North Dakota shows 3 percent increase in rig activity
In a further sign the worst may be over for North Dakota, the state reported an increase in the number of rigs exploring for or producing oil and natural gas. Continue Reading
Noble Energy’s key Gulf of Mexico fields come online, quick ramp-ups eyed: CEO
Noble Energy’s two long-awaited deepwater Gulf of Mexico fields came on stream ahead of schedule in late October and should reach peak in the next couple of weeks, the company’s CEO said Monday. The Dantzler and Big Bend fields, in water depths around 6,000 feet, are set to deliver over 45,000 b/d of oil equivalent gross combined at peak, and should produce at maximum of 25,000 boe/d and 20,000 boe/d, respectively, Dave Stover said during a quarterly earnings conference call. "Big Bend already tested close to full rate over the weekend, and Dantzler should ramp up quickly as well," Stover said. Noble will have a total 20,000 boe/d net from the field, which comprises part of the company’s Rio Grande complex in the Gulf’s Mississippi Canyon area offshore southeast Louisiana. The fields had been eyed for first production by year-end. They are producing into Murphy Oil’s Thunder Hawk facility, […]
Is ConocoPhillips’ Exit from DeepWater A Harbinger of The Sector Drying Up?
ConocoPhillips’ declaration that it will be out of the deepwater oil and gas search by 2017 is perhaps indicative of things to come in the sector. In the wake of ConocoPhillips’ impromptu declaration that its exiting deep-water exploration during an analyst call last week, the sector itself appears to be bleak territory. Tudor Pickering Holt & Co. said in a Monday note to investors that the industry has been moving away from deepwater exploration. “In a lower for longer environment, [COP’s departure] is likely the right move as a dearth of industry success combined with long lead investment cycles on development continue to put pressure on capital budgets in an uncertain world,” TPH said, adding that other exploration and production (E&P) companies heavy in deepwater may have to turn to mergers and acquisitions (M&A) to survive . Since 2013, TPH estimated $90 billion has been spent on deepwater exploration. […]
BP sees technology nearly doubling world energy resources by 2050
A BP logo is seen at a petrol station in London January 15, 2015. The world is no longer at risk of running out of oil or gas for decades ahead with existing technology capable of unlocking so much that global reserves would almost double by 2050 despite booming consumption, oil major BP ( BP.L ) said on Monday. When taking into account all accessible forms of energy including nuclear, wind and solar, there are enough resources to meet 20 times what the world will need over that period, David Eyton, BP Group Head of Technology said. "Energy resources are plentiful. Concerns over running out of oil and gas have disappeared," Eyton said at the launch of BP’s inaugural Technology Outlook. Oil and gas companies have invested heavily in squeezing the maximum from existing reservoirs by using chemicals, super computers and robotics. The halving of oil prices since last […]
BP: Current Technology Can Meet 2050’s 2.5 Trillion Barrel Demand
The oil and gas industry can meet the world’s consumption demand of around 2.5 trillion barrels of oil and gas in 2050 using current upstream technology, according to BP’s Technology Outlook report. The oil and gas industry will be able to meet the world’s consumption demand of around 2.5 trillion barrels of oil and gas in 2050 using current upstream technology, according to BP’s Technology Outlook report, which was launched at the energy firm’s London office Monday. BP’s report shows that, by using the best available technologies in the sector today for discovered oil and gas, around 4.8 trillion barrels of oil and gas equivalent would be available around the world. Furthermore, if exploration and new technologies are factored in, this number has the potential to grow to around 7.5 trillion barrels of oil and gas equivalent, which is likely to be roughly triple the world’s demand by 2050. […]
South Texas Experiences Deepest Oil Production Cuts
American oil companies pulling back in the face of low crude prices are making the steepest production cuts in South Texas. Oil output from the giant Eagle Ford field tumbled by almost 227,000 barrels a day, or 13%, between September and April, which marked the peak for the seven most prolific U.S. shale regions, according to federal estimates. That field’s drop accounted for 90% of the overall decline. But that drop may be only temporary. Several of the biggest operators in the Eagle Ford are still drilling wells and putting off extracting the oil until prices rise. U.S. oil now sells for under $50 a barrel, less than half the price a year ago. Leaving the oil in the ground from an unfinished well saves a company millions of dollars up front and provides it with reserves that can quickly be tapped if prices rebound, said Jason Wangler, an […]
In West Texas, Oil Drillers Keep Pumping
MIDLAND, Texas—As a financial storm lashes the U.S. oil patch, energy companies are seeking shelter in the closest thing the industry has to a port: a sprawling expanse of West Texas known as the Permian Basin. In fact, as drillers pull back in oil fields across the U.S., they are pumping more crude than ever in the Permian, according to some federal data. And companies from giant Exxon Mobil Corp. XOM 0.62 % on down have been vying to add to their acreage in the oil field that stretches north from Midland almost to Lubbock. “There’s an old saying, ‘If you want oil and gas, you go where it is,’ ” said Gary Willingham, executive vice president of operations for Noble Energy Inc., NBL 2.11 % which earlier this year bought new drilling rights in the Permian by purchasing Rosetta Resources Inc. for $2.1 billion. The strength of the […]
US Oil Production by State
The EIA’s Petroleum Supply Monthly is just out with production numbers, through August, for each state and offshore territories. The EIA’s Monthly Energy Review is also out. This publication has US production data through September but not for individual states. US Total C+C The Petroleum Supply Monthly June 15 production numbers were revised down considerably this month. And you can see they had a drop of 169,000 bpd in September. I think there will likely be an even larger drop in October. At any rate US production is finally starting to drop significantly. Gulf of Mexico The Gulf of Mexico is the one place that is bucking the trend. The GOM was up 146,000 bpd in July and up another 63,000 bpd in August for a total of 209,000 bpd for the two months. Texas was down for the fifth straight month. North Dakota North Dakota has been moving […]
Harsh realities finally push US champions of shale oil into retreat
Prolific output from US shale formations in recent years have thrown the world oil market off balance. But a long market slump is now forcing shale producers to retreat . US crude oil output hit a 44-year peak of 9.6m barrels a day in April then began to decline. By summer next year it will have fallen by a tenth, the US Energy Information Administration (EIA) forecasts. It took months for US supplies to finally reverse in response to the tumble in oil prices that started in mid-2014. If prices creep higher again, any rebound in shale production will come with a similar lag, analysts say. The US shale energy industry has made a stunning contribution to the oil market glut. Of the nearly 5m b/d in net global crude oil supply added between 2009 and 2014, 3.3m b/d was from the US, EIA data show. World supply stood […]
Oil Companies Curtail Spending on Everything–Except Dividends
A year after the bear market in crude began, oil companies have cut workers, are using fewer rigs and have less money to spend. But they’re still pumping more oil. BP Plc, Royal Dutch Shell Corp. and Hess Corp. are among the companies producing more crude than a year ago. In the U.S., shale explorers have focused on the most productive parts of their land, drilled faster and better wells there and negotiated lower prices from oilfield service companies. It’s helped keep total U.S. output about 1.6 percent higher than at this time last year, even as drilling rigs have fallen by 63 percent. “A well that broke even at $60 18 months ago is now at $40,” said Harold York, a senior analyst for Wood Mackenzie Ltd. in Houston. “If drilling a well generates a return greater than the cost of capital, companies are going to do it. […]