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More gas work slated in Egypt

Emirati energy company Dana Gas to drill first of 30 new natural gas wells in the Niger Delta region of Egypt. Map courtesy of Dana Gas. SHARJAH, United Arab Emirates, June 8 (UPI) — Emirati energy company Dana Gas said it started a new drilling campaign in Egypt in a deal that gives it the right to sell the government’s share of reserves. The company said it will spend the next four months drilling into the Balsam-2 concession onshore in the Nile Delta region, the first of an estimated 30 new wells covered under a gas production enhancement agreement. "Balsam-2 is the company’s first horizontal well in Egypt and is a fitting well to kick off this drilling campaign which effectively targets to develop all the Company’s remaining conventional gas reserves," Mark Fenton, Dana’s general manager for Egyptian operations, said in a statement. Dana under the terms of the […]

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Kurdistan receives May budget payment

Loading arms at the terminal for Iraqi crude exports at the Turkish port of Ceyhan. (STAFF/Iraq Oil Report) The Kurdistan Regional Government (KRG) has received 508.8 billion Iraqi dinars ($424 million*) from Iraq’s federal government for the month of May, as the two sides struggle to sustain a fraught oil export and revenue sharing agreement."This is the total allocation from Baghdad to KRG for May salaries, of which 34 billion Iraqi dinars ($28.3 million*) is for Peshmerga forces," said Iraq’s Deputy Finance Minister Fazil Nabi.Ahmed Abdulrahman, the spokesman for the KRG’s Ministry of … This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple
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China’s May crude oil imports drop, knocked off top buyer spot

BEIJING 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. [O/R] China imported 23.24 million tonnes of crude in May, data from the General Administration of Customs showed. This puts China behind the United States, which imported just under 30 million tonnes last month, according to calculations based on data from the U.S. Energy Information Administration. On a daily basis, China’s imports hit 5.47 million barrels in May, down nearly 26 percent from April’s record 7.37 million barrels per day (bpd). Strong imports in […]

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America’s Shale Oil Boom Grinding to Halt as OPEC Stands Pat

America’s Shale Oil Output is Shrinking The shale oil boom that turned the U.S. into the world’s largest fuel exporter and brought $3 gasoline back to America’s pumps is grinding to a halt. Crude output from the prolific tight-rock formations such as North Dakota’s Bakken and Texas’s Eagle Ford shale will shrink 1.3 percent to 5.58 million barrels a day this month, based on Energy Information Administration estimates. It’ll drop further in July to 5.49 million, the agency said Monday . With the Organization of Petroleum Exporting Countries refusing to curb its own oil production, U.S. shale is coming under pressure to re-balance a global supply glut. Everyone from EOG Resources Inc., the country’s biggest shale-oil producer, to hedge fund manager Andrew J. Hall to banks including Standard Chartered Plc have forecast declines in U.S. output following last year’s plunge in crude prices. The nation was still pumping the […]

Posted On : Published By : Tom Whipple
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Rig numbers in North Dakota recover

North Dakota rig activity increasing, though still far below levels set when oil prices were plummeting. Photo by Christopher Halloran/Shutterstock BISMARCK, N.D., June 8 (UPI) — The number of rigs actively exploring for or producing oil and natural gas in North Dakota recovered from recent lows, state data show. The state government reports 82 rigs in active service as of Monday, up one from Friday and two more than the number reported June 1, which marked a new record low for the state at the heart of the shale oil boom in the United States. North Dakota is the No. 2 oil producer. Oil production in March, the last full month for which data are available, was 1.19 million barrels per day, an increase from the previous month, but 3 percent below the all-time record set in December. State data from mid-March showed 111 active rigs in the state. […]

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New data series show more detail for crude oil stocks, storage by region

graph of working crude oil storage utilization at refineries and tanks, as explained in the article text Source: U.S. Energy Information Administration, Working and Net Available Shell Storage Capacity Report Note: PADD is Petroleum Administration for Defense District. In an effort to better present crude oil storage capacity and use across the United States, EIA has prepared new tables as part of the semiannual Working and Net Available Shell Storage Capacity Report . The new series show crude oil stocks held at refineries crude oil in tanks and underground storage in each Petroleum Administration for Defense District (PADD). Previously, this information was only available at the national level. Crude oil stocks in tanks and underground storage are used to calculate storage capacity utilization rates and to derive the quantity of crude oil held in pipelines and in transit by rail and water. Refinery stocks and storage capacity data by […]

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The EIA’s Drilling Productivity Report

The EIA has released its latest Drilling Productivity Report . There were some interesting data presented in the report. DPR Bakken They say the Bakken peaked at 1,311,703 barrels per day in March and will have declined by 74,763 bpd in July. The EIA says the Bakken will get 51,000 barrels per day in July from new wells but legacy wells will decline by 80,000 barrels per day leaving a decline of 29,000 bpd. DPR Eagle Ford The EIA says Eagle Ford peaked in 1,711,376 barrels per day in March and will have declined by a total of 117,971 bpd in July. The EIA says Eagle Ford will get 90,000 bpd from new wells in July but the decline from legacy wells will be 139,000 bpd leaving a decline of 49,000 bpd. DPR Niobrara The EIA says Niobrara peaked in March at 459,861 bpd and will have declined by […]

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Canadian Oil Sands Resume Output as Wildfire Threat Recedes

CALGARY—Two major Canadian oil sands operators said Monday they have resumed output at sites that had been shut down by a more than two-week old wildfire in northern Alberta, which exports much of its crude oil production to the U.S. The blaze had shut-in nearly 10% of Canada’s oil sands output, or about 233,000 barrels a day, since it was first detected on May 22. Canadian Natural Resources Ltd. CNQ -2.32 % said it expects to resume full production later this week at its 80,000 barrel-per-day Primrose site, which had been evacuated and shut down, and its 30,000 barrel-a-day Kirby South operation, which was forced to cut output due to the temporary closure of a pipeline. Cenovus Energy Inc. CVE -3.28 % said it began ramping up production at its 135,000 barrel-per-day Foster Creek site over the weekend, but didn’t provide an estimate for when output levels would return […]

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The Bakken ”Red Queen” is restrained with more credit

From Rune’s first ‘Red Queen’ post : The reference in the title to The Red Queen from “Alice in Wonderland” by the English author Charles Lutwidge Dodgson (perhaps better known from his pseudonym Lewis Carrol) who was an author, mathematician and logician, is deliberate to create associations with The Red Queen’s statement; "It takes all the running you can do, to keep in the same place" . This post is an update on Light Tight Oil (LTO) extraction in Bakken based upon published data from the North Dakota Industrial Commission (NDIC) as per March 2015. Extraction developments of LTO from Bakken may be followed by county, formation, vintage of wells, and one important source to understand the developments are coming from studying the developments by companies. Holding this up with companies’ financial statements (10-K and 10-Q) is an invaluable source about the companies, their financial capabilities and their strategies. […]

Posted On : Published By : Tom Whipple