Author: Ricardo Perez

As hydrogen gains prominence amid the global pursuit of decarbonization and energy security, many major infrastructure projects are considering transportation in the form of ammonia, a safer and more cost-effective method for exporting hydrogen supplies in large volumes.

Rystad Energy’s projections indicate that 174 export terminals will primarily focus on converting hydrogen into ammonia by 2035, accounting for 62% of total exported volumes, or about 13.5 million tonnes per annum (tpa).

In support of the broader energy transition, a substantial upsurge in clean ammonia transportation and trade is anticipated, with traded volumes of ammonia projected to reach 76 million tonnes by 2035, four times the volume transported and traded in 2020. This surge, primarily originating from Africa and North America, will lead to a five-fold increase in ammonia exports by 2050 to 121 million tonnes.

Nations such as Japan and Germany have already adapted their respective national hydrogen strategies in anticipation of a greater role for the fuel, highlighting the pivotal role that hydrogen will play in helping reach net-zero emission targets. Despite the substantial scale of export projects and uncertainties surrounding future trade dynamics, some project developers may decide to partially convert hydrogen to ammonia or explore alternative transportation methods. In the meantime, investors are increasingly raising their confidence in the ammonia market and making significant near-term investments.

Green hydrogen, produced using renewable energy, is the cleanest but most expensive form. Blue hydrogen, produced using natural gas, is more cost-efficient and widely seen as a transition fuel that can help reduce emissions until affordable and reliable alternatives are scaled up. Liquefied natural gas (LNG) is already widely used as transportation and power-generation fuel, and its facilities could be adapted to transport hydrogen as well.

Hydrogen penetration is moving quickly and globally, entering new geographies and outpacing market expectations. With the ammonia trade booming, there is an urgent need to leverage existing assets to their fullest potential. Converting LNG terminals could be a good solution, not only optimizing current infrastructure but also spurring a re-evaluation of strategies that can cope with the scale of the expected market expansion.

Future flows: North America, Africa and Australia feature prominently
Our estimates show global clean ammonia exports are set to surge to 121 million tpa by 2050, with Africa contributing 40.7 million tpa and Australia with 35.9 million tpa based on announced projects.

There are currently 220 ammonia infrastructure projects globally, with a combined handling capacity of more than 6 million tonnes. Australia, which is aspiring to be a top clean ammonia exporter, presently has just seven terminals with total storage capacity of approximately 173,000 tonnes. Without substantial expansion by 2040, this would be capable of accommodating just two to three days of planned clean ammonia exports.

To handle Australia’s projected monthly exports of ammonia, terminal capacity will need to increase ten-fold. This is especially important considering Australian projects, such as the Western Green Hydrogen Hub and the Australia Renewable Energy Hub, will be among the largest hydrogen projects worldwide and are considering ammonia as a transportation medium.

Public-private partnerships: government holds the key to action, matching industry enthusiasm
Although the hydrogen economy is still in its early stages of development, demand for ammonia is already on-track to outpace available infrastructure. Both private and public sectors support the development of a global hydrogen economy, with major companies signing agreements with ammonia producers and governments auctioning off import contracts.

For example, JERA, a prominent player in Japan’s power generation sector, recently initiated a tender to secure an annual supply of up to 500,000 tonnes of ammonia, starting from 2027. This move is aimed at supporting coal generation co-firing applications within Japan and has involved active negotiations with ammonia producers such as CF Industries and Yara. Meanwhile, in Germany, major energy companies E. ON, Uniper and RWE have entered ammonia-related memorandums of understanding with international firms, including EverWind (Canada), Greenko (India) and Hyphen (Namibia).

On the governmental front, auctions aimed at sourcing ammonia imports are gaining popularity. Germany’s H2Global auction, backed by €900 million ($978 million) in governmental support, will be the first of its kind globally and offer 10-year purchase agreements for green ammonia. Additionally, various government-backed initiatives are geared towards creating fresh demand for ammonia, including its use as an alternative fuel in the maritime sector (supported by the FuelEU Maritime initiative) and co-firing applications in Japan.

Industry experts are already exploring the technical feasibility of these transitions, especially considering the projected rise in ammonia utilization for power generation and shipping. We estimate that switching LNG export and import facilities to ammonia would incur estimated costs ranging from 11% to 20% of the total LNG terminal capital expenditure, depending on factors such as demand and location.

Shipping industry growth and transition opportunities for LPG carriers
While still in its early stages, the ammonia shipping industry is expanding swiftly. Currently, just 30% of the global liquefied petroleum gas (LPG) fleet can transport ammonia, with only 50 large and very large gas carriers having this capability. To meet rising demand, Eastern Pacific Shipping has commissioned four very large ammonia carriers (VLACs) from Jiangnan Shipbuilding Group. These VLACs will become the world’s largest carriers, each boasting 93,000 cubic meters of capacity.

To transport the announced 121 million tonnes of ammonia, approximately 200 VLACs will be required, necessitating an investment of approximately $20 billion in newbuilds. Beyond newbuilds, interest is growing in retrofitting LPG vessels for ammonia carriage. Given the availability of over 1,450 LPG carriers, converting these vessels into ammonia-ready carriers offers a robust transition strategy for shipowners, particularly as demand for LPG tonne-mileage is anticipated to decline amid decarbonization efforts.

OilPrice.com, Rested Energy, September 30, 2023

INEOS Inovyn is the largest operator of electrolysis technology in Europe, producing 60,000 tonnes of low-carbon hydrogen annually across multiple sites.

We have achieved a new ISCC certification, reflecting our ambition to reduce carbon emissions. From June 2023, hydrogen production at the group’s Antwerp site is now certified under ISCC PLUS – a global voluntary certification program for bio-based, circular and renewable raw materials across all markets.

It makes INEOS Inovyn the first certified company in Europe to have its required greenhouse gas data fully audited, providing added value to customers by enabling the traceability of sustainable materials along supply chains. Customers using our renewable hydrogen will now be able to develop sustainable downstream products which benefit from this certification – along with reducing their Scope 3 emissions.

Our Antwerp site produces hydrogen through Chlor-Alkali electrolysis – the electrolysis of brine producing chlorine, caustic soda/potash, sodium hypochlorite and hydrogen. The electricity used to produce this hydrogen comes directly from wind turbines off Belgium’s North Coast.

“We use renewable electricity from existing and local Power Purchase Agreements to produce renewable hydrogen. I’m proud that our hydrogen is now labelled renewable-energy-derived material and hope this drives the market towards greater sustainability.”

“Hydrogen produced from the Chlor-Alkali industry is vital as the European hydrogen market grows, this ISCC PLUS certification means there is only one product on the market today with robust and transparent sustainability credentials,” explains Wouter Bleukx.

Using our expertise in production, technology and storage, we are helping pioneer changes that will grow European hydrogen production.

Ineos, Paul Tuohy, October 4, 2023

UK and Germany sign agreement to help accelerate the development of an international hydrogen industry.

A new important agreement between the UK and Germany could help to accelerate the development of an international hydrogen industry – with the 2 countries at the cutting edge of its development.

Signed today at the UK Embassy in Berlin, by Minister for Energy Efficiency and Green Finance Lord Callanan and Federal Republic of Germany’s State Secretary for Energy Philip Nimmermann – a Joint Declaration of Intent will see the UK and Germany work together to underpin the international trade in hydrogen.

The 2 governments will also accelerate the role of low-carbon hydrogen in their nations’ energy mix, showing the world how to expand new, net zero-friendly markets. They committed to work together to further advance ground-breaking and renewable hydrogen technologies, supporting jobs and low-carbon investment.

The partnership follows significant investment by both countries in the development of hydrogen as an alternative fuel. In the UK, the government is supporting new low-carbon hydrogen production with capital from the £240 million Net Zero Hydrogen Fund and revenue support from the Hydrogen Production Business Model. In Germany, the government is also supporting the implementation of the National Hydrogen Strategy with funding from the Climate and Transformation Fund, providing a push for the ramp-up of a hydrogen market.

It will also further boost the move towards net zero emissions by 2050, and the energy security of both countries, moving away from fossil fuels and towards cleaner and more secure, diversified alternatives.

UK’s Minister for Energy Efficiency and Green Finance Lord Callanan said:

The UK and Germany are natural partners in making low-carbon hydrogen a cleaner and more sustainable way to power up our societies.

This agreement will underpin the development of this new fuel not just for our respective countries but also for an international trade that could be transformative in our work towards achieving net zero emissions by 2050.

It is through these partnerships that we can move away from expensive fossil fuels – and in doing so boost our energy security.

Federal Republic of Germany’s State Secretary for Energy, Philip Nimmermann said:

With this declaration we are on our way to jointly help developing the European and international markets for hydrogen. Our cooperation will not just involve trading of hydrogen and its derivatives, but also cooperation on technologies and innovation in this field, which will be of mutual benefit for both Germany and the UK.

Hydrogen is of the highest importance for us to meet our goals regarding emission reduction. Also, it is a great opportunity for business. I am looking forward to a successful partnership.

5 pillars of collaboration were agreed by the leaders:

(1) Accelerating the deployment of hydrogen projects for industry and consumers
(2) Establishing international leadership on hydrogen markets, setting safety and regulations to aid trade
(3) Research and innovation on hydrogen, from production to end use
(4) Promoting trade for hydrogen, plus related goods, technologies and services
Joint market analysis, to support planning and investment by government and industry
(5) This work is set to make hydrogen technologies cheaper and more accessible, aiming to lower energy costs for consumers in the future.

As industry feels the benefit of trade opportunities between the 2 countries, private investment in hydrogen technology and projects is set to follow the agreement.

Providing supportive environments, the countries will discuss safety standards that can be used internationally with the aim to establish reliable, stable markets for sustainable low carbon hydrogen, in particular from renewables.

The agreement will further help the UK and Germany reach their respective goals of net zero emissions by 2050 and to secure a reliable energy supply for economic and energy security purposes, recognising the shifting geopolitical landscape.

Steve Scrimshaw, VP of Siemens Energy UK&I and a member of the UK government’s Hydrogen Advisory Council and the Green Jobs Delivery Group, said:
The UK and Germany have a proud track record when it comes to green energy and today’s Hydrogen Partnership reinforces that commitment. Ramping up the hydrogen economy will take time. Closer cooperation between countries such as the UK and Germany will help accelerate the scale and pace that is needed.

The sustainable decarbonisation of industry is unthinkable without renewable hydrogen that is why partnerships like this are so important. At Siemens Energy we cover the energy value chain – from power generation and transmission to storage, including hydrogen electrolysis technology – and are committed to playing a key role across Europe and the rest of the globe.

Dennis Schulz, CEO of ITM Power, said:
As the UK’s only commercial electrolyser manufacturer, we are welcoming this cross-border collaboration agreement. An effective hydrogen economy can only take shape if countries form alliances like this one. Germany is a very significant market for hydrogen and for ITM Power. We are currently building several hundreds of megawatts of electrolyser capacity for projects in Germany, some of which are among the biggest projects in the world. In October, we will open our new office and EU after sales hub near Frankfurt that will further strengthen our links with our customers and partners in Germany and the wider EU.

Michael Lewis, CEO of Uniper, said:
Today is an important milestone for the German-British energy cooperation. Uniper is proud to be actively shaping the energy transition in the UK. Indeed, hydrogen projects in the UK are an essential part of Uniper’s new strategy and its implementation. Our commitment to driving large-scale hydrogen production is already underpinned with projects: The Humber H2ub® is a 720 MW CCS-enabled hydrogen production project. At its Ratcliffe power station site Uniper plans to develop large-scale, low carbon hydrogen production.

Sopna Sury, COO at Hydrogen RWE Generation, said:
RWE is committed to ramping up green hydrogen in the UK and Germany as part of its clean energy growth plans. By the end of the decade, RWE aims to build a net 2 GW of dedicated electrolyser capacity in our core markets, including the UK. Evidence of this is our flagship GetH2 project in Lingen, Germany and our project development work in England, Scotland and Wales. As a leading international energy company with a strong footprint in the UK, RWE is well-placed to support this partnership and help put the UK and Germany at the forefront of the European hydrogen economy.

Gov.UK, 26 September 2023

Despite Europe’s better preparedness this year, “We actually expect the market to be quite volatile over the winter,” Equinor CEO Anders Opedal told the Energy Intelligence Forum in London on Wednesday.

“We will do everything we can to make sure that we maximise gas to come through the pipes, but Europe will be dependent on the LNG (liquefied natural gas) supply,” Opedal added, as reported by Reuters.

Equinor is the largest gas producer on the Norwegian continental shelf, and the second-largest gas supplier in Europe, supplying more than 20% of Europe’s gas.

The European Union has now managed to store record amounts of natural gas ahead of schedule for winter. As of early October, gas storage in the EU was close to 100% full. This record-full storage, however, does not fully cover consumption.

In early Wednesday trading, we saw Dutch wholesale gas prices rise on the escalating Middle East conflict in the wake of the Hamas attack on Israel and a missile strike on a hospital in Gaza, for which blame is still being apportioned and denied. The Dutch TTF November gas contract was up nearly 4% on Wednesday, tracking a nearly 2% rise in oil prices over Middle East uncertainty.

On the flip side of this, Europe has also lost some demand for natural gas as a direct result of the energy crisis and soaring oil and gas prices, which dampened industrial demand. Trader Vitol Group on Tuesday told the same Energy Intelligence Forum in London that there have been double-digit percentage reductions in European gas demand and they “expect some of the lost demand to be permanent”.

OilPrice.com, Charles Kennedy, October 18 2023

As hydrogen gains prominence amid the global pursuit of decarbonization and energy security, many major infrastructure projects are considering transportation in the form of ammonia, a safer and more cost-effective method for exporting hydrogen supplies in large volumes. Rystad Energy’s projections indicate that 174 export terminals will primarily focus on converting hydrogen into ammonia by 2035, accounting for 62% of total exported volumes, or about 13.5 million tonnes per annum (tpa).

In support of the broader energy transition, a substantial upsurge in clean ammonia transportation and trade is anticipated, with traded volumes of ammonia projected to reach 76 million tonnes by 2035, four times the volume transported and traded in 2020. This surge, primarily originating from Africa and North America, will lead to a five-fold increase in ammonia exports by 2050 to 121 million tonnes.

Rystad Energy’s estimates show global clean ammonia exports are set to surge to 121 million tpa by 2050, with Africa contributing 40.7 million tpa and Australia with 35.9 million tpa based on announced projects.

There are currently 220 ammonia infrastructure projects globally, with a combined handling capacity of more than 6 million tonnes. Australia presently has just seven terminals with total storage capacity of approximately 173,000 tonnes. Without substantial expansion by 2040, this would be capable of accommodating just two to three days of planned clean ammonia exports.

To handle Australia’s projected monthly exports of ammonia, terminal capacity will need to increase ten-fold.

JERA recently initiated a tender to secure an annual supply of up to 500,000 tonnes of ammonia, starting from 2027. In Germany, major energy companies E. ON, Uniper and RWE have entered ammonia-related memorandums of understanding with international firms, including EverWind (Canada), Greenko (India) and Hyphen (Namibia).

Germany’s H2Global auction, backed by €900 million ($978 million) in governmental support, will be the first of its kind globally and offer 10-year purchase agreements for green ammonia.

Rystad Energy estimate that switching LNG export and import facilities to ammonia would incur estimated costs ranging from 11% to 20% of the total LNG terminal capital expenditure, depending on factors such as demand and location.

Currently, just 30% of the global liquefied petroleum gas (LPG) fleet can transport ammonia, with only 50 large and very large gas carriers having this capability. To meet rising demand, Eastern Pacific Shipping has commissioned four very large ammonia carriers (VLACs) from Jiangnan Shipbuilding Group. These VLACs will become the world’s largest carriers, each boasting 93,000 cubic meters of capacity.

To transport the announced 121 million tonnes of ammonia, approximately 200 VLACs will be required, necessitating an investment of approximately $20 billion in newbuilds. Beyond newbuilds, interest is growing in retrofitting LPG vessels for ammonia carriage. Given the availability of over 1,450 LPG carriers, converting these vessels into ammonia-ready carriers offers a robust transition strategy for shipowners, particularly as demand for LPG tonne-mileage is anticipated to decline amid decarbonization efforts.

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics, and consultancy services to the global energy industry.

Rystad Energy, Minh Khoi Le, Kartik Selvaraju, 26 September, 2023

Chevron announced plans to acquire oil and gas company Hess for $53 billion in stock.

Less than two weeks prior, Exxon Mobil announced it is acquiring oil company Pioneer Natural Resources for $59.5 billion in stock.

On Tuesday, the International Energy Agency released its annual world energy outlook report that projects global demand for coal, oil and natural gas will hit an all-time high by 2030, a prediction the IEA’s executive director Fatih Birol had telegraphed in September.

“The transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question of ‘if,’ it’s just a matter of ‘how soon’ — and the sooner the better for all of us,” Birol said in a written statement published alongside his agency’s world outlook. “Taking into account the ongoing strains and volatility in traditional energy markets today, claims that oil and gas represent safe or secure choices for the world’s energy and climate future look weaker than ever.”

But based on their acquisitions, Chevron and Exxon are seemingly preparing for a different world than the IEA is portending.

“The large companies — nongovernment companies — do not see an end to oil demand any time in the near future. That’s one of the messages you have to take from this. They are committed to the industry, to production, to reserves and to spending,” Larry J. Goldstein, a former president of the Petroleum Industry Research Foundation and a trustee with the not-for-profit Energy Policy Research Foundation, told CNBC in a phone conversation Monday.

“They’re in this in the long haul. They don’t see oil demand declining anytime in the near term. And they see oil demand in fairly large volumes existing for at least the next 20, 25 years,” Goldstein told CNBC. “There’s a major difference between what the big oil companies believe the future of oil is and the governments around the world.”

So, too, says Ben Cahill, a senior fellow in the energy security and climate change program at the bipartisan, nonprofit policy research organization, Center for Strategic and International Studies.

“There are endless debates about when ‘peak demand’ will occur, but at the moment, global oil consumption is near an all-time high. The largest oil and gas producers in the United States see a long pathway for oil demand,” Cahill told CNBC.

Africa, Asia driving demand

Globally, momentum behind and investment in clean energy is increasing. In 2023, there will be $2.8 trillion invested in the global energy markets, according to a prediction from the IEA in May, and $1.7 trillion of that is expected to be in clean technologies, the IEA said.

The remainder, a bit more than $1 trillion, will go into fossil fuels, such as coal, gas and oil, the IEA said.

Continued demand for oil and gas despite growing momentum in clean energy is due to population growth around the globe and in particular, growth of populations “ascending the socioeconomic ladder” in Africa, Asia and to some extent Latin America, according to Shon Hiatt, director of the Business of Energy Transition Initiative at the USC Marshall School of Business.

Oil and gas are relatively cheap and easy to move around, particularly in comparison with building new clean energy infrastructure.

“These companies believe in the long-term viability of the oil and gas industry because hydrocarbons remain the most cost-effective and easily transportable and storable energy source,” Hiatt told CNBC. “Their strategy suggests that in emerging economies marked by population and economic expansion, the adoption of low-carbon energy sources may be prohibitively expensive, while hydrocarbon demand in European and North American markets, although potentially reduced, will remain a significant factor.”

Also, while electric vehicles are growing in popularity, they are just one section of the transportation pie, and many of the other sections of the transportation sector will continue to use fossil fuels, said Marianne Kah, senior research scholar and board member at Columbia University’s Center on Global Energy Policy. Kah was previously the chief economist of ConocoPhillips for 25 years.

“While there is a lot of media attention given to the increasing penetration of electric passenger vehicles, global oil demand is still expected to grow in the petrochemical, aviation and heavy-duty trucking sectors,” Kah told CNBC.

Geopolitical pressures also play a role.

Exxon and Chevron are expanding their holdings as European oil and gas majors are more likely to be subject to strict emissions regulations. The U.S. is unlikely to have the political will to force the same kind of stringent regulations on oil and gas companies here.

“One might speculate that Exxon and Chevron are anticipating the European oil majors divesting their global reserves over the next decade due to European policy changes,” Hiatt told CNBC.

“They are also betting domestic politics will not allow the U.S. to take significant new climate policies directed specifically to restrain or limit or ban the level of U.S. oil and gas domestic production,” Amy Myers Jaffe, a research professor at New York University and director of the Energy, Climate Justice and Sustainability Lab at NYU’s School of Professional Studies, told CNBC. 

Goldstein expects the ever-expanding U.S. national debt will eventually put all kinds of government subsidies on the chopping block, which he says will also benefit companies such as Exxon and Chevron.

“All subsidies will be under enormous pressure,” Goldstein said, the intensity of that pressure dependent on which party is in the White House at any given time. “By the way, that means the large financial oil companies will be able to weather that environment better than the smaller companies.”

Also, sanctions of state-controlled oil and gas companies in countries like those in Russia, Venezuela and Iran are providing Exxon and Chevron a geopolitical opening, Jaffe said.

“They likely hope that any geopolitically driven market shortfalls to come can be filled by their own production, even if demand for oil overall is reduced through decarbonization policies around the world,” Jaffe told CNBC. “If you imagine oil like the game of musical chairs, Exxon Mobil and Chevron are betting that other countries will fall out of the game regardless of the number of chairs and that there will be enough chairs left for the American firms to sit down, each time the music stops.”

Oil that can be tapped quickly is a prioity

Known oil reserves are increasingly valuable as European and American governments look to limit the exploration for new oil and gas reserves, according to Hiatt.

“Notably, both Pioneer and Hess possess attractive, well-established oil and gas reserves that offer the potential for significant expansion and diversification for Exxon and Chevron,” Hiatt told CNBC.

Oil and gas reserves that can be brought to market relatively quickly “are the ideal candidates for production when there is uncertainty about the pace of the energy transition,” Kah told CNBC, which explains Exxon’s acquisition of Pioneer, which gave Exxon more access to “tight oil,” or oil found in shale rock, in the Permian basin.

Shale is a kind of porous rock that can hold natural gas and oil. It’s accessed with hydraulic fracking, which involves shooting water mixed with sand into the ground to release the fossil fuel reserves held therein. Hydrocarbon reserves found in shale can be brought to market between six months and a year, where exploring for new reserves in offshore deep water can take five to seven years to tap, Jaffe told CNBC.

“Chevron and Exxon Mobil are looking to reduce their costs and lower execution risk through increasing the share of short cycle U.S. shale reserves in their portfolio,” Jaffe said. Having reserves that are easier to bring to market gives oil and gas companies increased ability to be responsive to swings in the price of oil and gas. “That flexibility is attractive in today’s volatile price climate,” Jaffe told CNBC.

Chevron’s purchase of Hess also gives Chevron access in Guyana, a country in South America, which Jaffe also says is desirable because it is “a low cost, close to home prolific production region.”

CNBC, Catherine Clifford, 25 October, 2023

U.S. energy major Exxon Mobil (XOM.N) is in advanced talks to buy shale producer Pioneer Natural Resources (PXD.N) in a $60 billion deal, sources familiar with the matter said.

It would be Exxon’s biggest acquisition since its $81 billion deal for Mobil in 1998 and could deepen the company’s position in the country’s most lucrative oil patch.

Here are the major deals in the global oil and gas sector since the 2000’s:

2001

Chevron buys Texaco in a $39.5 billion deal and emerges as one of the largest energy firms in the world.

2002

Shareholders of Conoco and Phillips Petroleum, and the Federal Trade Commission approve an $18 billion merger between the companies and created the third-largest U.S. oil firm ConocoPhillips.

2006

ConocoPhillips acquires Burlington Resources in a $35.6 billion deal and gains access to lucrative positions in North American gas-rich basins.

2007

Norway’s Statoil buys the oil and gas assets of Norsk Hydro for $30 billion to create a new energy firm, Equinor (EQNR.OL).

2010

Exxon Mobil (XOM.N) acquires XTO Energy for about $30 billion in stock to bolster its position as a leading U.S. natural gas producer.

2012

Russia’s state oil company Rosneft (ROSN.MM) buys TNK-BP from UK-based BP (BP.L) in a $55 billion deal.

Kinder Morgan finalizes a $21 billion deal to buy El Paso Corp, combining the two largest natural gas pipeline operators.

2014

Kinder Morgan (KMI.N) buys all of its publicly traded units (Kinder Morgan Energy Partners LP, Kinder Morgan Inc with Kinder Morgan Management and El Paso Pipeline Partners) under one roof in a $70 billion deal.

2015

Shell (then Royal Dutch Shell) acquires British rival BG Group in a $70 billion deal.

2018

Marathon Petroleum (MPC.N) takes over rival Andeavor for $23 billion.

2019

Occidental Petroleum (OXY.N) acquires Anadarko Petroleum in a $38 billion deal.

2020

ConocoPhillips (COP.N) buys Concho Resources for $9.7 billion in 2020’s top shale deal.

Saudi Aramco (2222.SE) completes its purchase of a 70% stake in petrochemicals company Saudi Basic Industries for $69.1 billion.

PipeChina takes over oil and gas pipelines, and storage facilities from PetroChina and Sinopec in a deal valued at $55.9 billion.

2021

Norway’s Aker BP (AKRBP.OL) buys Sweden’s Lundin Energy in a $13.9 billion cash and stock deal, to form Norway’s second largest listed oil firm.

BHP Group (BHP.AX) agrees to sell its petroleum business to Woodside Petroleum in a merger to create an oil and gas producer worth $28 billion with growth assets in Australia and the Americas.

2023

Magellan Midstream Partners’ unitholders vote in favor of its sale to larger rival ONEOK (OKE.N) for $18.8 billion, creating one of the largest U.S. energy pipeline companies.

Reuters, Seher Dareen, Sourasis Bose and Roshia Sabu, October 11, 2023

U.S. gasoline prices continued to slide into the weekend, despite an abrupt upturn in oil prices on Friday. That was a reaction to continued violence in Israel and the Gaza Strip in the Middle East.

What’s not clear is if the price at the pump will follow oil prices higher in the week ahead.

The U.S. national average gas price was $3.601 per gallon on Sunday, the American Automobile Association said, down slightly from Saturday’s $3.609 a gallon and 28 cents, or 7.2%, from $3.881 on Sept. 18. That was the highest price this year.

Sunday’s decline was the 17th decline in a row and the 25th in the 26 days since Sept. 18. The AAA national average has fallen 28 cents a gallon, or 7.2%, in that time. For comparison, on October 15, 2022, the national average was $3.892 a gallon.

The gas-price decline has mirrored the trend of crude oil prices. West Texas intermediate, the benchmark U.S. crude, had a closing peak of $93.68 a 42-gallon barrel on Sept. 27. That was a 16.7% gain on the year.

But crude crude then fell 11.5% through Thursday.

On Friday, however, oil markets abruptly surged, with WTI closing up 5.8% to $87.69. Clearly, the price jump was a reaction to worries about escalating violence between Hamas and Israel.

Oil markets don’t trade between Friday’s close and the start of Monday trading at 6 p.m. ET on Sundays. AAA’s Sunday price was available early Sunday.

The most expensive state for gasoline was California at $5.627 a gallon. Mono County has the highest retail price at $6.772 a gallon. Georgia had the lowest state-wide price: $3.070. The lowest county price was Ware County, at $2.761 per gallon.

The Street, Charley Blaine, October 16, 2023