Upstream In Perspective

The Eastern Mediterranean’s role as a global gas hub is technically advantaged by more than 10 years of exploration success, and strategically advantaged by its relative proximity to European markets. However, those advantages are balanced by competing interests that include growing gas demand from local markets and a lack of political consensus in the region. Petroleum-sector risk expert Cat Hunter joins EnergyCents this week to review the monetization efforts of recent Eastern Med gas discoveries, and share thoughts on the pace and direction of the area’s potential as a global gas hub. Learn more about S&P Global Commodity Insights’ petroleum-sector risk coverage at: https://ihsmarkit.com/products/oil-gas-petroleum-news-peps.html Join the conversation at energycents@spglobal.com

Five oilfield services firms control more than 65% of the hydraulic horsepower capacity available to US shale-focused operators interested in fracing wells. Nearly 80% of that capacity is in use, and overall horsepower is not expected to expand anytime soon. North America oilfield services experts Chris Alexander and Prashanth Pillai join EnergyCents this week to consider what the capacity limitations mean for the sector’s near-term prospects, and how higher spending by operators in 2023 may not proportionately translate to production growth. Hear referenced shale-sector conversation with Reed Olmstead and Imre Kugler in September’s episode: EnergyCents- Ep 89: Theory of constraints: Service-sector capacity limits shale-sector reinvestment Learn more about S&P Global Commodity Insights’ Oilfield Services coverage at: https://ihsmarkit.com/products/oilfield-equipment-services.html Join the conversation at energycents@ihsmarkit.com.

More than a dozen operators are preparing to bid in December on up to 12 pre-salt blocks in Brazil’s Campos and Santos basins, including the promising Ametista Block. This year’s auction times with the finalization of a presidential run-off and marks the first time pre-salt blocks are available in a Permanent Offer System, which is designed to promote award efficiency and had been previously applied to more marginal acreage. Brazilian petroleum-sector expert Ford Tanner joins EnergyCents this week to consider how the country’s presidential run-off may influence its future oil policies, and discuss the uniqueness of the upcoming pre-salt auction. Learn more about S&P Global Commodity Insights’ petroleum-sector risk coverage at: https://ihsmarkit.com/products/oil-gas-petroleum-news-peps.html. Join the conversation at energycents@spglobal.com.

There are more than 20 Green Banks operating in the US with a shared goal of accelerating cleantech investment in underserved communities and filling other climate-related market gaps. Alison Bennett, a banking reporter with S&P Global's Market Intelligence, joins EnergyCents this week to discuss the role of Green Banks in climate finance, and what to expect from the institutions on the back of a $27 billion allocation as part of the Inflation Reduction Act. Learn more about S&P Market Intelligence: https://www.spglobal.com/marketintelligence/en. Learn more about the American Green Bank Consortium: https://greenbankconsortium.org/annual-industry-report.

Europe’s real GDP grew by about 5% during the first two quarters of 2022 on the back of post-pandemic strength from the service sector. Momentum, however, stalled in response to high energy prices and contraction now appears imminent. S&P Global experts on European economics and policy Diego Iscaro and Petya Barzilska join EnergyCents this week to discuss the impact of high energy prices on EU member states, and what to expect from fiscal and monetary policy makers over the coming months. Learn more about S&P Global’s Economics and Country Risk coverage at https://ihsmarkit.com/industry/economics-country-risk.html. Join the conversation at energycents@ihsmarkit.com.

Increasing the mix of Sustainable Aviation Fuels (SAFs) in airlines is a key ingredient in the aviation sector reaching its goal of carbon neutrality by 2050. Biofuels expert Kevin Lindemer returns to EnergyCents this week to discuss the technologies and policies supporting SAF development and consider the timing of market-share growth for lower carbon fuels in aviation. Learn more about S&P Global Commodity Insights biofuels coverage at https://ihsmarkit.com/products/biofuels.html. Hear more from Kevin on EnergyCents – Episode 43: Beyond Oil: the growing role of biofuels in a decarbonizing refining sector. Join the conversation at energycents@ihsmarkit.com.

The US shale sector is awash in cash on the strength of commodity prices and prudence of operations. North America upstream experts Reed Olmstead and Imre Kugler join EnergyCents this week to consider the near-term outlook for shale producers, and why high commodity prices are not stimulating aggressive drilling campaigns. Learn more about S&P Global Commodity Insights shale forecasting and analysis at https://ihsmarkit.com/products/upstream-insight.html and https://ihsmarkit.com/products/energyview-oil-gas-north-america.html. Join the conversation at energycents@ihsmarkit.com.

Climate Week NYC runs September 19-25 in Manhattan, during a week when the city will also be crowded with dignitaries attending the United Nations General Assembly. Climate and energy experts Peter Gardett and Roman Kramarchuck join EnergyCents this week – ahead of their own Climate Week attendance – to share their expectations for program, and frame its role in the accelerating global environmental narrative. Learn more about S&P Global Commodity Insights energy-transition coverage at https://www.spglobal.com/commodityinsights/en/products-services/energy-transitionclimate and climate-finance coverage at https://ihsmarkit.com/products/EnergyView-Climate-and-CleanTech-Service.html.

The broad-reaching Inflation Reduction Act (IRA) includes a mix of federal incentives to motivate clean-energy investment that will mitigate emissions-related climate concerns. North America Power experts Patrick Luckow and Doug Giuffre join EnergyCents this week to share their early analysis of the bill, and highlight its potential implications for the US electric grid. Read more of Patrick and Doug’s thoughts on the bill: https://ihsmarkit.com/research-analysis/implications-of-the-us-senate-passed-inflation-reduction-act.html Learn more about S&P Global’s North America Gas & Power coverage for industry at https://ihsmarkit.com/products/north-american-energy-forecasts-strategic-analysis-insights-by-fuel.html and investors https://ihsmarkit.com/products/energyview-gas-power-renewables.html. Join the conversation at energycents@ihsmarkit.com.

Egypt hosts the 2022 United Nations Climate Change Conference, also known as COP27, this November. The event takes place during a year when energy security has overshadowed many countries’ climate concerns. Climate policy experts Anna Mosby and Conway Irwin join EnergyCents this week to share expectations for the upcoming conference and consider how the recently signed Inflation Reduction Act may shape the United States’ presence during this year’s talks. Learn more about S&P Global’s Energy and Climate Scenarios coverage https://ihsmarkit.com/products/energy-climate-scenarios.html. Join the conversation at energycents@ihsmarkit.com.

Utilities and their commissions are watching customers embrace distributed generation and battery investments that could impact existing rate design and returns on equity. Lillian Federico, a Commodity Insights research director for S&P Global's Capital IQ, joins EnergyCents this week to discuss the evolution of utility rate design, and how growing climate and resilience priorities from US consumers may impact designs of the future. Learn more about Capital IQ Pro: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro Learn more about S&P Global’s Power and Renewables coverage that caters to industry https://ihsmarkit.com/products/power-renewables-energy-markets.html and financial sector customers https://ihsmarkit.com/products/energyview-gas-power-renewables.html Join the conversation at energycents@ihsmarkit.com.

Governments of resource-rich countries in Africa find themselves at a crossroads as oil and gas operators weigh stranded-asset risk before committing to long-lead-time fossil-fuel projects. Roderick Bruce, an expert in petroleum-sector risk with S&P Global Commodity Insights, joins EnergyCents this week to discuss how host governments in Africa are working with operators to balance their near-term economic goals of resource monetization with longer-term environmental goals of carbon reduction. Learn more about S&P Global’s oil-and-gas risk coverage that caters to industry https://ihsmarkit.com/products/oil-gas-risk-forecast-analysis.html and financial sector customers https://ihsmarkit.com/products/energy-advisory-service.html Join the conversation at energycents@ihsmarkit.com.

Policy makers are returning their attention to nuclear power as a potentially low-emission, reliable generator of electricity. Most recently, the European Parliament voted in early July to apply its green label to nuclear power under the EU's sustainable finance taxonomy. S&P Global Commodity Insights experts in European power Coralie Laurencin and Sylvain Cognet-Dauphin join EnergyCents this week to discuss the role of nuclear power in meeting Europe’s immediate electricity needs, and whether short-term needs will impact an otherwise declining long-term trajectory. Learn more about S&P Global’s Power and Renewables coverage that caters to industry at https://ihsmarkit.com/products/power-renewables-energy-markets.html and financial sector customers at https://ihsmarkit.com/products/energyview-gas-power-renewables.html. Join the conversation at energycents@ihsmarkit.com.

Washington state in April became the first state to adopt all-electric standards for new commercial and multi-family constructions. The move follows similar, more localized, activity led largely by California municipalities to limit the expansion of fossil-fuel end use. Gas utilities Expert Tom DiChristopher, a Commodity Insights senior reporter for S&P Global's Capital IQ, joins EnergyCents this week to discuss moves to ban the connection of new building constructions to municipal gas grids, and how they may impact the future plans of utilities and residential consumers. Learn more about Capital IQ Pro: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro Hear more from Tom in the on-demand webinar, “Building Electrification: Three years after the Berkeley gas ban, where are we now?”: https://pages.marketintelligence.spglobal.com/Building-Electrification-Three-years-after-the-Berkeley-gas-ban-where-are-we-now-Registration-June-2022.html Join the conversation at energycents@ihsmarkit

Global coal prices are at multi-decade highs as post-CoVid demand spikes in the face of underinvested supply. Coal Markets Expert Taylor Kuykendall, a Commodity Insights senior reporter for S&P Global's Capital IQ, joins EnergyCents this week to discuss the current coal market imbalance, and consider how competing environmental and energy-security concerns may influence markets going forward. Learn more about Capital IQ Pro: https://www.spglobal.com/marketintelligence/en/solutions/sp-capital-iq-pro. Hear more from Taylor on S&P Global Market Intelligence’s Energy Evolution podcast: https://open.spotify.com/show/4ttjcoVpnQNzx8Ho2ZjPWF?si=0d867dd80f864c89. Join the conversation at energycents@ihsmarkit.com.

The LNG industry counts 48 floating regasification and storage units (FSRU) in its global fleet, and demand has exploded as Europe seeks gas-supply optionality after Russia’s invasion of Ukraine. Charter rates have about doubled this year to approximately $200,000/day. S&P Global LNG Expert Andres Rojas joins EnergyCents this week to put the current FSRU-market tightness into perspective, and consider whether this short-term boom has long-term implications. Learn more about LNG coverage in our Global Gas service at https://ihsmarkit.com/products/global-gas.html and LNG Analytics at https://ihsmarkit.com/products/global-lng-predictive-analytics.html. Join the conversation at energycents@ihsmarkit.com

Energy-directed capital has long been biased to the molecule thanks to the global scale and operational efficiencies of fossil fuels. Focus has, in some ways, shifted to the electron with the maturation of low-carbon technologies. S&P Global climate finance expert Peter Gardett returns to EnergyCents this week to discuss the complexities of climate-aligned energy investing, and how there’s room for both electrons and molecules in a lower-carbon economy. Learn more about our cleantech investment coverage in EnergyView – Climate & Cleantech https://ihsmarkit.com/products/EnergyView-Climate-and-CleanTech-Service.html Hear more from Peter in our On Demand webinar, “Understand and maximize returns in energy transition investments from climate and cleantech fundamental data” https://ihsmarkit.com/events/understand-and-maximize-returns-in-energy-transition-investments-from-climate-and-cleantech-fundamental-data/overview.html

The global energy sector, largely defined by the traditional businesses of oil and gas companies, is increasingly associated with cleantech investment and innovation. S&P Global upstream technology experts Judson Jacobs and Carolyn Seto join EnergyCents this week to discuss how oil and gas companies are approaching energy-sector disruption, and what to expect as high commodity prices offer renewed support for traditional business lines. Learn more about our Upstream Technology and Innovation coverage https://ihsmarkit.com/products/upstream-technology-and-innovation-utai.html

The United States is entering summer with natural gas prices approaching $9/mcf and Lower 48 storage levels 15% below the five-year average, and North America drillers are loath to increase supply as investors force restraint. S&P Global gas markets experts Matthew Palmer and Laurent Ruseckas join EnergyCents this week to discuss how this summer, and how global gas demand increasingly influences North America markets. Learn more about our gas markets coverage in Global Gas service https://ihsmarkit.com/products/global-gas.html and, for investors, EnergyView – Gas, Power, Renewables https://ihsmarkit.com/products/energyview-gas-power-renewables.html Hear more from Laurent in our On Demand webinar, “Identifying institutional investment opportunities in oil and gas markets” https://ihsmarkit.com/events/identifying-institutional-investment-opportunities-in-oil-and-gas-markets/overview.html?utm_campaign=CL_ENR_CSG_26April22_EnergyAdvisory_ET1_PC022175_e-production_E-135164_PRDM_0504_1315&utm_medium=email&a

Russian sanctions have fundamentally altered commodity market conditions, how oil is priced, and the framework used by market participants to form forward price expectations. S&P Global oil markets expert Karim Fawaz joins EnergyCents this week to discuss how energy-security priorities have reshaped global oil markets, and the key areas to watch as we move in the second half of 2022. Learn more about oil markets coverage in Energy Advisory Service https://ihsmarkit.com/products/energy-advisory-service.html Hear more from Karim in our On Demand webinar, “Identifying institutional investment opportunities in oil and gas markets” https://ihsmarkit.com/events/identifying-institutional-investment-opportunities-in-oil-and-gas-markets/overview.html?utm_campaign=CL_ENR_CSG_26April22_EnergyAdvisory_ET1_PC022175_e-production_E-135164_PRDM_0504_1315&utm_medium=email&utm_source=Eloqua