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The Weekly Oil and Gas Update

The Weekly USA Oil & Gas Update: 13 May 2014

Contributor: Todd Erickson
Posted: 05/12/2014
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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

Select states

This Week

Change from last week

3 months ago

One year ago

Alaska

10

+1

11

8

Arkansas

12

+1

12

15

California onshore

39

+1

34

39

Colorado

65

+1

60

63

Kansas

33

+2

33

28

Montana

8

0

8

10

N. Louisiana

27

0

23

21

New Mexico

91

+1

83

77

North Dakota

174

-2

168

176

Ohio

35

0

40

32

Oklahoma

192

-3

182

190

Pennsylvania

58

0

53

59

Texas

895

+3

840

838

Utah

27

0

26

29

West Virginia

27

-1

30

23

Wyoming

45

-4

51

40

Total US

1855

+1

1764

1769

Total Canada land

142

-20

624

116

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

99.99

102.54

94.76

Brent

107.89

110.14

102.17

Natural Gas-USD/mmbtu

NYMEX

4.53

5.80

3.87

General News

Global oilfield services market to experience dramatic growth

In the recent market report "Oilfield Services Market - Global Trends & Forecast to 2019", the aggregate spend for oilfield services is expected to top $291 billion annually by 2019, up from $166 billion this year. North America will lead this growth, capturing nearly 52% of the total spend in terms of revenue. Growth in spending is being largely driven by the rising costs to explore and produce, as inexpensive-to-produce shallow oilfields decline and operators are forced to produce from far-more expensive shale and deepwater projects. Article here

Six oil cars derail in Colorado hauling Niobrara crude oil

Only one of the cars was leaking, and there was no fire associated with the derailment. Niobrara crude is not considered as flammable as Bakken crude, which has experienced multiple derailments with fires over the past year.Article here

Unconventional Oil & Gas News

EOG, Eagle Ford's biggest player, to drill 520 wells this year

The company will run 26 drilling rigs this year on its 564,000 acres. Several recent wells have had initial production rates of 4,000 barrel of oil per day. "The Eagle Ford continues to be our largest growth asset with the highest after-tax rates of return," said Bill Thomas, chairman and CEO of EOG. Its second area of focus is the Bakken. Both tight oil plays produce light oil. "Well, we remain bullish on light oil prices," Thomas said. Article here

Environment and Safety News

North Dakota's Bakken oilfield workers have fatality rate 6 times that of other oilfield workers

According to a recent report from the AFL-CIO labor federation, 104 out of every 100,000 North Dakota oil, gas and mining workers died of job-related injuries in 2012. The state experienced massive growth in the oilfield worker population, from 5,051 in 2005 to 40,856 people in 2011, resulting in many positions being filled by inexperienced workers. Analysts believe this inexperience, along with North Dakota's harsh weather, likely drove these high numbers. Article here

Mergers and Acquisitions News

EnCana acquires Eagle Ford shale field for $3.1 billion

By acquiring the acreage from Freeport-McMoRan, EnCana will double its liquids production, in line with its core strategy. "Gaining a position in a world class, oil-rich resource play like the Eagle Ford accelerates the transition of our portfolio and underscores our investment focus on high margin assets" said Encana's Chief Executive Doug Suttles, in a recent statement. Article here

Apache sells Gulf of Mexico properties for $1.4 billion

The company will sell is interests in two offshore development projects to Freeport-McMoRan in order to focus on its onshore tight oil program.Article here

Contributor: Todd Erickson