Are Natural Gas Prices Set To Spike?
Natural gas storage is at record low levels but prices are falling going into winter heating season. Markets seem to be betting that wellhead supply will be sufficient to cover demand this winter. That may be but at what gas prices? This is a game of natural gas risky business.
Texas oil production to grow by 68,000 next month
The Permian increased production faster than expected in October and is projected to grow by nearly 40,000 barrels more than previously estimated, the Energy Department said. By the end of the month, output from the prolific shale play is expected to be just shy of 3.5 million barrels a day.
The Oil Markets Are At A Confusing Crossroads
Not only does the IEA not subscribe to peak supply, but it warns that peak demand may be far off as well. The “drivers of demand remain very powerful,” and consumption is set to continue to climb higher in the years ahead. Transportation will continue to grow, although at a slower pace as electric vehicles begin to take over. But surging petrochemical production and the consumption of plastics will push oil consumption to ever greater heights, the agency believes. Not only did peak supply never arrive, the IEA argues, but “[t]here is no peak in sight for demand either.”
Texas to Mexico natural gas pipeline delayed
Enbridge noted that the delay was due to an inability to test the pipeline due to delays in the completion of the Mexican portion of the pipeline, which connects with the Enbridge section offshore from Brownsville in the Gulf of Mexico. The Mexican portion is being built by Infraestructura Marina de Golfo, a joint venture between the Canadian pipeline and storage company TransCanada and Sempra Energy of San Diego.
Judge Dismisses Charges Against Anti-Pipeline Activists
Minnesota state district judge Robert Tiffany has dismissed charges against three climate change activists who shut down two pipelines operated by Enbridge back in 2016. Although they had reason to be happy with the judge’s decision, the defendants were in fact disappointed: the acquittal happened mid-trial, before they had a chance to use their defense, which would have run along the lines of necessity.
$100 Oil By Christmas?
Thanks to OPEC and Russia’s agreement to restrict supply, and rising world demand for crude, the Brent oil price has climbed past $82 a barrel, a big increase on the $56 prevailing at the same time last year and a four-year high. Also, the collapse in oil prices in 2014 initiated a profound shock to oil companies.
Northern Colorado developers wary of Proposition 112’s effect on economy
The anxiety mirrors that of many Weld County political leaders, including six of seven Greeley City Council members, who voted Tuesday night to pass a resolution opposing Proposition 112, a measure that would increase the distance between oil and gas wells and schools, homes and bodies of water to 2,500 feet. Under the state’s current regulations, setback requirements are 500 feet from homes and 1,000 feet from schools.
Saudis Raise Oil Output to Near-Record Amid Pressure From Trump
OPEC’s largest producer is currently pumping about 10.7 million barrels a day, Energy Minister Khalid Al-Falih told reporters in Moscow on Wednesday. That’s just shy of the record set in November 2016, before the kingdom and allies including Russia agreed to cut production to boost prices.
Power to the Permian? Spotty at Best, Outrun by Shale Boom
The Permian Basin, which produces almost 4 million barrels of oil a day, has expanded so quickly that suppliers of the electricity needed to keep wells running are struggling to keep up.
A Breakthrough for Hydraulic Fracturing
A revolutionary study of groundwater quality in the Ohio Middle Ordovician Utica Shale hydraulic fracturing play provides new evidence that “fracking” operations are safe to nearby water sources.
How Much Oil Can Saudi Arabia Really Pump? We’re About to Find Out
For the first time since Saddam Hussein invaded Kuwait in 1990, Saudi Arabia could face the ultimate petroleum test: pushing its complex network of oilfields, processing plants, pipelines, tank farms and export terminals to the limit, pumping every possible barrel of oil.
Mexico To Start Importing Light Crude Next Month
Mexico’s state-owned oil company Pemex plans to start importing up to 100,000 barrels of light crude daily, ending decades of oil self-sufficiency as declining domestic production meets rising energy demand.
Raymond James: Permian pipeline constraints for at least 12 months
The report by analysts at Raymond James says the West Texas region should see pipeline constraints ease by the end of 2019 and that price differences between oil sold in Midland and the Gulf Coast won’t be as severe as previously estimated.
The Oil And Gas Situation: The Great Permian Capital Reallocation Begins
A new report from the U.S. Energy Information Administration (EIA) indicates that the growing shortage of pipeline takeaway capacity in the Permian Basin of West Texas and Southeast New Mexico is resulting in some companies reallocating capital initially earmarked for Permian drilling to other areas in which they produce.
Oil Prices Jump On Saudi Arabia’s $80 Claim
Earlier this month, sources at OPEC and the industry told Reuters that Saudi Arabia was looking to manage the oil market in a way that would keep oil prices in the $70 to $80 band for the time being, as the Kingdom wants a floor under prices to monetize oil exports and at the same time keep a ceiling until at least the U.S. mid-term elections in November.
Company to invest nearly $300 million in West Texas natural gas pipelines
ONEOK plans to build four new pump stations, upgrade two existing pumps and add pipelines that would increase the system’s mainline capacity 80,000 barrels a day. The expansion is expected to be completed by the first quarter of 2020.
Why The U.S. Is Suddenly Buying A Lot More Saudi Oil
The cartel’s largest producer and exporter, Saudi Arabia, has been specifically targeting an increase in crude oil exports to the most transparent market, the United States, which reports crude oil imports and inventory levels every week.
10 Incredible Facts About American LNG Exports
For some reason there doesn’t seem to be much of a national discussion about the amazing shift in the American energy trade. Yet in a few short years the United States will become a net exporter of energy products and petrochemicals. That will erase an energy trade deficit that peaked at $321 billion in 2011.
Report: More than $90 billion in deals made in Permian Basin since 2013
The study’s authors said some of the most active dealmakers in the Permian Basin included Parsley Energy with 12, Diamondback Energy with eight, and Callon and Concho Resources, each with five deals.
Company starts up Permian crude oil-by-rail terminal
Vista Proppants and Logistics of Fort Wort signed the deal with JupiterMLP to ship crude oil by train from Vista’s Pecos loading facility.
How Can U.S. Help Its Neighbors? Export More Natural Gas
The price of natural gas is low, the supply is abundant and the technology in place to ship it safely worldwide. This cleaner and lower-cost electricity can help transform America’s neighbors.
U.S. offers 11 million barrels of oil as Iran sanctions kick in
That timing may reflect the White House’s concern over a tight oil market amid the renewal of U.S. sanctions on Iran, according to analysts at ClearView Energy Partners LLC. The Trump administration has asked allies to halt all imports of Iranian oil by Nov. 4, stoking global supply fears.
Oil exports exceed imports for first time on Texas Gulf Coast
In April oil exports in the Houston-Galveston port district exceeded imports by 15,000 barrels a day, and in May that difference grew to 470,000 barrels a day, according to data from the Department of Energy. The Houston-Galveston port district includes the ports of Houston, Texas City, Galveston, Freeport, Port Lavaca, and Corpus Christi.
Crude-By-Rail Could Save The Permian Boom
Crude-by-Rail (CBR) has been a savior for North American producers seeking higher returns for heavily discounted crudes caused by a lack of pipeline take-away capacity. And CBR, once again, is on the rise. North American shipments of petroleum and petroleum products are up over 10% year-to-date compared to 2017.
US Judge Orders Review Of TransCanada’s Keystone XL Pipeline Route
A federal judge in Montana has ordered the U.S. State Department to do a full environmental review of a revised route for the Keystone XL oil pipeline, possibly delaying its construction and dealing another setback to TransCanada Corp.
Saudi Arabia And Iran Reignite The Oil Price War
The rivalry between Saudi Arabia and Iran is becoming increasingly evident in the oil pricing policies of the two large Middle Eastern producers. The two countries are currently reigniting the market share and pricing war ahead of the returning U.S. sanctions on Iranian oil.
Multibillion-dollar deals show Permian’s dominance
The booming Permian Basin continues to reshape the Texas oil and gas industry, driving two more multibillion-dollar deals as local energy companies and investors move to cash in on producing, transporting and exporting the flood of crude and natural gas from West Texas.
BLOG: Reflections from My Visit to the Permian
While many oilfield workers are enjoying the higher wages and steady work, some West Texas residents are struggling with the adverse effects of the latest oil boom.
Locked Into Hedges, Shale Misses Out On Oil Price Rally
Shale drilling has historically been a loss-making proposition. The precipitous decline in output from shale wells meant that companies had to use the revenue from one well to drill the next well. Cash was continuously recycled back into new wells, and shareholders rarely saw any profits flow back to them.
BP buys big into Permian, U.S. shale with $10.5 billion deal
The sale represents a major turnaround for BP as it seeks to grow again after the 2010 Deepwater Horizon tragedy in the Gulf of Mexico. The deal includes all of BHP’s acreage in West Texas’ booming Permian Basin, South Texas’ Eagle Ford shale and Louisiana’s Haynesville shale.
West Texas company to build large Permian pipeline system
Midland-based Oryx Midstream Services II is adding an additional 180 miles to its under construction regional crude oil regional pipeline system. When complete the total system will include 400 miles of pipeline capacity, 650,000 barrels of pipeline capacity and 1.5 million barrels of crude oil storage.
U.S. crude oil output hits 11 million barrels per day for first time ever
The gains represent a rapid increase in output, as the data, if confirmed by monthly figures, puts the United States as the second largest producer of crude oil, just behind Russia, which was producing 11.2 million bpd in early July, according to sources.
U.S. To Slap Sanctions On All Iranian Oil Buyers
The United States intends to impose sanctions on all customers of Iranian oil, including China, the EU, and Russia, Treasury Secretary Steven Mnuchin said on Thursday, signaling that the U.S. will be working to cut off Iran’s access to the oil market.
EPA Scraps Detailed Plan To Force US Refiners To Blend More Biofuels
The plan would have boosted the renewable fuel blending obligation for the refining industry to 11.76 percent from 10.88 percent to offset volumes lost under the waiver program, which has been expanded sharply under President Donald Trump’s EPA, and keep overall blended volumes on target.
Oil is likely to jump another 10 percent this summer
Kloza, who accurately called the 2015 oil collapse, reiterated his bullish case for oil three days after the commodity hit its highest price since 2014. However, he rolled back the odds of an oil shock to $100 this year.
Oil CEOs Are Making Their Case Against Being Sued Over Climate
“It’s sort of bizarre that the users of our products say: ‘Well actually we didn’t want your product. So why did you force it on us?”’ Shell CEO Ben van Beurden told reporters on Thursday in London. “I don’t think also that in the end it will solve anything other than maybe redistributing wealth to a certain class of the economy.”
USGS: Two earthquakes hit near Pecos
The 52 quakes reported in the last year around Pecos trails the 352 earthquakes reported near Wellington, Kansas, in the last 365 days, according to earthquaketrack.com. The USGS reported a 3.2 magnitude earthquake near Wellington on Wednesday morning. Wellington is about 29 miles south of Wichita, Kansas.
Oil prices face inventory, spare capacity test
A survey of analysts from commodity pricing group S&P Global Platts this week revealed expectations of a 4.5 million barrel drain in U.S. crude oil inventories last week. Data published by the American Petroleum Institute was in line with the estimate from Platts.
Saudi King To Trump: We Will Boost Oil Output If Needed
The U.S. President has been very active in urging OPEC to start pumping more oil in a bid to tackle rising prices at the pump at home ahead of mid-term elections. He began by berating the cartel and Russia for keeping prices artificially high by quashing production, but later he changed the tone and began urging them to co-operate.
Japanese firm buys into Texas shale fields
Japan’s Oaska Gas said Friday it is buying into East Texas shale gas fields, acquiring a stake from Houston-based Sabine Oil & Gas.
Oil companies can’t be sued for climate change even though it’s real
In his order to dismiss the case, Judge William Alsup, who was presiding over the lawsuit, agreed that burning fossil fuels has contributed to global warming and sea level rise. But, in his opinion, lawsuits aren’t the best solution for this planetary problem. “Nuisance suits in various United States judicial districts regarding conduct worldwide are far less likely to solve the problem and, indeed, could interfere with reaching a worldwide consensus,” he wrote.
Kinder Morgan proposes $2 billion gas pipeline
The project is designed to utilize a 42-inch pipeline stretching about 430 miles from Waha to Gulf Coast and Mexico markets. Kinder Morgan reports that, given the level of producer inquiry, the company is evaluating the economic and hydraulic feasibility of a 48-inch pipeline to increase transportation capacity.
Goldman: Expect Another Bull Run In Oil
The expected increase in oil production will not leave the market in a situation of oversupply, and in fact, barring no further action, the world could still be short of oil over the next year.
Future of oil majors increasingly shaped by fate of global gas
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Equity Ramping Up to Target Unconventional Plays Including the Permian
The past few quarters have seen a marked resurgence in activity and investment in unconventional oil and gas basins in the United States. So much so that discussions about decline curves and pipeline capacity have also resurfaced.
OPEC Faces a Bigger Problem in Washington Than Trump’s Tweets
U.S. politicians have tried several times since 2000 to pass the NOPEC bill, but the White House opposed it — both George W. Bush and Barack Obama threatened to use their veto. The risk for OPEC is that Trump may break with his predecessors.
Pipeline constraints hit WT Sour, Intermediate prices
In recent weeks, companies such as Plains All American and Phillips 66 have set their posted prices for West Texas Sour almost $12 below what they pay for West Texas Intermediate. The posted price for West Texas Sour ended the week at $49.80, compared to $61.50 for West Texas Intermediate, according to Plains All American.
OPEC Likely to Agree on Production Increase Next Week
The Organization of Petroleum Exporting Countries and its allies are set for contentious meetings on June 22 to 23 as they review whether to unwind supply curbs put in place 18 months ago. While the producers able to revive production are ready to do so, there’s growing opposition from countries who can’t.
Oil boom bottleneck costs Permian investors $1 billion a day
Even as production soars in the Permian, dwindling pipeline space and a rail and trucking shortage have raised shipping costs, boosting the discount producers in the region take to offload their oil. The bottleneck benefits refiners who can buy cheaper crude and pipeline owners with extra space, but it’s dragging down explorers.
Gas Glut in Permian Sparks Dilemma Over How Much to Burn
With natural gas pipelines in the Permian Basin reaching 98 percent of capacity, Texas is weighing whether to keep intact or loosen strict state regulations that limit flaring, the process used by drillers to burn off excess gas pumped up along with their oil.
Oil Is Still Going To $80
Oil prices are taking a hit right now as the media and markets are fooled by a narrative that new oil supply is coming onto the market from Saudi Arabia and Russia. That is not the real story. In fact, it’s #fakenews.
Pipeline leaks test drone developers
Right now twelve drone and other technology developers are competing in a contest to see who can build the most effective device to find methane leaks, in a contest staged by the Stanford University Natural Gas Initiative and Environmental Defense Fund.
Permian-Based Tech Kicks Produced Water Recycling Up a Notch
A “very practical” approach that Permian operators have employed is recycling and re-using produced water, said Burnett. “No one is using fresh water aquifers’ groundwater for oil and gas operations. Brackish ground water and recycling and re-use fills the need for shalers.”
Saudi Arabia turns to Halliburton for its fracking needs
While Saudi Arabia is known as the world’s largest oil exporter, it has vast supplies of gas as well, but much of it is difficult to recover from shale rock and tight sand. The goal is to use the unconventional drilling and fracking technologies developed in the U.S., especially in Texas, to tap into those gas resources.
Oil Prices Mixed After This U.S. Shock; OPEC, Russia Eye ‘All Options’
Oil prices recovered some ground Wednesday after a surprise jump in U.S. crude inventories, which added another headwind to oil markets following suggestions that OPEC might increase production.
The $100 a barrel oil wager comes back to the options market
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months.
EPA Goes To War With California
The EPA is expected to announce a rollback of corporate average fuel economy to hold the numbers to 34.5 mpg. However, California has set their own limits and has been setting the rules for the other 49 states for many years.
Permian grows while overall oil rig count stays flat
The Permian added four oil rigs, but that was counterbalanced by losses elsewhere. The overall rig count grew by just one rig drilling for natural gas, while the oil rig count remained flat.
The numbers behind the Permian spotlight at OTC
“The main thing is, offshore is a long-term commitment,” said Maierdan Halifu, senior analyst at Rystad in Houston. If you make a discovery and sanction a project, you’re making a commitment for the next six or seven years. But shale is very flexible. You can drill wells relatively fast and get the return relatively fast.”
California Oil Dreams Fade as Iconic Beverly Hills Derrick Comes Down
Draped in flower-covered panels, the iconic derrick that towers over Beverly Hills High School has pumped crude for decades. Now, it waits to be dismantled, its demise mirroring the fate of oil drilling in California.
U.S. crude exports soar
Analysts attributed the surge to lower prices of U.S. crude compared to Brent crude produced in the North Sea. The price gap between Brent and the U.S. benchmark, West Texas Intermediate has widened from $3 a barrel in early March to about $6 a barrel this week, according the S&P Global Platts, a commodities research and analytics firm.
Permian On Track To Become Largest Oil Basin In The World
The Permian Basin has long been touted as the fastest growing shale play in the United States, but now its oil-producing prowess is being highlighted again as the Energy Information Administration forecasts the prolific basin’s May production to be 3.183 million bpd—an expected 73,000 bpd rise from April.
Bullish oil signs show Saudi Arabia’s $80 goal within reach
Apart from the technical indicators, investors will also be watching tumbling U.S. petroleum stockpiles, which now stand below their five-year average for the first time since 2014, and record American production.
Cyberattacks on the oil and gas industry are on the rise
“The whole cyber-threat landscape mirrors what’s happening in the world,” Scali said. “What we see is cyberattacks typically are geopolitically driven. I can’t think of an industry that would actually have more geopolitical factors and drivers behind it than oil and gas. Given the complexity of geopolitics around natural resources and prices, as well as the significance of petrochemicals and petrochemical products to the normal operation of a society and national infrastructure, it very much puts oil and gas at a risk of the geopolitical winds changing and, thus, organizations in that industry being targeted.”
Texas and Gulf of Mexico lead rig count jump
The overall rig count grew by five – up to 1,008 – courtesy of four rigs added to the Gulf and three in Texas. The loss of two rigs drilling for natural gas kept the rig count from growing higher.
Second shale revolution is on the horizon
Now a second revolution is on the horizon as operators prepare to re-enter those wells that launched the first revolution and implement secondary recovery projects. That can consist of operators reinjecting gas into the reservoir to restore pressure and then producing the additional crude and natural gas.
Exxon Mobil Did Not Suppress Climate Science, Federal Judges Say
New York State attorney general Eric Schneiderman’s climate fraud investigation into Exxon Mobil was dealt a notable, albeit indirect, blow in recent weeks as two different federal judges took issue with two of the legal arguments that have served as grounds for the investigation.
Texas LNG signs non-binding deals with Chinese, Southeast Asian buyers
They include five in China, two in southeast Asia and one in Europe, said Vivek Chandra, chief executive of Houston-based Texas LNG, declining to name the companies citing confidentiality reasons.
Climate Change Trial Starts on Rough Footing for Environmentalists
The “smoking gun” document in question proved to be a regurgitated summary of a 1995 report by the United Nations Intergovernmental Panel on Climate Change. At the time of its release, the report was subject to significant scrutiny by many in the scientific community because it was riddled with huge uncertainties.
Saudi Arabian companies plan massive Houston-area investments
Saudi Arabia’s premier energy companies are planning to invest billions of dollars in their Houston-area petrochemicals operations to take advantage of cheap natural gas feedstocks from West Texas shale fields.
Oil Prices Poised To Rise As Cycle Comes To An End
Oil price cycles tend to overshoot on both the upside and the downside. The price of oil never stays at the “Right Price” for very long because a small over-supply can push the price quite low and a small under-supply can cause a big price spike.
Oil Prices Poised To Rise As Cycle Comes To An End
Oil price cycles tend to overshoot on both the upside and the downside. The price of oil never stays at the “Right Price” for very long because a small over-supply can push the price quite low and a small under-supply can cause a big price spike.
Exxon Can’t Dodge State Climate Change Probes, Judge Says
Exxon claimed the evidence of political motivation includes meetings the attorneys general had with environmental groups and Schneiderman’s claim at the press conference that former President Barack Obama’s environmental agenda was being opposed by “morally vacant” forces.
The Bakken Is Booming Once Again
The Bakken was one of the first U.S. shale basins in which drillers started to pump oil via fracking. Its advantage is that the geology is better known than that of the Permian. Its disadvantage, compared to the Permian, is that its sweetest spots may have already been pumped out.
The Bakken Is Booming Once Again
The Bakken was one of the first U.S. shale basins in which drillers started to pump oil via fracking. Its advantage is that the geology is better known than that of the Permian. Its disadvantage, compared to the Permian, is that its sweetest spots may have already been pumped out.
Texas-Sized Gas Conundrum Plagues America’s Busiest Oil Play
The low-cost crude oil reserves buried in the Permian’s layers of shale have drawn explorers in droves, but roughly a third of the output from those wells is gas, according to RS Energy Group. As gas production from the play surges, however, pipeline capacity has failed to keep pace.
Concho Resources to buy RSP Permian in $8 billion West Texas merger
Perfectly positioned to capitalize off the Permian shale boom from its Midland home, Concho has grown rapidly as one of the leaders in domestic oil production. Concho was valued on Wall Street at more than $23 billion before the deal was announced Wednesday.
Oil Rig Competition Flares Up Amid Permian Boom
If the downturn taught drillers nothing else, it taught them to tighten their belts—to squeeze every last drop from what they already have. Gone are the loosey-goosey days of $100 oil. Drilling longer laterals is one of those ways that U.S. companies use to squeeze more oil from the rocks, by supersizing fracking, alongside with using more frac sand.
Mexico takes aim at its section of the Eagle Ford shale
Petróleos Mexicanos, known also as Pemex, said it signed an exploration and extraction contract with the Mexican subsidiary of Lewis Energy to invest $617 million in developing the Olmos field in the Mexican state of Coahuila.
At Houston energy conference, Texas is the focus of American oil optimism
The Permian Basin in West Texas is the driving force behind what some key energy players say is a coming milestone: The United States passing Russia as the world’s top oil producer.
A Small Oil Field In Oklahoma Is Seeing Big Bets From Producers
A little-known shale oil play in Oklahoma is attracting more drilling and investment as rising output from newer wells is enticing companies to boost production beyond the giant Permian basin in Texas.
OPEC Deal In Jeopardy As Iran And Saudi Arabia Square Off
Iran and Saudi Arabia are at odds over what to do next with the OPEC agreement, a conflict that could sow the seeds of the agreement’s demise over the course of the next year.
Opening ahead for oil from Texas shale
The United States is producing more oil than ever and it’s only expected to keep growing in the coming years, soon surpassing Russia as the global leader. The Permian accounts for about 25 percent of U.S. crude volumes and that percentage should keep rising.
Increased Revenue Sharing Of Offshore Energy Makes Good Consumer Sense
Revenue sharing makes sense for several reasons. It would make it easier for coastal states to close their own budget gaps and pass along some of the revenue to coastal communities. This would help build public support for an expansion of offshore drilling, which would bolster U.S. energy production, increase domestic investment, create jobs, and generate additional revenue for the federal government.
A ‘Major Second Wave’ of U.S. Fracking Is About to Be Unleashed
The International Energy Agency (IEA) said in a new forecast this week that growth in U.S. oil production will cover 80% of new global demand for oil in the next three years. U.S. oil production is expected to increase nearly 30% to 17 million barrels a day by 2023 with much of that growth coming from oil produced through fracking in West Texas.
44 Things You Didn’t Know About Oil
Whenever you see a headline like this, you know it will go along the lines of “did you know that petroleum stands for rock oil?” Yes you did, goes the reply of an overwhelming majority of readers. For this reason, the list below is one which holds the reader in high esteem, as a dear colleague on the road to broaden our knowledge of the oil industry. So here we go…
Analysts Expect Oil Price to Average $75 Per Barrel in 2019
Analysts at BMI project that Brent will climb even higher in 2020, averaging $78 per barrel, before plateauing at $80 per barrel over the course of 2021 and 2022. The Bloomberg consensus forecasts that Brent will average $65 per barrel in 2020 and $67.5 per barrel in 2021.
Let Ethanol Fend for Itself
The East Coast’s largest and oldest oil refinery is declaring bankruptcy. In its January 22 filing, Philadelphia Energy Solutions (PES) — whose facilities can process 335,000 barrels of oil per day — cited the economic burden of complying with the Renewable Fuel Standard (RFS) as a primary contributor to its fiscal woes. Regardless of the merits of PES’s claims, the RFS is an economic and environmental burden on the United States and ought to be repealed.
America’s Dangerous Foreign Mineral Dependence
Now that we’ve finally made progress in our long struggle for energy security — thanks to fracking and the shale revolution — we are sleepwalking into a dangerous import dependence on the minerals and metals that are the building blocks to our 21st century economy. Our reliance on imported minerals and metals required for production of cars and other consumer goods is at record levels.
OPEC Considers Moving the Goalposts
The 24-country alliance wants to reduce oil stockpiles to their five-year average, a goal that is almost at hand according to figures from the International Energy Agency. Yet Saudi Arabia and Russia now say that metric is flawed — distorted by years of excessively high supplies and patchy data outside developed economies.
Trump backs off proposal to cut royalty payments to Texas, other states for Gulf oil
In the budget proposal released Monday, the White House preserved the revenue sharing agreement, which was expected to deliver $275 million to Texas, Louisiana, Alabama and Mississippi this year.
New lithium extraction method could reuse fracking wastewater
Lithium is widespread in devices used today, from mobile devices to electric cars. In 2016, over 212,000 tonnes were consumed globally. With continuing technological advancements, demand for lithium has quickly outpaced the rate at which it can be mined or recycled.
U.S. retail gas prices finally moving lower
By market, the West Coast remains the most expensive in the country, with Washington state joining California with prices above the $3 per gallon mark. Four of the seven states in the country that saw an increase in gasoline prices were in this market, even though gasoline inventories are unseasonably high.
Saudi Oil Minister Tired Of Shale Hype
Al-Falih has clearly become annoyed at all the pestering from reporters and market analysts about the prospect of U.S. shale spoiling OPEC’s plans this year. He put on a brave face and dismissed questions about OPEC losing market share as U.S. drillers continue to ramp up.
America’s Natural Gas Hurdles
If the United States plans to continue imposing sanctions on Russia and its energy sector, it should consider how to approach output from projects like Yamal L.N.G. This is because the original source of such gas will become increasingly difficult to determine as the trade becomes more global.
Permian: Getting to look a lot like Saudi Arabia
The U.S.’s Permian Basin is looking like Saudi Arabia, with as much as 1 million barrels of spare oil capacity ready to go into production, according to Nansen Saleri, former head of reservoir management at Saudi Aramco, the world’s largest crude exporter.
New Englanders Have Only Themselves to Blame for Energy Price Spikes
Local and state opposition have blocked a number of natural gas pipelines in recent years, with the result that the region hasn’t benefited from the gas production growth in the Marcellus shale formation in nearby Pennsylvania.
Exxon Mobil plans to triple Permian production
Exxon Mobil is beginning to break out specifics of its spending plans after announcing Monday that it wants to invest $50 billion in the U.S. during the next five years, in part because of extra financial benefits gained from the new U.S. tax law.
Time to Protect Our Vulnerable Grid
Late last year, the FBI and Department of Homeland Security issued a “joint Technical Alert,” confirming that our nation’s nuclear, energy, water, aviation, and critical manufacturing sectors, as well as some government entities, have been the targets of repeated cyberattacks. Some succeeded.
Why the oil price is so high
PERHAPS the most vexing thing for those watching the oil industry is not the whipsawing price of a barrel. It is the constant updating of theories to explain what lies behind it.
U.S. oil output set for “explosive growth”: IEA
U.S. oil output is set for ” explosive” growth this year as prices rally, the International Energy Agency said on Friday. That was just one of a chorus of voices from Goldman Sachs group Inc. to OPEC itself warning of a looming output surge reminiscent of the “heady days” of the first shale boom.
The World’s Most Innovative Gas Field
Appalachian gas production has surged over eighty five percent (from 13,837 bcf/d to 26, 027 bcf/d) since 2014. The region has one the most productive and economic gas acreage in the country, and today it produces more gas than all other shale plays in the United States combined.
As oil majors move into Permian, cool efficiency replaces passion and guts
The majors have plans to drill thousands of wells, streamline operations, maximize production and create what they call frac factories to suck hundreds of thousands of barrels of oil a day from the 48 million acres of shale rock across West Texas and eastern New Mexico.
U.S. oil industry set to break record, upend global trade
The economic and political impacts of soaring U.S. output are breathtaking, cutting the nation’s oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak.
Oil Market Conquers Its Fears Over Shale
For more than three years, the ability of shale producers to rapidly dial production up or down has haunted the oil market, cutting off nascent rallies and keeping prices trapped around $50 a barrel or lower. Any move above that level stoked fears that producers would flood the market with oil once again, causing dramatic reversals in prices.
The U.S. Is on the Threshold of the Biggest Oil and Gas Boom Ever
The IEA said the U.S. will account for 80% of the increase in global oil supply between now and 2025, as shale producers find ever more ways to pump oil profitably even at lower prices. By the late 2020s, the U.S. will become a net exporter of oil for the first time since the 1950s.
Oil and gas deals in the Permian Basin could heat up in 2018
Oil prices are nowhere near the old peaks, but they have reached the highest levels since 2015. Moody’s Investors Service expects oil to stay in the $40 to $60 per barrel range this year. Their analysts said that price leaves room for strategic deals, with the “Permian Basin leading the way.”
Why Oil Is Up But Rig Count Is Not
Normally, you’d expect the rigs to return to the field in significant numbers as producers flush with added cash looked to boost output. But the weekly Baker Hughes tally has stayed remarkably still.
Trump proposal would allow oil and gas drilling along most of U.S. coastline
Secretary Ryan Zinke announced that under the five-year draft drilling plan released by the administration Thursday, more than 90 percent of the Outer Continental Shelf, which begins roughly 3 miles off the U.S. mainland, is under consideration for oil and gas lease sales beginning next year and extending through 2024.
U.S. oil production booms as new year begins
“For years and years, we thought we were running out of oil,” Verrastro said. “It took $120 for a barrel of oil to make people experiment with technology, and that has been unbelievably successful. We are the largest oil and gas producer in the world.”
Oil-Rich Venezuela Is Out Of Gasoline
In his address, Freites said that poor management led to the stoppage of 80 per cent of the country’s refineries. “Only Amuay and Cardón refineries are operative and that is nothing. They produce 40,000 barrels per day and the national demand is over 200,000 barrels of gas per day,” he said.
Commentary: States overreach in thwarting pipelines
Here’s how the system was designed. Congress gave an independent agency called the Federal Energy Regulatory Commission responsibility for regulating the buildout and operation of the interstate natural gas pipeline network. (In contrast, FERC has no role in the buildout of interstate oil pipelines.
Five oil signals to watch as 2018 pits OPEC v. shale
OPEC and its allies are heading into the second year of supply cuts to wipe out the global oil glut, while rising U.S. output is threatening those efforts. Geopolitical tensions also add a wild card to the market mix.
The Year In Deals: 10 A&D Eye-Catchers, Eyesores
After the intense Permian Basin deal competition of 2016 began to burn off its final stage in first-quarter 2017, U.S. E&P deals began to adjust to a brief period of weightlessness.
Tax Bill Boosts Oil, Gas Drilling _ and Renewable Energy
An agreement by House and Senate negotiators would open Alaska’s Arctic National Wildlife Refuge to drilling, while preserving tax credits for wind power and other clean energy. The bill also would extend a tax credit of up to $7,500 for purchases of plug-in electric vehicles such as the Tesla Model 3 and Chevrolet Bolt.
Oil prices in 2018: It’s all about Texas
Crude oil production out of the U.S. is expected to hit record levels next year, buoyed in part by OPEC supply curbs that have put a floor under prices. For analysts forecasting prices next year, there are two key questions: exactly how far American production grows and whether the global economy is strong enough to swallow those extra barrels?
The 5 Oil Factors To Watch In 2018
Oil prices are set to close out the year somewhere around 15 percent up, and the oil market looks more stable than it has in years. But what does 2018 have in store?
The Oil and Gas Industry Wakes Up to Blockchain
Blockchain serves as a shared database that eliminates the role third parties play in transaction processes and information sharing in a number of ways. Technology, inventories, contracts, payments and other data is shared directly between parties with encrypted connections. Commodity exchanges on blockchain, for example, can support oil and gas trading directly between parties anywhere in the world, while removing the role banks, brokerage firms or other intermediaries have traditionally played.
OPEC oil production declined again in November
The 14 member nations of the Organization of Petroleum Exporting Countries pumped 32.4 million barrels a day in November, down by 133,500 barrels a day compared with October and down 273,000 barrels a day compared with September.
Oryx building new 220-mile Permian pipeline
Midland-based Oryx, which primarily is owned by Houston private equity firms, said the 400,000-barrel-a-day network will run through Carlsbad, New Mexico and into West Texas to crude oil delivery points in Crane and Midland.
Keystone XL Approval Is Vital to U.S. Energy Dominance
Once a point of weakness, energy has quickly become one of the United States’ strongest assets. Only a decade ago America relied on foreign suppliers to meet nearly two-thirds of oil demand. It now produces almost 80 percent of consumption here at home.
The Man Behind The Oil Price Rally
The OPEC meeting is over and the cartel has extended production cuts throughout 2018. The decision is obviously crucial to supporting oil prices, but perhaps an even bigger story is the relentless strategy from the young Saudi Prince, Mohammed bin Salman, being played out both inside OPEC and in his own country.
The world’s astonishing dependence on fossil fuels hasn’t changed in 40 years
Every year since 1971, more than 80% of all our energy has come from fossil fuels. That’s still true today, which is surprising for two reasons. Most nuclear power plants came online between 1971 and 1990, and most renewable energy farms were built in the last 10 years.
Venezuela To Launch ‘Petro’ Cryptocurrency
In his latest stunt, Venezuela’s President Nicolas Maduro announced that the country wants to launch a cryptocurrency – the petro – backed by oil, diamonds and gold reserves.
Oil extends gains following OPEC deal on output cuts
Oil extended gains following a third monthly advance after OPEC and Russia agreed to prolong production cuts through to the end of 2018 in their fight against a global supply glut.
Oil hedges surge in third quarter as prices rise, Wood Mac says
U.S. oil companies in the third quarter locked in higher prices for more than twice the number of barrels they did in the previous three months as crude rose toward $60 a barrel, Wood Mackenzie says.
54 Things You Didn’t Know About Natural Gas
Like oil, natural gas is a prolific fossil fuel with many uses, however I feel that it floats unnoticed under the radar, particularly because it is so much easier to carpet bomb oil and coal into submission (as opposed to cute and cuddly natural gas) in the great anti-fossil fuel war of attrition.
Oil Prices Could Double If Middle East Conflict Escalates
Scarcity doesn’t really justify the upward price movement. There isn’t a shortage of oil in the world. But there could be, in the worst case, if missiles start flying between two of the world’s largest oil players: Saudi Arabia and Iran.
Keystone XL Opponents Make Last-Gasp Effort In Nebraska
Volunteers for Bold Alliance, an activist group that has been fighting the project since it was proposed nearly a decade ago, are knocking on doors in parts of the state to describe the threats that possible pipeline leaks could pose to groundwater.
Shale drillers to torment OPEC into next decade
OPEC sees no respite from shale’s onslaught before the second half of the next decade. Until then, the cartel will stick with the one weapon it still has to prevent another oil price collapse: austerity.
U.S. Oil Exports Setting New Records
U.S. exports of oil have been gradually rising since the export ban was lifted in late 2015, but have skyrocketed in the past month. The U.S. sent an average of just under 500 MBOPD abroad in 2016, which was, at the time, a record high.
Saudi Arabia needs $70/b oil next year to break even
Saudi Arabia will have to engineer a 34% increase in average oil prices next year if it is to balance its budget and avoid falling back on its dwindling foreign currency reserves, International Monetary Fund data showed Tuesday.
Oil prices continue streak, but ceiling may be approaching
The American Petroleum Institute reported after the market closed Tuesday that its data show crude oil inventories in the United States dropped about 5.1 million barrels. Gasoline storage levels fell 7.6 million barrels after motor club AAA said demand was resilient late in the season.
Haynesville Shale Gas: Overlooked, But Growing Again
Drilling activity in the Haynesville bottomed out in September 2016, at a mere 13 rigs. Since then, activity has more than tripled, with 46 rigs operating in the basin in September 2017. While this falls far short of the 160 rigs that were operating in the basin in the beginning of 2011, it is the highest rig count in the Haynesville since 2016.
U.S. oil exports boom, putting infrastructure to the test
Tankers carrying record levels of crude are leaving in droves from Texas and Louisiana ports, and more growth in the fledgling U.S. oil export market may before long test the limits of infrastructure like pipelines, dock space and ship traffic.
Exxon Mobil profits surge despite blow from Harvey
Exxon Mobil posted a 50 percent jump in profits in the third quarter amid rising energy prices — even after absorbing a $160 million blow from Hurricane Harvey, which crippled some of its Gulf Coast facilities.
Microseismic monitoring helps producers aim for sweetest of sweet spots
Being able to picture that subsurface rock is critical to allowing operators to know not only where the fractures are and how they break but where the frac fluids and sands are going in the formation and where the crude and natural gas is being drained.
A New Oil Crisis Is Developing In The Middle East
There, two significant events unfolded over the past week. Each is certain to have an impact on how crude oil trades in the near-term.
Judge allows Dakota Access pipeline to keep running
The $3.8 billion pipeline built by Texas-based Energy Transfer Partners has been operating since June 1, moving oil from North Dakota through South Dakota and Iowa to a distribution point in Illinois. From there it can be shipped to the Gulf Coast and potentially lucrative markets abroad.
Apache scouts out more drilling locations in Alpine High
More than half of those spots, around 3,500, are in a so-called wet gas window, with 1,000 in a dry gas region and another 500 in the oil-rich Wolfcamp and Bone Springs play.
The Future For Oil Supply And Prices After The ‘Amazon Effect’ Stimulates Shale 2.0
While access to cheap capital matters, as do government permits, impediments and subsidies, it’s technology that creates supply (and demand too, but that’s another story, covered elsewhere). The world would not be awash in oil if we were still using the drilling technology of 1917.
Permian Hot Deals Meet The Market’s Cold Shoulder
Buying a ticket to Permian Basin production—already an expensive proposition last year—now carries an additional surcharge in 2017—investors’ ire.
ExxonMobil Dethroned As Top Energy Company
Gazprom dethroned ExxonMobil as the top energy company in the world, according to the 2017 S&P Global Platts Top 250 Global Energy Company Rankings. The rankings measure the financial performance of energy firms on four key metrics: asset worth, revenues, profits, and return on invested capital.
The End Of OPEC Is Near
OPEC, which has far exceeded the average life of cartels, is on the brink of failure. Though cracks have been developing in the cartel since the start of the current oil crisis, the group has managed to stay together so far.
The Driving Forces Behind Today’s Oil Markets
This year, hurricanes, geopolitics, the OPEC deal and U.S. interest rates have all been major factors. Inventory levels and global supply and demand are then influenced by these factors.
Chevron To Invest $4B In Permian Production
Chevron will invest some US$4 billion in 2018 to increase its crude oil output in the Permian, a senior Chevron manager said at a conference on Monday, in a sign that the U.S. supermajor will continue to bet big on the most prolific U.S. shale play.
Permian ‘Super Basin’ Holds Up to $3.3 Trillion in Untapped Oil
IHS spent three years studying output data from more than 440,000 wells to calculate the amount of crude remaining within the sprawling, mile-thick rock formation that pumps more oil than any other U.S. field, the London-based researcher said in a statement on Monday.
Oil prices hold steady after 5% gain last week
U.S. oil prices settled little changed on Monday after posting a roughly 5% gain last week, as traders weighed prospects for an extension to the OPEC-led production cut agreement and expectations for U.S. crude output.
Schlumberger’s Gamble Could Change Oilfield Services Forever
The world’s largest oilfield services firm has decided that it should take an ownership stake in upstream oil and gas production, rather than simply provide the services for doing so.
U.S. Shale Producers Are The Worst Way To Play Oil’s Upside
While the significance of Pioneers GOR results is the subject of another article, what is truly important is the market reaction to Pioneer’s results. Not only did Pioneer sell-off, but the entire Permian producer complex sold off with it.
Oil Barrels Aren’t Real Anymore
When the first Pennsylvania wells began gushing in the late 1850s, prospectors scrambled to catch the erupting crude. Any container would do—whiskey or ale jugs, salt or turpentine vats. The best option was an old one: the casks still used today to age wines and whiskies.
Houston’s Energy Sector Confident Of A Quick Recovery
The disaster underscores the need for energy-importing states to rely on diverse suppliers rather than become overly dependent on any one source. This means diversifying imports from more countries and regions, utilizing various land and sea routes, and relying on a mix of energy resources – including LNG, piped gas, oil and renewables.
Where Harvey’s effects were felt the most in Texas
According to a preliminary analysis by the Federal Emergency Management Agency, at least 156,000 properties may have been affected by the floodwaters of Hurricane Harvey. At least 68,000 are located in Harris County.
Oil prices increase as Texas refineries start returning to normal
As much as 16 percent of total U.S. refining capacity was impacted by the storm, pipelines from the region operated intermittently and the federal government released oil from its strategic reserves in order to offset the market strains.
Will This Bring Big Oil Back To The Bakken?
Senator John Hoeven says that a new estimate would motivate oil and gas companies to continue investing in North Dakota and prompt more of them to come to the Bakken and Three Forks. That’s especially true now that even Big Oil is turning to shale, where turnaround times and returns are both faster than in large-scale projects.
No need yet to act on Harvey, International Energy Agency says
The International Energy Agency sees no reason for it to intervene in the U.S. effort to prop up an energy market hammered after Harvey wiped out production centers as a hurricane earlier this week.
Oil market shrugs off U.S. inventory decline amid Harvey
Analysts said if not for the oil glut that has plagued global energy markets and Houston’s petroleum companies since summer of 2014, the impact of Harvey could have squeezed supplies harder and led to longer fuel shortages.
The Delaware: Wide Open Secrets
The lonely character of the Permian Basin seems more suitable to horses and stargazing than sophisticated drilling, but it’s the subterranean mystery of the place that has attracted so much money and manpower to Texas and New Mexico.
Drillers evacuate Gulf platforms, shut in wells in wake of Harvey
Oil companies have evacuated personnel from about 15 percent of the manned oil-production platforms and half of the working drilling rigs in the Gulf of Mexico in the wake of Hurricane Harvey, federal officials said Saturday.
Energy Transfer sues Greenpeace, Dakota Access protesters
Energy Transfer claims groups like Greenpeace, Earth First! and individual protesters resorted to “mob thuggery” and intentionally misleading information to halt the construction and damage Energy Transfer’s “critical business and financial relationships.”
Hurricane Harvey forces some refineries closed, pushes gas prices up
More than 25 percent of the nation’s gasoline is refined along the Texas Gulf Coast. More than 50 percent comes from the entire Gulf Coast region, including inland Texas and Louisiana, according to the U.S. Energy Department.
Mexico Looks to Replicate U.S. Shale Success
The Burgos Basin is located directly south of Texas with mostly natural gas fields. Since beginning exploration in 1942, PEMEX has discovered about 225 fields in the area. The basin also includes the Mexican portion of the Eagle Ford, which extends miles beyond the border.
Russia Claims To Have Invented Alternative To Fracking
Russian scientists and local oil field services companies claim to have created a technology for thermochemical gas fracturing that could be an alternative to hydraulic fracturing and could increase oil production by between 1.7 and 6 times, Russia’s news agency RIA Novosti reports, citing the University of Tyumen’s press service.
Texas rig permitting nearly doubles from 2016
The Railroad Commission of Texas, the state energy regulator, said it issued 1,011 original drilling permits last month, compared with the 631 issued in July 2016. Of those, 893 were for drilling new oil or natural gas wells.
Concho Pays $600 Million To Extend Midland Basin Laterals
The deal came with some inflation on land prices. Concho bought the Mabee Ranch as part of $1.62 billion purchase of 40,000 acres from Reliance Energy in October 2016. That acreage cost roughly $25,000 per acre.
OPEC Swings to Panic Stations
OPEC’s job of rebalancing the oil market has just got a lot more difficult. Not only is there a lot more oil in storage than it previously thought, but the group will need to make deeper output cuts to drain the excess.
New York Times guilty of large screw-up on climate-change story
Though it may be the case that certain scientists maintain such fears, that’s a pretty tough position in light of the fact that the report “was uploaded by the nonprofit Internet Archive in January” and publicized by the New York Times in August.
BP finds prolific shale gas source in New Mexico
The British oil major said Monday one of its natural gas wells in the Mancos Shale reached the region’s highest production rate in 14 years, pumping 12.9 million cubic feet of gas a day in an initial 30-day period.
West Texas fights over a scarce resource
West Texas’ network of aquifers are interconnected; water pumped from one can reduce flow in another. Some worry that all of these proposed water wells could dry up aquifers that supply West Texas ranches, farms and cities.
Platts: OPEC balancing act is starting to wobble
A survey of output from OPEC members from S&P Global Platts found Libya and Nigeria combined to produce 590,000 barrels of oil above October levels. Both countries are exempt from the agreement so they can steer oil revenue toward national security efforts.
Houston startup plans $2 billion Permian pipeline
Houston pipeline startup Permico Energia hopes to build a $2 billion natural gas liquids pipeline across Texas from the booming Permian Basin to refining and port access near Corpus Christi.
Have Oil Majors Really Adapted To $50 Oil?
The oil majors, by and large, have posted dramatically better financial figures for the second quarter, a sign that their cost reduction efforts are bearing fruit. They are no longer in the red, but at the same time, there is little chance that they will return to aggressive growth.
Another company, Wolfcamp Water Partners, enters West Texas water biz
A key to the Capitan’s use, said Darden, is the low salt content of the water there. Residents and politicians are encouraging oil and gas companies to use salty water, called “brackish,” for oil and gas production, saving fresh water for drinking and agriculture. But water that is too salty doesn’t work well in hydraulic fracturing operations.
The Bakken Is Bustling Again
In 2014 there were around 200 rigs were drilling for oil in the Williston Basin. By March 2016, the rig count had fallen to 31. That ultimately fell to a low of 22 rigs in May 2016, but the number has since rebounded back to more than 50 rigs. That, in turn, has resulted in a small rebound in North Dakota’s oil production.
Exxon doubles profit, expanding operations in Permian Basin
“The Permian ranks among the top tier investment returns in our global portfolio,” said Jeff Woodbury, a spokesman for Exxon Mobil, in a conference call with investors. “We have successfully offset inflationary pressures through efficiencies” and higher output for each well the company drills.
Louisiana Offshore Oil Port Looks to Begin Exporting U.S. Crude
The Louisiana Offshore Oil Port (LOOP) is located about 20 miles off the coast of Louisiana, directly south of New Orleans. Standing in 110 feet of water, LOOP is the only U.S. port that can handle the massive oil tankers preferred in global oil shipping.
Study finds Permian producers heavily hedged
Oil and natural gas operators focused on the Permian Basin began the year announcing ambitious production targets for 2017. And they’ve been as aggressive in their efforts to lock in support for those targets.
Shale Oil: A Trend That Is Redefining The Cost Of Supply
I must note that the industry is yet to find a generally accepted term to describe this approach. Encana Corp. (ECA) calls this “developing the cube.” QEP Resources (QEP) uses the term “tank-style development.” Laredo Petroleum (LPI) calls its landing zone optimization system the “Earth Model.” However, all operators have the same objective: to produce more oil with less money – and it appears that full-volume stimulation is a must in this regard.
Permian oil industry has bounced back from price downturn
Drilling rigs increasingly dotting the Permian Basin horizon, along with a paper blizzard of drilling permits from the Railroad Commission, are signs the area’s oil and gas industry is rebounding from the most recent price collapse.
NOAA Study: Agriculture and Wetlands Triggered Earth’s Methane Rise—Not Oil & Gas Operations
Recent increases in atmospheric methane are not because of fossil fuels after all, according to a recent release from the National Oceanic and Atmospheric Administration (NOAA).
Apache, oil drilling, become part of life in Balmorhea
Apache, a Houston oil and gas company, announced almost a year ago that it had discovered 15 billion barrels of oil and gas under 350,000 acres here in West Texas. Many worried: Visitors from near and far flock to the famous spring-fed pool at nearby Balmorhea State Park. If oil and gas drilling and hydraulic fracturing broke into the springs and ruined the pool, what, they asked, would become of this 500-person town, already struggling to make ends meet?
U.S. shale firms get creative to pump more oil
U.S. shale producers survived an oil price crash and confounded OPEC’s efforts to drain a global glut by employing innovative drilling and production techniques. Now, some of these producers are turning to creative investments to pump more oil.
Apache’s Alpine High won’t use more water than a typical farm
The Houston oil production company announced last year that it had discovered a vast new oil and gas field in southern Reeves County, surrounding the small town of Balmorhea and its famous spring-fed pool. It named the find Alpine High. Soon after the announcement, some residents and conservationists there began protesting the development, worried about the impact of oil and gas drilling on their water and land.
Permian Basin Operators, Not OPEC, will Determine Normal Oil Prices from Here Out
Because 40% of all U.S. onshore rig count is presently in the Permian basin—operating rigs—and with each completion, the amount of production from the basin will increase. So the level of drilling activity will essentially set the Permian breakeven price, and the Permian breakeven price will set the level of drilling activity.
The Major Wildcard That Could Send Oil To $120
The latest blockade of Qatar, which has mushroomed into a regional political crisis in the Middle East, would have caused a severe spike in oil prices in the past, even though Qatar is a relatively minor producer. However, the simmering standoff not only failed to register, but occurred at a time of falling oil prices.
Oil Exports, Illegal for Decades, Now Fuel a Texas Port Boom
For 40 years it was virtually impossible to sell American oil to any country except Canada because of an export ban that was a bedrock of United States energy policy.
‘Apple Of Oil’ Says New Permian Wells ‘Shattered’ Records
“EOG’s Whirling Wind wells shattered industry records in the Permian Basin,” said Chairman and CEO Bill Thomas in a statement, noting they set new records for 30-day initial production from Permian Basin horizontal oil wells. “Our advanced technology and proprietary techniques are leading to break-through well performance across our diverse portfolio of premium plays.”
Qatar blockade underscores America’s world opportunity in natural gas
In recent weeks, geopolitical uncertainties have sent tremors through international energy markets, underscoring just how fragile countries’ access to critical resources are.
U.S. oil exports are blowing past expectations
U.S. crude oil exports have exceeded 1.2 million barrels a day, per the Financial Times. That follows the lifting of a 40-year-old ban on crude oil exports in 2015, and far exceeds baseline projections.
Apache begins hiring for Alpine High pipelines
Apache recently completed the first section of a 30-inch natural gas pipeline, allowing the company to send natural gas to market for the first time and clearing the way for more wells and more oil production.
The US shale oil industry is booming despite low crude prices
Crude oil prices may be falling, but that hasn’t been enough to stop the resurgence in the US shale oil industry. According to oil services firm Baker Hughes, the number of rigs deployed in the US rose for a 23rd consecutive week last week, marking the longest stretch of continued growth seen in three decades.
Permania: 100 Years In The Permian Oil Fields Of Texas And New Mexico
There are several huge oil fields famous throughout the world. The Ghawar field in Saudi Arabia, discovered in 1948, is considered the biggest and the best known, producing about 5 million barrels per day, with estimated reserves exceeding 70 billion barrels. And this is above the 70 billion or so already extracted. Ghawar is why Saudi Arabia leads OPEC. But the Permian Basin, a 300-mile expanse from west Texas to southeastern New Mexico, is headed to becoming the biggest in the world.
West Virginia Groundwater Not Affected by Fracking
Fracking has not contaminated groundwater in northwestern West Virginia but accidental spills of fracking wastewater may pose a threat to surface water in the region, according to a new study led by scientists at Duke University.
US Will Not Issue Drilling Waivers To Russia Sanctions
The United States and European Union imposed economic sanctions on Russia over its annexation of the Crimea region in 2014 and its role in the conflict in eastern Ukraine. The sanctions forced Exxon, the world’s largest publicly traded oil producer, to wind down drilling in Russia’s Arctic in 2014.