1. US Oil Production Flatlines as Shale Drilling Falters
- US unconventional crude supply is expected to remain flat in February for the third straight month, declining by a mere 2,000 b/d to 9.68 million b/d as the country’s rig count is still yet to see a rebound.
- The EIA expected bigger month-on-month declines in 2024, but productivity gains in the Permian, Appalachia, and Haynesville have surprised to the upside.
- The Permian Basin remains the only major play to see its production increase, improving marginally to 5.974 million b/d next month, though oil producers are still yet to assess the damage wreaked by the cold snap on US upstream sites.
- North Dakota oil production dropped by as much as 700,000 b/d this week, whilst the US Gulf Coast’s refining capacity took a 15% drop with some 1.5 million b/d going offline.
2. Does the EU have too much LNG import capacity?
- Following Russia’s invasion of Ukraine two years ago, European countries have set out to boost their LNG import capacity, however soon they might be facing the risk of redundant infrastructure.
- EU members have swiftly constructed six LNG terminals in addition to the 20 regasification facilities already in place, boosting the continent’s import capacity by 36.5 bcm, with another 19 LNG terminals planned by 2030.
- Should these plans materialize, the EU’s import capacity would balloon to 350 bcm by the end of the…