Domestic Oil And Gas Production

The need to reduce methane emissions from leaky valves, pipelines and compressor stations is giving rise to a new commercial industry made up of companies that specialize in methane emissions detection technology. “The industry has already seen an uptick in interest for its products and services, driven in part by the installation of oil and gas transmission equipment as well as state regulations targeting methane, a short-lived but potent greenhouse gas believed to be 28 to 34 times more powerful than carbon dioxide at warming the atmosphere. Earlier this year, Colorado became the first state to impose methane mandates on the oil and gas industry, with requirements for them to routinely search out leaks and seal them promptly.” [Fuel Fix]

Evidence is mounting that western sanctions against Russia’s oil industry are having an impact. Several major oil companies and oil service providers have recently scaled back or ceased operations, with Shell being the latest. “Alexander Dyukov, chief executive of Gazprom Neft, the oil division of state gas giant Gazprom, announced the move on Friday. ‘They [Shell] have stopped working on this joint venture, but we are continuing to work by ourselves,’ he said in comments carried by Russian newswires.” [Financial Times]

Many analysts are in agreement that Saudi Arabia’s move to reduce “official selling prices” for its oil indicate a price war is brewing among Opec members. Instead of cutting overall production to reduce global supply and drive up prices, the Saudis have dropped the price they charge their customers in an apparent grab for additional market share. “There is no indication whatsoever that the Saudis are going to put a floor into this market,” Seth Kleinman, head of European energy research at Citigroup in London, said by e-mail. “Saudi market share in Asia is really under assault. It is a price war. The Saudis will win, but it won’t be painless.” [Bloomberg]