This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

EIA says US shale oil production to fall 91,000b/d in August
Crude oil production in August from seven major US shale plays is expected to decline 91,000 b/d to 5.36 million b/d, according to the US Energy Information Administration’s latest Drilling Productivity Report (DPR). EIA last month also projected a 91,000-b/d decline for July. continue readingBHI: US rig count continues to upward climb
Although the overall US drilling rig count merely edged up a unit to 863 rigs working during the week ended July 10, it represented the third consecutive week of gains and another jump in oil-directed rigs, according to data from Baker Hughes Inc.Over the past 3 weeks the overall count has risen 6 units. The warm streak follows 28 consecutive weeks of losses, which has resulted in the count currently having 1,012 fewer units year-over-year continue reading

Company News

WPX Energy adds Permian Basin to its portfolio
WPX Energy is moving into the most prolific oil play in the United States.On July 14, 2015, the Tulsa-based company announced the acquisition of privately held RKI Exploration & Production, LLC for $2.75 billion (including $0.4 billion of debt). In return, WPX receives 92,000 net acres (98% held by production) in the Delaware Basin on the New Mexico-Texas border. The properties include 22,000 BOEPD of existing production, 3,600 gross risked drilling locations and more than 375 miles of existing midstream infrastructure. RKI was running four rigs in the region. continue reading

Marathon Petroleum acquires MarkWest Energy for $20 Billion
MPLX LP, the master limited partnership (MLP) vehicle of Marathon Petroleum, has announced the oil and gas industry’s third-largest acquisition to date in 2015.According to news releases from the three companies involved, MPC and MPLX have signed a definitive agreement to acquire MarkWest Energy Partners LP for total consideration of $20 billion, including approximately $4.2 billion in debt. The acquisition will be completed as a unit-for-unit transaction, with MWE shareholders exchanging each unit for 1.09 MPLX common units and a one-time cash payment of $3.37 per share. The exchange represents a premium of 32% per MWE’s closing price on July 10. continue reading

Market News

What Irans nuclear deal means for the global crude oil market
The nuclear accord reached in Vienna on Tuesday could eventually reshape global oil markets. After almost two years of talks, the holder of the world’s fourth-biggest crude reserves will benefit from an easing of international sanctions on exports in return for curbs on its nuclear program. How Much More Oil Can Iran Produce? continue reading

Environmental & Safety News

Washington raps pipeline regulator over slow action and response times
The nation’s top pipeline regulator has taken too long to impose congressionally ordered safeguards, including changes that could have blunted the impact of a recent spill in California, lawmakers said Tuesday.The stalled reforms include regulations governing how quickly companies must notify authorities after a pipeline spill, leak detection systems and the use of automatic and remote-control shut-off valves that can be triggered in emergencies to swiftly halt flowing oil and natural gas. All told, more than a dozen of the 42 mandates Congress gave the Pipeline and Hazardous Materials Safety Administration in a 2011 law remain unfinished, lawmakers said Tuesday. continue reading

12 dead in pipeline blast in Nigeria
An explosion at an Eni pipeline in Nigeria killed at least 12 people and injured three others, the Italian oil major said in a statement on Friday.The men were part of a maintenance crew, including security and environment officials, carrying out repairs on Thursday afternoon on the Tebidaba-Clough Creek line near the town of Azuzuama in the Niger delta’s Bayelsa state. continue reading

Disclaimer
All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

US shale output to drop by 91,000B/D in July according to the EIA.
Crude oil production in July from seven major US shale plays is expected to drop 91,000 b/d to 5.49 million b/d compared with June, according to the US Energy Information Administration’s latest Drilling Productivity Report (DPR). The forecasted decline is up 5,000 b/d compared with June’s decline from May.The DPR focuses on the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica, which altogether accounted for 95% of US oil production increases and all US natural production increases during 2011-13. continue reading

Chinas May crude imports drop, knocking them off the top buyers spot
China’s oil imports fell about 11 percent in May from a year ago in the steepest drop since November 2013, likely knocking the country off its perch as the world’s top crude buyer – a spot it claimed for the first time in April. Lower imports by China, at a time when markets are expected to be oversupplied following OPEC’s decision to keep its output targets unchanged, dragged down global crude prices on Monday. continue reading

OPEC adjusts to new oil market reality OPEC has never really been a “cartel” in the conventional sense of an organisation that agrees to restrict output to maximise revenues.So its decision on Friday not to cut production was entirely predictable and the only practical option open to its members.The strategy of maintaining production even as prices fall, led by the Saudis but now more or less embraced by most of the organisation’s membership, is really the only sensible course.


 

Company News

Statoil makes third gas discovery in Aasta Hanseen area
Statoil and PL602 partners have made a gas discovery in the Gymir prospect. With three discoveries in a row, Statoil said progress has been made in unlocking full potential of the Aasta Hansteen area.The well 6706/11-2, drilled by the Transocean Spitsbergen rig in the Gymir prospect, proved a gross 70-m gas column in the Nise Formation with good reservoir qualities, the company said in a news release. Statoil estimates the volumes in Gymir to be in the range of 6 million to 19 million barrels of recoverable oil equivalent. Gymir is located 8 km away from Roald Rygg and 14 km away from Snefrid Nord. continue reading

Gulfport Energy Partners purchases Utica acreage from American Energy Partners
Gulfport Energy (ticker: GPOR) made its second sizable acquisition in three months on June 9, 2015, landing 45,163 gross acres (33,426 net) in the Utica Shale from American Energy – Utica, LLC (AEU), a subsidiary of privately held American Energy Partners. The current purchase price is $387.2 million, but a deal for an additional 4,950 gross (net acres) is in place “if AEU completes the acquisition of such acreage within 30 days of the closing of the Monroe acquisition,” says the news release. If the shoe-in asset purchase is completed, GPOR’s total purchase price will be approximately $406.6 million. continue reading


 

Market News

The three seismic shifts that are shaking up the energy world
BP Plc released its yearly Statistical Review of World Energy on Wednesday. Used for decades as an industry benchmark, this year’s edition laid bare the seismic shifts taking place in global energy markets. continue reading


 

Environmental & Safety News

Exxon denied trucking permit
Local officials in California on Tuesday denied Exxon Mobil’s expedited request to truck oil along a coastal highway following a pipeline spill that left the company’s Santa Barbara offshore processing plant with no outlet for its crude. Exxon’s stranded production and filling onsite storage tanks don’t meet the definition of an emergency, wrote Dianne Black, the assistant planning and development director for the county, and Exxon Mobil didn’t provide enough evidence that the trucking plan fits within the county’s comprehensive plan. continue reading


 

Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

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This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Senate likely to vote on allowing crude oil exports in 2015
Ending the US crude oil export ban will produce such significant energy, economic, and geopolitical benefits that it appears likely to come to a Senate vote during 2015, Energy and Commerce Committee member John Hoeven predicted. continue reading

Texas tackles local fracking bans
With the sweep of his pen, Texas Gov. Greg Abbott signed into a law legislation Monday that effectively wipes out individual city rules on hydraulic fracturing. Roughly, one-third of Texas’ 950-plus cities have passed some measure to contain – or outright ban, in the case of Denton – fracking within their city limits. House Bill 40 by state Rep. Drew Darby, R-San Angelo, designed a four-prong test to determine whether those ordinances are in line with state intent. If they fail the test, the city rule is pre-empted by the new state law. The bill passed both the House and the Senate with the bipartisan support from more than two-thirds of state lawmakers. HB 40 is the third House bill the governor has signed this year; it becomes effective immediately. continue reading


Company News

Are U.S.drillers actually making a comeback
Oil prices have rebounded strongly since March. The benchmark WTI prices soared by more than 36 percent in two months, and Brent has jumped by more than 25 percent. There is a newfound bullishness in the oil markets – net long positions on Brent crude have hit multi-year highs in recent weeks on a belief that US supply is on its way down. continue reading

Talisman come up dry on their well north of the Varg Field
The well was drilled in the central part of the North Sea about six kilometres north of the Varg field and 220 kilometres southwest of Stavanger. The purpose of the well was to prove petroleum in Upper Jurassic reservoir rocks (the Ula and Sandnes formations) and in Middle Jurassic reservoir rocks (the Hugin and Sleipner formations). continue reading


Market News

Came across this rather interesting article which considers the potential reporting errors of global supply and demand which leads us to examine the whereabouts of approx 100 million barrels of oil.
Oil-market watchers are struggling to reconcile the large estimated oversupply in the market with the much smaller buildup of reported inventories and narrowing contango in futures prices. Some blame the barrel counters who compile official statistics on supply, demand and stocks. But the truth is that information on the world oil market is incomplete and it is easy for hundreds of millions of barrels of oil to disappear from the supply chain without being counted. continue reading


Environmental & Safety News

Burst pipeline leaks 21,000 gallons of oil off California coast
Its never good news when we hear of an oil spill, either on land or at sea. And when it happens in your own back yard it really makes you consider the impacts more deeply.  Unfortunately we had just that happen off the coast of Santa Barbara on Tuesday around midday. Clean up crews have done a superb Job in containment thus far. continue reading.

Also 84 workers evacuated from serious fire onboard an offshore vessel
5 Fire Engines were last night tackling a serious fire onboard an offshore construction vessel docked at Peterhead Harbour. continue reading

Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Oil hits 2015 highs as Libyan output slows, Saudis raise prices
Oil prices hit their highest for the year on Tuesday, aided by a disruption in Libyan crude exports, higher selling prices for Saudi oil and a weaker dollar that tends to inflate commodity prices.Since April’s price rally of between 20 and 25 percent, oil bulls have been pushing the market up on the notion that a supply glut was easing from tightening world production despite continuous builds in U.S. crude stockpiles. continue reading

What would lifting Iranian sanctions do to the global oil balance?
With the US working toward a nuclear deal with Iran, lifting Iranian sanctions could have a significant impact on the global oil balance. If sanctions are lifted, as much as 1 million more barrels of oil per day could enter the global supply by the end of 2016. With supply levels from Saudi Arabia unlikely to decrease during that period, Thomson Reuters Oil Research & Forecasts predicts a 13% drop in the average Brent spot price in 2016 if Iranian oil re-enters the market. continue reading


Company News

Shale giants see growth again after 40% price increase
EOG Resources Inc. and Pioneer Natural Resources Co., two of the largest shale-oil producers, are preparing to boost drilling again after oil prices climbed 40 percent in the past seven weeks. EOG Chairman and Chief Executive Officer William Thomas said Tuesday his company will increase drilling as soon as oil prices, which closed above $60 a barrel for the first time this year, stabilize at $65. Pioneer is planning to add drilling rigs starting in July, subject to oil price movements and the sale of other assets. continue reading

Rolls Royce and Weir Oil and Gas, join forces to develop fracking power system
Weir Oil and Gas and the Rolls-Royce Power Systems company MTU are forming a new joint venture company to oversee the development of their new power system, which is designed to make hydraulic fracturing operations more efficient. The new joint venture company, which will be named at a later date, is expected to be in operation by the beginning of 2016. continue reading


Market News

OTC 2015:Leaders discuss investment opportunities in energy hotspots
Global energy leaders at a 2015 Offshore Technology Conference session believe that opportunities abound in six energy hot spots around the globe. The panel of leaders shared opportunities as well as potential challenges that lie in the world’s ripest countries for energy. Leaders from the countries of Brazil, Canada, Indonesia, Mexico, the United States and Vietnam shared their respective countries’ recent stories of success, policy changes and investment possibilities. continue reading

Oil extends gain rising above $62 as US supply gut seems to be easing
Oil extended its advance to trade above $62 a barrel on signs the U.S. supply glut is easing. Futures gained as much as 2.7 percent in New York, rising from the highest close since December. Crude inventories fell by 1.5 million barrels through May 1, the first drop in industry data in eight weeks, the American Petroleum Institute was said to have reported Tuesday. An increase of 1.5 million is forecast in a Bloomberg survey before a separate government report Wednesday. The dollar declined against the euro and other currencies, increasing the appeal for commodities priced in the U.S. currency. continue reading


Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Oil at 2015 highs after first stock draw in 5 months at US hub
Oil prices hit their highest for this year on Wednesday after the first crude stock draw in five months at the U.S. Cushing, Oklahoma hub suggested an oil glut may be starting to ease. Government data showing a smaller-than-expected rise last week in crude inventories throughout the United States also aided sentiment, although some traders felt the market was ignoring bearish elements like higher production. read more

BP must remain British says Whitehall
Downing Street has discreetly let it be known in the City that it would oppose any takeover of BP,” the Financial Times reported on Sunday. The prime minister’s office has signalled it would make life difficult for any bidder, although no bid has been mooted yet, the newspaper said (“UK ministers make Gallic gesture to keep the British in BP”.


Company News

Time, and oil prices ticking for Shell-BG deal
Rising oil prices are putting Royal Dutch Shell under pressure to execute its landmark $70 billion deal to buy rival BG as soon as possible before investors in BG start to take a more critical look at the terms. read more…

Halliburton-Baker Hughes announce first $3.5 Billion of divestiture with more to follow
Earlier this month, Halliburton (ticker: HAL) announced that it would divest $3.5 billion in assets in the first round of divestitures to satisfy antitrust concerns in its $35 billion acquisition of Baker Hughes (ticker: BHI). HAL will be separately marketing for sale the company’s Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling (LWD)/Measurement-While-Drilling (MWD) business, according to a company press release. read more


Market News

Traders seem to be mis-pricing oil as spending slump signals crunch
Oil traders are mis-pricing crude futures for later this decade because they’re underestimating how a collapse in spending will affect supplies, according to consultants who advise energy producers and analysts. more

IEA: Global growth to underpin oil demand
Forecasters estimate that the world economy will grow by between 2.8% and 3.8% this year—about one percentage point lower than last year’s consensus forecasts. Yet as monitors of the global economy lower their expectations for 2015, executives are increasingly focusing on opportunities presented by diverging growth rates among regions, countries, and even sectors. Having bottomed out in the second quarter of 2014, global oil demand growth has since steadily risen, with year-on-year gains estimated at around 0.9m barrels per day (mb/d) for the final quarter of last year and 1.0mb/d for the current quarter, the International Energy Agency’s (IEA) March Oil Market Report revealed. continue


Disclaimer
All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Baker Hughes expects falling rig count to continue to weigh in Q2
Baker Hughes Inc, which is being bought by Halliburton Co for $35 billion, said it expects “unfavorable market conditions” to persist in the second quarter as drillers turn off more rigs, intensifying a glut in oilfield services more

It’s a new world taking shape in the energy Industry, Rex Tillerson, Exxon Mobil CEO tells a crowd at the IHS CERA week in Houston
And while the full picture of this new paradigm has yet to take shape, it’s clear that the industry needs to come together with the public and policy makers to pioneer these opportunities in a way that will erase the old lines between the conventional and the unconventional. continue

CERAWeek: Oil tool makers say upstream discounts unlikely to climb high
Though the industry expects operational and construction costs for oil-production projects to fall up to 40 percent this year, prices for tools and services probably won’t crumple that much, a panel of energy experts said Tuesday. more


Company News

Encana could be ready to sell $1Billion Haynesville assets
Encana Corporation is reportedly seeking buyers for shale gas assets in the Haynesville shale basin in Louisiana, as the company focuses on oil and liquid production in Texas and Canada. more


Market News

Increasing domestic production of crude oil reduces net petroleum imports
In its recently released Annual Energy Outlook 2015 (AEO2015) Reference case, EIA expects U.S. crude oil production to rise through 2020 as oil prices recover from their steep decline, reducing net petroleum (crude oil and petroleum products) imports. AEO 2015 explores the effects of domestic crude oil production under various assumptions about world oil prices and domestic resource availability. read article


Downstream News

We are all well aware of the ever increasing threat of cyber attacks, and the Oil and Gas sector is no different. To help combat these threats Honeywell Process Solutions (HPS) has launched the first digital dashboard designed to proactively monitor, measure and manage cyber security risk for control systems for refineries, power plants and other automated production sites throughout the world that are at increasing risk of cyber attacks. read more


Disclaimer
All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Industry cash flow break-evens down by $20/bbl with rapid strategic response
Rapid and aggressive strategic response by oil and gas companies to low oil prices has driven industry cash flow breakevens down by $20/bbl to $72/bbl, according to a recent analysis of Wood Mackenzie. If oil prices remain at current levels, further cuts would be required to achieve cash flow neutrality, WoodMac said. For some companies, this will mean selling assets, others may suspend or limit dividend and buyback programs. continue

EIA says cheap crude won’t slow US oil fields by much
Surging U.S. shale oil fields could hold the price of international crude below $80 a barrel for the next five years, the U.S. Energy Information Administration said in its annual energy outlook on Tuesday. It said low oil prices would only cut 700,000 barrels from the nation’s daily production in seven years, when U.S. oil fields would otherwise have pumped out 10.4 million barrels. continue


Company News

Shell, BG merger will require cost savings to work
Royal Dutch Shell plc’s $70-billion offer to buy out BG Group will involve job cuts in order to make the first “super merger” of oil companies in a decade work financially, according to industry observers and the two companies involved. continue


Market News

Iran joins OPEC member Libya calling on group to cut oil output
Iran became the second OPEC member this month to call on the group to reduce oil production ahead of its June meeting amid a global oversupply that’s cut crude prices by almost half. The Organization of Petroleum Exporting Countries should trim “at least 5 percent” from its output target of 30 million barrels a day, Oil Minister Bijan Namdar Zanganeh said at a news conference in Tehran Tuesday. Zanganeh’s comment, cited by the ministry’s news agency Shana, indicates Iran is seeking a minimum cut of 1.5 million million barrels a day. continue


E&P News

There are 1,400 wells drilled but not completed in the Eagle Ford Shale play
There are nearly 1,400 wells in the Eagle Ford Shale that have been drilled but not completed, according to new analysis from the firm IHS. Oil prices are hovering around $50 per barrel, down by half since last summer. And some Eagle Ford oil producers have been drilling but not fracking wells. The delay in completing wells avoids sending new barrels of oil into a cheap market. continue

Largest onshore oil find in the UK in over 30 years
UK Oil & Gas Investments announce the finding of a “world-class potential resource” at Horse Hill in the UK’s Weald Basin, with oil in place of 158 million barrels of oil per square mile. The total amount of oil is estimated to be as much as 100 billion barrels in place, although only between five and fifteen per cent of the oil is extractable. continue


Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

With prices yesterday in the high $53’s at one point, oil is having its biggest weekly gain since February 2011.

Industry News

Could the US depose Saudi Arabia and become the global ‘swing’ producer?
Douglas-Westwood (DW), UK’s energy business strategy, research and commercial due-diligence services provider, commented on “U.S. Shale – Gearing up for a price recovery” in its latest edition of DW Monday. read more.

US refiners can bulk up to consume more domestic oil
The United States can boost its consumption of the light oil increasingly flowing out of domestic wells today, a new government report finds, even as it warns that potential changes to the nation’s longstanding ban on raw crude exports risk undermining those investments. article here


Company News

EVEP to divest their interest in Utica, East Ohio for $575Million.
EV Energy Partners LP has signed a definitive agreement to divest its entire 21% interest in Utica East Ohio Midstream LLC (UEO) to Utica Gas Services LLC, a subsidiary of Williams Partners LP (NYSE: WPZ), for a total cash consideration of $575 million. read more


Market News

Liquefied Natural Gas projects are being nixed amid lower oil prices
In a recent report, Moody’s Investor Services said that Liquefied Natural Gas (LNG) suppliers are curtailing capital budgets, amid low oil prices and a coming glut of new LNG supply from Australia and the US. read here

Big oil companies brace after weak quarter due to falling oil prices
The world’s big oil companies and their investors are bracing for some of the worst quarterly financial results in recent memory as the first three months of the year closed with oil trading at about half of its 2014 peak. read here


Downstream News

Record gasoline output to curb biggest US oil glut in 85 years
Refiners are poised to make gasoline at a record pace this year, keeping the biggest U.S. crude glut in more than 80 years from overflowing storage.They’re enjoying the best margins in two years as they finish seasonal maintenance of their plants before the summer driving season. They’ll increase output to meet consumer demand and they’ve added more than 100,000 barrels a day of capacity since last summer, when they processed the most oil on record. Full article

Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

 

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Industry News

Signs that the collapse in drilling rigs is slowing
The number of rigs drilling for oil in the United States declined by 12 this week to 813, the smallest decline since December, oil services firm Baker Hughes said in its closely watched survey on Friday. read more

US may skirt oil storage crisis as drivers hit the road
A month ago, it seemed inevitable: a massive global oversupply of crude oil production would overwhelm storage tanks in Oklahoma and fill supertankers off Singapore. Now, there are growing signs that the U.S. oil market can avoid the doomsday scenario in which it runs out of room to stockpile surplus crude, a development that oil traders worried would send crude prices into another tailspin. full report

Oil & Gas Prices

REUTERS-Oil fell for a third straight session on Tuesday, with Brent crude tumbling 12 percent for the month, as world powers entered into intense negotiations with Iran for a nuclear deal that could bring more of its oil to an oversupplied market.The tumble was proof of the hurdles oil faced in establishing a bottom for prices since the selloff that began in June on worries of a supply glut. U.S. crude fell 11 percent for the quarter. In Tuesday’s session, prices ended off the day’s lows as the United States, Britain, France, Germany, Russia and China faced difficulty in reaching a preliminary nuclear accord with Iran before a Tuesday midnight deadline at the talks in Lausanne, Switzerland. for prices click here

 


Company News

Two Rig contracts terminated by BP
BP terminated contracts for two deepwater oil drilling rigs in the Gulf of Mexico as the British oil company slashes its exploration budget due to fallen oil prices.Offshore drilling company Ensco said it had received notice to terminate BP-operated rig DS-4 in the Gulf of Mexico. Rival Seadrill Partners announced this week that BP had also cancelled a contract for the West Sirius field in the same region. read here

Exxon starts production at its new deepwater project in the gulf
Exxon Mobil Corp. said Monday it had begun producing from its Hadrian South Gulf of Mexico project.Total production of the project is expected to reach about 300 million cubic feet of gas and 3,000 barrels of liquids per day from two wells. The well is located about 230 miles offshore and in about 7,650 feet of water. more…

 


Market News

 Lifting the oil export ban is front and center.
The dramatic increase in domestic oil production over the past decade – facilitated by drilling technology improvements – has rekindled the crude oil export debate. Allowing crude oil exports would provide an additional market for light crude derived from unconventional resources. This would increase their value, given the currently limited ability of domestic refineries to process light crude. article here

Bloomberg shows us why the price of oil crashed
In 2014 US oil production expanded the most since at least 1900. The geopolitics of oil are complicated, but last year’s oil crash isn’t. There’s one reason above all others for the drop in prices: The U.S. oil boom. Last year was the biggest spike in U.S. oil production since at least 1900, according to a new analysis by the Energy Department. more…

 


E&P News

Proposed arctic drilling regulations aim to protect with costly price tags
The U.S. federal government’s controversial proposal to tighten exploratory drilling requirements in the offshore Arctic region could make exploration in the Chukchi and Beaufort seas more costly than ever.The Arctic’s sub-freezing temperatures, remote location and lack of infrastructure already make drilling a costly venture, as operators must take extra precautions to protect exploratory wells from, above all, drifting sea ice that can harm a well’s most critical parts. full report

 


Disclaimer

All data and information provided on this site is for informational purposes only. USOilinvestment.com and its Newsletter makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.This is a personal publication; the opinions expressed here represent my own and not those of my employer.

{ 0 comments }

This weekly news column is for the growing number of private investors wishing to keep their finger on the pulse of the ever changing energy business, and is provided as a free informational service.

Industry News

Schlumberger sees prudence as new normal for US shale oil
In the face of sliding oil prices, Schlumberger, the worlds number 1 oil field services provider says that financial prudence in shale projects will be the new norm. Gone are the days of the intensive CAPEX budgets. Read more

Crude oil storage at Cushing highest on record
After increasing for 15 consecutive weeks oil storage at Cushing, Oklahoma, reached over 54 million barrels on March 13, according to an EIA report. full article


Market News

Rick Perry, former Texas governor, gave his support to the US oil export ban to be lifted.
Perry, a likely candidate for the 2016 Republican  presidential nomination, said that if he won the White House,  he would propel North America into the global energy business “in a big way.” more

Hedge funds get short of US oil as storage begins to weigh
Hedge funds have turned super-bearish about U.S. oil prices as concerns about running out of storage trump the drop in the number of rigs drilling new wells.Money managers had amassed a record number of short positions in futures and options contracts linked to WTI (West Texas Intermediate) by the end of March 17, equivalent to 209 million barrels of oil, according to the U.S. Commodity Futures Trading Commission’s (CFTC) latest commitments of traders report published on Friday. more


Environmental & Safety News

New fracturing regulations will have limited affect on US oil and gas output.
The recent US ruling about hydraulic fracturing on federal and tribal lands will have limited effect on existing US oil and natural gas production, said a Barclays Research analyst in New York. read here


M&A News

Linn Energy is to manage Quantum Energy Partners new entity.
Private Equity firm Quantum Energy Partners will invest $1Billiion in a new entity focused on acquiring oil and gas assets. more

Enlink to acquire VEX pipeline from Devon Energy
EnLink Midstream Partners LP, Dallas, reported entering into an agreement to acquire the Victoria Express Pipeline (VEX) and related truck terminal and storage assets from Devon Energy Corp. for a total of $210-220 million. The transaction is expected to close by April 1. full article


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