Apr 10, 2019

Companies are finding lots of oil again

Data: Rystad Energy ECube; Chart: Axios Visuals

The oil industry is finding lots of hydrocarbons thus far in 2019, putting discoveries on pace to grow by 30% this year if they keep it up, the consultancy Rystad Energy said this week.

Why it matters: The finds by big players like ExxonMobil and Total are a sign of ample new supplies that could come online in coming years, which is likely to further ease concerns about a crude supply crunch down the road.

  • It also signals why OPEC will face ongoing challenges in the years ahead in their quest to keep markets tight and prop up prices.

By the numbers: First-quarter discoveries of conventional oil and gas, which excludes shale, were 3.2 billion barrels oil-equivalent.

  • Much of that came in February, when the 2.2 billion barrels of discoveries marked the highest monthly total since mid-2015, Rystad said in a short note.

What's next: "[T]he push for substantial new discoveries shows no signs of slowing down, with another 35 high impact exploration wells expected to be drilled this year, both onshore and offshore," Rystad wrote.

Quick take: The big finds are another sign that fears of a crude supply crunch opening up by the early 2020s likely won't come to pass.

  • Some analysts feared a precarious situation emerging because spending on finding and developing new supplies cratered around 2014.
  • But 2019 is set to be the third straight year of upstream investment increases, per the International Energy Agency.
  • Bigger-than-expected U.S. shale growth has also eased concerns.

But, but, but: "Forecasts of a supply gap persist, but they’re being pushed further out into the future," Bloomberg reported in late January, and IEA has warned against complacency.

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Bernie's juggernaut

Sen. Bernie Sanders speaks in San Antonio last night with his wife, Jane. Photo: Eric Gay/AP

Sen. Bernie Sanders won so big in the Nevada caucuses that Democrats are hard-pressed to sketch a way he's not their nominee.

Driving the news: With 60% of precincts counted (slow, but better than Iowa!), Sanders is running away with 46% of delegates — crushing Joe Biden's 20%, Pete Buttigieg's 15%, Sen. Elizabeth Warren's 10% and Sen. Amy Klobuchar's 5%.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Buttigieg campaign claims Nevada caucuses were "plagued with errors"

Photo: Win McNamee/Getty Images

Pete Buttigieg's campaign wrote a letter on Sunday asking the Nevada State Democratic Party to release early vote and in-person vote totals by precinct and address certain caucus errors identified by campaigns, The Nevada Independent reports.

The big picture: The campaign alleges that the process of integrating early votes on caucus day was “plagued with errors and inconsistencies,” and says it received more than 200 incident reports from precincts around the state.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Coronavirus threat grows, threatening some drug supplies

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

As the novel coronavirus continues spreading globally and China grapples with a limited production capability, there's a growing risk to about 150 prescription drugs in the U.S., sources tell Axios.

The big picture: The coronavirus has spread to more countries, with both South Korea and Italy stepping up emergency measures amid rising case numbers on Sunday. COVID-19 has killed at least 2,467 people and infected almost 79,000 others, mostly in mainland China.

Go deeperArrowUpdated 3 hours ago - Health