Energy 'emergency' stratagem tipping the scales in oil, gas, and LNG favor
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The offshore energy industry, including its oil, gas, and LNG segments, never sleeps, but the fossil fuels sector sure seemed somewhat more subdued at this time last year than it is now, especially in certain regions. The growing emphasis on climate change and the need to make use of decarbonization tools to reach the energy transition's zero-emission destination had run the Western world's energy show, even overshadowing security of supply concerns at times. This year, things appear to be less set in net-zero stone, after an executive energy emergency order in the U.S. brought a new spring to the oil and gas industry's step with aftershocks, despite being expected, still reverberating across the world.
While the industry still feels the pressure to curb its carbon and overall greenhouse gas (GHG) footprint, this pressure has lessened somewhat as America pushes for an 'all-of-the-above' energy strategy. The stratagem is supposed to see fossil fuels coexist side-by-side with renewables and other low-carbon and clean sources of supply, but apparently, that does not entail offshore wind. U.S. President Donald Trump has decided to hit the brakes on this fast-growing green power source for the time being. Where does this American blessing for a greater zest in hydrocarbon exploration leave the wider, global oil and gas industry?
Judging by the number of organizations and politicians that have welcomed the shift in the U.S. energy policy, one would assume that things will go smoothly for the oil and gas industry from now on. Yet, such an assumption may not be accurate, given the number of climate activists, organizations, and political subjects that have raised concerns over America's so-called U-turn on climate action. Even within the U.S. borders, many are not happy with the change in energy policy and have already threatened to take the Trump administration to court over its decision to unleash the boom in the oil, gas, and LNG arenas but stifle offshore wind growth, by putting a freeze on it, just like the Biden administration did with LNG.
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Before President Trump returned to the White House, the Federal Reserve Board disclosed its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), claiming that the NGFS' work had broadened in scope to cover a wider range of issues outside the Federal Reserve Board's statutory mandate.
The list of those that have welcomed Trump's reversal of the LNG export permitting pause includes Asia Natural Gas & Energy Association and African Energy Chamber. The latter's Executive Chairman, NJ Ayuk, claims that "developing nations must determine their own energy futures, not bureaucrats at the the IEA," while delivering a comment on "the unrealistic view that emerging economies can develop using only renewables."
NJ Ayuk, Executive Chairman's African Energy Chamber, highlighted: "Western governments pursuing net-zero goals often expect emerging and developing economies to follow suit. Yet their politicians show little understanding of the energy needs of developing nations. If they did, they would be forced to confront “an inconvenient truth” — 600 million people in Africa lack access to electricity, and nearly a billion suffer from inadequate cooking fuels. Addressing this crisis requires a more honest approach than simply eliminating fossil fuels. But instead of working to understand our challenges and pursuing realistic solutions, bureaucrats in the Global North are using their influence to undermine critical energy infrastructure investments that could improve the lives of hundreds of millions.
"As a recent report published by Sen. John Barrasso’s office describes, the International Energy Agency (IEA) — a Paris-based intergovernmental organization known for its influential energy forecasts — is increasingly responsible for feeding the unrealistic view that emerging economies can develop using only renewables. [...] Governments and financiers rely on the IEA to inform policies and investment decisions, and, unfortunately, as the Financial Times pointed out last year, the agency’s pie-in-the-sky predictions have pushed many banks to withhold project financing. Citing the IEA, BNP Paribas and HSBC have halted all new financing for oil and gas development, while Barclays, ING and Deutsche Bank now finance these projects selectively. Often, banks invest in projects in the Global North while rejecting projects in the Global South, citing concerns of a “carbon bomb” if Africa is allowed to prosper."
However, those unhappy with Trump's 'drill, baby, drill' energy policy, such as Greenpeace, claim that the newly sworn-in President's attempt to create an oil and gas boom will fail as he cannot protect the oil industry from four issues. Greenpeace explains that this refers to 86 climate cases against oil companies worldwide; clean energy being now considered as cheaper than fossil fuels; Biden allocating $74 billion to climate initiatives, which Trump cannot reverse; and people coming together to support each other in climate disasters and demand change.
Meanwhile, the Netherlands’ third-largest city, The Hague, is said to be the first one in the world to ban advertisements for fossil fuels in public spaces, after the motion to do so gained traction in September 2024. This prohibition, which came into effect on January 1, 2025, is expected to help curtail the use of fossil fuels, which are perceived to be contributing a large deal to the global climate crisis due to greenhouse gas emissions such fuels emit.
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? ExxonMobil's new gas discovery in the Mediterranean Sea, offshore Egypt, was drilled with one of Valaris Limited's drillships.
? Serica Energy plc has begun drilling operations at the next well in its multi-well drilling campaign and work-over program in the North Sea, with a rig from COSL Drilling Europe AS, which has one more well lined up with the British player on the UK Continental Shelf (UKCS).
? ORLEN S.A.'s ORLEN Upstream Norway AS and Shell recently finished drilling a wildcat well with an Odfjell Drilling-managed rig in the Norwegian Sea. This well turned out not to hold commercial hydrocarbon volumes.
? With a drilling permit in hand, OMV is gearing up to spud a wildcat well in the North Sea offshore Norway next month with Transocean's semi-submersible rig.
? ADES - Advanced Energy Systems has added a new country to its geographical portfolio with the entry into Nigeria's offshore arena, which enables one of its jack-up rigs to go on a drilling assignment in West Africa.
? ExxonMobil and QatarEnergy have begun drilling a prospect offshore Cyprus, using one of drillships owned by Valaris Limited. This comes at a time when Cyprus is working on setting the stage to develop its resources and build energy ties with Egypt.
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? While bringing its new project online, China National Offshore Oil Corp. has confirmed that its offshore gas fields around Hainan Island will continue to provide "clean, reliable and stable energy supply for the Island."
? Wood's most recent deal will see it provide long-term maintenance solutions to ensure energy production from onshore and offshore assets in the Gippsland Basin, which are operated by ExxonMobil in Australia.
? Following a subsea pipeline issue, bp has resumed production from a platform offshore Azerbaijan at one of the world’s largest gas-condensate fields and the UK-based company’s largest natural gas discovery ever.
? The $10 billion deal between ADNOC Gas and EWEC provides for the delivery of gas to plants across the UAE for a decade, supporting the country's transition to a lower-carbon system.
? A new timeline for a final investment decision is still being contemplated for Santos Ltd's giant oil project, which was deemed to be the largest oil discovery made on Western Australia’s North West Shelf in three decades.
? Aker Solutions and V?r Energi have inked a deal that enables the former to deliver maintenance services at the assets and projects on the Norwegian Continental Shelf. This collaboration includes Honeywell and StS ISONOR AS.
? EnQuest has laid the groundwork to widen its footprint in Southeast Asia with the acquisition of Harbour Energy’s business in Vietnam, including producing oil and gas assets.
? MODEC has secured a multi-year extension for its FPSO with Petrobras in the Santos Basin offshore Brazil.
? Equinor has put the wheels in motion to develop its giant Bay du Nord oil project offshore Newfoundland and Labrador by handing out preliminary front-end engineering design (pre-FEED) work to BW Offshore and Altera Infrastructure. While the Canadian project has been on hiatus since 2023, when the firm disclosed plans to delay the project for three years, it is anticipated to be among the world’s lowest-carbon projects per barrel of oil once it comes on stream.
? Kuwait Petroleum Corporation's Kuwait Oil Company has made another large hydrocarbon find at a field off the coast of Kuwait.
? New Fortress Energy has landed a long-term natural gas supply deal for a 478 MW combined-cycle power plant, under development in Puerto Rico's San Juan.
? Global Petroleum Limited has made up its mind to take more time to find the right partner for PEL 94 offshore Namibia after the asset caught the eye of “?????????????? ????????-?????????? ?????????????????? ???? ?????? ?????? ?????? ?????? ????????????????.” The firm emphasized: “?????? ???????????????? ???? ???? ???????????????? ?????? ?????????????????? ?????????????? ????????????????????, ?????????????? ?????????? ?????????????????????? ???? ?? ???????????? ????????????????. ???? ?????????? ????, ???? ?????? ???? ?????????????? ?????? ???????? ???????????????????????? ?????????? ?????? ???????????????????? ?????? ?????? ?????????????? ?????? ?????? ????????????????????????."
? Gazprom augmented its natural gas resources with geological exploration last year to strengthen Russia's energy security, as its gas reserves once again top its production rates, with the largest slice coming from the Arctic and the Yamal Peninsula.
? Petrobras has started the binding phase of the sale of its working interest in a producing shallow water field within the Sergipe-Alagoas Basin offshore Brazil.
? As the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID) has upheld the previous decision, rejecting Venezuela’s appeal, the country is required to dish out $8.7 billion to ConocoPhillips over the expropriation of three oil assets close to 18 years ago.
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? GTT (Gaztransport & Technigaz) has joined forces with China Offshore to shape the future of FLNG and FSRU infrastructure to respond to the changing requirements of the energy landscape.
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? PetroVietnam Exploration Production Corporation has undertaken its first commissioning activities to put Vietnam's inaugural LNG power plant into commercial mode.
? Among the batch of executive orders Trump signed on January 20, 2025, one puts the heads of all executive departments and agencies on high alert to “prioritize the development of Alaska’s LNG potential, including the permitting of all necessary pipeline and export infrastructure related to the Alaska LNG Project,” being progressed by Alaska Gasline Development Corporation.
? Botala Energy Ltd claims that its agreement with FFS Refiners to provide gas supply to South Africa comes at a time when the country is facing a looming gas shortage.
? bp has progressed the gas development off the coasts of Mauritania and Senegal, which is said to be the biggest project in its portfolio and one of the deepest, most complex gas developments in Africa.
? YPF has struck deals with Oil and Natural Gas Corporation Limited (ONGC), GAIL (India) Limited, and ONGC Videsh Ltd for LNG exports from its proposed project in Argentina's Sierra Grande Norte, on the South American country’s Atlantic coast.
? Croatia has made progress in upping the LNG capacity ante at its LNG Croatia terminal on the island of Krk, thanks to the finished inspection of a regasification module at Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd in Shanghai, China.
? The deal with JERA Co., Inc. has increased Celsius Shipping's LNG orderbook with a new vessel addition.
? GAZ-SYSTEM has enlarged the regasification capacity at Poland's LNG terminal in ?winouj?cie, enabling the European country to enhance its energy security with increased diversification of its gas supplies.
? Santos Ltd is pooling resources with Tamboran Resources Corporation to explore a potential expansion of an LNG project in Darwin to enable additional gas supplies to Australia’s domestic market and international LNG club.
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? Trump’s executive order moves to set the scene for more oil, gas, and LNG are seen by climate activists as roadblocks on the path to a more sustainable future, as these decisions are perceived to interfere with the renewable energy industry's growth holding back U.S. renewables’ progress, given the offshore wind freeze that he has put into effect. The Republican leader's reversal of the U.S. LNG export permitting pause boosts Big Oil’s role in the energy sector, as Trump works on removing some clean energy alternatives from the menu, even though they are seen as crucial to unlocking net zero.
? China National Offshore Oil Corp.'s multibillion-dollar business strategy and development plan for this year shows the Chinese giant's efforts to strike a balancing act between energy security and sustainability with an all-of-the-above energy policy. This is illustrated by its decision to pursue the ramp-up in its hydrocarbon production levels by focusing on large and medium-sized oil and gas fields while simultaneously scaling up its clean energy arsenal with more offshore wind and onshore solar, alongside other green and low-emission sources. In addition, the firm intends to leverage artificial intelligence to bolster its oil and gas business.
? Price volatility and rise in costs alongside the interplay of other factors such as climate change, energy transition agendas, rising power demand, and emerging technologies and innovations, including automation and technological progress in taking advantage of AI, play their part in shrinking jobs in the energy market, as demonstrated by the rise in job cuts that are expected to be made by the U.S. and European oil and gas giants like bp, Shell, Chevron, and ExxonMobil. It is believed that keeping all energy sources in play - oil, gas, and LNG alongside renewables and other clean energy sources - and ensuring upskilling for workers would improve job market conditions.
? As U.S. President Donald Trump has opted to restart the approvals process for LNG export projects to non-free trade agreement (non-FTA) countries, Friends of the Earth and Public Citizen have pinpointed 14 multibillion-dollar projects likely to be on the LNG export menu. As a result of the expected LNG boom, America seems poised to reach the $1.3 trillion GDP estimate from a study made by S&P Global.
With gas poised to be in the leading role, Markus Wenker, CFO of Yinson's Yinson Production, highlighted: “?? ???????? ???? ?????????????????????? ???? ?????? ?????? ?????? ?????????? ???????????? ???????????????? ?????? ???????????????????? ???????????? ???????????? — ???????? ???????? ?????? ?????????????????????? ?????????? ???????????????????? ??????, ???????????????????? ?????????????? ???????? ????? ???????????? ????????????????????.
"???? ???? ??????????????, ????? ???????????? ??????????????? ???? ???? ???????????????? ?????????????????? ?????????????????? ???????? ???????????????? ???????????????????? ???? ????? ???????????? ???????????????????? ???????????? ???????????????????? ?????? ?????????? ?????????????? ???????? ?????? ?????? ?????? ?????????????? ?????????????????? ????? ???????????? ????????????????????."
With U.S. LNG export capacity poised to double, future activity is likely to generate over $2.5 trillion in total revenues for businesses, $166 billion in federal and state tax revenues, and more than $500 billion in labor income, according to S&P Global.
Aside from ???????????? ??????, being developed by Alaska Gasline Development Corporation (????????), the list of top 14 LNG projects with established commercial momentum, located in Louisiana or Texas, with only a handful in Mexico, encompass: Venture Global LNG’s ??????, Woodside Energy’s ???????????????? ?????????????????? ??????, Energy Transfer’s ???????? ?????????????? ??????, Mexico Pacific’s ?????????????? ??????????????, Sempra’s ???????? ???????????? hashtag#expansion, Delfin Midstream terminal in the Gulf of Mexico to be renamed Gulf of America, Cheniere Energy, Inc.’s ???????????? ???????? expansion, Commonwealth Energy, Glenfarne Group, LLC/Alder Midstream, LLC's Magnolia LNG, LNG Alliance Pte Ltd’s ??????????, Sempra Infrastructure's Cameron LNG II, NextDecade’s ?????? ???????????? II, Glenfarne Energy Transition, LLC’s Texas LNG, and ????????????????’s ???????????? ?????????????? expansion.
Odds appear stacked in the LNG growth favor, with energy analysts predicting boom times for global LNG. Will these projects usher in a more sustainable era in the U.S., bringing it closer to its decarbonization goals, or spur climate litigation?
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Senior Editor at Offshore Energy Today, now known as Offshore Energy's Fossil Energy market
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Agree! Traditionally, fossil fuels are associated with carbon emissions and non-sustainability. However, implementing systems that reduce the carbon footprint, enhance sustainability, and protect nature during well construction is crucial for a responsible energy future.