Samson Resources Corp., an oil and natural gas producer controlled by private equity giant KKR & Co., warned investors that bankruptcy may be its best option as collapsing crude prices Continue Reading
The press has been all abuzz the past few weeks speculating on what the drop in oil prices will mean for U.S. shale oil (tight oil) production. Pundits have been falling over themselves quoting various estimates of the breakeven cost of production in this play or that, and rushing to be the first to declare a peak in the Bakken, Eagle Ford, Niobrara or wherever. The Baker-Hughes rig count, which comes out every Friday, has become a must-read for people who probably had never heard of it a few months ago. Even the U.S. Energy Information Administration (EIA), based on estimates, suggests production is declining in three big shale oil plays. The industry, on the other hand, has been more circumspect. They point to productivity gains being made in drilling and completion technology that lower costs, and suggest they are developing a backlog (aka “fracklog” ) of wells that […]
In November 2013, Austin Holland, Oklahoma’s state seismologist, got a request that made him nervous. It was from David Boren, president of the University of Oklahoma, which houses the Oklahoma Geological Survey where Holland works. Boren, a former U.S. senator, asked Holland to his office for coffee with Harold Hamm, the billionaire founder of Continental Resources, one of Oklahoma’s largest oil and gas operators. Boren sits on the board of Continental, and Hamm is a big donor to the university, giving $20 million in 2011 for a new diabetes center. Says Holland: “It was just a little bit intimidating.” Holland had been studying possible links between a rise in seismic activity in Oklahoma and the rapid increase in oil and gas production, the state’s largest industry. During the meeting, Hamm requested that Holland be careful when publicly discussing the possible connection between oil and gas operations and a big […]
New Regulations For Fracking on Public Lands The Bakken-Three Forks rig count remained flat at 97 rigs running across our coverage area by midday Friday. In recent Bakken news, the Bureau of Land Management (BLM) finalized new rules on that will regulate hydraulic oil and gas fracturing on public and tribal lands. The ruling could potentially impact more than 90,000 oil and gas wells and set a precedent for future regulations. Read more: New Fracking Rules for Public Lands The U.S. rig count fell another 21 to 1048 rigs running as of today. A total of 233 rigs were targeting natural gas (down nine from the previous week) and 814 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 97 rigs are running in the Williston Basin across MT, ND, and SD. 96 are […]
Halliburton Closing Minot Facility Beginning April 1st, Halliburton will no longer have a presence in Minot, North Dakota. A spokesperson confirmed Tuesday that the company will suspend operations and close the facility, transferring employees to their Williston and Dickinson locations. This is the latest in a string of announcements from Halliburton about their efforts to streamline operations in the face of the current crude pricing downturn. Earlier this year the company reported worldwide layoffs of 6,500 people followed by an announcement that they would close their facility in Regina, Saskatchewan in March. Related: Energy Giants Announce Layoffs Spokesperson Susie McMichae said that “The company continue to make adjustments to its workforce based on current business conditions. We value every employee we have, but unfortunately we are faced with the difficult reality that reductions are necessary to worth through this challenging market environment,” said McMichael.
PORTLAND, Maine, March 26 (Reuters) – Lawmakers in New Brunswick voted on Thursday to prohibit fracking in the eastern Canadian province, committing to study the controversial method of extracting oil and gas for one year before reconsidering the ban in 2016. The province’s Liberal-led government said it will require five conditions be met before the moratorium is lifted. These include beefed-up environmental and health regulations, a plan for waste water disposal, consultations with aboriginal groups, a royalty structure, and the establishment of a "social license," which is the approval by local communities and stakeholders. "It is responsible and prudent to do our due diligence and get more information regarding hydraulic fracturing," said Energy and Mines Minister Donald Arseneault. The province is the latest of several in eastern Canada, including Quebec, Labrador and Newfoundland, and Nova Scotia, to stop companies from fracking while they study its impact. New Brunswick is […]
ENLARGE A pump jack near Williston, N.D. The oil slump has created opportunities for lawyers and bankers. Photo: Daniel Acker/Bloomberg News The ranks of financially stressed companies have swelled to a 4½-year high as the sharp drop in oil prices batters energy companies. The number of companies with the worst below-investment-grade debt ratings rose to 184 in February, the highest count since November 2010, and remained at that level in March, according to Moody’s Investors Service. That is a 16% increase over March 2014. The 25 oil-and-gas and oil-services companies listed accounted for 13.6% of the total this month, their highest share ever. Moody’s tally of stressed companies includes only U.S. nonfinancial firms rated B3 with a negative outlook for future ratings changes or lower. The B3 rating is six notches into junk territory. “If this trend increases, we might see more defaults in the energy sector,” said Julia […]
WILLISTON, N.D., March 23 (Reuters) – Business and community leaders in North Dakota’s western oil patch have launched an aggressive campaign to convince more manufacturers to set up shop locally, part of a push to expand the area’s economy beyond crude production and slash costs. The effort, which was launched on Wednesday at a conference in Williston, capital of the state’s oil industry, comes as crude prices have plunged more than 60 percent since last summer, threatening the economy of a region overly reliant on one industry – pumping of oil out the ground. Industry and community leaders say diversification is crucial for not only the state’s economy, but also for oil producers who have long complained of excessive costs for pump repairs, valve parts and myriad other components and services. "We’re just asking for a quality product at a reasonable price," Dave Ruffie, a production foreman with Continental […]
Harold Hamm of Continental Resources Continental Resources strengthened its position in North Dakota by winning the right to drill on an additional 160 acres located near the Fort Berthold Indian Reservation. Continental’s Harold Hamm spent 2.3 million for the privilege at a state land auction last Friday, beating out the competition in the last 30 seconds of bidding. The funds from this sale are earmarked for educational uses around the state. Low oil prices have caused companies to reduce spending for 2015 and order to wait out the pricing situation including EOG , Occidental Petroleum and ConocoPhillips . Even as Continental announced it would slash its budget by 48% , CEO Harold Hamm remained publicly optimistic about his company’s ability to navigate the rough waters. Hamm commented that “We concluded 2014 with a strong fourth quarter performance, capping off another year of exceptional production and proved reserves growth (…) We believe that our […]
ENLARGE A Whiting Petroleum pump jack near Bainville, Mont. Whiting on Tuesday priced an offering of 35 million shares at $30 a piece. Photo: Associated Press The most anticipated energy deal of the year is off the table. Eyes have been on Whiting Petroleum Corp., the biggest crude producer in North Dakota, for the past month as the debt-laden company reportedly explored refuge from plunging oil prices in the arms of a buyer . But Instead, Whiting said Tuesday that it would issue more equity, diluting shareholders’ stock, and take on more debt. “We are currently exploring asset sales of noncore properties. We are not, however, pursuing any significant strategic transaction at this time,” the company said in a filing to the Securities and Exchange Commission. A takeover of Whiting would have set a benchmark value for U.S. oil producers as crude continues to trade roughly 50% lower than […]
