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.
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.
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
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
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