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Baker Hughes: US Weekly Oil Rig Count Decline Slows

June 26 (Reuters) – Energy firms pulled three rigs from U.S. oil fields this week, the smallest drop in five weeks, data showed on Friday, a sign the collapse in drilling is coming to an end as crude prices recovered after falling 60 percent from last June to March. It was the 29th straight weekly decline, bringing the total down to 628, the lowest since August 2010, oil services company Baker Hughes Inc said in its closely followed report. In the latest week, drillers removed two rigs in the Permian, the biggest U.S. shale oil play in West Texas and eastern New Mexico, and three in the Bakken centered in North Dakota. Experts expect the rig count to bottom out soon. "We expect the rig count decline to remain lumpy in the coming weeks and expect to see a few weeks with some rig additions, offset by larger declines […]

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BHI: US rig count posts first increase in 29 weeks

Buoyed by respective rises in natural gas-directed and offshore rigs, the US drilling rig count gained 2 units during the week ended June 26 to reach 859 rigs working, marking its first increase in 29 weeks, according to data from Baker Hughes Inc. The last rise occurred during the week ended Dec. 5, 2014, and the count has since plunged 1,061 units ( OGJ Online, Dec. 5, 2014 ). Since this week a year ago, the count is down 1,014 units. During the last 7 weeks, the count has averaged a decline of a mere 5 rigs/week. Analysts at Raymond James & Associates Inc. noted in an energy update this week that 1,030 new well permits were issued last week, representing the highest total since the first week of February. During the previous 18 weeks, the average number of permits issued each week was just 852. Utilizing a 4-week […]

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US oil operators make plans to add rigs, but will be disciplined: analysts

A long-awaited trough in the US rig count appears to be settling in after the severe drop in oil prices during late 2014, although analysts widely believe some exploration-and-production companies will selectively add rigs later this year. But experts say the adds will likely amount to a trickle rather than a deluge, as current oil prices around $60/barrel is enough to sustain current levels, but not enough to entice a widespread activity rebound. In fact, the Baker Hughes rig count rose Friday for the first time since early December, although the increase of two appeared to come from natural gas-prone areas outside the big shale plays, where rig counts continued to drop. "We do expect the rig count to rise minimally through the remainder of this year [at an estimated] small 3-5% increase through year-end, so maybe 25-40 incremental rigs," Robert W. Baird analyst Daniel Katzenberg told Platts. Baird […]

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Exxon Mobil, BP Suspend Canadian Arctic Exploratory Drilling Program in Beaufort Sea

The move represents a setback for oil companies active in Canada’s arctic waters and follows a similar decision by Chevron Corp. CVX 0.26 % in December to halt its own exploratory drilling program in the Beaufort Sea . Those projects have been stymied by regulatory hurdles and some of the world’s highest extraction costs. Imperial Oil Ltd. IMO 0.60 % , Exxon Mobil’s Canadian affiliate, informed federal regulators in Canada of its decision to suspend its Beaufort Sea exploratory program on Friday and said it would seek to have its current lease extended retroactively to 16 years. “If approved, the extension would provide sufficient time to undertake the necessary technical studies and develop the technology and processes to support responsible development in the Beaufort Sea,” Imperial Oil said in a letter to Canada’s National Energy Board. The Arctic holds billions of barrels of untapped oil reserves, but offshore-drilling costs […]

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House safety drum sounded for California oil spill

House leaders want answers from Plains All American and federal safety regulators in the wake of the May oil spill off the coast of California. File Photo by Jim Ruymen/UPI WASHINGTON, June 26 (UPI) — Congressional leaders said they want explanations from the company behind the May oil spill in California, as well as from federal safety regulators. A pipeline system operated by Plains All American, which has headquarters in Houston, leaked as much as 2,500 barrels of oil in Santa Barbara County in mid-May, the worst spill in California in 25 years. About 500 barrels may have reached the waters off the coast of Refugio State Beach and oil migrated more than 100 miles along the coastline. The federal Pipeline and Hazardous Materials Safety Administration released their preliminary findings of the integrity of the pipeline system. PHMSA said it found "extensive" corrosion, with walls degraded by as much […]

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Canadian oil producers back lower emissions

Canadian oil production group said it has a commitment to lowering emissions. Alberta government expected to raise carbon taxes on industry struggling to navigate weak crude oil market. Photo by Pattie Steib/Shutterstock CALGARY, Alberta, June 26 (UPI) — An industry group in the Canadian oil sands sector said it was committed to playing a greater role in the effort to reduce greenhouse gas emissions. The Canadian Association of Petroleum Producers said that, since 1990, the sector has spent more than $1 billion on technologies needed to produce oil with a lower environmental footprint. With climate action moving to the forefront of the global conversation, the industry group said it was prepared to do more . "We developed the technology to get the oil out of the sand – and we are just as committed to getting our carbon out of the air," CAPP President Tim McMillan said in a […]

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Texas oil production holding steady

Texas oil production holding steady as crude oil markets start to show a degree of stability following last year’s slump. File photo by Gary C. Caskey/UPI AUSTIN, Texas, June 26 (UPI) — Texas oil production in April was up more than 10 percent year-on-year, but relatively unchanged from the previous month, the state’s energy regulator said. The Railroad Commission of Texas, the state’s energy regulator, reported April crude oil production averaged 2.31 million barrels per day, up from the 2.04 million bpd produced in April 2014. April 2015 production in Texas came from 164,316 oil wells. Data reported in March show crude oil production averaged 2.31 million bpd, down from the 2.34 million bpd reported in February. The data comes as crude oil prices are starting to level off after a late 2014 plummet below the $100 per barrel mark. Crude oil traded below the $50 per barrel mark […]

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California oil spill gushed like hose ‘without a nozzle’

AP Photo LOS ANGELES (AP) — Firefighters investigating a reported petroleum stench at a California beach last month didn’t take long to find a spill – oil was spreading across the sand and into the surf. Tracing the source, they found crude gushing from a bluff like a fire hose "without a nozzle," records show. But critical time would elapse before the operator of a nearby pipeline confirmed that it had ruptured and spewed the oil. An employee at the scene for Plains All American Pipeline initially suggested to firefighters that the spill "was too big to be from their pipeline," according to the documents obtained by The Associated Press. The description of what firefighters found May 19 at Refugio State Beach was detailed in records Santa Barbara County firefighters filed with state officials. It indicates that firefighters who arrived just before noon quickly recognized that "some sort of […]

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Connected Semis Will Make Trucking Way More Efficient

Click to Open Overlay Gallery Zonar products are used in a variety of Daimler Trucks North America vehicles, including trucks made by Freightliner, Western Star and Thomas Built Buses. Daimler We’re moving into the age of the connected vehicle. And as excited as we might be to have cars that play our ’90s alternative rock Spotify playlists and let us send text messages via voice control, such things are frivolous compared to the safety and efficiency benefits that come when you wire up tractor trailers. Daimler Trucks North America signed a deal Thursday to take a small stake (less than 25 percent) in Zonar, which specializes in connecting truck computers, drivers, and fleet operators who can use all that data to increase efficiency and safety. The tech provider will remain independent, but it’s a sign that Daimler’s committed to using new tools to make trucking as efficient as possible. […]

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Greece’s Tsipras calls referendum to break bailout deadlock

ATHENS/BRUSSELS Greek Prime Minister Alexis Tsipras called a referendum on austerity demands from foreign creditors on Saturday, rejecting an "ultimatum" from lenders and putting a deal that could determine Greece’s future in Europe to a risky popular vote. The surprise call marked the most dramatic twist yet in five-month negotiations between Greece and its lenders, plunging the cash-strapped nation into uncharted waters and risking a default and capital controls as hopes for an aid agreement faded. After a week of acrimonious talks in Brussels, Tsipras dismissed lenders’ proposals as "blackmail" before flying to Athens to huddle with ministers. After midnight, he appeared on television to announce plans for a referendum on July 5. "Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people," Tsipras said in a televised address to the nation. The […]

Posted On : Published By : Tom Whipple