US oil production: record output at low prices a troubling combination
As Saudi Arabia makes production cuts, its US oil rivals make hay. American production, recently measured at 13.2mn barrels a day, has hit an all-time high. This is slightly more than the previous peak in 2019. At the same time, benchmark Brent and WTI prices have fallen back from $90 a barrel in the early autumn to less than $80.
US onshore producers risk entrapment in a cycle of inefficient drilling, forsaking positive cash flow for greater volumes and market share. High production could also make the Biden administration more focused on promoting other forms of greener energy.
Independent exploration and production companies (E&Ps) have changed radically. They not only generate cash but reward shareholders with steady dividends and buybacks.
Associated natural gas production in three Permian oil plays tripled since 2018
Production of associated-dissolved natural gas, or associated natural gas (natural gas produced from predominantly oil wells), has nearly tripled since 2018 in the three top-producing tight oil plays in the Permian region. Associated natural gas from Wolfcamp, Spraberry, and Bone Spring plays averaged a combined 13.7 bcfd in the first 7 months of 2023, up from an average of 4.7 bcfd in 2018, according to data from Enverus DrillingInfo.
Associated natural gas production has grown due to increases in both crude oil production and the volume of natural gas per barrel of oil that a well produces, namely the gas-to-oil ratio (GOR), among the oil wells in these three plays.
Any Increase in an oil well’s GOR means more natural gas is being produced per barrel of oil. According to the US Energy Information Administration (EIA), wells with a GOR of less than or equal to 6 Mcf/b are defined as oil wells. Wells with a GOR of more than 6 Mcf/b are defined as natural gas wells.
Dairy production on the rise
The National milk production has increased by 7.2 percent and dairy product production increased by 3.6 percent year-on-year, from Jan to Aug 2023, according to an industry leader.
During the 2023 New Energy Dairy Industry Annual Conference organized by NetEase Finance, Liu Yaqing, vice president and Secretary-General of the China Dairy Association, said the national milk and dairy products have maintained continuous growth in production scale.
However, despite the continuous growth in the dairy industry and improvement in quality, both the dairy industry and enterprises in China are facing multiple challenges such as operational difficulties.
Liu Chao, vice chairman and executive deputy secretary-general of the China Dairy Industry Association, said China’s dairy industry still shows robust development resilience. He said continuous adjustment of product structure, strengthening technological innovation, and emphasizing diversified development are vital to the progress of the sector.
Sugar stocks fall on reports of ethanol production curbs
Shares of sugar production companies fell on Thursday, after reports that India was mulling a curb on ethanol production from sugarcane, as it grapples with sugar shortage. India, world’s second largest sugar producer, is going over a proposal to limit sugar cane’s usage to make the biofuel, a Bloomberg report said. However, no decision has been made yet, and plans may change.
If the proposal is approved, it could help ease local shortage. The Directorate General of Foreign Trade had restricted exports of raw, white and refined sugar in October 2022. Although the restriction was supposed to be lifted on Oct. 31, 2023, it was extended as weak monsoons affected sugar crops.
Farmers in trouble as urea prices surge by 47pc, threatening wheat production
Farmers nationwide face hurdles in acquiring urea fertiliser at official prices, with reports indicating hoarding by dealers and middlemen causing inflated rates and endangering wheat crop production.
Over the past week, the price of a 50-kilogram bag of urea has surged by up to 47 percent, reaching Rs5,000, significantly higher than the official rate ranging from Rs3,410 to Rs3,750, according to farmer groups.
Farmers are concerned about the government’s failure to ensure sufficient availability and proper distribution of this essential fertiliser crucial for early wheat growth stages.
Despite manufacturers claiming no recent price revisions, urea fertiliser prices have skyrocketed nationwide in just a week.
This surge, up to Rs1,590 above the official price, comes at a critical time in December when demand is high for application during the early stages of the wheat crop.
Tea production rises 12.06pc in Oct
Tea Production in the country increased by 12.06 percent to 182.84 million kg in October this year as compared to 163.15 million kg in the corresponding month last year. According to Tea Board data, production of the crop in West Bengal rose to 54.98 million kg in October, as against 49.75 million kg in the same period in 2022. Assam, the country’s largest tea-producing state, also registered a higher crop at 104.26 million kg in October. The state produced 90.72 million kg of tea in October 2022, according to the data. In south India, production was marginally lower at 18.89 million kg in October 2023, as against 18.92 million kg in the same month of the previous calendar year. Category-wise, production of the CTC variety touched 167.72 million kg in October 2023, whereas that of orthodox tea was 12.98 million kg across both north and south India.