INDUSTRY NEWS
Oil prices may not drop even as companies drill more
The uptick in drilling and fracking could push U.S. production up by 1 million barrels a day by the end of the year, said Al Salazar, vice president of intelligence at Enverus. But it still may not be enough to make up for the Russian production that’s been taken off the market by economic sanctions, he said.
Germany Could Ban Russian Oil In ‘Days’
Germany has already cut Russian oil imports by over 20%, with officials now spreading optimism that it could be only a matter of days before the country is capable of a total embargo on Russian oil.
Why Are the Majority of Leased Offshore Federal Waters Non-Producing?
“Finding oil and gas is a prospective business and companies need to cast a wide net of lease blocks to identify and develop commercially viable discoveries. Non-producing leases are not ‘idle’. Just because there is no surface activity occurring at a lease block does not mean it is ‘idle’,” Milito said.
The Problem With America’s LNG Boom
Many projects for LNG export plants are under consideration or are already approved by authorities but awaiting final investment decisions (FIDs). While current LNG demand, especially in Europe, remains strong and is likely to draw cargoes that would have typically gone to Asia, Europe’s push to free itself from Russian gas includes reducing gas use in the long term and doubling down on renewables to reach its climate neutrality goal by 2050.
U.S. Refiners Plan Rare Move Heading Into Summer
Instead of focusing on boosting the production of gasoline in the summer driving season, this year U.S. refiners will be looking to raise diesel and jet fuel runs, as the global market of distillates is very tight following the Russian war in Ukraine and supports high refinery margins for those products.
RRC: Spike in new permits taking place
The commission issued 1,035 permits to regions across the state. That was a 36.9 percent increase since December and 51.7 percent growth since March 2021.
Tougher Environmental Rules Snap Back In U.S. Oil Infrastructure Projects
President Biden has reintroduced stringent environmental assessment rules for any large-scale project, including pipelines and oil wells.
Permian Drilling Permits Hit All-Time Monthly High
Horizontal drilling permits for new wells in the Permian Basin hit an all-time high in March, with 904 total permit awards, driven by elevated oil prices and production demand, Rystad Energy said.
U.S. Natural Gas Prices Hit Highest Level In 14 Years
The benchmark U.S. natural gas price soared by more than 7% early on Monday to hit the highest level since the second half of 2008, as Europe races to buy non-Russian gas after Putin’s invasion of Ukraine.
Biden Shrinks USA Land Open for New Oil Drilling
The shift is part of a Bureau of Land Management plan to resume selling drilling rights on government-managed federal lands concentrated in the western U.S. When the government holds those auctions, expected later this year, roughly 80% less land will be available for oil and gas leasing, the Interior Department said.
Permian Basin drilling production likely to surge soon after permits hit ‘all-time high’ number
With crude prices again above $100 and global demand soaring, the stars are aligning for a production surge in the Permian Basin of Texas, foreshadowed by what analysts say is an “all-time high” number of drilling permits.
Britons Back Russian Oil Ban Even If Their Energy Bills Surge
Almost 70 percent of Britons believe that not using Russian oil and gas in the UK is the right thing to do after Russia’s invasion of Ukraine, even if not using Russian energy products raises their energy bills even further, a new poll showed on Friday.
U.S. Energy Grid Faces Huge Problems Amid Push To ‘Electrify Everything’
The Associated Press (AP) story covered two pages and began with a big headline, “Storms batter aging power grid.” The accompanying pictures showed homes awash and power poles atilt. The gist of the story was that more powerful storms are here to stay and the power grid needs an upgrade.
U.S. gas storage emptied by exports to Europe and Asia
U.S. gas prices have climbed to their highest level in more than a decade as strong demand from overseas has emptied storage and left inventories well below average for the time of year despite a mild winter.
The West Is Suffering The Consequences Of Poor Energy Decisions
During the last few years, the EU has doubled down on its ambition to become the world’s first net-zero region. It has built up massive amounts of renewable energy, has slated huge investments in green hydrogen, and has been adopting policy after policy to discourage the consumption of fossil fuels.
Oil Worker Shortage Hits Canada
According to a release in August 2021 by Statistics Canada, the country’s statistical office, the Canadian oil and gas industry employed over 72,800 workers in 2019. This was said to be down from approximately 89,600 workers in 2012, “when jobs in the industry peaked”.
Don’t Blame Big Oil For High Gasoline Prices
The single biggest component—out of four—in determining the price of gasoline in America is the price of crude oil on international markets. In February 2022, the price of crude made up as much as 61 percent of the price American drivers paid for a gallon of regular gasoline, per EIA data.
Russia Expects $9.6-Billion Windfall From High Oil Prices In April
Despite the self-sanctioning of many European buyers of Russian oil, Moscow continues to export its oil, and Europe continues to pay for and import Russian natural gas. While the U.S. banned imports of all Russian energy exports, including oil, liquefied natural gas (LNG), and coal, the European Union hasn’t had the luxury to do so, because it depends on Russian oil for around one-fourth of its supply and on Russian gas for some one-third of its gas consumption.
Stalled Progress on 5-Year Offshore Oil Leasing Program Threatens U.S. Energy Security
In warning Americans about the looming economic consequences ahead of the invasion of Ukraine by Russia, President Joe Biden said “my administration is using every tool at our disposal” to protect consumers and businesses from rising energy prices.
Venezuela Scrambles To Find Oil Tankers As It Expects Sanction Relief
Reuters cited three unnamed sources and a document as saying the state-owned oil company PDVSA was in talks to buy several oil tankers after Washington earlier this month sent a high-level delegation to Caracas to discuss potential sanction relief.