The Weekly USA Oil & Gas Update: 1st June 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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Analyst says glut over, prices to rebound later this year Sanford C. Bernstein Ltd. expects demand to exceed supply by 1.5 million barrels a day by the fourth quarter this year, according to their report released last week. This represents a large swing from recent estimates of a 2 million barrel per day surplus, but as rig counts drop, US production has begun to level out and inventories have fallen for the fourth week in a row. Bernstein also expects global demand to rise over the next few quarters. "The start of sustained US inventory declines is a a significant milestone for the oil market," said Bernstein's analyst Paul Horsnell. "Virtually all the global build in commercial inventories so far in 2015 has occurred in the US. The end of this build is likely to be an early warning of a shift into deficit for the global market as a whole." Article here |
Unconventional Oil & Gas News |
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Eagle Ford rig count rises this week, despite overall US reduction Although the overall US rig count fell by 10 this week, the Eagle Ford in south Texas gained three rigs to rise to a total of 110 rigs. Economics in the Eagle Ford remain competitive relative to other shale plays, accounting for the slight increase in activity. Article here
Marcellus Shale natural gas output could remain flat through end of the decade According to the US Energy Information Administration, output from the nation's most prolific natural gas producing basin, the Marcellus Shale, could remain flat for several years, and even decline, largely due to low regional prices and limited transportation options out of the region. Many private analysts don't agree with this assessment however. New pipelines out of the area, along with anticipated LNG export, could provide growth opportunities. "We see slow growth in the Marcellus each year out to 2020," said analyst Keith Barnett with Asset Risk Management LLC in Houston. Article here |
Environment and Safety News |
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Oil and gas worker fatality rate declines over last decade As the oil and gas industry has boomed in the last 10 years, total fatalities have risen, but the overall fatality rate, measured by number of deaths per 100,000 workers, has actually declined due to the large influx of new workers. The rate peaked in 2006, with 32 deaths per 100,000 workers, and has declined to 19 deaths per 100,000 workers in 2013, the last year of the study. Although improving, the rate is still up to seven times that of the US overall worker fatality rate. Article here |
Mergers and Acquisitions News |
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Canada's Crescent Point acquires Legacy Oil and Gas |
