INDUSTRY NEWS
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.
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.
EPIC delivers first Permian Basin crude oil to Port of Corpus Christi
EPIC is temporarily using the natural gas liquids pipeline to ship crude oil amid increased production in the Permian Basin but limited pipeline options to get it to market. The company is building a West Texas to Corpus Christi crude oil pipeline but in the meantime, the Y-Grade natural gas liquids pipeline will be able to deliver up to 400 thousand barrels of crude oil per day.
U.S. oil sector sets another record in another sign of energy independence
The U.S. surpassed Saudi Arabia last year to become the world’s biggest petroleum producer, according to the Energy Department. Last year’s increase in the United States was one of the largest absolute petroleum and natural gas production increases from a single country in history, the EIA said. It’s another sign that the U.S. is quickly moving toward energy independence or as Trump likes to call “energy dominance.”
Corn Industry Battered By Shocking Ethanol Decision
The Trump administration has tried to thread the needle between the corn ethanol and oil refining industries, as the two battle it out over federal policy. The EPA may have thought it came up with a balanced approach when it issued a series of recent decisions, but judging by market reactions, the agency seems to have decidedly come down on the side of oil over ethanol.
Permian Not on Its Way Out
A handful of industry insiders have speculated that the Permian may be on its way out, noting that well productivity in the region is declining. That’s what Rystad Energy highlighted in a company statement posted on its website on Friday. The energy research company emphasized in the statement, however, that the truth is “quite the opposite”.
Texas Crude Is Fetching Better Prices
Several major oil pipelines connecting West Texas to the Gulf Coast are set to come online in the next few weeks and months, allowing more Permian oil to hit the global market.
Drilling Down: Pioneer’s big bet on the Midland Basin
With the best acreage being drilled by an ever-growing number of companies, Sheffield said the Delaware Basin is expected to peak in 2024 while the Midland Basin is not expected to peak until the mid-2030s.
Kinder Morgan ordered to pay Hill Country landowner nearly $250,000 in property damages
Kinder Morgan faces similar challenges elsewhere along the Permian Highway Pipeline route in the Hill Country. In a Thursday morning statement, the Houston pipeline operator called the TREAD coalition a “not in my backyard group” and said that the company plans to appeal the commission’s order.
Permian Fracking Continues to Break Records
Hydraulic fracturing (fracking) in the Permian broke old records in June, according to energy research firm Rystad Energy, who estimates there were as many as 18 wells fracked per day in June.
Russia Gains Stranglehold Over Persian Gulf
In a potentially catastrophic escalation of tensions in the Persian Gulf, Russia plans to use Iran’s ports in Bandar-e-Bushehr and Chabahar as forward military bases for warships and nuclear submarines, guarded by hundreds of Special Forces troops under the guise of ‘military advisers’, and an airbase near Bandar-e-Bushehr as a hub for 35 Sukhoi Su-57 fighter planes
Berkeley Natural Gas Ban Signed Into Law By Mayor
“Gas is the clean energy relative to coal and diesel, but California has committed to the environmental requirement, in that is all gas has to be gone by mid-century,” Dan Kammen – Professor of Energy, U.C. Berkeley.
Light Oil Set To Flood Global Market
While the U.S. became the world’s largest oil producer last year thanks to shale and found a place among the top ten oil exporters in the world, it changed the blend mix on global markets, Eni said in its report. Thanks to shale, the portion of light sweet crudes on international markets increased to more than 20 percent.
Surf’s Up: Second wave of LNG is here
The long-anticipated “second wave” of liquefied natural gas projects is here as tsunami of final investments decisions get made and construction contracts awarded, executives and analysts said.
Millions Of ‘Hidden’ Iranian Barrels Set To Hit Oil Markets
In what appears to be a gesture of contempt for Washington, Chinese companies have continued to import Iranian crude, but instead of reporting the crude imports, which would violate US sanctions, they’re storing the oil in bonded storage tanks situated at Chinese ports.
Oil Tanker Off Yemen Coast Close To Exploding
The vessel in question is loaded with some 1 million barrels of crude oil with energy experts fearing that the gas build up might eventually lead to a blast and a spill. A UN team has tried to approach it to assess the situation, but the Houthis who control the area where the tanker is moored have refused to grant them access.
Hill Country pipeline opponents threaten lawsuit over golden-cheeked warbler habitat
A state district judge in Austin tossed the lawsuit in June but Hays County and the others are expected to file an appeal. Kinder Morgan maintains that the route was carefully chosen to impact the fewest number of landowners and that the company will protect environmentally sensitive areas.
Fracking Under Fire In California
Last week, California Governor Gavin Newsom sacked the state’s top oil regulator after the Desert Sun reported that fracking permits in California doubled in the first six months of this year without the Governor’s knowledge. The Desert Sun report was based on data from FracTracker Alliance and Consumer Watchdog, two organizations that keep tabs on the industry.
Persian Gulf Conflict Could Send Oil Beyond $325
The possibility of Iran attempting to close the Strait of Hormuz to tanker traffic has increased significantly in recent weeks, as has the possibility of a Persian Gulf War, especially with the Islamic Republics’ intentional destruction of a U.S. surveillance drone on June 20.
Saudi King Says Iran Threatening Global Oil Supplies
Saudi King Salman Bin Abdulaziz accused Iran of threatening global oil supplies and shipping at a meeting of Arab leaders that called on the international community to confront Tehran following attacks on shipping and rising tensions in the oil rich region.
Judge tosses out lawsuit against Kinder Morgan’s Permian Highway Pipeline
Livingston heard testimony from both sides of the case during a two-day hearing in late May. After nearly four weeks of reviewing evidence and testimony, the judge sided with Kinder Morgan and the Railroad Commission. In a statement, Kinder President of Natural Gas Pipelines Tom Martin said the company was pleased with the ruling.
US Oil Production Hits New All Time High
“These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.
Iran Says News Of Oil Reduced Exports is “Absolutely Wrong”
Zanganeh did not provide different figures, adding that it was not in the country’s best interest to do it. Since the levying of sanctions by the United States, Iran has used tactics such as switching off transponders that would allow its oil exports to be quantified and tracked, making the estimates of its oil exports just that—estimates. Iran is now claiming it has new tactics to shield its exports, as well as new destinations for its oil, but failed to provide further details.
Gasoline prices fall again, but rebound coming
Houston gasoline prices fell for the sixth straight week, but the streak is likely to end after crude prices rallied on increasing tensions between Iran and the United States.
U.S. Oil Sanctions Trigger Recession In Iran
After the U.S. ended all sanction waivers for Iran’s oil customers on May 2, Iran’s crude oil exports dropped significantly in May this year compared to April and plunged by more than 2 million bpd off their 2.5-million-bpd peak in April 2018, just before the U.S. withdrew from the Iran nuclear deal and moved to re-impose sanctions on Iran’s oil industry.
U.S. Oil Sanctions Trigger Recession In Iran
After the U.S. ended all sanction waivers for Iran’s oil customers on May 2, Iran’s crude oil exports dropped significantly in May this year compared to April and plunged by more than 2 million bpd off their 2.5-million-bpd peak in April 2018, just before the U.S. withdrew from the Iran nuclear deal and moved to re-impose sanctions on Iran’s oil industry.
Permian Oil Output Set to Keep Growing
The U.S. Energy Information Administration (EIA) has forecasted that Permian oil production will hit 4.226 million barrels per day (MMbpd) next month in its latest drilling productivity report.
Goldman: No One Knows What’s Going On In Oil Markets
Bloomberg this week quoted Goldman Sachs’ commodities chief Jeffrey Currie as saying it has become “increasingly difficult to know what production levels will balance the market.” Currie was referring to the decision OPEC+ needs to make at the start of next month on whether to continue cutting production or start increasing it. The analyst attributed this higher difficulty to the lack of clarity around Iranian exports and steadily rising U.S. production.
Tankers struck near Strait of Hormuz; US blames Iran
The U.S. blamed Iran for suspected attacks on two oil tankers Thursday near the strategic Strait of Hormuz, denouncing what it called a campaign of “escalating tensions” in a region crucial to global energy supplies.
OPEC’s No.2 Steps In To Replace Lost Iranian Oil
U.S. sanctions on Iran’s oil industry were bound to be good news for fellow OPEC producers in the Middle East even if it wouldn’t have been good manners to acknowledge it openly. Yet Saudi Arabia and Iraq were quick to assure market players that they were ready to step in and replace lost Iranian supply. While Saudi Arabia has been wary of reversing its production cuts, however, Iraq has wasted no time in raising its crude oil exports.
Pipe Protesters Could Face 20-Year Sentence Under Trump Plan
Under the federal plan released Monday, protesters who block the construction of a crude or natural gas pipeline could face up to 20 years in prison. It’s one of several changes to U.S. law sought by Transportation Secretary Elaine Chao as part of a periodic reauthorization of pipeline safety rules.
This Giant Oil Field Just Hit An Impressive Production Record
The giant Kashagan oil field in Kazakhstan hit a record-high oil production of 400,000 bpd on Tuesday, a few weeks after returning from planned maintenance, three sources familiar with the field’s production data told Reuters on Wednesday.
Plains, ExxonMobil start on pipeline from West Texas to Houston
The 36-inch-diameter pipeline will carry more than 1 million barrels of oil and condensate per day. Energy analysts previously said the project could carry a $2 billion price tag.
EPA opens up sales on higher ethanol content gasoline, in blow to refineries
The EPA had long restricted sales of the fuel during summer months to prevent against potentially dangerous increases in air pollution. But under pressure from Midwestern farmers, whose corn crops feed ethanol production, the Trump administration announced last year it planned to waive the restriction.
The Next Permian Takeover Target
The next most likely takeover target in the Permian right now is Endeavor Energy Resources, according to Wood Mackenzie (WoodMac). “The storied Permian producer has been on the radar for months as an attractive buy for Shell,” WoodMac said in a company statement.
The Silence Before The Storm In Oil Markets
With oil production plunging in Venezuela and Iran, tension in the Middle East at its highest point in years, and the threat of further outages in Libya, why are oil prices not trading higher?
Pipeline project running through Hill Country raises concern
The pipeline will cut through multiple counties near Austin including, Hays, Blanco, Gillespie, and Caldwell. Many landowners in those counties have already been contacted by the gas company and warned about the potential project.
The Overlooked Factor That Could Send Oil To $50
Currently, there are a myriad of dynamics at play in global oil markets for the Saudis to grapple with. First, they have to make a decision by next month whether or not to keep the second, and current OPEC+ production agreement to remove 1.2 million bpd of oil from markets in place or not. However, many of the factors currently affecting oil markets are out of Saudi control.
New York Rejects $1B Shale Gas Pipeline
The decision comes as states tussle with the Trump administration over pipelines designed to carry abundant natural gas to the Northeast from shale basins in Pennsylvania, Ohio and West Virginia. President Trump has taken action to speed up approval of interstate gas conduits, last month signing an executive order that aims to short-circuit state regulators who have held up projects by denying necessary permits amid environmental concerns.
3 Things To Know About The U.S. Oil And Natural Gas Industry
As it turns out, contrary to wide assertions, U.S. crude production didn’t peak in 1970, and U.S. gas production didn’t peak in 2005. The American shale boom itself is a testament to the non-stop evolution of oil and gas operational efficiencies and technologies. The U.S. oil and gas industry is stronger today than it’s ever been.
Exxon, Chevron Leading The Permian Oil And Natural Gas Surge
This month, the Permian will account for ~35% of U.S. crude production and ~17% of natural gas supply. Oil and gas extraction in the play has more than doubled since 2016.
Why An OPEC Oil Supply Surge Won’t Happen
While most analysts are optimistic about OPEC leader Saudi Arabia being able to fill the gap left by lower Iranian oil exports, reality could be totally different. Looking at the ongoing discussions between OPEC’s two key members, Saudi Arabia and the UAE, there are no real signs that the Kingdom of Oil will be willing to increase its overall oil production to keep prices at the pump low in oil importing nations.
Railroad Commission, Kinder Morgan sued over route of Permian Highway Pipeline
The lawsuit, filed in state District Court in Travis County, asks a judge to block construction of the 42-inch pipeline designed to move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Katy Hub near Houston. That’s roughly enough gas to fuel about 10 million U.S. homes per day.
Permian Drilling Record Reported
In a written statement, Surge noted that its wholly owned Medusa Unit C 28-09 3AH was successfully drilled to a total measured depth of 24,592 feet (total vertical depth of 7,102 feet). Based on IHS and Drillinginfo databases, the well is the longest known lateral in the Permian, the company noted. Surge added that the well was drilled 100 percent in zone of the Wolfcamp A formation with a total lateral length of 17,935 feet, or 3.4 miles.
U.S. to eliminate Iran oil waivers after May 2 expiration
The Trump administration won’t renew waivers that let countries buy Iranian oil without facing U.S. sanctions, according to four people familiar with the matter, a move that roiled energy markets and risks upsetting major importers such as China and India.
Energy use hits record high last year
Consumption of every type of energy source increased last year save one – coal, according to the government. Consumption of coal in the United States fell for the fifth consecutive year.
Exxon and Others Say U.S. Government Sold Toxic Crude Oil
The American energy giant said some of the oil it purchased last year from the Energy Department’s Strategic Petroleum Reserve, or SPR, contained “extremely high levels” of hydrogen sulfide, according to emails obtained by Bloomberg under the Freedom of Information Act. In some cases, the gas level was 250 times higher than government safety standards allow.
The US Biofuel Mandate Does More Harm Than Good
Ethanol’s use can be beneficial in a variety of areas, but the federal mandate far overextends those uses. Instead of protecting the environment, the current ethanol mandate is causing a considerable amount of environmental blowback.
Saudi Aramco’s Breakeven Oil Price Is Higher Than Expected
Saudi Aramco, the national oil company of Saudi Arabia, is by far the largest oil company in the world. The company produces around 13% of the world’s oil, but its business operations have been notoriously opaque for decades. It has often been stated that the company has plenty of low-cost legacy wells that drop its overall production costs to $10 per barrel, or even lower.
Brent steadies below $70 amid stockpile surge, trade optimism
Oil has climbed about 30 percent in London this year with consensus growing that the Organization of the Petroleum Exporting Countries and its allies’ output-cut deal will probably be extended. Unplanned supply losses from Iran and Venezuela are also increasingly tightening the market. But as clouds linger over the global economy, and a new flood of shale-oil pours in from the U.S., the rally has failed to reach last year’s highs.
Infected U.S. Shale Oil Is Being Turned Away by Asian Buyers
As various types of crude pass through the supply chain from inland shale fields spanning Texas to North Dakota, they risk picking up impurities before reaching Asia — the world’s biggest oil-consuming region. Specifically, refiners are worried about the presence of problematic metals as well as a class of chemical compounds known as oxygenates, which can affect the quality and type of fuel they produce.
Pipeline additions boost Permian Basin prices
Permian Basin crude prices have been depressed for months because there haven’t been enough pipelines to take all the West Texas crude to the Gulf Coast. Some of those pipeline constraints are now easing, and prices for Permian crude are finally starting to gain some ground, an analysis from the U.S. Energy Information Administration suggests.
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.
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.
Platts Survey: Brent Oil Price To Average $75 Next Year
On the supply side, the key reason for the banks to see Brent Crude prices recovering from the current $63 a barrel is the expectation that OPEC will announce a production cut at its meeting in early December—of 1 million bpd or even more—to support oil prices, prevent a new glut, and drive the price of oil back into the $70s.
The Oil Price Is Now Controlled By Just Three Men
OPEC has lost what control of the oil market it ever had. The actions (or tweets) of three men — Presidents Donald Trump and Vladimir Putin and Crown Prince Mohammed Bin Salman — will determine the course of oil prices in 2019 and beyond. But of course they each want different things.
Permian shale companies pledge $100M to West Texas, New Mexico
Seventeen energy companies operating in West Texas’ booming Permian Basin said they’re pledging more than $100 million to help improve roads, schools, health care, housing and workforce training.
Corpus Christi LNG Export Facility Starts Production
According to Cheniere’s website, the Corpus Christi Liquefaction project is being designed for five trains with a total production capacity of up to 22.5 million tonnes per annum (mtpa) of LNG. All six trains of the Sabine Pass Liquefaction facility will be capable of producing up to 27 mtpa of LNG.
Global economy will rely on U.S. shale to meet oil demand growth: IEA
As much as 75 percent of global oil production growth could come from the U.S. in the years ahead, meaning increasing volumes of crude would be exported around the world from port hubs in the Houston and Corpus Christi areas.
Federal judge blocks Keystone XL
A federal judge in Montana has blocked the construction of the Keystone XL pipeline after finding the Trump administration had failed to conduct necessary environmental reviews.
Oil Looks Set For A Rapid Bounce
WTI has recently experienced one of its biggest one-month declines in several years, having lost around eighteen percent since hitting a multi-year high of $76.90 last month. There has been a perfect storm for sellers, with factors on both the supply and demand side of the pricing equation putting downward pressure on crude. However, there are indications that things are about to turn and while that high is probably out of reach for now, the bounce back should be sharp and could be very profitable.
Oil Looks Set For A Rapid Bounce
WTI has recently experienced one of its biggest one-month declines in several years, having lost around eighteen percent since hitting a multi-year high of $76.90 last month. There has been a perfect storm for sellers, with factors on both the supply and demand side of the pricing equation putting downward pressure on crude. However, there are indications that things are about to turn and while that high is probably out of reach for now, the bounce back should be sharp and could be very profitable.
Natural Gas Prices Spike On The Back Of Bullish Weather
You have to feel for the natural gas bears today. With December contracts ripping 7.58% today to $3.533/MMBtu, the sudden gap higher in trading was the result of another early November cold blast. This would make the bullish weather calendar streak at eight months straight. Ouch.
Trudeau’s Reforms Won’t Break Pipeline Logjam, Oil Groups Warn
The bottom has fallen out of Canadian heavy crude prices, with their discount relative to the U.S. benchmark near a record amid a supply glut and persistent transport constraints. Trudeau’s government, meanwhile, is both trying to complete a pipeline expansion project it bought this spring and pass a series of legislative reforms on the approval process for major projects.
Always Evolving Global Oil Technologies And Demand
Oil’s progress is without stop. Petroleum fuels, such as gasoline and diesel fuel, have proven superior to other forms of energy in numerous ways, and have enabled the emergence of more efficient prime movers.
Iran starts oil sales to private exporters to beat U.S. sanctions
Iran began selling crude oil to private companies for export on Sunday, part of a strategy to counter U.S. sanctions which come into effect on Nov. 4 and aim to stop the country’s key crude exports, the oil ministry’s news website SHANA reported.
What’s Behind The Latest Oil Price Plunge?
The mercurial nature of the oil market has flipped the mood in the past two weeks from hysterical expectations of severely reduced supply from Iran to concerns over the pace of global economic and oil demand growth.
Permian Refinery Project Gets EPC Contractor
The developer of a grassroots Permian Basin oil refinery on Monday named the overall engineering, procurement and construction (EPC) contractor to complete detailed engineering and construct the facility, which will be located in Pecos County near Fort Stockton, Texas.
US crude rises 5 cents, settling at $69.17, as Saudis pledge to boost output
Oil futures were little changed on Monday after paring earlier losses despite Saudi Arabia’s pledge to raise crude production to a record high, two weeks before U.S. sanctions potentially choke off Iranian supplies.
Are Natural Gas Prices Set To Spike?
Natural gas storage is at record low levels but prices are falling going into winter heating season. Markets seem to be betting that wellhead supply will be sufficient to cover demand this winter. That may be but at what gas prices? This is a game of natural gas risky business.
Texas oil production to grow by 68,000 next month
The Permian increased production faster than expected in October and is projected to grow by nearly 40,000 barrels more than previously estimated, the Energy Department said. By the end of the month, output from the prolific shale play is expected to be just shy of 3.5 million barrels a day.
The Oil Markets Are At A Confusing Crossroads
Not only does the IEA not subscribe to peak supply, but it warns that peak demand may be far off as well. The “drivers of demand remain very powerful,” and consumption is set to continue to climb higher in the years ahead. Transportation will continue to grow, although at a slower pace as electric vehicles begin to take over. But surging petrochemical production and the consumption of plastics will push oil consumption to ever greater heights, the agency believes. Not only did peak supply never arrive, the IEA argues, but “[t]here is no peak in sight for demand either.”
Texas to Mexico natural gas pipeline delayed
Enbridge noted that the delay was due to an inability to test the pipeline due to delays in the completion of the Mexican portion of the pipeline, which connects with the Enbridge section offshore from Brownsville in the Gulf of Mexico. The Mexican portion is being built by Infraestructura Marina de Golfo, a joint venture between the Canadian pipeline and storage company TransCanada and Sempra Energy of San Diego.
Judge Dismisses Charges Against Anti-Pipeline Activists
Minnesota state district judge Robert Tiffany has dismissed charges against three climate change activists who shut down two pipelines operated by Enbridge back in 2016. Although they had reason to be happy with the judge’s decision, the defendants were in fact disappointed: the acquittal happened mid-trial, before they had a chance to use their defense, which would have run along the lines of necessity.
$100 Oil By Christmas?
Thanks to OPEC and Russia’s agreement to restrict supply, and rising world demand for crude, the Brent oil price has climbed past $82 a barrel, a big increase on the $56 prevailing at the same time last year and a four-year high. Also, the collapse in oil prices in 2014 initiated a profound shock to oil companies.
Northern Colorado developers wary of Proposition 112’s effect on economy
The anxiety mirrors that of many Weld County political leaders, including six of seven Greeley City Council members, who voted Tuesday night to pass a resolution opposing Proposition 112, a measure that would increase the distance between oil and gas wells and schools, homes and bodies of water to 2,500 feet. Under the state’s current regulations, setback requirements are 500 feet from homes and 1,000 feet from schools.
Saudis Raise Oil Output to Near-Record Amid Pressure From Trump
OPEC’s largest producer is currently pumping about 10.7 million barrels a day, Energy Minister Khalid Al-Falih told reporters in Moscow on Wednesday. That’s just shy of the record set in November 2016, before the kingdom and allies including Russia agreed to cut production to boost prices.
Power to the Permian? Spotty at Best, Outrun by Shale Boom
The Permian Basin, which produces almost 4 million barrels of oil a day, has expanded so quickly that suppliers of the electricity needed to keep wells running are struggling to keep up.
A Breakthrough for Hydraulic Fracturing
A revolutionary study of groundwater quality in the Ohio Middle Ordovician Utica Shale hydraulic fracturing play provides new evidence that “fracking” operations are safe to nearby water sources.
How Much Oil Can Saudi Arabia Really Pump? We’re About to Find Out
For the first time since Saddam Hussein invaded Kuwait in 1990, Saudi Arabia could face the ultimate petroleum test: pushing its complex network of oilfields, processing plants, pipelines, tank farms and export terminals to the limit, pumping every possible barrel of oil.
Mexico To Start Importing Light Crude Next Month
Mexico’s state-owned oil company Pemex plans to start importing up to 100,000 barrels of light crude daily, ending decades of oil self-sufficiency as declining domestic production meets rising energy demand.
Raymond James: Permian pipeline constraints for at least 12 months
The report by analysts at Raymond James says the West Texas region should see pipeline constraints ease by the end of 2019 and that price differences between oil sold in Midland and the Gulf Coast won’t be as severe as previously estimated.
The Oil And Gas Situation: The Great Permian Capital Reallocation Begins
A new report from the U.S. Energy Information Administration (EIA) indicates that the growing shortage of pipeline takeaway capacity in the Permian Basin of West Texas and Southeast New Mexico is resulting in some companies reallocating capital initially earmarked for Permian drilling to other areas in which they produce.
Oil Prices Jump On Saudi Arabia’s $80 Claim
Earlier this month, sources at OPEC and the industry told Reuters that Saudi Arabia was looking to manage the oil market in a way that would keep oil prices in the $70 to $80 band for the time being, as the Kingdom wants a floor under prices to monetize oil exports and at the same time keep a ceiling until at least the U.S. mid-term elections in November.
Company to invest nearly $300 million in West Texas natural gas pipelines
ONEOK plans to build four new pump stations, upgrade two existing pumps and add pipelines that would increase the system’s mainline capacity 80,000 barrels a day. The expansion is expected to be completed by the first quarter of 2020.
Why The U.S. Is Suddenly Buying A Lot More Saudi Oil
The cartel’s largest producer and exporter, Saudi Arabia, has been specifically targeting an increase in crude oil exports to the most transparent market, the United States, which reports crude oil imports and inventory levels every week.
10 Incredible Facts About American LNG Exports
For some reason there doesn’t seem to be much of a national discussion about the amazing shift in the American energy trade. Yet in a few short years the United States will become a net exporter of energy products and petrochemicals. That will erase an energy trade deficit that peaked at $321 billion in 2011.
Report: More than $90 billion in deals made in Permian Basin since 2013
The study’s authors said some of the most active dealmakers in the Permian Basin included Parsley Energy with 12, Diamondback Energy with eight, and Callon and Concho Resources, each with five deals.
Company starts up Permian crude oil-by-rail terminal
Vista Proppants and Logistics of Fort Wort signed the deal with JupiterMLP to ship crude oil by train from Vista’s Pecos loading facility.
How Can U.S. Help Its Neighbors? Export More Natural Gas
The price of natural gas is low, the supply is abundant and the technology in place to ship it safely worldwide. This cleaner and lower-cost electricity can help transform America’s neighbors.
U.S. offers 11 million barrels of oil as Iran sanctions kick in
That timing may reflect the White House’s concern over a tight oil market amid the renewal of U.S. sanctions on Iran, according to analysts at ClearView Energy Partners LLC. The Trump administration has asked allies to halt all imports of Iranian oil by Nov. 4, stoking global supply fears.
Oil exports exceed imports for first time on Texas Gulf Coast
In April oil exports in the Houston-Galveston port district exceeded imports by 15,000 barrels a day, and in May that difference grew to 470,000 barrels a day, according to data from the Department of Energy. The Houston-Galveston port district includes the ports of Houston, Texas City, Galveston, Freeport, Port Lavaca, and Corpus Christi.
Crude-By-Rail Could Save The Permian Boom
Crude-by-Rail (CBR) has been a savior for North American producers seeking higher returns for heavily discounted crudes caused by a lack of pipeline take-away capacity. And CBR, once again, is on the rise. North American shipments of petroleum and petroleum products are up over 10% year-to-date compared to 2017.
US Judge Orders Review Of TransCanada’s Keystone XL Pipeline Route
A federal judge in Montana has ordered the U.S. State Department to do a full environmental review of a revised route for the Keystone XL oil pipeline, possibly delaying its construction and dealing another setback to TransCanada Corp.
Saudi Arabia And Iran Reignite The Oil Price War
The rivalry between Saudi Arabia and Iran is becoming increasingly evident in the oil pricing policies of the two large Middle Eastern producers. The two countries are currently reigniting the market share and pricing war ahead of the returning U.S. sanctions on Iranian oil.
Multibillion-dollar deals show Permian’s dominance
The booming Permian Basin continues to reshape the Texas oil and gas industry, driving two more multibillion-dollar deals as local energy companies and investors move to cash in on producing, transporting and exporting the flood of crude and natural gas from West Texas.
BLOG: Reflections from My Visit to the Permian
While many oilfield workers are enjoying the higher wages and steady work, some West Texas residents are struggling with the adverse effects of the latest oil boom.
Locked Into Hedges, Shale Misses Out On Oil Price Rally
Shale drilling has historically been a loss-making proposition. The precipitous decline in output from shale wells meant that companies had to use the revenue from one well to drill the next well. Cash was continuously recycled back into new wells, and shareholders rarely saw any profits flow back to them.
BP buys big into Permian, U.S. shale with $10.5 billion deal
The sale represents a major turnaround for BP as it seeks to grow again after the 2010 Deepwater Horizon tragedy in the Gulf of Mexico. The deal includes all of BHP’s acreage in West Texas’ booming Permian Basin, South Texas’ Eagle Ford shale and Louisiana’s Haynesville shale.
West Texas company to build large Permian pipeline system
Midland-based Oryx Midstream Services II is adding an additional 180 miles to its under construction regional crude oil regional pipeline system. When complete the total system will include 400 miles of pipeline capacity, 650,000 barrels of pipeline capacity and 1.5 million barrels of crude oil storage.
U.S. crude oil output hits 11 million barrels per day for first time ever
The gains represent a rapid increase in output, as the data, if confirmed by monthly figures, puts the United States as the second largest producer of crude oil, just behind Russia, which was producing 11.2 million bpd in early July, according to sources.
U.S. To Slap Sanctions On All Iranian Oil Buyers
The United States intends to impose sanctions on all customers of Iranian oil, including China, the EU, and Russia, Treasury Secretary Steven Mnuchin said on Thursday, signaling that the U.S. will be working to cut off Iran’s access to the oil market.
EPA Scraps Detailed Plan To Force US Refiners To Blend More Biofuels
The plan would have boosted the renewable fuel blending obligation for the refining industry to 11.76 percent from 10.88 percent to offset volumes lost under the waiver program, which has been expanded sharply under President Donald Trump’s EPA, and keep overall blended volumes on target.
Oil is likely to jump another 10 percent this summer
Kloza, who accurately called the 2015 oil collapse, reiterated his bullish case for oil three days after the commodity hit its highest price since 2014. However, he rolled back the odds of an oil shock to $100 this year.
Oil CEOs Are Making Their Case Against Being Sued Over Climate
“It’s sort of bizarre that the users of our products say: ‘Well actually we didn’t want your product. So why did you force it on us?”’ Shell CEO Ben van Beurden told reporters on Thursday in London. “I don’t think also that in the end it will solve anything other than maybe redistributing wealth to a certain class of the economy.”
USGS: Two earthquakes hit near Pecos
The 52 quakes reported in the last year around Pecos trails the 352 earthquakes reported near Wellington, Kansas, in the last 365 days, according to earthquaketrack.com. The USGS reported a 3.2 magnitude earthquake near Wellington on Wednesday morning. Wellington is about 29 miles south of Wichita, Kansas.
Oil prices face inventory, spare capacity test
A survey of analysts from commodity pricing group S&P Global Platts this week revealed expectations of a 4.5 million barrel drain in U.S. crude oil inventories last week. Data published by the American Petroleum Institute was in line with the estimate from Platts.
Saudi King To Trump: We Will Boost Oil Output If Needed
The U.S. President has been very active in urging OPEC to start pumping more oil in a bid to tackle rising prices at the pump at home ahead of mid-term elections. He began by berating the cartel and Russia for keeping prices artificially high by quashing production, but later he changed the tone and began urging them to co-operate.
Japanese firm buys into Texas shale fields
Japan’s Oaska Gas said Friday it is buying into East Texas shale gas fields, acquiring a stake from Houston-based Sabine Oil & Gas.
Oil companies can’t be sued for climate change even though it’s real
In his order to dismiss the case, Judge William Alsup, who was presiding over the lawsuit, agreed that burning fossil fuels has contributed to global warming and sea level rise. But, in his opinion, lawsuits aren’t the best solution for this planetary problem. “Nuisance suits in various United States judicial districts regarding conduct worldwide are far less likely to solve the problem and, indeed, could interfere with reaching a worldwide consensus,” he wrote.
Kinder Morgan proposes $2 billion gas pipeline
The project is designed to utilize a 42-inch pipeline stretching about 430 miles from Waha to Gulf Coast and Mexico markets. Kinder Morgan reports that, given the level of producer inquiry, the company is evaluating the economic and hydraulic feasibility of a 48-inch pipeline to increase transportation capacity.
Goldman: Expect Another Bull Run In Oil
The expected increase in oil production will not leave the market in a situation of oversupply, and in fact, barring no further action, the world could still be short of oil over the next year.
Future of oil majors increasingly shaped by fate of global gas
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Equity Ramping Up to Target Unconventional Plays Including the Permian
The past few quarters have seen a marked resurgence in activity and investment in unconventional oil and gas basins in the United States. So much so that discussions about decline curves and pipeline capacity have also resurfaced.
OPEC Faces a Bigger Problem in Washington Than Trump’s Tweets
U.S. politicians have tried several times since 2000 to pass the NOPEC bill, but the White House opposed it — both George W. Bush and Barack Obama threatened to use their veto. The risk for OPEC is that Trump may break with his predecessors.
Pipeline constraints hit WT Sour, Intermediate prices
In recent weeks, companies such as Plains All American and Phillips 66 have set their posted prices for West Texas Sour almost $12 below what they pay for West Texas Intermediate. The posted price for West Texas Sour ended the week at $49.80, compared to $61.50 for West Texas Intermediate, according to Plains All American.
OPEC Likely to Agree on Production Increase Next Week
The Organization of Petroleum Exporting Countries and its allies are set for contentious meetings on June 22 to 23 as they review whether to unwind supply curbs put in place 18 months ago. While the producers able to revive production are ready to do so, there’s growing opposition from countries who can’t.
Oil boom bottleneck costs Permian investors $1 billion a day
Even as production soars in the Permian, dwindling pipeline space and a rail and trucking shortage have raised shipping costs, boosting the discount producers in the region take to offload their oil. The bottleneck benefits refiners who can buy cheaper crude and pipeline owners with extra space, but it’s dragging down explorers.
Gas Glut in Permian Sparks Dilemma Over How Much to Burn
With natural gas pipelines in the Permian Basin reaching 98 percent of capacity, Texas is weighing whether to keep intact or loosen strict state regulations that limit flaring, the process used by drillers to burn off excess gas pumped up along with their oil.
Oil Is Still Going To $80
Oil prices are taking a hit right now as the media and markets are fooled by a narrative that new oil supply is coming onto the market from Saudi Arabia and Russia. That is not the real story. In fact, it’s #fakenews.
Pipeline leaks test drone developers
Right now twelve drone and other technology developers are competing in a contest to see who can build the most effective device to find methane leaks, in a contest staged by the Stanford University Natural Gas Initiative and Environmental Defense Fund.
Permian-Based Tech Kicks Produced Water Recycling Up a Notch
A “very practical” approach that Permian operators have employed is recycling and re-using produced water, said Burnett. “No one is using fresh water aquifers’ groundwater for oil and gas operations. Brackish ground water and recycling and re-use fills the need for shalers.”
Saudi Arabia turns to Halliburton for its fracking needs
While Saudi Arabia is known as the world’s largest oil exporter, it has vast supplies of gas as well, but much of it is difficult to recover from shale rock and tight sand. The goal is to use the unconventional drilling and fracking technologies developed in the U.S., especially in Texas, to tap into those gas resources.
Oil Prices Mixed After This U.S. Shock; OPEC, Russia Eye ‘All Options’
Oil prices recovered some ground Wednesday after a surprise jump in U.S. crude inventories, which added another headwind to oil markets following suggestions that OPEC might increase production.
The $100 a barrel oil wager comes back to the options market
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months.
EPA Goes To War With California
The EPA is expected to announce a rollback of corporate average fuel economy to hold the numbers to 34.5 mpg. However, California has set their own limits and has been setting the rules for the other 49 states for many years.
Permian grows while overall oil rig count stays flat
The Permian added four oil rigs, but that was counterbalanced by losses elsewhere. The overall rig count grew by just one rig drilling for natural gas, while the oil rig count remained flat.
The numbers behind the Permian spotlight at OTC
“The main thing is, offshore is a long-term commitment,” said Maierdan Halifu, senior analyst at Rystad in Houston. If you make a discovery and sanction a project, you’re making a commitment for the next six or seven years. But shale is very flexible. You can drill wells relatively fast and get the return relatively fast.”
California Oil Dreams Fade as Iconic Beverly Hills Derrick Comes Down
Draped in flower-covered panels, the iconic derrick that towers over Beverly Hills High School has pumped crude for decades. Now, it waits to be dismantled, its demise mirroring the fate of oil drilling in California.
U.S. crude exports soar
Analysts attributed the surge to lower prices of U.S. crude compared to Brent crude produced in the North Sea. The price gap between Brent and the U.S. benchmark, West Texas Intermediate has widened from $3 a barrel in early March to about $6 a barrel this week, according the S&P Global Platts, a commodities research and analytics firm.
Permian On Track To Become Largest Oil Basin In The World
The Permian Basin has long been touted as the fastest growing shale play in the United States, but now its oil-producing prowess is being highlighted again as the Energy Information Administration forecasts the prolific basin’s May production to be 3.183 million bpd—an expected 73,000 bpd rise from April.
Bullish oil signs show Saudi Arabia’s $80 goal within reach
Apart from the technical indicators, investors will also be watching tumbling U.S. petroleum stockpiles, which now stand below their five-year average for the first time since 2014, and record American production.
Cyberattacks on the oil and gas industry are on the rise
“The whole cyber-threat landscape mirrors what’s happening in the world,” Scali said. “What we see is cyberattacks typically are geopolitically driven. I can’t think of an industry that would actually have more geopolitical factors and drivers behind it than oil and gas. Given the complexity of geopolitics around natural resources and prices, as well as the significance of petrochemicals and petrochemical products to the normal operation of a society and national infrastructure, it very much puts oil and gas at a risk of the geopolitical winds changing and, thus, organizations in that industry being targeted.”
Texas and Gulf of Mexico lead rig count jump
The overall rig count grew by five – up to 1,008 – courtesy of four rigs added to the Gulf and three in Texas. The loss of two rigs drilling for natural gas kept the rig count from growing higher.
Second shale revolution is on the horizon
Now a second revolution is on the horizon as operators prepare to re-enter those wells that launched the first revolution and implement secondary recovery projects. That can consist of operators reinjecting gas into the reservoir to restore pressure and then producing the additional crude and natural gas.
Exxon Mobil Did Not Suppress Climate Science, Federal Judges Say
New York State attorney general Eric Schneiderman’s climate fraud investigation into Exxon Mobil was dealt a notable, albeit indirect, blow in recent weeks as two different federal judges took issue with two of the legal arguments that have served as grounds for the investigation.
Texas LNG signs non-binding deals with Chinese, Southeast Asian buyers
They include five in China, two in southeast Asia and one in Europe, said Vivek Chandra, chief executive of Houston-based Texas LNG, declining to name the companies citing confidentiality reasons.
Climate Change Trial Starts on Rough Footing for Environmentalists
The “smoking gun” document in question proved to be a regurgitated summary of a 1995 report by the United Nations Intergovernmental Panel on Climate Change. At the time of its release, the report was subject to significant scrutiny by many in the scientific community because it was riddled with huge uncertainties.
Saudi Arabian companies plan massive Houston-area investments
Saudi Arabia’s premier energy companies are planning to invest billions of dollars in their Houston-area petrochemicals operations to take advantage of cheap natural gas feedstocks from West Texas shale fields.
Oil Prices Poised To Rise As Cycle Comes To An End
Oil price cycles tend to overshoot on both the upside and the downside. The price of oil never stays at the “Right Price” for very long because a small over-supply can push the price quite low and a small under-supply can cause a big price spike.
Oil Prices Poised To Rise As Cycle Comes To An End
Oil price cycles tend to overshoot on both the upside and the downside. The price of oil never stays at the “Right Price” for very long because a small over-supply can push the price quite low and a small under-supply can cause a big price spike.
Exxon Can’t Dodge State Climate Change Probes, Judge Says
Exxon claimed the evidence of political motivation includes meetings the attorneys general had with environmental groups and Schneiderman’s claim at the press conference that former President Barack Obama’s environmental agenda was being opposed by “morally vacant” forces.
The Bakken Is Booming Once Again
The Bakken was one of the first U.S. shale basins in which drillers started to pump oil via fracking. Its advantage is that the geology is better known than that of the Permian. Its disadvantage, compared to the Permian, is that its sweetest spots may have already been pumped out.
The Bakken Is Booming Once Again
The Bakken was one of the first U.S. shale basins in which drillers started to pump oil via fracking. Its advantage is that the geology is better known than that of the Permian. Its disadvantage, compared to the Permian, is that its sweetest spots may have already been pumped out.
Texas-Sized Gas Conundrum Plagues America’s Busiest Oil Play
The low-cost crude oil reserves buried in the Permian’s layers of shale have drawn explorers in droves, but roughly a third of the output from those wells is gas, according to RS Energy Group. As gas production from the play surges, however, pipeline capacity has failed to keep pace.
Concho Resources to buy RSP Permian in $8 billion West Texas merger
Perfectly positioned to capitalize off the Permian shale boom from its Midland home, Concho has grown rapidly as one of the leaders in domestic oil production. Concho was valued on Wall Street at more than $23 billion before the deal was announced Wednesday.
Oil Rig Competition Flares Up Amid Permian Boom
If the downturn taught drillers nothing else, it taught them to tighten their belts—to squeeze every last drop from what they already have. Gone are the loosey-goosey days of $100 oil. Drilling longer laterals is one of those ways that U.S. companies use to squeeze more oil from the rocks, by supersizing fracking, alongside with using more frac sand.
Mexico takes aim at its section of the Eagle Ford shale
Petróleos Mexicanos, known also as Pemex, said it signed an exploration and extraction contract with the Mexican subsidiary of Lewis Energy to invest $617 million in developing the Olmos field in the Mexican state of Coahuila.
At Houston energy conference, Texas is the focus of American oil optimism
The Permian Basin in West Texas is the driving force behind what some key energy players say is a coming milestone: The United States passing Russia as the world’s top oil producer.
A Small Oil Field In Oklahoma Is Seeing Big Bets From Producers
A little-known shale oil play in Oklahoma is attracting more drilling and investment as rising output from newer wells is enticing companies to boost production beyond the giant Permian basin in Texas.
OPEC Deal In Jeopardy As Iran And Saudi Arabia Square Off
Iran and Saudi Arabia are at odds over what to do next with the OPEC agreement, a conflict that could sow the seeds of the agreement’s demise over the course of the next year.
Opening ahead for oil from Texas shale
The United States is producing more oil than ever and it’s only expected to keep growing in the coming years, soon surpassing Russia as the global leader. The Permian accounts for about 25 percent of U.S. crude volumes and that percentage should keep rising.
Increased Revenue Sharing Of Offshore Energy Makes Good Consumer Sense
Revenue sharing makes sense for several reasons. It would make it easier for coastal states to close their own budget gaps and pass along some of the revenue to coastal communities. This would help build public support for an expansion of offshore drilling, which would bolster U.S. energy production, increase domestic investment, create jobs, and generate additional revenue for the federal government.
A ‘Major Second Wave’ of U.S. Fracking Is About to Be Unleashed
The International Energy Agency (IEA) said in a new forecast this week that growth in U.S. oil production will cover 80% of new global demand for oil in the next three years. U.S. oil production is expected to increase nearly 30% to 17 million barrels a day by 2023 with much of that growth coming from oil produced through fracking in West Texas.
44 Things You Didn’t Know About Oil
Whenever you see a headline like this, you know it will go along the lines of “did you know that petroleum stands for rock oil?” Yes you did, goes the reply of an overwhelming majority of readers. For this reason, the list below is one which holds the reader in high esteem, as a dear colleague on the road to broaden our knowledge of the oil industry. So here we go…
Analysts Expect Oil Price to Average $75 Per Barrel in 2019
Analysts at BMI project that Brent will climb even higher in 2020, averaging $78 per barrel, before plateauing at $80 per barrel over the course of 2021 and 2022. The Bloomberg consensus forecasts that Brent will average $65 per barrel in 2020 and $67.5 per barrel in 2021.
Let Ethanol Fend for Itself
The East Coast’s largest and oldest oil refinery is declaring bankruptcy. In its January 22 filing, Philadelphia Energy Solutions (PES) — whose facilities can process 335,000 barrels of oil per day — cited the economic burden of complying with the Renewable Fuel Standard (RFS) as a primary contributor to its fiscal woes. Regardless of the merits of PES’s claims, the RFS is an economic and environmental burden on the United States and ought to be repealed.
America’s Dangerous Foreign Mineral Dependence
Now that we’ve finally made progress in our long struggle for energy security — thanks to fracking and the shale revolution — we are sleepwalking into a dangerous import dependence on the minerals and metals that are the building blocks to our 21st century economy. Our reliance on imported minerals and metals required for production of cars and other consumer goods is at record levels.
OPEC Considers Moving the Goalposts
The 24-country alliance wants to reduce oil stockpiles to their five-year average, a goal that is almost at hand according to figures from the International Energy Agency. Yet Saudi Arabia and Russia now say that metric is flawed — distorted by years of excessively high supplies and patchy data outside developed economies.
Trump backs off proposal to cut royalty payments to Texas, other states for Gulf oil
In the budget proposal released Monday, the White House preserved the revenue sharing agreement, which was expected to deliver $275 million to Texas, Louisiana, Alabama and Mississippi this year.
New lithium extraction method could reuse fracking wastewater
Lithium is widespread in devices used today, from mobile devices to electric cars. In 2016, over 212,000 tonnes were consumed globally. With continuing technological advancements, demand for lithium has quickly outpaced the rate at which it can be mined or recycled.
U.S. retail gas prices finally moving lower
By market, the West Coast remains the most expensive in the country, with Washington state joining California with prices above the $3 per gallon mark. Four of the seven states in the country that saw an increase in gasoline prices were in this market, even though gasoline inventories are unseasonably high.
Saudi Oil Minister Tired Of Shale Hype
Al-Falih has clearly become annoyed at all the pestering from reporters and market analysts about the prospect of U.S. shale spoiling OPEC’s plans this year. He put on a brave face and dismissed questions about OPEC losing market share as U.S. drillers continue to ramp up.
America’s Natural Gas Hurdles
If the United States plans to continue imposing sanctions on Russia and its energy sector, it should consider how to approach output from projects like Yamal L.N.G. This is because the original source of such gas will become increasingly difficult to determine as the trade becomes more global.
Permian: Getting to look a lot like Saudi Arabia
The U.S.’s Permian Basin is looking like Saudi Arabia, with as much as 1 million barrels of spare oil capacity ready to go into production, according to Nansen Saleri, former head of reservoir management at Saudi Aramco, the world’s largest crude exporter.
New Englanders Have Only Themselves to Blame for Energy Price Spikes
Local and state opposition have blocked a number of natural gas pipelines in recent years, with the result that the region hasn’t benefited from the gas production growth in the Marcellus shale formation in nearby Pennsylvania.
Exxon Mobil plans to triple Permian production
Exxon Mobil is beginning to break out specifics of its spending plans after announcing Monday that it wants to invest $50 billion in the U.S. during the next five years, in part because of extra financial benefits gained from the new U.S. tax law.
Time to Protect Our Vulnerable Grid
Late last year, the FBI and Department of Homeland Security issued a “joint Technical Alert,” confirming that our nation’s nuclear, energy, water, aviation, and critical manufacturing sectors, as well as some government entities, have been the targets of repeated cyberattacks. Some succeeded.
Why the oil price is so high
PERHAPS the most vexing thing for those watching the oil industry is not the whipsawing price of a barrel. It is the constant updating of theories to explain what lies behind it.
U.S. oil output set for “explosive growth”: IEA
U.S. oil output is set for ” explosive” growth this year as prices rally, the International Energy Agency said on Friday. That was just one of a chorus of voices from Goldman Sachs group Inc. to OPEC itself warning of a looming output surge reminiscent of the “heady days” of the first shale boom.
The World’s Most Innovative Gas Field
Appalachian gas production has surged over eighty five percent (from 13,837 bcf/d to 26, 027 bcf/d) since 2014. The region has one the most productive and economic gas acreage in the country, and today it produces more gas than all other shale plays in the United States combined.
As oil majors move into Permian, cool efficiency replaces passion and guts
The majors have plans to drill thousands of wells, streamline operations, maximize production and create what they call frac factories to suck hundreds of thousands of barrels of oil a day from the 48 million acres of shale rock across West Texas and eastern New Mexico.
U.S. oil industry set to break record, upend global trade
The economic and political impacts of soaring U.S. output are breathtaking, cutting the nation’s oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak.
Oil Market Conquers Its Fears Over Shale
For more than three years, the ability of shale producers to rapidly dial production up or down has haunted the oil market, cutting off nascent rallies and keeping prices trapped around $50 a barrel or lower. Any move above that level stoked fears that producers would flood the market with oil once again, causing dramatic reversals in prices.
The U.S. Is on the Threshold of the Biggest Oil and Gas Boom Ever
The IEA said the U.S. will account for 80% of the increase in global oil supply between now and 2025, as shale producers find ever more ways to pump oil profitably even at lower prices. By the late 2020s, the U.S. will become a net exporter of oil for the first time since the 1950s.
Oil and gas deals in the Permian Basin could heat up in 2018
Oil prices are nowhere near the old peaks, but they have reached the highest levels since 2015. Moody’s Investors Service expects oil to stay in the $40 to $60 per barrel range this year. Their analysts said that price leaves room for strategic deals, with the “Permian Basin leading the way.”
Why Oil Is Up But Rig Count Is Not
Normally, you’d expect the rigs to return to the field in significant numbers as producers flush with added cash looked to boost output. But the weekly Baker Hughes tally has stayed remarkably still.
Trump proposal would allow oil and gas drilling along most of U.S. coastline
Secretary Ryan Zinke announced that under the five-year draft drilling plan released by the administration Thursday, more than 90 percent of the Outer Continental Shelf, which begins roughly 3 miles off the U.S. mainland, is under consideration for oil and gas lease sales beginning next year and extending through 2024.
U.S. oil production booms as new year begins
“For years and years, we thought we were running out of oil,” Verrastro said. “It took $120 for a barrel of oil to make people experiment with technology, and that has been unbelievably successful. We are the largest oil and gas producer in the world.”
Oil-Rich Venezuela Is Out Of Gasoline
In his address, Freites said that poor management led to the stoppage of 80 per cent of the country’s refineries. “Only Amuay and Cardón refineries are operative and that is nothing. They produce 40,000 barrels per day and the national demand is over 200,000 barrels of gas per day,” he said.
Commentary: States overreach in thwarting pipelines
Here’s how the system was designed. Congress gave an independent agency called the Federal Energy Regulatory Commission responsibility for regulating the buildout and operation of the interstate natural gas pipeline network. (In contrast, FERC has no role in the buildout of interstate oil pipelines.
Five oil signals to watch as 2018 pits OPEC v. shale
OPEC and its allies are heading into the second year of supply cuts to wipe out the global oil glut, while rising U.S. output is threatening those efforts. Geopolitical tensions also add a wild card to the market mix.
The Year In Deals: 10 A&D Eye-Catchers, Eyesores
After the intense Permian Basin deal competition of 2016 began to burn off its final stage in first-quarter 2017, U.S. E&P deals began to adjust to a brief period of weightlessness.
Tax Bill Boosts Oil, Gas Drilling _ and Renewable Energy
An agreement by House and Senate negotiators would open Alaska’s Arctic National Wildlife Refuge to drilling, while preserving tax credits for wind power and other clean energy. The bill also would extend a tax credit of up to $7,500 for purchases of plug-in electric vehicles such as the Tesla Model 3 and Chevrolet Bolt.
Oil prices in 2018: It’s all about Texas
Crude oil production out of the U.S. is expected to hit record levels next year, buoyed in part by OPEC supply curbs that have put a floor under prices. For analysts forecasting prices next year, there are two key questions: exactly how far American production grows and whether the global economy is strong enough to swallow those extra barrels?
The 5 Oil Factors To Watch In 2018
Oil prices are set to close out the year somewhere around 15 percent up, and the oil market looks more stable than it has in years. But what does 2018 have in store?
The Oil and Gas Industry Wakes Up to Blockchain
Blockchain serves as a shared database that eliminates the role third parties play in transaction processes and information sharing in a number of ways. Technology, inventories, contracts, payments and other data is shared directly between parties with encrypted connections. Commodity exchanges on blockchain, for example, can support oil and gas trading directly between parties anywhere in the world, while removing the role banks, brokerage firms or other intermediaries have traditionally played.
OPEC oil production declined again in November
The 14 member nations of the Organization of Petroleum Exporting Countries pumped 32.4 million barrels a day in November, down by 133,500 barrels a day compared with October and down 273,000 barrels a day compared with September.
Oryx building new 220-mile Permian pipeline
Midland-based Oryx, which primarily is owned by Houston private equity firms, said the 400,000-barrel-a-day network will run through Carlsbad, New Mexico and into West Texas to crude oil delivery points in Crane and Midland.
Keystone XL Approval Is Vital to U.S. Energy Dominance
Once a point of weakness, energy has quickly become one of the United States’ strongest assets. Only a decade ago America relied on foreign suppliers to meet nearly two-thirds of oil demand. It now produces almost 80 percent of consumption here at home.
The Man Behind The Oil Price Rally
The OPEC meeting is over and the cartel has extended production cuts throughout 2018. The decision is obviously crucial to supporting oil prices, but perhaps an even bigger story is the relentless strategy from the young Saudi Prince, Mohammed bin Salman, being played out both inside OPEC and in his own country.
The world’s astonishing dependence on fossil fuels hasn’t changed in 40 years
Every year since 1971, more than 80% of all our energy has come from fossil fuels. That’s still true today, which is surprising for two reasons. Most nuclear power plants came online between 1971 and 1990, and most renewable energy farms were built in the last 10 years.
Venezuela To Launch ‘Petro’ Cryptocurrency
In his latest stunt, Venezuela’s President Nicolas Maduro announced that the country wants to launch a cryptocurrency – the petro – backed by oil, diamonds and gold reserves.
Oil extends gains following OPEC deal on output cuts
Oil extended gains following a third monthly advance after OPEC and Russia agreed to prolong production cuts through to the end of 2018 in their fight against a global supply glut.
Oil hedges surge in third quarter as prices rise, Wood Mac says
U.S. oil companies in the third quarter locked in higher prices for more than twice the number of barrels they did in the previous three months as crude rose toward $60 a barrel, Wood Mackenzie says.
54 Things You Didn’t Know About Natural Gas
Like oil, natural gas is a prolific fossil fuel with many uses, however I feel that it floats unnoticed under the radar, particularly because it is so much easier to carpet bomb oil and coal into submission (as opposed to cute and cuddly natural gas) in the great anti-fossil fuel war of attrition.
Oil Prices Could Double If Middle East Conflict Escalates
Scarcity doesn’t really justify the upward price movement. There isn’t a shortage of oil in the world. But there could be, in the worst case, if missiles start flying between two of the world’s largest oil players: Saudi Arabia and Iran.
Keystone XL Opponents Make Last-Gasp Effort In Nebraska
Volunteers for Bold Alliance, an activist group that has been fighting the project since it was proposed nearly a decade ago, are knocking on doors in parts of the state to describe the threats that possible pipeline leaks could pose to groundwater.
Shale drillers to torment OPEC into next decade
OPEC sees no respite from shale’s onslaught before the second half of the next decade. Until then, the cartel will stick with the one weapon it still has to prevent another oil price collapse: austerity.
U.S. Oil Exports Setting New Records
U.S. exports of oil have been gradually rising since the export ban was lifted in late 2015, but have skyrocketed in the past month. The U.S. sent an average of just under 500 MBOPD abroad in 2016, which was, at the time, a record high.
Saudi Arabia needs $70/b oil next year to break even
Saudi Arabia will have to engineer a 34% increase in average oil prices next year if it is to balance its budget and avoid falling back on its dwindling foreign currency reserves, International Monetary Fund data showed Tuesday.
Oil prices continue streak, but ceiling may be approaching
The American Petroleum Institute reported after the market closed Tuesday that its data show crude oil inventories in the United States dropped about 5.1 million barrels. Gasoline storage levels fell 7.6 million barrels after motor club AAA said demand was resilient late in the season.
Haynesville Shale Gas: Overlooked, But Growing Again
Drilling activity in the Haynesville bottomed out in September 2016, at a mere 13 rigs. Since then, activity has more than tripled, with 46 rigs operating in the basin in September 2017. While this falls far short of the 160 rigs that were operating in the basin in the beginning of 2011, it is the highest rig count in the Haynesville since 2016.
U.S. oil exports boom, putting infrastructure to the test
Tankers carrying record levels of crude are leaving in droves from Texas and Louisiana ports, and more growth in the fledgling U.S. oil export market may before long test the limits of infrastructure like pipelines, dock space and ship traffic.
Exxon Mobil profits surge despite blow from Harvey
Exxon Mobil posted a 50 percent jump in profits in the third quarter amid rising energy prices — even after absorbing a $160 million blow from Hurricane Harvey, which crippled some of its Gulf Coast facilities.
Microseismic monitoring helps producers aim for sweetest of sweet spots
Being able to picture that subsurface rock is critical to allowing operators to know not only where the fractures are and how they break but where the frac fluids and sands are going in the formation and where the crude and natural gas is being drained.
A New Oil Crisis Is Developing In The Middle East
There, two significant events unfolded over the past week. Each is certain to have an impact on how crude oil trades in the near-term.
Judge allows Dakota Access pipeline to keep running
The $3.8 billion pipeline built by Texas-based Energy Transfer Partners has been operating since June 1, moving oil from North Dakota through South Dakota and Iowa to a distribution point in Illinois. From there it can be shipped to the Gulf Coast and potentially lucrative markets abroad.
Apache scouts out more drilling locations in Alpine High
More than half of those spots, around 3,500, are in a so-called wet gas window, with 1,000 in a dry gas region and another 500 in the oil-rich Wolfcamp and Bone Springs play.
The Future For Oil Supply And Prices After The ‘Amazon Effect’ Stimulates Shale 2.0
While access to cheap capital matters, as do government permits, impediments and subsidies, it’s technology that creates supply (and demand too, but that’s another story, covered elsewhere). The world would not be awash in oil if we were still using the drilling technology of 1917.
Permian Hot Deals Meet The Market’s Cold Shoulder
Buying a ticket to Permian Basin production—already an expensive proposition last year—now carries an additional surcharge in 2017—investors’ ire.
ExxonMobil Dethroned As Top Energy Company
Gazprom dethroned ExxonMobil as the top energy company in the world, according to the 2017 S&P Global Platts Top 250 Global Energy Company Rankings. The rankings measure the financial performance of energy firms on four key metrics: asset worth, revenues, profits, and return on invested capital.
The End Of OPEC Is Near
OPEC, which has far exceeded the average life of cartels, is on the brink of failure. Though cracks have been developing in the cartel since the start of the current oil crisis, the group has managed to stay together so far.
The Driving Forces Behind Today’s Oil Markets
This year, hurricanes, geopolitics, the OPEC deal and U.S. interest rates have all been major factors. Inventory levels and global supply and demand are then influenced by these factors.
Chevron To Invest $4B In Permian Production
Chevron will invest some US$4 billion in 2018 to increase its crude oil output in the Permian, a senior Chevron manager said at a conference on Monday, in a sign that the U.S. supermajor will continue to bet big on the most prolific U.S. shale play.
Permian ‘Super Basin’ Holds Up to $3.3 Trillion in Untapped Oil
IHS spent three years studying output data from more than 440,000 wells to calculate the amount of crude remaining within the sprawling, mile-thick rock formation that pumps more oil than any other U.S. field, the London-based researcher said in a statement on Monday.
Oil prices hold steady after 5% gain last week
U.S. oil prices settled little changed on Monday after posting a roughly 5% gain last week, as traders weighed prospects for an extension to the OPEC-led production cut agreement and expectations for U.S. crude output.
Schlumberger’s Gamble Could Change Oilfield Services Forever
The world’s largest oilfield services firm has decided that it should take an ownership stake in upstream oil and gas production, rather than simply provide the services for doing so.
U.S. Shale Producers Are The Worst Way To Play Oil’s Upside
While the significance of Pioneers GOR results is the subject of another article, what is truly important is the market reaction to Pioneer’s results. Not only did Pioneer sell-off, but the entire Permian producer complex sold off with it.
Oil Barrels Aren’t Real Anymore
When the first Pennsylvania wells began gushing in the late 1850s, prospectors scrambled to catch the erupting crude. Any container would do—whiskey or ale jugs, salt or turpentine vats. The best option was an old one: the casks still used today to age wines and whiskies.
Houston’s Energy Sector Confident Of A Quick Recovery
The disaster underscores the need for energy-importing states to rely on diverse suppliers rather than become overly dependent on any one source. This means diversifying imports from more countries and regions, utilizing various land and sea routes, and relying on a mix of energy resources – including LNG, piped gas, oil and renewables.
Where Harvey’s effects were felt the most in Texas
According to a preliminary analysis by the Federal Emergency Management Agency, at least 156,000 properties may have been affected by the floodwaters of Hurricane Harvey. At least 68,000 are located in Harris County.
Oil prices increase as Texas refineries start returning to normal
As much as 16 percent of total U.S. refining capacity was impacted by the storm, pipelines from the region operated intermittently and the federal government released oil from its strategic reserves in order to offset the market strains.
Will This Bring Big Oil Back To The Bakken?
Senator John Hoeven says that a new estimate would motivate oil and gas companies to continue investing in North Dakota and prompt more of them to come to the Bakken and Three Forks. That’s especially true now that even Big Oil is turning to shale, where turnaround times and returns are both faster than in large-scale projects.
No need yet to act on Harvey, International Energy Agency says
The International Energy Agency sees no reason for it to intervene in the U.S. effort to prop up an energy market hammered after Harvey wiped out production centers as a hurricane earlier this week.
Oil market shrugs off U.S. inventory decline amid Harvey
Analysts said if not for the oil glut that has plagued global energy markets and Houston’s petroleum companies since summer of 2014, the impact of Harvey could have squeezed supplies harder and led to longer fuel shortages.
The Delaware: Wide Open Secrets
The lonely character of the Permian Basin seems more suitable to horses and stargazing than sophisticated drilling, but it’s the subterranean mystery of the place that has attracted so much money and manpower to Texas and New Mexico.
Drillers evacuate Gulf platforms, shut in wells in wake of Harvey
Oil companies have evacuated personnel from about 15 percent of the manned oil-production platforms and half of the working drilling rigs in the Gulf of Mexico in the wake of Hurricane Harvey, federal officials said Saturday.
Energy Transfer sues Greenpeace, Dakota Access protesters
Energy Transfer claims groups like Greenpeace, Earth First! and individual protesters resorted to “mob thuggery” and intentionally misleading information to halt the construction and damage Energy Transfer’s “critical business and financial relationships.”
Hurricane Harvey forces some refineries closed, pushes gas prices up
More than 25 percent of the nation’s gasoline is refined along the Texas Gulf Coast. More than 50 percent comes from the entire Gulf Coast region, including inland Texas and Louisiana, according to the U.S. Energy Department.
Mexico Looks to Replicate U.S. Shale Success
The Burgos Basin is located directly south of Texas with mostly natural gas fields. Since beginning exploration in 1942, PEMEX has discovered about 225 fields in the area. The basin also includes the Mexican portion of the Eagle Ford, which extends miles beyond the border.
Russia Claims To Have Invented Alternative To Fracking
Russian scientists and local oil field services companies claim to have created a technology for thermochemical gas fracturing that could be an alternative to hydraulic fracturing and could increase oil production by between 1.7 and 6 times, Russia’s news agency RIA Novosti reports, citing the University of Tyumen’s press service.
Texas rig permitting nearly doubles from 2016
The Railroad Commission of Texas, the state energy regulator, said it issued 1,011 original drilling permits last month, compared with the 631 issued in July 2016. Of those, 893 were for drilling new oil or natural gas wells.
Concho Pays $600 Million To Extend Midland Basin Laterals
The deal came with some inflation on land prices. Concho bought the Mabee Ranch as part of $1.62 billion purchase of 40,000 acres from Reliance Energy in October 2016. That acreage cost roughly $25,000 per acre.
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.
Oil Exports, Illegal for Decades, Now Fuel a Texas Port Boom
For 40 years it was virtually impossible to sell American oil to any country except Canada because of an export ban that was a bedrock of United States energy policy.
‘Apple Of Oil’ Says New Permian Wells ‘Shattered’ Records
“EOG’s Whirling Wind wells shattered industry records in the Permian Basin,” said Chairman and CEO Bill Thomas in a statement, noting they set new records for 30-day initial production from Permian Basin horizontal oil wells. “Our advanced technology and proprietary techniques are leading to break-through well performance across our diverse portfolio of premium plays.”
Qatar blockade underscores America’s world opportunity in natural gas
In recent weeks, geopolitical uncertainties have sent tremors through international energy markets, underscoring just how fragile countries’ access to critical resources are.
U.S. oil exports are blowing past expectations
U.S. crude oil exports have exceeded 1.2 million barrels a day, per the Financial Times. That follows the lifting of a 40-year-old ban on crude oil exports in 2015, and far exceeds baseline projections.
Apache begins hiring for Alpine High pipelines
Apache recently completed the first section of a 30-inch natural gas pipeline, allowing the company to send natural gas to market for the first time and clearing the way for more wells and more oil production.
The US shale oil industry is booming despite low crude prices
Crude oil prices may be falling, but that hasn’t been enough to stop the resurgence in the US shale oil industry. According to oil services firm Baker Hughes, the number of rigs deployed in the US rose for a 23rd consecutive week last week, marking the longest stretch of continued growth seen in three decades.
Permania: 100 Years In The Permian Oil Fields Of Texas And New Mexico
There are several huge oil fields famous throughout the world. The Ghawar field in Saudi Arabia, discovered in 1948, is considered the biggest and the best known, producing about 5 million barrels per day, with estimated reserves exceeding 70 billion barrels. And this is above the 70 billion or so already extracted. Ghawar is why Saudi Arabia leads OPEC. But the Permian Basin, a 300-mile expanse from west Texas to southeastern New Mexico, is headed to becoming the biggest in the world.
West Virginia Groundwater Not Affected by Fracking
Fracking has not contaminated groundwater in northwestern West Virginia but accidental spills of fracking wastewater may pose a threat to surface water in the region, according to a new study led by scientists at Duke University.
US Will Not Issue Drilling Waivers To Russia Sanctions
The United States and European Union imposed economic sanctions on Russia over its annexation of the Crimea region in 2014 and its role in the conflict in eastern Ukraine. The sanctions forced Exxon, the world’s largest publicly traded oil producer, to wind down drilling in Russia’s Arctic in 2014.