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.