Natural Gas Daily: August 5th, 2020
BP outlined on August 4 its strategy for becoming a net-zero emissions company by 2050, providing investors with some clarity on the its direction at a time when the oil industry faces unprecedented uncertainty.
- BP has gone further than any of the other majors in committing to transformation in the face of the energy transition.
- Among the firm's key targets are a 40% reduction in its oil and gas production over the next decade. None of the other majors have targeted such a steep reduction in oil and gas activity.
Australia's National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) has approved Shell's plan to develop the Crux gas field off Western Australia's north coast, the regulator said on August 4.
- Shell wants to use Crux as a source of backfill gas supply for its 3.6mn mt/yr Prelude LNG export project, brought on stream last year.
Japanese shipping company Kawasaki Kisen Kaisha’s (K-Line) energy transport business generated an ordinary income of yen 1.6bn ($15mn) during the three months to June 30 (Q1), down 11% yr/yr, it said in a statement.
- While the company's LNG carrier and tanker businesses are delivering stable profits, its offshore energy E&P support business is worsening.
UK transmission operator National Grid said that it had teamed up with north England gas distributor Northern Gas Networks and Belgium's Fluxys to build a facility for testing how hydrogen can be used to heat homes.
- The European heating system largely relies on natural gas at the moment.
The UK has pledged to become a net zero economy by 2050. The government recently committed around £350 ($397)mn to cut emissions and drive economic recovery from coronavirus.
US senior producer Devon Energy said August 4 it had a net loss of $670mn in Q2 2020, down from Q2 2019 earnings of $495mn but an improvement over the $1.8bn loss it reported in the first quarter this year.
- In a separate announcement, Devon said it was accelerating the sale of its Barnett shale assets in Texas, moving the anticipated close of the transaction up to October 1 from December 31.
Colombia's state oil firm Ecopetrol posted a 99% year-on-year decline in net profits in the second quarter to pesos 25bn ($6.6mn), it reported on August 4, while core earnings (Ebitda) slumped 76% to pesos 2 trillion.
Ecopetrol's results were notably stronger than its Latin American counterparts Petroleos Mexicanos and Brazil's Petrobras, however, which swung to net losses of $1.9bn and $525mn respectively in the quarter.
- The company was supported by a 7.7% growth in domestic gas sales.