Offshore Energy Outlook for 2020
The “new normal” is a phrase tossed around often in offshore energy circles today as those servicing and operating in the sector grapple with the harsh realities of the prolonged industry downturn. Operators, service companies and equipment suppliers have been forced to adjust to oil selling at prices well below the $100+ per barrel mark seen in years past. As of this writing, Brent oil was hovering around $62 per barrel…
Equinor Looks to Cut More Costs at Giant North Sea Oilfield
Norway's Equinor sees scope to further reduce development costs at the Johan Sverdrup oilfield in the North Sea, as it looks to maximize the potential of what could be the last giant field to be found off the Nordic country.The field, one of the five largest oil finds offshore Norway, is estimated to contain up to 3.1 billion barrels of oil equivalents, mainly crude oil, enough to meet Britain's…
How BP Found Shale Profits With 'Crystal Ball' Oilfield Technology
In the pine forests of eastern Texas, oilfield workers equipped with virtual-reality goggles are helping BP's shale business turn a profit for the first time.Thousands of automated wells feed data on their performance into the firm's supercomputers each evening. If they show a need for maintenance, an Uber-style system summons a subcontracted repair firm to keep the shale wells flowing at optimal…
Diamond Offshore Shares Buoyant
As the offshore energy market continues to search for signs of recovery, latest news from Diamond Offshore points to better times ahead. On Monday, October 30, 2017 Diamond Offshore reported better-than-expected quarterly profits, in part driven by additional deals won for its deep-water drilling rigs at better rate, sending its shares up 8.3% at the time of reporting.. While Diamond Offshore CEO Marc Edwards was not prepared to call the bottom of the market…
Axeon to Close NJ Asphalt Plant
Axeon Specialty Products plans on shutting down its 75,000 barrel-per-day asphalt refinery in Paulsboro, New Jersey, as early as this summer, according to a local politician and sources familiar with the company's plans. If completed, the shutdown marks another contraction in the shrinking refining sector along the U.S. northeast, where four of the region's 10 refineries have shut in the past decade. Axeon is owned by New York-based hedge fund Lindsay Goldberg.
Saudi's Falih: Oil Downturn End in Sight
Expects producer action to help market improve further. More clarity needed on production in Libya, Nigeria Venezuela. Saudi Arabia's energy minister gave an upbeat message to an audience of industry executives on Wednesday, saying the oil market was at the end of a downturn and producer action to limit supply would help it improve further. Khalid al-Falih also told the annual Oil and Money…
Investment Cuts Slow Rebound for Offshore Oil Services -Bourbon
French oil services company Bourbon said on Thursday that any rebound in oil and gas prices will take a while to reach companies in the offshore marine sector because of deep cuts in investments during the prolonged oil downturn. Bourbon, whose fleet of about 513 vessels provides offshore services for oil and gas companies, said its net loss in the first half widened to 104.3 million euros ($117 million) compared with a net loss of 19.2 million in the same period a year ago.
Baker Hughes Disappoints on Weaker Drilling Volume
Baker Hughes Inc reported a bigger-than-expected quarterly loss, hurt by lower drilling activity and pricing, and the oilfield services provider said it did not expect North America activity to increase substantially this year. The company's comments contrasts those from bigger rivals Schlumberger Ltd and Halliburton Co last week. Schlumberger said the oil downturn appeared to have bottomed out…
Upstream O&G Companies Face Interest Payments Friday
At least 10 upstream oil and gas companies, cramped for cash in the oil downturn, must make coupon payments Friday, April 15, according to Thomson Reuters data. Among them are oil and gas giant Chesapeake Energy Corp , which completed a debt swap last year, and Linn Energy LLC. Linn skipped interest payments due last month. (Reporting by Jessica DiNapoli; Editing by Phil Berlowitz)
U.S. Shale to OPEC: Above $40, We are Coming Back
For leading U.S. shale oil producers, $40 is the new $70. Less than a year ago major shale firms were saying they needed oil above $60 a barrel to produce more; now some say they will settle for far less in deciding whether to crank up output after the worst oil price crash in a generation. Their latest comments highlight the industry's remarkable resilience, but also serve as a warning to rivals and traders: a retreat in U.S.
Halliburton to Cut 5,000 Jobs in New Round of Layoffs
Oilfield services provider Halliburton Co , pressured by a prolonged slump in crude oil prices, will further slash its workforce by about 8 percent, or by 5,000 jobs, company spokeswoman Emily Mir told Reuters on Thursday. The more than 70 percent fall in global crude prices since mid-2014 has led to a series of job cuts and additional cost-cutting efforts from several companies including the world's largest oilfield services provider, Schlumberger Ltd .
Fairway Energy Finds an Extra 1 mln bbl of Crude storage at Houston Facility
Early construction of Fairway Energy Partners' Pierce Junction underground crude storage caverns in south Houston has yielded something of an unexpected geologic surprise: an additional 1 million barrels of capacity. The added space, which will bring storage capabilities at the site to 11 million barrels, is a windfall at a time when oil traders around the world are scrambling to secure a place…
Bargain Hunters Swarm to Oil Equipment Auctions
In an auction room a few dozen potential bidders scan a picture of a used oil drilling rig projected on the wall while an auctioneer raises his voice to drum up enthusiasm. "If you came to this sale not looking for a rig you should be looking at it now," the auctioneer bellows into his microphone. Initial asking price on the rig - complete with water, mud and shale tanks - was C$150,000 ($107…
Samson Bankruptcy Spotlights Offshore Rig Situation
The most significant bankruptcy of the current oil downturn has shone a spotlight on what is perhaps the most oversupplied corner of the energy world: the market for offshore rig services. Samson Resources Corp, an independent oil producer bought just four years ago for $7.2 billion, said in its late Wednesday filing for creditor protection that a 60 percent crude price slide had upended its business.
Canadian Oil Sands Woes Reach Maritimes
Cory Troke joined the exodus west two years ago, leaving scenic but job-scarce Cape Breton, Nova Scotia, after being laid off as a machinist. Troke, 37, headed to the Alberta oil sands, apprenticing as a pipefitter and finding 19 months of steady work, flying in for two weeks, returning home for one. By October Troke was out of work again, and he was not alone. A downturn driven by tumbling…
U.S. Businesses Brace for Oil Downturn
Oil and gas production is fundamental to the U.S. economy. The sharp downturn in prices will have a negative impact on business investment in the short term before the positive impact on consumer spending takes over further down the line. Oil and gas producers accounted for almost $1 in every $8 of new business investment in the U.S. economy in 2013, according to new data published by the Census Bureau.
Few Big US Land Drillers Set to Ride Out Oil Downturn
Large U.S. onshore drilling firms that operate new, faster rigs are best placed to weather the looming downturn brought by slumping crude prices and could gain market share from smaller drillers with considerable debt and outdated equipment. Drillers are trimming rental rates for rigs and idling older machines as their clients, oil producers, slash 2015 spending. Analysts say companies with…
Canada's Oil Sands Boomtown Feels the Chill
The boomtown in the heart of Canada's oil sands region is getting nervous. Fort McMurray, surrounded by the boreal forest of northern Canada, has long drawn thousands with jobs that paid six-figure salaries to a region that produces more crude than anywhere else in the Western Hemisphere. But a slide in oil prices since June has fueled a sense of unease in the community of nearly 73,000 which for over a decade has rarely known anything but the good times.
