claimed by the United Kingdom. MPs have cautioned that the studies are a prelude to bringing in drilling rigs to extract fossil fuels from the pristine region. Watch to know more.

Russia's oil discovery in the Antarctic

Russian 'threat' to Antarctica from mining & exploiting oil

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives. In the same meeting, he also asked the attendees to raise $1 billion for his presidential campaign on Thursday, according to media reports.

 
Citing anonymous sources who know well about the Florida meeting last month, The Post stated that Republican Presidential candidate Trump told the chief executives that giving $ 1 billion would be a "deal" for them, according to the report.

The guestlist included the CEOs of Venture Global, Cheniere Energy as well as representatives from Chevron , Continental Resources, Exxon and Occidental Petroleum, it said.&nbsp;Representatives for Trump's campaign did not respond to a request for comment.&nbsp;

 
However, representatives for Exxon said they had no details to share, while representatives for the other companies did not respond to requests for comments at all.

 
Trump, gearing up for a rematch with Biden in the upcoming presidential election on Nov. 5, has pledged to roll back many of the measures implemented by the Democratic president to combat climate change.

&nbsp; 
During a meeting at Trump's exclusive club, the Republican presidential candidate outlined plans to expand oil drilling leases in the Gulf of Mexico and lift drilling restrictions in the Alaskan Arctic, as reported by the Post. He also reiterated his grievances regarding wind power.&nbsp;

 
Read More:&nbsp;<a href="https://www.wionews.com/business-economy/ford-planning-to-offer-combustion-engine-hybrid-vehicles-in-europe-beyond-2030-720010">Ford planning to offer combustion-engine, hybrid vehicles in Europe beyond 2030</a>

 
Biden, on the other hand, has highlighted his administration's climate initiatives, including regulations on vehicle emissions, emphasising their dual benefits for the environment and the economy, a key point in his bid for re-election.

 
The United States had it’s highest oil production ever, reaching an average of almost thirteen million barrels every single day last year, despite grievances from the oil industry concerning Mr. Biden’s policies.

During that period ExxonMobil and Chevron — two of America’s main players in the energy sector — made more money than they have been able to over the past ten years.

However, Big Oil is looking forward to recording bigger earnings should Trump stage a return to the White House considering his promises to “return”.&nbsp;

 
(With inputs from Reuters) 
&nbsp;

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives.

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives. In the same meeting, he also asked the attendees to raise $1 billion for his presidential campaign on Thursday, according to media reports. Citing anonymous sources who know well about the Florida meeting last month, The Post stated that Republican Presidential candidate Trump told the chief executives that giving $ 1 billion would be a "deal" for them, according to the report. The guestlist included the CEOs of Venture Global, Cheniere Energy as well as representatives from Chevron , Continental Resources, Exxon and Occidental Petroleum, it said. Representatives for Trump's campaign did not respond to a request for comment. However, representatives for Exxon said they had no details to share, while representatives for the other companies did not respond to requests for comments at all. Trump, gearing up for a rematch with Biden in the upcoming presidential election on Nov. 5, has pledged to roll back many of the measures implemented by the Democratic president to combat climate change. During a meeting at Trump's exclusive club, the Republican presidential candidate outlined plans to expand oil drilling leases in the Gulf of Mexico and lift drilling restrictions in the Alaskan Arctic, as reported by the Post. He also reiterated his grievances regarding wind power. Read More: Ford planning to offer combustion-engine, hybrid vehicles in Europe beyond 2030 Biden, on the other hand, has highlighted his administration's climate initiatives, including regulations on vehicle emissions, emphasising their dual benefits for the environment and the economy, a key point in his bid for re-election. The United States had it’s highest oil production ever, reaching an average of almost thirteen million barrels every single day last year, despite grievances from the oil industry concerning Mr. Biden’s policies. During that period ExxonMobil and Chevron — two of America’s main players in the energy sector — made more money than they have been able to over the past ten years. However, Big Oil is looking forward to recording bigger earnings should Trump stage a return to the White House considering his promises to “return”. (With inputs from Reuters)

Donald Trump pledges to target EVs, LNG exports in meeting with oil CEOs, seeks $ 1 billion as 'deal'

The United Arab Emirates' state-owned oil giant, ADNOC, has announced an increase in its production capacity to 4.85 million barrels per day. This comes just a month before a crucial OPEC meeting in June, where member nations will decide on production levels for the second half of 2024.

UAE boosts oil production capacity ahead of OPEC+ meeting

The organisation of Petroleum Exporting Countries' (OPEC) crude production stayed steady in April, leaving the group's latest cutback plan incomplete.

OPEC group pumps less oil in April than the previous month

Legislation pushing Joe Biden to increase sanctions on Iranian crude oil is on track to become law as early as this week. But analysts don’t expect the president to fully use his new powers any time soon. The measure was passed by the US House of Representatives over the weekend as a response to Iran’s attack on Israel earlier this month.

New sanctions could add as much as $8.40 to global prices

The US Treasury department has re-imposed sanctions on Venezuela's state-run oil company, PDVSA. In response, the oil giant is increasingly relying on digital currency, specifically tether, for sales.

Venezuela turns to digital currency as US Sanctions bite

The group of seven nations aimed to cripple Russia's war chest by capping the price of their Urals oil at $60 a barrel. To enforce the cap, western companies providing shipping insurance require documentation stating the oil was purchased for $60 or less. But oil is currently trading at $75 a barrel. This creates a discrepancy. How can these companies insure oil demonstrably above the capped price?

23% of Russian crude shipments exceed G7 price cap

The Russian Foreign Ministry has said that deliveries of Russian oil to India are steadily high, with no payment issues encountered. Watch in for more details!

Russia: Oil supplies to India at a steadily high level

For the first half of the year, the Organization of Petroleum Exporting Countries and its partners (OPEC+) decided to maintain oil production cutbacks. This will keep global crude markets tight and oil prices elevated. Brent crude rose to over $90 per barrel after the OPEC+ decision.

Oil nears $90 a barrel after OPEC+ sticks with supply cuts

More than 250,000 barrels per day of US crude is set to arrive in India next month. It will be the highest in more than a year, ship tracking data showed. Watch this video for all details.

Why are Indian refiners buying more US crude?

The United States is trying to help India negotiate lower prices for Russian oil as it deepens sanctions on tankers carrying the petroleum above Western price caps, President Joe Biden's energy envoy said on Tuesday.

Is the US trying to help India get lower prices for Russian oil?

Saudi Arabia's state-owned oil giant Aramco said on Sunday it boosted its dividends last year despite net profit falling to $121.3 billion from a record $161.1 billion in 2022 on lower oil prices.

The profit was still the company's second-highest on record, it said. Aramco boosted total dividends for the year by 30% to $97.8 billion.

Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter, to be paid this quarter. It approved a $10.8 billion performance-linked dividend, the third such payout. Both dividends were increased from the previous quarter.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/saudi-arabia-shelves-oil-production-expansion-plans-raising-questions-on-future-demand-685491">Saudi Arabia shelves oil production expansion plans, raising questions on future demand</a>

The company said capital investments were at $49.7 billion in 2023, including $42.2 billion in organic capital expenditure. That was up from $38.8 billion in capital investments and $37.6 billion organic capex in 2022.

It forecasts capital investments between $48 billion and $58 billion this year, growing until the middle of the decade.

Also watch | Saudi Kingdom transfers 8% stake in Aramco to public investment fund

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The Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mbpd), returning to the previous 12 mbpd target.

The decision "is expected to reduce capital investment by approximately $40 billion between 2024 and 2028," Aramco said.

Its free cash flow fell to $101.2 billion in 2023 from $148.5 billion in 2022.

($1 = 3.7505 riyals)

Saudi Arabia's state-owned oil giant Aramco said on Sunday it boosted its dividends last year despite net profit falling to $121.3 billion from a record $161.1 billion in 2022 on lower oil prices.

Saudi Arabia's state-owned oil giant Aramco said on Sunday it boosted its dividends last year despite net profit falling to $121.3 billion from a record $161.1 billion in 2022 on lower oil prices. The profit was still the company's second-highest on record, it said. Aramco boosted total dividends for the year by 30% to $97.8 billion. Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter, to be paid this quarter. It approved a $10.8 billion performance-linked dividend, the third such payout. Both dividends were increased from the previous quarter. Also read | Saudi Arabia shelves oil production expansion plans, raising questions on future demand The company said capital investments were at $49.7 billion in 2023, including $42.2 billion in organic capital expenditure. That was up from $38.8 billion in capital investments and $37.6 billion organic capex in 2022. It forecasts capital investments between $48 billion and $58 billion this year, growing until the middle of the decade. Also watch | Saudi Kingdom transfers 8% stake in Aramco to public investment fund × The Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mbpd), returning to the previous 12 mbpd target. The decision "is expected to reduce capital investment by approximately $40 billion between 2024 and 2028," Aramco said. Its free cash flow fell to $101.2 billion in 2023 from $148.5 billion in 2022. ($1 = 3.7505 riyals)

Saudi Aramco profit falls to USD 121.3 bn due to lower oil prices

Intending to advance its ambitious economic reform agenda, Saudi Arabia has doubled down on its sovereign wealth fund, the Public Investment Fund (PIF). <o:p></o:p>

The kingdom transferred an 8 per cent stake in the oil giant Aramco to PIF, valued at approximately $163.6 billion, according to LSEG data. <o:p></o:p>

Crown Prince Mohammed bin Salman, also known as MBS, highlighted the transfer as part of Saudi Arabia's long-term initiatives to diversify the national economy and expand investment opportunities, aligning with the Vision 2030 plan.<o:p></o:p>

The transfer reinforces PIF's strong financial position and credit rating, as mentioned by the state news agency SPA. <o:p></o:p>

MBS, who chairs PIF, highlighted the move's significance in solidifying the fund's role in driving economic diversification. <o:p></o:p>

Reuters cited Justin Alexander, the director of Khalij Economics and GCC analyst for GlobalSource Partners, who estimated that the transfer would provide PIF with over $9 billion in annual dividend revenue from Aramco.<o:p></o:p>

Crown Prince Mohammed bin Salman's decision aligns with the broader strategy outlined in Saudi Vision 2030, as reported by AP. <o:p></o:p>

The transfer reflects Saudi Arabia's commitment to boosting and diversifying the national economy, showcasing PIF as a central player in driving economic transformation. <o:p></o:p>

PIF Governor Yasir al-Rumayyan announced plans to increase capital deployment to $70 billion annually after 2025.<o:p></o:p>

Aramco clarified in a filing on the Saudi Exchange that the transfer is a private arrangement and would not affecting the company's issued shares, operations, strategy, dividend policy, or governance framework. <o:p></o:p>

Despite this, Aramco has played a crucial role in supporting Saudi Arabia's economic overhaul, with the state now holding 82.186 per cent of the company.<o:p></o:p>

The move indicates the government's plans to invest in economic transformation projects, including the futuristic city NEOM.<o:p></o:p>

PIF's transformation into a global investment vehicle has been fuelled by multi-billion-dollar investments in various sectors, from technology to sports. <o:p></o:p>

The fund, which had approximately $700 billion in assets under management before the recent transfer, aims to grow to $2 trillion by 2030. <o:p></o:p>

The crown prince's proactive approach to investing in megaprojects and diversifying Saudi Arabia's economy is an indication of the nation's shift towards reducing its reliance on oil revenue.<o:p></o:p>

Aramco's profits and global criticisms<o:p></o:p>

Aramco, the world's fourth most valuable firm with a market value of $2 trillion, reported a record $161 billion profit for 2022, making it the highest-ever recorded by a publicly listed company. <o:p></o:p>

However, the profits have faced criticism amid global concerns about climate change. <o:p></o:p>

Activists have raised questions about the environmental impact of burning fossil fuels, even as Aramco announces its 2023 earnings on March 11.<o:p></o:p>

(With inputs from agencies)<o:p></o:p>

Intending to advance its ambitious economic reform agenda, Saudi Arabia has doubled down on its sovereign wealth fund, the Public Investment Fund (PIF). The kingdom transferred an 8 per cent stake in the oil giant Aramco to PIF, valued at approximately $163.

Intending to advance its ambitious economic reform agenda, Saudi Arabia has doubled down on its sovereign wealth fund, the Public Investment Fund (PIF). The kingdom transferred an 8 per cent stake in the oil giant Aramco to PIF, valued at approximately $163.6 billion, according to LSEG data. Crown Prince Mohammed bin Salman, also known as MBS, highlighted the transfer as part of Saudi Arabia's long-term initiatives to diversify the national economy and expand investment opportunities, aligning with the Vision 2030 plan. The transfer reinforces PIF's strong financial position and credit rating, as mentioned by the state news agency SPA. MBS, who chairs PIF, highlighted the move's significance in solidifying the fund's role in driving economic diversification. Reuters cited Justin Alexander, the director of Khalij Economics and GCC analyst for GlobalSource Partners, who estimated that the transfer would provide PIF with over $9 billion in annual dividend revenue from Aramco. Crown Prince Mohammed bin Salman's decision aligns with the broader strategy outlined in Saudi Vision 2030, as reported by AP. The transfer reflects Saudi Arabia's commitment to boosting and diversifying the national economy, showcasing PIF as a central player in driving economic transformation. PIF Governor Yasir al-Rumayyan announced plans to increase capital deployment to $70 billion annually after 2025. Aramco clarified in a filing on the Saudi Exchange that the transfer is a private arrangement and would not affecting the company's issued shares, operations, strategy, dividend policy, or governance framework. Despite this, Aramco has played a crucial role in supporting Saudi Arabia's economic overhaul, with the state now holding 82.186 per cent of the company. The move indicates the government's plans to invest in economic transformation projects, including the futuristic city NEOM. PIF's transformation into a global investment vehicle has been fuelled by multi-billion-dollar investments in various sectors, from technology to sports. The fund, which had approximately $700 billion in assets under management before the recent transfer, aims to grow to $2 trillion by 2030. The crown prince's proactive approach to investing in megaprojects and diversifying Saudi Arabia's economy is an indication of the nation's shift towards reducing its reliance on oil revenue. Aramco's profits and global criticisms Aramco, the world's fourth most valuable firm with a market value of $2 trillion, reported a record $161 billion profit for 2022, making it the highest-ever recorded by a publicly listed company. However, the profits have faced criticism amid global concerns about climate change. Activists have raised questions about the environmental impact of burning fossil fuels, even as Aramco announces its 2023 earnings on March 11. (With inputs from agencies)

Saudi Arabia boosts sovereign wealth fund, transfers 8 pc stake in Aramco worth $163.6 bn

Saudi Arabia's sovereign fund has got a big boost from its state-owned oil firm Aramco. The oil-rich kingdom has transferred an 8% stake in Aramco to the Public Investment Fund or PIF . This comes at a time when the kingdom reorganizes its holdings to boost the sovereign wealth fund.

Kingdom transfers 8% stake in Aramco to public investment fund

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023. <o:p></o:p>

The state oil giant disclosed that it had successfully integrated over 30 AI tools across various operations, spanning from field activities to corporate decision-making processes, with plans for broader adoption of AI technology.<o:p></o:p>

ADNOC highlighted the role of AI in revolutionising operational efficiency, citing a program utilising AI for remote monitoring of operational equipment, which reduced unexpected shutdowns and enhanced overall efficiency. <o:p></o:p>

Moreover, AI technology has been instrumental in resource mapping, supporting drilling and production activities, and facilitating reservoir management, contributing to increased production capacity and the delivery of lower carbon-intensity energy solutions.<o:p></o:p>

Sophie Hildebrand, ADNOC's Chief Technology Officer, highlighted the transformative impact of AI initiatives, emphasising the enhancements in automation and process optimisation across various facets of the company's operations. <o:p></o:p>

Hildebrand said that there are tangible benefits derived from AI implementation, including improvements in capital expenditure, operational expenditure, working capital management, and production efficiency.<o:p></o:p>

"The ability for us to do more and more is growing as the technology grows," Reuters quoted&nbsp; Hildebrand as saying. <o:p></o:p>

While declining to provide specific figures, she anticipated further growth in the value generated by AI initiatives in the future.<o:p></o:p>

ADNOC's AI initiatives are strengthened by tools developed through its joint venture with G42, known as AIQ. <o:p></o:p>

Notable AIQ tools utilised by ADNOC include SMARTi, designed for hazard detection in industrial environments, and Robowell, facilitating remote equipment operation and flow valve control to enhance safety, reduce costs, and optimise production capacity.<o:p></o:p>

The partnership between ADNOC and G42 highlights the strategic collaboration between industry leaders and technology innovators in driving forward AI integration within the oil and gas sector. <o:p></o:p>

G42, a key player in the AI sector, is part of a business conglomerate associated with Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser, and brother of President Sheikh Mohammed bin Zayed al-Nahyan.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023.

Abu Dhabi National Oil Company (ADNOC) announced on Tuesday that its implementation of artificial intelligence (AI) technology resulted in an additional value of $500 million in 2023. The state oil giant disclosed that it had successfully integrated over 30 AI tools across various operations, spanning from field activities to corporate decision-making processes, with plans for broader adoption of AI technology. ADNOC highlighted the role of AI in revolutionising operational efficiency, citing a program utilising AI for remote monitoring of operational equipment, which reduced unexpected shutdowns and enhanced overall efficiency. Moreover, AI technology has been instrumental in resource mapping, supporting drilling and production activities, and facilitating reservoir management, contributing to increased production capacity and the delivery of lower carbon-intensity energy solutions. Sophie Hildebrand, ADNOC's Chief Technology Officer, highlighted the transformative impact of AI initiatives, emphasising the enhancements in automation and process optimisation across various facets of the company's operations. Hildebrand said that there are tangible benefits derived from AI implementation, including improvements in capital expenditure, operational expenditure, working capital management, and production efficiency. "The ability for us to do more and more is growing as the technology grows," Reuters quoted Hildebrand as saying. While declining to provide specific figures, she anticipated further growth in the value generated by AI initiatives in the future. ADNOC's AI initiatives are strengthened by tools developed through its joint venture with G42, known as AIQ. Notable AIQ tools utilised by ADNOC include SMARTi, designed for hazard detection in industrial environments, and Robowell, facilitating remote equipment operation and flow valve control to enhance safety, reduce costs, and optimise production capacity. The partnership between ADNOC and G42 highlights the strategic collaboration between industry leaders and technology innovators in driving forward AI integration within the oil and gas sector. G42, a key player in the AI sector, is part of a business conglomerate associated with Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser, and brother of President Sheikh Mohammed bin Zayed al-Nahyan. (With inputs from Reuters)

Abu Dhabi’s state oil company harnesses AI, adds $500 million in net value in 2023

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.<o:p></o:p>

According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector.<o:p></o:p>

The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50.

Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data.<o:p></o:p>

Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. <o:p></o:p>

Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges.<o:p></o:p>

Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. <o:p></o:p>

While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries.<o:p></o:p>

In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." <o:p></o:p>

This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations.<o:p></o:p>

Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. <o:p></o:p>

These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions.<o:p></o:p>

Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. <o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year. According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector. The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50. Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data. Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges. Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries. In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations. Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions. Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. (With inputs from Bloomberg)

Russia's oil and gas revenue surges, providing budget boost amid sanctions

The MethaneSAT satellite has been launched into space. The satellite is backed by Alphabet Inc's Google and the Environmental Defense Fund Group. MethaneSAT satellite has a mission to pinpoint oil and gas industry methane emissions from space.

All about MethaneSAT a Google-backed satellite to track global oil industry methane emissions

<o:p></o:p>In a bid to strengthen the oil market against concerns over global growth and escalating output from non-member countries, OPEC+ members, led by Saudi Arabia and Russia, have agreed to prolong voluntary oil output cuts into the second quarter of the year. <o:p></o:p>

According to Reuters, this decision, announced on Sunday, entails maintaining cuts of 2.2 million barrels per day (bpd), with Saudi Arabia and Russia leading the charge. <o:p></o:p>

Saudi Arabia, acting as the de facto leader of OPEC, committed to sustaining its voluntary cut of 1 million bpd until the end of June, holding its output steady at around 9 million bpd. <o:p></o:p>

Concurrently, Russia, at the helm of OPEC+ allies, disclosed plans to slash oil production and exports by an additional 471,000 bpd in the upcoming quarter, highlighting a rising reliance on production cuts to balance the market.<o:p></o:p>

"This decision sends a message of cohesion and confirms that the group is not in a hurry to return supply volumes, supporting the view that when this finally happens, it will be gradual," Reuters quoted analysts at investment bank Jefferies as saying.<o:p></o:p>

&nbsp;The unexpected move by Russia to further reduce output has garnered attention from market analysts, with UBS analyst Giovanni Staunovo acknowledging the potential price-lifting impact if these cuts are fully implemented.<o:p></o:p>

The oil market has encountered support in 2024 amidst escalating geopolitical tensions and Houthi attacks on Red Sea shipping. <o:p></o:p>

However, apprehensions regarding economic growth have lingered. <o:p></o:p>

Despite widespread anticipation of OPEC+ maintaining existing cuts, Russia's announcement of additional reductions has the potential to provide further buoyancy to prices, as stated by analysts.<o:p></o:p>

Brent crude settled at $83.55 a barrel on Friday, marking an increase of $1.64, or 2 per cent, and reflecting a year-to-date surge of over 8 per cent.<o:p></o:p>

Individual OPEC+ members revealed their contributions to the extended cuts, with Iraq, UAE, Kuwait, Algeria, and Oman among those affirming their commitment to maintaining reduced output levels throughout the second quarter. <o:p></o:p>

Kazakhstan, likewise, pledged to extend voluntary cuts through the same period.<o:p></o:p>

The collective efforts of OPEC+ since late 2022 have resulted in pledged cuts amounting to approximately 5.86 million bpd, equating to roughly 5.7 per cent of daily world demand, according to Reuters calculations.<o:p></o:p>

Amidst uncertainties surrounding the oil demand outlook for the year, OPEC projects strong demand growth of 2.25 million bpd, primarily driven by Asia, while the International Energy Agency (IEA) foresees more modest growth of 1.22 million bpd. <o:p></o:p>

Additionally, the IEA anticipates oil supply to reach a record high of about 103.8 million bpd in 2024, largely propelled by producers outside OPEC+, including the United States, Brazil, and Guyana.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a bid to strengthen the oil market against concerns over global growth and escalating output from non-member countries, OPEC+ members, led by Saudi Arabia and Russia, have agreed to prolong voluntary oil output cuts into the second quarter of the year.

In a bid to strengthen the oil market against concerns over global growth and escalating output from non-member countries, OPEC+ members, led by Saudi Arabia and Russia, have agreed to prolong voluntary oil output cuts into the second quarter of the year. According to Reuters, this decision, announced on Sunday, entails maintaining cuts of 2.2 million barrels per day (bpd), with Saudi Arabia and Russia leading the charge. Saudi Arabia, acting as the de facto leader of OPEC, committed to sustaining its voluntary cut of 1 million bpd until the end of June, holding its output steady at around 9 million bpd. Concurrently, Russia, at the helm of OPEC+ allies, disclosed plans to slash oil production and exports by an additional 471,000 bpd in the upcoming quarter, highlighting a rising reliance on production cuts to balance the market. "This decision sends a message of cohesion and confirms that the group is not in a hurry to return supply volumes, supporting the view that when this finally happens, it will be gradual," Reuters quoted analysts at investment bank Jefferies as saying. The unexpected move by Russia to further reduce output has garnered attention from market analysts, with UBS analyst Giovanni Staunovo acknowledging the potential price-lifting impact if these cuts are fully implemented. The oil market has encountered support in 2024 amidst escalating geopolitical tensions and Houthi attacks on Red Sea shipping. However, apprehensions regarding economic growth have lingered. Despite widespread anticipation of OPEC+ maintaining existing cuts, Russia's announcement of additional reductions has the potential to provide further buoyancy to prices, as stated by analysts. Brent crude settled at $83.55 a barrel on Friday, marking an increase of $1.64, or 2 per cent, and reflecting a year-to-date surge of over 8 per cent. Individual OPEC+ members revealed their contributions to the extended cuts, with Iraq, UAE, Kuwait, Algeria, and Oman among those affirming their commitment to maintaining reduced output levels throughout the second quarter. Kazakhstan, likewise, pledged to extend voluntary cuts through the same period. The collective efforts of OPEC+ since late 2022 have resulted in pledged cuts amounting to approximately 5.86 million bpd, equating to roughly 5.7 per cent of daily world demand, according to Reuters calculations. Amidst uncertainties surrounding the oil demand outlook for the year, OPEC projects strong demand growth of 2.25 million bpd, primarily driven by Asia, while the International Energy Agency (IEA) foresees more modest growth of 1.22 million bpd. Additionally, the IEA anticipates oil supply to reach a record high of about 103.8 million bpd in 2024, largely propelled by producers outside OPEC+, including the United States, Brazil, and Guyana. (With inputs from Reuters)

OPEC+ extends oil output cuts amid global growth concerns: Report

Following a bipartisan consensus, the newly unveiled US funding legislation includes a provision barring China from acquiring oil from the Strategic Petroleum Reserve.<o:p></o:p>

This measure highlights intensifying competition and geopolitical tensions between the United States and China. <o:p></o:p>

Lawmakers, driven by bipartisan sentiment, have prioritised addressing concerns regarding China's access to vital US strategic resources, including oil reserves. Multiple bills have been introduced, aimed at curbing China's influence.<o:p></o:p>

The issue gained prominence following President Joe Biden's decision in 2022 to authorize the sale of 180 million barrels of SPR oil to stabilize gasoline prices in the aftermath of Russia's invasion of Ukraine. <o:p></o:p>

Concerns were raised after a portion of SPR oil was sold to Chinese entities, including UNIPEC America and PetroChina International, prompting calls for legislative action to restrict such transactions.<o:p></o:p>

The Strategic Petroleum Reserve, holding over 360 million barrels of oil, plays a critical role in safeguarding US energy security.<o:p></o:p>

However, recent sales, including those to China, have depleted the reserve to nearly 40-year lows. <o:p></o:p>

Last July, the Senate passed a bill with a strong majority, aiming to prevent the export of SPR oil to China. <o:p></o:p>

Senator Chris Murphy emphasised the need for decisive action to address strategic vulnerabilities and protect US interests.<o:p></o:p>

The funding bill, comprising 1,050 pages, outlines appropriations for various government sectors, including the energy domain. <o:p></o:p>

Congressional negotiators intend to swiftly advance the bill through the legislative process, with the House expected to vote on it first. <o:p></o:p>

Senate Majority Leader Chuck Schumer highlighted the urgency of the matter, urging prompt action to address critical funding allocations before the impending deadline.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Following a bipartisan consensus, the newly unveiled US funding legislation includes a provision barring China from acquiring oil from the Strategic Petroleum Reserve.

Following a bipartisan consensus, the newly unveiled US funding legislation includes a provision barring China from acquiring oil from the Strategic Petroleum Reserve. This measure highlights intensifying competition and geopolitical tensions between the United States and China. Lawmakers, driven by bipartisan sentiment, have prioritised addressing concerns regarding China's access to vital US strategic resources, including oil reserves. Multiple bills have been introduced, aimed at curbing China's influence. The issue gained prominence following President Joe Biden's decision in 2022 to authorize the sale of 180 million barrels of SPR oil to stabilize gasoline prices in the aftermath of Russia's invasion of Ukraine. Concerns were raised after a portion of SPR oil was sold to Chinese entities, including UNIPEC America and PetroChina International, prompting calls for legislative action to restrict such transactions. The Strategic Petroleum Reserve, holding over 360 million barrels of oil, plays a critical role in safeguarding US energy security. However, recent sales, including those to China, have depleted the reserve to nearly 40-year lows. Last July, the Senate passed a bill with a strong majority, aiming to prevent the export of SPR oil to China. Senator Chris Murphy emphasised the need for decisive action to address strategic vulnerabilities and protect US interests. The funding bill, comprising 1,050 pages, outlines appropriations for various government sectors, including the energy domain. Congressional negotiators intend to swiftly advance the bill through the legislative process, with the House expected to vote on it first. Senate Majority Leader Chuck Schumer highlighted the urgency of the matter, urging prompt action to address critical funding allocations before the impending deadline. (With inputs from Reuters)

US funding bill blocks China from purchasing petroleum reserve oil

Russia has ordered a temporary ban on gasoline exports. The six-month ban on gasoline exports will start from March 1. The ban aims to keep prices stable amid rising demand from consumers & farmers

Why has Russia halted gasoline export for 6 months?

New sanctions have been imposed against Russia. Fresh US sanctions on Moscow threaten to impact India as well. Russian oil sales to India will be impacted.

How new sanctions imposed against Russia can affect India

Bereft of funds, the Finance Ministry wants Oil &amp; Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn)&nbsp;required for drilling wells to find oil and natural gas in the high seas.

“ONGC and OIL will take up this work on behalf of the Ministry of Petroleum &amp; Natural Gas and the cost for drilling of these wells would be initially borne by ONGC and OIL,” says the Expenditure Finance Committee (EFC) order.

The Petroleum Ministry had sought budgetary support to drill four stratigraphic wells in Category II and Category III basins in India’s offshore region to obtain critical data for a robust modelling of petroleum reserves. Usually, the Directorate General of Hydrocarbons conducts such searches through budgetary support.

Though the Expenditure Department had approved the ministry’s hydrocarbon hunt, the EFC – headed by Finance Secretary -- decided that ONGC and OIL bear the expedition cost and their losses, if any, in this venture be reimbursed through gross budgetary support.

<a href="https://www.wionews.com/india-news/india-starts-oil-production-from-delayed-5-billion-deep-water-project-in-krishna-godavari-basin-677894">Also read |&nbsp;India starts oil extraction from $5 billion deep-water project in Krishna Godavari basin</a>

The onus of initial spending was shifted onto ONGC and OIL as the EFC said that fiscal constraint was a major issue and that the “fiscal situation had changed post presentation in the Budget”.

Officials said that subsequent to the budget announcement, there has been substantial increase in the expenditure on the revenue side which was not envisioned in the budget. As a result, there was not much fiscal space available.

The EFC has therefore ordained that “ONGC and OIL will take up this work on behalf of government. They will engage international expertise for the determination of well location. The cost&nbsp;incurred for drilling these wells would be borne by ONGC and OIL”.

“In case a discovery is made, the drilling cost would be recovered from successful bidders. However, when no discovery is made (in case of dry well), 90 percent of the estimated cost of Rs 3,200 Crores or the actuals, whichever is lower, will be borne by the government through gross budgetary support,” it said.

What that means is that if a discovery is made, 150 per cent of the drilling cost of the discovered well shall be recovered from the successful bidder whenever the block is awarded through the Open Acreage Licensing Policy regime.

In case no discovery is made, or the well is found dry, data from the well would be differentially priced so that at least 10 per cent of the cost is recovered from the purchasers of the well data from the National Data Repository.

For calculating the unrecovered expenditure on the drilling, the total cost of all four wells and the total recovery from all four wells shall be considered and the shortfall will be treated as “unrecovered actual expenditure”.

This expenditure will be reviewed by a committee under the chairmanship of Petroleum Secretary along with officials of NITI Aayog and Office of Chief Advisor Cost, and it will work out the amount to be reimbursed to the two national oil companies.

The committee will submit its recommendation to the Petroleum Minister who would approach the Budget Division in the Department of Economic Affairs for budgetary support.

Also watch |&nbsp;PM Modi in Goa: Key projects to be unveiled

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pm-modi-in-goa-key-projects-to-be-unveiled-687411/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

India’s&nbsp;primary objective of drilling these wells is to gather stratigraphic information of the basin and to understand the depth of play systems so that private operators are encouraged to take up exploration and production in them.

Stratigraphy is&nbsp;a branch of geology concerned with the study of rock layers (strata) and layering (stratification). It is primarily used in the study of sedimentary and layered volcanic rocks. It is used for preparing property maps to get a possible regional trend which can give the components of depositional environment.

&nbsp;

Bereft of funds, the Finance Ministry wants Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn) required for drilling wells to find oil and natural gas in the high seas.

Bereft of funds, the Finance Ministry wants Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) to initially spend the Rs 3,200 crores ($390mn) required for drilling wells to find oil and natural gas in the high seas. “ONGC and OIL will take up this work on behalf of the Ministry of Petroleum & Natural Gas and the cost for drilling of these wells would be initially borne by ONGC and OIL,” says the Expenditure Finance Committee (EFC) order. The Petroleum Ministry had sought budgetary support to drill four stratigraphic wells in Category II and Category III basins in India’s offshore region to obtain critical data for a robust modelling of petroleum reserves. Usually, the Directorate General of Hydrocarbons conducts such searches through budgetary support. Though the Expenditure Department had approved the ministry’s hydrocarbon hunt, the EFC – headed by Finance Secretary -- decided that ONGC and OIL bear the expedition cost and their losses, if any, in this venture be reimbursed through gross budgetary support. Also read | India starts oil extraction from $5 billion deep-water project in Krishna Godavari basin The onus of initial spending was shifted onto ONGC and OIL as the EFC said that fiscal constraint was a major issue and that the “fiscal situation had changed post presentation in the Budget”. Officials said that subsequent to the budget announcement, there has been substantial increase in the expenditure on the revenue side which was not envisioned in the budget. As a result, there was not much fiscal space available. The EFC has therefore ordained that “ONGC and OIL will take up this work on behalf of government. They will engage international expertise for the determination of well location. The cost incurred for drilling these wells would be borne by ONGC and OIL”. “In case a discovery is made, the drilling cost would be recovered from successful bidders. However, when no discovery is made (in case of dry well), 90 percent of the estimated cost of Rs 3,200 Crores or the actuals, whichever is lower, will be borne by the government through gross budgetary support,” it said. What that means is that if a discovery is made, 150 per cent of the drilling cost of the discovered well shall be recovered from the successful bidder whenever the block is awarded through the Open Acreage Licensing Policy regime. In case no discovery is made, or the well is found dry, data from the well would be differentially priced so that at least 10 per cent of the cost is recovered from the purchasers of the well data from the National Data Repository. For calculating the unrecovered expenditure on the drilling, the total cost of all four wells and the total recovery from all four wells shall be considered and the shortfall will be treated as “unrecovered actual expenditure”. This expenditure will be reviewed by a committee under the chairmanship of Petroleum Secretary along with officials of NITI Aayog and Office of Chief Advisor Cost, and it will work out the amount to be reimbursed to the two national oil companies. The committee will submit its recommendation to the Petroleum Minister who would approach the Budget Division in the Department of Economic Affairs for budgetary support. Also watch | PM Modi in Goa: Key projects to be unveiled India’s primary objective of drilling these wells is to gather stratigraphic information of the basin and to understand the depth of play systems so that private operators are encouraged to take up exploration and production in them. Stratigraphy is a branch of geology concerned with the study of rock layers (strata) and layering (stratification). It is primarily used in the study of sedimentary and layered volcanic rocks. It is used for preparing property maps to get a possible regional trend which can give the components of depositional environment.

Exclusive: FinMin asks ONGC, OIL to fund India’s hydrocarbon hunt; promises to reimburse losses

Sri Lanka, on Wednesday (Feb 21) said that it exported $20 million worth of tea to Iran to partially pay its $251 million oil debt. The first instalment of the tea-for-oil deal was sent years after it was agreed upon in 2021.

Sri Lanka repays $20m Iranian oil debt with tea

Sri Lanka, on Wednesday (Feb 21) said that it exported $20 million worth of tea to Iran to partially pay its $251 million oil debt. The first instalment of the tea-for-oil deal was sent years after it was agreed upon in 2021.&nbsp;

<h2>Tea-for-oil deal</h2>

“So far $20 million worth of tea has been exported to Iran under the barter trade agreement,” Sri Lankan Prime Minister Dinesh Gunawardena’s office said in a statement.&nbsp;

WATCH |&nbsp;Sri lanka: Tea for oil deal with Iran gets going, to allow Iran to avoid currency to pay for tea

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/sri-lanka-tea-for-oil-deal-with-iran-gets-going-to-allow-iran-to-avoid-currency-to-pay-for-tea-692474/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The statement also said that Iranian Foreign Minister Hossein Amir-Abdollahian, who is currently in Sri Lanka for a visit, expressed “satisfaction” with the deal.&nbsp;

In 2021, a tea-for-oil deal was struck between Colombo and Tehran which was seen as a win-win for both countries for different reasons.&nbsp;

The barter deal allows sanctions-hit Iran to avoid having to use scarce hard currency to pay for imports of the widely consumed product in the country. Meanwhile, Sri Lanka is allowed to pay with tea as the country is short of foreign currency.

Also Read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-election-body-forms-committee-to-probe-poll-rigging-allegations-692342">Pakistan election body sets up committee to probe poll rigging allegations</a>

When the deal was agreed upon in December 2021, Tehran said it had agreed to accept a monthly shipment of Ceylon tea from Sri Lanka in exchange for settling a $251 million debt from Iranian oil supplied to the island nation nine years ago.&nbsp;

However, Sri Lanka was hit by an economic crisis forcing then-president Gotabaya Rajapaksa to step down in July 2022. This led to a years-long delay in the shipment of the tea to Iran.&nbsp;

Colombo defaulted on its $46 billion foreign debt in April 2022 but managed to secure a $2.9 billion bailout from the International Monetary Fund (IMF), early last year.&nbsp;

<h2>Does the deal violate sanctions against Iran?</h2>

Sri Lankan officials have said that the tea-for-oil deal does not violate the sanctions against Tehran imposed by Washington. Since tea was a food item it is exempted from restrictions&nbsp;and the deal did not involve Iranian-blacklisted banks, they added.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/uk-bae-reports-profit-jump-as-ukraine-war-drags-on-692467">UK: BAE reports profit jump as Ukraine war drags on</a>

Tehran has been hit hard by the United States imposed restrictions since it pulled out of the 2015 Iran nuclear deal and began reimposing crippling financial sanctions.&nbsp;

Notably, Ceylon tea, known by the island’s colonial-era name, made up nearly 50 per cent of Iran’s consumption in 2016.

(With inputs from agencies)

Sri Lanka, on Wednesday (Feb 21) said that it exported $20 million worth of tea to Iran to partially pay its $251 million oil debt. The first instalment of the tea-for-oil deal was sent years after it was agreed upon in 2021. Tea-for-oil deal “So far $20 million worth of tea has been exported to Iran under the barter trade agreement,” Sri Lankan Prime Minister Dinesh Gunawardena’s office said in a statement. WATCH | Sri lanka: Tea for oil deal with Iran gets going, to allow Iran to avoid currency to pay for tea The statement also said that Iranian Foreign Minister Hossein Amir-Abdollahian, who is currently in Sri Lanka for a visit, expressed “satisfaction” with the deal. In 2021, a tea-for-oil deal was struck between Colombo and Tehran which was seen as a win-win for both countries for different reasons. The barter deal allows sanctions-hit Iran to avoid having to use scarce hard currency to pay for imports of the widely consumed product in the country. Meanwhile, Sri Lanka is allowed to pay with tea as the country is short of foreign currency. Also Read | Pakistan election body sets up committee to probe poll rigging allegations When the deal was agreed upon in December 2021, Tehran said it had agreed to accept a monthly shipment of Ceylon tea from Sri Lanka in exchange for settling a $251 million debt from Iranian oil supplied to the island nation nine years ago. However, Sri Lanka was hit by an economic crisis forcing then-president Gotabaya Rajapaksa to step down in July 2022. This led to a years-long delay in the shipment of the tea to Iran. Colombo defaulted on its $46 billion foreign debt in April 2022 but managed to secure a $2.9 billion bailout from the International Monetary Fund (IMF), early last year. Does the deal violate sanctions against Iran? Sri Lankan officials have said that the tea-for-oil deal does not violate the sanctions against Tehran imposed by Washington. Since tea was a food item it is exempted from restrictions and the deal did not involve Iranian-blacklisted banks, they added. Also Read | UK: BAE reports profit jump as Ukraine war drags on Tehran has been hit hard by the United States imposed restrictions since it pulled out of the 2015 Iran nuclear deal and began reimposing crippling financial sanctions. Notably, Ceylon tea, known by the island’s colonial-era name, made up nearly 50 per cent of Iran’s consumption in 2016. (With inputs from agencies)

Cash-strapped Sri Lanka partially repays Iranian oil debt with $20 million worth of tea

France's economic trajectory has taken a downward turn. Finance Minister Bruno Le Maire announced a revised growth forecast for 2024, slashing it from 1.4% to 1% due to multiple factors.

France lowers 2024 GDP growth forecast amid global uncertainty

For years, Wall Street had remained skeptical of the Shale industry’s boom-and-bust cycles. But 2023 saw record oil and gas merger deals, marking a new ‘Big Shale’ era.

US sees $250 bn in oil & gas merger deals in 2023

In a new development, US shale oil rivals Diamondback Energy and Endeavor Energy Resources are on the verge of finalising a deal worth approximately $25 billion in cash and stock, as reported by Reuters.<o:p></o:p>

This merger is poised to create a colossal oil and gas entity valued at over $50 billion, positioning itself as the largest pure-play oil producer in the Permian shale field.<o:p></o:p>

Reuters cited Dan Pickering, the Chief Investment Officer of Pickering Energy Partners, who expressed confidence in the strategic alignment of the merger, stating, "This is a layup in terms of the acreage overlap and fit." <o:p></o:p>

He highlighted the combined company's potential to supersede Pioneer Natural Resources as the leading Permian producer, attributing the success to the synergistic consolidation of assets.<o:p></o:p>

The Permian Basin, a key battleground for energy companies, is witnessing a wave of consolidation driven by the imperative to secure future drilling inventory and enhance output efficiency.<o:p></o:p>

Analysts anticipate that this impending deal will exert pressure on other firms in the region to pursue similar mergers, aiming for enhanced operational efficiencies and scale in the fiercely competitive landscape.<o:p></o:p>

Andrew Dittmar, Senior Vice President at Enverus, underscored the significance of Diamondback's cash and stock utilisation in facilitating the retention of Endeavour founder Autry Stephens and family's substantial role in the newly formed entity. <o:p></o:p>

He also highlighted the high-quality drilling inventory possessed by both companies, anticipating a favourable reception from investors upon the deal's announcement.<o:p></o:p>

The merger marks a significant milestone for Endeavor Energy, which traces its roots back almost 45 years to its inception by Texas oil magnate Autry Stephens. <o:p></o:p>

Endeavor's operations span 350,000 acres in the Midland section of the Permian Basin, showcasing its robust presence in the heart of the prolific oilfield.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a new development, US shale oil rivals Diamondback Energy and Endeavor Energy Resources are on the verge of finalising a deal worth approximately $25 billion in cash and stock, as reported by Reuters.

In a new development, US shale oil rivals Diamondback Energy and Endeavor Energy Resources are on the verge of finalising a deal worth approximately $25 billion in cash and stock, as reported by Reuters. This merger is poised to create a colossal oil and gas entity valued at over $50 billion, positioning itself as the largest pure-play oil producer in the Permian shale field. Reuters cited Dan Pickering, the Chief Investment Officer of Pickering Energy Partners, who expressed confidence in the strategic alignment of the merger, stating, "This is a layup in terms of the acreage overlap and fit." He highlighted the combined company's potential to supersede Pioneer Natural Resources as the leading Permian producer, attributing the success to the synergistic consolidation of assets. The Permian Basin, a key battleground for energy companies, is witnessing a wave of consolidation driven by the imperative to secure future drilling inventory and enhance output efficiency. Analysts anticipate that this impending deal will exert pressure on other firms in the region to pursue similar mergers, aiming for enhanced operational efficiencies and scale in the fiercely competitive landscape. Andrew Dittmar, Senior Vice President at Enverus, underscored the significance of Diamondback's cash and stock utilisation in facilitating the retention of Endeavour founder Autry Stephens and family's substantial role in the newly formed entity. He also highlighted the high-quality drilling inventory possessed by both companies, anticipating a favourable reception from investors upon the deal's announcement. The merger marks a significant milestone for Endeavor Energy, which traces its roots back almost 45 years to its inception by Texas oil magnate Autry Stephens. Endeavor's operations span 350,000 acres in the Midland section of the Permian Basin, showcasing its robust presence in the heart of the prolific oilfield. (With inputs from Reuters)

Diamondback energy and Endeavor energy to merge, forming $50 billion oil giant

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