US Energy Firm Payouts to Oil Investors Top Exploration Spending for First Time
Top U.S. energy companies last year paid out more of their earnings to shareholders than they invested in new oil and gas fields for the first time, according to a report released on Tuesday.The outlook for stronger energy prices has not changed the focus on investor returns from the U.S. industry, according to the report's authors, Ernst & Young LLP. U.S. energy companies have been focused…
KCA Deutag Wins UK North Sea Contract Extension
Canadian Natural Resources International (CNRI) has awarded KCA Deutag a five-year extension to a drilling operations and maintenance services contract.The UK-based international oil and gas services company said that multi-million pound contract is for the provision of drilling operations and maintenance services on CNRI’s three platforms - Ninian South, Ninian Central and Tiffany platforms.The two companies have a long history of working together…
GoM Oil Output Set for Record Year
The U.S. Gulf of Mexico is positioned for another year of record oil production in 2020, despite massive cuts in investment.According to Rystad Energy, most of this growth coming from deep water projects.“2020 is expected to be another record year with average production above 1.9 million barrels per day,” says Joachim Milling Gregersen, an analyst on Rystad Energy’s upstream team.Oil production in the Gulf of Mexico has grown every year since 2013…
MOL Purchases Azerbaijan ACG, BTC Pipeline Stakes
MOL has signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline, Ltd to acquire their non-operated E&P and mid-stream interests in Azerbaijan, including a 9.57% stake in the Azeri-Chirag-Gunashli (ACG) oil field, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline that transports the crude to the Mediterranean port of Ceyhan, for total consideration of $1.57bn (subject to adjustments at closing).
Halliburton Promises Cost Cuts
Halliburton Co on Monday promised more cost cuts after reporting a bigger-than-expected drop in quarterly revenue as the oilfield services looks to counter weak demand from North American shale producers, sending its shares up about 7%.The biggest hydraulic fracking services provider, which earlier this month cut 650 jobs in North America, said it would take steps over the next few quarters…
U.S. Shale: World’s 2nd Cheapest Source of Supply in Oil
North American tight oil is emerging as the second cheapest source of new oil volumes globally, just shy of the Middle East onshore market, Rystad Energy said.The U.S. shale oil was the world’s second most expensive oil resource just four years ago, the energy research and business intelligence company pointed out.“As the majors are struggling to replace conventional liquids, a wealthy source of additional resources is tight oil…
U.S. Fracking Shrinks by 25% in 2H2018
The new median estimate for nationwide fracking activity in December 2018 suggests 36 frac jobs per day, said a research.The energy research and business intelligence company Rystad Energy revealed in a study that 25% contraction in fracking activity between the peak in May-August 2018 and the end of the last year.It should be noted that in both November and December 2018 fracking activity level exhibits negative year-over-year change…
BY THE NUMBERS - Offshore Supply Vessels: Balanced Continued Pressure with Gradual Recovery
Global consulting firm AlixPartners, in a new paper entitled, “Too many ships, too few rigs: why recovery is still a distant dream for the OSV sector,” warns that companies counting on a quick return to stability in the OSV sector are in for a rude awakening.The September report goes on to say that OSV companies continue to face pressure due to a radically changed oil industry and must take…
North American Energy IPOs Set to Rebound in 2018
Higher oil prices and a positive earnings outlook for energy companies are expected to fuel a rebound in North American oil and gas initial public offerings in 2018, with bankers betting investors will remain optimistic about the sector even if the broader stock market remains volatile. IPOs in the United States and Canada could reach their highest in four years, and oilfield services companies are seen leading the recovery, given their pressing capital needs.
Hess Corp Posts Q4 Loss on Rising Costs
Hess Corp posted its 13th straight quarterly loss on Monday as the oil and gas producer struggled to rein in expenses. The company's shares were down 2.7 percent at $46.51 in light premarket trading. Hess has slashed jobs and sold assets as it grapples with spiraling costs and project setbacks at a time when other producers focus on capital returns in a higher oil price environment. The company…
Oil Rises on Saudi Purge, Tighter Markets
Saudi crown prince cements power with high-level arrests; U.S. rig count falls to lowest level since May 2016. Oil prices hit their highest since July 2015 on Monday as Saudi Arabia's crown prince cemented his power over the weekend through an anti-corruption crackdown, while markets continued to tighten. Brent crude futures were trading 26 cents higher at $62.33 a barrel by 1012 GMT, after hitting a session peak of $62.90, a 28-month high. U.S.
Kazakhstan Ready to Discuss Extension of Global Oil Output Cut Deal
Kazakhstan is open to discussing the possible extension of a global deal to cut oil production if such an issue arises, RIA news agency quoted Kazakhstan's energy ministry as saying on Wednesday. "We have not received a proposal about an extension. If the issue of an extension arises, then it will be discussed with consideration of the oil price environment, as well as the supply and demand balance on the global oil market," RIA quoted the ministry as saying.
Private Equity Firm Energy Ventures Rebrands
A continuing low oil price has led to a re-focus of the investment strategy and a recent rebranding for independent private equity firm Energy Ventures. The company, which is headquartered in Stavanger and has offices in Houston and Aberdeen, has changed its name to EV Private Equity. EV is interested in the companies in the oil and gas services sector which require $10-25million of investment…
Petronas Raises Government Payout as Profit Surges
Malaysia's state-owned energy firm Petroliam Nasional Bhd on Friday raised its dividend payment commitment to the government after reporting that second-quarter profit quadrupled because of higher oil prices and improved margins. But Petronas, as the company is known, maintained a cautious outlook, saying its overall year-end performance is expected to be "fair" as oil price volatility continues.
Shell Adjusts to Low Priced Oil, Even as Profits Soar
Shell 'getting fit' to live with oil at $40/bbl -CEO. Royal Dutch Shell is gearing up for a world of "lower forever" oil prices, its Chief Executive Ben van Beurden said on Thursday, after the company's profits tripled in the second quarter. The oil and gas industry has struggled with three years of weak prices while also facing the prospect of oil demand plateauing by the end of the next decade.
Norway OKs Statoil’s Trestakk Plan
Norwegian authorities have approved the Plan for Development and Operation (PDO) of the Trestakk discovery on the Halten Bank in the Norwegian Sea. Investments are calculated at NOK 5.5 billion ($646 million), almost half of the original estimate. Trestakk was discovered in 1986, and expected recoverable volumes are 76 million barrels of oil equivalent, mainly oil. Tied into the Åsgard A production vessel, Trestakk is expected to come on stream in 2019.
ConocoPhillips Sheds Canadian Oil & Gas Assets
ConocoPhillips on Wednesday agreed to sell oil sands and western Canadian natural gas assets to Cenovus Energy Inc for C$17.7 billion ($13.3 billion), making it the latest international oil major to pull back from a region where high costs and low crude prices have made it hard for large companies to make an acceptable return. For Calgary-based Cenovus, among Canada's largest producers, the deal doubles its production to 588…
BP back in the black
BP has made a profit of $115 million for the year 2016. This compares to its loss of $6.5 billion in the previous year. The company in its report stated having focused on growth: strategic portfolio additions, new projects coming onstream, costs and spending reduced ahead of schedule. Bob Dudley, BP group chief executive, commented, "2016 was the year we made significant strides in creating a stronger platform for growth.
Australian LNG Projects Face Delays, Benefiting US Producers
Australia's plans for a huge increase in its production of liquefied natural gas are being dealt a big blow by a series of production delays, as energy companies struggle with technical problems and cost overruns. The country is still likely to become the world's biggest LNG exporter, dispatching about 85 million tonnes a year by the end of the decade, up from 30.7 million tonnes in 2015 and 45.1 million tonnes last year.
China's Crude Output to Dip 7 pct by 2020
Govt plans 4 mln bpd crude output for 2020, vs analyst's 3.5-3.6 mln bpd. China's crude oil output is expected to drop by 7 percent by 2020 compared with the previous five-year plan as output from some of the nation's largest, but oldest, wells falls, while natural gas supplies will rocket by almost two-thirds. Under a plan covering the period 2016-2020 published by the National Development and Reform Commission (NDRC) on Tuesday…
