INDUSTRY NEWS

What Price Will WTI Oil Be at End-2021?

The price of West Texas Intermediate (WTI) crude oil at the end of 2021 will be $69.71 per barrel. That’s according to the latest average from the Dallas Fed energy survey, which asked executives from 150 oil and gas firms what they expected the price of WTI to be at the end of the year.

Iran says U.S. to lift oil sanctions, Germany cautious on matter

Iran said on Wednesday the United States had agreed to remove all sanctions on Iran’s oil and shipping, although Germany cautioned that major issues remained at talks between Tehran and world powers to revive a 2015 nuclear deal.

Pipelines Deliver the Energy That Powers Pennsylvania – and the U.S.

Pipelines play a crucial role in America’s energy revolution and security. Natural gas and oil development has sparked extraordinary job and economic growth and enabled America to shed its reliance on other nations for fuel. Our network of pipelines delivers domestic energy in a safe, efficient manner, ensuring that Americans have widespread access to affordable, reliable energy.

Empty oil tanks at key storage hub show speedy demand rebound

For the first time since before the pandemic, empty tanks are being offered for lease at Cushing, Oklahoma, the delivery point for West Texas Intermediate oil futures. At least 1.4 million barrels of storage is up for rental starting in July, for roughly 12 cents per barrel a month, said Steven Barsamian, chief operating officer at storage brokerage Tank Tiger. 

USA Shale Finally Making Money After Blowing $300B

After years of booms and busts that produced astronomical losses along with a whole lot of oil, the fracking industry seems to have found a sweet spot. It’s poised to generate more than $30 billion of free cash this year, a record, according to Bloomberg Intelligence. While that’s just a blip compared with the $300 billion that Deloitte LLP estimates the sector burned over the previous decade, it marks at least a temporary revival for an industry that a year ago had been largely written off by investors.

Texas Targets Wall Street in Fight Over ESG Investing

Governor Greg Abbott signed a bill into law on Monday banning state investments in businesses that cut ties with the oil and gas industry. The underlying message, according to one of the most powerful energy regulators in the state, is simple: Boycott Texas, and we’ll boycott you.

Judge Blocks Biden Oil and Gas Lease Pause

In a case filed on June 15, Terry A. Doughty, a district judge of the United States District Court for the Western District of Louisiana, restrained the administration from implementing the pause of new oil and natural gas leases on public lands and offshore waters as set forth in Section 208 of Executive Order 14008 back in January.

The Permian Has Solved Its Natural Gas Pipeline Shortage

Two natural gas pipelines have been completed in Texas since October 2020 and two others in Mexico, increasing the connectivity between natural gas producers in the Permian basin and the main markets for natural gas in the area and in Mexico, the U.S. Energy Information Administration (EIA) said on Tuesday.

Oil closes above $70 a barrel for first time since Oct. 2018

West Texas Intermediate futures surpassed the $70 mark to close at its highest since Oct. 2018 after briefly touching the key psychological level earlier this week. 

Saudi Arabia Says It is No Longer An Oil Producing Country

“Saudi Arabia is no longer an oil country, it’s an energy-producing country,” the Energy Minister told S&P Global Platts this week.

Climate activists score a third ExxonMobil board seat

The hedge fund Engine No. 1, which owns less than 1% of Exxon’s stock, succeeded in its bid to install board members who will push Exxon to more aggressively consider climate change in its business planning.

Oil climbs on demand optimism as market volatility takes a hit

West Texas Intermediate edged higher after settling at the strongest since October 2018 on Thursday. With prices stuck within a $10 range since March, market volatility has taken a hit, falling to its lowest level since August on the global Brent benchmark.

Boardroom Blitz Isn’t A Crushing Blow For Big Oil

Whether Big Oil was just dealt a crushing blow by climate activists or whether this is simply a new leaf in a book that we’ve already opened depends largely on which headlines you read and on which side of the politico-energy divide you fall.  

The Colonial Pipeline Ransomware Hackers Had a Secret Weapon

On Jan. 11, antivirus company Bitdefender said it was “happy to announce” a startling breakthrough. It had found a flaw in the ransomware that a gang known as DarkSide was using to freeze computer networks of dozens of businesses in the U.S. and Europe. Companies facing demands from DarkSide could download a free tool from Bitdefender and avoid paying millions of dollars in ransom to the hackers.

China asks coal producers to hike output

Prices for commodities such as coal, steel, iron ore and copper – of which China is the world’s biggest user – have surged this year, fuelled by post-lockdown recoveries in demand and easing liquidity globally. But they extended recent losses after the cabinet’s latest comments.

Biden Admin Set to Waive Sanctions on Gazprom Pipeline

The U.S. will impose and immediately waive sanctions on the company overseeing construction of the Nord Stream 2 gas pipeline from Russia to Germany, people familiar with the matter said, a move meant to bolster ties with Berlin that sparked criticism the Biden administration is soft on Russia.

Offshore Wind Requires 63,000lbs Of Copper Per Turbine

Offshore wind turbines require 8 literal tons of copper for every megawatt of generation capacity, Petkova noted, adding, citing data from the International Energy Agency, that “An average turbine of 3.6MW, which can power more than 3,300 average EU households, will contain close to 29 tonnes (t) of copper.”

Russia Is Making A Mad Dash To Outrun Peak Oil Demand

Several of the world’s largest oil-producing nations have recently made public plans to boost their production capacity. The reason: peak oil demand is looming and countries are determined to make the most of their oil resources while they can.

Biden’s Not-So-Clean Energy Transition

The IEA assembled a large body of data about a central, and until now largely ignored, aspect of the energy transition: It requires mining industries and infrastructure that don’t exist. Wind, solar and battery technologies are built from an array of “energy transition minerals,” or ETMs, that must be mined and processed. The IEA finds that with a global energy transition like the one President Biden envisions, demand for key minerals such as lithium, graphite, nickel and rare-earth metals would explode, rising by 4,200%, 2,500%, 1,900% and 700%, respectively, by 2040.

Enbridge Says Great Lakes Pipeline Will Keep Running

 Enbridge Inc. said it will continue to ship crude through its Line 5 pipeline that crosses the Great Lakes, despite Michigan Governor Gretchen Whitmer’s deadline Wednesday to shut the conduit.

Colonial Pipeline Initiates Restart

The business said it will take several days for the product delivery supply chain to return to normal. Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period, Colonial Pipeline warned, adding that it will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal.

Here’s How the Colonial Pipeline Carries Multiple Fuels at Once

One less-explored aspect of the unfolding Colonial Pipeline Co. ransomware disaster is how a single pipe is able to carry premium gasoline and regular gasoline and home heating oil and jet fuel and diesel fuel. You’d think the fuels would mix into an unusable soup, but they don’t.

China now emits more than rest of developed world combined: Chart

China’s emissions of greenhouse gases have more than tripled over the last three decades and now, for the first time, exceed those of all developed countries combined, according to new research released Thursday.

Panic Buying Sends U.S. Gasoline Prices To Near 7-Year High

The average price of a gallon of gasoline in the United States has jumped on the Colonial Pipeline ransomware attack and subsequent outage. The overall average price of retail gasoline is now at $2.985 per gallon, according to AAA. This compares to a year-ago average of just $1.847 per gallon.

Ransomware attack forces shutdown of largest fuel pipeline in the U.S.

The operator of the country’s largest fuel pipeline, Colonial Pipeline, fell victim to a cybersecurity attack on Friday that involved ransomware, forcing it to temporarily shut down all pipeline operations and raising concern that the outage could lead to spot shortages of gas, diesel and jet fuel.

Jennifer Granholm’s Tone Deaf Advice For The Oil And Gas Industry

On a Zoom call Monday, Energy Secretary Jennifer Granholm essentially warned oil and gas company executives that their industry is dying, advising them to diversify their business portfolios or risk becoming like Blockbuster or Kodak, two former corporate behemoths that famously failed to adopt to rapid shifts in their markets.

Oil Moves Higher On Largest Crude Draw Since January

The oil inventory figure compared with a weekly draw of 7.688 million barrels estimated by the American Petroleum Institute a day earlier, and with a moderate build of 100,000 barrels that the EIA reported for the previous week.

RRC continues to exceed well-plugging targets

The agency says it is on track to exceed the target of plugging 1,400 wells this fiscal year, set by the Texas Legislature. This would make the fifth consecutive year the agency has exceeded the target set by the legislature.

Rising air travel starts to lift jet fuel demand Jump

The growing number of commercial airline travelers is starting to lift jet fuel demand ahead of the peak summer travel season, according to a report from the Energy Department. 

Goldman: Oil To Hit $80 On Largest Ever Demand Jump

Higher demand for travel and acceleration of vaccinations in Europe are set to result in “the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months,” Reuters quoted Goldman Sachs as saying in a note to clients.

After the Texas Blackouts, Follow the Wind and Solar Money – All $66 Billion of It

In the aftermath of the Texas blackouts, one thing became clear: Big Wind and Big Solar have nearly every media outlet in the country on speed dial. Indeed, in the days after the blackouts, numerous media outlets carried stories proclaiming that the near-disastrous failure of the Electric Reliability Council of Texas (ERCOT) grid should not be blamed on wind or solar energy. 

Biden’s Aggressive Emissions Target Could Have A Major Impact On U.S. Oil

U.S. President Joe Biden unveiled on Thursday a new emissions-reduction target aiming to cut greenhouse gas emissions by 50-52 percent from 2005 levels in 2030 in an announcement that could have repercussions on America’s oil and gas industry

US Energy Trade: Powering the Global Economic Recovery

As the world recovers from the COVID-19 pandemic, it is important that fair and market-based U.S. energy trade policies play a role in rebuilding the world. We must significantly increase the exportation of America’s natural resources – coal, liquified natural gas (LNG), and oil – and at the same time, promote innovative energy technologies such as carbon capture, efficient coal burning, and advanced battery storage manufacturing.

Libya oil recovery under threat as output falls

Libya’s oil production has fallen below 1 million barrels a day for the first time in months as a budgetary dispute hinders the OPEC member’s ability to fix war-damaged infrastructure.

A New Use for Orphaned Oil and Gas Wells?

Petrolern LLC – an Atlanta-based service and technology firm specializing in subsurface engineering and downhole tools – has advanced another idea: repurpose some of the orphaned oil and gas wells to produce geothermal energy. 

Warren Buffett’s firm is proposing an $8 billion boondoggle to prevent the next Texas blackout

To avoid most federal regulations, utilities banded together, eventually forming the Electric Reliability Council of Texas (ERCOT), which serves over 26 million customers, and physically isolates its electrons from the rest of the country.

Fracking Survives In California As Senate Blocks Bill

While popular among environmentalists and climate change advocates, however, the anti-fracking bill was the opposite of popular among other groups, including labor unions and legislators who were worried about its negative effect on employment in California’s oil industry. The state is the nation’s seventh-largest producer of crude oil.

Fracking nears full rebound, but without the flaring

The Norwegian energy research firm said oil production in the Permian Basin has largely recovered from the February winter storm, which caused the largest disruption to U.S. oil production in its history. Rysad said it counted 429 new hydraulic fracturing jobs in the Permian in March, up from 260 in February and well above the 300 well completions needed to maintain pre-pandemic output.

New analysis finds 77 percent drop in Permian methane emissions

 An analysis just released by Texans for Natural Gas, a project of the Texas Independent Producers and Royalty Owners Association, finds methane emissions in the Permian have declined more than 70 percent in the last eight years even as oil production rose more than 300 percent, rising to a record 7 million barrels of oil equivalent per day in 2019.

U.S. Oil Production Is About To Climb

 Across all U.S. oil-producing regions, average breakeven prices to profitably drill a new well range from $46 to $58 per barrel, with breakeven prices in the Permian averaging $50 a barrel, the latest Dallas Fed energy survey for Q1 showed last week. “There’s nothing that doesn’t work at $65 a barrel,” Ian Nieboer, a managing director at Enverus, told the Financial Times last month, noting that the newly-found discipline could fade away.

Halliburton Claims Permian Automation Breakthrough

 Calling it an “industry first,” Halliburton pointed out the system applies automation enabled by subsurface measurements and real-time visualization. The firm added the technology intelligently adapts and responds to reservoir behavior, leading to real-time improvement in completion execution and fracture outcomes. 

Despite Pledges to Cut Emissions, China Goes on a Coal Spree

Coal remains at the heart of China’s flourishing economy. In 2019, 58 percent of the country’s total energy consumption came from coal, which helps explain why China accounts for 28 percent of all global CO2 emissions. And China continues to build coal-fired power plants at a rate that outpaces the rest of the world. 

Texas Utility Sues Suppliers

CPS Energy, a Texas utility, is suing energy giants including BP Energy Co., Chevron Corp. and Energy Transfer. CPS supplies over 1.1 million customers in the San Antonio area with power and gas, and is disputing charges amounting to hundreds of millions of dollars at a minimum in 13 lawsuits.

Signs Of Strong Oil Demand Recovery Are Emerging

Travel statistics show that U.S. consumers are driving and flying this month at the highest rate since the pandemic forced the United States into stay-at-home orders and lockdowns in March last year. Chinese demand for road fuels is back to pre-COVID levels, with airline travel also rebounding from last year’s lows. 

Oil Prices Make Comeback

Oil came back from a sell-off that investment banks from Goldman Sachs to Morgan Stanley said was excessive and offered an opportunity to buy, with physical crude markets still showing signs of strength in the long run.

21 states sue Biden for revoking Keystone XL permit

The lawsuit from 21 states, led by Texas and Montana, argues that revoking the cross-border permit is a “regulation of interstate and international commerce” that should be left to Congress and that Biden’s move was an overreach.

Shale Producers Find Themselves in Unusual Position

More focused than ever on keeping spending in check, shale drillers haven’t been boring new wells fast enough to keep up with output declines in older ones. So, next month, their combined production will edge lower by 47,000 barrels a day to about 7.46 million, according to the U.S. Energy Information Administration. That’s despite an oil price jump of more than 30% this year.

Biden Shocks Environmentalists, Supports Gas Pipeline In Supreme Court Case

The Biden Administration is backing a natural gas pipeline project in a legal fight about eminent domain that ended up in the Supreme Court, a move that shocked environmentalists who had hoped the Administration would not support any oil and gas pipeline projects.

Brent Back Above $69 As Bullish Sentiment Holds

Oil prices regained lost ground towards the end of the week, as tight supplies are forcing a global drain in inventories. “Overall, we are bullish on oil demand continuing its upward trajectory in tandem with vaccine programs and the resumption of economic activities,” Bjornar Tonhaugen of Rystad Energy said in a statement.

Oil prices vault towards $70 as the OPEC-fueled crude rally continues

Crude has soared this year, shepherded higher by OPEC+ restraining supplies and the vaccine-aided recovery in consumption that’s drained inventories. The group’s decision represents a victory for Riyadh, which has advocated for restraints to keep prices supported. However, the rally could spur drilling activity by U.S. shale explorers, and stoke global inflationary pressures.

Why Big Oil Expects Record Cash Flow In 2021

The world’s largest oil companies are set for a cash flow bonanza this year, probably at record levels, as massive cost cuts in the wake of the 2020 oil price and oil demand collapse have significantly lowered the corporate cash flow breakevens for many firms. 

Oil settles below $60 before meeting about supply

Oil tumbled below $60 a barrel in New York with the OPEC+ alliance said to be set to agree to a production increase later this week.

Everything You Need To Know About Musk’s New Passion Project

Although various methods of removing carbon dioxide emissions from the atmosphere have grown in popularity in recent years, such solutions still lag behind other climate change technologies like wind and solar power.

Whispers of $100 oil return as crude shakes off COVID’s clasp

Azerbaijan’s Socar Trading predicts that global benchmark Brent could hit triple digits in the next 18 to 24 months, and Bank of America sees potential spikes above $100 over the next few years on improving fundamentals and global stimulus. Speculators are also getting in on the action, increasing bets in the options market that oil will reach the vaunted level by December 2022.

The Oil Industry Is Ready To Fight President Biden In Court

Reeling from the effects of the pandemic, the oil industry is in no mood to fool around. When newly inaugurated President Joe Biden canceled the Keystone XL pipeline project, refiners on the Gulf Coast shuddered. How would they get the Canadian oil they needed? But when President Biden paused all oil and gas permitting on federal lands and waters and canceled lease sales, struggling oil and gas companies took the gloves off and prepared for a fight. 

Texas Fuel Outlets Still Dealing with Shortages

The number of filling stations and convenience stores with empty tanks reached 15% across the Lone Star state as of Wednesday morning, according to the Texas Food & Fuel Association and retail tracker GasBuddy. Shortages are most acute in Lubbock, El Paso and Odessa in West Texas, GasBuddy analyst Patrick DeHaan said in email.

Interior Nominee Haaland Faces Heated Questioning at Hearing

Interior Secretary-designate Deb Haaland downplayed her past opposition to fracking during a heated confirmation hearing Tuesday, as she sought to reassure senators worried she would clamp down on fossil fuel development.

Texas Winter Storm Highlights The Importance Of Fossil Fuels

Natural gas prices exploded last week in many parts of the U.S. and are still rising higher, as are electricity prices. In Texas, a state unaccustomed to such weather, wholesale electricity prices hit $9,000 per MWh on the spot market, prompting at least one retail power supplier to urge its clients to switch to another provider to avoid huge utility bills.

What The #%@$ Is Happening In Texas?

The narrative this week has quickly shifted from stimulus hopes, vaccines, and virus mutations to what is now known as the Texas Freeze–and the energy market has been turned upside down as these low temperatures continue to rock the Lone Star State that is woefully underprepared for such a rare event. 

U.S. freeze cuts oil output by over 2 million barrels a day

The Permian oil outage helped to push West Texas Intermediate, the crude benchmark in the U.S., above $60 a barrel on Monday for the first time in more than a year. Since then, oil prices have fallen slightly because U.S. refineries have also closed due to the cold, reducing the amount of crude needed right now. Energy Aspects Ltd., a consultant, estimated that 3.1 million barrels a day of refining capacity was down as of Monday.

Texas Group Sets Goal to End Routine Flaring

The announcement from the Texas Methane and Flaring Coalition follows a decision Tuesday by the state’s energy regulator to defer flaring requests from various operating companies.

Arctic Blast in US Triggers Pipeline Freeze-offs

There’s no respite this weekend for much of the U.S. with temperatures likely to hit new lows. Arctic cold is already gripping much of the interior, freezing natural gas pipelines and threatening snow as far south as Houston.

Major Crude Draw Sends Oil Prices Higher

Both Brent and WTI are already trading higher than their forecast average for the year, pushed higher by Covid-19 vaccinations and tighter supply, with some analysts and hedge fund managers expecting prices to go much higher before this year’s end, with the number mentioned ranging from $70-80 to over $100, the latter seen as possible next year.

Oil’s remarkable rebound from a year of catastrophe

“The recovery is proceeding at a faster rate than people perceived,” said Ed Morse, head of commodities research at Citigroup Inc. “The demand recovery is going to look stellar. The inventory draw is significantly greater than what many people thought.”

Bill Seeks to Reverse Biden Keystone XL Decision

“In revoking this permit, the Biden Administration has chosen to listen to the voices of fringe activists instead of union members and the American consumer on Day 1,” stated the United Association of Union Plumbers and Pipefitters (UA). “When built with union labor by the men and women of the United Association, pipelines like Keystone XL remain the safest and most efficient modes of energy transportation in the world. Sadly, the Biden Administration has now put thousands of union workers out of work.”

Gov. Abbott signs executive order to protect Texas energy industry from federal overreach

“Texas is a pro-energy state, and we will not sit idly by and allow the Biden administration or local governments to destroy jobs and raise energy costs for Texas families,” Abbott said at a news conference Thursday in Odessa. “My executive order will help ensure that the federal government cannot take away the livelihoods of Texans who work so hard to provide our state and our nation with the energy we need.”

Will Biden’s Federal Drilling Ban Raise Oil Prices?

There is no doubt that if this order remains in effect it will limit U.S. production opportunities, which will send prices higher at some point. The question is when we will start to see an impact on oil prices from this executive order.

Cheney introducing bills prohibiting Biden coal, oil, gas leasing moratoriums

“The executive actions from the Biden Administration banning new leasing and permitting on federal land endanger our economy and threaten our national security,” Cheney said in a statement. “The legislation I am introducing today would safeguard against these damaging orders, and prevent the job loss, higher energy costs, and loss of revenue that promises to come with them.”

Report: Permian flaring could be slashed at no cost to producers

As much as 40% of the natural gas that’s expected to be flared in the Permian Basin in 2025 could be avoided at no cost to drillers if regulators abandoned their hands-off approach to the controversial practice, according to a report.

Biden Federal Land Permitting Moratorium Shocks New Mexico

Some New Mexico officials have said they did not anticipate the move from the White House although, as Blackmon notes, this is hard to believe given all the talk about banning drilling on federal land even though Joe Biden personally denied he planned an all-out ban, saying he would only consider banning new drilling.

Keystone XL Developer Cuts 1,000 U.S., Canadian Jobs After Biden Nixes Oil Project

The U.S. Administration’s decision drew harsh reactions and criticism from Canada’s center of oil industry, the province of Alberta, which says that the killing of Keystone XL would lead to thousands of job losses not only in Canada, but also in the United States, and would raise dependence on OPEC imports for the U.S. Gulf Coast refiners.

Biden suspends federal oil and gas leasing for 60 days

Wednesday’s order is temporary, presumably to give the Senate time to confirm Biden’s nominee for Interior secretary, Rep. Deb Haaland, D-N.M. But Biden, who pledged to halt new drilling within federal lands and waters during the campaign, appears likely to seek to extend the ban over the long-term or make it permanent, which, according to some legal opinions, could require congressional approval.

Oil Prices Rally On Large Crude Draw

U.S. oil production held steady at 110.0 million bpd for the fourth week running, according to the latest data provided by the Energy Information Administration. This is still millions of barrels below the 13.1 million bpd high reached in March 2020.

Biden may cancel Keystone pipeline permit on first day: CBC

President-elect Joe Biden may fulfill a pledge to cancel the Keystone XL pipeline permit via executive action on his first day in office, CBC News reported, citing people it didn’t identify.

Enbridge to defy Michigan’s order to shut down oil pipeline

Enbridge, which has a major presence in Houston with more than 1,000 employees, on Tuesday said Michigan lacks the authority to terminate or revoke a nearly 70-year-old pipeline easement that allows for the company’s Line 5 dual pipelines to transport heating fuel between the U.S. and Canada. The company said it plans to operate the pipelines until a replacement pipeline comes into service.

How activists successfully shut down key pipeline projects in New York

If all had gone according to plan, the Constitution pipeline would be carrying fracked gas 124 miles from the shale gas fields of Pennsylvania through streams, wetlands, and backyards across the Southern Tier of New York until west of Albany. There it would join two existing pipelines, one that extends into New England and the other to the Ontario border as part of a vast network that moves fracked gas throughout the northeastern United States and Canada.

Permian Highway Pipeline now in service

Last week Rigzone presented key oil and gas industry trends for 2020 as articulated by five informed market-watchers. Now, check out what they predict will likely be the biggest oil and gas industry developments in 2021.

What Looms for Oil and Gas in 2021?

Futures closed at a fresh nine-month high after swinging between gains and losses earlier. The U.S. began administering the Covid-19 vaccine alongside nationwide immunization campaigns in other countries, presenting a path toward a normalization of crude demand.

Oil Prices Edge Upward Despite OPEC Revision

Futures closed at a fresh nine-month high after swinging between gains and losses earlier. The U.S. began administering the Covid-19 vaccine alongside nationwide immunization campaigns in other countries, presenting a path toward a normalization of crude demand.

Peak Oil Demand, Really? Some Lessons From The Debate Over Peak Supply

The fact that many who believed in peak oil supply now wholeheartedly support the imminence of peak oil demand doesn’t mean peak oil demand predictions should be discarded as being as fallacious as peak oil supply arguments were, but it does show that there are many credulous people out there who hop on the fashionable topic of the day. 

U.S. shale firms amp up natural gas output as futures signal more gains

“Demand has remained pretty robust. Supply has been starved for capital,” said Christopher Kalnin, chief executive of Denver-based Banpu Kalnin Ventures, which last month closed a deal to acquire Devon Energy natural gas assets. Banpu Kalnin has hedged about 65% of its gas production for next year.

Oil Rally Stalls on Uncertainty Over OPEC+ Output Plan

Oil’s rally above $45 a barrel hit the brakes on Monday after OPEC talks ended without a clear stance on whether to delay an output increase in January.

Five Reasons Why Internal Combustion Engines Are Here to Stay

To be sure, there’s lots of momentum propelling the electric-vehicle market, including the recent inclusion of Tesla in the S&P 500. But oil-fired cars are here to stay, and there are five big reasons why.

The Real Reason Oil Prices Went Negative In April

Unusually high open interest in West Texas Intermediate was one of the two causes for the benchmark plunging into negative territory in late April, according to a report by the U.S. Commodity Futures Trading Commission.

Flare capture offers easy wins

Increasing commitments to a ‘net-zero’ society—be it by 2050, 2060 or a sooner or later date—pose both a generational challenge and an existential threat to oil and gas producers. There will be no more ‘business as usual’, but firms must also deliver more in environmental terms while grappling with reductions in their size and access to capital.

U.S. Natural Gas Stocks Close To Record-High At Refill Season End

At the end of the refill season—which is April 1 to October 31—the amount of working natural gas in storage stood at 3,920 billion cubic feet (Bcf), close to the record of 4,047 Bcf from the middle of November 2016, according to EIA data from its latest weekly natural gas inventory report last week.

San Francisco Imposes Natural Gas Ban

San Francisco will ban the use of natural gas in new buildings starting next year, becoming the latest city in California to clamp down on the heating and cooking fuel because of climate concerns.

Pirate Attacks On Oil Tankers Off West Africa Intensify

Several oil tankers were attacked or approached with attempted attacks in the Gulf of Guinea off West Africa over the past few days, maritime security companies warn.

Has the Texas Upstream Slump Bottomed Out?

“Normally there is very little reason to get excited about the addition of three rigs and 30 industry employees statewide from one month to the next,” Ingham said, referring to changes from August to September. “But when they represent the first increases in over a year and a half, and on the heels of the worst demand contraction on record thanks to COVID, the numbers are very exciting because hopefully they signal the beginning of the end of this nasty downturn.”

Trump Signs Order To Protect Fracking

The president referred to a memorandum from Saturday, titled “Memorandum on Protecting Jobs, Economic Opportunities, and National Security for All Americans,” in which he mandates the Secretary of Energy to prepare a report on “the economic impacts of prohibiting, or sharply restricting, the use of hydraulic fracturing and other technologies.”

U.S. Rig Count Rises Despite Coronavirus Threat

The EIA’s estimate for oil production in the United States rose in the week ending October 23—rebounding from 9.9 million barrels in the week prior to 11.1 million barrels of oil per day. U.S. oil production has been bouncing around between just under 10 million bpd to 1.1 million bpd for months now as the pandemic continues to sap demand for crude oil.

Trump mulls executive order on fracking

Trump is considering issuing an executive order to require an economic analysis of hydraulic fracturing, or fracking, according to several people familiar with the matter, as the president seeks to use what he portrays as Biden’s mixed messages on energy to woo voters in the swing states of Pennsylvania and Ohio.

Keystone Faces Biden Risk

Barack Obama tried to stop the Keystone XL pipeline. Donald Trump tried to revive it. If Joe Biden is elected, he says he’ll block it again — and the pandemic may help him kill the project for good.

Another Permian Giant May Be Forced To Consolidate Or Die

The three-month chart for Diamondback Energy, (NASDAQ: FANG) tells a pretty grim tale of capital destruction. One thing that intrigues us at this moment in time is the dividend, currently yielding ~near 5%. A tempting target, but does it a sense of security with reliable income, or is it a warning signal that the yield could go higher?

Pioneer Natural to buy shale rival Parsley for $4.5 billion in all-stock deal

A combined company would hold around 930,000 acres in the Permian, the top U.S. oil field, with production of about 328,000 barrels of oil per day (bopd). Neither company holds federal acreage, which is seen as riskier than state or private lands in case drilling rules change after the U.S. presidential election.

Why Joe Biden and Kamala Harris Must Support ‘Fracking’ for Oil and Natural Gas

Through the worst public health crisis in many decades, it has been a devastating seven months for the U.S. economy. But hope is emerging: September unemployment was at 7.9%, down from 14.7% in April. Even better, U.S. Energy Secretary Dan Brouillette recently stated that the U.S. oil and gas industry, which leads the world in production, should be a primary vehicle for our recovery from the pandemic-driven economic fall. 

Oil claws back early loss on shrinking U.S. stockpiles

Futures in New York ended the session little changed just under $41 a barrel after earlier falling as much as 4.4%. The Energy Information Administration reported a decline in U.S. crude and gasoline inventories as well as a 7.25-million-barrel draw in distillate supplies, the most since 2003, providing optimism around a tightening supply picture.

Oil trapped between bearish demand outlook and rallying equities

Some of the world’s largest oil suppliers are painting a bleak picture for crude demand, with the Organization of Petroleum Exporting Countries cutting the demand estimate for its oil by 1.1 million barrels a day and BP Plc saying the relentless growth in oil demand is over. But U.S. stock markets gained, signaling that investors are seeing an increase in business activity which could buoy demand.

Will The Permian Stage A Miraculous Comeback?

It is the crown jewel of the U.S. shale industry, but it’s in crisis. Thousands of layoffs, numerous bankruptcies, canceled land auctions, plummeting rig counts, and fewer fracking crews have plagued the Permian for the better part of this year—but is the worst behind the landmass that is America’s best (and perhaps only) chance at oil independence?

Saudi Arabia Pegs Budget to Oil at Around $50, Goldman Says

 Saudi Arabia’s Finance Ministry is budgeting for oil prices to be around $50 a barrel for the next three years, according to a Goldman Sachs Group Inc. analysis of the kingdom’s fiscal plans.

Covid Causing Shift From Public Transport To Cars

 Though some people have moved from public transport to clean individual transport such as bicycles, private cars have emerged as the “clear winner” of the shift, according to the report. By July, traffic in Germany had gone back to pre-crisis levels, according to an analysis of mobile network data.Though some people have moved from public transport to clean individual transport such as bicycles, private cars have emerged as the “clear winner” of the shift, according to the report. By July, traffic in Germany had gone back to pre-crisis levels, according to an analysis of mobile network data.

Not The Onion: CA Gov Newsom Believes He Can Legislate Away Gas-Powered Vehicles by 2035

 Undeterred by the demonstrable failure of the “reimagining” of California’s power grid he and his predecessor spearheaded and the money pit that is the bullet train, California Gov. Gavin Newsom (D) announced Wednesday that he is signing a new Executive Order that will “eliminate in California the sale of internal combustion engines” by 2035 and “[builds] towards an integrated, statewide rail and transit network.”

Natural Gas Prices Explode On Stronger Demand

 Rallying from a seven-week low in the prior session, natural gas futures rose more than 15% on Wednesday afternoon as the demand outlook for natural gas improves.

Oil Prices Get Bump from Equities Rebound

 Oil recovered from the steepest one-day loss in almost two weeks as equities advanced, though further gains may be limited by a resurgence in coronavirus cases and new lockdown measures.

Oil Prices Rise As Saudi Arabia Keeps OPEC Members In Check

 The positive price movement can be attributed largely to OPEC’s strong chatter after today’s meeting, in which Saudi Arabia chastised noncompliant members for trying to fool the market with overproduction, and gave the laggards until December to make up for any overproduction thus far. Saudi Arabia also warned speculators not to bet against OPEC.

Inside Sen. Ted Cruz’s big play to block Vladimir Putin’s pipeline

 The Russian ship Akademik Cherskiy has sat for more than three months in the German port of Mukran, waiting to lay the last segment of the Nord Stream 2 natural gas pipeline running from Russia to Germany under more than 700 miles of the Baltic Sea.

Permian in for Prosperous and Bright Future

 According to the  Permian Strategic Partnership (PSP), the region contains more than 92.3 billion barrels of oil, which it noted is about 38 times the proven reserves of Alaska, and nearly 300 trillion cubic feet of natural gas, which it said is enough to meet U.S. household demand for 60 years.

Saudi Aramco Is Now Suffering The Consequences Of A Failed Oil Price War/h4>

 It was evident to anyone with even half a brain that the last Saudi-instigated oil price war would end in abject failure for the Saudis, just as the previous 2014-2016 effort did and for the very same reasons. 

Floating Storage Comeback Would Be Bad News for OPEC+

 An oil trade that only works when the market is glutted may be about to make a comeback. That’s bad news for producers withholding near-record amounts of crude in a coordinated bid to help prop up prices.

The World’s Top Oil Importer Is Turning Its Back On Saudi Arabia

In recent months, the world’s biggest oil exporter, Saudi Arabia, has lost market share in China to the United States as the world’s top oil importer has boosted imports from America and reduced purchases from the Kingdom.   China has imported record volumes of crude oil in recent months, taking advantage of the lowest crude prices in two decades in April stock up on dirt-cheap oil.  

California’s Blackouts Expose Biden-Harris and The Green New Deal

This past week, the nation has watched California experiencing its first intentional rolling blackouts since the state’s 2001 energy crisis. Governor Gavin Newsom, pointing out that solar panels don’t work at night and acknowledging the unusually calm winds which don’t move turbines, called the situation “unacceptable.”

Oil Near 5-Month High as Laura Menaces Refineries

Oil held at a five-month high as the market braced for disruptions to production and refining from Hurricane Laura and after a further drop in U.S. crude stockpiles added to optimism that demand is recovering.

Thanks to Green Energy Mandates, California’s Electric Grid Is Near Collapse

This time, “rolling blackouts” are due to green energy issues, not Enron market manipulation. California has traded energy security to kneel before the false prophet of green energy. Instead of using reliable and affordable nuclear and coal plants, they are using intermittent and unreliable wind and solar power. And the people of California, and perhaps the West in general, may pay the price for that homage if the power grid collapses during the ongoing heat wave.

Billionaire Wildcatter Plans Midland Oil Production Expansion

Texas, Midland-based driller Endeavor Energy Resources has applied for permits for 11 new wells, the Houston Chronicle’s Sergio Chapa reports, adding that the permit applications are for the Spraberry oil field in Midland County.

Most U.S. shale companies to restore production by end of 3rd quarter

Many U.S. oil companies started pausing production in April as the global pandemic decimated demand for gasoline, diesel and jet fuel. In May, at the peak of the production cuts, 25 public oil companies shut in 772,500 barrels of oil per day, according to Rystad, a Norwegian energy research firm.

Texas Hill Country pipeline project moves forward, despite pleas from Willie Nelson and Paul Simon

Houston pipeline operator Kinder Morgan moved forward on a controversial natural gas pipeline through the Texas Hill Country the same day that legendary musicians Willie Nelson and Paul Simon issued a public plea for the company to halt the project.

LNG Train Starts Up on Gulf Coast

With three liquefaction trains, Cameron LNG is expected to export 12 million tonnes per annum (mtpa) of LNG, McDermott noted.

Saudi Arabia Turns Off America’s Oil Taps Again

For the second time in three years, Saudi Arabia is slashing the volume of crude it’s sending to America in an attempt to force down stockpiles in the world’s most visible oil market and thereby hasten the rebalancing of supply and demand.

Low natural gas prices amid abundant supply, stricter emission regulations, and more efficient technology of the natural gas turbines were the key reasons why natural gas has been increasingly replacing coal-fired capacity in the United States. 

Colorado oil company plans Permian Basin push

Colorado oil company QEP Resources is breaking a six-month hiatus as it plans to make a return to the Permian Basin of West Texas.

Microsoft And Halliburton Are Building The Oilfield Of The Future

Technology seems to gravitate to the oilfield. Doing more with less has always been in the background as the industry responded to ever increasing markets with large explosions of capex. Those days are gone as we have noted, and increasingly what would have been big capex solutions are moving to smarter, more flexible components that deliver value while packing in profits to the supplier.

Environmentalism’s Radical Next Generation

This past week, a new group calling itself Beyond Politics (BP) threw buckets of bright-pink paint at the entrances to the London offices of four global NGOs, including Friends of the Earth and Greenpeace.

Frac is Back

According to Rystad, the running rate of frac activity in the Permian has shifted from 15 to 20 wells per week in May and June to 40 to 45 wells per week in the last three weeks. In all other oil basins – including Bakken, Eagle Ford, Anadarko and Niobrara – Rystad said its latest fracking activity estimates suggest fracking activity is around 35 to 40 wells per week since the beginning of July.

Study: Permian’s economics will help weather downturn

There is no question operators active in the Permian Basin are facing a difficult economic environment. But a recent report by Mercer Capital finds the nation’s most prolific basin should fare better than other producing regions because of its economics.

Google plans to stop making A.I. tools for oil and gas firms

A Greenpeace report on Tuesday highlighted how Google, Microsoft, and Amazon use AI and warehouse servers to help the likes of Shell, BP, and ExxonMobil to locate and retrieve oil and gas deposits from the earth. 

The Oil Bulls Betting On $150 Crude

The current oil crisis will severely depress investments in new oil production, setting the stage for oil prices hitting $100 or even $150 a barrel over the next five years, several analysts told The Wall Street Journal.

Green activist comes clean on climate disinformation

“On behalf of environmentalists everywhere, I would like to formally apologize for the climate scare we created over the last 30 years,” Michael Shellenberger wrote last month. “Climate change is happening. It’s just not the end of the world. It’s not even our most serious environmental problem.”

Oil Demand To Rebound Despite Spike In COVID-19 Cases

Despite the continued bearish sentiment, oil markets saw a bit of support over the past week, resulting from the sharp decline in the crude oil inventories as reported by the EIA. 

Pipeline completion expected to boost natural gas exports to Mexico

Connected to other pipeline projects known as the Wahalajara system, the Villa de Reyes-Aguascalientes-Guadalajara Pipeline can receive nearly 1 billion cubic feet of natural gas per day from the Waha Hub in the Permian Basin. The gas will be used by power plants and industrial consumers.

Study linking fracking to Permian Basin earthquakes stirs public debate

A new study from the University of Texas at Austin blames hydraulic fracturing for causing some earthquakes in the Permian Basin of West Texas, dispelling the widely held view that oilfield wastewater disposals wells were solely responsible for the man-made tremors.

Fossil Fuels Make Up 84 Percent Of The Global Energy Market

The largest share of the increase in energy consumption, 41%, was contributed by renewables. Natural gas contributed the second largest increment with 36% of the increase. However, as an overall share of energy consumption, oil remained on top with 33% of all energy consumption. The remainder of global energy consumption came from coal (27%), natural gas (24%), hydropower (6%), renewables (5%), and nuclear power (4%).

Fossil Fuels Make Up 84 Percent Of The Global Energy Market

The largest share of the increase in energy consumption, 41%, was contributed by renewables. Natural gas contributed the second largest increment with 36% of the increase. However, as an overall share of energy consumption, oil remained on top with 33% of all energy consumption. The remainder of global energy consumption came from coal (27%), natural gas (24%), hydropower (6%), renewables (5%), and nuclear power (4%).

$40 Oil Is The New Normal

Oil prices have already reached an interim stage of recovery. The 40-dollar mark is the level around which they will fluctuate for a while, but huge deviations are not likely.

Oil Prices Reach Interim Recovery Stage

Oil prices have now reached an interim stage of recovery. That’s according to Rystad Energy’s Head of Oil Markets Bjornar Tonhaugen, who outlined that prices will fluctuate around the $40 mark “for a while” and that “huge deviations” would not be likely.

When Will U.S. Shale Rebound To Pre-Pandemic Levels?

Analysts have varying perspectives on what happens next for shale drilling. According to Morgan Stanley, the industry will proceed in three phases. First, shut-in wells come back online. Then production stabilizes, but an average of $40 per barrel will be needed for that to occur. Finally, production growth resumes, assuming prices move back up to $50 per barrel. 

Natural Gas Is Ready To Rally

During all the chaos of the response to coronavirus, there has been one area of logic and sanity. Surprisingly enough, given its deserved reputation for massive volatility, the market in natural gas futures has resisted the temptation to follow the stock market and oil futures in overreacting massively to every bit of coronavirus-related news or data. It has, on the whole, moved logically based on long-term supply and demand factors, rather than the latest headlines.

U.S. Oil Drillers Restart Production As Prices Recover

A couple of high-profile shale companies voiced optimism at the start of June. EOG Resources said it plans to “accelerate” production in the second half of 2020, finding prevailing oil prices sufficient to step up drilling activity. The company also reduced its hedging exposure, a sign that the company is bullish about the trajectory of prices.

Arctic Circle oil spill prompts Putin to declare state of emergency

The Russian Investigative Committee (SK) has launched a criminal case over the pollution and alleged negligence, as there was reportedly a two-day delay in informing the Moscow authorities about the spill.

Midland company to invoke idled frac fleet fees on Pioneer Natural Resources

Midland oilfield service company ProPetro plans to exercise a contract clause that obliges Irving oil company Pioneer Natural Resources to pay millions of dollars in fees for idling hydraulic fracturing fleets in the Permian Basin.

The Uncertain Future Of America’s Most Controversial Pipeline

The U.S. Presidential election coming up in November may well decide the fate of the infamous Keystone XL oil pipeline, with the conservative right and the liberal left facing off in a race that could shape the fate of the North American energy landscape for decades to come.  

Surging Crude Prices Send Oil Stocks Soaring Today

Oil prices started this week with a bang. WTI, the primary U.S. oil price benchmark, had rallied more than 10% by 10:30 a.m. EDT on Monday, to around $32.50 a barrel, while Brent, the global oil price benchmark, jumped more than 7% to nearly $35 a barrel. 

Permian Report Supports View Price Crash Has Passed

Pipelines figured prominently among this past week’s top downstream-related articles on Rigzone. Find out why in the recap below that highlights some of the most popular recent articles in terms of page views.

Goldman Sachs: Oil Demand Could Exceed Supply By End-May

Oil demand could rebound enough to exceed supply by the end of this month, Goldman’s head of commodities Jeffrey Currie told Barron’s Market Brief, noting that this would be in no small part because of the production cuts implemented by all major producers.

A Major Bull Run Is Forming In Oil Markets

The oil market is facing an unprecedented crisis as COVID-19 causes demand destruction and OPEC+ has proven powerless to stop oil prices from crashing. But behind what seems like an endless flow of bearish news, a new bull market is already forming.

Texas Railroad Commission rejects statewide oil production cuts

The Railroad Commission of Texas voted 2-1 on Tuesday to reject a proposal that would have enacted statewide oil production cuts but voted unanimously in favor of waiving fees for new crude oil storage projects.

Brent Oil Price Could Double By December

UBS’ Chief Investment Officer Mark Haefele, this morning said that “While the oil market is heavily oversupplied this quarter, we expect it to move toward balance next quarter and become under-supplied in 4Q this year as lockdown restrictions are eased and oil demand picks up.”

U.S. Probes Insider Trading Tied To OPEC+ Oil Deal

The U.S. Commodity Futures Trading Commission (CFTC) is investigating whether non-American traders had obtained insider information about Russia’s position in the OPEC+ negotiations last month, which they may have later illegally used to bet on crude oil futures, Bloomberg reported, citing two people with direct knowledge of the issue. 

Trump Says He Will Add to Oil Reserve

President Donald Trump said he wants to add as much as 75 million barrels of oil to the nation’s Strategic Petroleum Reserve, taking advantage of record low prices for crude, and that he’ll consider blocking imports of crude from Saudi Arabia.

Russia paid a heavy price to end the oil price war

Vladimir Putin’s deal with OPEC to cut oil output and boost prices three years ago was a triumph for the Russian leader, bolstering his clout on the global stage. But now he’s had to make stinging concessions after U.S. President Donald Trump stepped in to end a price war.

OPEC+ Agrees To Less Than 10 Million Bpd Cut

OPEC and its partners led by Russia had been discussing the cuts for four days with all big players agreeing to cut deep. Somewhat surprisingly, however, Mexico refused to sign up for a cut of 400,000 bpd like OPEC+ had asked. 

OPEC Can’t Kill U.S. Shale

OPEC’s strategy in the past has been to alter its oil production in order to bring about market stability. However, the rise of U.S. shale oil forced the cartel to alter its strategy in favor of market share even at the cost of lower oil prices. 

What Will It Take To See $65 Oil Again This Year?

“[M]y prediction is oil will bounce back! And it won’t be because of the emotional reactions Saudi Arabia and Russia took last night, poking out their chests over production cuts. It will be because of basic supply and demand and a lot of people will be scratching their heads saying, ‘Why didn’t I invest in the oil markets when prices were low?’” Young said in his post.

Joe Biden puts Pennsylvania native son status in question by pushing fracking ban

Joe Biden stepped on his claim of being the guy who has the blue-collar worker’s back Sunday night when he pledged that his energy policy will include “no new fracking.” That promise won’t help him win back the blue-collar workers that fled Biden’s party in 2016 to either support President Trump or just stay home. That’s especially true in western Pennsylvania and in the former vice president’s hometown of Scranton, where the natural gas industry has revitalized and created economic opportunity in both regions after decades mired in collapse.

Three Potential Oil Market Scenarios

According to IHS Markit’s latest note, the “current situation” points to the possible buildup of the “most extreme” global oil supply surplus ever recorded. The company estimates that, if the price war continues amidst a global recession and coronavirus crisis, the surplus could range between 800 million and 1.3 billion barrels in the first six months of this year.

Shale’s Low Prices Will Have US Natural Gas Electricity Breaking Records Again This Summer

In 2019, U.S. natural gas easily led commodities with prices dropping by nearly 30% (e.g., Zinc was second, down 5%). Importantly, this drastic fall in the cost of gas came even with unprecedented use. At 86 Bcf/d, “U.S. natural gas consumption sets new record in 2019.”

Plunging oil prices might be just what U.S. gas drillers needed

“The collapse in the crude market is going to create a more constructive gas setting,” said Matthew Portillo, managing director of exploration and production research at Tudor, Pickering, Holt & Co. “Slowing U.S. growth is going to significantly affect associated gas production.”

Saudis Slash March Crude Oil Exports To China As Demand Slumps

China’s top oil supplier and the world’s largest oil exporter, Saudi Arabia, will be cutting its crude exports to the world’s top oil importer by at least 500,000 bpd in March because of a slump in refinery demand amid the coronavirus outbreak, Reuters reported on Thursday, citing sources familiar with the plans.  

A US gas pipeline operator was infected by malware—your questions answered

Assessing the threat that the event posed to public safety requires an understanding of ICS and the way ransomware infections have evolved. What follows are answers to some of the most frequently asked questions:

The Permian Pipeline Even Environmentalists Should Support

Kinder Morgan just got cleared by a court to build a 2-billion-cu-ft pipeline that will carry natural gas from the Permian to Houston. That’s 2 billion cu ft of gas that will not be flared. From an environmentalist point of view, the pipeline should be, if not good, then at least a lesser evil than the alternative.

What A Bernie Sanders Fracking Ban Would Mean For Texas

Bernie Sanders is one of the leading candidates seeking the Democratic nomination for president. However, the senator from Vermont has policies that traditionally could be a hard sell here in Texas. Last week Sanders filed a bill that, if passed, would ban fracking.

Judge allows contested pipeline to proceed through central Texas

U.S. District Judge Robert Pitman wrote in an eight-page decision that Central Texas landowners, the City of Austin and other local governments had not proven they would suffer “irreparable harm” if Houston-based Kinder Morgan is allowed to move forward on the Permian Highway Pipeline while litigation against it continues.

America, Not Paris, is the Environment’s Best Champion

“The Paris Accord would’ve been a giant transfer of American wealth to foreign nations that are responsible for most of the world’s pollution,” President Trump said at the Shale Insight conference in Pittsburgh. “My job is to represent the people of Pittsburgh, not the people of Paris.”

What Happens If The Next U.S. President Bans Oil Exports?

All the leading Democratic candidates have vowed to reduce the country’s emissions to net zero by 2050, which is a pledge general enough to overlook, but some have also promised to ban oil exports as part of push to net zero emissions. Now this is a promise that the industry cannot overlook.

U.S. energy chief downplays effect of coronavirus on oil markets

“The coronavirus, as we can determine today, has not had  a tremendous impact on energy production or energy purchases just yet,” he said after a talk at the Atlantic Council in Washington. “For the moment the Chinese seem to have a clear indication of the virus itself, where it is, and are taking aggressive steps to control a potential outbreak.”

OPEC+ in second day of talks as Saudis push for emergency cut

OPEC+ officials gathered in Vienna for a second day of debate on the impact of the coronavirus, a process that could result in an emergency ministerial meeting where Saudi Arabia would push for an oil-production cut.

4 Promising Oil Trends To Watch In 2020

Granted, state-owned behemoths and giant energy companies tend to have more than their fair share of discoveries. But that does not in any way mean smaller companies have been missing out on the action–on the contrary, they have time and again showed up the big boys and earned their bragging rights in the arena, too.

Expect A Strong Year For Oil Discoveries

Despite growing anti-oil sentiment, oil and gas companies unearthed 12.2 billion new barrels of oil and oil equivalent last year, according to Rystad Energy—a figure that represents a four-year high—and offshore is where most of these new discoveries lie.

How the Oil Market Learned to Live With a Middle East in Flames

It’s a trading pattern that would have been unthinkable a decade ago, but has become increasingly familiar. The threat of conflict loomed over the heart of the global oil market this past week, but the usual panic buying by traders and consumers was met quickly by a wave of U.S. shale drillers grasping the opportunity to lock in prices for future production.

Despite Trump’s Claim, the U.S. Still Needs Some Middle East Oil

Before the “shale revolution,” as American drillers call it, Gulf coast refiners invested millions of dollars to process relatively cheap heavy oil from the Middle East and Latin America. At the same time, shale oil is much lighter and lower in sulfur compared with supply from the Persian Gulf, and not ideal for most American refineries.

Chevron pulls employees out of Iraq amid escalation

Chevron said it was evacuating its workers and contractors from the Kurdistan Region in northern Iraq after the U.S. State Department urged Americans to flee Iraq because of concerns from Iran-backed militias and the potential targeting of Americans in the area.

Denver company tests evaporation as solution for oil field wastewater

The company’s Carrier Gas Concentration, or CGC, technology receives oil field wastewater, which is known in the industry as saltwater, and separates the water from oil, natural gas, chemicals and other contaminants. The water is heated to the point of evaporation and released as steam while everything else is left behind as a super concentrated brine.

Permian Advocates See Methane Emissions Progress

Permian explorers are flaring more than ever before as record oil drilling created a surfeit in a region too sparsely populated to use all the gas that arises as a byproduct of crude output. Permian drillers flared enough gas last year to fuel every household furnace, stove and water heater in the state of Texas.

Alex Epstein’s Clear Thinking on Climate and Energy

Epstein’s human-centered optimism sets him apart from both sides of the climate and energy debate. As he points out in a recent talk at the University of Texas at Austin, if there is a climate crisis, it’s not showing up in the numbers that matter most. 

The OPEC+ Deal Was The First Step To $100 Oil

The U.S. vs China trade war and Brexit “noise” out of Europe have been the driving forces behind the global recession fear. Only a prolonged and severe recession will cause a decline in demand for oil-based transportation fuels and feedstock. So far, there has been no decline in oil demand in the real world, primarily because the U.S. economy is expanding.

Exxon Mobil Beats New York’s Climate-Change Accounting Case

Tuesday’s ruling, by New York Supreme Court Justice Barry Ostrager in Manhattan, is a blow to the state’s attorney general, Letitia James. In the securities fraud lawsuit, filed in October of last year, New York accused Exxon of lying to shareholders about its use of a “proxy cost” for carbon in accounting for future climate change regulation to make them think the company was being more prudent than it was.

The One Sweet Spot That Continues To Drive Permian Growth

Before hydraulic fracturing, Bone Spring was a target for conventional oil. After the introduction of fracking and horizontal drilling across U.S. shale plays, production from the Bone Spring formation has risen significantly, and it is now one of the fastest developing unconventional plays in the United States, the EIA said in a report on the Permian’s Wolfcamp and Bone Spring shale plays.

Visualizing The US Shale Slowdown

There continues to be much speculation and information pointing to a potential slowing of US oil production.  However the latest production data from the EIA continues to point higher, albeit at a slower rate.

Texas Wildcatters Scoff at Growth Predictions

What’s ticking folks off these days is how the International Energy Agency in Paris and the Energy Information Administration in Washington still predict robust U.S. production growth next year, despite the dire reality on the ground. The IEA expects an increase of 900,000 barrels a day, while the EIA forecasts 1 million, which would mean practically replicating this year’s expansion.

Putin Calls U.S. Shale “Barbaric”

Vladimir Putin has spent his week cozying up to the Organization of Petroleum Exporting Countries (OPEC) and dissing the United States’ oil industry, dismissing shale oil production as a “barbaric” process. At the same time, Putin has announced that Russian oil output has increased despite the fact that the country has also pledged to remain cooperative with OPEC’s production curbs.

‘Deep Electrification’ Means More Natural Gas

For environmental reasons, there’s an ongoing push to “electrify everything,” from cars to port operations to heating. The idea is that a “deep electrification” will help lower greenhouse gas emissions and combat climate change.

How To Trigger A Global Recession In One Easy Step: Ban Fracking

In a time long ago, seven years this month, President Obama and candidate Mitt Romney sparred in their second debate over the extent to which Obama deserved credit for increasing America’s oil and natural gas production. Three years later President Obama would, without fanfare, sign epic legislation reversing a 40-year-old petroleum export ban.

Exxon Blasts NY for Walking Back Claims at Trial’s End

The New York attorney general’s office dropped its claim that Exxon Mobil Corp. intentionally misled investors about how it accounts for the financial risks of climate change, significantly diminishing the state’s case in the last minutes of a high-stakes securities fraud trial.

Thousands of acres sealed off following blowout at Eagle Ford Shale well

The accident happened at a Devon Energy natural gas well near Cotton Patch Road and FM 952 in DeWitt County early Friday morning. No injuries were reported but authorities evacuated rural families living within a two-mile radius of the blowout, which sent natural gas and other pollutants spewing into the sky and surrounding countryside.

Democrats Just Accidentally Sparked A Federal Fracking Boom

Senators Bernie Sanders and Elizabeth Warren have both promised to ban hydraulic fracturing. As president, neither would be able to outright ban the practice entirely, as it would require an act of Congress. But their ability to disrupt the use of fracking on federal lands would be much greater.

The incredible collapsing ‘#ExxonKnew’ climate change lie

The claim: Exxon had long known that consuming oil would cause global warming but hid the facts. In fact, the company for decades published findings closely matching mainstream science. No one has ever produced any evidence of a coverup.

Permian Water Project Secures Financing

A pipeline project that would transport non-potable reclaimed water from Lubbock, Texas, to industrial customers in the Permian Basin has cleared an important hurdle.

The Counterintuitive Cure For Low Oil Prices

Demand for oil-based products has gone from 75 million per day in 1999 to 101 million barrels per day in 2019. So, simple math [(101-75)/20] tells us that we need to add about 1.3 million barrels per day of new supply each year. There is no evidence of “Peak Demand”.

Chevron Sees Boom Boom Boom Permian

Steve Green, president of Chevron’s North American business, was insistent that the world’s biggest shale patch won’t be susceptible to historic boom-and-bust cycles that have dominated the Texas oil economy for decades. His booming nod to continuing good times came Tuesday during a panel discussion at the Lone Star Energy Forum in Austin.

The Complete History Of Oil Markets

Like most other commodities in the markets, crude oil prices have routinely experienced wild price swings alternating between times of great shortages, high demand and high prices and periods of oversupply, low demand and depressed prices. These so-called crude oil “Price Cycles” tend to last several years, depending on variables such as oil demand, volume of oil drilled, processed and sold by the major producers.

Conventional Discovery Shortfall Demands Well Diversity

Over the past decade, the U.S. oil and gas sector has emphasized developing short-cycle-time unconventional projects rather than wildcat drilling that targets potentially more bountiful conventional plays.

Texas cities threaten to sue over Kinder Morgan pipeline

Citing concerns about seven endangered and threatened species found only in the Edwards Aquifer, the cities of Austin, San Marcos and Kyle have joined two groups in a threat to sue two federal agencies in order to stop Kinder Morgan’s Permian Highway Pipeline from going through the Texas Hill Country.

Iran President Vows Revenge For Oil Tanker Attack

Bloomberg reports that the Iranian President also said government officials had seen footage of the attack and it suggested several rockets had been launched at the vessel. Rouhani did not say who Tehran believed the culprit was but did note that it looked like the party behind the attack was a government rather than a terrorist group.

Saudi Arabia Denies Any Involvement In Iran Tanker Attack

“We did not engage in such behaviour at all. This is not how we operate and that’s not how we did (it) in the past,” Saudi Arabia’s foreign minister, Adel al-Jubeir, told media in response to questions about the Iranian tanker Sabiti.

The Real History Of Fracking: Oil, Bombs And Civil War

Surprisingly, fracking can be traced back to 1862. It was during the battle of Fredericksburg VA., where Colonel Edward A.L. Roberts discovered something incredible when firing explosive artillery into a narrow canal that was blocking the battleground. The breakthrough was then described as ‘superincumbent fluid tamping.’

Texas Pipeline Expansion Would Avoid Aquifer

Besides providing new Permian crude takeaway capacity, the pipeline will help EPD to optimize its entire four-pipeline Midland to ECHO system, the company stated. It noted that it expects to achieve $60 million in annualized cost savings primarily by significantly reducing the use of costly drag-reducing agents and managing pump operations.

U.S. Natural Gas Reserves Continue To Soar

Ever since the U.S. shale revolution took flight in 2008, it’s been a consistent theme: not just rising natural gas production but also rising proven natural gas reserves. In fact, over the past decade, the U.S. Department of Energy reports that our proven gas reserves have ballooned nearly 85% to almost 450 trillion cubic feet (Tcf). It’s all turned the previous pre-shale notion that reserves were dwindling and production was in permanent decline on its head.

Drilling Down: Independents versus majors in Permian Basin

Scale is becoming more important in making the West Texas shale play economic, a factor which has large independents and oil majors jockeying for dominance by filing ever-larger batches of drilling permits.

OPEC output suffers biggest drop in 16 years on Saudi attacks

Supplies from the cartel’s 14 members plunged by 1.59 million barrels a day to 28.32 million a day, according to a Bloomberg survey of officials, ship-tracking data and estimates from consultants including Rystad Energy AS, JBC Energy GmbH and Energy Aspects Ltd. It’s the biggest monthly drop since labor strikes briefly paralyzed Venezuela’s oil industry in 2002.

Texas Beats Goal for Cleaning Abandoned Oilfield Sites

The Railroad Commission of Texas (RRC), which regulates the exploration, production and transport of oil and natural gas in the Lone Star State, reported Friday that it has more than doubled its Fiscal Year (FY) 2019 goal for cleaning up abandoned oilfield sites.

Scientists Find Cheaper Way Of Tapping Shale Gas Resources

Unlike the usual way of exploring for new reserves, which relies on existing production data along with geological tests, the Penn State method leans on historical production data, and from a lot more wells than usual.

Saudi oil attacks an ‘act of war’ by Iran, not Yemen rebels, Pompeo claims

Pompeo, speaking from Jeddah, Saudi Arabia, added that even if the “fraudulent claims” of responsibility by the Yemen Houthi rebels were true, “it doesn’t change the fingerprints of the [Iran Supreme Leader Ayatollah Ali Khamenei] as having put at risk the global energy supply.”

Pro-Oil T-shirt Too Political For Canadian Parliament…Again

The National Post reports a couple from Calgary, Chris Wollin and Mallory Hartviksen, were on a visit to Ottawa and decided to go on a tour of the House of Commons. Both were, apparently, wearing T-shirts that said “I love Canadian oil and gas.” According to Chris Wollin, “a security guard came over to us and said ‘Just so you know if you come back for a tour, you can’t have those shirts on because they are too political.’”

Fuel prices fall again, but spike could loom after Saudi attack

Prices at the pump fell again last week, but a spike could loom in the days ahead following the weekend attack on Saudi Arabia’s oil supplies.

The U.S. exports more oil than Saudi Arabia

Surging output from shale helped America ship almost 9 million barrels a day of crude and oil products in June, surpassing Saudi Arabia, the International Energy Agency said in a report, citing gross export figures. There’s room to send even more supply overseas as companies add infrastructure to transport the burgeoning production from fields in Texas and New Mexico to the coast.

Shippers Afraid To Give Venezuela Tankers To Export Crude

The Trump administration has been tightening the noose around Venezuela. The latest round of sanctions was signed in August and they spread to anyone doing business with the Maduro government. Following the signing of the order for the sanctions, the Shipowners’ Club told its members to “exercise caution” in their dealings with Venezuela.

Big Oil Circles Permian Riches

A bloodbath in energy stocks is creating a rich opportunity for Big Oil to dominate America’s hottest shale play. Independent producers in the Permian Basin of Texas and New Mexico are trading much lower than when Chevron Corp. bid for Anadarko Petroleum Corp. in April. Royal Dutch Shell Plc and ConocoPhillips have expressed interest in bulking up in shale at the right price. Exxon Mobil Corp.’s chief said Wednesday his company is keeping a “watchful eye” on the Permian for potential deals.

Satellites become latest tool for competitive shale play

At least a half dozen energy data firms are offering satellite imaging of the 75,000-square mile oil field to provide intelligence to energy companies on the activities ranging from the appearance of drilling pads and hydraulic fracturing ponds to the movements of drilling rigs and frac crews across Permian’s expanse in West Texas and southeastern New Mexico..

Natural gas soon to be outlawed in almost all new Menlo Park buildings

By Jan. 1, 2020, heating systems in all new homes and buildings in the city must run on electricity, and all new commercial, office and industrial buildings, as well as high-rise residences, must rely entirely on electricity, the Menlo Park City Council decided Tuesday night.

Alaska Well Sets Onshore Record

The undisclosed international oil and gas producer drilled a 32,468-foot (9,896-meter) well in July in the National Petroleum Reserve of Alaska’s North Slope, according to Corva, whose real-time drilling and completion analytics technology was used during the operation.

$30 billion exodus: Foreign oil firms bailing on Canada

The drumbeat of exits, rare for such a stable oil-producing country, adds an extra layer of gloom for an industry that accounts for about a fifth of Canada’s exports. The energy sector — centered around Alberta’s oil sands — has struggled to rebound since the 2014 crash in global oil prices, with capital spending declining for five straight years and job cuts pushing the province’s unemployment rate above 6%. Alberta is forecast to post the slowest growth of any region in Canada this year.

Permian State Faces Methane Test

Like a broad swath of West Texas, this sage-covered corner of New Mexico sits atop America’s fastest-growing oilfield. On the Texas side, oil and gas producers can drill and frack with relatively few bureaucratic hurdles. In New Mexico, 90% of Permian production takes place on lands owned by federal or state government, meaning companies need additional approvals from either the U.S. Bureau of Land Management or the state’s Land Office and Oil Conservation Division.

OPEC’s market share sinks – and no sign of wavering on supply cuts

OPEC’s share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy.