Exxon executive: US oil producers are unlikely to switch to "drill baby, drill" mode
LONDON, November 26 - U.S. producers of oil and gas are unlikely to increase production dramatically under President-elect Donald Trump, as companies remain focused upon capital discipline, said a senior Exxon Mobil executive on Tuesday. Liam Mallon is the head of Exxon’s upstream division. He told the Energy Intelligence Forum in London that "we're not going see anyone in a 'drill baby, drill'" mode. He said that a radical change in production is unlikely, because most, if no one else, are focused on the economics. The growth rate will be naturally limited if you maintain the discipline and drive the quality.
Drill, baby, drill in Argentina's Vaca Muerta shale lands!
Argentina's new, market-friendly government, and concerns about oil supplies from the Middle East, and elsewhere, are driving a boom in drilling and production in the Patagonian South, which is home to the giant Vaca Muerta shale, Spanish for "Dead Cow". In the flat, arid terrain, the production of shale oil and gas is surging. Fracking wells have been drilled in record numbers, and pipelines have been built to transport gas to the capital Buenos Aires – and beyond once LNG plants are operational. A huge blue billboard, erected by the state energy giant YPF in front of Anelo's shale-town…
Exxon is looking for buyers of Bakken Shale assets in North Dakota
Exxon Mobil Corp, a major U.S. oil company, plans to sell some of its assets within North Dakota's Bakken Shale Formation. The company announced this on Tuesday. Oil producers are re-evaluating their portfolios after a wave megamergers occurred in the U.S. Shale Patches. They want to determine which assets will remain central to their strategy, and which ones they should divest. In response to questions, a spokesperson for the company said: "ExxonMobil explores market interest for selected assets in North Dakota's Bakken Shale Play.
BP More than Doubles US Shale Oil Putput in 2019
BP's U.S.
U.S. NatGas Prices Near 25-year Low as Glut Weighs
In the shale field that helped launch the U.S. natural gas boom a decade ago, Chesapeake Energy Corp this month set aside its last drilling rig. The problem for the once No. 2 U.S. gas producer was not a lack of gas, but too much of it.A long, steady increase in U.S. gas production – much of it a byproduct of the shale oil boom – has prices for the fuel heading toward a 25-year low, with output outpacing U.S. consumption and expected to hit 91.6 billion cubic feet, up 10% over last year, according to government and industry estimates.Producers have sought to turn much of the U.S. surplus to liquefied natural gas (LNG) and export it.
BP Raises Asian Profile
BP is increasing its Asian presence with an initial agreement, or memorandum of understanding, with China's Zhejiang Petroleum and Chemical Corporation (ZPCC) to build a 1 million tonne a year acetic acid plant, BP said on Friday. The planned production site for acetic acid, which is used in chemical products such as paints and adhesives, would be part of ZPCC's refining and petrochemical plant in Zhoushan in eastern China, BP said in a statement."The potential new plant...would be BP’s largest acetic acid producing site in the world.
U.S. Shale Oil Production to Grow 16%
United States shale operators are on track to increase oil production by 16 percent in 2019, according to analysis by energy research firm Rystad Energy.The growth in US onshore production from the first quarter through the fourth quarter could come in at around 1.1-1.2 million barrels per day (bpd), or 16% for the full year, according to Rystad Energy.After a paltry first quarter, depressed by weather effects, US shale players have over the past weeks assured investors that they will achieve previously communicated production targets…
Marathon Oil Beats Profit Estimates
Marathon Oil Corp beat analysts' estimates for first-quarter profit on Wednesday, boosted by higher production and lower costs at its U.S. shale assets in the Bakken and Northern Delaware regions.Total oil production averaged 203,000 net barrels per day (bpd) in the first quarter, up 6 percent from a year ago, with U.S. crude production jumping 11 percent, adjusted for divestitures.On the back of rising production from its assets and a rebound in oil prices, Marathon expects second-quarter total oil production of 200,000 to 220,000 net bpd, with U.S. oil production of 180,000 to 190,000 net bpd.U.S.
CNPC to Develop New Shale Oilfield
China's state-owned CNPC has started developing a new offshore shale oilfield near the Bohai Rim Basin, the company said via its official newspaper on Thursday.CNPC aims to produce 50,000 tonnes of shale oil from the Bohai Rim Basin in 2019 and to achieve production capacity of 1 million tonnes by 2028.The new drilling venture is in response to president Xi Jinping's call to step up national energy security, CNPC said.Shale oil production from China's continental crust created huge technological difficulties because of the unique geological formations…
US Drillers Add Oil Rigs for Third Week in a Row
U.S. energy firms added oil rigs for a third week in a row for the first time since June, keeping the rig count at its highest in over three years, as declining productivity in some shale fields force companies to drill more to keep output growing.Drillers added two oil rigs in the week to Oct. 26, bringing the total count to 875, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.For the month, the rig count rose 12 in October, the biggest monthly increase since drillers added 34 rigs in May.
Technical Challenges Could Slow Shale Growth -Schlumberger CEO
Technical challenges could slow growth shale oil production in the next 12 to 18 months, the chief executive of Schlumberger NV, the world’s largest oilfield services provider, said on Tuesday.Paal Kibsgaard, CEO, was speaking at an investment conference in Riyadh.(Reporting by Andrew Torchia; Writing by Davide Barbuscia; Editing by David Goodman)
Oil Rises Ahead of OPEC, Pressured by China Tariffs
Oil prices rose on Monday ahead of an OPEC meeting this week and as investors assessed the impact of a trade dispute between the United States and China.U.S. light crude oil hit a two-month low of $63.59 a barrel but then recovered strongly to trade at $65.40, up 34 cents, by 1350 GMT. Brent to a high of $74.59 a barrel and was trading at $74.50, up $1.06, by 1350 GMT.Brent hit a 3-1/2-year high above $80 a barrel in May but has since fallen on reports that top suppliers Saudi Arabia and Russia will increase production."Oil prices are reversing this morning’s bout of weakness as bottom pickers enter the fray ahead of this week’s crucial OPEC/non-OPEC meeting…
No Signs of Oil Shortage After Drop in Spending -BP CFO
BP does not yet foresee a shortfall in oil supplies in the coming years due to a fall in investments across the sector, the company's Chief Financial Officer Brian Gilvary said on Thursday.Although investment in new oil and gas projects more than halved following the collapse of oil prices in 2014, U.S. shale oil production has surged in recent years as drillers adapted.The U.S. output growth helped offset production cuts by OPEC and several major producing countries since 2017.Gilvary said BP still hadn't seen indications of declining production in U.S.
U.S. Crude Liftings for Asia to Hit New High in July
Asia's U.S. crude imports hit all-time high in May as WTI discount to Brent falls to widest in three years. The volume of U.S. crude oil arriving in Asia is expected to hit a new high in July as Asian refiners sought arbitrage supplies to replace Middle Eastern crude after prices for Gulf grades rose, traders said on Wednesday. U.S. crude arriving in Asia hit an all-time high of close to 25 million barrels in May with cargoes discharging in China, South Korea, Singapore, India and Malaysia, according to trade flows data on Eikon. The volume dips to about 19 million barrels in June, but is set to rebound again in July after U.S.
Oil Hits Multi-year High on Tight Supply, Iran Sanctions
Oil prices hit a 3-1/2-year high on Tuesday, supported by tight supply and planned U.S. sanctions against Iran that are likely to restrict crude oil exports from one of the biggest producers in the Middle East.Brent crude oil reached an intraday peak of $79.47 a barrel, up $1.24 and its highest since November 2014, before easing to $78.28, up 5 cents, by 1345 GMT.U.S. light crude was 15 cents lower at $70.81 a barrel, also not far off its highest since November 2014.World oil prices have surged by more than 70 percent over the last year as demand has risen sharply but production has been restricted by the Organization of the Petroleum Exporting Countries…
Oil Supported as Investors Factor in Risks
Risk of supply disruptions seen from Iran to Venezuela; Syria conflict has also helped push up prices. Oil edged up on Tuesday, supported by investors' growing concern over the potential for disruptions to crude supply, especially in the Middle East. Brent crude oil futures were up 4 cents at $71.46 a barrel by 1145 GMT, while U.S. crude futures edged up 8 cents to $66.30 a barrel. Traders said oil markets were receiving general support due to the risk of supply interruptions, including a potentially spreading conflict in the Middle East, renewed U.S. sanctions against Iran and falling output in crisis-hit Venezuela.
Petchem Demand, Tightening Sulphur Rules to Boost U.S. Crude
U.S. oil will expand its share of international markets as shifting demand makes light crude grades more attractive and as the nation doubles its export capacity, the International Energy Agency (IEA) said on Monday. The IEA said in its five-year outlook that U.S. shale oil output would surge, stealing market share from the Organization of the Petroleum Exporting Countries. The IEA said demand developments would also drive buyer interest in U.S. oil. "Conventional wisdom has it that rapidly rising (light tight oil - LTO) production is incompatible with the need of refiners to process heavier, sourer crudes, given earlier investments," the IEA said.
Noble Energy Profit Beats Estimates
U.S. oil and gas producer Noble Energy Inc reported adjusted quarterly profit on Tuesday that easily beat analyst estimates due to cost cuts and higher crude prices, sending shares surging more than 7 percent in morning trading. The results came as Noble's U.S. shale oil production jumped in the fourth quarter through Dec. 31, reflecting the greater attention the industry is giving to improving profit and output. Houston-based Noble plans to spend $2.8 billion each year through 2020, about 6 percent more than it spent in 2017. Much of that will go towards projects in its red-hot U.S.
Oil Nears 2015 Highs on OPEC News, Fewer U.S. Rigs
Brent has risen by more than 10 pct since December, but soaring U.S. crude production could undermine rally. Oil prices rose on Monday, coming close to new three-year highs on a slight decline in the number of U.S. rigs drilling for new production and sustained OPEC output cuts. U.S. West Texas Intermediate (WTI) crude futures had risen to $61.94 a barrel by 1140 GMT, 50 cents above their last settlement. WTI last week reached $62.21, the highest since May 2015. Brent crude futures were at $67.95 a barrel, 33 cents above their last close. Brent hit $68.27 last week, the highest since May 2015.
Hedging Energy Bets: The Case for a 2018 Oil Bull Run
Hedge funds gamble OPEC will tighten oil market too much. Hedge funds are the most bullish about oil prices in years, expecting further gains even as prices touch multi-year highs and ignoring the risk linked to such a large concentration of positions. A record net long position has been accumulated by hedge funds and other money managers, amounting to 1,183 million barrels in the five biggest futures and options contracts covering crude, gasoline and heating oil. Portfolio managers held a record 1,328 million barrels of long positions in Brent, WTI, U.S. gasoline and U.S. heating oil on Dec. 26, according to data published by regulators and exchanges.
