Shell EP Wells Equipment Wells Services BV, Swiss offshore rig contractor Transocean Ltd., and Daewoo Shipbuilding & Marine Engineering Co. (DSME) have together agreed to delay by 12 months the Continue Reading
Summary One concern hitting many investors recently has been the possibility that the U.S. is approaching full oil storage capacity. If true, this would certainly result in firesale energy prices at some point, throwing oil and other products down much lower than they are today. Upon digging into this, however, I discovered something that should dispel the concerns investors have regarding peak storage capacity that should allow long-term oil bulls to sleep at night. One thing that some of my readers have brought up on a regular basis has been the question of how much of this nation’s oil storage capacity is full since commercial crude inventories are at 80-year highs. At first glance, this may not seem like an important topic but it’s actually exceedingly important to oil investors for one particular reason; if we were to max out our storage capacity, the price of crude and other […]
All views expressed here are those of Verwimp Bruno and do not necessarily represent those of Ron Patterson. 1. INTRODUCTION Peak Oil is the moment in time when, on a global scale, the maximum rate of oil production is reached. The moment after which oil production, by nature, must decline forever. Since Earth is a closed system, next to this production (supply) event, there must be an equal demand event: Peak Oil Consumption. Since there are no substantial above ground deposits, Peak Oil Production and Peak Oil Consumption must coincide. The world consists of a lot of different countries, some of which are already far beyond peak oil production That leads to the assumption the world as a whole reaches peak oil production. On the demand side, it is worth looking, because different countries have different economies, different degrees of development, and so on, if, while some countries still […]
China’s Yantai Xinchao Industry Co Ltd has agreed to spend about 8.3 billion yuan ($1.31 billion) to buy oilfields in the U.S. state of Texas, the company said in a corporate filing late on Saturday. The oilfields, in Howard and Borden counties, will be bought from Tall City Exploration LLC and Plymouth Petroleum LLC, Xinchao said in the filing to the Shanghai Stock Exchange. The transaction has already been approved by the U.S. Treasury’s Committee on Foreign Investment, it added. (Reporting by Ben Blanchard and Meng Meng; Editing by Simon Cameron-Moore )
The world’s biggest oil companies are struggling to generate enough cash to cover their spending and dividends, despite efforts to slash billions of dollars from their budgets in the face of tumbling oil prices. Analysts say they expect the companies to reveal continuing shortfalls when they report earnings this week, after a third quarter in which oil prices fell to their lowest levels since the financial crisis. Brent crude, the global benchmark, averaged roughly $50 a barrel in the third quarter, compared with more than $60 a barrel in the second and around $100 in 2014. The cash crunch underscores the cloudy future facing Exxon, Chevron, Shell and BP amid a 16-month slump in oil prices. After a decade when high oil prices supported megaprojects and steadily escalating payouts to shareholders, the supermajors have slashed spending by more than $30 billion in recent months, laying off workers and delaying […]
Much has been made about the impressive gains in efficiency and productivity in the shale patch, as new drilling techniques squeeze ever more oil and gas out of new wells. But the limits to such an approach are becoming increasingly visible. The U.S. shale revolution is running out of steam. The collapse of oil prices has forced drillers to become more efficient, adding more wells per well pad, drilling longer laterals, adding more sand per frac job, etc. That allowed companies to continue to post gains in output despite using fewer and fewer rigs. However, the efficiency gains may have been illusory, or at best, incremental progress instead of revolutionary change. Rather than huge innovations in drilling performance, companies were likely just trimming down on staff, squeezing suppliers, and drilling in the best spots – perhaps all sensible stuff for companies dealing with shrinking revenues, but nothing to suggest […]
The Noble Discoverer in Everett, Wash., on May 12, 2015. Offshore driller Noble Corp. NE -0.46 % on Friday slashed its dividend by more than half, the latest company to make moves to preserve liquidity amid sharply lower oil and gas prices. The London-based company said it took down its quarterly payout to 15 cents a share from 37.5 cents. The cut is Noble’s first since mid-2012. “We believe the revised dividend appropriately addresses the prevailing industry uncertainty,” said Chief Executive David Williams. “The decision to adjust the dividend and preserve liquidity in an uncertain market is not reflective of our current financial performance,” Mr. Williams said, adding that the company expects to beat expectations when it reports third-quarter results next week. The reduction will cut Noble’s dividend yield to 4.6% from 11.5%, based on a $13.01 share price, which is where the stock was halted before the company […]
Have we peaked? Interesting info graphic put together by Chiltern Thrust Bore LTD. 2 Comments on "Peak Oil Info-Graphic" GregT on Sat, 24th Oct 2015 2:57 am “Peak oil is a concept that was originally devised by M King Hubbert in the 1950s. The basic concept is that once oil production reaches it’s maximum output, a sharp decline will follow causing huge economic problems.” No need to worry folks, no huge economic problems in the foreseeable future. Everything is A OK. Now back to your regularly scheduled programming, and don’t forget that consumption is the key to prosperity.
Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. North Dakota regulators approved a plan on Thursday to give oil producers an extra year to bring a new well online, a change designed to give the energy industry breathing room during the crude price downturn. Oil producers will now have up to two years to hydraulically fracture, or frack, and start producing from a well that has been drilled. Under previous standards, producers had only one year. Each well must still receive individual approval. Nearly 1,000 wells in the state are nearing their one-year deadline and were in danger of being forcibly plugged by regulators. (Reporting by Ernest Scheyder ; Editing by Chizu Nomiyama )
Weatherford plans to cut 3,000 additional jobs by the end of the year. Weatherford International plc plans on cutting an additional 3,000 jobs, the company revealed Wednesday. The oilfield services provider successfully completed its previously announced headcount reduction of 11,000 , according to its 3Q report. Weatherford stated it has now increased its workforce reduction target to 14,000, “with an increased focus on support positions to be completed by year end.” In addition to the job cuts, Weatherford has also closed five of its seven planned manufacturing and service facilities. The company said it will close one additional office by the end of the year and the remaining closure will occur in 2016. Weatherford has closed more than 70 operating facilities in North America through Sept. 30, with plans to close 90 by the end of 2015. Weatherford believes these efforts will “mitigate the effects of the downturn,” but […]
