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Global Oil Supply Surplus & Outlook For 2020

The oil market saw a fairly notable surplus in the first half of 2019, a much larger increase than initially expected. Looking ahead, supplies are scheduled to contract in the final half of the year; however, it could only be a hiatus before the oversupply returns.

Global oil supply surpassed demand by about 0.9 million barrels per day (BPD) in the first six months of 2019, as reported by the International Energy Agency (IEA).  “This surplus adds to the huge stock builds seen in the second half of 2018 when oil production surged just as demand growth started to falter,” said the IEA said. “Market tightness is not an issue for the time being and any re-balancing seems to have moved further into the future.”

The continuation of the OPEC+ cuts through March of 2020 eliminates a major conjecture, but the IEA said it “does not change the fundamental outlook of an oversupplied market.”

Amid talks of a temporary supply deficit, one company who has continuously prevailed throughout this volatile market is Camber Energy, Inc. (CEI).

One of the most searched stock tickers in July, CEI is a company focused on crude oil and natural gas development in the United States. The company currently holds nearly 15,000 net drilling acres within the United States alone and has recently acquired Lineal Star Holdings for its midstream and downstream pipeline integrity services.

Today we’re highlighting: Camber Energy, Inc. (NYSE American: CEI), Marathon Petroleum Corporation (NYSE: MPC), Equinor ASA (NYSE: EQNR), Royal Dutch Shell plc (NYSE: RDS-A), PTT Public Company Limited (OTCPINK: PCHUY).

Camber Energy, Inc. (NYSE: CEI), (Market Cap: $7.326M; Share Price: $3.39), Camber announced on July 9th they closed the previously announced acquisition of Lineal Star Holdings, LLC (“Lineal”) www.LinealStar.com. The acquisition was completed in an all-stock transaction, by the entry into an Agreement and Plan of Merger for its midstream and downstream pipeline integrity services, making them a favorable investment option in terms of production quality, volume, and sustainability.

 

Marathon Petroleum Corporation (NYSE: MPC), (Market Cap: $36.598B; Share Price: $55.23), Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Retail, and Midstream. The Refining & Marketing segment refines crude oil and other feed stocks at its 16 refineries in the West Coast, Gulf Coast, and Mid-Continent regions of the United States; and purchases refined products and ethanol for resale.

 

Equinor ASA (NYSE: EQNR), (Market Cap: $64.855B; Share Price: $19.32), Equinor ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production Brazil; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions.

The company announced on July 16th that production on the Trestakk oil and gas field on Haltenbanken in the Norwegian sea has started. The Trestakk oil field has estimated recoverable resources of 76 million barrels of oil.

 

Royal Dutch Shell plc (NYSE: RDS-A), (Market Cap: $259.614B; Share Price: $63.71), Royal Dutch Shell plc operates as an energy and petrochemical company worldwide. The company operates through Integrated Gas, Upstream, and Downstream segments. It explores for, and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity, carbon-emission rights; and markets and sells liquefied natural gas as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines crude oil and other feed stocks, such as gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen, and sulphur; produces and sells petrochemicals; and manages oil sands activities.

 

PTT Public Company Limited (OTCPINK: PCHUY), (Market Cap: $8.783B; Share Price: $9.74), PTT Public Company Limited engages in upstream and downstream petroleum, coal, electricity, and infrastructure businesses in Thailand and internationally. The company is involved in natural gas supply, procurement, wholesale and retail gas sales, and gas-related value-added businesses; and the distribution of onshore and offshore gas through transmission pipeline to power generators, gas separation plants, NGV stations, and industrial plants. It also procures, imports, and exports crude oil; condensate; liquefied petroleum gas (LPG); petroleum and petrochemical products; solvents and chemicals; and palm products, such as crude palm oil, refined palm oil, and palm kernel shells. In addition, the company engages in the provision of engineering, real estate, digital, and technology services; exploration and production of petroleum; petrochemical and refining, and coal mining activities; and distribution of liquid fuels, lubricating oils, and non-oil products to consumers through service stations, as well as to aviation group, ocean liners, and industries. Further, it produces electricity, steam, and demineralized water for industrial users; and provides marine terminal and tank, resource management, engineering technical consultancy, and ICT services, as well as office spaces.

 

The conclusions echo those of OPEC itself, which said in its report published a day earlier that the “call on OPEC” will be significantly lower next year. Growing U.S. shale production will exceed additional demand through 2020, which means that the market could see a significant surplus in months to come.

In other words, OPEC faces the puzzling question of whether they should keep its current production cut deal intact, or cut even deeper to avoid supply glut.

 

Legal Disclaimer:

This article was written by Regal Consulting, LLC (“Regal Consulting”).  Regal Consulting has agreed to a six-month term consulting agreement with CEI dated 11/15/18.  The agreement calls for $28,000 in cash, and 200,000 restricted 144 shares of CEI per month. All payments were made directly by Camber Energy, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of.  Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article.  Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice.  This article is based on public information and the opinions of Regal Consulting. CEI was given an opportunity to edit this article. This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein.  Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice. 

 

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