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Saudi Arabia oil reserves reach record level

In late summer 2015, commercial oil reserves of Saudi Arabia reached 326.6 million barrels, thus setting a new record for the world’s largest oil supplier since 2002. Thus, the level of oil reserves in July amounted to 320.2 million barrels, while oil exports fell from 7.28 million barrels per day in July to 7 million barrels a day in August, Bloomberg says. According to expert Mohamed Ramadi, a decline in oil exports from Saudi Arabia reflects the realities of present-day market. Oil production in Saudi Arabia declined from 10.36 million barrels per day in July to 10.27 million barrels a day in August , Pravda.Ru reports with reference to RIA Novosti. In September, Saudi Arabia reported the production of 10.23 million barrels a day. In June, the country reached its peak in oil production since 1980 with 10.56 million barrels a day. pravda.ru

Posted On : Published By : ASPO-USA
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OPEC Is About to Crush the U.S. Oil Boom

After a year suffering the economic consequences of the oil price slump, OPEC is finally on the cusp of choking off growth in U.S. crude output. The nation’s production is almost back down to the level pumped in November, when the Organization of Petroleum Exporting Countries switched its strategy to focus on battering competitors and reclaiming market share. As the U.S. wilts, demand for OPEC’s crude will grow in 2015, ending two years of retreat, the International Energy Agency estimates. While cratering prices and historic cutbacks in drilling have taken their toll on the U.S., OPEC members have also paid a heavy price. A year of plunging government revenues, growing budget deficits and slumping currencies has left several members grappling with severe economic problems . The fact that the U.S. oil boom kept going for about six months after the group’s November decision also means OPEC has so far […]

Posted On : Published By : Tom Whipple
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U.S. oil output slide looms as shale firms hit productivity wall

An oil pump jack can be seen in Cisco, Texas, August 23, 2015. Stagnating rig productivity shows U.S. shale oil producers are running out of tricks to pump more with less in the face of crashing prices and points to a slide in output that should help rebalance global markets. Over the 16 months of the crude price rout, production from new wells drilled by each rig has risen about 30 percent as companies refined their techniques, idled slower rigs and shifted crews and high-speed rigs to "sweet spots" with the most oil. Such "high-grading" helped shale oil firms push U.S. output to the loftiest levels in decades even as oil tumbled by half to less than $50 a barrel and firms slashed rig fleets by 60 percent. But recent government and private data show output per rig is now flatlining as the industry reaches the limits of what […]

Posted On : Published By : Tom Whipple
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Oil well out of control in North Dakota

Oil is still leaking as Oasis Petroleum works to get well under control after reporting incident to the North Dakota Health Department during the weekend. Photo by David Gaylor/Shutterstock BISMARCK, N.D., Oct. 20 (UPI) — An oil well in western North Dakota is out of control at least three days after a spill was reported, the state Department of Health reported. The Health Department said it was notified of the spill by Oasis Petroleum, which said it lost control of the well Saturday night local time. Bill Suess, a spill manager for the department, was quoted by the Grand Forks Herald as saying about 1,760 barrels of oil were recovered so far from the well site. "It’s a significant leak," he said. There was no statement on the spill from Oasis Petroleum. The Health Department said light sheen was observed on the White Earth River a little less than […]

Posted On : Published By : Tom Whipple
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OPEC has stalled the shale revolution

( John Kemp is a Reuters market analyst. The views expressed are his own) Oct 20 (Reuters) – The resilience of U.S. shale producers has surpassed all expectations as they have wrung extra efficiencies out of their operations and pulled rigs back to the most prolific sections of existing plays. The shale sector’s ability to cut costs and sustain their output in the face of plunging prices has been extraordinary and testament to the entrepreneurial spirit and technical skill of the independent producers. Shale producers are justifiably proud of their ability to survive the perfect storm that has hit their industry since the middle of 2014. But it should not disguise the fact that the collapse in oil prices has paused the shale revolution, with the sector’s focus shifting from growth to survival. The revolution cannot be reversed. Techniques once mastered will not be unlearned. And adversity has forced […]

Posted On : Published By : Tom Whipple
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Daniel Yergin: Where’s all the stimulus from the 50% drop in oil prices?

The fall in oil prices heralds a momentous shift in world energy markets from the BRIC era of emerging markets (Brazil, Russia, India and China) to the Shale Era. An oil tanker sits anchored off the Fos-Lavera oil hub near Marseille, France, Oct. 15. © Reuters Yet there are two continuing puzzles about the price collapse. First, the 50% fall in prices has not been the global economic stimulus that might have been expected. So far, at least, it has not been a Fourth Arrow for the world economy. Is this telling us something about deeper troubles ahead for the world economy? The second puzzle concerns geopolitics. The oil market is usually very sensitive to geopolitics. Geopolitical risk is high now: The Middle East is in crisis. The West’s relations with Russia are the worst they have been since the end of the Cold War; the stand-off in Syria […]

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Operating in a World of $50 Oil

While hopes for a reversal in oil prices may have faded just after mid-August when U.S. crude oil futures slipped to a six-and-a half year low , the battered petroleum industry continues to plod along in its search for ways to steer through these difficult times. Last month, some industry players met in Singapore for the 14th Annual Marine Money Singapore Ship Finance Forum, where there was a discussion on dealing with the impact of oil at $50 a barrel. Rigzone takes a look at the key issues under scrutiny at the forum, including the future direction of oil prices, the impact on the offshore support vessels market and oil consumption in China – the primary driver for global demand growth in recent years. To recap, global oil prices have lost around half of its value from a year ago due mainly to a supply glut, a development exacerbated […]

Posted On : Published By : Tom Whipple
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Canadian Oil Sands Says It Has Had No Other Offers Than Suncor’s

Canadian Oil Sands Ltd. says it hasn’t been approached with any other takeover offers after rejecting Suncor Energy Inc.’s C$4.3 billion ($3.3 billion) hostile bid, though it’s exploring alternatives. Chief Executive Officer Ryan Kubik said there are plenty of parties who might be interested in taking over, partnering or merging with his Calgary-based firm. To date though, Suncor’s offer is the only one on the table, he said. “Nobody’s approached us so far,” Kubik said in an interview at Bloomberg’s office in Toronto on Monday. “There are many parties that would like to own it.” Canadian Oil Sands urged shareholders to reject Suncor’s takeover attempt, accusing the larger rival of undervaluing its business and exploiting undisclosed information about a partnership in making a low-ball offer. Suncor, Canada’s largest crude producer, renewed efforts this month to take over its partner and biggest shareholder in the Syncrude oil-sands joint venture after […]

Posted On : Published By : Tom Whipple
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Halliburton Cuts More Jobs as Fracking Hit Worst in Downturn

Halliburton Co. cut another 2,000 jobs in the past month as the worst oil market slump in decades saps demand for work at the world’s largest provider of fracking services. The Houston-based company said the first quarter of next year may represent the lowest point for its North American profit margin as customers start fresh with new spending budgets for 2016 and tap Halliburton’s pressure-pumping expertise to start new wells. The comments came after the company reported a third-quarter loss of $54 million. "The pumping business in North American is clearly the most stressed segment of the market today, but it’s also the market we know the best," President Jeff Miller told analysts and investors Monday on a conference call. "This is the segment that we expect to rebound the most sharply." Oil has swung between a bear and a bull market in North America this year as the […]

Posted On : Published By : Tom Whipple
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Number of North Dakota oil drilling rigs hold steady

The North Dakota oil rig count held steady at 68 this week, the state’s Department of Mineral Resources reported Monday. Photo by David Gaylor/Shutterstock BISMARCK, N.D., Oct. 19 (UPI) — North Dakota reported Monday that 68 oil rigs are involved in exploration and production in the state, the same figure as last week. Despite the recent stability, the number is down from 190 active drilling rigs on the same date in 2014, when crude oil prices were about 42 percent higher. The count serves as an indicator of the health of the energy sector in North Dakota, the No. 2 oil producing state. North Dakota oil production peaked in December 2014 and has fallen every month since , the state’s Department of Mineral Resources reported last week. World oil prices fell to a six-year low in August, the International Energy Agency reported. The price of North Dakota oil, which […]

Posted On : Published By : Tom Whipple