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
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
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…
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…
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
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