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Tony Hayward: Sanctions against Russia could spur $150 oil

Tony Hayward: Sanctions against Russia could spur $150 oil Western sanctions against Russia, coupled with ongoing political instability in Libya and the advance of ISIS militants in Iraq, could leave the global oil supply exposed and push up oil prices to $150 per barrel, former BP chief Tony Hayward has warned. The former CEO of BP and now chairman of Glencore Xstrata said the recent boom in US shale production has painted an unrealistic image of the world’s global oil supply, and created a false sense in energy security. “The world has been lulled into a false sense of security because of what’s going on in the US,” Hayward said in an interview with the Financial Times . The hydraulic fracturing boom in the US began in 2008 and has increased US crude output by 60 percent, but Hayward warned it could wane. “When US supply peaks, where will […]

Posted On : Published By : Tom Whipple
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Fracking Gives U.S. Energy Boom Plenty of Room to Run

Cabot Oil & Gas had the most productive gas well in the U.S. last year, in Susquehanna County, Pa., yielding 30.3 million cubic feet a day Getty Images Skeptics of the U.S. energy boom say it can’t last much longer because it requires drilling an ever-increasing number of wells. But the boom already has lasted longer than anyone would have imagined just a decade ago and has more room to run. That’s because oil and natural-gas wells have become more productive—an unrecognized but potent trend that should keep the fuels flowing. Back in 2003, the energy industry had just begun combining the techniques of drilling horizontal bores through shale and then using hydraulic fracturing—shooting tons of water, chemicals and sand into the rocks. Four Sevens Oil Co. drilled the best gas well that year, in the Barnett Shale, just north of Fort Worth, Texas, according to Drillinginfo, an industry […]

Posted On : Published By : Tom Whipple
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Bakken and N.D. Update for July

North Dakota has released their Bakken and North Dakota production numbers for July. Bakken Barrels Per Day Bakken production was up 19,456 bpd while all North Dakota production was up 18,134 barrels per day. This means that North Dakota production outside the Bakken fell by 1,322 bpd or a little over 2%. Bakken Wells Bakken wells producing increased by 195 to 8,065. North Dakota wells increased by the same amount to 10,952 so non-Bakken wells were unchanged at 2,860. Bakken bpd per well Bakken bpd per well fell by one to 130. All North Dakota bpd per well was unchanged at 102 bpd per well and wells outside the Bakken were unchanged at 22 bpd per well. Bakken Change The last 12 months has saw an average per month increase in production of 19,708 bpd. That works out to be 236,496 bpd increase over the last 12 months. I […]

Posted On : Published By : Tom Whipple
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N.D. Oil Output Jumps Even As Flaring Rule Changes Loom

Hess To Form MLP For North Dakota Oil, Gas Transport Assets Sept 12 (Reuters) – North Dakota’s daily oil production jumped 5 percent in July to an all-time high, though the number was lower than expected as producers worked to meet aggressive flaring-reduction targets, state regulators said on Friday. The production numbers, which have been steadily rising for years, highlight the massive investments Hess Corp, Whiting Petroleum Corp and other companies are making to develop the state’s oil-rich Bakken and Three Forks shale formations and others. Despite the positive production data, shares of top North Dakota oil producers fell with the broader market. The investments have brought thousands of new workers to North Dakota, as well as billions in infrastructure and real estate investment, making the state the fastest-growing economy in the United States. North Dakota’s oil wells produced 34.4 million barrels in July, up from 32.8 million barrels […]

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Bakken Providing Jobs, Economic Growth for Williston, ND

In a scene that is being played out in a number of areas across the country, residents of Williston, North Dakota are learning first-hand what a robust energy industry can do for a municipality. In fact, as economic development success stories go, few can top that of Williston, which has been going through a growth spurt in recent years “of historic proportions” amid prodigious oil and gas production in the nearby Bakken Shale formation, Caitlyn Beley, the Communications Director at the Williston Economic Development office, told Rigzone. “There’s no turning back now,” Beley said. “This is the new American dream.” Oil and gas production in the Bakken Shale is not just a part of the reason for Williston’s growth – it is the reason, Beley noted. In addition to the new development, Williston’s airport just added a direct flight from Houston, which is expected to further add to Williston’s […]

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Oil Rigs Surge to Record on Drilling in Bakken to Permian

Rigs targeting oil in the U.S. surged to a record this week as producers accelerated drilling in some of the nation’s biggest crude plays, from North Dakota ’s Bakken formation to the Permian Basin of Texas and New Mexico . Oil rigs rose by eight to 1,592, the highest count since Baker Hughes Inc. (BHI) separated its oil and gas rig counts in 1987, data posted on the company’s website show. The Permian Basin of Texas and New Mexico added the most, rising by four to 561. North Dakota’s Williston Basin, home of the Bakken, climbed to the highest level since January 2013. The total energy rig count has almost doubled from five years ago as producers use horizontal drilling and hydraulic fracturing to draw record volumes of oil and gas out of shale formations across the middle of the country. The boom has raised domestic crude production to […]

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Statoil expanding project that captures flare gas in North Dakota

09/12/2014 Statoil ASA says a pilot project that captures flare gas in North Dakota is expanding to power six drilling rigs and a hydraulic fracturing fleet. A joint venture of GE and Ferus Natural Gas Fuels provided Statoil with the Last Mile Fueling Solution for an eight-month pilot. Statoil said expansion is expected to provide environmental, cost-saving, and logistics solutions for the company’s Bakken operations. The company anticipates commercial expansion will increase its flare gas capture to 3-5 MMcfd by yearend. “By using this captured natural gas in place of diesel in our drilling and hydraulic fracturing operations, we are further reducing emissions and costs,” said Lance Langford, Statoil vice-president for Bakken development and production. “This is both good for the bottom line and the climate.” Natural gas that Statoil captures and is not able to use in its own operations will be compressed and sold. Statoil said emerging […]

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Top boss at Bakken player resigns

OKLAHOMA CITY, Sept. 12 (UPI) — The head of Continental Resources, the largest player in North Dakota shale, is leaving to pursue his options elsewhere, the company said. Continental announced President and Chief Operating Officer Rick Bott had resigned "to pursue other options." When releasing its second quarter results in August, the company said net production from the Bakken field, spread out over much of North Dakota and Montana, totaled 108,573 barrels of oil equivalent per day during the second quarter, a 23 percent increase year-on-year. The company boasted that cumulative oil production from the Bakken reserve reached the 1 billion barrel mark at some point during the first quarter. Quarterly profits for the second quarter, however, were down 68 percent. Chairman and Chief Executive Office Harold Hamm said the company is ahead of its five-year plan to triple production by 2017, drawing on Bakken and its shale reserves […]

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Minnesota balks on Enbridge oil pipeline

ST. PAUL, Minn., Sept. 12 (UPI) — Sandpiper would stretch 616 miles from Tioga, N.D., through Minnesota and to an Enbridge terminal in Superior, Wisc. It would then transfer oil to other pipelines for delivery to the U.S. and Canadian refinery markets. State regulators in a 3-2 decision called on Enbridge to study the environmental issues surrounding six alternative routes through the state proposed by outside groups. State Commissioner Dan Lipschultz said Minnesota regulators need to take their time in approving a pipeline designed to carry crude oil from the Bakken reserve area in North Dakota. "I don’t want to rush to a thumbs down any more than I want to rush to a thumbs up," he said Thursday . "I want to get it right." Enbridge in June received backing from state legislators in North Dakota to build Sandpiper . Enbridge attorney Christina Brusven said each setback is […]

Posted On : Published By : Tom Whipple
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IEA: US Shale Squeezing Out Saudi Oil Imports, Boosting Gasoline Exports

Hess To Form MLP For North Dakota Oil, Gas Transport Assets LONDON, Sept 11 (Reuters) – North America’s shale oil boom has started to squeeze Saudi Arabian oil out of the U.S. market in the same way it did with West African crude, the West’s energy agency said on Thursday. The International Energy Agency also predicted a flood of U.S. gasoline exports to world market. "In recent years, surging light tight oil production has backed out U.S. imports of West African crude, which are now moving to Asia," the IEA said in a monthly report. "Saudi exports seem to be showing the beginning of a similar shift," it said, estimating that Saudi exports have likely run below 7 million barrels per day for the last four months, their lowest level since September 2011. "Exports to the U.S. led the drop amid rising Saudi domestic demand for crude burn and […]

Posted On : Published By : Tom Whipple