The US drilling rig count was up 4 units to 1,067 rigs working for the week ended Oct. 19, according to Baker Hughes data. The count is up 154 units from the 913 rigs working this time a year ago.
T. Karen Chandler has been promoted to the positions of senior vice-president and chief operating officer of Laredo Petroleum Inc., Tulsa.
With seasonal slowing after the summer driving season, US petroleum demand was 20.1 million b/d in September, down 3.5% from August but up 2.4% compared with September 2017. This is according the latest monthly statistics report from the US American Petroleum Institute. Year-to-date through September, US petroleum demand remained at its strongest since 2007, averaging 20.4 million b/d. This was an increase of nearly 500,000 b/d over the same period in 2017.
US government regulators approved ConocoPhillips Alaska Inc.’s plan for development of its Greater Mooses Tooth 2 (GMT2) project in the National Petroleum Reserve-Alaska. The approval came less than 2 weeks after oil production started from Greater Mooses Tooth 1 (GMT1).
Reforms in response to US President Donald Trump’s Executive Order 13771 have resulted in $2.5 billion of regulatory relief for oil and gas producers during the fiscal year 2018, the Department of the Interior indicated on Oct. 17. “The Trump Administration is doing exactly what was promised and making smart decisions to reform and reduce the regulatory burden on the American people and economy, and it’s producing big results,” Sec. Ryan Zinke said.
Brent crude oil for December settled under $80/bbl on the London market Oct. 18 while light, sweet oil for November and December settled under $69/bbl in New York. The Oct. 18 Brent settlement was the lowest since Sept. 21. Earlier this month, Brent briefly reached above $85/bbl although it failed to settle at that level. Crude oil benchmark prices since fell, which analysts attributed to stock market volatility worldwide.
PGNiG will acquire non-operated interests in the Tommeliten discovery on the Norwegian Continental Shelf in the greater Ekofisk area from Equinor for $220 million. Equinor will divest its 42.38% interest in the Tommeliten Unit (PL 044 TA) and 30% interest in PL 044. Both are operated by ConocoPhillips.
Talos Energy Inc., Houston, entered into a transaction with Hokchi Energy SA de CV, a subsidiary of Pan American Energy LLC, to cross-assign its participating interest (PI) in Block 2 and Hokchi’s PI in Block 31. Both blocks are in the Sureste basin offshore Mexico.
Samson Oil & Gas USA Inc. remains in discussions with Eagle Energy Partners I LLC, but also is seeking an alternate buyer for substantially all its Foreman Butte project after a $40-million agreement with Eagle Energy expired on Oct. 15.
US reported greenhouse gas emissions totaled 2,898 million tonnes of carbon dioxide equivalent, 2.7% less than in 2016, the US Environmental Protection Agency reported on Oct. 17. The direct emissions data from 7,544 facilities in nine energy sectors as of Aug. 19 represent about half of the nation’s total GHG emissions, it said.
Light, sweet oil prices settled under $70/bbl, down more than $2 on the New York market Oct. 17 compared with the previous day after a government report showed an unexpected rise in the US crude oil inventory, excluding the Strategic Petroleum Reserve.
Norwegian Energy Co. ASA (Noreco) has acquired from Royal Dutch Shell PLC the company’s upstream interests in Denmark via its shares in Shell Olie-og Gasudvinding Danmark BV (SOGU) in a deal valued at $1.9 billion. SOGU, a wholly owned Shell subsidiary, holds a 36.8% non-operating interest in the Danish Underground Consortium (DUC).
US crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 6.5 million bbl for the week ended Oct. 12, according to data from the US Energy Information Administration. At 416.4 million bbl, US crude oil inventories are about 2% above the 5-year average for this time of year, the report indicated.
Light, sweet oil prices climbed to settle slightly higher on Oct. 16 but fell Oct. 17 in early trading on the New York market, which analysts attributed to broader US equity market jitters. Crude prices had climbed to multiyear highs recently on oil supply concerns worldwide.
Jones Energy Inc., Austin, has scrapped plans to form a drilling joint venture in the Merge and Western Anadarko basins after a potential financing deal fell through.
Po Valley Energy Ltd., Perth, has kept full ownership of its two onshore oil fields in northern Italy northeast of Modena following the blockage of their sale to private UK company Delta Energy Ltd. by a major Delta shareholder.
Devon Energy Corp., Oklahoma City, completed additional facilities work at its Jackfish 1 heavy oil project in the southern Athabasca oil sands region of Alberta, and full-scale operations have been restored. The work was related to minor facility repairs identified during turnaround startup activities.
Crude oil benchmark prices rose moderately on New York and London markets Oct. 15 amid rising US-Saudi tensions after the disappearance and suspected killing of a dissent Saudi journalist. US President Donald Trump has suggested some punishment if the Saudi government is found to have been involved in the disappearance of journalist Jamal Khashoggi who was last seen entering the Saudi consulate in Istanbul on Oct. 2.
The US Environmental Protection Agency proposed changes in regulations it issued in 2016 limiting emissions at oil and gas operations. Specifically, it is reconsidering fugitive emissions requirements, wellsite pneumatic pump standards, requirements for certification of closed vent systems, and the alternative means of emissions limitations provisions, EPA said in an Oct. 15 Federal Register notice.
The Asia-Pacific’s oil and gas industry looks set to rebound over the next 12 months as rising demand, stronger commodity prices, and an uptick in merger and acquisition activity bring greater confidence to the region, according to a recent report from Wood Mackenzie.
Aker BP has agreed to acquire Equinor Energy’s 77.8% interest in the King Lear gas-condensate discovery in the Norwegian North Sea for $250 million with plans to develop it as a satellite to Ula field.
Light, sweet crude oil rose modestly for the November contract to settle above $71/bbl on the New York market Oct. 12 while Brent crude oil for the December contract held above $80/bbl in London. Oil prices continued their upward momentum in early trading Oct. 15 after US President Donald Trump said the US would impose “severe punishment” on Saudi Arabia if an investigation implicates the Saudi government in the suspected killing of a dissident Saudi journalist.
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Sydney-based AGL Energy’s plans to establish an LNG import terminal at Crib Point in Victoria by 2021 will be delayed following the Victorian government’s call for the company to submit a full environmental assessment of the project.
BP CEO Bob Dudley strongly criticized oil and gas critics’ calls for investors to sell their holdings in fossil fuel companies and invest in renewable alternatives instead. “They push for potentially confusing disclosures, raise the specter of a systemic risk to the financial system from stranded assets and campaign for divestment—all in an effort to squeeze oil and gas out of the fuel mix,” he said during an Oct. 10 address to the 2018 Oil & Money conference in London.
It is time for the world to stop arguing and take action if it expects to make the necessary energy transition to meet climate goals outlined in the 2015 Paris accords, the chief economist for Equinor ASA said. “There’s an urgent need to stop talking about scenarios and start actually doing something. It’s an enormous task,” said Eirik Waerness, who also is a senior vice-president at the Norwegian multinational energy company, in an Oct. 10 presentation at the Center for Strategic & International Studies.
The International Energy Agency has moderated its global oil demand outlook, according to its October Oil Market Report. IEA now forecasts a growth of 1.3 million b/d for 2018 and 1.4 million b/d for 2019, respectively, a reduction of 110,000 b/d for both years from previous predictions. This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data.
The Federal Reserve Bank of Kansas City’s third-quarter energy survey revealed accelerated growth in energy activity in the Tenth District, while expectations for future activity remained high. The Kansas City Fed’s quarterly energy survey monitors oil and gas-related firms located or headquartered in the Tenth District, with results based on total firm activity.
Oil and gas operators’ activity in the US Gulf of Mexico continues to be monitored in the aftermath of evacuations from platforms and rigs following the landfall of Hurricane Michael on the northeastern Gulf Coast Oct. 10.
Both light, sweet crude oil on the New York market and Brent in London toppled by more than $2/bbl on Oct. 11 following a 2-day selloff across equity markets worldwide. “Brent even dipped briefly below $80/bbl,” Commerzbank analysts said of late Oct. 11 trading. “Headwind came once again from further falling stock markets,” they said Oct. 12.
Enbridge received approval from Canada’s National Energy Board on Oct. 10 to restart one of its natural gas pipelines following response to a rupture in a transmission pipeline 13.5 km north of Price George, BC.
In its October Short-Term Energy Outlook, the US Energy Information Administration forecast that US crude oil production will average 11.8 million b/d in 2019, which is 300,000 b/d higher than the forecast in its September STEO. The higher production forecast reflects higher-than-expected increases to Texas and North Dakota production in July, revising upwards the baseline of the forecast, and a response to higher forecast prices.
The US Department of Energy’s Fossil Energy Office reported on Oct. 10 that it intends to fund cost-shared research and development projects that reduce risks associated with enhanced oil recovery and expand the application of EOR methods. The solicitation closes on Jan. 31, 2019.
US crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 6 million bbl for the week ended Oct. 5, according to data from the US Energy Information Administration. EIA released the Weekly Petroleum Status Report a day later than normal due to the closure of the federal government on Oct. 8.
Silver Creek Midstream has closed the acquisition of Genesis Energy’s Powder River basin crude gathering, storage, and rail assets (trunkline system) and will pursue identified projects to address demand for crude oil midstream services in the basin with equity from a joint venture formed by Tailwater Capital and Energy & Minerals Group.
Murphy Exploration & Production Co.-USA and Petrobras America Inc. (PAI) have formed a joint venture comprised of all the current producing Gulf of Mexico assets from Murphy and PAI. Murphy, which will oversee operations, will own 80% of the combine and PAI will own 20%.
Oil prices fell about $1.80 to settle just above $73/bbl on the New York market on Oct. 10. Analysts partially attributed the drop to an anticipated rise in the weekly US oil inventory. The US Energy Information Administration was scheduled to release its Weekly Petroleum Status Report on Oct. 11, a day later than normal due to the closure of the federal government for the Columbus Day holiday on Oct. 8.
Irving Oil Ltd. is resuming turnaround work following a “major incident” on Oct. 8 at its 300,000-b/d St. John refinery in the eastern Canadian province of New Brunswick. The refinery as a whole is safe, and the specific site of the incident is isolated and contained, Irving said in a news release.
Russia hopes to resume pipeline imports of natural gas from Turkmenistan after slashing them in 2015 in a dispute over pricing. According to Radio Free Europe, Gazprom CEO Aleksei Miller told an interviewer from a state-controlled television station in Ashgabat that he expects purchases to restart early next year.
A lack of pipelines to carry oil and natural gas out of the Permian basin in West Texas and southeastern New Mexico will limit exploration and production and weaken realized prices until late 2019, when new pipeline capacity comes online, Moody’s Investors Service said in a recent report.
International Petroleum Corp., Vancouver, BC, has agreed to acquire BlackPearl Resources Inc., Calgary, in an all-stock deal that would create a company with an enterprise value of $1.36 billion (US), proved plus probable reserves of 291 million boe, and production of 44,500 boe/d.
Light, sweet crude oil prices gained on the New York market to settle just below $75/bbl on Oct. 9 while Brent crude prices climbed by more than $1 to settle at $85/bbl. Market participants on Oct. 10 closely monitored a hurricane in the Gulf of Mexico headed toward Florida.
US President Donald Trump ordered the US Environmental Protection Agency to waive volatility limits for gasoline with a 15% blend, facilitating its year-round sale in the country. Agricultural and ethanol interests applauded the Oct. 9 move, while the oil and gas industry and environmental organizations strongly condemned it.
The US Environmental Protection Agency is studying oil and gas wastewater management requirements and policies with the intention of producing a white paper early in 2019 that will help it determine if new federal regulations are necessary, officials said Oct. 9. They also acknowledged that it will be difficult.
Serica Energy PLC and BP PLC have received a conditional license and assurance from the US Office of Foreign Assets Control allowing work to continue at Rhum gas field in the UK North Sea although National Iranian Oil Co. holds a 50% interest through a subsidiary. The development allows Serica to proceed with acquisitions that will make it operator of Rhum, Bruce, and Keith gas and condensate fields.
Williams’s Transco interstate pipeline executed binding, 15-year commitments with Seneca Resources Co. LLC and Cabot Oil & Gas Corp. for 100% of the 580 million dekatherms of firm transportation capacity under its proposed Leidy South expansion project designed to expand Marcellus and Utica takeaway capacity.
Crude oil prices retreated slightly on both the New York and London markets Oct. 8 with light, sweet crude prices dropping 5Â¢/bbl while Brent crude price prices dropped about 24Â¢/bbl, attributed, in part, to indications that market disruption from pending sanctions on Iranian supply may be less impactful than expected.
Andrew Hromyk has been named chief executive officer of Hunter Oil Corp., Vancouver, BC.
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The US drilling rig count is down 2 units to 1,052 rigs working for the week ended Oct. 5, according to Baker Hughes data. The count is up 116 units from the 936 rigs working this time a year ago.
A bipartisan group of 20 US senators urged President Donald J. Trump not to move forward with a plan to waive Reid Vapor Pressure volatility rules and allow the year-round sale of gasoline with a 15% ethanol blend nationwide.
The international rig count for September was 1,004, down 4 from the 1,008 counted in August 2018, and up 73 from the 931 counted a year ago, according to Baker Hughes data.
Beach Energy Ltd. has sold 40% of its Victorian/Tasmanian Otway basin interests to Monaco-based Israeli businessman Eyal Ofer’s O.G. Energy Holdings Ltd for A$344 million in cash.
Crude oil prices retreated on both the New York and London markets Oct. 4 with light, sweet crude prices dropping about $2/bbl while Brent crude price prices dropped about $1.70/bbl, which analysts attributed to volatility in US equity and bond markets.
Enbridge Inc. will shut down and replace its Line 5 across the Straits of Mackinac with a multi-use utility tunnel that the Calgary energy transmission company will pay for, Michigan Gov. Rick Snyder (R) announced.
RockRose Energy PLC, London, has acquired Dyas BV and Dyas Infrastructure BV, which hold the Dutch interests of Dyas, a subsidiary of SHV Holdings NV, Utrecht.
President Donald J. Trump nominated Bernard L. McNamee, who presently is director of the US Department of Energy’s Policy Office, to the Federal Energy Regulatory Commission on Oct. 3.
The Middle East and North Africa (MENA) region will see a number of critical energy projects pushed through over the next five years, despite uncertainties that cloud the investment outlook, according to APICORP Energy Research.
Petro Frontera, a wholly owned subsidiary of International Frontier Resources Corp. (IFR), Calgary, has received an option to buy all shares of the Mexican Tonalli Energia joint venture held by partner Grupo IDESA.
US demand for natural gas is projected to reach an all-time high this winter, but soaring production will ably satisfy demand, resulting in flat pressure on prices compared to last winter, the Natural Gas Supply Association (NGSA) said in its 18th annual Winter Outlook forecast of the wholesale winter natural gas market.
President-elect Andres Manuel Lopez Obrador of Mexico has assured oil and gas executives he will honor existing contracts, according to the chief executive of a Canadian company specializing in onshore Mexican operations.
Light, sweet crude oil prices for November and December delivery declined slightly but each contract settled above $75/bbl on the New York market Oct. 2, staying near 4-year highs as did Brent crude oil. Brent for December and January dropped but held above $84/bbl.
US crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 8 million bbl for the week ended Sept. 28, according to data from the US Energy Information Administration.
Equinor has signed an agreement to acquire Chevron Corp.’s 40% operated interest in the Rosebank project, one of the largest undeveloped fields on the UK Continental Shelf. Once concluded, Equinor says, the transaction will strengthen its UK portfolio, which includes the Mariner development, exploration opportunities, and three producing offshore wind farms.
Light, sweet crude oil prices for November and December jumped more than $2 to settle above $75/bbl on the New York market Oct. 1 while Brent crude oil for December and January also climbed more than $2 to settle above $84/bbl.
Marathon Petroleum Corp. closed on the acquisition of Andeavor to create the largest US refiner by capacity and one of the top five largest refiners globally. Along with Marathon’s six existing refineries in the US Gulf Coast and Midwest, the combined company would operate 16 US refineries with an overall throughput capacity of more than 3 million b/d.
Companies awarded 55 blocks in India’s first open-acreage licensing bid round collectively have committed to invest the equivalent of $820 million in exploration, Petroleum Minister Dharmendra Pradhan said at a contract-signing event in New Delhi.
The American Petroleum Institute and other leading US business organizations initially welcomed the US-Mexico-Canada Agreement, which the Trump administration said would improve terms for them under the 1994 North American Free Trade Agreement it apparently would replace. Business groups also have begun to analyze USMCA to determine whether it preserves investment protections and other important NAFTA provisions, OGJ has learned.
The Timor-Leste government has agreed to acquire from ConocoPhillips the company’s 30% interest in the Greater Sunrise fields on the maritime border between Australia and East Timor for $350 million.
Husky Energy Inc. has proposed an unsolicited offer to acquire all shares of MEG Energy Corp. in a deal worth an estimated $3.3 billion (Can.). Both companies are based in Calgary. MEG Energy, which produces bitumen via steam-assisted gravity drainage in Alberta’s Athabasca region, said its directors “will consider and evaluate the Husky offer and related takeover bid circular, if and when received.”
DJR Energy LLC, Denver, will acquire from Encana Oil & Gas (USA) Inc. its San Juan assets in New Mexico in a $480-million deal. The assets include 182,000 net acres that delivered average production of 5,400 boe/d, including 3,900 b/d of liquids, in 2017.
Light, sweet crude oil prices gained more than $1 to settle above $73/bbl on the New York market Sept. 28 while Brent crude oil for November gained $1 to approach $83/bbl in London. Oil prices rose amid concerns about falling Iranian crude exports with full implementation of US sanctions on Nov 4 along with concerns about declining production from Venezuela.
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