INDUSTRY NEWS
Saudi Arabia pushes for at least $70 oil
Budget needs are forcing Saudi Arabia to push for oil prices of at least $70 per barrel this year, industry sources say, even though U.S. shale oil producers could benefit and Riyadh’s share of global crude markets might be further eroded.
Bloomberg’s Imaginary ‘Demand Problem’ For U.S. Natural Gas
I tell people to view new U.S. natural gas demand as a giant triangle: in order of incremental potential, 1) exports, 2) power generation, and 3) manufacturing (industrial sector). Although to be sure, demand creation is a constant process for all energy sellers, especially true for a U.S. natural gas industry that has seen domestic production surge 55% in the shale-era since 2008, up 12% in 2018 alone (i.e., new supply has overwhelmed).
Texas LNG Project Clears FERC Hurdle
The company’s project fact sheet notes that Brownsville is one of the closest U.S. ports to the Panama Canal, which would facilitate trans-Pacific access to customers in Asia. Texas LNG Brownsville’s two-train, 4 million tonnes per annum facility would receive natural gas from the Agua Dulce trading hub in South Texas. The company has stated that the Permian Basin associated gas it would liquefy is cheaper than the Henry Hub-indexed gas that would feed into other Gulf Coast terminals.
Houston leads as Texas ships out 80% of nation’s crude exports
All of the Texas Gulf Coast accounts for about 80 percent of the nation's crude shipments with the Beaumont and Corpus Christi regions ranking second and third nationwide, according to a new report from Morningstar energy analyst Sandy Fielden.
How The Californian Oil Boom Died
Many people are unaware of California’s importance in the U.S. oil industry. In fact, 100 years ago California was the top oil producer in the U.S., responsible at one point for nearly 40 percent of U.S. oil production.
Oil Majors Are Taking Over The Permian
Small and medium-sized shale companies were the ones to really develop the Permian in the early years. The oil majors were late to both the shale party in general, as well as to the Permian specifically.
U.S. will soon surpass Saudi Arabia in petroleum exports
While Saudi Arabia will remain the top crude oil exporter, the U.S. is destined to usurp the kingdom as soon as late 2019 when it comes to overall liquid petroleum exports, including fuels and some natural gas liquids, according to a new report from the Norwegian research firm Rystad Energy.
Even barbers are getting rich in the Permian Basin
An oil boom that has taken hold over the Permian Basin is leading to so much economic activity and expansion, the area can barely keep pace. Barbers in Pecos are charging a minimum of $40 for a haircut and are busy for hours without stopping, according to WSJ.
Saudi Arabia Oil Exports To U.S. Nosedive
For the whole of January, Saudi Arabia exported just 2.69 million barrels of crude to the United States. The decline follows Saudi Arabia’s decision to cut its crude oil production—primarily heavy crude grades—by more than it agreed to at the December OPEC+ meeting as it seeks higher oil prices.
Does The U.S. Oil Rig Count Still Matter?
Beyond just the number of rigs, increased efficiencies and lower costs for producers explain why U.S. crude production has soared to record highs of nearly 12 million b/d now.
The World’s Largest Battery To Power The Permian
It’s hard to miss the ironic interrelation between the booming Texas oil production and the rise of renewables in the most prolific U.S. shale basin. As the West Texas electricity grid strains under surging demand to power oil and gas operations, some of the new capacity installations in the coming years, including the world’s biggest battery according to Bloomberg, will help provide more electricity to the grid from solar power.
Why oil prices dropped and why they won’t stay down long
The recent sharp decline in oil and gasoline prices may feel like a pleasant surprise to consumers, but it is a symptom of what was unsustainable monetary policy and ongoing slowing global economic activity. Not surprisingly, it took a toll in 2018 on stock performance for energy-related stocks.
Oil and Gas Stepping Up Its Exploration Game
“Renewed optimism in exploration activities is anticipated in 2019, with operators from various segments aiming for multiple high-impact campaigns – both onshore and offshore – in essentially all corners of the world,” Rystad Energy Senior Analyst, Rohit Patel, said in a company statement.
It’s Full Speed Ahead For U.S. Natural Gas Exports
Now poised for the biggest year ever in 2019, 2018 was a record breaking year for the emerging U.S. natural gas export business. Most recent U.S. Department of Energy data indicate that LNG exports hit a record of nearly 110 Bcf in November 2018. This is a 35% jump from November 2017, with so much more to come: "U.S. Liquefied Natural Gas Hits Record Highs Again. This year, we will pass Malaysia to become the world's third largest LNG exporter (Australia could surpass Qatar to take the top spot).
U.S. Sanctions, OPEC Cuts Create Rare Oil Price Shakeup
Due to tighter supply of medium and heavy sour crude oil, Middle Eastern benchmarks for sour crude grades have been trading higher than Brent Crude prices since the beginning of February in a rarely seen development in global oil prices.
Permian Basin to Corpus Christi pipelines get final federal permits
Construction for the EPIC Crude Oil Pipeline is expected to be completed by January 2020. The 650-mile project will move crude oil and from seven terminals in the Permian Basin and Eagle Ford Shale of South Texas to a facility in Robstown.
The Permian Has A Flaring Problem
A report from the Environmental Defense Fund (EDF) found that the rate of flaring in the Permian basin is twice as high as the industry has been reporting. In 2017, the amount of natural gas that was flared could have met the gas needs of Texas’ seven largest cities. Put another way, “that’s roughly $322 million dollars of natural gas that went up in smoke,” EDF concluded.
Oil Has Short-Sellers on the Run
With Brent crude enjoying its best month in almost three years, money managers slashed bearish bets on the global benchmark price by another 27 percent in the week ended Jan. 29, data showed Friday. The flight of the pessimists continued to be a dominant factor in oil’s rebound, with bets on a price increase rising by only 4.5 percent.
World leaders are flocking to Davos this week in private jets that are more lavish than ever
The Air Charter Service estimated that up to 1,500 private jets will fly to and from Davos this week, as The Guardian reported on Tuesday. That's 11% greater than the number of private planes used in 2018 to attend the conference at the Swiss resort.
Apache Corp. Discovers That No Good Deed Goes Unpunished
Balmorhea is home to a huge, spring-fed pool at Balmorhea State Park, which serves as a summer tourist attraction for the area. The online story is accompanied by a photo of a section of the pool, which is currently closed for repairs, something that’s going to happen from time to time in a pool that covers 1.3 acres and is almost 85 years old. But, when taken together with the online header, the impression is given that damage to the pool’s wall was caused by oil and gas activity.