After a 9 month oil production blockade which cost Libya billions of dollars in lost revenue, oil production restarted Sunday afternoon in Sharara. Before the blockade, Libya was able to contribute around 1.3 million barrels a day to the global supply.
The oil complex is trading much higher this morning due to a flurry of bullish headlines: increased chances of a federal stimulus package, weaker dollar, oil strikes in Norway, and the development of Tropical Storm Delta.
The relationship between big oil and big corn has been tenuous at best for years, but with historic declines in fuel consumption due to COVID-19, the fight has reignited in a major way. Oil refiners and their allies from the Gulf Coast and Pennsylvania are in a serious policy battle with ethanol producers, corn farmers and Midwest politicians. At the heart of the disagreement is that the oil refining industry is seeking waivers from biofuel blending requirements resulting from the Renewable Fuel Standard (RFS).
Chevron and ExxonMobil highlighted an aggressive strategy for drilling in the Permian Basin over the next five years to their investors this week. Exxon is aiming to increase production to 1 million barrels per day while Chevron is targeting an additional 900,000 barrels per day, all by the end of 2024. The presentations from both companies exemplify a growing trend in the region that has made the United States the world’s top producer of oil and natural gas.