We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equinor Flags Production Limits Amid Global Energy Supply Shortage
Read MoreHide Full Article
Key Takeaways
Equinor says it lacks spare capacity to increase oil and gas output despite global supply shortages.
EQNR notes Brent hit $100 and Dutch TTF gas prices surged as Middle East supply disruptions shake markets.
Norway boosted exports by about 10% during the Russia-Ukraine war and has since operated at maximum capacity.
Equinor ASA (EQNR - Free Report) , Norway’s state-owned integrated energy company, stated that it cannot increase its oil and gas output amid global supply disruptions tied to the U.S.-Iran conflict. Global oil supply is experiencing a severe shortfall due to disruptions to shipments through the Strait of Hormuz and damage to the oil production infrastructure of several Middle Eastern producers.
EQNR noted that it does not possess the spare capacity to raise output amid supply shortages. The company remains focused on serving as a reliable energy supplier in its operating markets while maximizing production to support the current need for stable supply.
The conflict in the Middle East has led to a sharp rise in oil and gas benchmark prices, with Brent crude reaching the $100 mark for the first time since the 2022 energy crisis triggered by the Russia-Ukraine conflict. European benchmark gas prices, measured by the Dutch TTF futures, have surged due to supply disruptions.
Per Reuters, during the Russia-Ukraine war, Norway was able to increase its energy exports by 10% approximately. The country achieved this by raising production quotas, allowing companies to increase their production and adjusting maintenance schedules so facilities could operate longer. Norway has been producing at its maximum capacity since then and cannot materially raise output levels at present. Equinor is one of Europe’s largest natural gas suppliers. Norway’s oil and gas deliveries to Europe are crucial for the region’s energy security.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Equinor Flags Production Limits Amid Global Energy Supply Shortage
Key Takeaways
Equinor ASA (EQNR - Free Report) , Norway’s state-owned integrated energy company, stated that it cannot increase its oil and gas output amid global supply disruptions tied to the U.S.-Iran conflict. Global oil supply is experiencing a severe shortfall due to disruptions to shipments through the Strait of Hormuz and damage to the oil production infrastructure of several Middle Eastern producers.
EQNR noted that it does not possess the spare capacity to raise output amid supply shortages. The company remains focused on serving as a reliable energy supplier in its operating markets while maximizing production to support the current need for stable supply.
The conflict in the Middle East has led to a sharp rise in oil and gas benchmark prices, with Brent crude reaching the $100 mark for the first time since the 2022 energy crisis triggered by the Russia-Ukraine conflict. European benchmark gas prices, measured by the Dutch TTF futures, have surged due to supply disruptions.
Per Reuters, during the Russia-Ukraine war, Norway was able to increase its energy exports by 10% approximately. The country achieved this by raising production quotas, allowing companies to increase their production and adjusting maintenance schedules so facilities could operate longer. Norway has been producing at its maximum capacity since then and cannot materially raise output levels at present. Equinor is one of Europe’s largest natural gas suppliers. Norway’s oil and gas deliveries to Europe are crucial for the region’s energy security.
EQNR’s Zacks Rank and Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Galp Energia (GLPEY - Free Report) . While Archrock sports a Zacks Rank #1 (Strong Buy), Subsea7 and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.