Shell’s Chemicals Exit Attracts XOM and LYB: Capital Discipline or Missed Opportunity?

Shell-led LNG Canada may decide on Phase 2 expansion by October, adding 14 mtpa capacity. The project, backed by global energy firms, aims to meet Asia's growing LNG demand. Phase 1 cost C$40 billion and is Canada's first large-scale LNG export terminal. Indigenous communities have also invested.

ExxonMobil received approval for its Rose carbon-capture project in Texas, allowing storage of up to 53 million tons of CO2 over 13 years. The Railroad Commission of Texas voted 2-1 in favor, with dissent from one commissioner. The project aims to reduce emissions and is among the largest of its kind.

On September 17, Brent crude oil was around $103/barrel, WTI near $100. Chevron (CVX) reported Q2 earnings of $12.1B, with 20% year-over-year production growth. Chevron, Exxon (XOM), and ConocoPhillips (COP) are highlighted as strong energy sector investments due to their financial strength and production capabilities.

ExxonMobil has started a carbon capture project at Nucor's Louisiana facility, aiming to store 800,000 metric tons of CO2 annually. This is the company's third CCS project for a third party and part of its expanding Gulf Coast network, which could reduce emissions by over 100 million metric tons yearly. The project supports Nucor's carbon-reduction goals and follows regulatory approval for ExxonMobil's Rose carbon storage project.

Wood Group won a $200 million, five-year contract with ExxonMobil PNG for construction services on the PNG LNG project. The work involves maintaining and upgrading existing infrastructure, including plants and pipelines, to ensure reliable LNG supply to Asia. Over 200 Wood personnel will perform various technical services, building on a decade-long relationship with ExxonMobil PNG.

Shell has become the first operator in the US Gulf to receive FAA clearance for self-approved offshore drone flights beyond visual line of sight, according to the Journal of Petroleum Technology. The approval allows Shell to operate drone-in-a-box systems from its Mars floating production unit, marking a significant operational change for offshore inspections.