INDUSTRY NEWS
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.