AAA: Small events won’t upset U.S. gas price fall
Prices for crude oil and gasoline are in a “free fall,” suggesting it would take a major market event for U.S. gas prices to go up, a AAA spokesman said. The Continue Reading
Clash Looms Over Fuel Economy Standard
National Highway Safety Transportation Administration chief Mark Rosekind said the nation’s fuel efficiency mandate isn’t going to be sacrificed because gasoline has fallen to a six-year low in the U.S. Reuters Auto makers are on a collision course with U.S. regulators over the timetable to achieve stringent fuel-economy standards as cheap gasoline sends consumers flocking to less-efficient pickup trucks and sport-utility vehicles. Car companies are laying the groundwork to seek some relief when the targets come up for review by regulators in 2017, executives said at the North American International Auto Show in Detroit. They are in some cases already canvassing the White House, Capitol Hill and regulatory agencies to start lobbying for possible changes to fuel economy standards that take effect in 2022. The mileage targets, known as corporate average fuel economy, or CAFE, call for auto makers to sell a portfolio of light-duty cars and trucks averaging […]
Obama Administration to Unveil Plans to Cut Methane Emissions
WASHINGTON — In President Obama ’s latest move using executive authority to tackle climate change , administration officials are announcing plans this week to impose new regulations on the oil and gas industry’s emissions of methane, a powerful greenhouse gas. The administration’s goal is to cut methane emissions from oil and gas production by up to 45 percent by 2025 from the levels recorded in 2012, according to a person familiar with Mr. Obama’s plans. The Environmental Protection Agency will issue the proposed regulations this summer, and final regulations by 2016, according to the person, whom the administration asked not to speak about the plan. The White House declined to comment on the effort. The new rules are part of Mr. Obama’s push for regulations designed to cut emissions of planet-warming greenhouse gases from different sectors of the economy. The White House says it can make the moves under […]
US EIA sets 2016 natural gas price forecast at $3.86/MMBtu
Washington (Platts)–13Jan2015/428 pm EST/2128 GMT Spot natural gas prices at the benchmark Henry Hub in Louisiana are expected to average $3.86/MMBtu in 2016, the US Energy Information Administration said Tuesday in its first forecast for that time frame. The January Short-Term Energy Outlook also cut the agency’s 2015 natural gas price call to $3.44/MMBtu, which is 39 cents below last month’s forecast. In comparison, Henry Hub spot prices averaged $4.39/MMBtu in 2014, the agency said. In its outlook, EIA cut the price estimate for first-quarter of 2015 by 72 cents to $3.23/MMBtu, and it reduced its Q2 outlook by 33 cents to $3.30/MMBtu. The drop in near-term prices comes from a warm December, EIA Deputy Administrator Howard Gruenspecht said Tuesday on a conference call. Production also is playing a role, according to the outlook. "EIA expects the Henry Hub natural gas spot price to average $3.52/MMBtu this winter compared […]
Short-Term Energy Outlook 2015 and 2016
The EIA has just released their Short-Term Energy Outlook for January. They have now included their predictions for 2016. Here is what they expect for US C+C. I have made the first projected production for December 2014 though the EIA says they have production data for December. All date is in million barrels per day through December 2016. STEO Total US C+C The EIA is saying that US C+C will peak at 9.47 mb/d in May 2015, drop 330,000 barrels per day by September 2015 then recovers, apparently because the price of oil goes back. Or perhaps they have another reason. They do not have US production surpassing May 2015 until July of 2016. The EIA only gives C+C outlook numbers for domestic production. However they do project total liquids for all Non-OPEC nations. But first here is what they are predicting for US total liquids: STEO US Total […]
EIA: US 2016 Oil Output Growth Seen Slowest In 5 Years
URL: http://www.rigzone.com/news/oil_gas/a/136735/EIA_US_2016_Oil_Output_Growth_Seen_Slowest_In_5_Years NEW YORK, Jan 13 (Reuters) – The U.S. government said on Tuesday it expects domestic oil output in 2016 to grow only 2.2 percent, the slowest pace in years, as the relentless rout in prices puts the brakes on the country’s five-year shale boom. In its first forecast for next year, the U.S. Energy Information Administration said domestic oil production will rise about 200,000 barrels a day to 9.5 million bpd in 2016. That amount in barrels is the smallest increase since 2011. While this would be the second-highest annual average level of production in U.S. history, the slowdown in growth reflects the long-term impact of plunging prices on output as drillers curb higher-cost capacity in some shale formations. "Many oil companies have cut back on their exploration drilling in response to falling crude prices and will concentrate their drilling activities in established areas that already have […]
EIA: Continued global oil stock build to keep pressure on oil prices
In its most recent monthly Short-Term Energy Outlook (STEO), the US Energy Information Administration reported it expects global oil inventories to continue to build in 2015, keeping downward pressure on oil prices. Continue Reading
As Oil Plummets, How Much Pain Still Looms For US Energy Firms?
URL: http://www.rigzone.com/news/oil_gas/a/136705/As_Oil_Plummets_How_Much_Pain_Still_Looms_For_US_Energy_Firms With nearly a quarter of US energy shares’ value wiped out by oil’s 6-month slide, investors are wondering if the sector has taken enough punishment. NEW YORK, Jan 12 (Reuters) – With nearly a quarter of U.S. energy shares’ value wiped out by oil’s six-month slide, investors are wondering if the sector has taken enough punishment and whether it is time to pile back in ahead of earnings reports later this month. The broad energy S&P 1500 index gained more than 4 percent over the past month, suggesting many believe markets have already factored in the pain caused by oil prices tumbling by more than half since June below $50 a barrel. Yet since the start of this year, most energy stocks have given up some of those gains, revealing anxiety that some nasty surprises might still be lurking somewhere and that last month’s bounce may not […]
Halliburton Cuts Jobs in Houston Amid Slumping Crude Oil
URL: http://www.rigzone.com/news/oil_gas/a/136736/Halliburton_Cuts_Jobs_in_Houston_Amid_Slumping_Crude_Oil Houston-based oilfield service major Halliburton is cutting jobs in Houston in response to the drop in crude oil prices, the company told Rigzone in an email release. The company did not say how many jobs it was cutting in Houston. “Halliburton continues to make adjustments to its workforce based on current business conditions. The company has made some workforce reductions in Houston,” Halliburton Public Relations spokesperson Chevalier Mayes said in the email release. “While these reductions are difficult, we believe they are necessary to work through this challenging market. We will continue to monitor the business environment closely and will make adjustments to the cost structure of our business as needed.” In December, Halliburton, which employees 80,000 workers in 80 countries, cut 1,000 workers in Europe, Asia, Africa, the Middle East and Australia due to falling oil prices. The company said then that the cuts were due […]
Suncor Cuts Jobs, Spending as Oil Rout Rattles Canada
Suncor Energy Inc. (SU) , Canada ’s largest oil company, said it will cut 1,000 jobs, lower its 2015 capital budget by about 13 percent and delay projects to weather collapsing prices. The company will spend C$1 billion ($836 million) less this year than originally forecast in November, following Canadian Natural Resources Ltd. (CNQ) in revising its budget lower this week. Suncor also plans to reduce operating expenses by C$600 million to C$800 million in two years, according to a company statement today. “Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices ,” Steve Williams , Suncor’s chief executive officer, said in the statement. “In today’s low crude price environment, it’s essential we accelerate this work.” The cuts are the latest blow to Canada’s energy industry and economy as plummeting prices reverberate in […]