Cyprus and Israel are in the process of finalizing a deal to construct a pipeline that will transport natural gas from both countries to Cyprus, where it will be liquefied and exported to Europe and potentially other destinations, according to the Cypriot energy minister on Monday. Minister Giorgos Papanastasiou announced plans for an upcoming visit to Israel to negotiate and formalize the agreement. Once signed, the construction of the pipeline is expected to be completed within 18 months. Additionally, the establishment of a liquefaction plant on Cyprus will require approximately 2 ½ years after securing investors. Significant gas reserves have been discovered thus far, with Cyprus having identified five sizable gas deposits off its southern coastline. Meanwhile, Israel boasts 11 such fields, with the largest, named Leviathan, estimated to contain approximately 22 trillion cubic feet (623 billion cubic meters) of gas. Papanastasiou further expressed his intention to meet with energy companies, including French Total, Italy’s Eni, ExxonMobil, and Chevron, who hold licenses to explore for oil and gas within Cyprus’ exclusive economic zone. The objective of the meeting is to explore collaborative avenues that would facilitate the expedited delivery of their gas discoveries to the market.

On Monday, the United States government gave its approval to a significant oil drilling project in the state of Alaska. The project, known as the “Willow Project,” has been a topic of prolonged debate, and the expected endorsement from President Joe Biden’s administration was highly anticipated.
Managed by ConocoPhillips, a U.S. oil company, the project comes with an estimated price tag of around $8 billion (€7.4 billion). Spanning an area of 930,000 square kilometers within the National Petroleum Reserve, located in Alaska’s North Slope region, the drilling operations are projected to yield up to 180,000 barrels of oil per day. While the project has garnered support from local
politicians and sections of the public, who anticipate job creation of at least 2,500 positions, it has faced significant opposition from environmental organizations and certain Native American groups residing in the region. Critics argue that the drilling activities will jeopardize the delicate balance of the local ecosystem.

Los Angeles extends beyond Hollywood and Malibu. In the lesser-known neighborhoods of the Californian city, film sets and beaches are but a distant dream. Instead, the skyline is dominated by oil wells and underground machinery extracting natural gas. This issue goes beyond mere aesthetics, as citizens have been protesting for decades against the pollution that threatens their health. To tackle the problem, the Los Angeles City Council unanimously passed a resolution on December 4, 2022, imposing a ban on the drilling of new oil and gas wells, with existing ones set to be gradually phased out over the next 20 years. The fossil fuel industry played a significant role in the early development of Los Angeles, benefiting from easily accessible oil reserves and a clear distinction between production zones and residential areas. In 1890, when the city had a population of only 50,000 (now approximately 4 million), some of the most productive oil fields in the United States were discovered. Although many of these fields have since depleted, several still remain in operation.

Eni SPA, has received its first liquefied natural gas (LNG) at its fourth regasification facility. The new facility, located in Piombino, will be able to process up to 176.57 billion cubic feet of gas annually, serving approximately 7% of Italy’s domestic demand. The LNG supply came from Egypt, where Eni has been expanding its presence to help Italy reduce its dependence on Russian energy. Eni started offloading the cargo for the terminal on Friday. The consignment of six million cubic feet (170,000 cubic meters) will be used to test the plant, transporter Snam SPA said in a separate announcement.

On Monday, Norwegian energy firm Equinor, along with its Brazilian partners Petrobras and Repsol, announced their final decision to invest $9 billion in the BM-C-33 offshore basin in Brazil, which contains over 1 billion barrels of oil equivalent reserves. The project consists of three prospects situated in the Campos Basin, which is rich in resources and located beneath a thick layer of salt on the sea floor. These prospects contain over 1 billion barrels of natural gas and a type of oil known as condensate, which is ultra-light. Brazil has been considered by Equinor as one of its key areas of interest, as it is one of the largest oil and gas producers outside of the Organization of the Petroleum Exporting Countries (OPEC).

The S&P 500’s energy sector, which includes oil and gas companies, had been the best performing sector in 2021 and 2022, but has since fallen 5% since the start of the year. This is due to falling crude prices and concerns about a possible economic slowdown, which could threaten the ability of energy companies to maintain high shareholder payouts. Investors are worried about the weak “macro backdrop” and are bracing themselves for a recession. Despite this, the price of US oil settled at $71.34 a barrel on Friday, though it is still down 7% this year.

Shell has announced an impressive profit of $9.6 billion (£7.6 billion) for the first quarter of the year, surpassing expectations despite a drop in energy prices compared to the same period last year.
Fossil fuel companies have been seeing record profits due to a surge in oil and gas prices following Russia’s invasion of Ukraine in 2022. However, these prices have since fallen from the post-invasion peaks. Shell’s CEO, Wael Sawan, credited the company’s “strong results and robust operational performance” despite ongoing volatility. Additionally, Shell has declared its intention to return $4 billion to shareholders by purchasing some of its shares in the next three months. Despite the recent decline in oil prices, Shell’s profits were bolstered by a strong performance in its chemicals and refined products business. BP also reported strong earnings earlier this week for the first quarter of the year, although they were lower than in the same period in 2022.

On May 1, China Petroleum & Chemical Corporation started drilling the Project Deep Earth 1-Yuejin 3-3XC Well (referred to as “the Well”) in Xinjiang Uyghur Autonomous Region’s Tarim Basin. This well is designed to reach a depth of 9,472 meters and will be the deepest oil and gas well in Asia. This marks a significant breakthrough in China’s ultra-deep oil and gas exploration, which is equipped with world-leading technology and equipment capabilities. The Well is situated in Shaya County of Aksu Prefecture, close to the edge of the Taklamakan Desert, and has already completed the stratigraphic sealing of the upper 1,500 meters within only four to five days. The drilling operation, which is being conducted by Sinopec Oilfield Service Corporation, is estimated to reach the carboniferous strata in 21 days, setting a new record in the region.

Norwegian Continental Shelf companies are making plans to increase drilling in the Arctic region of the Barents Sea. The Norwegian government is encouraging this move, hoping to discover more oil and gas reserves to bolster energy security and aid European partners in their energy supply.During a conference in Hammerfest last week, Norway’s Petroleum and Energy Minister Terje Aasland urged oil and gas companies to fulfill their social responsibility and leave no stone unturned in their search for natural gas resources in the Barents Sea. This area is believed to contain most of Norway’s undiscovered oil and gas resources. Aasland emphasized that the petroleum adventure in the north has only just begun and stated that the government will assist the Barents Sea industry. Norway aims to develop its petroleum industry, not liquidate it.

The conference of services has given a positive opinion for the authorization to operate the LNG terminal, and the methane carrier ship, Golar Tundra, is expected to arrive in Piombino on the night between the 4th and 5th of May for the testing phase.
The methane carrier, leased by Eni, which has won the first load for commissioning, i.e., the testing phase that anticipates the start of the commercial phase, carries a load of about 170,000 cubic meters of LNG that will be unloaded in two phases.
The tests will last about twenty days and will serve to test the regasification facilities and onboard systems. After carrying out the first unloading operation, the methane carrier will leave the port of Piombino and then return after about ten days to unload the remaining gas needed to complete the tests.