United States lead global petroleum and natural gas production in 2020

United States lead global petroleum and natural gas production in 2020

MOSCOW (MRC) -- More petroleum and natural gas was produced in the United States than in any other country during 2020 (a trend that began in 2014), despite year-on-year declines from the record-high production in 2019, according to Hydrocarbonprocessing.

US petroleum and natural gas output in 2020 totaled 66.9 quadrillion British thermal units (quads), which was more than both Russia’s 45.5 quads and Saudi Arabia’s 26.5 quads of petroleum and natural gas production.

Petroleum and natural gas production fell in all three countries in 2020 following a rapid decline in demand during the COVID-19 pandemic and the consequent crude oil price declines, particularly in the first quarter of 2020. Saudi Arabia and Russia agreed to reduce their crude oil production as part of an OPEC+ agreement, but in the United States, reduced production was largely the result of a price-induced fall in tight oil investments and, to a lesser extent, unplanned outages.

Petroleum production includes several types of liquid fuels, including crude oil and lease condensate, natural gas plant liquids (NGPL), and bitumen. US petroleum production decreased from 31.8 quads in 2019 to 30.4 quads in 2020. Crude oil and condensate accounted for the largest share of the decrease, at 1.9 quads. In contrast, NGPL production in 2020 grew by 0.4 quads, boosted by an increase in domestic ethane consumption and in ethane exports.

COVID-19-driven decreases in demand affected natural gas production far less. In Russia, natural gas production fell in response to milder-than-normal temperatures during the 2020–2021 winter and to increases in renewable electricity generation in the EU. Natural gas production in Russia fell by 2.1 quads, nearly equal to its decline of 2.3 quads in oil production.

As MRC wrote previously, US crude oil production is expected to fall by 290,000 barrels per day (bpd) in 2021 to 11.02 million bpd, the US Energy Information Administration (EIA) said in May, 2021, a steeper decline than its previous forecast for a drop of 270,000 bpd. US oil producers have been gradually increasing drilling activity as oil prices have rebounded but output growth has been muted as investors pressure companies to rein in spending and focus on returns. In 2022, output is expected to rise by 820,000 bpd to 11.84 million bpd, unchanged from the EIA's estimate in April.

We remind that in May, 2021, Marathon Petroleum Corp, the largest US refiner, said its board had approved the conversion of the Martinez refinery in California to a renewable diesel plant. Besides, the company made a final investment decision regarding this project. Martinez, once complete, will be one of the largest renewables facilities in the country.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

LyondellBasell investigates cause of chemical leak at its site in La Porte

LyondellBasell investigates cause of chemical leak at its site in La Porte

MOSCOW (MRC) -- An All Clear alarm sounded Wednesday after last night's deadly chemical leak at the LyondellBasell facility in La Porte. Now that the situation is officially under control, the company says site personnel can investigate the cause of the leak, according to local media outlet KHOU-11.

Officials said the incident left two contractor workers dead and put six others, including five contractors and an employee, in the hospital with burns.

LyondellBasell said Wednesday at least 30 people were injured; a majority of them have been hospitalized after breathing in toxins.

Emergency crews responded to the facility around 7:30 p.m. Tuesday at 1515 Miller Cut-Off Road. They said the leak happened in the acetyls unit of the plant.

The Harris County Fire Marshal's Office said there was a small chemical release that was contained just to the plant. They said the chemicals involved were used to make medical supplies and food-grade vinegar.

The Texas Commission of Environmental Quality described the chemical as a mixture of catalyst, acetic acid, methyl iodide, and hydrogen iodide. LyondellBasell said up to 100,000 pounds of acid was released during the incident.

La Porte Office of Emergency Management confirmed the leak was contained to the facility, and there is no threat to the surrounding public.

Harris County Pollution Control is at the scene conducting air monitoring. They said the leak has been isolated, and air monitoring at the facility perimeter indicates no offsite impact.

They also said there is no active shelter-in-place order. HCFMO determined there was no explosion nor fire, so the investigation has been turned over to Harris County Pct. 8 Constable.

LyondellBasell released the following statement Wednesday on the deadly incident: "The LyondellBasell La Porte Complex gave the ‘all clear’ for the incident involving its acetyls unit leak. Our response team acted quickly to isolate and contain the leak. Approximately 100,000 pounds of a mixture which includes acetic acid was released. Cleanup is continuing at this time. Air monitoring conducted during the incident did not indicate actionable levels and monitoring is ongoing. The Occupational Safety and Health Administration, Texas Commission on Environmental Quality, the Environmental Protection Agency, and the Chemical Safety Board were all notified of the incident. A thorough investigation into the cause of the incident is underway, and we are cooperating fully with authorities."

The complex produces 544,000 tonnes/year of acetic acid and 385,000 tonnes/year of vinyl acetate monomer (VAM).

As MRC informed earlier, LyondellBassel's La Porte, Texas, cracker was heard to be offline again after a short-lived restart, reported S&P Global with reference to sources familiar with operations' statement on July 23. The cracker had been confirmed as back online July 20, but, according to one market source, it was shut again not long after.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

COVID-19 - News digest as of 28.07.2021

1.Finnish Neste forecasts lower sales and profit for Q3 on higher feedstock, oil prices

MOSCOW (MRC) -- Finnish energy company Neste warned of a drop in sales and profit for the third quarter as it deals with higher feedstock and crude oil prices as well as planned refinery maintenance, sending its shares down more than 5%, reported Reuters. Major sources of biofuel feedstock such as waste and residue have seen a steady increase in prices, given the growing emphasis on renewable energy globally. A rise in crude oil prices due to production cuts by the OPEC+ countries and recovering demand driven by the vaccine rollouts is also expected to weigh on its refining business. The company, however, reported a rise in second-quarter operating profit, which rose to EUR463 million (USD546.2 million) from EUR208 million a year ago on gains in inventory valuations.


MRC

Chemical leak kills 2, injures 6 at LyondellBasell Texas plant

Chemical leak kills 2, injures 6 at LyondellBasell Texas plant

MOSCOW (MRC) -- At least two people are dead and six others are injured after a chemical leak at LyondellBasell's Texas facility on Tuesday, reported FoxNews with reference to officials' statement.

Emergency officials responded to a "mass casualty" incident at the LyondellBasell complex in La Porte, just after 7:30 p.m., according to the Harris County Fire Marshal.

LyondellBasell said in a statement that its complex experienced an acetic acid leak, which occurred within its acetyls unit area that had been shut down earlier in the day for planned maintenance.

"The leak is stopped and clean-up is in progress," LyondellBasell said. "Air monitoring continues to demonstrate no levels of concern for the community. All appropriate regulatory agencies have been notified."

LyondellBasell said two contractors were killed. Among the injured were five contractors and a LyondellBasell employee, who were transported to local hospitals for treatment, the chemical industry company said.

An investigation is underway into the cause of this incident, the company stated.

As MRC informed earlier, LyondellBassel's La Porte, Texas, cracker was heard to be offline again after a short-lived restart, reported S&P Global with reference to sources familiar with operations' statement on July 23. The cracker had been confirmed as back online July 20, but, according to one market source, it was shut again not long after.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

ExxonMobil adds first woman top-tier executive with external CFO hire

ExxonMobil adds first woman top-tier executive with external CFO hire

MOSCOW (MRC) -- ExxonMobil Corp's new chief financial officer Kathyrn Mikells is the first woman and external hire to join the oil major's management committee, as energy firms search to diversify their workforce in response to investor pressure, according to Hydrocarbonprocessing.

Exxon has faced pressure from investors to shake up its leadership in the executive suite and its board of directors after years of poor returns and as other global oil majors invest more heavily in the energy transition.

Mikells is the first woman and first external hire to enter Exxon's uppermost echelon. Up until now, its cadre of senior vice presidents has remained dominantly male and internally sourced, with all four members of the current management committee having spent two decades or more with the company, according to its website.

"We welcome Kathy to Exxon Mobil and look forward to the perspective and experience she brings as we work together to deliver on our strategies and increase shareholder value," Chief Executive Darren Woods said in Monday's release.

Mikells is Exxon's first major hire since outside investors led a board shakeup earlier this year. In that move, activist investor Engine No. 1 claimed several board seats, including one for former Andeavor CEO Greg Goff, known for restructuring companies. Exxon declined to comment further on its diversity strategy for its executive committee.

In the past decade, more women have risen to top ranks of the energy industry: Lynn Good serves as CEO of utility Duke Energy Corp, Vicki Hollub became CEO of Occidental Petroleum in 2016 and Chevron's former CFO Pat Yarrington was one of the first women in the top tier of a publicly-traded major oil company, serving as CFO from 2009 until her retirement in 2019.

Mikells, who joins effective Aug. 9, will replace Andrew Swiger, the company's principal financial officer, who joined Exxon in 1978 and is now at retirement age, the company said in a statement.

Mikells previously worked at spirit distributer Diageo Plc and United Airlines, where she was responsible for the airline's fuel hedging strategy, and also served as assistant restructuring officer.

While Exxon has female leaders, the top tier management committee, comprised of the CEO and three to four senior vice presidents has remained all-male according to a Reuters' review of SEC filings dating to 2001. The company's preference for promoting from the inside was chronicled in Steve Coll's 2013 book, describing the company's 20,000-square foot (1,900-square meters) executive wing as the "God Pod."

As MRC reported earlier, ExxonMobil and SABIC have just announced that their joint venture, Gulf Coast Growth Ventures located near Corpus Christi, Texas, has reached mechanical completion of a monoethylene glycol (MEG) unit and two polyethylene (PE) units. Project startup is expected to begin ahead of schedule, likely in the fourth quarter of 2021.

MEG is commonly used in the manufacturing of polyesters and automotive coolants, and as a building block to create various forms of high-performance plastics. PE is commonly used in protective film, packaging and bottles and containers that prolong the shelf-life of food and medicines, as well as in various automotive parts that improve fuel efficiency and performance, and in medical applications.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC