The Weekly Oil and Gas Update

The Weekly USA Oil & Gas Update: 24th November 2015

Todd Erickson
Contributor: Todd Erickson
Posted: 11/23/2015

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

13

0

13

9

Arkansas

4

0

4

12

California land

10

0

13

45

Colorado

29

-3

37

70

Kansas

10

0

13

25

Mississippi

7

0

3

13

N. Louisiana

29

0

28

31

New Mexico

38

0

52

98

North Dakota

63

+1

72

177

Ohio

19

-1

19

45

Oklahoma

81

-4

106

214

Pennsylvania

30

+2

36

56

Texas

342

+4

383

906

Utah

5

0

4

23

West Virginia

14

-2

17

32

Wyoming

21

-3

25

60

Total US

757

-10

885

1929

Total Canada land

166

-10

204

433

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

42.27

49.20

75.64

Brent

45.35

47.97

76.86

Natural Gas-USD/mmbtu

NYMEX Henry Hub

2.17

2.70

4.26

General News

Speculators betting on crude oil price increases

The biggest exchange-traded fund that tracks oil prices received investments of $717.8 million so far this month, and $283 million in October. "People are putting money into the ETF because there is limited downside and a lot of upside," says Frost & Sullivan's Carl Larry. "There are still a lot of uncertainties, but prices have likely hit the bottom." According to the EIA, refineries boosted their operation rate to 90.3%% last month, supporting price increases by setting the stage for increased demand. Article here

US natural gas stockpiles at record levels

The US Energy Information Administration just revised its natural gas stockpile increase estimate upwards by 7 billion cubic feet to a 54 billion cubic feet increase, for a total of 3.985 trillion cubic feet of gas in storage, further depressing gas prices. "We've got so much gas, the question is, where is it going to burn?" said economist Jason Schenker. Article here

Unconventional Oil & Gas News

Investment into Ohio's Utica increasing despite industry slow down

According to Columbus law firm Bricker & Eckler LLP, capital investment into Ohio's Utica has increased by 20% since last spring, with an additional $5.7 billion in projects added to the $33.7 billion already invested by the oil & gas industry. "The infrastructure continues to get built out," said Matt Warnock, partner at Bricker & Eclker. The law firm's report lists 162 projects, including a $1 billion gas gathering pipeline by MarkWest, a $640 million pipeline expansion by Rice Midstream, and a host of supporting projects. Article here

Environment and Safety News

Refinery pays EPA $1.2 million settlement for air emissions violations

HollyFrontier, a refiner with facilities in Salt Lake City, paid the federal government $1.2 million, according to an announcement last week. The violations came over the period from 2006 to 2011. As part of the settlement, HollyFrontier also agreed to install additional equipment. Article here

Mergers and Acquisitions News

Two planned Rockies crude pipeline projects to Cushing, OK combined into one
Plains All American and Magellan Midstream Partners agreed to combine their two separate crude transmission pipeline projects into one last week. The combined Saddlehorn pipeline project and the Grand Mesa pipeline project will be built and operated by Magellan, with the ability to move 340,000 barrels per day from Colorado's DJ Basin to the crude oil hub located in Cushing, Oklahoma when completed. "Combining projects makes strong economic sense by reducing overall construction and operating costs and better aligning pipeline capacity with current DJ Basin production, while allowing for future growth when market conditions improve," said Magellan's CEO Michael Mears. Article here

Todd Erickson
Contributor: Todd Erickson
Posted: 11/23/2015

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