Industry News
It’s Houston vs. Houston, as offshore drillers compete with onshore shale oil
Competition for oil companies does not solely come from overseas anymore; the fiercest opponents are across the street, or maybe even in the same building. Executives and engineers responsible for offshore drilling are struggling to compete with their compatriots in the onshore shale oil fields. With the U.S. pumping more than 10 million barrels a day, the competition is Houston vs. Houston to see who can build the simplest, most productive wells. At the biggest oil companies, offshore engineers on one floor are competing against shale brethren on another for the limited dollars available for drilling. The team that produces the most barrels at the lowest breakeven price wins. […] Read Full Article Here: https://www.houstonchronicle.com/business/columnists/tomlinson/article/It-s-Hous...
Saudi Arabia says higher oil prices won’t change the pace of its reforms
Higher oil prices won’t change the pace of Saudi Arabia’s reforms, the country’s finance minister told CNBC Wednesday. “Higher oil prices will only help reduce the deficit and build reserves, we will continue our reform,” Mohammed bin Abdullah Al-Jadaan told CNBC’s Hadley Gamble on Wednesday. […] Read Full Article Here: https://www.cnbc.com/2018/05/02/saudi-arabia-says-higher-oil-prices-wont-change-reforms.html
Not Everyone Gets Why OPEC Is Determined to Stick With Cuts
OPEC and Russia seem determined to keep on cutting production even after their campaign to rebalance world oil markets achieved its main target. The primary justification for doing so looks shaky. Read Full Article Here: https://www.bloomberg.com/news/articles/2018-05-01/opec-s-reason-for-sticking-with-the-cuts-rests-on-shaky-ground
UK children will have to pay £3,000 each to shut down North Sea oil and gas operations
Shutting down oil and gas operations in the North Sea is likely to cost double the government’s current target, leaving younger generations with a hefty tax bill. An analysis of current government figures suggests the goal of £39bn to dismantle the region’s pipelines and wells is a significant underestimate. Instead, a figure of over £80bn is cited as a far more realistic projection in the new report for the Intergenerational Foundation (IF). Read Full Article Here: https://www.independent.co.uk/environment/fossil-fuels-north-sea-oil-gas-decommission-cost-double-government-a8326046.html
Fund manager: $300 oil is ‘not impossible’ within a few years
Pierre Andurand, a leading oil fund manager, said that lack of investment in new production could lead to a situation where $300 per barrel oil is “not impossible” within the next few years, Bloomberg reported. Andurand, who runs oil hedge fund Andurand Capital Management LLP, wrote in a string of tweets on Sunday that companies may be less willing to risk investment in long term oil projects because of low crude barrel prices and a predicted peak in electric vehicle demand. […] Read Full Article Here: http://www.businessinsider.com/300-oil-is-not-impossible-says-oil-hedge-fund-manager-2018-4
OPEC Cuts May Go Deeper as Another Member Sees Output Slump
While plunging output in Venezuela captures the oil world’s attention, problems are quietly festering in another OPEC nation. Angola, once Africa’s biggest crude producer, is suffering sharp declines at under-invested offshore fields, with output dropping almost three times as much as the nation pledged in an accord with fellow OPEC members. With the losses set to accelerate — a shipping program seen by Bloomberg News shows crude exports will fall in June to the lowest since at least 2008 — the cartel risks tightening supply too much. […] Read Full Article Here: https://www.bloomberg.com/news/articles/2018-04-27/opec-cuts-may-go-even-deeper-as-another-member-sees-output-slump
Crude Holds Near $68 as Questions Swirl Around Iran Nuclear Deal
Crude held the $68-a-barrel level as a geopolitical risk premium in the market limited losses. Futures in New York fluctuated between gains and losses on Friday, poised for a 0.7 percent decline this week. Prices have been supported by investors waiting to see whether the nuclear accord that Iran signed with world powers in 2015 will remain. […] Read Full Article Here: https://www.bloomberg.com/news/articles/2018-04-27/oil-holds-near-68-as-traders-await-trump-decision-on-iran-deal
Oil and gas drilling expected to increase slightly this year in Western Canada | CBC News
Despite a slight rise, the Petroleum Services Association of Canada has reduced its earlier forecast for the number of wells that will be drilled. Read Full Article Here: http://www.cbc.ca/news/canada/calgary/drilling-activity-western-canada-2018-forecast-1.4637115
Louisiana to receive $82 million in Gulf offshore oil and gas revenue sharing
The state of Louisiana will receive $82 million in Gulf of Mexico offshore revenue in the next few months under the Gulf of Mexico Energy Security Act, representing the first large payment under the revenue sharing program created by Congress in 2006. […] Read Full Article Here: http://www.nola.com/environment/index.ssf/2018/04/louisiana_receives_82_million.html
Exxon Mobil shares fall 3.5% on earnings miss fueled by weak refining and chemicals profits
Exxon Mobil on Friday reported earnings of .09 per share, compared with .12 forecast by Thomson Reuters. Exxon Mobil on Friday reported its quarterly profit increased from a year ago, but fell short of expectations, marking the second straight quarter that earnings disappointed Wall Street. Weakness in the company’s fuel refining and chemicals businesses dragged on an upbeat quarter for Exxon’s unit that focuses on producing oil and natural gas. […] Read Full Article Here: https://www.cnbc.com/2018/04/27/exxon-mobil-earnings-q1-2018.html
Chevron shares rise after big earnings beat on strong oil and gas production profits
Chevron saw its stock price jump as it reported first-quarter earnings that easily topped expectations, fueled by rising oil and natural gas production and higher commodity prices. Shares of Chevron were up more than half a percent shortly after the U.S. stock market opening, backing off stronger gains before the bell. […] Read Full Article Here: https://www.cnbc.com/2018/04/27/chevron-shares-jump-on-big-earnings-beat.html
Norway’s $1 trillion sovereign wealth fund suffers first-quarter losses
Norway’s sovereign wealth fund has reported first-quarter losses on its investments, citing falling stock markets. The fund’s return was minus 1.5 percent, lagging the positive return of 3.5 percent at the end of last year. The country’s $1 trillion rainy day savings pot is the biggest state fund in the world. It was established in 1990 to invest the surplus revenues of the Norwegian petroleum sector and it now owns an average 1.4 percent of the world’s listed stocks. […] Read Full Article Here: https://www.cnbc.com/2018/04/27/norways-1-trillion-sovereign-wealth-fund-suffers-first-quarter-losses.html