The Weekly USA Oil & Gas Update: 11th November 2015
Add bookmark
The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.
He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.
Learn more about Todd here
Rig Counts - select states with key plays |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Oil & Gas Prices - Bloomberg/EIA |
||||||||||||||||||||||||
|
|
General News |
|
Majors backing away from large capital projects in low price environment Exxon, Shell, Chevron, ConocoPhillips and Hess have all either delayed or abandoned large-scale capital projects in the deepwater Gulf, Canada's oil sands or the Arctic, while focusing a larger portion of capital to onshore shale operations. "What makes more sense in this environment: drill a $100 million well in the deepwater Gulf that might come up empty, or poke lots of holes in west Texas where you already know there's oil for a few million apiece?" said UT Energy Institute's Michael Webber. Redeploying capital from large, long-term projects is a systematic way of reducing risk at a time when practically everyone is losing money on upstream operations, however the cancelling of mega projects worldwide will likely have a long-term affect on the sources for crude oil supply for years to come. Article here |
Unconventional Oil & Gas News |
|
Shale producers cutting budgets for 2016 As the price of crude oil dropped by over 50% in late 2014, shale oil producers cut their capex budgets by an average of about 30% going into 2015. As companies announce their 2016 budgets, more cuts appear to be coming. Moody's expects an average capex reduction for upstream operators of 10% to 15% for 2016. Devon, Continental and Marathon all released statements that capital spending may fall by double digits for 2016, while Oasis said it expects to spend only about $350 million in 2016, down $200 million from the the current year. Despite big cutbacks, many producers hope to make it up, at least partially, with additional increases in efficiency. Article here |
Environment and Safety News |
|
It's official: Obama rejects Keystone XL construction application US President Barack Obama rejected Keystone's application to build a crude oil pipeline from Canada's oil sands to the US. "The State Department has decided that the Keystone XL pipeline will not serve the national interests of the United States. I agree with that decision," Obama said. Oil industry reaction was critical. "It's ironic that the administration would strike a deal to allow Iranian crude onto the global market while refusing to give our closest ally, Canada, access to US refineries. This decision will cost thousands of jobs and is an assault to American workers. It's politics at its worst," said API CEO Jack Gerard. Article here |
Mergers and Acquisitions News |
|
Marathon sells Gulf of Mexico assets |
