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Oil patch insider: OPEC+ to hold quotas; Bloomberg cmt. says higher oil prices by 2030
Kay Cashman Petroleum News
According to a Nov. 30 Reuters report picked up by Larry Persily on Dec. 1, OPEC+ countries agreed in a Nov. 30 meeting to maintain group-wide oil output quotas for the start of 2026, as well as agreed on a mechanism to assess members' maximum oil production capacity, OPEC said in a statement.
In a separate meeting on Nov. 30, eight OPEC+ countries agreed in principle to pause their output hikes for the first quarter of 2026, an OPEC+ source and a person familiar with the talks told Reuters.
Higher oil prices by 2030 In his Dec. 1 oil and gas news, Larry Persily picked up a Nov. 25 Bloomberg commentary saying "The oil market has always been wrong about long-term prices. Unsurprisingly, it's currently wrong in anticipating that a barrel will cost around $60 by 2030, close to current levels. Barring an economic cataclysm, oil will be more expensive five years from now. Let me reaffirm that I remain short-term bearish, particularly for the first half of 2026. Unless OPEC+ cuts production significantly, and quite soon, prices will weaken further in the next few months," per the Bloomberg commentary.
"Let's start with demand. Despite constant nonsensical talk about the world shifting away from fossil fuels, oil consumption growth remains healthy."
"By 2028, annual supply growth is likely to be trailing annual demand growth, requiring more OPEC+ crude. When that happens, oil prices would move higher to encourage increased investment."
Some ConocoPhillips workers want North Slope union representation On Dec. 1 Liz Ruskin with Alaska Public Media reported that a "union organization campaign is underway among ConocoPhillips workers on the North Slope.
If it's successful, the United Steelworkers would represent 243 electricians, mechanics and others at three fields -- Alpine, Kuparuk and Willow.
ConocoPhillips announced it was laying off up to a quarter of its global workforce this fall, although activity by the company has picked up on the North Slope. No numbers were given for Alaska.
United Steelworkers western states director, Gaylan Prescott, told Alaska Public Media a union can protect workers if the company announces future reductions.
"We're pretty proactive in working with employers to prevent the layoffs altogether," he said. "And then, if there are some, you try to apply a methodology that makes sense, so that there isn't favoritism being deployed as part of the analysis."
United Steelworkers already represents approximately 300 Hilcorp workers on the North Slope. Prescott said he believes this would be the first for Conoco workers in Alaska.
Ruskin reported that geography is challenging for union organizers. The Arctic job sites are isolated and the workers live all over Alaska and the Lower 48. But Prescott sees the schedule -- typically two weeks on and two off -- as beneficial for an organizing campaign.
"It's a more cohesive group of folks," he said. "They really lean on each other. More so than folks who work eight hours a day together," Prescott said.
"We believe that we can best meet the needs of our employees through a direct relationship, as it allows us to quickly and efficiently collaborate with and gather feedback from our employees and provides for a workplace where everyone feels supported, heard, and valued," ConocoPhillips' director of media relations Dennis Nuss said in an emailed statement to Alaska Public Media.
Per Ruskin's article, no date has been set for the election yet
Pantheon shares drop after well update On Dec. 2, Upstream reported that shares in UK junior Pantheon Resources dropped to a one-year low after an operational update "revealed slow progress and cost overruns" at its Alaska North Slope Dubhe-1 well.
"Shares in the AIM-listed company tumbled nearly 30% shortly after the start of trade to below $25 cents per share," Upstream reported.
"In its operational update on Tuesday, Pantheon revealed that clean-up operations at its Dubhe-1 discovery well on Alaska's North Slope are progressing with production dominated by previously injected stimulation fluids," Upstream reported.
According to Upstream, "the company said that intermittent oil production from Dubhe-1 started on 3 November, with consistent small oil volumes starting from around 19 November: Approximately 40% of the injected water volume has been produced with steady gas production along with the modest production of light oil."
U.K. withdraws financing for Mozambique LNG Per a Bloomberg report picked up by Larry Persily on Dec. 1, the U.K. withdrew its financing for Mozambique LNG. "After a detailed review, the U.K. government has decided to end" U.K. Export Finance (UKEF) participation in Mozambique LNG," Business Secretary Peter Kyle said in a statement.
"My officials have evaluated the risks around the project, and it is the view of His Majesty's Government that these risks have increased," Kylr was quoted as saying.
Per Bloomberg, insurgents in Cabo Delgado province, where the project is located, haven't launched a major attack since May 2024, but smaller-scale raids have accelerated in recent months.
The U.K. government had promised to provide $1.15 billion of support for the project, with the idea of using goods and services from several U.K. companies.
-Oil Patch Insider compiled by Kay Cashman
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