Category: Shale Oil

URL: http://www.rigzone.com/news/oil_gas/a/136928/Kemp_North_Dakota_Oil_Rigs_Drop_Points_To_US_Output_Decline_After_May The decline in oil drilling in the US should ensure that US production peaks by April or May. John Kemp is a Reuters market analyst. The views expressed are his own LONDON, Jan 26 (Reuters) – The decline in oil drilling that has occurred so far across the United States is probably enough to ensure U.S. production peaks by April or May, though that might not be evident until June or July given delays in publishing production records. If the number of active rigs continues to decline in the next few weeks, which seems likely, it is reasonably likely U.S. oil production will be falling by June or July 2015. In North Dakota, the number of rigs drilling for oil has fallen by almost a quarter in less than four months, according to oil field services company Baker Hughes. Baker Hughes puts the number of active drilling […]

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Hype, Broken Promises, and Shales thumbnail The term shale revolution has been used so much that it almost has no meaning anymore. But were shales ever really the energy panacea promised or merely a self styled hype machine? Would the frenzy in drilling ever have truly taken off if it weren’t for cheap money? These are valid questions which have not been explored adequately because too many investors, journalists and elected officials were caught up in shale mania. But was this ever truly an exercise that would provide long term benefits to American consumers? It is an inarguable fact that shales have produced copious quantities of hydrocarbons in the past few years but this is not really surprising given that the wells, by their very nature, produce the most oil or gas they will ever produce in the first twelve months or so of their lives. So when the […]

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North Dakota Health Department reports release of water used during shale oil production. UPI/Brian Kersey BISMARCK, N.D., Jan. 23 (UPI) — A division of Hess Corp. spilled more than 2,000 barrels of water used during oil production at a site southwest of Tioga, the North Dakota government said. The North Dakota Department of Health said it was notified by the company of the release of so-called source water , which is used during oil production, from an area pipeline. "This water is higher in dissolved solids and minerals than fresh water," the Department of Health said in a Thursday notification. "The responsible party has initiated cleanup." The water was used during a process known as enhanced oil recovery, a technique that involves flow stimulation from steam, gas or chemical injections into the well. There was no statement on public health concerns Analysis last year from Wood Mackenzie finds enhanced […]

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HOUSTON, Jan. 23 01/23/2015 The US drilling rig count fell 43 units to settle at 1,633 rigs working during the week ended Jan. 23, Baker Hughes Inc. reported. That total is the lowest since Aug. 6, 2010, and 144 units fewer compared with this week a year ago. The count has now fallen in 8 consecutive weeks, losing 287 units during that time ( OGJ Online, Dec. 5, 2014 ). Forty-two of the 43 units that went offline this week were land-based, bringing that total to 1,568. Land rigs have plunged 176 units over the last 3 weeks. The other unit to fall was drilling in inland waters, bringing that total to 11. Offshore rigs were unchanged at 54. Oil rigs plunged 49 units to 1,317. Gas rigs gained 6 units to 316. Horizontal drilling rigs lost 24 units to 1,229. Consultancy group Wood Mackenzie Ltd. recently said that, […]

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URL: http://www.rigzone.com/news/oil_gas/a/136910/Wood_Mac_US_Onshore_Well_Count_to_Fall_by_26_in_2015 Oil prices under $50/barrel will results in a decline in North American well counts and rig day rates as operators scale back 2015 spending plans. The U.S. onshore well count will decline by 26 percent, from more than 37,000 in 2014 to an estimated 27,000 in 2015, as the decline in oil prices prompted many operators to cut their 2015 spending plans, according to a recent estimate by Wood Mackenzie. North American drilling and completion expenditures exceeded $140 billion in 2014, but Wood Mackenzie expects operators to commit less than $90 billion to upstream development over the next 12 months. “Such sizeable cuts will have serious implications across the oilfield services sector,” said Wood Mackenzie in a statement. Using its North America Supply Chain Analysis Tool, Wood Mackenzie forecasts that rig day rates will decline by 30 percent, while the rig count will drop from an annual […]

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Rigs targeting U.S. oil slid to the fewest in two years as explorers retreated from North Dakota’s Bakken formation at the fastest pace since the nation’s shale boom took off. The U.S. oil rig count dropped by 49 this week to 1,317, the lowest since Jan. 25, 2013, Baker Hughes Inc. (BHI) said on its website Friday. The total count fell by 43 to 1,633. North Dakota, home of the Bakken play that doubled its crude output within two years, lost the most rigs since at least 2008 with prices under $50 a barrel. Oil rigs have dropped by an unprecedented 258 in seven weeks, threatening to end the surge in domestic oil production that has turned the U.S. into the world’s largest fuel exporter. The booming production, out of shale formations across the country, has OPEC and other foreign suppliers fighting to preserve their market share. Eight hundred […]

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Produced water release in North Dakota among the state’s largest. UPI/Shutterstock/Calin Tatu WILLISTON, N.D., Jan. 22 (UPI) — A produced water release from a North Dakota oil site presents no public health risk, a company said, though the 70,000 barrels spilled is among the largest. Summit Midstream confirmed a release from a four-inch pipeline in Williston, N.D., at the heart of the state’s oil boom. The company said Wednesday around 70,000 barrels of produced water were released. Since remediation efforts began, as much as 65,000 barrels of water were pulled from the region’s Blacktail Creek, though most of that was in the form of freshwater. "We will continue to work tirelessly to see that the cleanup is completed and any issues in the surrounding environment are properly addressed, and will provide stakeholders with updates as developments warrant," Chief Operating Officer Rene Casabadan said in a statement emailed to UPI. […]

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Budget Cuts and Layoffs Mark Crisis in Region Rig Count Sharply Declines in Bakken The Bakken-Three Forks rig count decreased sharply over the past month, ending last week with a total of 163 rigs across our coverage area. This represents a drop of seven from last week and a startling 17 from only one month ago, according to the weekly report from Baker Hughes. WTI crude prices have decreased by ~$9.59 since December 19th, trading at $55.99/bbl on Monday morning. As oil prices continue to drop, reports of deeper budget cuts and layoffs are now daily news. Related: Energy Giants Announce Layoffs Related: Halcón Resources Reduces 2015 Budget The Bakken isn’t the only region to see a decline. The U.S. rig count decreased to 1,676 rigs running by the end of last week with a total of 310 rigs targeting natural gas (down 28 from December) and 1,366 targeting […]

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HOUSTON, Jan. 21 01/21/2015 Australia’s BHP Billiton will reduce its US onshore rig presence from 26 to 16 by July in response to lower oil prices . Andrew Mackenzie, BHP’s chief executive officer, explained in the company’s operational review for the half-year ended Dec. 31 that it will instead focus on improvements in drilling and completions efficiency. “Our ongoing shale investment program will remain focused on our liquids-rich Black Hawk acreage [in the Eagle Ford shale],” Mackenzie said. “However, we will keep this activity under review and make further changes if we believe deferring development will create more value than near-term production.” The company in 2011 entered the Eagle Ford—where a majority of the company’s US onshore rigs currently reside—in its $12.1-billion merger with Petrohawk Energy. The move was part of a $20-billion investment in US shale by a company whose expertise at the time was primarily in deepwater […]

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