Saturday, April 26, 2025

Drilling News

Baker Hughes reports that US drillers added oil and gas rigs in the US for a second consecutive week.

Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the second consecutive week for the first since February. The number of oil and gas drilling rigs, a good indicator of future production, increased by two in the week ending April 25. Baker Hughes reported that despite this week's increase in rigs, the total count is still 26 or 4% lower than this time last year. Baker Hughes reported that oil rigs grew by two this week to 483 while gas rigs grew by one to 98. Drillers reduced the number of operating rigs by five in April. This is the second consecutive month that the total has decreased.

Elliott, an activist investor, calls for a change in BP's strategy chief and organizational structure

A source familiar with this situation on Friday said that activist investor Elliott Investment Management is pushing oil major BP's strategy chief to be replaced and its structure changed to separate its upstream and downstream divisions to improve accountability. Elliott has a small stake in BP of a little over 5%. The strategy, sustainability, and ventures division of BP is headed by Giulia Chiarchia. She was a key architect behind the company's ill fated focus on renewables during the tenure of previous CEO Bernard Looney. Chierchia, who joined BP in 2020 from McKinsey & Company consultancy, rose quickly to the position of strategy chief.

US wants to increase offshore oil drilling through easing of pressure rules

The U.S. Interior Department announced on Thursday that it had implemented new guidelines regarding pressure differentials allowed in certain types of oil drilling, in part of Gulf of Mexico. The department expects the changes to boost U.S. output of oil. The Energy Dominance Council, led by Doug Burgum, Interior Secretary to President Donald Trump, is seeking ways to reduce costs for oil and natural gas producers, lower regulations, and increase oil production, which was at record levels during the tenure of former President Joe Biden. Operators working in the Wilcox formation…

African energy exploration company Rhino Resources discovers light oil offshore Namibia

Namibia got a boost Thursday after Rhino Resources found "high-quality" light oil at its latest well. U.S. oil company Chevron also announced that it is considering a drilling campaign for 2026 or 2027. The southern African nation, a global hotspot for exploration, aims to produce its oil by the end of the decade, following a series of recent discoveries by Shell, TotalEnergies, and Galp Energia. The African energy explorer Rhino Resource found light oil in Capricornus 1X, its second successful exploration, which was drilled off the coast of Namibia in the prolific Orange Basin.

Trump's emergency move is aimed at cutting approval time for energy projects from 28 days to 28

The Trump administration announced on Wednesday that it would implement a process of emergency permitting for energy and mining on federal land, cutting approval times from months or even years down to just 28 days. The U.S. Department of the Interior's move comes in response to the President Donald Trump declaration of a national energy emergency, which he issued on his first official day of office. This was to expedite the permitting process in an attempt to boost the domestic energy supply, lower fuel prices, and strengthen national security. The DOI issued a press release in which it said that the emergency procedures will apply to fossil fuels such as oil…

Enverus: Weak oil prices and limited shale acres will impact energy M&A by 2025

Enverus, an analytics firm, said that the U.S. Upstream Oil and Gas M&A Market is bracing itself for the most challenging conditions in the past decade, as oil prices plummet and prime acreage disappears, despite the fact that dealmaking surged last quarter, making it the second best start to the year ever, despite the fact that the number of deals jumped to the highest level since 2018. After a string of record-breaking takeovers of oil and gas companies in recent years that culminated with a $192 billion deal in 2023, the expected decline in mergers and purchases follows.

Baker Hughes' first-quarter profits beat expectations on the back of strong demand for natural Gas Technology

Baker Hughes, a U.S. oilfield technologies firm, beat Wall Street expectations for the first-quarter profits on Tuesday thanks to a robust demand for natural Gas technology. The positive results are coming as oilfield service firms prepare for the impact of the tariffs introduced by the President Trump. These are expected to increase costs and disrupt sourcing of materials that are used in equipment such as drill pipes and artificial lifting systems. As Big Tech invests billions in AI, demand for electricity has increased to power data centres. This demand for LNG is also increasing.

Elliott presses BP to boost free cash flow by 40% via spending reductions, FT reports

The Financial Times reported that Elliott Management, an activist investor, has urged BP a 40% increase in its free cash flow through spending cuts. Elliott wants BP to focus on achieving a $20 billion annual free cash flow target by 2027 instead of growing its oil business, according to a report citing sources familiar with the issue. BP has worked to increase its share price, which has lagged behind rivals Shell and Exxon in recent years. According to the report, the hedge fund suggests that BP sell its solar and offshore-wind power businesses. It asserts that it can reduce its spending on oil and gas operations because of the sufficient future oil reserves.

Oil industry sources claim that Central Africa's new FX Initiative falls short of its target.

Two oil industry sources said that six Central African nations who were expecting to receive billions in foreign exchange from funds set aside for environmental restoration by oil companies may actually see less than 500 million dollars by the April 30 deadline. Bank of Central African States, the central bank of Cameroon and Gabon, Equatorial Guinea Central African Republic, Republic of Congo, Chad, Gabon and Chad, introduced rules in 2018 governing these funds that are mostly held by foreign banks. The funds in the BEAC-controlled accounts will be used to replenish the hard currency reserves of the six countries and to address their economic vulnerability.

Shell completes survey of Venezuelan gas field as winding down of license approaches

Shell, the oil and gas company, plans to finish a marine survey of the offshore Dragon gas field in Venezuela before the May deadline set by the United States to close all energy licenses in the country. According to LSEG vessel tracking data, the Colombian-flagged Dona Jose II survey vessel arrived in Venezuela sanctioned by the U.S. this month to collect data for Shell and Trinidad’s National Gas Company. Two sources said that the exploration work will be completed within the next few weeks and allow the company determine drilling locations as well as pipeline design, should Washington allow the development of the project, which is planned to supply gas to Trinidad.

Turkey looks to regional energy expansion as Black Sea Gas output increases

Alparslan bayraktar, the Energy Minister, said that the daily production of natural gas in Turkey's flagship Sakarya Field, located on the Black Sea, has reached 9.5 million cubic meters. The country is ramping up its energy ambitions at home as well as abroad. Bayraktar, a Turkish minister of energy, told reporters in Giresun province that the country aims to sign an agreement by the end of the month allowing TPAO to explore a Black Sea bloc off the coasts of Bulgaria and a foreign partner. "We're about to finalize an agreement in the Bulgarian Economic Zone." He said that TPAO will likely sign a contract with a foreign firm for a bloc in Bulgarian waters next month.

Trump Administration kicks off plan to expand offshore drilling

The U.S. The U.S. Donald Trump ordered the government to find ways to increase U.S. oil production. He argued that previous administrations had curtailed drilling unnecessarily to combat climate changes. He also rescinded the efforts of former president Joe Biden to stop oil drilling in the Arctic, and large areas along the U.S. Atlantic Coast and Pacific Coast. In a recent press release, Interior Secretary Doug Burgum stated that "Under the leadership of President Donald J. Interior announced that it would begin the development of the five-year planning process by opening a 45-day period for public comments.

Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 4 weeks.

Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since four weeks. The number of oil and gas rigs, a good indicator of future production, increased by two in the week ending April 17 to 585. Baker Hughes published the rig counts report one day earlier on Thursday, due to Good Friday. Baker Hughes reported that despite this week's increase in rigs the total count is still 34 rigs or 5% lower than this time last year. Baker Hughes reported that oil rigs increased by one this week to 481 while gas rigs increased by one to 98.

BP's leadership is facing shareholder votes amid Elliott campaign and climate ire

BP's Board is up for reelection on Thursday at its annual meeting. The group will be facing activist shareholder Elliott Management, as well as climate-focused investors that have asked for a vote to remove Chairman Helge Lind. BP's stock, which has underperformed rivals Shell and Exxon in recent months, is under pressure to increase its share price. This comes after U.S. hedge funds Elliott Management have built up a stake of nearly 5%. CEO Murray Auchincloss, and Chairman Lund, supported the 2020 plan of former chief Bernard Looney to cut BP's output of oil and gas by 40% in this decade and heavily invest in renewables.

Elliott builds $1.5-billion stake in Hewlett Packard Enterprise

A person with knowledge of the matter confirmed on Tuesday that hedge fund Elliott Investment Management had built up a stake in Hewlett Packard Enterprise worth more than $1.5 Billion. Elliott, one the world's largest activist investors, is now among the biggest investors in the company and plans to engage the management, according to the person who wasn't allowed to discuss the campaign publically. It was not immediately clear what Elliott might be trying to convince HPE, a company valued at 20 billion dollars, to do. Bloomberg was the first to report on Elliott's campaign. This boosted HPE's shares by nearly 5%, to $14.98.

India auctions three coal bed methane block

Pallavi Govil, the Directorate General of Hydrocarbons' upstream regulator, announced Tuesday that India had launched an auction of three blocks of coal bed methane and 55 small discovered areas for exploration and production. Two coal bed methane blocks are located in West Bengal, and one is in Gujarat. Govil added that India has also signed contracts for oil and natural gas blocks offered in a licensing round held earlier this year. The third-largest oil consumer in the world is looking to increase its domestic output. Over 80% of the country's oil requirements of over 5 million barrels a day are imported.

Venture Global LNG starts commercial operations at Calcasieu Pass plant

Venture Global LNG announced on Tuesday that it has started commercial operations at the Calcasieu Pass facility in Louisiana. This comes more than three year after the company produced its first liquefied gas. The move to commercial operations means the Arlington-headquartered company has brought an end to the extended commission of the plant which resulted in its customers taking legal action to try and force it to provide them with their contracted cargoes. Many LNG plants take months to commission a plant or ensure that its systems work as intended. Calcasieu Pass took three years to commission, or ensure that the plant's systems are working as designed.

TotalEnergies expects hydrocarbon production to be at the top of its guidance range for Q1

In a trading update, TotalEnergies said that it expects hydrocarbon output to be at the upper end of its range for the first three months. It said that the hydrocarbon production for the first quarter 2025 will be between 2.5 and 2.55 millions barrels of oil-equivalent per day (Mboe/d), an increase of 4% on a year-on-year. "Exploration-Production results should reflect this growth in production and the slightly more favourable price environment than in the fourth quarter of 2024," Total added. Total's European refinery margin was $29.4 per ton, a slight increase from $25.9 per ton in the previous quarter.

BP discovers oil off US Gulf Coast

BP announced on Monday that it had made an oil find at the Far South Field in the U.S. Gulf of Mexico. The energy giant is seeking to increase production as part of a new strategy, which was announced earlier this summer. Green Canyon Block 584 is located about 120 miles (203.12 km) from the coast of Louisiana. The initial well as well as a sidetrack both encountered oil. The company stated that preliminary data indicated a potential commercial volume of gas and oil. The company also announced that it would increase its output in the Gulf of Mexico by 400,000 barrels of equivalent oil per day by 2030.

BP warns about lower production in the first quarter and weak gas sales

Energy group BP said that it expects the first-quarter production of oil and gas to be lower than in the previous quarter. Lower gas output in Egypt and Trinidad and asset sales will offset gains in oil. The trading update provides an early look at BP's performance in its first quarter, as the company faces investor pressure on capital discipline, share repurchases and energy transition. This scrutiny has increased since activist investor Elliott Management purchased a stake. BP expects its earnings in the oil production and operation segment to remain roughly flat compared to the previous quarter. This is due to the price lags experienced in the Gulf of Mexico, and in the UAE.

Marine Technology ENews subscription

World Energy News is the global authority on the international energy industry, delivered to your Email two times per week.

Subscribe to World Energy News Alerts.