Oil producer APA Corp will sell Permian assets at $950 mln
APA Corp, a U.S. oil-and-gas producer, announced on Tuesday that it will sell its non-core Permian drilling properties for $950 million to an unnamed buyer as part of its efforts to reduce debt. Energy companies are rushing to increase their oil and natural gas drilling inventory, particularly in the Permian Basin, which is the largest shale formation in the United States. In an attempt to reduce debt and streamline operations, companies have also been forced to sell assets. Occidental Petroleum announced earlier this year that it would sell certain assets to Permian Resources.
US DOE Directs $30 Mln to Small Oil, Gas Projects
Six small U.S. oil and natural gas drilling projects will receive about $30 million in federal funding for research and development to help achieve President Donald Trump's policy of boosting output of fossil fuels, the Energy Department (DOE) said on Wednesday. The projects, selected by the DOE under the direction of Congress, are in what is known as unconventional shale development. They currently produce less than 50,000 barrels per day each. Unconventional oil and gas production uses advanced techniques such as hydraulic fracturing, or fracking, and horizontal drilling to reach pockets of resources that are trapped by rock and sand formations.
FERC Seeks Delay of Coal, Nuclear Rule
The new chairman of the Federal Energy Regulatory Commission late on Thursday requested a 30-day delay on a decision on a plan promoted by Energy Secretary Rick Perry to subsidize aging nuclear and coal-fired power plants. Kevin McIntyre, a Republican, wrote a letter to Perry proposing to extend the deadline for a decision on the so-called Grid Resiliency Pricing Rule. Perry in September had issued FERC a directive to consider the rule and decide on it by Dec. 11. The plan would allow plants that maintain at least 90 days of fuel supply on site to recover their full costs through regulated power pricing.
US Oil Rig Count Falls to November 2009 Lows
U.S. energy firms cut oil rigs for a fourth week in a row to the lowest level since November 2009, oil services company Baker Hughes Inc said on Friday, as energy firms keep slashing spending despite a more than 50 percent jump in crude futures since hitting a near 13-year low in February. Drillers cut 3 oil rigs in the week to April 15, bringing the total rig count down to 351, Baker Hughes said in its closely followed report. The number of U.S. oil rigs operating compares with the 734 rigs operating in the same week a year ago.
Obama to Issue New Offshore Drilling Rules
The Obama administration will announce Thursday safety regulations for offshore oil and natural gas drilling to prevent the kind of explosion that happened six years ago on a BP rig in the Gulf of Mexico, an official told Reuters. The Department of Interior will unveil the final version of its well control regulations, which will require more stringent design and operating procedures for well control equipment used in offshore oil and gas operations, said the official, who is close to the rulemaking process. The agency first released…
US Oil Drillers Cut Rigs to Nov 2009 Lows
U.S. energy firms cut oil rigs for a third week in a row to the lowest level since November 2009, oil services company Baker Hughes Inc said Friday, as energy firms keep slashing spending despite crude futures prices jumping roughly 50 percent since hitting a near 13-year low in February. Drillers cut 8 oil rigs in the week to April 8, bringing the total rig count down to 354, Baker Hughes said in its closely followed report. The number of U.S. oil rigs currently operating compares with 760 rigs operating in the same week a year ago.
Fed's Harker: Marcellus Natural Gas Boom has Peaked
The U.S. natural gas boom centered around the Marcellus shale fields has probably hit a peak for now, Philadelphia Federal Reserve President Patrick Harker said on Thursday. "The robust natural gas drilling that carried this region through the worst of the Great Recession has likely plateaued in the past few years," Harker said in prepared remarks to be delivered in Philadelphia. Harker did not otherwise comment on the outlook for the U.S. economy or monetary policy. Reporting by Jason Lange
API Publishes RP forr Structual Integrity Management
The American Petroleum Institute (API) has published a new recommended practice for structural integrity management. The new guidelines emphasise the importance of understanding topside structural integrity in order to maintain the offshore structures used in oil and natural gas drilling and production operations. Fugro’s on line monitoring (OLM) instrumentation package is helping asset owners to evaluate structural integrity as part of these new recommendations. The evaluation of structural integrity is central to the Recommended Practice for Structural Integrity Management of Fixed Offshore Platforms (RP 2SIM)…
Precision Drilling Profit Jumps
Precision Drilling Corp , Canada's largest oil and natural gas drilling contractor, reported a better-than-expected 79 percent jump in quarterly profit, helped by higher pricing and drilling activity. The company, which mainly has land-based rigs, said rig utilization days rose 20 percent in the United States - which contributes 86 percent of revenue - compared with an industry-wide increase of 8 percent. The results are in line with the expected trend of strong quarterly results by onshore drillers, helped by the shale-fueled drilling boom in North America. The slump in crude oil prices is expected to weigh more on offshore drillers.
US Bill Would Boost Ukraine's Energy Efficiency, Drilling
A bill introduced by U.S. Senator Edward Markey on Thursday aims to ease Ukraine's fuel dependence on Russia by modernizing its heating infrastructure and updating its Soviet-era natural gas drilling capabilities. Some U.S. lawmakers have called for a surge in U.S. fuel exports to help Ukraine wean itself from Russian energy supplies after President Vladimir Putin's invasion and annexation of the Crimean peninsula. But U.S. shipments of liquefied natural gas to global markets are not expected to begin until 2015, and Ukraine lacks a port to receive the imports. In addition, U.S. oil companies are held back by a 40-year domestic ban on crude exports.
US Takes First Step toward Fracking Disclosure Rules
The Obama administration announced its first steps on Friday toward possibly tighter regulation of hydraulic fracturing, or fracking, seeking public input on whether companies should be required to disclose the contents of fluids used in the oil and natural gas drilling technique. The U.S. Environmental Protection Agency said it would gather public comment for 90 days on whether to require chemical manufacturers to disclose the contents of fluids they inject into shale seams to release trapped oil or gas. Fracking technology has sparked a boom in U.S. energy production, but critics worry that it is polluting drinking water supplies.
CLEAR Coalition Supports a Fair Drilling Tax
The CLEAR Coalition today reiterated its support for a shale excise tax and applauded efforts led by Sen. Vincent Hughes to force oil companies reaping profits from Pennsylvania to pay their fair share. Sen. Hughes, the Minority Chair of the Senate Appropriations Committee, announced plans to introduce legislation to impose a 5-percent severance tax on natural-gas drilling in the state's Marcellus Shale region. The tax would generate more than $1 billion in new funding for the state by 2020. CLEAR represents more than 1.1 million nurses, teachers, first responders, healthcare providers and other public employees across Pennsylvania.
