Oil Demand Growth is Dead

The world is past the era of growing crude oil demand, BP said in its annual energy outlook report, which was released today. The message of the outlook, according to media reports, is that oil consumption may never recover to pre-pandemic levels, and not just because of the pandemic itself but because of factors that have been at play long before the coronavirus made the jump from bats to humans. “Demand for oil falls over the next 30 years,” the company said in the report. “The scale and pace of this…

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Renewable Energy Continues To Eat Away At Fossil Fuel Dominance

Renewables are set to be the fastest-growing source of energy in the coming decades, giving fossil fuels such as coal and oil a run for their money in many parts of the world.  Sure, the world will continue to need oil, coal, and natural gas in the future, because energy systems cannot and will not switch to 100-percent low-carbon energy sources any time soon.   Recent data and analyses suggest, however, that renewable energy sources such as solar and wind power and increased penetration of electric vehicles (EVs) are becoming increasingly competitive…

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OPEC Cuts Oil Demand Forecast For 2020, Again

OPEC revised down by another 400,000 bpd its forecast for global oil demand this year, expecting consumption to shrink by 9.5 million bpd over 2019, cutting forecasts for the second month in a row as risks with the pandemic and economic activity remains skewed to the downside.   In its Monthly Oil Market Report (MOMR) published on Monday, OPEC said that it expects global oil demand to average 90.2 million bpd this year, down by 9.5 million bpd compared to 2019. In last month’s report, OPEC expected the world’s oil demand to drop…

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GoP to facilitate Foreign Investors: Abdul Hafeez Sheikh

KARACHI: Advisor to PM on Finance Dr Abdul Hafeez Sheikh had an interactive session with foreign investors at OICCI on September 12th, during which he gave a comprehensive overview of the challenges faced by the economy in the past two years and how the GOP has successfully managed to stabilize the economy which is now on a recovery path. Dr Hafeez Shaikh added that the growth trend in some industries like cement, automobile and fertilizer and rapid growth noticed at PSX are very encouraging and should give confidence to investors. The…

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Saudi Aramco Retakes Crown From Apple As World’s Most Valuable Company

Saudi Arabia’s oil giant Aramco reclaimed the spot of the world’s most valuable company after a relatively steady performance in Riyadh so far this month, while shares in Apple plunged amid a wider sell-off in tech stocks in New York. According to estimates from Bloomberg, Aramco – which became the world’s largest listed firm by market capitalization with its listing in December 2019 – has regained the top spot that Apple has held since July 2020 when U.S. equities and tech stocks in particular rallied on U.S. economic stimulus. At…

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Karak to get Rs12bn royalty funds in next five years: MNA

KARAK: The ruling Pakistan Tehreek-i-Insaf MNA Shahid Khattak has claimed that Rs12 billion oil and gas royalty funds would be spent on development projects in the Karak district in the next five years, including Rs1.3 billion during the current financial year. Talking to mediapersons here the other day, he said a high-level meeting held a few days ago chaired by provincial finance minister Taimor Saleem Jhagra had decided to utilise royalty funds on development of Kohat division. He claimed that oil and gas royalty funds would be spent with the…

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PPL in FY20

The biggest challenge for the exploration and production sector in 2020 has been very weak oil prices – down almost 25 percent in FY20 year-on-year. In addition, falling oil and gas production volumes amid depleting resources have been a key concern for the domestic E&P sector. And hence market expectations for PPL’s performance in FY20 had been tainted by weak market dynamics. Against the backdrop, there is some good news and not-so-good news for Pakistan Petroleum Limited (PSX: PPL) than what had been anticipated. PPL’s financial performance has been affected…

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The End of Oil is Near, or Maybe Not

The cover of the September/October 2020 issue of Sierra magazine states “The End of Oil is Near”.  The corresponding story “The End of Oil?” was paralleled with a recent segment on Democracy Now.  I think that is wishful thinking.  To the extent that oil demand goes down in the future, it will go down because people can’t afford oil distillates at the price producers need to produce the corresponding oil. The “The End of Oil?” article describes weak oil demand in recent years although it should be stated that global oil…

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Balochistan amends mineral laws to transform state-run entities

QUETTA – The Balochistan government has brought changes in mineral laws to transform state-run minerals companies into vibrant and profitable entities, according to a senior officer of the Mines and Minerals Department. The move is meant to clear the path for the Balochistan Minerals Exploration Company (BMEC) and Balochistan Minerals Resource Company Limited (BMRL) to take mining lease in the province. After the amendment, it would provide legal cover to both the companies, the officer told APP. The initiative would lead to increase revenue generation in the province, he further…

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Current Market Factors Impacting Economic Performance Of Oil And Gas Investments

We have seen oil prices go up and down, up and down over the 100 years my family has been in the oil business. My great grandfather, AP Young, worked the West Texas oilfields until his work boots were sloshing because of all the sweat. Some years, he would sit under a tree and hope someone on the rig got hurt so he could replace them, so he could feed his twelve kids. With the hangover of the COVID-19 pandemic decreasing the need for oil, our daily consumption to fulfill…

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