INDUSTRY NEWS
How OPEC Is Helping U.S. Oil Reach a Tipping Point
The U.S. Energy Information Administration has published its first detailed monthly oil forecast for 2020 and it shows something that should strike fear into the hearts of OPEC ministers — from the fourth quarter, America will export more oil than it imports.
Oil Gloom Turns to Boom as the Market’s Worst Fears Fade Away
The shift in sentiment culminated with the global benchmark closing at its highest in eight weeks on Friday after China was said to propose a ramp-up in imports from the U.S. to end a trade war between the world’s two largest economies. Signs from the U.S. Federal Reserve that it won’t rush to raise interest rates have also spurred investors to reverse bets that oil would fall while the dollar would rise.
IEA Sees Oil Demand Growth Defying Economic Slowdown
Global oil demand remains on course to be stronger this year than in 2018 as a boost from lower fuel prices counters slowing economic activity, according to the International Energy Agency.
U.S. Shale Oil And Natural Gas, Underestimated Its Whole Life
Back on June 21, 2011, The New York Times ran a now forgotten piece also questioning the viability of shale: "Insiders Sound an Alarm Amid a Natural Gas Rush." Read the article for yourself, but it cited the Federal Reserve Bank of Dallas and a few geologists on their skepticism over the survival of the U.S. shale industry. To them, the bubble was about to burst.
The World’s Most Productive Oil Field
In its most recent report, the USGS has included the Wolfcamp shale and Bone Spring Formation of the Delaware Basin portion of the Permian Basin for the first time, and the estimates are eye-popping. The new estimated mean of undiscovered, technically recoverable resources in the Permian basin are 46.3 billion barrels of oil, 281 Tcf of natural gas (17.5 times higher than the 2016 estimate!), and 19.9 billion barrels of NGLs.
Drilling Down: Permian Basin dominates drilling permit filings in New Year
Of the 48 exploration and production companies that applied for those drilling permits, Pioneer Natural Resources of Irving led with 19 applications for projects targeting the Spraberry field in Irion, Martin and Upton counties. Following Pioneer were XTO Energy, an Exxon Mobil subsidiary, with 17 drilling permit filings, Canadian oil company Encana with 12 applications and Midland exploration and production company Endeavor Energy Resources with 11.
U.S. Army Joins Race To Expand U.S. Oil Exports
The news that the U.S. Army Corps of Engineers has placed a US$93-million order with Great Lakes Dredge & Dock Company for the deepening and widening of its ship channel at the Port of Corpus Christi (PortCC) broke last week in what was still a sluggish news environment. But it is significant news: this is the first step the federal U.S. government has made to support efforts to boost crude oil exports and it is also the first step in a competition dance between the Port of Corpus Christi and commodity major Trafigura.
Why the U.S. Imports LNG Despite Its Gas-Export Boom
More than a decade in and the U.S. shale boom keeps breaking output records, with fields from Pennsylvania to Texas producing more natural gas than the country needs. That has triggered billions of dollars of investments to ship liquefied natural gas overseas. Yet the U.S. is still importing LNG from places such as Russia and Nigeria. There are two reasons for that: pipeline bottlenecks and the requirements of a 1920 law meant to support a robust U.S. shipping industry.
The Oil Bulls Are Returning
The first week of 2019 has brought back some of the bullish sentiment that market watchers had given up on after three consecutive (and quite painful) weeks of losses. The reason for the recent oil rally lies in Saudi Arabia making good on its OPEC/OPEC+ promise to cut production.
MARKET WATCH: NYMEX, Brent oil prices rise after pre-holiday slide
“The [crude] market was simply spooked,” ending 2018 with lots of supply, Schnider said. He added that the Organization of Petroleum Exporting Countries “still is here and I think the market is underestimating” the market effect of oil production cuts starting in January 2019.
Daily US LNG production hits record high of 5.28 Bcf in Christmas week
Feedgas to the three currently operational LNG projects in the US topped 5.00 Bcf for the first time on December 22, and subsequently climbed to 5.28 Bcf on the day before Christmas.
Oil Prices Set To Rebound In 2019
Most major investment banks are forecasting a rebound in oil prices in 2019. Price forecasts vary widely, but most have both WTI and Brent above current spot prices. Bank of America Merrill Lync, for instance, sees WTI averaging $59 per barrel in 2019. Citi is at the bearish end with a $49 price target. For Brent, Barclays says the benchmark will average $72, and a half dozen other investment banks have price estimates within a few dollars of that price.
$50 Oil Won’t Kill U.S. Shale
Even before the latest oil price plunge that sent WTI Crude prices to below $50 a barrel, analysts had expected the explosive growth in the U.S. shale patch to cool off a bit next year - at least until the Permian pipeline constraints ease in the latter half of 2019.
Permian’s growth spurt at risk of being stunted by oil collapse
The Permian’s better productivity means output isn’t dropping, just slowing down, if oil averages $50 a barrel and halting growth at $40, Rystad said. IHS Markit and RS Energy, agree that modest growth is likely at current prices because companies in the Permian have dropped their well costs so much over the last four years through productivity improvements.
Pacific Coast LNG plans get fresh look as market shifts
The scramble for new projects to export liquefied natural gas (LNG) is shifting to the Pacific Northwest, where longstanding proposals are getting a renewed look as rising shipping rates make the region’s easy access to Asia more appealing, with gas price shifts sweetening the deal.
Exxon becomes top Permian driller
Exxon Mobil Corp. has overtaken rivals to become the most active driller in the Permian Basin, showing the urgency with which the world’s biggest oil company by market value is pursuing U.S. shale.
Report: Biggest LNG buyers to quadruple demand
The world's biggest buyers of liquefied natural gas are expected to quadruple their current levels of uncontracted demand in the next decade and other buyers will be on the hunt for new contracts soon too, a new report from Wood Mackenzie finds.
Marathon sees exploratory success in Bakken
The Houston-based oil producer said it is producing strong results at a new, four-well site in North Dakota's Dunn County that's known as the Ajax area of the shale basin. The initial results for the combined four wells released an average of 2,400 barrels of oil equivalent a day.
Oil advances as Russia shows willingness to join Saudis on cuts
Russia wants more predictability and "smooth price dynamics" in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina. The remarks presaged a G-20 summit where Russia's Vladimir Putin and Saudi Arabia's Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.
Continued consolidation expected in Permian
As the Permian’s unconventional shale play matures and shifts into manufacturing mode, experts said companies will need to scale up to continue their success. That’s an assessment agreed upon by panelists at the recent Executive Oil Conference presented by Hart Energy.