One Year Later and OPEC Still Hasn’t Killed Shale
“No change.” It was roughly one year ago that Kuwait’s oil minister succinctly delivered the message that would turn the oil market on its head. The group of oil producing Continue Reading
Oil: The Wildfire Spreads
The fires continue to burn in the oil sector. The longer that oil prices persist near cycle lows, the more likely it is that a wave of defaults from the Continue Reading
Major oil gains came from outside OPEC
There was modest growth in oil and gas reserves globally, though the majority came from the United States in 2014, a global oil and gas review found. Italian energy company Continue Reading
Could Cuts in CAPEX Be the Catalyst For Growth in Oil Prices?
North American upstream companies continue to slash spending but demand growth could turn that around within the next 18 to 20 months. Cuts to capital spending in the North American Continue Reading
Baker Hughes: US Oil Drillers Cut Rigs For 12th Week In Last 13
U.S. energy firms cut oil rigs for a 12th week in the last 13, data for the holiday-shortened week showed on Wednesday, a sign drillers were still waiting for higher Continue Reading
Canadian Oil Sands Cites Potential Suitors in Effort to Fend Off Suncor
Canadian Oil Sands holds the largest stake in the Syncrude oil-sands mining consortium. The interest by other parties may slow Suncor’s momentum ahead of a Dec. 4 deadline it has Continue Reading
Why “Supply and Demand” doesn’t Work for Oil
The traditional understanding of supply and demand works in some limited cases–will a manufacturer make red dresses or blue dresses? The manufacturer’s choice doesn’t make much difference to the economic Continue Reading
EIA: Texas oil standout for U.S. shale
Texas accounted for the bulk of the increased in proved U.S. oil reserves last year, a report from the U.S. Energy Information Administration finds. File photo by Gary C. Caskey/UPI WASHINGTON, Nov. 24 (UPI) — More than half of the increase in proven U.S. oil reserves came from Texas and most of that came from two shale basins, a U.S. federal report found. A full-year 2014 profile from the U.S. Energy Information Administration found total U.S. proved oil reserves of 39.9 billion barrels marked a 9 percent increase from the previous year. Total reserves for that year where their highest since 1972. "U.S. crude oil proved reserves increased in 2014 for the sixth year in a row with a net addition of 3.4 billion barrels of proved oil reserves," the EIA’s report read. Several years of oil priced above $100 per barrel made shale oil exploration and production in […]
Analysts Forecast 1.1M-Barrel Rise in Crude Stocks
NEW YORK–U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts by The Wall Street Journal. Estimates from 12 analysts surveyed showed that U.S. oil inventories are projected to have increased by 1.1 million barrels, on average, in the week ended Nov. 20. Nine analysts expect stockpiles to increase, while two expect a decline and one sees no change. Forecasts range from a rise of 4 million barrels to a drop of 2 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to rise by 500,000 barrels, according to analysts. Eight analysts expect a decline, with four expecting a rise. Estimates range from a rise of 2.5 million barrels to a drop of 3 million barrels. Stocks of distillates, which include heating […]
Evercore: Super Majors Ripe for Consolidation and Other Restructuring
Among the major themes of upcoming cycle will be the recovery of US land drilling, offshore restructuring and more risk to service industries, Evercore analysts say. Despite their relative safety during the downturn, large integrated oil companies must make some moves to get higher returns and more investor support, analysts at Evercore ISI said in a Nov. 13 webinar that covered a wealth of industry concerns. Doug Terreson, senior managing director and head of energy research, said that during the last merger phase, which started in 1998, companies were focused on returns at the expense of growth. That lasted until 2008, when their capital spending per shareholder distributions increased and then returns declined. “Both internal and external initiatives are available to the management teams of the super majors, which would enhance their profile with investors in the equity market,” he said. He noted that ConocoPhillips in 2009 and early […]