Articles Posted by thackney

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  • ISRAEL MAKES NEW DISCOVERY OFF ITS COAST

    12/18/2014 9:47:29 AM PST · by thackney · 37 replies
    Natural Gas Europe ^ | December 18th, 2014 | Karen Ayat
    Israel made another discovery off its coast. The newly discovered field, Royee, may hold up to 3.2 Tcf of natural gas according to a statement made by the Israeli partners in the field Ratio and Israel Opportunity who hold respectively 70%, and 10% stakes. The remaining 20% of the field are held by Edison. Royee is located about 150 kilometers offshore Israel close to its maritime borders with Cyprus and Egypt. The field’s size is yet to be confirmed, but current estimates suggest it is the third largest field discovered to date in Israeli waters after the Leviathan discovered by...
  • Exxon and ConocoPhillips make record-breaking bid for offshore exploration rights

    12/18/2014 7:07:14 AM PST · by thackney · 18 replies
    Houston Business Journal ^ | Dec 17, 2014 | Olivia Pulsinelli
    Exxon Mobil Corp., ConocoPhillips and Canada-based Suncor Energy Inc. The parcel is in the Flemish Pass offshore Newfoundland in northeast Canada. That's where Norway-based Statoil ASA (NYSE: STO) last year made a major oil discovery, its third in the Flemish Pass Basin. The record-breaking bid comes as oil prices have fallen to their lowest levels in years, though production is still going strong, Houston Business Journal previously reported. The news helped boost ConocoPhillips' stock on Dec. 16, when it reached $64.94 per share, up nearly 6 percent, before closing at $63.24, up 2.5 percent. Similarly, Exxon's stock jumped to $89.14...
  • Mitsui CEO: U.S., Saudis Pushing Oil Prices Lower, Working Together to Hurt Islamic State and Russia

    12/18/2014 5:26:45 AM PST · by thackney · 31 replies
    Wall Street Journal ^ | Dec. 17, 2014 | PETER LANDERS And MARI IWATA
    The head of Mitsui & Co., a big energy investor, said he thinks the U.S. and Saudi Arabia are working together to keep oil prices down in an effort to hurt Islamic State and Russia. Masami Iijima, chief executive of the Japanese trading company, spoke in an interview as crude oil was trading near its lowest level since May 2009. He said the recent decision by the Saudi-led Organization of the Petroleum Exporting Countries to keep production at current levels, which triggered the oil-price plunge, would particularly hurt Islamic State, the militant group that has seized parts of Iraq and...
  • Saudi Arabia's Oil Strategy Is About More Than Destroying The US Shale Business

    12/18/2014 5:14:34 AM PST · by thackney · 34 replies
    Business Insider ^ | DEC. 17, 2014 | SHANE FERRO
    Saudi Arabia may not be aiming at the US in its hands-off policy toward falling oil prices. At a panel discussion Wednesday hosted by the Overseas Press Club and Control Risks (the latter a global risk consultancy), the speakers seemed skeptical of the idea that Saudi Arabia was refusing to prop up oil prices because it wanted to force American producers out of the market. (US shale basins are among the most expensive sources of oil to tap.) There may be better political reasons for this move, with a reduction in American shale supply on the market just being the...
  • The (temporary) pain of tanking oil prices

    12/18/2014 4:55:20 AM PST · by thackney · 2 replies
    The Globe and Mail ^ | Dec. 17 2014 | PETER TERTZAKIAN
    “Your numbers must have a bust!” exclaimed my disbelieving friend who produces oil for a living. “I don’t think so,” I said as I led him through some rough calculations. “If the price of a barrel of U.S. light oil averages $60 in 2015, the hit to the Canadian industry will be worse than in 2009.” I noted that at $80 (U.S.) a barrel, there was some immunity to the shock, but a sustained price below $60 will cause the industry to lose most of its white blood cells. “Thanks,” he muttered with a wince, like a kid that had...
  • Obama shift on Cuba won’t mean big oil boom in Gulf of Mexico

    12/18/2014 4:46:59 AM PST · by thackney · 6 replies
    Fuel Fix ^ | December 17, 2014 | Jennifer A. Dlouhy
    President Barack Obama’s decision to normalize relations between the United States and Cuba may lead to more commercial opportunities for Americans within the island nation. But don’t expect U.S. oil producers to move swiftly to take advantage of them. Although geologists believe billions of barrels of crude may be lurking off Cuba’s coast in the Gulf of Mexico, oil companies have had a hard time finding that black gold. When Repsol, Petronas and other oil companies bored exploratory wells in 2012 and 2013, they turned up dry. In some cases, oil wasn’t found, and in others, the discovery was not...
  • Congress blocks sage grouse protections, but work goes on

    12/18/2014 4:41:23 AM PST · by thackney · 11 replies
    Fuel Fix ^ | December 17, 2014 | Associated Press
    U.S. wildlife officials will decide next year whether a wide-ranging Western bird species needs protections even though Congress has blocked such protections from taking effect, Interior Secretary Sally Jewell said Wednesday. They could determine the greater sage grouse is heading toward possible extinction, but they would be unable to intervene under the Endangered Species Act. The bird’s fate instead remains largely in the hands of the 11 individual states where they are found. President Barack Obama signed a $1.1 trillion spending bill late Tuesday with a provision that barred money from being spent on rules to protect the chicken-sized bird...
  • Low Oil Prices to Slow, but Not Derail US Shale Boom

    12/17/2014 9:57:31 AM PST · by thackney · 5 replies
    Rig Zone ^ | December 17, 2014 | Karen Boman
    Recent declines in North Sea Brent and West Texas Intermediate (WTI) crude oil prices – and the recent decision by the Organization of Petroleum Exporting Countries (OPEC) to maintain oil output – has caused speculation about whether the boom in U.S. shale exploration and production could continue. The U.S. shale revolution has created in a boom in U.S. oil production over the past five years, growing from 5.4 million barrels of oil per day (MMbopd) in 2009 to 8.6 MMbopd today. Shale gas production has also soared from 59.3 billion cubic feet per day (Bcf/d) in 2009 to more than...
  • Despite Pain, OPEC Hawks Come Round To Merits Of Riding Out Oil Slump

    12/17/2014 9:55:09 AM PST · by thackney · 11 replies
    Reuters via Rig Zone ^ | December 17, 2014 | Alex Lawler
    OPEC members which backed an output cut at the group's meeting last month are coming around to the view of Saudi Arabia that they need to focus on market share, further reducing the chance of any action to defend prices. While Venezuela - which campaigned for output cuts in the run-up to the Nov. 27 meeting - has continued to call for measures to prop up prices, other nations which usually back such action such as Iran and African members have been silent. "The producers have not blinked. We are just watching and selling oil at whatever the price is,"...
  • Gas industry: Drilling tax could cripple Pa. economy

    12/17/2014 7:50:18 AM PST · by thackney · 18 replies
    Inquirer Harrisburg Bureau ^ | December 17, 2014 | Amy Worden
    Three days after the newly elected Senate majority leader opened the door to negotiations on a natural gas drilling tax, industry leaders reiterated their stand that such a tax would harm the state's economy. Additional taxes would have a "crippling effect on jobs" said Stephanie Wissman, executive director of the Associated Petroleum Industries of Pennsylvania. "It threatens to stifle energy production and the jobs that go with it," Wissman said in a conference call with reporters Tuesday. The prospect of a severance tax on gas production in the lucrative Marcellus Shale - an issue dormant since Gov. Ed Rendell left...
  • Oil trains hold upper hand as pipeline called off

    12/17/2014 6:51:30 AM PST · by thackney · 7 replies
    Houston Chronicle ^ | December 16, 2014 | Robert Grattan
    Oil producers in North Dakota don't seem ready to give up their rail cars just yet. Enterprise Product Partners has shelved plans for a pipeline out of the prolific Bakken Shale after the company was unable to secure enough crude shipment deals along the route to make the project viable. The proposed 340,000 barrel-per-day line would have run 1,200 miles from the oil fields of North Dakota to the nation's largest oil transportation hub in Cushing, Okla. Houston-based Enterprise Product Partners originally announced that it would solicit shipping commitments from Sept. 4 to Oct. 17 - a process called an...
  • More than 500 rigs may shut down as oil slides, analysts say

    12/17/2014 6:33:10 AM PST · by thackney · 9 replies
    Fuel Fix ^ | December 17, 2014 | Collin Eaton
    As many as 550 drilling rigs may have to sit on the sidelines of U.S. shale oil patches over the next few months, analysts say, as oil prices have folded nearly in half since this summer. The projections come a few days after Texas drilling rigs led the nation in a 1.4 percent weekly decline in the U.S. active rig count, according to oil field services firm Baker Hughes. Oil companies cut 20 rigs in the Permian Basin, a sharp turnaround from the flurry of rigs and hydraulic fracturing equipment that had rushed to West Texas earlier this year. “We...
  • China Wants ‘Made in China’ Nuclear Reactors

    12/17/2014 5:23:52 AM PST · by thackney · 24 replies
    Wall Street Journal ^ | Dec 15, 2014 | BRIAN SPEGELE
    When a unit of North Carolina’s Curtiss-Wright Corp. won a roughly $300 million deal in 2007 to supply components for new reactors in China, industry officials trumpeted China’s nuclear boom as good for U.S. business. Today, Chinese companies are competing for that business—and foreign companies risk getting left out. Meanwhile, Curtiss-Wright’s contract is caught up in a legal dispute, while Chinese authorities blame the company in part for the delay of a landmark nuclear project. U.S. and other foreign companies are now struggling to keep their hold in China, the industry’s biggest growth market and a rare bright spot more...
  • Tumbling oil could take thousands of jobs with it

    12/16/2014 5:20:17 AM PST · by thackney · 59 replies
    Tumbling oil could take thousands of jobs with it ^ | December 12, 2014 | Jesse Solomon
    The oil price crash could take thousands of good-paying jobs with it in America and around the world. More cuts are almost certainly on their way. On Monday, ConocoPhillips (COP) became the first major U.S. oil company to reveal that it is slashing spending for 2015, a decision the CEO asserted was "prudent given the current environment." Bad news already started to flow this week: Halliburton (HAL) affirmed that it plans to cut 1,000 positions due to the depressed oil market, and BP (BP) announced an unspecified number of layoffs as part of a $1 billion restructuring plan. It's true...
  • Rapid fall in oil prices may portend global recession

    12/16/2014 4:56:58 AM PST · by thackney · 47 replies
    NY Post ^ | December 14, 2014 | Jonathon M. Trugman
    Cratering crude-oil prices may be a blessing to cash-strapped American consumers, but it’s a double-edged sword when it comes to the overall economy. The problem for the overall economy is not so much the drop in oil prices as it is the velocity at which oil prices have fallen. The plunge from a peak of just over $100 per barrel in the early summer to today’s $58 — a massive 42 percent drop in just a few short months, most of which has come in the last 90 days — could make anyone’s head spin. The rapid fall in crude...
  • A Global Energy Superpower Rises

    12/16/2014 4:51:58 AM PST · by thackney · 11 replies
    Foreign Policy ^ | DECEMBER 15, 2014 | ED MORSE
    When it comes to crude oil and other hydrocarbons, the United States is bursting at the seams. The United States has very rapidly become a powerhouse as an exporter of finished petroleum products, natural gas liquids, other oils including ethanol, and even crude oil — with total gross exports of all of these combined expected to reach 5 million barrels per day (mb/d) or more by the end of this year, up a stunning 4 mb/d since 2005. Total oil exports in 2014 pushed the commodity to the top of the list of U.S. exports by category, far surpassing all...
  • US Rig Count Descent Begins In Conventional Oil Areas

    12/15/2014 11:04:18 AM PST · by thackney · 44 replies
    Oil Pro ^ | 12/14/2014 | Joseph Triepke
    In the US, the land rig count fell 28 units to stand at 1,820 last week. A decline in vertical oil drilling activity took the rig count lower. Horizontal oil drilling (ie activity in the unconventional oil plays) was only down 7 rigs on the week—about in line with normal seasonal trends this time of year. Much of this week's activity decline was due to a slowdown in conventional drilling in the Permian Basin. The number of vertical rigs in the Permian fell by 13 to 188. The Permian horizontal rig count was only down 7 to 360. While...
  • Predicting The Oil Price: Smart Vs Lucky

    12/15/2014 8:32:37 AM PST · by thackney · 6 replies
    Forbes ^ | 12/15/2014 | Michael Lynch
    Paul Krugman made the point recently that the only stock market forecasters who correctly predicted a market drop were those who always predicted falling markets. This is known as the ‘stopped watch’ approach to forecasting: constantly make one prediction and eventually the market will move in that direction. Especially for oil prices, which are highly variable, this works wonders to the point where the great Adam Sieminski often joked that you should predict the price or the date, but not both. This is reminiscent of Napoleon’s adage, that it’s better to have lucky generals than smart ones. He didn’t note...
  • Kemp: Past Oil Price Slumps Show US Drillers' Inertia

    12/15/2014 7:09:30 AM PST · by thackney · 2 replies
    Reuters via Rig Zone ^ | December 15, 2014 | John Kemp
    The most important characteristic of the U.S. oil industry is inertia - or to put it another way, drilling and production respond sluggishly even to a large change in prices. Since 1974, there have been four episodes in which oil prices declined sharply over a relatively short time (ignoring the brief price spike and equally rapid reversal in 1990 associated with preparations for the first war between the United States and Iraq). These price slumps occurred between (1) December 1985 and July 1986; (2) January 1997 and December 1998; (3) November 2000 and December 2001; and (4) July 2008 and...
  • Ukraine Says Chevron Plans To Pull Out Of $10B Shale Gas Deal

    12/15/2014 6:48:02 AM PST · by thackney · 20 replies
    Rig Zone ^ | December 15, 2014 | Reuters
    U.S. energy major Chevron plans to withdraw from a $10 billion shale gas deal with Kiev, a senior Ukrainian presidential official said on Monday. Ukraine signed a shale gas production-sharing agreement with Chevron amid great fanfare in November 2013, just months before mass protests in Kiev ousted former president Viktor Yanukovich, plunging the country into a major crisis with Russia. "There is information that they (Chevron) are planning this decision," Valeriy Chaliy told journalists, referring to a report by local media that Chevron had told the government it was pulling out of the deal. Chaliy declined to give further details....
  • It’s now Ant and Grasshopper days in the oil industry

    12/15/2014 5:04:46 AM PST · by thackney · 15 replies
    Platts ^ | December 13, 2014 | Starr Spencer
    During most times, the oil industry may operate in a dog-eat-dog world. Now it’s also in an ant-and-grasshopper world. You know the story of those two insects–they’re paired together in Aesop’s Fable of the same name. The ant toils hard to save and scrimp for a rainy day, while the grasshopper flits around, enjoying the moment with no thought for tomorrow. Then winter comes and the ant has stores of food to last him for months; the grasshopper dies. It’s hard to think, especially given the lavish times of several months back when Niagaras of oil revenues were pouring into...
  • KPMG Analyst: Still Bullish about Oil, Gas Market Despite Crude Downturn

    12/12/2014 1:42:46 PM PST · by thackney · 16 replies
    Rig Zone ^ | December 12, 2014 | Gene Lockard
    The downturn in crude oil prices in recent months will not last forever, and what the market is experiencing now is not the old boom and bust period, an energy industry analyst told Rigzone. “I’m still incredibly bullish on the industry, and I do think it’s far more stable and resilient than it was in decades past,” KPMG’s Regina Mayor, an advisor for the consulting practice, said. “That’s not to say that it won’t experience a contraction or two, but it’s not the boom and bust cycle we’ve seen.” Already, there are signs that the future remains bright for the...
  • Despite lower crude oil prices, U.S. crude oil production expected to grow in 2015

    12/12/2014 7:23:15 AM PST · by thackney · 30 replies
    Energy Information Administration ^ | DECEMBER 12, 2014 | Energy Information Administration
    The recent decline in crude oil prices has created the potential for weaker crude oil production. EIA's Drilling Productivity Report (DPR) includes indicators that provide details on the effect low prices may have on tight oil production, which accounts for 56% of total U.S. oil production. Analyzing these indicators and the changes in oil production following the drop in crude oil prices during the 2008-09 recession may offer some insight into possible near-term oil production trends. The price of West Texas Intermediate (WTI) crude oil delivered to Cushing, Oklahoma declined more than 31% from June to November 26 and another...
  • Shale boom spurs chemical industry expansion

    12/12/2014 5:57:49 AM PST · by thackney · 10 replies
    Fuel Fix ^ | December 11, 2014 | Rhiannon Meyers
    The U.S. chemical industry is expanding at a healthy clip thanks to a domestic drilling renaissance that has flooded the world with cheap oil and gas. The industry grew by 2 percent this year and is expected to swell further next year as advances in drilling and completion technologies unlock vast new supplies of hydrocarbons that chemical companies rely on to make products and fuel their plants, according to the American Chemistry Council’s annual year-end review of the industry. “The wind is back in our sails,” Kevin Swift, chief economist for the trade group, said in a statement. “During the...
  • A Coal Plant That Buries Its Greenhouse Gases

    12/12/2014 5:14:05 AM PST · by thackney · 40 replies
    MIT Technology Review ^ | 12/11/2014 | Peter Fairley
    Boundary dam, a power plant in Estevan, Saskatchewan, is the first commercial coal-fired plant to capture carbon dioxide from its emissions, compress the gas, and bury it underground. The plant demonstrates that so-called carbon capture and storage (CCS) can work at a large scale—a crucial achievement given that CCS could play a significant role worldwide in reducing the greenhouse-gas emissions that contribute to climate change. Right now only two other CCS power-plant projects are under construction, both of them in the United States. That’s because CCS carries a hefty price tag: SaskPower invested $1 billion to equip one of the...
  • TABLE-Construction plans for Japan's coal power stations

    12/12/2014 5:02:36 AM PST · by thackney · 6 replies
    Reuters ^ | Reuters
    The closure of Japan's nuclear power plants following the meltdowns at the Fukushima Daiichi plant after the March 2011 earthquake and tsunami increased fossil fuel consumption and led to a wave of new coal plant construction. Japan plans to build 28 new coal-fired power generation units with total capacity of as much as 14,800 megawatts, due to come online in the next decade or so. Total = 28 units 13,801-14,801 megawatts. Individual plants and start dates excepted
  • Halliburton to Lay Off 1,000 Eastern Hemisphere Employees

    12/12/2014 4:56:57 AM PST · by thackney · 2 replies
    Rig Zone ^ | December 11, 2014 | Karen Boman
    A Halliburton spokesperson confirmed to Rigzone that it will lay off approximately 1,000 employees from its Eastern Hemisphere operations, effective immediately. No layoffs have occurred or are currently planned as a result of Halliburton’s pending acquisition of Baker Hughes, Emily Mir, director of public relations at Halliburton, told Rigzone. “The decision to eliminate jobs is never easy,” said Mir in the email. “Our talented workforce is the foundation of everything that we accomplish, and we place the highest value on the commitment and hard work that our employees dedicate to building our company. “Yet, we believe these job eliminations are...
  • Dramatic drop in gas prices doesn’t carry over to diesel

    12/11/2014 6:17:48 AM PST · by thackney · 63 replies
    Dallas Morning News ^ | : 10 December 2014 | JAMES OSBORNE
    Over the last few months motorists have enjoyed the steepest drops in gasoline prices since the collapse of the world financial markets in 2008. And Texans could soon be enjoying $2-a-gallon gasoline. But for the truckers who move food and televisions back and forth across the nation’s highways, the news has hardly been so bright. “We haven’t seen that same price discount. And now we’re entering into the winter. The competition with heating oil, you never know how that impacts diesel,” said John Esparza, president of the Texas Trucking Association. “Come springtime it’s going to be interesting to see if...
  • Alaska faces $3.5B deficit amid lower oil prices

    12/11/2014 6:07:51 AM PST · by thackney · 20 replies
    Slumping oil prices have helped push Alaska’s potential budget deficit this year to $3.5 billion — an increase of $2.1 billion from what lawmakers expected in April. The price of oil, forecast at $105 a barrel in the state’s spring revenue forecast, is now expected to average about $76 a barrel for the fiscal year that ends June 30. The price is forecast to dip even lower, to $66 a barrel, during fiscal 2016 before rebounding. The average price last fiscal year was $107 a barrel, according to the fall revenue forecast released Wednesday. The forecast expects unrestricted general fund...
  • Iranian president calls fall in oil prices ‘treachery’

    12/11/2014 5:09:09 AM PST · by thackney · 49 replies
    Fuel Fix ^ | December 10, 2014 | Associated Press
    Iran’s President Hassan Rouhani said Wednesday that the sharp fall in global oil prices is the result of “treachery,” in an apparent reference to regional rival Saudi Arabia, which opposed production cuts. Oil prices have plunged by more than 40 percent since June to around $65 a barrel, placing severe strain on Iran’s economy, which is already hobbled by international sanctions imposed over its nuclear program. An OPEC meeting last month failed to reach agreement on production curbs, mainly because of Saudi opposition. Rouhani told a Cabinet meeting Wednesday that the fall in prices is at least partly “politically motivated,”...
  • Goodrich pares spending plans, considers selling Eagle Ford assets

    12/11/2014 5:06:13 AM PST · by thackney · 2 replies
    Fuel Fix ^ | December 10, 2014 | Rhiannon Meyers
    In the latest sign that falling oil prices are pinching shale producers, Goodrich Petroleum Corp. announced Wednesday that it will dramatically trim its budget next year and consider selling off its Eagle Ford assets. The Houston-based exploration and production company is among the smaller publicly traded drillers in the Eagle Ford, operating about 30,000 net acres in the South Texas play, according to third quarter data compiled by Bloomberg Intelligence. In the first half of next year, Goodrich will explore “strategic alternatives” for all or a portion of its Eagle Ford acreage to give the company greater flexibility to expand...
  • Saudi Oil Minister Naimi: Why Should We Cut Production?

    12/10/2014 2:39:09 PM PST · by thackney · 24 replies
    Reuters via Rig Zone ^ | December 10, 2014 | Mitra Taj & Valerie Volcovici
    Saudi Oil Minister Ali al-Naimi on Wednesday shrugged off suggestions that the world's biggest crude exporter might cut production to reverse the deepest price slump in years, saying the kingdom's output had remained steady through last month. Naimi's comments on the sidelines of an annual U.N. climate change conference in Lima, Peru, stuck to the message he laid out at OPEC's meeting two weeks ago: The market would be left to balance itself without the kingdom's intervention. That stance was seen as a shift from longstanding Saudi policy to act as a swing supplier. Oil prices have dropped $13 a...
  • BP sees $1 billion in restructuring charges as oil falls

    12/10/2014 6:37:01 AM PST · by thackney · 2 replies
    Fuel Fix ^ | December 10, 2014 | Collin Eaton
    BP expects to take $1 billion in restructuring charges over the next year as it plans to accelerate job cuts and pare back its oil production business amid crumbling oil prices. The British oil giant is gearing up to weather at least two years of lower oil prices and the contraction in the oil industry that goes with it, making plans to deepen cuts even after slashing $32 billion in oil-producing assets over the last 18 months, BP executives told investors in London on Wednesday. In a written statement released in conjunction with the investor presentation, BP CEO Bob Dudley...
  • Exxon: North America to be energy exporter by 2020

    12/10/2014 5:30:27 AM PST · by thackney · 9 replies
    Fuel Fix ^ | December 9 | Robert Grattan
    The world’s energy markets will change dramatically in around 2020, when North America shifts from a major energy importer to an important fuel source for the world’s middle class, according to Exxon Mobil Corp.’s annual energy forecast. The Irving, Texas-based company’s report predicted that global energy demand would by grow 35 percent through 2040, driven by 2 billion new people and the rise of an energy-hungry middle class in developing countries. The report also outlined how supply growth in North America and global efficiency gains, would be critical to meeting the future’s energy needs. Exxon’s vision of the future was...
  • North Dakota to require every barrel of crude oil be filtered

    12/09/2014 1:33:41 PM PST · by thackney · 41 replies
    Reuters ^ | Dec 9, 2014 | ERNEST SCHEYDER
    North Dakota is poised to impose the strictest oil standards in its history on Tuesday, requiring every barrel of crude to be filtered for dangerous types of natural gas in an effort to make crude-by-rail transport safer. The new requirements come as federal, state and local officials grapple with how best to ensure the safe transport of North Dakota's crude oil, which has been linked to a string of fiery crude-by-rail explosions, including one last year in Quebec that killed 47 people. Governor Jack Dalrymple and the two other members of the North Dakota Industrial Commission (NDIC) are taking the...
  • EIA: US production to increase 115K barrels in January

    12/09/2014 10:46:31 AM PST · by thackney · 12 replies
    Fuel Fix ^ | December 9, 2014 | Joshua Cain
    U.S. crude oil production will rise 115,000 barrels of oil per day in January, according to Energy Information Administration data released Monday. Next month’s total will be nearly 2,000 bpd more than December’s rise. Drilling efficiencies in the Bakken, Eagle Ford and Permian Basin shale plays account for most of the production increase. EIA data showed that rigs in these plays will get about 50 bpd more than they did last month, good for a total increase of 103,000 bpd. The Permian Basin is still the largest U.S. shale play, increasing to 1.87 million bpd. The Eagle Fored is second...
  • Kemp: Watching For A Drilling Slowdown In North Dakota

    12/09/2014 5:00:42 AM PST · by thackney · 3 replies
    Reuters via Rig Zone ^ | December 08, 2014 | John Kemp
    There are more than a dozen major shale plays in production. But just three account for almost all the rise in oil output since 2009 and nearly two thirds of all rigs in operation: the combined Bakken/Three Forks in North Dakota and the Eagle Ford and Permian in Texas. These three are the most mature plays and least likely to be affected by the decline in prices. Marginal plays are more likely to bear the brunt of any decline in drilling activity. Nonetheless, the big three account for so much of the shale boom that any slowdown will have to...
  • New & Improved: Kinder Morgan's Freedom Pipeline Project Is Back

    12/08/2014 11:07:54 AM PST · by thackney · 6 replies
    Oil Pro ^ | 12/6/2014 | William Fletcher
    Research firm Genscape says that after a year-and-a-half of delay, Kinder Morgan's Texas-to-California Freedom Pipeline project has been revived, with changes that the company hopes will attract shippers. The 250,000 bpd pipeline proposal was shelved in mid-2013 following its failure to receive enough interest from shippers, who said they wanted to transport oil by rail into California, rather than inking long-term pipeline contracts. However, many of these West Coast companies have confronted crude-by-rail permitting delays amid heightening environment impact scrutiny. But now the modified pipeline plan is much more attractive, Tom Dobson, project director of Kinder Morgan Pipelines, said during...
  • Opec's Wake Up Call

    12/08/2014 7:58:38 AM PST · by thackney · 6 replies
    Energy Intel ^ | December 2014 | Sadad al-Husseini
    The Opec meeting of Nov. 27 brought new strategic thinking to Opec's deliberations and redirected its fixation away from short-term oil pricing toward greater commercial transparency and market-based commodity pricing. This was due in no small measure to Saudi Arabia's determination to eliminate ill-advised oil price manipulations and restore Opec's credibility as the price setting leader of international oil markets. This reality check became inevitable when Opec finally focused on the stark facts of a weak global economy and soft oil demand at a time of abundant oil supplies and inflated prices. The kingdom was forceful in advocating the reality...
  • Almost all U.S. nuclear plants require life extension past 60 years to operate beyond 2050

    12/08/2014 5:36:54 AM PST · by thackney · 2 replies
    Energy Information Administration ^ | DECEMBER 8, 2014 | Energy Information Administration
    When nuclear power plants are built, the Nuclear Regulatory Commission (NRC) has the authority to issue initial operating licenses for a period of 40 years. Beyond that, the reactors need license renewals, and the NRC has granted 20-year license renewals to 74 of the 100 operating reactors in the United States. These reactors may now operate for a total period of 60 years. They represent a cumulative capacity of a little more than 69,000 megawatts (MW). The NRC is currently reviewing license renewal applications for an additional 17 reactors, and expects to receive seven more applications in the next few...
  • Phillips 66 boosts 2015 budget

    12/08/2014 5:14:06 AM PST · by thackney · 2 replies
    Houston Business Journal ^ | Dec 5, 2014 | Olivia Pulsinelli
    Phillips 66 (NYSE: PSX) said Dec. 5 its capital budget for 2015 is $4.6 billion, up 18 percent from what it spent in 2014. Including spending for joint ventures DCP Midstream, Chevron Phillips Chemical Co. and WRB Refining, Phillips 66 expects its total capital program to be $6.8 billion next year. Last year, Phillips 66 announced its 2014 capital budget of $2.7 billion, not including joint ventures, in December and increased that to $3.9 billion in July. Here's a basic breakdown of the company's 2015 budget: Midstream:$3.16 billion, plus $550 million for its share of DCP's expenditures Chemicals:$1.45 billion for...
  • KPMG expert explains why Saudi Arabia can't sink crude prices into oblivion

    12/08/2014 5:04:54 AM PST · by thackney · 16 replies
    Dallas Business Journal ^ | Dec 5, 2014 | Nicholas Sakelaris
    Despite last week's bold proclamation, Saudi Arabia cannot keep producing crude oil and drive the price into oblivion if it wants to maintain its social services. Today, I talked with Regina Mayor, the advisor for the consultant practice at KPMG, who said she doesn't expect this price decline to continue. "The real break even for a lot of these countries is not what they're finding in extraction and transportation costs," Mayor said. "The real price for oil is what are the expectations of their populace in terms of commitments the government has made in terms of subsidies." The fear has...
  • BDO Energy Survey: Lower Crude Prices Jolt Energy's Financial Executives

    12/08/2014 4:50:39 AM PST · by thackney · 6 replies
    Rig Zone ^ | December 05, 2014 | Gene Lockard
    The slide in oil prices over the second-half of the year is having an effect on energy executives in the United States as they look ahead to the upcoming year. In fact, nearly half of all chief financial officers in the oil and gas industry who were polled said that low fossil fuel prices were likely to be their biggest financial concern in 2015. That was an increase of 55 percent in the number of executives who said the same thing a year ago, according to the BDO USA 2015 Energy Outlook Survey, a new report from BDO USA LLP....
  • Energy Pipeline: Finding talent is more complex, difficult in today’s market

    12/08/2014 4:45:51 AM PST · by thackney · 25 replies
    The Tribune ^ | December 4, 2014 | Tracy Hume
    When Jack Ekstrom joined Whiting Petroleum Corporation in 2008, the company had 450 employees. Six years later, the company has 1,100 employees, said Ekstrom, vice president of corporate and government relations at Whiting. “At any given time, we have about 250 approved positions that we need to fill during a 12-month period,” Ekstrom said, “even though we are not recruiting for all of them at the same time.” Whiting Petroleum’s surge in hiring reflects a larger hiring boom within the oil and gas industry that is playing out across the nation. U.S. Bureau of Labor Statistics indicate that 119,800 people...
  • IEA's Birol Sees Oil Price Rising Near $100 in Coming Years

    12/07/2014 8:17:49 AM PST · by thackney · 18 replies
    Rig Zone ^ | December 05, 2014 | Reuters
    The chief economist of the International Energy Agency (IEA) said on Friday he sees oil rising to near $100 a barrel in coming years, some 40 percent above current prices that have been hit by a supply glut and sluggish global growth. "I think an oil price, which will balance the markets in the next years to come, will be close to $100," Fatih Birol told a conference in Stockholm, when asked to quantify at what level he sees oil prices long-term. "We shouldn't be blinded with what's happening now. Looking at the geology, looking at the economics of the...
  • Jordan’s King Abdullah: Battling ISIS Is ‘Our Third World War’

    12/05/2014 11:03:30 AM PST · by thackney · 25 replies
    CBS DC ^ | December 5, 2014 | CBSDC/AP
    Jordan’s King Abdullah believes battling the Islamic State of Iraq and Syria and other terrorist groups is “our third world war.” Speaking to “CBS This Morning,” Abdullah stated that ISIS is a Muslim problem that they need to take ownership of. “We need to stand up and say what is right and what is wrong. This is no reflection of our religion. This is evil and all of us have got to make that decision,” Abdullah, who is in Washington to meet with President Barack Obama, said. “We have to stand up and say this is the line that is...
  • Oil price drop boosts argument for crude exports

    12/05/2014 10:25:12 AM PST · by thackney · 2 replies
    Fuel Fix ^ | December 5, 2014 | Jennifer A. Dlouhy
    Plummeting oil prices boost the argument for exporting U.S. crude and slowing the advance of new regulations that will affect the industry, American Petroleum Institute CEO Jack Gerard said Friday. Oil prices have fallen roughly 35 percent since June, with surging U.S. crude production helping boost supply beyond softening demand worldwide. Gerard cast that as “a temporary adjustment in the price,” with some rebound on the horizon, but told reporters in a conference call Friday that the decline should encourage U.S. policymakers to find ways to keep the domestic drilling boom on track. “The worst thing for us to do...
  • U.S. oil reserves continue rising, surpass 36 billion barrels for first time since 1975

    12/05/2014 5:18:37 AM PST · by thackney · 8 replies
    Energy Information Administration ^ | DECEMBER 5, 2014 | Energy Information Administration
    U.S. crude oil and lease condensate proved reserves rose for the fifth consecutive year in 2013, increasing by 9% from the 2012 level to 36.5 billion barrels, according to the U.S. Crude Oil and Natural Gas Proved Reserves, 2013 report released yesterday by the U.S. Energy Information Administration (EIA). U.S. crude oil and lease condensate proved reserves surpassed 36 billion barrels for the first time since 1975. North Dakota had the largest increase (1.9 billion barrels, 51%) in oil reserves among individual states in 2013, based on development of the Bakken/Three Forks formation in the Williston Basin. With 5.7 billion...
  • Weekly Natural Gas Storage Report

    12/05/2014 4:59:31 AM PST · by thackney
    Energy Information Administration ^ | December 4, 2014 | Energy Information Administration
    Working gas in storage was 3,410 Bcf as of Friday, November 28, 2014, according to EIA estimates. This represents a net decline of 22 Bcf from the previous week. Stocks were 227 Bcf less than last year at this time and 372 Bcf below the 5-year average of 3,782 Bcf. In the East Region, stocks were 183 Bcf below the 5-year average following net withdrawals of 34 Bcf. Stocks in the Producing Region were 145 Bcf below the 5-year average of 1,247 Bcf after a net injection of 11 Bcf. Stocks in the West Region were 44 Bcf below the...
  • Iraq Exports Boost to Add Pressure on 2015 Oil Market

    12/05/2014 4:51:39 AM PST · by thackney · 6 replies
    Reuters via Rig Zone ^ | December 04, 2014 | Alex Lawler
    Iraq's plan for higher oil exports in 2015, emerging in detail just days after OPEC shunned any output cut, will add to global over supply and is likely to entrench the reluctance of other OPEC members to curb their own supplies. Iraq's government on Tuesday reached a temporary agreement with Kurdish regional authorities, preparing the ground for flows of 300,000 barrels per day (bpd) of Kirkuk crude exports to resume, on top of 250,000 bpd from the region's own fields. The increase could cause unease for other members of the Organization of the Petroleum Exporting Countries unable to boost exports...