National Gasoline Prices Fall Below $3 Per Gallon
The U.S. national average price of gasoline has fallen below $3 per gallon for the first time in more than three and a half years. According to GasBuddy data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country, the average national gasoline price was $2.97 per gallon on Monday, a level they last touched in 2021. De Haan has noted that some 35 U.S. states now enjoy average gas prices below $3 per gallon, an increase of seven states from a month ago. “The national average has finally fallen below $3 per gallon, and it couldn’t come at a better time for motorists with the holidays upon us. One would need to count over 1,300 days since we’ve seen the national average this low, with the affordability of gasoline at its lowest non-COVID level since 2015,” said Patrick De Haan, head of petroleum analysis at GasBuddy. Oil is the primary factor that determines gasoline prices in the United States, and commodity experts at Standard Chartered have predicted that U.S. oil production will not surge under Trump. According to the experts, U.S. crude production has increased by 4.7 mb/d since the pandemic-era low of May 2020; however, it’s just 0.4 mb/d higher than the pre-pandemic high of November 2019, working out to an annual production growth rate of just 80 thousand barrels per day (kb/d) over this timeframe. Further, the growth clip is forecast to continue to slow down in the current year and in 2025. U.S. liquids supply increased by 1.605 mb/d in 2023, but StanChart has forecast growth of just 630 kb/d in 2024, slowing further to 300 kb/d in 2025. With more than a month since U.S. President-elect Donald Trump won a second term in the Oval Office, oil markets have been struggling to find direction despite event risk remaining high, particularly in the Middle East. According to StanChart, the market’s apparent hesitation to trade a view with any conviction has intensified the notion that oil markets seem content to wait for Trump to take office.
India Will Dominate Oil, Gas Transmission Pipeline Length Additions in Asia
In a release sent to Rigzone recently by the GlobalData team, the company said India will dominate oil and gas transmission pipeline length additions in Asia by 2028. “India is expected to be at the forefront in terms of the trunk/transmission oil and gas pipeline network additions in Asia, accounting for more than 40 percent of the region’s total pipeline length additions by 2028,” the global data and analytics company stated in the release. GlobalData’s release highlighted that an outlook report by the company on oil and gas pipelines revealed that India “is likely to witness the start of operation of more than 50 planned and announced pipelines by 2028, adding a total transmission pipeline length of over 26,000km”. Of this figure, around 24,000km would be from planned pipelines that have received necessary approvals for development, GlobalData pointed out in the release. Bhargavi Gandham, an oil and gas analyst at GlobalData, noted in the release that “natural gas and product pipelines account for more than 80 percent of the upcoming transmission pipeline length additions in India by 2028”. Gandham added that the upcoming Kandla–Gorakhpur product pipeline is likely to be the longest among all the upcoming pipelines with a length of 2,809km. “The other significant addition to the country’s pipeline network is the planned Mehsana–Bhatinda natural gas pipeline,” Gandham said, noting that the pipeline will run a length of 1,834km. “With a length of 1,755km, Mumbai–Nagpur–Jharsuguda, a natural gas pipeline, is the next significant contributor to pipeline additions,” Gandham went on to state. In a separate release sent to Rigzone by GlobalData in May, the company said India is poised to take the lead in the number of liquid storage projects in Asia that are expected to start operations during 2024-2028, “contributing about 42 percent of the region’s total project count by 2028”.
PNGRB pushes for natural gas as a cleaner, greener energy solution for India
As the world’s fastest-growing emerging economy aims to transform into a manufacturing behemoth while adopting clean energy sources, natural gas plays a critical role as the best transition fuel, asserts the Petroleum and Natural Gas Regulatory Board (PNGRB). “India’s approach is aligned with global efforts to combat climate change through cleaner energy transitions. Various studies worldwide underscore the benefits of natural gas in reducing carbon and particulate matter emissions,” emphasises A Ramana Kumar, Member, PNGRB. The shift to piped natural gas (PNG), compressed natural gas (CNG) and liquefied natural gas (LNG) has been successful in several countries, leading to improved urban air quality. India’s initiatives serve as a model for similar economies looking to balance energy needs with environmental protection, he told businessline. PNGRB’s work on infrastructure creation and regulatory measures accelerates the shift towards natural gas. It also facilitates India’s goal of achieving a 15 per cent share of natural gas in its energy mix by 2030. Developing and expanding city gas distribution (CGD) networks is a critical intervention by the downstream regulator to curb air pollution, particularly in densely populated urban clusters. The supply chain transporting LPG cylinders to households adds to vehicular pollution and traffic congestion, which is negligible for PNG. Around 5,42,960 Inch-km of pipelines have been laid to enhance natural gas delivery to homes, transport, commercial and industrial sectors. PNGRB’s efforts to expand CGD networks and promote PNG are showing results. India now has around 13.6 million domestic PNG connections, which is expected to increase to 126.3 million by 2032. Promoting CNG in cities has helped reduce air pollution by encouraging the transport sector to switch to cleaner fuels. As of September 2024, around 7,000 CNG stations had been established nationwide, and the number is expected to reach 25,000 by 2032. The National Clean Air Programme (NCAP) of the Ministry of Environment, Forest and Climate Change has identified 131 cities as Non-attainment cities (NAC). NCAP aims to reduce PM10 concentrations by 20-30 per cent in these cities by FY25, with an extended target of up to 40 per cent by FY26, underscoring the need for cleaner fuels. Here, PNGRB is working in close coordination with the Environment Ministry to share available and upcoming Natural Gas infrastructure in these cities and devise various incentives for industries to convert to natural gas from polluting fuels.
Saudi Arabia Cuts Oil Prices
Saudi Arabia is cutting oil prices for buyers in Asia by more than expected after OPEC+ further delayed an output revival, underscoring how the outlook for the market remains weak. State oil producer Saudi Aramco will sell its main Arab Light crude grade at a premium of 90 cents a barrel to the regional benchmark in Jan, according to a price list seen by Bloomberg. That compares with $1.7 for this month. Earlier, OPEC+ – led by Saudi Arabia and Russia – agreed to push back production increases planned for the start of January by another three months, following two previous delays. The prospect of an impending oversupply leaves the group with the uncomfortable dilemma of whether to prolong production curbs well into 2025 or risk a price slump.