INDUSTRY NEWS
Plains, ExxonMobil start on pipeline from West Texas to Houston
The 36-inch-diameter pipeline will carry more than 1 million barrels of oil and condensate per day. Energy analysts previously said the project could carry a $2 billion price tag.
EPA opens up sales on higher ethanol content gasoline, in blow to refineries
The EPA had long restricted sales of the fuel during summer months to prevent against potentially dangerous increases in air pollution. But under pressure from Midwestern farmers, whose corn crops feed ethanol production, the Trump administration announced last year it planned to waive the restriction.
The Next Permian Takeover Target
The next most likely takeover target in the Permian right now is Endeavor Energy Resources, according to Wood Mackenzie (WoodMac). “The storied Permian producer has been on the radar for months as an attractive buy for Shell,” WoodMac said in a company statement.
The Silence Before The Storm In Oil Markets
With oil production plunging in Venezuela and Iran, tension in the Middle East at its highest point in years, and the threat of further outages in Libya, why are oil prices not trading higher?
Pipeline project running through Hill Country raises concern
The pipeline will cut through multiple counties near Austin including, Hays, Blanco, Gillespie, and Caldwell. Many landowners in those counties have already been contacted by the gas company and warned about the potential project.
The Overlooked Factor That Could Send Oil To $50
Currently, there are a myriad of dynamics at play in global oil markets for the Saudis to grapple with. First, they have to make a decision by next month whether or not to keep the second, and current OPEC+ production agreement to remove 1.2 million bpd of oil from markets in place or not. However, many of the factors currently affecting oil markets are out of Saudi control.
New York Rejects $1B Shale Gas Pipeline
The decision comes as states tussle with the Trump administration over pipelines designed to carry abundant natural gas to the Northeast from shale basins in Pennsylvania, Ohio and West Virginia. President Trump has taken action to speed up approval of interstate gas conduits, last month signing an executive order that aims to short-circuit state regulators who have held up projects by denying necessary permits amid environmental concerns.
3 Things To Know About The U.S. Oil And Natural Gas Industry
As it turns out, contrary to wide assertions, U.S. crude production didn’t peak in 1970, and U.S. gas production didn’t peak in 2005. The American shale boom itself is a testament to the non-stop evolution of oil and gas operational efficiencies and technologies. The U.S. oil and gas industry is stronger today than it’s ever been.
Exxon, Chevron Leading The Permian Oil And Natural Gas Surge
This month, the Permian will account for ~35% of U.S. crude production and ~17% of natural gas supply. Oil and gas extraction in the play has more than doubled since 2016.
Why An OPEC Oil Supply Surge Won’t Happen
While most analysts are optimistic about OPEC leader Saudi Arabia being able to fill the gap left by lower Iranian oil exports, reality could be totally different. Looking at the ongoing discussions between OPEC’s two key members, Saudi Arabia and the UAE, there are no real signs that the Kingdom of Oil will be willing to increase its overall oil production to keep prices at the pump low in oil importing nations.
Railroad Commission, Kinder Morgan sued over route of Permian Highway Pipeline
The lawsuit, filed in state District Court in Travis County, asks a judge to block construction of the 42-inch pipeline designed to move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Katy Hub near Houston. That's roughly enough gas to fuel about 10 million U.S. homes per day.
Permian Drilling Record Reported
In a written statement, Surge noted that its wholly owned Medusa Unit C 28-09 3AH was successfully drilled to a total measured depth of 24,592 feet (total vertical depth of 7,102 feet). Based on IHS and Drillinginfo databases, the well is the longest known lateral in the Permian, the company noted. Surge added that the well was drilled 100 percent in zone of the Wolfcamp A formation with a total lateral length of 17,935 feet, or 3.4 miles.
U.S. to eliminate Iran oil waivers after May 2 expiration
The Trump administration won’t renew waivers that let countries buy Iranian oil without facing U.S. sanctions, according to four people familiar with the matter, a move that roiled energy markets and risks upsetting major importers such as China and India.
Energy use hits record high last year
Consumption of every type of energy source increased last year save one - coal, according to the government. Consumption of coal in the United States fell for the fifth consecutive year.
Exxon and Others Say U.S. Government Sold Toxic Crude Oil
The American energy giant said some of the oil it purchased last year from the Energy Department’s Strategic Petroleum Reserve, or SPR, contained "extremely high levels" of hydrogen sulfide, according to emails obtained by Bloomberg under the Freedom of Information Act. In some cases, the gas level was 250 times higher than government safety standards allow.
The US Biofuel Mandate Does More Harm Than Good
Ethanol’s use can be beneficial in a variety of areas, but the federal mandate far overextends those uses. Instead of protecting the environment, the current ethanol mandate is causing a considerable amount of environmental blowback.
Saudi Aramco’s Breakeven Oil Price Is Higher Than Expected
Saudi Aramco, the national oil company of Saudi Arabia, is by far the largest oil company in the world. The company produces around 13% of the world's oil, but its business operations have been notoriously opaque for decades. It has often been stated that the company has plenty of low-cost legacy wells that drop its overall production costs to $10 per barrel, or even lower.
Brent steadies below $70 amid stockpile surge, trade optimism
Oil has climbed about 30 percent in London this year with consensus growing that the Organization of the Petroleum Exporting Countries and its allies’ output-cut deal will probably be extended. Unplanned supply losses from Iran and Venezuela are also increasingly tightening the market. But as clouds linger over the global economy, and a new flood of shale-oil pours in from the U.S., the rally has failed to reach last year’s highs.
Infected U.S. Shale Oil Is Being Turned Away by Asian Buyers
As various types of crude pass through the supply chain from inland shale fields spanning Texas to North Dakota, they risk picking up impurities before reaching Asia -- the world’s biggest oil-consuming region. Specifically, refiners are worried about the presence of problematic metals as well as a class of chemical compounds known as oxygenates, which can affect the quality and type of fuel they produce.
Pipeline additions boost Permian Basin prices
Permian Basin crude prices have been depressed for months because there haven't been enough pipelines to take all the West Texas crude to the Gulf Coast. Some of those pipeline constraints are now easing, and prices for Permian crude are finally starting to gain some ground, an analysis from the U.S. Energy Information Administration suggests.