The US drilling rig count reached 1,052 units working for the week ended June 22, down 7 rigs from a week ago, according to Baker Hughes data. The count is up 111 units from this time a year ago when the count stood at 941.
Running against the tide of earlier opinions, the Australian Energy Market Operator has declared that the forecast domestic gas shortfall for Australia’s east coast predicted last year has been averted.
The US Bureau of Land Management issued a final environmental impact statement for the proposed Normally Pressured Lance natural gas development project in Wyoming. The June 21 action came about 30 days before a final decision was reached on the project, which would be south and west of Jonah field in Sublette County.
Brent crude oil prices dropped more than $1/bbl on the London market June 21 on the eve of a meeting in Vienna by the Organization of Petroleum Exporting Countries, which agreed on no more than 100% compliance with its existing production-cut targets of 1.2 million b/d.
Spanish firm Repsol SA will sell its exploration and development permits in Papua New Guinea to Chinese company Balang International. Repsol has not disclosed the transaction amount.
ExxonMobil Corp. subsidiary Mobil Refining Australia Pty. Ltd. plans to expand crude storage capacity at its 80,000-b/d Altona refinery in Victoria, 13 km west of Melbourne, as part of its strategy to improve efficiency of its local refining and supply operations to help meet Australia’s growing demand for transportation fuels.
BP Australia has decided not to continue with its $1.8-billion (Aus.) purchase of retail giant Woolworths retail outlets across Australia. The British major agreed in December 2016 to buy Woolworths’ 543 fuel and convenience stores, which would have seen it become as the market leader in Australia.
The light, sweet crude oil price for July delivery climbed more than $1/bbl on the New York market June 20 after the US Energy Information Administration reported a bigger-than-expected drop in oil supplies.
Seacrest Capital-backed OKEA AS has agreed to acquire the working interests of AS Norske Shell in Draugen (44.56%) and Gjoa (12%) fields offshore Norway for $556 million. Deal terms call for Shell to retain 80% of the decommissioning liability of the two assets up to an aftertax cap of $78 million subject to CPI indexation and to make a future payment to OKEA of $46 million subject to CPI indexation upon OKEA completing decommissioning.
US President Donald Trump issued an executive order establishing an interagency Ocean Policy Committee, which will replace the National Ocean Council and nine regional planning bodies that President Barack Obama established in 2010. The June 19 action will establish more-streamlined federal coordination and empower states by eliminating duplicative federal bureaucracy, the White House said.
US House Natural Resource Committee Republicans presented a fifth proposal at a June 14 hearing to change federal oil and gas policies that ostensibly would increase states’ involvement in federal oil and gas decisions. Democrats on the Energy and Mineral Resources Subcommittee quickly criticized the discussion draft’s plan to reward states that encourage more leasing and development and penalize states that do not.
IHS Markit expects US natural gas production to rise almost 8 bcfd—more than 10%—this year and by another 60% over the next 20 years, according to a recent report, The Shale Gale Turns 10: A Powerful Wind at America’s Back. IHS Markit also now estimates that about 1,250 tcf of US supply is economic at below a $4/MMbtu Henry Hub price, up from a previous estimate of 900 tcf in 2010.
ExxonMobil Corp. affiliate Esso Exploration & Production Guyana Ltd. encountered 265 ft of high-quality, oil-bearing sandstone following the drilling of the Longtail-1 well offshore Guyana, creating potential for additional resource development in the southeast area of the Stabroek block.
US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased 5.9 million bbl for the week ended June 15, according to US Energy Information Administration data. At 426.5 million bbl, US crude oil inventories are 2% below the 5-year average for this time of year, the Weekly Petroleum Status Report indicated.
INA, Zagreb, has agreed to buy Eni Croatia BV and become 100% owner and sole operator of Northern Adriatic and Marica area gas fields offshore Croatia, reports MOL Group of Budapest, which owns 49.1% of the buyer.
Light, sweet crude oil prices fell on the New York market June 19 as did Brent crude prices in London while oil ministers gather in Vienna for a June 22 meeting of the Organization of Petroleum Exporting Countries.
Al H. Denson has been named chief executive officer of Hunter Oil Corp., Vancouver, BC.
Defaults are still occurring in US energy despite higher oil prices, said Fitch Ratings, pointing specifically at exploration and production companies. In August 2016, the distress rate peaked with a 32.1% default rate for E&P companies. In January 2017 the default rate hit 19.7% for energy overall.
Scotland has a government opposed to hydraulic fracturing but not a ban on the completion technique, the Court of Session in Edinburgh has ruled. Ineos Shale, which holds two petroleum exploration and development licenses between Glasgow and Edinburgh, welcomed the ruling even though it represented legal defeat.
Gulfport Energy Corp., Oklahoma City, has updated recent well results on its SCOOP Woodford assets in Oklahoma’s southeastern Anadarko basin. The SCOOP play mainly targets the Devonian to Mississippian Woodford shale.
Ryan Gritzfeldt has been named chief operating officer of Crescent Point Energy Corp., Calgary. He had been vice-president, marketing and innovation, and before that vice-president, engineering and business development east.
Light, sweet crude oil prices gained on the New York market June 18 while Brent crude prices for August climbed by $1.90/bbl in London. Oil prices have fluctuated between gains and losses in recent trading sessions.
ConocoPhillips has awarded three engineering contracts for front-end engineering and design work for the Barossa gas-condensate development project in the eastern Timor Sea about 300 km north of Darwin.
ExxonMobil Australia is considering the import of LNG into eastern Australia to help ease the predicted shortfall of gas supply from 2021 and protect its existing market share. The company also is increasing its exploration program in Bass Strait as well as considering the development of a field extension called West Barracouta.
The US Department of the Interior expects to publish an initial environmental impact statement (EIS) on oil and gas leasing on the Arctic National Wildlife Refuge’s coastal plain during this year’s fourth quarter as scheduled, Assistant Sec. for Land and Mineral Management Joe Balash told reporters on June 15.
US Rep. Steve Pearce introduced a pair of bills on June 14 that aim to reduce delays and other obstacles in the federal onshore oil and gas leasing process. HR 6016 would authorize additional categorical exclusions to streamline permitting decisions. HR 6107 would order that the US Bureau of Land Management not require permits on nonfederal land to reach subsurface deposits that are less than 50% federally owned.
Libya’s National Oil Corp. (NOC) confirmed the loss of two storage tanks at Ras Lanuf port terminal on June 18. NOC had declared force majeure on crude oil loadings from Ras Lanuf and Es Sider port terminals starting June 14.
An affiliate of privately held Cox Oil LLC, Dallas, has agreed to acquire Energy XXI Gulf Coast Inc. (EGC), Houston, in a deal worth $322 million. The deal expands Cox’s presence in the Gulf of Mexico. Cox holds assets in both the Outer Continental Shelf and the shallow waters off Louisiana and operates more than 200 producing wells over 25 fields.
Apache Corp., Houston, has let a contract to Saulsbury Industries, Odessa, Tex., to build three 200-MMcfd cryogenic processing plants at Apache’s Diamond processing site in the Permian basin of southern Reeves County, Tex.
Baytex Energy Corp. and Raging River Exploration Inc., both of Calgary, have agreed to merge in an exchange of 1.36 Baytex shares for each Raging River share. The combined company will have production, based on first-quarter 2018 averages, of 93,640 boe/d, 83% oil and NGL. Its proved reserves will be 338 million boe, of which 135 million boe is proved, developed, producing.
Brent crude oil prices dipped about $2.50/bbl on the London market June 15 while light, sweet crude oil prices fell more than $1.80/bbl in New York. Analysts attributed the sharp price drops to traders’ concerns about rising oil production and more restrictive US trade measures.
Equinor and Petrobras have completed their transaction reported late last year, whereby Equinor has acquired a 25% non-operated interest in Roncador oil field in Brazil’s Campos basin. This follows all conditions being met, including government and regulator approval.
Republicans on the US House Natural Resources Committee introduced two bills aimed at facilitating federal onshore oil and gas leasing and permitting on June 13.
Privately owned Strath Resources Ltd. has agreed to acquire producing assets in the Kakwa region of the Montney natural gas and liquids play in Alberta from Paramount Resources Ltd. Both companies are based in Calgary. The $340-million (Can.) deal will be half cash and half Strath common shares.
Chevron Australia has brought on stream the second LNG train in its $34-billion Wheatstone project in the Pilbara region of Western Australia. Train 1 of the project came on stream at the beginning of October 2017. The project will now ramp up to its full capacity of 8.9 million tonnes/year of LNG in the coming months.
Bruce Gresham has been appointed director for client engagement for the International Marine Contractors Association in a part-time consulting role. He will support the association in developing and expanding its engagement with oil companies and the broader industry in the US.
Light, sweet crude prices rose to settle June 14 in the $66-67/bbl range on the New York futures market while Brent crude oil prices fell to settle in the $75-76/bbl range in London pending a June 22 meeting of the Organization of Petroleum Exporting Countries.
US Sen. John Hoeven (R-ND) announced on June 14 that he has reintroduced legislation aimed at preventing delays in US oil and natural gas pipelines and electric power lines that would cross the US borders with Canada or Mexico.
The US Environmental Protection Agency registered isobutanol as an additive for blending into gasoline up to levels of 16% volume. Administrator E. Scott Pruitt announced the June 12 approval in a letter to Butamax Advanced Biofuels LLC, a BP PLC and DuPont Co. bio-isobutanol joint venture based in Wilmington, Del.
Light, sweet crude prices rose modestly on the New York market June 13 after a weekly US government report showed a sharp fall in oil inventories. US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased 4.1 million bbl to an estimated 432.4 million bbl for the week ended June 8, according to a weekly report from the US Energy Information Administration.
Privately held Evergreen Natural Resources has signed an agreement to acquire all of the assets held by Pioneer Natural Resources in the Raton basin in southeastern Colorado, including producing gas wells and associated infrastructure, for $79 million.
ExxonMobil Corp. and Plains All American Pipeline LP (PAA) have signed a letter of intent to build a common-carrier pipeline to transport more than 1 million b/d of crude oil and condensate from multiple locations in the Permian basin to the Texas Gulf Coast.
Members of the US Federal Energy Regulatory Commission and of the US Senate Energy and Natural Resources Committee criticized ongoing Trump administration efforts to bail out coal-fired power plants that are increasingly unable to compete economically with facilities that use natural gas.
US crude oil inventories, excluding the Strategic Petroleum Reserve, decreased 4.1 million bbl for the week ended June 8, according to US Energy Information Administration data. The latest estimate is 432.4 million bbl, putting oil in storage in the lower half of the average range for this time of year, the Weekly Petroleum Status Report indicated.
Despite slumping investment in the oil sands region, Canada will be able to produce 1.41 million b/d more crude oil in 2035 than it did last year if pipeline capacity expands, says the Canadian Association of Petroleum Producers. Most of the production increase will come from oil sands projects.
Permian basin oil production is forecast to reach 5.4 million b/d by 2023—more than current production from any single Organization of Petroleum Exporting Countries member other than Saudi Arabia, IHS Markit said in a new report.
Light, sweet crude oil prices rose slightly on the New York market June 12 to remain above $66/bbl while Brent crude oil prices fell in London but held above $75/bbl. The International Energy Agency said June 13 that it expects world oil demand to remain brisk.
Indian Essar Oil Ltd. has been renamed Nayara Energy Ltd. The company operates the 400,000-b/d Vadinar refinery in Gujarat and a retail network with about 4,500 service stations.
ExxonMobil Corp. has started drilling the first of 17 planned wells of Liza Phase 1 development offshore Guyana with production startup expected in 2020.
Junex Inc., Quebec City, and privately held Cuda Energy Inc., Calgary, have agreed to merge in a deal related to the acquisition of a 27.75% interest in 25,000 gross acres in the Barron Flats (Deep) Unit in Wyoming.
Crude oil prices gained slightly on the New York market and held steady in London June 11 while oil traders and analysts awaited the June 12 release of the Organization of Petroleum Exporting Countries’ latest monthly oil market report.
Samson Resources II LLC, Tulsa, has acquired 33,000 gross acres (10,500 net) plus working interests in 30 wells (29 operated by Samson) in Sweetwater County, Wyo., from a non-operated working interest partner for $15.9 million.
Light, sweet crude oil prices fell modestly June 8 on the New York market while Brent crude oil prices dropped about 80Â¢/bbl on the London market pending a June 22 meeting of the Organization of Petroleum Exporting Countries in Vienna.
The US drilling rig count reached 1,062 units working, up 2 rigs the week ended June 8, according to Baker Hughes data. The count is up 135 units from this time a year ago when the count stood at 927.
The Canadian government has retained the former head of a pipeline project it rejected to assess the Trans Mountain oil pipeline and to advise a new crown corporation that will manage system expansion.
Pennsylvania Gov. Tom Wolf (D) and Department of Environmental Protection Sec. Patrick McDonnell jointly announced new general permits for unconventional natural gas wells and compression, processing, and transmission facilities that they said will reduce air pollution and establish a methane emissions control threshold.
A US House Natural Resources subcommittee discussed four proposals on June 6 that Republicans said would make onshore federal oil and gas permit application processing more efficient and fair. Democrats warned that if the discussion drafts became law, they would discourage public participation in deliberations under the 1970 National Environmental Policy Act (NEPA).
US Sen. Bill Nelson (D-Fla.) filed an amendment to the annual national defense bill aimed at keeping crude oil exploration and production out of the eastern Gulf of Mexico for an additional five years.
Northern Oil & Gas Inc., Minneapolis, has acquired oil production and acreage in the Williston basin of North Dakota from Salt Creek Oil & Gas LLC, Denver, for $40 million and 6 million shares.
Light, sweet crude oil prices rose by more than $1/bbl June 7 on the New York market while Brent crude oil prices rose about $2/bbl in London in what has been a volatile week for oil prices. Oil prices fell again in early June 8 trading on the New York futures market.
The fourth production-sharing round in the presalt area offshore Brazil, held June 7 by the country’s National Petroleum, Natural Gas, and Biofuels Agency (ANP), raised $802.4 million in signing bonuses and $188 million in planned investments on the exploration phase.
US Senate Minority Leader Charles E. Schumer (D-NY) has asked US Departments of Energy and Transportation leaders to propose and quickly finalize new volatility standards for crude oil shipped by rail. New US Energy Information Administration data show shipments of crude by rail to Northeastern US refineries reached 3.1 million bbl in March—a level not seen since early 2017, he said on June 6.
The American Petroleum Institute has launched a bipartisan coalition of more than 100 business and government leaders across the southeastern US states that will advocate expanding offshore US oil and gas activity onto the Mid-Atlantic Outer Continental Shelf and into the eastern Gulf of Mexico.
Light, sweet crude oil prices fell June 6 on the New York market after a weekly government report showed higher US oil inventories and rising US oil production. Analysts also remain closely focused on risks to world oil supplies pending US sanctions against Iran.
An affiliate of independent infrastructure fund manager Global Infrastructure Partners (GIP) has entered into an agreement with Devon Energy Corp. to acquire Devon’s aggregate ownership interests in EnLink Midstream Partners LP and EnLink Midstream LLC for $3.125 billion.
The US Bureau of Land Management’s incurred costs and potential liabilities for reclaiming oil and gas wells likely increased from fiscal 2010 through 2017, but it’s not certain by how much since the agency does not track the needed data, the Government Accountability Office said in a report that it released on June 5.
Tight oil technology was improving already when crude oil prices began their plunge in mid-2014, speakers generally agreed during the US Energy Information Administration’s 2018 conference. But improvements might have quickened as the drop accelerated because producers and their goods and services suppliers felt pressed to be more economically and operationally efficient, they said during a June 4 breakout session.
Crude oil prices gained on both the London and New York markets June 5, but Brent prices fell in June 6 trading on news reports that Venezuela state oil company Petroleos de Venezuela SA (PDVSA) might declare force majeure on some oil contracts.
Bahrain will select international partners in December 2019 for the production phase of a large oil and gas discovery off its west coast. Crown Prince Salman bin Hamad Al Khalifa, deputy supreme commander and first deputy prime minister, sketched a timetable for development of the discovery at a June 3 meeting of the Higher Committee for Natural Resources and Economic Security.
Light, sweet crude oil prices fell by more than $1/bbl for a second consecutive trading session on the New York market June 4 while Brent crude oil prices dropped about $1.50/bbl on the London market.
Steelhead LNG, Vancouver, BC, has appointed Corey Goulet as vice-president, pipeline, effective July 3. Goulet brings 33 years of experience in the energy industry to the company.
Qatar Petroleum has entered into an agreement with ExxonMobil Corp. to become a 30% equity holder in two ExxonMobil affiliates in Argentina that hold different interests in hydrocarbon licenses for seven blocks in the world-class Vaca Muerta play in Argentina’s onshore Neuquen basin.
Tap Oil Ltd., Perth, reported a success with its Manora-8ST1 appraisal well offshore Gulf of Thailand while continuing to stave off a takeover of the company by Singapore company Risco Energy Invesments (SEA) Ltd.
Officials from the American Petroleum Institute, Natural Gas Supply Association, and eight other national energy business groups strongly criticized ongoing Trump administration plans to keep otherwise failing coal-fired and nuclear power plants open ostensibly to assure electricity service will remain reliable nationwide.
Western oil men well know that Russian petroleum taxes are quite heavy and generally not profit-related. But what are the specifics behind those taxes?
Light, sweet crude oil prices fell by more than $1/bbl on the New York market June 1 while the Brent contract for August delivery fell nearly 80Â¢/bbl. Analysts attributed the price drops to increased US oil production.
US President Donald Trump signed proclamations removing exemptions from steel and aluminum tariffs for Canada, Mexico, and the European Union as of June 1. The presidents of the American Petroleum Institute and Interstate Natural Gas Association of America separately criticized the president’s May 31 action.
Light, sweet crude oil prices fell by more than $1/bbl for both the July and August contracts on the New York market May 31, but the Brent contract for July gained more than $1/bbl in London.