Texas voters elect conservative Craddick as oil regulator
Texas reelected Christi Craddick, a conservative incumbent in her third term as the state's chief oil regulator. This is a victory for the industry which has seen its production increase during her tenure. According to the most recent government statistics, Texas, which is home to the Permian basin, is the United States' largest oil producer, producing around 5.8 million barrels of crude oil per day. The Texas Railroad Commission, which Craddick is set to chair for six more years, regulates this industry.
Natural Gas Flaring Hits Record High
As spot prices in the region have remained near or below zero, natural gas flaring and venting in the Permian Basin in Texas and New Mexico reached a new all-time high in the first quarter of 2019, averaging as much as 661 million cubic feet per day (MMcfd).According to research conducted by Rystad Energy, this widespread waste of a valuable commodity is the result of persistent infrastructure challenges, a lack of sufficient takeaway capacity and an unexpected…
US Shale Eases Into Detente with OPEC as Supply Cut Extended
U.S. producers applauded Thursday's decision by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia to extend output cuts until the end of 2018. Texas and North Dakota - the two largest U.S. shale-producing states - described it as a boon for their producers. Their appreciation was in contrast to a more combative style in recent years, when shale states seemed to relish openly bashing the group. "Now that it seems prices are looking to stabilise with this OPEC deal around $60 (per barrel)…
Trump's Empty Threat to Stop Buying Saudi Oil: Kemp
President-elect Donald Trump is very unlikely to restrict imports of crude oil from Saudi Arabia despite threats to do so issued during the election campaign. Trump is first and foremost a showman and impresario rather than a policy wonk. Much of what he said on the campaign trail was intended to mobilise support rather than provide a detailed programme for government. The media "never takes (Trump) seriously but it always takes him literally. I think a lot of voters who vote for Trump take Trump seriously but not literally…
Persistence of Instability in the Oil Market: Kemp
Volatility has always been the defining characteristic of oil and other commodity markets, defying repeated attempts to stabilise prices. Volatility is present at all timescales from seconds, minutes and hours to days, weeks, months and years ("Oil makes only one promise and that's volatility", Reuters, December 2015). At the macro-scale, the oil market has been characterised since its inception in the 1860s by a series of booms and busts lasting for years at a time.
Texas Oil Regulator Expects $60/barrel Crude by 2017
A Texas oil industry regulator expects crude oil prices to eclipse $60 per barrel by next year as global supply and demand balance, a price that would again make production profitable across the largest producing U.S. state. Any rise in oil prices would be a welcome relief to Texas energy companies, especially those who operate in the Eagle Ford shale region, where production has slumped with prices slumped near $43 per barrel. "Pretty much every single fundamental that we have points to those commodity prices going up…
Doha Meeting Might Not Matter Much for Oil Prices
Given the hype which has accompanied the run-up to an oil ministers' meeting in Doha on Sunday, there is a risk prices will fall afterwards it fails to reach an agreement or produces only a weak one. But expectations for the meeting are already pretty low. "We cannot know the outcome but if there is to be a production freeze, rather than a cut, the impact on physical oil supplies will be limited," according to the International Energy Agency ("Oil Market Report", IEA, Apr 14).
U.S. Shale and OPEC, the Altered Balance of Power
Two landmark events this month will underscore the extent to which the oil market's balance of power has been transformed by the shale revolution. In Washington, Congress will begin considering legislation to permit the export of crude oil from the United States, reversing a four decade ban put in place after the first oil crisis in 1973/74. In Vienna, the Organization of the Petroleum Exporting Countries (OPEC) is expected to roll over its crude production…
Texas Quakes Likely Linked to O&G Operations -Study
A series of earthquakes that rattled a small community northwest of Fort Worth, Texas, more than a year ago were linked to oil and gas operations, according to a scientific study released Tuesday. The study published in the science journal Nature Communications concluded that the 27 earthquakes that occurred in Azle, Texas, were the result of high-pressure injection of drilling wastewater injected into the ground and other industry activity. "On the basis of modeling results and the absence of historical earthquakes near Azle…
November TX Oil & Gas Permits Plunge 50 pct
Texas, the top oil-producing U.S. state, issued roughly half as many drilling permits in November as in October, as oil and gas producers scaled back with the steep decline in crude prices since summer. The Texas Railroad Commission, the state's industry regulator, said on Tuesday that new permits for oil wells fell 57 percent to 376, while those for new oil and gas wells retreated 46 percent to 977. Overall, the state issued 1,508 original drilling permits for all types of wells in November, compared with 3,046 in October. U.S.
Texas O&G Drilling Permits Fall 50% in November
Texas, the top oil-producing U.S. state, issued roughly half as many drilling permits in November as in October, as oil and gas producers scaled back with the steep decline in crude prices since summer. The Texas Railroad Commission, the state's industry regulator, said on Tuesday that new permits for oil wells fell 57 percent to 376, while those for new oil and gas wells retreated 46 percent to 977. Overall, the state issued 1,508 original drilling permits for all types of wells in November, compared with 3,046 in October. U.S.
Banned: Fracking Hits a Roadblock in Texas
The first ban on new hydraulic fracturing in Texas went into effect in the city of Denton, a month after voters deemed the oil and gas extraction method behind the U.S. energy boom a community nuisance. The Texas Oil & Gas Association, an industry group, and the Texas General Land Office filed a lawsuit shortly after voters in the city of 123,000 approved the ban on Nov. 4. The lawsuit aims to allow the technique known as fracking, widely used in the top crude and natural gas producing state in the country.
Porter Voices Concerns Over Texas Pipelines
Commissioner David Porter of the Texas Railroad Commission (RRC) Tuesday visited several south Texas border oil and gas facilities and pipeline rights-of-way to meet with field staff, operators, law enforcement and security officials to examine the vulnerability of Texas’ critical industry infrastructure. "While oil and gas operators take every precaution to limit any threat to their equipment and product, the unfettered flow of illegal aliens complicates their efforts,” said Porter. Commissioner Porter recently sent a letter to U.S.
Stratex Oil & Gas Provides Operations Update
In its update yesterday Stratex reported that it is currently producing approximately 98 gross, 65 net barrels per day (b/d) of oil, both from its historical non-operated and operated properties in the Bakken Shale and Montana, respectively, and its operated south Texas lease. Pursuant to the Company's previously announced Joint Development Agreement signed in December 2013 and amended in January 2014, in exchange for the Company's commitment to frac a certain well known as the Matthews 1H prior to March 31…
