It was a week when oil and natural gas prices stabilized.

Italian energy giant Eni E has entered into a nationwide electric vehicle (“EV”) charging agreement, while European peers Royal Dutch Shell plc (RDS.A) signed a gas production agreement with Oman. News related to BP plc BP, Helmerich and Payne HP and Delek United States Holdings DK also made headlines.

Overall, it has been a good seven days for the industry. West Texas Intermediate (WTI) crude futures gained 4.3% to close at $ 73.79 a barrel, while natural gas prices rose 1.1% to close at $ 3.7310 per million British thermal units (MMBtu). In fact, the oil and natural gas markets reversed their decline from the previous week.

Going back to the shortened holiday week ended on December 24, the positive price movement could be attributed to an Energy Information Administration (“EIA”) report which showed a significant drop in crude supplies. The easing of concerns about the potential drop in demand related to the Omicron also boosted the product.

Natural gas also recorded a weekly gain, supported by weather forecasts, indicating episodes of cold temperatures over most of the country in the coming days.

Recap of the most important stories of the week

1. Rome-based energy giant Eni has entered into an agreement with power company Enel to allow electric vehicle drivers to charge their vehicles across Italy through their infrastructure networks.

Be Charge, recently acquired by Eni, and Enel X, Enel’s energy electronic services unit, operate primary EV charging networks in Italy, with around 20,000 charging points. The interoperability of EV charging infrastructure is crucial to accelerate the transition to electric mobility in the country. Under the terms of the agreement, customers will be able to access the service from their smartphone via the Enel X, BeCharge and Eni applications.

Enel X and Be Charge intend to spread electric mobility by installing high-power chargers that allow an ultra-fast, simple and reliable charging experience. In recent years, Enel X has developed an extensive charging network, which covers the entire Italian peninsula. It allows people to drive electric cars effortlessly. With the latest agreement, Enel X is working closely with partners to make the transition to electric power more convenient and cost effective. (Eni signs an agreement with Enel for the charging of electric vehicles in Italy)

2. Royal Dutch Shell subsidiary, Shell Integrated Gas Oman BV, and its partners have agreed to develop and produce natural gas from Block 10 of the Saih Rawl gas field under a concession agreement with Oman . A separate gas sales contract for gas produced from the block has also been signed by the parties.

According to the concession agreement, Zacks Rank # 3 (Hold) Shell operates Block 10 with a working interest of 53.45%, while OQ and Marsa Liquefied Natural Gas LLC hold 13.36% and 33.19% respectively. shares. According to Oman’s Energy Ministry, the block is expected to produce 0.5 billion cubic feet of gas per day (bscf / d). Production should start within a few years.

You can see The full list of today’s Zacks # 1 Rank stocks here.

Over the past decades, Shell has remained a partner in Oman’s growth and success. Europe’s largest energy company is active in the country’s oil and gas industry, with joint ventures and independent activities ranging from research and development, exploration and production to trade, retail and engineering. alternative energies. (Shell Ins Gas Deal with Oman for block 10, Saih Rawl)

3 The Norwegian joint venture of British energy giant BP plc, Aker BP, has announced its intention to acquire the oil and gas activities of Lundin Energy with the aim of creating a combined exploration and production (E&P) company.

The companies intend to form the largest publicly traded E&P company focused on the Norwegian Continental Shelf. The transaction involves cash consideration of $ 2.22 billion and approximately 272 million new shares assumed by Aker BP.

The combined entity will have an exceptional asset base, industry-leading operating costs and a reduced carbon footprint with increased and sustainable dividends. The company will produce more than 400,000 barrels of oil per day. In addition, the merged company would have a resource base of 2.7 billion barrels of oil equivalent with significant development prospects.

4. Helmerich & Payne recently announced that the Platform Activation Master Agreement with ADNOC Drilling Company has been finalized.

The framework agreement will allow Helmerich & Payne to extend its drilling and mining experience outside of the United States. This will help ADNOC Drilling improve the performance of its onshore platforms and support the company’s ambitious development and expansion goals. In addition, the agreement, which focuses on improving drilling efficiency and achieving operational savings, extends the asset purchase agreement and the cornerstone agreement of the IPO announced on September 8, 2021. It also strengthens ADNOC Drilling’s strategic collaboration with HP.

Helmerich & Payne’s fundamental $ 100 million investment in ADNOC Drilling’s IPO has helped its plan for global expansion by allowing it to commit additional liquidity outside of the United States. This demonstrates the confidence of the contract drilling supplier in what the two companies can accomplish together. (Helmerich & Payne Inks Rig Enablement Framework with ADNOC)

5. Delek US Holdings recently announced that it will sell up to 434,590 units of joint sponsors in its logistics partnership over the next three months in open market transactions. The initiative aims to monetize a portion of Delek’s current 80% stake in the entity and present the actual value of this stake which is not currently reflected in DK’s share price.

The independent refiner, transporter and distributor of petroleum products has established the logistics unit (Delek Logistics Partners), based in Brentwood, TN, to own, operate, acquire and build logistics and marketing assets for crude oil and refined products.

Going forward, Delek US Holdings will explore methods to monetize the additional units, with an emphasis on preserving the unitholders of the partnership and the remaining share of ownership. (Delek will partially sell the units of Delek Logistics Partners)

Price return

The following table shows the price development of some major oil and gas players over the past week and over the past six months.

Company Last week Last 6 months

XOM + 1.6% -1.5%
CVX + 2.5% + 14.3%
COP + 3.8% + 23.8%
OXY + 2.9% -5.8%
SLB + 2.1% -5.6%
RIG + 4.8% -34%
VLO + 4.4% -3.2%
CPM + 0.9% + 7.1%

The SPDR Energy Select Sector – a popular way to track energy companies – rose 2.3% last week. But in the past six months, the sector tracker has risen 5.4%.

What’s next in the energy world?

As the outlook for global oil consumption strengthens amid tightening fundamentals, market participants will be watching the regular releases closely to watch for signs that could further validate the bullish momentum. Against this backdrop, US government statistics on oil and natural gas – one of the few solid indicators that come out regularly – will be on the radar of energy traders. Oil service firm Baker Hughes’ rig count data, which indicates trends in US crude production, is being closely monitored. News related to the approval / deployment / distribution of the coronavirus vaccine will be of the utmost importance. Finally, investors will keep an eye out for potential demand for the Omicron variant.

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