SECTOR COMMENTARY:

The energy sector is set to kick off the New Year higher, tracking gains in the major equity futures and despite mild weakness in the underlying commodities.

WTI and Brent crude oil futures inched lower this morning, pressured by rising infection rates and new restrictions in several countries but supported by tight supply and hopes of further demand recovery in 2022. Also aiding support were reports that Libyan oil output will be cut by 200,000 barrels per day for a week due to pipeline maintenance.

Natural gas futures slid over 1% this morning following Friday’s rally, pressured by expectations of a drop in demand for LNG exports but supported by below normal temperatures in key consuming regions over the next two weeks.

BY SECTOR:

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS                                           

Egypt awarded oil and gas exploration blocks to BP PlcENI, Apex International, Energean, and United Energy according to a statement from the Petroleum Ministry on Monday, Reuters reported. Eight blocks were awarded in total, with the companies to invest a minimum of $250 million and drill at least 33 exploration wells. 

TotalEnergies shut the gasoline-producing fluidic catalytic cracker (FCC) and small crude distillation unit (CDU)on Saturday at its 225,500 barrel-per-day (bpd) Port Arthur, Texas, refinery, said sources familiar with plant operations, Reuters reported. The 76,000-bpd FCC was shut to repair a leaking heat exchanger, which may take a month to fix, the sources said. The 40,000-bpd ACU2 CDU was shut because the FCC can’t process the gas oil it produces.

CANADIAN INTEGRATEDS

No significant news.                       

U.S. E&PS

Southwestern Energy announced that it has closed the acquisition of GEP Haynesville, LLC. The transaction builds further scale in the Haynesville, deepens the Company’s inventory, improves key financial metrics, including margins, returns and per-share ratios, fortifies SWN’s financial strength and enhances the Company’s leading presence in the two premier natural gas basins in the US.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

PATTERSON-UTI ENERGY, INC. today announced that it has sold to Clearwell Dynamics, LLC the well service rig business and wireline business that it acquired as part of its acquisition of Pioneer Energy Services Corp. The sale transaction was completed on December 31, 2021, and Patterson-UTI received $43 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital.

DRILLERS

No significant news.

REFINERS

According to SEC filingHollyFrontier announced that it now expects crude oil throughput to average approximately 420,000 barrels per day for the fourth quarter of 2021. In the West region, volumes were lower than expected at the Puget Sound Refinery due to unit downtime following the closing of the acquisition of the refinery, the shutdown of the Trans Mountain Pipeline resulting from flooding in British Columbia, which impacted crude availability, and recent severe weather as well as start-up issues at the Navajo Refinery following the plant’s scheduled turnaround. The Mid-Continent region was adversely impacted by economic run cuts and severe weather at the Tulsa Refinery

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

Futures for Wall Street’s major indexes kicked 2022 off with a confidence after marking the second year of recovery from a global pandemic. European shares hit all-time highs on hopes of steady economic recovery despite a surge in COVID-19 cases due to the Omicron variant. Hong Kong stocks slipped as fresh fears about the health of China’s property market weighed on investor sentiment. Against a basket of major currencies, the dollar slipped. In commodities, oil rose, supported by tight supply and hopes of further demand recovery, while gold prices slipped on reduced safe-haven appeal. U.S. manufacturing PMI and construction spending numbers are scheduled for release later in the day.


Nasdaq Advisory Services Energy Team is part of Nasdaq’s Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner. 


This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

Source: Nasdaq

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