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Tuesday, May 24, 2022

It's A Wash -- Globally -- May 24, 2022

Kashagan oil field is tracked here and linked at the sidebar at the right.

Headline today: oil production halves at Kazakhstan's giant Kashagan field.

  • routine maintenance, if anything in Kazakhstan is routine;
    • start date: May 19, 2022
    • end date: August 3, 2022
  • OPEC+ quota:
    • 1.638 million bpd (May, 2022)
    • 1.85 million bpd (June, 2022)
  • actual production:
    • cut in half since early May (due to maintenance)
    • production will stop completely in June due to maintenance
  • I don't know what Kashagan was actually producing prior to May, but let's say it was about 1.5 million bpd
  • so, globally:
    • Kazakhstan's daily production dropping about 1.5 million bpd; and,
    • Biden's release from the US SPR: 1 million bpd.
      • Net: - 0.5 million bpd

I often make simple arithmetic errors, but I'm pretty sure 1.0 minus 1.5 is close to a minus 0.5.

Again, that SPR release was very prescient, very timely, very fortunate. 

Speaking of the SPR release, the "next" part of that 180 million-bbl release over six months was announced today:

  • again, this is a sale, not a "swap" which is the usual nature of things with regard to the SPR
  • specifics:
  • 39 million sour bbls
  • 1.1 million sweet bbls
  • total: 40.1 millioon bbls
  • delivery period for the sweet oil: June 21, 2022 - June 30, 2022
  • delivery period for the sour oil: July 1, 2022 - August 15, 2022 (slightly less than 1 million bopd)

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

WTI: pretty much unchanged.

2 comments:

  1. That oil field is a money pit due to the H2S that corrodes pipes. Reading that cost for pipe is 10x or more to handle that crude.

    ReplyDelete
    Replies
    1. You are so correct. Have you ever heard of an entire field shutting down for maintenance? This is all about replacing pipelines.

      Delete

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