The Weekly USA Oil & Gas Update: 1st December 2015
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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 |
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Oil & Gas Prices - Bloomberg/EIA |
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General News |
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No relief in production levels from OPEC despite $40 crude oil Nearly every analyst polled concerning OPEC's upcoming meeting on December 4th expected Saudi Arabia, and therefore OPEC, to maintain its current production levels, further fueling the glut responsible for $40 crude oil. The Saudi's plan is to squeeze out shale oil producers with low prices, eliminating upstart shale oil competition in its world markets. So far, the plan is working as output from shale, a more expensive source than most of OPEC's crude oil, keeps declining. "There's no reason to expect any change of heart," said analyst Antoine Halff. "The strategy is working out, it's just not solving the problem [of low prices] overnight. The market is rebalancing, and there's pressure on shale oil production, but it will take time." Article here |
Unconventional Oil & Gas News |
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October production remains flat in both the Bakken and Eagle Ford According to Bentek, crude oil production rose less than 1% in both the Eagle Ford and the Bakken plays. Most producers have slashed capex spending and just drill enough to maintain production, while focusing on cost reduction. "In this challenging pricing environment, producers are doing whatever they can to stay afloat," said Bentek analyst Sami Yehya. "Reducing the number of days to drill a well and/or figuring out ways to bring down completions costs has been on everyone's agenda most of this year." Article here |
Environment and Safety News |
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Oilfield theft increasing as activity declines According to estimates form the Energy Security Council, a trade group located in Houston, oilfield theft generated losses of almost $1 billion in 2013, and losses have likely grown since then due to job losses. "There are a lot less eyes out therfe for security," said security analyst John Esquivel. "The drilling activity may be quieter, but I don't think criminal activity is." Theft includes crude oil tin the millions from Eagle Ford wells to $300,000 in drill bits confiscated by Weld County authorities in Colorado. In Texas, oilfield theft has become associated with drug trafficking from Mexican gangs. "Your average person wouldn't know the value of a drill bit or a piece of tubing or a gas meter," said the Energy Security Council's John Chamberlain. Article here |
Mergers and Acquisitions News |
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Tall City Exploration sells closes $803 million sale with Moss Creek |
