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North Dakota rig activity slowing

Data from North Dakota show the number of rigs in service off from their 2012 peak. (UPI/Shutterstock/Lilac Mountain) BISMARCK, N.D., Jan. 26 (UPI) — Data released Monday by the North Dakota government show the number of drilling rigs in active service down nearly 25 percent from the 2012 peak. Government data show 156 active rigs operations in the state as of Monday, a 16 percent decline from this date in 2014 and 22 percent lower than the historic peak recorded Jan. 26, 2012. Most of the rig activity was recorded in Williston County, host to the Bakken and Three Forks shale oil formations. The low price for crude oil is forcing energy companies to cut back on spending. Oil services company Baker Hughes last week said the number of rigs actively engaged in exploration or production was down 43 week-on-week, a sign the industry in general is starting to […]

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Montana oil spill no threat to North Dakota

Responders work to clear oil spilled in mid January into Yellowstone River. (Photo: Poplar pipeline unified command) WILLISTON, N.D., Jan. 26 (UPI) — North Dakota health officials said drinking water is safe to use following an oil spill in the Montana waters of the Yellowstone River. The North Dakota Department of Health and the city of Williston in a joint statement said they were still monitoring water levels, though the most recent test data show pollution levels are well below the threat level. "The tests revealed low levels of hydrocarbon contaminants within the system, but the level of contaminants is decreasing over time, which suggests that the contaminants are now leaving the system," Saturday’s statement read. The Poplar pipeline, operated by Bridger Pipeline, spilled oil into the Yellowstone River in mid January. A unified command responding to the spill said oil recovery continues, with the estimated spill volume reduced […]

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Bakken Play Rig Count Declines by 11

Williston Basin Rig Map in 2013 The Bakken-Three Forks rig count decreased by eleven  to 152 rigs running across our coverage area by the end of last week. In their weekly rig update, Baker Hughes reported that the Bakken’s decline is part of the overall plunge in U.S. oil and gas rig counts that are down by 49 to 1633. Declines were seen in all rig types: DIRECTIONAL 6 (-6) HORIZONTAL 144 (-8) VERTICAL 1 (-2) Most alarming to our readers is that Williston saw the biggest drop in the entire country and is showing the lowest numbers in four years. James Williams Williams, president of energy consulting company WTRG Economics commented to Bloomberg that,  “The Bakken was late to join the others leaving the party. It’s a high-cost producer with some of the lowest oil prices in the country.” COUNTY LAST WEEK THIS WEEK LA SALLE 34 33 […]

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Lower 48 oil production outlook stable despite expected near-term reduction in rig count

Source: U.S. Energy Information Administration, January Short-Term Energy Outlook Note: Graph does not include production from Alaska and the Federal Gulf of Mexico. The sharp decline in oil prices over the last quarter of 2014, which has continued in January, is already having a significant effect on drilling activity in the United States, as shown by the 16% decline in the number of active onshore drilling rigs in the Lower 48 states between the weeks ending on October 31, 2014 and January 23, 2015, according to data from Baker-Hughes. Moving from what has happened to forecasting the future is challenging, in part because market expectations of uncertainty in the price outlook have increased as reflected in the current values of futures and options contracts. When the latest edition of EIA’s monthly Short-Term Energy Outlook (STEO) was issued on January 13, the 95% confidence interval for market expectations for prices […]

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Kemp: North Dakota Oil Rigs Drop Points To US Output Decline After May

URL: http://www.rigzone.com/news/oil_gas/a/136928/Kemp_North_Dakota_Oil_Rigs_Drop_Points_To_US_Output_Decline_After_May The decline in oil drilling in the US should ensure that US production peaks by April or May. John Kemp is a Reuters market analyst. The views expressed are his own LONDON, Jan 26 (Reuters) – The decline in oil drilling that has occurred so far across the United States is probably enough to ensure U.S. production peaks by April or May, though that might not be evident until June or July given delays in publishing production records. If the number of active rigs continues to decline in the next few weeks, which seems likely, it is reasonably likely U.S. oil production will be falling by June or July 2015. In North Dakota, the number of rigs drilling for oil has fallen by almost a quarter in less than four months, according to oil field services company Baker Hughes. Baker Hughes puts the number of active drilling […]

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US Supreme Court Rejects BP Executive’s Appeal

URL: http://www.rigzone.com/news/oil_gas/a/136929/US_Supreme_Court_Rejects_BP_Executives_Appeal WASHINGTON, Jan 26 (Reuters) – The U.S. Supreme Court on Monday declined to hear an appeal by a former BP Plc executive who contested whether he can be charged with obstruction of Congress for downplaying the severity of the 2010 Gulf of Mexico oil spill. Prosecutors say David Rainey misled members of Congress over the amount of oil spilled in the April 2010 Deepwater Horizon incident. Rainey’s legal argument on appeal was that the government missed the deadline to file an appeal after a district court judge dismissed his obstruction charge. He was also charged with making false statements to law enforcement agents, which was not at issue in his Supreme Court appeal. He has pleaded not guilty. In June 2014, the 5th U.S. Circuit Court of Appeals in New Orleans said a lower court judge misinterpreted the obstruction statute in dismissing the charge against Rainey, a […]

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U.S. oil well shut-ins start as crude rout batters small producers

HOUSTON (Reuters) – Collapsing crude prices are confronting scores of smaller U.S. oil producers with the grim choice of either shutting older high-cost wells or burning through cash in the hope of riding out the downturn. As oil prices fell by more than half over the last six months from more than $100 per barrel, the U.S. oil industry responded by slowing its blistering growth and dialing back expansion plans. Now, with U.S. crude around $46 a barrel, operators are already closing some small old wells, known as strippers, and tens of thousands of similar wells are on the verge of losing money. A further slide could, by some estimates, idle an equivalent of up to 2 percent of U.S. supply, slowing overall output growth more than expected or even leaving it flat. Ray Lasseigne, an oilfield veteran and president of TMR Exploration Inc in Louisiana, is deciding which […]

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U.S. Seen Limiting Oil Drilling in Arctic, May Open Atlantic

The U.S. Interior Department will lay a framework as soon as Tuesday for oil exploration in the nation’s coastal waters in a five-year plan that is expected to withdraw areas off Alaska while possibly adding parts of the Atlantic. Republican Lisa Murkowski said the head of the offshore energy office told her the agency will place areas of the energy-rich U.S. Arctic off limits. Those areas had been previously deferred from new leasing. Current leases in the Arctic, such as those held by Royal Dutch Shell Plc (RDSA) , won’t be affected. “Maybe they’ve changed their minds after listening to the outrage from us. We’ll see,” Murkowski, the chairman of the Senate Energy and Natural Resources Committee, told reporters Monday. Jessica Kershaw, an Interior Department spokeswoman, didn’t respond to an e-mail asking about Murkowski’s comments. The agency’s proposed plan will control leasing in the Outer Continental Shelf, such as […]

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Keystone Pipeline Bill Stalls in Senate, Prolonging Debate

ENLARGE Some of more than 350 miles of pipe awaiting shipment for the Keystone XL oil pipeline is stored at Welspun Tubular, in Little Rock, Ark. Photo: Associated Press WASHINGTON—The Senate on Monday rejected a procedural motion to advance legislation to approve the Keystone XL pipeline, prolonging the chamber’s debate over the project. Amid a partisan fight over congressional procedure and absences due to weather and other conflicts, Senate Republican leaders couldn’t amass the 60 votes needed to end debate on the bill and move toward a final vote on approving the pipeline. The procedural vote was 53-39. While enough Senate Democrats support the pipeline to clear the 60-vote hurdle, several of them are fuming over a decision last week by Senate Majority Leader Mitch McConnell (R., Ky.) to vote against taking up Democratic amendments and to prevent Democrats from delivering one-minute floor speeches on their amendments. Their effort […]

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Hess Cuts 2015 Capital and Exploratory Spending

Hess Corp. is reducing its 2015 budget, joining a number of energy producers that have reduced spending plans amid a sharp decline in oil prices. The oil and gas company announced a 2015 capital and exploratory budget of $4.7 billion, down 16% from 2014 spending of $5.6 billion. Hess said it “is well positioned to manage through the current price environment” and said the budget “reflects a disciplined approach to maintaining our financial strength and flexibility while preserving our long term growth options.” Nymex WTI crude lost 7.2% last week, settling at its lowest value since March 11, 2009. The oil rig count in the U.S. declined by 49 last week, according to data by Baker Hughes Inc. ConocoPhillips and Marathon Oil Corp. have both projected 20% budget declines for 2015, while companies including Apache Corp. have announced layoffs. Hess said its planned budget includes about $2.1 billion of […]

Posted On : Published By : Tom Whipple