A historic week for the big oil companies –

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A historic week for the big oil companies – fr


It was a historic week for the oil industry, potentially marking a turning point, at least for the corporate strategies of the oil majors. More restrictions on the supply side add bullish sentiment to the market, although the impacts on fundamentals may not be evident in the short term. But in the wake of the massive blows to the oil majors this week, more than a few analysts have raised the likelihood of a tight supply in the years to come. Stocks of crude Refiner Imports Gasoline Shell perd au tribunal. Royal Dutch Shell (NYSE : RDS.A) lost a landmark legal case in a Dutch court, which, if upheld, will require a 45% reduction in GHG emissions by 2030. The case is seen as a warning sign for the rest of the world oil industry, reporting legal exposure to Scope 3 emissions (those burned by end users). Further emissions-related disputes are likely.

Exxon loses the vote of the board of directors. The No.1 engine won votes for two if its candidates ExxonMobil (NYSE : XOM). The victory is seen as a shocking and powerful statement by shareholders about their displeasure with the oil giant for not doing enough to mitigate the effects of its activities on the climate. And for Exxon, that could mean big changes are coming.

A court ruling could reduce Shell. Court ruling ordering Shell to speed up its plans to cut greenhouse gas emissions could lead to a 12% drop in the company’s energy production, including a sharp drop in oil and gas sales , according to Reuters.

Exxon must cut production, says No.1 engine. Engine # 1 said that ExxonMobil (NYSE: XOM) must reduce oil production. “They have to position themselves to be successful,” Charlie Penner, No.1 Engine, told the FT. “You would certainly think that would mean a decrease in oil and gas production in the future. Hedge fund founder Chris James added, “Watching that meeting yesterday was a perfect example of how they don’t realize the world has changed. Everything was exposed.

Chevron shareholders vote for Scope 3. Chevron (NYSE : CVX) also lost a notable shareholder vote, with a measure requiring a Scope 3 emissions reduction target passed by more than 60% of shareholders, another major gripe against the oil industry.

Oil rises after board fights. Oil prices rose early Friday for a sixth straight day and were on track for weekly and monthly gains after the climate policy defeats major oil companies have suffered at the hands of shareholders and judges. Related: OPEC + Set to Continue Plans to Increase July Oil Production

Total to see investor pressure. In the wake of the series of losses suffered by Exxon, Chevron and Shell, the French group Total (NYSE: TOT) is increasingly watched by investors for its business strategy.

Biden defends Alaska oil project. President Biden’s administration backed the Willow oil project in Alaska in a new Justice Department case.

Commodity boom driven by speculation. Bloomberg analysis argues that the dramatic rise in commodity prices in recent months is not the result of greater demand than supply, but primarily the result of increased risk appetite – that is, that is, speculative financial flows towards commodities.

Tellurian signs 10-year contract with Gunvor. In a major achievement towards a new LNG project, Tellurien (NASDAQ : TELL) signed a 10-year agreement for 3 million tonnes per year of LNG with Guvnor, linked to JKM and TTF prices. The deal could bolster a push towards an FID on the Driftwood LNG project on the US Gulf Coast.

Heat to test the American network. The risk of grid outages in several parts of the United States is increasing this summer, with 40% of the American population now living in at-risk areas, according to the North American Electric Reliability Corporation. This is the first time that NERC has included parts of New England and the Midwest in this threat assessment.

Moody’s: Credit risks increase for Big Oil. This week’s climate-related actions in boardrooms and courtrooms involving some of the biggest international oil companies signal a growing threat to the sector, Moody’s Investor Service said in an industry commentary. “A new court ruling against Royal Dutch Shell and the votes of ExxonMobil and Chevron shareholders highlights the growing credit risk for major oil producers due to concerns about climate change,” Moody’s said.

Will the oil region become a hydrogen hub? The biggest oil producers in the Arabian Gulf have jumped on the hydrogen bandwagon – especially its so-called green variety produced from the electrolysis of water using solar or wind electricity – so that it is growing with governments and the world’s largest international oil companies. Related: Attempts To Regulate Bitcoin Emissions Are Useless

China bans banks from selling commodity-related products to retail buyers. China’s banking regulator has asked lenders to stop selling investment products linked to commodity futures to retail investors, according to Reuters. The move comes after the surge in commodity prices shed light on speculative flows.

The United States says the sanctions on Nord Stream 2 are “counterproductive”. The Biden administration has stuck to its new stance on abstaining from sanctions against companies working on Nord Stream 2, citing the risk of severing ties with European allies.

Biden unveils Pacific offshore wind surge. The Biden administration announced its decision to open blocks off California for wind development. The deep waters made development more difficult, as well as opposition from the US military.

DHS to propose regulations for pipelines. The US Department of Homeland Security is preparing cybersecurity regulations for oil and gas pipelines, a move that could boost security in the wake of the colonial blackout.

By Josh Owens for Oil Octobers

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