Category: Shale Oil

(Bloomberg) — The biggest, fastest-growing oil producer in the U.S. said it plans to halt output growth this year, delivering a signal that shale companies are beginning to do what it takes to reduce oversupplies. EOG Resources Inc., which has boosted its oil production by almost 50 percent annually for the past five years, is slashing spending 40 percent and will drill half the wells it did in 2014. The Houston-based company fell more than 6 percent in after-hours trading as it reported fourth-quarter profit Wednesday that missed expectations. The company joins Apache Corp. in its plan to pump about the same volume of oil as last year. The cutbacks are a sign that shale producers can slow down a lot more quickly than forecasters are expecting, said Michael Scialla, a Denver-based analyst at Stifel Nicolaus & Co. “EOG is viewed as the premier company in shale development, and […]

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Despite declining rig counts across the country, oil production remains at record levels and is currently exceeding demand.  According to the Energy Information Administration (EIA), US oil production hit a Continue Reading

HOUSTON, Feb. 18 02/18/2015 Magnum Hunter Resources Corp. , Houston, plans a $100 million upstream capital expenditure budget for 2015, down from the $400 million the company planned for 2014. Allocation of $70 million was approved for its Utica and Marcellus shale exploration and development drilling program in Ohio and West Virginia, $10 million for its properties in the Williston basin in North Dakota, and $20 million for leasehold acreage acquisitions in the Utica and Marcellus. Magnum Hunter plans to further delineate its acreage positions in Monroe, Noble, and Washington counties in Ohio, and in Tyler and Ritchie counties in West Virginia. During the year, the company plans to bring on production three net horizontal wells in the Marcellus and eight net horizontal wells in the Utica. A number of these wells have already been drilled and are in various stages of completion, meaning capital for these projects was […]

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Feb 18 (Reuters) – Marathon Oil Corp on Wednesday cut its 2015 budget by another 20 percent to $3.5 billion and said its fourth-quarter profit rose, boosted by a gain related to the sale of oil and gas properties in Angola and Norway. Profit in the quarter was $926 million, or $1.37 per share, compared with $375 million, or 54 cents in the year-ago period. Marathon, which previously said it was slashing 2015 spending about 20 percent in December, said it would make a second budget cut of another 20 percent. The company said its output, excluding Libya, would rise 5-7 percent this year. (Reporting by Anna Driver; Editing by Terry Wade) WHAT DO YOU THINK?

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URL: http://www.rigzone.com/news/oil_gas/a/137267/Study_Oil_Price_Downturn_Creates_Need_for_Cost_Culture_in_Industry Companies across all sectors of the oil and gas industry will need to create a "cost culture" to survive the recent downturn in oil prices, according to a study by AlixPartners. Companies across all sectors of the oil, gas and chemicals industry will need to better plan and manage projects to ensure their survival during the recent downturn in oil prices, according to a recent study by global business advisory firms AlixPartners. Oil and gas companies not only need to improve their ability to plan and manage projects, but create a “cost culture” inside of their companies. Only 30 percent of respondents in a study of 250 high-level industry executives across the world said their companies had explicit return-on-capital targets for projects before the oil price collapse. Perhaps most surprising is that 12 percent of respondents believe their companies are any better than competitors at project execution, […]

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$3 Million Deal Moves Company into Bakken Contenental Resources CEO, Harold Hamm Kinder Morgan announced last week that it finalized the acquisition of Hiland Partners, a midstream firm founded by Harold Hamm, CEO of Continental Resources. The deal, reported at $3 billion, includes assuming almost $1 billion in debt. Hiland primarily serves production from the Bakken Formation in North Dakota and Montana and by operating crude oil gathering/transportation pipelines and gas gathering/processing systems including roughly 1,225 miles of pipeline. Company officials anticipate retaining nearly all of Hiland’s approximately 430 employees. “We are delighted to establish a substantial midstream footprint in one of the most prolific oil producing basins in the United States,” said KMI Chairman and CEO Richard D. Kinder. “Hiland’s systems serve some of the Bakken’s largest and most successful producers, including Continental. We look forward to continuing to provide high quality midstream services to these producers and […]

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URL: http://www.rigzone.com/news/oil_gas/a/137249/Thanks_to_Shale_Production_Permian_is_the_Economic_Gift_That_Keeps_Giving Even with the recent oil price decline, shale energy is helping spur economic opportunity throughout the Texas. This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone. Over the past few years, two of the fastest-growing cities in the U.S. are Midland and Odessa, a pair of communities separated by a mere 20 miles of interstate roadway deep in the heart of Texas. These metropolises have not only seen their populations swell to previously unforeseen numbers, but Midland and Odessa also rank first and second, respectively, in terms of economic growth nationwide. The fact that these two areas have seen this type of expansion is no accident. Growing a city is like growing a business, and growing a business is all about location, location, location. Midland and Odessa have this advantage, as both sit atop the Permian Basin, one […]

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Nolan 1 Nolan Disclamer Nolan 2 Nolan 3 Nolan 4 Nolan 5 Nolan 7 Nolan 9 Nolan 10 Nolan 11 Nolan 13 Nolan 15 Nolan 16 Nolan 17 Nolan 18 Nolan 19 Nolan 20 Nolan 21 Nolan 22 Nolan 23 Nolan 24 Nolan 25 Nolan 26 Nolan 27 Nolan 28 Nolan 29 Nolan 30 Nolan 32 Nolan 33 Nolan 34 Nolan 35 Nolan 36 Nolan 37 Nolan 38 Nolan 39 Nolan 40 Nolan 41 Nolan 42 Nolan 43 Nolan 44 Nolan 45 Nolan 47 Nolan 48 Nolan 49 Nolan 50 Nolan 51 Hi Tom, Keep in mind this is oil production per rig. Two things happen, as the wells are drilled to hold the lease, rigs need to be moved a lot which makes the rig less productive (a lot of time is spent moving in and putting the rig up (MIRU) and then taking the rig down and […]

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The number of rigs in service in North Dakota hit low-water mark in response to weak market for crude oil. (UPI/Shutterstock/ekina) Though December oil production was at an all-time high, rig activity in North Dakota is on the decline, state data released Monday show. The North Dakota Industrial Commission reported 137 active drilling rigs in service in the state as of Monday, a 26 percent decline from the same date in 2014 and 31.5 percent less than the historic peak reached in 2012. The rig count for Monday is the lowest in five years. Oil prices have declined to the point that most energy companies have enacted staff reductions and cut back on spending plans for exploration and production for 2015. The slump in oil price is a reflection of a market skewed toward the supply side because of production from states rich in shale reserves, like Texas and […]

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