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The Weekly Oil and Gas Update

The Weekly USA Oil & Gas Update: 19th May 2015

Contributor: Todd Erickson
Posted: 05/18/2015

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

-1

7

8

Arkansas

6

-1

11

12

California land

12

0

13

47

Colorado

39

0

47

65

Kansas

14

+4

18

34

Mississippi

5

+1

7

12

N. Louisiana

27

0

33

28

New Mexico

44

0

72

89

North Dakota

79

-1

119

174

Ohio

24

0

37

39

Oklahoma

103

+1

155

195

Pennsylvania

46

-1

54

60

Texas

373

-6

575

891

Utah

7

+1

11

27

West Virginia

21

+1

17

25

Wyoming

22

-2

35

45

Total US

888

-6

1309

1861

Total Canada land

74

+1

357

150

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

60.06

49.56

102.95

Brent

66.69

59.78

110.84

Natural Gas-USD/mmbtu

NYMEX Henry Hub

3.00

2.68

4.54

General News

Saudis pump near record highs as oil glut worsens

According to the International Energy Agency (IEA), the Saudis have upped their crude oil production in an effort to capture market share from US shale producers. As a result, global oil production exceeds demand at this time by about 2 million barrels per day. US shale producers have continued to hold their production levels, despite the slow down in drilling, as they high-grade to the core of the shale fields. "It would thus be premature to suggest that OPEC has won the battle for market share," said the IEA in their report. "The battle, rather, has just begun." Look for the glut to continue, as Kuwait, Saudi Arabia and the UAE are all raising their rig counts. Article here

Services market down 34% from last year

According to Douglas-Westwood's May 18 DW Monday, The total US oilfield services spend in its 20 tracking companies will be down by 34% from 2014. Hardest hit plays include the Barnett, with only four rigs currently running, and the Bakken, down 40% from last year due to its high costs. Suffering least, according to the report, is the Marcellus. The report went on to say that drilling and completions-related products and services, such as proppant, will fall as much as 42%, while production-related goods and services, such as artificial lift and slick-line, will be less affected. Article here

Unconventional Oil & Gas News

Rig count up in the Eagle Ford first time in six months

The rig count went from 105 to 108 this week, the first increase in rigs week-over-week since last November. This should help to slow down falling crude oil production numbers, which are down 73,000 barrels per day since January. Across the US, the rig count was down only slightly for the week, from 894 to last week's 888. Article here

Detailed well completions data by operator and region

If you want a deep-dive on the specifics of operators' well completions designs, Energent Group has a site providing that data. According to Todd Bush, Principal at Energent Group, "[w]e help engineers and analysts understand how an operator is frac'ing their top wells by providing the data and research on how much proppant, downhole chemicals, and water was used on each well. Analysts can quickly view the pressure pumper & operator relationships and determine proppant & frac sand usage across a basin." Energent will send you test data if you are interested in taking a closer look. Website hereere

Environment and Safety News

"Oil to die For" documentary on Bakken deaths

Reporter and producer Todd Melby will soon be releasing a documentary covering the 50 deaths that have occurred in North Dakota's Bakken Shale play since 2008, making it the most dangerous oilfield in the US. "The fatality rates are nearly seven times as high as fields in the rest of America," said Melby. Article here

Mergers and Acquisitions News

Ernst & Young survey - oil and gas execs expect deals in 2015

According to the EY report recently released, 56% of industry executives surveyed expected to make a deal in the next 12 months, with 60% expecting to make at least two deals. Overall, 99% expected the deal market to improve or remain stable over the next 12 months. Surprisingly, the market has been relatively quite the first three months of the year, as the buy-ask spread has been too wide for deal making. Article here


Contributor: Todd Erickson