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The Weekly Oil and Gas Update

The Weekly USA Oil & Gas Update: 06 May 2014

Contributor: Todd Erickson
Posted: 05/05/2014
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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

9

0

11

8

Arkansas

11

-1

12

15

California onshore

38

-2

31

39

Colorado

64

0

62

63

Kansas

31

0

32

28

Montana

8

0

8

11

N. Louisiana

27

+1

25

21

New Mexico

90

-1

80

78

North Dakota

176

-3

168

174

Ohio

35

0

39

32

Oklahoma

195

+3

185

188

Pennsylvania

58

-3

54

60

Texas

892

-2

845

831

Utah

27

0

26

29

West Virginia

28

+1

29

24

Wyoming

49

-1

52

41

Total US

1854

-7

1771

1764

Total Canada land

162

-3

619

118

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

100.29

100.12

95.80

Brent

108.70

110.18

105.00

Natural Gas-USD/mmbtu

NYMEX

4.66

8.15

3.93

General News

Bakken crude train derails in Lynchburg, VA, catches fire

Thirteen cars carrying crude oil from North Dakota's Bakken field derailed in Lynchburg, with several catching fire, and three sinking into the nearby river. The resulting fire prompted a wide evacuation, and the heat from the fire could be felt atop neighboring skyscrapers. "We have not seen any environmental harm at this point, e.g., no fish kills or effects on other aquatic life," Virginia Department of Environmental Quality spokesman Bill Hayden said in an email. This is the latest in a string of accidents involving crude sourced from the Bakken, who's flammable nature raises safety questions around transport. Article here

Unconventional Oil & Gas News

Bakken yields its one billionth barrel of oil

Drilling in the Bakken began in 2000, with the first wells in Montana. Activity moved to North Dakota five years later with horizontal well bores and modern hydraulic fracturing completions. Data now shows that Montana has produced 151 barrels and North Dakota 852 million barrels since then, putting the play over 1 billion barrels. According to Continental Resources, a leading operator in the play, two-thirds of this production has come in the last three years. At a current production volume of 1 million barrels per day and growing, lots more is coming. "It's been quite a revelation that's happened there," Continental Chairman Harold Hamm told The Associated Press. "It's right in line with expectations." Article here

BP giving up on its Utica Shale acreage

The company took a write-down of $521 million on its Utica holdings based on the results of its appraisal wells. With this information, the company announced it will not proceed with development plans for its nearly 100,000 acres located in Ohio. "it's premature to say what we'll do with the remaining parts of that asset base," BP CFO Brian Gilvary told analysts on Apr. 29. Article here

Environment and Safety News

Two workers killed in West Texas explosion at well location

Workers were changing a wellhead when the explosion occurred due to a buildup of pressure. "There was actually not any fire involved. It was just an explosion of the gas," said Loving County Sheriff Billy B. Hopper. Nine others were injured, but not seriously enough for hospitalization. The deceased were contractors working for RKI Exploration and Production. According to Hopper, "It's very unusual for something like this to happen. This is the first person we've had die in the county in about a year." Article here

BP cleaning up oil spilled from Alaska pipeline

Around the clock crews worked in Alaska's North Slope to clean up a 34-acre site where crude oil sprayed from a ruptured pipeline. The leak was discovered during a routine inspection. Article here

Mergers and Acquisitions News

Encana sells East Texas natural gas assets for $530 million

The deal includes 90,000 net acres in Leon and Robertson counties, with an average daily production in 2013 of 100 MMcf/d and 1,200 b/d total liquids. The buyer was undisclosed. Article here

EQT sells Jupiter gathering system in Marcellus for $1.18 billion

The system gathers EQT's Marcelllus production Greene and Washington counties in Pennsylvania. Article here

Contributor: Todd Erickson