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U.S. Oil-Rig Count Increases to 664

The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, had fallen sharply since oil prices headed south last year. The rig count had dropped for 29 straight weeks before rising for two weeks and then falling again. Now it has risen for two straight weeks. Oil prices fell nearly 60% from June 2014 to a six-year low in March, as soaring production from the U.S. and other countries overwhelmed global demand. There are still about 59% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably recently. In late May, several U.S. shale-oil companies said they were ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices. According to Baker Hughes, gas rigs were down by seven to 209 this week. […]

Posted On : Published By : Tom Whipple
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BHI: Overall US rig count drops slightly, but oil rigs continue rise

A week after jumping by its highest margin since April 2014, the overall US drilling rig count lost 2 units during the week ended July 31 to settle at 874, according to data from Baker Hughes Inc. Rigs targeting oil, however, continued their upward momentum, gaining 5 units. Since the week ended June 26, the oil-directed count has added 36 units. A primary indicator of rig count activity, 950 new well permits were issued last week in the US, representing a noticeable rise from the 806 issued during the previous week. In an energy update released earlier this week, however, Raymond James & Associates Inc. explained that it’s “hard to believe that this will translate into a large increase in activity” given the recent dip in oil prices . “This is more likely reflective of plans for increasing activity predicated on a $60[/bbl] oil price, seen just one month […]

Posted On : Published By : Tom Whipple
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Pain Worsens for Oil Giants Exxon and Chevron

Exxon’s second-quarter profit plunged 52% to $4.2 billion. The energy giant’s division that pumps oil and gas accounted for just $2 billion of that, the lowest level since 2002. Chevron eked out a quarterly profit of $571 million thanks to its fuel-making refineries, which made up for the company’s $2.2 billion loss from pumping oil and gas—the first such loss in nearly 20 years. Chevron lowered its outlook for crude prices and wrote down the value of its energy holdings by $2 billion. The hard landing fell short of analysts’ expectations, and Exxon and Chevron shares dropped nearly 5% Friday, making them the two worst performers in the Dow Jones Industrial Average. Global oil prices have fallen more than 50% since last June, and settled Friday at $52 a barrel, the lowest since January. Exxon and Chevron have posted bigger profits during the 2009 downturn and earlier oil busts. […]

Posted On : Published By : Tom Whipple
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Florida Leans More on Natural Gas than Renewable Energy

Natural gas is easily Florida’s main source of energy, offering up 1,300 Trillion Btu in 2014. Gas is 62% of Florida’s power generation, compared to 47% in 2008, when the “shale revolution” really took off. Florida is unique in that power generation accounts for nearly 90% of the state’s total natural gas demand, while the national average is 33%. Second place Florida uses around 3 Bcf/day to generate 145 billion kWh of gas-fired electricity, compared to Texas leading at 205 billion kWh and California third at 120 billion kWh. The “Sunshine State,” however, is being criticized by environmental groups for such a dramatic shift to natural gas, despite the known cost and environmental advantages. Florida today has no wind power and solar accounts for less than 1% of the state’s electricity. Natural gas provides 585 times more electricity in Florida than wind and solar combined . Florida though is […]

Posted On : Published By : Tom Whipple
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Texas Oil Production On Track To Break Record

Economist Karr Ingham projects crude oil production in Texas will reach an all-time high in 2015. This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone. Just about everyone knows that crude oil and natural gas production in Texas has been on the increase for several years. But the size of the increase – especially in crude oil production – has been lost until just a few days ago when economist Karr Ingham told a gathering of reporters in Houston that he projects crude oil production will reach an all-time high in 2015, breaking the old record set in 1972. Ingham, speaking to roughly a dozen reporters in Houston on July 27, pointed out that the decline in oil price, drilling rig count, drilling permits, and well completions would strongly indicate that oil production would decline, also. That has not been […]

Posted On : Published By : Tom Whipple
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Hess sees higher 2015 Bakken oil production on fewer rigs

Hess raised its 2015 production forecast for prolific Bakken shale oil formation in North Dakota to 105,000-110,000 boe/d as more efficient well completions counter a lower rig count, CEO John Hess said Wednesday. Earlier this year, Hess had estimated 2015 Bakken production would range at 95,000 boe/d-110,000 boe/d. The company had cut its rig count from the 12 operating in Q1 to the eight currently operating in response to sharply lower crude costs. The price of Bakken from the Clearbrook, Minnesota, oil hub averaged $56.98/b in the second quarter, Platts assessment data showed. So far in the Q3, it has averaged $48.40/b, touching $44.31/b on Tuesday. Crude movements by rail between the Midwest and the East Coast refineries, one of the largest users of Bakken crude, has been falling. It was 12.41 million barrels in April, down from 12.86 million barrels in March, US Energy Information Administration data shows. […]

Posted On : Published By : Tom Whipple
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Solar-Power Fight Hits Home in Arizona

Arizona, the epicenter of a nationwide fight between solar companies and utilities, is introducing new rules for firms that offer solar panel leases, which consumers increasingly prefer to buying the rooftop systems outright. But some solar companies call such rules unnecessary, contending that there have been few complaints. Instead, they say, the regulations are a new effort by traditional utilities to try to stop the spread of residential solar in the state. Claims about consumer protection are camouflage for opposition to solar power among utilities and some government officials, said Lyndon Rive, chief executive of SolarCity Corp. SCTY 2.64 % , which has sued the state and a Phoenix-area utility over measures the company says are meant to deter customers from adopting rooftop systems. These fights, and proposals from four other Arizona utilities to change their policies in ways that would hurt the solar industry, make Arizona “the most […]

Posted On : Published By : Tom Whipple
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Imperial Oil Profit Drops 90% on Tax Charge, Low Crude Prices

Imperial Oil Ltd. IMO -0.56 % on Friday posted a 90% drop in its second-quarter profit, hurt by a large charge for a tax-rate increase in Alberta, slumping global oil prices and in the absence of a year-earlier gain on the sale of an asset. The Calgary, Alberta, integrated energy company, the Canadian subsidiary of Exxon Mobil Corp. XOM -4.58 % , did get a boost from stronger production levels in the quarter, helped in part by the early startup of an oil-sands expansion project in northern Alberta. Overall production rose nearly 20% to 344,000 barrels of oil equivalent a day, which the company said was its highest quarterly production level in nearly eight years. In June, Imperial Oil announced that production from the Kearl oil-sands expansion project had started earlier than scheduled. The 9 billion Canadian dollar ($6.9 billion) project is expected to add 110,000 barrels a day […]

Posted On : Published By : Tom Whipple
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SEC asked to review arctic oil exploration transparency

House Democrats raise concerns about risk disclosures by companies like Shell targeting reserves locked in arctic waters off the coast of Alaska. Photo by ziggysofi/Shutterstock WASHINGTON, July 31 (UPI) — U.S. congressional leaders said they had questions about the disclosure of risks facing companies like Royal Dutch Shell targeting arctic oil and gas reserves. Ranking members of the House of Representatives Committees on Natural Resources and Financial Services issued a letter to the Securities and Exchange Commission seeking a review of corporate financial disclosures by oil and gas companies with offshore operations, particular in arctic waters. When the federal government gave limited consent to Shell to start drilling operations off the coast of Alaska earlier this month, Rep. Raul Grijalva, D-Ariz., ranking member of the House natural resources committee, said Shell’s campaign was "fruitless." When issuing the letter to the SEC, Rep. Alan Lowethal, R-Calif., a member of the […]

Posted On : Published By : Tom Whipple